# EDGAR Filing Document

**Accession Number:** 0001660851
**File Stem:** 0001493152-25-019082
**Filing Date:** 2025-10
**Character Count:** 1521182
**Document Hash:** 5b64ffba342c5564421cd4bea6221325
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-25-019082.hdr.sgml**: 20251023

**ACCESSION NUMBER**: 0001493152-25-019082

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

**PUBLIC DOCUMENT COUNT**: 29

**FILED AS OF DATE**: 20251023

**DATE AS OF CHANGE**: 20251023

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FireFly Automatix, Inc.
- **CENTRAL INDEX KEY:** 0001660851
- **STANDARD INDUSTRIAL CLASSIFICATION:** FARM MACHINERY & EQUIPMENT [3523]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 271718121
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-290743
- **FILM NUMBER:** 251413237

**BUSINESS ADDRESS:**
- **STREET 1:** 1130 SOUTH 3800 WEST, SUITE 100
- **CITY:** SALT LAKE CITY
- **STATE:** UT
- **ZIP:** 84104
- **BUSINESS PHONE:** 801-450-1717

**MAIL ADDRESS:**
- **STREET 1:** 1130 SOUTH 3800 WEST, SUITE 100
- **CITY:** SALT LAKE CITY
- **STATE:** UT
- **ZIP:** 84104

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FireFly Automatix Inc.
- **DATE OF NAME CHANGE:** 20171017

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FireFly Automatix Inc
- **DATE OF NAME CHANGE:** 20151211

**As filed with the Securities and Exchange Commission on October 23, 2025**

**No. 333-290743** 

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION** **<br> Washington, D.C. 20549**

 **AMENDMENT NO. 1 TO**

**FORM S-** **1**

**REGISTRATION STATEMENT<br> UNDER<br> THE SECURITIES ACT OF 1933**

**FIREFLY AUTOMATIX, INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **3523** | **27-1718121** |
| (State or other jurisdiction of <br> incorporation or organization) | (Primary Standard Industrial <br> Classification Code Number) | (I.R.S. Employer<br> Identification No.) |

---

**FireFly Automatix, Inc.<br> 1130 South 3800 West, Suite 100<br> Salt Lake City, Utah 84104<br> (801) 683-5128**

(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

**Lindsay C. Jones<br> Chief Financial Officer<br> FireFly Automatix, Inc.<br> 1130 South 3800 West, Suite 100<br> Salt Lake City, Utah 84104<br> (801) 698-7301**

(Name, address, including zip code, and telephone number, including area code, of agent for service)

*Copies of all communications, including communications sent to agent for service, should be sent to:*

---

| | |
|:---|:---|
| **David F. Marx**<br> **Joshua B. Erekson**<br> **Daniel P. Lyman**<br> **Dorsey & Whitney LLP**<br> **111 S. Main Street, Suite 2100**<br> **Salt Lake City, UT 84111**<br> **(801) 933-7360** | **Michael A. Hedge**<br> **Jason C. Dreibelbis**<br> **K&L Gates LLP**<br> **1 Park Plaza, Twelfth Floor**<br> **Irvine, California 92614**<br> **(949) 253-0900** |

---

**Approximate date of commencement of proposed sale to the public**: As soon as practicable after this Registration Statement becomes effective.

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, please 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, please 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, a smaller reporting company, or 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:

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. ☐

**This registration statement shall hereafter become effective in accordance with the provisions of section 8(a) of the Securities Act of 1933.**

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

**PRELIMINARY PROSPECTUS, SUBJECT TO COMPLETION, DATED OCTOBER 23, 2025**

![](forms-1_001.jpg)

**FIREFLY AUTOMATIX, INC.**

**4,545,454 Shares of** **Common Stock**

This is an initial public offering of shares of common stock of FireFly Automatix, Inc. Prior to this offering, there has been no public market for shares of our common stock. We anticipate that the initial public offering price will be between $4.50 and $6.50 per share.

We have applied to list our common stock on The Nasdaq Capital Market ("Nasdaq"), under the symbol "FFLY".

We are also registering common stock purchase warrants issuable to the representatives of the underwriters in this offering, and underlying shares of common stock, in an amount equal to 3.5% of the aggregate number of shares of common stock sold by us in this offering, including any shares issued pursuant to exercise of the underwriters' over-allotment option.

We are an emerging growth company and a smaller reporting company under the federal securities laws and, as such, have elected to comply with certain reduced public company reporting requirements. See "*Prospectus Summary - Implications of Being an Emerging Growth Company and a Smaller Reporting Company*."

**Investing in our common stock involves a high degree of risk. See the section titled "Risk Factors" beginning on page 10 of this prospectus for a discussion of some of the risks you should consider before investing.**

---

| | | |
|:---|:---|:---|
|  | **Per Share** | **Total** |
| Initial public offering price | $— | $— |
| Underwriting discounts and commissions(1) | $— | $— |
| Proceeds, before expenses, to us | $— | $— |

---

(1) We have agreed to pay the underwriters a discount equal to 7.0% of the gross proceeds of this offering. The underwriting discount is reduced in connection with proceeds from any sales of the shares to certain individuals, strategic investors or similar entities brought by us. We have also agreed to issue, on the closing date of this offering, warrants, or the representatives' warrants, to Roth Capital Partners, LLC and Lake Street Capital Markets, LLC, as the representatives of the underwriters, or the Representatives, in an amount equal to 3.5% of the aggregate number of shares of common stock sold by us in this offering, including any shares issued pursuant to exercise of the underwriters' over-allotment option. For a description of the compensation to be received by the underwriters, see "*Underwriting*" beginning on page 93.

We have granted the underwriters an option, which is exercisable for up to 30 days after the date of this prospectus, to purchase up to 681,818 additional shares of common stock from us at the initial public offering price, less the underwriting discounts and commissions, to cover over-allotments of shares, if any.

**Neither the Securities and Exchange Commission nor any other regulatory body has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.**

The Underwriters expect to deliver the shares of our common stock to purchasers against payment on or about , 2025.

The date of this prospectus is , 2025

*Joint Book-Running Managers*

---

| | |
|:---|:---|
| **Roth Capital Partners** | **Lake Street** |
| *Co-Manager* | *Co-Manager* |
| **Chardan Capital Markets** | **Chardan Capital Markets** |

---

![](forms-1_002.jpg)

![](forms-1_003.jpg)

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [PROSPECTUS SUMMARY](#a_001) | 1 |
| [RISK FACTORS](#a_002) | 10 |
| [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#a_003) | 33 |
| [USE OF PROCEEDS](#a_004) | 35 |
| [DIVIDEND POLICY](#a_005) | 36 |
| [CAPITALIZATION](#a_006) | 37 |
| [DILUTION](#a_007) | 38 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#aa_001) | 40 |
| [BUSINESS](#aa_002) | 53 |
| [MANAGEMENT](#aa_003) | 61 |
| [EXECUTIVE COMPENSATION](#aa_004) | 67 |
| [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#aa_005) | 72 |
| [PRINCIPAL STOCKHOLDERS](#aa_006) | 73 |
| [DESCRIPTION OF CAPITAL STOCK](#aa_007) | 74 |
| [SHARES ELIGIBLE FOR FUTURE RESALE](#aa_008) | 86 |
| [MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR NON-U.S. HOLDERS OF OUR COMMON STOCK](#aa_009) | 88 |
| [UNDERWRITING](#aa_010) | 93 |
| [LEGAL MATTERS](#aa_011) | 100 |
| [EXPERTS](#aa_012) | 100 |
| [CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT](#aa_013) | 100 |
| [WHERE YOU CAN FIND MORE INFORMATION](#aa_014) | 100 |
| [INDEX TO CONSOLIDATED FINANCIAL STATEMENTS](#a_008) | F-1 |

---

You should rely only on the information contained in this prospectus and in any free writing prospectus that we have authorized for use in connection with this offering. Neither we nor the underwriters have authorized any other person to provide you with additional or different information. If anyone provides you with different or inconsistent information, you should not rely on it. Neither we nor the underwriters are making an offer to sell these securities in any jurisdiction where an offer or sale is not permitted. You should assume that the information in this prospectus is accurate only as of the date on the front cover of this prospectus, regardless of the time of delivery of this prospectus or any sale of our common stock. Our business, financial condition, results of operations and prospects may have changed since that date.

For investors outside of the United States ("U.S."): neither we nor any of the underwriters have done anything 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 U.S. Persons outside of the U.S. who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of the shares of our common stock and the distribution of this prospectus outside of the U.S.

i

**MARKET DATA AND FORECASTS**

We are responsible for the disclosures contained in this prospectus. However, unless otherwise indicated, information in this prospectus concerning economic conditions, our industry, our markets and our competitive position is based on information obtained from a variety of sources, including information from independent industry analysts and publications, as well as our own estimates and research. Although we have not independently verified the accuracy or completeness of the third-party information included in this prospectus, based on management's knowledge and experience, we believe that these third-party sources are reliable and that the third-party information included in this prospectus or in our estimates is accurate and complete. While we are not aware of any misstatements regarding the market, industry or similar data presented herein, such data involves risks and uncertainties and is subject to change based on various factors, including those discussed under the headings "Cautionary Statement Regarding Forward-Looking Statements" and "Risk Factors" in this prospectus.

**TRADEMARKS, TRADENAMES, SERVICE MARKS, AND COPYRIGHTS**

We own or have rights to use various trademarks, tradenames, service marks, and copyrights, which are protected under applicable intellectual property laws, as further described herein. This prospectus also contains trademarks, tradenames, service marks, and copyrights of other companies, which are, to our knowledge, the property of their respective owners. Solely for convenience, certain trademarks, tradenames, service marks, and copyrights referred to in this prospectus may appear without the©,®, and™ symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensors to these trademarks, tradenames, service marks, and copyrights.

ii

**PROSPECTUS SUMMARY**

*This summary highlights selected information contained elsewhere in this prospectus and is qualified in its entirety by the more detailed information and consolidated financial statements included elsewhere in this prospectus. This summary does not contain all of the information you should consider before investing in our common stock. You should carefully read this entire prospectus, including the information in the sections titled "Risk Factors," "Cautionary Note Regarding Forward-Looking Statements" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and related notes included elsewhere in this prospectus, before making an investment decision. Unless the context requires otherwise, references in this prospectus to "FireFly," the "Company," "we," "us," and "our" refer to FireFly Automatix, Inc.*

**Our Mission**

Our mission is to become a global innovator and technology leader in autonomous mobility and electric vehicle ("EV") drive in turfgrass management, including turfgrass automated EV mowing, precision turfgrass robotics, and agricultural automation, by leveraging and developing cutting-edge technologies that solve significant financial, environmental and labor challenges, and become the premier technology supplier to the turfgrass management industry worldwide. We believe we have assembled a highly qualified team with extensive experience in the agricultural technology ("AgTech") arena, as well as complementary fields, to support our business strategy, and we will continue strengthening our culture of innovation, quality, and excellent customer service.

**Our Business** 

We are a growth-oriented technology company with internally developed proprietary software and our patented mechatronic systems. We have integrated our technology into the design, development, and manufacturing of our Precision Automated Turf Harvester ("PATH") and our most current Autonomous Electric Vehicle ("AEV") robotic mowers, the Autonomous Mowing Platform ("AMP"), including our AMP-L100 and AMP-X100 models. Prior to the introduction of our AMPs, we also sold our M220 automated mower, from 2019 through 2023.

We currently sell our products directly to customers in the turf harvesting and golf course maintenance industries. Our products are complemented by a suite of services that are designed to address the entire product lifecycle and deepen our relationships with customers. We built a vertically integrated platform comprised of our proprietary technology, cloud software systems, product development, products, and services, which we expect will allow us to iterate disruptive products and shorten the time to bring new products to market. Much of our research and development into automating the PATH machines, specifically our servo electric motion control technology, was transferable to our AEV robotic mowers. Interconnected by our data and analytics, our platform is designed to deliver fast-paced innovation cycles, structural cost advantages, and exceptional customer experiences, all of which combine to create a self-reinforcing growth dynamic while serving our mission to be a technology leader in large area AEV mowing technology and in automated turf harvesting.

Our product offering originated with our PATH machines in 2012 in the demanding turf farm segment, where turfgrass must typically be harvested and shipped within a very short period of time. As of June 30, 2025, we have an estimated combined total of over 770 PATH machines, AMPs and M220 machines in service throughout the world, resulting in a compounded annual growth rate ("CAGR") of approximately 31.5% from 76 machines in 2016. We calculate CAGR by taking the cumulative units sold as of June 30, 2025, dividing it by the cumulative units sold as of December 31, 2016, raising the result to the power of one divided by the number of years in the measurement period (8.50), and then subtracting one. Customers from the United States, Australia, the United Kingdom, Brazil, Canada, South Africa, and Mexico have purchased our machines. The following chart provides a summary of the cumulative number of our machines in the field from 2016 to June 30, 2025:

![](forms-1_004.jpg)

We estimate that our worldwide fleet of PATH machines is capable of cutting over 10,000 pallets of turf each day across the world, combining performance, utility and efficiency.

With the success of our PATH machines, we listened to our customers' demands for our technology in mowing applications and determined to design our next product to serve the estimated 38,000 golf courses in the world (Source: National Golf Foundation, "Golf Around the World," September 2021). We developed our first autonomous mower prototype in 2018, the M220, that married hybrid diesel-electric automation with full autonomy through a third-party system. In 2020, we brought the full autonomy software stack in-house. In late 2023, we introduced our first AEV robotic mower, the AMP-L100, a reel mower for shorter heights-of-cut, which we began marketing and selling in 2024. This industrial, self-driving, large-area AEV robotic mower is our first solution specifically designed for the unique requirements of the golf course, sports field, municipal, real estate, and turfgrass mowing markets. In January 2025, we introduced our second AEV robotic mower, the AMP-X100, a rotary mower for longer heights-of-cut, which we began selling in June 2025. We believe that our AMPs provide a unique mowing approach that is both environmentally sound and business friendly. As such, we believe that our AMPs are designed to specifically target the demanding needs of these additional target mowing markets. Since the introduction of the AMP, we have delivered 49 AMPs as of June 30, 2025. The following chart provides a summary of AMP deliveries by quarter for 2024 and 2025:

![](forms-1_005.jpg)

We estimate the total addressable market ("TAM") for our AMPs and PATH machines using publicly available information regarding the number of relevant sites, including golf courses, airports, municipal parks, public schools, and sod farms, where we believe our AMPs and PATH machines could be utilized. We also use internally developed assumptions relating to the number of machines that we expect would be used at such sites, based on our experience with existing customers and data available from our AMPs and PATH machines operating in the field, along with our anticipated average selling price of our machines over the near future. We then calculate the TAM as the aggregate amount if all the machines in the identified markets were replaced with our AMPs or PATH machines, as applicable, by taking the aggregate number of machines available in each applicable market and multiplying it by the expected average selling price of our machines. Based on these inputs, we believe that these target mowing markets represent a TAM of approximately $40.7 billion for our AMPs and the turf-harvesting market represents a TAM of approximately $2.8 billion, which together represents a TAM of approximately $43.6 billion, over 15 times larger than our estimate of the turf-harvesting opportunity alone from our PATH machines. For additional information regarding our calculation of our relevant TAMs, including underlying data and assumptions used, see the discussion under "*Business - Our Business*."

We believe that our PATH machines and AMPs provide significant cost savings to our customers. We estimate that fully diesel-powered turf harvesters sold by our main competitors use an average of 4.3 gallons of diesel fuel per hour of operation, compared to an average of 2.0 gallons per hour for our PATH machines, which include both diesel and electric components. Based on the weekly diesel (on-highway) price published by the U.S. Energy Information Administration ("EIA") as of June 30, 2025, we believe the efficiency provided by our PATH machines could lower a typical PATH customer's fuel costs by approximately $15,000 per year. Our AMP machines require no fuel to operate, entirely eliminating fuel expenses in connection with fairway mowing. Additionally, we believe that our machines can help reduce the cost of labor significantly. The turf grass harvesters sold by our primary competitors generally require two to three individuals to operate—a driver, and one or two stackers. In some cases, including harvesting more delicate varieties of turf grass, additional labor may be required. In contrast, our PATH machines automate the stacking process, allowing harvesting and stacking to be completed by a single individual. Our AMPs, once trained on a fairway, require no human operator. We believe that these labor-saving efficiencies help our customers save labor costs by enabling them to allocate labor to more productive activities.

Our products are designed to accelerate the large-scale adoption of sustainable solutions. To accompany our machines, we have developed a comprehensive portfolio of aftermarket parts. Complementing our machines, our software platform includes proactive service (maintenance and repair) and software services. We expect these services to generate long-term brand loyalty while also creating a recurring revenue stream for each product across its lifecycle.

Our direct-to-customer model allows us to manage all sales, deliveries and service operations in-house without relying on third-party distributors. We employ an integrated, digital-first strategy that is not only convenient and transparent for our customers, but also efficient and scalable to support our continued growth. We believe this strategy will allow us to deliver uncompromised experiences to our customers well beyond what is available through the distributor model.

Our vertically integrated platform enables us to provide our diverse offering of highly differentiated products and services as well as our technology-first, direct-to-customer experience. Our ecosystem consists of the following components:

● **Technology**. A secure, reliable, scalable combination of hardware and software, connecting our proprietary in-machine systems, including electronics, battery, electric drive, chassis and experience management.

● **Software**. Our architecture of interconnected software applications designed to deliver seamless, end-to-end experiences using our FireLink web application. Our software platform enables remote diagnostics, software updates, and remote controls, including machine access.

● **Product Development and Operations**. Our vertically integrated product development and operations functions include design, development, manufacturing, sales, delivery and service. These distributed functions serve the unique needs of our agricultural and golf course customers. As of June 25, 2025, we had 13 service technicians serving customers across the U.S. and 3 service technicians dedicated to our international customers.

● **Products and Accessories**. Our portfolio is comprised of machines that we believe reimagine the turfgrass harvesting and mowing segments. We expect our products and services will provide us access to new markets and bring new customers into our platform.

● **Services**. We offer highly tailored and differentiated services that enable near seamless and intuitive experiences throughout the entire product lifecycle. We expect this holistic approach to promote customer satisfaction, create strong brand loyalty, and increase operational efficiency while simultaneously allowing us to capture a greater share of the full lifecycle value.

● **Data and Analytics**. Our platform is interconnected by our proprietary data and analytics tools. It is comprised of centralized data and analytics tools, providing valuable insights that can be applied to continuously improve platform-wide performance, functionality and uptime to drive increased customer satisfaction.

We plan to utilize this ecosystem to continuously improve our products by adding new capabilities and functionality. Enhanced products will attract more customers, deepen existing customer relationships, and expand our data repository and insights, which we expect will further benefit our customers and our business.

Beyond the benefits of our ecosystem, we believe that our entrepreneurial culture is a competitive advantage. Our strength comes from a diversity of backgrounds, perspectives, talents and approaches, and we work hard to cultivate a culture of collaboration. Our entrepreneurial spirit drives dialogue and exploration in the development process that we believe has produced world-class products and services. This drives innovation and propels continued growth to help us achieve our mission.

**Our Products**

Our products are organized into two families: AMPs and PATH machines.

*Autonomous Mowing Platform*

We currently offer two models of our AMP: (1) AMP-L100 and (2) AMP-X100. The key difference between the two models is that the AMP-L100 is a reel mower, for shorter heights-of-cut, while the AMP-X100 is a rotary mower, for longer heights-of-cut.

---

| | |
|:---|:---|
| ![](forms-1_006.jpg) | ![](forms-1_007.jpg) |
| AMP-L100 AEV Robotic Reel Mower | AMP-X100 AEV Robotic Rotary Mower |

---

Our AMPs are autonomous machines for professional mowing, equipped with a controller with proprietary algorithms, light detection and ranging ("LiDAR") for object detection, and a suite of cameras and sensors. Upon setup at the customer's location, the AMP simply requires a onetime learning pass around the outer boundary of the area to be repetitively mowed, which we believe is ideal for fairway mowing. Once the machine has learned the boundary, it can generate different mow patterns using our FireLink web application. The customer can then select a starting place on the fairway, select a mow pattern, press play and let the AMP do the rest. The machine will find its way to the start point and start mowing. Customers can then monitor progress of the machine remotely on our web application, FireLink.

![](forms-1_008.jpg)

The AMPs are connected to our specialized and internally developed web application - FireLink - via cellular networks or Starlink, for autonomy control, and to real time kinematics ("RTK")-corrected GPS for precise positioning. Our patented drive and steering systems provide superior traction while protecting the turf, a critical attribute for self-driving machines and one demanded by our customers.

Both the AMP- L100 and AMP-X100 models cut a 100-inch-wide swath with five cutting decks and we believe they can mow approximately 15-20 acres per charge. The AMP-L100 uses reel cutting technology, which is well regarded for its high quality at low heights-of-cut and is widely used for mowing fairways on golf courses. The AMP-X100 has rotary cutting units, which are more commonly used for taller heights-of-cut, often in sports fields, commercial landscaping, turfgrass farms, and mowing in the "rough" on golf courses. Our nearest competitors' autonomous mowers generally only provide cutting widths of 60 inches and under.

The AMP-L100 is an autonomous and all-electric reel mower for fairways, giving customers nearly silent operation, which enables extended mowing hours, and a high-quality precision cut. We market our AMPs primarily through on-site demonstrations, through digital marketing and social media channels, and in industry publications. In 2024, we hosted an average of 15 demonstrations per month and have been hosting an average of 30 demonstrations per month in 2025.

*PATH Machines*

Our PATH machines are purpose-built machines used by turf growers across the world. The PATH machines are designed from the ground up to be completely computer-controlled or "drive-by-wire." These software-defined machines can evolve with customer needs over time through software updates. These harvesters also provide Internet of Things ("IoT") connectivity to deliver data and insights into machine health and performance to both the customer and us.

We engineered advanced electrification and control systems to significantly increase machine productivity, yield, and operational efficiency, which we believe outperforms any other technology currently available in the turfgrass market. In side-by-side demonstrations in Ontario, Canada at the September 2024 Nursery Sod Growers Association and in July 2024 at a similar demonstration in the U.K., we compared the productivity of our PATH R300 roll machine to machines from several competitors. We observed in these demonstrations that our PATH R300 roll machine was able to cut pallets in less time and using less fuel than our competitors' machines.

Our PATH machines are diesel-electric hybrid, self-propelled machines that cut and pull the turf from the ground and cut it into symmetrical slabs. The slabs are transported up a conveyor, rolled if necessary, and automatically stacked onto a pallet. Prior to automation, turf harvesting was accomplished by manual labor and manually-operated mowers. The automated machines have reduced labor and, according to our customers, turned work done by anywhere from two to ten people into a one-person job.

Because our PATH machines use efficient servo electric systems, significantly lower power is required to harvest the turf. Our hybrid diesel-electric PATH machines use a 74-horsepower turbo-charged 4-cylinder Tier 4 diesel engine. Due to our efficient design, we believe the horsepower requirements are around half of our closest competitors' machines, which generally use 130 to 140-horsepower engines.

We currently offer two categories of PATH machines:

● **ProSlab Harvester** – The ProSlab harvester cuts and layers flat slabs of turf onto a pallet. The pallet is then ejected from the machine onto the ground without slowing or stopping, ready for pickup by the turf grower. This model is conducive to cutting warm season turf varieties such as Bermudagrass, St. Augustinegrass, and Centipedegrass, among others. The ProSlab machine provides an option to upgrade the electrical system, which increases speed and efficiency. We shipped our first ProSlab Harvester in 2012.

&nbsp;&nbsp;&nbsp;&nbsp;

● **R300 Roll Machine** – The R300 roll machine cuts, rolls and stacks the mini-turf rolls onto a pallet. Like the ProSlab harvester, the pallet is discharged out the back of the machine and is ready for easy pickup by the turf harvester. The R300 is best suited for cool seasonal grasses like Kentucky Bluegrass, Tall Fescue, and Fine Fescue among others. We shipped our first R300 Roll Machine in 2019.

For the years ended December 31, 2024 and 2023, ProSlab Harvester sales represented 36.5% and 35.6% of our revenues, respectively. For the six months ended June 30, 2025 and 2024, ProSlab Harvester sales represented 35.0% and 39.6% of our revenues, respectively. For the years ended December 31, 2024 and 2023, R300 Roll Machine sales represented 23.1% and 34.5% of our revenues, respectively. For the six months ended June 30, 2025 and 2024, R300 Roll Machine sales represented 18.8% and 23.3% of our revenues, respectively.

We sell replacement parts and consumables for systems in both our PATH and AMP product lines. For the year ended December 31, 2024 and 2023, parts and consumable sales represented 19.7% and 16.7% of our revenues respectively. For the six months ended June 30, 2025 and 2024, parts and consumable sales represented 21.3% and 19.6% of our revenues, respectively. Our service department, consisting of corporate and regional technicians, provides training and support in person, by phone and through remote communication on our web applications.

We sell subscription services to customers that give them access to performance metrics. Our Mercury data platform allows the transmission of productivity data from machines to customers, helping them to know how their PATH machines and AMPs are performing. Key data points include overall equipment effectiveness ("OEE") data, square feet per hour, weight of the pallets, cumulative pallet counts, harvesting session numbers and more. We plan to sell access to performance metrics as a monthly subscription that we expect will evolve with our ongoing data and analytics learning platforms. This platform represents the foundation for collecting and sharing valuable data with customers, which we believe will create significant economic value. We believe that these metrics provide economic value to customers while also benefiting the environment. For example, these metrics enable precise targeting of fertilizer and water, optimizing growth while minimizing waste. We expect future subscription packages will offer tiered pricing based on the range of services provided.

**Our Competitive Strengths**

We designed all aspects of our platform, business model, products, and organization to enable a scalable, customer-centric, and efficient approach resulting in key competitive advantages.

● ***First-Mover and Deep Domain Expertise***. Our talent and knowhow provide deep domain expertise, resulting in a rare and unique set of skills that created our AMPs. Our management team has decades of grass growing and harvesting experience, as well as deep engineering expertise across mechanical, software, electric, autonomy and motion control. This expertise allowed us to understand earlier than our competitors the need for and advantages of electrification, resulting in our PATH machines and AMPs, which introduces a much larger addressable market segment of golf courses and precision mowing. Our intellectual property portfolio and years of deep expertise in automation provide us with a significant first-mover advantage.

● ***FireFly Ecosystem***. We design, develop, manufacture and sell in-house in our 108,500 square foot facility located in Salt Lake City, Utah. We control most of our manufacturing (end-to-end) in-house. We employ a Kanban inventory control system to manage over 17,500 individual components on a daily basis. We strive to provide an ecosystem of solutions to our end users, consisting of hardware, software, parts supply, onsite and helpdesk service, ongoing schools and training, and video-based training and updates. We also provide certain data back to the end-users in the form of a key performance indicator ("KPI") database that allows operators to track and monitor performance.

● ***Entrepreneurial Culture.*** We believe that our entrepreneurial culture is one of our most durable competitive advantages. Everything from the way we recruit to our transparent way of communicating, is in service of making our business the company passionate professionals join to learn, grow, and do meaningful work.

● ***Direct Customer Relationships***. Our ongoing commitment to listening to the problems of our customers and incorporating their feedback into our platform is an important competitive advantage that we expect will allow us to iterate disruptive products. Our direct relationships with customers allow us to gather insights, design solutions that best serve their needs, drive strong engagement, remove structural inefficiencies, create transparency, and increase customer satisfaction and referral. By controlling every customer touchpoint from awareness through ownership, we replace a patchwork of third parties with our end-to-end, integrated solutions.

● ***Suite of Services***. Our portfolio of complementary services is designed to deliver an intuitive and near seamless customer experience across the full lifecycle of our machines. Our suite of services provides an opportunity to generate predictable, high-margin recurring revenues and increase the lifetime revenue potential of each vehicle.

● ***Experienced Board of Directors***. We have been able to recruit independent directors who believe in our mission and have a world-class depth and breadth of executive, operational and financial experience with public companies, and experience across a breadth of industries.

**Historical Revenue Growth**

Since 2016, our company has experienced significant revenue growth, reflecting increased demand for our products and expansion into new markets. Our revenues increased from $11.3 million in 2016 to $42.5 million in 2024, representing a CAGR of 18.0%. We believe our historical performance demonstrates our ability to capitalize on market opportunities and deliver consistent financial results. The following chart provides a summary of our revenues from 2016 to June 30, 2025.

![](forms-1_009.jpg)

**Long-Term Growth Strategy**

We make decisions and investments with long-term objectives in mind. We believe maintaining a long-term growth direction is key to maximizing our impact and generating value for our stockholders. We plan to achieve this by constructing a diverse portfolio of offerings with global appeal and strategically investing in our technology and infrastructure. Key levers of our growth strategy include:

● ***Increase Share in Turf Farm Market***. We plan to continue to build innovative products for the turf farmer. While the primary market for our PATH machines is the U.S., we plan to continue extending our presence in the markets of Australia, Canada, Europe, Brazil, and the United Kingdom by increasing marketing and sales activities and adding new support staff in those regions. We plan to continue to execute on new designs and improvements of harvesters that increase value to the customer with reduced operating costs, improved reliability, and increased capabilities.

● ***Increase Share in Golf and Sports Turf Markets***. We plan to continue to add to our sales and marketing team in golf and sports turf. There continues to be high interest in the capabilities of our AMPs in the marketplace. The installed base of over 49 units have demonstrated this ability and builds confidence in our AMPs.

● ***Grow Our Used and Trade-In Business***. We plan to continue accepting trade-in machines and to resell these as part of our revenue growth strategy.

● ***Develop and Launch Next-Generation AEVs***. We intend to continue to innovate and launch AEVs within the turfgrass management space. These products will serve a variety of needs, price points and geographies.

● ***Further our International Footprint***. We intend to further our global footprint. We will continue to build our sales, marketing and service teams in the U.S., Australia, Canada, Brazil, Europe and the United Kingdom, as well as developing distribution partnerships for other international markets.

● ***Extend Depth and Breadth of Our Digital Services***. We plan to launch additional subscription services, enable the purchase of more features through software updates and explore financing options for customers through third-party and internal financing.

● ***Invest in Our Platform***. We plan to continue investing in our product development and operations infrastructure to enable our growth, product innovation, and customer experience.

● ***Unlock New Business Models***. Our capabilities as a direct-to-customer, integrated technology and manufacturing company position us to drive the adoption of future business models.

***Recent Developments***

<u>Estimated Preliminary Results for the Three Months Ended September 30, 2025</u>

Set forth below are certain preliminary and unaudited estimates of selected financial and other information for the three months ended September 30, 2025 and actual unaudited financial and other information for the three months ended September 30, 2024. The unaudited selected financial and other information for the three months ended September 30, 2025 reflects our preliminary estimates with respect to such results based on currently available information and is subject to completion of our financial closing procedures. We have provided ranges for this data primarily because our financial closing procedures for the three months ended September 30, 2025 are not yet complete and, as a result, our actual results may vary from the estimated preliminary results presented here and will not be finalized until after the completion of this offering.

These estimates should not be viewed as a substitute for our full interim or annual financial statements prepared in accordance with U.S. generally accepted accounting practices ("U.S. GAAP"). Further, our preliminary estimated results are not necessarily indicative of the results to be expected for any future period as a result of various factors, including, but not limited to, those discussed in the sections titled "Risk Factors" and "Special Note Regarding Forward-Looking Statements." This information should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" for prior periods included elsewhere in this prospectus.

The preliminary estimates presented below have been prepared by, and are the responsibility of, management. Baker Tilly US, LLP, our independent registered public accounting firm, has not audited, reviewed, compiled, or performed any procedures with respect to the preliminary financial information. Accordingly, Baker Tilly US, LLP does not express an opinion or any other form of assurance with respect thereto.

The following table presents the high and low end of the range of certain preliminary and unaudited estimates of selected financial and other information for the three months ended September 30, 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | | **For the Three Months Ended <br> September 30, 2025 (in thousands)**  | **For the Three Months Ended <br> September 30, 2025 (in thousands)**  |
|  | **For the Three Months Ended September 30, 2024 (in thousands)**<br> **Actual** | **Low (estimated)** | **High (estimated)** |
| Total Revenues | 8876 | 12500 | 12900 |
| Gross Profit | 1653 | 2800 | 3100 |
| Operating Expenses | 3733 | 4700 | 4900 |
| Loss from Operations | (2080) | (1900)<sup>(1)</sup> | (1800)<sup>(2)</sup> |
| Other Financial Information |  |  |  |
| Cash and Cash Equivalents | 1387 | 2341 |  |

---

(2) These amounts include approximately $741,000 in non-cash stock compensation expense.

We expect total revenue to be in the range of $12,500 to $12,900 for the three months ended September 30, 2025, as compared to $8,876 for the three months ended September 30, 2024, the increase was primarily due to increased sales of our AMPs and increased parts revenues. We also expect gross profit to be in the range of $2,800 to $3,100 for the three months ended September 30, 025, as compared to $1,653 for the three months ended September 30, 2024, this increase was primarily a result of improved efficiencies as we have continued to increase production of our AMPs. We expect operating expenses to be in the range of $4,700 to $4,900 for the three months ended September 30, 2025, as compared to $3,733 for the three months ended September 30, 2024, this increase in operating expenses to support our increased production and sales activities, particularly with respect to our AMPs. We also expect net loss from operations to be in the range of $(1,900) to $(1,800) for the three months ended September 30, 2025, as compared to $(2,080) for the three months ended September 30, 2024, the improvement to net loss from operations was due to our improved gross profit, partially offset by additional stock compensation expense. We expect cash and cash equivalents to increase to $2,341 for the three months ended September 30, 2025, as compared to $1,387 for the three months ended September 30, 2024, primarily due to increased sales.

<u>Debenture Maturity</u>

On October 10, 2025, we entered into an amendment to our outstanding Debentures (as defined below), which extended the maturity date of our outstanding Debentures to January 31, 2028.

<u>Convertible Note Financings</u>

In July 2025, we issued an unsecured convertible note to an investor in the principal amount of $100,000. The convertible note has a term of two years and bears interest at a rate of 15% per annum. The note will automatically convert into shares of common stock upon the closing of an underwritten public offering of common stock that raises at least $10,000,000 of gross proceeds, at a conversion price equal to the lesser of (i) $5.5674 per share or (ii) 90% of the initial public offering price per share. The principal and accrued interest on the convertible note are due at maturity.

In August 2025, we issued four unsecured convertible notes to three investors in the aggregate principal amount of $220,347.66. Each convertible note has a term of two years and bears interest at a rate of 15% per annum. The notes will automatically convert into shares of common stock upon the closing of an underwritten public offering of common stock that raises at least $10,000,000 of gross proceeds, at a conversion price equal to the lesser of (i) $5.5674 per share or (ii) 90% of the initial public offering price per share. The principal and accrued interest on the convertible notes are due at maturity.

<u>ATW Exchange and Warrant Exercise</u>

On October 21, 2025, we entered into an Exchange Agreement (the "Exchange Agreement") with certain funds affiliated with ATW Partners LLC (collectively, "ATW"). Under the Exchange Agreement, ATW agreed to (i) exchange (the "Exchange") (a) the outstanding principal and capitalized interest under the July 2019 Debenture, the April 2020 Debenture, and the September 2020 Debenture (each as defined below) and (b) certain of the July 2019 Warrants, April 20, 2020 Warrants, September 2020 Warrants, January 2022 Warrants, January 2023 Warrants, July 11, 2024 Warrants, July 25, 2024 Warrants, and June 2025 Warrants (each as defined below), for an aggregate of approximately 41,206.58 shares of our Series A convertible preferred stock (based upon an assumed public offering price in this offering equal to $5.50, which is the mid-point of the price range set forth on the cover page of this prospectus), to be authorized immediately prior to this offering (the "Series A Preferred Stock") and (ii) exercise, on a cashless basis, the remainder of the July 2019 Warrants, January 2022 Warrants, and January 2023 Warrants that are not being exchanged, such that ATW will beneficially own (as such term is defined under Section 13 of the Exchange Act and the rules and regulations promulgated thereunder) 1,965,916 shares of common stock (based upon an assumed public offering price in this offering equal to $5.50, which is the mid-point of the price range set forth on the cover page of this prospectus), representing 9.99% of our common stock outstanding after the completion of this offering (the "Warrant Exercise"). The Exchange and Warrant Exercise will take place immediately prior to the completion of this offering and after the filing of our amended and restated certificate of incorporation and the Series A Certificate of Designation (as defined below). The shares of Series A Preferred Stock issued in the Exchange will be convertible, at the election of ATW, into an aggregate of 7,492,105 shares of common stock. For a description of the rights of the Series A Preferred Stock, see the section titled "*Description of Capital Stock - Series A Preferred Stock*". Following the Exchange and the Warrant Exercise, ATW will beneficially own 41,206.58 shares of Series A Preferred Stock and 1,965,916 shares of common stock, based upon an assumed public offering price in this offering equal to $5.50, which is the mid-point of the price range set forth on the cover page of this prospectus.

<u>Registration Rights Agreement</u>

In connection with the Exchange Agreement, we entered into a Registration Rights Agreement (the "Registration Rights Agreement") with ATW. Pursuant to the Registration Rights Agreement, we agreed with ATW that we will file a registration statement on Form S-1 180 calendar days following the pricing of the IPO covering the resale of: (a) the shares of common stock issued or issuable upon the conversion of certain Debentures, (b) the shares of common stock issued or issuable upon the conversion of the Series A Preferred Stock, and (c) shares of common stock held by the holders following the closing of this offering (the "Registrable Securities"), subject to the ability to delay such filing under certain circumstances. We are also required to cause the registration statement to become effective within 45 calendar days following the required filing date, or within 75 days if the SEC notifies us that it will review the registration statement.

Further, the Registration Rights Agreement provides that, in the event a "Triggering Event" occurs prior to the 180th day following the pricing of this offering, we will prepare and file with the Commission a registration statement covering the resale of up to 33% of the Registrable Securities, and the sale of such Registrable Securities will be permitted during the Lock-up Period (as defined below). A "Triggering Event" occurs if, on any trading day following the 90th day after the pricing of this offering, the daily volume-weighted average price ("VWAP") of our common stock equals or exceeds 200% of the initial public offering price for at least five out of ten consecutive trading days.

If there is no effective registration statement covering all Registrable Securities and we plan to register shares of common stock after this offering (other than for employee plans, mergers, or dividend reinvestment plans), we must promptly notify the holders of the Registrable Securities and include any of their securities in the registration if requested in writing. However, we are not required to register securities that can already be sold without restriction under Rule 144, provided we meet current public information requirements, as confirmed by legal counsel.

If the SEC limits the number of securities that may be included in the registration statement, we will prioritize the inclusion of Registrable Securities as defined in the agreement, and may file additional registration statements as necessary.

Under the Registration Rights Agreement, we will indemnify the holders of Registrable Securities and certain related persons, such as their officers, directors, employees, agents, and representatives, against any losses or damages resulting from any untrue statement or omission of a material fact in any registration statement or prospectus pursuant to which they sell Registrable Securities, unless such liability arises from their misstatement or omission. Conversely, the holders of Registrable Securities will agree to indemnify us and certain related persons, such as our officers, directors, and underwriters, against all losses caused by their misstatements or omissions in those documents.

<u>Warrant Exercise Agreement</u>

On October 21, 2025, we entered into a Warrant Exercise Agreement (the "Service Provider Warrant Exercise Agreement") with certain service providers who previously received common stock purchase warrants with an exercise price of $2.00 per share. Under the terms of the Service Provider Warrant Exercise Agreement, these service providers agreed to exercise their warrants on a cashless basis for 80% of the shares initially issuable, resulting in the issuance of 32,000 shares of common stock (the "Service Provider Warrant Exercise").

<u>Software Update</u>

In February 2025, we implemented a major software update over-the-air for all autonomous mower customers. This update included numerous new features in direct response to customer requests, including:

● Smart Start: Allows operators to drop off the AMP anywhere within the fairway. The mower autonomously finds its path starting point and begins mowing, significantly reducing manual driving time and streamlining operations.

● Fairway Mode: Users can save specific mowing and operating boundaries, enabling the AMP to execute turns either in the rough or within the fairways. This feature can reduce the number of clean-up passes needed and provides added flexibility for each course.

● Enhanced Keep-Out Zones: Empowers the AMP to safely navigate around obstacles in the fairways while preserving straight mowing lines and consistent striping. This capability improves efficiency and maintains the aesthetic quality of the turf.

● Refreshed User Interface: With an improved workflow and a more cohesive look and feel, the new interface makes controlling and managing the AMP more intuitive and efficient than ever before.

**Corporate Information, Principal Executive Offices and Internet Address**

FireFly Automatix, Inc. is a Delaware corporation incorporated on November 13, 2015 and we began operations in 2010.

We operate out of a 108,500 square foot facility located in Salt Lake City, Utah. As of June 5, 2025, we employed 201 full-time employees.

Our principal executive office is located at 1130 South 3800 West, Suite 100, Salt Lake City, Utah 84104. Our telephone number is (801) 698-7301. Our website is fireflyautomatix.com. Information contained on or accessible through our website is not part of this prospectus, and is not incorporated by reference herein, and should not be relied on in determining whether to make an investment decision. The inclusion of our website address in this prospectus is an inactive textual reference only.

**Implications of Being an Emerging Growth Company and a Smaller Reporting Company**

We are an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). As an emerging growth company, we may take advantage of specified reduced reporting requirements that are otherwise applicable generally to public companies. For so long as we are an emerging growth company, we will, among other things:

● be permitted to present only two years of audited consolidated financial statements and only
 two years of related "Management's Discussion and Analysis of Financial Condition and Results of Operations"
 in our periodic reports and registration statements, including in this prospectus;

● not be required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley
Act");

● not be required to hold a nonbinding advisory stockholder vote on executive compensation pursuant to Section 14A(a) of Securities Exchange
Act of 1934, as amended (the "Exchange Act");

● not be required to seek stockholder approval of any golden parachute payments not previously approved pursuant to Section 14A(b) of the
Exchange Act;

● be exempt from any rule adopted by the Public Company Accounting Oversight Board, requiring mandatory audit firm rotation and identification
of critical audit matters; and

● be subject to reduced disclosure obligations regarding executive compensation in our periodic reports.

In addition, Section 107 of the JOBS Act provides that an emerging growth company can use the extended transition period provided in Section 7(a)(2)(B) of Securities Act of 1933, as amended (the "Securities Act"), for complying with new or revised accounting standards. This permits an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.

We will continue to qualify as an emerging growth company until the earliest of:

● the last day of our fiscal year following the fifth anniversary of the date of our initial public offering;

● the last day of our fiscal year in which we have annual gross revenue of $1.235 billion or more;

● the date on which we have, during any three-year period, issued more than $1.0 billion in non-convertible debt; and

● the date on which we are deemed to be a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act.

We are also a "smaller reporting company" as defined in the Exchange Act. We may continue to be a smaller reporting company even after we are no longer an emerging growth company. We may take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as our voting and non-voting common stock held by non-affiliates is less than $250.0 million measured on the last business day of our second fiscal quarter, or our annual revenue is less than $100.0 million during the most recently completed fiscal year and our voting and non-voting common stock held by non-affiliates is less than $700.0 million measured on the last business day of our second fiscal quarter.

*For risks related to our status as an emerging growth company and a smaller reporting company, including the potential impact of reduced financial reporting and disclaimer requirements see "Risk Factors - Risks Related to the offering and Ownership of Our Common Stock." We are an emerging growth company and a smaller reporting company, and the reduced disclosure requirements applicable to emerging growth companies and smaller reporting companies may make our common stock less attractive to investors.*

**Summary of Risk Factors**

Our business is subject to a number of risks and uncertainties of which you should be aware before making a decision to invest in our common stock. These risks are more fully described in the section titled "Risk Factors" immediately following this prospectus summary. These risks include, among others, the following:

● We are a growth-stage company and have a limited operating history at the current scale of our business, which makes it difficult to evaluate our current business and future prospects.

● We have a history of net losses. If we do not achieve profitability, our business, financial condition and operating results will be adversely affected.

● There is substantial doubt about our ability to continue as a going concern, and we will need additional financing to execute our business plan, to fund our operations and to continue as a going concern.

● Our business plans require a significant amount of capital, which will require us to sell additional equity securities or incur additional indebtedness that will dilute our stockholders or introduce covenants that may restrict our operations.

● If we fail to scale our business operations, successfully introduce and market new products and services, or otherwise manage our future growth effectively as we attempt to rapidly grow our company, our business may be adversely affected.

● We may not be successful in entering into distributor relationships or other commercial partnerships, which could adversely affect our operating results and our ability to compete in our industry.

● Our business and operating results are subject to seasonal fluctuations, which could result in fluctuations in our operating results and stock price.

● Adverse changes in the new housing market, including due to increased interest rates, could adversely affect demand for our PATH machines.

● Our operations and financial results may be affected by competitive conditions.

● Our existing and future levels of indebtedness could adversely affect our financial health, ability to obtain financing in the future, ability to react to changes in our business and ability to fulfill our obligations under such indebtedness.

● We may not succeed in maintaining and strengthening our brand, which would materially and adversely affect customer acceptance of our products and our business, prospects, financial condition, results of operations, and cash flows.

● We rely on complex machinery for our operations, and production involves a significant degree of risk and uncertainty in terms of operational performance, safety, security, and costs.

● We rely on a limited number of suppliers for critical product components.

● Security breaches and other disruptions to our information technology infrastructure could interfere with our operations and compromise information, exposing us to liability that could cause our business to suffer.

● Our products rely on software and hardware that is highly technical, and if these systems contain errors or design defects, our business could be adversely affected.

● If we fail to adapt and respond effectively to rapidly developing technology, evolving industry standards and changing customers' needs or requirements, our products may become less competitive.

● Expanding our international operations, where we have limited operating experience, may subject us to increased business, regulatory and economic risks that could seriously harm our business, operating results and financial condition.

● Our business depends largely on our ability to attract and retain talented employees, including senior management.

&nbsp;&nbsp;&nbsp;&nbsp;

● Our management will be able to exert influence over our affairs.

● We face risks related to our contracts with state and local government entities, which could harm our results of operations.

● Unfavorable weather conditions or natural catastrophes that reduce agricultural production and demand for agriculture and turf equipment could directly and indirectly affect our business.

● We have identified material weaknesses in our internal control over financial reporting, and the failure to achieve and maintain effective internal controls over financial reporting could harm our business and negatively impact the value of our common stock.

● We could be subject to additional sales tax or other indirect tax liabilities.

● Our ability to use our U.S. federal and state net operating losses to offset future taxable income may be subject to certain limitations which could subject our business to higher tax liability.

● Our operations are subject to complex and changing laws and regulations, the violation of which could expose us to potential liabilities, increased costs, and other adverse effects.

● We may face risks associated with international, national, and regional trade laws, regulations, and policies, and government farm programs and policies which could significantly impair our profitability and growth prospects.

● We could be involved in legal disputes, including securities litigation, that are expensive and time consuming, and, if resolved adversely, could harm our business, operating results, and financial condition.

● We are an "emerging growth company" and a "smaller reporting company" and our compliance with the reduced reporting and disclosure requirements may make our common stock less attractive to investors.

● Failure to protect and enforce our proprietary technology and intellectual property rights could substantially harm our business, operating results and financial condition.

● Confidentiality agreements with employees and others may not adequately prevent disclosure of trade secrets and proprietary information.

● Our use of "open source" software could subject us to possible litigation or could prevent us from offering products that include open source software or require us to obtain licenses on unfavorable terms.

● The price of our common stock may be volatile.

● We will have broad discretion in how we may use the net proceeds in connection with this offering, and we may not use them effectively.

● The obligations associated with operating as a public company following this offering will require significant resources and management attention.

● Economic uncertainty or downturns could adversely affect our business, financial condition and operating results.

● We will have outstanding shares of convertible preferred stock, warrants and Debentures, some of which contain "full-ratchet" anti-dilution protection, which may cause significant dilution to our stockholders.

● Sales of our common stock in the public market after this offering by our existing security holders may cause the market price of our shares of common stock to decline.

● We do not intend to pay dividends for the foreseeable future, and as a result, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock.

● If analysts do not publish research about our business or if they publish inaccurate or unfavorable research, our stock price and trading volume could decline.

● We may be subject to securities litigation, which is expensive and could divert management attention.

● Anti-takeover provisions contained in our amended and restated certificate of incorporation and amended and restated bylaws, as well as provisions of Delaware law, could impair a takeover attempt.

● Our amended and restated certificate of incorporation will include exclusive forum provisions, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers, employees or stockholders.

● Investors in this offering will experience immediate dilution upon the closing of the offering.

● Prior to this offering, there has been no public market for our common stock, and we cannot assure you that a market for our common stock will develop or that the market price of shares of our common stock will not decline following the offering.

**THE OFFERING**

---

| | |
|:---|:---|
| **Common stock offered by us** | 4,545,454 shares (or 5,227,272 shares if the underwriters exercise their option to purchase additional common stock in full) |
| **Shares of common stock outstanding** | 13,136,701 shares of common stock. |
| **Shares of common stock outstanding after giving effect to the issuance of the shares registered hereunder** | 17,682,155 shares of common stock (or 18,363,973 shares if the underwriters exercise their option to purchase additional common stock in full). |
| **Shares of common stock outstanding after giving effect to the issuance of the shares registered hereunder, the Warrant Exercise and the Service Provider Warrant Exercise** | 19,680,071 shares of common stock (or 20,361,889 shares if the underwriters exercise their option to purchase additional common stock in full). |
| **Use of proceeds** | We estimate that we will receive net proceeds from the sale of shares of our common stock in this offering of approximately $22.3 million (or approximately $25.7 million if the underwriters exercise their option to purchase additional shares of common stock in full), assuming an initial public offering price of $5.50 per share, which is equal to the midpoint of the price range set forth on the cover page of this prospectus, and after deducting underwriting discounts and commissions and estimated offering expenses payable by us.<br>We currently intend to use the net proceeds from this offering for working capital to fund growth and other general corporate purposes, which may include research and development, sales and general administrative matters and capital expenditures. We may also use a portion of the net proceeds to acquire or make investments in businesses, products, offerings and technologies, although we do not have agreements or commitments for any material acquisitions or investments at this time. Our management will have broad discretion in the application of the net proceeds from this offering and investors will be relying on the judgment of our management regarding the application of the proceeds. See *"Use of Proceeds."* |
| **Option to purchase additional shares of common stock**<br>| The underwriters have a 30-day option extending from the date of this prospectus to purchase up to 681,818 additional shares of common stock from us to cover over-allotments. |
| **Risk factors**<br>| You should carefully consider all of the information set forth in this prospectus and, in particular, the specific factors set forth under "*Risk Factors*" on page 10, before deciding whether to invest in our common stock. |
| **Lock-up** | We, our directors, executive officers, and certain shareholders have agreed, subject to certain exceptions, not offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, make any short sale or otherwise transfer or dispose of, directly or indirectly, any shares of common stock or securities convertible into or exchangeable or exercisable for or that represent the right to receive any shares of common stock, or enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of shares of common stock for a period of 180 days after the date of this prospectus. See "*Underwriting*." |
| **Representatives' Warrants** | We have agreed to issue to the Representatives or their designees at the closing of this offering, warrants to purchase the number of shares of our common stock equal to 3.5% of the aggregate number of shares sold in this offering (the "Representatives' Warrants"). The Representatives' Warrants will be exercisable at any time and from time to time, in whole or in part, for a period of three (3) years from the date of commencement of sales in this offering and may be exercised on a cashless basis. The exercise price of the Representatives' Warrants will equal 120% of the initial public offering price per share, subject to adjustments. See "Underwriting." |
| **Listing**<br>| We have applied to list our shares of common stock on The Nasdaq Capital Market under the symbol "FFLY". While we have been in communications with Nasdaq regarding such listing, no assurance can be given that our listing will be approved by Nasdaq or that a trading market will be approved by Nasdaq or that a trading market will develop for the common stock. We will not proceed with this offering in the event the common stock is not approved for listing on Nasdaq. |

---

The number of shares of our common stock outstanding before and after this offering is based on 13,136,701 shares of our common stock outstanding as of October 21, 2025 and excludes:

● 6,322,480 shares of our common stock issuable upon exercise of options to purchase shares of our common stock outstanding as of October
 21, 2025, with a weighted average exercise price of $3.40 per share;

● 1,350,215 shares of our common stock issuable upon the conversion of Debentures (as defined below) that will not be exchanged for Series A
 Preferred Stock in the Exchange;

● 7,492,105 shares
 of our common stock issuable upon the conversion of Series A Preferred Stock issued in the Exchange; and

● 2,000,000 shares of our common stock reserved for issuance following this offering under our equity incentive plans.

In addition, the number of shares of common stock outstanding before the offering does not give effect to:

● amendments to our amended and restated certificate of incorporation and amended and restated by-laws to be adopted prior to the completion
of this offering;

● any exercise of the Representatives' Warrants; and

● any exercise of the underwriters' option to purchase additional shares of common stock in this offering.

**SUMMARY FINANCIAL DATA**

The following tables summarize our financial data as of the dates and for the periods presented. We have derived the summary statements of operations data for the years ended December 31, 2024 and 2023, and the balance sheets data as of December 31, 2024 and 2023, from our audited condensed financial statements included elsewhere in this prospectus. The summary statements of operations data for the six months ended June 30, 2025 and 2024 and the balance sheet data as of June 30, 2025 and 2024 have been derived from our unaudited condensed financial statements and related notes included elsewhere in this prospectus. Our historical results are not necessarily indicative of the results that may be expected in the future.

The following summary financial data should be read in conjunction with the section titled "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" and our consolidated financial statements and related notes included elsewhere in this prospectus.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Six** **Months Ended June 30,** | **Six** **Months Ended June 30,** |
|  | **2024** | **2023** | **2025** | **2024** |
|  | **(in thousands, except per share data)** | **(in thousands, except per share data)** | **(in thousands, except per share data)** | **(in thousands, except per share data)** |
|  | | | **(unaudited)** | **(unaudited)** |
| Revenues, net | $42477 | $41496 | $22909 | $21542 |
| Cost of revenues | 32282 | 31997 | 19072 | 15690 |
| Gross profit | 10195 | 9499 | 3837 | 5852 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | 11443 | 8942 | 6183 | 4779 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 4293 | 4939 | 2231 | 2093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 15736 | 13881 | 8414 | 6872 |
| Loss from operations | (5541) | (4382) | (4577) | (1020) |
| Other (expenses) income: |  |  |  |  |
| Interest income | 25 | 35 | 18 | 15 |
| Interest expense | (235) | (383) | (48) | (121) |
| Change in fair value of convertible debentures | (4158) | 727 | (480) | (1570) |
| Change in fair value of the common stock purchase warrant liability | (3616) | (3305) | (943) | 31 |
| Other income | 10 |  | 16 |  |
| Other expense | - | - | (69) | (43) |
| Total other expense | $(7974) | $(2926) | $(1506) | $(1688) |
| Loss from operations before income taxes | (13515) | (7308) | (6083) | (2708) |
| Provision for income taxes | 22 | 75 | - | - |
| Net loss | $(13537) | $(7383) | $(6083) | $(2708) |
| Net loss per share attributable to common stockholders: |  |  |  |  |
| Basic and diluted | $(0.99) | $(0.57) | $(0.42) | $(0.20) |
| Weighted average common shares: |  |  |  |  |
| Basic and diluted | 13699600 | 13031044 | 14647530 | 13355871 |
| Pro forma net loss per share attributable to common stockholders, basic and diluted (unaudited) <sup>(12)</sup> | $(0.86 ) |  | $(0.37 ) |  |
| Pro forma weighted average common shares outstanding, basic and diluted (unaudited) <sup>(12)</sup> | 15690217 |  | 16638147  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) See
 Note 2 – "Summary of Significant Accounting Policies" to our consolidated
 financial statements included elsewhere in this prospectus for an explanation of the method
 used to calculate the historical basic and diluted, net loss per share and the weighted average
 number of shares used in the computation of the per share amount.

(2) The
 pro forma information in the table above has been completed to give effect to (i)
 the filing and effectiveness of our amended and restated certificate of incorporation, which
 will occur immediately prior to the completion of this offering, (ii) the Exchange, (iii)
 the Warrant Exercise, and (iv) the Service Provider Warrant Exercise, but does not give
 effect to any exercise of the underwriters' option to purchase additional shares of
 common stock in this offering. The following table sets forth the computation of the
 pro forma basic and diluted net loss per share assuming the offering is completed January
 1, 2024:

---

| | | |
|:---|:---|:---|
| <br>***(In thousands, except share data)*** | **Year Ended**<br>**December 31,**<br>**2024** | **Six Months Ended**<br>**June 30,**<br>**2025** |
| **Numerator** |  |  |
| Net loss attributable to common shareholders | $(13537) | $(6083) |
| **Denominator** |  |  |
| Weighted average common shares outstanding - basic and diluted | 13699600 | 14647530 |
| Pro Forma adjustment for the exercise of common stock purchase warrants | 1990617 | 1990617 |
|  | 15690217 | 16638147 |
| Pro forma net loss per share attributable to common shareholders, basic and diluted | $(0.86) | $(0.37) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of June 30,** | **As of June 30,** |
|  | **2024** | **2023** | **2025** | **2024** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  | | | **(unaudited)** | **(unaudited)** |
| Cash and restricted cash | $2587 | $2689 | $2384 | $1949 |
| Working capital(1) | 3602 | 2767 | 625 | 3673 |
| Total assets | 21285 | 19100 | 21556 | 19337 |
| Total liabilities | 77023 | 67139 | 82802 | 68208 |
| Accumulated deficit | (76405) | (62868) | (82488) | (65574) |
| Total stockholders' deficit | (55738) | (48039) | (61246) | (48870) |

---

(1) We define working capital as current assets less
 current liabilities. See our consolidated financial statements and related notes included elsewhere in this prospectus for further
 details regarding our current assets and current liabilities.

---

| | | | |
|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
| <br>***(In thousands, except share amounts)*** | **Actual** | **Pro Forma <sup>(1)</sup>** | **Pro Forma As Adjusted <sup>(23)</sup>** |
| **Consolidated Balance Sheet Data** |  |  |  |
| Cash | $2384 | $2384 | $24034 |
| Working capital <sup>(4)</sup> | 625 | 625 | 22275 |
| Total assets | 21556 | 21556 | 43206 |
| Total liabilities | 82802 | 30653 | 30744 |
| Convertible preferred stock |  | 7 | 7 |
| Additional paid-in capital, convertible preferred stock |  | 42372 | 42372 |
| Common stock | 13 | 15 | 20 |
| Additional paid-in capital, common stock | 21229 | 30997 | 52642 |
| Accumulated deficit | (82488) | (82488) | (82488) |
| Total stockholders' deficit | (61246) | (9097) | 12553 |

---

(1) The pro forma balance sheet column in the table above has been completed
 to give effect to (i) the filing and effectiveness of our amended and restated certificate of incorporation, which will occur immediately
 prior to the completion of this offering, (ii) the Exchange, (iii) the Warrant Exercise, and (iv) the Service Provider Warrant Exercise,
 but does not give effect to any exercise of the underwriters' option to purchase additional shares of common stock in this
 offering.

(2) The pro forma as adjusted column reflects (i) the pro forma adjustments
 set forth in footnote (1) above, (ii) the sale of 4,545,454 shares of our common stock in this offering at an assumed initial
 public offering price of $5.50 per share (which is equal to the midpoint of the price range set forth on the cover page
 of this prospectus), after deducting estimated underwriting discounts and commissions and estimated offering expense payable
 by us. This pro forma information does not give effect to any exercise of the underwriters' option to purchase additional
 shares of common stock in this offering.

(3) The pro forma as adjusted information discussed above is illustrative
 only and will depend on the actual initial public offering price and other terms of this offering determined at pricing. Each $1.00
 increase or decrease in the assumed initial public offering price per share of $5.50 (which is equal to the midpoint
 of the price range set forth on the cover page of this prospectus) would increase or decrease, as applicable, the pro forma as adjusted
 amount of each of cash and cash equivalents, total assets, additional paid-in capital and total stockholders' deficit by approximately
 $4.2 million, assuming that the number of shares of common stock offered by us, as set forth on the cover page of this prospectus
 remains the same and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by
 us. Similarly, each 1,000,000 share increase or decrease in the number of shares of common stock offered in this offering would increase
 or decrease, as applicable, the pro forma as adjusted amount of each of cash and cash equivalents, total assets, additional paid-in
 capital and total stockholders' deficit by $5.1 million, assuming that the initial public offering price per share
 remains at $5.50 (which is equal to the midpoint of the price range set forth on the cover page of this prospectus),
 and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us.

(4) We define working capital as current assets less current liabilities. See our unaudited interim condensed consolidated financial statements and related notes included elsewhere in this prospectus for further details regarding our current assets and current liabilities.

**RISK FACTORS**

*An investment in our common stock involves a high degree of risk. You should carefully consider each of the following risks and all of the information set forth in this prospectus, including our consolidated financial statements and related notes included elsewhere in this prospectus and in the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" before deciding to invest in our common stock. While we believe the risks and uncertainties described below are the material risks currently facing us, additional risks and uncertainties not presently known to us or that we currently believe to be immaterial also may impair our business, financial condition, results of operations and cash flows. If any of the following risks and uncertainties develops into actual events, our business, financial condition, results of operations and cash flows could be materially adversely affected. In that case, the price of our common stock could decline, and you may lose all or part of your investment.*

*Unless the context otherwise requires, all references in this subsection to the "Company," "we," "us" or "our" refer to FireFly Automatix, Inc. and its subsidiaries.*

**Risks Related to Our Business and Industry**

***We are a growth-stage company and have a limited operating history at the current scale of our business, which makes it difficult to evaluate our current business and future prospects.***

We began operations in 2010 and incorporated as a Delaware corporation in 2015, and we have a limited operating history at the current scale of our business. Our business plan is still in development, and we likely do not recognize all of the challenges that may emerge and affect our proposed business. We have encountered, and will likely continue to encounter, risks and difficulties frequently experienced by growing companies in rapidly evolving industries, including challenges in accurate financial planning and forecasting, increasing competition and expenses as we continue to grow our business, and attracting and retaining customers. You should consider our business and prospects in light of the risks and difficulties that we may encounter as a business with a limited operating history. We may not be successful in addressing these and other challenges we may face in the future, and our business, operating results, and financial condition may be adversely affected if we do not manage these risks successfully. We may not be able to maintain our current rate of growth, which is a risk characteristic often shared by companies with limited operating histories participating in rapidly evolving industries.

***We have a history of net losses. If we do not achieve profitability, our business, financial condition and operating results will be adversely affected.***

We have experienced net losses each year since we began operations in 2010, including a net loss of approximately $13.5 million for the year ended December 31, 2024. We had a net loss of approximately $6.1 million for the six months ended June 30, 2025. We had an accumulated deficit of $76.4 million and a total stockholders' deficit of $(55.7) million as of December 31, 2024. We had an accumulated deficit of $82.5 million and a total stockholders' deficit of $(61.2) million as of June 30, 2025. We anticipate that our operating expenses and capital expenditures will increase substantially in the foreseeable future as we continue to invest in our machines and technologies, acquire new customers, expand our business and operations domestically and internationally, hire additional employees, develop and enhance our machines and related parts and service offerings, expand our marketing and sales operations, and enhance our infrastructure. Our expansion efforts may prove more expensive than we anticipate, and we may not succeed in increasing our revenues sufficiently to offset these higher expenses. Given the operating and capital expenditures associated with our business, we may not achieve profitability in the foreseeable future and cannot assure you that we will ever be able to achieve profitability.

***There is substantial doubt about our ability to continue as a going concern, and we will need additional financing to execute our business plan, to fund our operations and to continue as a going concern.***

Since inception, we have experienced recurring operating losses and negative cash flows and we expect to continue to generate operating losses and consume significant cash resources for the foreseeable future. There is substantial doubt regarding our ability to continue as a going concern. Our independent registered public accounting firm has expressed in its auditors' report on our 2023 and 2024 consolidated financial statements, included in this prospectus, an emphasis of matter paragraph relating to our ability to continue as a "going concern," meaning that our recurring losses from operations and negative cash flows from operations raise substantial doubt regarding our ability to continue as a going concern. We have prepared our consolidated financial statements on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. Our consolidated financial statements do not include any adjustment to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty. If are unable to generate cash from operations or raise capital in equity or debt financings as needed, our business will be adversely affected.

In addition, under our outstanding Debentures, our failure to maintain certain minimum cash flow amounts would constitute an event of default thereunder, which would give the holders of the Debentures the right to declare the outstanding balances immediately due and payable. We have not complied with such minimum cash flow amounts in prior periods, but the holders of the Debentures have agreed to waive such non-compliance and, as such, we are not currently in default under the Debentures. However, there can be no guarantee that we will be able maintain compliance with other covenants under the Debentures, or that the holders will continue to waive our non-compliance with the minimum cash flow covenants. If we are in default under the Debentures and the holders declare the outstanding balances immediately due and payable, we may not have sufficient funds to satisfy such obligations and may need to pursue a reorganization proceeding under applicable bankruptcy or insolvency laws.

***Our business plans require a significant amount of capital, which will require us to sell additional equity securities or incur additional indebtedness that will dilute our stockholders or introduce covenants that may restrict our operations.***

Our capital expenditures will continue to be significant in the foreseeable future as we expand our business. The fact that we have a limited operating history at our current scale means we have limited historical data on the demand for our products. As a result, our future capital requirements are uncertain and actual capital requirements may be different from those we currently anticipate. We expect that we will need to seek equity or debt financing in both the near- and long-term to finance a portion of our capital expenditures.

Our ability to obtain the necessary financing to carry out our business plan is subject to a number of factors, including general market conditions and investor acceptance of our business model. These factors may make the timing, amount, terms and conditions of such financing unattractive or unavailable to us. If we are unable to raise sufficient funds, we will have to significantly reduce our spending, delay or cancel our planned operations or substantially change our strategy. As a result, we may not be able to obtain any funding, and we may not have sufficient resources to conduct our business as projected, both of which could mean that we would be forced to curtail or discontinue our operations.

In addition, our future capital needs and other business reasons may require us to sell additional equity or debt securities. The sale of additional equity or convertible securities would dilute our stockholders. The incurrence of indebtedness would result in increased debt service obligations and covenants that potentially restrict our operations.

If we cannot raise additional funds, our business, prospects, financial condition, results of operations, and cash flows will be materially and adversely affected.

***Our long-term results depend upon our ability to successfully introduce and market new products, including the AMP-L100 and the AMP-X100, which may expose us to new and increased challenges and risks.***

Our growth strategy depends, in part, on our ability to successfully introduce and market new products, such as the AMP-L100 and the AMP-X100. If we experience significant future growth, we may be required not only to make additional investments in hiring additional workforce to support our manufacturing capacity, but also to expand our infrastructure.

As we introduce new products or refine, improve or upgrade versions of existing products, we cannot predict the level of market acceptance or the amount of market share these products will achieve, if any. We cannot assure you that we will not experience material delays in the introduction of new products in the future. For example, we recently experienced delays in receiving motors used in our AMPs from our sole supplier of such motors. Such delays have limited our ability to effectively scale up our production and shipment of AMPs, and we expect that these delays will continue through the remainder of 2025. While we are in the process of working with alternate supply relationships for these motors, we may be unable to engage alternative suppliers in a timely manner or at all, which may further limit the manufacture and shipment of our AMPs.

In addition, consistent with our strategy of offering new products and product refinements, we expect to continue to use a substantial amount of capital for product refinement, research and development, and sales and marketing. In addition, the time that it takes for us to recover our investment in a new product depends on our customer acquisition costs, customer retention rates, and a variety of factors. Because of the lengthy period required to recoup our investment, unexpected developments beyond our control could occur that result in customers ceasing or significantly curtailing purchases of our products before we generate any meaningful revenue therefrom. As a result of any of the foregoing, we may ultimately be unable to recover the full investment that we make in a new product or achieve any level of profitability from such product.

If we are unable to successfully introduce, integrate, and market new products, including the AMP-L100 and the AMP-X100, our business, prospects, financial condition, results of operations, and cash flows may be materially and adversely affected.

***We rely on a limited number of suppliers for critical product components.***

We depend on a limited number of suppliers for certain components and materials used in manufacturing some of our machines, including some single-source suppliers, for which no immediately available alternative supplier exists. This reliance has subjected us, and could in the future subject us, to price rigidity, periodic supply constraints, and challenges in producing our products with the required quality and quantities. For example, in April 2025, our supplier of motors used in the reels of our AMPs experienced delays in manufacturing and shipping motors to us. As a result, the production and shipment of AMPs for some orders were delayed, which also delayed our recognition of the related revenue. While we are in the process of working with alternate supply relationships for these motors, we may be unable to engage alternative suppliers in a timely manner or at all. This delay and future disruptions in our supply chain could adversely affect our business and results of operations, including our ability to effectively scale up production and shipment of our AMPs. We may be unable to identify and engage alternate suppliers in the short term, or at all, at prices or quality levels that are acceptable to us. Further, any such alternative suppliers may be located a long distance from our manufacturing facilities, which may lead to increased costs or delays.

In addition, when industry supply is constrained or the supply chain is disrupted, our suppliers may allocate volumes away from us and to their other customers, which may include our competitors. As a result, our business, operating results, financial condition and cash flows may be adversely affected.

***If we fail to scale our business operations or otherwise manage our future growth effectively as we attempt to rapidly grow our company, we may not be able to produce, market, service and sell (or lease) our products successfully.***

We intend to expand our operations significantly, which will require hiring, retaining and training new personnel, controlling expenses, expanding facilities, and expanding administrative infrastructure, systems, and processes. Our future operating results depend to a large extent on our ability to manage this expansion and growth successfully. Risks that we face in undertaking this expansion include, among others:

● attracting and hiring skilled and qualified personnel to support our expanded operations at existing facilities or operations at any facilities we may construct or acquire in the future;

● managing a larger organization with a great number of employees in different divisions and geographies;

● training and integrating new employees into our operations to meet the growing demands of our business;

● controlling expenses and investments in anticipation of expanded operations;

● establishing or expanding manufacturing, sales and service facilities;

● managing regulatory requirements and permits, labor issues and controlling costs in connection with the construction of additional facilities or the expansion of existing facilities;

● enhancing administrative infrastructure, systems and processes; and

● addressing any new markets and potentially unforeseen challenges as they arise.

Furthermore, we have limited experience to date in high volume manufacturing of our products and we cannot assure that we will be able to develop efficient, low-cost manufacturing capabilities and processes, and reliable sources of supply, that will enable us to meet the quality, price, engineering, design and production standards, as well as the production volumes, required to successfully market our products as our operations expand. Any failure to effectively manage our growth could materially and adversely affect our business, prospects, financial condition, results of operations, and cash flows.

***We may not be successful in entering into distributor relationships or other commercial partnerships, which could adversely affect our operating results and our ability to compete in our industry.***

From time to time we may seek to enter into relationships with distributors or other commercial partners. However, there can be no guarantee that we will be able to enter into such relationships on terms favorable to us, or at all. If we are unable to expand our distribution and sales networks, we may be unable to compete effectively with larger competitors who have greater brand recognition and sales networks than we do and our business may be adversely affected. In addition, even if we do enter into such relationships, we may not experience expanded sales or the terms of such relationships may result in significantly lower margins to us on sales of our products.

***Our business and operating results are subject to seasonal fluctuations, which could result in fluctuations in our operating results and stock price.***

We experience moderate seasonal fluctuations in our sales and operating results. Our financial results, including our gross margins, may fluctuate from period to period based on the number of available selling days in a particular period, which can be impacted by a number of factors, such as holidays or days of severe inclement weather in a particular geography, the mix of products sold and the geographic mix of where products are sold. Our sales are subject to some seasonality, as turf harvesters and golf courses primarily make equipment purchases in the spring. In addition, in our experience, our country club and municipality customers typically establish operating budgets in the fourth quarter of each year, to determine capital expenditure budgets for the following year. As a result, purchases by such entities may be delayed until after such budgeting processes are completed.

If, for any reason, we miscalculate the demand for our products or our product mix leading up to seasonal purchases, our sales in such periods could decline, resulting in higher labor costs as a percentage of sales, lower margins and excess inventory, which could cause our annual operating results to suffer and our stock price to decline. Due to this seasonality, the possible adverse impact from other risks associated with our business, including atypical weather, consumer spending levels and general economic and business conditions, is potentially greater if any such risks occur during our peak sales seasons.

***Adverse changes in the new housing market, including due to increased interest rates, could adversely affect demand for our PATH machines.***

Rising interest rates could adversely affect the home construction market, which may result in reduced demand for turf for yards and neighborhood parks. As demand for turf falls, demand for our PATH machines may be adversely affected. For example, we have recently experienced a decline in demand for our PATH machines. We believe that such decline is due to reduced housing starts and higher interest rates.

Housing development projects are subject to various external factors beyond our control, such as changes in local zoning laws, delays in permitting, fluctuations in construction costs, interest rate volatility, and shifts in market demand for commercial and residential properties. These risks are exacerbated by the cyclical nature of the real estate market, where downturns in the economy or disruptions in the credit markets may result in reduced project feasibility, lower occupancy rates, or diminished property values. Downturns in housing development could also affect development of other properties that require turf, such as municipal parks.

***Our operations and financial results may be affected by competitive conditions.***

The market for our products is highly competitive and rapidly evolving. Most of our competitors have working versions of various types of harvesting and mowing machines, and some are in the process of introducing automated mowers. Our success depends both on our ability to manufacture and support our harvesters and mowers and to continue to improve our product offerings to ensure they are superior to our competitors' machines. Refinements and improvements to the product line may have technical failures, their production may be delayed, they may have higher production costs than originally expected or they may not be accepted by our customers. If we are not able to anticipate, identify, develop, and market products that respond to changes in customer preferences, demand for our products may be reduced and our operating results would be adversely affected.

Additionally, existing competitors may introduce similar technologies into the market prior to our ability to produce sufficient machines to meet customer demand or may secure patent protection of technology we rely upon in the development of our products. Even though we may be first to market with some products, competitors may attempt to copy our products or utilize our technology to develop superior machines, and there is no guarantee we can effectively defend against such acts.

Some of our competitors and potential competitors have significantly greater resources than we do. Increased competition may result in pricing pressure for us and decrease our market share, any of which could negatively affect our revenue and future operating results and our ability to grow our business.

A number of factors could impact our ability to compete, including:

● changes in technology and pricing offered by us or our competitors;

● the ability to adapt to new technologies and changes in requirements of our customers;

● customer acquisition and retention costs; and

● industry consolidation and the number and rate of new entrants.

We may not be able to compete successfully against current and future competitors. In addition, competition may intensify as our competitors expand into our market segments or geographic markets. If we cannot compete successfully against our competitors, our ability to grow our business and achieve profitability could be impaired.

***Our existing and future levels of indebtedness could adversely affect our financial health, ability to obtain financing in the future, ability to react to changes in our business and ability to fulfill our obligations under such indebtedness.***

As of June 30, 2025, we had outstanding convertible debenture indebtedness in the aggregate principal amount and accrued interest of approximately $16.4 million maturing on January 31, 2028. This level of indebtedness could:

● require us to dedicate a substantial portion of funds to the payment of principal and interest on our indebtedness, thereby reducing the
amount of funds to be used for working capital, acquisitions, product development, capital expenditures and other general corporate purposes;

● limit our ability to obtain additional financing for working capital, acquisitions, product development, capital expenditures, debt service
requirements and other general corporate purposes;

● limit our ability to refinance indebtedness or cause the associated costs of such refinancing to increase;

● increase our vulnerability to general adverse economic and industry conditions, including interest rate fluctuations; and

● place us at a competitive disadvantage compared to our competitors with proportionately less debt or comparable debt at more favorable
interest rates which, as a result, may be better positioned to withstand economic downturns.

Any of the foregoing impacts of our level of indebtedness could have a material adverse effect on us.

***We may not succeed in maintaining and strengthening our brand, which would materially and adversely affect customer acceptance of our products and our business, prospects, financial condition, results of operations, and cash flows.***

Our business and prospects heavily depend on our ability to develop, maintain, and strengthen our brand. If we are not able to maintain and strengthen our brand, we may lose the opportunity to build a critical mass of customers. Our ability to develop, maintain, and strengthen our brand will depend heavily on our ability to provide high quality products and technology and engage with our customers as intended, as well as the success of our customer development and marketing efforts. The AgTech industry is intensely competitive, and we may not be successful in building, maintaining, and strengthening our brand. Many of our current and potential competitors have greater name recognition, broader customer relationships and substantially greater marketing resources than we do. If we do not develop and maintain a strong brand, our business, prospects, financial condition, results of operations, and cash flows could be materially and adversely impacted.

In addition, if incidents occur or are perceived to have occurred, whether or not such incidents are our fault, we could be subject to adverse publicity. In particular, given the popularity of social media, any negative publicity, whether true or not, could quickly proliferate and harm consumer perceptions and confidence in our brand. Our ability to successfully position our brand could also be adversely affected by perceptions about the quality of our competitors' products.

***We rely on complex machinery for our operations, and production involves a significant degree of risk and uncertainty in terms of operational performance, safety, security, and costs.***

We rely on complex machinery for our operations and our production will involve a significant degree of uncertainty and risk in terms of operational performance, safety, security, and costs. Our manufacturing plant consists of large-scale machinery combining many components. These manufacturing plant components are likely to suffer unexpected malfunctions from time to time and will depend on repairs and spare parts to resume operations, which may not be available when needed. Unexpected malfunctions of manufacturing plant components may significantly affect operational efficiency. Operational performance and costs can be difficult to predict and are often influenced by factors outside of our control, such as, but not limited to, scarcity of natural resources, environmental hazards and remediation, costs associated with decommissioning of machines, labor disputes and strikes, difficulty or delays in obtaining governmental permits, damages or defects in electronic systems, industrial accidents, pandemics, fire, seismic activity, and natural disasters.

In addition, our operations and production may be subject to interruptions, delays, or failures resulting from earthquakes, fires, floods, adverse weather conditions, other natural disasters, power loss, terrorism, pandemics, geopolitical conflicts, other physical security threats, cyberattacks, or other catastrophic events. If any such events were to occur, our operations and production could be impacted and our customers may be subject to service disruptions or outages and we may not be able to recover our technical infrastructure and customer data in a timely manner to restart or provide our services, which may adversely affect our financial results. Furthermore, the majority of our employees are based in our headquarters located in Salt Lake City, Utah. If there is a catastrophic failure involving our manufacturing operations or major disruptive event affecting our headquarters or the Salt Lake area in general, we may be unable to operate our business.

We cannot guarantee that any of these events will not occur in the future, or that we will be able to address such events without damage or delay. Should operational risks materialize, it may result in the personal injury to or death of workers, the loss of production equipment, damage to manufacturing facilities, products, supplies, tools and materials, monetary losses, delays and unanticipated fluctuations in production, environmental damage, administrative fines, increased insurance costs, and potential legal liabilities, all which could have a material adverse effect on our business, prospects, financial condition, results of operations, and cash flows. Although we generally carry insurance to cover such operational risks, we cannot be certain that our insurance coverage will be sufficient to cover potential costs and liabilities arising therefrom. A loss that is uninsured or exceeds policy limits may require us to pay substantial amounts, which could adversely affect our business, prospects, financial condition, results of operations, and cash flows.

***Security breaches and other disruptions to our information technology infrastructure could interfere with our operations and could compromise our information as well as information of our employees, customers, and/or suppliers, exposing us to liability that could cause our business and reputation to suffer.***

In the ordinary course of business, we rely upon information technology networks and systems, some of which are managed by third parties, to process, transmit, and store electronic information and to manage or support a variety of business processes and activities, including supply chain, manufacturing, distribution, invoicing, and collection of payments from customers. We use information technology systems to record, process, and summarize financial information and results of operations for internal reporting purposes and to comply with regulatory financial reporting, legal, and tax requirements.

Additionally, we collect and store confidential data, including intellectual property, proprietary business information, and the proprietary business information of our customers and suppliers, as well as personal data of our customers and employees in data centers, which are often owned by third parties and maintained on their information technology networks. The secure operation of these information technology networks, and the processing and maintenance of this information, are critical to our business operations and strategy.

We have processes and procedures in place designed to enable us to recover from a disaster or catastrophe and continue business operations and have tested this capability under controlled circumstances. However, though we believe we maintain cybersecurity and data privacy programs sufficient for our current operations and will expand such programs as our operations grow, as an early-stage company, we have not made significant investments in such programs to date. Further, there are several factors ranging from human error to data corruption that could materially impact the efficacy of such processes and procedures, including by lengthening the time services are partially or fully unavailable to customers and end users. It may be difficult or impossible to perform some or all recovery steps and continue normal business operations due to the nature of a particular disaster or catastrophe, especially during peak periods, which could cause additional reputational damages, or loss of revenues, any of which would adversely affect our business and financial results.

Despite security measures, including exercises, tests, incident simulations, and system assessments designed to discover and address potential vulnerabilities, our information technology networks and infrastructure have been and may be vulnerable to intrusion, damage, disruptions, or shutdowns due to attacks by cyber criminals, employees', or suppliers' error or malfeasance, supply chain compromise, disruptions during the process of upgrading or replacing computer software or hardware, power outages, computer viruses, ransomware or other malware, telecommunication or utility failures, terrorist acts, natural disasters, or other events. Although we have not suffered any significant cyber incidents that resulted in material business impact, we have from time to time been, and expect to continue to be, the target of malicious cyber threat actors. The occurrence of any significant event could compromise our networks, and the information stored there could be accessed, obtained, publicly disclosed, lost, altered, misused, or stolen. Any such access, acquisition, disclosure, alteration, misuse, or other loss of information could result in legal claims or proceedings, government investigations, liability or regulatory penalties, disruption or shut down of our operations, disruption or shut down of our customers' operations, and damage to our reputation, which could adversely affect our business, results of operations, and financial condition. Furthermore, as security threats continue to evolve and increase in frequency and sophistication, we may need to invest additional resources to enhance information security.

***Our products rely on software and hardware that is highly technical, and if these systems contain errors, bugs, vulnerabilities, or design defects, or if we are unsuccessful in addressing or mitigating technical limitations in our systems, our business could be adversely affected.***

Our products rely on software and hardware that is highly technical and complex and may require modification and updates over the life of the products. In addition, our products depend on the ability of such software and hardware to store, retrieve, process and manage data. Our software and hardware may contain errors, bugs, vulnerabilities or design defects, and our systems are subject to certain technical limitations that may compromise our ability to meet our objectives. Some errors, bugs, vulnerabilities, or design defects may be inherently difficult to detect and may only be discovered after the code has been released for external or internal use. Although we will attempt to remedy any issues we observe in our products effectively and rapidly, such efforts may not be timely, may hamper production or may not be to the satisfaction of our customers.

Additionally, malicious threat actors may attempt to gain unauthorized access to our products in order to gain control of the products, change the products' functionality, user interface, or performance characteristics, interfere with the products' operations, or gain access to data stored in or generated by the products or to systems to which they connect. In addition, reports of unauthorized access to our products, systems, and data, regardless of their reliability, may result in the perception that the products, systems, or data are vulnerable to malicious or unauthorized modifications. Any unauthorized access to or control of our products or systems, any loss of data, or any perception that products, systems, or data are vulnerable could result in loss of sales based on customers' loss of confidence in our products, legal claims or proceedings against us, government investigation, liability, or regulatory penalties, which could adversely affect our business, results of operations, and financial condition.

Additionally, if we deploy updates to our software, whether to address issues, deliver new features or make desired modifications, and our over-the-air update procedures fail to properly update the software or otherwise result in unintended consequences to the software, the software within our customers' products will be subject to vulnerabilities or unintended consequences resulting from such failure of the over-the-air update until properly addressed.

If we are unable to prevent or effectively remedy errors, bugs, vulnerabilities or defects in our software and hardware, or fail to deploy updates to our software properly, we would suffer damage to our reputation, loss of customers, loss of revenue or liability for damages, any of which could adversely affect our business, prospects, financial condition, results of operations, and cash flows.

***Technical or regulatory limitations may impact our ability to effectively implement automation solutions.***

We utilize our internally developed automation software, digital tools, applications, and analytics in our AMPs to enable our autonomous mower technology. We also occasionally use generative artificial intelligence to assist in the development of these tools, primarily to review and troubleshoot code used in our technology.

While we believe the use of these emerging technologies can present significant benefits, it also creates risks and challenges. Data sourcing, technology, integration and process issues, programmed bias in decision-making algorithms, concerns over intellectual property, security concerns, and the protection of privacy could impair the adoption and acceptance of autonomous machine solutions.

Furthermore, any confidential information that we input into a third-party generative artificial intelligence platform could be leaked or disclosed to others, including sensitive information that is used to train the third parties' model. Additionally, if the data used to train the solution or the content, analyses, or recommendations that the machine learning and intelligence applications assist in producing is inaccurate, incomplete, biased or questionable, the software and tools we develop with the assistance of such technology may also be flawed. Flaws in our software could adversely affect our brand and reputation and may subject us to legal liability claims.

While we do not currently anticipate developing our own or integrating existing artificial intelligence platforms for use in our automation technology, we may, in the future, determine that such technology is needed in order to compete effectively in the evolving AgTech industry. The development of our own artificial intelligence applications, if any, may require additional investment in the development of proprietary systems, models, or datasets, which are often complex, may be costly and could impact the results of our operations. Developing, testing, and deploying these technologies may also increase the cost profile of our products due to the level of investment needed to enable such initiatives. The sale of these technologies, or their use by us or by our customers in our products, may also subject us to additional risks, including reputational harm, competitive harm or legal liabilities, due to their perceived or actual impact on privacy, intellectual property, or other contexts.

***We could be impacted by changes to or reallocation of radio frequency (RF) bands which could disrupt or degrade the reliability of our high precision augmented Global Positioning System (GPS) or other RF technology, which could impair our ability to develop and market GPS-based technology solutions, as well as significantly reduce our customers' profitability.***

Our current and planned autonomous mower technology depends upon the use of RF signals. These signals include, but are not limited to, GPS signals, other GPS-like satellite signals, augmented GPS services, cellular networks and other RF technologies that link equipment, operations, owners, dealers, and technicians. These radio services depend on frequency allocations governed by international and national government agencies. Any international or national reallocation of frequency bands, including frequency bands segmentation and band spectrum sharing, or other modifications concerning the regulation of frequency bands, could significantly disrupt or degrade the utility and reliability of our GPS-based products, which could negatively affect our ability to develop and market GPS-based technology solutions.

In addition, disruptions with GPS signals or the failure of telecommunications network operators to supply the bandwidth we need to support our products could interfere with the speed, availability, and usability of our equipment and services. If these GPS signals or RF signals become unavailable, our customers could be unable to use their equipment indefinitely. For our customers, this could result in lower turf crop yields, decreased operational efficiency, and higher equipment maintenance and wage costs. These cost increases could significantly reduce customers' profitability, sustainability, and demand for our products. As a result, our sales and revenue could significantly decrease, which would have a material adverse effect on our results of operations and our business.

***Our business may suffer if our products fail to perform as expected.***

If our products do not perform as expected, we may receive warranty claims and may have to perform post-sales repairs or recalls. We may also be subject to regulatory requirements and penalties that will impact our ability to develop, market, and sell our products. This may result in product delivery delays. It could also lead to product liability, breach of warranty, and consumer protection claims. These claims and warranty expenses could be significant. As a manufacturer of equipment, we must manage the cost and risk associated with product warranties, post-sale repairs and recalls, regulatory penalties, and product liability, breach of warranty, and consumer protection claims with respect to our products. In addition to post-sale repairs or recalls initiated by us for various reasons, investigations into our products by government regulators may compel us to initiate product recalls or may result in negative public perceptions about the safety of our products, even if we disagree with the regulator's determination. Such post-sale repairs or recalls, whether voluntary or involuntary, could result in significant expense, supply chain complications, and may harm our brand, business, prospects, financial condition, and operating results.

***Expanding our international operations, where we have limited operating experience, may subject us to increased business, regulatory, economic and political risks that could seriously harm our business, operating results and financial condition.***

Operating in international markets requires significant resources and management attention and subjects us to regulatory, economic and political risks that are different from those in the U.S.

We intend to continue to expand our operations internationally, but our expansion efforts may not be successful. In addition, we face risks in doing business internationally, including risks associated with sales to international governments and entities, that could constrain our operations, increase our cost structure, and compromise our growth prospects, including:

● international data privacy laws that may require data to be handled in a specific manner, including storing and processing data solely
on local in-country servers;

● difficulties in staffing and managing foreign operations, including in countries in which foreign employees may become part of labor unions,
employee representative bodies, workers' councils or collective bargaining agreements, and challenges relating to work stoppages
or slowdowns;

● different pricing environments, longer sales cycles, longer accounts receivable payment cycles and collections issues;

● new and different sources of competition and practices which may favor local competitors;

● weaker protection for intellectual property and other legal rights than in the U.S. and practical
 difficulties in enforcing intellectual property and other rights outside of the U.S.;

● compliance challenges related to the complexity of multiple, conflicting and changing governmental
 laws and regulations, including employment, tax, privacy and data protection and anti-bribery laws and regulations such as the U.S.
 Foreign Corrupt Practices Act (the "FCPA");

● increased financial accounting and reporting burdens and complexities;

● risks associated with foreign tax regimes, trade tariffs, or similar issues, which could negatively impact international adoption of our
products;

● risks associated with geopolitical conflicts, such as the conflicts in Ukraine;

● adverse tax consequences, including the potential for required withholding taxes for our overseas employees; and

● regional and economic political conditions.

Further, as we continue to expand internationally, we will become increasingly exposed to fluctuations in currency exchange rates. Future agreements with international partners may provide for payments to us to be denominated in local currencies, and in such cases, fluctuations in the value of the U.S. dollar and foreign currencies could impact our operating results when translated into U.S. dollars. Further, the strengthening of the U.S. dollar relative to foreign currencies could increase the real cost of our platform for our customers outside of the U.S., which could lead to the lengthening of our sales cycle or reduced demand for our products. If we are not able to successfully hedge against the risks associated with currency fluctuations, our financial condition and results of operations would be adversely affected. To date, we have not entered into any hedging transactions in an effort to reduce our exposure to foreign currency exchange risk. While we may decide to enter into hedging transactions in the future, the availability and effectiveness of these hedging transactions may be limited and we may not be able to successfully hedge our exposure, which would adversely affect our financial condition and results of operations.

***Our business depends largely on our ability to attract and retain talented employees, including senior management. If we lose the services of members of our senior management team, we may not be able to execute on our business strategy.***

Our future success depends on the continuing ability to attract, train, assimilate and retain highly skilled personnel, including engineers and sales personnel with experience in the AgTech market. We face intense competition for qualified individuals from numerous AgTech companies. We may not be able to retain current key employees or attract, train, assimilate or retain other highly skilled personnel in the future. We may incur significant costs to attract and retain highly skilled personnel, and we may lose new employees to competitors or other technology companies before we realize the benefit of our investment in recruiting and training them. As we move into new geographies, we will need to attract and recruit skilled personnel in those areas. If we are unable to attract and retain suitably qualified individuals who are capable of meeting our growing technical, operational, and managerial requirements, on a timely basis or at all, our business, operating results and financial condition may be adversely affected.

Our future success also depends in large part on the continued services of our senior management and other key personnel, including in particular our founder, current Chairman, and Chief Technology Officer, Steven Aposhian. We rely on our leadership team and key employees in the areas of engineering, sales and product development, design, marketing, operations, strategy, security, and general and administrative functions. Our senior management and other key personnel are all employed on an at-will basis, which means that they could terminate their employment with us at any time, for any reason, and without notice. We do not currently maintain key-person life insurance policies on any of our officers or employees. If we lose the services of senior management or other key personnel, our business, operating results, and financial condition could be adversely affected.

Volatility or lack of appreciation in our stock price may also affect our ability to attract and retain key employees. Employees may be more likely to leave us if the shares they own or the shares underlying their vested options have significantly appreciated in value relative to the original purchase price of the shares or the exercise price of the options, or conversely, if the exercise price of the options that they hold are significantly above the market price of our common stock. If we are unable to retain employees, or if we need to increase our compensation expenses to retain our employees, our business, operating results and financial condition could be adversely affected.

***Our management will be able to exert influence over our affairs.***

Following this offering, including the exercise of certain Warrants in the Warrant Exercise and the Service Provider Warrant Exercise immediately prior to the completion of this offering, we expect that our senior management team will control a significant portion of the outstanding shares of our common stock. These individuals, if acting together, will be able to exercise significant influence on the outcome of matters requiring approval by our stockholders, including, but not limited to, the election of directors and significant corporate transactions. This concentration of ownership may have the effect of delaying or preventing a change in control and might affect the market price of our common stock.

***We face risks related to our contracts with state and local government entities, which could harm our results of operations.***

We expect to enter into agreements with local and state government entities as we expand our business into the sports turf market, such as municipal golf courses and parks. Sales to government entities, including municipalities, are subject to a number of risks. Selling to government entities can be highly competitive, expensive and time consuming, often requiring significant upfront time and expense without any assurance that we will successfully sell our products to such governmental entity. Government entities may require contract terms that differ from our standard arrangements. In addition, government demand and payment for our products may be more volatile as they are affected by public sector budgetary cycles, funding authorizations, and the potential for funding reductions or delays, making the time to close such transactions more difficult to predict. This risk is enhanced as the size of such sales to the government entities increases. If we are successful in expanding our customer base to include more government entities, we may be subject to increased scrutiny, potential reputational risk, or potential liability should our platform and products fail to perform as contemplated in such deployments or should we not comply with the terms of our government contracts or government contracting requirements.

***Unfavorable weather conditions or natural catastrophes that reduce agricultural production and demand for agriculture and turf equipment could directly and indirectly affect our business.***

The purchasing decisions of our customers, particularly the purchasers of agriculture and turf equipment, can be significantly affected by poor or unusual weather conditions. Such conditions include:

● i nsufficient levels of rain, which prevent planting new turf and may cause growing turf to die or result in lower yields;

● excessive rain or flooding can prevent planting from occurring at optimal times and may cause crop loss through increased disease or mold growth;

● temperatures outside normal ranges, which can cause crop failure or decreased yields and may also affect disease incidence;

● natural disasters such as regional floods, hurricanes or other storms, droughts, diseases, wildfires, and pests, either as a physical effect
 of climate change or otherwise, which have had, and could in the future have, significant negative effects on agricultural and livestock
 production;

● adverse weather conditions in a particular geographic region, particularly during the important spring selling season; and

● drought conditions can adversely affect sales of mowing equipment and can similarly cause lower sales volume.

Each of these conditions could negatively affect demand for agricultural and turf equipment and the financial condition and credit risk of our customers.

**Risks Related to Financial and Accounting Matters**

***Our operating results may fluctuate significantly, which makes our future results difficult to predict.***

Our quarterly and annual operating results have fluctuated in the past and are expected to fluctuate in the future. Additionally, we have a limited operating history with the current scale of our business, which makes it difficult to forecast our future results and subjects us to a number of uncertainties, including our ability to plan for and anticipate future growth. As a result, you should not rely upon our past quarterly and annual operating results as indicators of future performance. We have encountered, and will continue to encounter, risks and uncertainties frequently experienced by growing companies in rapidly evolving markets, such as the risks and uncertainties described herein. Our operating results in any given quarter can be influenced by numerous factors, many of which are unpredictable or are outside of our control, including, but not limited to:

● our ability to generate revenues from our products and services;

● our ability to attract and retain customers;

● our ability to recognize revenue or collect payments from customers or other third parties in a particular period;

● the ability of our third-party partners to manufacture and deliver components, including due to global supply chain issues;

● the pricing of our products and services;

● the timing, cost of and mix of new and existing sales and marketing and promotional efforts;

● changes to our products or the development and introduction of new products or services by our competitors;

● system failures, disruptions, breaches of security or privacy, whether internally or at third parties, and the costs associated with any
such breaches and remediation;

● negative publicity associated with our products;

● the timing of incurring additional expenses, such as increases in sales and marketing or research and development;

● adverse litigation judgments, settlements, or other litigation-related costs;

● other changes in the legislative or regulatory environment, including with respect to education standards and privacy and cybersecurity,
or actions by governments or regulators, including fines, orders, or consent decrees;

● changes in U.S. generally accepted accounting principles; and

● changes in domestic and global business and macroeconomic conditions, including as a result of increasing
 interest rates, inflation, tariffs, trade wars, instability in the global banking system, and global unrest including the wars
 in Gaza and Ukraine.

The impact of one or more of the foregoing and other factors may cause our operating results to vary significantly. As such, quarter-to-quarter comparisons of our operating results may not be meaningful and should not be relied upon as an indication of future performance. If we fail to meet or exceed the expectations of investors or securities analysts, then the trading price of our common stock could fall substantially, and we could face costly lawsuits, including securities class action suits. Furthermore, any quarterly or annual fluctuations in our operating results may, in turn, cause the price of our stock to fluctuate substantially.

***We have identified material weaknesses in our internal control over financial reporting, and the failure to achieve and maintain effective internal controls over financial reporting could harm our business and negatively impact the value of our common stock.***

Effective internal control over financial reporting is necessary for us to provide reliable financial reports in a timely manner. In connection with the preparation of our consolidated financial statements for the year ended December 31, 2024, we concluded that there were material weaknesses in our internal control over financial reporting relating to (a) an ineffective control environment, including an insufficient number of personnel with an appropriate level of knowledge and experience to create the proper environment for effective internal control over financial reporting, as well as the other components of the COSO framework, including appropriate risk assessment, control activities, information and communication, and monitoring activities; (b) ineffective controls for information systems supporting our key financial reporting processes and (c) ineffective process-level controls. A material weakness is a significant deficiency, or a combination of significant deficiencies, in internal control over financial reporting such that it is reasonably possible that a material misstatement of the annual or interim consolidated financial statements will not be prevented or detected on a timely basis. While we are implementing measures designed to improve our internal control over financial reporting to remediate these material weaknesses, including the hire of additional financial personnel, we cannot be certain that these efforts will remediate our material weaknesses in a timely manner, or at all, or prevent restatements of our consolidated financial statements in the future. If we are unable to successfully remediate our material weaknesses, or identify any future significant deficiencies or material weaknesses, the accuracy and timing of our financial reporting may be adversely affected, we may be unable to maintain compliance with securities law requirements regarding timely filing of periodic reports, and the market price of our common stock may decline as a result.

Ensuring that we have adequate internal financial and accounting controls and procedures in place so that we can produce accurate consolidated financial statements on a timely basis is a costly and time-consuming effort that needs to be re-evaluated frequently. We expect to incur additional costs to remediate these control deficiencies, though we cannot be certain that our efforts will be successful or avoid potential future material weaknesses. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements in accordance with generally accepted accounting principles. If we are unable to successfully remediate our existing or any future material weaknesses in our internal control over financial reporting, or if we identify any additional material weaknesses, the accuracy and timing of our financial reporting may be adversely affected, we may be unable to maintain compliance with securities law requirements regarding timely filing of periodic reports in addition to applicable stock exchange listing requirements, investors may lose confidence in our financial reporting, and our stock price may decline as a result. Failure to remedy any material weakness in our internal control over financial reporting, or to implement or maintain other effective control systems required of public companies, could also restrict our future access to the capital markets. In addition, investors' perceptions that our internal controls are inadequate or that we are unable to produce accurate consolidated financial statements on a timely basis may harm our stock price and make it more difficult for us to effectively market and sell our products to new and existing customers.

***We could be subject to additional sales tax or other indirect tax liabilities.***

We are subject to sales tax laws in various states and countries, and changes to these laws or their interpretation could affect our tax responsibilities. In addition, we are also subject to sales tax and other audits from time to time by such jurisdictions. For example, we are currently undergoing a sales tax audit by the State of California and there can be no guarantee as to whether we will be required to pay additional sales taxes or penalties relating to such audit.

While some jurisdictions provide sales tax exemptions for the types of products we sell, we may not meet the requirements for such exemptions, including timing requirements relating to exemption certificates. Certain state tax authorities may challenge or dispute our tax reporting, potentially requiring us to collect or remit additional taxes, which could result in penalties, interest, and other sanctions. Any one of these consequences or other negative effects could have a material adverse effect on our financial condition, cash flows or results of operations.

In the past, we did not have systems and processes to collect these taxes in all jurisdictions where we were conducting business. Failure to comply with such laws or administrative practices, or a successful assertion by such states or foreign jurisdictions requiring us to collect taxes where we did not, could result in substantial tax liabilities for past sales, as well as penalties and interest. We are in the process of assessing our filing status and exposure with each state to determine if we can take advantage of an amnesty program or negotiated settlements.

We may be subject to laws, regulations, and administrative practices that require us to collect information from our customers, vendors, merchants, and other third parties for tax reporting purposes and report such information to various government agencies. The scope of such requirements continues to expand, requiring us to develop and implement new compliance systems. Failure to comply with such laws and regulations could result in significant penalties.

We are in the process of developing systems to comply with collection and reporting requirements in all states in which we do business. However, the application of existing, new or revised taxes on our business, in particular, sales taxes, VAT and similar taxes would likely increase the cost of doing business. The application of these taxes on our business could also create significant increases in internal costs necessary to capture data and collect and remit taxes. There have been, and will continue to be, substantial ongoing costs associated with complying with the various indirect tax requirements in the numerous markets in which we conduct or will conduct business.

***Our ability to use our U.S. federal and state net operating losses to offset future taxable income may be subject to certain limitations which could subject our business to higher tax liability.***

As of December 31, 2024, we had gross U.S. federal net operating loss ("NOL") carryforwards of approximately $8.6 million and gross state NOL carryforwards of approximately $7.4 million, which may expire unutilized or underutilized. To the extent that we continue to generate taxable losses, unused losses will carry forward to offset future taxable income, if any. Under the 2017 Tax Cuts and Jobs Act (the "Tax Act"), as modified by the Coronavirus Aid, Relief, and Economic Security Act, unused U.S. federal NOLs generated in tax years beginning after December 31, 2017, will not expire and may be carried forward indefinitely, but the deductibility of such federal NOLs in taxable years beginning after December 31, 2020, is limited to 80% of current year taxable income.

Under Section 382 of the Internal Revenue Code of 1986, as amended (the "Code"), and corresponding provisions of state law, if a corporation that undergoes an "ownership change," which is generally defined as a greater than 50 percentage point change (by value) in its equity ownership by certain stockholders over a three-year period, the corporation's ability to utilize its pre-change NOL carryforwards to offset its post-change income or taxes may be limited.

We may experience ownership change(s) in the future as a result of subsequent shifts in our stock ownership, some of which may be outside our control. Therefore, it is possible that such an ownership change could limit the amount of NOLs we can use to offset future taxable income. Our current NOL carryforwards, and any NOL carryforwards of companies we acquire in the future, may be subject to limitations, thereby increasing our overall tax liability. Our NOL carryforwards may also be impaired under similar provisions of state law. We have recorded a full valuation allowance related to our U.S. federal and state NOL carryforwards and other net deferred tax assets due to the uncertainty of the ultimate realization of the future benefits of those assets. Our NOL carryforwards may expire unutilized or underutilized, which could prevent us from offsetting future taxable income. Any future changes in U.S. tax laws in respect of the utilization of NOL carryforwards may further affect the limitation in future years. In addition, there may be periods during which the use of NOL carryforwards is suspended or otherwise limited at the state level, which could also impact our ability to utilize NOL carryforwards. As a result, even if we attain profitability, we may be unable to use all or a material portion of our NOLs, which could adversely affect our business, operating results, financial condition, and cash flows.

***We could be subject to changes in tax rates, the adoption of new U.S. or international tax legislation, or exposure to additional tax liabilities.***

Due to shifting economic and political conditions in both the U.S. and internationally, tax policies, laws, or rates in various jurisdictions may be subject to significant changes in ways that impair our financial results. Various jurisdictions around the world have enacted or are considering digital services taxes, which could lead to inconsistent and potentially overlapping international tax regimes. The Organization for Economic Cooperation and Development recently released proposals relating to its initiative for modernizing international tax rules, with the goal of having different countries implement a modernized and aligned international tax framework, but there can be no guarantee that this will occur.

**Risks Related to Legal and Regulatory Matters**

***Tariffs on certain imports to the U.S., other potential changes to U.S. tariff and import/export regulations, and retaliatory tariffs and other responses from other countries could have a material adverse effect on global economic conditions and our business, results of operations, prospects, and financial condition.***

We purchase some of our parts (including parts used in fabricating machine components) from sources located internationally. The U.S. government has implemented substantial changes to U.S. trade policies, including import restrictions, increased import tariffs and changes in U.S. participation in multilateral trade agreements. As the implementation of tariffs is ongoing, more tariffs may be added in the future. These tariffs could have an adverse impact on our business, results of operations, prospects and financial condition, and if we are unable to pass such price increases through to our customers, it would likely increase our cost of sales and, as a result, decrease our gross margins, operating income and net income. Further tariff increases could require us to increase prices, which likely would decrease customer demand for our products. Retaliatory tariff and trade measures imposed by other countries could affect our ability to export products and therefore adversely affect our sales. In addition, reciprocal tariffs imposed by other countries could adversely affect our ability to expand our sales internationally.

In light of these events, there continues to exist significant uncertainty about the future relationship between the U.S. and other countries with respect to such trade policies, treaties, and tariffs. These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade and, in particular, trade between the impacted nations and the U.S. Any of these factors could depress economic activity and restrict our access to suppliers or customers and, in turn, have a material adverse effect on the business and financial condition of such suppliers and customers or other counterparties we do business with, which in turn would negatively impact us.

***It may ultimately be determined that we did not qualify for the Employee Retention Credit and we may be required to repay the amounts received, which could have a material adverse effect on our business, results of operations and financial condition.***

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (The "CARES Act") was enacted to address the negative economic impact of the COVID-19 pandemic in the United States. The CARES Act included an Employee Retention Credit ("ERC"), a fully refundable tax credit for employers equal to fifty percent (50%) of qualified wages (including allocable qualified health plan expenses) that Eligible Employers pay their employees. The ERC applies to qualified wages paid after March 12, 2020, and before January 1, 2021.

In April 2021, we engaged a third-party consultant to assist in determining eligibility, gathering applicable data, calculating potential credits, and preparing analyses to assist us in amending tax filings made in 2020 and 2021 in order to take advantage of the ERC. In 2022, we received total cash refunds from the Internal Revenue Service (the "IRS") in the amount of approximately $1.3 million which were applicable to 2020 payroll periods. In 2023, we received total cash refunds in the amount of approximately $2.4 million which were applicable to 2021 payroll periods.

The IRS has been aggressively auditing ERC refunds, often disallowing them for noncompliance and issuing additional guidance in some cases extending the statute of limitations for ERC audit periods. The current statute of limitations for our refund periods ranges from April 15, 2025 to April 15, 2027. While we believe we qualified for the ERC at the time we applied for the related refunds, if the IRS choses to audit the refunds we received, they may determine to disallow our refunds. If we are ultimately required to repay the ERC it may materially adversely affect our financial condition and results of operations. As of June 30, 2025 and December 31, 2024, the Company has accrued $3.6 million related to the ERC refunds.

***Our operations are subject to complex and changing laws and regulations, the violation of which could expose us to potential liabilities, increased costs, and other adverse effects.***

We are subject to numerous international, federal, state, and local laws and regulations, many of which are complex, frequently changing, and subject to varying interpretations. These laws and regulations cover a variety of subjects, including advertising, anti-money laundering, antitrust, consumer finance, environmental, climate-related, health and safety, import/export and trade, human rights, labor and employment, product liability reporting, cybersecurity, data privacy, telematics, encryption, and telecommunications. Changes to existing laws and regulations, or changes to how they are interpreted, or the implementation of new, more stringent laws or regulations, could adversely affect our business by increasing compliance costs, limiting our ability to offer a product or service, requiring changes to our business practices, or otherwise making our products and services less attractive to customers. Failure to comply with these laws and regulations could result in fines and penalties.

In addition, we must comply with the FCPA and all applicable foreign anti-bribery and anti-corruption laws. These laws generally prohibit companies and their intermediaries from making improper payments or providing anything of value to improperly influence government officials or private individuals for the purpose of obtaining or retaining a business advantage, regardless of whether those practices are culturally expected in a particular jurisdiction. Although we have a compliance program in place designed to reduce the likelihood of potential violations of these laws and regulations, our employees, contractors, or agents in the future could violate such laws and regulations or our policies and procedures. Violations of these laws and regulations could result in criminal or civil sanctions and may have a material adverse effect on our reputation, business, results of operations, and financial condition.

***We may face risks associated with international, national, and regional trade laws, regulations, and policies, and government farm programs and policies which could significantly impair our profitability and growth prospects.***

International, national, and regional laws, regulations, and policies directly or indirectly related to or restricting the import and export of our products, services, and technology, or for the benefit of favored industries or sectors, could harm our global business or adversely affect our customers, which could result in decreased purchases of our products. We are subject to various regulatory risks including, but not limited to, the following:

● Restricted
 access to global markets could impair our ability to export goods and services from various manufacturing locations around the world.
 Restricted access could limit the ability to access high-quality parts and components at competitive prices on
 a timely basis.

● Trade
 restrictions, negotiation of new trade agreements, non-tariff trade barriers, local content requirements, and imposition of new or
 retaliatory tariffs against certain countries or covering certain products, including developments in U.S.-China trade relations, could limit our ability to capitalize on current and future growth opportunities in international
 markets. These trade restrictions, and changes in, or uncertainty surrounding global trade policies, may affect our competitive position.

● Trade
 restrictions could impede those in developing countries from achieving a higher standard of living, which could negatively impact
 our future growth opportunities arising from increasing global demand for our products.

● Policies
 impacting exchange rates and commodity prices, or those limiting the export or import of commodities, could have a material adverse
 effect on the international flow of agricultural and other commodities that may result in a corresponding negative effect on the
 demand for agricultural and forestry equipment in many areas of the world. Our agricultural equipment sales could be harmed by such
 policies because farm income influences sales of agricultural equipment around the world.

● Changes
 in government farm programs and policies can influence demand for agricultural equipment as well as create unequal competition for
 multinational companies relative to domestic companies.

***We could be involved in legal disputes that are expensive and time consuming, and, if resolved adversely, could harm our business, operating results, and financial condition.***

From time to time we are involved in, and may in the future be involved in, actual and threatened legal proceedings, claims, investigations and government inquiries arising in the ordinary course of our business, including intellectual property, data privacy, cybersecurity, privacy and other torts, illegal or objectionable content, contractual rights, false or misleading advertising, or other legal claims relating to content or information that is provided to us or published or made available on our platform. Any proceedings, claims or inquiries involving our company, whether successful or not, may be time consuming, result in costly litigation, unfavorable outcomes, increased costs of business, may require us to change our business practices or platform, require significant amount of management's time, may harm our reputation or otherwise harm our business, operating results, and financial condition.

We have been subject to actual and threatened litigation with respect to third-party patents, trademarks, copyrights and other intellectual property, and may continue to be subject to intellectual property litigation and threats thereof. To prevent substantial unauthorized use of our intellectual property rights, it may be necessary to prosecute actions for infringement and/or misappropriation of our proprietary rights against third parties. Any such action could result in significant costs and diversion of our resources and management's attention, and we cannot assure that we will be successful in such action. Companies in the AgTech industry own large numbers of patents, copyrights, trademarks and trade secrets and frequently enter into litigation based on allegations of infringement or other violations of intellectual property rights. As we face increasing competition and grow our business and product and service offerings, the possibility of being targeted by a larger number of intellectual property claims may increase. In addition, various "non-practicing entities" that own patents and other intellectual property rights have asserted, and may in the future attempt to assert, intellectual property claims against us to extract value through licensing or other settlements.

From time to time, we may receive letters from patent holders alleging that one or more of our products infringes on their patent rights and from trademark holders alleging infringement of their trademark rights. Our technologies and products may not be able to withstand such third-party claims.

With respect to any intellectual property claims, we may have to seek a license to continue using technologies or engaging in practices found to be in violation of a third-party's rights, which may not be available on reasonable terms and may significantly increase our operating expenses. A license to continue such technologies or practices may not be available to us at all and we may be required to discontinue use of such technologies or practices or to develop alternative non-infringing technologies or practices. The development of alternative non-infringing technologies or practices could require significant effort and expense or may not be achievable at all, and our business, operating results, and financial condition could be adversely affected.

**Risks Related to Intellectual Property**

***Failure to protect and enforce our proprietary technology and intellectual property rights could substantially harm our business, operating results and financial condition.***

We rely on a combination of confidentiality, assignment, and license agreements with our employees, consultants, and third parties with whom we have relationships, as well as trademark, copyright, patent, trade secret, and domain name protection laws, to protect our proprietary rights. We have filed various applications for protection of certain aspects of our intellectual property, and we currently hold issued patents and copyrights in the U.S., and multiple trademark registrations in the U.S. Third parties may knowingly or unknowingly infringe our proprietary rights, third parties may challenge proprietary rights held by us, and pending and future trademark and patent applications may not be approved.

Any issued patents may be challenged, invalidated or circumvented, and any rights granted under these patents may not actually provide adequate defensive protection or competitive advantages to us. Patent applications in the U.S. are typically not published until at least 18 months after filing, or, in some cases, not at all. We cannot be certain that we were the first to make the inventions claimed in our pending patent applications or that we were the first to file for patent protection. Additionally, the process of obtaining patent protection is expensive and time-consuming, and we may not be able to prosecute all necessary or desirable patent applications at a reasonable cost or in a timely manner. Recent changes to the patent laws in the U.S. may also bring into question the validity of certain patents and may make it more difficult and costly to prosecute patent applications. Such changes may lead to uncertainties or increased costs and risks surrounding the prosecution, validity, ownership, enforcement, and defense of our issued patents and patent applications and other intellectual property, the outcome of third-party claims of infringement, misappropriation, or other violation of intellectual property brought against us and the actual or enhanced damages (including treble damages) that may be awarded in connection with any such current or future claims, and could have a material adverse effect on our business.

We rely on our trademarks, trade names, and brand names to distinguish our platform from the products of our competitors. However, third parties may have already registered identical or similar marks for products or solutions. Efforts by third parties to limit use of our brand names or trademarks and barriers to the registration of brand names and trademarks may restrict our ability to promote and maintain a cohesive brand throughout relevant markets. We cannot be certain that pending or future U.S. or foreign trademark applications will be approved in a timely manner or at all, or that such registrations will effectively protect our brand names and trademarks. Third parties may also oppose our trademark applications, or otherwise challenge our use of the trademarks. In the event that our trademarks are successfully challenged, we could be forced to rebrand our platform, which would result in loss of brand recognition and would require us to devote resources to advertising and marketing new brands.

In addition, effective intellectual property protection may not be available in every country in which we operate or intend to operate our business. In any or all of these cases, we may be required to expend significant time and expense in order to prevent infringement or to enforce our rights. Although we have generally taken measures to protect our proprietary rights, others may offer products or concepts that are substantially similar to ours and compete with our business. If the protection of our proprietary rights is inadequate to prevent unauthorized use or appropriation by third parties, the value of our brands and other intangible assets may be diminished and competitors may be able to more effectively mimic our platform and methods of operations.

To prevent unauthorized use of our intellectual property rights, it may be necessary to prosecute actions for infringement and/or misappropriation of our proprietary rights against third parties. Any such action could result in significant costs and diversion of our resources and management's attention, and we cannot be certain that we will be successful in such action. Furthermore, many of our current and potential competitors have the ability to dedicate substantially greater resources to enforce their intellectual property rights (or to contest claims of infringement) than we do. Accordingly, despite our efforts, we may not be able to prevent third parties from knowingly or unknowingly infringing upon, misappropriating or circumventing our intellectual property rights. If we are unable to protect our proprietary rights, we will find ourselves at a competitive disadvantage to others who need not incur the additional expense, time and effort required to create our platform. Moreover, we may need to expend additional resources to defend our intellectual property rights in foreign countries, and our inability to do so could impair our business, results of operations and financial condition or adversely affect our business, operating results, and financial condition.

***Confidentiality agreements with employees and others may not adequately prevent disclosure of trade secrets and proprietary information.***

We have devoted substantial resources to the development of our intellectual property and proprietary rights. To protect our intellectual property and proprietary rights, we rely in part on confidentiality agreements with our employees, vendors, licensees, independent contractors and other advisors. These agreements may not effectively prevent disclosure of confidential information and may not provide an adequate remedy in the event of unauthorized disclosure of confidential information. Effective trade secret protection may also not be available in every country in which our platform is used or where we have employees or independent contractors. The loss of trade secret protection could make it easier for third parties to compete with our platform by copying functionality. In addition, any changes in, or unexpected interpretations of, the trade secret and employment laws in any country in which we operate may compromise our ability to enforce our trade secret and intellectual property rights. In addition, others may independently discover trade secrets and proprietary information and in such cases, we could not assert any trade secret rights against such parties. Costly and time-consuming litigation could be necessary to enforce and determine the scope of our proprietary rights and failure to obtain or maintain trade secret protection could adversely affect our competitive business position.

***Third parties may claim that our platform infringes their intellectual property rights, and this may create liability for us or otherwise adversely affect our business, operating results and financial condition.***

Third parties may claim that our platform infringes their intellectual property rights, and such claims may result in legal claims against us and our technology partners and customers. These claims may damage our brand and reputation and create liability for us. We expect the number of potential claims to increase as the functionality of our platform and services overlaps with that of other products and services, and as the volume of issued patents and patent applications continues to increase.

Companies in the AgTech industry own large numbers of patents, copyrights, trademarks, and trade secrets and frequently enter into litigation based on allegations of infringement or other violations of intellectual property rights. In addition, many of these companies have the capability to dedicate substantially greater resources to enforce their intellectual property rights and to defend claims that may be brought against them. Furthermore, patent holding companies, non-practicing entities, and other adverse patent owners that are not deterred by our existing intellectual property protections may seek to assert patent claims against us. We have received, and may in the future receive, notices that claim we have misappropriated, misused, or infringed other parties' intellectual property rights, and, to the extent we gain greater market visibility, we may face a higher risk of being the subject of intellectual property infringement claims.

We may also face exposure to third-party intellectual property infringement, misappropriation, or violation actions if we engage engineers or other personnel who were previously engaged by competitors or other third parties and those personnel inadvertently or deliberately incorporate proprietary technology of third parties into our products. In addition, we may lose valuable intellectual property rights or personnel. A loss of key personnel or their work product could hamper or prevent our ability to develop, market and support potential products or enhancements, which could severely harm our business. Any intellectual property claims, with or without merit, could be very time-consuming, could be expensive to settle or litigate, and could divert our management's attention and other resources. These claims could also subject us to significant liability for damages, potentially including treble damages if we are found to have willfully infringed patents or copyrights. These claims could also result in us having to stop using technology found to be in violation of a third party's rights. We might be required to seek a license for the intellectual property, which may not be available on reasonable terms or at all. Even if a license were available, we could be required to pay significant royalties, which would increase our operating expenses. Alternatively, we could be required to develop alternative non-infringing technology, which could require significant time, effort, and expense, and may affect the performance or features of our platform. If we cannot license or develop alternative non-infringing substitutes for any infringing technology used in any aspect of our business, we would be forced to limit use of our platform. Any of these results would adversely affect our business, operating results and financial condition.

***Our use of "open source" software could subject us to possible litigation or could prevent us from offering products that include open source software or require us to obtain licenses on unfavorable terms.***

A portion of the technologies we use incorporates "open source" software, and we may incorporate additional open source software in the future. Open source software is generally licensed by its authors or other third parties under open source licenses. These licenses may subject us to certain unfavorable conditions, including requirements that we offer our products that incorporate the open source software for no cost, that we make publicly available the source code for any modifications or derivative work we create based upon, incorporating or using the open source software, or that we license such modifications or derivative works under the terms of the particular open source license. From time to time, companies that use third-party open source software have also faced claims challenging the use of such open source software and their compliance with the terms of the applicable open source license. We may be subject to suits by parties claiming ownership of what it believes to be open source software or claiming non-compliance with the applicable open source licensing terms.

In addition to using open source software, we also license to others some of our software through open source projects. Open sourcing our own software requires the company to make the source code publicly available, and therefore can affect our ability to protect our intellectual property rights with respect to that software. Additionally, if a third-party software provider has incorporated open source software into software that we license from such provider, we could be required to disclose any of our source code that incorporates or is a modification or derivative work of such licensed software. If an author or other third party that distributes open source software that we use or license were to allege that we had not complied with the conditions of the applicable license, we could be required to incur significant legal expenses defending against such allegations and could be subject to significant damages, enjoined from offering our products that contained the open source software, required to release proprietary source code, required to obtain licenses from third parties or otherwise required to comply with the unfavorable conditions unless and until we can re-engineer the product so that it complies with the open source license or does not incorporate the open source software.

The terms of many open source licenses have not been interpreted by U.S. or foreign courts, and accordingly there is a risk that those licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to commercialize our platform. In that event, we could be required to seek licenses from third parties in order to continue offering our platform, to re-develop our platform, or to release our proprietary source code under the terms of an open source license, any of which could harm our business. Enforcement activity for open source licenses can also be unpredictable. Were it determined that our use was not in compliance with a particular license, we may be required to release our proprietary source code, defend claims, pay damages for breach of contract or copyright infringement, grant licenses to our patents, re-engineer our platform, or take other remedial action that may divert resources away from our product development efforts, any of which could negatively impact our business. Open source compliance problems can also result in damage to reputation and challenges in recruitment or retention of engineering personnel. Further, given the nature of open source software, it may be more likely that third parties might assert copyright and other intellectual property infringement claims against us based on our use of these open source software programs. Litigation could be costly for us to defend, have a material adverse effect on our business, results of operations and financial condition, or require us to devote additional development resources to change our platform.

**General Risk Factors**

***The obligations associated with operating as a public company following this offering will require significant resources and management attention and will cause us to incur additional expenses, which will adversely affect our results of operations.***

Following this offering, our expenses will increase as a result of the additional accounting, legal and various other additional expenses usually associated with operating as a public company and complying with public company disclosure obligations. After the consummation of this offering, we will be required to comply with certain requirements of the Exchange Act, the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and other applicable securities rules and regulations. The Exchange Act requires, among other things, us to file annual, quarterly, and current reports with respect to our business and operating results with the SEC. We will also be required to ensure that we have the ability to prepare consolidated financial statements that are fully compliant with all SEC reporting requirements on a timely basis. Compliance with these rules and regulations will increase our legal and financial compliance costs, make some activities more difficult, time-consuming or costly and increase demand on our systems and resources. As a public company, we will, among other things:

● prepare and distribute periodic public reports and other stockholder communications in compliance with our obligations under the federal
securities laws;

● create or expand the roles and duties of our board of directors and committees of the board;

● institute more comprehensive financial reporting and disclosure compliance functions; and

● establish new and enhance existing internal policies, including those relating to disclosure controls and procedures.

These changes, and the additional involvement of accountants and legal advisors, will require a significant commitment of additional resources. We might not be successful in complying with these obligations and the significant commitment of resources required for complying with them could have a material adverse effect on our business, financial condition, results of operations and cash flows. In addition, in connection with this offering, we intend to increase our directors' and officers' insurance coverage, which will increase our insurance cost. In the future, it may be more expensive or more difficult for us to obtain director and officer liability insurance, and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. These factors would also make it more difficult for us to attract and retain qualified members of our board of directors, particularly to serve on our audit committee and compensation committee, and qualified executive officers.

***Economic uncertainty or downturns, including as a result of supply chain disruptions, tariffs, the Ukraine - Russia conflict, rising fuel prices, inflation, increasing interest rates and instability in the global banking system could adversely affect our business, financial condition and operating results.***

In recent years, the U.S. and other significant markets have experienced cyclical downturns and worldwide economic conditions remain uncertain due to, among other things, rising interest rates, inflation, tariffs, instability in the global banking system, and the impacts of the war in Ukraine. Economic uncertainty and associated macroeconomic conditions make it extremely difficult for us and our customers to accurately forecast and plan future business activities, and could cause our customers, as well as local, state and government entities providing funding to certain customers, to slow spending on our products, which could delay and lengthen sales cycles. Furthermore, during uncertain economic times, our customers may face issues gaining timely access to sufficient credit on acceptable terms, which could result in an impairment of their ability to make timely payments to us. If that were to occur, we may be required to increase our allowance for credit losses and our results would be negatively impacted.

Since purchases of our products are generally dependent on discretionary spending, negative general economic conditions could significantly reduce the overall amount that customers spend on our products. Moreover, competitors may respond to challenging market conditions by lowering prices and attempting to lure away our customers.

We cannot predict the timing, strength, or duration of any economic slowdown or any subsequent recovery generally, or any industry in particular. If the conditions in the general economy and the markets in which we operate worsen from present levels, our business, financial condition, and results of operations could be materially and adversely affected.

**Risks Related to our common stock and this offering**

***Our stock price may be volatile or may decline regardless of our operating performance, resulting in substantial losses for investors purchasing shares in this offering.***

Upon consummation of this offering, the price of our common stock, may fluctuate due to a variety of factors, including:

● actual or anticipated fluctuations in our financial condition and results of operations;

● developments involving our competitors;

● variations between our actual operating results and the expectations of securities analysts, investors, and the financial community;

● short sales, hedging and other derivative transactions involving our common stock;

● any forward-looking financial or operating information we may provide to the public or securities analysts, any changes in this information,
or our failure to meet expectations based on this information;

● publication of research reports by securities analysts about us or our competitors or our industry;

● the public's reaction to our press releases, our other public announcements and our filings with the SEC;

● additional shares of common stock being sold into the market by us or our stockholders, or the anticipation of such sales, or if existing
stockholders subject to a lock-up sell shares into the market when applicable "lock-up" periods end;

● additions and departures of key personnel;

● commencement of, or involvement in, litigation involving our business;

● changes in our capital structure, such as future issuances of securities or the incurrence of additional debt;

● announcements by us or our competitors of significant products or features, technical innovations, acquisitions, strategic partnerships,
joint ventures, or capital commitments;

● announcements by us or estimates by third parties of actual or anticipated changes in the number of customers;

● changes in operating performance and stock market valuations of our competitors;

● price and volume fluctuations in the overall stock market, including as a result of trends in the economy as a whole, including rising
interest rates and inflation;

● developments in new legislation and any lawsuits or regulatory actions, including interim or
 final rulings by judicial or regulatory bodies; and

● other events or factors, including those resulting from the war in Ukraine, recessions, interest rates, instability in the global banking
system, local and national elections, international currency fluctuations, corruption, political instability and acts of war or terrorism.

In addition, extreme price and volume fluctuations in the stock markets have affected and continue to affect many technology companies' stock prices. Often, their stock prices have fluctuated in ways unrelated or disproportionate to the companies' operating performance. In the past, stockholders have filed securities class action litigation following periods of market volatility. If we were to become involved in securities litigation, it could subject us to substantial costs, divert resources and the attention of management from our business, and seriously harm our business.

***Following the consummation of this offering, we will have outstanding shares of convertible preferred stock, warrants and Debentures, which such Debentures contain "full-ratchet" anti-dilution protection, the conversion or exercise of which may cause significant dilution to our stockholders.***

After giving effect to this offering, the Exchange, the Warrant Exercise and the Service Provider Warrant Exercise, we will have outstanding approximately 41,206.58 shares of Series A Preferred Stock convertible into approximately 7,492,105 shares of common stock, Debentures with an aggregate principal and accrued interest balance of approximately $9.8 million convertible into approximately 1,350,215 shares of common stock at conversion prices ranging from $0.01 to $2.20 per share, and Representatives' Warrants to purchase 159,091 shares of common stock at an exercise price equal to $6.60 per share, based on an assumed initial public offering price per share of $5.50 (which is equal to the midpoint of the price range set forth on the cover page of this prospectus). The Debentures remaining outstanding include "full-ratchet" anti-dilution provisions, which, subject to limited exceptions, would reduce the conversion price of such Debentures (and increase the number of shares issuable) in the event that we in the future issue common stock, or securities convertible into or exercisable for common stock, at a price per share lower than the conversion price then in effect.

In the ordinary course, the issuance of shares of common stock upon the exercise or conversion of such preferred stock, warrants or Debentures would dilute the percentage ownership interest of all stockholders, might dilute the book value per share of our common stock, and would increase the number of shares of our common stock outstanding, which could depress the market price of our common stock. If the "full-ratchet" anti-dilution provisions of the warrants and Debentures are triggered, however, then any impact to dilution of percentage ownership interest of all stockholders and dilution of book value per share of our common stock could be substantially increased, in addition to an increase in the number of shares of our common stock and a reduction in the market price of our common stock.

***Sales of our common stock in the public market after this offering by our existing security holders may cause the market price of our shares of common stock to decline.***

Sales of a substantial number of shares of our common stock into the public market, particularly sales by our directors, executive officers and principal stockholders, or the perception that these sales might occur, could cause the market price of our common stock to decline. Many of our existing security holders have unrecognized gains on the value of the equity they hold, and may take steps to sell their shares or otherwise secure or limit their risk exposure to the value of their unrecognized gains on those shares. We are unable to predict the timing or effect of such sales on the market price of our common stock.

All of the shares of common stock sold in this offering will be freely tradable without restrictions or further registration under the Securities Act, except that any shares held by our affiliates, as defined in Rule 144 under the Securities Act, would only be able to be sold in compliance with Rule 144 and any applicable lock-up agreements described herein.

We and all of our directors and executive officers and certain other holders that together represent approximately 60.4% of our common stock outstanding after this offering are subject to lock-up agreements and/or market standoff agreements that restrict our and their ability to sell or transfer shares of our capital stock for a period of 180 days from the date of this prospectus, subject to certain exceptions. In addition, the Representatives may release certain stockholders from the lock-up agreements prior to the end of the lock-up period. If not otherwise early released, when the applicable market standoff agreements or lock-up periods expire, we and our security holders subject to a lock-up agreement or such market standoff agreements will be able to sell our shares freely in the public market, except that any shares held by our affiliates, as defined in Rule 144 under the Securities Act, would only be able to be sold in compliance with Rule 144. Sales of a substantial number of such shares upon expiration of the lock-up agreements and market standoff agreements, or the perception that such sales may occur, or early release of these agreements, could cause our market price to fall or make it more difficult for you to sell your common stock at a time and price that you deem appropriate. See the section titled "Shares Eligible for Future Sale" for additional information regarding shares of our common stock that will be eligible for resale after this offering.

In addition, shares of common stock issuable upon the exercise of stock options, and the shares reserved for future issuance under our equity incentive plans, will be registered for public resale under the Securities Act. Accordingly, these shares will be able to be freely sold in the public market upon issuance subject to existing lock-up agreements and applicable vesting requirements.

Further, subject to certain conditions, ATW will require us to file registration statements for the public resale of shares of our common stock or to include such shares in registration statements that we may file for us or other stockholders.

***We are an emerging growth company and a smaller reporting company, and the reduced disclosure requirements applicable to emerging growth companies and smaller reporting companies may make our common stock less attractive to investors.***

We are an emerging growth company, as defined in the JOBS Act, and may remain an emerging growth company until the last day of the fiscal year following the fifth anniversary of the completion of this offering. However, if certain events occur prior to the end of such five-year period, including if we become a "large accelerated filer", as defined under the Exchange Act, our annual gross revenue exceeds $1.235 billion or we issue more than $1.0 billion of non-convertible debt in any three-year period, we will cease to be an emerging growth company prior to the end of such five-year period. For so long as we remain an emerging growth company, we are permitted and intend to rely on exemptions from certain disclosure requirements that are applicable to other public companies that are not emerging growth companies. These exemptions include:

● being
 permitted to provide only two years of audited consolidated financial statements, in addition to any required unaudited interim
 consolidated financial statements, with correspondingly reduced "Management's Discussion and Analysis of Financial
 Condition and Results of Operations" disclosure;

● not
 being required to comply with the auditor attestation requirements in the assessment of our internal control over financial reporting
 pursuant to the Sarbanes-Oxley Act of 2002, or Sarbanes-Oxley;

● not
 being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory
 audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the consolidated
 financial statements, unless the SEC determines the new rules are necessary for protecting the public;

● reduced
 disclosure obligations regarding executive compensation; and

● exemptions
 from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute
 payments not previously approved.

We have taken advantage of reduced reporting burdens in this prospectus. In particular, in this prospectus, we have provided only two years of audited consolidated financial statements and have not included all of the executive compensation-related information that would be required if we were not an emerging growth company. We cannot predict whether investors will find our common stock less attractive if we rely on these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may be reduced or more volatile. In addition, the JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. This allows an emerging growth company to delay the adoption of these accounting standards until they would otherwise apply to private companies. We have elected to avail ourselves of this exemption and, therefore, we may not be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies. We intend to rely on other exemptions provided by the JOBS Act, including without limitation, not being required to comply with the auditor attestation requirements of Section 404(b) of Sarbanes-Oxley.

We are also a smaller reporting company as defined in the Exchange Act. We may continue to be a smaller reporting company even after we are no longer an emerging growth company. We may take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as our voting and non-voting common stock held by non-affiliates is less than $250.0 million measured on the last business day of our second fiscal quarter, or our annual revenue is less than $100.0 million during the most recently completed fiscal year and our voting and non-voting common stock held by non-affiliates is less than $700.0 million measured on the last business day of our second fiscal quarter.

***We will have broad discretion in how we may use the net proceeds in connection with this offering, and we may not use them effectively.***

Our management will have broad discretion in applying the net proceeds we receive in connection with this offering. We currently intend to use the net proceeds we receive from this offering for working capital to fund growth and other general corporate purposes, which may include research and development, sales and general administrative matters and capital expenditures. We may also use a portion of the net proceeds to acquire or make investments in businesses, products, offerings and technologies, although we do not have agreements or commitments for any material acquisitions or investments at this time. However, we cannot specify with any certainty the particular uses of the net proceeds that we will receive in connection with this offering. We may use these proceeds in a way with which our stockholders disagree. If our management fails to use these funds effectively, our business could be seriously harmed.

***We do not intend to pay dividends for the foreseeable future, and as a result, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock.***

Following this offering, we currently intend to retain our future earnings, if any, to finance the further development and expansion of our business and do not intend to pay cash dividends in the foreseeable future. Any future determination to pay dividends will be at the discretion of our board of directors and will depend on our financial condition, results of operations, capital requirements, restrictions contained in future agreements and financing instruments, business prospects and such other factors as our board of directors deems relevant. As a result, you may only receive a return on your investment in our common stock if the market price of our common stock increases.

***If analysts do not publish research about our business or if they publish inaccurate or unfavorable research, our stock price and trading volume could decline.***

The trading market for our common stock will depend in part on the research and reports that analysts publish about our business. We do not have any control over these analysts. If any of the analysts who cover us downgrade our common stock or publish inaccurate or unfavorable research about our business, the price of our common stock would likely decline. If few analysts cover us, demand for our common stock could decrease and our common stock price and trading volume may decline. Similar results may occur if one or more of these analysts stop covering us in the future or fail to publish reports on us regularly.

***We may be subject to securities litigation, which is expensive and could divert management attention.***

The market price of our common stock may be volatile. In the past, in certain instances, companies that have experienced volatility in the market price of their stock have been subject to securities class action litigation. We may be the target of this type of litigation in the future. Securities litigation against us could result in substantial costs and divert management's attention from other business concerns, which could seriously harm our business.

***Anti-takeover provisions contained in our amended and restated certificate of incorporation and amended and restated bylaws, as well as provisions of Delaware law, could impair a takeover attempt.***

Our amended and restated certificate of incorporation and amended and restated bylaws, which will become effective immediately prior to the completion of this offering, and Delaware law contain provisions which could have the effect of rendering more difficult, delaying, or preventing an acquisition. Our corporate governance documents provide for:

● no cumulative voting in the election of directors, which limits the ability of minority stockholders to elect director candidates;

● a classified board of directors with three-year staggered terms, who can only be removed for cause and only by the affirmative vote of the holders of at least 66 2/3% of the voting power of the outstanding shares of capital stock, which may delay the ability of stockholders to change the membership of a majority of our board of directors;

● the exclusive right of our board of directors to set the size of the board of directors and to appoint a director to fill a vacancy, however occurring, including by an expansion of the board of directors, which prevents stockholders from being able to fill vacancies on our board of directors;

● the ability of our board of directors to authorize the issuance of shares of preferred stock and to determine the price and other terms of those shares, including voting or other rights or preferences, without stockholder approval, which could be used to significantly dilute the ownership of a hostile acquiror;

● the ability of our board of directors to alter our amended and restated bylaws without obtaining stockholder approval;

● in addition to our board of director's ability to adopt, amend, or repeal our amended and restated bylaws, our stockholders may adopt, amend, or repeal our amended and restated bylaws only with the affirmative vote of the holders of at least 66 2/3% of the voting power of all our then outstanding shares of capital stock;

● the required approval of at least 66 2/3% of the voting power of the outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class, to adopt, amend, or repeal certain provisions of our amended and restated certificate of incorporation, provided that if our board of directors approves and recommends that stockholders approve such amendment, alteration, repeal, or adoption of inconsistent provisions, such amendment, alteration, repeal, or adoption of inconsistent provisions shall only require the affirmative vote of the holders of a majority of the voting power of the outstanding shares of capital stock entitled to vote on such amendment, alteration, repeal, or adoption of inconsistent provisions, voting together as a single class ;

● the requirement that a special meeting of stockholders may be called only by a majority of our board of directors, our Chief Executive Officer, or the Chairman of our board of directors; and

● advance notice procedures that stockholders must comply with in order to nominate candidates to our board of directors or to propose matters to be acted upon at a stockholders' meeting, which may discourage or deter a potential acquiror from conducting a solicitation of proxies to elect the acquiror's own slate of directors or otherwise attempting to obtain control of us.

These provisions, alone or together, could delay or prevent hostile takeovers and changes in control or changes in our management.

As a Delaware corporation, we are also subject to provisions of Delaware law, including Section 203 of the DGCL, which prevents some stockholders holding more than 15% of our outstanding common stock from engaging in certain business combinations without approval of the holders of substantially all of our outstanding common stock.

Any provision of our amended and restated certificate of incorporation, amended and restated bylaws or Delaware law that has the effect of delaying or deterring a change in control could limit the opportunity for our stockholders to receive a premium for their shares of our common stock, and could also affect the price that some investors are willing to pay for our common stock.

***Our amended and restated certificate of incorporation will provide that the Court of Chancery of the State of Delaware will be the sole and exclusive forum for certain stockholder litigation matters and the federal district courts of the U.S. shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers, employees or stockholders.***

The choice of forum provision may limit a stockholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers or other employees, which may discourage such lawsuits against us and our directors, officers, and other employees, although our stockholders will not be deemed to have waived our compliance with federal securities laws and the rules and regulations thereunder. Alternatively, if a court were to find the choice of forum provision contained in our amended and restated certificate of incorporation to be inapplicable or unenforceable in an action, we may incur additional costs associated with litigating such action in another jurisdiction, which could harm our business, financial condition and results of operations. Any person or entity purchasing or otherwise acquiring or holding any interest in shares of our capital stock shall be deemed to have notice of and consented to the forum provisions in our amended and restated certificate of incorporation.

***Investors in this offering will experience immediate dilution upon the closing of the offering.***

If you purchase shares of our common stock in this offering, you will experience immediate dilution of $5.15 per share because the price that you pay will be greater than the pro forma net tangible book value per share of the common stock you acquire. This dilution is in large part due to the fact that our earlier investors paid substantially less than the initial public offering price when they purchased their shares. You may experience additional dilution if we issue shares of our common stock under the 2016 Stock Plan (as amended, the "2016 Stock Plan"), a new long-term equity incentive plan (the "2025 Stock Plan") we expect to adopt in connection with this offering, or any other equity incentive plan, or we otherwise issue additional shares of our common stock at a price below the initial public offering price. For more information, see "*Dilution*" beginning on page 38.

***Prior to this offering, there has been no public market for our common stock, and we cannot assure you that a market for our common stock will develop or that the market price of shares of our common stock will not decline following the offering.***

We cannot assure you that a trading market will develop for our common stock after this offering or, if one develops, that such trading market can be sustained. We have applied to have our common stock listed on Nasdaq, but we cannot assure you that our application will be approved. In addition, we cannot predict the prices at which our common stock will trade. The initial public offering price for our common stock will be determined through our negotiations with the underwriters based on numerous factors, including the information set forth in this prospectus, our prospects and the prospects of our industry, an assessment of our management, our prospects for future earnings, the general condition of the securities markets, the recent market prices of, and demand for, publicly traded common stock of generally comparable companies and other factors deemed relevant by the underwriters and us. Neither we nor the underwriters can assure you that the initial public offering price will bear any relationship to the market price at which our common stock may trade after our initial public offering. Shares of companies offered in an initial public offering often trade at a discount to the initial offering price due to underwriting discounts and commissions and related offering expenses.

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus includes forward-looking statements regarding, among other things, our plans, strategies and prospects, both business and financial, prior to the offering, and following the offering. These statements are based on the reasonable beliefs and assumptions made by us at the time made. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words "believes," "estimates," "expects," "projects," "forecasts," "potential," "future," "may," "will," "should," "could," "seeks," "plans," "scheduled," "anticipates," "predict," "assumes," "intends" or similar expressions. Forward-looking statements contained in this prospectus include, but are not limited to, statements about our ability to:

● meet the closing conditions to the offering;

● realize the benefits expected from the proposed offering;

● execute our business strategy, including monetization of services provided and expansions in
 and into existing and new lines of business;

● anticipate the impact of macroeconomic conditions, including rising interest rates, inflation, instability
 in the global banking system, tariffs, trade wars, and the war in Ukraine, on business and financial conditions;

● anticipate the uncertainties inherent in the development of new business lines and business strategies;

● retain and hire necessary employees;

● increase brand awareness;

● attract, train and retain effective officers, key employees or directors;

● acquire and protect intellectual property;

● upgrade and maintain information technology systems;

● access, collect and use personal data about consumers;

● meet future liquidity requirements and comply with restrictive covenants related to long-term indebtedness;

● effectively respond to general economic and business conditions;

● the listing of our securities on Nasdaq or an inability to have our securities listed on Nasdaq
 or another national securities exchange following the offering;

● our ability to obtain additional capital, including use of the equity and debt markets;

● enhance future operating and financial results;

● anticipate rapid technological changes;

● comply with laws and regulations applicable to our business;

● anticipate the impact of, and response to, new accounting standards;

● anticipate increases in inflation and interest rates which would increase the cost of capital;

● anticipate the significance and timing of contractual obligations;

● maintain key strategic relationships with partners and distributors;

● respond to uncertainties associated with product and service development and market acceptance;

● manage to finance operations on an economically viable basis;

● anticipate the impact of new U.S. federal income tax laws;

● successfully defend litigation; and

● successfully deploy the proceeds from the offering.

Forward-looking statements are not guarantees of performance and speak only as of the date hereof. While we believe that these forward-looking statements are reasonable, there can be no assurance that we will achieve or realize these plans, intentions or expectations.

The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors, including those described in the section titled "*Risk Factors*" and elsewhere in this prospectus. The risks described under the heading "*Risk Factors*" are not exhaustive. Other sections of this prospectus describe additional factors that could adversely affect our business, financial condition or results of operations prior to the offering, and following the offering. New risk factors emerge from time to time, and it is not possible to predict all such risk factors, nor can we assess the impact of all such risk factors on our business prior to the offering, and following the offering, or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligation to update or revise any forward-looking statements made in this prospectus to reflect events or circumstances after the date of this prospectus, whether as a result of new information, future events or otherwise, except as required by law.

In addition, statements of belief and similar statements reflect our reasonable 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 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, involve risks and are subject to change based on various factors, including those discussed under the headings "Risk Factors" and "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" in this prospectus.

**USE OF PROCEEDS**

We estimate the net proceeds to us from the sale of shares of common stock by us in this offering will be approximately $22.3 million (or $25.7 million if the underwriters exercise their over-allotment option in full), after deducting underwriting discounts and commissions and estimated offering expenses payable by us. This estimate assumes a public offering price of $5.50 per share, which is the mid-point of the offering price range indicated on the cover of this prospectus.

Each $1.00 increase or decrease in the assumed initial public offering price of $5.50 per share, which is equal to the midpoint of the price range set forth on the cover page of this prospectus, would increase or decrease, as applicable, the net proceeds to us from this offering by approximately $4.5 million, assuming the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. Similarly, each increase or decrease of 1.0 million shares in the number of shares of common stock offered by us would increase or decrease, as applicable, the net proceeds to us from this offering, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us, by approximately $4.5 million, assuming the assumed initial public offering price stays the same. The information discussed above is illustrative only and will adjust based on the actual initial public offering price and other terms of this offering determined at pricing.

We currently intend to use the net proceeds we receive from this offering for working capital to fund growth and other general corporate purposes, which may include research and development, sales and general administrative matters and capital expenditures. We may also use a portion of the net proceeds to acquire or make investments in businesses, products, offerings and technologies, although we do not have agreements or commitments for any material acquisitions or investments at this time.

The expected use of net proceeds from this offering represents our intentions based upon our present plans and business conditions. We cannot specify with certainty the particular uses of the net proceeds that we will receive from this offering or the amounts we actually spend on the uses set forth above. Pending the use of proceeds from this offering as described above, we plan to invest the net proceeds that we receive in this offering in short-term and intermediate-term interest-bearing obligations, investment-grade investments, certificates of deposit or direct or guaranteed obligations of the U.S. government. Our management will have broad discretion in the application of the net proceeds from this offering and investors will be relying on the judgment of our management regarding the application of the proceeds.

**DIVIDEND POLICY**

We have never paid or declared any cash dividends on our common stock, and we do not anticipate paying any cash dividends on our common stock in the foreseeable future. We currently intend to retain all available funds and any future earnings to fund the development and expansion of our business. Any future determination to pay dividends will be at the discretion of our board of directors and subject to restrictions on dividends in our Debentures and will depend upon a number of factors, including our results of operations, financial condition, future prospects, contractual restrictions, restrictions imposed by applicable law and other factors our board of directors deems relevant. Our future ability to pay cash dividends on our stock may also be limited by the terms of any future debt, preferred securities, or credit facility.

**CAPITALIZATION**

The following table sets forth our cash, cash equivalents, available-for-sale marketable securities and our capitalization as of June 30, 2025:

● on an actual basis;

● on a pro forma basis as of June 30, 2025 after giving effect to the Exchange, the Warrant Exercise
 and the Service Provider Warrant Exercise; and

● a pro forma as adjusted basis to reflect the sale of shares of common stock by us in this offering
 at the assumed initial public offering price of $5.50 per share (which is equal to the midpoint of the range
 set forth on the cover page of this prospectus), after deducting the underwriter's discounts and commissions and estimated offering
 expenses payable by us, assuming the underwriter does not exercise the over-allotment option.

The as adjusted information set forth in the table below is illustrative only and will be adjusted based on the actual initial public offering price and other terms of this offering determined at pricing. We derived this table from, and it should be read in conjunction with and is qualified in its entirety by reference to, our consolidated financial statements and the accompanying notes included elsewhere in this prospectus. You should also read this table in conjunction with the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the other financial information contained in this prospectus.

---

| | | | |
|:---|:---|:---|:---|
|  | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
|  | **Actual** | **Pro Forma** | **Pro Forma As Adjusted** |
|  | **(in thousands, except share amounts and par values)** | **(in thousands, except share amounts and par values)** | **(in thousands, except share amounts and par values)** |
| Cash and restricted cash | $2384 | $2384 | $24034 |
| Long-Term Debt |  |  |  |
| Convertible debentures payable (at fair value) | $39655 | $8462 | $8462 |
| Common Stock Purchase warrants liability | 20956 |  |  |
| Stockholders' deficit: |  |  |  |
| &nbsp;&nbsp;&nbsp; Preferred stock, par value $0.001 per share; no shares authorized, issued and outstanding, actual; 5,000,000 shares authorized and 42,033.93 shares issued and outstanding, pro forma and pro forma as adjusted |  | 7 | 7 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital, convertible preferred stock |  | 42372 | 42372 |
| &nbsp;&nbsp;&nbsp; Common stock, par value $0.001 per share; 40,000,000 shares authorized, 13,131,701 shares issued and outstanding, actual; 40,000,000 shares authorized, 15,060,318 shares issued and outstanding, pro forma; 150,000,000 shares authorized, 19,605,772 shares issued and outstanding, pro forma as adjusted | 13 | 15 | 20 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital, common stock | 21229 | 30997 | 52642 |
| Additional paid-in capital, total | 21229 | 73369 | 95014 |
| Accumulated deficit | (82488) | (82488) | (82488) |
| Total stockholders' equity (deficit) | (61246) | (9097) | 12553 |
| &nbsp;&nbsp;&nbsp;Total capitalization | $(635) | $(635) | $21015 |

---

The number of shares of our common stock outstanding, pro forma and pro forma as adjusted, in the table above is based on 13,131,701 shares of our common stock outstanding as of June 30, 2025 and excludes:

● 5,953,193 shares of our common stock
 issuable upon exercise of options to purchase shares of our common stock outstanding as of June 30, 2025,
 with a weighted average exercise price of $3.26 per share;

● 1,289,812 shares of our common stock issuable upon the conversion of Debentures (as defined below) that
 will not be exchanged for Series A Preferred Stock in the Exchange;

● 7,256,759 shares of our common stock issuable upon the conversion of Series A Preferred Stock issued
 in the Exchange;

● 2,000,000 shares of our common
 stock reserved for issuance following this offering under our equity incentive plans; and

● any exercise of the underwriters' option to purchase additional
 shares of common stock in this offering.

In addition, the number of shares of common stock outstanding does not give effect to:

&nbsp;&nbsp;&nbsp;&nbsp;● amendments to our amended and restated certificate of incorporation
 and amended and restated by-laws to be adopted prior to the completion of this offering;

● any exercise of the Representatives' Warrants; and

● any exercise of the underwriters' option to purchase additional shares of common stock in this offering.

Each $1.00 increase or decrease in the assumed initial public offering price of $5.50 per share, which is equal to the midpoint of the price range set forth on the cover page of this prospectus, would increase or decrease, respectively, the amount of cash and cash equivalents, additional paid-in capital, total stockholders' equity and total capitalization by $4.2 million, assuming the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. We may also increase or decrease the number of shares we are offering.

An increase or decrease of 1.0 million in the number of shares we are offering would increase or decrease, respectively, the amount of cash and cash equivalents, stockholders' equity and total capitalization by approximately $5.1 million, assuming the assumed initial public offering price per share remains the same, and after deducting underwriting discounts and commissions. The pro forma information is illustrative only, and we will adjust this information based on the actual initial public offering price and other terms of this offering determined at pricing.

If the underwriters' option to purchase additional shares is exercised in full, our pro forma as adjusted cash and cash equivalents, total stockholders' (deficit) equity, and total capitalization as of June 30, 2025 would be $27.5 million, $16.0 million, and $24.5 million, respectively.

**DILUTION**

If you invest in our common stock in this offering, your ownership interest in us will be diluted to the extent of the difference between the initial public offering price per share of our common stock and the pro forma as adjusted net tangible book value (deficit) per share of our common stock after giving effect to this offering. Dilution results from the fact that the per share offering price of the common stock is substantially in excess of the net tangible book value (deficit) per share attributable to our existing stockholders.

Historical net tangible book value (deficit) per share represents our total tangible assets less our liabilities divided by the total number of shares of common stock outstanding. Our net tangible book value (deficit) as of June 30, 2025 was approximately $(67.0) million, or $(5.10) per share of our common stock outstanding as of June 30, 2025. Our pro forma net tangible book value (deficit) as of June 30, 2025, was approximately $(14.8) million, or $(0.98) per share, after giving effect to the Exchange, the Warrant Exercise and the Service Provider Warrant Exercise, based on an assumed initial public offering price of $5.50 per share (which is equal to the midpoint of the range set forth on the cover page of this prospectus).

After giving effect to (i) the Exchange, (ii) the Warrant Exercise, (iii) the Service Provider Warrant Exercise and (iv) the sale by us of 4,545,454 shares of common stock in this offering at an assumed initial public offering price of $5.50 per share, which is equal to the midpoint of the estimated price range set forth on the cover page of this prospectus, after deducting the underwriting discounts and commissions and estimated offering expenses payable by us, our pro forma as adjusted net tangible book value (deficit) as of June 30, 2025 would have been $6.9 million, or $0.35 per share of our common stock. This amount represents an immediate increase in net tangible book value (deficit) of $1.33 per share of common stock to our existing stockholders and an immediate and substantial dilution in net tangible book value (deficit) of $5.15 per share of common stock to new investors purchasing shares in this offering.

We calculate dilution per share to new investors by subtracting the pro forma net tangible book value (deficit) per share from the initial public offering price paid by the new investor. The following table illustrates this dilution on a per share of common stock basis assuming the underwriters do not exercise their option to purchase additional shares of common stock in this offering:

---

| | | |
|:---|:---|:---|
| Assumed initial public offering price per share of common stock |  | $5.50 |
| Historical net tangible book value (deficit) per share as of June 30, 2025 | $(5.10) |  |
| Increase per share attributable to the pro forma adjustments described above | 4.12 |  |
| Pro forma net tangible book value (deficit) per share of common stock as of June 30, 2025 | $(0.98) |  |
| Increase in pro forma net tangible book value (deficit) per share of common stock attributable to investors in this offering | 1.33 |  |
| Pro forma as adjusted net tangible book value (deficit) per share of common stock after giving effect to this offering |  | $0.35 |
| Dilution per share of common stock to investors in this offering |  | $5.15 |

---

The number of shares of our common stock outstanding, pro forma and pro forma as adjusted, in the table above is based on 13,131,701 shares of our common stock outstanding as of June 30, 2025 and excludes:

● 5,953,193 shares of our common stock issuable upon exercise of options to purchase shares of our common stock outstanding
as of June 30, 2025, with a weighted average exercise price of $3.26 per share;

● 1,289,812 shares of our common stock issuable upon the conversion of Debentures
(as defined below) that will not be exchanged for Series A Preferred Stock in the Exchange;

● 7,256,759 shares of our common stock issuable upon the conversion of Series
 A Preferred Stock issued in the Exchange;

● 2,000,000 shares of our common stock reserved for issuance following this
 offering under our equity incentive plans; and

● any exercise of the underwriters' option to purchase additional shares of common stock in this offering.

In addition, the number of shares of common stock outstanding does not give effect to:

● amendments
 to our amended and restated certificate of incorporation and amended and restated by-laws to be adopted prior to the completion of
 this offering;

● any
 exercise of the Representatives' Warrants; and

● any exercise of the underwriters' option to purchase additional
 shares of common stock in this offering.

Each $1.00 increase or decrease in the assumed initial public offering price of $5.50 per share, which is equal to the midpoint of the price range set forth on the cover page of this prospectus, would increase (decrease) the pro forma as adjusted net tangible book value (deficit) per share after this offering by approximately $0.57 per share, and dilution in pro forma as adjusted net tangible book value (deficit) per share to new investors by approximately $0.78 per share, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the estimated underwriting discounts and commissions and the estimated offering expenses payable by us.

Similarly, each increase (decrease) of 1.0 million shares in the number of shares of common stock offered by us would increase (decrease) our pro forma as adjusted net tangible book value (deficit) per share after this offering by approximately $0.58 per share and the dilution to new investors participating in this offering by approximately $0.23 per share, assuming that the assumed initial public offering price of $5.50 per share remains the same and after deducting the estimated underwriting discounts and commissions and the estimated offering expenses payable by us.

If the underwriters' option to purchase additional shares to cover over-allotments is exercised in full, the pro forma as adjusted net tangible book value (deficit) per share after giving effect to this offering would be approximately $0.51 per share, representing an immediate increase to existing stockholders of $1.49 per share, and immediate dilution to new investors in this offering of $4.99 per share.

In addition, we may choose to raise additional capital due to market conditions or strategic considerations even if we believe we have sufficient funds for our current or future operating plans. To the extent that additional capital is raised through the sale of equity or convertible debt securities, or any options are exercised, new investors will experience further dilution.

The following table summarizes, on the same pro forma as adjusted basis described above, the differences between the total number of shares of common stock purchased from us, the total cash consideration paid to us, and the average price per share of common stock paid by our existing stockholders and by new investors purchasing shares of common stock in this offering.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Total Consideration** | |
|  | **Number** | **Percent** | **Amount** | **Percent** | **Average Price**<br>**Per Share** |
|  | | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Existing stockholders | 15134617 | 77% | $31011708 | 55% | $2.05 |
| New investors in this offering | 4545454 | 23% | $25000000 | 45% | $5.50 |
| Total | 19680071 | 100% | $56011708 | 100% | $2.85 |

---

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

*You should read the following discussion and analysis of our financial condition and results of operations with our audited consolidated financial statements for the years ended December 31, 2024 and 2023, together with related notes thereto, and our unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025 and 2024, together with related notes thereto, included elsewhere in this prospectus. The discussion and analysis should also be read together with the sections entitled "Business" and "Prospectus Summary—Summary Financial Data" included elsewhere in this prospectus. The following discussion contains forward-looking statements based upon current expectations that involve risks, uncertainties and assumptions. You should review the sections titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" for a discussion of forward-looking statements and important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. In this section, unless otherwise specified, the terms "we", "our", "us", the "Company" and "FireFly" refer to FireFly Automatix, Inc. All dollar amounts are expressed in thousands of United States dollars ("$"), unless otherwise indicated.*

**Company Overview**

Since 2010, we have been passionate about becoming a leader in the turfgrass industry as a firm that designs, manufactures, sells and supports products that we believe have the potential to disrupt the turf harvesting, sports turf and golf markets through automation, robotics and both labor cost savings and energy efficiency. We have expanded our turfgrass expertise and have had success in Europe, Australia, the Asia Pacific region, and other international markets.

We are a growth-oriented technology company with internally developed proprietary software that is integrated with our patented mechatronic systems. We have embedded our technology into the design, development, and manufacturing of our PATH and our most current AEV robotic mowers, the AMP, including our AMP-L100 and AMP-X100 models. Our PATH machines are comprised of our ProSlab Harvester and R300 Roll Machine. Our AMPs come in two models: one with a 5-gang reel, the AMP-L100, and another with a 5-gang rotary mower, the AMP-X100.

We began emerging as an AgTech innovator in 2023 with the introduction of our AMP-L100, which we began marketing and selling in 2024. These industrial, self-driving, AEV robotic mowers represent our first solution specifically designed for the unique requirements of the golf course, sports field, government, real estate, and turfgrass mowing markets. We believe that our AMPs provide a unique mowing approach that is both environmentally sound and business friendly. Our AMPs have been adopted by a number of prominent country clubs and golf courses due to their precision mowing capabilities, regulatory compliance with emission standards, and significant labor cost savings. Our current turf farm customers are embracing our AMPs for the quality of cut and flexibility in mowing their farms during the nighttime hours.

We believe that we have designed our AMPs to specifically target the demanding needs of our target mowing markets. Based on our internal calculations, derived from publicly available information estimating the number of schools, parks, airports, and other relevant applications of our AMPs and internally developed estimates of the average equipment needs for such facilities, we believe that these target mowing markets, together with the turf-harvesting market, represent a TAM exceeding approximately $43.6 billion annually, over 14 times larger than our estimate of the turf-harvesting opportunity alone. For additional information regarding our calculation of our relevant TAMs, including underlying data and assumptions used, see the discussion under "*Business - Our Business*."

We are dedicated to being at the forefront of global AgTech innovations and determined to protect our position as a leading technology supplier to turfgrass producers worldwide, while also extending our impact into the mowing opportunities outlined above. We believe we have assembled a highly qualified team of engineers and software developers with extensive experience in the AgTech arena as well as complementary fields to support our business strategy. We plan to continue to strengthen our culture of innovation, quality, and excellent customer service.

We have made the deliberate choice to vertically integrate our design, development, and manufacturing systems with the goal of allowing us to rapidly design and develop disruptive products, significantly shortening the time to bring new products to market. Our AMPs provide a prime example of this advantage. All of our research and development into automating the PATH machines, particularly our servo electric motion control technology, was transferable to our AMPs. We believe that our engineering expertise, vertically integrated production capabilities, and track record with critical piece part and subcomponent manufacturing positions us to successfully serve our customers who rely on us to deliver technical design and scaled manufacturing for integrated systems. From 2016 to June 30, 2025, we have an estimated combined total of over 770 PATH machines, AMPs and M220 machines in service throughout the world. This represents a CAGR of approximately 31.5% from 76 machines sold in 2016. We calculate CAGR by taking the cumulative units sold as of June 30, 2025, dividing it by the cumulative units sold as of December 31, 2016, raising the result to the power of one divided by the number of years in the measurement period (8.50), and then subtracting one. Customers from the United States, Australia, the United Kingdom, Brazil, Canada, South Africa, and Mexico have purchased our machines.

Our machine offerings consist of:

● PS155 C and PS160 Slab Harvesters. The PS155C is the basic slab harvester that we offer. The PS160 has electric conveyors (upper and pickup), which give very repeatable high speeds and smooth, accurate control. The PS160 also harvests grass 20% to 30% faster than the standard PS155C. Our electric systems reduce hydraulic oil temperature and improve fuel efficiency. The PS160 also comes with reconfigured gear ratios for higher transport speed and improved traction control when harvesting in slippery conditions.

● R300 Harvester. The R300 Harvester stacks the turf on pallets in mini rolls. The R300 Harvester now has a single, powerful computer to run both the machine and operator interface. From chop to stack, the R300 Harvester's systems are synchronized for the highest speeds and productivity. We believe that we have the only machine on the market that can pick up rolls from the accumulating conveyor while it is moving.

● AMP-L100 and AMP-X100. We offer two models of our AMPs: a 5 gang reel, model AMP-L100, and a 5 gang rotary, model AMP-X100. Both models are fully autonomous, all electric, 100-inch robotic mowers. Our AMPs' patented drive and steering system, which utilizes four induction motors, is synchronized with two independent steering motors to achieve a combination of traction and low impact to turf. Each wheel is commanded at precise velocity for any given input velocity and steering angle, providing consistent traction. The absence of a diesel engine and hydraulic pump allows the weight of the machine to be distributed for balance, responsive handling, and low turf impact.

● Used machines. From time to time, we will take trade-ins from existing and/or new customers and resell the used machines. The trade-ins are typically used machines previously sold by us, or our competitors' machines.

We purchase and fabricate parts for all of our machines, which are used both in our manufacturing process and in our service business. We currently produce and ship an average of over 900 after-market replacement parts per month. We believe with such capacity we are well positioned to support the growth of our AMP sales and increase unit deliveries.

We currently have a team of 18 highly trained technicians and implementers to assist our customers. Each technician has a service truck stocked with an inventory of spare parts used to maintain and repair our machines. The implementers work onsite with our customers to train them on the operation of their new AMP. Fifteen of our technicians perform both functions, 1 of them only serves as a service technician, and 2 of them only serve as implementers. Additionally, all customers have access to our technical service call center staffed by experts trained to diagnose and correct issues on the machines.

We typically arrange and bill the shipping for machines and parts. Additionally, we offer an annual 12-month software subscription for each AMP sold that gives customers access to performance metrics.

We believe that the proceeds from this offering will be sufficient to fund capital expenditures and expansion of our operations to achieve revenue in the range of $75 million to $80 million by late 2026 or early 2027. We currently expect that if our revenue is in such range, we will achieve break-even EBITDA. "Break-even" EBITDA means EBITDA of at least $0. However, there can be no guarantee that we will be able to successfully expand our operations or that sales will increase as expected in response to our increased sales, marketing, and other operating activities, and we may not achieve break-even EBITDA within the currently expected timing, or at all.

EBITDA is a non-GAAP financial measure. We define EBITDA as net income or loss excluding the impact of interest, income taxes, intangible asset amortization, depreciation, and stock-based compensation expense. We reference EBITDA measures in our decision making because we believe it provides supplemental information that facilitates consistent internal comparisons to the historical operating performance of prior periods and we believe it provides investors with greater transparency to evaluate our business and operations. With respect to our expectations regarding break-even EBITDA, a quantitative reconciliation to the corresponding GAAP information cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to stock-based compensation. For the same reasons, we are unable to assess the probable significance of the unavailable information, which could have a material impact on our future GAAP financial results.

**Recent Developments**

<u>Convertible Note Financings</u>

In July 2025, we issued an unsecured convertible note to an investor in the principal amount of $100,000. The convertible note has a term of two years and bears interest at a rate of 15% per annum. The note will automatically convert into shares of common stock upon the closing of an underwritten public offering of common stock that raises at least $10,000,000 of gross proceeds, at a conversion price equal to the lesser of (i) $5.5674 per share or (ii) 90% of the initial public offering price per share. The principal and accrued interest on the convertible note are due at maturity.

In August 2025, we issued four unsecured convertible notes to three investors in the aggregate principal amount of $220,347.66. Each convertible note has a term of two years and bears interest at a rate of 15% per annum. The notes will automatically convert into shares of common stock upon the closing of an underwritten public offering of common stock that raises at least $10,000,000 of gross proceeds, at a conversion price equal to the lesser of (i) $5.5674 per share or (ii) 90% of the initial public offering price per share. The principal and accrued interest on the convertible notes are due at maturity.

<u>ATW Exchange and Warrant Exercise</u>

On October 21, 2025, we entered into an Exchange Agreement (the "Exchange Agreement") with certain funds affiliated with ATW Partners LLC (collectively, "ATW"). Under the Exchange Agreement, ATW agreed to (i) exchange (the "Exchange") (a) the outstanding principal and capitalized interest under the July 2019 Debenture, the April 2020 Debenture, and the September 2020 Debenture (each as defined below) and (b) certain of the July 2019 Warrants, April 20, 2020 Warrants, September 2020 Warrants, January 2022 Warrants, January 2023 Warrants, July 11, 2024 Warrants, July 25, 2024 Warrants, and June 2025 Warrants (each as defined below), for an aggregate of 41,206.58 shares of our Series A convertible preferred stock (based upon a public offering price in this offering equal to $5.50, which is the mid-point of the price range set forth on the cover page of this prospectus), to be authorized immediately prior to this offering (the "Series A Preferred Stock") and (ii) exercise, on a cashless basis, the remainder of the July 2019 Warrants, January 2022 Warrants, and January 2023 Warrants that are not being exchanged, such that ATW will beneficially own (as such term is defined under Section 13 of the Exchange Act and the rules and regulations promulgated thereunder) 1,965,916 shares of common stock (based upon a public offering price in this offering equal to $5.50, which is the mid-point of the price range set forth on the cover page of this prospectus), representing 9.99% of our common stock outstanding after the completion of this offering (the "Warrant Exercise"). The Exchange and Warrant Exercise will take place immediately prior to the completion of this offering and after the filing of our amended and restated certificate of incorporation and the Series A Certificate of Designation (as defined below). The shares of Series A Preferred Stock issued in the Exchange will be convertible, at the election of ATW, into an aggregate of 7,492,105 shares of common stock. For a description of the rights of the Series A Preferred Stock, see the section titled "*Description of Capital Stock - Series A Preferred Stock*". Following the Exchange and the Warrant Exercise, ATW will beneficially own 41,206.58 shares of Series A Preferred Stock and 1,965,916 shares of common stock, based upon a public offering price in this offering equal to $5.50, which is the mid-point of the price range set forth on the cover page of this prospectus.

<u>Registration Rights Agreement</u>

In connection with the Exchange Agreement, we entered into a Registration Rights Agreement (the "Registration Rights Agreement") with ATW. Pursuant to the Registration Rights Agreement, we agreed with ATW that we will file a registration statement on Form S-1 180 calendar days following the pricing of the IPO covering the resale of: (a) the shares of common stock issued or issuable upon the conversion of certain Debentures, (b) the shares of common stock issued or issuable upon the conversion of the Series A Preferred Stock, and (c) shares of common stock held by the holders following the closing of this offering (the "Registrable Securities"), subject to the ability to delay such filing under certain circumstances. We are also required to cause the registration statement to become effective within 45 calendar days following the required filing date, or within 75 days if the SEC notifies us that it will review the registration statement.

Further, the Registration Rights Agreement provides that, in the event a "Triggering Event" occurs prior to the 180th day following the pricing of this offering, we will prepare and file with the Commission a registration statement covering the resale of up to 33% of the Registrable Securities, and the sale of such Registrable Securities will be permitted during the Lock-up Period (as defined below). A "Triggering Event" occurs if, on any trading day following the 90th day after the pricing of this offering, the daily volume-weighted average price ("VWAP") of our common stock equals or exceeds 200% of the initial public offering price for at least five out of ten consecutive trading days.

If there is no effective registration statement covering all Registrable Securities and we plan to register shares of common stock after this offering (other than for employee plans, mergers, or dividend reinvestment plans), we must promptly notify the holders of the Registrable Securities and include any of their securities in the registration if requested in writing. However, we are not required to register securities that can already be sold without restriction under Rule 144, provided we meet current public information requirements, as confirmed by legal counsel.

If the SEC limits the number of securities that may be included in the registration statement, we will prioritize the inclusion of Registrable Securities as defined in the agreement, and may file additional registration statements as necessary.

Under the Registration Rights Agreement, we will indemnify the holders of Registrable Securities and certain related persons, such as their officers, directors, employees, agents, and representatives, against any losses or damages resulting from any untrue statement or omission of a material fact in any registration statement or prospectus pursuant to which they sell Registrable Securities, unless such liability arises from their misstatement or omission. Conversely, the holders of Registrable Securities will agree to indemnify us and certain related persons, such as our officers, directors, and underwriters, against all losses caused by their misstatements or omissions in those documents.

<u>Warrant Exercise Agreement</u>

On October 21, 2025, we entered into a Warrant Exercise Agreement (the "Service Provider Warrant Exercise Agreement") with certain service providers who previously received common stock purchase warrants with an exercise price of $2.00 per share. Under the terms of the Service Provider Warrant Exercise Agreement, these service providers agreed to exercise their warrants on a cashless basis for 80% of the shares initially issuable, resulting in the issuance of 32,000 shares of common stock (the "Service Provider Warrant Exercise").

<u>Software Update</u>

In February 2025, we implemented a major software update over-the-air for all autonomous mower customers. This update included numerous new features in direct response to customer requests, including:

● Smart Start: Allows operators to drop off the AMP anywhere within the fairway. The mower autonomously finds its path starting point and begins mowing, significantly reducing manual driving time and streamlining operations.

● Fairway Mode: Users can save specific mowing and operating boundaries, enabling the AMP to execute turns either in the rough or within the fairways. This feature can reduce the number of clean-up passes needed and provides added flexibility for each course.

● Enhanced Keep-Out Zones: Empowers the AMP to safely navigate around obstacles in the fairways while preserving straight mowing lines and consistent striping. This capability improves efficiency and maintains the aesthetic quality of the turf.

● Refreshed User Interface: With an improved workflow and a more cohesive look and feel, the new interface makes controlling and managing the AMP more intuitive and efficient than ever before.

**Principal External Factors Affecting Our Operating Results**

We believe that our performance and future success depend on many factors that present significant opportunities for us but also pose risks and challenges, including those discussed below and in the section titled *"Risk Factors*".

● *Market acceptance*. The growth of our business depends on our ability to gain broader acceptance of our current products by continuing
 to make users aware of the significant benefits of our products so as to generate increased demand and frequency of use, and thus
 increase our sales. Our ability to grow our business will also depend on our ability to expand our customer base in existing or new
 target markets, including international markets. Although we have increased the number of users of our PATH machines and AMPs and
 continue to grow our channels globally through established relationships and focused sales efforts, we cannot provide assurance that
 our efforts will continue to increase the demand for and use of our products.

● *Sales force size and effectiveness.* The rate at which we grow our sales force and expansion
 channels and the speed at which newly hired salespeople and sales channels become effective
 can impact our revenue growth and our costs incurred in anticipation of such growth. We intend
 to continue to make significant investments in our sales and marketing organization and channels
 by increasing the number of sales representatives and expanding our international programs
 to help facilitate further adoption of our products as well as broaden awareness of our products
 to new customers.

● *Product and geographic mix; timing.* Our financial results, including our gross margins, may fluctuate
 from period to period based on the timing of orders, fluctuations in foreign currency exchange
 rates and the number of available selling days in a particular period, which can be impacted
 by a number of factors, such as holidays or days of severe inclement weather in a particular
 geography, the mix of products sold and the geographic mix of where products are sold. Our
 business is subject to some seasonality, as turf harvesters and golf courses primarily make
 equipment purchases in the spring. Given our international operations, periods of seasonality
 are, in some respects, offset between different temperate zones, including northern and southern
 hemispheres. In addition, in our experience, our country club and municipality customers
 typically establish operating budgets in the fourth quarter of each year, for the following
 year. As a result, purchases by such entities may be delayed until after such budgeting processes
 are completed.

● *Declining housing starts, high interest rates and high construction costs.* Housing starts directly
 impact the demand for turf in the U.S. and other countries. The higher the mortgage
 interest rates and construction costs, the fewer new homes built, which may result in decreasing the demand for
 turf for yards and neighborhood parks. According to the national Association of Home Builders,
 total housing starts for 2024 were 1.36 million, a 3.9% decline from the 1.42 million total
 from 2023.

**Principal Components of Revenues, Costs and Expenses**

*Revenues*

Our revenues come substantially from the sale of PATH machines, AMPs, and used machines through our direct-to-consumer sales force. We also recognize revenue from the sale of purchased and fabricated parts, the shipping of machines and parts, the service and repair of machines, and, to a lesser extent, software subscriptions.

*Cost of Revenues*

Cost of revenues consists primarily of costs that are directly related to the manufacture and delivery of our machines, cost of parts purchased and fabricated, including direct material, labor, manufacturing overhead, reserves for estimated warranty costs and charges to write-down the inventory carrying value when it exceeds the estimated net realizable value.

*Operating Expense*

*Selling, General and Administrative*

Sales and marketing expenses consist primarily of advertising, training events, brand building, product marketing activities and commissions. We expect sales and marketing costs will continue to increase as we expand our international selling and marketing activities, hire additional personnel, and build brand awareness through advertising and training.

General and administrative expenses consist primarily of professional fees paid for legal, accounting, auditing, and consulting services, bad debt, licenses and association dues, facilities (including rent and utilities) bank and credit card processing fees and other expenses related to general and administrative activities.

Service expenses consist primarily of salaries, wages and benefits for the service and support technicians, travel and shipping expenses.

Included in selling, general and administrative expenses are salaries, wages and benefits which are allocated to the various departments in which the employees work. Salaries, wages and benefits are expenses earned by our employees in the executive, information technology, finance and accounting, human resources, administrative functions and outside contractors. Also included in salaries, wages and benefits are employer payroll taxes, health, and dental and expenses.

We anticipate that our general and administrative expenses will continue to increase as we continue hiring to support our growth. We also anticipate that we will incur increased accounting, audit, legal, regulatory, compliance, and investor and public relations expenses associated with operating as a public registrant.

*Research and Development*

Included in research and development expense are salaries, wages and benefits for our engineers and software developers. Also included in research and development expense are expenses for travel, training, and software licenses used in the development of our products.

*Other Expenses and Income*

*Interest Income*

Interest income relates to interest earned on our savings deposit account.

*Interest Expense*

Interest expense consists of interest expenses associated with issuing notes payable and balances outstanding under our debt obligations.

*Change in Fair Value of Convertible Debentures*

We record our convertible debentures at fair value at the time of issuance. We recognize any changes in fair value in subsequent reporting periods through the statements of operations.

*Change in Fair Value of the Common Stock Purchase Warrant Liability*

We record our warrant liability at fair value at the time of issuance. We recognize any changes in fair value in subsequent reporting periods through the statements of operations.

*Other Income*

Other income relates to the gain on assets disposed of during the year and other miscellaneous income items that are not significant.

**Results of Operations**

***Comparisons of Six Months ended June 30, 2025 and 2024***

The following table sets forth certain condensed statements of operations data for the periods indicated with dollars expressed in thousands. In addition, we note that period-to-period variations may not be indicative of future performance.

---

| | | | |
|:---|:---|:---|:---|
|  | **Six Months** <br> **Ended June 30,** | **Six Months** <br> **Ended June 30,** | **Variation** |
|  | **2025** | **2024** | **%** |
| Revenues, net | $22909 | $21542 | 6.35% |
| Cost of revenues | 19072 | 15690 | 21.56% |
| Gross profit | 3837 | 5852) | (34.43)% |
| Selling, general and administrative | 6183 | 4779 | 29.38% |
| Research and development | 2231 | 2093 | 6.59% |
| Operating expenses | 8414 | 6872 | 22.44% |
| Loss from operations | (4577) | (1020) | 348.73% |
| Change in fair value of convertible debentures | (480) | (1570) | (69.43)% |
| Change in fair value of the common stock purchase warrant liability | (943) | 31) | (3141.94)% |
| Net loss | (6083) | (2708) | 124.63% |
| Net loss income per common share | $(0.42) | $(0.20) | 110.00% |

---

*Revenues (in thousands, except number of machines sold)*

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended**<br> **June 30,** | **Six Months Ended**<br> **June 30,** |
|  | **2025** | **2024** |
| Machines: |  |  |
| &nbsp;&nbsp;&nbsp;PATH machines | $11954 | $13555 |
| &nbsp;&nbsp;&nbsp;AMPs | 3486 | 619 |
| &nbsp;&nbsp;&nbsp;Used | 1383 | 1781 |
| Parts | 4724 | 4228 |
| Shipping | 888 | 966 |
| Service | 385 | 375 |
| Other | 89 | 18 |
|  | $22209 | 21542 |

---

---

| | | |
|:---|:---|:---|
|  | **Six** **Months Ended**<br> **June 30,** | **Six** **Months Ended**<br> **June 30,** |
|  | **2025** | **2024** |
| Number of Machines Sold: |  |  |
| &nbsp;&nbsp;&nbsp;PATH machines | 32 | 40 |
| &nbsp;&nbsp;&nbsp;AMPs | 25 | 4 |
| &nbsp;&nbsp;&nbsp;Used | 14 | 17 |
|  | 71 | 61 |

---

---

| | | |
|:---|:---|:---|
|  | **Six** **Months Ended**<br> **June 30,** | **Six** **Months Ended**<br> **June 30,** |
|  | **2025** | **2024** |
| Average Sales Price: |  |  |
| &nbsp;&nbsp;&nbsp;PATH machines | $374 | 339 |
| &nbsp;&nbsp;&nbsp;AMPs | 139 | 155 |
| &nbsp;&nbsp;&nbsp;Used | 99 | 105 |

---

Our revenues were $22,909 for the six months ended June 30, 2025, compared to $21,542 for the six months ended June 30, 2024, an increase of $1,367 or 6.35%. The increase in revenues was due primarily to a $2,867 increase in AMP revenues, a $496 increase in parts revenues, a $81 increase in service and other revenues offset by a $1,601 decrease in PATH machine sales, a $398 decrease in used equipment sales and a $78 decrease in shipping revenues.

We believe that sales of our PATH machines are directly correlated with prevailing mortgage interest rates and the number of housing starts. Beginning in 2022 and continuing into 2023, the Federal Reserve increased interest rates in an effort to reduce inflation. These actions contributed to higher mortgage interest rates and a corresponding decline in housing starts. We believe that the decline in housing starts adversely impacted demand for our PATH machines.

Although the Federal Reserve reduced its benchmark interest rate beginning in September 2024 and continuing through December 2024, mortgage interest rates remain elevated from previously low levels. Mortgage rates have remained relatively flat and elevated compared to levels prior to 2022. In addition, turf farmers have indicated their concern related to tariffs and the overall, unknown impact on the economy. As a result of this environment, we believe turf farms have delayed or canceled purchases of our PATH machines. In 2023 and 2024, we sold 90 and 72 PATH machines, respectively. For the six months ended June 30, 2025 and 2024, we sold 32 and 40 PATH machines, respectively.

We began marketing and selling our AMP machines in early 2024 and hired additional AMP sales and support individuals in 2025 whose sole focus is marketing, selling, delivering and installing AMP machines. For the six months ended June 30, 2025 and 2024, we sold 25 and 4 AMPS, respectively. In April 2025, a supplier of motors for our AMP notified us of a potential 90-day delay in their delivery. This resulted in us shipping fewer AMPs than anticipated. The supplier was able to ship motors starting in August 2025. We are in the process of finalizing a long-term supply contract with a different motor manufacturer. However, we anticipate that these supply constraints will likely continue through the remainder of 2025, which will adversely affect our ability to continue to scale up production and delivery of our AMPs. As a result, we currently do not expect to experience growth in our revenue from AMP sales over the remainder of 2025.

Used machines are generally turf harvesters that we acquire through purchases on the open market or accept as trade-ins from customers, including previously sold PATH machines. Sales of used machines fluctuate based on the timing of trade-ins and subsequent resales. These machines are typically purchased by small to mid-sized turf farms that cannot afford new harvesters, as well as by turf farms seeking a lower-cost backup machine. For the six months ended June 30, 2025 and 2024, we sold 14 and 17 used machines, respectively.

Parts and services revenues increased during the six months ended June 30, 2025, primarily due to growth in the installed base of PATH machines and AMPs, as well as enhanced marketing efforts, including outbound calls to customers who own our machines to encourage parts purchases directly from us rather than through third-party sellers. In addition, higher retail sales prices for parts contributed to the increase. As of June 30, 2025, we estimate that more than 770 PATH machines, AMPs, and M220 machines combined were in service worldwide.

The decrease in shipping revenue is due primarily to shipping eight fewer PATH machines during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. PATH machines are generally shipped via third-party carriers from our manufacturing facility in Salt Lake City, Utah.

The increase in service revenue is due primarily to the increase in the number of machines in operation, and in the number of service technicians along with implementing and teaching our training school session, where customers attend our specialized training session to learn how to better operate and maintain their owned machines.

*Cost of Revenues*

Cost of revenues for the six months ended June 30, 2025, increased $3,382 or 21.56% to $19,072 from $15,690 for the six months ended June 30, 2024. The total increase was due primarily to:

&nbsp;&nbsp;&nbsp;&nbsp;i. Machine costs increased $3,275, primarily due
 to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. A $2,683 increase related to the manufacture and sale of additional
 AMPs, combined with higher purchased and fabricated parts costs resulting from supplier price increases (including $50 in tariffs)
 and higher internal fabrication labor costs.

b. A $72 increase in rent and facility operating costs and related repairs and depreciation.

c. A $394 increase in compensation and related benefits from the addition
 of manufacturing employees to support the AMP production line.

d. A $126 increase in warranty expense, reflecting a larger number
 of machines in operation worldwide.

&nbsp;&nbsp;&nbsp;&nbsp;ii. Used
 equipment costs decreased $154, primarily due to selling fewer used machines and differences in the models of used machines sold.

iii. Parts
 costs increased $372, primarily due to higher parts sales volume, supplier price increases, and higher fabrication labor costs for
 replacement parts.

iv. Shipping
 and service costs decreased $107 and $4 respectively, primarily reflecting fewer machines shipped during the period.

 

*Operating Expenses*

Our operating expenses were $8,414 for the six months ended June 30, 2025, compared to $6,872 for the six months ended June 30, 2024, an increase of $1,542 or 22.44%. The increase is in line with our strategic plan to grow and expand our product mix in order to be competitive with the AgTech and sports turf leaders and was due primarily to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Sales
 and marketing expenses increased $364, primarily due to a $244 increase in salaries, wages, and benefits resulting from the addition
 of sales associates and sales and marketing support staff, a $55 increase in travel expenses related to AMP demonstrations across
 the United States and attendance at trade show conferences, and a $65 increase in trade show registration fees.

ii. General
 and administrative expenses increased $901, reflecting a $263 increase in salaries, wages, and benefits associated with hiring additional
 accounting and administrative personnel, a $405 increase in professional fees primarily related to annual audit costs (preparing
 us to take advantage of a potential financing transaction in the public markets), and a $171 increase in building expenses, including rent (leasing an additional
30,000 square feet that will be used for manufacturing), utilities, and maintenance, a $18 increase in corporate insurance, a $64 increase
in depreciation and amortization and a $20 decrease in travel and miscellaneous office expenses.

iii. Service
 expenses increased $139, primarily due to a $36 increase in salaries, wages, and benefits related to hiring additional service technicians
 to support AMP machines, a $78 increase in travel expenses, and a $25 increase in miscellaneous service expenses, including office
 supplies, vehicle repair and maintenance, and shipping.

iv. Research
 and development expenses increased $138, primarily due to a $55 increase in project costs, a $17 increase in salaries, wages, and
 benefits, a $52 increase in software support, a $30 increase in professional fees related primarily to patent maintenance, and a
 $16 decrease in travel and other miscellaneous office expenses.

*Interest Income*

Our interest income was $18 for the six months ended June 30, 2025 compared to $15 for the six months ended June 30, 2024, an increase of $3 or 20.0%. The increase in interest income resulted from timing of deposits and higher average savings account balances in 2025.

*Interest Expense*

Our interest expense was $48 for the six months ended June 30, 2025, compared to $121 for the six months ended June 30, 2024, a decrease of $73, or 60.33%. The decrease was due to the timing of amortization of notes payable fees, notes payable repayments and certain notes maturing.

*Change in Fair Value of Convertible Debentures*

The change in fair value of convertible debentures was $(408) for the six months ended June 30, 2025, compared to $(1,570) for the six months ended June 30, 2024, representing a decrease in expense of $1,162, or 74.0%. We record our convertible debentures at fair value upon issuance, with subsequent changes in fair value recognized in the statement of operations for each reporting period. The change in fair value for the six months ended June 30, 2025 primarily reflects updated valuations of all convertible debentures outstanding as of that date, incorporating current market conditions and revised assumptions. These fair value adjustments are non-cash in nature but may cause significant volatility in our reported results of operations.

*Change in Fair Value of the Common Stock Purchase Warrant Liability*

The change in fair value of the common stock purchase warrant liability was $(943) for the six months ended June 30, 2025, compared to $31 for the six months ended June 30, 2024, representing a decrease of $974. We record common stock purchase warrant liabilities at fair value upon issuance, with subsequent changes in fair value recognized in the statement of operations for each reporting period. The change in fair value for the six months ended June 30, 2025 primarily reflects updated valuations of all common stock purchase warrants outstanding as of that date, incorporating current market conditions and revised assumptions. These fair value adjustments are non-cash in nature but may cause significant volatility in our reported results of operations.

*Other Income*

Other income for the six months ended June 30, 2025 was $16, compared to no other income or expense in the prior-year period. The current year amount primarily reflects miscellaneous income items that were not significant in nature.

*Other Expense*

Our other expense was $69 for the six months ended June 30, 2025 compared to $43 for the six months ended June 30, 2024, a change of $34 or 60.47%. The expense relates primarily to state franchise taxes and other miscellaneous adjustments.

***Comparisons of Years ended December 31, 2024 and 2023***

The following table sets forth certain condensed statements of operations data for the periods indicated with dollars expressed in thousands. In addition, we note that period-to-period variations may not be indicative of future performance.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Variation** |
|  | **2024** | **2023** | **%** |
| Revenues, net | $42477 | $41496 | 2.36% |
| Cost of revenues | 32282 | 31997 | 0.89% |
| Gross profit | 10195 | 9499 | 7.33% |
| Selling, general and administrative | 11443 | 8942 | 27.97% |
| Research and development | 4293 | 4939) | (13.08)% |
| Operating expenses | 15736 | 13881 | 13.36% |
| Loss from operations | (5541) | (4382) | 26.45% |
| Change in fair value of convertible debentures | (4158) | 727) | (671.94)% |
| Change in fair value of the common stock purchase warrant liability | (3616) | (3305) | 9.41% |
| Net loss | (13537) | (7383) | 83.35% |
| Net loss income per common share | $(0.99) | $(0.57) | 74.41% |

---

*Revenues*

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
| Machines: |  |  |
| &nbsp;&nbsp;&nbsp;PATH machines | $25325 | $29913 |
| &nbsp;&nbsp;&nbsp;AMPs | 3090 |  |
| &nbsp;&nbsp;&nbsp;Used | 3174 | 2552 |
| Parts | 8358 | 6922 |
| Shipping | 1817 | 1606 |
| Service | 652 | 475 |
| Other | 61 | 28 |
|  | $42477 | 41496 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2024** | **2023** | **2023** |
| Number of Machines Sold: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;PATH machines |  | 72 |  | 90 |
| &nbsp;&nbsp;&nbsp;AMPs |  | 23 |  |  |
| &nbsp;&nbsp;&nbsp;Used | | 22 | | 17 |
|  | | 117 | | 107 |

---

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
| Average Sales Price: |  |  |
| &nbsp;&nbsp;&nbsp;PATH machines | $352 | $332 |
| &nbsp;&nbsp;&nbsp;AMPs | 134 |  |
| &nbsp;&nbsp;&nbsp;Used | 144 | 150 |

---

Our revenues were $42,477 for the year ended December 31, 2024, compared to $41,496 for the year ended December 31, 2023, an increase of $981 or 2.36%. The increase in revenues was due primarily to a $3,090 increase in AMP revenues, a $1,436 increase in parts revenues, a $622 increase in used equipment sales, a $211 increase in shipping revenues, a $210 increase in service and other revenues offset by a $4,588 decrease in PATH machine sales. In the past, we have sold our AMPs at a discount in an effort to obtain market share, develop a customer base, and build awareness of our business. Going forward, we anticipate that our AMPs will be priced at a more normalized average selling price of approximately $160,000 to $170,000 per AMP. We expect that the increased selling price will result in additional revenue in the future. However, demand may decrease in response to increased selling prices, which would adversely affect our business. While we may in the future determine to make further pricing adjustments, we have no specific plans for further price changes at this time.

We believe our PATH machine sales are directly connected to the number of housing starts and mortgage interest rates. In 2022, the Federal Reserve began increasing interest rates to combat inflation, which led to corresponding higher mortgage interest rates. Although, the Federal Reserve subsequently lowered its benchmark interest rate, mortgage interest rates remain elevated from previously low levels prior to 2022. As mortgage interest rates increased, total housing starts have declined, which adversely impacted the demand for turf harvesting and PATH machine revenues. We believe that as a result of the slowing turf demand, turf farms delayed or canceled purchases of our PATH machines.

We began marketing and selling our AMPs during 2024. As this was the inaugural year, there were no AMP sales in the twelve months ending December 31, 2023.

Used machines are generally turf harvesters we have purchased on the open market or taken in as a trade in with customers, including previously sold PATH machines. Used sales increased as a result of the timing of taking in trade-ins and selling the used machines. Generally, the used machines are sold to the smaller to mid-size turf farms who cannot afford our new harvester and to turf farms wanting a less expensive backup machine.

Our parts and services revenues increased due to the additional number of PATH machines and AMPs in operation, pursuing strong marketing efforts like outbound calling to customers who currently own our PATH machines and AMPs to direct parts purchasers to our business rather than third-party sellers, and increased retail sales prices for our parts. As of June 30, 2025, we had an estimated total population of over 770 PATH machines, AMPs, and used machines in service throughout the world.

The increase in shipping revenue is due primarily to the increase in parts revenue, as a majority of the parts sold are shipped via third-party carriers from our warehouse in Salt Lake City, Utah, and rising shipping prices.

The increase in service revenue is due primarily to the increase in machines in operation, and in the number of service technicians along with implementing and teaching our training school session, where customers attend our specialized training session to learn how to better operate and maintain their owned machines.

*Cost of Revenues*

Cost of revenues for the year ended December 31, 2024, increased $285 or 0.9% to $32,282 from $31,997 for the year ended December 31, 2023. The total increase was due primarily to a $826 increase in purchased parts and fabricated parts due to increased prices from our suppliers and high internal fabricating labor costs, and a $154 increase in shipping costs due to price increases from our national shipping companies, long haul freight haulers, and international shipping companies, offset by a $695 decrease in machine costs due to manufacturing and selling fewer PATH machines.

*Operating Expenses*

Our operating expenses were $15,736 for the year ended December 31, 2024, compared to $13,881 for the year ended December 31, 2023, an increase of $1,855 or 13.36%. The increase for the year ended December 31, 2024, compared to December 31, 2023, was due primarily to:

&nbsp;&nbsp;&nbsp;&nbsp;i. An increase of $179 in
 sales and marketing expense primarily due to $207 in higher salaries, wages and benefits costs due to increased headcount, a $96
 increase in travel expenses related primarily to travel associated with the Black Desert Resort PGA Tour sponsorship, and a
 $15 increase in other marketing related expenses offset by a $60 decrease in media buys, trade show and promotional items and a $79
 decrease in marketing consulting expenses.

ii. A $2,206 increase in general and
 administrative expenses due to a $391 increase in salaries, wages and benefits due to hiring additional employees and related
 increases in benefit costs, a $832 increase in legal and professional fees associated with the 2024 and 2023 annual audits, a $860
 increase in building expenses including rent, utilities, maintenance and other expenses due to the addition of two new operating
 leases, a $55 increase in subscription software and licenses, and a $68 increase in other office miscellaneous expenses such as
 sales tax expense and travel expenses among other miscellaneous general and administrative expenses.

iii. A $116 increase in service
 expenses is due primarily to a $91 increase in salaries, wages and benefits due to addition al technicians and support personnel, wage increases and rising benefits expenses, and a $25 increase in shipping, travel and other
 miscellaneous expenses.

iv. A $646 decrease in
 research and development expenses due to a $811 decrease in expenses related directly to
 commercializing the AMP in 2024, a $63 decrease in legal and profession fees offset by a $160 increase in salaries, wages and
 benefits, and a $68 increase in communication expenses related to the AMP which connects to the Cloud via cellular
 technology.

*Interest Income*

Our interest income was $25 for the year ended December 31, 2024 compared to $35 for the year ended December 31, 2023, a decrease of $10. The decrease in interest income resulted from timing of deposits and lower average saving account balances in 2024.

*Interest Expense*

Our interest expense was $235 for the year ended December 31, 2024, compared to $383 for the year ended December 31, 2023, a decrease of $148, or 38.6%. The decrease was due to the timing of notes payable repayments and certain notes maturing.

*Change in Fair Value of Convertible Debentures*

The change in fair value of convertible debentures was $(4,158) for the year ended December 31, 2024, compared to $727 for the year ended December 31, 2023, a change of $(4,885), or (671.9%). We record our convertible debentures at fair value upon issuance, and recognize subsequent changes in fair value through the statement of operations in each reporting period. The 2024 change primarily reflects the impact of issuing a $1,000 convertible debenture during the year and the updated valuations for all convertible debentures outstanding as of December 31, 2024, which incorporates current market conditions and revised assumptions.

We record our convertible debentures at fair value at the time of issuance. We recognize any changes in fair value in subsequent reporting periods through the statement of operations.

*Change in Fair Value of the Common Stock Purchase Warrant Liability*

The change in fair value of the common stock purchase warrant liability was $(3,616) for the year ended December 31, 2024, compared to $(3,305) for the year ended December 31, 2023, a change of $(311), or 9.4%. We record common stock purchase warrant liability at fair value upon issuance, and recognize subsequent changes in fair value through the statement of operations in each reporting period. The change primarily reflects the impact of issuing $3,526 of common stock purchase warrants during the year and the updated valuation for all the common stock purchase warrants outstanding as of December 31, 2024, which incorporates current market conditions and revised assumptions.

We record our warrant liability at fair value at the time of issuance. We recognize any changes in fair value in subsequent reporting periods through the statement of operations.

*Other Income*

Our other income was $10 for the year ended December 31, 2024, which is related to a $10 gain on disposal of equipment. There was no other income for the for the year ended December 31, 2023.

*Income taxes*

We recorded provisions of $22 and $75 for income taxes for the each of the years ended December 31, 2024 and 2023, respectively. Valuation allowances are established when necessary to reduce deferred tax assets, including temporary differences and net operating loss carryforwards, to the amount expected to be realized in the future. FASB guidance indicates that forming a conclusion that a valuation allowance is not needed is difficult when there is negative evidence such as cumulative losses in recent years. We had cumulative losses from continuing operations in the U.S. for the three-year period ended December 31, 2024. We considered this negative evidence along with all other available positive and negative evidence and concluded that, at December 31, 2024, it is more likely than not that our U.S. deferred tax assets will not be realized. As of December 31, 2024, a valuation allowance has been recorded on our deferred tax assets to recognize only the proportion of the deferred tax asset that is more likely than not to be recognized. Our total valuation allowance was $6.8 million at December 31, 2024 and $5.7 million at December 31, 2023. Our valuation allowance increased $1.2 million and $1.1 million during the fiscal years ended December 31, 2024 and 2023, respectively.

**Liquidity and Capital Resources**

Historically, we funded our operations through the reinvestment of free cash flows generated from our business operations, issuance of common stock to private friend and family investors, borrowings from term loans, and issuance of convertible debentures.

As of June 30, 2025, we had $2,384 in cash and $624 in current working capital (representing total current assets minus total current liabilities), respectively compared to $2,587 in cash and restricted cash and $3,602 in current working capital as of December 31, 2024. As of December 31, 2024, restricted cash represents a $300 irrevocable standby letter in favor of a bank that was financing a machine purchase for one of our customers. The standby letter of credit was released in March 2025.

In July 2024, we entered into a $1,000 convertible debenture agreement with an annual interest rate of 15.0% per annum and maturing on January 31, 2028. The convertible debenture provides for an additional $1,000 borrowing at our option and based on certain requirements. In June 2025, we borrowed the additional $1,000 under such debenture. In connection with the additional borrowing, we issued warrants to purchase 181,861 shares of our common stock. The additional $1,000 borrowed in June 2025 will mature on January 31, 2028. Each of these convertible debentures will automatically convert into shares of our common stock at a conversion price equal to the lesser of (i) $5.5674 and (ii) 85% of the initial public offering price per share, subject to certain adjustments, including for subsequent equity sales at a lower price per share.

In July 2025, we issued an unsecured convertible note to an investor in the principal amount of $100,000. The convertible note has a term of two years and bears interest at a rate of 15% per annum. The note will automatically convert into shares of common stock upon the closing of an underwritten public offering of common stock that raises at least $10,000,000 of gross proceeds, at a conversion price equal to the lesser of (i) $5.5674 per share or (ii) 90% of the initial public offering price per share. The principal and accrued interest on the convertible note are due at maturity.

In August 2025, we issued four unsecured convertible notes to three investors in the aggregate principal amount of $220,347.66. Each convertible note has a term of two years and bears interest at a rate of 15% per annum. The notes will automatically convert into shares of common stock upon the closing of an underwritten public offering of common stock that raises at least $10,000,000 of gross proceeds, at a conversion price equal to the lesser of (i) $5.5674 per share or (ii) 90% of the initial public offering price per share. The principal and accrued interest on the convertible notes are due at maturity.

Our outstanding convertible debentures include customary covenants and events of default, including, but not limited, a covenant to maintain minimum operating cash flow of at least negative $650,000 during any three consecutive months. Historically, we have not been able to comply with such minimum cash flow covenants and may not be able to comply in the future. Additionally without the holders' approval, we previously amended and restated our Certificate of Incorporation to increase the number of authorized shares of common stock and amended our 2016 Stock Plan to increase the number of shares available for future grant from 5,000,000 to 7,235,215. While the holders waived such breaches, including our noncompliance with the minimum operating cash flow covenant, in March 2025, there can be no guarantee that the holders will continue to provide such waivers if we continue to fail to meet such minimum cash flow covenants, or other covenants under the Debentures. If we are in default under the Debentures and the holders declare the outstanding balances immediately due and payable, we may not have sufficient funds to satisfy such obligations and may need to seek additional waivers or pursue a reorganization proceeding under applicable bankruptcy or insolvency laws. In the event we need to seek additional waivers, the holders of the Debentures may require us to provide consideration for such waivers, including, but not limited to, issuing additional warrants or amending the terms of the Debentures to be more favorable to the holders. As a result of the waivers received, we were in compliance with the covenants under our Debentures as of June 30, 2025.

*Cash Flows*

***Comparisons of Six Months ended June 30, 2025 and 2024***

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended<br> June 30,** | **Six Months Ended<br> June 30,** |
|  | **2025** | **2024** |
| Net cash (used in) provided by: |  |  |
| Operating activities | (1121) | (1142) |
| Investing activities | (328) | (6) |
| Financing activities | 1246 | 408 |
|  | $(203) | $(740) |

---

*Cash Flows from Operating Activities*

For the six months ended June 30, 2025, the net cash used by our operating activities was $1,121, compared to net cash used in operating activities of $1,142 for the six months ended June 30, 2024 a decrease of $21 or (1.84%). Cash flow from operating activities for the six months ended June 30, 2025, were positively impacted by a $1,923 increase in accounts payable, a $892 increase in customer deposits, a $575 increase in accrued and other current liabilities, and a $27 decrease in inventory. Partially offsetting these increases was a $218 decrease in accounts receivable, a $623 decrease in prepaid expenses, and a $277 decrease in lease liability. Cash flows from operating activities for the six months ended June 30, 2025, were also impacted by non-cash expenses, including changes in fair value of convertible debentures, changes in fair value of the common stock purchase warrant liability, and stock compensation expense.

The decrease in accounts receivable was due primarily to the timing of collections related to sales of PATH machines and AMPs. The increase in accounts payable is due to the timing of processing and making supplier payments and related to the increase in inventory. The increase in accrued and other current liabilities is due primarily to additional sales tax accruals.

*Cash Flows from Investing Activities*

For the six months ended June 30, 2025, the cash used in our investing activities was $328, compared to $6 for the six months ended June 30, 2024, an increase of $322 or 5,366.67%. For the six months ended June 30, 2025, we purchased $326 in vehicles and trailers to support our growing operations.

*Cash Flows from Financing Activities*

For the six months ended June 30, 2025, the cash provided by our financing activities was $1,246, compared to net cash provided by our financing activities of $408 for the six months ended June 30, 2024, an increase of $838 or 205.39%. During the six months ended June 30, 2025, we received $1,000 in proceeds from issuing a convertible debenture, and $253 from issuing notes for vehicles and trailers. Also, during the six months ended June 30, 2025, we made $20 in principal payments on notes payable while other liabilities increased $13.

***Comparisons of Years ended December 31, 2024 and 2023***

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
| Net cash provided by (used in): |  |  |
| Operating activities | (4825) | (1780) |
| Investing activities | (492) | (267) |
| Financing activities | 5215 | 3549 |
|  | $(102) | $1502 |

---

*Cash Flows from Operating Activities*

For the year ended December 31, 2024, the net cash used in our operating activities was $4,825, compared to $1,780 for the year ended December 31, 2023, an increase of $3,045 or 171.1%. Cash flows from operating activities for 2024 were positively impacted primarily by a $1,011 increase in accounts payable and a $666 increase in accrued and other current liabilities. Partially offsetting this positive cashflow were a $449 increase in accounts receivable, $698 increase in inventory, and $1,440 decrease in customer deposits. Cash flows from operating activities for 2024 were also impacted by non-cash expenses, including changes in fair value of convertible debentures, changes in fair value of the common stock purchase warrant liability, and a decrease in inventory write-downs.

The increase in accounts receivable was due primarily to the timing of collections related to sales of PATH machines and AMPs. At the end of December 31, 2024, there were three machine sales in our accounts receivable balance compared to one machine sale at the end of December 31, 2023. The increase in inventory was due to the buildup of inventory for manufacturing AMPs and increasing the fabricated parts on hand to service the PATH machines and AMPs in operation world-wide. The increase in accounts payable is due to the timing of processing and making supplier payments and related to the increase in inventory. Customer deposits represent a 10% deposit collected from customers prior to manufacturing their machine. The change in customer deposits was due to the timing of manufacturing, and shipping the PATH machines and AMPs. The increase in accrued and other current liabilities is due primarily to additional sales tax accruals.

*Cash Flows from Investing Activities*

For the year ended December 31, 2024, the cash used in our investing activities was $492, compared to $267 for the year ended December 31, 2023, an increase of $225 or 84.3%. We spent $465 on purchases of equipment and $76 for intangible assets, while receiving $49 in cash proceeds for the disposition of assets during the year.

*Cash Flows from Financing Activities*

For the year ended December 31, 2024, the cash provided by our financing activities was $5,215, compared to $3,549 for the year ended December 31, 2023, an increase of $1,666 or 46.9%. During the year ended December 31, 2024, we issued a sixth $1,000, 15.0% per annum convertible debenture. There was no associated issuance cost. Additionally, during the year ended December 31, 2024, we issued 196,153 and 584,281 common stock shares ($0.001 par value) at prices of $5.71 and $5.77 per share, respectively. During the year ended December 31, 2024, we made $433 in principal payments on our note payable while various other liabilities decreased $264 due to the timing of payments.

*Going Concern Analysis*

Under the rules of ASC Subtopic 205-40 "Presentation of Financial Statements-Going Concern" ("ASC 205-40"), we are required to evaluate whether conditions and/or events raise substantial doubt about our ability to meet our future financial obligations as they become due within one year after the date that these consolidated financial statements are issued or available to be issued. This evaluation takes into account our current available cash and projected cash needs over the one-year evaluation period but may not consider things beyond our control.

We have experienced operating losses due primarily to research and development expense related to the design, testing, and manufacturing of our AMPs, selling, general, and administrative expense as we have sought to ramp up and establish our business, used cash from operations, and relied on the capital raised from friends, family and related parties and institutional financing to continue ongoing operations. We may or may not be able to raise additional capital or obtain additional institutional financing due to future economic conditions. In particular, the lending criteria are currently tightening in the U.S., and we have experienced a decline in demand for our turf harvester products, due to continuing declines in the new housing market and higher interest rates. These factors, when considered in the aggregate, raise substantial doubt about our ability to continue as a going concern within one year of the date these consolidated financial statements are issued. In response to these conditions, our management has prepared the financing plan described below.

Management considers the conditions outlined above as the most significant factors in raising substantial doubt about our ability to continue as a going concern within one year after the date the consolidated financial statements are available to be issued. Management's mitigating plans include: (1) raising additional liquidity through an equity raise in the public capital markets or through friends and family, (2) evaluating operating expenses and developing a plan to reduce expenditures without negatively impacting current operations, (3) placing a strategic focus on increasing sales with prime PATH customers and selling our AMPs to private and public golf courses and sports field parks, and (4) making strategic price increases on both our PATH machines and AMPs. No assurances can be given that we will be successful raising funds through an initial public offering or through other debt or equity financing, or that we will be successful in reducing operating expenses or increasing machine sales with increased prices.

We expect our current cash resources will be sufficient to finance our operations through July 2026. We will need additional sources of capital to continue funding our operations. Our significant projected cash commitments relate primarily to debt service and operating expenses. These debt service and operating expenses include the convertible debentures, notes payable and lease obligations payable. The notes payable and lease obligations payable require monthly cash payments. We anticipate the cash required to service our debt (including notes payable and lease obligations) to be between $402 to $1,037. This assumes (1) the interest on the convertible debentures will continue to be accreted to the debentures' principal outstanding and not paid in cash, and (2) the debentures will be converted into shares of our common stock at their respective maturity. Over the next twelve months, we expect to finance our operations with operating revenue from our operations, short-term debt financing, and the proceeds from this offering. However, there can be no guarantee that we will be able to obtain additional short-term debt financing or receive any proceeds from this offering. In addition, cash flows from our operations may be less than anticipated.

In the event the projected results do not occur, we may have to significantly delay, scale back, or discontinue the development and commercialization of one or more product offerings and other strategic initiatives. Additionally, we would reduce the number of new hires planned in 2025, and implement cost reduction measures such as a reduction in headcount and reducing planned sales, marketing, and research and development expenses among other cost reduction measures. Even with these measures, there is no assurance that our cash from operations would be sufficient to continue operating for the next twelve months.

**Material Cash Requirements for Known Contractual and Other Obligations**.

We may, from time to time, be subject to various contractual commitments and obligations in the normal course of business. As of June 30, 2025, we had no material pending legal proceedings, claims, or litigation that would have a material adverse effect on our consolidated financial position, results of operations, or cash flows.

In October 2018, we entered into an operating lease for our corporate headquarters and manufacturing facility, which was subsequently amended in January 2024. The lease expires in April 2031. The monthly lease payments range between approximately $91 to $116 over the term of the leases. In addition, we have entered into finance leases for various vehicle, trailer and manufacturing equipment. The monthly lease payments are approximately $19. See Note 9 – *Leases,* to our audited consolidated financial statements for additional details related to our operating and finance leases.

At the time we accept a machine order from a customer, a cash deposit is required prior to beginning manufacturing. The deposit is generally ten percent of the contract price. When the machine is completed and invoiced, the deposit is applied to the invoice amount.

We must determine which of our customers are exempt from sales tax because the customer is a reseller or self-assesses and direct pays to states and other jurisdictions on purchases the customer makes from us. These determinations contain estimates and are subject to judgment and interpretation by us and respective taxing authorities in various states and other jurisdictions, which could result in recognizing materially different amounts in future periods. Periodically, we are subject to individual state sales tax audits

From time to time, we guarantee funds for the delivery of completed machines. In May 2024, we pledged a certificate of deposit to our bank; which in turn, issued a $300 irrevocable standby letter in favor of another bank that was financing a machine purchase for one of our customers. The certificate of deposit matures on May 16, 2025, and has a 3.8% interest rate. The irrevocable standby letter of credit was released in March 2025, as the customer secured alternative financing from a different financial institution.

We issue purchase orders for parts and materials at agreed upon prices from key vendors. The lead times for delivery can range from a few days to over a year. The purchase quantities could vary according to production demands at our discretion. These are not recorded as liabilities on our balance sheet until the purchased items are received.

**Critical Accounting Policies and Estimates**

Our discussion and analysis of financial condition and results of operations discusses our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the U.S. When we prepare these consolidated financial statements, we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Some of our accounting policies require that we make subjective judgments, including estimates that involve matters that are inherently uncertain. We base our estimates and judgments on historical experience and on various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for our judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Our actual results may differ from these estimates under different assumptions or conditions

The critical accounting policies and estimates, assumptions and judgments that we believe have the most significant impact to the preparation of our consolidated financial statements are described below. See Note 2 - *Basis of Presentation and Summary of Significant Accounting Policies* to our consolidated financial statements included elsewhere in this prospectus for more information.

*Inventory*

Our inventory consists of purchased and fabricated parts, work in process, completed and used machines. Completed machines are PATH machines or AMPs that are waiting to be shipped. Used machines are generally turf harvesters we have purchased on the open market or taken in as a trade in. The inventory is valued at the lower of historic cost or net realizable value; where net realizable value is considered to be the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Historic inventory costs are calculated on a first-in-first-out basis or specific cost. We record inventory write-downs for excess or obsolete inventories based upon assumptions on current and future demand forecasts.

*Convertible Debentures*

The fair value of the convertible debentures are determined using a straight debt plus call option methodology. This is a hybrid methodology which includes a discounted cash flow analysis to fair value the debt component of the note and a Black-Scholes option pricing method to determine the fair value of any upside in excess of principal and accrued interest that may be available to holders upon conversion. Given the highly subjective and complex nature in constructing such models, we engaged an independent valuation firm to confirm the model's proper application based on management's selected inputs and assumptions.

The discounted cash flow analysis and Black-Scholes pricing model requires management to exercise judgment in selecting inputs and making highly subjective and often complex assumptions, including the fair value of our common stock, the expected term of the convertible debentures, stock price volatility, and anticipated dividend yield.

While our common stock is not currently listed on a public exchange, we have a well-established history of issuing common stock through private placements to independent, accredited investors. These transactions are conducted at arm's length and are considered to be representative of fair value in accordance with ASC 820, which defines fair value as the price that would be received in an orderly transaction between market participants at the measurement date. As a result, in the past, we relied on these private placements to determine the estimated fair value of our common stock, a key input in the Black Scholes model. For example, in 2024, we issued 196,153 and 584,281 shares of common stock at prices of $5.71 and $5.77 per share, respectively, to more than 115 individual investors, and in 2023, 271,573 shares were issued at $5.71 per share to over 35 investors. Based on these transactions, we concluded that a fair value range of $5.71 to $5.77 per share was appropriate for use in the Black-Scholes model. Historically, we have not engaged a valuation specialist to independently assess the fair value of our common stock for these purposes but the valuation firm we engaged to confirm the model also confirmed our most recent valuation of $5.77 per share. Upon commencement of public trading, we will utilize the quoted market price on the exchange as the basis for determining the fair value of our common stock.

Since our common stock does not have a public trading history on a stock exchange, we derived the expected volatility based upon the weighted average historical stock volatilities of six companies, that we consider to be comparable to our business, whose stock is actively traded on a recognized stock exchange. We believe this represents management's best estimate of expected volatility. We intend to continue to consistently apply this process using the same or similar companies to estimate the expected volatility until sufficient historical information regarding the volatility of the share price of our common stock becomes available once the underlying common stock shares are traded on a recognized stock exchange. The expected term represents the time our convertible debentures are expected to be outstanding.

The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities approximating the convertible debentures' expected term. The expected dividend yield rate is zero, as we have never declared or paid cash dividends and have no current plans to do so in the foreseeable future.

*Common Stock Purchase Warrants*

The fair value of our common stock purchase warrants is estimated on the issuance date using the Black-Scholes option pricing model. This model requires management to exercise judgment in selecting inputs and making highly subjective and often complex assumptions, including the fair value of our common stock, the expected term of the warrants, stock price volatility, and anticipated dividend yield. Given the highly subjective and complex nature in constructing such models, we engaged an independent valuation firm to confirm the model's proper application based on management's selected inputs and assumptions.

While our common stock is not currently listed on a public exchange, we have a well-established history of issuing common stock through private placements to independent, accredited investors. These transactions are conducted at arm's length and are considered to be representative of fair value in accordance with ASC 820, which defines fair value as the price that would be received in an orderly transaction between market participants at the measurement date. As a result, in the past, we relied on these private placements to determine the estimated fair value of our common stock, a key input in the Black Scholes model. For example, in 2024, we issued 196,153 and 584,281 shares of common stock at prices of $5.71 and $5.77 per share, respectively, to more than 115 individual investors, and in 2023, 271,573 shares were issued at $5.71 per share to over 35 investors. Based on these transactions, we concluded that a fair value range of $5.71 to $5.77 per share was appropriate for use in the Black-Scholes model. Historically, we have not engaged a valuation specialist to independently assess the fair value of our common stock for these purposes, but the valuation firm we engaged to confirm the model also confirmed our most recent valuation of $5.77 per share. Upon commencement of public trading, we will utilize the quoted market price on the exchange as the basis for determining the fair value of our common stock.

Since our common stock does not have a public trading history on a stock exchange, we derived the expected volatility based upon the weighted average historical stock volatilities of six companies, that we consider to be comparable to our business, whose stock is actively traded on a recognized stock exchange. We believe this represents management's best estimate of expected volatility. We intend to continue to consistently apply this process using the same or similar companies to estimate the expected volatility until sufficient historical information regarding the volatility of the share price of our common stock becomes available once the underlying common stock shares are traded on a recognized stock exchange. The expected term represents the time our common stock purchase warrants are expected to be outstanding.

The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities approximating the common stock purchase warrants' expected term. The expected dividend yield rate is zero, as we have never declared or paid cash dividends and have no current plans to do so in the foreseeable future.

*Stock Based Compensation*

The fair value of common stock options granted is estimated on the date of issuance using the Black-Scholes option pricing model, as described above with respect to the Common Stock Purchase Warrants.

Similar to the process used for the convertible debentures and common stock purchase warrants described previously, we derived the expected volatility from the average historical stock volatilities of several public peer companies that we consider to be comparable to our business. The expected term represents the average time our stock-based awards are expected to be outstanding. As a significant number of our stock option awards are not yet exercisable, we do not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. As a result, we estimated the expected term based on the weighted average midpoint of expected vest date and expiration date. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities approximating the stock options' expected term. The expected dividend yield rate is zero,

The actual estimates used can be found in Note 14 – *Stock Based Compensation* in the annual audited consolidated financial statements elsewhere in this prospectus.

**Recent Accounting Pronouncements**

*Recently Adopted*

In 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands the segment reporting disclosures and requires disclosure of segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss, amounts and description of its composition for other segment items, and interim disclosure of a reportable segment's profit or loss and assets. Additionally, the amendments require the disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing performance and deciding how to allocate resources. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis. Early adoption is permitted. We adopted ASU 2023-07 during the year ended December 31, 2024. See Note 15 - *Segments* to our audited consolidated financial statements elsewhere in the prospectus for additional details.

*Not Yet Adopted*

In December 2023, the FASB issued Accounting Standards Update 2023-09 - Income Taxes (Topic ASC 740) Income Taxes. The ASU improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments in ASU 2023-09 will become effective with our December 31, 2026, consolidated financial statements. Early adoption is permitted for annual consolidated financial statements that have not yet been issued or made available for issuance.

In March 2024, the FASB issued ASU 2024-02, Codification Improvements-Amendments to Remove References to the Concepts Statements", which removes various references to concepts statements from the FASB Accounting Standards Codification. This ASU is effective for us beginning in the first quarter of our fiscal year 2026, with early adoption permitted. We expect the new guidance will have an immaterial impact on our consolidated financial statements and intend to adopt the guidance when it becomes effective in the first quarter of fiscal year 2026.

In March 2024, the FASB issued ASU 2024-01, Compensation-Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards. This update clarifies the scope of "Profit Interest" and similar awards and adds an illustrative example to the existing ASC 718 standard that includes four fact patterns to demonstrate how an entity should apply the scope guidance in paragraph 718-10-15-3 to determine whether a profits interest award should be accounted for in accordance with Topic 718. The amendments in this ASU are effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. Early adoption is permitted for interim and annual financial statements not yet issued or made available for issuance. The amendments in this ASU should be applied either (1) retrospectively to all prior periods presented in the financial statements or prospectively to profits interest and similar awards granted or (2) modified on or after the date at which the entity first applies the amendments. We are currently evaluating the impact that the adoption of this standard will have on our consolidated financial statements and disclosures.

In November 2024, the Financial Account Standards Board (FASB), issued Accounting Standards Update (ASU) 2024-04, Debt-Debt with Conversions and Other Option. ASU 2024-04 is intended to clarify requirements for determining whether certain settlements of convertible debt instruments, including convertible debt instruments with cash conversion features or convertible debt instruments that are not currently convertible, should be accounted for as an induced conversion. This ASU is effective for all entities for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. We are currently evaluating the potential impact of this guidance on our disclosures.

In November 2024, the FASB issued Accounting Standards Update No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03"), and in January 2025, the FASB issued Accounting Standards Update No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date ("ASU 2025-01"). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for us for our annual reporting for fiscal 2028 and for interim period reporting beginning in fiscal 2029 on a prospective basis. Both early adoption and retrospective application are permitted. We are currently evaluating the impact that the adoption of these standards will have on our consolidated financial statements and disclosures.

**Emerging Growth Company**

We are an emerging growth company, as defined in the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that (i) we are no longer an emerging growth company or (ii) we affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, these consolidated financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. We may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for private companies.

**Quantitative and Qualitative Disclosures About Market Risk**

We are a smaller reporting company as defined in Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this item.

**Internal Control Over Financial Reporting**

We have been a private company with limited accounting personnel to adequately execute our accounting processes and limited supervisory resources with which to address our internal control over financial reporting. In connection with the audits of our consolidated financial statements as of and for the years ended December 31, 2024 and 2023, we identified material weaknesses (defined as a deficiency or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated financial statements will not be prevented or detected on a timely basis) in our internal control over financial reporting that we are currently working to remediate, which relate to: (a) an ineffective control environment, including an insufficient number of personnel with an appropriate level of knowledge and experience to create the proper environment for effective internal control over financial reporting, as well as the other components of the COSO framework, including appropriate risk assessment, control activities, information and communication, and monitoring activities; (b) ineffective controls for information systems supporting our key financial reporting processes and (c) ineffective process-level controls. We have concluded that these material weaknesses in our internal control over financial reporting occurred because we did not have the necessary business processes, personnel and related internal controls to operate in a manner to satisfy the accounting and financial reporting timeline requirements of a public company. Please see the section titled "*Risk Factors -We have identified material weaknesses in our internal control over financial reporting, and the failure to achieve and maintain effective internal controls over financial reporting could harm our business and negatively impact the value of our common stock.*" for additional information.

We are focused on designing and implementing effective internal control measures to improve our evaluation of disclosure controls and procedures, including internal control over financial reporting, and remediating the material weaknesses. In order to remediate these material weaknesses, we have taken and plan to take the following actions:

● The hiring and planned continued hiring of additional accounting staff with public company experience. In July 2024 Lindsay C. Jones, CPA, was hired as our Chief Financial Officer. Please refer to Mr. Jones' professional biography contained in the management section in this prospectus. In January 2025, we hired a corporate controller with an extensive public company background responsible for all financial reporting.

● Implementation of additional review controls and processes requiring timely account reconciliation and analyses of certain transactions and accounts, and

● The planned hiring of a third-party business consulting firm to assist in the design and implementation of controls and remediation of control gaps.

As discussed above, we have taken certain steps, such as recruiting additional personnel and reviewing the current enterprise resource planning system, in addition to utilizing third-party consultants and specialists, to supplement our internal resources, to enhance our internal control environment and we plan to take additional steps to remediate the material weaknesses. Although we plan to complete this remediation process as quickly as possible, we cannot, at this time, estimate how long it will take. We provide no assurance that the measures we have taken to date and may take in the future will be sufficient to remediate the control deficiencies that led to these material weaknesses in internal controls.

In accordance with the provisions of the JOBS Act and the Sarbanes-Oxley Act, we and our independent registered public accounting firm were not required to, and did not, perform an evaluation of our internal control over financial reporting as of December 31, 2024, and 2023 nor any subsequent period. However, as described above, we have identified material weaknesses in our internal control over financial reporting.

**BUSINESS**

**Our Mission**

Our mission is to become a global innovator and technology leader in autonomous mobility and EV drive in turfgrass management, including turfgrass mowing and agricultural automation, by leveraging and developing cutting-edge technologies that solve significant financial, environmental and labor challenges and become the premier technology supplier to the turfgrass management industry worldwide. We believe we have assembled a highly qualified team with extensive experience in the AgTech arena, as well as complementary fields, to support our business strategy, and we will continue strengthening our culture of innovation, quality, and excellent customer service.

**Our Business**

We are a growth-oriented technology company with internally developed proprietary software and our patented mechatronic systems. We have integrated our technology into the design, development, and manufacturing of our PATH machines and our most current AEV robotic mowers, the AMP, including our AMP-L100 and AMP-X100 models.

We currently sell our products directly to customers in the turf harvesting and golf course maintenance industries. Our products are complemented by a suite of services that are designed to address the entire product lifecycle and deepen our relationships with customers. We built a vertically integrated platform comprised of our proprietary technology, cloud software systems, product development, products, and services, which we expect will allow us to iterate disruptive products and shorten the time to bring new products to market. Much of our research and development into automating the PATH machines, specifically our servo electric motion control technology, was transferable to our AEV robotic mowers. Interconnected by our data and analytics, our platform is designed to deliver fast-paced innovation cycles, structural cost advantages, and exceptional customer experiences, all of which combine to create a self-reinforcing growth dynamic while serving our mission to be a technology leader in large area AEV mowing technology and in automated turf harvesting. Our automation software is developed internally and does not rely on third-party artificial intelligence or automation platforms. We occasionally use generative artificial intelligence platforms to assist in development activities, primarily to review and troubleshoot code used in our internally developed automation software.

Our product offering originated with our PATH machines in 2012 in the demanding turf farm segment, where turfgrass must typically be harvested and shipped within a very short period of time. As of June 30, 2025, we have an estimated combined total of over 770 PATH machines, AMPs and M220 machines in service throughout the world, resulting in a CAGR of approximately 31.5% from 76 machines sold in 2016. We calculate CAGR by taking the cumulative units sold as of June 30, 2025, dividing it by the cumulative units sold as of December 31, 2016, raising the result to the power of one divided by the number of years in the measurement period (8.50), and then subtracting one. Our machines have been purchased by customers from the United States, Australia, the United Kingdom, Brazil, Canada, South Africa, and Mexico. We estimate that our worldwide fleet of PATH machines is capable of cutting over 10,000 pallets of turf each day across the world, combining performance, utility and efficiency. The following chart provides a summary of the cumulative number of our machines in the field from 2016 to June 30, 2025.

![](forms-1_010.jpg)

With the success of our PATH machines, we listened to our customers' demands for our technology in mowing applications and determined to design our next product to serve the estimated 38,000 golf courses in the world (Source: National Golf Foundation, "Golf Around the World," September 2021). We developed our first autonomous mower prototype in 2018, the M220, that married hybrid diesel-electric automation with full autonomy through a third-party system. In 2020, we brought the full autonomy software stack in-house. In late 2023, we introduced our first AEV robotic mower, the AMP-L100, a reel mower for shorter heights-of-cut, which we began marketing and selling in 2024. This industrial, self-driving, large-area AEV robotic mower is our first solution specifically designed for the unique requirements of the golf course, sports field, municipal, real estate, and turfgrass mowing markets. In January 2025, we introduced our second AEV robotic mower, the AMP-X100, a rotary mower for longer heights-of-cut, which we began selling in June 2025. We believe that our AMPs provide a unique mowing approach that is both environmentally sound and business friendly. As such, we believe that our AMPs are designed to specifically target the demanding needs of these additional target mowing markets. Since the introduction of the AMP, we have delivered 49 AMPs as of June 30, 2025. The following chart provides a summary of AMP deliveries by quarter for 2024 and 2025:

![](forms-1_011.jpg)

We estimate the TAM for our AMPs and PATH machines using publicly available information regarding the number of relevant sites, including golf courses, airports, municipal parks, public schools, and sod farms, where we believe our AMPs and PATH machines could be utilized. We also use internally developed assumptions relating to the number of machines that we expect would be used at such sites, based on our experience with existing customers and data available from our AMPs and PATH machines operating in the field, along with our anticipated average selling price of our machines over the near future. We then calculate the TAM as the aggregate amount if all the machines in the identified markets were replaced with our AMPs or PATH machines, as applicable, by taking the aggregate number of machines available in each applicable market and multiplying it by the average selling price of our machines. The following table provides a summary of our calculation of our TAMs, based on the inputs described.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Estimated Average No. of Machines <sup>(i)</sup>** | **Estimated Average No. of Machines <sup>(i)</sup>** | **Estimated Total <br> Addressable Market<br> ($ in thousands) <sup>(i)</sup>** | **Estimated Total <br> Addressable Market<br> ($ in thousands) <sup>(i)</sup>** | **Estimated Total <br> Addressable Market<br> ($ in thousands) <sup>(i)</sup>** |
| <br>**Industry** |<br>**Number** | **Low** | **High** | **Low** | **High** | **Average** |
| **AMP Total Addressable Market** | **AMP Total Addressable Market** |  |  |  |  |  |
| Golf Courses <sup>(a)</sup> | 38000 | 76000 | 114000 | $12160000 | $19950000 | $16055000 |
| Airfields <sup>(b)</sup> | 36000 | 54000 | 108000 | $8640000 | $18900000 | $13770000 |
| City Parks <sup>(c)</sup> | 22000 | 5500 | 11000 | $880000 | $1925000 | $1402500 |
| U.S Schools <sup>(d)</sup> | 130000 | 32500 | 65000 | $5200000 | $11375000 | $8287500 |
| *Sod Farms:* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United States <sup>(e)</sup> | 1465 | 2930 | 5860 | $468800 | $1025500 | $747150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canada <sup>(f)</sup> | 234 | 468 | 936 | $74880 | $163800 | $119340 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Australia <sup>(g)</sup> | 215 | 430 | 860 | $68800 | $150500 | $109650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Europe <sup>(h)</sup> | 700 | 700 | 2100 | $112000 | $367500 | $239750 |
|  |  |  |  | $27604480 | $53857300 | $40730890 |
| **PATH Machines Total Addressable Market** | **PATH Machines Total Addressable Market** |  |  |  |  |  |
| *Sod Farms:* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United States <sup>(e)</sup> | 1465 | 2930 | 5860 | $1054800 | $2109600 | $1582200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canada <sup>(f)</sup> | 234 | 468 | 936 | $168480 | $336960 | $252720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Australia <sup>(g)</sup> | 215 | 430 | 860 | $154800 | $309600 | $232200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Europe <sup>(h)</sup> | 700 | 1400 | 2800 | $504000 | $1008000 | $756000 |
|  |  |  |  | $1882080 | $3764160 | $2823120 |
|  | **Total Addressable Market** | **Total Addressable Market** | **Total Addressable Market** | $29486560 | $57621460 | $43554010 |

---

---

| |
|:---|
| **Source:** |
| <sup>(a)</sup>: golflux.com/countries-have-the-most-golf-courses-in-the-world |
| <sup>(b):</sup> worldpopulationreview.com/country-rankings/airports-by-country |
| <sup>(c):</sup> tpl.org/meddia-room/annual-city-parks-data-released-trust-public-land |
| <sup>(d):</sup> prosperityforamerica.org/how-many-schools-in-the-us/ |
| <sup>(e)</sup>: turfgrasssod.org/2017-usda-ag-census-for-sod-production |
| <sup>(f):</sup> statcan.gc.ca/o1/en/plus/4464-grass-was-little-greener-sod-industry-2022 |
| <sup>(g):</sup> turfaustralia.com.au/sponsorship |
| <sup>(h):</sup> turfgrassproducers.eu |
| <sup>(i):</sup> FireFly management's estimate based on data from AMPs and PATH machines currently operating in the field, as well as customer experience. |

---

Based on these inputs, we believe that these target mowing markets represent a TAM of approximately $40.7 billion for our AMPs and the turf-harvesting market represents a TAM of approximately $2.8 billion, which together represents a TAM of approximately $43.6 billion, over 15 times larger than our estimate of the turf-harvesting opportunity alone from our PATH machines.

We believe that our PATH machines and AMPs provide significant cost savings to our customers. We estimate that fully diesel-powered turf harvesters sold by our main competitors use an average of 4.3 gallons of diesel fuel per hour of operation, compared to an average of 2.0 gallons per hour for our PATH machines, which include both diesel and electric components. Based on the weekly diesel (on-highway) price published by the EIA as of June 30, 2025, and an average of 2,000 hours of use per year, we believe the efficiency provided by our PATH machines could lower a typical PATH customer's fuel costs by approximately $15,000 per year. Our AMP machines require no fuel to operate, entirely eliminating fuel expenses in connection with fairway mowing. Additionally, we believe that our machines can help reduce the cost of labor significantly. The turf grass harvesters sold by our primary competitors generally require two to three individuals to operate—a driver, and one or two stackers. In some cases, including harvesting more delicate varieties of turf grass, additional labor may be required. In contrast, our PATH machines automate the stacking process, allowing harvesting and stacking to be completed by a single individual. Our AMPs, once trained on a fairway, require no human operator. We believe that these labor-saving efficiencies help our customers save labor costs by enabling them to allocate labor to more productive activities. We expect to accelerate deliveries to customers as we increase our production rate.

Our products are designed to accelerate the large-scale adoption of sustainable solutions. To accompany our machines, we have developed a comprehensive portfolio of aftermarket parts. Complementing our machines, our software platform includes proactive service (maintenance and repair) and software services. We expect these services to generate long-term brand loyalty while also creating a recurring revenue stream for each product across its lifecycle.

Our direct-to-customer model allows us to manage all sales, deliveries and service operations in-house without relying on third-party distributors. We employ an integrated, digital-first strategy that is not only convenient and transparent for our customers, but also efficient and scalable to support our continued growth. We believe this strategy will allow us to deliver uncompromised experiences to our customers well beyond what is available through the distributor model.

Our vertically integrated platform enables us to provide our diverse offering of highly differentiated products and services as well as our technology-first, direct-to-customer experience. Our ecosystem consists of the following components:

● **Technology**. A secure, reliable, scalable combination of hardware and software, connecting our proprietary in-machine systems, including electronics, battery, electric drive, chassis and experience management.

● **Software**. Our architecture of interconnected software applications designed to deliver seamless, end-to-end experiences using our FireLink web application. Our software platform enables remote diagnostics, software updates, and remote controls, including machine access.

● **Product Development and Operations**. Our vertically integrated product development and operations functions include design, development, manufacturing, sales, delivery and service. These distributed functions serve the unique needs of our agricultural and golf course customers. As of June 25, 2025, we had 13 service technicians serving customers across the U.S. and 3 service technicians dedicated to serving our international customers.

● **Products and Accessories**. Our portfolio is comprised of machines that we believe reimagine the turfgrass harvesting and mowing segments. We expect our products and services will provide us access to new markets and bring new customers into our platform.

● **Services**. We offer highly tailored and differentiated services that enable near seamless and intuitive experiences throughout the entire product lifecycle. We expect this holistic approach to promote customer satisfaction, create strong brand loyalty, and increase operational efficiency while simultaneously allowing us to capture a greater share of the full lifecycle value.

● **Data and Analytics**. Our platform is interconnected by our proprietary data and analytics tools. It is comprised of centralized data and analytics tools, providing valuable insights that can be applied to continuously improve platform-wide performance, functionality and uptime to drive increased customer satisfaction.

We plan to utilize this ecosystem to continuously improve our products by adding new capabilities and functionality. Enhanced products will attract more customers, deepen existing customer relationships, and expand our data repository and insights, which we expect will further benefit our customers and our business.

Beyond the benefits of our ecosystem, we believe that our entrepreneurial culture is a competitive advantage. Our strength comes from a diversity of backgrounds, perspectives, talents and approaches, and we work hard to cultivate a culture of collaboration. Our entrepreneurial spirit drives dialogue and exploration in the development process that we believe has produced world-class products and services. This drives innovation and propels continued growth to help us achieve our mission.

**Our Products**

Our products are organized into two families: AMPs and PATH machines.

*Autonomous Mowing Platform*

We currently offer two models of our AMP: (1) AMP-L100 and (2) AMP-X100. The key difference between the two models is that the AMP-L100 is a reel mower, for shorter heights-of-cut, while the AMP-X100 is a rotary mower, for longer heights-of-cut.

---

| | |
|:---|:---|
| ![](forms-1_012.jpg) | ![](forms-1_013.jpg) |
| AMP-L100 AEV Robotic Reel Mower | AMP-X100 AEV Robotic Rotary Mower |

---

Our AMPs are autonomous machines for professional mowing, equipped with a controller with proprietary algorithms, LiDAR for object detection, and a suite of cameras and sensors. Upon setup at the customer's location, the AMP simply requires a onetime learning pass around the outer boundary of the area to be repetitively mowed, which we believe is ideal for fairway mowing. Once the machine has learned the boundary, it can generate different mow patterns using our FireLink web application. The customer can then select a starting place on the fairway, select a mow pattern, press play and let the AMP do the rest. The machine will find its way to the start point and start mowing. Customers can then monitor progress of the machine remotely on our web application, FireLink.

![](forms-1_014.jpg)

The AMPs are connected to our specialized and internally developed web application - FireLink - via cellular networks or Starlink, for autonomy control, and to RTK-corrected GPS for precise positioning. Our patented drive and steering systems provide superior traction while protecting the turf, a critical attribute for self-driving machines and one demanded by our customers.

Both the AMP- L100 and AMP-X100 models cut a 100-inch-wide swath with five cutting decks and we believe they can mow approximately 15-20 acres per charge. The AMP-L100 uses reel cutting technology, which is well regarded for its high quality at low heights-of-cut and is widely used for mowing fairways on golf courses. The AMP-X100 has rotary cutting units, which are more commonly used for taller heights-of-cut, often in sports fields, commercial landscaping, turfgrass farms, and mowing in the "rough" on golf courses. Our nearest competitor's autonomous mowers generally only provide cutting widths of 60 inches and under.

The AMP-L100 is an autonomous and all-electric reel mower for fairways, giving customers nearly silent operation, which enables extended mowing hours, and a high-quality precision cut. We market our AMPs primarily through on-site demonstrations, through digital marketing and social media channels, and in industry publications. In 2024, we hosted an average of 15 demonstrations per month and have been hosting an average of 28 demonstrations per month in 2025, as of October 20, 2025.

*PATH Machines*

Our PATH machines are purpose-built machines used by turf growers across the world. The PATH machines are designed from the ground-up to be completely computer-controlled or "drive-by-wire." These software-defined machines can evolve with customer needs over time through software updates. These harvesters also provide IoT connectivity to deliver data and insights into machine health and performance to both the customer and us.

We engineered advanced electrification and control systems to significantly increase machine productivity, yield, and operational efficiency, which we believe outperforms any other technology currently available in the turfgrass market. In a side-by-side demonstration in Ontario, Canada at the September 2024 Nursery Sod Growers Association, we observed that the productivity of the FireFly PATH was 33% higher than competing machines, with significantly higher yield. In another extended comparative demonstration in the U.K. in July 2024, we observed that our PATH machine used 49% less fuel than the competitor, producing 5,182 square feet of grass per gallon of fuel, compared to 2,660 square feet per gallon by the competing harvester.

Our PATH machines are diesel-electric hybrid, self-propelled machines that cut and pull the turf from the ground and cut it into symmetrical slabs. The slabs are transported up a conveyor, rolled if necessary, and automatically stacked onto a pallet. Prior to automation, turf harvesting was accomplished by manual labor and manually operated mowers. The automated machines have reduced labor, and, according to our customers, turned work done by anywhere from two to ten people into a one-person job.

Because our PATH machines use efficient servo electric systems, significantly lower power is required to harvest the turf. Our hybrid diesel-electric PATH machines use a 74-horsepower turbo-charged 4-cylinder Tier 4 diesel engine. Due to our efficient design, we believe the horsepower requirements are around half of our closest competitors' machines, which generally use 130 to 140-horsepower engines.

We currently offer two categories of PATH machines:

● **ProSlab Harvester** – The ProSlab harvester cuts and layers flat slabs of turf onto a pallet. The pallet is then ejected from the machine onto the ground without slowing or stopping, ready for pickup by the turf grower. This model is conducive to cutting warm season turf varieties such as Bermudagrass, St. Augustinegrass, and Centipedegrass, among others. We provide the option of upgrading the ProSlab machine's electrical system, which increases speed and efficiency. We shipped our first ProSlab Harvester in 2012.

● **R300 Roll Machine** – The R300 roll machine cuts, rolls and stacks the mini-turf rolls onto a pallet. Like the ProSlab harvester, the pallet is discharged out the back of the machine and is ready for easy pickup by the turf harvester. The R300 is best suited for cool seasonal grasses like Kentucky Bluegrass, Tall Fescue, and Fine Fescue among others. We shipped our first R300 Roll Machine in 2019.

For the years ended December 31, 2024 and 2023, ProSlab Harvester sales represented 36.5% and 35.6% of our revenues, respectively. For the six months ended June 30, 2025 and 2024, ProSlab Harvester sales represented 35.0% and 39.6% of our revenues, respectively. For the years ended December 31, 2024 and 2023, R300 Roll Machine sales represented 23.1% and 34.5% of our revenues, respectively. For the six months ended June 30, 2025 and 2024, R300 Roll Machine sales represented 18.8% and 23.3% of our revenues, respectively.

We also sell replacement parts and consumables of systems both in our PATH and AMP product lines. For the years ended December 31, 2024 and 2023, parts and consumable sales represented 19.7% and 16.7% of our revenues, respectively. For the six months ended June 30, 2025 and 2024, parts and consumable sales represented 21.3% and 19.6% of our revenues, respectively. Our service department, consisting of corporate and regional technicians, provides training and support in person, by phone and through remote communication on our web applications.

We sell subscription services to customers that give them access to performance metrics. Our Mercury data platform allows the transmission of productivity data from machines to customers, helping them to know how their PATH machines and AMPs are performing. Key data points include OEE data, square feet per hour, weight of the pallets, cumulative pallet counts, harvesting session numbers and more. We plan to sell access to performance metrics as a monthly subscription that we expect will evolve with our ongoing data and analytics learning platforms. This platform represents the foundation for collecting and sharing valuable data with customers, which we believe will create significant economic value. We believe that these metrics provide economic value to customers while also benefiting the environment. For example, these metrics enable precise targeting of fertilizer and water, optimizing growth while minimizing waste. We expect future subscription packages will offer tiered pricing based on the range of services provided.

**Our Competitive Strengths**

We designed all aspects of our platform, business model, products, and organization to enable a scalable, customer-centric, and efficient approach resulting in key competitive advantages.

● ***First-Mover and Deep Domain Expertise***. Our talent and knowhow provide deep domain expertise, resulting in a rare and unique set of skills that created our AMPs. Our management team has decades of grass growing and harvesting experience, as well as deep engineering expertise across mechanical, software, electric, autonomy and motion control. This expertise allowed us to understand earlier than our competitors the need for and advantages of electrification, resulting in our PATH machines and AMPs, which introduces a much larger addressable market segment of golf courses and precision mowing. Our intellectual property portfolio and years of deep expertise in automation provide us with a significant first-mover advantage.

● ***FireFly Ecosystem***. We design, develop, manufacture and sell in-house in our 108,500 square foot facility located in Salt Lake City, Utah. We control most of our manufacturing (end-to-end) in-house. We employ a Kanban inventory control system to manage over 17,500 individual components on a daily basis. We strive to provide an ecosystem of solutions to our end users, consisting of hardware, software, parts supply, onsite and helpdesk service, ongoing schools and training, and video-based training and updates. We also provide certain data back to the end-users in the form of a KPI database that allows operators to track and monitor performance.

● ***Entrepreneurial Culture.*** We believe that our entrepreneurial culture is one of our most durable competitive advantages. Everything from the way we recruit to our transparent way of communicating, is in service of making our business the company passionate professionals join to learn, grow, and do meaningful work.

● ***Direct Customer Relationships***. Our ongoing commitment to listening to the problems of our customers and incorporating their feedback into our platform is an important competitive advantage that we expect will allow us to iterate disruptive products. Our direct relationships with customers allow us to gather insights, design solutions that best serve their needs, drive strong engagement, remove structural inefficiencies, create transparency, and increase customer satisfaction and referrals. By controlling every customer touchpoint from awareness through ownership, we replace a patchwork of third parties with our end-to-end, integrated solutions.

● ***Suite of Services***. Our portfolio of complementary services is designed to deliver an intuitive and near seamless customer experience across the full lifecycle of our machines. Our suite of services provides an opportunity to generate predictable, high-margin recurring revenues and increase the lifetime revenue potential of each vehicle.

● ***Experienced Board of Directors***. We have been able to recruit independent directors who believe in our mission and have a world-class depth and breadth of executive, operational and financial experience with public companies, and experience across a breadth of industries.

**Historical Revenue Growth**

Since 2016, our company has experienced significant revenue growth, reflecting increased demand for our products and expansion into new markets. Our revenues increased from $11.3 million in 2016 to $42.5 million in 2024, representing a CAGR of 18.0%. We believe our historical performance demonstrates our ability to capitalize on market opportunities and deliver consistent financial results. The following chart provides a summary of our revenues from 2016 to June 30, 2025.

![](forms-1_015.jpg)

**Long-Term Growth Strategy**

We make decisions and investments with long-term objectives in mind. We believe maintaining a long-term growth direction is key to maximizing our impact and generating value for our stockholders. We plan to achieve this by constructing a diverse portfolio of offerings with global appeal and strategically investing in our technology and infrastructure. Key levers of our growth strategy include:

● ***Increase Share in Turf Farm Market***. We plan to continue to build innovative products for the turf farmer. While the primary market of our PATH machines is the U.S., we plan to continue to penetrate the markets of Australia, Canada, Europe, Brazil, and the United Kingdom by increasing marketing and sales activities and adding new support staff in those regions. We plan to continue to execute on new designs and improvements of harvesters that increase value to the customer with reduced operating costs, improved reliability, and increased capabilities.

● ***Increase Share in Golf and Sports Turf Markets***. We plan to continue to add to our sales and marketing team in golf and sports turf. There continues to be high interest in the capabilities of our AMPs in the marketplace. The installed base of over 49 units have demonstrated this ability and builds confidence in our AMPs.

● ***Grow Our Used and Trade-In Business.*** We plan to continue accepting trade-in machines and to resell these as part of our revenue growth strategy.

● ***Develop and Launch Next-Generation AEVs***. We intend to continue to innovate and launch AEVs within the turfgrass management space. These products will serve a variety of needs, price points and geographies.

● ***Further our International Footprint***. We intend to further our global footprint. We will continue to build our sales, marketing and service teams in the U.S., Australia, Canada, Brazil, Europe and the United Kingdom, as well as developing distribution partnerships for other international markets.

● ***Extend Depth and Breadth of Our Digital Services***. We plan to launch additional subscription services, enable the purchase of more features through software updates and explore financing options for customers through third-party and internal financing.

● ***Invest in Our Platform***. We plan to continue investing in our product development and operations infrastructure to enable our growth, product innovation, and customer experience.

● ***Unlock New Business Models***. Our capabilities as a direct-to-customer, integrated technology and manufacturing company position us to drive the adoption of future business models.

**Our Market Opportunity**

We believe our vertically integrated platform enables us to offer holistic solutions compared to traditional product offerings and deliver more value to our customers, allowing us to capture revenues across the full product lifecycle. We define our market opportunity in terms of our TAM, which we believe we can address over the long-term. We calculate our TAM based upon the market for new sales across products in addition to the lifetime revenue potential of services, aftermarket parts, software, and resale and trade-in of used machines.

The primary target market for the AMP is the replacement market for fairway mowers on golf courses. With more than an estimated 38,000 golf courses globally (Source: National Golf Foundation, "Golf Around the World," September 2021) and an average of three fairway mowers per course and an expected average selling price of $160,000 to $175,000 per AMP, we believe the TAM for fairway mowers is approximately $16.1 billion. For additional information regarding our calculation of our relevant TAMs, including underlying data and assumptions used, see the discussion under "*Business - Our Business*."

In addition, based on our customers' experience, we generally expect the average lifespan of a fairway mower to be approximately four to seven years, depending on use and the length of seasons in different climate zones. While some customers will choose to repair or refurbish their machines, we estimate an annual replacement rate for fairway mowers of approximately 13,000 mowers.

Beyond golf courses, the turfgrass industry presents additional opportunities for AEV robotic mowers, such as our AMPs, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Precision Mowing**: Estimated to be a broader $23.5 billion TAM encompassing public schools, parks, airfields, and commercial properties. This market offers high growth potential for automated mowing solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Turf Farms**: An estimated $1.2 billion TAM, based on our internal calculations, derived from publicly available information relating to the number of turf farms in our target markets and internally developed estimates relating to the equipment needs for turf farms, providing an additional avenue for our AMPs. Given our leadership in turf harvesting and established relationships with farmers, we believe this market represents a natural extension of our services and products, including our AMPs, and a prime opportunity for growth.

Based on the strength and positioning of our brand, products, and services which address the needs of our customers, we see an opportunity to be a leader in these markets.

**Key AEV Robotic Mower Market Drivers**

We believe the following key market drivers will define our ability to capture market share with our AMPs in the golf market.

● **Electrification:** The long-term trend of electrification of the farm and sports turf markets either due to economic motives, such as cost saving and efficiency, or legislative incentives, such as laws outlawing combustion engines. The solution is electric mobility, which we believe is a perfect fit for sports turf and golf course markets.

● **Labor Shortages:** The industries we serve face ongoing challenges in recruiting and retaining skilled labor. We believe our AMPs reduce the need for labor, particularly seasonal labor.

● **The Rise of Robotics, AI and Autonomy**. Highly intelligent machines driven by leaps in computing power will be an ongoing trend to solve many challenges in the future. With our technology stack and innovation ecosystem, we believe we are well-positioned to lead in our selected markets.

● **Environmental Concerns:** Sustainability and reduced emissions are increasing priorities. Our AMPs require no fuel, oil, or hydraulic fluid and produce no emissions in operation, eliminating many potential points of environmental contamination.

● **Technology Adoption:** The industries in which we operate are embracing new technologies to improve operations.

● **Government Mandates:** Increasing pressure to adopt sustainable energy sources is driving demand for electric equipment. For example, California and Colorado have mandates banning certain gas-powered equipment. Our products provide reliable options as industry participants make this shift.

● **Community Noise Ordinances:** Our AMPs are nearly silent in operation. This makes them well-suited for early morning mowing on golf courses where there are increasing noise ordinances in place. Quiet operation allows for extended mowing hours and more optimal synchronization with irrigation, not only reducing disturbances to neighbors, but also enabling mowing to be completed before golf courses open for play.

● **"Cool" Factor:** Golf courses are seeking innovative solutions to enhance their image and attract customers. Our AMPs receive significant buzz wherever they are seen.

● **Improved Playing Surfaces:** We believe our AMPs can provide more frequent mowing which can enhance playing conditions, without increasing labor costs.

● **Surge in Outdoor Recreation**: Golf and other sport turf activities have received reinvigorated interest by younger generations. The trends are very positive for outdoor recreation. In particular, the golf industry has seen a significant uptick in demand since the COVID-19 pandemic, which boosted interest in outdoor recreation. According to a January 2025 report by the National Golf Foundation, on-course golf participation has been steadily increasing, with participation in 2024 16% higher than in 2019.

The golf market, coupled with the broader turfgrass industry, presents a substantial opportunity for our AMPs. By leveraging our existing relationships within the turf farm segment, we can accelerate market penetration and build acceptance of our AMPs in the turf market, helping us to solidify our position as a leader in the turfgrass industry. We believe that this combination of market drivers creates a compelling case for the adoption of our AMP technology.

**Manufacturing**

We have invested in the factory capabilities and personnel necessary to produce our PATH machines and AMPs, and the necessary parts to support the growing number of existing machines. Over the past 15 years, we have built a high-tech manufacturing facility, which illustrates our commitment to not only designing the best automated harvesters and AEV robotic mowers in the world, but also demonstrates our pattern of execution in building and helping our customers succeed through the entire purchase and life cycle. Our facilities have the capacity to increase production as we hire and train more personnel.

We use common manufacturing processes and techniques in producing components for our products. Considerable effort is being directed to manufacturing efficiency through improvements in process, facility optimization, including product line relocation, product design, advanced manufacturing technology, and supply management and logistics. Our flexible assembly lines, which can accommodate a mix of all our available products and deliver products in line with changes in customer demand, support our process improvements.

We source parts and components for our products from leading suppliers both domestically and internationally. These materials and components include a variety of steel products, metal castings, forgings, plastics, hydraulics, electronics, and ready-to-assemble components made to certain specifications. We also source various goods and services used for production, logistics, offices, and research and development. We develop and maintain sourcing strategies for our purchased materials and emphasize long-term supplier relationships at the core of these strategies.

We have developed strong supply chain relationships and strategic inventory reserves to allow for continued production. We currently ship an average of over 900 parts per month. We believe that we are well-positioned to support the growth of the harvester and AMP markets and increased unit deliveries. The installed base of PATH machines, AMPs and M220 machines is expanding, adding to a fleet of over 770 machines, as of June 30, 2025, that require parts.

**Product Warranty**

All of our products are covered by the FireFly Limited Warranty, though exact terms may vary from customer to customer. Subject to certain limitations and exclusions, defects in material or workmanship are generally covered by a limited warranty for up to two years or 1,500 hours, whichever is first, for our AMPs, and one year or 1,000 hours, whichever is later up to two years, for our PATH machines. We also repair or replace certain products or parts found to be defective under normal use and service with an item of equivalent value during the warranty period. Our warranty program is integrated seamlessly into our digital ecosystem for any maintenance or repairs needed.

**Competition**

The turf-harvesting and sports turf markets in which we compete are highly competitive. We sell our PATH machines to turfgrass farms and ranches, and our AMPs to golf courses. Some of our turfgrass farm customers also purchase our AMPs. We believe the primary competitive factors in our markets are technological innovation, product performance, product quality, brand differentiation, product design, sustainability, value, and manufacturing scale and efficiency.

Our competition comprises traditional harvesting and mowing products sold into turf harvesting and sports turf markets. While we believe that there are no current direct competitors in the turfgrass mowing industry for our AMPs, we anticipate competition from traditional manufacturers including The Toro Company and Deere & Company. Our competitors with traditional harvesting and lawn mowing products include AGCO Corporation, CLAAS KGaA mbH, CNH Industrial N.V., Deere & Company, Jacobsen Fine Turf Mowers, Kubota Tractor Corporation, Mahindra & Mahindra Limited, and The Toro Company. Our competitors for specialty turfgrass products include Trebro Manufacturing, Inc. and Kesmac Inc. As we participate across the spectrum of the value chain, our competition extends beyond product manufacturers, and includes parts and services, and our software platform. Many of our competitors are much larger than we are and have significantly greater resources, which challenges our ability to compete with them.

Across the value chain, we believe our vertically integrated business model and technology platform, direct-to-customer relationships, and ability to efficiently launch new products position us to compete effectively.

**Research and Development**

We make substantial investments in research and development to improve the quality and performance of our products, to develop new products and technologies to meet our customers' needs, to integrate sustainable solutions into our products, and to comply with government, safety, and engine emissions regulations. Integration of technology into equipment is a persistent market trend, and we continue to capitalize on this market trend.

**Intellectual Property**

We protect, use, and defend intellectual property in support of our business objectives to increase our return on investment, enhance our competitive position and create shareholder value. We rely on a combination of patents, trade secrets, copyrights, service marks, trademarks, domains, contractual terms, and enforcement mechanisms across various international jurisdictions to establish and protect intellectual property rights related to our current and future business and operations.

We hold 32 granted patents in the U.S. Our trademarks, logos, domains, and service marks are used to establish and maintain our reputation with our customers, and the goodwill associated with our business. We have 5 registered domestic trademarks. In addition, we maintain a comprehensive identification and tracking function for the maintenance and protection of our trade secrets.

We intend to continue to pursue intellectual property protection to the extent we believe it would be advantageous to our business objectives. Despite our efforts to protect our intellectual property rights, they may not be respected in the future or may be invalidated, circumvented, or challenged.

**Regulatory**

Certain of our operations and products are subject to stringent and comprehensive federal, state, and local laws and regulations governing matters including environmental protection, occupational health and safety and the release or discharge of materials into the environment, including air emissions and wastewater discharges. Failure to comply with these laws and regulations may result in the assessment of administrative, civil and criminal penalties, the imposition of investigatory and remedial obligations and the issuance of orders enjoining some or all of our operations in affected areas.

We are also subject to permitting, registration, and other government approval requirements under environmental, health and safety laws and regulations applicable in the jurisdictions in which we operate. Those requirements obligate us to obtain permits, registrations, and other government approvals from one or more governmental agencies to conduct our operations and sell our products. The requirements vary depending on the location where our regulated activities are conducted.

Governments are also implementing laws regulating products across their life cycles, including sourcing for parts and components and the storage, distribution, sale, use, and disposal of products at their end of life. These laws and regulations include requirements to develop less hazardous chemical substances and products, right-to-know laws, restriction of hazardous substances, and product take-back laws.

**Human Capital Resources**

Our employees are critical to our success. As of June 5, 2025, we had 201 full-time employees. We also employ 7 part-time employees and engage consultants and contractors as needed to supplement our permanent workforce. To date, we have not experienced any work stoppages and consider our relationship with our employees to be good. None of our employees are represented by a labor union or subject to a collective bargaining agreement.

**Legal Proceedings**

We are from time to time subject to claims, lawsuits and other legal and administrative proceedings arising in the ordinary course of business. Defending such proceedings is costly and can impose a significant burden on management and employees. The results of any future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. We are not presently a party to any litigation the outcome of which, we believe, if determined adversely to us, would, individually or taken together, have a material adverse effect on our business, operating results, cash flows or financial condition.

**Facilities**

Our corporate headquarters and manufacturing facility are located in Salt Lake City, Utah, where we lease approximately 108,500 square feet. In October 2018, we entered into an operating lease for our corporate headquarters and manufacturing facility, which was subsequently amended in January 2024. The lease expires in April 2031. The monthly lease payments range between approximately $91 to $116 over the term of the lease. The foregoing descriptions of the lease and amendment are summaries only and are qualified in their entirety by reference to the full text of the applicable agreements, which are filed as Exhibit 10.12 and Exhibit 10.13 to the registration statement of which this prospectus forms a part. We expect to add additional offices and manufacturing capacity as we increase our headcount and expand our operations. We believe that our facilities are sufficient for our current needs and that, should it be needed, additional facilities will be available to accommodate the expansion of our business.

**MANAGEMENT**

**Executive Officers and Directors**

The following table lists the names, ages as of the date of this prospectus, and positions of the individuals who are expected to serve as our directors and executive officers upon consummation of the offering:

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position(s)** |
| *Executive Officers*: |  |  |
| &nbsp;&nbsp;&nbsp;Andrew Limpert | 56 | Chief Executive Officer and Director |
| &nbsp;&nbsp;&nbsp;Steven R. Aposhian | 56 | Chief Technology Officer, Director, and Chairman of the Board of Directors |
| &nbsp;&nbsp;&nbsp;Matthew G. Aposhian | 51 | President, Chief Operating Officer and Director |
| &nbsp;&nbsp;&nbsp;Lindsay Jones | 63 | Chief Financial Officer |
| *Non-Employee Directors*: |  |  |
| &nbsp;&nbsp;&nbsp;Elizabeth Pettit Hocker | 55 | Director |
| &nbsp;&nbsp;&nbsp;Paul Richardson | 67 | Director |
| &nbsp;&nbsp;&nbsp;JuE Wong | 62 | Director |
| &nbsp;&nbsp;&nbsp;Christopher R. Christensen | 57 | Director |

---

***Executive Officers***

***Andrew Limpert*** serves as Chief Executive Officer and a director of FireFly. Mr. Limpert has served as our Chief Executive Officer and a member of our board of directors since 2015. Prior to joining FireFly, Mr. Limpert held several executive positions with ProFire Energy (Nasdaq: PFIE), including Chief Sales and Strategy Officer, Chief Financial Officer, and board member. Mr. Limpert has served as a board member of multiple firms including Chairman of the Board for Nine Mile Software and director and Chief Executive Officer of Ohr Pharmaceuticals (Nasdaq: OHRP) from 2007 to 2010. Mr. Limpert holds an M.B.A. with an emphasis in Finance from Westminster College and a B.A. in Finance with an emphasis in entrepreneurship and real estate finance from the University of Utah.

We believe that Mr. Limpert's extensive management, finance and public company experience, including his service as an executive officer and director at other companies, makes him highly qualified to serve as a director.

***Steven R. Aposhian*** serves as Chief Technology Officer of FireFly and currently serves as our Chairman. Mr. Aposhian has served as our Chairman and Chief Technology Officer since 2015 and previously served as President since co-founding FireFly in 2010. Prior to co-founding FireFly, Mr. Aposhian was responsible for hydraulic test system design at AAI Textron from 2007 to 2010. Mr. Aposhian taught and implemented LabVIEW design software for machine design at National Instruments from 2000 to 2006. Prior to his time at National Instruments, Mr. Aposhian gained extensive experience in power equipment design testing and manufacturing at Honda R&D Americas from 1996 to 2000. Mr. Aposhian holds a B.S. in Mechanical Engineering from the University of Utah.

We believe that Mr. Aposhian's extensive engineering, operational and management experience, including 29 years of mechanical engineering experience specializing in automation technology, makes him highly qualified to serve as a director.

***Matthew G. Aposhian*** serves as President, Chief Operating Officer and a director of FireFly since 2019. Mr. Aposhian has held multiple positions at FireFly prior to his current role. He co-founded FireFly in 2010, and joined us full time in 2013. Prior to joining FireFly, Mr. Aposhian was President of Aposhian Sod Farms from 2007 to 2013. From 2000 to 2006, Mr. Aposhian was President of Aposhian Earthworks. Mr. Aposhian holds a M.B.A. from Brigham Young University and a B.A. in Business Administration from the University of Utah.

We believe that Mr. Aposhian's extensive operational and management experience, including his 23 years running companies in the agriculture, technology and service industries, combined with his involvement in our founding and growth, makes him highly qualified to serve as a director.

***Lindsay Jones*** serves as Chief Financial Officer of FireFly, a position he has held since July 2024. From December 2023 to June 2024, Mr. Jones was Chief Financial Officer of TruGolf in connection with its SPAC merger with Deep Medicine Acquisition Corp. From July 2020 to August 2022, Mr. Jones served as Executive Vice President and Chief Financial Officer for Xevant Inc., and from March 2019 to July 2024, he served as consultant and Outsourced Chief Financial Officer for NOWCFO serving clients in the manufacturing, service and SaaS markets. Mr. Jones is a Certified Public Accountant and holds a Master of Accountancy and a B.A. in Accounting from Brigham Young University.

**Non-Employee Directors**

***Elizabeth Pettit Hocker*** was appointed to the FireFly board of directors in September 2023 and serves as Lead Independent Director. Ms. Hocker serves as Regional Head, Capital Markets for the New York Stock Exchange, a position she has held since December 2024. She previously served as founder and Chief Executive Officer of 10:10 Strategy, an IPO & business consulting firm, from November 2023 to December 2024. Ms. Hocker also served as Interim Chief Executive Officer at Frulu, a tech startup utilizing AI to connect used car sellers with used car buyers, from April 2024 to December 2024. From December 2018 to August 2023, Ms. Hocker was the Managing Director, New Listings & Capital Markets, Southwest US at Nasdaq. Ms. Hocker received her B.A. from St. Edward's University.

We believe Ms. Hocker's extensive management and capital markets experience, including her service as executive officer and director of companies, and experience with public offerings, sales operations and human resources make her highly qualified to serve as a director.

***Paul Richardson*** was appointed to the FireFly board of directors in January 2024. Mr. Richardson previously served as Chief Financial Officer and a member of the board of WPP Group (LSE: WPP), a British multinational communications, advertising, public relations, technology, and commerce holding company, from 1996 to 2021. Mr. Richardson initially joined WPP Group in 1992 as Treasurer. Mr. Richardson also served on the board of Ceva Group PLC (a subsidiary of Apollo), as Chairman of the Audit Committee from 2008 to 2013. Prior to joining WPP, Mr. Richardson served as Assistant Treasurer of Beecham Group from 1982 to 1985 and as Deputy Treasurer at Hanson Trust from 1986 to 1992. Mr. Richardson trained as a Chartered Accountant in London with KPMG and is a Fellow of the Association of Corporate Treasurers. Mr. Richardson received a finance degree from the University of East Anglia in 1979.

We believe Mr. Richardson's extensive financial, audit and management experience, including 25 years as chief financial officer of a public company, and service as a director at other companies, makes him highly qualified to serve as a director.

***JuE Wong*** was appointed to the FireFly board of directors in March 2024. Ms. Wong has served as Chief Executive Officer of Performance Beauty Group since October 2024. Prior to her time at Performance Beauty Group, Ms. Wong was President and CEO of Olaplex Holdings Inc. (Nasdaq: OLPX) from January 2020 to October 2023, and was Chief Executive Officer of Moroccanoil from July 2017 to September 2019. Ms. Wong graduated from The Australian National University.

We believe Ms. Wong's extensive management experience, including roles as president and chief executive officer of several public and private companies, and service as a director at other companies, makes her highly qualified to serve as a director.

***Christopher R. Christensen*** was appointed to the FireFly board of directors in November 2024. Mr. Christensen served as Executive Chairman and Chairman of the Board of The Ensign Group, Inc. (Nasdaq: ENSG), a skilled nursing and assisted living services, physical, occupational and speech therapies, and additional post-acute related services provider, from May 2019 to September 2025. He previously served as President from 1999 to 2019, and as Chief Executive Officer from April 2006 to May 2019. Before founding The Ensign Group, he held the position of acting Chief Operating Officer of Covenant Care, Inc., a prominent long-term care provider based in California. Additionally, as a co-founder of both The Pennant Group, Inc. (Nasdaq: PNTG) and Care Trust REIT, Inc. (Nasdaq: CTRE), he assumed board roles for both companies upon their public listings and remains an active member of The Pennant Group's board from 2019 to present day.

We believe that Mr. Christensen's extensive executive management experience with a public company, and service as a director at other companies, makes him highly qualified to serve as a director.

***Family Relationships***

Steven Aposhian and Matthew Aposhian are brothers. Other than this, none of our directors or executive officers has a family relationship.

***Board Composition***

Our board of directors will consist of seven directors upon the consummation of the offering. Mr. Steven Aposhian will serve as Chairman of the board of directors. Upon consummation of the offering, we expect that Liz Hocker will continue to serve as lead independent director. The primary responsibility of our board of directors will be to provide oversight, strategic guidance, counseling and direction to our management. The board of directors will meet on a regular basis and additionally as required.

In accordance with the terms of our amended and restated certificate of incorporation, each director's term will continue until the election and qualification of his or her successor, or his or her earlier death, resignation, or removal. Our amended and restated certificate of incorporation and amended and restated bylaws authorize only the members of the board of directors to appoint directors to fill vacancies on our board of directors. In addition, the number of directors constituting the board of directors may be set only by resolution adopted by a majority vote of the entire board of directors.

***Director Independence***

Our board of directors is expected to determine that each of the directors except for Steven Aposhian, Andrew Limpert and Matthew Aposhian are independent directors in accordance with the rules of Nasdaq, and SEC rules and regulations. Under the rules of Nasdaq, unless an explicit exemption exists, independent directors must comprise a majority of a listed company's board of directors. In addition, the rules of Nasdaq require that, subject to specified exceptions, each member of a listed company's audit, compensation, and nominating and governance committees be independent. Under the rules of Nasdaq, a director will only qualify as an "independent director" if, in the opinion of that company's board of directors, that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. In making these determinations, the board of directors will review and discuss information provided by the directors and by us with regard to each director's business and personal activities and relationships as they may relate to our business and our management, including the beneficial ownership of capital stock by each non-employee director and the transactions involving them described in the section titled "*Certain Relationships and Related Party Transactions*."

Audit committee members must also satisfy the independence criteria set forth in Rule 10A-3 under the Exchange Act. In order to be considered independent for purposes of Rule 10A-3, a member of an audit committee of a listed company may not, other than in his or her capacity as a member of the audit committee, the board of directors or any other board committee: accept, directly or indirectly, any consulting, advisory, or other compensatory fee from the listed company or any of its subsidiaries; or be an affiliated person of the listed company or any of its subsidiaries. We intend to satisfy the audit committee independence requirements of Rule 10A-3 as of the consummation of the offering. Additionally, compensation committee members must not have a relationship with us that is material to the director's ability to be independent from management in connection with the duties of a compensation committee member.

**Classified Board of Directors**

In accordance with our amended and restated certificate of incorporation that will go into effect prior to the closing of this offering, our board of directors will be divided into three classes with staggered, three-year terms. At each annual meeting of stockholders, the successors to directors whose terms then expire will be elected to serve from the time of election and qualification until the third annual meeting following election. Effective upon the closing of this offering, our directors will be divided among the three classes as follows:

● the Class I directors will be Andrew Limpert and Liz Hocker and their terms will expire at our first annual meeting of stockholders following this offering;

● the Class II directors will be Steven Aposhian and JuE Wong and their terms will expire at our second annual meeting of stockholders following this offering; and

● the Class III directors will be Christopher Christensen, Paul Richardson, and Matthew Aposhian and their terms will expire at the third annual meeting of stockholders following this offering.

Our amended and restated certificate of incorporation that will go into effect prior to the closing of this offering will provide that the authorized number of directors may be changed only by resolution of the board of directors. Any additional directorships resulting from an increase in the number of directors will be distributed among the three classes so that, as nearly as possible, each class will consist of one-third of the directors. The division of our board of directors into three classes with staggered three-year terms may delay or prevent a change of our management or a change in control of our company. Our directors may be removed only for cause by the affirmative vote of a majority of the holders of our outstanding voting stock entitled to vote in the election of directors. For additional information, see the section titled "*Risk Factors - Anti-takeover provisions contained in our amended and restated certificate of incorporation and amended and restated bylaws, as well as provisions of Delaware law, could impair a takeover attempt.*"

**Role of the Board of Directors in Risk Oversight Process**

Risk assessment and oversight are an integral part of our governance and management processes. Our board of directors encourages management to promote a culture that incorporates risk management into our corporate strategy and day-to-day business operations. Management discusses strategic and operational risks at regular management meetings and conducts specific strategic planning and review sessions during the year that include a focused discussion and analysis of the risks facing us. Throughout the year, senior management reviews these risks with the board of directors at regular board meetings as part of management presentations that focus on particular business functions, operations or strategies, and presents the steps taken by management to mitigate or eliminate such risks.

Our board of directors does not have a standing risk management committee, but rather administers this oversight function directly as a whole, as well as through various standing committees of our board of directors that address risks inherent in their respective areas of oversight. While our board of directors is responsible for monitoring and assessing strategic risk exposure, our audit committee is responsible for overseeing our major financial risk exposures and the steps our management has taken to monitor and control these exposures. The audit committee also approves or disapproves any related person transactions. Our nominating and governance committee monitors the effectiveness of our corporate governance guidelines. Our compensation committee assesses and monitors whether any of our compensation policies and programs has the potential to encourage excessive risk-taking.

**Committees of the Board of Directors**

We have three standing committees - an audit committee, a compensation committee, and a nominating and governance committee, each of which, pursuant to its respective charter, have the composition and responsibilities described below. Following the consummation of the offering, copies of the charters for each committee will be available on the investor relations portion of our website. Members serve on these committees until their resignation or until otherwise determined by our board of directors.

***Audit Committee***

Our audit committee consists of Paul Richardson, Liz Hocker and JuE Wong, with Paul Richardson serving as the chair. Our board of directors has determined that each of the members of the audit committee meets the independence requirements and financial literacy requirements under applicable rules and regulations of Nasdaq and SEC. In addition, our board of directors has determined that Paul Richardson is an "audit committee financial expert" within the meaning of the SEC regulations and meets the financial sophistication requirements of the Nasdaq listing rules. In making this determination, the board of directors considered Mr. Richardson's formal education and previous experience in financial roles. This designation does not, however, impose on the individual any supplemental duties, obligations or liabilities beyond those that are generally applicable to the other members of our audit committee and board of directors. Both our independent registered public accounting firm and management periodically will meet privately with our audit committee.

The principal functions of the audit committee are expected to include, among other things:

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

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

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

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

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

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

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

The composition and function of the audit committee will comply with all applicable requirements of the Sarbanes-Oxley Act and all applicable SEC rules and regulations.

***Compensation Committee***

Our compensation committee consists of Christopher Christensen, Liz Hocker, and Paul Richardson, with Mr. Christensen serving as the chair. Our board of directors has determined that each of the members of our compensation committee meets the independence requirements under applicable rules and regulations of Nasdaq and SEC. Each member of this committee is also a "non-employee director" within the meaning of Rule 16b-3 under the Exchange Act.

The principal functions of the compensation committee are expected to include, among other things:

● reviewing and approving, or recommending that the board of
directors approve, the compensation of our Chief Executive Officer and our other executive officers;

● reviewing succession plans for our Chief Executive Officer;

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

● administering our stock and equity incentive plans; and

● establishing our overall compensation philosophy.

The composition and function of the compensation committee will comply with all applicable SEC rules and regulations.

***Nominating and Governance Committee***

Our nominating and governance committee consists of JuE Wong, Christopher Christensen, and Liz Hocker, with Ms. Wong serving as chair. Our board of directors has determined that Each of the members of our nominating and governance committee meets the independence requirements under applicable rules and regulations of Nasdaq and SEC.

The principal functions of the nominating and governance committee are expected to include:

● identifying and recommending candidates for membership on the
board of directors;

● recommending directors to serve on board committees;

● reviewing and recommending to our board of directors any changes
to our corporate governance principles;

● reviewing proposed waivers of the code of conduct for directors
and executive officers;

● overseeing the process of evaluating the performance of our
board of directors; and

● advising our board of directors on corporate governance matters.

The composition and function of the nominating and governance committee will comply with all applicable SEC rules and regulations.

**Compensation Committee Interlocks and Insider Participation**

None of the members of our compensation committee is currently, or has been at any time, one of our officers or employees. None of our executive officers serve, or has served during the last completed fiscal year, as a member of the board of directors, or as a member of the compensation or similar committee, of any entity that has one or more executive officers who served on our board or compensation committee.

**Code of Ethics and Business Conduct**

In connection with this offering, our board of directors adopted a code of ethics and business conduct that applies to all of our employees, officers and directors, including our Chief Executive Officer, Chief Financial Officer, and other executive and senior officers. Upon the closing of this offering, the full text of this code of ethics and business conduct will be posted on the investor relations page of our website. The reference to our website address in this filing does not include or incorporate by reference the information on that website into this filing. We intend to disclose future amendments to certain provisions of this code of ethics and business conduct, or waivers of these provisions, on our website or in public filings to the extent required by the applicable rules.

**Limitations of Liability and Indemnification of Directors and Officers**

We are incorporated under the laws of the State of Delaware. Section 145 of the DGCL provides that a Delaware corporation may indemnify any person who was, is or is threatened to be made, party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, or investigative (other than an action by or in the right of such corporation), by reason of the fact that such person is or was an officer, director, employee, or agent of such corporation or is or was serving at the request of such corporation as an officer, director, employee, or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys' fees), judgments, fines, and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit, or proceeding, provided that such person acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the corporation's best interests and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his or her conduct was illegal. Where an officer or director is successful on the merits or otherwise in the defense of any action referred to above, the corporation must indemnify him or her against the expenses that such officer or director has actually and reasonably incurred. Our amended and restated certificate of incorporation will provide that we must indemnify our directors and officers to the fullest extent authorized by the DGCL and must also pay expenses incurred in defending any such proceeding in advance of its final disposition upon delivery of an undertaking, by or on behalf of an indemnified person, to repay all amounts so advanced if it should be determined ultimately that such person is not entitled to be indemnified under this section or otherwise.

Section 102(b)(7) of the DGCL allows a corporation to provide in its certificate of incorporation that a director or officer of the corporation will not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duties as a director or officer, except where the director or officer breached the duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly violated a law or obtained an improper personal benefit. The provision will also not eliminate or limit the liability of a director who authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law or an officer in any action by or in the right of the corporation. Our amended and restated certificate of incorporation will provide for this limitation of liability.

The limitation of liability and indemnification provisions that are included in our amended and restated certificate of incorporation, amended and restated bylaws and in indemnification agreements that we have entered into or will enter into with our directors and executive officers may discourage stockholders from bringing a lawsuit against our directors and executive officers for breach of their fiduciary duties. They may also reduce the likelihood of derivative litigation against our directors and executive officers, even though an action, if successful, might benefit us and other stockholders. Further, a stockholder's investment may be adversely affected to the extent that we pay the costs of settlement and damage awards against directors and executive officers as required by these indemnification provisions. At present, we are not aware of any pending litigation or proceeding involving any person who is or was one of our directors, officers, employees or other agents or is or was serving at our request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, for which indemnification is sought, and we are not aware of any threatened litigation that may result in claims for indemnification.

We anticipate that, following this offering, we will have insurance policies in place under which, subject to the limitations of the policies, coverage is provided to our directors and executive officers against loss arising from claims made by reason of breach of fiduciary duty or other wrongful acts as a director or executive officer, including claims relating to public securities matters, and to us with respect to payments that may be made by us to these directors and executive officers pursuant to our indemnification obligations or otherwise as a matter of law.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling our company pursuant to the foregoing provisions, we have been informed that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

**EXECUTIVE COMPENSATION**

We are an "emerging growth company" as defined under the JOBS Act, and a "smaller reporting company" under SEC rules. As such, we have elected to comply with the scaled executive compensation disclosure rules applicable to both emerging growth companies and smaller reporting companies. These rules provide certain exemptions from various reporting requirements applicable to other public companies and allow us to limit the disclosure of executive compensation to our principal executive officer and our two other most highly compensated executive officers.

**Summary Compensation Table**

The following table presents summary information regarding the total compensation for services rendered in all capacities that was earned by our principal executive officer and our two most highly compensated executive officers other than our principal executive officer (together, the "NEOs") for the fiscal year ended December 31, 2024.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary<br> ($)** | **Option Awards<br> ($)(1)** | **All Other Compensation<br> ($)(2)** | **Total<br> ($)** |
| Andrew Limpert | 2024 | 143936 | 261901 | 26462 | 432299 |
| &nbsp;&nbsp;*Chief Executive Officer* |  |  |  |  |  |
| Steven R. Aposhian | 2024 | 166000 | 70671 | 53672 | 290343 |
| &nbsp;&nbsp;*Chief Technology Officer* |  |  |  |  |  |
| Matthew G. Aposhian | 2024 | 140106 | 102200 | 32399 | 274705 |
| &nbsp;&nbsp;*Chief Operating Officer* |  |  |  |  |  |

---

(1) This column reflects the aggregate grant date fair value of stock options computed in accordance with FASB ASC Topic 718. The fair value of each stock option award is determined on the date of the grant using the Black-Scholes valuation model. For more information regarding the assumptions used in this calculation, see Note 14 to the financial statements included in this prospectus.

(2) Includes $26,462 in health insurance premiums paid by us on behalf of each of our NEOs and tuition reimbursements for Matthew Aposhian. For Steven Aposhian, also includes our total incremental cost of providing a Company-purchased car of $27,210 (including reimbursement of all gas and maintenance costs), which the executive officer may use for both business and personal travel. To the extent the car is used for business travel, providing the car serves a business purpose and does not provide a personal benefit. However, because Steven Aposhian is not required to separately record his business and personal use of the car, the total incremental cost of providing the car is reported here as a personal benefit.

**Narrative Disclosure to Summary Compensation Table**

***Salary Adjustments***

 ****

*Andrew Limpert*

In 2024, Mr. Limpert agreed to temporarily reduce his salary from $192,000 to $142,000. Effective January 1, 2025, Mr. Limpert's annual salary returned to $192,000. On August 12, 2025, the board of directors approved a further increase to the annual base salary of Mr. Limpert, the Company's Chief Executive Officer, effective November 1, 2025, to $252,500, to better align compensation with market rates for such position.

 

*Steven R. Aposhian*

 

In 2024, Mr. Aposhian agreed to temporarily reduce his salary from $192,000 to $166,000. Effective January 1, 2025, Mr. Aposhian's annual salary returned to $192,000. On August 12, 2025, the board of directors approved a further increase to the annual base salary of Mr. Aposhian, the Company's Chief Technology Officer, effective November 1, 2025, to $250,000, to better align compensation with market rates for such position.

 

*Matthew G. Aposhian*

On August 12, 2025, the board of directors approved an increase to the annual base salary of Mr. Aposhian, the Company's Chief Operating Officer, effective November 1, 2025, to $200,000 to better align compensation with market rates for such position.

 

*Lindsay Jones*

 

Mr. Jones, the Company's Chief Financial Officer, joined the Company in July 2024 at an annual base salary of $200,000. On August 12, 2025, the board of directors approved a further increase to the annual base salary of Mr. Jones, the Company's Chief Financial Officer, effective November 1, 2025, to $250,000 to better align compensation with market rates for such position.

 

***CFO Additional Compensation***

 ****

Our board of directors approved a grant of 130,000 stock options to Mr. Jones on July 20, 2025. One-third of these options will vested upon the grant date, and the remaining two-thirds will vest over the following two years with a grant date of August 12, 2025. The options have a ten-year expiration period and a strike price of $5.77 per share.

The compensation committee of our board of directors has also approved a letter agreement with Mr. Jones that provides additional compensation arrangements for Mr. Jones, subject to his execution of the letter agreement, providing that he will also be eligible for a one-time cash bonus of $50,000, payable within thirty days upon the successful completion of certain milestones. Such additional compensation arrangements also provide that, in the event that the Company is sold, merged, or undergoes a change of control within twenty-four months of the agreement, and Mr. Jones is either terminated or asked to transition out of the Chief Financial Officer role, he will be entitled to a severance payment equal to twelve months of base salary (or six months if the change occurs after the first twenty-four months). In addition, he will receive continued health insurance coverage for twenty-four months and will be retained as a consultant for a period of twenty-four months, with compensation to be negotiated in good faith but at a minimum equal to the value of the continued insurance coverage.

***Retirement Benefits***

We maintain a 401(k) plan that provides eligible U.S. employees with an opportunity to save for retirement on a tax-advantaged basis. Eligible employees are able to defer eligible compensation up to certain I.R.S. Code limits, which are updated annually. Contributions are allocated to each participant's individual account and are then invested in selected investment alternatives according to the participants' directions. Employees are immediately and fully vested in their own contributions. We may elect to make matching or other contributions into participants' individual accounts, but we have not done so in the past. The 401(k) plan is intended to be qualified under Section 401(a) of the Code, with the related trust intended to be tax exempt under Section 501(a) of the Code. As a tax-qualified retirement plan, contributions to the 401(k) plan are deductible by us when made, and contributions and earnings on those amounts are not taxable to the employees until withdrawn or distributed from the 401(k) plan.

***Long-Term Incentive Awards***

We have granted our NEOs, from time-to-time, stock options to purchase shares of our common stock, each with an exercise price equal to or greater than the fair market value of a share of our common stock on the date of grant and subject to the terms of the 2016 Stock Plan (see "Equity Plans – 2016 Stock Plan" below) and the applicable stock option agreement (the "Stock Option Agreement"). Generally, one-third (1/3rd) of the total number of shares subject to such option vests when the optionee completes 12 months of continuous service beginning with the vesting commencement date. An additional one-third (1/3rd) of the shares subject to the option vests when the optionee completes 12 months of continuous service thereafter. The final one-third (1/3rd) of the shares subject to the option vests when the optionee completes another 12 months of continuous service thereafter, such that all of the shares will be vested upon the third anniversary of the vesting commencement date. Vesting of the option may be accelerated under the Stock Option Agreement. For more information on the stock options granted to our NEOs, see "2024 Outstanding Equity Awards at Fiscal Year-End".

In connection with a Change in Control (as defined in the Stock Option Agreement), under certain conditions, the option will become exercisable in full.

**Equity Compensation**

We have previously granted, and we intend to, from time to time, grant equity awards to our NEOs which grants are generally subject to vesting based on each NEO's continued service. Each of our NEOs currently holds outstanding options to purchase shares of our common stock that were granted under our 2016 Stock Plan, as set forth in the table below entitled "2024 Outstanding Equity Awards at Fiscal Year-End."

***2024 Outstanding Equity Awards at Fiscal Year-End***

The following table presents, for each of our NEOs, information regarding outstanding stock options as of December 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Option Awards** | **Option Awards** | **Option Awards** | |
| <br>**Name** | **Number of Securities Underlying Unexercised Options Exercisable (#)(2)** | **Number of Securities Underlying Unexercised Options Unexercisable (#)(2)** | **Option Exercise**<br> **Price ($)** | <br>**Option**<br> **Expiration Date** |
| Andrew Limpert | 0 | 39692 | 5.77 | 11/15/2034 |
|  | 0 | 50000 | 5.71 | 3/1/2034 |
|  | 3882 | 7763 | 5.71 | 3/23/2033 |
|  | 199333 | 398667 | 5.71 | 2/3/2033 |
|  | 230000 | 0 | 2.15 | 6/17/2029 |
|  | 70000 | 0 | 2.79 | 3/21/2029 |
|  | 800000 | 0 | 1.60 | 3/1/2027 |
| Steven R. Aposhian | 0 | 22154 | 5.77 | 11/15/2034 |
|  | 2634 | 5267 | 5.71 | 3/23/2033 |
|  | 31000 | 62000 | 5.71 | 2/3/2033 |
|  | 250000 | 0 | 1.60 | 3/1/2027 |
| Matthew G. Aposhian | 0 | 35000 | 5.71 | 3/1/2034 |
|  | 2221 | 4442 | 5.71 | 2/23/2033 |
|  | 29333 | 58667 | 5.71 | 2/3/2033 |
|  | 25000 | 0 | 3.34 | 12/21/2030 |
|  | 70000 | 0 | 2.79 | 3/21/2029 |
|  | 150000 | 0 | 1.60 | 3/1/2027 |
|  | 70000 | 0 | 0.765 | 3/22/2026 |

---

(1) All of the outstanding equity awards were granted under our 2016 Stock Plan.

(2) Option awards vest one-third annually.

**Equity Plans**

***2016 Stock Plan***

Our 2016 Stock Plan provides for equity incentives to be granted to our employees, executive officers or directors and to key advisers and consultants. Equity incentives may be in the form of stock options with an exercise price of not less than the fair market value of the underlying shares as determined pursuant to the 2016 Stock Plan. The 2016 Stock Plan is administered by the company's board of directors. As of October 21, 2025, there are a total of 7,235,215 shares authorized for issuance and a total of 6,322,480 shares of our common stock are subject to outstanding option awards under the 2016 Plan. Following the adoption of the 2025 Stock Plan, we will not issue any further awards under the 2016 Stock Plan.

***2025 Stock Plan***

In connection with the completion of the offering contemplated by this prospectus, our Board of Directors and stockholders have adopted the 2025 Stock Plan, which reserves 2,000,000 shares of our common stock for issuance. The below provides a summary of some of the key features of the 2025 Stock Plan and is qualified in its entirety by reference to the full text of the 2025 Stock Plan, a copy of which is included as Exhibit 10.4 to the Registration Statement of which this prospectus forms a part.

 

*Administration* 

The Compensation Committee of the Board of Directors will be the "Committee" for purposes of Plan administration. The Committee shall be granted full power and authority to make such rules and regulations as it deems necessary or desirable to administer the 2025 Stock Plan and to interpret the provisions of the 2025 Stock Plan. This authority should include the Committee's ability to:

● administer and interpret the 2025 Stock Plan;

● designate both employee and non-employee participants;

● determine the types of award to be granted to each participant;

● determine the number of shares subject to awards and the exercise or purchase price of such shares under an award;

● determine the terms and conditions of any award, including any performance criteria and goals;

● prescribe or amend the terms of the agreements evidencing awards made under the 2025 Stock Plan; and

● make other determinations deemed necessary or advisable for the administration of the 2025 Stock Plan.

Any determination, decision, or action of the Committee in connection with the administration of the 2025 Stock Plan shall be final, conclusive, and binding upon all participants, all holders or beneficiaries of any award, and all employees of the Company and its affiliates. The Committee may delegate to one or more officers members of the Board of Directors, subject to such terms, conditions, and limitations as the Committee may establish in its sole discretion, the authority to grant awards; provided, however, that the Committee shall not delegate such authority (i) with regard to grants of awards to be made to officers of the Company or any affiliate who are subject to Section 16 of the Exchange Act or (ii) in such a manner as would cause the 2025 Stock Plan not to comply with the requirements of applicable exchange rules or applicable law.

*Eligibility* 

All Company employees are eligible to participate in the 2025 Stock Plan. Eligible persons also include non-employee directors, consultants, independent contractors, or advisors as determined by the Committee. In determining which eligible persons shall receive an award and the terms of any award, the Committee may take into account the nature of services rendered by the respective eligible persons, their present and potential contributions to the success of our business, or such other factors as the Committee, in its discretion, shall deem relevant.

*General Terms and Conditions of Awards* 

 

*Nonqualified Stock Options* 

The Committee may grant nonqualified stock options under the 2025 Stock Plan which do not meet the requirements of Section 422 of the Code and which will be subject to the following terms and conditions. The option exercise price per share will be determined by the Committee but will not be less than 100% of the "fair market value" of the common stock on the date of grant of such option. The term of each option shall be fixed by the Committee at the date of grant but shall not be longer than 10 years from the date of grant. The Committee shall determine the times at which an option may be exercised in whole or in part and the methods by which payment of the exercise price may be made, including in cash or check, shares, other securities, other awards, or any combination having a fair market value equal to the applicable exercise price.

 

*Incentive Stock Options* 

The Committee may grant incentive stock options under the 2025 Stock Plan which meet the requirements of Section 422 of the Code. Under the 2025 Stock Plan, the aggregate fair market value, determined at the time the option is granted, of the common stock with respect to which incentive stock options are exercisable for the first time by any participant during any calendar year (under the 2025 Stock Plan and any other incentive stock option plans) may not exceed $100,000, or any other limit as may be prescribed by the Code from time to time. The option exercise price per share will be determined by the Committee but will not be less than 100% of the "fair market value" of the common stock on the date of grant of such option. In the case of a grant of an incentive stock option to a participant who, at the time such option is granted, owns stock possessing more than 10% of the combined voting power of all classes of our stock, the option exercise price per share under such option will not be less than 110% of the "fair market value" of the common stock on the date of grant of such option and such option will expire and no longer be exercisable no later than five years from the date of grant of such option.

 

*SARs* 

The Committee may grant SARs under the 2025 Stock Plan, and has the discretion to determine the grant value, term, methods of exercise, dates of exercise, methods of settlement, and any other terms and conditions of any SARs. The grant value of all SARs granted under the 2025 Stock Plan will be determined by the Committee and will be equal to or greater than the closing market price of a share of common stock on the date of grant of the SARs, provided, however, that the Committee may designate a grant price below fair market value on the date of grant if the SARs are granted in substitution for SARs previously granted by an entity that is acquired by or merged with the Company.

 

*Restricted Stock and Restricted Stock Units* 

The Committee may grant restricted stock or restricted stock units under the 2025 Stock Plan. Restricted stock and restricted stock units will be subject to such restrictions as the Committee may impose (including, without limitations, any limitation on the right to vote a share of restricted stock or the right to receive any dividend or other right or property with respect thereto), which restrictions may lapse separately or in combination at such time or times, in such installments or otherwise as the Committee may deem appropriate. Vesting of restricted stock units may be conditioned upon the completion of specified periods of service or upon the achievement of one or more performance goals established by the Committee, or upon any combination of service-based and performance-based conditions. A restricted stock or restricted stock unit award that is conditioned in whole or in part upon the achievement of one or more financial or other company-related performance goals (including goals specific to the participant's individual performance, other than performance of service alone) is generally referred to as a performance share or performance share unit (PSU) award.

Any restricted stock granted under the 2025 Stock Plan shall be issued at the time such awards are granted and may be evidenced in such manner as the Committee may deem appropriate. In the case of restricted stock units, no common stock shall be issued at the time such awards are granted. Upon the lapse or waiver of restrictions and the restricted period relating to restricted stock units evidencing the right to receive common stock, such common stock shall be issued and delivered to the holder of the restricted stock units.

Except as otherwise determined by the Committee, if a director resigns or is removed or if the employment of an employee holding restricted stock or restricted stock units terminates during the applicable restricted period, the restricted stock and/or restricted stock units held by such director or employee will be forfeited and reacquired by the Company.

 

*Dividends and Dividend Equivalents* 

An award may provide the holder with dividend or dividend equivalent rights providing for payments (in cash or shares of our common stock) equivalent to the amount of cash dividends paid by the Company to shareholders with respect to shares underlying an award. Dividend equivalents will be subject to terms and conditions determined by the Committee. However, the Committee may not grant dividend equivalents in connection with options or SARs. Moreover, for any other award, the award may accrue (but not pay) a dividend or dividend equivalent with respect to a share underlying any other award unless and until all vesting conditions or restrictions on such share have been satisfied or lapsed.

*Minimum Vesting* 

A maximum of 5% of the aggregate number of shares available for issuance under the 2025 Stock Plan may be issued without a minimum vesting period. All other awards will have a minimum vesting period of at least one year, subject to limited exceptions in the case of awards granted in substitution for awards assumed upon a merger or acquisition, as well as awards received in lieu of other earned compensation. Furthermore, awards issued to non-employee directors will provide for minimum vesting as of the next annual shareholder meeting date. The Committee may exercise its authority to provide for accelerated vesting upon one or more events (e.g., death or disability) as it deems appropriate.

*Transferability* 

Generally, no award (other than fully vested and unrestricted shares) and no right under any such award shall be transferable by a participant other than by will or by the laws of descent and distribution, and no award (other than fully vested and unrestricted shares) or right under any such award may be pledged, alienated, attached, or otherwise encumbered. If a transfer is allowed by the Committee (other than fully vested and unrestricted shares), the transfer will be for no value and shall comply with the Form S-8 rules. The Committee may establish procedures to allow a participant to designate a beneficiary or beneficiaries, to exercise the rights of the participant and receive any property distributable with respect to an award in the event of the participant's death.

*Corporate Transactions* 

In the event of any reorganization, merger, consolidation, split-up, spin-off, combination, plan of arrangement, take-over bid or tender offer, repurchase or exchange of common stock of other securities of the Company, or any other similar corporate transaction or event involving the Company, the Committee or the Board of Directors, in its sole discretion, can provide for one or more of the following to be effective upon the consummation of the event (or immediately prior to the consummation of the event, provided the consummation of the event subsequently occurs):

● either (a) terminate any award in exchange for an amount of cash and/or other property equal to the amount that would have been attained upon the exercise of the award or the realization of the rights under the award or (b) replace the award with other rights or property of comparable value selected by the Committee or the Board of Directors;

● that the award be assumed by the successor or survivor corporation or be substituted for by similar options, rights, or awards covering the stock of the successor or survivor corporation;

● that the award be exercisable or payable or fully vested with respect to all common stock covered thereby; or

● that the award cannot vest, be exercised, or become payable after a certain date in the future.

*Amendment and Termination* 

The Board of Directors may from time to time amend, suspend, or terminate the 2025 Stock Plan, and the Committee may amend the terms of any previously granted award, provided that no amendment to the terms of any previously granted award may materially and adversely alter or impair the terms or conditions of the award previously granted to a participant under the 2025 Stock Plan without the written consent of the participant or holder thereof.

Prior approval of our shareholders shall be required for any amendment to the 2025 Stock Plan or an award that would:

● require stockholder approval under the rules or regulations of the SEC or securities exchange,

● increase the number of shares authorized under the 2025 Stock Plan,

● permit repricing of options or SARs,

● permit the award of options or SARs at a price less than 100% of the fair market value of a share on the date of grant,

● increase the maximum term permitted for options and SARs, or

● increase the number of shares or value of compensation subject to the annual limitations.

The 2025 Stock Plan shall terminate on the ten-year anniversary of stockholder approval of the 2025 Stock Plan, or any earlier date of discontinuation or termination established pursuant to the terms of the 2025 Stock Plan.

*Special Rules for Executive Officers Subject to Section 16 of the Exchange Act* 

Special rules may apply to individuals subject to Section 16 of the Exchange Act. In particular, unless a special election is made pursuant to the Internal Revenue Code, shares received through the exercise or settlement of an award may be treated as restricted as to transferability and subject to a substantial risk of forfeiture for a period of up to six months after the date of exercise. Accordingly, the amount of any ordinary income recognized and the amount of our income tax deduction will be determined as of the end of that period.

 

*Code Section 409A of the Internal Revenue Code* 

The Committee intends to administer and interpret the 2025 Stock Plan and all award agreements in a manner designed to satisfy the requirements of Code Section 409A of the Internal Revenue Code and to avoid any adverse tax results thereunder to a holder of an award.

*Forfeiture* 

All awards under the 2025 Stock Plan shall be subject to recovery according to Section 304 of the Sarbanes-Oxley Act of 2002. In addition, we reserve the right to require a Participant to forfeit or return to any payments received under the 2025 Stock Plan to the extent required by law, under any applicable stock exchange listing rule, or any "clawback" policy we may adopt or amend from time to time, including our current clawback policy.

**Executive Compensation Plans**

Following the consummation of this offering, we intend to develop an executive compensation program that is designed to align compensation with our business objectives and the creation of stockholder value, while enabling us to attract, motivate and retain individuals who contribute to the long-term success of the company. Decisions on the executive compensation program will be made by the compensation committee and our Board of Directors. The compensation committee of our Board of Directors is currently evaluating the compensation of our executive officers.

We currently do not have any employment agreements with our NEOs. The board has approved a letter agreement with our Chief Financial Officer, that has not yet been executed. Additionally, the compensation committee is currently evaluating whether to authorize us to enter into employment agreements with other senior management personnel following the closing of this offering, including our NEOs.

**Non-Employee Director Compensation**

The board of directors has not yet approved a non-employee director compensation plan.

The following table sets forth information concerning the compensation paid to our non-employee directors for the fiscal year ended December 31, 2024. All compensation that we paid to our employee directors is set forth in the table in "*Executive Compensation - Summary Compensation Table.*"

---

| | | |
|:---|:---|:---|
| **Name** | **Option Awards<br> ($)(1)(2)** | **Total<br> ($)** |
| Elizabeth Pettit Hocker | 29200 | 29200 |
| Paul Richardson |  |  |
| JuE Wong |  |  |
| Christopher R. Christensen | 159500 | 159500 |

---

(1) The amounts reported represent the grant date fair value of the stock awards granted to our non-employee directors during 2024 as computed in accordance with FASB ASC Topic 718. The fair value of each stock option award is determined on the date of the grant using the Black-Scholes valuation model. Note that the amounts reported in this column reflect the accounting cost for these stock awards and do not correspond to the actual economic value that may be received by our non-employee directors from the stock awards. For more information regarding the assumptions used in this calculation, see Note 14 to the financial statements included in this prospectus.

(2) The following table sets forth information on the aggregate number of shares underlying outstanding stock options held by our non-employee directors as of December 31, 2024:

---

| | | |
|:---|:---|:---|
| **Name** | **Number of Shares Underlying Stock Options Outstanding on December 31, 2024** | **Number of Shares Underlying Stock Options Outstanding on December 31, 2024** |
| Elizabeth Pettit Hocker |  | 60000 |
| Paul Richardson |  | 50000 |
| JuE Wong |  | 50000 |
| Christopher R. Christensen |  | 50000 |

---

**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

A "related party transaction" is any actual or proposed transaction, arrangement or relationship or series of similar transactions, arrangements or relationships, including those involving indebtedness not in the ordinary course of business, to which we or our subsidiaries were or are a party, or in which we or our subsidiaries were or are a participant, in which the amount involved exceeded or exceeds the lesser of (i) $120,000 or (ii) one percent of the average of our total assets at year-end for the last two completed fiscal years and in which any related party had or will have a direct or indirect material interest. A "related party" includes:

● any person who is, or at any time during the applicable period
was, one of our executive officers or one of our directors;

● any person who beneficially owns more than 5% of our common
stock;

● any immediate family member of any of the foregoing; or

● any entity in which any of the foregoing is a partner or principal
or in a similar position or in which such person has a 10% or greater beneficial ownership interest.

Historically, certain of our insiders and other related parties have been part of the funding groups that have provided funding to us via loans, convertible loans, preferred equity and direct equity investments into us as further described in this prospectus.

Other than the below, there were no related party transactions to which we were a party since the beginning of our last fiscal year or during the two fiscal years preceding our last fiscal year, or any currently proposed related party transaction:

Christopher Christensen Common Stock Purchases

● On December 2, 2024, we sold to Christopher Christensen 173,310 shares of our common stock for $1,000,000.

● On December 31, 2024, we sold to Christopher Christensen 20,000 shares of our common stock for $115,400.

<u>Exchange Agreement</u>

On October 21, 2025, we entered into the Exchange Agreement with ATW. Under the Exchange Agreement, ATW agreed to (i) exchange (a) the outstanding principal and capitalized interest under the July 2019 Debenture, the April 2020 Debenture, and the September 2020 Debenture (each as defined below) and (b) certain of the July 2019 Warrants, April 20, 2020 Warrants, September 2020 Warrants, January 2022 Warrants, January 2023 Warrants, July 11, 2024 Warrants, July 25, 2024 Warrants, and June 2025 Warrants (each as defined below), for an aggregate of 41,206.58 shares of our Series A Preferred Stock (based upon a public offering price in this offering equal to $5.50, which is the mid-point of the price range set forth on the cover page of this prospectus), to be authorized immediately prior to this offering, and (ii) exercise, on a cashless basis, the remainder of the July 2019 Warrants, January 2022 Warrants, and January 2023 Warrants that are not being exchanged, such that ATW will beneficially own (as such term is defined under Section 13 of the Exchange Act and the rules and regulations promulgated thereunder) 1,965,916 shares of common stock (based upon a public offering price in this offering equal to $5.50, which is the mid-point of the price range set forth on the cover page of this prospectus), representing 9.99% of our common stock outstanding after the completion of this offering. The Exchange and Warrant Exercise will take place immediately prior to the completion of this offering and after the filing of our amended and restated certificate of incorporation and the Series A Certificate of Designation (as defined below). The shares of Series A Preferred Stock issued in the Exchange will be convertible, at the election of ATW, into an aggregate of 7,492,105 shares of common stock. For a description of the rights of the Series A Preferred Stock, see the section titled "*Description of Capital Stock - Series A Preferred Stock*". Following the Exchange and the Warrant Exercise, ATW will beneficially own 41,206.58 shares of Series A Preferred Stock and 1,965,916 shares of common stock, based upon a public offering price in this offering equal to $5.50, which is the mid-point of the price range set forth on the cover page of this prospectus.

<u>Registration Rights Agreement</u>

In connection with the Exchange Agreement, we entered into the Registration Rights Agreement with ATW. Pursuant to the Registration Rights Agreement, we agreed with ATW that we will file a registration statement on Form S-1 180 calendar days following the pricing of the IPO covering the resale of: (a) the shares of common stock issued or issuable upon the conversion of certain Debentures, (b) the shares of common stock issued or issuable upon the conversion of the Series A Preferred Stock, and (c) shares of common stock held by the holders following the closing of this offering, subject to the ability to delay such filing under certain circumstances. We are also required to cause the registration statement to become effective within 45 calendar days following the required filing date, or within 75 days if the SEC notifies us that it will review the registration statement.

Further, the Registration Rights Agreement provides that, in the event a "Triggering Event" occurs prior to the 180th day following the pricing of the IPO, will prepare and file with the Commission a registration statement covering the resale of up to 33% of their Registrable Securities, and the sale of such Registrable Securities will be permitted during the Lock-up Period (as defined below). A "Triggering Event" occurs if, on any trading day following the 90th day after the pricing of this offering, the daily VWAP of our common stock equals or exceeds 200% of the initial public offering price for at least five out of ten consecutive trading days.

If there is no effective registration statement covering all Registrable Securities and we plan to register shares of common stock (other than for employee plans, mergers, or dividend reinvestment plans), we must promptly notify holders of Registrable Securities and include any of their securities in the registration if requested in writing. However, we are not required to register securities that can already be sold without restriction under Rule 144, provided we meet current public information requirements, as confirmed by legal counsel.

If the SEC limits the number of securities that may be included in the registration statement, we will prioritize the inclusion of Registrable Securities as defined in the agreement, and may file additional registration statements as necessary.

Under the Registration Rights Agreement, we will indemnify the holders of Registrable Securities and certain related persons, such as their officers, directors, employees, agents, and representatives, against any losses or damages resulting from any untrue statement or omission of a material fact in any registration statement or prospectus pursuant to which they sell Registrable Securities, unless such liability arises from their misstatement or omission. Conversely, the holders of Registrable Securities will agree to indemnify us and certain related persons, such as our officers, directors, and underwriters, against all losses caused by their misstatements or omissions in those documents.

**PRINCIPAL STOCKHOLDERS**

As of October 21, 2025 (the "Beneficial Ownership Date"), the following table sets forth information with respect to the beneficial ownership of our voting securities in each case by:

● each of our named executive officers;

● each of our directors;

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

● each person known by us to be the beneficial owner of more
than 5% of the outstanding shares of our voting securities.

We have determined beneficial ownership in accordance with the rules of the SEC, and thus it represents sole or shared voting or investment power with respect to our securities. In computing the number of shares beneficially owned by a person and the percentage ownership of that person, shares of common stock subject to options or warrants held by that person that are currently exercisable or exercisable within 60 days of the Beneficial Ownership Date are deemed outstanding but are not deemed outstanding for computing the percentage ownership of any other person. Unless otherwise indicated below, to our knowledge, the persons and entities named in the table have sole voting and sole investment power with respect to all shares that they beneficially owned, subject to community property laws where applicable. The information does not necessarily indicate beneficial ownership for any other purpose, including for purposes of Sections 13(d) and 13(g) of the Securities Act.

In the table below, the applicable percentage ownership relating to shares beneficially owned prior to this offering is based on 15,134,617 shares of our common stock outstanding as of the Beneficial Ownership Date, which gives effect to the issuance of 1,965,916 shares of common stock in the Warrant Exercise, the issuance of 32,000 shares of common stock in the Service Provider Warrant Exercise and the issuance of 41,206.58 shares of Series A Preferred Stock in the Exchange that will occur immediately prior to the completion of this offering. The applicable percentage ownership relating to shares beneficially owned after this offering is based on 19,680,071 shares of our voting securities outstanding and assumes that the underwriters do not exercise their option to purchase additional shares of common stock from us. Unless otherwise indicated in the footnotes to the table below, the address of each beneficial owner listed in the table below is 1130 South 3800 West, Suite 100, Salt Lake City, Utah 84104.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Shares Beneficially Owned Prior to This Offering** | **Shares Beneficially Owned Prior to This Offering** | **Shares Beneficially Owned After This Offering Assuming No Exercise of the Over-Allotment Option** | **Shares Beneficially Owned After This Offering Assuming No Exercise of the Over-Allotment Option** | **Shares Beneficially Owned After This Offering Assuming Full Exercise of the Over-Allotment Option** | **Shares Beneficially Owned After This Offering Assuming Full Exercise of the Over-Allotment Option** |
| <br>**Name and Address of Owner** | **Number** | **Percent** | **Number** | **Percent** | **Number** | **Percent** |
| **5% Stockholders:** |  |  |  |  |  |  |
| ATW Partners LLC<sup>(1)</sup> | 1965916 | 12.99% | 1965916 | 9.99% | 2041726 | 9.99% |
| Kenny Milne | 1123593 | 7.42% | 1123593 | 5.71% | 1123593 | 5.52% |
| Kimberly N. Petersen<sup>(2)</sup> | 1259810 | 8.32% | 1259810 | 6.40% | 1259810 | 6.19% |
| **Directors and Named Executive Officers:** |  |  |  |  |  |  |
| Andrew W. Limpert<sup>(3)</sup> | 4085350 | 24.22% | 4085350 | 19.08% | 4085350 | 18.49% |
| Steven R. Aposhian<sup>(4)</sup> | 2530485  | 16.32% | 2530485  | 12.62% | 2530485  | 12.21% |
| Matthew G. Aposhian<sup>(5)</sup> | 961709  | 6.18% | 961709  | 4.78% | 961709  | 4.62% |
| Christopher R. Christensen<sup>(6)</sup> | 209977  | 1.39% | 209977  | 1.07% | 209977  | 1.03% |
| Liz Hocker<sup>(7)</sup> | 36667  | 0.24% | 36667  | 0.19% | 36667  | 0.18% |
| Paul Richardson<sup>(8)</sup> | 38333  | 0.25% | 38333  | 0.19% | 38333  | 0.19% |
| JuE Wong<sup>(9)</sup> | 16667  | 0.11% | 16667  | 0.08% | 16667  | 0.08% |
| All current executive officers and directors as a group (8 persons) | 11006608  | 61.81% | 11006608  | 49.24% | 11006608  | 47.78% |

---

(1) Consists
 of shares of common stock held by affiliates of ATW Partners. Does not include shares of common stock underlying outstanding Debentures
 and shares of Series A Preferred Stock, which provide that the holders cannot convert such Debentures or shares of Series A Preferred
 Stock if the holder's beneficial ownership of our common stock would exceed 9.99%. The business address of ATW Partners LLC
 is ONE PENN, 1 Pennsylvania Plaza, Suite 4810, New York, NY 10119.

(2) Consists
 of (i) 659,810 shares of common stock held of record by Isod LLC ("iSod"); and (ii) 600,000 shares of common stock held
 of record by IDREAM LLC ("IDREAM"). Kimberly N. Petersen is the manager of iSod and IDREAM and holds sole voting and
 investment power over the shares held by iSod and IDREAM.

(3) Consists
 of 2,349,689 shares of common stock and 1,735,661 shares underlying options that have vested or will vest within 60 days. The shares
 of common stock and options held by this person are subject to a 180-day lock-up period.

(4) Consists
 of 2,159,500 shares of common stock and 370,985 shares underlying options that may be exercised within 60 days. The shares of common
 stock and options held by this person are subject to a 180-day lock-up period.

(5) Consists
 of 523,300 shares of common stock and 438,409 shares of common stock underlying options that may be exercised within 60 days. The
 shares of common stock and options held by this person are subject to a 180-day lock-up period.

(6) Consists
 of 193,310 shares of common stock and 16,667 shares of common stock underlying options that may be exercised within 60 days. The
 shares of common stock and options held by this person are subject to a 180-day lock-up period.

(7) Consists
 of 36,667 shares of common stock underlying options that may be exercised within 60 days. The options held by this person are subject
 to a 180-day lock-up period.

(8) Consists
 of 5,000 shares of common stock and 33,333 shares of common stock underlying options that may be exercised within 60 days. The shares
 of common stock and options held by this person are subject to a 180-day lock-up period.

(9) Consists
 of 16,667 shares of common stock underlying options that may be exercised within 60 days. The options held by this person are subject
 to a 180-day lock-up period.

**DESCRIPTION OF CAPITAL STOCK**

**General**

The following describes our common stock, preferred stock, warrants, Debentures and material terms of our amended and restated certificate of incorporation and amended and restated bylaws as proposed to be in effect upon consummation of the offering. This description is a summary only and is subject to the complete text of our amended and restated certificate of incorporation and amended and restated bylaws and the applicable Debenture and Warrant, which we have filed as exhibits to the registration statement of which this prospectus is a part**.**

Immediately prior to the completion of this offering, we will amend and restate our certificate of incorporation. Our amended and restated certificate of incorporation will authorize capital stock consisting of 150,000,000 shares of common stock, $0.001 par value per share, and 5,000,000 shares of preferred stock, par value $0.001 per share. Immediately prior to this offering, there has been no public market for our common stock. The number of authorized shares of common stock or preferred stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of our capital stock entitled to vote thereon, irrespective of the provisions of Section 242(b)(2) of the DGCL (or any successor provision thereto), and no vote of the holders of any of the common stock or the preferred stock voting separately as a class shall be required therefor, unless a vote of any such holder is required pursuant to the amended and restated certificate of incorporation (including any certificate of designation relating to any series of preferred stock).

Upon completion of this offering, there will be 19,680,071 shares of common stock outstanding (or 20,361,889 shares if the underwriters exercise their over-allotment option in full), including shares issued upon the exercise of certain Warrants in the Warrant Exercise and the Service Provider Warrant Exercise immediately prior to the completion of this offering, and 41,206.58 shares of Series A Preferred Stock outstanding, in each case based on assumed initial public offering price of $5.50 per share, which is equal to the midpoint of the price range set forth on the cover page of this prospectus. The number of shares of common stock outstanding excludes shares issuable in connection with the conversion of any of the Debentures that will not be exchanged for Series A Preferred Stock in the Exchange, and the options granted upon achievement of certain vesting conditions and shares reserved for issuance pursuant to the 2016 Stock Plan and the 2025 Stock Plan. Although we have applied for listing of our common stock on Nasdaq, a market for our common stock may not develop, and if one develops, it may not be sustained.

**Common Stock**

***Dividend Rights***

Subject to preferences that may apply to any shares of convertible preferred stock outstanding at the time, the holders of shares of our common stock are entitled to receive dividends out of funds legally available if our board of directors, in its discretion, determines to issue dividends and then only at the times and in the amounts that our board of directors may determine. No such dividends are expected to be issued in the near future. See the section titled "*Dividend Policy*" for additional information.

***Voting Rights***

Following this offering, holders of shares of our common stock will be entitled to one vote for each share of our common stock held of record by such holder on all matters voted upon by our stockholders; provided, however, that, except as otherwise required in our amended and restated certificate of incorporation or by applicable law, the holders of our common stock will not be entitled to vote on any amendment to our amended and restated certificate of incorporation that relates solely to the terms of one or more outstanding series of our preferred stock (and no preferred stock is expected to be outstanding after the offering) if the holders of such affected series are entitled, either separately or together with the holders of one or more other such series, to vote thereon pursuant to our amended and restated certificate of incorporation or pursuant to the DGCL. Following the offering, our directors, executive officers, and beneficial owners of 5% or greater of our outstanding common stock and their respective affiliates will hold approximately 49% of the outstanding shares of our common stock.

We have not provided for cumulative voting for the election of directors in our amended and restated certificate of incorporation that will become effective immediately prior to the completion of the offering. Accordingly, holders of a majority of the shares of our common stock will be able to elect all of our directors.

***No Preemptive or Similar Rights***

Our common stock is not entitled to preemptive rights and is not subject to redemption or sinking fund provisions. The rights, preferences and privileges of the holders of our common stock will be subject to and may be adversely affected by the rights of the holders of shares of any series of our preferred stock that we may designate in the future.

***Right to Receive Liquidation Distributions***

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

**Preferred Stock**

Following the adoption of our amended and restated certificate of incorporation, our board of directors will be authorized, subject to limitations prescribed by Delaware law, to issue up to 5,000,000 shares of preferred stock in one or more series, to establish from time to time the number of shares to be included in each series, and to fix the designation, powers, preferences, and rights of the shares of each series and any of its qualifications, limitations or restrictions, in each case without further vote or action by our stockholders. Our board of directors can also increase or decrease the number of shares of any series of preferred stock, but not below the number of shares of that series then outstanding, without any further vote or action by our stockholders. Our board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of our common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring, or preventing a change in our control and might adversely affect the market price of our common stock and the voting and other rights of the holders of our common stock.

In connection with the Exchange, we will issue shares of Series A Preferred Stock, as further described in the section titled "*Series A Preferred Stock*" below.

**Warrants**

As of October 21, 2025 we had outstanding warrants to purchase shares of our common stock as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Underlying**<br>**Shares of**<br>**Common**<br>**Stock** | **Exercise**<br>**Price per**<br>**Share** | **Initial Exercise Date** | **Expiration Date** |
| July 2019 Common Stock Purchase Warrants ("July 2019 Warrants") | 1900000 | $1.12 | 7/17/2019 | 7/17/2027 |
| April 20, 2020 Common Stock Purchase Warrants ("April 20, 2020 Warrants") | 281250 | $2.00 | 4/20/2020 | 4/20/2028 |
| April 22, 2020 Common Stock Purchase Warrants ("April 22, 2020 Warrants") | 40000 | $2.00 | 4/22/2020 | 4/22/2028 |
| September 2020 Common Stock Purchase Warrants ("September 2020 Warrants") | 255682 | $2.20 | 9/4/2020 | 9/4/2028 |
| January 2022 Common Stock Purchase Warrants ("January 2022 Warrants") | 531427 | $0.01 | 1/13/2022 | 1/13/2032 |
| January 2023 Common Stock Purchase Warrants ("January 2023 Warrants") | 360475 | $0.01 | 1/19/2023 | 1/19/2033 |
| July 11, 2024 Common Stock Purchase Warrants ("July 11, 2024 Warrants") | 430009 | $0.01 | 7/11/2024 | 7/11/2034 |
| July 25, 2024 Common Stock Purchase Warrants ("July 25, 2024 Warrants") | 181861 | $0.01 | 7/25/2024 | 7/25/2034 |
| June 2025 Common Stock Purchase Warrants ("June 2025 Warrants") | 181861 | $0.01 | 6/18/2025 | 6/18/2035 |

---

The material terms and provisions of the July 2019 Warrants, April 20, 2020 Warrants, April 22, 2020 Warrants, September 2020 Warrants, January 2022 Warrants, January 2023 Warrants, July 11, 2024 Warrants, July 25, 2024 Warrants, and June 2025 Warrants (collectively, the "Warrants") are summarized below. Except as indicated in the table above and the discussion below, the Warrants have substantially the same terms. This summary of the provisions of the Warrants is not complete and is qualified in its entirety by the form of each Warrant, which we have filed as exhibits to the registration statement of which this prospectus is a part. The Warrants were issued pursuant to certain securities purchase agreements. These agreements will also be filed as exhibits to the registration statement of which this prospectus is a part.

Pursuant to the Exchange Agreement, immediately prior to the completion of this offering, ATW will (i) cashless exercise certain of the July 2019 Warrants, January 2022 Warrants, and January 2023 Warrants for an aggregate of 1,965,916 shares of our common stock and (ii) exchange the remaining Warrants, other than the April 22, 2020 Warrants, for an aggregate of 9,959.38 shares of our Series A Preferred Stock, convertible into an aggregate of 1,810,796 shares of our common stock, in each case based on assumed initial public offering price of $5.50 per share, which is equal to the midpoint of the price range set forth on the cover page of this prospectus.

Pursuant to the Service Provider Warrant Exercise Agreement, immediately prior to the completion of this offering, certain service providers will cashless exercise their April 22, 2020 Warrants for an aggregate of 32,000 shares of our common stock. Following the Warrant Exercise, Service Provider Warrant Exercise and the Exchange, no Warrants will remain outstanding, other than the Representatives' Warrants (as defined below).

*Exercise*. The exercise price, initial exercise date, and expiration date of each Warrant is set forth in the table above. Each Warrant may be exercised, in cash or, if no effective registration statement is available registering the issuance of the shares of common stock underlying the Warrants, by a cashless exercise, from time to time through and including its respective expiration date, except that the April 20, 2020 Warrants, April 22, 2020 Warrants and September 2020 Warrants cannot be cashless exercised. The Warrants are exercisable in whole or in part by delivering to the company a completed notice of exercise and complying with the requirements for exercise set forth in each Warrant. If Warrants are exercised on a cashless basis, the holder would receive upon such exercise the net number of shares of common stock determined according to the formula set forth in the applicable Warrant. The July 2019 Warrants will be automatically exercised via cashless exercise on its expiration date.

*No Fractional Shares*. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of the Warrants. As to any fraction of a share which the holder would otherwise be entitled to purchase upon such exercise, we may, at our election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the exercise price or round up to the next whole share.

*Failure to Timely Deliver Shares*. If we fail to deliver to the holder a certificate representing shares issuable upon exercise of Warrants or to credit the holder's balance account with The Depository Trust Company for such number of shares of common stock to which the holder is entitled upon the holder's exercise of the Warrants, in each case, by the delivery date set forth in the respective Warrant, and if after such date the holder is required by its broker to purchase (in an open market transaction or otherwise) or the holder's brokerage firm otherwise purchases, shares of common stock to deliver in satisfaction of a sale by the holder of the warrant shares which the holder anticipated receiving upon such exercise, or a Buy-In, then we shall (A) pay in cash to the holder the amount, if any, by which (x) the holder's total purchase price (including brokerage commissions, if any) for the shares of common stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of warrant shares that we were required to deliver to the holder in connection with the exercise at issue, times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the holder, either reinstate the portion of the applicable warrant and equivalent number of warrant shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the holder the number of shares of common stock that would have been issued had we timely complied with our exercise and delivery obligations. In addition, if we fail to deliver to the holder any common stock pursuant to a validly-exercised Warrant, we will be required to pay liquidated damages in the amount of $10 per trading day (increasing to $20 per trading day on the fifth trading day after such liquidated damages being to accrue) for each $1,000 of the shares of common stock exercised but not delivered until such time the shares of common stock are delivered or the holder rescinds such exercise.

*Exercise Limitation*. In general, a holder will not have the right to exercise any portion of a Warrant as long as the holder (together with its Attribution Parties (as defined in the respective Warrant)) would beneficially own in excess of 4.99% of the number of shares of our common stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the warrant. However, any holder may increase or decrease such percentage to any other percentage not in excess of 9.99% upon notice to us, provided that any increase in this limitation will not be effective until 61 days after such notice from the holder to us and such increase or decrease will apply only to the holder providing such notice. If the holder's beneficial ownership falls below 4.99% (or such other percentage elected by the holder, up to 9.99%), the holder could then exercise the Warrants, up to the applicable beneficial ownership limitation.

*Adjustment for Stock Dividends, Splits and Reclassifications*. The exercise price and the number of shares of common stock purchasable upon the exercise of the Warrants are subject to adjustment upon the occurrence of specific events, including stock dividends, stock splits, combinations, and reclassifications of our common stock.

*Subsequent Equity Sales*. The Warrants have full-ratchet price-based anti-dilution protection, subject to customary carve-outs, in the event we sell or grant any option to purchase or sell or grant any right to reprice, or otherwise dispose of or issue, any common stock or common stock equivalents at an effective price per share below the exercise price of each Warrant. In addition, the holder of the Warrants may elect to receive upon the exercise of the Warrants, in lieu of shares of common stock, the securities issued in such dilutive issuance. The holders of the Warrants have waived this right with respect to this Offering.

*Dividends or Distributions*. If we declare or make any dividend or other distribution of our assets (or rights to acquire our assets) to holders of shares of our common stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) at any time after the issuance of the Warrants, then, in each such case, the holders of the Warrants shall be entitled to participate in such distribution to the same extent that the holders would have participated therein if the holders had held the number of shares of common stock acquirable upon complete exercise of the Warrants (without regard to any limitations on exercise, including, without limitation, the Beneficial Ownership Limitation (as defined in the respective Warrant)). However, to the extent that the holder's right to participate in any such distribution would result in the holder exceeding the Beneficial Ownership Limitation, then the holder shall not be entitled to participate in such distribution to such extent, and the portion of such distribution exceeding the limitation shall be held in abeyance for the benefit of the holder until such time as its right would not result in the holder exceeding the Beneficial Ownership Limitation. To the extent that the Warrant has not been partially or fully exercised at the time of such distribution, such portion of the distribution shall be held in abeyance for the benefit of the holder until the holder has exercised the Warrant.

*Purchase Rights*. If we grant, issue or sell any shares of our common stock or securities exercisable for, exchangeable for or convertible into our common stock, or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of our common stock, referred to as Purchase Rights, then each holder of the Warrants will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the holder could have acquired if the holder had held the number of shares of common stock acquirable upon complete exercise (without regard to any limitations on exercise, including, without limitation, the Beneficial Ownership Limitation). of the Warrants immediately before the record date, or, if no such record is taken, the date as of which the record holders of shares of common stock are to be determined, for the grant, issue or sale of such Purchase Rights. However, to the extent that the holder's right to participate in any such Purchase Rights would result in the holder exceeding the Beneficial Ownership Limitation, then the holder shall not be entitled to participate in such Purchase Rights to such extent, and such excess Purchase Rights shall be held in abeyance for the holder until such time as its right thereto would not result in the holder exceeding the Beneficial Ownership Limitation.

*Fundamental Transaction*. If a Fundamental Transaction (as defined in the respective Warrant and described below) occurs, the holder will thereafter have the right to receive upon an exercise of the Warrants at any time after the consummation of the Fundamental Transaction but prior to the expiration date of the Warrants, the number of shares of common stock of the successor or acquiring corporation or of us, if we are the surviving corporation, and any additional consideration (the "Alternate Consideration") receivable as a result of such Fundamental Transaction by a holder of the number of shares of common stock for which the Warrants are exercisable immediately prior to such Fundamental Transaction on the exercise of the Warrants. For purposes of any such exercise, the determination of the exercise price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of common stock in such Fundamental Transaction, and we shall apportion the exercise price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. Additionally, we will cause any successor entity to assume all of our obligations under the Warrants with the same effect as if such successor entity had been named in the warrant itself. If holders of our common stock are given a choice as to the securities, cash or property to be received in a Fundamental Transaction, then the holder shall be given the same choice as to the consideration it receives upon any exercise of the Warrants, following such Fundamental Transaction. The holder's right to receive Alternate Consideration shall be calculated as if the Warrant were fully exercisable, ignoring any Beneficial Ownership Limitation.

*Transferability*. Subject to applicable laws, the Warrants may be offered for sale, sold, transferred or assigned.

*Rights as a Shareholder*. Except as otherwise provided in the Warrants or by virtue of a holder's ownership of shares of our common stock, the holders of the Warrants do not have the rights or privileges of holders of our common stock, including any voting rights, unless and until they exercise their warrants.

*Amendments*. Each Warrant may be amended with the written consent of the holder of such Warrant and us.

*Listing*. There is no established public trading market for any of the Warrants, and we do not expect a market to develop. In addition, we do not intend to apply for listing of any of the Warrants on any national securities exchange.

*Definitions Relating to the Warrants*

"Fundamental Transaction" means (i) we, directly or indirectly, in one or more related transactions effect any merger or consolidation with or into another person, (ii) we, directly or indirectly, effect any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of our assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by us or another person) is completed pursuant to which holders of common stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding common stock, (iv) we, directly or indirectly, in one or more related transactions effect any reclassification, reorganization or recapitalization of our common stock or any compulsory share exchange pursuant to which our common stock is effectively converted into or exchanged for other securities, cash or property, or (v) we, directly or indirectly, in one or more related transactions consummate a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off, merger or scheme of arrangement) with another person or group of persons whereby such other person or group acquires more than 50% of the outstanding shares of our common stock (not including any shares of common stock held by the other person or other persons making or party to, or associated or affiliated with the other persons making or party to, such stock or share purchase agreement or other business combination).

**Convertible Debentures**

As of October 21, 2025, we had the following convertible debentures outstanding:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Original Principal** | **Capitalized Interest** | **Conversion Price** |  | **Base Interest Rate** | **Issuance Date** | **Maturity Date** |
| July 2019 Senior Secured Convertible Debenture ("July 2019 Debenture") | $3800000.00 | $1454369.30 | $1.1200 |  | 11% | 7/17/2019 | 1/31/2028 |
| April 2020 Senior Secured Convertible Debenture ("April 2020 Debenture") | $750000.00 | $287046.19 | $2.0000 |  | 11% | 4/20/2020 | 1/31/2028 |
| September 2020 Senior Secured Convertible Debenture ("September 2020 Debenture") | $750000.00 | $287046.19 | $2.2000 |  | 11% | 9/4/2020 | 1/31/2028 |
| January 2022 Senior Secured Convertible Debenture ("January 2022 Debenture") | $3000000.00 | $1604739.28 | $10.5800 |  | 11% | 1/13/2022 | 1/31/2028 |
| January 2023 Senior Secured Convertible Debenture ("January 2023 Debenture") | $2000000.00 | $937268.43 | $5.7705 |  | 15% | 1/19/2023 | 1/31/2028 |
| July 2024 Senior Secured Convertible Debenture ("July 2024 Debenture") | $1000000.00 | $206794.48 | $5.5674 | (1) | 15% | 7/25/2024 | 1/31/2028 |
| June 2025 Senior Secured Convertible Debenture ("June 2025 Debenture") | $1000000.00 | $53154.47 | $5.5674 | (1) | 15% | 6/18/2025 | 1/31/2028 |

---

(1) The July 2024 Debenture and June 2025 Debenture have a conversion price equal to the lower of (i) $5.5674 or (ii) 85% of the initial public offering price per share, subject to certain adjustments, including for subsequent equity sales at a lower price per share.

Immediately prior to the closing of this offering, pursuant to the Exchange Agreement, ATW will exchange the outstanding principal and capitalized interest under the July 2019 Debenture, April 2020 Debenture, and September 2020 Debenture for an aggregate of approximately 31,247.20 shares of our Series A Preferred Stock, convertible into an aggregate of approximately 5,681,309 shares of our common stock, in each based on assumed initial public offering price of $5.50 per share, which is equal to the midpoint of the price range set forth on the cover page of this prospectus. For a description of the rights of the Series A Preferred Stock, see the section titled "*Series A Preferred Stock*" below.

***Preemptive Rights***

For so long as the Debentures are outstanding, the holders of the Debentures have the right to participate in future equity financings by us, subject to certain limitations. The holders of the Debentures have the right, in any future equity financing, to purchase an amount of securities equal to the greater of (i) such amount of such financing that allows the holder to maintain the same percentage ownership of us (on a fully diluted basis) as such holder owned immediately prior to such financing and (ii) the lesser of (A) $5 million and (B) 100% of the financing on the same terms, conditions and price provided for in the financing.

***Debentures Remaining Outstanding after this Offering***

The January 2022 Debenture, the January 2023 Debenture, the July 2024 Debenture, and the June 2025 Debenture (collectively with the July 2019 Debenture, April 2020 Debenture, and September 2020 Debenture, the "Debentures") will not convert into shares of our common stock in connection with this offering or be exchanged for Series A Preferred Stock in connection with the Exchange. Given the beneficial ownership limitations included in the Debentures, we anticipate that the Debentures, other than the July 2019 Debenture, April 2020 Debenture, and September 2020 Debenture exchanged for shares of Series A Preferred Stock in the Exchange, will remain outstanding immediately following the completion of this offering. However, subject to the beneficial ownership limitations and other terms described below, the holders of the Debentures may convert the Debentures into common stock at any time, in their sole discretion. The material terms and provisions of the Debentures are summarized below. Except as indicated below, the Debentures have the same terms. This summary of the provisions of the Debentures is not complete and is qualified in its entirety by the form of each Debenture, which we have filed as exhibits to the registration statement of which this prospectus is a part. The Debentures were issued pursuant to certain securities purchase agreements, and are subject to associated security agreements and subordination agreements. These agreements will also be filed as exhibits to the registration statement of which this prospectus is a part. Each Debenture is secured by substantially all of the Company's assets including cash, inventory, machinery, equipment, motor vehicles, furniture, tools, fixtures, all contract rights, software, goodwill, and all intellectual property and intangible assets.

*General*. The initial issuance date, maturity date, original principal, and base interest rate of each Debenture is set forth in the table above. Each Debenture accrues interest payable monthly on the first day of each calendar month. However, under the terms of the Debentures, the holders have allowed us to accrete accrued but unpaid interest to the principal amount under each Debenture. Under the January 2022 Debenture, the interest rate on such interest amounts accreted to principal is 14% annually. We cannot prepay any portion of the principal under each Debenture without the holder's prior written consent.

*No Fractional Shares*. No fractional shares or scrip representing fractional shares shall be issued upon any conversion of the Debentures. As to any fraction of a share which the holder would otherwise be entitled to receive upon such conversion, we may, at our election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the conversion price or round up to the next whole share.

*Optional Conversion*. Each Debenture is convertible, in whole or in part, at the option of the holder at any time and from time to time until the Debenture is no longer outstanding, at the conversion price set forth in the table above.

*Failure to Timely Deliver Shares*. If we fail to deliver to the holder any shares issuable upon conversion of the Debentures by the delivery date set forth in the Debenture, and if after such date the holder is required by its broker to purchase (in an open market transaction or otherwise) or the holder's brokerage firm otherwise purchases, shares of common stock to deliver in satisfaction of a sale by the holder which the holder anticipated receiving upon such exercise, or a Buy-In, then we shall (A) pay in cash to the holder the amount, if any, by which (x) the holder's total purchase price (including brokerage commissions, if any) for the shares of common stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of shares that we were required to deliver to the holder in connection with the conversion at issue, times (2) the price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions), and (B) at the option of the holder, either reissue such Debenture in a principal amount equal to the principal amount of the attempted conversion (in which case such conversion shall be deemed rescinded) or deliver to the holder the number of shares of common stock that would have been issued had we timely complied with our delivery obligations. In addition, if we fail to deliver to the holder any common stock pursuant to a conversion of a Debenture, we will be required to pay liquidated damages in the amount of $10 per trading day (increasing to $20 per trading day on the fifth trading day after such liquidated damages being to accrue) for each $1,000 of principal amount being converted but not delivered until such time the shares of common stock are delivered or the holder rescinds such conversion.

*Adjustment for Stock Dividends, Splits and Reclassifications*. The conversion price and the number of shares of common stock purchasable upon the conversion of the Debentures are subject to adjustment upon the occurrence of specific events, including stock dividends, stock splits, combinations, and reclassifications of our common stock.

*Subsequent Equity Sales*. In the event we sell or grant any option to purchase or sell or grant any right to reprice, or otherwise dispose of or issue, any common stock or common stock equivalents at an effective price per share below the conversion price of the Debentures, the conversion price will be reduced to the price per share in such dilutive issuance. If we enter into a variable rate transaction, the conversion price will be reduced to equal the lowest possible price at which securities may be issued in such transaction. The holders of the Debentures have waived this right with respect to this Offering.

*Dividends or Distributions.* While the Debenture is outstanding, if we declare or make any dividend or other distribution of our assets (or rights to acquire our assets) to holders of shares of our common stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) at any time after the issuance of the Debentures, then, in each such case, the holder of the Debentures shall be entitled to participate in such distribution to the same extent that the holders would have participated therein if the holders had held the number of shares of common stock acquirable upon complete conversion of the Debentures (without regard to any limitations on conversion, including without limitation, the Beneficial Ownership Limitation (as defined in the respective Debenture)). However, to the extent that the holder's right to participate in any such distribution would result in the holder exceeding the Beneficial Ownership Limitation, then the holder shall not be entitled to participate in such distribution to such extent, and the portion of such distribution exceeding the limitation will be held in abeyance for the benefit of the holder until such time as its right would not result in the holder exceeding the Beneficial Ownership Limitation.

*Purchase Rights.* In addition, if we grant, issue or sell any shares of our common stock or securities exercisable for, exchangeable for or convertible into our common stock, or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of our common stock, referred to as Purchase Rights, then the holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the holder could have acquired if the holder had held the number of shares of common stock acquirable upon complete conversion of the Debentures immediately before the record date, or, if no such record is taken, the date as of which the record holders of shares of common stock are to be determined, for the grant, issue or sale of such Purchase Rights. However, to the extent that the holder's right to participate in any such Purchase Rights would result in the holder exceeding the Beneficial Ownership Limitation (as defined in the respective Debenture), then the holder shall not be entitled to participate in such Purchase Rights to such extent, and such excess Purchase Rights shall be held in abeyance for the holder until such time as its right thereto would not result in the holder exceeding the Beneficial Ownership Limitation.

*Conversion Limitation*. In general, the holder will not have the right to convert any portion of the Debentures as long as the holder (together with its Attribution Parties (as defined in each Debenture)) would beneficially own in excess of 4.99% of the number of shares of our common stock outstanding immediately after giving effect to the conversion, as such percentage ownership is determined in accordance with the terms of the Debenture. However, the holder may increase or decrease such percentage to any other percentage not in excess of 9.99% upon notice to us, provided that any increase in this limitation will not be effective until 61 days after such notice from the holder to us. If the holder's beneficial ownership falls below 4.99% (or such other percentage elected by the holder, up to 9.99%) at any time, the holder could then convert the Debentures, up to the applicable beneficial ownership limitation.

*Fundamental Transaction*. If a Fundamental Transaction (as defined in each Debenture and described below) occurs, the holder will thereafter have the right to receive upon a conversion of the Debenture at any time after the consummation of the Fundamental Transaction while the Debenture is outstanding, the number of shares of common stock of the successor or acquiring corporation or of us, if it is the surviving corporation, and any additional consideration (the "Alternate Consideration") receivable as a result of such Fundamental Transaction by a holder of the number of shares of common stock into which the Debenture is convertible immediately prior to such Fundamental Transaction on the conversion of the Debenture. For purposes of any such conversion, the determination of the conversion price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of common stock in such Fundamental Transaction, and we shall apportion the exercise price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. Additionally, we will cause any successor entity to assume all of our obligations under the Debentures with the same effect as if such successor entity had been named in each Debenture itself. If holders of our common stock are given a choice as to the securities, cash or property to be received in a Fundamental Transaction, then the holder shall be given the same choice as to the consideration it receives upon any conversion of the Debentures, following such Fundamental Transaction. The holder's right to receive Alternate Consideration shall be calculated as if the Debenture were fully convertible, ignoring any Beneficial Ownership Limitation.

*Optional Redemption*. We may, at any time, elect to redeem some or all of the then outstanding principal of the Debentures by paying an amount equal to 100% (or 110% with respect to the January 2022 Debenture) of the outstanding principal, plus all accrued but unpaid interest and any liquidated damages and other amounts due. In an optional redemption of the January 2022 Debenture, we would also be required to issue to the holder of the January 2022 Debenture a warrant to purchase a number of shares of common stock equal to 50% of the shares that would otherwise have been issuable upon conversion of the principal amount redeemed, with an exercise price equal to the conversion price and a term of seven years.

*Mandatory Redemption*. Each of the January 2023 Debenture, the July 2024 Debenture and the June 2025 Debenture contains a mandatory redemption provision stating that upon the consummation of a Subsequent Financing to the extent legally permitted we shall use 50% of the gross proceeds of such Subsequent Financing to redeem principal outstanding on all other Debentures of such series. "Subsequent Financing" is defined as any issuance by the us or any of our subsidiaries of common stock or common stock equivalents for cash consideration, indebtedness or a combination of units. The holders of the January 2023 Debenture, the July 2024 Debenture and the June 2025 Debenture have waived this mandatory redemption provision with respect to this offering and no proceeds from this offering will be used to redeem amounts outstanding under any Debenture.

*Negative Covenants and Events of Default*. The Debentures include a number of negative covenants limiting our ability to engage in various transactions and take certain actions, including incurring additional indebtedness or liens, amending our organizational documents, repurchasing shares of common stock, repaying other indebtedness, paying cash dividends or distributions, holding assets outside of the U.S. above a certain value, transferring any material intellectual property, or entering into certain transactions with an affiliate, and entering into agreements with respect to these actions. The Debentures also includes customary events of default relating to, among other things, payment defaults, breaches of covenants and representations, bankruptcy events, defaults under certain agreements, failure to maintain minimum liquidity, cash flow, and revenue amounts, failure to maintain the listing of our common stock on a trading market after our initial public offering, engaging in fundamental transactions, limiting capital expenditures under certain conditions, failure to transfer shares upon a conversion, and monetary judgements exceeding certain amounts. In an event of default, the outstanding principal and accrued interest shall become, at the holder's election, immediately due and payable in cash at the default amount specified in each Debenture.

**Series A Preferred Stock**

The preferences and rights of the Series A Preferred Stock will be set forth in a Certificate of Designation of Series A Preferred Stock, or the Series A Certificate of Designation, which will be adopted immediately prior to this offering. The form of Series A Certificate of Designation is included as Exhibit 3.5 to the registration statement of which this Prospectus forms a part. The following is a summary of the material terms of our Series A Preferred Stock and is qualified in its entirety by the Series A Certificate of Designation. Please refer to the Series A Certificate of Designation for more information on the preferences, rights and limitations of Series A Preferred Stock.

*Liquidation.* Upon any liquidation, dissolution or winding-up of us, whether voluntary or involuntary (a "Liquidation"), the holders shall be entitled to receive out of the assets, whether capital or surplus, of us an amount equal to $1,000 for each share of Series A Preferred Stock (the "Series A Original Issue Price") held by such holders, plus any accrued and unpaid dividends thereon, before any distribution or payment shall be made to the holders of common stock and any other classes or series of capital stock ranking junior , and if our assets shall be insufficient to pay in full such amounts, then the entire assets to be distributed to such holders shall be ratably distributed among such holders in accordance with the respective amounts that would be payable on such shares of Series A Preferred Stock if all amounts payable thereon were paid in full, and thereafter the same amount that a holder of Common Stock would receive if the Series A Preferred Stock were fully converted (disregarding for such purposes any conversion limitations hereunder) to common stock which amounts shall be paid pari passu with all holders of common stock.

*Dividends.* The holders of Series A Preferred Stock will be entitled to receive an amount equal (on an "as converted to common stock" basis) to and in the same form as dividends actually paid on shares of our common stock when, as and if such dividends are paid on shares of our common stock. We have an option to pay the Series A Preferred Stock's accruing dividend in additional shares of Series A Preferred Stock.

*Conversion.* Each share of Series A Preferred Stock is convertible, at any time and from time to time at the option of the holder thereof, into that number of shares of common stock determined by dividing $1,000 by the conversion price of $5.50 (subject to adjustment as described below), based on assumed initial public offering price of $5.50 per share, which is equal to the midpoint of the price range set forth on the cover page of this prospectus. This right to convert is limited by the beneficial ownership limitation described below.

*Beneficial Ownership Limitation.* A holder shall have no right to convert any portion of Series A Preferred Stock, to the extent that, after giving effect to such conversion, such holder, together with such holder's affiliates, and any persons acting as a group together with such holder or any such affiliate, would beneficially own in excess of .99% (or, upon election by a holder any higher or lower percentage provided, however, that in no case will the Beneficial Ownership Limitation exceed 9.99%.) of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common stock upon such conversion. A holder of Series A Preferred Stock may adjust the percentage of the beneficial ownership upon not less than 61 days prior notice. Beneficial ownership of the holder and its affiliates will be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. In addition, pursuant to Rule 13d-3(d)(1)(i) promulgated under the Securities Exchange Act of 1934, as amended, any person who acquires Series A Preferred Stock with the purpose or effect of changing or influencing the control of our company, or in connection with or as a participant in any transaction having such purpose or effect, immediately upon such acquisition will be deemed to be the beneficial owner of the underlying common stock.

*Stock Dividends and Stock Splits.* If we pay a stock dividend or otherwise make a distribution payable in shares of common stock on shares of common stock or any other common stock equivalents, subdivide or combine outstanding common stock, or reclassify common stock, the conversion price will be adjusted by multiplying the then effective conversion price by a fraction, the numerator of which shall be the number of shares of common stock outstanding immediately before such event, and the denominator of which shall be the number of shares outstanding immediately after such event.

*Merger or Reorganization, etc.* In the event of any reorganization, recapitalization, reclassification, consolidation or merger involving us in which the common stock (but not the Series A Preferred Stock) is converted into or exchanged for securities, cash or other property, then, following any such transaction, each share of Series A Preferred Stock shall be convertible, in lieu of the common stock into which it was convertible prior to such transaction, into the kind and amount of securities, cash or other property which a holder of the number of shares of common stock issuable upon conversion of one share of Series A Preferred Stock immediately prior to such transaction would have been entitled to receive pursuant to such transaction.

*Voting Rights, etc.* Except as otherwise provided in the Series A Certificate of Designation or required by law, the Series A Preferred Stock has no voting rights. However, as long as any shares of Series A Preferred Stock are outstanding, we may not, without the affirmative vote of the holders of a majority of the then outstanding shares of the Series A Preferred Stock, (a) materially alter or change the powers, preferences or rights given to the Series A Preferred Stock or materially alter or amend this Certificate of Designation in a manner adverse to the holders of Series A Preferred Stock, (b) materially amend its certificate of incorporation or other organizational documents in any manner that adversely affects any rights of the holders (in their capacity as holders of Series A Preferred Stock), (c) increase the number of authorized shares of Series A Preferred Stock, or (d) enter into any agreement with respect to any of the foregoing.

*Fractional Shares.* No fractional shares of common stock will be issued upon conversion of Series A Preferred Stock. In lieu of any fractional shares to which the holder would otherwise be entitled, we will pay cash equal to such fraction multiplied by the Conversion Price.

There is no established public trading market for the Series A Preferred Stock and we do not expect a market to develop. We have not listed and do not plan on applying to list the Series A Preferred Stock on The Nasdaq Capital Market, any other national securities exchange or any other nationally recognized trading system.

**Convertible Notes**

In July 2025, we issued an unsecured convertible note to an investor in the principal amount of $100,000. In August 2025, we issued four additional unsecured convertible notes to three investors in the aggregate principal amount of $220,347.66. Each of the notes was issued pursuant to the form of convertible note filed as Exhibit 10.28 to this registration statement.

The principal and accrued interest on the convertible notes are due at maturity. We may prepay the convertible notes at any time prior to maturity without penalty. Each convertible note has a term of two years and an interest rate of 15% per annum. The notes will automatically convert into shares of common stock upon the closing of an underwritten public offering of common stock that raises at least $10,000,000 of gross proceeds, at a conversion price equal to the lesser of (i) $5.5674 per share or (ii) 90% of the initial public offering price per share. In connection with any such conversion, holders will be required to execute a lock-up agreement for a period of 180 days from the date of the offering. If the notes remain outstanding at maturity, and upon election of the majority holders, the outstanding principal and accrued interest will convert into shares of common stock at a conversion price of $5.5674 per share. The conversion price is subject to adjustment in the event of stock dividends, stock splits, reverse stock splits, or reclassifications of common stock. Fractional shares will not be issued upon conversion; instead, holders will receive cash in lieu of any fractional shares

**Representatives' Warrants** 

We have agreed to issue to the Representatives or their designees at the closing of this offering, warrants to purchase the number of shares of our common stock equal to 3.5% of the aggregate number of shares sold in this offering (the "Representatives' Warrants"). The Representatives' Warrants will be exercisable at any time and from time to time, in whole or in part, for a period of three (3) years from the date of commencement of sales in this offering and may be exercised on a cashless basis. The exercise price of the Representatives' Warrants will equal 120% of the initial public offering price per share, subject to adjustments. See "Underwriting."

**Registration Rights**

The securities purchase agreements pursuant to which our Debentures were issued provide the holders of our Debentures with certain "piggyback" registration rights with respect to any registration statement we file relating to an offering for our account or the account of others, other than on Form S-4 or Form S-8. Such rights allow the holders of the Debentures to include the shares of common stock issuable upon conversion of the Debentures, other than shares that are eligible for resale pursuant to Rule 144 of the Securities Act, in any such registration statement, except for in the case of an underwritten offering, in which the number of shares to be included in the underwriting may be limited in the sole discretion of us and the underwriters. The holders have waived this right in connection with this offering.

**Anti-Takeover Provisions**

Some provisions of the DGCL, our amended and restated certificate of incorporation, and our amended and restated bylaws expected to be in place prior to the consummation of this offering could have the effect of delaying, deferring or discouraging another person from acquiring control of us. It is possible that these provisions could make it more difficult to accomplish or could deter transactions that stockholders may otherwise consider to be in their best interest or in our best interests, including transactions that provide for payment of a premium over the market price for our shares. These provisions, which are summarized below, are expected to discourage certain types of coercive takeover practices and inadequate takeover bids and encourage persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of increased protection of our potential ability to negotiate with an unfriendly or unsolicited acquirer outweigh the disadvantages of discouraging a proposal to acquire us because negotiation of these proposals could result in an improvement of their terms.

***Delaware Law***

We are subject to the provisions of Section 203 of the DGCL regulating corporate takeovers. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a "business combination" with an "interested stockholder" for a three-year period following the time that this stockholder becomes an interested stockholder, unless the business combination is approved in a prescribed manner. Under Section 203, a business combination between a corporation and an interested stockholder is prohibited unless it satisfies one of the following conditions:

● before the stockholder became an interested stockholder, our board of directors approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;

● upon consummation of the transaction, which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding, shares owned by persons who are directors and also officers, and employee stock plans in some instances, but not the outstanding voting stock owned by the interested stockholder; or

● at or after the time the stockholder became an interested stockholder, the business combination was approved by our board of directors and authorized at an annual or special meeting of the stockholders by the affirmative vote of at least two-thirds of the outstanding voting stock that is not owned by the interested stockholder.

● not owned by the interested stockholder.

Section 203 generally defines a business combination to include:

● any merger or consolidation involving the corporation or any direct or indirect majority-owned subsidiary of the corporation (a "Subsidiary") and the interested stockholder;

● subject to certain exceptions, any sale, transfer, lease, pledge, or other disposition involving the interested stockholder of 10% or more of the assets of the corporation or a Subsidiary;

● subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation or a Subsidiary of any stock of the corporation or such Subsidiary to the interested stockholder;

● subject to certain exceptions, any transaction involving the corporation or a Subsidiary that has the effect, directly or indirectly, of increasing the proportionate share of the stock of any class or series of the corporation or any such Subsidiary beneficially owned by the interested stockholder; and

● subject to certain exceptions, any receipt by the interested stockholder of the benefit, directly or indirectly, of any loans, advances, guarantees, pledges, or other financial benefits provided by or through the corporation or any Subsidiary.

In general, Section 203 defines an interested stockholder as any person who, together with affiliates and associates, beneficially owns or, within three years prior to the determination of interested stockholder status, did beneficially own 15% or more of a corporation's outstanding voting stock. We expect the existence of this provision could have an anti-takeover effect with respect to transactions our board of directors does not approve in advance. We also anticipate that DGCL Section 203 may also discourage attempts that might result in a premium over the market price for the shares of common stock held by stockholders.

***Dissenters' Rights of Appraisal and Payment***

Under the DGCL, with certain exceptions, our stockholders will have appraisal rights in connection with a merger or consolidation in which we are a constituent entity. Pursuant to Section 262 of the DGCL, stockholders who properly demand and perfect appraisal rights in connection with such merger or consolidation will have the right to receive payment of the fair value of their shares as determined by the Delaware Court of Chancery.

***Stockholders' Derivative Actions***

Under the DGCL, any of our stockholders may bring an action in our name to procure a judgment in our favor, also known as a derivative action, provided that the stockholder bringing the action is a holder of our shares at the time of the transaction to which the action relates or such stockholder's stock thereafter devolved upon such stockholder by operation of law.

***Provisions of our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws***

Our amended and restated certificate of incorporation and amended and restated bylaws, each of which will become effective immediately prior to the completion of this offering, contain provisions that may have the effect of deterring, delaying, or preventing hostile takeovers, acquisition of us by means of a tender offer, acquisition of us by means of a proxy contest or otherwise, removal of our incumbent officers and directors, or changes to our corporate governance or other policies. It is possible that these provisions could make it more difficult to accomplish or could deter transactions that stockholders may otherwise consider to be in their best interest or in our best interests, including transactions that might result in a premium over the market price for our shares. These provisions, summarized below, are expected to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of increased protection of our potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us outweigh the disadvantages of discouraging these proposals because negotiation of these proposals could result in an improvement of their terms.

●  ***Board of Directors Vacancies*** . Our amended and restated certificate of incorporation and the amended and restated bylaws will provide that our board of directors has the exclusive right to set the size of the board of directors, and any vacancy on our board of directors, however occurring, including a vacancy resulting from an increase in the size of the board, may only be filled by the affirmative votes of a majority of the remaining members of the board of directors, although less than a quorum, or by a sole remaining director except as otherwise required by law and subject to any rights of the holders of any series of preferred stock to elect directors under specified circumstances. This system of electing and removing directors and filling vacancies may discourage a third party from making a tender offer or otherwise attempting to obtain control of us because it generally makes it more difficult for stockholders to replace a majority of the directors.

●  ***Directors Removed Only for Cause*** . Our amended and restated certificate of incorporation will provide that, subject to any special rights of the holders of one or more outstanding series of preferred stock, stockholders may remove directors only for cause and only by the affirmative vote of the holders of at least two-thirds of the voting power of the then-outstanding capital stock entitled to vote at an election of directors.

●  ***Classified Board of Directors*** . Our amended and restated certificate of incorporation and amended and restated bylaws will provide that our board of directors will be classified into three classes of directors. The existence of a classified board of directors could discourage a third party from making a tender offer or otherwise attempting to obtain control of us as it is more difficult and time consuming for stockholders to replace a majority of the directors on a classified board of directors. See the section titled "Management—Board Composition and Election of Directors—Classified Board of Directors" for additional information.

●  ***Supermajority Requirements for Amendments of our Amended and Restated Certificate of Incorporation and our Amended and Restated Bylaws*** . Our amended and restated certificate of incorporation will provide that , in addition to any vote required by applicable law or our amended and restated certificate of incorporation, any amendment, alteration, or repeal of certain provisions of our amended and restated certificate of incorporation, including provisions relating to the size of the board, removal of directors, filling vacancies on our board of directors, limitation of liability and the indemnification of our directors and officers, special meetings, actions by written consent, amendments to our amended and restated bylaws, cumulative voting, and choice of forum, shall require the affirmative vote of the holders of at least 66 2/3% in voting power of all the then-outstanding shares of voting stock of our company entitled to vote generally in the election of directors, voting together as a single class, provided that if our board of directors approves and recommends that stockholders approve such amendment, alteration, repeal, or adoption of inconsistent provisions, such amendment, alteration, repeal, or adoption of inconsistent provisions shall only require the affirmative vote of the holders of a majority of the voting power of the outstanding shares of capital stock entitled to vote on such amendment, alteration, repeal, or adoption of inconsistent provisions, voting together as a single class. Our amended and restated certificate of incorporation and amended and restated bylaws will provide that the board of directors is expressly authorized to adopt, amend, alter, or repeal, in whole or in part, our bylaws without a stockholder vote. In addition, our amended and restated certificate of incorporation will provide that any adoption, amendment, alteration, or repeal of our amended and restated bylaws by our stockholders will require the affirmative vote of the holders of at least 66 2/3% in voting power of all the then-outstanding shares of voting stock entitled to vote generally in the election of directors, voting together as a single class.

●  ***Stockholder Action; Special Meetings of Stockholders*** . Our amended and restated certificate of incorporation will provide that our stockholders may not take action by written consent but may only take action at annual or special meetings of our stockholders, subject to the rights of the holders of any series of preferred stock. As a result, holders of our common stock would not be able to amend the amended and restated bylaws or remove directors without holding a meeting of our stockholders called in accordance with the amended and restated bylaws. Our amended and restated certificate of incorporation and amended and restated bylaws will also provide that. except as otherwise required by law and subject to the rights of the holders of any series of preferred stock, special meetings of our stockholders may be called at any time only by or pursuant to a resolution adopted by a majority of the board of directors, the Chief Executive Officer, the President or the Chairman of the board of directors. Our amended and restated bylaws will prohibit the conduct of any business at a special meeting other than as specified in the notice for such meeting. These provisions may have the effect of deferring, delaying, or discouraging hostile takeovers or changes in control of us or our management, and might delay the ability of our stockholders to force consideration of a proposal or for stockholders to take any action, including the removal of directors.

●  ***Advance Notice Requirements for Stockholder Proposals and Director Nominations*** . Our amended and restated bylaws will establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors. In order for any matter to be properly brought before a meeting of our stockholders, a stockholder will have to comply with advance notice requirements and provide us with certain information. Generally, to be timely, a stockholder's notice must be received at our principal executive offices not less than 90 days nor more than 120 days prior to the first anniversary date of the immediately preceding annual meeting of stockholders. Our amended and restated bylaws will also specify requirements as to the form and content of a stockholder's notice. Our amended and restated bylaws will allow the board of directors and the chairperson of a meeting of the stockholders to adopt rules and regulations for the conduct of meetings, which may have the effect of precluding the conduct of certain business at a meeting if the rules and regulations are not followed. These provisions may also deter, delay or discourage a potential acquirer from conducting a solicitation of proxies to elect the acquirer's own slate of directors or otherwise attempting to influence or obtain control of our company.

●  ***No Cumulative Voting*** . The DGCL provides that stockholders are not entitled to the right to cumulate votes in the election of directors unless a corporation's certificate of incorporation provides otherwise. Our amended and restated certificate of incorporation will not provide for cumulative voting.

●  ***Issuance of Undesignated Preferred Stock*** . Following the offering, our board of directors will have the authority, without further action by the stockholders, to issue up to 4,545,454 shares of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by the board of directors. The existence of authorized but unissued shares of preferred stock enables the board of directors to render more difficult or to discourage an attempt to obtain control of us by means of a merger, tender offer, contest or otherwise.

**Limitations on Liability and Indemnification Matters**

The DGCL authorizes corporations to limit or eliminate the personal liability of directors and officers to corporations and their stockholders for monetary damages for breaches of directors' and officers' fiduciary duties, subject to certain exceptions. Our amended and restated certificate of incorporation which will become effective immediately prior to the completion of this offering, will include a provision that eliminates the personal liability of directors for monetary damages to the corporation or its stockholders for any breach of fiduciary duty as a director or officer, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL. The effect of these provisions is to eliminate the rights of us and our stockholders, through stockholders' derivative suits on our behalf, to recover monetary damages from a director or officer for breach of fiduciary duty as a director or officer, including breaches resulting from grossly negligent behavior. However, exculpation does not apply to any breaches of the director's duty of loyalty, any acts or omissions not in good faith or that involve intentional misconduct or knowing violation of law, any authorization of dividends or stock redemptions or repurchases paid or made in violation of the DGCL, or for any transaction from which the director derived an improper personal benefit.

Our amended and restated bylaws, which will become effective immediately prior to the completion of this offering, will also provide that we must indemnify and advance expenses to our directors and officers to the fullest extent authorized by the DGCL. We also are expressly authorized to carry directors' and officers' liability insurance providing indemnification for our directors, officers and certain employees for some liabilities. We believe that these indemnification and advancement provisions and insurance are useful to attract and retain qualified directors and executive officers.

The limitation of liability, indemnification and advancement provisions in our amended and restated certificate of incorporation and amended and restated bylaws may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit us and our stockholders. In addition, your investment may be adversely affected to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions.

These provisions may be held not to be enforceable for violations of the federal securities laws of the U.S.

**Transfer Agent and Registrar**

The transfer agent and registrar for our common stock is Odyssey Transfer and Trust Company. The address for the transfer agent is 2155 Woodlane Drive, Suite 100, Woodbury, MN 55125.

**Listing**

We have applied to have our common stock approved for listing on The Nasdaq Capital Market under the trading symbol "FFLY."

**SHARES ELIGIBLE FOR FUTURE SALE**

Prior to this offering, there was no public market for our common stock, and there can be no assurance that a significant public market for our common stock will develop or be sustained after this offering. Future sales of substantial amounts of our common stock in the public market (including securities convertible into or redeemable, exchangeable, or exercisable for shares of common stock) or the perception that such sales may occur or the availability of such shares for sale in the public market, after this offering could adversely affect the prevailing market price of our common stock. and our ability to raise equity capital in the future.

If our existing stockholders sell, or indicate an intention to sell, substantial amounts of our common stock in the public market after the lock-up and other legal restrictions on resale discussed in this prospectus lapse, the trading price of our common stock could decline.

Based on shares of common stock outstanding as of October 21, 2025, and assuming the issuance of 4,545,454 shares in this offering and the issuance of 1,997,916 shares of common stock upon the exercise of certain Warrants in the Warrant Exercise and Service Provider Warrant Exercise immediately prior to the completion of this offering, upon the completion of this offering we will have outstanding a total of 19,680,071 shares of common stock, based on assumed initial public offering price of $5.50 per share, which is equal to the midpoint of the price range set forth on the cover page of this prospectus.

All of the 4,545,454 shares of common stock sold in this offering by us, based on assumed initial public offering price of $5.50 per share, which is equal to the midpoint of the price range set forth on the cover page of this prospectus, plus any shares sold upon exercise of the underwriters' option to purchase additional shares, will be freely tradable without restriction or further registration under the Securities Act, except for any shares purchased by our "affiliates," as that term is defined under Rule 144 of the Securities Act, including our directors, executive officers, and other affiliates, whose sales would be subject to the Rule 144 resale restrictions described below.

Generally, the balance of our outstanding shares of common stock, representing approximately 15,134,617 shares of common stock, and the approximately 13,814,585 shares of common stock underlying stock options and Series A Preferred Stock upon issuance, will be deemed "restricted securities" within the meaning of Rule 144 under the Securities Act, subject to the limitations and restrictions that are described below. These restricted securities are eligible for public sale only if they are registered under the Securities Act or if they qualify for an exemption from registration under Rules 144 or 701 under the Securities Act, which are summarized below. Approximately 11,892,318 of the outstanding shares and 10,636,874 of the shares underlying stock options and Series A Preferred Stock will be subject to the 180-day lock-up period under the lock-up agreements described below. Upon expiration of the lock-up period, such shares will be available for sale in the public market, subject in some cases, with respect to shares held by our affiliates, to applicable volume limitations under Rule 144. The grant agreements for our 6,322,480 outstanding options provide that the holders of such options will not sell the shares of common stock underlying such options for 180 days after the completion of this offering.

In addition, shares of common stock that are reserved for future issuance under our existing equity compensation plans will become eligible for sale in the public market to the extent permitted by the provisions of various vesting schedules, the lock-up agreements and Rule 144 and Rule 701 under the Securities Act. If these additional shares of common stock are sold, or if it is perceived that they will be sold, in the public market, the trading price of our common stock could decline.

As a result of the lock-up agreements referred to below and the provisions of Rule 144 and Rule 701, based on the number of shares of our common stock outstanding (calculated as of October 21, 2025 on the basis of the assumptions described above and assuming no exercise of the underwriters' option to purchase additional shares, if any, and no additional exercise of outstanding options or warrants, or conversion of debentures), the shares of our common stock (excluding the shares sold in this offering) that will be available for sale in the public market are as follows:

---

| | |
|:---|:---|
| **Approximate number of shares** | **First date available for sale into public market** |
| 2.9 million shares | Immediately after the completion of this offering, shares held by non-affiliates for at least one year may be sold under Rule 144 without volume, manner of sale, or notice restrictions. |
| 0.4 million shares | 91 days after the date of this prospectus, shares held by non-affiliates for at least six months may be sold without volume, manner of sale, or notice restrictions, subject to public information requirements, under Rule 144 and Rule 701. <sup>(1)</sup> |
| 11.9 million shares | 181 days after the date of this prospectus, upon expiration of the lock-up agreements referred to below, subject in some cases to applicable volume, manner of sale and other limitations under Rule 144 and Rule 701. |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) If
 the Triggering Event occurs as described herein, an additional 655,305 shares of
 Common Stock will be available for sale upon the effectiveness of the registration statement
 registering the resale of such shares.

**Lock-up Agreements**

In connection with this offering, we, our directors, our executive officers, and ATW, have agreed, subject to certain exceptions, as detailed further in the section titled "*Underwriting*," with the underwriters that for a period of 180 days after the date of this prospectus, not to (1) offer, sell, issue, pledge, contract to sell, contract to purchase, grant any option, right or warrant to purchase, lend, make any short sale or otherwise transfer or dispose of, directly or indirectly, any shares of common stock or any other securities so owned convertible into or exercisable or exchangeable for shares of common stock, (2) enter into any swap, hedge or any other agreement that transfers, in whole or in part, the economic consequences of ownership of the shares of common stock, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of shares of common stock or such other securities, in cash or otherwise, or (3) file any registration statement with the SEC relating to the offering of any shares of common stock or any securities convertible into or exercisable or exchangeable for shares of common stock, or publicly disclose the intention to take any such action. The representatives of the underwriters have advised us that they have no current intent or arrangement to release any of the shares subject to the lock-up agreements prior to the expiration of the lock-up period. See "*Underwriting*".

After the lock-up agreements expire, based upon the number of shares of common stock outstanding as of October 21, 2025, and assuming the issuance of 1,997,916 shares of common stock upon the exercise of certain Warrants in the Warrant Exercise and Service Provider Warrant Exercise immediately prior to the completion of this offering, up to an additional 11,892,318 shares of common stock will be eligible for sale in the public market. Approximately 42.3% of these additional shares are beneficially held by directors, executive officers and their affiliates and will be subject to certain limitations of Rule 144 under the Securities Act.

Further, the lock-up agreement and the registration rights agreement with ATW provide that, in the event a "Triggering Event" occurs prior to the 180th day following the pricing of the IPO, up to 33% of their Registrable Securities may be eligible for earlier public sale. A "Triggering Event" occurs if, on any trading day following the 90th day after the pricing of this offering, the daily VWAP of our common stock equals or exceeds 200% of the initial public offering price for at least five out of ten consecutive trading days.

Following the lock-up periods set forth in the agreements described above, and assuming that the representative of the underwriters does not release any parties from these agreements, substantially all of the shares of our common stock that are restricted securities or are held by our affiliates as of the date of this prospectus will be eligible for sale in the public market in compliance with the Securities Act, subject to the limitation discussed below.

**Rule 144**

In general, Rule 144 provides that once we have been subject to the public company reporting requirements of Section 13 or Section 15(d) of the Exchange Act for at least 90 days, a person who is not deemed to have been one of our affiliates for purposes of the Securities Act at any time during the 90 days preceding a sale and who has beneficially owned the shares of our common stock proposed to be sold for at least six months is entitled to sell those shares without complying with the manner of sale, volume limitation or notice provisions of Rule 144, subject to compliance with the public information requirements of Rule 144. If such a person has beneficially owned the shares proposed to be sold for at least one year, including the holding period of any prior owner other than our affiliates, then that person would be entitled to sell those shares without complying with any of the requirements of Rule 144.

In general, Rule 144 provides that our affiliates or persons selling shares of our common stock on behalf of our affiliates are entitled to sell upon expiration of the lock-up agreements described in this prospectus, within any three-month period, a number of shares of common stock that does not exceed the greater of:

● 1% of the number of shares of our common stock then outstanding, which will equal approximately 196,801 shares immediately after completion of this offering; or

● the average weekly trading volume in our common stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such a sale.

Sales by our affiliates under Rule 144 are also subject to manner of sale provisions and notice requirements and to the availability of current public information about us.

**Rule 701**

In general, under Rule 701 as in effect on the date of this prospectus, any of our employees, directors, officers, consultants, or advisors who purchased or purchases shares from us in reliance on Rule 701 in connection with a compensatory stock or option plan or other written agreement before the effective date of a registration statement under the Securities Act, or who purchase shares from us after that date upon the exercise of options granted before that date, are eligible to resell such shares 90 days after such effective date in reliance upon Rule 144. If such person is not an affiliate, such sale may be made under Rule 144 without compliance with the current public information, volume limitation, notice, or holding period requirements. If such a person is an affiliate, such sale may be made under Rule 144 without compliance with the holding period requirement, but subject to the other Rule 144 restrictions described above.

**Registration Rights**

Upon the completion of this offering, ATW will be entitled to registration rights with respect to: (a) the shares of common stock issued or issuable upon the conversion of certain Debentures, (b) the shares of common stock issued or issuable upon the conversion of the Series A Preferred Stock, and (c) shares of common stock, subject to the lock-up agreements described under "—Lock-up Agreements" above. If the daily VWAP of our common stock equals or exceeds 200% of the IPO price for five out of ten consecutive trading days after the 90th day after the pricing of this offering, we are required to publicly file a registration statement covering 33% of the securities. In addition, regardless of whether such event occurs, we are obligated to file a registration statement covering all registrable securities no later than 181 days after this offering, or, if such date is not a business day, on the next succeeding business day. Registration of these shares under the Securities Act would result in the shares becoming freely tradable without restriction under the Securities Act, except for shares purchased by affiliates, immediately upon the effectiveness of the relevant filed registration statement, subject to the terms of the lock-up agreements described above. Any sales of securities by these stockholders could have a material adverse effect on the trading price of our common stock. ATW has waived all such stockholders' rights to notice of this offering and to include their shares of registrable securities in this offering. See the section titled "*Description of Capital Stock—Registration Rights*."

**Equity Incentive Plans**

We intend to file registration statements on Form S-8 under the Securities Act after the closing of this offering to register our shares of common stock that are issuable pursuant to our 2016 Stock Plan and 2025 Stock Plan. The registration statement is expected to be filed and become effective as soon as practicable after the completion of this offering. Accordingly, shares registered under the registration statements will be available for sale in the open market following their effective dates, subject to Rule 144 volume limitations and the lock-up arrangement described above, if applicable.

**MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR<br> NON-U.S. HOLDERS OF OUR COMMON STOCK**

The following is a summary of certain material U.S. federal income tax consequences to non-U.S. holders (as defined below) relating to the acquisition, ownership and disposition of our 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, 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, Treasury Regulations promulgated thereunder, judicial decisions and published rulings, and administrative pronouncements of the U.S. Internal Revenue Service (the "IRS"), all as in effect and available as of the date of this prospectus. 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. Except as provided below, this summary does not address tax reporting requirements. This summary also does not discuss the potential effects, whether adverse or beneficial, of any proposed legislation that, if enacted, could be applied on a retroactive basis. We have not requested a legal opinion of legal counsel or 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 acquire our common stock pursuant to this offering and who hold our 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 non-U.S. holder in light of such non-U.S. holder's particular circumstances. This discussion also does not consider any specific facts or circumstances that may be relevant to non-U.S. holders subject to special rules under the U.S. federal income tax laws, including:

● certain U.S. expatriates, former citizens or long-term residents of the U.S.;

● partnerships or other pass-through entities (and investors therein);

● "controlled foreign corporations" and shareholders thereof;

● "passive foreign investment companies" and shareholders thereof;

● corporations that accumulate earnings to avoid U.S. federal income tax and shareholders thereof;

● corporations organized outside the U.S., any state thereof, or the District of Columbia that are nonetheless treated as U.S. persons for U.S. federal income tax purposes;

● banks, financial institutions, investment funds, insurance companies, brokers, dealers, or traders in securities or currencies including, without limitation, traders in securities that elect to use a mark-to-market method of accounting for their securities holdings;

● tax-exempt organizations and governmental organizations;

● tax-qualified retirement plans and pension plans;

● persons who acquire our common stock through the exercise of an option or otherwise as compensation;

● 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 subject to the alternative minimum tax;

● real estate investment trusts or regulated investment companies;

● persons subject to special tax accounting rules;

● persons that own or have owned, actually or constructively, more than 5% (by voting power or value) of our common stock, except to the extent specifically set forth below;

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

● persons holding our common stock as part of a straddle, hedge, conversion, constructive sale, or other integrated transaction.

In addition, if an entity or arrangement that is classified as a partnership for U.S. federal income tax purposes holds our common stock, the U.S. federal income tax treatment of a partner in the partnership will generally depend on the status of the partner, the activities of the partnership and certain determinations made at the partner level. Accordingly, partnerships owning our common stock and the partners in such partnerships should consult their own tax advisors about the particular U.S. federal income tax consequences to them of acquiring, owning and disposing of our common stock.

**Prospective investors should consult their own tax advisors with respect to the application of the U.S. federal income tax laws to their particular situation, as well as any tax consequences of the acquisition, ownership and disposition of our common stock arising under other U.S. federal tax rules or under the laws of any state, local, non-U.S. or other taxing jurisdiction or under any applicable tax treaty.**

**Definition of Non-U.S. Holder**

For purposes of this discussion, a "non-U.S. holder" is any beneficial owner of our 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:

● a citizen or individual resident of the U.S.;

● a corporation created or organized under the laws of the U.S., 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 (i) 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 (ii) that has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person.

**Distributions on Our Common Stock**

As described in the section titled "Dividend Policy," we have never paid or declared any cash dividends on our common stock, and we do not anticipate paying any cash dividends on our common stock in the foreseeable future. However, if we distribute cash or other property in respect of our common stock (other than certain pro rata distributions of our 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. If the amount of a distribution exceeds our current and accumulated earnings and profits, the excess will be treated first as a tax-free return of capital that reduces the non-U.S. holder's adjusted basis in such holder's common stock, but not below zero. Any excess will be treated as gain realized on the sale or other disposition of our common stock and will be treated as described under "*– Sale, Exchange or Other Taxable Disposition of Our Common Stock*" below.

Subject to the discussion below regarding effectively connected income, backup withholding and FATCA (as defined below), distributions treated as dividends on our common stock held by a non-U.S. holder generally will be subject to U.S. federal withholding tax at a rate of 30%, or at a lower rate if provided by an applicable income tax treaty and the non-U.S. holder has provided the documentation required to claim benefits under such treaty. Generally, to claim the benefits of an income tax treaty, a non-U.S. holder will be required to provide a properly executed IRS Form W-8BEN, IRS Form W-8BEN-E or other applicable IRS Forms. In the case of any constructive distribution, it is possible that this tax would be withheld from any amount owed to the non-U.S. holder, including, but not limited to, distributions of cash, common stock or sales proceeds subsequently paid or credited to that holder. If we are unable to determine, at the time of payment of a distribution, whether the distribution will constitute a dividend, we may nonetheless withhold any U.S. federal income tax on the distribution as permitted by Treasury Regulations. If we are a USRPHC (as defined below) and we do not qualify for the Regularly Traded Exception (as defined below), distributions which constitute a return of capital will be subject to withholding tax unless an application for a withholding certificate is filed to reduce or eliminate such withholding.

If a non-U.S. holder holds our common stock in connection with the non-U.S. holder's conduct of a trade or business within the U.S., and dividends paid on our common stock are effectively connected with such non-U.S. holder's U.S. trade or business (and, if an applicable tax treaty so provides, are attributable to a permanent establishment or fixed base maintained by the non-U.S. holder in the U.S.), the dividends will not be subject to the 30% U.S. federal withholding tax (provided the non-U.S. holder has provided the appropriate documentation, generally an IRS Form W-8ECI, to the withholding agent), but the non-U.S. holder generally will be subject to U.S. federal income tax in respect of the dividend on a net income basis, and at graduated rates, in substantially the same manner as U.S. persons. Dividends received by a non-U.S. holder that is a corporation for U.S. federal income tax purposes and which are effectively connected with the conduct of a U.S. trade or business may also be subject to a branch profits tax at the rate of 30% (or a lower rate if provided by an applicable tax treaty).

A non-U.S. holder that is eligible for a reduced rate of U.S. federal withholding tax under an income tax treaty may obtain a refund or credit of any excess amounts withheld by timely filing an appropriate claim for a refund together with the required information with the IRS.

**Sale, Exchange or Other Taxable Disposition of Our Common Stock**

Subject to the discussion 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 our common stock, unless:

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

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

● we are or become a U.S. real property holding corporation (a "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 our common stock, and our common stock is not regularly traded on an established securities market during the calendar year in which the sale or other disposition occurs.

A non-U.S. holder described in the first bullet point above generally will be subject to tax at a gross rate of 30% on the amount by which such non-U.S. holder's taxable capital gains allocable to U.S. sources, including gain from the sale or other disposition of our common stock, exceed capital losses allocable to U.S. sources, except as otherwise provided in an applicable income tax treaty.

If the gain is described in the second bullet point above, gain realized by the non-U.S. holder generally will be subject to U.S. federal income tax on a net income basis, and at graduated rates, in substantially the same manner as a U.S. person (except as provided by an applicable tax treaty). In addition, if such non-U.S. holder is a corporation for U.S. federal income tax purposes, it may also be subject to a branch profits tax at the rate of 30% (or a lower rate if provided by an applicable tax treaty) on such effectively connected gain, as adjusted for certain items.

Determining whether we are a USRPHC depends on the fair market value of our U.S. real property interests relative to the fair market value of our other trade or business assets and our foreign real property interests. We believe we are not and do not anticipate becoming a USRPHC for U.S. federal income tax purposes, although there can be no assurance we will not in the future become a USRPHC. If we were to constitute a USRPHC at any time during the time period referred to in the third bullet point above, if our common stock is "regularly traded" on an "established securities market" (in each case, as defined by applicable Treasury Regulations) (the "Regularly Traded Exception") during the calendar year in which a non-U.S. holder disposes of our common stock, the non-U.S. holder would not be subject to taxation on the gain on the disposition of our common stock under this rule unless the non-U.S. holder has, actually or constructively, owned more than 5% of our outstanding common stock at any time during the shorter of the five-year period ending on the date of the disposition of such common stock or the non-U.S. holder's holding period for such common stock. No assurance can be given that our stock is or may be at any time in the future regularly traded on an established securities market. If gain on the sale or other taxable disposition of shares of our common stock by a non-U.S. holder is subject to U.S. federal income taxation by reason of us being a USRPHC at any time during the time period referred to in the third bullet point above, such non-U.S. holder generally would be subject to regular U.S. federal income tax with respect to such gain in the same manner as a taxable U.S. holder and would be required to file a U.S. federal income tax return for the taxable year in which such gain was recognized. In addition, the purchaser of our shares of common stock from a non-U.S. holder generally would be required to withhold and remit to the IRS 15% of the purchase price paid to such non-U.S. holder unless, at the time of such sale or other disposition, any class of our stock is regularly traded on an established securities market (as discussed above) or another exception to such withholding applies.

Non-U.S. holders should consult their own tax advisors regarding any applicable income tax treaties that may provide for different rules.

**Information Reporting and Backup Withholding**

Backup withholding, currently at a rate of 24%, generally will not apply to dividends paid to a non-U.S. holder on, or to the gross proceeds paid to a non-U.S. holder from a disposition of, our common stock, provided that 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, 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.

We are required to report annually to the IRS the amount of any dividends paid to a non-U.S. holder, regardless of whether we actually withheld any tax. Copies of the information returns reporting such dividends and the amount withheld may also be made available to the tax authorities in the country in which the non-U.S. holder resides under the provisions of an income tax treaty or other agreement between the U.S. and the tax authorities in such country. In addition, proceeds from the disposition by a non-U.S. holder of our common stock that is transacted within the U.S. or conducted through certain U.S.-related brokers generally will not be subject to backup withholding or information reporting if the applicable withholding agent receives the certification described above and does not have actual knowledge or reason to know that such holder is a U.S. person, or the holder otherwise establishes an exemption. Proceeds of a disposition of our common stock conducted through a non-U.S. office of a non-U.S. broker generally will not be subject to backup withholding or information reporting.

Backup withholding is not an additional tax. The U.S. federal income tax liability of persons subject to backup withholding will be reduced by the amount of tax withheld. If backup withholding results in an overpayment of taxes, a refund or credit may generally be obtained from the IRS, provided that the required information is timely furnished to the IRS.

**Withholding on Payment to Certain Foreign Accounts or Entities**

Withholding taxes may be imposed under Sections 1471 to 1474 of the Code (such sections commonly referred to as the Foreign Account Tax Compliance Act, or "FATCA") on certain types of payments made to non-U.S. financial institutions and certain other non-U.S. entities. Specifically, a 30% withholding tax may be imposed on dividends paid to a non-U.S. holder on, or, subject to the proposed Treasury Regulations discussed below, gross proceeds from the disposition of, our common stock paid to a "foreign financial institution" or a "non-financial foreign entity" (each as defined in the Code), unless (i) the foreign financial institution undertakes certain diligence and reporting obligations, (ii) the non-financial foreign entity either certifies it does not have any "substantial U.S. owners" (as defined in the Code) or furnishes identifying information regarding each substantial U.S. owner, or (iii) the foreign financial institution or non-financial foreign entity otherwise qualifies for an exemption from these rules. If the payee is a foreign financial institution and is subject to the diligence and reporting requirements in clause (i) above, it must enter into an agreement with the U.S. Department of Treasury requiring, among other things, that it undertake to identify accounts held by certain "specified United States persons" or "United States owned foreign entities" (each as defined in the Code), annually report certain information about such accounts, and withhold 30% on certain payments to non-compliant foreign financial institutions and certain other account holders. Non-U.S. holders typically will be required to furnish certifications (generally on the applicable IRS Form W-8) or other documentation to provide the information required by FATCA or to establish compliance with or an exemption from withholding under FATCA. FATCA withholding may apply where payments are made through a non-U.S. intermediary that is not FATCA compliant, even where the non-U.S. holder satisfies the holder's own FATCA obligations.

Under the applicable Treasury Regulations and administrative guidance, withholding under FATCA generally applies to payments of dividends on our common stock, and subject to proposed Treasury Regulations described below, to payments of gross proceeds from the sale or other disposition of such stock. The U.S. Department of Treasury has released proposed Treasury Regulations (the preamble to which specifies that taxpayers may rely on them pending finalization) which would eliminate FATCA withholding on payments of gross proceeds from the sale or other disposition of our common stock. There can be no assurance that the proposed Treasury Regulations will be finalized in their present form.

The U.S. and a number of other jurisdictions have entered into intergovernmental agreements to facilitate the implementation of FATCA. Any applicable intergovernmental agreement may alter one or more of the FATCA information reporting and withholding requirements. Prospective investors should consult their own tax advisors regarding the potential application of withholding under FATCA to an investment in our common stock, including the applicability of any intergovernmental agreements.

**THE FOREGOING DISCUSSION IS NOT TAX ADVICE. PROSPECTIVE INVESTORS SHOULD CONSULT THEIR OWN TAX ADVISORS REGARDING THE PARTICULAR U.S. FEDERAL INCOME TAX CONSEQUENCES TO THEM OF THE ACQUISITION, OWNERSHIP, AND DISPOSITION OF OUR 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 OR UNDER ANY APPLICABLE INCOME TAX TREATY.**

**UNDERWRITING**

We intend to enter into an underwriting agreement with the several underwriters listed in the table below. Roth Capital Partners, LLC, or Roth Capital Partners, and Lake Street Capital Markets, LLC, or Lake Street, are the representatives of the underwriters. We refer to the several underwriters listed in the table below as the "underwriters." Subject to the terms and conditions of the underwriting agreement, we have agreed to sell to the underwriters, and the underwriters have agreed to purchase from us, shares of our common stock. We have applied to list our common stock on The Nasdaq Capital Market under the symbol ''FFLY.''

Pursuant to the terms and subject to the conditions contained in the underwriting agreement, we have agreed to sell to the underwriters named below, and each underwriter severally has agreed to purchase from us, the respective number of shares of common stock set forth opposite its name below:

---

| | |
|:---|:---|
| **Underwriter** | **Number of Shares** |
| Roth Capital Partners, LLC |  |
| Lake Street Capital Markets, LLC |  |
| Chardan Capital Markets, LLC |  |
| &nbsp;&nbsp;&nbsp;**Total** |  |

---

The underwriting agreement provides that the obligation of the underwriters to purchase the shares of common stock offered by this prospectus is subject to certain conditions. The underwriters are obligated to purchase all of the shares of common stock offered hereby if any of the shares are purchased.

We have granted the underwriters an option to buy up to an additional shares of common stock from us at the public offering price, less the underwriting discounts and commissions, to cover over-allotments, if any. The underwriters may exercise this option at any time, in whole or in part, during the 30-day period after the date of this prospectus.

**Discounts, Commissions and Expenses**

The underwriters propose to offer the shares of common stock purchased pursuant to the underwriting agreement to the public at the public offering price set forth on the cover page of this prospectus and to certain dealers at that price less a concession not in excess of $ per share. After this offering, the public offering price and concession may be changed by the underwriters. No such change shall change the amount of proceeds to be received by us as set forth on the cover page of this prospectus.

In connection with the sale of the common stock to be purchased by the underwriters, the underwriters will be deemed to have received compensation in the form of underwriting commissions and discounts. The underwriters' commissions and discounts will be % of the gross proceeds of this offering, or $ per share of common stock, based on the public offering price per share set forth on the cover page of this prospectus.

We have also agreed to reimburse Roth Capital Partners at closing for expenses, including legal expenses, incurred by it in connection with the offering up to a maximum of $500,000.

The following table shows the underwriting discounts and commissions payable to the underwriters by us in connection with this offering (assuming both the exercise and non-exercise of the over-allotment option to purchase additional shares of common stock we have granted to the underwriters):

---

| | | | |
|:---|:---|:---|:---|
|  | **Per Share** | **Total** | **Total** |
|  | **Without<br> Over-<br> allotment** | **Without<br> Over-<br> allotment** | **With<br> Over-<br> allotment** |
| Public offering price | $| $— |  |
| Underwriting discounts and commissions paid by us | $| $— |  |
| Proceeds before expenses, to us | $| $— |  |

---

**Representatives' Warrants**

We have agreed to issue to the Representatives or their designees at the closing of this offering warrants to purchase the number of common stock equal to 3.5% of the aggregate number of shares sold in this offering, including any shares issued pursuant to the exercise of the underwriters' over-allotment option. The representatives' warrants will be exercisable at any time and from time to time, in whole or in part, after the closing of this offering and may be exercised on a cashless basis, subject to the lock-up period described below. The representatives' warrants will be exercisable at a per share price equal to 120% of the initial public offering price per share in the offering. The representatives' warrants will terminate three years from the commencement of sales of this offering.

The representatives' warrants and the underlying shares have been deemed compensation by FINRA and are therefore subject to a 180-day lock-up pursuant to FINRA Rule 5110(e)(1). In accordance with FINRA Rule 5110(e)(1), and except as otherwise permitted by FINRA rules, neither the representatives' warrants nor any of the shares issued upon exercise of the representatives' warrants may be sold, transferred, assigned, pledged, or hypothecated or be subject to any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the warrants or the underlying securities for a period of 180 days from the commencement of sales of this offering except as permitted pursuant to FINRA Rule 5110(e)(2). The shares of common stock underlying the warrants are being registered as a part of the registration statement of which this prospectus forms a part and will be freely tradable upon exercise after the expiration of the FINRA lock-up.

The exercise price and number of shares of common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, extraordinary cash dividend or recapitalization, reorganization, merger or consolidation.

**Right of First Refusal**

We have granted the Representatives a right of first refusal for a period of 12 months from the closing of this offering, to serve as joint book-running managers, underwriters, or placement agents for any public offering or private placement of equity or equity-linked securities using an underwriter or placement agent and to serve as financial advisors for any strategic advisory transaction requiring investment banking representation and services during such 12-month period.

**Indemnification**

Pursuant to the underwriting agreement, we have agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act, or to contribute to payments that the underwriters or such other indemnified parties may be required to make in respect of those liabilities.

**Lock-Up Agreements**

We have agreed not to (i) offer, pledge, issue, sell, contract to sell, purchase, contract to purchase, lend or otherwise transfer or dispose of, directly or indirectly, any shares of our common stock or any securities convertible into or exercisable or exchangeable for our common stock; (ii) enter into any swap or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of shares of common stock; or (iii) file any registration statement with the SEC relating to the offering of any shares of our common stock or any securities convertible into or exercisable or exchangeable for shares of our common stock, other than (a) filing a registration statement on Form S-8 in connection with any employee benefit plan in effect as of the closing date of this offering and (b) filing a registration statement relating to the resale of shares of common stock pursuant to the Registration Rights Agreement with ATW, without the prior written consent of Roth Capital Partners for a period of 180 days following the date of this prospectus (the "Lock-up Period"). This consent may be given at any time without public notice. These restrictions on future issuances are subject to exceptions for (i) the issuance of shares of our common stock sold in this offering, (ii) the issuance of shares of our common stock upon the exercise of outstanding options or warrants and the vesting of restricted stock awards or units, (iii) the issuance of employee stock options not exercisable during the Lock-up Period and the grant, redemption or forfeiture of restricted stock awards or restricted stock units pursuant to our equity incentive plans or as new employee inducement grants and (iv) the issuance of common stock or warrants to purchase common stock in connection with mergers or acquisitions of securities, businesses, property or other assets, joint ventures, strategic alliances, equipment leasing arrangements or debt financing.

In addition, each of our directors and executive officers and holders of approximately % of our shares of common stock (the "Lock-Up Parties") will enter into a lock-up agreement with the underwriters. Under the lock-up agreements, the Lock-Up Parties may not, without the prior written consent of the Representatives, directly or indirectly, offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, make any short sale or otherwise transfer or dispose of shares of our common stock or securities convertible into or exchangeable or exercisable for or that represent the right to receive any shares of common stock, nor enter into transactions or arrangements (such as swaps, or hedges) that would result in the disposition or transfer of ownership or its economic benefits, or publicly announce any intention to do any of the following. These restrictions apply to all forms of common stock, including those beneficially owned or issuable upon exercise or conversion of other securities for a period of 180 days from the date of the final prospectus used to sell the shares of common stock in this offering (the "Lock-Up Period"). This consent may be given at any time without public notice. These restrictions on future dispositions by our directors and executive officers are subject to exceptions for: (i) the exercise of stock options or other awards under our equity incentive plans, as described in the offering documents; (ii) the exercise of warrants or the conversion of convertible debt, with any shares received remaining subject to the lock-up; (iii) cashless "net" exercises of options, convertible debt, or warrants, with resulting shares remaining subject to the lock-up; (iv) the receipt of securities from us, including stock options or other awards granted pursuant to our equity incentive plans in effect as of the closing date of the offering and described in the offering documents, and warrants exercisable for shares of common stock, with any shares issued remaining subject to the lock-up; and (v) certain transfers, including bona fide gifts, transfers to trusts or affiliates, and transfers by operation of law, provided the recipient agrees to the lock-up terms and the transfer is not for value. In all cases, shares received or transferred under these exceptions remain subject to the lock-up agreement.

Additionally, the Lock-Up Parties, will not, without the prior consent of the Representatives, during the Lock-Up Period, make any demand for or exercise any right with respect to the registration of any shares of common stock or any security convertible into or exercisable or exchangeable for shares of common stock. Notwithstanding the foregoing, the registration restrictions in the lock-up agreement with ATW are subject to the Registration Rights Agreement, and, in the event of a Triggering Event, ATW will be permitted to sell shares of common stock that are registered pursuant to the Registration Rights Agreement during the Lock-up Period.

**Electronic Distribution**

This prospectus may be made available in electronic format on websites or through other online services maintained by the underwriters or by their affiliates. In those cases, prospective investors may view offering terms online and prospective investors may be allowed to place orders online. Other than this prospectus in electronic format, the information on the underwriters' websites or our website and any information contained in any other websites maintained by the underwriters or by us is not part of this prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or the underwriter in its capacity as underwriter, and should not be relied upon by investors.

**Price Stabilization, Short Positions and Penalty Bids**

In connection with the offering the underwriters may engage in stabilizing transactions, over-allotment transactions, syndicate covering transactions and penalty bids in accordance with Regulation M under the Exchange Act:

● Stabilizing transactions permit bids to purchase the underlying security so long as the stabilizing bids do not exceed a specified maximum.

● Over-allotment involves sales by the underwriters of shares in excess of the number of shares the underwriters are obligated to purchase, which creates a syndicate short position. The short position may be either a covered short position or a naked short position. In a covered short position, the number of shares over-allotted by the underwriters is not greater than the number of shares that they may purchase in the over-allotment option. In a naked short position, the number of shares involved is greater than the number of shares in the over-allotment option. The underwriters may close out any covered short position by either exercising their over-allotment option and/or purchasing shares in the open market.

● Syndicate covering transactions involve purchases of the common stock in the open market after the distribution has been completed in order to cover syndicate short positions. In determining the source of shares to close out the short position, the underwriters will consider, among other things, the price of shares available for purchase in the open market as compared to the price at which they may purchase shares through the over-allotment option. A naked short position occurs if the underwriters sell more shares than could be covered by the over-allotment option. This position can only be closed out by buying shares in the open market. A naked short position is more likely to be created if the underwriters are concerned that there could be downward pressure on the price of the shares in the open market after pricing that could adversely affect investors who purchase in the offering.

● Penalty bids permit the underwriters to reclaim a selling concession from a syndicate member when the common stock originally sold by the syndicate member is purchased in a stabilizing or syndicate covering transaction to cover syndicate short positions.

These stabilizing transactions, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market price of our common stock or preventing or retarding a decline in the market price of the common stock. As a result, the price of our common stock may be higher than the price that might otherwise exist in the open market. These transactions may be discontinued at any time.

Neither we nor the underwriters make any representation or prediction as to the direction or magnitude of any effect that the transactions described above may have on the price of our shares of common stock. In addition, neither we nor the underwriters make any representation that the underwriters will engage in these transactions or that any transactions, if commenced, will not be discontinued without notice.

**Offer restrictions outside the United States**

Other than in the U.S., no action has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to this offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

**Australia**

This prospectus is not a disclosure document under Chapter 6D of the Australian Corporations Act, has not been lodged with the Australian Securities and Investments Commission and does not purport to include the information required of a disclosure document under Chapter 6D of the Australian Corporations Act. Accordingly, (i) the offer of the securities under this prospectus is only made to persons to whom it is lawful to offer the securities without disclosure under Chapter 6D of the Australian Corporations Act under one or more exemptions set out in section 708 of the Australian Corporations Act, (ii) this prospectus is made available in Australia only to those persons as set forth in clause (i) above, and (iii) the offeree must be sent a notice stating in substance that by accepting this offer, the offeree represents that the offeree is such a person as set forth in clause (i) above, and, unless permitted under the Australian Corporations Act, agrees not to sell or offer for sale within Australia any of the securities sold to the offeree within 12 months after its transfer to the offeree under this prospectus.

**Canada**

The securities may be sold in Canada only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the securities must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws. Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor. Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts (NI 33-105), the underwriter is not required to comply with the disclosure requirements of NI33-105 regarding underwriter conflicts of interest in connection with this offering.

**China**

The information in this document does not constitute a public offer of the securities, whether by way of sale or subscription, in the People's Republic of China (excluding, for purposes of this paragraph, Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan). The securities may not be offered or sold directly or indirectly in the PRC to legal or natural persons other than directly to "qualified domestic institutional investors."

**European Economic Area — Belgium, Germany, Luxembourg and Netherlands**

The information in this document has been prepared on the basis that all offers of securities will be made pursuant to an exemption under the Directive 2003/71/EC ("Prospectus Directive"), as implemented in Member States of the European Economic Area (each, a "Relevant Member State"), from the requirement to produce a prospectus for offers of securities.

An offer to the public of securities has not been made, and may not be made, in a Relevant Member State except pursuant to one of the following exemptions under the Prospectus Directive as implemented in that Relevant Member State:

● to legal entities that are authorized or regulated to operate in the financial markets or, if not so authorized or regulated, whose corporate purpose is solely to invest in securities;

● to any legal entity that has two or more of (i) an average of at least 250 employees during its last fiscal year; (ii) a total balance sheet of more than €43,000,000 (as shown on its last annual unconsolidated or consolidated financial statements) and (iii) an annual net turnover of more than €50,000,000 (as shown on its last annual unconsolidated or consolidated financial statements);

● to fewer than 100 natural or legal persons (other than qualified investors within the meaning of Article 2(1)(e) of the Prospectus Directive) subject to obtaining our prior consent or any underwriter for any such offer; or

● in any other circumstances falling within Article 3(2) of the Prospectus Directive, provided that no such offer of securities shall require us to publish a prospectus pursuant to Article 3 of the Prospectus Directive.

**France**

This document is not being distributed in the context of a public offering of financial securities (offre au public de titres financiers) in France within the meaning of Article L.411-1 of the French Monetary and Financial Code (Code monétaire et financier) and Articles 211-1 et seq. of the General Regulation of the French Autorité des marchés financiers ("AMF"). The securities have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in France.

This document and any other offering material relating to the securities have not been, and will not be, submitted to the AMF for approval in France and, accordingly, may not be distributed or caused to be distributed, directly or indirectly, to the public in France.

Such offers, sales and distributions have been and shall only be made in France to (i) qualified investors (investisseurs qualifiés) acting for their own account, as defined in and in accordance with Articles L.411-2-II-2 and D.411-1 to D.411-3, D. 744-1, D.754-1 and D.764-1 of the French Monetary and Financial Code and any implementing regulation and/or (ii) a restricted number of non-qualified investors (cercle restreint d'investisseurs) acting for their own account, as defined in and in accordance with Articles L.411-2-II-2° and D.411-4, D.744-1, D.754-1 and D.764-1 of the French Monetary and Financial Code and any implementing regulation.

Pursuant to Article 211-3 of the General Regulation of the AMF, investors in France are informed that the securities cannot be distributed (directly or indirectly) to the public by the investors otherwise than in accordance with Articles L.411-1, L.411-2, L.412-1 and L.621-8 to L.621-8-3 of the French Monetary and Financial Code.

**Ireland**

The information in this document does not constitute a prospectus under any Irish laws or regulations and this document has not been filed with or approved by any Irish regulatory authority as the information has not been prepared in the context of a public offering of securities in Ireland within the meaning of the Irish Prospectus (Directive 2003/71/EC) Regulations 2005 (the "Prospectus Regulations"). The securities have not been offered or sold, and will not be offered, sold or delivered directly or indirectly in Ireland by way of a public offering, except to (i) qualified investors as defined in Regulation 2(l) of the Prospectus Regulations and (ii) fewer than 100 natural or legal persons who are not qualified investors.

**Israel**

The securities offered by this prospectus have not been approved or disapproved by the Israeli Securities Authority (the ISA), or ISA, nor have such securities been registered for sale in Israel. The shares may not be offered or sold, directly or indirectly, to the public in Israel, absent the publication of a prospectus. The ISA has not issued permits, approvals or licenses in connection with this offering or publishing the prospectus; nor has it authenticated the details included herein, confirmed their reliability or completeness, or rendered an opinion as to the quality of the securities being offered. Any resale in Israel, directly or indirectly, to the public of the securities offered by this prospectus is subject to restrictions on transferability and must be effected only in compliance with the Israeli securities laws and regulations.

**Italy**

The offering of the securities in the Republic of Italy has not been authorized by the Italian Securities and Exchange Commission (Commissione Nazionale per le Società e la Borsa, "CONSOB") pursuant to the Italian securities legislation and, accordingly, no offering material relating to the securities may be distributed in Italy and such securities may not be offered or sold in Italy in a public offer within the meaning of Article 1.1(t) of Legislative Decree No. 58 of 24 February 1998 ("Decree No. 58"), other than:

● to Italian qualified investors, as defined in Article 100 of Decree no. 58 by reference to Article 34-ter of CONSOB Regulation no. 11971 of 14 May 1999 ("Regulation no. 1197l") as amended ("Qualified Investors"); and

● in other circumstances that are exempt from the rules on public offer pursuant to Article 100 of Decree No. 58 and Article 34-ter of Regulation No. 11971 as amended.

Any offer, sale or delivery of the securities or distribution of any offer document relating to the securities in Italy (excluding placements where a Qualified Investor solicits an offer from the issuer) under the paragraphs above must be:

● made by investment firms, banks or financial intermediaries permitted to conduct such activities in Italy in accordance with Legislative Decree No. 385 of 1 September 1993 (as amended), Decree No. 58, CONSOB Regulation No. 16190 of 29 October 2007 and any other applicable laws; and

● in compliance with all relevant Italian securities, tax and exchange controls and any other applicable laws.

Any subsequent distribution of the securities in Italy must be made in compliance with the public offer and prospectus requirement rules provided under Decree No. 58 and the Regulation No. 11971 as amended, unless an exception from those rules applies. Failure to comply with such rules may result in the sale of such securities being declared null and void and in the liability of the entity transferring the securities for any damages suffered by the investors.

**Japan**

The securities have not been and will not be registered under Article 4, paragraph 1 of the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948), as amended (the "FIEL") pursuant to an exemption from the registration requirements applicable to a private placement of securities to Qualified Institutional Investors (as defined in and in accordance with Article 2, paragraph 3 of the FIEL and the regulations promulgated thereunder). Accordingly, the securities may not be offered or sold, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan other than Qualified Institutional Investors. Any Qualified Institutional Investor who acquires securities may not resell them to any person in Japan that is not a Qualified Institutional Investor, and acquisition by any such person of securities is conditional upon the execution of an agreement to that effect.

**New Zealand**

The shares of common stock offered hereby have not been offered or sold, and will not be offered or sold, directly or indirectly in New Zealand and no offering materials or advertisements have been or will be distributed in relation to any offer of shares in New Zealand, in each case other than:

● to persons whose principal business is the investment of money or who, in the course of and for the purposes of their business, habitually invest money;

● to persons who in all the circumstances can properly be regarded as having been selected otherwise than as members of the public;

● to persons who are each required to pay a minimum subscription price of at least NZ$500,000 for the shares before the allotment of those shares (disregarding any amounts payable, or paid, out of money lent by the issuer or any associated person of the issuer); or

● in other circumstances where there is no contravention of the Securities Act 1978 of New Zealand (or any statutory modification or reenactment of, or statutory substitution for, the Securities Act 1978 of New Zealand).

**Portugal**

This document is not being distributed in the context of a public offer of financial securities (oferta pública de valores mobiliários) in Portugal, within the meaning of Article 109 of the Portuguese Securities Code (Código dos Valores Mobiliários). The securities have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in Portugal. This document and any other offering material relating to the securities have not been, and will not be, submitted to the Portuguese Securities Market Commission (Comissào do Mercado de Valores Mobiliários) for approval in Portugal and, accordingly, may not be distributed or caused to distributed, directly or indirectly, to the public in Portugal, other than under circumstances that are deemed not to qualify as a public offer under the Portuguese Securities Code. Such offers, sales and distributions of securities in Portugal are limited to persons who are "qualified investors" (as defined in the Portuguese Securities Code). Only such investors may receive this document and they may not distribute it or the information contained in it to any other person.

**Sweden**

This document has not been, and will not be, registered with or approved by Finansinspektionen (the Swedish Financial Supervisory Authority). Accordingly, this document may not be made available, nor may the securities be offered for sale in Sweden, other than under circumstances that are deemed not to require a prospectus under the Swedish Financial Instruments Trading Act (1991:980) (Sw. lag (1991:980) om handel med finansiella instrument). Any offering of securities in Sweden is limited to persons who are "qualified investors" (as defined in the Financial Instruments Trading Act). Only such investors may receive this document and they may not distribute it or the information contained in it to any other person.

**Switzerland**

The securities may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without regard to the disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering material relating to the securities may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this document nor any other offering material relating to the securities have been or will be filed with or approved by any Swiss regulatory authority. In particular, this document will not be filed with, and the offer of securities will not be supervised by, the Swiss Financial Market Supervisory Authority (FINMA).

This document is personal to the recipient only and not for general circulation in Switzerland.

**United Arab Emirates**

Neither this document nor the securities have been approved, disapproved or passed on in any way by the Central Bank of the United Arab Emirates or any other governmental authority in the United Arab Emirates, nor have we received authorization or licensing from the Central Bank of the United Arab Emirates or any other governmental authority in the United Arab Emirates to market or sell the securities within the United Arab Emirates. This document does not constitute and may not be used for the purpose of an offer or invitation. We may not render services relating to the securities within the United Arab Emirates, including the receipt of applications and/or the allotment or redemption of such shares.

No offer or invitation to subscribe for securities is valid or permitted in the Dubai International Financial Centre.

**United Kingdom**

Neither the information in this document nor any other document relating to the offer has been delivered for approval to the Financial Services Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act 2000, as amended ("FSMA")) has been published or is intended to be published in respect of the securities. This document is issued on a confidential basis to "qualified investors" (within the meaning of section 86(7) of FSMA) in the United Kingdom, and the securities may not be offered or sold in the United Kingdom by means of this document, any accompanying letter or any other document, except in circumstances which do not require the publication of a prospectus pursuant to section 86(1) FSMA. This document should not be distributed, published or reproduced, in whole or in part, nor may its contents be disclosed by recipients to any other person in the United Kingdom.

Any invitation or inducement to engage in investment activity (within the meaning of section 21 of FSMA) received in connection with the issue or sale of the securities has only been communicated or caused to be communicated and will only be communicated or caused to be communicated in the United Kingdom in circumstances in which section 21(1) of FSMA does not apply us.

In the United Kingdom, this document is being distributed only to, and is directed at, persons (i) who have professional experience in matters relating to investments falling within Article 19(5) (investment professionals) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 ("FPO"), (ii) who fall within the categories of persons referred to in Article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the FPO or (iii) to whom it may otherwise be lawfully communicated (together "relevant persons"). The investments to which this document relates are available only to, and any invitation, offer or agreement to purchase will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

**LEGAL MATTERS**

The legality of shares of our common stock offered by this prospectus will be passed upon for us by Dorsey & Whitney LLP. K&L Gates LLP has acted as counsel for the underwriters in connection with certain legal matters related to this offering.

**EXPERTS**

The consolidated financial statements of FireFly Automatix, Inc. as of December 31, 2024 and 2023 and for the years then ended included in this prospectus have been audited by Baker Tilly US, LLP, an independent registered public accounting firm, as stated in their report (which report expresses an unqualified opinion and includes an explanatory paragraph relating to a going concern uncertainty), which is included herein. Such consolidated financial statements are included in reliance upon the report of such firm given their authority as experts in accounting and auditing.

**CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT**

**Appointment of Moss Adams**

On November 30, 2023, we dismissed Pinnacle Accountancy Group ("Pinnacle") as our principal accounting firm. The dismissal of Pinnacle was approved by our board of directors. Pinnacle did not provide a report on our financial statements for either of the past two years.

During the two prior fiscal years and the subsequent interim period through November 30, 2023, there were no disagreements between us and Pinnacle, nor were there any "reportable events" (as defined in Item 304(a)(1)(v) of Regulation S-K).

We provided to Pinnacle a copy of the statements made above. Attached as Exhibit 16.1 to the registration statement of which this prospectus forms a part is a letter from Pinnacle to the Securities and Exchange Commission, dated March 27, 2025, stating that they agree with these statements.

On November 30, 2023, we engaged Moss Adams LLP ("Moss Adams") to audit our consolidated financial statements as of and for the fiscal year ended December 31, 2023, in accordance with the standards of the Public Company Accounting Oversight Board. Moss Adams was also engaged to audit our consolidated financial statements as of and for the fiscal year ended December 31, 2024. The engagement of Moss Adams was approved by our board of directors.

During the prior two fiscal years and the subsequent interim period through November 30, 2023, neither we, nor anyone on our behalf, consulted with Moss Adams regarding: (i) either the application of accounting principles to a specified transaction, either completed or proposed or the type of audit opinion that might be rendered on our financial statements; or (ii) any matter that was either the subject of a "disagreement," as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions to that item, or a "reportable event," as described in Item 304(a)(1)(v) of Regulation S-K.

**Combination of Moss Adams and Baker Tilly**

On June 3, 2025, we were notified that Moss Adams, our independent registered public accounting firm, merged with Baker Tilly US, LLP effective on June 3, 2025. The combined audit practices operate as Baker Tilly US, LLP ("Baker Tilly"). In connection with the notification of the merger, Moss Adams has resigned as our auditors and the Audit Committee of our Board of Directors approved the appointment of Baker Tilly, as the successor to Moss Adams, as our independent registered public accounting firm.

The audit reports of Moss Adams on our consolidated financial statements for the years ended December 31, 2024 and 2023, and for each of the two years in the period ended December 31, 2024, did not contain an adverse opinion or a disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles. Moss Adams' audit report on the consolidated financial statements contained an explanatory paragraph regarding a going concern uncertainty.

During the years ended December 31, 2024 and 2023, and the subsequent interim period through June 3, 2025, there were no (a) disagreements with Moss Adams on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, if not resolved to Moss Adams' satisfaction, would have caused it to make reference to the subject matter of the disagreement in connection with its reports on our financial statements, or (b) reportable events requiring disclosure pursuant to Item 304(a)(1)(v) of Regulation S-K, other than the material weaknesses disclosed.

During the years ended December 31, 2024 and 2023, and the subsequent interim period through the date through June 3, 2025, neither we, nor anyone on our behalf, consulted with Baker Tilly regarding: (i) either the application of accounting principles to a specified transaction, either completed or proposed or the type of audit opinion that might be rendered on our financial statements; or (ii) any matter that was either the subject of a "disagreement," as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions to that item, or a "reportable event," as described in Item 304(a)(1)(v) of Regulation S-K.

We provided Moss Adams with a copy of this registration statement prior to its filing with the Securities and Exchange Commission (the "Commission") and requested that Moss Adams furnish us with a letter addressed to the Commission stating whether it agrees with the above statements and, if it does not agree, the respects in which it does not agree. Attached as Exhibit 16.2 to the registration statement of which this prospectus forms a part is a copy of Moss Adams' letter to the Commission, dated October 6, 2025.

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the shares of common stock offered by this prospectus. In this prospectus we refer to that registration statement, together with all amendments, exhibits and schedules to that registration statement, as "the registration statement."

As is permitted by the rules and regulations of the SEC, this prospectus, which is part of the registration statement, omits some information, exhibits, schedules and undertakings set forth in the registration statement. For further information with respect to us, and the securities offered by this prospectus, please refer to the registration statement.

Following the declaration of effectiveness of the registration statement on Form S-1, of which this prospectus forms a part, we will be required to file current, quarterly and annual reports, proxy statements and other information without charge with the SEC. The SEC maintains a web site at www.sec.gov that contains reports, proxy and information statements and other information regarding registrants that make electronic filings with the SEC using its EDGAR system. We also maintain a website at fireflyautomatix.com at which, following the closing of this offering, you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. Information contained 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.

**FIREFLY AUTOMATIX, INC**

**CONSOLIDATED FINANCIAL STATEMENTS**

**TABLE OF CONTENTS**

Consolidated Financial Statements (audited) as of and for the years ended December 31, 2024, and 2023

---

| | |
|:---|:---|
| [Report of Independent Registered Public Accounting Firm (PCAOB ID Number: 23)](#gok_001) | F-3 |
| [Consolidated Balance Sheets](#gok_002) | F-4 |
| [Consolidated Statements of Operations](#gok_003) | F-5 |
| [Consolidated Statements of Changes in Stockholders' Deficit](#gok_004) | F-6 |
| [Consolidated Statements of Cash Flows](#gok_005) | F-7 |
| [Notes to Consolidated Financial Statements](#gok_006) | F-8 |

---

Interim Condensed Consolidated Financial Statements (unaudited) as of and for the six months ended June 30, 2025, and 2024

---

| | |
|:---|:---|
| [Condensed Consolidated Balance Sheets](#sk_001) | F-29 |
| [Condensed Consolidated Statements of Operations](#sk_002) | F-30 |
| [Condensed Consolidated Statements of Changes in Stockholders' Deficit](#sk_003) | F-31 |
| [Condensed Consolidated Statements of Cash Flows](#sk_004) | F-32 |
| [Notes to Condensed Consolidated Financial Statements](#sk_005) | F-33 |

---

**FIREFLY AUTOMATIX, INC**

**CONSOLIDATED FINANCIAL STATEMENTS**

**(audited)**

**As of and for the years ended December 31, 2024, and 2023**

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and the Board of Directors of

FireFly Automatix, Inc. and Subsidiary

***Opinion on the Financial Statements***

We have audited the accompanying consolidated balance sheets of FireFly Automatix, Inc. and Subsidiary (the "Company") as of December 31, 2024 and 2023, the related consolidated statements of operations, changes in stockholder's deficit, and cash flows for the years then ended, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2024 and 2023, and the consolidated results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

***Going Concern Uncertainty***

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has suffered recurring losses from operations and cash used in operation that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

***Basis for Opinion***

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

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

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

/s/ Baker Tilly US, LLP

Denver, Colorado

April 23, 2025

We have served as the Company's auditor since 2023.

**FIREFLY AUTOMATIX, INC.**

**CONSOLIDATED BALANCE SHEETS**

**AS OF DECEMBER 31, 2024 and 2023**

**(in thousands, except shares)**

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| ASSETS |  |  |
| Current assets: |  |  |
| Cash | $2287 | $2689 |
| Restricted cash | 300 |  |
| Accounts receivable, net | 1351 | 922 |
| Inventory, net | 8566 | 7993 |
| Prepaid expenses | 640 | 308 |
| &nbsp;&nbsp;&nbsp;Total current assets | 13144 | 11912 |
| Property and equipment, net | 1972 | 1788 |
| Intangible assets, net | 696 | 781 |
| Right-of-use assets, operating leases | 4451 | 3529 |
| Right-of-use assets, finance leases | 881 | 949 |
| Other long-term assets | 141 | 141 |
| &nbsp;&nbsp;&nbsp;Total assets | $21285 | $19100 |
| LIABILITIES AND STOCKHOLDERS' DEFICIT |  |  |
| Current liabilities: |  |  |
| Accounts payable | $5245 | $4235 |
| Customer deposits | 1103 | 2542 |
| Notes payable, current portion | 302 | 360 |
| Accrued and other current liabilities | 2352 | 1686 |
| Lease liability, operating leases | 386 | 228 |
| Lease liability, finance leases | 154 | 94 |
| &nbsp;&nbsp;&nbsp;Total current liabilities | 9542 | 9145 |
| Non-current liabilities: |  |  |
| Notes payable, net of current portion | 427 | 383 |
| Convertible debentures payable (at fair value) | 38176 | 33018 |
| Common stock purchase warrants liability | 20013 | 16396 |
| Lease liability, operating leases net of current portion | 4597 | 3559 |
| Lease liability, finance leases net of current portion | 628 | 736 |
| Other liabilities | 3640 | 3902 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 77023 | 67139 |
| Commitments and contingencies (Note 18) |  |  |
| Stockholders' deficit: |  |  |
| Common stock, $0.001 par value, 40 million shares authorized; 13,131,701 and 12,351,267 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively. | 13 | 12 |
| Additional paid-in capital | 20654 | 14817 |
| Accumulated losses | (76405) | (62868) |
| &nbsp;&nbsp;&nbsp;Total stockholders' deficit | (55738) | (48039) |
| &nbsp;&nbsp;&nbsp;Total liabilities and stockholders' deficit | $21285 | $19100 |

---

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

**FIREFLY AUTOMATIX, INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**FOR THE YEARS ENDED DECEMBER 31, 2024 and 2023**

**(in thousands, except shares)**

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Revenues, net | $42477 | $41496 |
| Cost of revenues | 32282 | 31997 |
| Gross profit | 10195 | 9499 |
| Operating expenses: |  |  |
| Selling, general and administrative | 11443 | 8942 |
| Research and development | 4293 | 4939 |
| Total operating expenses | 15736 | 13881 |
| Loss from operations | (5541) | (4382) |
| Other (expense) income: |  |  |
| Interest income | 25 | 35 |
| Interest expense | (235) | (383) |
| Change in fair value of convertible debentures | (4158) | 727 |
| Change in fair value of warrant liability | (3616) | (3305) |
| Other income | 10 | - |
| Total other expense | (7974) | (2926) |
| Loss from operations before income taxes | (13515) | (7308) |
| Provision for income taxes | 22 | 75 |
| Net loss | (13537) | (7383) |
| Net loss per share attributable to common stockholders: |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $(0.99) | $(0.57) |
| &nbsp;&nbsp;&nbsp;Diluted | $(0.99) | $(0.57) |
| Weighted average common shares: |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 13699300 | 13031044 |
| &nbsp;&nbsp;&nbsp;Diluted | 13699300 | 13031044 |

---

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

**FIREFLY AUTOMATIX, INC.**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT**

**FOR THE YEARS ENDED DECEMBER 31, 2024 and 2023**

**(in thousands)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated**<br>**Losses** | **Total<br> Stockholders'**<br>**Deficit** |
| **Balance, December 31, 2022** | **12074** | $**12** | $**12099** | $**(55485)** | $**(43374)** |
| Issuance of common stock for cash | 272 | 0 | 1550 |  | 1550 |
| Stock compensation |  |  | 1153 |  | 1153 |
| Exercised employee stock options | 5 | 0 | 15 |  | 15 |
| Net loss | - | - | - | (7383) | (7383) |
| **Balance, December 31, 2023** | **12351** | $**12** | $**14817** | $**(62868)** | $**(48039)** |
| Issuance of common stock for cash | 780 | 1 | 4491 |  | 4492 |
| Stock compensation |  |  | 1346 |  | 1346 |
| Net loss | - | - | - | (13537) | (13537) |
|  | <u> </u> |  |  |  |  |
| **Balance, December 31, 2024** | **13131** | $**13** | $**20654** | $**(76405)** | $**(55738)** |

---

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

**FIREFLY AUTOMATIX, INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**FOR THE YEARS ENDED DECEMBER 31, 2024 and 2023**

**(in thousands)**

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(13537) | $(7383) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of convertible debentures | 4158 | (727) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of the common stock purchase warrant liability | 3616 | 3305 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of right-of-use asset | 509 | 669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 672 | 668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock compensation | 1346 | 1153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory write-down | 24 | 1296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bad debt expense | 20 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Abandonment of patents |  | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | (449) | 599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory, net | (698) | (688) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | (328) | (169) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 1011 | (2200) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer deposits | (1440) | 481 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued and other current liabilities | 666 | (746) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued employee retention credit refund |  | 2369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liability | (395) | (461) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (4825) | (1780) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | (465) | (126) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of intangible assets | (76) | (141) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposition of assets | 49 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (492) | (267) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from convertible notes | 1000 | 1985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from notes payable | 420 | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of notes payable | (433) | (432) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock | 4492 | 1565 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (264) | 377 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 5215 | 3549 |
| Net change in Cash and Restricted cash | (102) | 1502 |
| Cash and Restricted cash, beginning of period | 2689 | 1187 |
| Cash and Restricted cash, end of period | $2587 | $2689 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $231 | $1593 |
| &nbsp;&nbsp;&nbsp;Cash paid for taxes | $74 | $32 |
| &nbsp;&nbsp;&nbsp;ROU asset obtained in exchange for operating lease | $1439 | $3691 |
| &nbsp;&nbsp;&nbsp;ROU Asset obtained in exchange for finance leases | $104 | $667 |
| &nbsp;&nbsp;&nbsp;Fair values of warrants issued with convertible debentures | $2987 | $1014 |

---

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

**FIREFLY AUTOMATIX, INC**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**1.** **ORGANIZATION AND NATURE OF OPERATIONS** 

Since its launch in January 2010, FireFly Automatix, Inc., a Delaware corporation (the "Company", "FireFly", "we" or "us"), is a technology leader in the turfgrass industry as a firm that designs, manufactures, sells and supports precision automated turf harvesters ("PATH"), autonomous mowers ("AMP"), aftermarket parts and service. FireFly has expanded its turfgrass expertise with operations in Europe, the Asia Pacific region, and South America.

FireFly began emerging as an AgTech innovator in late 2023 with its introduction of the Company's autonomous mowing platform, which we began marketing and selling in 2024. This industrial, self-driving, autonomous electric mower is FireFly's first solution specifically designed for the unique requirements of the golf course, sports field, government, real estate, and turfgrass industries. With AMP's approach in what can be termed the autonomous electric vehicle (AEV) realm, FireFly is ideally situated to provide a unique mowing approach that is both environmentally sound and business friendly. As such, the AMP is FireFly's first AEV offering that specifically targets the demanding needs of these new target markets noted above.

With a foundation of 14-plus years in business, FireFly is dedicated to becoming a global AgTech innovator, one determined to protect our position as the premier technology supplier to turfgrass producers worldwide, while also extending our impact into the broader opportunities outlined above.

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

**Basis of Presentation**

We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

The Company's consolidated financial statements are prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of obligations in the normal course of business. Continuation as a going concern is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to meet its financial requirements, raise additional capital, and the success of its future operations.

Under the rules of ASC Subtopic 205-40 "Presentation of Financial Statements-Going Concern" ("ASC 205-40"), the Company is required to evaluate whether conditions and/or events raise substantial doubt about its ability to meet its future financial obligations as they become due within one year after the date that these consolidated financial statements are issued or available to be issued. This evaluation takes into account the Company's current available cash and projected cash needs over the one-year evaluation period but may not consider things beyond its control.

The Company has experienced operating losses due primarily to research and development expense related to the design, testing, and manufacturing of the Company's new AMPs, used cash from operations, and relied on the capital raised from friends, family and related parties and institutional financing to continue ongoing operations. We may or may not be able to raise additional capital or obtain additional institutional financing due to future economic conditions. In particular, the lending criteria are currently tightening in the United States, and we have experienced a decline in demand for our turf harvester products, due to continuing declines in the new housing market and higher interest rates. These factors, when considered in the aggregate, raise substantial doubt about the Company's ability to continue as a going concern within one year of the date these consolidated financial statements are issued. In response to these conditions, the Company's management has prepared the following financing plan:

Management considers the conditions outlined above as the most significant factors in raising substantial doubt about the Company's ability to continue as a going concern within one year after the date the consolidated financial statements are available to be issued. Management's mitigating plans include: (1) raising additional liquidity through an equity raise in the public capital markets or through friends and family, (2) evaluating operating expenses and developing a plan to reduce expenditures without negatively impacting current operations, (3) placing a strategic focus on increasing sales with prime precision automated turf harvester customers and selling our AMPs to private and public golf courses and sports field parks and (4) making strategic price increases on both our PATH machines and AMPs. No assurances can be given that we will be successful raising funds through an initial public offering or through friends and family and that we will be successful in reducing operating expenses or increasing the machine sales with increased prices.

Over the next twelve months, we expect to finance our operations with operating revenue from our operations, short-term debt financing, and the proceeds from this offering. Our significant projected cash commitments relate primarily to debt service and operating expenses. These debt service and operating expenses include the convertible debentures, notes payable and lease obligations payable. The notes payable and lease obligations payable require monthly cash payments. We anticipate the cash required to service our debt (including notes payable and lease obligations) to be between $765 to $1,175. This assumes (1) the interest on the convertible debentures will continue to be accreted to the debentures' principal outstanding and not paid in cash, and (2) the debentures will be converted into shares of the Company's commons stock at the respective maturities (January 2027).

In the event the projected results do not occur, we may have to significantly delay, scale back or discontinue the development and commercialization of one or more product offerings and other strategic initiatives. Additionally, we would reduce the number of new hires planned in 2025, and implement cost reduction measures such as a reduction in headcount, reducing the planned sales, marketing, research and development expenses among other cost reduction measures.

In September 2022, the Company formed FireFly Automatix, Limited as a wholly-owned subsidiary and incorporated in the United Kingdom. The Company anticipated opening a satellite office and a warehouse for replacement parts, which has not yet fully happened. The minimal operations are considered insignificant.

**Accounting Estimates**

We prepare our consolidated financial statements in accordance with U.S. GAAP, which requires management to use its judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These assumptions and estimates could have a material effect on our consolidated financial statements. Actual results may differ materially from those estimates. We review our estimates on an ongoing basis based on information currently available, and changes in facts and circumstances may cause us to revise these estimates. The most significant estimates and assumptions included useful lives of property and equipment, collectability of our accounts receivable, inventory valuation and income taxes, including the valuation allowance for deferred tax assets and assessment of uncertain tax positions, the fair value of the convertible debentures and common stock purchase warrants.

**Cash and Restricted Cash**

Cash and restricted cash primarily consists of cash, demand and savings deposits which are highly liquid. In May 2024, the Company pledged a certificate of deposit to our bank; which in turn, issued a $300 irrevocable standby letter in favor of a bank that was financing a machine purchase for one of our customers. The certificate of deposit matures on May 16, 2025, and has a 3.84% interest rate. The irrevocable standby letter of credit was released in March 2025, as the customer secured alternative financing from a different financial institution.

The following table summarizes the cash and restricted cash (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2023** |
| Cash | 2287 | 2689 |
| Restricted cash | 300 | - |
| Cash and restricted cash | $2587 | $2689 |

---

**Fair Value of Financial Instruments**

The Company records the fair value of assets and liabilities in accordance with ASC 820. ASC 820 defines fair value as the price received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.

In addition to defining fair value, ASC 820 prescribes the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels, which is determined by the lowest level input that is significant to the fair value measurement in its entirety. The three broad levels of the fair value hierarchy are as follows:

---

| | |
|:---|:---|
| Level 1 – | Quoted prices (unadjusted) 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 for the asset or liability, either directly or indirectly, |
| Level 3 – | Unobservable inputs for which little or no market data exists, therefore requiring a company to develop its own assumptions. |

---

The carrying amounts of certain financial instruments, such as cash and cash equivalents, accounts receivable, inventory, prepaid expenses, accounts payable and customer deposits approximate fair value due to their relatively short maturities.

The following table summarizes the carrying amount and estimated fair value of the convertible debentures and the common stock purchase warrants (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | | | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** |
|  | **Carrying**<br>**Value** | **Fair**<br>**Value** | **Level 1** | **Level 2** | **Level 3** |
| 11% debenture dated July 17, 2019 | $25439 | $25439 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $25439 |
| 11% debenture dated April 20, 2020 | $2740 | $2740 | $- | $- | $2740 |
| 11% debenture dated September 4, 2020 | $2477 | $2477 | $- | $- | $2477 |
| 11% debenture dated January 13, 2022 | $3671 | $3671 | $- | $- | $3671 |
| 15% debenture dated January 19, 2023 | $2674 | $2674 | $- | $- | $2674 |
| 15% debenture dated July 25, 2024 | $1175 | $1175 | $- | $- | $1175 |
| Warrant dated July 17, 2019 | $9049 | $9049 | $- | $- | $9049 |
| Warrant dated April 20, 2020 | $1298 | $1298 | $- | $- | $1298 |
| Warrant dated September 4, 2020 | $998 | $998 | $- | $- | $998 |
| Warrant dated January 13, 2022 | $3063 | $3063 | $- | $- | $3063 |
| Warrant dated January 19, 2023 | $2079 | $2079 | $- | $- | $2079 |
| Warrant dated July 25, 2024 | $3526 | $3526 | $- | $- | $3526 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of December 31, 2023** | **As of December 31, 2023** | **As of December 31, 2023** | **As of December 31, 2023** | **As of December 31, 2023** |
|  | | | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** |
|  | **Carrying**<br>**Value** | **Fair**<br>**Value** | **Level 1** | **Level 2** | **Level 3** |
| 11% debenture dated July 17, 2019 | $23275 | $23275 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $23275 |
| 11% debenture dated April 20, 2020 | $2444 | $2444 | $- | $- | $2444 |
| 11% debenture dated September 4, 2020 | $2196 | $2196 | $- | $- | $2196 |
| 11% debenture dated January 13, 2022 | $2881 | $2881 | $- | $- | $2881 |
| 11% debenture dated January 19, 2023 | $2222 | $2222 | $- | $- | $2222 |
| Warrant dated July 17, 2019 | $8995 | $8995 | $- | $- | $8995 |
| Warrant dated April 20, 2020 | $1305 | $1305 | $- | $- | $1305 |
| Warrant dated September 4, 2020 | $1008 | $1008 | $- | $- | $1008 |
| Warrant dated January 13, 2022 | $3031 | $3031 | $- | $- | $3031 |
| Warrant dated January 19, 2023 | $2057 | $2057 | $- | $- | $2057 |

---

The fair value of each convertible debenture and each common stock purchase warrant is comprised of a single financial liability in which the Company elected the fair value option under ASC 825, Financial Instruments ("ASC 825"), with changes in fair value recorded in gain/loss from changes in fair value in the consolidated statements of operations. The Company elected the fair value option due to its multiple conversions and redemption features required to be presented at fair value. The Company has also elected to not present interest expense separately from the changes in fair value of each convertible debenture measured at fair value.

The fair value of the convertible debentures was determined using a straight debt plus call option methodology. This is a hybrid methodology which includes a discounted cash flow analysis to fair value the debt component of the note and a Black-Scholes option pricing method to determine the fair value of any upside in excess of principal and accrued interest that may be available to holders upon conversion. The fair value of the common stock purchase warrants was determined using the Black-Scholes pricing model and observable market inputs including, risk free interest rates, historical and implied average volatility of a comparable companies publicly traded on recognized stock exchanges, and expected term and conversion probability assumptions.

The valuation utilized significant Level 3 unobservable inputs, including implied yield, volatility, and risk-adjusted discount rate. Other significant assumptions include risk-free rate, principal value, historical and implied average volatility of a comparable companies publicly traded on recognized stock exchanges, maturity date and the various conversion features and prices per the agreement. These liabilities are measured at fair value on a recurring basis and have unobservable inputs and are therefore categorized as Level 3. Significant judgment is required in selecting the significant inputs and assumptions. Actual assumptions may differ from our current estimates and such differences could materially impact fair value of the convertible debenture.

Convertible debentures and common stock purchase warrants classified as liabilities are recorded on the Company's consolidated balance sheets at their fair value on the date of issuance and are revalued on each subsequent balance sheet date until such instruments are exercised or expire. See Note 11 - *Convertible Debentures* and Note 12– *Common Stock Purchase Warrants* and for a summary of assumptions use in estimating the valuation.,

**Receivables, net**

We manage credit risk associated with our accounts receivables at the customer level. We believe the concentration of credit risk, with respect to our receivables, is limited because our customer base is comprised of a number of geographically diverse customers. We manage credit risk through credit approvals, based on prior purchasing history, pre-manufacturing deposits and payments collected before shipping, and other monitoring procedures. As of December 31, 2024 one customer represented 30% of the total account receivable balance. As of December 31, 2023 there were two customers representing 52% of the total account receivable balance.

Pursuant to Topic 326 for our accounts receivables, we maintain an allowance for credit losses that reflects our estimate of our expected credit losses. Our allowance is estimated using a loss rate model based on delinquency. The estimated loss rate is based on our historical experience with specific customers, our understanding of our current economic circumstances, reasonable and supportable forecasts, and our own judgment as to the likelihood of ultimate payment based upon available data. We believe our credit risk is somewhat mitigated by our geographically diverse customer base and our credit evaluation procedures. The actual rate of future credit losses, however, may not be similar to past experience. Our estimate of credit losses could change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease our allowance for credit losses. Based on management's evaluation, the balance in the allowance for credit losses as Of December 31, 2024 and 2023 was $26 and $6, respectively.

**Advertising Expenses**

The Company expenses advertising costs when incurred. Advertising costs include media placements, digital marketing, trade shows, promotional materials, and other marketing-related expenses. For the years ended December 31, 2024, and December 31, 2023, advertising expenses were $85 and $72, respectively. These amounts are included in selling, general, and administrative expenses (SG&A) in the accompanying statements of operations.

**Inventory**

Our inventory consists of purchased and fabricated parts, work in process, completed and used machines. Completed machines are PATH machines or AMPs that are waiting to be shipped. Used machines are generally turf harvesters we have purchased on the open market or taken in as a trade in.

Both the purchased and the fabricated parts can be sold directly to customers through our parts department to repair and maintain their machines. Those same purchased and fabricated parts are also consumed in the manufacturing and assembly of our PATH machines and AMPs. The inventory is valued at the lower of historic cost or net realizable value; where net realizable value is considered to be the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Historic inventory costs are calculated on a first-in-first-out basis or specific cost. The Company records inventory write-downs for excess or obsolete inventories based upon assumptions on current and future demand forecasts. The inventory write-down establishes a new cost basis for the individual inventoried items. For the years ending December 31, 2024 and 2023, the Company recorded inventory write-downs of $24 and $1,296, respectively.

**Employee Retention Credits**

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (The "CARES Act") was enacted to address the negative economic impact of the COVID-19 pandemic in the United States. The CARES Act included an Employee Retention Credit ("ERC"), a fully refundable tax credit for employers equal to fifty percent (50%) of qualified wages (including allocable qualified health plan expenses) that Eligible Employers pay their employees. The ERC applies to qualified wages paid after March 12, 2020, and before January 1, 2021.

In April 2021, the Company engaged a third-party consultant to assist in determining eligibility, gathering applicable data, calculating potential credits, and preparing analyses for the Company to amend its previously filed Form 941s in 2020 and 2021. In 2022, the Company received total cash refunds from the Internal Revenue Service (the "IRS") in the amount of $1,318 which were applicable to the 2020 payroll periods. In 2023, the Company received total cash refunds in the amount of $2,370 which were applicable to the 2021 payroll periods.

Subsequent to receiving the refunds, the IRS has been aggressively auditing ERC refunds, often disallowing them for noncompliance, and issuing additional guidance in some cases extending the statute of limitations for ERC audit periods. The current statute of limitations for our refund periods ranges from April 15, 2025 to April 15, 2027. The Company will continue to monitor the IRS published guidance and program changes. Included in other liabilities as of December 31, 2024 and 2023, is $3,645. See Note 10 – *Accrued and Other Current Liabilities and Other Liabilities*.

**Property and Equipment, net**

Our property and equipment are recorded at cost and depreciated using the straight-line over the estimated useful lives. Ordinary repair and maintenance costs are included in sales, general and administrative ("SG&A") expenses in the statements of operations. However, expenditures for additions or improvements that significantly extend the useful life of the asset are capitalized in the period incurred. At the time assets are sold or disposed of, the cost and accumulated depreciation are removed from their respective accounts and the related gains or losses are reflected in the statements of operations in gains from sales of property and equipment, net.

We periodically evaluate the appropriateness of remaining depreciable lives assigned to property and equipment. Generally, we assign the following estimated useful lives to these categories:

---

| | | |
|:---|:---|:---|
| **Category** | **Estimated**<br> **Useful Life** | **Estimated**<br> **Useful Life** |
| Software and computer equipment |  | 3 to 5 years |
| Furniture and fixtures |  | 5 to 7 years |
| Equipment |  | 7 to 10 years |
| Leasehold improvements |  | 6 to 11 years |

---

**Intangible Assets, net**

The Company has developed technologies resulting in patents being granted by the U.S. Patent and Trademark Office or other regulatory offices. Legal costs associated with securing the patents are capitalized and amortized over the useful life beginning on the patent date. The following table details the information for patents (*in thousands, except years*):

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2023** |
| Weighted average remaining amortization period (in years) | 14 | 14 |
| Cost | 1250 | 1174 |
| Less accumulated amortization | (554) | (393) |
| Net intangible assets | $696 | $781 |

---

Future amortization expense is as follows for the years ending December 31(*in thousands*):

---

| | |
|:---|:---|
| 2025 | $24 |
| 2026 | 24 |
| 2027 | 23 |
| 2028 | 22 |
| 2029 | 22 |
| Thereafter | 581 |
| Total | $696 |

---

Intangible asset amortization expense for the years ended December 31, 2024, and 2023, was $161 and $59, respectively.

**Impairment of Long-lived Assets**

Our long-lived assets principally consist of property and equipment, patents and right-of-use assets. We review, on a regular basis, our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In reviewing for impairment, the carrying value of such assets is compared to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition. If such cash flows are not sufficient to support the asset's recorded value, an impairment charge is recognized to reduce the carrying value of the asset to its estimated fair value. The determination of future cash flows involves significant estimates and judgment on the part of management. Our estimates and assumptions may prove to be inaccurate due to factors such as changes in economic conditions, changes in our business prospects or other changing circumstances. Based on our most recently completed reviews, there were no indications of impairment associated with our long-lived assets.

**Income Taxes**

The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred income taxes are provided for temporary differences between the financial reporting basis and tax basis of the Company's assets and liabilities and are tax-effected using enacted tax rates in effect for the year in which the temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in operations in the period that includes the enactment date.

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

The Company records uncertain tax positions on the basis of a two-step process whereby (1) the Company determines whether it is more-likely-than-not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.

**Leases**

Our lease portfolio is comprised of operating leases related to our warehouse and corporate headquarters and financing leases for delivery vehicles, trailers, equipment and machinery used in the manufacturing process.

We determine whether an arrangement is a lease at the inception of the arrangement based on the terms and conditions in the contract. A contract contains a lease if there is an identified asset, and we have the right to control the asset for a period of time in exchange for consideration. Lease arrangements can take several forms. Some arrangements are clearly within the scope of lease accounting, such as a real estate contract that provides an explicit contractual right to use a building for a specified period of time in exchange for consideration. However, the right to use an asset can also be conveyed through arrangements that are not leases in form, such as leases embedded within service and supply contracts. We analyze all arrangements with potential embedded leases to determine if an identified asset is present, if substantive substitution rights are present, and if the arrangement provides the customer control of the asset.

Operating and finance lease right-of-use ("ROU") assets represent our right to use an individual asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating and finance lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As some of our leases do not provide the lessor's implicit rate, we use our incremental borrowing rate ("IBR") at the commencement date in determining the present value of lease payments by utilizing a fully collateralized rate for a fully amortizing loan with the same term as the lease.

Lease terms include options to extend the lease when it is reasonably certain those options will be exercised. For leases with terms greater than 12 months, we record the related asset and obligation at the present value of lease payments over the term. Our leases can include rental escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments when such renewal options and/or termination options are reasonably certain of exercise.

A ROU asset is subject to the same impairment guidance as assets categorized as property and equipment. As such, any impairment loss on ROU assets is presented in the same manner as an impairment loss recognized on other long-lived assets.

A lease modification is a change to the terms and conditions of a contract that changes the scope or consideration of a lease. For example, a change to the terms and conditions to the contract that adds or terminates the right to use one or more underlying assets, or extends or shortens the contractual lease term, is a modification. Depending on facts and circumstances, a lease modification may be accounted for as either: (1) the original lease plus the lease of a separate asset(s) or (2) a modified lease. A lease will be remeasured if there are changes to the lease contract that do not give rise to a separate lease.

**Net Loss Per Common Share**

Our basic loss per share calculation is computed based on the weighted-average number of common shares outstanding. Included in the basic weighted-average number of common shares outstanding are the share equivalents for the warrants with an exercise price of $0.01 (1,157,714 common shares for 2024 and 873,138 common shares for 2023). See discussion of warrants at *Note 10 – Common Stock Purchase Warrants*. Potentially dilutive securities for this calculation may consist of in-the-money outstanding stock options, warrants (which were assumed to have been exercised at the average market price of the common shares during the reporting period) and shares assumed converted for the convertible debentures. The treasury stock method is used to measure the dilutive impact of potentially dilutive securities.

Potential dilutive shares are excluded from diluted loss per share when their effect is anti-dilutive. When there is a net loss for a period, all potentially dilutive shares are anti-dilutive and are excluded from the calculation of diluted loss per share for that period. When we have net income for a period, we anticipate using the "if-converted" method to measure the dilutive impact of the convertible debentures.

The following table sets forth the calculations of basic and diluted loss per common share (*in thousands, except per share amounts*):

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023** |
| Net loss | $(13537) | $(7383) |
| Basic weighted-average number of common shares outstanding | 12541585 | 12157906 |
| Add: Weighted-average common shares attributable to Warrants with a $0.01 exercise price | 1157715 | 873138 |
| Total basic weighted-average common shares outstanding | 13699300 | 13031044 |
| Add: Dilutive effect of other equity instruments | - | - |
| Diluted weighted-average shares outstanding | 13699300 | 13031044 |
| Loss per common share - basic | $(0.99) | $(0.57) |
| Loss per common share - diluted | $(0.99) | $(0.57) |
| Excluded from diluted weighted-average shares outstanding: |  |  |
| Antidilutive shares | 13701262 | 12435989 |

---

**Product Limited Warranty Liability**

All of our products are covered by the FireFly Product Limited Warranty. Subject to certain limitations and exclusions, defects in material or workmanship are generally covered by a limited warranty for up to two years or 1,500 hours, whichever is first, for our AMPs, and one year or 1,000 hours, whichever is later up to two years, for our PATH machines. We also repair or replace certain products or parts found to be defective under normal use and service with an item of equivalent value during the warranty period. Our warranty program is integrated into our digital ecosystem for any maintenance or repairs needed. We quantify and record an estimate for warranty-related costs based on our actual historical claims experience and current repair costs. We adjust accruals as warranty claims data and historical experience warrant. Estimated costs of product warranties are recognized at the time of the sale. Warranty expense for parts and labor is reported as part of Product Support and Repair Expenses. The Company has accrued $424 and $430 as of December 31, 2024 and 2023, respectively, for future warranty work.

**Research and Development including Accounting for Software Development Costs**

Activities that qualify as research and development under ASC 730, Research and Development ("ASC 730") include: (i) laboratory research aimed at discovery of new knowledge; (ii) searching for applications of new research findings or other knowledge; (iii) conceptual formulation and design of possible product or process alternatives; (iv) testing in search for or evaluation of product or process alternatives; (v) modification of the formulation or design of a product or process: (vi) design, construction, and testing of preproduction prototypes and models; (vii) design of tools, jigs, molds, and dies involving new technology; (viii) design, construction, and operation of product that is not of a scale economically feasible to the entity for commercial production; (ix) engineering activity required to advance the design of a product to the point that it meets specific functional and economic requirements and is ready for manufacture; and (x) design and development of tools used to facilitate research and development or components of a product or process that are undergoing research and development activities. Costs related to research and development activities by the Company are expensed as incurred.

The Company accounts for autonomous mower software development costs in accordance with ASC 985-20, Software to Be Sold, Leased, or Marketed, as applicable. Software development costs are expensed as incurred until technological feasibility is established. We define technologically feasible as the creation of a working model which occurred late in the autonomous mower' life cycle. Once feasibility is determined, subsequent development costs are capitalized until the product is available for sale. These costs, if any, are amortized over the estimated economic life of the product, generally three to five years, using the greater of the ratio of current to future revenue or the straight-line method.

**Revenue Recognition**

We recognize revenue in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") standards - Topic 606 "Revenue from Contracts with Customers" ("Topic 606"). When entering into contracts with our customers, we review the following five steps of Topic 606:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Identify
 the contract with the customer.

ii. Identify
 the performance obligation.

iii. Determine
 the transaction price.

iv. Allocate
 the transaction price to the performance obligation.

v. Evaluate
 the satisfaction of the performance obligation.

We account for contracts with our customers, when we have approval and commitment from both parties, the rights of the parties are identified, payment terms are established, the contract has commercial substance and collectability of consideration is probable. The Company's contracts do not include variable consideration or a right of return.

Under Topic 606, we recognize revenue only when we satisfy a performance obligation by transferring a promised good or service to our customer. A good or service is considered transferred when the customer obtains control. The standard defines control as an entity's ability to direct the use of, and obtain substantially all of the remaining benefits from, an asset. We recognize revenue once control has passed to the customer. The following indicators are evaluated in determining when control has passed to the customer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. We
 have a right to a payment for the product or service.

ii. The
 customer has legal title to the product.

iii. We
 have transferred physical possession of the product to the customer.

iv. The
 customer has the risk and rewards of ownership of the product.

v. The
 customer has accepted the product.

The Company sets the transaction price for each revenue stream and it is documented prior to beginning the performance obligation. For machines and shipping, the transaction price is approved on a signed quote. For aftermarket parts and shipping, the transaction price is approved by the customer in advance. For service, the transaction price is approved with the service technician in the field before repair work is completed. The Company does not offer prompt payment discounts, volume discounts, rebates, pricing, based on an index or market, pricing based on a formula, price protection and price matching, nor any other type of renumeration to customers. We combine a market assessment approach with an internal pricing strategy to allocate the transaction price to performance obligations. The Company does not offer trade-in rights nor residual value guarantees.

*Revenue Recognition for Machines.* The Company manufactures and sells PATH machines, AMPs, and used machines ("Machines"). Revenues from the machine sales are recognized with the selling price to the customer recorded as revenues and the acquisition cost of the product recorded as cost of revenues. We recognize revenue from these transactions when control has passed to the customer and the performance obligations have been satisfied. For PATH machines, the customer generally arranges the shipping and takes control at the time of shipping. (FOB Shipping). For AMPs and used machines we typically deliver the machines using our internal resources. For the Machines we deliver, control is considered to have passed to the customer when the customer accepts the machine at their location. In some instances, for machines, the Company offers a "preferred partner discount" (price concession) off the manufacturer's suggested retail price ("MSRP"). The Company records revenue based on the manufacturer suggested retail price less the discount.

*Revenue Recognition for Parts*. The Company sells aftermarket and fabricated parts to support the growing population of Machines currently in operation world-wide. Revenues from the parts sales are recognized with the selling price to the customer recorded as revenues and the acquisition or fabricated cost of the product recorded as cost of revenues. We recognize revenue from these transactions when control has passed to the customer and the performance obligations have been satisfied. For parts, control is considered to have passed at the time of shipping (FOB Shipping) or at the time of delivery if used by the service technicians in performing the service activities (see below).

*Revenue Recognition for Shipping.* We are generally responsible shipping Machines (new and used) and parts sales. For machines (new and used), we can either deliver the machines using our employees or we contract with a third-party freight forwarder on behalf of our customers. We typically arrange the shipping of part sales usually via FedEx, UPS or depending on the size of the part, through a third-party freight forwarder. We recognize shipping revenue when control has passed to the customer and the performance obligations have been satisfied. Control is considered to have passed at the time the Machines or parts leave our facility (i.e., FOB Shipping), except for when we deliver the Machines. When we deliver the Machines, control is considered to have passed to the customer when the customer accepts the machine at their location.

*Revenue Recognition for Service*. The Company, through a team of trained technicians, provides services support the growing population of Machines. Revenues from service activities are recognized with the selling price to the customer recorded as revenues and the cost of the service (labor and/or parts) recorded as cost of revenues. We recognize revenue from these transactions when control has passed to the customer and the performance obligations have been satisfied. For service activities, control is considered to have passed at the time the technician has completed the contracted work.

*Revenue Recognition for Software Subscriptions*. Each of our precision automated turf harvester is accompanied with a software license. In addition to the software license, each AMP also requires an annual software subscription agreement which provides for annual software upgrades among other things. things. For the software license, Control is considered to have passed to the customer when the software license has been delivered and accepted by the customer and the performance obligations have been satisfied. The software license is included in the price of the precision automated turf harvester. The AMP software subscription revenues are billed in advance and revenue is recognized over the subscription period (generally 12 months). Control is considered to pass to the customer and the performance obligation is considered satisfied with the passage of time. Amounts collected in advance for software subscriptions are recorded as contract labilities in the balance sheet and recognized as revenue ratably over the contractual service period. Included in Accrued and other current liabilities is $76 and $9 as of December 31, 2024 and 2023, respectively. See Note 10 *- Accrued and other current liabilities and other liabilities.*

**Sales Taxes**

The Company accrues sales taxes based on determination of which of its products/services are subject to sales tax, and in which states and jurisdictions the tax applies. Sales tax is not included in the sales price/revenue. Further, the Company must determine which of its customers are exempt from the Company charging sales tax because the customer is a reseller or self-assesses and direct pays to states and other jurisdictions on purchases the customer makes from the Company. These determinations contain estimates and are subject to judgment and interpretation by the Company and respective taxing authorities in various states and other jurisdictions, which could result in recognizing materially different amounts in future periods. Periodically, the Company is subject to individual state sales tax audits.

Included in accrued and other current liabilities as of December 31, 2024 and 2023, is $876 and $583, respectively, of accrued sales taxes payable.

**Segment Reporting**

In accordance with ASC 280 – "Segment Reporting" Topic of the ASC, the Company's Chief Executive Officer ("CEO") has been identified as the chief operating decision maker ("CODM"). The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating the Company's financial performance.

Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. The Company has determined that it operates as a single reportable segment under the guidance of ASC 280, Segment Reporting. This conclusion is based on the fact that all material operations share a common customer base, as well as similar economic characteristics, and are aligned in the nature of products and services, and procurement, manufacturing, and distribution processes.

**Stock-Based Compensation**

The Company maintains an employee stock-based compensation plan, which is described more fully in *Note 14, Stock Based Compensation*. Stock-based compensation represents the cost related to stock-based awards granted to employees and directors. The Company measures stock-based compensation cost at grant-date, based on the fair value of the award, and recognizes the cost as expense on a straight-line basis over the option's requisite service period. Forfeitures are recognized as they occur.

The fair value of common stock options granted is estimated on the date of issuance using the Black-Scholes option pricing model, which requires the input of subjective assumptions, including the expected term of the options, expected stock price volatility, and expected dividends. Expected volatilities used in the valuation model are based on the average volatility of the comparable companies publicly traded on recognized stock exchanges. The risk-free rate for the expected term of the option is based on the United States Treasury yield curve in effect at the time of grant.

The Company estimates the fair value of stock-based awards using a Black-Scholes valuation model. Stock-based compensation expense is recorded in cost of revenue, research and development expense and selling, general and administrative expenses in the statements of operations based on the employees' respective function.

**Customer Deposits**

At the time we accept a machine order from a customer, a cash deposit is required prior to beginning manufacturing. The deposit is generally ten percent of the contract price. When the machine is completed and invoiced, the deposit is applied to the invoice amount.

**Concentration of Credit and Supplier Risk**

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash deposits and trade accounts receivable. Credit risk can be negatively impacted by adverse changes in the economy or by disruptions in the credit markets.

The Company maintains its cash in bank deposit accounts which, at times, may exceed the Federal Deposit Insurance Corporation ("FDIC") limits. If a financial institution were unable to perform its obligations, the Company would be at risk regarding the amounts in excess of the FDIC limits. As of December 31, 2024 and 2023, the amount in excess of federally insured limits was $1,674 and $1,917, respectively

We maintain our cash deposits with established commercial banks. We have not experienced any losses in such accounts and do not believe that we are exposed to any significant credit risk associated with our cash deposits.

We believe that credit risk with respect to trade accounts receivable is somewhat mitigated by our large number of geographically diverse customers and our credit evaluation procedures. We record trade accounts receivables at sales value and establish specific reserves for certain customer accounts identified as known collection problems due to insolvency, disputes or other collection issues. The amounts of the specific reserves estimated by management are determined by a loss rate model based on delinquency. We maintain reserves for potential losses. For each of the years ended December 31, 2024, and 2023, no one customer accounted for more than 10% of our revenues.

The Company issues purchase orders based on quoted prices and terms with suppliers. During the year ended December 31, 2024, and 2023, no one supplier accounted for more than 10% of our purchases.

**401(k) Retirement Plan**

The Company offers employees a 401(k) retirement plan in partnership with and through Silicone Valley Commons 401(k) Plan ("Plan"). Employees are eligible to participate and make contributions on the first or any month after one month of service has been completed. Employees can make traditional (pre-tax) and /or Roth (after-tax) contribution to the Plan. An employee may make a contribution ranging from 1% to 100% of compensation by payroll deduction, up to the annual IRS contribution limit. The Plan allows for discretionary employer contributions. The Company has not made any discretionary contributions in 2024 and 2023. Employee contributions are 100% vested immediately. Employees may withdraw money for their account upon reaching the age of 59 ½ or older, death or disability, or separation from employment.

**Recent Accounting Pronouncements** 

*Recently Adopted*

In 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands the segment reporting disclosures and requires disclosure of segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss, amounts and description of its composition for other segment items, and interim disclosure of a reportable segment's profit or loss and assets. Additionally, the amendments require the disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing performance and deciding how to allocate resources. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis. Early adoption is permitted. The Company adopted ASU 2023-07 during the year ended December 31, 2024. See Note 15 *- Segments* for further detail.

*Not Yet Adopted*

In December 2023, the FASB issued Accounting Standards Update 2023-09 - Income Taxes (Topic ASC 740) Income Taxes. The ASU improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments in ASU 2023-09 will become effective with our December 31, 2026, consolidated financial statements. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance.

In March 2024, the FASB issued ASU 2024-02" Codification Improvements-Amendments to Remove References to the Concepts Statements", which removes various references to concepts statements from the FASB Accounting Standards Codification. This ASU is effective for the Company beginning in the first quarter of fiscal year 2026, with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements and intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2026.

In March 2024, the FASB issued ASU 2024-01, Compensation-Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards. This update clarifies the scope of "Profit Interest" and similar awards and adds an illustrative example to the existing ASC 718 standard that includes four fact patterns to demonstrate how an entity should apply the scope guidance in paragraph 718-10-15-3 to determine whether a profits interest award should be accounted for in accordance with Topic 718. The amendments in this ASU are effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. Early adoption is permitted for interim and annual financial statements not yet issued or made available for issuance. The amendments in this ASU should be applied either (1) retrospectively to all prior periods presented in the financial statements or prospectively to profits interest and similar awards granted or (2) modified on or after the date at which the entity first applies the amendments. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements and disclosures.

In November 2024, the Financial Account Standards Board (FASB), issued Accounting Standards Update (ASU) 2024-04, Debt-Debt with Conversions and Other Option. ASU 2024-04 is intended to clarify requirements for determining whether certain settlements of convertible debt instruments, including convertible debt instruments with cash conversion features or convertible debt instruments that are not currently convertible, should be accounted for as an induced conversion. This ASU is effective for all entities for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on its disclosures.

In November 2024, the FASB issued Accounting Standards Update No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03"), and in January 2025, the FASB issued Accounting Standards Update No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date ("ASU 2025-01"). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for us for our annual reporting for fiscal 2028 and for interim period reporting beginning in fiscal 2029 on a prospective basis. Both early adoption and retrospective application are permitted. The Company is currently evaluating the impact that the adoption of these standards will have on its consolidated financial statements and disclosures.

**3.** **RECEIVABLES, NET** 

Receivable and allowance for credit losses consisted of the following as of December 31 (*in thousands*):

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Trade accounts receivable | $1377 | $928 |
| Less allowance for credit losses | (26) | (6) |
| Total accounts receivable, net | $1351 | $922 |

---

Accounts receivable as of December 31, 2024, and 2023 are primarily made up of trade receivables due from customers in the ordinary course of business. One customer accounted for 52% of the balance of accounts receivable as of December 31, 2024, and three customers accounted for more than 70% of the accounts receivable balance as of December 31, 2023. The balance was collected in January 2025. The accounts receivable balance as of January 1, 2023, was $1,527.

**4.** **INVENTORY** 

The following summarizes inventory as of December 31 (*in thousands*):

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Purchased and fabricated parts | $6252 | $5354 |
| Work in process | 1285 | 609 |
| Completed machines | 164 | 497 |
| Used machines | 865 | 1533 |
| Total inventory | $8566 | $7993 |

---

**5.** **PROPERTY AND EQUIPMENT, NET** 

The following summarizes property and equipment as of December 31 (*in thousands*):

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Machinery equipment | $3039 | $2630 |
| Vehicles | 1143 | 1078 |
| Furniture and fixtures | 26 | 26 |
| Computer equipment | 291 | 276 |
| Leasehold improvement | 308 | 308 |
|  | 4807 | 4318 |
| Less accumulated depreciation | (2835) | (2530) |
| Total Property and equipment, net | $1972 | $1788 |

---

Property and equipment depreciation expense for the years ended December 31, 2024, and 2023, was $511 and $609, respectively.

**6.** **REVENUES** 

Revenue is recognized when control of the promised good or service is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We recognize revenue at a point in time, except for the software subscription revenue, which is recognized over time, as the performance obligation is satisfied when a customer obtains control of the product upon title transfer and not as the machines or replacement parts are manufactured.

The following table provides information about disaggregated revenue based on the preceding categories (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Machines | $31589 | $32465 |
| Parts | 8358 | 6922 |
| Shipping | 1817 | 1606 |
| Service | 652 | 475 |
| Software subscription | 51 | 21 |
| Other | 10 | 7 |
| Total revenues | $42477 | $41496 |

---

Our contract balances include deferred revenue and our liability for product warranty services. We do not have contract assets. We have not identified any material costs incurred associated with our revenue channels above which would meet the criteria to be capitalized, therefore, these costs are expensed as incurred.

The following table presents the contract liabilities recorded on the balance sheet as of December 3, 2024 and 2023 (*in thousands*):

---

| | | | |
|:---|:---|:---|:---|
|  | **Balance Sheet Classification** | **2024** | **2023** |
| Limited product warranty liability | Accrued and other current liabilities | $424 | 430 |
| Deferred revenue – software subscriptions | Accrued and other current liabilities | 76 | 9 |

---

During the years ended December 31, 2024 and 2023, we recognized $51 and $9, respectively, of revenue related to amounts that were previously included in deferred revenue at the beginning of the period. Deferred revenue fluctuates over time due to changes in the timing of payments received from customers and revenue recognized for services provided.

**7.** **CUSTOMER DEPOSITS** 

Customer deposits are advance payments from customers prior to manufacturing and shipping the machines. The prepayment amounts and timing vary depending on the product to be manufactured and delivery location. The amounts recognized during the year relate to machines that were invoiced for which a ten percent deposit was previously received. New deposits received during year (typically 10% of the quoted price) relate to machines prior to beginning manufacturing or shipping. Customer deposits are included in current liabilities until the balance is applied to an order at the time of invoicing.

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Beginning balance | $2542 | $2061 |
| Less amounts recognized during the year | (30010) | (32916) |
| New deposits during the year | 28571 | 33397 |
| Total customer deposits | $1103 | $2542 |

---

**8.** **NOTES PAYABLE** 

Notes payable consisted of borrowings for manufacturing equipment and delivery trucks and trailers. The following table summarizes the notes payable as of the following as of December 31 (*in thousands*):

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Note payable – US Bank | $235 | 394 |
| Note payable - Ford | 374 | 231 |
| Note payable - Other | 120 | 118 |
|  | 729 | 743 |
| Less current portion | (302) | (360) |
| Long-term portion | $427 | 383 |

---

Future maturities of notes payable are as follows for the years ending December 31(*in thousands*):

---

| | |
|:---|:---|
| 2025 | $302 |
| 2026 | 184 |
| 2027 | 93 |
| 2028 | 82 |
| 2029 | 68 |
| Total | $729 |

---

**9.** **LEASES** 

Lease activity for the years ended December 31, 2024 and December 31, 2023 were as follows (*in thousands*):

---

| | | |
|:---|:---|:---|
|  | **Operating<br> Lease** | **Finance<br> Leases** |
| **As of December 31, 2022** | $**435** | $**284** |
| Amortization | (339) | (122) |
| Additional lease | 3691 | 668 |
| **As of December 31, 2023** | $**3787** | $**830** |
| Amortization | (243) | (152) |
| New lease | 1439 | 104 |
| **As of December 31, 2024** | $**4983** | $**782** |

---

Maturities of lease liabilities are as follows (*in thousands*):

---

| | | | |
|:---|:---|:---|:---|
| **Year ending December 31,** | **Operating Lease**<br> **Liability** | **Finance Lease**<br> **Liability**  | **Total Lease**<br> **Liabilities** |
| 2025 | 1132 | 223 | 1355 |
| 2026 | 1172 | 223 | 1395 |
| 2027 | 1213 | 212 | 1425 |
| 2028 | 1255 | 125 | 1380 |
| 2029 | 1299 | 107 | 1406 |
| Thereafter | 1807 | 66 | 1873 |
| Total undiscounted cash flows | 7878 | 956 | 8834 |
| &nbsp;&nbsp;&nbsp;Less present value discount | (2895) | (174) | (3069) |
| Total lease liabilities | 4983 | 782 | 5765 |

---

Additional information related to leases is presented as follows:

---

| | | |
|:---|:---|:---|
| **December 31, 2024** | **Operating<br> Lease** | **Finance<br> Leases** |
| **Weighted average of remaining lease term** | 6.3 years | 7.7 years |
| Weighted average discount rate | 15.0% | 11.1% |

---

---

| | | |
|:---|:---|:---|
| **December 31, 2023** | **Operating<br> Lease** | **Finance<br> Leases** |
| Weighted average of remaining lease term | 7.3 years | 7.1 years |
| Weighted average discount rate | 15.0% | 8.0% |

---

**Operating Lease**

In January 2024, we extended our existing lease on a building in Salt Lake City, Utah. The base monthly lease payment through December 2024 was $65, $67 through December 2025, $70 through December 2026, $72 through December 2027, $75 through December 2028 and $77 through December 2029, $80 through December 2030, and $83 through April 2031. As of December 31, 2024, we had 76 months remaining on the lease.

In January 2024, we expanded our existing lease on a building in Salt Lake City, Utah. The base monthly lease payment through December 2024 was $26, $27 through December 2025, $28 through December 2026, $29 through December 2027, $30 through December 2028 and $31 through December 2029, $32 through December 2030, and $33 through April 2031. As of December 31, 2024, we had 76 months remaining on the lease.

We utilized our incremental borrowing rate in determining the present value of lease payments unless the implicit rate is readily determinable. For 2024 and 2023, we used an estimated incremental borrowing rate of 15% and 11% respectively, to determine the present value of the lease liability.

As of December 31, 2024 and 2023, the accumulated depreciation for the right of use asset was $2,165 and $1,804, respectively.

**Finance Leases**

The Company enters into finance leases arrangements for manufacturing equipment and certain delivery equipment. The term of the finance leases is typically 60 – 78 month terms with monthly payments. We utilized our incremental borrowing rate in determining the present value of lease payments unless the implicit rate is readily determinable. For the new finance leases in 2024, we used the implicit interest rate of 14% to 16% and 2023 finance leases we used the implicit interest rate of 8.5% to 10.5%., to determine the present value of the lease liability.

As of December 31, 2024 and 2023, the accumulated depreciation for the right of use asset was $559 and $434, respectively

Expenses associated with short term leases were $1,128 and $896 for the years ended December 31, 2024 and December 31, 2023, respectively

**10.** **ACCRUED AND OTHER CURRENT LIABILITIES and OTHER LIABILITIES** 

Accrued and other current liabilities and other liabilities consisted of the following as of December 31, 2024 and 2023 (*in thousands*):

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Employee retention credit ("ERC") refund | $3645 | $3645 |
| Accrued payroll | 444 | 225 |
| Sales tax payable | 876 | 583 |
| Limited product warranty liability | 424 | 430 |
| Deferred software subscription fees | 76 | 9 |
| Other | 527 | 696 |
|  | 5992 | 5588 |
| Less current portion | (2352) | (1686) |
| Total accrued and other current liabilities and other liabilities, net | $3640 | $3902 |

---

**11.** **CONVERTIBLE DEBENTURES** 

From July 2019 through July 2024, the Company issued six Secured Convertible Debentures (the "Debenture(s)") to certain funds (the "Funds") managed by ATW Partners (the "Holders"). The Debentures are secured (via certain security agreements) by security interests in certain property of the Company. Simultaneously with the execution of each Debenture, the Company issued Common Stock Purchase Warrants (the "Warrants") with each Holder. See Note 12 *– Common Stock Purchase Warrants*. The significant terms of each Debenture are summarized in the following table (*in thousands except shares and conversion price*):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Origination date | July 17, <br>2019 | April 20,<br> 2020 | September 4,<br> 2020 | January 13,<br> 2022 | January 19,<br> 2023 | July 25,<br> 2024 |
| Origination amount | $3800 | $750 | $750 | $3000 | $2000 | $1000 |
| Origination fees | $40 | $30 | $20 | $15 | $15 | - |
| Cash proceeds | $3760 | $720 | $730 | $2985 | $1985 | $1000 |
| Interest Rate | Cash pay at 11.00%; accreted at 14.00% | Cash pay at 11.00%; accreted at 14.00% | Cash pay at 11.00%; accreted at 14.00% | Cash pay at 11.00%; accreted at 14.00% | Cash pay at 15.00%; accreted at 15.00% | Cash pay at 15.00%; accreted at 15.00% |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Maturity date | January 31, <br> 2027 | January 31, <br> 2027 | January 31, <br> 2027 | January 31, <br> 2027 | January 31, <br> 2027 | January 31, <br> 2027 |
| Premium | $95 | $38 | $38 | $75 | $75 | $38 |
| Original Shares <br>(upon conversion) | 3392857 | 375000 | 340909 | 283554 | 346620 | 179617 |
| Conversion Price | $1.12 | $2.00 | $2.20 | $10.58 | $5.77 | $5.57 (i) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 conversion price is equal to the lower of (i) $5.5674 or (ii) 85% of the initial public offering
 price per share.

Any outstanding principal is due at maturity. Interest is payable on the Debentures issued on July 17, 2019, April 20, 2020 and September 4, 2020 quarterly on January 1, April 1, July 1, and October 1. Interest is payable on the Debentures issued on January 13, 2022, January 19, 2023 and July 25, 2024 on the first day of each calendar month. The applicable interest may be paid in cash or may be accreted to the principal amount of each Debenture at the election of the Company prior to certain dates, or at the option of the respective Holder thereafter. The respective Holders have elected to allow the Company to accrete the applicable interest.

The fair value of each convertible debenture is comprised of a single financial liability in which the Company elected the fair value option under ASC 825, Financial Instruments ("ASC 825"), with changes in fair value recorded in gain/loss from changes in fair value in the consolidated statements of operations. The Company elected the fair value option due its multiple conversions and redemption features required to be presented at fair value. The Company has also elected to not present interest expense separately from the changes in fair value of each convertible debenture measured at fair value.

Following is a summary of the change in fair value by debenture (*in thousands*) and shares of common stock issuable upon conversion:

Fair Value

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Debenture Issue Date** | **July 17, <br> 2019** | **April 20, <br> 2020** | **September 4,<br> 2020** | **January 13,<br> 2022** | **January 19,<br> 2023** | **July 25,<br> 2024** | **TOTAL** |
| **Balance January 1, 2023** | $**23802** | $**2285** | $**2227** | $**3431** | **-** | **-** | $**31745** |
| Debenture Issuance |  |  |  |  | 2000 |  | 2000 |
| Change in Fair Value | (527) | 159 | (31) | (550) | 222 | - | (727) |
| **Balance December 31, 2023** | **23275** | **2444** | **2196** | **2881** | **2222** | **-** | **33018** |
| Debenture Issuance |  |  |  |  |  | 1000 | 1000 |
| Change in Fair Value | 2164 | 296 | 281 | 790 | 452 | 175 | 4158 |
| **Balance December 31, 2024** | $**25439** | $**2740** | $**2477** | $**3671** | $**2674** | $**1175** | $**38176** |

---

On July 25, 2024 and January 19, 2023, the Company issued $1,000 and $2,000 in convertible debentures, respectively. At the time of issuance, the Company recorded the convertible debentures at their individual fair values, which was determined to equal the principal amount. The Company has elected to record the accreted interest in the change of fair value. For the years ending December 31, 2024 and 2023, the Company recorded $1,833 and $1,083, respectively, in capitalized interest.

As of December 31, 2024 and 2023, the outstanding principal plus accreted interest due to the Holders was $14,321 and $11,509, respectively.

Shares of common stock issuable upon conversion of Principal and Accreted Interest:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>**Debenture Issue Date** | **July 17,<br> 2019** | **April 20,<br> 2020** | **September 4,<br> 2020** | **January 13,<br> 2022** | **January 19,<br> 2023** | **July 25,<br> 2024** | **TOTAL** |
| **Balance January 1, 2023** | **3392857** | **375000** | **340909** | **293594** | **-** | **-** | **4402360** |
| Debenture Issuance |  |  |  |  | 346620 |  | 346620 |
| 2023 Accreted Interest | 244536 | 27027 | 24570 | 43846 | 41002 | - | 380981 |
| **Balance December 31, 2023** | **3637393** | **402027** | **365479** | **337440** | **387622** | **-** | **5129961** |
| Debenture Issuance |  |  |  |  |  | 179617 | 179617 |
| 2024 Accreted Interest | 550311 | 60824 | 55294 | 51062 | 63135 | 12316 | 792942 |
| **Balance December 31, 2024** | **4187704** | **462851** | **420773** | **388502** | **450757** | **191933** | **6102520** |

---

For each of the debentures issued on July 17, 2019, April 20, 2020 and September 4, 2020, the Company paid the interest in cash until June 30, 2023, at which time the interest began to be accreted to the principal outstanding.

**Significant Provisions of the Debentures**

The following table summarizes the significant provisions applicable to each individual Debenture:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| <br>**Debenture Issue Date** | **July 17,<br> 2019** | **April 20,<br> 2020** | **September 4,<br> 2020** | **January 13,<br> 2022** | **January 19,<br> 2023** | **July 25,<br> 2024** |
| Conversion | Y | Y | Y | Y | Y | Y |
| Optional Redemptions | Y | Y | Y | Y | Y | Y |
| Subsequent Equity Sales | Y | Y | Y | Y | Y | Y |
| Contingent Interest Escalation | Y | Y | Y |  |  |  |
| Monthly Redemption | Y | Y | Y |  |  |  |
| Forced Conversion | Y | Y | Y |  |  |  |
| Contingent extension warrants |  |  |  |  | Y | Y |
| Mandatory Redemption |  |  |  |  | Y | Y |

---

*Conversion Feature*. At any time after the original issue date until the Debenture is no longer outstanding, the Debenture shall be convertible, in whole or in part, into shares of the Company's common stock at the option of the Holder, at any time and from time to time, at the conversion price set forth in the table above.

*Optional Redemption at the Election of the Company*. The Company may deliver a notice to the Holder of its election to redeem some or all of the then outstanding principal amount of the Debenture for cash. For each of the Debentures issued on July 17, 2019, April 20, 2020, September 4, 2020, and January 13, 2022, the optional redemption amount is defined as 110% of outstanding principal, plus accrued but unpaid interest. In an optional redemption of the Debentures issued on July 17, 2019, April 20, 2020, September 4, 2020, and January 13, 2022, we would also be required to issue a warrant to purchase a number of shares of common stock equal to 50% of the shares that would have been issuable upon conversion of the principal amount redeemed. For the Debentures issued on January 19, 2023 and July 25, 2024, the optional redemption amount is 100% of the outstanding principal amount, plus accrued but unpaid interest.

*Subsequent Equity Sales (Dilutive Issuance)*. If while the Debenture is outstanding, the Company sells common stock at an effective price per share that is lower than the conversion price (shown in the significant terms table above) then the dilutive issuance the conversion price shall be reduced to equal the lower price. This right to reprice means a down round price adjustment may occur in the debenture due to a modification of the conversion price of a differently issued financial instrument. The Holders have waived such adjustments with respect to subsequent sales by the Company, such that no adjustments have been made to the Debentures pursuant to this provision.

*Contingent Interest Escalation*. For each of the Debentures issued on July 17, 2019, April 20, 2020, and September 4, 2020, in the event that the Company is not a public company by January 17, 2022, October 20, 2022, and March 4, 2022, respectively, the interest rate will increase by 6%. The Holders have waived this requirement and the Company has not made any increased interest payments pursuant to this provision.

*Monthly Redemption*. For each of the Debentures issued on July 17, 2019, April 20, 2020, and September 4, 2020, the Company shall redeem the monthly redemption amount in cash. The monthly redemption date and redemption amount for each of the three applicable Debentures is (*in thousands*):

---

| | | |
|:---|:---|:---|
| <br>**Debenture Issue Date** | <br>**Redemption Date** | **Monthly Redemption Amount** |
| July 17, 2019 | January 17, 2022, if the Public Company Date has not happened, otherwise August 17, 2022. | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;317 |
| April 20, 2020 | October 20, 2020, if the Public Company Date has not happened, otherwise May 20, 2023. | $125 |
| September 4, 2020 | March 4, 2023, if the Public Company Date has not happened, otherwise October 2023. | $63 |

---

In March 2025, the Holders waived this requirement and the Company has not made any monthly redemptions of the Debentures.

*Forced Conversion*: For each of the Debentures issued on July 17, 2019, April 20, 2020, and September 4, 2020, if the Company undertakes a public offering of its common stock which raises at least $20 million in gross proceeds at a valuation of at least $100 million, all principal amount of the Debenture plus all accrued but unpaid interest shall convert into common shares.

*Contingent Extension Warrants*. Should the Company elect to extend the maturity date of the Debenture issued on January 19, 2023 to January 19, 2026, the Company shall then issue a warrant entitling the Holder to purchase a number of shares of the common stock based on a contractually defined formula. The extension warrant shall have a term of 10 years and an exercise price equal to $0.01 per share. In July 2024, the Company elected to extend the maturity to January 19, 2026, accordingly, the Company issued 430,009, 10-year warrants with an exercise price of $0.01 per share.

Should the Company elect to extend the maturity date of the Debenture issued on July 25, 2024 to July 25, 2027, the Company shall then issue a warrant entitling the Holder to purchase a number of shares of the common stock based on a contractually defined formula. The extension warrant shall have a term of 10 years and an exercise price equal to $0.01 per share. On March 14, 2025, the Holders extended the Debenture maturity to January 31, 2027. The Holders have waived the contingent extension warrant requirement and the Company has not made any increased interest payments pursuant to this provision

*Mandatory Redemption*. Each of the Debentures issued on January 19, 2023 and July 25, 2024 contains a mandatory redemption provision stating that upon the consummation of a "Subsequent Financing," the Company shall use 50% of the gross proceeds of such Subsequent Financing to redeem principal outstanding on all Debentures.

"Subsequent Financing" is defined as any issuance by the Company of common stock for cash consideration, upon which each Holder shall have the right to participate in up to an amount of the Subsequent Financing equal to the greater of (i) an amount that allows a Holder to maintain the same percentage ownership and (ii) the lesser of (A) $5 million and (B) 100% of the Subsequent Financing on the same terms, as the Subsequent Financing.

In 2024 and 2023, the Company issued common stock in connection with two rounds of financing. The Holders have waived this requirement with respect to all previous financings and the Company has not made any mandatory redemptions of the Debentures.

Each Debenture is secured, by a security agreement, by the Company's assets including cash, inventory, machinery, equipment, motor vehicles, furniture, tools, fixtures, all contract rights, software, goodwill, and all intellectual property and intangible assets.

The Debentures include customary covenants and events of default. In an event of default, including a breach of covenants, the outstanding principal amount of the Debentures, plus accrued but unpaid interest, liquidated damages, and other amounts owed, will become, at the Holder's election, immediately due and payable in cash. Such amount payable in an event of default would also include a premium on the outstanding principal amount. While the Company has not satisfied certain minimum cash flow covenants, the Holders of the Debentures have waived such covenants and agreed that no event of default has been triggered under the Debentures.

**12.** **COMMON STOCK PURCHASE WARRANTS** 

From July 2019 through July 2024, and in connection with the issuance of the Debentures, the Company also issued the Warrants to the Holders. See Note 11 *– Convertible Debentures*. The significant terms of each Warrant are summarized in the following table (in thousands except shares and conversion price):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Warrant date | July 17,<br> 2019 | April 20, 2020 | September 4, 2020 | January 13, 2022 | January 19, 2023 | July 11, 2024 | July 25, 2024 |
| Initial exercise date | July 17,<br> 2019 | April 20, 2020 | September 4, 2020 | January 13, 2022 | January 19, 2023 | July 11, 2024 | July 25,<br> 2024 |
| Common stock shares | 1900000 | 321250 | 255682 | 531427 | 360475 | 430099 | 181861 |
| Term | 8 years | 8 years | 8 years | 10 years | 10 years | 10 years | 10 years |
| Exercise price | $1.12 | $2.00 | $2.20 | $0.01 | $0.01 | $0.01 | $0.01 |

---

The Company evaluated all common stock purchase warrants in accordance with the guidance provided under ASC 480, "Distinguishing Liabilities from Equity" and ASC 815, "Derivatives and Hedging", and determined the appropriate classification as either equity or liability. The Company determined the common stock purchase warrants met the definition of a derivative and did not qualify for equity classification under ASC 815-40 and are therefore accounted for as liabilities, with changes in fair value recognized in the statement of operations each reporting period.

The fair value of each common stock purchase warrant is comprised of a single financial liability with changes in fair value recorded in gain/loss from changes in fair value in the consolidated statements of operations. The Company elected the fair value option due its multiple conversions and redemption features required to be presented at fair value. The fair value of the common stock purchase warrants was determined using the Black-Scholes pricing model and observable market inputs including, risk free interest rates, historical and implied average volatility of a comparable companies publicly traded on recognized stock exchanges, and expected term and conversion probability assumptions.

The following table summarizes the assumptions used to fair value the common stock purchase warrants at issuance:

---

| | | |
|:---|:---|:---|
| **Assumption** | **2024** | **2023** |
| Term (years) | 10 | 10 |
| Volatility | 22.9% – 131.8% | 28.1% - 105.0% |
| Risk free interest rate | 4.29% | 3.57% |
| Dividend yield |  |  |

---

Following is a summary of the change in fair value for each common stock purchase warrant (*in thousands):*

Fair Value

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Common Stock Purchase Warrant Issue Date** | **July 17, <br> 2019** | **April 20, <br> 2020** | **September 4,<br> 2020** | **January 13,<br> 2022** | **January 19,<br> 2023** | **July 25,<br> 2024** | **TOTAL** |
| **Balance January 1, 2023** | $**8208** | $**1184** | $**912** | $**2787** | **-** | **-** | $**13091** |
| Common stock purchase warrant Issuance at Fair Value |  |  |  |  | 2057 |  | 2057 |
| Change in Fair Value | 787 | 121 | 96 | 244 | - | - | 1248 |
| **Balance December 31, 2023** | **8995** | **1305** | **1008** | **3031** | **2057** | **-** | **16396** |
| Common stock purchase warrant Issuance at Fair Value |  |  |  |  |  | 3515 | 3515 |
| Change in Fair Value | 54 | (7) | (10) | 32 | 22 | 11 | 102 |
| **Balance December 31, 2024** | $**9049** | $**1298** | $**998** | $**3063** | $**2079** | $**3526** | $**20013** |

---

If, at any time while the Warrant is outstanding, the Company sells common stock at an effective price per share that is lower than the Warrant's contractual exercise price then the Warrants conversion price shall be reduced to equal the dilutive issuance price. This right to reprice means a down round price adjustment may occur in the warrants due to a modification of the exercise or conversion price of a different previously issued financial instrument. The Holders have waived such adjustments with respect to the Debentures, other Warrants, and other securities issued by the Company, such that no adjustments have been made to the Warrants pursuant to this provision.

The following Warrants provide for cashless exercise of the warrants, under the conditions described:

&nbsp;&nbsp;&nbsp;&nbsp;a. *Warrant issued on July 17, 2019*. The cashless exercise is only available after the six month anniversary
of the Public Company Date. As there has been no Public Company Date, the cashless exercise is not available.

&nbsp;&nbsp;&nbsp;&nbsp;b. *Warrants issued on January 13, 2022, January 19, 2023, July 11, 2024 and July 25, 2024.* If at the time of exercise there is
 no effective registration statement registering, then this Warrant may also be exercised,
 in whole or in part, at such time by means of a "cashless exercise" in which
 the Holder shall be entitled to receive a number of the Company's common
 stock shares based on a contractually defined formula.

Prior to the Public Company Date, for purposes of determining the number of shares of common stock issuable upon a cashless exercise of the Warrants as outlined above, the fair market value of a share of common stock will be determined by an independent appraiser selected in good faith by the Holder of a majority in interest of the Securities, as defined in the respective securities purchase agreements, then outstanding and reasonably acceptable to the Company. Following the Public Company Date, the number of shares of common stock issuable upon a cashless exercise of the Warrants will be determined based on the volume weighted-average price of the Company's common stock.

**13.** **STOCKHOLDERS' DEFICIT** 

The Company has one class of common stock with 40 million shares authorized and 13,131,701 and 12,351,267 common stock shares outstanding as of December 31, 2024 and 2023, respectively. Holders of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. Additionally, holders of common stock are entitled to receive dividends when and if declared by the Board, subject to any statutory or contractual restrictions on payment of dividends and to any restrictions on the payment of dividends imposed by the terms of any outstanding shares of preferred stock. The convertible debentures restrict the declaration and payment of dividends so long as there is balance outstanding.

Upon dissolution, liquidation or the sale of all or substantially all of the Company's assets, after payment in full of any amounts required to be paid to creditors and to the holders of preferred stock having liquidation preferences, if any, the holders of shares of common stock will be entitled to receive the Company's remaining assets for distribution on a pro rata basis.

In 2024, the Company issued 196,153 and 584,281 common stock shares at price of $5.71 and $5.77 per share, respectively. In 2023, the Company issued 271,573 common stock shares at price of $5.71 per share.

**14.** **STOCK BASED COMPENSATION** 

On February 10, 2016, the Company's stockholders approved the FireFly Automatix, Inc 2016 Stock Plan ("Plan"). The purpose of the Plan is to offer selected persons an opportunity to acquire a proprietary interest in the success of the Company, or to increase such interest, by purchasing shares of the Company's common stock. The Plan provides both for the direct award or sale of shares and for the grant of common stock options ("Options") to purchase common shares to employees, directors and consultants ("Participants"). The Plan provides for the issuance of up to a maximum number of shares of common stock equal to 5,000,000. The Company's Board of Directors administers the Plan. On January 25, 2023, the stockholders approved a Plan amendment increasing the maximum number of shares of common stock to 7,235,215.

Stock option awards granted under the Plan have a three year vesting and ten year expiration after issuance. Options issued under these plans generally vest in equal annual installments over three years and expire ten years after issuance. Options granted to members of the board directors generally vest one year after issuance. The Company estimates the fair value of the Options using a Black-Scholes valuation model, and the resulting fair value is recorded as compensation expense on a straight-line basis over the option vesting period.

Estimates of fair value are not intended to predict actual future events or the value ultimately realized by Participants who receive Option awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company. The assumptions made for purposes of estimating fair value under the Black-Scholes model for the 703,102 and 504,778 Options granted during years ended December 31, 2024 and 2023, respectively, were as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended** | **Year ended** |
|  | **December 31, 2024** | **December 31, 2023** |
| Expected term of option (years) | 6.5 | 6.5 |
| Risk free interest rate | 4.198% - 4.217% | 4.064% |
| Volatility | 49.25% - 85.61% | 54.05% |

---

There was no expected dividend yield for the Options granted. As the Company's stock is not actively traded, the Company derived the stock volatility based upon a weighted average volatility for six comparable companies whose stock is actively traded on an exchange, which represents the Company's best estimate of expected volatility. The comparable companies operate in the specialty machinery and equipment, electric vehicles, and industrial and automation sectors.

Due to a lack of sufficient historical exercise data, the Company has elected to use the simplified method to estimate the expected life of the Options. Under this method, the expected life is calculated as the average of the vesting period and the contractual term of the option

The following table reflects the Option activity for the year ended December 31, 2024 *(in thousands, except shares and price per share)*:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | <br>**Shares** | **Weighted <br> Average <br> Exercise<br> Price** | **Weighted <br> Average <br> Remaining <br> Contractual <br> Terms<br> Years** | <br>**Aggregate<br> Intrinsic<br> Value** |
| Options outstanding as of December 31, 2023 | 5276824 | $2.93 | 5.33 | $14619 |
| Granted | 703102 | 5.74 |  |  |
| Exercised |  |  |  |  |
| Forfeited | (3850) | 5.71 |  |  |
| Options outstanding as of December 31, 2024 | 5976076 | $3.26 | 4.94 | $15003 |
| Options exercisable as of December 31, 2024 | 4441586 | 2.41 | 3.59 | $14932 |
| Options unvested as of December 31, 2024 | 1534491 | $5.72 | 8.83 | $71 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Weighted <br> Average <br> Exercise<br> Price** | **Weighted <br> Average <br> Remaining <br> Contractual <br> Terms<br> Years** | **Aggregate<br> Intrinsic<br> Value** |
| Options outstanding as of January 1, 2023 | 4775013 | $2.01 | 4.11 | $12814 |
| Granted | 504778 | 5.71 |  |  |
| Exercised |  |  |  |  |
| Forfeited | (2967) | 5.71 |  |  |
| Options outstanding as of December 31, 2023 | 5276824 | $2.93 | 5.33 | $14665 |
| Options exercisable as of December 31, 2023 | 3947284 | 2.01 | 4.11 | $14619 |
| Options unvested as of December 31, 2023 | 1329540 | $5.68 | 9.25 | $46 |

---

The weighted average grant-date fair value of the Options was granted during the years ended December 31, 2024 and 2023 was $5.74 and $5.71 per share, respectively. There were no Options exercised in 2024. The total intrinsic fair value of Options exercised during the year ended December 31, 2023 was approximately $14.

Compensation expense associated with Options was approximately $1,346 and $1,153 for the years ended December 31, 2024 and 2023, respectively. Additionally, as of December 31, 2024 there was approximately $6,786 of unrecognized stock compensation expense related to Options to be recognized over a weighted average remaining period of 4.66 years.

**15.** **SEGMENTS** 

The Company operates as one operating segment. The Company's chief operating decision maker ("CODM") is its Chief Executive Officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated gross margin and net income to assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such as the determination of the rate at which the Company seeks to grow gross margin and the allocation of budget between cost of revenues, sales and marketing, research and development, and general and administrative expenses.

The following table presents selected consolidated financial information with respect to the Company's single operating segment for the years ended December 31, 2024 and 2023 (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Revenues, net | $42477 | $41496 |
| Cost of revenues | 32282 | 31997 |
| Gross profit | 10195 | 9499 |
| Selling, general and administrative | 11443 | 8942 |
| Research and development | 4293 | 4939 |
| Total operating expenses | 15736 | 13881 |
| Loss income from operations | (5541) | (4382) |
| Interest income | 25 | 35 |
| Interest expense | (235) | (383) |
| Change in fair value of convertible debentures | (4158) | 727 |
| Change in fair value of warrant liability | (3616) | (3305) |
| Other income | 10 | - |
| Loss from operations before income taxes | (13515) | (7308) |
| Provision for income taxes | 22 | 75 |
| Net loss | (13537) | (7383) |

---

The following table presents the Company's net revenues disaggregated by geography with respect to the Company's operating segment for the years ended December 31, 2024 and 2023 (*in thousands*);

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| United States | $34772 | 36635 |
| Australia | 3253 | 1908 |
| Canada | 2469 | 1952 |
| Brazil | 705 |  |
| Europe | 486 | 917 |
| All other | 792 | 84 |
|  | 42477 | 41496 |

---

**16.** **INCOME TAXES** 

Loss before provision for income taxes was $13.5 million and $7.3 million for the years ended December 31, 2024 and 2023, respectively.

The Company's provision for income taxes consists of the following (*in thousands*):

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023** |
| Current: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal | $1 | $27 |
| &nbsp;&nbsp;&nbsp;&nbsp;State | 21 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current | 22 | 75 |
| Deferred: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal | (897) | (876) |
| &nbsp;&nbsp;&nbsp;&nbsp;State | (263) | (268) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in valuation allowance | 1160 | 1144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred |  |  |
| Total income tax expense (benefit) | $22 | $75 |

---

The Company's provision for income tax differs from the amount computed at federal statutory rates as follows:

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023** |
| Statutory federal income tax rate | 21.0% | 21.0% |
| State tax provision | 1.1 | 1.7 |
| Convertible debentures | (9.3) | (2.1) |
| Common stock purchase warrants | (5.6) | (9.5) |
| Research credits | 1.5 | 4.1 |
| Change in valuation allowance | (8.6) | (15.7) |
| Other | (0.4) | (0.6) |
| &nbsp;&nbsp;Total provision for income taxes | (0.3)% | (1.1)% |

---

As of December 31, 2024 and 2023, the net deferred tax assets consisted of the following:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| <br>**(In thousands)** | **2024** | **2023** |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | $339 | $244 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research credits | 716 | 573 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research & experimental capitalization | 2566 | 2077 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory | 403 | 407 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liability | 1208 | 912 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock compensation | 1779 | 1464 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net operating loss carryforwards | 2112 | 2431 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 8 | 2 |
| Total gross deferred tax assets | 9131 | 8110 |
| Less valuation allowance | (6832) | (5672) |
| Total deferred tax assets | 2299 | 2438 |
| Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment | (567) | (620) |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangibles | (56) | (78) |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use asset | (1079) | (850) |
| &nbsp;&nbsp;&nbsp;&nbsp;481(a) adjustment | (597) | (890) |
| Total deferred tax liabilities | (2299) | (2438) |
| Net deferred tax asset (liability) | $— | $— |

---

Valuation allowances are established when necessary to reduce deferred tax assets, including temporary differences and net operating loss carryforwards, to the amount expected to be realized in the future. FASB guidance indicates that forming a conclusion that a valuation allowance is not needed is difficult when there is negative evidence such as cumulative losses in recent years. The Company had cumulative losses from continuing operations in the United States for the three-year period ended December 31, 2024. The Company considered this negative evidence along with all other available positive and negative evidence and concluded that, at December 31, 2024, it is more likely than not that the Company's U.S. deferred tax assets will not be realized. As of December 31, 2024, a valuation allowance has been recorded on the Company's deferred tax assets to recognize only the proportion of the deferred tax asset that is more likely than not to be recognized. The Company's total valuation allowance was $6.8 million at December 31, 2024 and $5.7 million at December 31, 2023. The Company's valuation allowance increased $1.2 million and $1.1 million during the fiscal years ended December 31, 2024 and 2023, respectively. A reconciliation of the beginning and ending amount of the valuation allowance is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| **(In thousands)** | **2024** | **2023** |
| Valuation allowance at beginning of year | $5672 | $4527 |
| Change in valuation allowance | 1160 | 1145 |
| **Valuation allowance at end of year** | $6832 | $5672 |

---

As of December 31, 2024, the Company had federal net operating losses of $8.6 million. All net operating losses have an indefinite carryforward period. As of December 31, 2023, the Company had federal net operating losses of approximately $9.9 million.

As of December 31, 2024, the Company had a $0.6 million deferred tax asset related to a federal research and development credit carryforward. This credit has been offset by a liability for unrecognized tax benefits of $0.1 million. If not utilized, the credits will expire between 2038 through 2044. As of December 31, 2023, the Company had a $0.5 million deferred tax asset related to a federal research and development credit carryforward offset by a liability for unrecognized benefits of $0.1 million.

As of December 31, 2024, the Company had state net operating losses of approximately $7.4 million. Of the total state net operating losses, approximately $3.2 million are attributable to Utah. Utah law allows unused net operating losses arising in tax years beginning after December 31, 2008 to be carried forward indefinitely. All of the Utah net operating losses are for tax years beginning after December 31, 2008, and are carried forward indefinitely. Of the total state net operating losses, approximately $1.3 million are attributable to Georgia. Georgia law allows unused net operating losses to be carried forward indefinitely. Of the total state net operating losses, approximately $0.9 million are attributable to Alabama. Alabama net operating losses will expire between 2033 through 2037. The remaining state net operating loss carryforwards are attributable to various other states with varying expiration periods. As of December 31, 2023, the Company had cumulative state net operating losses of approximately $8.3 million.

As of December 31, 2024, the Company had a $0.3 million deferred tax asset related to Utah research and development credits carryforward. This credit has been offset by a liability for unrecognized tax benefits of $0.1 million. If not utilized, the credits will expire between 2036 through 2038. As of December 31, 2023, the Company had a $0.3 million deferred tax asset related to a Utah research and development credit carryforward.

ASC Topic 740-10-05 - Uncertain Tax Positions requires that the impact of a tax position be recognized in the financial statements if that position is more likely than not of being sustained on audit, based on the technical merits of the position. As of December 31, 2024, the Company had a $0.2 million liability for unrecognized tax benefits, all of which is netted against deferred tax assets for related carryforward credits. As of December 31, 2024, the Company had a $0.1 million liability for unrecognized tax benefits, all of which is netted against deferred tax assets for related carryforward credits. The Company expects no material changes to the liability for unrecognized tax benefits in the next 12 months. Interest and penalties associated with uncertain tax positions are recorded as a component of income tax expense. There would be no impact to the Company's effective rate if the unrecognized tax benefits were recognized. A reconciliation of the beginning and ending amounts of unrecognized benefits is as follows:

---

| | | |
|:---|:---|:---|
|  | **Years ended December 31,** | **Years ended December 31,** |
| **(In thousands)** | **2024** | **2023** |
| Unrecognized tax benefits at the beginning of year | $126 | $67 |
| Gross increases – current year tax positions | 38 | 59 |
| Gross increases – prior year tax positions |  |  |
| Gross decreases – prior year tax positions |  |  |
| Unrecognized tax benefits at end of year | $164 | $126 |
| Interest and penalties in year-end balance | $— | $— |

---

The Company files U.S. and various state tax returns in jurisdictions with various statutes of limitation. As of December 31, 2024, the tax returns for all tax years remain subject to examination. Annual tax provisions include amounts considered necessary to pay assessments that may result from examination of prior year tax returns; however, the amount ultimately paid upon resolution of issues may differ materially from the amount accrued. As of December 31, 2024, there are no income tax returns currently under audit.

**17.** **RELATED PARTY** 

The following summarizes related party transactions for the years ended December 31, 2024 and 2023:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Common Stock<br> Shares<br> Purchased** | **Price<br> per Share** |
| Andrew Limpert, CEO and Director (i) | 2024.0 | 8665 | $5.77 |
|  | 2023.0 |  |  |
| Steven Aposhian, CTO, Director, and Chairman of the Board | 2024.0 |  |  |
|  | 2023.0 |  |  |
| Matthew Aposhian, President, COO and Director | 2024.0 |  |  |
|  | 2023.0 |  |  |
| Lindsay Jones, CFO | 2024.0 | 10867 | $5.77 |
|  | 2023.0 |  |  |
| Paul Richardson, Director | 2024.0 | 5000 | $5.77 |
|  | 2023.0 |  |  |
| Elizabeth Hocker, Director | 2024.0 |  |  |
|  | 2023.0 |  |  |
| JuE Wong, Director | 2024.0 |  |  |
|  | 2023.0 |  |  |
| Christopher Christensen, Director | 2024.0 | 193310 | $5.77 |
|  | 2023.0 |  |  |

---

(i) Andrew
 Limpert's shares are owned through his U.S. Automatix, LLC entity. Andrew Limpert is the managing partner.

**18.** **COMMITMENTS AND CONTINGENCIES** 

The Company may, from time to time, be subject to various contractual commitments and obligations in the normal course of business. As of December 31, 2024, the Company has no material pending legal proceedings, claims, or litigation that would have a material adverse effect on its consolidated financial position, results of operations, or cash flows.

At the time we accept a machine order from a customer, a cash deposit is required prior to beginning manufacturing. The deposit is generally ten percent of the contract price. When the machine is completed and invoiced, the deposit is applied to the invoice amount.

The Company must determine which of its customers are exempt from the Company charging sales tax because the customer is a reseller or self-assesses and direct pays to states and other jurisdictions on purchases the customer makes from the Company. These determinations contain estimates and are subject to judgment and interpretation by the Company and respective taxing authorities in various states and other jurisdictions, which could result in recognizing materially different amounts in future periods. Periodically, the Company is subject to individual state sales tax audits

The Company issues purchase orders for parts and materials at agreed upon prices from key vendors. The lead times for delivery can range from a few days to over a year. The purchase quantities could vary according to production demands at the Company's discretion. These are not recorded as liabilities on the Company's balance sheet until the purchased items are received.

**19.** **SUBSEQUENT EVENTS** 

We evaluate events and transactions occurring subsequent to the date of the consolidated financial statements for matters requiring recognition or disclosure in the consolidated financial statements.

The irrevocable standby letter of credit issued in May 2024 was released in March 2025, as the customer secured alternative financing from a different financial institution.

On March 14, 2025, the Holders of the convertible debentures extended the maturities to January 31, 2027.

**FIREFLY AUTOMATIX, INC**

**INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(unaudited)**

**As of June 30, 2025 and for the six months ended June 30, 2025, and 2024**

**FIREFLY AUTOMATIX, INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(unaudited and in thousands)**

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30, 2025** | **December 31, 2024** |
| ASSETS |  |  |
| Current assets: |  |  |
| Cash | $2384 | $2287 |
| Restricted cash |  | 300 |
| Accounts receivable, net | 1825 | 1352 |
| Inventory, net | 8539 | 8566 |
| Prepaid expenses | 1002 | 639 |
| &nbsp;&nbsp;&nbsp;Total current assets | 13750 | 13144 |
| Property and equipment, net | 1988 | 1972 |
| Intangible assets | 663 | 696 |
| Right-of-use assets, operating leases | 4197 | 4451 |
| Right-of-use assets, finance leases | 816 | 881 |
| Other long-term assets | 142 | 141 |
| &nbsp;&nbsp;&nbsp;Total assets | $21556 | $21285 |
| LIABILITIES AND STOCKHOLDERS' DEFICIT |  |  |
| Current liabilities: |  |  |
| Accounts payable | $7168 | $5245 |
| Customer deposits | 1994 | 1103 |
| Notes payable, current portion | 402 | 302 |
| Lease liability, operating leases | 465 | 386 |
| Lease liability, finance leases | 170 | 154 |
| Accrued and other current liabilities | 2927 | 2352 |
| &nbsp;&nbsp;&nbsp;Total current liabilities | 13126 | 9542 |
| Non-current liabilities: |  |  |
| Notes payable, net of current portion | 560 | 427 |
| Convertible debentures payable (at fair value) | 39655 | 38176 |
| Common Stock Purchase warrants liability | 20956 | 20013 |
| Lease liability, operating leases net of current portion | 4319 | 4597 |
| Lease liability, finance leases net of current portion | 533 | 628 |
| Other liabilities | 3653 | 3640 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 82802 | 77023 |
| Commitments and contingencies (Note 13) |  |  |
| Stockholders' deficit: |  |  |
| Common stock, $0.001 par value, 40 million shares authorized; 13,131,701 and 13,131,701 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively. | 13 | 13 |
| Additional paid-in capital | 21229 | 20654 |
| Accumulated losses | (82488) | (76405) |
| &nbsp;&nbsp;&nbsp;Total stockholders' deficit | (61246) | (55738) |
| &nbsp;&nbsp;&nbsp;Total liabilities and stockholders' deficit | $21556 | $21285 |

---

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

**FIREFLY AUTOMATIX, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(unaudited and in thousands, except shares)**

---

| | | |
|:---|:---|:---|
| | **For the six months ended** | **For the six months ended** |
| | **June 30,** | **June 30,** |
| <br>***(In thousands, except share data)*** | **2025** | **2024** |
| Revenues, net | $22909 | $21542 |
| Cost of revenues | 19072 | 15690 |
| Gross profit | 3837 | 5852 |
| Operating expenses: |  |  |
| Selling, general and administrative | 6183 | 4779 |
| Research and development | 2231 | 2093 |
| Total operating expenses | 8414 | 6872 |
| Loss from operations | (4577) | (1020) |
| Other (expense) income: |  |  |
| Interest income | 18 | 15 |
| Interest expense | (48) | (121) |
| Change in fair value of convertible debentures | (480) | (1570) |
| Change in fair value of warrant liability | (943) | 31 |
| Other income | 16 |  |
| Other expense | (69) | (43) |
| Total other expense | (1506) | (1688) |
| Loss from operations before income taxes | (6083) | (2708) |
| Provision for income taxes | - | - |
| Net loss | (6083) | (2708) |
| Net loss per share attributable to common stockholders: |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $(0.42) | $(0.20) |
| &nbsp;&nbsp;&nbsp;Diluted | $(0.42) | $(0.20) |
| Weighted average common shares: |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 14647530 | 13355871 |
| &nbsp;&nbsp;&nbsp;Diluted | 14647530 | 13355871 |

---

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

**FIREFLY AUTOMATIX, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT**

**(unaudited and in thousands)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Additional Paid-in**<br>**Capital** | **Accumulated**<br>**Losses** | **Total Stockholders'**<br>**Deficit** |
| **Balance, December 31, 2023** | **12351** | $**12** | $**14817** | $**(62868)** | $**(48039)** |
| Issuance of common stock for cash | 196 |  | 1120 |  | 1120 |
| Stock compensation |  |  | 755 |  | 755 |
| Net loss | - | - | - | (2709) | (2709) |
| **Balance, June 30, 2024** | **12547** | $**12** | $**16692** | $**(65577)** | $**(48873)** |
| **Balance, December 31, 2024** | **13131** | $**13** | $**20654** | $**(76405)** | $**(55738)** |
| Stock compensation |  |  | 575 |  | 575 |
| Net loss | - | - | - | (6083) | (6083) |
| **Balance, June 30, 2025** | **13131** | $**13** | $**21229** | $**(82488)** | $**(61246)** |

---

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

**FIREFLY AUTOMATIX, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(unaudited and in thousands)**

---

| | | |
|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2025** | **2024** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(6083) | $(2708) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of convertible debentures | 480 | 1570 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrant liabilities | 943 | (31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock compensation | 575 | 755 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 411 | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of right-of-use asset | 255 | 140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | (218) | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory, net | 27 | (1329) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | (623) | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 1923 | 1238 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer deposits | 892 | (1617) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued and other current liabilities | 575 | 162 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liability | (277) | 402 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (1121) | (1142) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | (326) | (131) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of intangible assets | (2) | (71) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceed from disposition of fixed assets | - | 196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (328) | (6) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from convertible debentures, net | 1000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of notes payable | 253 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of notes payable | (20) | (391) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock |  | 1120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 13 | (321) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 1246 | 408 |
| Net change in Cash and Restricted cash | (203) | (740) |
| Cash and Restricted cash, beginning of period | 2587 | 2689 |
| Cash and Restricted cash, end of period | $2384 | $1949 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $29 | $115 |
| &nbsp;&nbsp;&nbsp;Cash paid for taxes | $39 | $38 |
| &nbsp;&nbsp;&nbsp;Fair value of warrants issued with convertible debentures | $1048 | $- |

---

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

**FIREFLY AUTOMATIX, INC**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**1.** **ORGANIZATION AND NATURE OF OPERATIONS** 

Since its launch in January 2010, FireFly Automatix, Inc., a Delaware corporation (the "Company", "FireFly", "we" or "us"), is a technology leader in the turfgrass industry as a firm that designs, manufactures, sells and supports precision automated turf harvesters ("PATH"), autonomous mowers ("AMP"), aftermarket parts and service. FireFly has expanded its turfgrass expertise with operations in Europe, the Asia Pacific region, and South America.

FireFly began emerging as an AgTech innovator in late 2023 with its introduction of the Company's autonomous mowing platform, which we began marketing and selling in 2024. This industrial, self-driving, autonomous electric mower is FireFly's first solution specifically designed for the unique requirements of the golf course, sports field, government, real estate, and turfgrass industries. With AMP's approach in what can be termed the autonomous electric vehicle (AEV) realm, FireFly is ideally situated to provide a unique mowing approach that is both environmentally sound and business friendly. As such, the AMP is FireFly's first AEV offering that specifically targets the demanding needs of these new target markets noted above.

With a foundation of 14-plus years in business, FireFly is dedicated to becoming a global AgTech innovator, one determined to protect our position as the premier technology supplier to turfgrass producers worldwide, while also extending our impact into the broader opportunities outlined above.

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

**Basis of Presentation**

We prepare our unaudited interim condensed consolidated financial statements in accordance with the rules and regulation of the Securities and Exchange Commission ("SEC"). In the opinion of management, all adjustments, which consist solely of normal recurring adjustments, necessary to present fairly, in accordance with principles generally accepted in the United States of America ("U.S. GAAP"), the financial position, results of operations and cash flows for all periods presented, have been made. The results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year.

Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted. The unaudited interim condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included elsewhere in this prospectus.

The information presented in the accompanying unaudited interim consolidated balance sheets as of December 31, 2024 has been derived from the Company's 2024 audited consolidated financial statements.

In September 2022, the Company formed FireFly Automatix, Limited as a wholly-owned subsidiary and incorporated in the United Kingdom. The Company anticipated opening a satellite office and a warehouse for replacement parts, which has not yet fully happened. The minimal operations are considered insignificant.

The Company's unaudited interim condensed consolidated financial statements are prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of obligations in the normal course of business. Continuation as a going concern is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to meets its financial requirements, raise additional capital, and the success of its future operations.

Under the rules of ASC Subtopic 205-40 "Presentation of Financial Statements-Going Concern" ("ASC 205-40"), the Company is required to evaluate whether conditions and/or events raise substantial doubt about its ability to meet its future financial obligations as they become due within one year after the date that these consolidated financial statements are issued or available to be issued. This evaluation takes into account the Company's current available cash and projected cash needs over the one-year evaluation period but may not consider things beyond its control.

The Company has experienced operating losses due primarily to research and development expense related to the design, testing, and manufacturing of the Company's new AMPs, used cash from operations, and relied on the capital raised from friends, family and related parties and institutional financing to continue ongoing operations. We may or may not be able to raise additional capital or obtain additional institutional financing due to future economic conditions. In particular, the lending criteria are currently tightening in the United States, and we have experienced a decline in demand for our turf harvester products, due to continuing declines in the new housing market and higher interest rates. These factors, when considered in the aggregate, raise substantial doubt about the Company's ability to continue as a going concern within one year of the date these consolidated financial statements are issued.

Management considers the conditions outlined above as the most significant factors in raising substantial doubt about the Company's ability to continue as a going concern within one year after the date the consolidated financial statements are available to be issued. Management's mitigating plans include: (1) raising additional liquidity through an equity raise in the public capital markets or through friends and family, (2) evaluating operating expenses and developing a plan to reduce expenditures without negatively impacting current operations, (3) placing a strategic focus on increasing sales with prime precision automated turf harvester customers and selling our AMPs to private and public golf courses and sports field parks and (4) making strategic price increases on both our PATH machines and AMPs. No assurances can be given that we will be successful raising funds through an initial public offering or through friends and family and that we will be successful in reducing operating expenses or increasing the machine sales with increased prices.

Over the next twelve months, we expect to finance our operations with operating revenue from our operations, short-term debt financing, and the proceeds from this offering. Our significant projected cash commitments relate primarily to debt service (including notes payable and lease obligations) and operating expenses. We anticipate the cash required to service our debt to be between $402 to $1,037. This assumes (1) the interest on the convertible debentures will continue to be accreted to the debentures' principal outstanding and not paid in cash, and (2) the debentures will be converted into shares of the Company's commons stock at the respective maturities (January 2027).

In the event the projected results do not occur, we may have to significantly delay, scale back or discontinue the development and commercialization of one or more product offerings and other strategic initiatives. Additionally, we would reduce the number of new hires planned in 2025, and implement cost reduction measures such as a reduction in headcount, reducing the planned sales, marketing, research and development expenses among other cost reduction measures.

**Fair Value of Financial Instruments**

The Company records the fair value of assets and liabilities in accordance with ASC 820. ASC 820 defines fair value as the price received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.

In addition to defining fair value, ASC 820 prescribes the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels, which is determined by the lowest level input that is significant to the fair value measurement in its entirety. The three broad levels of the fair value hierarchy are as follows:

---

| | |
|:---|:---|
| Level 1 – | Quoted prices (unadjusted) 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 for the asset or liability, either directly or indirectly, |
| Level 3 – | Unobservable inputs for which little or no market data exists, therefore requiring a company to develop its own assumptions. |

---

The carrying amounts of certain financial instruments, such as cash and cash equivalents, accounts receivable, inventory, prepaid expenses, accounts payable and customer deposits approximate fair value due to their relatively short maturities.

The following table summarizes the carrying amount and estimated fair value of the convertible debentures and the common stock purchase warrants (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
|  | **Carrying** | **Fair** | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** |
|  | **Value** | **Value** | **Level 1** | **Level 2** | **Level 3** |
| 11% debenture dated July 17, 2019 | $25914 | $25914 | $- | $- | $25914 |
| 11% debenture dated April 20, 2020 | $2775 | $2775 | $- | $- | $2775 |
| 11% debenture dated September 4, 2020 | $2504 | $2504 | $- | $- | $2504 |
| 11% debenture dated January 13, 2022 | $3637 | $3637 | $- | $- | $3637 |
| 15% debenture dated January 19, 2023 | $2634 | $2634 | $- | $- | $2634 |
| 15% debenture dated July 25, 2024 | $1169 | $1169 | $- | $- | $1169 |
| 15% debenture dated June 18, 2025 | $1022 | $1022 | $- | $- | $1022 |
| Warrant dated July 17, 2019 | $8988 | $8988 | $- | $- | $8988 |
| Warrant dated April 20, 2020 | $1276 | $1276 | $- | $- | $1276 |
| Warrant dated September 4, 2020 | $979 | $979 | $- | $- | $979 |
| Warrant dated January 13, 2022 | $3062 | $3062 | $- | $- | $3062 |
| Warrant dated January 19, 2023 | $2077 | $2077 | $- | $- | $2077 |
| Warrant dated July 25, 2024 | $3526 | $3526 | $- | $- | $3526 |
| Warrant dated June 18, 2025 | $1048 | $1048 | $- | $- | $1048 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Carrying** | **Fair** | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** |
|  | **Value** | **Value** | **Level 1** | **Level 2** | **Level 3** |
| 11% debenture dated July 17, 2019 | $25439 | $25439 | $- | $- | $25439 |
| 11% debenture dated April 20, 2020 | $2740 | $2740 | $- | $- | $2740 |
| 11% debenture dated September 4, 2020 | $2477 | $2477 | $- | $- | $2477 |
| 11% debenture dated January 13, 2022 | $3671 | $3671 | $- | $- | $3671 |
| 11% debenture dated January 19, 2023 | $2674 | $2674 | $- | $- | $2674 |
| 15% debenture dated July 25, 2024 | $1175 | $1175 | $- | $- | $1175 |
| Warrant dated July 17, 2019 | $9049 | $9049 | $- | $- | $9049 |
| Warrant dated April 20, 2020 | $1298 | $1298 | $- | $- | $1298 |
| Warrant dated September 4, 2020 | $998 | $998 | $- | $- | $998 |
| Warrant dated January 13, 2022 | $3063 | $3063 | $- | $- | $3063 |
| Warrant dated January 19, 2023 | $2079 | $2079 | $- | $- | $2079 |
| Warrant dated July 25, 2024 | $3526 | $3526 | $- | $- | $3526 |

---

The fair value of each convertible debenture and each common stock purchase warrant is comprised of a single financial liability in which the Company elected the fair value option under ASC 825, Financial Instruments ("ASC 825"), with changes in fair value recorded in gain/loss from changes in fair value in the consolidated statements of operations. The Company elected the fair value option due to its multiple conversions and redemption features required to be presented at fair value. The Company has also elected to not present interest expense separately from the changes in fair value of each convertible debenture measured at fair value.

The fair value of the convertible debentures are determined using a straight debt plus call option methodology. This is a hybrid methodology which includes a discounted cash flow analysis to fair value the debt component of the note and a Black-Scholes option pricing method to determine the fair value of any upside in excess of principal and accrued interest that may be available to holders upon conversion. Given the highly subjective and complex nature in constructing such models, we engaged an independent valuation firm to confirm the model's proper application based on management's selected inputs and assumptions.

The discounted cash flow analysis and Black-Scholes pricing model requires management to exercise judgment in selecting inputs and making highly subjective and often complex assumptions, including the fair value of our common stock, the expected term of the convertible debentures, stock price volatility, and anticipated dividend yield.

The valuation utilized significant Level 3 unobservable inputs, including implied yield, volatility, and risk-adjusted discount rate. Other significant assumptions include risk-free rate, principal value, historical and implied average volatility of a comparable companies publicly traded on recognized stock exchanges, maturity date and the various conversion features and prices per the agreement. These liabilities are measured at fair value on a recurring basis and have unobservable inputs and are therefore categorized as Level 3. Significant judgment is required in selecting the significant inputs and assumptions. Actual assumptions may differ from our current estimates and such differences could materially impact fair value of the convertible debenture.

Convertible debentures and common stock purchase warrants classified as liabilities are recorded on the Company's consolidated balance sheets at their fair value on the date of issuance and are revalued on each subsequent balance sheet date until such instruments are exercised or expire. See Note 8 - *Convertible Debentures* and Note 9 – *Common Stock Purchase Warrants* and for a summary of assumptions use in estimating the valuation.,

**Net Loss Per Common Share**

Our basic loss per share calculation is computed based on the weighted-average number of common shares outstanding. Included in the weighted-average number of common shares outstanding are the share equivalents for the common stock purchase warrants with an exercise price of $0.01 (See discussion of warrants at Note 9 *– Common Stock Purchase Warrants*.) Potentially dilutive securities for this calculation may consist of in-the-money outstanding stock options, warrants (which were assumed to have been exercised at the average market price of the common shares during the reporting period) and shares assumed converted for the convertible debentures. The treasury stock method is used to measure the dilutive impact of potentially dilutive securities.

Potential dilutive shares are excluded from diluted loss per share when their effect is anti-dilutive. When there is a net loss for a period, all potentially dilutive shares are anti-dilutive and are excluded from the calculation of diluted loss per share for that period. When we have net income for a period, we anticipate using the "if-converted" method to measure the dilutive impact of the convertible debentures.

The following table sets forth the calculations of basic and diluted loss per common share (*in thousands, except per share amounts*):

---

| | | |
|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2025** | **2024** |
| Net loss | $(6083) | $(2708) |
| Basic weighted-average number of common shares outstanding | 13131701 | 12463969 |
| Add: Weighted-average common shares attributable to Warrants with a $0.01 exercise price | 1515829 | 891902 |
| Total basic weighted-average number of common shares outstanding | 14647530 | 13355871 |
| Add: Dilutive effect of other equity instruments | - | - |
| Diluted weighted-average shares outstanding | 14647530 | 13355871 |
| Loss per common share - basic | $(0.42) | $(0.20) |
| Loss per common share - diluted | $(0.42) | $(0.20) |
| Excluded from diluted weighted-average shares outstanding: |  |  |
| Antidilutive shares | 14750412 | 13286535 |

---

**Revenue Recognition**

We recognize revenue in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") standards - Topic 606 "Revenue from Contracts with Customers" ("Topic 606"). When entering into contracts with our customers, we review the following five steps of Topic 606:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Identify
 the contract with the customer.

ii. Identify
 the performance obligation.

iii. Determine
 the transaction price.

iv. Allocate
 the transaction price to the performance obligation.

v. Evaluate
 the satisfaction of the performance obligation.

We account for contracts with our customers, when we have approval and commitment from both parties, the rights of the parties are identified, payment terms are established, the contract has commercial substance and collectability of consideration is probable. The Company's contracts do not include variable consideration or a right to return.

Under Topic 606, we recognize revenue only when we satisfy a performance obligation by transferring a promised good or service to our customer. A good or service is considered transferred when the customer obtains control. The standard defines control as an entity's ability to direct the use of, and obtain substantially all of the remaining benefits from, an asset. We recognize revenue once control has passed to the customer. The following indicators are evaluated in determining when control has passed to the customer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. We
 have a right to a payment for the product or service.

ii. The
 customer has legal title to the product.

iii. We
 have transferred physical possession of the product to the customer.

iv. The
 customer has the risk and rewards of ownership of the product.

v. The
 customer has accepted the product.

The Company sets the transaction price for each revenue stream and it is documented prior to beginning the performance obligation. For machines and shipping, the transaction price is approved on a signed quote. For aftermarket parts and shipping, the transaction price is approved by the customer in advance. For service, the transaction price is approved with the service technician in the field before repair work is completed. The Company does not offer prompt payment discounts, volume discounts, rebates, pricing, based on an index or market, pricing based on a formula, price protection and price matching, nor any other type of renumeration to customers. We combine a market assessment approach with an internal pricing strategy to allocate the transaction price to performance obligations. The Company does not offer trade-in rights nor residual value guarantees.

*Revenue Recognition for Machines.* The Company manufactures and sells PATH machines, AMPs, and used machines ("Machines"). Revenues from the machine sales are recognized with the selling price to the customer recorded as revenues and the acquisition cost of the product recorded as cost of revenues. We recognize revenue from these transactions when control has passed to the customer and the performance obligations have been satisfied. For PATH machines, the customer generally arranges the shipping and takes control at the time of shipping. (FOB Shipping). For AMPs and used machines we typically deliver the machines using our internal resources. For the Machines we deliver, control is considered to have passed to the customer when the customer accepts the machine at their location. In some instances, for machines, the Company offers a "preferred partner discount" (price concession) off the manufacturer's suggested retail price ("MSRP") price. The Company records revenue based on the manufacturer suggested retail price less the discount.

*Revenue Recognition for Parts*. The Company sells aftermarket and fabricated parts to support the growing population of Machines currently in operation world-wide. Revenues from the parts sales are recognized with the selling price to the customer recorded as revenues and the acquisition or fabricated cost of the product recorded as cost of revenues. We recognize revenue from these transactions when control has passed to the customer and the performance obligations have been satisfied. For parts, control is considered to have passed at the time of shipping (FOB Shipping) or at the time of delivery if used by the service technicians in performing the service activities (see below).

*Revenue Recognition for Shipping.* We are generally responsible shipping Machines (new and used) and parts sales. For machines (new and used), we can either deliver the machines using our employees or we contract with a third-party freight forwarder on behalf of our customers. We typically arrange the shipping of part sales usually via FedEx, UPS or depending on the size of the part, through a third-party freight forwarder. We recognize shipping revenue when control has passed to the customer and the performance obligations have been satisfied. Control is considered to have passed at the time the Machines or parts leave our facility (i.e., FOB Shipping), except for when we deliver the Machines. When we deliver the Machines, control is considered to have passed to the customer when the customer accepts the machine at their location.

*Revenue Recognition for Service*. The Company, through a team of trained technicians, provides services support the growing population of Machines. Revenues from service activities are recognized with the selling price to the customer recorded as revenues and the cost of the service (labor and/or parts) recorded as cost of revenues. We recognize revenue from these transactions when control has passed to the customer and the performance obligations have been satisfied. For service activities, control is considered to have passed at the time the technician has completed the contracted work.

*Revenue Recognition for Software Subscriptions*. Each of our precision automated turf harvester is accompanied with a software license. In addition to the software license, each AMP also requires an annual software subscription agreement which provides for annual software upgrades among other things. things. For the software license, Control is considered to have passed to the customer when the software license has been delivered and accepted by the customer and the performance obligations have been satisfied. The software license is included in the price of the precision automated turf harvester. The AMP software subscription revenues are billed in advance and revenue is recognized over the subscription period (generally 12 months). Control is considered to pass to the customer and the performance obligation is considered satisfied with the passage of time. Amounts collected in advance for software subscriptions are recorded as contract labilities in the balance sheet and recognized as revenue ratably over the contractual service period. Included in Accrued and other current liabilities is $190 thousand and $76 thousand as of June 30, 2025 and December 31, 2024, respectively. See Note 7 *- Accrued and other current liabilities and other liabilities.*

**3.** **INVENTORY** 

The following summarizes inventory as of (*in thousands*):

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br> **2025** | **December 31, 2024** |
| Purchased and fabricated parts | $6284 | $6252 |
| Work in process | 1350 | 1285 |
| Completed machines | 330 | 164 |
| Used machines | 575 | 865 |
| Total inventory | $8539 | $8566 |

---

**4.** **REVENUES** 

Revenue is recognized when control of the promised good or service is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We recognize revenue at a point in time, except for the software subscription revenue, which is recognized over time, as the performance obligation is satisfied when a customer obtains control of the product upon title transfer and not as the machines or replacement parts are manufactured.

The following table provides information about disaggregated revenue based on the preceding categories *(in thousands)*:

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
| Machines | $16823 | $15955 |
| Parts | 4724 | 4228 |
| Shipping | 888 | 966 |
| Service | 385 | 375 |
| Software subscription | 87 | 14 |
| Other | 2 | 4 |
| Total revenues | $22909 | $21542 |

---

Our contract balances include deferred revenue and our liability for product warranty services. We do not have contract assets. We have not identified any material costs incurred associated with our revenue channels above which would meet the criteria to be capitalized; therefore, these costs are expensed as incurred.

The following table presents the contract liabilities recorded on the balance sheet as of (*in thousands*):

---

| | | | |
|:---|:---|:---|:---|
|  | **Balance Sheet Classification** | **June 30, 2025** | **December 31, 2024** |
| Limited product warranty liability | Accrued and other current liabilities | $374 | 424 |
| Deferred revenue – software subscriptions | Accrued and other current liabilities | 190 | 76 |

---

During the six months ended June 30, 2025, and 2024, we recognized $14,599 thousand and $15,960 thousand, respectively, of revenue related to amounts that were previously included in deferred revenue (See Note 5 – *Customer Deposits*) at the beginning of the period. Deferred revenue fluctuates over time due to changes in the timing of payments received from customers and revenue recognized for services provided.

**5.** **CUSTOMER DEPOSITS** 

Customer deposits are advance payments from customers prior to manufacturing and shipping the machines. The prepayment amounts and timing vary depending on the product to be manufactured and delivery location. The amounts recognized during the year relate to machines that were invoiced for which a ten percent deposit was previously received. New deposits received during year (typically 10% of the quoted price) relate to machines prior to beginning manufacturing or shipping. Customer deposits are included in current liabilities until the balance is applied to an order at the time of invoicing. The following are the customer deposits as of (*in thousands*):

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31, 2024** |
| Beginning balance | $1103 | 2542 |
| Less amounts recognized during the period | (14599) | (30010) |
| New deposits during the period | 15490 | 28571 |
| Total customer deposits | $1994 | $1103 |

---

**6.** **NOTES PAYABLE** 

Notes payable consisted of borrowings for manufacturing equipment and delivery trucks and trailers. The following table summarizes the notes payable as of the following as of (*in thousands*):

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br> **2025** | **December 31, 2024** |
| Note payable – US Bank | $311 | $235 |
| Note payable - Ford | 460 | 374 |
| Note payable - Other | 191 | 120 |
|  | 962 | 729 |
| Less current portion | (402) | (302) |
| Long-term portion | $560 | $427 |

---

**7.** **ACCRUED AND OTHER CURRENT LIABILITIES and OTHER LIABILITIES** 

Accrued and other current liabilities and other liabilities consisted of the following as of (*in thousands*):

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br> **2025** | **December 31, 2024** |
| Employee retention credit ("ERC") refund | $3645 | $3645 |
| Accrued payroll | 443 | 444 |
| Sales tax payable | 937 | 876 |
| Limited product warranty liability | 460 | 424 |
| Deferred software subscription fees | 190 | 76 |
| Other | 905 | 527 |
|  | 6580 | 5992 |
| Less current portion | (2927) | (2352) |
| Total accrued and other current liabilities and other liabilities, net | $3653 | $3640 |

---

**8.** **CONVERTIBLE DEBENTURES** 

From July 2019 through June 2025, the Company issued seven Secured Convertible Debentures (the "Debenture(s)") to certain funds (the "Funds") managed by ATW Partners (the "Holders"). The Debentures are secured (via certain security agreements) by security interests in certain property of the Company. Simultaneously with the execution of each Debenture, the Company issued Common Stock Purchase Warrants (the "Warrants") with each Holder. See Note 9 *– Common Stock Purchase Warrants*.

Any outstanding principal is due at maturity. Interest is payable on the Debentures issued on July 17, 2019, April 20, 2020 and September 4, 2020 quarterly on January 1, April 1, July 1, and October 1. Interest is payable on the Debentures issued on January 13, 2022, January 19, 2023, July 25, 2024 and June 18, 2025, on the first day of each calendar month. The applicable interest may be paid in cash or may be accreted to the principal amount of each Debenture at the election of the Company prior to certain dates, or at the option of the respective Holder thereafter. The respective Holders have elected to allow the Company to accrete the applicable interest.

The fair value of each convertible debenture is comprised of a single financial liability in which the Company elected the fair value option under ASC 825, Financial Instruments ("ASC 825"), with changes in fair value recorded in gain/loss from changes in fair value in the consolidated statements of operations. The Company elected the fair value option due its multiple conversions and redemption features required to be presented at fair value. The Company has also elected to not present interest expense separately from the changes in fair value of each convertible debenture measured at fair value.

Following is a summary of the change in fair value by debenture (*in thousands*):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Debenture Issue Date** | **July 17, <br> 2019** | **April 20, <br> 2020** | **September 4,<br> 2020** | **January 13,<br> 2022** | **January 19,<br> 2023** | **July 25,<br> 2024** | **June 18, 2025** | **TOTAL** |
| **Balance December 31, 2023** | $**23275** | $**2444** | $**2196** | $**2881** | **2222** | $**-** | $**-** | $**33018** |
| Change in Fair Value | 517 | 196 | 101 | 544 | 212 | **-** | **-** | 1570 |
| **Balance June 30, 2024** | $**23792** | $**2640** | $**2297** | $**3425** | $**2434** | $**-** | $**-** | $**34588** |
| **Balance December 31, 2024** | $**25439** | $**2740** | $**2477** | $**3671** | $**2674** | $**1175** | $**-** | $**38176** |
| Debenture Issuance | **-** | **-** | **-** | **-** | **-** |  | 1000 | 1000 |
| Change in Fair Value | 475 | 35 | 27 | (34) | (40) | (6) | 22 | 479 |
| **Balance June 30, 2025** | $**25914** | $**2775** | $**2504** | $**3637** | $**2634** | $**1169** | $**1022** | $**39655** |

---

As of June 30, 2025 and December 31, 2024, the outstanding principal plus accreted interest due to the Holders was $16,383 and $14,321, respectively.

Shares of Common Stock issuable upon conversion of Principal and Accreted Interest are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Debenture Issue Date** | **July 17, <br> 2019** | **April 20, <br> 2020** | **September 4,<br> 2020** | **January 13,<br> 2022** | **January 19,<br> 2023** | **July 25,<br> 2024** | **June 18, 2025** | **TOTAL** |
| **Balance December 31, 2023** | **3637396** | **402027** | **365479** | **337440** | **387623** | **-** | **-** | **5129965** |
| Accreted Interest | 262157 | 28976 | 26342 | 24321 | 29995 | - | - | 371791 |
| **Balance June 30, 2024** | **3899553** | **431003** | **391821** | **361761** | **417618** | **-** | **-** | **5501756** |
| **Balance December 31, 2024** | **4187704** | **462851** | **420773** | **388502** | **450757** | **191933** | **-** | **6102520** |
| Debenture Issuance |  |  |  |  |  |  | 179617 | 179617 |
| Accreted Interest | 303266 | 33519 | 30472 | 28134 | 35045 | 14924 | 898 | 446258 |
| **Balance June 30, 2025** | **4490970** | **496370** | **451245** | **416636** | **485802** | **206857** | **180515** | **6728395** |

---

Each Debenture is secured, by a security agreement, by the Company's assets including cash, inventory, machinery, equipment, motor vehicles, furniture, tools, fixtures, all contract rights, software, goodwill, and all intellectual property and intangible assets.

The Debentures include customary covenants and events of default. In an event of default, including a breach of covenants, the outstanding principal amount of the Debentures, plus accrued but unpaid interest, liquidated damages, and other amounts owed, will become, at the Holder's election, immediately due and payable in cash. Such amount payable in an event of default would also include a premium on the outstanding principal amount. While the Company has not satisfied certain minimum cash flow covenants, the Holders of the Debentures have waived such covenants and agreed that no event of default has been triggered under the Debentures.

**9.** **COMMON STOCK PURCHASE WARRANTS** 

From July 2019 through June 2025, and in connection with the issuance of the Debentures, the Company also issued the Warrants to the Holders. See Note 8 *– Convertible Debentures*. The significant terms of each Warrant are summarized in the following table (in thousands except shares and conversion price):

The Company evaluated all common stock purchase warrants in accordance with the guidance provided under ASC 480, "Distinguishing Liabilities from Equity" and ASC 815, "Derivatives and Hedging", and determined the appropriate classification as either equity or liability. The Company determined the common stock purchase warrants met the definition of a derivative and did not qualify for equity classification under ASC 815-40 and are therefore accounted for as liabilities, with changes in fair value recognized in the statement of operations each reporting period.

The fair value of each common stock purchase warrant is comprised of a single financial liability with changes in fair value recorded in gain/loss from changes in fair value in the consolidated statements of operations. The Company elected the fair value option due its multiple conversions and redemption features required to be presented at fair value. The fair value of the common stock purchase warrants was determined using the Black-Scholes pricing model and observable market inputs including, risk free interest rates, historical and implied average volatility of a comparable companies publicly traded on recognized stock exchanges, and expected term and conversion probability assumptions.

The following table summarizes the assumptions used to fair value the common stock purchase warrants June 18, 2025:

---

| | |
|:---|:---|
| **Assumption** | |
| Term (years) | 10 |
| Volatility | 30.8% |
| Risk free interest rate | 4.29% |
| Dividend yield |  |

---

Following is a summary of the change in fair value for each common stock purchase warrant (*in thousands):*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Common Stock Purchase Warrant Issue Date** | **July 17, <br> 2019** | **April 20, <br> 2020** | **September 4,<br> 2020** | **January 13,<br> 2022** | **January 19,<br> 2023** | **July 25,<br> 2024** | <br>**June 18, 2025** | **TOTAL** |
| **Balance December 31, 2023** | $**8995** | $**1305** | $**1008** | $**3031** | $**2057** | $**-** | $**-** | $**16396** |
| Change in Fair Value | (6) | (12) | (11) | - | (1) | - | - | (30) |
| **Balance June 30, 2024** | $**8989** | $**1293** | $**997** | $**3031** | $**2056** | $**-** | $**-** | $**16366** |
| **Balance December 31, 2024** | $**9049** | $**1298** | $**998** | $**3063** | $**2079** | $**3526** | $**-** | $**20013** |
| Warrant Issued at Fair Value |  |  |  |  |  |  | 1048 | 1048 |
| Change in Fair Value | (61) | (22) | (19) | (1) | (2) | - | - | (105) |
| **Balance June 30, 2025** | $**8988** | $**1276** | $**979** | $**3062** | $**2077** | $**3526** | $**1048** | $**20956** |

---

If, at any time while the Warrant is outstanding, the Company sells common stock at an effective price per share that is lower than the Warrant's contractual exercise price then the Warrants conversion price shall be reduced to equal the dilutive issuance price. This right to reprice means a down round price adjustment may occur in the warrants due to a modification of the exercise or conversion price of a different previously issued financial instrument. The Holders have waived such adjustments with respect to the Debentures, other Warrants, and other securities issued by the Company, such that no adjustments have been made to the Warrants pursuant to this provision. As of June 30, 2025, and 2024, we had outstanding warrants to purchase 4,162,565 and 3,980,704, respectively, shares of common stock at exercise prices ranging from $0.01 to $2.20 per share.

**10.** **STOCKHOLDERS' DEFICIT** 

The Company has one class of common stock with 40 million shares authorized and 13,131,701 common stock shares outstanding as of June 30, 2025, and December 31, 2024, respectively. Holders of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. Additionally, holders of common stock are entitled to receive dividends when and if declared by the Board, subject to any statutory or contractual restrictions on payment of dividends and to any restrictions on the payment of dividends imposed by the terms of any outstanding shares of preferred stock. The Convertible Debentures restrict the declaration and payment of dividends so long as there is balance outstanding.

Upon dissolution, liquidation or the sale of all or substantially all of the Company's assets, after payment in full of any amounts required to be paid to creditors and to the holders of preferred stock having liquidation preferences, if any, the holders of shares of common stock will be entitled to receive the Company's remaining assets for distribution on a pro rata basis.

During the six months ended June 30, 2025, the Company did not issue any common stock. During the six months ended June 30, 2024, the Company issued 196,153 common stock shares at price of $5.71 per share.

**11.** **STOCK BASED COMPENSATION** 

On February 10, 2016, the Company's stockholders approved the FireFly Automatix, Inc 2016 Stock Plan ("Plan"). The purpose of the Plan is to offer selected persons an opportunity to acquire a proprietary interest in the success of the Company, or to increase such interest, by purchasing shares of the Company's common stock. The Plan provides both for the direct award or sale of shares and for the grant of common stock options ("Options") to purchase common shares to employees, directors and consultants ("Participants"). The Plan provides for the issuance of up to a maximum number of shares of common stock equal to 7,235,215.

Stock option awards granted under the Plan have a three-year vesting and ten-year expiration after issuance. Options issued under these plans generally vest in equal annual installments over three years and expire ten years after issuance. Options granted to members of the board directors generally vest one year after issuance. The Company estimates the fair value of the Options using a Black-Scholes valuation model, and the resulting fair value is recorded as compensation expense on a straight-line basis over the option vesting period.

Estimates of fair value are not intended to predict actual future events or the value ultimately realized by Participants who receive Option awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company. For the six months ended June 30, 2025, the Company did not grant any stock options. For the six months ended June 30, 2024, the Company granted 405,550 in stock options (359,550 at $5.71 and 46,000 at $5.770 The assumptions made for purposes of estimating fair value under the Black-Scholes model for the Options granted during the six month ended June 30, 2024 were as follows:

---

| | |
|:---|:---|
| Expected term of option (years) | 6.50 |
| Risk free interest rate | 4.06% |
| Volatility | 27.68% – 106.42% |

---

There was no expected dividend yield for the Options granted. As the Company's stock is not actively traded, the Company derived the stock volatility based upon a weighted average volatility for six comparable companies whose stock is actively traded on an exchange, which represents the Company's best estimate of expected volatility. The comparable companies operate in the specialty machinery and equipment, electric vehicles, and industrial and automation sectors.

Due to a lack of sufficient historical exercise data, the Company has elected to use the simplified method to estimate the expected life of the Options. Under this method, the expected life is calculated as the average of the vesting period and the contractual term of the option.

The following table reflects the Option activity for the six months ended June 30, 2025 and 2024 *(in thousands, except shares and price per share)*:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Weighted <br> Average <br> Exercise<br> Price** | **Weighted <br> Average <br> Remaining <br> Contractual <br> Terms<br> Years** | **Aggregate<br> Intrinsic<br> Value** |
| Options outstanding as of December 31, 2024 | 5976076 | $3.26 | 4.94 | $15003 |
| Granted |  |  |  |  |
| Exercised |  |  |  |  |
| Forfeited | (22883) | - | - | - |
| Options outstanding as of June 30, 2025 | 5953193 | $3.26 | 5.24 | $14935 |
| Options exercisable as of June 30, 2025 | 4669998 | 2.82 | 4.39 | $13.782 |
| Options unvested as of June 30, 2025 | 1283195 | $4.87 | 8.34 | $1153 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Weighted <br> Average <br> Exercise<br> Price** | **Weighted <br> Average <br> Remaining <br> Contractual <br> Terms<br> Years** | **Aggregate<br> Intrinsic<br> Value** |
| Options outstanding as of December 31, 2023 | 5276824 | $2.01 | 4.11 | $14619 |
| Granted | 405550 | 5.71 |  |  |
| Exercised |  |  |  |  |
| Forfeited | (3850) | 5.71 | - | - |
| Options outstanding as of June 30, 2024 | 5678524 | $3.09 | 4.93 | $15087 |
| Options exercisable as of June 30, 2024 | 4596902 | 2.51 | 4.10 | $14964 |
| Options unvested as of June 30, 2024 | 1081622 | $5.65 | 8.65 | $123 |

---

The weighted average grant-date fair value of the Options granted during the six months ended June 30, 2024 was $5.71 per share, no options were issued during the six months ended June 30, 2025. There were no Options exercised in the six months ended June 30, 2025, and 2024, respectively.

Compensation expense associated with Options was approximately $575 thousand and $755 thousand for the six months ended June 30, 2025, and 2024, respectively.

**12.** **SEGMENTS** 

The Company operates as one operating segment. The Company's chief operating decision maker ("CODM") is its Chief Executive Officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated gross margin and net income to assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such as the determination of the rate at which the Company seeks to grow gross margin and the allocation of budget between cost of revenues, sales and marketing, research and development, and general and administrative expenses.

The following table presents the Company's net revenues disaggregated by geography with respect to the Company's operating segment (*in thousands*);

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
| United States | $21158 | $17977 |
| Australia | 157 | 1797 |
| Canada | 574 | 1603 |
| Brazil | 2 |  |
| Mexico | 306 |  |
| Europe | 658 | 71 |
| All other | 54 | 94 |
| Total revenues | $22909 | $21542 |

---

**13. COMMITMENTS AND CONTINGENCIES**

The Company may, from time to time, be subject to various contractual commitments and obligations in the normal course of business. As of June 30, 2025, the Company has no material pending legal proceedings, claims, or litigation that would have a material adverse effect on its consolidated financial position, results of operations, or cash flows.

At the time we accept a machine order from a customer, a cash deposit is required prior to beginning manufacturing. The deposit is generally ten percent of the contract price. When the machine is completed and invoiced, the deposit is applied to the invoice amount.

The Company must determine which of its customers are exempt from the Company charging sales tax because the customer is a reseller or self-assesses and direct pays to states and other jurisdictions on purchases the customer makes from the Company. These determinations contain estimates and are subject to judgment and interpretation by the Company and respective taxing authorities in various states and other jurisdictions, which could result in recognizing materially different amounts in future periods. Periodically, the Company is subject to individual state sales tax audits

The Company issues purchase orders for parts and materials at agreed upon prices from key vendors. The lead times for delivery can range from a few days to over a year. The purchase quantities could vary according to production demands at the Company's discretion. These are not recorded as liabilities on the Company's balance sheet until the purchased items are received.

**14.** **SUBSEQUENT EVENTS** 

We evaluate events and transactions occurring subsequent to the date of the consolidated financial statements for matters requiring recognition or disclosure in the consolidated financial statements.

In August 2025, the Company granted 375,087 in stock option awards to employees. The exercise price per share is $5.77 and the awards expire in ten years.

In July 2025 and August 2025, we issued unsecured convertible notes to four individual investors in the principal amount of $320,348. The convertible notes have a term of two years and bear interest at a rate of 15% per annum. The notes will automatically convert into shares of common stock upon the closing of an underwritten public offering of common stock that raises at least $10,000,000 of gross proceeds, at a conversion price equal to the lesser of (i) $5.5674 per share or (ii) 90% of the initial public offering price per share. The principal and accrued interest on the convertible note are due at maturity.

![](forms-1_016.jpg)

**FIREFLY AUTOMATIX, INC.**

**4,545,454** **SHARES OF COMMON STOCK**

**PRELIMINARY PROSPECTUS**

*Joint Book-Runners*

---

| | |
|:---|:---|
| **Roth Capital Partners** | **Lake Street** |
| **Chardan Capital Markets** | **Chardan Capital Markets** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, **2025**

**Through and including , 2025 (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. This delivery requirement is in addition to a dealer's obligation to deliver a prospectus when acting as underwriters and with respect to an unsold allotment or subscription.**

**PART II**

**INFORMATION NOT REQUIRED IN PROSPECTUS**

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

The following table presents the costs and expenses, other than underwriting discounts and commissions, payable in connection with this offering. All amounts are estimates except the SEC registration fee, the FINRA filing fee and listing fee. Except as otherwise noted, all the expenses below will be paid by us.

---

| | |
|:---|:---|
| SEC registration fee | $4109.34 |
| FINRA filing fee | 4993.63 |
| Exchange listing fee | 75000.00 |
| Printing and engraving expenses | 250000.00 |
| Legal fees and expenses | 650000.00 |
| Accounting fees and expenses | 300000 |
| Transfer agent and registrar fees | 20000.00 |
| Miscellaneous fees and expenses | 75000.00 |
| Total | $1379102.97 |

---

\* To be completed by amendment.

**Item 14. Indemnification of Directors and Officers**

Section 145 of the Delaware General Corporation Law authorizes a court to award, or a corporation's board of directors to grant, indemnity to directors and officers under certain circumstances and subject to certain limitations. The terms of Section 145 of the Delaware General Corporation Law are sufficiently broad to permit indemnification under certain circumstances for liabilities, including reimbursement of expenses incurred, arising under the Securities Act.

As permitted by the Delaware General Corporation Law, our amended and restated certificate of incorporation and amended and restated bylaws contain provisions relating to the limitation of liability and indemnification of directors and officers. Our amended and restated certificate of incorporation provides that our directors will not be personally liable to us or our stockholders for monetary damages for any breach of fiduciary duty as a director or officer, except for liability:

● for any breach of the duty of loyalty to us
or our stockholders;

● for acts or omissions not in good faith or that involve intentional
misconduct or a knowing violation of law;

● for a director in respect of unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in Section 174 of the Delaware
 General Corporation Law;

● for any transaction from
 which the director or officer derives any improper personal benefit; or

● for any action by or in the right of us against an officer

Our amended and restated certificate of incorporation also provides that if Delaware law is amended after the approval by our stockholders of the certificate of incorporation to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of our directors will be eliminated or limited to the fullest extent permitted by Delaware law.

Our amended and restated bylaws provide that we will indemnify our directors and officers to the fullest extent permitted by Delaware law, as it now exists or may in the future be amended, against all expenses and liabilities reasonably incurred in connection with their service for or on our behalf. Our Amended and Restated Bylaws provide that we shall advance the expenses incurred by a director or officer in advance of the final disposition of an action or proceeding, and permit us to secure insurance on behalf of any director, officer, employee, or other enterprise agent for any liability arising out of his or her action in that capacity, whether or not Delaware law would otherwise permit indemnification.

We intend to enter into indemnification agreements with each of our directors and executive officers and certain other key employees, a form of which is included as Exhibit 10.1 to this registration statement. The form of agreement provides that we will indemnify each of our directors, executive officers and such other key employees against any and all expenses incurred by that director, executive officer, or other key employee because of his or her status as one of our directors, executive officers, or other key employees, to the fullest extent permitted by Delaware law, our restated certificate of incorporation and our Amended and Restated Bylaws. In addition, the form agreement provides that, to the fullest extent permitted by Delaware law, we will advance all expenses incurred by our directors, executive officers and other key employees in connection with a legal proceeding.

Reference is made to the underwriting agreement contained in Exhibit 1.1 to this registration statement, indemnifying our directors and officers against limited liabilities.

We currently carry and intend to continue to carry liability insurance for our directors and officers.

**Item 15. Recent Sales of Unregistered Securities**

The issuances of the below securities were deemed to be exempt from registration under the Securities Act in reliance upon Section 4(a)(2) of the Securities Act or Regulation D promulgated thereunder, or Rule 701 promulgated under Section 3(b) of the Securities Act as transactions by an issuer not involving any public offering or pursuant to benefit plans and contracts relating to compensation as provided under Rule 701. Individuals who purchased securities as described below represented their intention to acquire the securities for investment only and not with a view to or for sale in connection with any distribution thereof, and appropriate legends were affixed to the share certificates issued in such transactions.

Since January 1, 2022 we have issued the following unregistered securities:

**Exchange Agreement**

On October 21, 2025, we entered into the Exchange Agreement with ATW. Under the Exchange Agreement, ATW agreed to (i) exchange (a) the outstanding principal and capitalized interest under the July 2019 Debenture, the April 2020 Debenture, and the September 2020 Debenture (each as defined below) and (b) certain of the July 2019 Warrants, April 20, 2020 Warrants, September 2020 Warrants, January 2022 Warrants, January 2023 Warrants, July 11, 2024 Warrants, July 25, 2024 Warrants, and June 2025 Warrants (each as defined below), for an aggregate of 41,206.58 shares of our Series A Preferred Stock (based upon a public offering price in this offering equal to $5.50, which is the mid-point of the price range set forth on the cover page of this prospectus), to be authorized immediately prior to this offering, and (ii) exercise, on a cashless basis, the remainder of the July 2019 Warrants, January 2022 Warrants, and January 2023 Warrants that are not being exchanged, such that ATW will beneficially own (as such term is defined under Section 13 of the Exchange Act and the rules and regulations promulgated thereunder) 1,965,916 shares of common stock (based upon a public offering price in this offering equal to $5.50, which is the mid-point of the price range set forth on the cover page of this prospectus), representing 9.99% of our common stock outstanding after the completion of this offering. The Exchange and Warrant Exercise will take place immediately prior to the completion of this offering and after the filing of our amended and restated certificate of incorporation and the Series A Certificate of Designation (as defined below). The shares of Series A Preferred Stock issued in the Exchange will be convertible, at the election of ATW, into an aggregate of 7,492,105 shares of common stock. For a description of the rights of the Series A Preferred Stock, see the section titled "*Description of Capital Stock - Series A Preferred Stock*". Following the Exchange and the Warrant Exercise, ATW will beneficially own 41,206.58 shares of Series A Preferred Stock and 1,965,916 shares of common stock, based upon a public offering price in this offering equal to $5.50, which is the mid-point of the price range set forth on the cover page of this prospectus.

**Service Provider Warrant Exercise**

On October 21, 2025, we entered into the Service Provider Warrant Exercise Agreement with certain service providers who previously received common stock purchase warrants with an exercise price of $2.00 per share. Under the terms of the Service Provider Warrant Exercise Agreement, these service providers agreed to exercise their warrants on a cashless basis for 80% of the shares initially issuable, resulting in the issuance of 32,000 shares of common stock.

**Convertible Note Financings**

In July 2025, we issued an unsecured convertible note to an investor in the principal amount of $100,000. The convertible note has a term of two years and bears interest at a rate of 15% per annum. The note will automatically convert into shares of common stock upon the closing of an underwritten public offering of common stock that raises at least $10,000,000 of gross proceeds, at a conversion price equal to the lesser of (i) $5.5674 per share or (ii) 90% of the initial public offering price per share. The principal and accrued interest on the convertible note are due at maturity.

In August 2025, we issued four unsecured convertible notes to three investors in the aggregate principal amount of $220,347.66. Each convertible note has a term of two years and bears interest at a rate of 15% per annum. The notes will automatically convert into shares of common stock upon the closing of an underwritten public offering of common stock that raises at least $10,000,000 of gross proceeds, at a conversion price equal to the lesser of (i) $5.5674 per share or (ii) 90% of the initial public offering price per share. The principal and accrued interest on the convertible notes are due at maturity.

**June 2025 Debenture**

The July 2024 Securities Purchase Agreement (defined below) allowed us to issue an additional 15% secured convertible debenture in an aggregate principal amount of $1,000,000 (the "June 2025 Debenture") and warrants to purchase 181,861 shares of our common stock (the "June 2025 Warrants") to FF 4. We borrowed the additional amount under the June 2025 Debenture and issued the June 2025 Warrants on June 18, 2025. The June 2025 Debenture accrues interest at a rate of 15% and is convertible into shares of our common stock at the lower of $5.5674 per share or 85% of the initial public offering price per share, subject to certain adjustments, including for subsequent equity sales at a lower price per share. The maturity date of the June 2025 Debenture is January 31, 2028. The June 2025 Warrants are exercisable from June 18, 2025, at an exercise price of $0.01 per share, subject to adjustments, and expire on June 18, 2035.

**December 2024 Subscription Agreements**

In December 2024, we issued an aggregate of 584,281 shares of common stock, comprised of 420,431 shares issued on December 2, 2024 and 163,850 shares issued on December 31, 2024, at a price of $5.77 per share, pursuant to subscription agreements with 75 investors, raising an aggregate amount of approximately $3,340,086.

**July 2024 Securities Purchase Agreement**

On July 25, 2024, we entered into a securities purchase agreement (the "July 2024 Securities Purchase Agreement") with FF 4, pursuant to which we issued a 15% secured convertible debenture in an aggregate principal amount of $1,000,000 (the "July 2024 Debenture") and warrants to purchase 181,861 shares of our common stock (the "July 25, 2024 Warrants") to FF 4. The July 2024 Debenture accrues interest at a rate of 15% and is convertible into shares of our common stock at the lower of $5.5674 per share or 85% of the initial public offering price per share, subject to certain adjustments, including for subsequent equity sales at a lower price per share. The maturity date of the July 2024 Debenture was originally July 25, 2025, extendable to January 25, 2027 by issuing certain extension warrants. In March 2025, the maturity date of the July 2024 Debenture was amended to January 31, 2027. In October 2025, the maturity date of the July 2024 Debenture was amended to January 31, 2028. The July 25, 2024 Warrants are exercisable from July 25, 2024 at an exercise price of $0.01 per share, subject to adjustments, and expire on July 25, 2034.

**July 2024 Extension Warrant**

On July 11, 2024, pursuant to the terms of the January 2023 Debenture and as consideration for extending the maturity date of the January 2023 Debenture to January 19, 2026, we issued FF 4 extension warrants to purchase 430,099 shares of our common stock. These extension warrants are exercisable from July 11, 2024 at an exercise price of $0.01 per share, subject to certain adjustments, and expire on July 11, 2034.

**Employee Stock Plan Purchase Agreements**

On February 21, 2024 and February 28, 2024, we entered into purchase agreements with 1 employee and 12 employees, respectively, raising an aggregate amount of $79,729. Pursuant to these agreements, we issued 13,963 shares of common stock at a purchase price of $5.71 per share.

**August 2023 to June 2024 Subscription Agreements**

From August 16, 2023 to June 30, 2024, we entered into subscription agreements with 75 investors, raising an aggregate amount of $2,670,715. Pursuant to these agreements, we issued 467,726 shares of common stock at a price of $5.71 per share.

The table below outlines the execution dates of the subscription agreements and the corresponding number of shares for each date:

---

| | |
|:---|:---|
| **Execution Date** | **Number of Shares** |
| August 16, 2023 | 100646 |
| August 24, 2023 | 10301 |
| September 7, 2023 | 40889 |
| September 25, 2023 | 60674 |
| October 2, 2023 | 8540 |
| October 27, 2023 | 40523 |
| October 30, 2023 | 10000 |
| January 31, 2024 | 89792 |
| February 5, 2024 | 1760 |
| February 21, 2024 | 1751 |
| February 28, 2024 | 15714 |
| April 8, 2024 | 3502 |
| April 15, 2024 | 6305 |
| May 8, 2024 | 68576 |
| May 31, 2024 | 4378 |
| June 30, 2024 | 4375 |
| Total | 467726 |

---

**January 2023 Securities Purchase Agreement**

On January 19, 2023, we entered into a securities purchase agreement (the "January 2023 Securities Purchase Agreement") with FF Opportunities 4 LLC ("FF 4"), pursuant to which we issued a 15% secured convertible debenture in an aggregate principal amount of $2,000,000 (the "January 2023 Debenture") and warrants to purchase 360,475 shares of our common stock (the "January 2023 Warrants") to FF 4. As a result of certain adjustments, the January 2023 Debenture accrues interest at a rate of 15% and is convertible into shares of our common stock at a price of $5.7705 per share, subject to certain adjustments, including for subsequent equity sales at a lower price per share. The maturity date of the January 2023 Debenture was originally July 19, 2024 and has since been amended to January 31, 2028. The January 2023 Warrants are exercisable from January 19, 2023 at an exercise price of $0.01 per share, subject to certain adjustments, and expire on January 19, 2033.

**January 2022 Securities Purchase Agreement**

On January 13, 2022, we entered into a securities purchase agreement (the "January 2022 Securities Purchase Agreement") with FF Opportunities 3 LLC ("FF 3"), pursuant to which we issued an 11% secured convertible debenture in an aggregate principal amount of $3,000,000 (the "January 2022 Debenture") and warrants to purchase 531,427 shares of our common stock (the "January 2022 Warrants") to FF 3. The initial loan accrues interest at a rate of 11%. Accrued but unpaid interest may be added to the principal, with such amounts accruing interest at a rate of 14%. The January 2022 Debenture is convertible into shares of our common stock at a price of $10.58 per share, subject to certain adjustments, including for subsequent equity sales at a lower price per share, and had an initial maturity date of January 13, 2025, which has since been amended to January 31, 2028. The January 2022 Warrants are exercisable from January 13, 2022 at an exercise price of $0.01 per share, subject to certain adjustments, and expire on January 13, 2032. In subsequent waiver agreements, FF 3 waived certain conversion and price adjustment rights related to equity sales at a lower price per share in connection with the January 2023 Securities Purchase Agreement and the July 2024 Securities Purchase Agreement.

**2016 Stock Plan-Related Issuances**

In the three years preceding the date of this registration statement, we granted to our employees, officers, directors, consultants and other service providers options to purchase an aggregate of 1,582,967 shares of common stock at per share exercise prices ranging from $5.71 to $5.77, under the 2016 Stock Plan.

**Item 16. Exhibits and Financial Statement Schedules**

*(a)* *Exhibits.* The following exhibits are included herein or incorporated herein by reference:

---

| | |
|:---|:---|
| **Exhibit**<br> **Number**  | **Description** |
| 1.1 | [Form of Underwriting Agreement](ex1-1.htm) |
| 3.1\*\* | [Amended and Restated Certificate of Incorporation of Registrant, as currently in effect](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex3-1.htm) |
| 3.2\*\* | [Amended and Restated Bylaws of Registrant, as currently in effect](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex3-2.htm) |
| 3.3\*\* | [Form of Amended and Restated Certificate of Incorporation of Registrant, to be effective upon completion of this offering](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex3-3.htm) |
| 3.4\*\* | [Form of Amended and Restated Bylaws of Registrant, to be effective upon completion of this offering](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex3-4.htm) |
| 3.5 | [Form of Certificate of Designation of Preferences, Rights, and Limitations of Series A Convertible Preferred Stock](ex3-5.htm) |
| 4.1\*\* | [Common Stock Purchase Warrant, dated July 17, 2019, by and between the Registrant and ATW Partners LLC](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex4-2.htm) |
| 4.2\*\* | [Common Stock Purchase Warrant, dated April 22, 2020, by and between the Registrant and ATW Partners LLC](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex4-3.htm) |
| 4.3\*\* | [Common Stock Purchase Warrant, dated September 4, 2020, by and between the Registrant and ATW Partners LLC](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex4-4.htm) |
| 4.4\*\* | [Common Stock Purchase Warrant, dated January 13, 2022, by and between the Registrant and FF Opportunities 3 LLC](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex4-5.htm) |
| 4.5\*\* | [Common Stock Purchase Warrant, dated January 19, 2023, by and between the Registrant and FF Opportunities 4 LLC](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex4-6.htm) |
| 4.6\*\* | [Common Stock Purchase Warrant, dated July 11, 2024, by and between the Registrant and FF Opportunities 4 LLC](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex4-7.htm) |
| 4.7\*\*  | [Common Stock Purchase Warrant, dated July 25, 2024, by and between the Registrant and FF Opportunities 4 LLC](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex4-8.htm) |
| 4.8\*\* | [Common Stock Purchase Warrant, dated June 18, 2025, by and between the Registrant and FF Opportunities 4 LLC](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex4-9.htm) |
| 4.9 | [Form of Representatives' Warrant](ex4-9.htm) |
| 5.1 | [Opinion of Dorsey & Whitney LLP](ex5-1.htm) |
| 10.1 | [Form of Indemnification Agreement by and between the Registrant and each of its directors and executive officers](ex10-1.htm) |
| 10.2\*\* | [2016 Stock Plan](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-2.htm) |
| 10.3\*\* | [First Amendment to 2016 Stock Plan](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-3.htm) |
| 10.4\*\* | [2025 Equity Incentive Plan](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-4.htm) |
| 10.5 | [Lease Agreement, dated October 1, 2018, by and between the Registrant and CLPF – Crossroads I, L.P.](ex10-5.htm) |
| 10.6 | [First Amendment to Lease, dated January 5, 2024, by and between the Registrant and CLPF – Crossroads I, L.P.](ex10-6.htm) |
| 10.7 | [Exchange Agreement, dated October 21, 2025, by and between the Registrant and the Holders thereto](ex10-7.htm) |
| 10.8 | [Registration Rights Agreement, dated October 21, 2025, by and between the Registrant and the Holders thereto](ex10-8.htm) |
| 10.9\*\* | [Securities Purchase Agreement, dated July 17, 2019, by and between the Registrant and the Purchasers thereto](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-10.htm) |
| 10.10\*\* | [Convertible Debenture, dated July 17, 2019, by and between the Registrant and ATW Partners LLC](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-11.htm) |
| 10.11\*\* | [Security Agreement, dated July 17, 2019, by and between the Registrant, all of the subsidiaries of the Registrant, and the Secured Parties thereto](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-12.htm) |
| 10.12\*\* | [Securities Purchase Agreement, dated April 22, 2020, by and between the Registrant and the Purchasers thereto](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-13.htm) |
| 10.13\*\* | [Convertible Debenture, dated April 22, 2020, by and between the Registrant and ATW Partners LLC](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-14.htm) |
| 10.14\*\* | [Securities Purchase Agreement, dated September 4, 2020, by and between the Registrant and the Purchasers thereto](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-15.htm) |
| 10.15\*\* | [Convertible Debenture, dated September 4, 2020, by and between the Registrant and ATW Partners LLC](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-16.htm) |
| 10.16\*\* | [Securities Purchase Agreement, dated January 13, 2022, by and between the Registrant and FF Opportunities 3 LLC](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-17.htm) |
| 10.17\*\* | [Convertible Debenture, dated January 13, 2022, by and between the Registrant and FF Opportunities 3 LLC](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-18.htm) |
| 10.18\*\* | [Securities Purchase Agreement, dated January 19, 2023, by and between the Registrant and FF Opportunities 4 LLC](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-19.htm) |
| 10.19\*\* | [Convertible Debenture, dated January 19, 2023, by and between the Registrant and FF Opportunities 4 LLC](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-20.htm) |
| 10.20\*\* | [Security Agreement, dated January 19, 2023, by and between the Registrant, all of the subsidiaries of the Registrant, and the Secured Parties thereto](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-21.htm) |
| 10.21\*\* | [Subordination Agreement, dated January 19, 2023, by and between the Registrant, all of the subsidiaries of the Registrant, and the Creditors thereto](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-22.htm) |
| 10.22\*\* | [Securities Purchase Agreement, dated July 25, 2024, by and between the Registrant and FF Opportunities 4 LLC](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-23.htm) |
| 10.23\*\* | [Convertible Debenture, dated July 25, 2024, by and between the Registrant and FF Opportunities 4 LLC](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-24.htm) |
| 10.24\*\* | [Security Agreement, dated July 25, 2024, by and between the Registrant, all of the subsidiaries of the Registrant, and the Secured Parties thereto](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-25.htm) |
| 10.25\*\* | [Subordination Agreement, dated July 25, 2024, by and between the Registrant, all of the subsidiaries of the Registrant, and the Creditors thereto](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-26.htm) |
| 10.26\*\* | [Convertible Debenture, dated June 18, 2025, by and between the Registrant and FF Opportunities 4 LLC](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-27.htm) |
| 10.27\*\* | [Form of Convertible Note](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-28.htm) |
| 10.28\*\* | [Form of Warrant Exercise Agreement](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex10-29.htm) |
| 10.29 | [Omnibus Amendment Agreement dated October 10, 2025, by and between the Registrant, FF Opportunities 2 LLC, FF Opportunities 3 LLC, and FF Opportunities 4 LLC](ex10-29.htm) |
| 16.1\*\* | [Letter from Pinnacle Accountancy Group](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex16-1.htm) |
| 16.2\*\* | [Letter from Moss Adams, LLP](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex16-2.htm) |
| 21.1\*\* | [Subsidiaries of the Registrant](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex21-1.htm) |
| 23.1 | [Consent of Baker Tilly US, LLP, Independent Registered Public Accounting Firm.](ex23-1.htm) |
| 23.2 | [Consent of Dorsey & Whitney LLP (contained in Exhibit 5.1).](ex5-1.htm) |
| 24.1\*\* | [Power of Attorney (included on signature page).](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/forms-1.htm#poa) |
| 107\*\* | [Filing fee table](https://www.sec.gov/Archives/edgar/data/1660851/000149315225017135/ex107.htm) |

---

\* To be filed by amendment.

\*\* Previously filed.

# Indicates management contract or compensatory plan.

† Pursuant to Item 601(a)(5) of Regulation S-K, certain exhibits and schedules to this agreement have been omitted. We hereby agree to furnish supplementally to the Securities and Exchange Commission, upon its request, any or all of such omitted exhibits and/or schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b) Financial Statement Schedules.* All schedules have been omitted because the information required to be presented in them is not applicable or is shown in the consolidated financial statements or related notes.

**Item 17. Undertakings**

The undersigned registrant hereby undertakes to provide to the underwriter at the closing specified in the underwriting agreement certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(l) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the purpose of determining any liability under the Securities Act of 1933, as amended, each post-effective amendment that contains a form of prospectus 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.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Salt Lake City, State of Utah, on October 23, 2025.

---

| | |
|:---|:---|
| FIREFLY AUTOMATIX, INC. | FIREFLY AUTOMATIX, INC. |
| By: | */s/ Andrew W. Limpert* |
|  | Andrew W. Limpert |
|  | *Chief Executive Officer* |

---

Pursuant to the requirements of the Securities Act of 1933, as amended, this registration statement on Form S-1 has been signed by the following persons in the capacities held on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| */s/ Andrew W. Limpert* | Chief Executive Officer and Director |  |
| Andrew W. Limpert | (*Principal Executive Officer*) | October 23, 2025 |
| */s/ Lindsay Jones* | Chief Financial Officer |  |
| Lindsay Jones | (*Principal Financial Officer and Accounting Officer*) | October 23, 2025 |
| \* | Director and Chairman of the Board of Directors |  |
| Steven R. Aposhian |  | October 23, 2025 |
| \* | Director |  |
| Matthew G. Aposhian |  | October 23, 2025 |
| \* | Director |  |
| Christopher R. Christensen |  | October 23, 2025 |
| \* | Director |  |
| Liz Hocker |  | October 23, 2025 |
| \* | Director |  |
| Paul Richardson |  | October 23, 2025 |
| \* | Director |  |
| JuE Wong |  | October 23, 2025 |

---

---

| | |
|:---|:---|
| \*By: | */s/ Andrew W. Limpert* |
| Name: | Andrew W. Limpert |
| Title: | Attorney-in-Fact |

---

## Exhibit 1.1

**Exhibit 1.1**

**FIREFLY AUTOMATIX, INC.**

**[●] Shares of Common Stock**

**<u>UNDERWRITING AGREEMENT</u>**

[●], 2025

Roth Capital Partners, LLC

888 San Clemente Drive

Newport Beach, California 92660

and

Lake Street Capital Markets, LLC

920 2<sup>nd</sup> Avenue South, Suite 700

Minneapolis, Minnesota 55402

As Representatives of the several Underwriters named on Schedule A

Ladies and Gentlemen:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. *Introductory*. Firefly Automatix, Inc., a Delaware corporation (the "**Company**"), agrees with Roth Capital Partners, LLC and Lake Street Capital Markets, LLC (the "**Representatives**"), acting as representatives of the several underwriters named in Schedule A hereto (the "**Underwriters**") to issue and sell to the several Underwriters an aggregate of [●] shares of common stock, par value $0.001 per share ("**Common Stock**"), of the Company (the "**Firm Securities**"). The Company has also granted to the Underwriters an option to purchase up to [●]<sup>1</sup> additional shares of Common Stock (the "**Option Securities**"), as set forth below. The Firm Securities and the Option Securities are herein collectively called the "**Offered Securities**".

Furthermore, the Company agrees to issue to the Representatives (and/or its designees) on each Closing Date, warrants in the form attached hereto as Exhibit C, to purchase such number of shares of Common Stock (the "**Warrant Shares**") equal to three and one-half percent (3.5%) of the aggregate number of Offered Securities issued on each Closing Date (individually, a "**Representatives' Warrant**" and collectively, the "**Representatives' Warrants**" and together with the Offered Securities and Warrant Shares, the "**Public Securities**"). The Representatives' Warrants may be exercised by the payment of cash or via cashless exercise, shall be exercisable for a period of three years from the date of commencement of sales of the Offering and will terminate on the third anniversary of the date of commencement of sales of the Offering. The initial exercise price of the Representatives' Warrants shall be $[●] per share of Common Stock, which is equal to one hundred and twenty percent (120%) of the public offering price of the Offered Securities. The Representatives' Warrants and the Warrant Shares will be deemed compensation by the Financial Industry Regulatory Authority, Inc. ("**FINRA**"), and therefore will be subject to FINRA Rule 5110(e)(1). In accordance with FINRA Rule 5110(e)(1), neither the Representatives' Warrants nor any of the Warrant Shares may be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of such securities by any person, for a period of 180 days beginning on the date of commencement of sales of the Offering, subject to certain exceptions as set forth in FINRA Rule 5110(e)(2).

<sup>1</sup> NTD: 15% of securities issued in the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. *Representations and Warranties of the Company*. The Company represents and warrants to, and agrees with, each of the Underwriters that, as of the date hereof and as of each Closing Date (as if made at such Closing Date):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Filing and Effectiveness of Registration Statement; Certain Defined Terms*. The Company has prepared and filed with the Commission a registration statement covering the Public Securities on Form S-1 (File No. 333-290743), including any related prospectus or prospectuses, under the Act and the Rules and Regulations, which registration statement and amendment or amendments have been prepared by the Company in conformity with the requirements of the Act. Such registration statement, including amendments thereto (including post-effective amendments thereto), and all documents and information deemed to be a part of the Registration Statement at the time of effectiveness thereof (the "**Registration Statement Effective Time**"), the exhibits and any schedules thereto at the Registration Statement Effective Time or thereafter during the period of effectiveness and the documents and all information deemed to be a part thereof as of the Effective Date pursuant to paragraph (b) of Rule 430A of the Act (the "**Rule 430A Information**") or included therein by the Act or otherwise pursuant to the Rules and Regulations at the Registration Statement Effective Time or thereafter during the period of effectiveness, is herein called the "**Registration Statement**." If the Company files any registration statement pursuant to Rule 462(b) of the Act (the "**Rule 462 Registration Statement**"), then after such filing, the term "Registration Statement" shall include such Rule 462 Registration Statement. Any preliminary prospectus included in the Registration Statement or filed with the Commission pursuant to Rule 424(a) under the Act is hereinafter called a "**Preliminary Prospectus**." The Preliminary Prospectus relating to the Securities that was included in the Registration Statement at the time the Registration Statement was declared effective by the Commission is hereinafter called the "**Pricing Prospectus**." The Registration Statement has been declared effective by the Commission.

The Company is filing with the Commission pursuant to Rule 424 under the Act a final prospectus covering the Public Securities, which includes the information permitted to be omitted therefrom at the Registration Statement Effective Time by Rule 430A under the Act. Such final prospectus, as so filed, is hereinafter called the "**Final Prospectus**." The Final Prospectus, the Pricing Prospectus and any preliminary prospectus in the form in which they were included in the Registration Statement or filed with the Commission pursuant to Rule 424 under the Act is hereinafter called a "**Prospectus**."

For purposes of this Agreement:

"**Act**" means the Securities Act of 1933, as amended.

"**Applicable Time**" means [●]:00 pm (Eastern time) on the date of this Agreement.

"**Commission**" means the Securities and Exchange Commission.

"**Effective Date**" means the date and time that the Registration Statement became effective.

"**Exchange Act**" means the Securities Exchange Act of 1934, as amended.

"**Issuer Free Writing Prospectus**" means any "issuer free writing prospectus," as defined in Rule 433 under the Act ("**Rule 433**"), including any "free writing prospectus" (as defined in Rule 405 under the Act) relating to the Public Securities that is (i) required to be filed with the Commission by the Company, (ii) a "road show that is a written communication" within the meaning of Rule 433(d)(8)(i), whether or not required to be filed with the Commission, or (iii) exempt from filing with the Commission pursuant to Rule 433(d)(5)(i) or (d)(8) under the Act, in each case in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company's records pursuant to Rule 433(g).

"**Offering**" means the offering and sale of the Offered Securities.

"**Pricing Disclosure Package**" means the Pricing Prospectus, any Permitted Free Writing Prospectuses set forth on Schedule B and the information included on Schedule B hereto, all considered together.

"**Rules and Regulations**" means the rules and regulations of the Commission.

**"Securities Laws"** means, collectively, the Sarbanes-Oxley Act of 2002, as amended and all rules and regulations promulgated thereunder or implementing the provisions thereof ("**Sarbanes-Oxley**"), the Act, the Exchange Act, the Rules and Regulations, the auditing principles, rules, standards and practices applicable to auditors of "issuers" (as defined in Sarbanes-Oxley) promulgated or approved by the Public Company Accounting Oversight Board and, as applicable, the rules of The Nasdaq Stock Market LLC ("**Exchange Rules**").

"**Testing-the-Waters Communication**" means any oral or written communication with potential investors undertaken in reliance on Section 5(d) of the Act or Rule 163B under the Act.

"**Written Testing-the-Waters Communication**" means any Testing-the-Waters Communication that is a written communication within the meaning of Rule 405 under the Act.

Unless otherwise specified, a reference to a "rule" is to the indicated rule under the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Compliance with the Act Requirements*. At each time of effectiveness, at the date hereof, at the First Closing Date, and at each Option Closing Date, if any, the Registration Statement and any post-effective amendment thereto complied or will comply in all material respects with the requirements of the Act, the Exchange Act and the Rules and Regulations and did not, does not, and will not, as the case may be, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. The Pricing Disclosure Package, as of the Applicable Time on the date hereof, and at the First Closing Date and on each Option Closing Date, if any, and the Final Prospectus, as amended or supplemented, as of its date, at the time of filing pursuant to Rule 424(b) under the Act, and at the First Closing Date and at each Option Closing Date, if any, and any individual Written Testing-the-Waters Communication, when considered together with the Pricing Disclosure Package, complied or will comply in all material respects with the requirements of the Act, the Exchange Act and the Rules and Regulations and did not, does not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. The representations and warranties set forth in the two immediately preceding sentences shall not apply to statements in or omissions from the Registration Statement, the Pricing Disclosure Package or any Prospectus in reliance upon, and in conformity with, written information furnished to the Company by the Underwriters specifically for use in the preparation thereof, which written information is described in Section 7(f). The Registration Statement contains all exhibits and schedules required to be filed by the Act or the Rules and Regulations. No order preventing or suspending the effectiveness or use of the Registration Statement or any Prospectus is in effect and no proceedings for such purpose have been instituted or are pending, or, to the knowledge of the Company, are contemplated or threatened by the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Ineligible Issuer Status.* At the time of filing the Registration Statement and any post-effective amendment thereto, at the time of effectiveness of the Registration Statement and any amendment thereto, the Company was not and is not an "ineligible issuer," as defined in Rule 405 under the Act or an "excluded issuer" as defined in Rule 164 under the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Emerging Growth Company Status*. From the time of the initial confidential submission of the Registration Statement to the Commission (or, if earlier, the first date on which the Company engaged directly or through any person authorized to act on its behalf in any Testing-the-Waters Communication) through the date hereof, the Company has been and is an "emerging growth company," as defined in Section 2(a) of the Act (an "**Emerging Growth Company**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Marketing Materials*. The Company has not distributed any prospectus or other offering material in connection with the Offering other than the Pricing Disclosure Package and the roadshow or investor presentations delivered to and approved by the Representatives for use in connection with the marketing of the Offering (the "**Marketing Materials**"). Except for Marketing Materials approved in writing by the Representatives, no Marketing Materials have been provided to investors or prospective investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Testing-the-Waters Communication*. The Company (i) has not alone engaged in any Testing-the-Waters Communications, other than Testing-the-Waters Communications with the prior written consent of the Representatives with entities that are qualified institutional buyers within the meaning of Rule 144A under the Act or institutions that are accredited investors within the meaning of Rule 501 under the Act and (ii) has not authorized anyone other than the Underwriters to engage in Testing-the-Waters Communications. The Company reconfirms that the Underwriters have been authorized to act on its behalf in undertaking Testing-the-Waters Communications. The Company has not distributed any Written Testing-the-Waters Communications other than those listed on Schedule D hereto. Any individual Written Testing-the-Waters Communication does not, and at all times through the completion of the public offer and sale of Offered Securities will not, conflict with the information contained in the Registration Statement, the Pricing Disclosure Package or the Final Prospectus, complied, and at all times through the completion of the public offer and sale of Offered Securities will comply, in all material respects with the Act, and when taken together with the Pricing Disclosure Package and the Final Prospectus, did not and will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Good Standing.* The Company and each of its Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, has the power and authority (corporate and other) to own, lease and operate its properties and to conduct its business as currently being conducted and as described in the Registration Statement, Pricing Disclosure Package and the Final Prospectus and is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or lease of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not have or be reasonably likely to result in a material adverse effect on the condition (financial or otherwise), results of operations, business, properties or prospects of the Company and its Subsidiaries taken as a whole ("**Material Adverse Effect**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Subsidiaries.* Each of the Company's direct and indirect subsidiaries (each a "**Subsidiary**" and collectively, the "**Subsidiaries**") has been identified on Exhibit 21.1 to the Registration Statement. All of the outstanding equity interests of each Subsidiary have been duly and validly authorized and issued, are owned directly or indirectly by the Company, are fully paid and non-assessable and are free and clear of all liens, encumbrances, equities or claims. None of the outstanding share capital or equity interest in any Subsidiary was issued in violation of preemptive or similar rights of any security holder of such Subsidiary. All of the constitutive or organizational documents of each of the Subsidiaries comply with the requirements of applicable laws of its jurisdiction of incorporation or organization and are in full force and effect. Apart from the Subsidiaries, the Company has no direct or indirect subsidiaries or any other company over which it has direct or indirect effective control, ownership, or interest in.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Capitalization; Offered Securities*. The Company has an authorized and outstanding capitalization as set forth in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus. All of the issued and outstanding shares of capital stock of the Company are duly authorized and validly issued, fully paid and nonassessable, have been issued in compliance with all applicable Securities Laws, were not issued in violation of or subject to any preemptive, registration or similar rights, and conform in all material respects to the description thereof in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus. All of the issued shares of capital stock of or other equity interests in each Subsidiary of the Company have been duly and validly authorized and issued, are fully paid and non-assessable and are owned directly or indirectly by the Company, free and clear of all liens, encumbrances, equities or claims. Except for the issuances of options or restricted stock in the ordinary course of business, since the respective dates as of which information is provided in the Registration Statement, the Pricing Disclosure Package or the Final Prospectus, the Company has not entered into or granted any convertible or exchangeable securities, options, warrants, agreements, contracts or other rights in existence to purchase or acquire from the Company any shares of the capital stock of the Company. The Offered Securities, when issued and paid for as provided herein, will be duly authorized and validly issued, fully paid and nonassessable, will be issued in compliance with all applicable Securities Laws, and will be free of preemptive, registration or similar rights and will conform to the description of the capital stock of the Company contained in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus. The Warrant Shares, when issued, paid for and delivered upon due exercise of the Representatives' Warrants will be duly authorized and validly issued, fully paid and nonassessable, will be issued in compliance with all applicable Securities Laws, and will be free of preemptive, registration or similar rights. The Warrant Shares have been reserved for issuance. The Representatives' Warrants, when issued, will conform in all material respects to the descriptions thereof set forth in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *FINRA Disclosure*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) *No Finder's Fee.* Except as disclosed in the Registration Statement, the Pricing Disclosure Package, and the Final Prospectus and as contemplated by this Agreement, there are no contracts, arrangements, agreements, understandings, payments or issuances between the Company and any person that would give rise to a valid claim against the Company or any Underwriter for the payment of a brokerage commission or a finder's, agent's consulting or origination fee or other like payment by the Company or any Subsidiary in connection with this Offering or any other arrangements, agreements, understandings, payments or issuances with respect to the Company or any Subsidiary or, to the Company's knowledge, any of its shareholders, that may affect the Underwriters' compensation, as determined by FINRA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) *Payments Within Twelve Months*. Except as described in the Pricing Disclosure Package and the Final Prospectus, none of the Company or its Subsidiaries has made any direct or indirect payments (in cash, securities or otherwise) to: (A) any person, as a finder's fee, investing fee, consulting fee or otherwise, in consideration of such person raising capital for the Company or introducing to the Company persons who raised or provided capital to the Company; (B) any FINRA member; or (C) any person or entity that has any direct or indirect affiliation or association with any FINRA member, within the twelve-month period prior to the date on which the Registration Statement was initially filed with the Commission, or thereafter, other than the payment to the Underwriters as provided hereunder in connection with the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) *Use of Proceeds*. None of the net proceeds of the Offering will be paid by the Company to any participating FINRA member or any affiliate or associate of any participating FINRA member, except as specifically authorized herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) *FINRA Affiliation*. To the Company's knowledge, no (i) officer or director of the Company or its Subsidiaries, (ii) owner of 10% or more of any class of the Company's securities or (iii) owner of any amount of the Company's unregistered securities acquired within the 180-day period prior to the date on which the Registration Statement was initially filed with the Commission, has any direct or indirect affiliation or association with any FINRA member. The Company will advise the Representatives and counsel to the Representatives if it becomes aware that any officer or director of the Company or its Subsidiaries or any owner of 10% or more of any class of the Company's securities is or becomes an affiliate or associated person of a FINRA member participating in the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) *Information*. All information provided by the Company in its FINRA questionnaire to the Representatives' counsel specifically for use by the Representatives' counsel in connection with its Public Offering System filings (and related disclosure) with FINRA is true, correct and complete in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *Registration Rights.* Except as disclosed in the Registration Statement, Pricing Disclosure Package and the Final Prospectus, no person or entity has the right to require registration under the Act of shares of Common Stock or any other securities of the Company or any of its Subsidiaries because of the filing or effectiveness of the Registration Statement or otherwise, except for persons and entities who have expressly waived such right in writing, or who have been given timely and proper written notice and have failed to exercise such right within the time or times required under the terms and conditions of such right, or who have acknowledged in writing that such right has been satisfied by the inclusion of securities in the Registration Statement. Except as disclosed in the Registration Statement, Pricing Disclosure Package and the Final Prospectus, there are no persons or entities with preemptive, registration or similar rights to have any securities registered by the Company under the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) *Absence of Further Requirements.* No consents, approvals, orders, authorizations or filings are required on the part of the Company in connection with the execution, delivery or performance of this Agreement, the Representatives' Warrants and any other documents or agreements executed in connection with the transactions contemplated hereunder and the issue and sale of the Public Securities, except (A) the registration under the Act of the Public Securities, which has been effected, (B) the necessary filings and approvals from the Exchange to list the Public Securities, (C) such consents, approvals, authorizations, registrations or qualifications as may be required under state or foreign securities or blue sky laws and the rules of FINRA in connection with the purchase and distribution of the Public Securities by the Underwriters, (D) such consents and approvals as have been obtained and are in full force and effect, and (E) such consents, approvals, orders, authorizations and filings the failure of which to make or obtain is not reasonably likely to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) *Validity and Binding Effect of Agreements*. The Company has the power and authority to enter into this Agreement, the Representatives' Warrants and any other documents or agreements executed in connection with the transactions contemplated hereunder and to authorize, issue and sell the Public Securities as contemplated by such agreements. This Agreement, the Representatives' Warrants and any other documents or agreements executed in connection with the transactions contemplated hereunder have been duly authorized by the Company, and when executed and delivered by the Company, will constitute the valid, legal and binding obligations of the Company, enforceable against the Company in accordance with their respective terms, except as rights to indemnity hereunder may be limited by federal or state Securities Laws or public policy and except as enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting the rights of creditors generally and subject to general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) *Absence of Defaults and Conflicts Resulting from Transaction.* The execution, delivery and performance of this Agreement, the Representatives' Warrants and any other documents or agreements executed in connection with the transactions contemplated hereunder, the issuance and sale of the Offered Securities and the application of the net proceeds therefrom as set forth in the Pricing Disclosure Package and the Final Prospectus will not (A) result in a breach or violation of any of the terms and provisions of, or constitute a default under, any law, order, rule or regulation to which the Company or any Subsidiary is subject, or by which any property or asset of the Company or any Subsidiary is bound or affected, except to the extent that the breach or violation is not reasonably likely to result in a Material Adverse Effect, (B) conflict with, result in any violation or breach of, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any right of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) (a "**Default Acceleration Event**") of, any agreement, lease, credit facility, debt, note, bond, mortgage, indenture or other instrument (the "**Contracts**") or obligation or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, except to the extent that such conflict, violation, breach, default, or Default Acceleration Event is not reasonably likely to result in a Material Adverse Effect, or (C) result in a breach or violation of any of the terms and provisions of, or constitute a default under, the Company's Certificate of Incorporation, Articles of Association, Memorandum of Association, or similar or governing organizational documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) *Absence of Existing Defaults and Conflicts.* Neither the Company nor any of its Subsidiaries is (i) in violation, breach or default of its respective Certificate of Incorporation, Articles of Association, Memorandum of Association, or similar organizational or governing documents; (ii) in default (or with the giving of notice or lapse of time would be in default) under any existing obligation, agreement, covenant or condition contained in any indenture, loan agreement, mortgage, lease or other agreement or instrument to which any of them is a party or by which any of them is bound or to which any of the properties of any of them is subject, except for such defaults that have been waived, as described in the Registration Statement; or (iii) in violation or breach of, or default under, any law, statute, judgment, order, decree, rule or regulation of any court, arbitrator or governmental or regulatory authority, except in the case of clauses (ii) and (iii) above, for any such defaults or violation that would not, individually or in the aggregate, result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) *Possession of Licenses and Permits; Compliance with Laws.* The Company and its Subsidiaries hold, possess, and are in compliance with, all adequate certificates, authorizations, franchises, grants, authorizations, licenses, easements, consents, certificates, orders and permits issued by appropriate federal, state, local or foreign governmental, self-regulatory, agencies, authorities or bodies (collectively, "**Licenses**") necessary or material to the conduct of the business now conducted or proposed in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus to be conducted by them. All such Licenses are in full force and effect. The Company and each of its Subsidiaries are in compliance with the terms and conditions of all such Licenses and have not received any notice of proceedings relating to the revocation or modification of any Licenses and do not have reason to believe that any Licenses will not be renewed in the ordinary course. Each of the Company and its Subsidiaries is in compliance in all material respects with all applicable federal, state, local and foreign laws, regulations, orders and decrees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) *Absence of Labor Dispute.* There is: (i) no unfair labor practice complaint pending against the Company or any of its Subsidiaries, nor to the Company's knowledge, threatened or imminent against it or any of its Subsidiaries, before the National Labor Relations Board, any state or local labor relation board or any foreign labor relations board, and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement is so pending against the Company or any of its Subsidiaries, or, to the Company's knowledge, threatened or imminent against it or any of its Subsidiaries; and (ii) no labor problem, dispute or disturbance by the employees of the Company or any of its Subsidiaries exists or, to the Company's knowledge, is threatened or imminent, and the Company is not aware of any existing or imminent labor problem, dispute or disturbance by the employees of any of its or its Subsidiaries, principal suppliers, manufacturers, customers or contractors, that could reasonably be expected, singularly or in the aggregate, to have a Material Adverse Effect. The Company is not aware that any key employee or significant group of employees of the Company or any Subsidiary plans to terminate employment with the Company or any such Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) *Possession of Intellectual Property.* The Company and each of its Subsidiaries owns or possesses or has valid right to use all patents, patent applications, trademarks, service marks, trade names, trademark registrations, service mark registrations, copyrights, licenses, inventions, trade secrets and similar rights ("**Intellectual Property**") necessary or required for the conduct of the business of the Company and its Subsidiaries as currently carried on and as described in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus. To the Company's knowledge, no action or use by the Company or any of its Subsidiaries will involve or give rise to any infringement of, or license or similar fees for, any Intellectual Property of others, except where such action, use, license or fee is not reasonably likely to result in a Material Adverse Effect. Neither the Company nor any of its Subsidiaries has received any notice alleging any such infringement, conflict or fee. To the Company's knowledge, none of the technology employed by the Company or any Subsidiary has been obtained or is being used by the Company or such Subsidiary in violation of any contractual obligation binding on the Company or such Subsidiary or, to the Company's knowledge, any of the officers, directors or employees of the Company or any Subsidiary, or, to the Company's knowledge, otherwise in violation of the rights of any persons. The Company and its Subsidiaries have taken commercially reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) *Environmental Laws.* The Company and its Subsidiaries are in compliance with all foreign, federal, state and local rules, laws and regulations relating to the use, treatment, storage and disposal of hazardous or toxic substances or waste and protection of health and safety or the environment which are applicable to their businesses, except where the failure to comply has not had and would not reasonably be expected to have, singularly or in the aggregate, a Material Adverse Effect. There has been no storage, generation, transportation, handling, treatment, disposal, discharge, emission, or other release of any kind of toxic or other wastes or other hazardous substances by, due to, or caused by the Company or any of its Subsidiaries (or, to the Company's knowledge, any other entity for whose acts or omissions the Company or any of its Subsidiaries is or may otherwise be liable) upon any of the property now or previously owned or leased by the Company or any of its Subsidiaries, or upon any other property, in violation of any law, statute, ordinance, rule, regulation, order, judgment, decree or permit or which would, under any law, statute, ordinance, rule (including rule of common law), regulation, order, judgment, decree or permit, give rise to any liability, except for any violation or liability which has not had and would not reasonably be expected to have, singularly or in the aggregate, a Material Adverse Effect; and there has been no disposal, discharge, emission or other release of any kind onto such property or into the environment surrounding such property of any toxic or other wastes or other hazardous substances with respect to which the Company or any of its Subsidiaries has knowledge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) *Accurate Disclosure.* The statements set forth in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, insofar as such statements summarize legal matters, agreements, documents or proceedings discussed therein, are accurate, complete and fair summaries of such legal matters, agreements, documents or proceedings and present the information required to be shown. There are no contracts or other documents required to be described in the Registration Statement, the Pricing Disclosure Prospectus or the Final Prospectus or to be filed as exhibits to the Registration Statement that have not been fairly and accurately described or filed as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) *Statistical and Market-Related Data.* All statistical and market-related data included in the Registration Statement, Pricing Disclosure Package and the Final Prospectus, or included in the Marketing Materials, are based on or derived from sources that the Company reasonably believes to be reliable and accurate, the Company has no knowledge of any facts that would make such information not reliable or inaccurate, and the Company has obtained the written consent to the use of such data from such sources, to the extent required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *Forward-Looking Statements*. The Company has a reasonable basis for, and made in good faith, each "forward-looking statement" (within the meaning of Section 27A of the Act or Section 21E of the Exchange Act) contained in the Registration Statement, the Pricing Disclosure Package, the Final Prospectus or the Marketing Materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) *Cybersecurity*. (i)(A) To the knowledge of the Company, there has been no security breach or incident, unauthorized access or disclosure, or other compromise of or relating to any of the Company's or its Subsidiaries' information technology and computer systems, networks, hardware, software, data and databases (including the data and information of their respective customers, employees, suppliers, vendors and any third-party data maintained, processed or stored by the Company and its Subsidiaries, and any such data processed or stored by third parties on behalf of the Company and its Subsidiaries), equipment or technology (collectively, "**IT Systems and Data**") and (B) the Company and its Subsidiaries have not been notified of, and have no knowledge of any event or condition that would reasonably be expected to result in, any security breach or incident, unauthorized access or disclosure or other compromise to their IT Systems and Data; (ii) the Company and its Subsidiaries are presently in compliance in all material respects with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation or modification; and (iii) the Company and its Subsidiaries have implemented appropriate controls, policies, procedures and technological safeguards to maintain and protect the integrity, continuous operation, redundancy and security of their IT Systems and Data reasonably consistent with industry standards and practices, or as required by applicable regulatory standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) *Compliance with ERISA*. No "prohibited transaction" (as defined in Section 406 of the Employee Retirement Income Security Act of 1974, as amended, including the regulations and published interpretations thereunder ("**ERISA**"), or Section 4975 of the Internal Revenue Code of 1986, as amended from time to time (the "**Code**")) or "accumulated funding deficiency" (as defined in Section 302 of ERISA) or any of the events set forth in Section 4043(b) of ERISA (other than events with respect to which the 30-day notice requirement under Section 4043 of ERISA has been waived) has occurred or could reasonably be expected to occur with respect to any employee benefit plan of the Company or any of its Subsidiaries which would reasonably be expected to, singularly or in the aggregate, have a Material Adverse Effect. Each employee benefit plan of the Company or any of its Subsidiaries is in compliance in all material respects with applicable law, including ERISA and the Code. The Company and its Subsidiaries have not incurred and could not reasonably be expected to incur any material liability under Title IV of ERISA with respect to the termination of, or withdrawal from, any pension plan (as defined in ERISA). Each pension plan for which the Company or any of its Subsidiaries would have any liability that is intended to be qualified under Section 401(a) of the Code is so qualified, and to the Company's knowledge nothing has occurred, whether by action or by failure to act, that could, singularly or in the aggregate, cause the loss of such qualification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) *No Restriction on Dividends*. Except as set forth in the Registration Statement, the Pricing Disclosure Package, and the Final Prospectus, none of the Company or its Subsidiaries is currently prohibited, directly or indirectly, from (i) paying any dividends or making any other distributions on its share capital, (ii) making or repaying any loan or advance to the Company or any Subsidiary, and (iii) transferring any of its property or assets to the Company or any Subsidiary, except as described in the Pricing Disclosure Package and the Final Prospectus; and all dividends and other distributions declared and payable upon the share capital of the Company or any of its Subsidiaries (A) may be converted into foreign currency that may be freely transferred out of such person's jurisdiction of incorporation, without the consent, approval, authorization or order of, or qualification with, any court or governmental agency or body in such person's jurisdiction of incorporation or tax residence, and (B) are not and will not be subject to withholding, value added or other taxes under the currently effective laws and regulations of such person's jurisdiction of incorporation, without the necessity of obtaining any consents, approvals, authorizations, orders, registrations, clearances or qualifications of or with any court or governmental agency or body having jurisdiction over such person, except as described in the Pricing Disclosure Package and the Final Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) *Related Party Transactions.* There are no business relationships or related party transactions involving the Company or any of its Subsidiaries or any other person required to be described in the Registration Statement, the Pricing Disclosure Package or the Final Prospectus that have not been described as required. There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or guarantees of indebtedness by the Company or any Subsidiary to or for the benefit of any of the officers or directors of the Company or any Subsidiary or any of their respective family members. Except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, there are no other transactions between or among the Company, any Subsidiary, or directors, officers or other control persons of the Company or any Subsidiary. All such transactions have been duly approved by the board of directors of the Company, or duly appointed committees or officers thereof, if and to the extent required under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) *Compliance with the Sarbanes-Oxley Act.* The Company has taken all actions it deems reasonably necessary or advisable to take on or prior to the date of this Agreement to assure that, upon and at all times after the effectiveness of the Registration Statement, it will be in compliance in all material respects with all applicable provisions of the Sarbanes-Oxley Act of 2002 (the "**Sarbanes-Oxley Act**") and all rules and regulations promulgated thereunder or implementing the provisions thereof that are then in effect and will take all action it deems reasonably necessary or advisable to assure that it will be in compliance in all material respects with other applicable provisions of the Sarbanes-Oxley Act not currently in effect upon it and at all times after the effectiveness of such provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) *Independent Auditor*. To the Company's knowledge, Baker Tilly US, LLP (the "**Company Auditor**"), which has expressed its opinion with respect to the consolidated financial statements and schedules included in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, is an independent registered public accounting firm with respect to the Company within the meaning of the Act and the Rules and Regulations and the Public Company Accounting Oversight Board. The Company Auditor has not, during the periods covered by the financial statements included in the Prospectus, provided to the Company any non-audit services, as such term is used in Section 10A(g) of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) *Disclosure Controls*. To the extent required, the Company has established and maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms, including controls and procedures designed to ensure that such information is accumulated and communicated to the Company's management as appropriate to allow timely decisions regarding required disclosure. The Company has utilized such controls and procedures in preparing and evaluating the disclosures in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) *Internal Controls.* To the extent required, the Company and its Subsidiaries maintain a system of "internal control over financial reporting" (as defined under Rules 13a-15(f) and 15d-15(f) under the Exchange Act), including, but not limited to, disclosure controls and procedures, internal controls over accounting matters and financial reporting, an internal audit function and legal and regulatory compliance controls (collectively, "**Internal Controls**") that comply with applicable Securities Laws and have been designed by, or under the supervision of, their respective principal executive and principal financial officers, or persons performing similar functions, are sufficient to provide reasonable assurances regarding the reliability of financial reporting and that (i) transactions are executed in accordance with management's general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP (as defined below) and to maintain accountability for assets, (iii) access to assets is permitted only in accordance with management's general or specific authorization, (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences and (v) the interactive data in eXtensible Business Reporting Language included in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus fairly present the information called for in all material respects and are prepared in accordance with the Commission's rules and guidelines applicable thereto. The Company's board of directors (the "**Board**") has, subject to the exceptions, cure periods and the phase-in periods specified in the applicable Exchange Rules, validly appointed an audit committee (the "**Audit Committee**") of the Board to oversee internal accounting controls whose composition satisfies the applicable requirements of the Exchange Rules and the Board and/or the Audit Committee has adopted a charter that satisfies the requirements of the Exchange Rules. Except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, the Company's internal control over financial reporting is effective and none of the Company, the Board or the Audit Committee is aware of any "significant deficiencies" or "material weaknesses" (each as defined by the Public Company Accounting Oversight Board) in its internal control over financial reporting, or any fraud, whether or not material, that involves management or other employees of the Company who have a significant role in the Company's internal controls. Since the date of the latest audited financial statements included in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, there has been no change in the Company's internal control over financial reporting (whether or not remediated) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting. The Company has not publicly disclosed or reported to the Audit Committee or the Board, and within the next 90 days the Company does not reasonably expect to publicly disclose or report to the Audit Committee or the Board, a "significant deficiency" or "material weakness" (each, as defined in Rule 12b-2 of the Exchange Act), a change in Internal Controls or fraud involving management or other employees who have a significant role in Internal Controls (each, an "**Internal Control Event**"), any violation of, or failure to comply with, Securities Laws, or any matter which, if determined adversely, would have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) *Absence of Accounting Issues.* A member of the Audit Committee or the Board has confirmed to the Chief Executive Officer or Chief Financial Officer of the Company that, except as set forth in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, the Audit Committee or the Board is not reviewing or investigating, and neither the Company's independent auditors nor its internal auditors have recommended that the Audit Committee or the Board review or investigate, (i) adding to, deleting, changing the application of, or changing the Company's disclosure with respect to, any of the Company's material accounting policies; (ii) any matter which could result in a restatement of the Company's financial statements for any annual or interim period during the current or prior three fiscal years; or (iii) any Internal Control Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) *Absence of Manipulation*. The Company has not taken, directly or indirectly, any action that is designed to or that has constituted or that would reasonably be expected to cause or result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Offered Securities. For the sake of clarity, actions by the Underwriters or persons acting on their behalf will not constitute direct or indirect action by the Company for purposes of this Section 2(ff).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) *Litigation*. Except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, there are no pending actions, suits or proceedings (including any inquiries or investigations by any court or governmental agency or body, domestic or foreign, or any arbitrator or mediator) against or affecting the Company, any of its Subsidiaries or any of their respective properties or assets, or which has as the subject thereof any officer or director of, any employee benefit plan sponsored or any property or assets owned or leased by, the Company or any Subsidiary, that, if determined adversely to the Company or any of its Subsidiaries, would individually or in the aggregate have a Material Adverse Effect, or would materially and adversely affect their respective properties or assets or the ability of the Company to perform its obligations under this Agreement or the Representatives' Warrants, or which are otherwise material in the context of the sale of the Offered Securities; and no such actions, suits or proceedings (including any inquiries or investigations by any court or governmental agency or body, domestic or foreign, or any arbitrator or mediator) are threatened or, to the knowledge of the Company or any of its Subsidiaries, contemplated. There are no current or, to the knowledge of the Company, pending or threatened, legal, governmental or regulatory actions, suits or proceedings (x) to which the Company or any Subsidiary is subject or (y) which has as the subject thereof any officer or director of, any employee plan sponsored by or any property or assets owned or leased by, the Company or any Subsidiary, that are required to be described in the Registration Statement, Pricing Disclosure Package and Final Prospectus and that have not been so described.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) *Financial Statements.* The consolidated financial statements of the Company, together with the related notes and schedules thereto, included in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus present fairly in all material respects the financial position of the Company and the Subsidiaries as of the dates indicated and consolidated results of operations, cash flows and changes in shareholders' equity of the Company for the periods specified and comply in all material respects with the applicable requirements of the Act and the Exchange Act, and the Rules and Regulations thereunder. Such consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles ("GAAP") applied on a consistent basis during the periods involved, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended. The other financial data contained in the Registration Statement, the Pricing Disclosure Package or the Final Prospectus are accurately and fairly presented in all material respects and prepared on a basis consistent with the financial statements and books and records of the Company; there are no financial statements (historical or pro forma) or schedules that are required under the Act, the Exchange Act, or the Rules and Regulations to be included in the Registration Statement, the Pricing Disclosure Package or the Final Prospectus that are not included as required; the other financial information included in each of the Registration Statement, the Pricing Disclosure Package or the Final Prospectus has been derived from the accounting records of the Company and its Subsidiaries and presents fairly in all material respects the information shown thereby; and the Company and the Subsidiaries do not have any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations) not described in the Registration Statement, the Pricing Disclosure Package or the Final Prospectus. All disclosures contained in the Registration Statement, the Pricing Disclosure Package or the Final Prospectus regarding any "non-GAAP financial measure" (as such term is defined by the rules and regulations of the Commission) comply with Item 10 of Regulation S-K of the Act, to the extent applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *No Material Adverse Change in Business.* Since the respective dates as of which information is given in the Registration Statement, the Pricing Disclosure Package or the Final Prospectus, (i) there has been no change, nor any development or event involving a prospective change, that would reasonably be likely to result in a Material Adverse Effect, and there has been no occurrence of any Material Adverse Effect, (ii) there has been no dividend or distribution of any kind declared, paid or made by the Company or any of its Subsidiaries on any class of its capital stock, (iii) there has been no change in the capital stock, short-term indebtedness, long-term indebtedness, net current assets or net assets of the Company or any of its Subsidiaries, (iv) there has been no material transaction entered into and there is no material transaction that is probable of being entered into by the Company or any of its Subsidiaries, (v) there has been no obligation or liability, direct or contingent, that is material to the Company or any of its Subsidiaries taken as a whole, incurred by the Company or any of its Subsidiaries, (vi) neither the Company nor any of its Subsidiaries has sustained any material loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor disturbance or dispute or any action, order or decree of any court or arbitrator or governmental or regulatory authority, (vii) neither the Company nor any of its Subsidiaries has incurred any material liabilities or obligations, direct or contingent, or entered into any material transactions other than in the ordinary course of business, (viii) no material oral or written agreement or other transaction has been entered into by the Company or its Subsidiaries that is not in the ordinary course of business or that could reasonably be expected to result in a material reduction in the future earnings of the Company and (ix) no legal or governmental action, suit or proceeding affecting the Company, any of its Subsidiaries taken as a whole or any of their respective properties that is material to the Company or any of its Subsidiaries or that materially and adversely affects or could reasonably be expected to materially and adversely affect the transactions contemplated by this Agreement has been instituted or threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) *Investment Company Act.* Each of the Company and its Subsidiaries is not and, after giving effect to the offering and sale of the Offered Securities and the application of the proceeds thereof will not be, required to register as an "investment company" as defined in the Investment Company Act of 1940, as amended (the "**Investment Company Act**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) *No Integration*. Neither the Company nor any of its affiliates has, prior to the date hereof, made any offer or sale of any securities that would be, individually or in the aggregate, integrated with the offer and sale of the Offered Securities contemplated by this Agreement pursuant to the Act or the interpretations thereof by the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) *Ratings.* No "nationally recognized statistical rating organization" as such term is defined in Section 3(a)(62) of the Exchange Act has (i) imposed (or has informed the Company that it is considering imposing) any condition (financial or otherwise) on the Company's retaining any rating assigned to the Company or any of its Subsidiaries or any securities of the Company or any securities of its Subsidiaries or (ii) has indicated to the Company that it is considering any of the actions described in Section 6(g).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) *Taxes*. Each of the Company and its Subsidiaries has (a) filed all foreign, federal, state and local tax returns (as hereinafter defined) required to be filed with taxing authorities prior to the date hereof or has duly obtained extensions of time for the filing thereof and (b) paid all taxes (as hereinafter defined) shown as due and payable on such returns that were filed and has paid all taxes imposed on or assessed against it. The provisions for taxes payable, if any, shown on the financial statements included in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus are sufficient for all accrued and unpaid taxes, whether or not disputed, and for all periods to and including the dates of such consolidated financial statements. No tax audits or investigations are pending and, to the Company's knowledge, no issues have been raised (and are currently pending) by any taxing authority in connection with any of the returns or taxes asserted as due from the Company or its Subsidiaries, and no waivers of statutes of limitation with respect to the returns or collection of taxes have been given by or requested from the Company or its Subsidiaries. The term "**taxes**" means all federal, state, local, foreign, and other net income, gross income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, license, lease, service, service use, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, windfall profits, customs, duties or other taxes, fees, assessments, or charges of any kind whatever, together with any interest and any penalties, additions to tax, or additional amounts with respect thereto. The term "**returns**" means all returns, declarations, reports, statements, and other documents required to be filed in respect to taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) *Insurance*. The Company and each of its Subsidiaries carries, or is covered by, insurance in such amounts and covering such risks as is commercially reasonable for the conduct of its business and the value of its properties and as is customary for companies engaged in similar businesses in similar industries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) *No Unlawful Payments*. Neither the Company nor any of its Subsidiaries or affiliates, nor any director, officer or employee, nor, to the knowledge of the Company, any employee, agent, representative or other person acting on behalf of the Company or of any of its Subsidiaries or affiliates, has (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity, (ii) taken or will take any action in furtherance of an offer, payment, promise to pay, or authorization or approval of the payment, giving or receipt of money, property, gifts or anything else of value, directly or indirectly, to any government official, including any officer or employee of a government or government-owned or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any political party or party official or candidate for political office ("**Governmental Official**") to influence official action or secure an improper advantage, (iii) violated or is in violation of, or is aware of or taken any action that would result in a violation of, any provision of the Foreign Corrupt Practices Act of 1977, as amended, and the rule and regulations thereunder, or any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, or committed an offence under the Bribery Act 2010 of the United Kingdom or any other applicable anti-bribery or anti-corruption law, or (iv) made, offered, agreed, requested or taken an act in furtherance of any unlawful bribe or other unlawful benefit, including, without limitation, any rebate, payoff, influence payment, kickback or other unlawful or improper payment or benefit, to any Governmental Official or other person or entity. The Company and its Subsidiaries and affiliates have conducted their businesses in compliance with applicable anti-bribery and anti-corruption laws and have instituted and maintain and will continue to maintain policies and procedures designed to promote and achieve compliance with all applicable anti-bribery and anti-corruption laws and with the representation and warranty contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) *Compliance with Anti-Money Laundering Laws*. None of the Company or its Subsidiaries, their respective affiliates nor any of their respective officers, directors, supervisors, managers, agents, or employees, have violated, the Company's participation in the Offering will not violate, and the Company and its Subsidiaries have instituted and maintain policies and procedures designed to ensure continued compliance with, anti-money laundering laws, including but not limited to, applicable federal, state, international, foreign or other laws, regulations or government guidance regarding anti-money laundering, including, Title 18 US. Code section 1956 and 1957, the Patriot Act, the Bank Secrecy Act, and international anti-money laundering principles or procedures by an intergovernmental group or organization, such as the Financial Action Task Force on Money Laundering, of which the United States is a member and with which designation the United States representative to the group or organization continues to concur, all as amended, and any Executive order, directive, or regulation pursuant to the authority of any of the foregoing, or any orders or licenses issued thereunder (collectively, the "**Money Laundering Laws**"). No action, suit or proceeding by or before any court or governmental or regulatory agency, authority or body or any arbitrator involving the Company or any of its Subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Company and its Subsidiaries, threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) *Economic Sanctions.* Neither the Company nor any of its Subsidiaries, nor any director, officer, or employee thereof, nor, to the knowledge of the Company, any agent, affiliate or representative of the Company or any of its Subsidiaries, is an individual or entity that is, or is owned or controlled by an individual or entity that is: the subject or target of any U.S. sanctions administered or enforced by the U.S. government (including, without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State and including, without limitation, the designation as a "specially designated national" or "blocked person"), the United Nations Security Council, the European Union, Her Majesty's Treasury, the Swiss Secretariat of Economic Affairs, the Hong Kong Monetary Authority, the Monetary Authority of Singapore, or other relevant sanctions authority (collectively, "**Sanctions**"), nor is the Company or any of its Subsidiaries located, organized or resident in a country or territory that is the subject or target of Sanctions including, without limitation, the Crimea Region of Ukraine, the so-called Donetsk People's Republic, the so-called Luhansk People's Republic, Cuba, Iran, North Korea, Belarus, Sudan and Syria (each a "**Sanctioned Country**"); and the Company will not, directly or indirectly, use the proceeds of the Offering, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other individual or entity: (i) to fund or facilitate any activities or business of or with any individual or entity or in any country or territory that, at the time of such funding or facilitation, is the subject or target of any Sanctions; (ii) to fund or facilitate any activities of or business in any Sanctioned Country or (iii) in any other manner that will result in a violation of Sanctions by any individual or entity (including any individual or entity participating in the Offering, whether as underwriter, advisor, investor or otherwise). For the past five years, the Company and its Subsidiaries have not knowingly engaged in, are not now knowingly engaged in, and will not engage in, any dealings or transactions with any individual or entity, or in any country or territory, that at the time of the dealing or transaction is or was the subject or target of Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) *Other Offerings*. Except as set forth in the Registration Statement, the Pricing Disclosure Package, and the Final Prospectus, the Company has not sold, issued or distributed any shares of Common Stock during the six-month period preceding the date hereof, including any sales pursuant to Rule 144A under, or Regulations D or S of, the Act, other than shares of Common Stock issued pursuant to employee benefit plans, qualified stock option plans or other employee compensation plans or pursuant to outstanding preferred stock, options, rights or warrants or other outstanding convertible securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) *Listing*. The Company's Common Stock is registered pursuant to Section 12(b) of the Exchange Act and are approved for listing on the Exchange. There is no action pending by the Company or, to the Company's knowledge, by the Exchange to delist the Common Stock from the Exchange, nor has the Company received any notification that Exchange is contemplating terminating such listing. When issued the Public Securities will be listed on the Exchange. The Company has taken all actions it deems reasonably necessary or advisable to take on or prior to the date of this Agreement to ensure that it will be in compliance in all material respects with all applicable corporate governance requirements set forth in the rules of Exchange that are then in effect and applicable to the Company, and will take all action it deems reasonably necessary or advisable to ensure that it will be in compliance in all material respects with other applicable corporate governance requirements set forth in the Exchange rules not currently in effect upon and all times after the effectiveness of such requirements, to the extent applicable to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) *Accuracy of Exhibits*. There is no Contract or document required by the Act or by the Rules and Regulations to be described in the Registration Statement, the Pricing Disclosure Package or in the Final Prospectus or to be filed as an exhibit to the Registration Statement ("**Material Contracts**") that is not so described or filed therein as required; and all descriptions of any Material Contracts contained in the Registration Statement, the Pricing Disclosure Package and in the Final Prospectus are accurate and complete descriptions of the Material Contracts in all material respects. Other than as described in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, no Material Contract has been suspended or terminated for convenience or default by the Company or any Subsidiary party thereto or any of the other parties thereto, and neither the Company nor any of its Subsidiaries has received notice, and the Company has no knowledge, of any such pending or threatened suspension or termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) *Solvency*. Based on the consolidated financial condition of the Company as of each Closing Date, after giving effect to the receipt by the Company of the proceeds from the sale of the Offered Securities hereunder, (i) the fair saleable value of the Company's assets exceeds the amount that will be required to be paid on or in respect of the Company's existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company's assets do not constitute unreasonably small capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) *Lending Relationship.* Except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, the Company and its Subsidiaries (i) do not have any material lending or other relationship with any bank or lending affiliate of any Underwriter and (ii) do not intend to use any of the proceeds from the sale of the Offered Securities to repay any outstanding debt owed to any affiliate of any Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) *Margin Rules*. The Company owns no "margin securities" as that term is defined in Regulation U of the Board of Governors of the Federal Reserve System. The application of the proceeds received by the Company from the issuance, sale and delivery of the Offered Securities as described in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus will not, directly or indirectly, violate Regulation T, U or X of the Board of Governors of the Federal Reserve System or any other regulation of such Board of Governors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) *No Stop Orders, etc.* Neither the Commission nor, to the Company's knowledge, any state regulatory authority has issued any order preventing or suspending the use of the Registration Statement, any Preliminary Prospectus or the Final Prospectus or has instituted or, to the Company's knowledge, threatened to institute, any proceedings with respect to such an order. The Company has complied with each request (if any) from the Commission for additional information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yy) *No Financial Advisor*. Other than the Underwriters, no person has the right to act as an underwriter or as a financial advisor to the Company or any Subsidiary in connection with the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zz) *Off-Balance Sheet Arrangements*. There are no material off-balance sheet arrangements (as defined in Item 303 of Regulation S-K) that, individually or in the aggregate, have or are reasonably likely to have a material current or future effect on the business, prospects, financial condition, revenues or expenses, changes in financial condition, results of operations, liquidity, capital expenditures or capital resources of the Company and its Subsidiaries taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aaa) *Form 8-A Registration Statement*. The Company has filed a registration statement on Form 8-A (File No. [●]) in respect of the registration of the Shares under the Exchange Act with the Commission; such registration statement in the form heretofore delivered to the Underwriters has become effective in such form; no stop order suspending the effectiveness of such registration statement has been issued and no proceeding for that purpose has been initiated or, to the Company's knowledge, threatened by the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bbb) *Officer's Certificate*. Any certificate signed by any duly authorized officer of the Company and delivered to you or to the Underwriters' counsel shall be deemed a representation and warranty by the Company to the Underwriters as to the matters covered thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ccc) *Data Protection and Security*. Except as would not reasonably be expected to have a Material Adverse Effect on the Company, (A) the Company and each of the Subsidiaries have complied and are presently in compliance with all internal and external privacy policies and information notices, contractual obligations, industry standards, regulatory guidelines, applicable laws, statutes, judgments, orders, rules and regulations of any court or arbitrator or other governmental or regulatory authority and any other legal obligations, in each case, relating to the collection, use, transfer, import, export, storage, protection, disposal, disclosure and any other processing ("**Processing**") by the Company or its Subsidiaries of personal, personally identifiable, household, sensitive, confidential or regulated data ("**Data Security Obligations**", and such data, "**Data**"); (B) the Company and each of its Subsidiaries have taken all reasonably steps to comply with Data Security Obligations; (C) none of the Company or the Subsidiaries has (i) received any notification of or complaint regarding, or (ii) is aware of any other facts that, individually or in the aggregate, would reasonably indicate, non-compliance with any Data Security Obligation; (D) there is no action, suit or proceeding by or before any court or governmental agency, authority or body pending or threatened alleging the Company's or the Subsidiaries' non-compliance with any Data Security Obligation; (E) the Company and each of the Subsidiaries have implemented and maintained all technical and organizational measures necessary to protect and ensure the security and integrity of the Data used in connection with the operation of the Company's and each of its Subsidiaries' businesses; (F) without limiting the foregoing, the Company and each of the Subsidiaries have used all commercially reasonable efforts to establish and maintain, and have established, maintained, implemented and complied with, reasonable Information Technology, information security, cybersecurity and data protection controls, policies and procedures, including oversight, access controls, encryption, technological, organizational and physical safeguards and business continuity/disaster recovery and security plans that are designed to protect against and prevent breach, destruction, loss, unauthorized or unlawful distribution, use, access, disablement, misappropriation or modification, or other compromise or misuse of or relating to any Data used in connection with the operation of the Company's or each of its Subsidiaries' businesses ("**Breach**"); (G) there has been no such Breach, and neither the Company or any of its Subsidiaries has been notified of or has any knowledge of any event or condition that would reasonably be expected to result in, any such Breach. "**Information Technology**" means computer hardware, software, databases, networks and/or other information or communications technology (including any information or data stored therein) and any asset which contains computer hardware, software, databases, networks and/or other information or communications technology (including any information and data stored therein), whether embedded or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ddd) *Open Source*. Except as would not, singly or in the aggregate, reasonably be expected to have a material adverse effect on the Company and its Subsidiaries, taken as a whole, (i) the Company and its Subsidiaries use and have used any and all software and other materials distributed under a "free," "open source," or similar licensing model (including but not limited to the MIT License, Apache License, GNU General Public License, GNU Lesser General Public License and GNU Affero General Public License) ("**Open Source Software**") in compliance with all license terms applicable to such Open Source Software; and (ii) except as disclosed in the Registration Statement, the Pricing Disclosure Package, and the Final Prospectus, neither the Company nor any of its Subsidiaries uses or distributes or has used or distributed any Open Source Software in any manner that requires or has required (A) the Company or any of its Subsidiaries to permit reverse engineering of any software code or other technology owned by the Company or any of its Subsidiaries or (B) any software code or other technology owned by the Company or any of its Subsidiaries to be (1) disclosed or distributed in source code form to any third party, (2) licensed for the purpose of making derivative works or (3) redistributed at no charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(eee) *Ownership of Assets*. Each of the Company and its Subsidiaries has good and marketable title to all property (whether real or personal) described in the Pricing Disclosure Package and the Final Prospectus as being owned by it, in each case free and clear of all liens, claims, security interests, other encumbrances or defects, except such as are described in the Pricing Disclosure Package and the Final Prospectus. The properties held under lease by any of the Company or its Subsidiaries is held by it under valid, subsisting and enforceable leases with only such exceptions with respect to any particular lease as do not interfere in any material respect with the conduct of the business of the Company or its Subsidiaries, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(fff) *Compliance with Occupational Laws*. Except as described in the Pricing Disclosure Package and the Final Prospectus, each of the Company and its Subsidiaries (i) is in compliance, in all material respects, with any and all applicable foreign, federal, state and local laws, rules, regulations, treaties, statutes and codes promulgated by any and all governmental authorities relating to the protection of human health and safety in the workplace ("**Occupational Laws**"); (ii) has received all material permits, licenses or other approvals required of it under applicable Occupational Laws to conduct its business as currently conducted; and (iii) is in compliance, in all material respects, with all terms and conditions of such permit, license or approval. No action, proceeding, revocation proceeding, writ, injunction or claim is pending or, to the Company's knowledge, threatened against any of the Company or its Subsidiaries relating to Occupational Laws, and the Company does not have knowledge of any facts, circumstances or developments relating to its operations or cost accounting practices that could reasonably be expected to form the basis for or give rise to such actions, suits, investigations or proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ggg) *Lock-Up Agreements*. Schedule C hereto contains a complete and accurate list of the Company's officers, directors and certain beneficial owners of the Company's outstanding shares of Common Stock (or securities convertible or exercisable into shares of Common Stock) (collectively, the "**Lock-Up Parties**"). The Company has caused each of the Lock-Up Parties to deliver to the Representatives an executed Lock-Up Agreement, in the form attached hereto as Exhibit A (the "**Lock-Up Agreements**"), prior to the execution of this Agreement. The Company will enforce the terms of each Lock-Up Agreement and issue stop-transfer instructions to its transfer agent and registrar for the shares of Common Stock with respect to any transaction or contemplated transaction that would constitute a breach of or default under the applicable Lock-Up Agreement. If the Representatives, in their sole discretion, agrees to release or waive the restrictions of any Lock-Up Agreement between an officer or director of the Company and the Representatives and provides the Company with notice of the impending release or waiver at least three business days before the effective date of such release or waiver, the Company agrees to announce the impending release or waiver by means of a press release substantially in the form of Exhibit B hereto, issued through a major news service, at least two business days before the effective date of the release or waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hhh) *D&O Information*. All information concerning the Company's directors, officers and principal shareholders described in the Pricing Disclosure Package and the Final Prospectus, is true and correct in all material respects and the Company has not become aware of any information which would cause such information to become materially inaccurate or incorrect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Books and Records*. The minute books of the Company and each of its Subsidiaries have been made available to the Representatives and counsel for the Representatives, and such books (i) contain a complete summary of all meetings and actions of the Board (including each board committee) and stockholders of the Company (or analogous governing bodies and interest holders, as applicable), and each of its Subsidiaries since the time of its respective incorporation or organization through the date of the latest meeting and action, and (ii) accurately in all material respects reflect all transactions referred to in such minutes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jjj) *Continued Business*. No supplier, customer, distributor or sales agent of the Company or any Subsidiary has notified the Company or any Subsidiary that it intends to discontinue or decrease the rate of business done with the Company or any Subsidiary, except where such discontinuation or decrease has not resulted in and would not reasonably be likely to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. *Purchase, Sale and Delivery of Offered Securities*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *First Closing*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) On the basis of the representations, warranties and agreements and subject to the terms and conditions set forth herein, the Company agrees to sell to the several Underwriters, and each of the Underwriters agrees, severally and not jointly, to purchase, on the First Closing Date, from the Company, at a purchase price of $[●] per share, representing an underwriting discount of 7.00% (the underwriting discount is reduced to 3.0% in connection with proceeds from any sales of the Offered Securities to certain of the individuals, strategic investors or similar entities provided by the Company (the "**Company Introduced Investors**")), the number of Firm Securities set forth opposite the name of such Underwriter in Schedule A hereto. Furthermore, the Company agrees to issue to the Representatives on the First Closing Date Representatives' Warrants exercisable for an aggregate of [●] shares of Common Stock (the "**First Closing Representatives' Warrants**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) On the First Closing Date, the Company will deliver the Firm Securities to or as instructed by the Representatives for the accounts of the several Underwriters in a form reasonably acceptable to the Representatives, against payment of the purchase price by the Underwriters in Federal (same day) funds by wire transfer to an account at a bank acceptable to the Representatives drawn to the order of the Company, and the Company will deliver the First Closing Representatives' Warrants to the Representatives and the other items required pursuant to Section 6 on the First Closing Date (the "**First Closing**"). Upon satisfaction of the covenants and conditions set forth in this Agreement, the First Closing shall occur at the offices of Roth Capital Partners, LLC, 888 San Clemente Drive, Suite 400, Newport Beach, CA 92660, or such other location as may be mutually acceptable, or by remote electronic exchange, at 6:00 a.m. Pacific Time, on [●], 2025, or at such other time and date as the Representatives and the Company determine pursuant to Rule 15c6-1 under the Exchange Act (the "**First Closing Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Option Closing*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) In addition, upon written notice from the Representatives given to the Company from time to time not more than 30 days subsequent to the date of the Final Prospectus (the "**Option Notice**"), the Underwriters may purchase all or less than all of the Option Securities at the purchase price per share to be paid for the Firm Securities. On the basis of the representations, warranties and agreements and subject to the terms and conditions set forth herein, the Company agrees to sell to the several Underwriters, and each of the Underwriters agrees, severally and not jointly, to purchase on each Option Closing Date the number of shares of Option Securities specified in the Option Notice, and the Company agrees to issue to the Representatives on each Option Closing Date Representatives' Warrants exercisable for an aggregate number of Offered Securities equal to three and one-half percent (3.5%) of the Option Securities offered at each Option Closing (the "**Option Closing Representatives' Warrants**"). Such Option Securities shall be purchased for the account of each Underwriter in the same proportion as the number of Firm Securities set forth opposite such. Underwriter's name (subject to adjustment by the Representatives to eliminate fractions). No Option Securities shall be sold or delivered unless the Firm Securities previously have been, or simultaneously are, sold and delivered. The right to purchase the Option Securities or any portion thereof may be exercised from time to time and to the extent not previously exercised may be surrendered and terminated at any time upon notice by the Representatives to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Each time for the delivery of and payment for the Option Securities, being herein referred to as an "**Option Closing Date**", which may be the First Closing Date (the First Closing Date and each Option Closing Date, if any, being sometimes referred to as a "**Closing Date**"), shall be determined by the Representatives but shall be no earlier than one full business day nor later than five full business days after written notice of election to purchase Option Securities is given. On each Option Closing Date, the Company will deliver the Option Securities being purchased on each Option Closing Date to or as instructed by the Representatives for the accounts of the several Underwriters, in a form reasonably acceptable to the Representatives against payment of the purchase price therefore in Federal (same day) funds by wire transfer to an account at a bank acceptable to the Representatives drawn to the order of the Company, and the Company will deliver the Option Closing Representatives' Warrants to the Representatives and the other items required pursuant to Section 6 on each Option Closing Date ("**Option Closing**"). Upon satisfaction of the covenants and conditions set forth in this Agreement, each Option Closing shall occur at the offices of Roth Capital Partners, LLC, 888 San Clemente Drive, Suite 400, Newport Beach, CA 92660, or such other location as may be mutually acceptable, or by remote electronic exchange, at 6:00 a.m. Pacific Time, on each Option Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. *Offering by Underwriters*. It is understood that the several Underwriters propose to offer the Offered Securities for sale to the public as set forth in the Final Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. *Certain Agreements of the Company*. The Company agrees with the several Underwriters that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Additional Filings.* The Company shall prepare the Final Prospectus containing the Rule 430A Information omitted from the Preliminary Prospectus in a form approved by the Underwriters and file such Final Prospectus pursuant to Rule 424(b) and 430A of the Act within the time period required by, and otherwise in accordance with the provisions of, Rules 424(b) and 430A of the Act. If the Company has elected to rely upon Rule 462(b) of the Act to increase the size of the offering registered under the Act and the Rule 462(b) Registration Statement has not yet been filed and become effective, the Company will prepare and file the Rule 462 Registration Statement with the Commission within the time period required by, and otherwise in accordance with the provisions of, Rule 462(b) and the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Filing of Amendments*. Within the time during which a prospectus (assuming the absence of Rule 172) relating to the Public Securities is required to be delivered under the Act by the Underwriters or any dealer (the "**Prospectus Delivery Period**"), the Company will prepare and file with the Commission, promptly upon the Representatives' request, any amendments or supplements to the Registration Statement or Prospectus that, in the Representatives' reasonable opinion, may be necessary or advisable in connection with the distribution of the Public Securities; and the Company will furnish the Representatives and its counsel a copy of any proposed amendment or supplement to the Registration Statement or Prospectus and will not file any amendment or supplement to the Registration Statement or Prospectus to which the Representatives shall reasonably object by notice to the Company after having been furnished a copy a reasonable time prior to the filing. Notwithstanding the foregoing, this obligation shall not apply to the Company's filing of periodic reports under the Exchange Act (including Form 10-K, Form 10-Q, and Form 8-K) that are deemed to amend or supplement the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Response to Commission Requests*. During the Prospectus Delivery Period, the Company shall promptly advise the Underwriters in writing (A) of the receipt of any comments of, or requests for additional or supplemental information from, the Commission, (B) of the time and date of any filing of any post-effective amendment to the Registration Statement or any amendment or supplement to the Pricing Disclosure Package, the Final Prospectus or any Issuer Free Writing Prospectus, (C) of the time and date that any post-effective amendment to the Registration Statement becomes effective and (D) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or of any order preventing or suspending its use or the use of the Pricing Disclosure Package, the Final Prospectus or any Issuer Free Writing Prospectus, or of any proceedings to remove, suspend or terminate from listing or quotation the shares of Common Stock from any securities exchange upon which it is listed for trading or included or designated for quotation, or of the threatening or initiation of any proceedings for any of such purposes. If the Commission shall enter any such stop order at any time during the Prospectus Delivery Period, the Company will use its commercially reasonable efforts to obtain the withdrawal or lifting of such order at the earliest possible moment. Additionally, the Company agrees that it shall comply with the provisions of Rules 424(b), 430A, 430B or 430C as applicable, under the Act and will use its commercially reasonable efforts to confirm that any filings made by the Company under Rule 424(b) or Rule 433 were received in a timely manner by the Commission (without reliance on Rule 424(b)(8) or 164(b) of the Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Continued Compliance with Securities Laws.* During the Prospectus Delivery Period, the Company will comply with all requirements imposed upon it by the Act, and by the Rules and Regulations, as from time to time in force, and by the Exchange Act, so far as necessary to permit the continuance of sales of or dealings in the Public Securities as contemplated by the provisions hereof, the Pricing Disclosure Package, the Registration Statement and the Final Prospectus. If during the Prospectus Delivery Period, any event occurs the result of which would cause the Final Prospectus (or if the Final Prospectus is not yet available to prospective purchasers, the Pricing Disclosure Package) to include an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances then existing, not misleading, or if it is necessary at any time to amend the Registration Statement or supplement the Final Prospectus (or if the Final Prospectus is not yet available to prospective purchasers, the Pricing Disclosure Package) to comply with the Act, the Company will promptly notify the Underwriters of such event and will promptly prepare and file with the Commission and furnish, at its own expense, to the Underwriters and the dealers and any other dealers upon request of the Representatives, an amendment or supplement which will correct such statement or omission or an amendment which will effect such compliance, and notify the Underwriters when any amendment to the Registration Statement is filed and becomes effective or when any supplement to the Final Prospectus (or if the Final Prospectus is not yet available to prospective investors, the Pricing Disclosure Package) is filed. Neither the Representatives' consent to, nor the Underwriters' delivery of, any such amendment or supplement shall constitute a waiver of any of the conditions set forth in Section 6 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Issuer Free Writing Prospectus; Testing-the-Waters Communication.* If at any time following the distribution of any Issuer Free Writing Prospectus or Written Testing-the-Waters Communication there occurred or occurs an event or development as a result of which such Issuer Free Writing Prospectus or Written Testing-the-Waters Communication conflicted or would conflict with the information contained in the Registration Statement, any Preliminary Prospectus or the Final Prospectus relating to the Offered Securities or included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at that subsequent time, not misleading, the Company will promptly notify the Underwriters of such conflict, untrue statement or omission, will promptly amend or supplement, at its own expense, such Issuer Free Writing Prospectus or Written Testing-the-Waters Communication to eliminate or correct such conflict, untrue statement or omission, and will promptly notify the Underwriters when such amendment or supplement was or is filed with the Commission to the extent required to be filed by the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Rule 158.* As soon as practicable, but in any event not later than fifteen months after the end of the Company's current fiscal quarter, the Company will make generally available to its security holders an earnings statement (which need not be audited) covering a period of at least twelve months that shall satisfy the provisions of Section 11(a) of the Act and Rule 158 of the Rules and Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Furnishing of Prospectuses.* During the Prospectus Delivery Period, the Company will furnish to the Underwriters copies of each Registration Statement (of which will be signed and will include all exhibits), each Prospectus, any Issuer Free Writing Prospectus, and all amendments and supplements to such documents, in each case as soon as available and in such quantities as the Underwriters requests. The Company will pay the expenses of printing and distributing to the Underwriters all such documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Blue Sky Qualifications.* The Company will arrange for the qualification of the Public Securities for sale under the laws of such jurisdictions as the Representatives designate and to continue such qualifications in effect so long as required for the distribution of the Public Securities, except that the Company shall not be required in connection therewith to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so qualified, to execute a general consent to service of process in any state or to subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Reporting Requirements.* During the period of three years from the Effective Date, the Company will furnish to the Underwriters copies of all reports or other communications (financial or other) furnished to shareholders, and to deliver to the Underwriters as soon as reasonably practicable upon availability, copies of any reports and financial statements furnished to or filed with the Commission or any national securities exchange on which any class of securities of the Company is listed; provided, that any information or documents available on Electronic Data Gathering, Analysis and Retrieval system (or any successor system) ("**EDGAR**") shall be considered furnished for purposes of this Section 5(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *Payment of Expenses.* The Company, whether or not the transactions contemplated hereunder are consummated or this Agreement is terminated, will pay or cause to be paid (A) all expenses (including transfer taxes allocated to the respective transferees) incurred in connection with the delivery to the Underwriters of the Public Securities (including all fees and expenses of the registrar and transfer agent of the Public Securities), and the cost of preparing and printing stock certificates, (B) all expenses and fees (including, without limitation, fees and expenses of the Company's counsel) in connection with the preparation, printing, filing, delivery, and shipping of the Registration Statement (including the financial statements therein and all amendments, schedules, and exhibits thereto), the Public Securities, the Pricing Disclosure Package, any Prospectus, the Final Prospectus, any Issuer Free Writing Prospectus and any amendment thereof or supplement thereto, (C) all actual, reasonable and documented filing fees and actual, reasonable and documented fees and disbursements of the Representatives' counsel incurred in connection with the qualification of the Public Securities for offering and sale by the Underwriters or by dealers under the securities or blue sky laws of the states and other jurisdictions that the Representatives shall designate, (D) the actual, reasonable and documented filing fees and reasonable fees and disbursements of counsel to the Representatives incident to any required review and approval by FINRA, of the terms of the sale of the Public Securities, (E) listing fees, if any, and (F) all other costs and expenses incident to the performance of its obligations hereunder that are not otherwise specifically provided for herein. The Company will reimburse the Representatives for its actual, reasonable and documented out-of-pocket expenses, including actual, reasonable and documented legal fees and disbursements, incurred by the Representatives in connection with the purchase and sale of the Public Securities contemplated hereby up to an aggregate of $500,000 (including amounts payable pursuant to clauses (C) and (D) above); without the Company's prior written consent, such consent not to be unreasonably withheld or delayed and in no event more than $500,000 in the aggregate. If this Agreement is terminated by the Underwriters in accordance with the provisions of Section 6 or Section 9, the Company will reimburse the Representatives for all actual, reasonable and documented out-of-pocket disbursements (including, but not limited to, actual, reasonable and documented fees and disbursements of counsel, travel expenses, postage, facsimile and telephone charges) incurred by the Underwriters in connection with its investigation, preparing to market and marketing the Public Securities or in contemplation of performing its obligations hereunder, up to an aggregate amount of $500,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *Use of Proceeds.* The Company intends to apply the net proceeds from the sale of the Offered Securities to be sold by it hereunder for the purposes set forth in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus under the heading "Use of Proceeds", except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, the Company does not intend to use any of the proceeds from the sale of the Offered Securities hereunder to repay any outstanding debt owed to any Underwriter or affiliate of any Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) *Absence of Manipulation.* Other than excepted activity pursuant to Regulation M under the Exchange Act, the Company will not take, directly or indirectly, during the Prospectus Delivery Period, any action designed to or which might reasonably be expected to cause or result in, or that has constituted, the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Offered Securities. For the sake of clarity, actions by the Underwriters or persons acting on its behalf will not constitute direct or indirect action by the Company for purposes of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) *Restriction on Sale of Securities by the Company.* The Company agrees that, without the prior written consent of the Representatives, it will not, during the period ending 180 days after the date hereof, (i) offer, pledge, issue, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable for shares of Common Stock; or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Common Stock, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of shares of Common Stock or such other securities, in cash or otherwise; (iii) file any registration statement with the Commission relating to the offering of any shares of Common Stock or any securities convertible into or exercisable or exchangeable for shares of Common Stock, other than (a) filing a registration statement on Form S-8 in connection with any employee benefit plan in effect as of the Closing Date and described in each of the Registration Statement, the Pricing Disclosure Package and the Final Prospectus and (b) filing a registration statement relating to the resale of shares of Common Stock pursuant to that certain Registration Rights Agreement, dated [●], 2025, by and among the Company and FF Opportunities 2 LLC, FF Opportunities 3 LLC and FF Opportunities 4 LLC, described in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, or (iv) publicly disclose the intention to take any such action. The foregoing restriction shall not apply to (i) the Offered Securities, (ii) any shares of Common Stock issued under any equity incentive plan of the Company, or upon the exercise of warrants or conversion of convertible debt or convertible securities issued by the Company, in each case that are outstanding as of the date hereof and described in the Registration Statement, the Pricing Disclosure Package or the Final Prospectus, (iii) any options and other awards granted under any equity incentive plan of the Company in effect as of the date hereof and as described in the Registration Statement, the Pricing Disclosure Package or the Final Prospectus, or (iv) shares of Common Stock or other securities issued in connection with a bona fide commercial transaction with an unaffiliated third party (including joint ventures, marketing or distribution arrangements, collaboration agreements or intellectual property license agreements) or any acquisition of assets or acquisition of not less than a majority or controlling portion of the equity of another entity; provided, that the aggregate number of shares of Common Stock or securities convertible into or exercisable for Common Stock (on an as-converted or as-exercised basis, as the case may be) that the Company may sell or issue or agree to sell or issue pursuant to this clause (iv) shall not exceed 10% of the total number of shares of the Company's Common Stock issued and outstanding immediately following the completion of the transactions contemplated by this Agreement; and provided further, that each recipient of shares of Common Stock or securities convertible into or exercisable for Common Stock pursuant to this clause (iv) shall execute a Lock-Up Agreement substantially in the form of Exhibit A hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) *Agreement to Announce Lock-up Waiver.* If the Representatives, in their sole discretion, agrees to release or waive the restrictions set forth in the Lock-up Agreement for an officer or director of the Company and provide the Company with notice of the impending release or waiver at least three business days before the effective date of the release or waiver, the Company agrees to announce the impending release or waiver by a press release substantially in the form of Exhibit B hereto through a major news service or through other means permitted by FINRA at least two business days before the effective date of the release or waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) *Emerging Growth Company Status*. The Company will promptly notify the Representatives if the Company ceases to be an Emerging Growth Company at any time prior to the later of (i) the end of the Prospectus Delivery Period and (ii) 180 days after the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) *Issuer Free Writing Prospectuses*. The Company represents and agrees that, unless it obtains the prior consent of the Representatives, and each Underwriter represents and agrees that, unless it obtains the prior consent of the Company and the Representatives, it has not made and will not make any offer relating to the Offered Securities that would constitute an Issuer Free Writing Prospectus, or that would otherwise constitute a "free writing prospectus," as defined in Rule 405, required to be filed with the Commission; provided that the prior written consent of the parties hereto shall be deemed to have been given in respect of the free writing prospectuses included in Schedule B. Any such free writing prospectus consented to by the Company and the Representatives is hereinafter referred to as a "**Permitted Free Writing Prospectus**." The Company represents that it has treated and agrees that it will treat each Permitted Free Writing Prospectus as an "issuer free writing prospectus," as defined in Rule 433, and has complied and will comply with the requirements of Rules 164 and 433 applicable to any Permitted Free Writing Prospectus, including timely Commission filing where required, legending and record keeping.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) *Transfer Agent*. The Company hereby agrees to engage and maintain, at its expense, a registrar and transfer agent for the Common Stock reasonably acceptable to the Underwriters, and shall retain such transfer agent for a period of not less than one year from the First Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) *Press Release*. The Company shall not issue any press release without the Representatives' prior written consent, commencing on the date of this Agreement and continuing for a period of 40 days from the First Closing Date, other than normal and customary releases issued in the ordinary course of the Company's business, each of which the Underwriters shall have a reasonable right to review in advance of publication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) *Effectiveness of the Registration Statement*. The Company will use commercially reasonable efforts to cause the Registration Statement to remain effective with a current prospectus until the later of nine months from the date of this Agreement and the date on which the Representatives' Warrants are no longer outstanding, and will notify the Underwriters immediately and confirm the notice in writing: (i) of the effectiveness of the Registration Statement and any amendment thereto; (ii) of the issuance by the Commission of any stop order or of the initiation, or the threatening, of any proceeding for that purpose; (iii) of the issuance by any state securities commission of any proceedings for the suspension of the qualification of the Public Securities for offering or sale in any jurisdiction or of the initiation, or the threatening, of any proceeding for that purpose; (iv) of the mailing and delivery to the Commission for filing of any amendment or supplement to the Registration Statement or Final Prospectus; (v) of the receipt of any comments or request for any additional information from the Commission; and (vi) of the happening of any event during the period described in this Section 5(s) that, in the judgment of the Company, makes any statement of a material fact made in the Registration Statement or the Final Prospectus untrue or that requires the making of any changes in the Registration Statement or the Final Prospectus in order to make the statements therein, in light of the circumstances under which they were made, not misleading. If the Commission or any state securities commission shall enter a stop order or suspend such qualification at any time, the Company will make every reasonable effort to obtain promptly the lifting of such order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. *Conditions of the Obligations of the Underwriters*. The obligations of the several Underwriters to purchase and pay for the Firm Securities on the First Closing Date and the Option Securities to be purchased on each Option Closing Date will be subject to the accuracy of the representations and warranties of the Company herein (as though made on such Closing Date), to the accuracy of the statements of Company officers made pursuant to the provisions hereof, to the performance by the Company of their obligations hereunder and to the following additional conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Filing of Prospectus*. If filing of the Final Prospectus, or any amendment or supplement thereto, or any Issuer Free Writing Prospectus, is required under the Act or the Rules and Regulations, the Company shall have timely filed the Final Prospectus (or such amendment or supplement) or such Issuer Free Writing Prospectus with the Commission in the manner and within the time period so required (without reliance on Rule 424(b)(8) or 164(b) under the Act); the Registration Statement shall remain effective; no stop order suspending the effectiveness of the Registration Statement or any part thereof, any Rule 462 Registration Statement, or any amendment thereof, nor suspending or preventing the use of the Pricing Disclosure Package, any Prospectus, the Final Prospectus or any Issuer Free Writing Prospectus shall have been issued; no proceedings for the issuance of such an order shall have been initiated or, to the Company's knowledge, threatened by the Commission; any request of the Commission for additional information (to be included in the Registration Statement, the Pricing Disclosure Package, any Prospectus, the Final Prospectus, any Issuer Free Writing Prospectus or otherwise) shall have been complied with to the reasonable satisfaction of the Underwriters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Exchange Listing*. The Public Securities shall have been approved for listing on the Nasdaq Capital Market (the "**Exchange**"), subject to official notice of issuance and evidence of satisfactory distribution, and shall be DTC eligible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *FINRA Matters*. FINRA shall have raised no objection to the fairness and reasonableness of the underwriting terms and arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Continued Compliance with Securities Laws*. The Representatives shall not have reasonably determined and advised the Company that the Registration Statement, the Pricing Disclosure Package, any Prospectus, the Final Prospectus, or any amendment thereof or supplement thereto, or any Issuer Free Writing Prospectus, contains an untrue statement of fact which, in the reasonable opinion of the Representative, is material, or omits to state a fact which, in the Representatives' reasonable opinion, is material and is required to be stated therein or necessary to make the statements therein not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Ratings*. On or after the date hereof (i) no downgrading shall have occurred in the rating accorded any of the Company's securities by any "nationally recognized statistical organization," as that term is defined by the Commission for purposes of Rule 436(g)(2) under the Act, and (ii) no such organization shall have publicly announced that it has under surveillance or review, with possible negative implications, its rating of any of the Company's securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Accountants' Comfort Letters.* On the date of this Agreement and on the First Closing Date and each Option Closing Date, the Company Auditor shall have furnished to the Representatives, at the request of the Company, a letter, dated the respective dates of delivery thereof and addressed to the Underwriters, in form and substance satisfactory to the Representatives, confirming that they are independent public accountants within the meaning of the Act and are in compliance with the applicable requirements relating to the qualifications of accountants under Rule 201 of Regulation S X of the Commission, and confirming the conclusions and findings of said firm, of the type ordinarily included in accountants' "comfort letters" to underwriters, with respect to the financial and related information, and other matters required by the Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *No Material Adverse Change.* Subsequent to the execution and delivery of this Agreement, there shall not have occurred (i) any change, or any development or event involving a prospective change, in the condition (financial or otherwise), results of operations, business, properties or prospects of the Company and its Subsidiaries taken as a whole which, in the reasonable judgment of the Representatives, is material and adverse and makes it impractical or inadvisable to market the Offered Securities; (ii) any downgrading in the rating of any debt securities of the Company by any "nationally recognized statistical rating organization" (as defined in Section 3(a)(62) of the Exchange Act), or any public announcement that any such organization has under surveillance or review its rating of any debt securities of the Company (other than an announcement with positive implications of a possible upgrading, and no implication of a possible downgrading, of such rating); (iii) any change in either U.S. or international financial political or economic conditions or currency exchange rates or exchange controls the effect of which is such as to make it, in the reasonable judgement of the Representatives, impractical to market or to enforce contracts for the sale of the Offered Securities, whether in the primary market or in respect of dealings in the secondary market, (iv) any suspension or material limitation of trading in securities generally on the Exchange or the New York Stock Exchange, or any setting of minimum or maximum prices for trading on such exchange; (v) or any suspension of trading of any securities of the Company on any exchange or in the over-the-counter market; (vi) any banking moratorium declared by any U.S. federal or New York authorities; (vii) any major disruption of settlements of securities, payment or clearance services in the United States or any other country where such securities are listed or (viii) any attack on, outbreak or escalation of hostilities or act of terrorism involving the United States, any declaration of war by Congress or any other national or international calamity or emergency if, in the reasonable judgment of the Representative, the effect of any such attack, outbreak, escalation, act, declaration, calamity or emergency is such as to make it impractical or inadvisable to market the Offered Securities or to enforce contracts for the sale of the Offered Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Opinions of Counsel for the Company.* On the First Closing Date and on each Option Closing Date, the Representatives shall have received an opinion and negative assurances letter of Dorsey & Whitney LLP, counsel to the Company, dated as of such Closing Date, and addressed to the Underwriters, in form and substance reasonably satisfactory to the Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Opinion of Counsel for Underwriters.* On the First Closing Date and on each Option Closing Date, the Representatives shall have received from K&L Gates LLP, counsel for the Underwriters, an opinion, dated as of such Closing Date, with respect to such matters as the Representatives may require, and the Company shall have furnished to such counsel such documents as they request for the purpose of enabling them to pass upon such matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *No Legal Impediment to Issuance*. No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any federal, state, local or foreign governmental or regulatory authority that would, as of such Closing Date, prevent the issuance or sale of the Public Securities; and no injunction or order of any federal, state, local or foreign court shall have been issued that would, as of such Closing Date, prevent the issuance or sale of the Public Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *Good Standing.* On the First Closing Date and on each Option Closing Date, the Underwriters shall have received on and as of such Closing Date satisfactory evidence of the good standing of the Company and its Subsidiaries in their respective jurisdictions of organization and their good standing as foreign entities in such other jurisdictions as the Underwriters may reasonably request, in each case in writing or any standard form of telecommunication from the appropriate governmental authorities of such jurisdictions or, for any such jurisdiction in which evidence of good standing may not be obtained from appropriate governmental authorities, in the form of an opinion of counsel licensed in the applicable jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) *Officers' Certificate.* On the First Closing Date and on each Option Closing Date, the Representatives shall have received a certificate, dated as of such Closing Date, executed by the Chief Executive Officer and Chief Financial Officer of the Company, in which such officers shall certify that: the representations and warranties of the Company in this Agreement are true and correct as if made at and as of such Closing Date; the Company has complied with all agreements and satisfied all conditions on its part to be performed or satisfied at or prior to such Closing Date; no stop order or other order (i) suspending the effectiveness of any Registration Statement or any part thereof or any amendment thereof, (ii) suspending the qualification of the Public Securities for offering or sale, or (iii) suspending or preventing the use of the Pricing Disclosure Package, any Prospectus, the Final Prospectus or any Issuer Free Writing Prospectus, has been issued, and no proceedings for that purpose have been instituted or, to their knowledge and after reasonable investigation, are contemplated by the Commission or any state or regulatory body; there has been no occurrence of any event resulting or reasonably likely to result in a Material Adverse Effect during the period from and after the date of this Agreement and prior to such Closing Date; the Company's Certificate of Incorporation, Memorandum of Association, and Articles of Association are true and complete, have not been modified and are in full force and effect; the resolutions of the Board relating to the Offering are in full force and effect and have not been modified; as to the accuracy and completeness of all correspondence between the Company or its counsel and the Commission; as to the incumbency of the officers and directors of the Company; and with respect to such other matters as the Representatives may reasonably require. The documents referred to in such certificate shall be attached to such certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) *Chief Financial Officer's Certificate.* On the date of this Agreement, the Representatives shall have received a certificate, dated the date hereof, of the Company's Chief Financial Officer (the "**CFO Certificate**"), in form and substance reasonably satisfactory to the Representatives, covering certain financial and operational data included in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus and other customary matters. In addition, on the First Closing Date and on each Option Closing Date, the Representatives shall have received from the Company a "bring-down CFO Certificate" dated such Closing Date addressed to the Underwriters, in form and substance reasonably satisfactory to the Representatives, covering certain financial and operational data included in the Registration Statement, the Pricing Disclosure Package and the Final Prospectus and other customary matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) *Lock-Up Agreements.* On or prior to the date hereof, the Representatives shall have received duly executed lock-up agreements, in the form set forth on Exhibit A hereto, from each of the Lock-Up Parties, and such lock-up agreements shall be in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) [Reserved.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) *Representatives' Warrants*. At the First Closing Date and on each Option Closing Date, the Company shall issue the Representatives' Warrants to the Representatives, as set forth herein.

The Company shall have furnished to the Representatives and its counsel such additional documents, certificates and evidence as the Representatives or its counsel may have reasonably requested. All opinions, letters, certificates and other items mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form and substance reasonably satisfactory to the Representatives or its counsel. If any condition specified in this Section 6 shall not have been fulfilled when and as required to be fulfilled, this Agreement may be terminated by the Underwriters by notice to the Company at any time at or prior to the First Closing Date or on each Option Closing Date, as applicable, and such termination shall be without liability of any party to any other party, except that Section 5(j), Section 7 and Section 10 shall survive any such termination and remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. *Indemnification and Contribution*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Indemnification of Underwriters by Company.* The Company agrees to indemnify and hold harmless each Underwriter, its partners, members, directors, officers, employees, agents, affiliates and each person, if any, who controls such Underwriter within the meaning of Section 15 of the Act or Section 20 of the Exchange Act (each an "**Indemnified Party**"), from and against any and all losses, claims, damages or liabilities, joint or several, to which such Indemnified Party may become subject, under the Act, the Exchange Act, other federal, local, foreign or state statutory law or regulation or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of any material fact contained in any part of any Registration Statement at any time, including the information deemed to be a part of the Registration Statement at the time of effectiveness and at any subsequent time pursuant to Rules 430A and 430B of the Rules and Regulations, or arise out of or are based upon the omission from the Registration Statement, or alleged omission to state therein, a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement of material fact contained in the Pricing Disclosure Package, any Written Testing-the-Waters Communications, any Prospectus, or any amendment or supplement thereto, any Issuer Free Writing Prospectus, or the Marketing Materials or in any other materials provided by the Company or any alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, (iii) in whole or in part, any material inaccuracy in the representations and warranties of the Company contained herein, or (iv) in whole or in part, any material failure of the Company to perform its obligations hereunder or under law, and will reimburse each Indemnified Party for any legal or other expenses reasonably incurred by such Indemnified Party in connection with evaluating, investigating or defending against any loss, claim, damage, liability, action, litigation, investigation or proceeding whatsoever (whether or not such Indemnified Party is a party thereto), whether threatened or commenced, and in connection with the enforcement of this provision with respect to any of the above as such expenses are incurred; provided, however, that the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement in or omission or alleged omission from the Registration Statement, the Pricing Disclosure Package, any Written Testing-the-Waters Communications, any Prospectus, or any amendment or supplement thereto or any Issuer Free Writing Prospectus, in reliance upon and in conformity with written information furnished to the Company by the related Underwriter specifically for use therein, it being understood and agreed that the only such information furnished by any Underwriter consists of the information described as such in subsection ‎(f) below. The Underwriters shall not be responsible to the Company for any failure to purchase Offered Securities by any Company Introduced Investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Indemnification of Company.* Each Underwriter will severally and not jointly indemnify and hold harmless the Company, each of its directors and each of its officers who signs a Registration Statement and each person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, (each, an "**Underwriter Indemnified Party**") against any losses, claims, damages or liabilities to which such Underwriter Indemnified Party may become subject, under the Act, the Exchange Act, or other federal, local, foreign or state statutory law or regulation or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in any part of any Registration Statement at any time, the Pricing Disclosure Package, any Prospectus, or any amendment or supplement thereto or any Issuer Free Writing Prospectus, or arise out of or are based upon the omission or the alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company by such Underwriter through the Representatives specifically for use therein, it being understood and agreed that the only such information furnished by any Underwriter consists of the information described as such in subsection ‎(f) below, and will reimburse any legal or other expenses reasonably incurred by such Underwriter Indemnified Party in connection with evaluating, investigating or defending against any such loss, claim, damage, liability, action, litigation, investigation or proceeding whatsoever (whether or not such Underwriter Indemnified Party is a party thereto), whether threatened or commenced, based upon any such untrue statement or omission, or any such alleged untrue statement or omission as such expenses are incurred The obligation of the Underwriters to indemnify the Company (including any controlling person, director or officer thereof) shall be limited to the amount of the underwriting discount applicable to the Offered Securities to be purchased by the Underwriters hereunder actually received by the Underwriters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Actions against Parties; Notification.* Promptly after receipt by an indemnified party under this Section of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party under this Section 7, notify the indemnifying party of the commencement thereof; but the failure to notify the indemnifying party shall not relieve it from any liability that it may have under this Section 7 except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided further that the failure to notify the indemnifying party shall not relieve it from any liability that it may have to an indemnified party otherwise than under this Section 7. In case any such action is brought against any indemnified party and it notifies an indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party will not be liable to such indemnified party under this Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. Notwithstanding the foregoing, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by this Section 7, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request or disputed in good faith the indemnified party's entitlement to such reimbursement prior to the date of such settlement and (iii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party unless such settlement (i) includes an unconditional release of such indemnified party from all liability on any claims that are the subject matter of such action and (ii) does not include a statement as to, or an admission of, fault, culpability or a failure to act by or on behalf of an indemnified party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Contribution.* If the indemnification provided for in this Section is unavailable or insufficient to hold harmless an indemnified party under this Section 7, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of the losses, claims, damages or liabilities referred to in this Section 7 (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Offered Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The amount paid by an indemnified party as a result of the losses, claims, damages or liabilities referred to in the first sentence of this subsection ‎(d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any action or claim which is the subject of this subsection ‎(d). Notwithstanding the provisions of this subsection ‎(d), no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Securities underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters' obligations in this subsection ‎(d) to contribute are several in proportion to their respective underwriting obligations and not joint. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 7(d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in this Section 7(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The obligations of the Company under this Section 7 shall be in addition to any liability that the Company may otherwise have and the benefits of such obligations shall extend, upon the same terms and conditions, to each person, if any, who controls the Underwriters within the meaning of Section 15 of the Act or Section 20 of the Exchange Act; and the obligations of each Underwriters under this Section 7 shall be in addition to any liability that the Underwriters may otherwise have and the benefits of such obligations shall extend, upon the same terms and conditions, to the Company and its respective officers, directors and each person who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) For purposes of this Agreement, each of the Underwriters severally confirms, and the Company acknowledges, that there is no information concerning such Underwriter furnished in writing to the Company by such Underwriter specifically for preparation of or inclusion in the Registration Statement, the Pricing Disclosure Package, any Prospectus, the Final Prospectus or any Issuer Free Writing Prospectus, other than the statement set forth in the last paragraph on the cover page of the Final Prospectus, the marketing and legal names of each of the Underwriters, and the statements set forth in the "Underwriting" section of the Registration Statement, the Pricing Disclosure Package, and the Final Prospectus only insofar as such statements relate to the amount of selling concession and re-allowance, if any, or to over-allotment, stabilization and related activities that may be undertaken by such Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. *Default of Underwriters*. If any Underwriter or Underwriters default in their obligations to purchase Offered Securities hereunder on either the First Closing Date or any Option Closing Date and the aggregate number of shares of Offered Securities that such defaulting Underwriter or Underwriters agreed but failed to purchase does not exceed 10% of the total number of shares of Offered Securities that the Underwriters are obligated to purchase on such Closing Date, the Representatives may make arrangements satisfactory to the Company for the purchase of such Offered Securities by other persons, including any of the Underwriters, but if no such arrangements are made by such Closing Date, the non-defaulting Underwriters shall be obligated severally, in proportion to their respective commitments hereunder, to purchase the Offered Securities that such defaulting Underwriters agreed but failed to purchase on such Closing Date. If any Underwriter or Underwriters so default and the aggregate number of shares of Offered Securities with respect to which such default or defaults occur exceeds 10% of the total number of shares of Offered Securities that the Underwriters are obligated to purchase on such Closing Date and arrangements satisfactory to the Representatives and the Company for the purchase of such Offered Securities by other persons are not made within 36 hours after such default, this Agreement will terminate without liability on the part of any non-defaulting Underwriter or the Company, except as provided in Section 5(j), Section 7 and Section 10 (provided that if such default occurs with respect to Option Securities after the First Closing Date, this Agreement will not terminate as to the Firm Securities or any Option Securities purchased prior to such termination). As used in this Agreement, the term "Underwriter" includes any person substituted for an Underwriter under this Section. Nothing herein will relieve a defaulting Underwriter from liability for its default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. *Termination*. The Underwriters may terminate this Agreement by notice given by the Representatives to the Company, at any time prior to the First Closing Date or any Option Closing Date (as to the Option Securities to be purchased on such Option Closing Date only), if (i) there has occurred any material adverse change in the securities markets or any event, act or occurrence that has materially disrupted the securities markets or there has been a material adverse change in general financial, political or economic conditions the effect of which is to make it, in the reasonable judgment of the Representatives, inadvisable or impracticable to market the Offered Securities (ii) trading of any securities of the Company shall have been suspended on any exchange or in any over-the-counter market, (iii) minimum or maximum prices for trading shall have been fixed, or maximum ranges for prices for securities shall have been required, on the Exchange or the New York Stock Exchange, by such exchange or by order of the Commission or any other governmental authority having jurisdiction, (iv) a material disruption in securities settlement, payment or clearance services in the United States shall have occurred, (v) any moratorium on commercial banking activities shall have been declared by federal or New York State authorities, (vi) there shall have occurred any outbreak or escalation of hostilities, or any change in financial markets or any calamity or crisis that, in the judgment of the Representative, is material and adverse and which, singly or together with any other event specified in this clause (vi), makes it, in the judgment of the Representative, impracticable or inadvisable to proceed with the offer, sale or delivery of the Offered Securities on the terms and in the manner contemplated in the Registration Statement, the Pricing Package or the Final Prospectus or (vii) in the reasonable judgment of the Underwriters, there has been, since the time of execution of this Agreement or since the respective dates as of which information is given in the Registration Statement, the Pricing Disclosure Package or the Final Prospectus, any material adverse change in the assets, properties, condition, financial or otherwise, or in the results of operations, business affairs or business prospects of the Company and its Subsidiaries considered as a whole, whether or not arising in the ordinary course of business. Any such termination shall be without liability of any party to any other party except that the provisions of Section 5(j), Section 7 and Section 10 hereof shall at all times be effective and shall survive such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. *Survival of Certain Representations and Obligations*. The respective indemnities, agreements, representations, warranties and other statements of the Company or its officers and of the several Underwriters set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation, or statement as to the results thereof, made by or on behalf of any Underwriter, the Company or any of their respective representatives, officers or directors or any controlling person, and will survive delivery of and payment for the Offered Securities. If the purchase of the Offered Securities by the Underwriters is not consummated for any reason other than solely because of the termination of this Agreement pursuant to Section ‎9 hereof, the Company will reimburse the Underwriters for all out-of-pocket expenses (including fees and disbursements of counsel) reasonably incurred by them in connection with the offering of the Offered Securities in accordance with and subject to the limitations of Section 5(j) hereof, and the respective obligations of the Company and the Underwriters pursuant to Section 7 hereof shall remain in effect. In addition, if any Offered Securities have been purchased hereunder, the representations and warranties in Section 2 and all obligations under Section 5 shall also remain in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. *Notices*. All communications hereunder will be in writing and, if sent to the Underwriters, will be mailed, delivered or emailed to the Representatives at Roth Capital Partners, LLC, 800 San Clemente Drive, Suite 400, Newport Beach, CA 92660, e-mail: rothecm@roth.com, Attention: Managing Director, and Lake Street Capital Markets, LLC, 920 2nd Avenue South, Suite 700, Minneapolis, MN 55402, e-mail: [●].com, Attention: [●], or, if sent to the Company, will be mailed, delivered or emailed to [●], e-mail: [●], Attention: [●].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. *Successors*. This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and the officers and directors and controlling persons referred to in Section 7, and no other person will have any right or obligation hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. *Representation of Underwriters*. The Representatives will act for the several Underwriters in connection with the transactions contemplated by this Agreement, and any action under this Agreement taken by the Representatives will be binding upon all the Underwriters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. *Counterparts*. This Agreement may be executed and delivered (including by electronic mail) in any number of counterparts, each of which shall be deemed to be an original, and all such counterparts shall together constitute one and the same Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. *Absence of Fiduciary Relationship.* The Company acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *No Other Relationship.* The Representatives and the other Underwriters have been retained solely as independent contractors to act as underwriters in connection with the sale of the Offered Securities and that no fiduciary, advisory or agency relationship between the Company, on the one hand, and the Representatives or any other Underwriter, on the other, has been created in respect of any of the transactions contemplated by this Agreement or the Final Prospectus, irrespective of whether the Representatives or any such Underwriter has advised or is advising the Company on other matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Arms' Length Negotiations.* The price of the Offered Securities set forth in this Agreement was established by the Company following discussions and arms-length negotiations with the Representatives and the Company is capable of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions contemplated by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Absence of Obligation to Disclose.* The Company has been advised that the Underwriters and their affiliates are engaged in a broad range of transactions which may involve interests that differ from those of the Company and that the Underwriters have no obligation to disclose such interests and transactions to the Company by virtue of any fiduciary, advisory or agency relationship; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Waiver.* The Company waives, to the fullest extent permitted by law, any claims it may have against the Representatives or any of the other Underwriters for breach of fiduciary duty or alleged breach of fiduciary duty and agrees that the Representatives and the other Underwriters shall have no liability (whether direct or indirect) to the Company in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of the Company, including stockholders, employees or creditors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. *Applicable Law*. This Agreement**,** and any claim, controversy or agreement arising from or relating to this Agreement, shall be governed by, and construed in accordance with, the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. *Amendments and Waivers*. No supplement, modification or waiver of this Agreement shall be binding unless executed in writing by the party to be bound thereby. The failure of a party to exercise any right or remedy shall not be deemed or constitute a waiver of such right or remedy in the future. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (regardless of whether similar), nor shall any such waiver be deemed or constitute a continuing waiver unless otherwise expressly provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. *Partial Unenforceability*. The invalidity or unenforceability of any section, paragraph, clause or provision of this Agreement shall not affect the validity or enforceability of any other section, paragraph, clause or provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. *Submission to Jurisdiction*. The Company hereby irrevocably submits to the non-exclusive jurisdiction of the federal and state courts in the Borough of Manhattan in The City of New York in any suit or proceeding arising out of this Agreement, or any of the agreements or transactions contemplated by this Agreement, the Registration Statement, the Pricing Disclosure Package, any Prospectus and the Final Prospectus and agrees that all claims in respect of any such suit or proceeding may be heard and determined in any such court. The Company irrevocably and unconditionally waives, to the fullest extent permitted by law, any (i) objection to the laying of venue of any such suit or proceeding, including any claim that such suit or proceeding is brought in an inconvenient forum and (ii) any immunity from jurisdiction, in federal and state courts in the Borough of Manhattan in the City of New York and irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such suit or proceeding in any such court has been brought in an inconvenient forum. The Company further agrees to take any and all action as may be necessary to maintain such designation and appointment of such agent in full force and effect for a period of seven years from the date of this Agreement. EACH OF THE PARTIES HERETO (ON BEHALF OF ITSELF AND, TO THE FULLEST EXTENT PERMITTED BY LAW, ON BEHALF OF ITS RESPECTIVE CONTROLLING PERSONS, OFFICERS, DIRECTORS, MANAGERS, EQUITY HOLDERS AND CREDITORS) HEREBY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED UPON, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, THE REGISTRATION STATEMENT, THE PRICING DISCLOSURE PACKAGE, ANY PROSPECTUS AND THE FINAL PROSPECTUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. *Waiver of Jury Trial*. The Company hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. *Patriot Act*. In accordance with the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), the Underwriters are required to obtain, verify and record information that identifies their respective clients, including the Company, which information may include the name and address of their clients, as well as other information that will allow the Underwriters to properly identify their clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. *Recognition of the U.S. Special Resolution Regimes*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that any Underwriter that is a Covered Entity becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from such Underwriter of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that any Underwriter that is a Covered Entity or a BHC Act Affiliate of such Underwriter becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such Underwriter are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.

As used in this Section 22:

"BHC Act Affiliate" has the meaning assigned to the term "affiliate" in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k).

"Covered Entity" means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

"Default Right" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

"U.S. Special Resolution Regime" means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.

If the foregoing is in accordance with the Representatives' understanding of our agreement, kindly sign and return to the Company one of the counterparts hereof, whereupon it will become a binding agreement among the Company and the several Underwriters in accordance with its terms.

---

| |
|:---|
| Very truly yours, |
| FIREFLY AUTOMATIX, INC. |
| By: |
| Title: |

---

---

| |
|:---|
| The foregoing Underwriting Agreement is hereby confirmed and accepted as of the date first above written. |
| Roth Capital Partners, LLC |
| Name: |
| Title: |

---

---

| |
|:---|
| Acting on behalf of itself and as a Representative of the several Underwriters. |
| Lake Street Capital Markets, LLC |
| Name: |
| Title: |
| Acting on behalf of itself and as a Representative of the several Underwriters. |

---

**SCHEDULE A**

---

| | |
|:---|:---|
| **Underwriter** | **Number of Firm**<br> **Securities to be**<br> **Purchased**<br>|
| Roth Capital Partners, LLC | [●] |
| Lake Street Capital Markets, LLC | [●] |
| Chardan Capital Markets, LLC | [●] |
| &nbsp;&nbsp;&nbsp;Total | [●] |

---

The Underwriters may purchase up to an additional [●] Option Securities, to the extent the option described in this Agreement is exercised in the manner described in this Agreement.

**SCHEDULE B**

**Pricing Disclosure Package**

**1.** **Permitted Free Writing Prospectuses (included in the Pricing Disclosure Package):** 

[None]

**2.** **Other Information Included in the Pricing Disclosure Package:** 

Number of Firm Securities offered: [●]

Number of Option Securities offered: [●]

Initial public offering price per share for the Offered Securities: $[●]

Underwriting Discount: $[●] per share, representing an underwriting discount of 7.00%. The underwriting discount is reduced to 3.0% in connection with proceeds from any sales of the Offered Securities to certain individuals, strategic investors or similar entities brought by the Company's.

Proceeds to the Company before expenses, before sale of Option Securities and before the reduced underwriting discount noted above: $[●]

Trade Date: [●]

Settlement Date: [●]

**SCHEDULE C**

**Lock-Up Parties**

Steven R. Aposhian

Matthew G. Aposhian

Andrew Limpert

US Automatix LLC

Lindsay Jones

Lindsay & Jodi Jones Living Trust

Elizabeth Pettit Hocker

Paul Richardson

JuE Wong

Christopher Christensen

ATW Partners LLC

FF Opportunities 2 LLC

FF Opportunities 3 LLC

FF Opportunities 4 LLC

Isod LLC

IDREAM LLC

Kenny Milne

William M. Decker

Eric E. Aston

David Collier

Daniel A. Aposhian

Samuel H. Drake

Brad Pack

Trina Limpert

**SCHEDULE D**

**Written Testing-the-Waters Communications**

[●]

**Exhibit A**

**Form of Lock-Up Agreement**

[●], 2025

Roth Capital Partners, LLC

888 San Clemente Drive

Newport Beach, California 92660

Lake Street Capital Markets, LLC

920 2nd Avenue South, Suite 700

Minneapolis, Minnesota 55402

Re: Firefly Automatix, Inc.

Ladies and Gentlemen:

As an inducement to the underwriters, for which Roth Capital Partners, LLC and Lake Street Capital Markets, LLC (the "**Representatives**"), are acting as representatives, to execute the Underwriting Agreement (the "**Underwriting Agreement**"), pursuant to which an offering (the "**Offering**") will be made that is intended to result in the establishment of a public market for the shares of common stock, par value $0.001 (the "**Securities**"), of Firefly Automatix, Inc., a Delaware corporation (the "**Company**"), the undersigned hereby agrees that during the period specified in the following paragraph (the "**Lock-Up Period**"), the undersigned will not offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, make any short sale or otherwise transfer or dispose of, directly or indirectly, any Securities or securities convertible into or exchangeable or exercisable for or that represent the right to receive any Securities (including, without limitation, Securities which may be deemed to be beneficially owned by the undersigned in accordance with the rules and regulations of the Securities and Exchange Commission and Securities which may be issued upon exercise of a stock option or warrant), whether now owned or hereafter acquired, enter into a transaction which would have the same effect, or enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of the Securities, whether any such aforementioned transaction is to be settled by delivery of the Securities or such other securities, in cash or otherwise, or publicly disclose the intention to make any such offer, sale, pledge or disposition, or to enter into any such transaction, swap, hedge or other arrangement, without, in each case, the prior written consent of the Representatives (which consent may be withheld in their sole discretion). The foregoing restrictions are expressly agreed to preclude the undersigned from engaging in any hedging or other transaction which is designed to or which reasonably could be expected to lead to or result in a sale or disposition of any Securities even if such Securities would be disposed of by someone other than the undersigned. In addition, the undersigned agrees that, without the prior written consent of the Representatives (which consent may be withheld in their sole discretion), it will not, during the Lock-Up Period, make any demand for or exercise any right with respect to, the registration of any Securities or any security convertible into or exercisable or exchangeable for the Securities. Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Underwriting Agreement.

The Lock-Up Period will commence on the date of this Lock-Up Agreement and continue and include the date that is 180 days after the date of the final prospectus used to sell the Securities pursuant to the Underwriting Agreement.

Any Securities received upon exercise of options or warrants granted to the undersigned will also be subject to this Lock-Up Agreement. Any Securities acquired by the undersigned in the open market will not be subject to this Lock-Up Agreement.

In addition, the foregoing restrictions shall not apply to: (i) the exercise of stock options or other awards granted pursuant to the Company's equity incentive plans in effect as of the Closing Date and described in each of the Registration Statement, the Pricing Disclosure Package and the Final Prospectus; (ii) the exercise of warrants or conversion of convertible debt issued by the Company, as described in the Registration Statement, the Pricing Disclosure Package, or the Final Prospectus, provided that any such shares received upon such exercise or conversion shall remain subject to the provisions of this Lock-Up Agreement, (iii) cashless "net" exercises of options, convertible debt, and warrants held by the undersigned, provided that the provisions of this Lock-Up Agreement shall apply to any shares of Common Stock issued upon such exercise; (iv) the receipt by the undersigned of any securities of the Company from the Company, including, but not limited to, stock options or other awards granted pursuant to the Company's equity incentive plans in effect as of the Closing Date and described in each of the Registration Statement, the Pricing Disclosure Package and the Final Prospectus, and warrants exercisable for Securities, provided that the provisions of this Lock-Up Agreement shall apply to any Securities issued upon such exercise, or (v) transfers (a) as a bona fide gift or gifts, provided that the donee or donees thereof agree to be bound in writing by the restrictions set forth herein and that any filing under Section 16(a) of the Exchange Act reporting such transfer shall clearly indicate in the footnotes thereto that such transfer is not for value, that the Securities subject to such transfer remain subject to restrictions set forth herein and that the filing relates to the circumstance described in this clause (a), (b) to any trust for the direct or indirect benefit of the undersigned or family member of the undersigned, provided that any such transfer shall not involve a disposition for value and the trustee of the trust agrees to be bound in writing by the restrictions set forth herein, and, provided, further, that no filing under Section 16(a) of the Exchange Act, reporting a reduction in beneficial ownership of shares of Common Stock, shall be required or shall be voluntarily made during the Lock-Up Period, (c) by operation of law, such as pursuant to a qualified domestic order or as required by a divorce settlement, or (d) with the Representatives' prior written consent. For purposes of this Lock-Up Agreement, a "family member" shall mean any relationship by blood, marriage, domestic partnership or adoption, not more remote than first cousin.

In furtherance of the foregoing, the Company and its transfer agent and registrar are hereby authorized to decline to make any transfer of Securities if such transfer would constitute a violation or breach of this Lock-Up Agreement, and the undersigned agrees and consents to the entry of stop transfer instructions with the Company's transfer agent and registrar against the transfer of the undersigned's Securities except in compliance with the foregoing restrictions.

If the undersigned is an officer or director of the Company, the undersigned further agrees that the foregoing restrictions in this Lock-Up Agreement shall be equally applicable to any issuer-directed Securities the undersigned may purchase in the above-referenced offering.

If the undersigned is an officer or director of the Company, (i) Roth agrees that, at least three business days before the effective date of any release or waiver of the foregoing restrictions in connection with a transfer of Securities, Roth will notify the Company of the impending release or waiver, and (ii) the Company has agreed in the Underwriting Agreement to announce the impending release or waiver by press release through a major news service at least two business days before the effective date of the release or waiver. Any release or waiver granted by Roth hereunder to any such officer or director shall only be effective two business days after the publication date of such press release. The provisions of this paragraph will not apply if (a) the release or waiver is effected solely to permit a transfer not for consideration and (b) the transferee has agreed in writing to be bound by the same terms described in this Lock-Up Agreement to the extent and for the duration that such terms remain in effect at the time of the transfer.

This Lock-Up Agreement shall be binding on the undersigned and the successors, heirs, personal representatives and assigns of the undersigned. This Lock-Up Agreement shall lapse and become null and void if the Offering is not completed on or before [●], 2025. **This Lock-Up Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.**

[*Signature page follows*]

Very truly yours,

---

| | | | |
|:---|:---|:---|:---|
| **IF AN INDIVIDUAL:** | **IF AN INDIVIDUAL:** | **IF AN ENTITY:** | **IF AN ENTITY:** |
| By: |  |  |  |
|  | *(duly authorized signature)* | *(please print complete name of entity)* | *(please print complete name of entity)* |
| Name: |  | By: |  |
|  | *(please print full name)* |  | *(duly authorized signature)* |
|  |  | Name: |  |
|  |  |  | *(please print full name)* |
| Address: | Address: | Title: |  |
|  |  |  | *(please print full title)* |
|  |  | Address: | Address: |

---

**Exhibit B**

**Form of Press Release**

Firefly Automatix, Inc.

[Date]

Firefly Automatix, Inc. (the "Company") announced today that Roth Capital Partners, LLC and Lake Street Capital Markets, LLC, the joint book-running managers in the Company's recent public sale of shares of common stock, is [waiving] [releasing] a lock-up restriction with respect to shares of the Company's common stock held by [certain officers or directors] [an officer or director] of the Company. The [waiver] [release] will take effect on _____, _________ 20____, and the shares may be sold on or after such date.

**This press release is not an offer for sale of the securities in the United States or in any other jurisdiction where such offer is prohibited, and such securities may not be offered or sold in the United States absent registration or an exemption from registration under the United States Securities Act of 1933, as amended.**

**Exhibit C**

**Form of Representatives' Warrant**

[*See Attached*]

## Exhibit 3.5

**Exhibit 3.5**

**FIREFLY AUTOMATIX, INC.**

**CERTIFICATE OF DESIGNATION OF PREFERENCES, RIGHTS AND LIMITATIONS**

**OF**

**SERIES A CONVERTIBLE PREFERRED STOCK**

PURSUANT TO SECTION 151 OF THE

GENERAL CORPORATION LAW OF THE STATE OF DELAWARE

The undersigned, Andrew Limpert, hereby certifies that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. He is the Chief Executive Officer of FireFly Automatix, Inc., a Delaware corporation (the "***Corporation***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Corporation is authorized to issue 5,000,000 shares of "blank check" preferred stock, $0.001 par value per share, none of which have been previously designated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The following resolutions were duly adopted by the board of directors of the Corporation (the "***Board of Directors***"):

WHEREAS, the certificate of incorporation of the Corporation provides for a class of its authorized stock known as "blank check" preferred stock, consisting of 5,000,000 shares, $0.001 par value per share, issuable from time to time in one or more series;

WHEREAS, the Board of Directors is authorized to fix the powers, designations, preferences and relative, participation, optional or other rights, if any, and the qualifications, limitations or restrictions thereof, if any, of any wholly unissued series of preferred stock, including, without limitation, authority to fix the dividend rights, dividend rate, conversion rights, voting rights, rights and terms of redemption (including, without limitation, sinking fund provisions), redemption price or prices, and liquidation preferences of any such series, and the number of shares constituting any such series and the designation thereof, or any of the foregoing; and

WHEREAS, it is the desire of the Board of Directors, pursuant to its authority as aforesaid, to fix the powers, designations, preferences and relative, participation, optional or other rights, if any, and the qualifications, limitations or restrictions relating to a series of the preferred stock, which shall consist of [\*] shares which the Corporation has the authority to issue, as follows:

NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby provide for the issuance of a series of preferred stock for cash or exchange of debt or other securities, rights or property and does hereby fix and determine the powers, designations, preferences and relative, participation, optional or other rights, if any, and the qualifications, limitations or restrictions relating to such series of preferred stock as follows:

**TERMS OF THE SERIES A CONVERTIBLE PREFERRED STOCK**

1. **Definitions**. For the purposes hereof, the following terms shall have the following meanings:

***"Common Stock***" means the Corporation's common stock, par value $0.001 per share, and stock of any other class of securities into which such securities may hereafter be reclassified.

"***DGCL***" means the General Corporation Law of the State of Delaware.

***"Issuance Date***" means the first date on which any shares of Series A Preferred Stock are issued by the Corporation.

***"Junior Stock***" means the Common Stock and any other classes or series of capital stock ranking junior to the Series A Preferred Stock with respect to the distribution of assets on the Liquidation of the Corporation, or in respect of the payment of dividends or rights of redemption (and, in each case, any rights or options to acquire any Junior Stock).

***"Exchange Agreement***" means the Exchange Agreement, dated October 21, 2025, by and among the Corporation and the original holders of the Series A Preferred Stock, as amended, modified or supplemented from time to time in accordance with its terms.

***"Series A Original Issue Price***" means, with respect to each share of Series A Preferred Stock, $1,000 (subject to adjustment in the event of stock splits, combinations or similar events).

2. **Designation, Amount and Par Value; Assignment.** The series of preferred stock designated by this Certificate of Designation shall be designated as the Corporation's Series A Convertible Preferred Stock (the "***Series A Preferred Stock***") and the number of shares so designated shall be [\*] ([\*]). The Series A Preferred Stock shall have a par value of $0.001 per share. The Series A Preferred Stock shall rank senior to any Junior Stock with respect to the payment of dividends, rights of redemption and distribution of assets on the Liquidation of the Corporation. The Series A Preferred Stock will initially be issued in book-entry form. The Corporation shall register shares of the Series A Preferred Stock, upon records to be maintained by the Corporation for that purpose (the "***Series A Preferred Stock Register***"), in the name of the holders of the Series A Preferred Stock thereof from time to time. The Corporation may deem and treat the registered holders of the Series A Preferred Stock as the absolute owners thereof for the purpose of any conversion thereof and for all other purposes. Shares of Series A Preferred Stock may be issued solely in book-entry form or, if requested by any holder of the Series A Preferred Stock, such holder's shares may be issued in certificated form. The Corporation shall register the transfer of any shares of Series A Preferred Stock in the Series A Preferred Stock Register, upon surrender of the certificates (if applicable) evidencing such shares to be transferred, duly endorsed by the holder thereof, to the Corporation at its address specified herein. Upon any such registration or transfer, a new certificate (or book-entry notation, if applicable) evidencing the shares of Series A Preferred Stock so transferred shall be issued to the transferee and a new certificate (or book-entry notation, if applicable) evidencing the remaining portion of the shares not so transferred, if any, shall be issued to the transferring holder, in each case, within three business days. The provisions of this Certificate of Designation are intended to be for the benefit of all holders of the Series A Preferred Stock from time to time and shall be enforceable by any such holder. For the avoidance of doubt, this Series A Preferred Stock shall have no maturity date and shall not be redeemable at the election of the Corporation.

3. **Dividends.** The holders of the Series A Preferred Stock shall be entitled to receive when, as and if declared by the Board, out of any funds legally available therefor, dividends on shares of Series A Preferred Stock equal (on an as-if-converted-to-Common-Stock basis) to and in the same form as dividends (other than dividends in the form of Common Stock or other securities, which shall be made in accordance with <u>Sections 6(f) and (g)</u>) actually paid on shares of Junior Stock when, as and if such dividends (other than dividends in the form of Common Stock or other securities, which shall be made in accordance with <u>Sections 6(f) and (g)</u>) are paid on shares of Junior Stock (the "***Participating Dividends***").

The Corporation will not declare or pay any dividends or other distributions on any Junior Stock that would require a Participating Dividend unless it concurrently therewith declares and sets aside for payment or distribution, as applicable, such Participating Dividend for all shares of Series A Preferred Stock then outstanding.

4. **Liquidation, Dissolution or Winding Up; Certain Mergers, Consolidations and Asset Sales.** Upon any liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary (a "***Liquidation***"), the holders shall be entitled to receive out of the assets, whether capital or surplus, of the Corporation an amount equal to the aggregate Series A Original Issuance Price of the shares of Series A Preferred Stock held by such holders, plus any accrued and unpaid dividends thereon, before any distribution or payment shall be made to the holders of the Junior Stock, and if the assets of the Corporation shall be insufficient to pay in full such amounts, then the entire assets to be distributed to such holders shall be ratably distributed among such holders in accordance with the respective amounts that would be payable on such shares of Series A Preferred Stock if all amounts payable thereon were paid in full, and thereafter the same amount that a holder of Common Stock would receive if the Series A Preferred Stock were fully converted (disregarding for such purposes any conversion limitations hereunder) to Common Stock which amounts shall be paid pari passu with all holders of Common Stock. The Corporation shall mail written notice of any such Liquidation, not less than 45 days prior to the payment date stated therein, to each holder.

5. **Voting Rights**. Except as otherwise provided in the following sentence of this Section 5 or as otherwise expressly required by the DGCL, the Series A Preferred Stock shall have no voting rights. However, as long as any shares of Series A Preferred Stock are outstanding, the Corporation shall not, without the affirmative vote of the holders of a majority of the then outstanding shares of the Series A Preferred Stock, in addition to such other vote as may be required by the DGCL, (a) materially alter or change the powers, preferences or rights given to the Series A Preferred Stock or materially alter or amend this Certificate of Designation in a manner adverse to the holders of Series A Preferred Stock, (b) materially amend its certificate of incorporation or other charter documents in any manner that adversely affects any rights of the holders (in their capacity as holders of Series A Preferred Stock), (c) increase the number of authorized shares of Series A Preferred Stock, or (d) enter into any agreement with respect to any of the foregoing.

6. **Conversion**. The holders of the Series A Preferred Stock shall have conversion rights as follows (the "***Conversion Rights***"):

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** <u>Right to Convert</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** <u>Conversion Ratio</u>. Each share of Series A Preferred Stock shall be convertible, solely at the option
 of the holder thereof, at any time and from time to time after the Issuance Date, and without
 the payment of any additional consideration by the holder thereof, into such number of fully
 paid and non-assessable shares of Common Stock as is determined by dividing the Series A
 Original Issue Price by the Series A Conversion Price (as defined below) in effect at the
 time of conversion. The "  ***Series A Conversion Price***" shall initially
 be equal to $[\*]. Such initial Series A Conversion Price, and the rate at which shares of
 Series A Preferred Stock may be converted into shares of Common Stock, shall be subject to
 adjustment as provided below. For the avoidance of doubt, except as set forth in Section
 6(b) below, the Corporation shall not pay cash to satisfy the conversion of the Series A
 Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)** <u>Termination of Conversion Rights</u>. In the event of a Liquidation, the Conversion Rights shall terminate
 at the close of business on the last full day preceding the date fixed for the payment of
 any such amounts distributable on such event to the holders of Series A Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** <u>Fractional Shares</u>. No fractional shares of Common Stock shall be issued upon conversion of the Series
 A Preferred Stock. In lieu of any fractional shares to which the holder would otherwise be
 entitled, the Corporation shall pay cash equal to such fraction multiplied by the Conversion
 Price. Whether or not fractional shares would be issuable upon such conversion shall be determined
 on the basis of the total number of shares of Series A Preferred Stock the holder is at the
 time converting into Common Stock and the aggregate number of shares of Common Stock issuable
 upon such conversion.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** <u>Mechanics of Conversion</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** <u>Notice of Conversion</u>. In order for a holder of Series A Preferred Stock to voluntarily convert
 shares of Series A Preferred Stock into shares of Common Stock, such holder shall (a) provide
 written notice in the form attached hereto as <u>Annex A</u> to the Corporation or its transfer
 agent at the office of the transfer agent for the Series A Preferred Stock (or at the principal
 office of the Corporation if the Corporation serves as its own transfer agent) that such
 holder elects to convert all or any number of such holder's shares of Series A Preferred
 Stock and, if applicable, any event on which such conversion is or such future time at which
 such conversion shall be effective (a "  ***Conversion Notice***") and
 (b), if such holder's shares are certificated, surrender the certificate or certificates
 for such shares of Series A Preferred Stock (or, if such registered holder alleges that such
 certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement
 reasonably acceptable to the Corporation to indemnify the Corporation against any claim that
 may be made against the Corporation on account of the alleged loss, theft or destruction
 of such certificate), at the office of the transfer agent for the Series A Preferred Stock
 (or at the principal office of the Corporation if the Corporation serves as its own transfer
 agent). Such Conversion Notice shall state such holder's name or the names of the nominees
 in which such holder wishes the shares of Common Stock to be issued. If required by the Corporation,
 any certificates surrendered for conversion shall be endorsed or accompanied by a written
 instrument or instruments of transfer, in form satisfactory to the Corporation, duly executed
 by the registered holder or his, her or its attorney duly authorized in writing. The close
 of business on the date of receipt by the transfer agent (or by the Corporation if the Corporation
 serves as its own transfer agent) of such notice (or as applicable, the future event or time
 upon which the conversion was contingent or applicable) and, if applicable, certificates
 (or lost certificate affidavit and agreement) shall be the time of conversion (as applicable,
 the "  ***Conversion Time*** "), and the shares of Common Stock issuable
 upon conversion of the specified shares shall be deemed to be outstanding of record as of
 such Conversion Time. The Corporation shall, within (1) business day after the Conversion
 Time (the "  ***Share Delivery Date***") (i) issue and deliver to such
 holder of Series A Preferred Stock, or to his, her or its nominees, a certificate or certificates
 (or a notice of issuance of uncertificated shares, if applicable) for the number of full
 shares of Common Stock issuable upon such conversion (or a notice of such issuance if uncertificated
 shares are issued) in accordance with the provisions hereof and a certificate for the number
 (if any) of the shares of Series A Preferred Stock represented by the surrendered certificate
 that were not converted into Common Stock, or, if applicable, shall cause such number of
 shares of Common Stock converted hereunder to be transmitted by the Corporation's transfer
 agent to such holder by crediting the account of such holder's or its designee's
 balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian
 system if the Company is then a participant in such system, (ii) pay in cash such amount
 as provided in <u>Section 6(b)</u> in lieu of any fraction of a share of Common Stock otherwise
 issuable upon such conversion and (iii) pay all declared but unpaid dividends on the shares
 of Series A Preferred Stock converted. On any date of delivery of any shares of Common Stock
 to a holder upon the conversion of shares of Series A Preferred Stock, the Corporation shall
 use its best efforts to deliver such shares of Common Stock required to be delivered by the
 Corporation under this Section 6 electronically through the Depository Trust Company or another
 established clearing corporation performing similar functions, if applicable to the Common
 Stock. No additional legal opinion, other information or instructions shall be required of
 the Holders to convert such shares. Without limiting the preceding sentences, no ink-original
 Conversion Notice shall be required, nor shall any medallion guarantee (or other type of
 guarantee or notarization) of any Conversion Notice form be required in order to convert
 such shares. Upon delivery of a Conversion Notice, such holder shall be deemed for all corporate
 purposes to have become the holder of record of the applicable number of shares of Common
 Stock with respect to which such number of shares of Series A Preferred Stock were converted,
 irrespective of the date of delivery of such shares of Common Stock by the Corporation to
 such holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)** <u>Reservation of Shares</u>. The Corporation shall at all times when shares of Series A Preferred Stock
 are outstanding, reserve and keep available out of its authorized but unissued capital stock,
 for the purpose of effecting the conversion of the Series A Preferred Stock, such number
 of its duly authorized shares of Common Stock as shall from time to time be sufficient to
 effect the conversion of all outstanding Series A Preferred Stock and if applicable, such
 number of authorized shares of Common Stock as shall from time to time be sufficient to pay
 holders of shares of Series A Preferred Stock dividends in shares of Common Stock and dividends
 of other Company securities convertible into shares of Common Stock; and if at any time the
 number of authorized but unissued shares of Common Stock shall not be sufficient to effect
 the conversion of all then outstanding shares of the Series A Preferred Stock or the payment
 of such dividends, the Corporation shall take such corporate action as may be necessary to
 increase its authorized but unissued shares of Common Stock to such number of shares as shall
 be sufficient for such purposes, including, without limitation, engaging in best efforts
 to obtain the requisite stockholder approval of any necessary amendment to this Certificate
 of Designation and the certificate of incorporation of the Corporation. Before taking any
 action that would cause an adjustment reducing the Series A Conversion Price below the then
 par value of the shares of Common Stock issuable upon conversion of the Series A Preferred
 Stock, the Corporation will take any corporate action which may, in the opinion of its counsel,
 be necessary in order that the Corporation may validly and legally issue fully paid and non-assessable
 shares of Common Stock at such adjusted Series A Conversion Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)** <u>Effect of Conversion</u>. All shares of Series A Preferred Stock that shall have been surrendered
 for conversion as herein provided shall no longer be deemed to be outstanding and all rights
 with respect to such shares shall immediately cease and terminate at the Conversion Time,
 except only the right of the holders thereof to receive shares of Common Stock in exchange
 therefor, to receive payment in lieu of any fraction of a share otherwise issuable upon such
 conversion as provided in <u>Section 6(b)</u> and to receive payment of any dividends declared
 but unpaid thereon. Any shares of Series A Preferred Stock so converted shall resume the
 status of authorized but unissued shares of preferred stock of the Corporation and shall
 no longer be designated as Series A Preferred Stock, and the Corporation may thereafter take
 such appropriate action (without the need for stockholder action) as may be necessary to
 reduce the authorized number of shares of Series A Preferred Stock accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)** <u>No Further Adjustment</u>. Upon any such conversion, no adjustment to the Series A Conversion
 Price shall be made for any declared but unpaid dividends on the Series A Preferred Stock
 surrendered for conversion or on the Common Stock delivered upon conversion. The holder shall
 be credited for any accrued but unpaid dividends at the time of conversion to be paid in
 the form, and at the time, prescribed by <u>Section 3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)** <u>Rescission Rights</u>. If, in the case of any Conversion Notice delivered by a holder of shares of Series
 A Preferred Stock, such underlying shares of Common Stock are not delivered to or as directed
 by such holder by the Share Delivery Date, such holder shall be entitled to elect by written
 notice to the Corporation at any time on or before its receipt of such shares of Common Stock,
 to rescind such conversion, in which event the Corporation shall, if applicable, promptly
 return to such holder any original Series A Preferred Stock shares or certificates delivered
 to the Corporation and such holder shall promptly return to the Corporation any such shares
 of Common Stock issued to such holder pursuant to such rescinded Conversion Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vi)** <u>Obligation Absolute</u>. The Corporation's obligation to issue and deliver the shares of Common
 Stock upon conversion of shares of Series A Preferred Stock in accordance with the terms
 hereof are absolute and unconditional, irrespective of any action or inaction by a holder
 thereof to enforce the same, any waiver or consent with respect to any provision hereof,
 the recovery of any judgment against any person or entity, or any action to enforce the same,
 or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged
 breach by such holder or any other person or entity of any obligation to the Corporation
 or any violation or alleged violation of law by such holder or any other person or entity,
 and irrespective of any other circumstance which might otherwise limit such obligation of
 the Corporation to such holder in connection with the issuance of such shares of Common Stock;
 provided, however, that such delivery shall not operate as a waiver by the Corporation of
 any such action that the Corporation may have against such holder. In the event a holder
 of shares of Series A Preferred Stock shall elect to convert any or all of its shares of
 Series A Preferred Stock, the Corporation may not refuse conversion based on any claim that
 such holder or any one associated or affiliated with such holder has been engaged in any
 violation of law, agreement or for any other reason, unless an injunction from a court, on
 notice to such holder, restraining and/or enjoining conversion of all or part of the Series
 A Preferred Stock of such holder shall have been sought and obtained, and the Corporation
 posts a surety bond for the benefit of such holder in the amount of 150% of the aggregate
 Series A Original Issue Price of such shares of Series A Preferred Stock which is subject
 to the injunction, which bond shall remain in effect until the completion of arbitration/litigation
 of the underlying dispute and the proceeds of which shall be payable to such holder to the
 extent it obtains judgment. In the absence of such injunction, the Corporation shall issue
 such shares of Common Stock to such holder and, if applicable, cash or other securities of
 the Corporation, upon a properly noticed conversion. If the Corporation fails to deliver
 to a holder the shares of Common Stock to be issued upon conversion of shares of Series A
 Preferred Stock by such holder in such holder's Conversion Notice by the Share Delivery
 Date applicable to such conversion, the Corporation shall pay to such holder, in cash, as
 liquidated damages and not as a penalty, for each $5,000 of Series A Original Issue Price
 of Series A Preferred Stock being converted, $50 per trading day (increasing to $100 per
 trading day on the third trading day after such damages begin to accrue) for each trading
 day after the Share Delivery Date until such shares of Common Stock are delivered or such
 holder rescinds such conversion. Nothing herein shall limit the right of a holder of shares
 of Series A Preferred Stock to pursue actual damages for the Corporation's failure
 to deliver shares of Common Stock upon conversion thereof within the period specified herein
 and such holder shall have the right to pursue all remedies available to it hereunder, at
 law or in equity including, without limitation, a decree of specific performance and/or injunctive
 relief. The exercise of any such rights shall not prohibit a holder of shares of Series A
 Preferred Stock from seeking to enforce damages pursuant to any other Section hereof or under
 applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vii)** <u>Buy-In</u>.
 In addition to any other rights available to the Holder, if the Corporation fails for any
 reason to deliver to a holder of shares of Series A Preferred Stock the applicable number
 of shares of Common Stock by the Share Delivery Date, and if after such Share Delivery Date
 such holder is required by its brokerage firm to purchase (in an open market transaction
 or otherwise), or such holder's brokerage firm otherwise purchases, shares of Common
 Stock or other Company securities to deliver in satisfaction of a sale by such holder of
 the number of shares of Common Stock which such holder was entitled to receive upon such
 conversion relating to such Share Delivery Date (a "  ***Buy-In*** "), then
 the Corporation shall (A) pay in cash to such holder (in addition to any other remedies available
 to or elected by such holder) the amount, if any, by which (x) such holder's total
 purchase price (including any brokerage commissions) for the shares of Common Stock or other
 Company securities so purchased exceeds (y) the product of (1) the aggregate number of shares
 of Common Stock that such holder was entitled to receive from such conversion at issue multiplied
 by (2) the actual sale price at which the sell order giving rise to such purchase obligation
 was executed (including any brokerage commissions) and (B) at the option of such holder,
 either reissue (if surrendered) the shares of Series A Preferred Stock equal to the number
 of shares of Series A Preferred Stock submitted for such conversion (in which case, such
 conversion shall be deemed rescinded) or deliver to such holder the number of shares of Common
 Stock that would have been issued if the Corporation had timely complied with its delivery
 requirements under <u>Section 6(c)(i)</u>. For example, if a holder of shares of Series A
 Preferred Stock purchases shares of Common Stock having a total purchase price of $11,000
 to cover a Buy-In with respect to an attempted conversion of shares of Series A Preferred
 Stock with respect to which the actual sale price of such shares of Common Stock issuable
 upon such conversion (including any brokerage commissions) giving rise to such purchase obligation
 was a total of $10,000 under clause (A) of the immediately preceding sentence, the Corporation
 shall be required to pay such holder $1,000. The holder of shares of Series A Preferred Stock
 shall provide the Corporation written notice indicating the amounts payable to such holder
 in respect of the Buy-In and, upon request of the Corporation, evidence of the amount of
 such loss. Nothing herein shall limit the right of a holder of shares of Series A Preferred
 Stock to pursue any other remedies available to it hereunder, at law or in equity including,
 without limitation, a decree of specific performance and/or injunctive relief with respect
 to the Corporation's failure to timely deliver shares of Common Stock upon conversion
 of the shares of series A Preferred Stock as required pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;**(d)** <u>Beneficial Ownership Limitation</u>. Notwithstanding anything herein to the contrary, the Corporation
 shall not effect any conversion of the Series A Preferred Stock, and a holder shall not have
 the right to convert any portion of the Series A Preferred Stock, to the extent that, after
 giving effect to an attempted conversion set forth on an applicable conversion notice, such
 attempted conversion would result in the holder (together with such holder's affiliates,
 and any other person whose beneficial ownership of Common Stock would be aggregated with
 the holder's for purposes of Section 13(d) or Section 16 of the Securities Exchange
 Act of 1934, as amended (the "  ***Exchange Act*** "), and the applicable
 regulations of the U.S. Securities and Exchange Commission (the "  ***Commission*** "),
 including any "group" of which the holder is a member (the foregoing, "  ***Attribution Parties*** ")) beneficially owning a number of shares of Common Stock in excess
 of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing
 sentence, the number of shares of Common Stock beneficially owned by such holder and its
 Attribution Parties shall include the number of shares of Common Stock issuable upon conversion
 of the Series A Preferred Stock subject to the conversion notice with respect to which such
 determination is being made, but shall exclude the number of shares of Common Stock which
 are issuable upon (i) conversion of the remaining, unconverted shares of Series A Preferred
 Stock beneficially owned by such holder or any of its Attribution Parties, and (ii) exercise
 or conversion of the unexercised or unconverted portion of any other securities of the Corporation
 (including any warrants) beneficially owned by such holder or any of its Attribution Parties
 that, in the case of both (i) and (ii), are subject to a limitation on conversion or exercise
 similar to the limitation contained herein. For purposes of this <u>Section 6(d)</u>, beneficial
 ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the
 applicable regulations of the Commission. In addition, for purposes hereof, "group"
 has the meaning set forth in Section 13(d) of the Exchange Act and the applicable regulations
 of the Commission. For purposes of this <u>Section 6(d)</u>, in determining the number of
 outstanding shares of Common Stock, a holder may rely on the number of outstanding shares
 of Common Stock as stated in the most recent of the following: (A) the Corporation's
 most recent periodic or annual filing with the Commission, as the case may be, (B) a more
 recent public announcement by the Corporation that is filed with the Commission, or (C) a
 notice by the Corporation or the Corporation's transfer agent to the holder setting
 forth the number of shares of Common Stock then outstanding. Upon the written request of
 a holder (which may be by email) submitted to the Secretary of the Corporation, the Corporation
 shall, within three (3) business days thereof, confirm in writing to such holder (which may
 be via email) the number of shares of Common Stock then outstanding. In any case, the number
 of outstanding shares of Common Stock shall be determined after giving effect to any actual
 conversion or exercise of securities of the Corporation, including shares of Series A Preferred
 Stock, by such holder or its Attribution Parties since the date as of which such number of
 outstanding shares of Common Stock was last publicly reported or confirmed to the holder.
 The "  ***Beneficial Ownership Limitation***" shall initially be 9.99%
 of the number of shares of the Common Stock outstanding immediately after giving effect to
 the issuance of shares of Common Stock pursuant to such conversion notice (to the extent
 permitted pursuant to this <u>Section 6(d)</u>). The Corporation shall be entitled to rely
 on representations made to it by the holder in any conversion notice regarding its Beneficial
 Ownership Limitation. Notwithstanding the foregoing, by written notice to the Corporation,
 any holder may reset the Beneficial Ownership Limitation percentage applicable to such holder
 to a higher or lower percentage; provided, however, that in no case will the Beneficial Ownership
 Limitation exceed 9.99%. Any increase in the Beneficial Ownership Limitation will not be
 effective until the sixty-first (61<sup>st</sup>) day after such notice is delivered to the
 Corporation. Any decrease in the Beneficial Ownership Limitation will be effective upon delivery
 to the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;**(e)** <u>Adjustment for Stock Splits and Combinations</u>. If the Corporation shall at any time or from time
 to time after the Issuance Date effect a subdivision of the outstanding Common Stock, the
 Series A Conversion Price in effect immediately before that subdivision shall be proportionately
 decreased so that the number of shares of Common Stock issuable on conversion of each share
 of such series shall be increased in proportion to such increase in the aggregate number
 of shares of Common Stock outstanding. If the Corporation shall at any time or from time
 to time after the Issuance Date combine the outstanding shares of Common Stock, the Series
 A Conversion Price in effect immediately before the combination shall be proportionately
 increased so that the number of shares of Common Stock issuable on conversion of each share
 of such series shall be decreased in proportion to such decrease in the aggregate number
 of shares of Common Stock outstanding. Any adjustment under this <u>Section 6</u> shall become
 effective at the close of business on the date the subdivision or combination becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;**(f)** <u>Adjustment for Certain Dividends and Distributions</u>. In the event the Corporation at any time or
 from time to time after the Issuance Date shall make or issue, or fix a record date for the
 determination of holders of Junior Stock entitled to receive, a dividend or other distribution
 payable on Junior Stock in additional shares of Common Stock, then and in each such event
 the Series A Conversion Price in effect immediately before such event shall be decreased
 as of the time of such issuance or, in the event such a record date shall have been fixed,
 as of the close of business on such record date, by multiplying the Series A Conversion Price
 then in effect by a fraction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** the
 numerator of which shall be the total number of shares of Common Stock, plus any shares of
 Common Stock issuable upon conversion of any Junior Stock, in each case issued and outstanding
 immediately prior to the time of such issuance or the close of business on such record date,
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)** the
 denominator of which shall be the total number of shares of Common Stock, plus any shares
 of Common Stock issuable upon conversion of any Junior Stock, in each case issued and outstanding
 immediately prior to the time of such issuance or the close of business on such record date
 plus the number of shares of Common Stock issuable in payment of such dividend or distribution.

Notwithstanding the foregoing (a) if such record date shall have been fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the Series A Conversion Price shall be recomputed accordingly as of the close of business on such record date and thereafter the Series A Conversion Price shall be adjusted pursuant to this <u>Section 6</u> as of the time of actual payment of such dividends or distributions; and (b) no such adjustment shall be made if the holders of Series A Preferred Stock simultaneously receive a dividend or other distribution of shares of Common Stock in a number equal to the number of shares of Common Stock as they would have received if all outstanding shares of Series A Preferred Stock had been converted into Common Stock (without regard to any limitations in <u>Section 6(d)</u> on the conversion of the Series A Preferred Stock) on the date of such event.

&nbsp;&nbsp;&nbsp;&nbsp;**(g)** <u>Adjustments for Other Dividends and Distributions</u>. In the event the Corporation at any time or from
 time to time after the Issuance Date shall make or issue, or fix a record date for the determination
 of holders of Common Stock entitled to receive, a dividend or other distribution payable
 in securities of the Corporation (other than a distribution of shares of Common Stock in
 respect of outstanding shares of Common Stock) or in other property and the provisions of <u>Section 3</u> do not apply to such dividend or distribution, then and in each such event
 the holders of Series A Preferred Stock shall receive, simultaneously with the distribution
 to the holders of Common Stock, a dividend or other distribution of such securities or other
 property in an amount equal to the amount of such securities or other property as they would
 have received if all outstanding shares of Series A Preferred Stock had been converted into
 Common Stock (without regard to any limitations in Section 6(d) or Section 6(e) on the conversion
 of the Series A Preferred Stock) on the date of such event.

&nbsp;&nbsp;&nbsp;&nbsp;**(h)** <u>Adjustment for Merger or Reorganization, etc</u>. If there shall occur any reorganization, recapitalization,
 reclassification, consolidation or merger involving the Corporation in which the Common Stock
 (but not the Series A Preferred Stock) is converted into or exchanged for securities, cash
 or other property (other than a transaction covered by <u>Sections 6(e)</u> or <u>6(g)</u>),
 then, following any such reorganization, recapitalization, reclassification, consolidation
 or merger, each share of Series A Preferred Stock shall thereafter be convertible in lieu
 of the Common Stock into which it was convertible prior to such event into the kind and amount
 of securities, cash or other property which a holder of the number of shares of Common Stock
 of the Corporation issuable upon conversion of one share of Series A Preferred Stock immediately
 prior to such reorganization, recapitalization, reclassification, consolidation or merger
 would have been entitled to receive pursuant to such transaction; and, in such case, appropriate
 adjustment (as determined in good faith by the Board of Directors of the Corporation) shall
 be made in the application of the provisions in this <u>Section 6</u> with respect to the
 rights and interests thereafter of the holders of the Series A Preferred Stock, to the end
 that the provisions set forth in this <u>Section 6</u> (including provisions with respect
 to changes in and other adjustments of the Series A Conversion Price) shall thereafter be
 applicable, as nearly as reasonably may be, in relation to any securities or other property
 thereafter deliverable upon the conversion of the Series A Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;**(i)** <u>Certificate as to Adjustments</u>. Upon the occurrence of each adjustment or readjustment of the Series
 A Conversion Price pursuant to this <u>Section 6</u>, the Corporation at its expense shall,
 as promptly as reasonably practicable but in any event not later than ten (10) days thereafter,
 compute such adjustment or readjustment in accordance with the terms hereof and furnish to
 each holder of Series A Preferred Stock a certificate setting forth such adjustment or readjustment
 (including the kind and amount of securities, cash or other property into which the Series
 A Preferred Stock is convertible) and showing in detail the facts upon which such adjustment
 or readjustment is based. The Corporation shall, as promptly as reasonably practicable after
 the written request at any time of any holder of Series A Preferred Stock (but in any event
 not later than ten (10) days thereafter), furnish or cause to be furnished to such holder
 a certificate setting forth (i) the Series A Conversion Price then in effect, and (ii) the
 number of shares of Common Stock and the amount, if any, of other securities, cash or property
 which then would be received upon the conversion of Series A Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;**(j)** <u>Notice of Record Date</u>. In the event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** the
 Corporation shall take a record of the holders of its Common Stock (or other capital stock
 or securities at the time issuable upon conversion of the Series A Preferred Stock) for the
 purpose of entitling or enabling them to receive any dividend or other distribution, or to
 receive any right to subscribe for or purchase any shares of capital stock of any class or
 any other securities, or to receive any other security; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)** of
 any capital reorganization of the Corporation or any reclassification of the Common Stock
 of the Corporation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)** of
 any Liquidation of the Corporation,

then, and in each such case, the Corporation will send or cause to be sent to the holders of the Series A Preferred Stock a notice specifying, as the case may be, (i) the record date for such dividend, distribution or right, and the amount and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up is proposed to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock (or such other capital stock or securities at the time issuable upon the conversion of the Series A Preferred Stock) shall be entitled to exchange their shares of Common Stock (or such other capital stock or securities) for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up, and the amount per share and character of such exchange applicable to the Series A Preferred Stock and the Common Stock. Such notice shall be sent at least ten (10) days prior to the record date or effective date for the event specified in such notice.

7. **Waiver**.
 Any of the rights, powers, preferences and other terms of the Series A Preferred Stock set
 forth herein may be waived on behalf of all holders of Series A Preferred Stock by the affirmative
 written consent or vote of the holders of at least a majority of the shares of Series A Preferred
 Stock then outstanding.

8. **Notices**.
 Any notice required or permitted to be given to a holder of shares of Series A Preferred
 Stock shall be mailed, postage prepaid, to the post office address last shown on the records
 of the Corporation, or given by electronic communication in compliance with the provisions
 of the DGCL, and shall be deemed sent upon such mailing or electronic transmission.

**RESOLVED FURTHER**, that the officers of the Corporation be, and they hereby are, authorized and directed, for and in the name and on behalf of the Corporation, to prepare and to file a Certificate of Designation of Series A Preferred Stock in accordance with the foregoing resolution and the provisions of DGCL and to take such actions as they may deem necessary or appropriate to carry out the intent of the foregoing resolutions.

**IN WITNESS WHEREOF,** FireFly Automatix, Inc. has caused this Certificate of Designation of Preferences, Rights and Limitations of Series A Convertible Preferred Stock to be executed by the undersigned this [__] day of [__], 2025.

 <br> Name: Andrew Limpert <br> Title: Chief Executive Officer

**<u>ANNEX A</u>**

NOTICE OF CONVERSION

(TO BE EXECUTED BY THE REGISTERED HOLDER IN ORDER TO CONVERT SHARES OF SERIES A CONVERTIBLE PREFERRED STOCK)

The undersigned hereby elects to convert the number of shares of Series A Preferred Stock indicated below into shares of common stock, par value $0.001 per share (the "***Common Stock***"), of FireFly Automatix, Inc., a Delaware corporation (the "***Corporation***"), according to the conditions hereof, as of the date written below. If shares of Common Stock are to be issued in the name of a Person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto. No fee will be charged to the holders for any conversion, except for any such transfer taxes.

Conversion calculations:

---

| |
|:---|
| Date to Effect Conversion: |
| Number of shares of Series A Convertible Preferred Stock owned prior to Conversion: |
| Number of shares of Series A Convertible Preferred Stock to be Converted: |
| Aggregate Series A Original Issue Price of shares of Series A Convertible Preferred Stock to be Converted: |
| Number of shares of Common Stock to be Issued: |
| Applicable Series A Conversion Price: |
| Number of shares of Series A Convertible Preferred Stock subsequent to Conversion: |
| Address for Delivery:<br> <u>or</u><br> DWAC Instructions:<br> Broker no:<br> Account no: |

---

---

| |
|:---|
| [HOLDER] |
| By: |
| Name: |
| Title: |

---

## Exhibit 4.9

**Exhibit 4.9**

**[FORM OF Representatives' WARRANT TO PURCHASE COMMON STOCK]**

**THIS warrant AND THE WARRANT SHARES REPRESENTED BY THIS WARRANT ARE SUBJECT TO A LOCK-UP PERIOD OF ONE HUNDRED EIGHTY (180) DAYS BEGINNING ON THE DATE OF COMMENCEMENT OF SALES OF THE OFFERING, PURSUANT TO finra rule 5110(e)(1) and EXCEPT AS PROVIDED FOR IN FINRA RULE 5110(E)(2).**

**PURSUANT TO THE TERMS OF THIS WARRANT, ALL OR A PORTION OF THIS WARRANT MAY HAVE BEEN EXERCISED, AND THEREFORE THE ACTUAL NUMBER OF WARRANT SHARES REPRESENTED BY THIS WARRANT MAY BE LESS THAN THE AMOUNT SET FORTH ON THE FACE HEREOF.**

**FIREFLY AUTOMATIX, INC.**

**Warrant To Purchase Common Stock**

Warrant No.: [●]

Number of Shares of Common Stock: [●]

Date of Issuance: [●] ("**Issuance Date**")

FireFly Automatix, Inc., a Delaware corporation (the "**Company**"), hereby certifies that, pursuant to the Underwriting Agreement, dated as of [●], 2025 (the "**Underwriting Agreement**"), by and between the Company and Roth Capital Partners, LLC and Lake Street Capital Markets, LLC, as representatives of the several underwriters named in Schedule A thereto, providing for the initial public offering (the "**Offering**") of shares of the Company's Common Stock, [Roth Capital Partners, LLC/Lake Street Capital Markets, LLC], the registered holder hereof or its permitted assigns (the "**Holder**"), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price then in effect, at any time or times on or after the Issuance Date (the "**Exercisability Date**"), but not after 11:59 p.m., New York time, on the Expiration Date, [●] ([●])<sup>1</sup> fully paid nonassessable shares of Common Stock (the "**Warrant Shares**"). Except as otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in <u>Section 15</u>. This Warrant to Purchase Common Stock (this "**Warrant**") is issued pursuant to (i) the Underwriting Agreement and (ii) the Company's Registration Statement on Form S-1 (File No. 333-290743) (the "**Registration Statement**").

<sup>1</sup> 3.5% of the shares of Common Stock sold in the Offering at each Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>EXERCISE OF WARRANT.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Mechanics of Exercise</u>. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on any day on or after the Exercisability Date, through and including the Expiration Date, in whole or in part (but not as to fractional shares), by delivery of a written notice, in the form attached hereto as <u>Exhibit A</u> (the "**Exercise Notice**") of the Holder's election to exercise this Warrant. No ink-original Exercise Notice shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Exercise Notice form be required. Within two (2) Trading Days of the delivery of such Exercise Notice, if the Holder is not electing a Cashless Exercise pursuant to <u>Section 1(d)</u>, the Holder shall pay to the Company an amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the "**Aggregate Exercise Price**") in cash or wire transfer of immediately available funds (a "**Cash Exercise**"). The Holder shall not be required to surrender this Warrant in order to effect an exercise hereunder; provided, however, that in the event that this Warrant is exercised in full or for the remaining unexercised portion hereof, the Holder shall deliver this Warrant to the Company for cancellation within a reasonable time after such exercise. On or before the first (1<sup>st</sup>) Trading Day following the date on which the Holder has submitted the Exercise Notice to the Company (the date upon which the Holder has submitted the Exercise Notice to the Company, the "**Exercise Date**"), the Company shall transmit by email transmission an acknowledgment of confirmation of receipt of the Exercise Notice to the Holder and the Company's transfer agent for shares of Common Stock (the "**Transfer Agent**"). The Company shall deliver any objection to the Exercise Notice on or before the second (2<sup>nd</sup>) Trading Day following the date on which the Holder has submitted the Exercise Notice to the Company. On or before the second (2<sup>nd</sup>) Trading Day following the date on which the Holder has submitted the Exercise Notice to the Company, provided the Aggregate Exercise Price, as applicable, has been received by the Company prior to such Trading Day (the "**Share Delivery Date**"), the Company shall, upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder is entitled pursuant to such exercise to the Holder's or its designee's balance account with The Depository Trust Company ("**DTC**") through its Deposit Withdrawal Agent Commission system; provided, however, that if the Transfer Agent is not participating in the DTC's Fast Automated Securities Transfer Program or if the Warrant Shares are required to bear a legend regarding restriction on transferability, issue and dispatch by overnight courier to the address as specified in the Exercise Notice, a certificate or book entry statement, in the Holder's discretion, registered in the Company's share register in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery of the Exercise Notice and payment of the Aggregate Exercise Price, as applicable, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date such Warrant Shares are credited to the Holder's DTC account or the date of delivery of the certificates or book entry statements evidencing such Warrant Shares, as the case may be and in the Holder's discretion. If this Warrant is submitted in connection with any exercise pursuant to this <u>Section 1(a)</u> and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then the Company shall as soon as practicable and in no event later than three (3) Trading Days after any such submission and at its own expense, issue a new Warrant (in accordance with <u>Section 6(d)</u>) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant has been and/or is exercised. The Company shall pay any and all taxes and other expenses and fees (including overnight delivery charges and Transfer Agent fees) that may be payable with respect to the issuance and delivery of Warrant Shares upon exercise of this Warrant; <u>provided</u>, <u>however</u>, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of any certificates or book entry statements for Warrant Shares or Warrants in a name other than that of the Holder or an affiliate thereof. The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercise Price</u>. For purposes of this Warrant, **"Exercise Price"** means $[●] (which is equal to 120% of the price of the shares of Common Stock sold in the Offering), subject to adjustment as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Company's Failure to Timely Deliver Securities</u>. If the Company shall fail for any reason or for no reason to issue and deliver the Warrant Shares pursuant to <u>Section 1(a)</u> by the Share Delivery Date, then the Holder will have the right to rescind such exercise, or, if after the Share Delivery Date and prior to the receipt of such Warrant Shares, the Holder purchases, or another Person purchasers on the Holder's behalf or for the Holder's account (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of shares of Common Stock issuable upon such exercise that the Holder anticipated receiving from the Company, then the Company shall, within three (3) Business Days after the Holder's written request and in the Holder's discretion, either (i) pay cash to the Holder in an amount equal to the Holder's total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the **"Buy-In Price"**), at which point the Company's obligation to issue and deliver such Warrant Shares shall terminate, or (ii) promptly honor its obligation to issue and deliver to the Holder such Warrant Shares and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) the Weighted Average Price on the date of the event giving rise to the Company's obligation to deliver such Warrant Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Cashless Exercise</u>. The Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the "**Net Number**" of shares of Common Stock determined according to the following formula (a "**Cashless Exercise**"):

Net Number = <u>(A - B) (X)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (A)

For purposes of the foregoing formula:

A= the Weighted Average Price for the three (3) consecutive Trading Days ending on the date immediately preceding the Exercise Date.

B= the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

X= the total number of shares with respect to which this Warrant is then being exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Rule 144</u>. For purposes of Rule 144(d) promulgated under the Securities Act of 1933, as amended (the "**Act**"), as in effect on the date hereof, assuming the Holder is not an affiliate of the Company, it is intended that the Warrant Shares issued in a Cashless Exercise shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the Issuance Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Disputes</u>. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Beneficial Ownership</u>. The Company shall not effect the exercise of this Warrant, and the Holder shall not have the right to exercise this Warrant, to the extent that after giving effect to such exercise, such Person (together with such Person's affiliates) would beneficially own in excess of 4.99% (the "**Maximum Percentage**") of the Common Stock outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by such Person and its affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall exclude shares of Common Stock which would be issuable upon (i) exercise of the remaining, unexercised portion of this Warrant beneficially owned by such Person and its affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company beneficially owned by such Person and its affiliates (including, without limitation, any convertible notes or convertible preferred stock or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein. Except as set forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the "**Exchange Act**"). For purposes of this Warrant, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in the most recent of (1) the Company's most recent Form 10-K, Form 10-Q, Form 8-K or other public filing with the Securities and Exchange Commission, as the case may be, (2) a more recent public announcement by the Company or (3) any other notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. For any reason at any time, upon the written or oral request of the Holder, the Company shall within two (2) Business Days confirm to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder and its affiliates since the date as of which such number of outstanding shares of Common Stock was reported. By written notice to the Company, the Holder may from time to time increase or decrease the Maximum Percentage to any other percentage not in excess of 9.99% specified in such notice; provided that (i) any such increase will not be effective until the sixty-first (61st) day after such notice is delivered to the Company, and (ii) any such increase or decrease will apply only to the Holder. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this <u>Section 1(g)</u> to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended beneficial ownership limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Piggyback Registration Rights</u>. Unless all of the Warrant Shares issuable upon exercise of this Warrant (the "**Registrable Securities**") are included in an effective registration statement with a current prospectus pursuant to which all of the Registrable Securities would be tradable upon exercise of this Warrant, the Holder of this Warrant shall have the right for a period of not more than three (3) years from Exercisability Date, in accordance with the Financial Industry Regulatory Authority, Inc. ("**FINRA**") Rule 5110(g)(8), to include the remaining Registrable Securities as part of any other registration of securities filed by the Company (other than (i) a registration effected solely to implement an employee benefit plan or a transaction to which Rule 145 of the Act is applicable, or (ii) a registration statement on Form S-4, S-8 or any successor form thereto or another form not available for registering the Warrant Shares issuable upon exercise of this Warrant for sale to the public), whether for its own account or for the account of one or more shareholders of the Company (a "**Piggyback Registration**"), the Company shall give prompt written notice (in any event no later than thirty (30) days prior to the proposed filing of such registration statement) to the Holder of the Company's intention to effect such a registration, which notice shall describe the amount and type of securities to be included in such offering, the intended method(s) of distribution, and the name of the proposed managing underwriter(s), if any, of the proposed offering. Such notice to the Holder shall continue to be given for each registration statement to be filed by the Company until such time as all of the Registrable Securities have been sold. The Company shall include in such registration such number of the Registrable Securities that the Holder has (within thirty (30) days of the Holder's receipt of such notice) requested in writing to the Company (including such number) to be included within such registration. The Company will cause any managing underwriter(s) of a proposed underwritten offering to permit the Registrable Securities requested to be included in a Piggyback Registration on the same terms and conditions as any similar securities of the Company and to permit the sale or other disposition of such Registrable Securities in accordance with the intended method(s) of distribution thereof. The Company will pay all fees and expenses related to any Piggyback Registration, whether or not any such registration is consummated, provided, however, the Holder shall pay any underwriting commissions, if any, in connection with the sale of Registrable Securities pursuant to a Piggyback Registration in an underwritten offering and the expenses of any legal counsel selected by the Holder to represent them in connection with a Piggyback Registration. Except as otherwise provided in this Warrant, there shall be no limit on the number of times the Holder may request Piggyback Registration under this <u>Section 1(h)</u>. Notwithstanding anything to the contrary, such Piggyback Registration rights shall terminate on the third (3rd) anniversary of the Exercisability Date in accordance with FINRA Rule 5110(g)(8).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Demand Registrations. Requests for Registration</u>. Unless all of the Registrable Securities are included in an effective registration statement with a current prospectus pursuant to which all of the Registrable Securities would be tradable upon exercise of this Warrant, for a period of three (3) years from the Exercisability Date, in accordance with FINRA Rule 5110(g)(8), the Holder may request registration under the Act of all or any portion of its Registrable Securities in a shelf resale registration statement on Form S-1 or any similar long-form registration or on Form S-3 or any similar short-form registration, if available (any such requested registration, a "**Demand Registration**"). On such occasion, the Company shall file such registration statement covering such Registrable Securities within thirty (30) calendar days after receipt of the request for Demand Registration and have such registration statement declared effective as promptly as practicable thereafter. The Company shall cause any such registration statement to remain effective for a period of at least twelve (12) consecutive months after the date that the Holder of the Registrable Securities covered by such registration statement is first given the opportunity to sell all such securities. Any request for a Demand Registration must specify the approximate number or dollar value of Registrable Securities requested to be registered by the requesting Holder. The Holder will be entitled to request (i) one (1) Demand Registration in which the Company will pay all fees and expenses related to such registration, provided, however, the Holder shall pay the expenses of any legal counsel selected by the Holder to represent them in connection with a Demand Registration, and (ii) one (1) Demand Registration in which the Holder will pay all fees and expenses related to such registration, in each case, whether or not any such registration is consummated. The Company agrees to give written notice of its receipt of any Demand Registration to all other registered Holders of this Warrant and/or the Registrable Securities and to all other registered holders of the Representatives' Warrants and/or the registrable securities available under the Representatives' Warrants within ten (10) calendar days after the date of the receipt of any such notice. Notwithstanding anything to the contrary, such Demand Registration rights shall terminate on the third (3rd) anniversary of the Exercisability Date in accordance with FINRA Rule 5110(g)(8).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES</u>. The Exercise Price and the number of Warrant Shares shall be adjusted from time to time as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Voluntary Adjustment by Company</u>. Subject to the rules of the Principal Market, the Company may at any time during the term of this Warrant reduce the then current Exercise Price to any amount deemed appropriate by the Board of Directors of the Company (the "**Board of Directors**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Adjustment upon Subdivision or Combination of Common Stock</u>. If the Company at any time on or after the Issuance Date subdivides (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) one or more classes of its outstanding Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced and the number of Warrant Shares will be proportionately increased. If the Company at any time on or after the Issuance Date combines (by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) one or more classes of its outstanding Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately increased and the number of Warrant Shares will be proportionately decreased. Any adjustment made under this <u>Section 2(b)</u> shall become effective immediately at the close of business on the date the subdivision or combination becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Events</u>. If any event occurs of the type contemplated by the provisions of this <u>Section 2</u> but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features to the holders of the Company's equity securities, but excluding any grant of equity-based compensation to employees of the Company or members of the Board of Directors), then the Board of Directors will make an appropriate adjustment in the Exercise Price and the number of Warrant Shares so as to protect the rights of the Holder; provided that no such adjustment pursuant to this <u>Section 2(c)</u> will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this <u>Section 2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Pro Rata Distributions</u>. If the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Common Stock evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security other than the Common Stock, including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction (a "Distribution"), then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations or restrictions on exercise of this Warrant, including without limitation, the Maximum Percentage) immediately before the date on which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (<u>provided</u>, <u>however</u>, to the extent that the Holder's right to participate in any such Distribution would result in the Holder exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Distribution to such extent (and shall not be entitled to beneficial ownership of such shares of Common Stock as a result of such Distribution (and beneficial ownership) to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time or times, as its right thereto would not result in the Holder exceeding the Maximum Percentage, at which time or times the Holder shall be granted such Distribution (and any Distributions declared or made on such initial Distribution or on any subsequent Distribution held similarly in abeyance) to the same extent as if there had been no such limitation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Notice of Adjustments</u>. Upon the occurrence of each adjustment pursuant to this <u>Section 2</u>, the Company at its expense will promptly compute such adjustment in accordance with the terms of this Warrant and prepare a certificate, executed and certified as true by the chief financial officer and chief executive officer of the Company, setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. The Company will, within five (5) Business Days after such event requiring an adjustment pursuant to this <u>Section 2</u>, deliver a copy of each such certificate, executed and certified as true by the chief financial officer and chief executive officer of the Company, to the Holder and to the Transfer Agent. In addition, the Company shall, within five (5) Business Days after receipt by the Company of a written request by the Holder, send notice to the Holder of the Exercise Price then in effect and the number of Warrant Shares or the amount, if any, of other shares, securities or assets then issuable upon exercise of this Warrant, which shall be executed and certified as true by the chief financial officer and chief executive officer of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Purchase Rights</u>. In addition to any adjustments pursuant to <u>Section 2</u> above, if at any time the Company grants, issues or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of Common Stock (the "**Purchase Rights**"), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of the Common Stock are to be determined for the grant, issue or sale of such Purchase Rights; provided that this <u>Section 3(a)</u> shall not apply to any participation rights that the Holder acquires under <u>Section 2(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Fundamental Transactions</u>. The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes in writing (unless the Company is the Successor Entity) all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 3(b) pursuant to written agreements in form and substance reasonably satisfactory to the Required Holders and approved by the Required Holders prior to the completion of such Fundamental Transaction, including, but not limited to, agreements confirming the obligations of the Successor Entity as set forth in this Section 3(b) and elsewhere in this Warrant and an obligation to deliver to each holder of the Warrants in exchange for such Warrants a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant, including, without limitation, which is exercisable for a corresponding number of shares of capital stock of the Successor Entity equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such adjustments to the number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction). Notwithstanding the foregoing, at the election of the Holder upon exercise of this Warrant following a Fundamental Transaction, the Successor Entity shall deliver to the Holder, in lieu of the shares of Common Stock issuable upon the exercise of this Warrant prior to the applicable Fundamental Transaction, such shares of common stock (or its equivalent) of the Successor Entity (including its Parent Entity), or other securities, cash, assets or other property, which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>NONCIRCUMVENTION</u>. The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation, Memorandum of Association, Articles of Association, or other governing documents, or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith comply with all the provisions of this Warrant and take all actions consistent with effectuating the purposes of this Warrant. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all such actions as may be necessary or appropriate in order that the Company shall validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant, which shall not be subject to preemptive or similar rights and which shall be free and clear of all liens, taxes and charges, (iii) shall, so long as this Warrant is outstanding, take all action necessary to reserve and keep available out of its authorized and unissued Common Stock, solely for the purpose of effecting the exercise of this Warrant, 100% of the number of shares of Common Stock issuable upon exercise of this Warrant then outstanding (without regard to any limitations on exercise), and (iv) shall cause all shares of Common Stock issuable upon exercise of this Warrant to be listed on all securities exchanges on which the shares of Common Stock issued to the public in the Offering are then listed, so long as this Warrant is outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>WARRANT HOLDER NOT DEEMED A SHAREHOLDER</u>. Except as otherwise specifically provided herein, the Holder, solely in such Person's capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in such Person's capacity as the Holder of this Warrant, any of the rights of a shareholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise of this Warrant. Notwithstanding the foregoing, the Company shall deliver to the Holder a copy of each notice given to shareholders of the Company at the same time and in the same manner that such notice is given to its shareholders. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a shareholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>REISSUANCE OF WARRANTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transfer of Warrant</u>. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company and deliver the completed and executed Assignment Form, in the form attached hereto as <u>Exhibit B</u>, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with <u>Section 6(d)</u>), registered as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with <u>Section 6(d)</u>) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Lost, Stolen or Mutilated Warrant</u>. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant, the Company shall, at its expense, execute and deliver to the Holder a new Warrant (in accordance with <u>Section 6(d)</u>) representing the right to purchase the Warrant Shares then underlying this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Exchangeable for Multiple Warrants</u>. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with <u>Section 6(d)</u>) representing in the aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, that no Warrants for fractional shares of Common Stock shall be given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Issuance of New Warrants</u>. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to <u>Section 6(a)</u> or <u>Section 6(c)</u>, the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>NOTICES</u>. The Company shall provide Holder with prompt written notice of all actions taken pursuant to this Warrant. Notwithstanding anything to the contrary, the Company shall give written notice to Holder of any of the following events at least fifteen (15) calendar days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the shareholders entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding up or sale: (i) if the Company shall take a record of the holders of its shares for the purpose of entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company, (ii) the Company shall offer to all the holders of its shares any additional shares of capital equity of the Company or securities convertible into or exchangeable for shares of capital equity of the Company, or any option, right or warrant to subscribe therefor, or (iii) a dissolution, liquidation or winding up of the Company or a sale of all or substantially all of its property, assets and business shall be proposed. Such notice shall specify such record date or the date of the closing of the transfer books, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in writing, will be sent (a) by mail (i) if within the domestic United States by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, or (ii) if delivered from outside the United States, by International Federal Express or (b) by electronic mail. Such notice will be deemed given (i) if delivered by first-class registered or certified mail domestic, three (3) Business Days after so mailed, (ii) if delivered by nationally recognized overnight carrier, one (1) Business Day after so mailed, (iii) if delivered by International Federal Express, two (2) Business Days after so mailed and (iv) if delivered by electronic mail, on the day the notice was sent if during regular business hours and, if sent outside regular business hours, on the following Business Day. Notices will be delivered and addressed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) if to the Company, to:

FireFly Automatix, Inc.

1130 South 3800 West, Suite 100

Salt Lake City, Utah 84104

Attn: Lindsay C. Jones

Email: Lindsay.Jones@FireFlyAutomatix.com

with a copy to:

Dorsey & Whitney LLP

111 S. Main Street, Suite 2100

Salt Lake City, Utah 84111

Attn: David F. Marx

Email: Marx.David@dorsey.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to the Holder, at the address of the Holder appearing on the books of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>AMENDMENT AND WAIVER</u>. Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Required Holders. Any such amendment shall apply to all Warrants and be binding upon all registered holders of such Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL</u>. This Warrant shall be governed by, and construed in accordance with, the internal laws of the State of New York, without reference to the choice of law provisions thereof. The Company and, by accepting this Warrant, the Holder, each irrevocably submits to the exclusive jurisdiction of the courts of the State of New York located in New York County and the United States District Court for the Southern District of New York for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Warrant and the transactions contemplated hereby. Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Warrant. The Company and, by accepting this Warrant, the Holder, each irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court. The Company and, by accepting this Warrant, the Holder, each irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. **EACH OF THE COMPANY AND, BY ITS ACCEPTANCE HEREOF, THE HOLDER HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS WARRANT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>CONSTRUCTION; HEADINGS</u>. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against any person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>DISPUTE RESOLUTION</u>. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the Company shall submit the disputed determinations or arithmetic calculations via email within two (2) Business Days of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares within three (3) Business Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall, within two (2) Business Days submit via email (a) the disputed determination of the Exercise Price to an independent, reputable investment bank selected by the Company and approved by the Holder, which approval shall not be unreasonably withheld, or (b) the disputed arithmetic calculation of the Warrant Shares to the Company's independent, outside accountant. The Company shall cause the investment bank or the accountant, as the case may be, to perform the determinations or calculations and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives the disputed determinations or calculations. The prevailing party (which, for purposes of this Warrant, is the party whose determinations or calculations is closest to those of the investment bank or the accountant, as the case may be) in any dispute resolved pursuant to this <u>Section 11</u> shall be entitled to the full amount of all reasonable expenses, including all costs and fees paid or incurred in good faith, in relation to the resolution of such dispute. Such investment bank's or accountant's determination or calculation, as the case may be, shall be binding upon all parties absent demonstrable error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF</u>. The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for any failure by the Company to comply with the terms of this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>TRANSFER, LOCK-UP PERIOD</u>. Subject to applicable laws and the restrictions set forth in this paragraph, this Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company. The Holder agrees that, except as provided in FINRA Rule 5110(e)(2), pursuant to FINRA Rule 5110(e)(1), it will not, for the duration of the Lock-Up Period, (a) sell, transfer, assign, pledge, hypothecate or otherwise transfer this Warrant (including any Warrant Shares issued or issuable hereunder), or (b) cause this Warrant or any Warrant Shares issued or issuable hereunder to be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of this Warrant or any Warrant Shares issued or issuable hereunder. As used herein, the term "**Lock-Up Period**" means the period beginning on the commencement of the sales of the Offering (the "**Offering Date**") and ending on the one hundred eighty (180) day anniversary of the Offering Date. In addition, notwithstanding the other terms of this Warrant or any agreement between the Company and the Holder, the Holder agrees that, as required by FINRA Rule 5110(g)(8): (i) this Warrant may not be exercised more than five (5) years from the Offering Date; (ii) the Holder shall not have more than one demand registration right at the Company's expense; (iii) the Holder shall not have the right to demand registration of this Warrant or the Warrant Shares more than five (5) years from the Offering Date; (iv) the Holder shall not have the right to piggyback registration with respect to this Warrant or the Warrant Shares more than five (5) years from the Offering Date; (v) this Warrant may not have anti-dilution terms that allow the Holder and related persons to receive more shares or to exercise at a lower price than originally agreed upon at the time of the Offering, when the public shareholders have not been proportionally affected by a stock split, stock dividend, or other similar event; and (vi) this Warrant may not have anti-dilution terms that allow the Holder and related persons to receive or accrue cash dividends prior to the exercise or conversion of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>SEVERABILITY</u>. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, the validity and enforceability of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Warrant; provided, however, if no such agreement is reached then such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>CERTAIN DEFINITIONS</u>. For purposes of this Warrant, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **"Bloomberg"** means Bloomberg Financial Markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **"Business Day"** means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed; <u>provided</u>, <u>however</u>, for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to "stay at home", "shelter-in-place", "non-essential employee" or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York generally are open for use by customers on such day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **"Convertible Securities"** means any stock or securities (other than Options) directly or indirectly convertible into or exercisable or exchangeable for shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **"Eligible Market"** means the Principal Market, the New York Stock Exchange, the NYSE American (or the NYSE MKT), the Nasdaq Global Market or the Nasdaq Global Select Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **"Expiration Date"** means the third (3rd) anniversary of the Exercisability Date or, if such date falls on a day other than a Trading Day or on which trading does not take place on the Principal Market (a "**Holiday**"), provided that if the Principal Market is not the principal trading market for the shares of Common Stock, then on the principal securities exchange or securities market on which the shares of Common Stock is then traded, the next date that is not a Holiday.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **"Fundamental Transaction"** means that the Company shall, directly or indirectly, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person (but excluding a migratory merger effected solely for the purpose of changing the jurisdiction of incorporation of the Company), (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company to another Person, (iii) allow another Person to make a purchase, tender or exchange offer that is accepted by the holders of more than the 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), (iv) consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock purchase agreement or other business combination), (v) reorganize, recapitalize or reclassify its Common Stock, or (vi) any "person" or "group" (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **"Options"** means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **"Common Stock"** means (i) the Company's Common Stock, par value $0.001 per share, and (ii) any share capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **"Parent Entity"** of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock, common shares, ordinary shares or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **"Person"** means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **"Principal Market"** means the Nasdaq Capital Market or, if the Common Stock is not trading on the Nasdaq Capital Market, then the principal securities exchange or securities market, including an over-the-counter market (in terms of volume), on which the Common Stock is then traded in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **"Representatives' Warrants"** means this Warrant and any other warrants issued pursuant to the Underwriting Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **"Required Holders"** means, as of any date, the holders of a majority of the underlying shares of Common Stock issued or issuable upon the exercise of the Representatives' Warrants (for the avoidance of doubt, "**Required Holders**" shall not include the holders of any other warrants that the Company may issue apart from the Offering).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) **"Successor Entity"** means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered into.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) **"Trading Day"** means any day on which the shares of Common Stock are traded on the Principal Market, or, if the Principal Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock are then traded; *provided* that "Trading Day" shall not include any day on which the shares of Common Stock are scheduled to trade on such exchange or market for less than 4.5 hours or any day that the shares of Common Stock are suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) **"Weighted Average Price"** means, for any security as of any date, the dollar volume-weighted average price for such security on the Principal Market during the period beginning at 9:30:01 a.m., New York time (or such other time as the Principal Market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other time as the Principal Market publicly announces is the official close of trading), as reported by Bloomberg through its "Volume at Price" function or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York time (or such other time as the Principal Market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other time as the Principal Market publicly announces is the official close of trading), as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported in the "pink sheets" by OTC Markets LLC. If the Weighted Average Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved pursuant to <u>Section 11</u> with the term "Weighted Average Price" being substituted for the term "Exercise Price." All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period.

**[Signature Page Follows]**

**IN WITNESS WHEREOF,** the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

---

| | |
|:---|:---|
| **FIREFLY AUTOMATIX, INC.** | **FIREFLY AUTOMATIX, INC.** |
| By: |  |
| Name: | Andrew Limpert |
| Title: | Chief Executive Officer |

---

 **Exhibit A**

**EXERCISE NOTICE**

**TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS**

**WARRANT TO PURCHASE COMMON STOCK**

**FIREFLY AUTOMATIX, INC.**

The undersigned holder hereby exercises the right to purchase _________________ Warrant Shares of the Company. Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant. Please issue the Warrant Shares as to which the Warrant is exercised in accordance with the instructions given below and, if applicable, a new Warrant representing the number of Warrant Shares for which the Warrant has not been exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Form of Exercise Price</u>. The Holder intends that payment of the Exercise Price shall be made as:

---

| | |
|:---|:---|
| ____________ | a **"**<u>Cash Exercise</u>**"** with respect to _________________ Warrant Shares; and/or |
| ____________ | a **"**<u>Cashless Exercise</u>**"** with respect to _______________ Warrant Shares. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment of Exercise Price</u>. In the event that the holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company in accordance with the terms of the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Delivery of Warrant Shares</u>. The Company shall deliver to the undersigned holder or such other name as may be specified below __________ Warrant Shares in accordance with the terms of the Warrant and, after delivery of such Warrant Shares, _____________ Warrant Shares remain subject to the Warrant. Please issue said Warrant Shares in the name of the undersigned holder or in such other name as may be specified below:

Name: _______________________________

Address: _______________________________

DWAC Account Number: _______________________________

Date: _______________ __, ______

---

| |
|:---|
| Name of Registered Holder |
| By: |
| Name: |
| Title: |

---

 **Exhibit B**

**ASSIGNMENT FORM**

**FIREFLY AUTOMATIX, INC.**

 

*(To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to exercise the Warrant.)*

FOR VALUE RECEIVED, the foregoing Warrant, as to the right to purchase the number of Warrant Shares set forth below, and all such rights evidenced thereby are hereby assigned to:

---

| |
|:---|
| Name: |
| Address: |
| <br> Number of Warrant Shares: |
| <br> Dated: _______________ __, ______ |
| Holder's Signature: |
| Holder's Address: |

---

NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.

## Exhibit 5.1

**Exhibit 5.1**

![](ex5-1_001.jpg)

October 23, 2025

FireFly Automatix, Inc.

1130 South 3800 West, Suite 100

Salt Lake City, Utah 84104

Re: <u>Registration Statement on Form S-1 (File No. 333- 290743)</u>

Ladies and Gentlemen:

We have acted as counsel to FireFly Automatix, Inc., a Delaware corporation (the "***Company***"), in connection with a Registration Statement on Form S-1 (File No. 333-290743<u>)</u> (as amended or supplemented, the "***Registration Statement***") filed by the Company with the Securities and Exchange Commission (the "***Commission***") under the Securities Act of 1933, as amended (the "***Securities Act***"), relating to the registration by the Company of up to $28,750,000 worth of shares (the "***Shares***") of the Company's Common Stock, par value $0.001 per share (the "***Common Stock***"), which includes up to $3,750,000 worth of shares of Common Stock issuable upon exercise of the underwriters' option to purchase additional Shares from the Company. The Registration Statement also relates to the issuance by the Company of warrants (the "***Underwriters' Warrants***") issuable to the underwriters to purchase up to $1,006,250 worth of shares of Common Stock (the "***Underwriters' Warrant Shares***"), which includes warrants to purchase up to $131,250 worth of shares of Common Stock issuable upon exercise of the underwriters' option to purchase additional Shares from the Company.

In our capacity as such counsel, we are familiar with the proceedings taken and proposed to be taken by the Company in connection with the authorization, issuance and sale of the securities as contemplated by the transaction documents and as described in the Registration Statement. For purposes of this opinion letter, and except to the extent set forth in the opinions below, we have assumed that all such proceedings have been or will be timely completed in the manner presently proposed in the transaction documents and the Registration Statement.

We have examined such documents and have reviewed such questions of law as we have considered necessary or appropriate for the purposes of our opinions set forth below. In rendering our opinions set forth below, we have assumed the authenticity of all documents submitted to us as originals, the genuineness of all signatures and the conformity to authentic originals of all documents submitted to us as copies. We have also assumed the legal capacity for all purposes relevant hereto of all natural persons. As to questions of fact material to our opinions, we have relied upon certificates or comparable documents of officers and other representatives of the Company and of public officials.

Based on the foregoing, we are of the opinion that:

1. The
 Shares, when issued, delivered and paid for as described in the Registration Statement, will be validly issued, fully paid and non-assessable.

2. The
 Underwriters' Warrants, when duly executed by the Company and duly delivered to the Underwriters as described in the Registration
 Statement, will constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their
 terms.

3. The
 Underwriters' Warrant Shares have been duly authorized and if, as, and when the Underwriters' Warrant Shares are issued
 and delivered by the Company upon exercise of the Underwriters' Warrants in accordance with the terms thereof, including, without
 limitation, the payment in full of applicable consideration, the Underwriters' Warrant Shares will be validly issued, fully
 paid and non-assessable.

(a) Our
 opinions set forth in paragraph 2 above are subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium
 or similar law relating to or affecting creditors' rights generally (including, without limitation, fraudulent conveyance laws).

(b) Our
 opinions set forth in paragraph 2 above are subject to the effect of general principles of equity, including, without limitation,
 concepts of materiality, reasonableness, good faith and fair dealing and the possible unavailability of specific performance or injunctive
 relief, regardless of whether considered in a proceeding in equity or at law.

(c) Our
 opinions set forth in paragraph 2 above are subject to limitations regarding the availability of indemnification and contribution
 where such indemnification or contribution may be limited by applicable law or the application of principles of public policy.

(d) We
 express no opinion as to the enforceability of (i) provisions that relate to choice of law, forum selection or submission to jurisdiction
 (including, without limitation, any express or implied waiver of any objection to venue in any court or of any objection that a court
 is an inconvenient forum) to the extent that the validity, binding effect or enforceability of any such provision is to be determined
 by any court other than a state court of the State of New York, (ii) waivers by the Company of any statutory or constitutional rights
 or remedies, (iii) terms which excuse any person or entity from liability for, or require the Company to indemnify such person or
 entity against, such person's or entity's negligence or willful misconduct or (iv) obligations to pay any prepayment
 premium, default interest rate, early termination fee or other form of liquidated damages, if the payment of such premium, interest
 rate, fee or damages may be construed as unreasonable in relation to actual damages or disproportionate to actual damages suffered
 as a result of such prepayment, default or termination.

(e) We
 draw your attention to the fact that, under certain circumstances, the enforceability of terms to the effect that provisions may
 not be waived or modified except in writing may be limited.

Our opinions expressed above are limited to the laws of the State of New York and the Delaware General Corporation Law.

We hereby consent to the filing of this opinion as an exhibit to the Registration Statement, and to the reference to our firm under the heading "Legal Matters" in the prospectus constituting part of the Registration Statement. In giving this consent, we do not admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission thereunder.

---

| |
|:---|
| Very truly yours, |
| */s/ Dorsey & Whitney LLP* |

---

## Exhibit 10.1

**Exhibit 10.1**

**INDEMNIFICATION AGREEMENT**

This Indemnification Agreement ("**Agreement**"), dated as of [DATE], is by and between FireFly Automatix, Inc., a Delaware corporation (the "**Company**") and [NAME OF DIRECTOR/OFFICER] (the "**Indemnitee**").

WHEREAS, Indemnitee is a director and/or an officer of the Company;

WHEREAS, both the Company and Indemnitee recognize the increased risk of litigation and other claims being asserted against directors and officers of public companies;

WHEREAS, the board of directors of the Company (the "**Board**") has determined that enhancing the ability of the Company to retain and attract as directors and officers the most capable persons is in the best interests of the Company and that the Company therefore should seek to assure such persons that indemnification and insurance coverage is available; and

WHEREAS, in recognition of the need to provide Indemnitee with substantial protection against personal liability, in order to procure Indemnitee's continued service as a director and/or officer of the Company and to enhance Indemnitee's ability to serve the Company in an effective manner, and in order to provide such protection pursuant to express contract rights (intended to be enforceable irrespective of, among other things, any amendment to the Company's certificate of incorporation or bylaws (collectively, the "**Constituent Documents**"), any change in the composition of the Board or any change in control or business combination transaction relating to the Company), the Company wishes to provide in this Agreement for the indemnification of, and the advancement of Expenses (as defined in Section 1(f) below) to, Indemnitee as set forth in this Agreement and for the continued coverage of Indemnitee under the Company's directors' and officers' liability insurance policies.

NOW, THEREFORE, in consideration of the foregoing and the Indemnitee's agreement to continue to provide services to the Company, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>. For purposes of this Agreement, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Beneficial Owner**" has the meaning given to the term "beneficial owner" in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the "**Exchange Act**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Change in Control**" means the occurrence after the date of this Agreement of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 50% or more of the Company's then outstanding Voting Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the consummation of a reorganization, merger or consolidation, unless immediately following such reorganization, merger or consolidation, all of the Beneficial Owners of the Voting Securities of the Company immediately prior to such transaction beneficially own, directly or indirectly, more than 50% of the combined voting power of the outstanding Voting Securities of the entity resulting from such transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) during any period of two consecutive years, not including any period prior to the execution of this Agreement, individuals who at the beginning of such period constituted the Board (including for this purpose any new directors whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved) cease for any reason to constitute at least a majority of the Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Claim**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any threatened, pending or completed action, suit, proceeding or alternative dispute resolution mechanism, whether civil, criminal, administrative, arbitrative, investigative or other, and whether made pursuant to federal, state or other law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any inquiry, hearing or investigation that the Indemnitee determines might lead to the institution of any such action, suit, proceeding or alternative dispute resolution mechanism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Delaware Court**" shall have the meaning ascribed to it in Section 9(e) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Disinterested Director**" means a director of the Company who is not and was not a party to the Claim in respect of which indemnification is sought by Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Expenses**" means any and all expenses, including attorneys' and experts' fees, court costs, transcript costs, travel expenses, duplicating, printing and binding costs, telephone charges, and all other costs and expenses incurred in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness or participate in, any Claim. Expenses also shall include (i) Expenses incurred in connection with any appeal resulting from any Claim, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, and (ii) for purposes of Section 5 only, Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee's rights under this Agreement, by litigation or otherwise. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Expense Advance**" means any payment of Expenses advanced to Indemnitee by the Company pursuant to Section 4 or Section 5 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Indemnifiable Event**" means any event or occurrence, whether occurring before, on or after the date of this Agreement, related to the fact that Indemnitee is or was a director, officer, employee or agent of the Company or any subsidiary of the Company, or is or was serving at the request of the Company as a director, officer, employee, member, manager, trustee or agent of any other corporation, limited liability company, partnership, joint venture, trust or other entity or enterprise (collectively with the Company, "**Enterprise**") or by reason of an action or inaction by Indemnitee in any such capacity (whether or not serving in such capacity at the time any Loss is incurred for which indemnification can be provided under this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Independent Counsel**" means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently performs, nor in the past five years has performed, services for either: (i) the Company or Indemnitee (other than in connection with matters concerning Indemnitee under this Agreement or of other indemnitees under similar agreements) or (ii) any other party to the Claim giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Losses**" means any and all Expenses, damages, losses, liabilities, judgments, fines, penalties (whether civil, criminal or other), ERISA excise taxes, amounts paid or payable in settlement, including any interest, assessments, and all other charges paid or payable in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness or participate in, any Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Person**" means any individual, corporation, firm, partnership, joint venture, limited liability company, estate, trust, business association, organization, governmental entity or other entity and includes the meaning set forth in Sections 13(d) and 14(d) of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Standard of Conduct Determination**" shall have the meaning ascribed to it in Section 9(b) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Voting Securities**" means any securities of the Company that vote generally in the election of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Services to the Company</u>. Indemnitee agrees to continue to serve as a director or officer of the Company for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders his or her resignation or is no longer serving in such capacity. This Agreement shall not be deemed an employment agreement between the Company (or any of its subsidiaries or Enterprise) and Indemnitee. Indemnitee specifically acknowledges that his or her employment with or service to the Company or any of its subsidiaries or Enterprise is at will and the Indemnitee may be discharged at any time for any reason, with or without cause, except as may be otherwise provided in any written employment agreement between Indemnitee and the Company (or any of its subsidiaries or Enterprise), other applicable formal severance policies duly adopted by the Board or, with respect to service as a director or officer of the Company, by the Company's Constituent Documents or Delaware law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Indemnification</u>. Subject to Section 9 and Section 10 of this Agreement, the Company shall indemnify Indemnitee, to the fullest extent permitted by the laws of the State of Delaware in effect on the date hereof, or as such laws may from time to time hereafter be amended to increase the scope of such permitted indemnification, against any and all Losses if Indemnitee was or is or becomes a party to or participant in, or is threatened to be made a party to or participant in, any Claim by reason of or arising in part out of an Indemnifiable Event, including, without limitation, Claims brought by or in the right of the Company, Claims brought by third parties, and Claims in which the Indemnitee is solely a witness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Advancement of Expenses</u>. Indemnitee shall have the right to advancement by the Company, prior to the final disposition of any Claim by final adjudication to which there are no further rights of appeal, of any and all Expenses actually and reasonably paid or incurred by Indemnitee in connection with any Claim arising out of an Indemnifiable Event. Indemnitee's right to such advancement is not subject to the satisfaction of any standard of conduct. Without limiting the generality or effect of the foregoing, within 30 days after any request by Indemnitee, the Company shall, in accordance with such request, (a) pay such Expenses on behalf of Indemnitee, (b) advance to Indemnitee funds in an amount sufficient to pay such Expenses, or (c) reimburse Indemnitee for such Expenses. In connection with any request for Expense Advances, Indemnitee shall not be required to provide any documentation or information to the extent that the provision thereof would undermine or otherwise jeopardize attorney-client privilege. Execution and delivery to the Company of this Agreement by Indemnitee constitutes an undertaking by the Indemnitee to repay any amounts paid, advanced or reimbursed by the Company pursuant to this Section 4 in respect of Expenses relating to, arising out of or resulting from any Claim in respect of which it shall be determined, pursuant to Section 9, following the final disposition of such Claim, that Indemnitee is not entitled to indemnification hereunder. No other form of undertaking shall be required other than the execution of this Agreement. Indemnitee's obligation to reimburse the Company for Expense Advances shall be unsecured and no interest shall be charged thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Indemnification for Expenses in Enforcing Rights</u>. To the fullest extent allowable under applicable law, the Company shall also indemnify against, and, if requested by Indemnitee, shall advance to Indemnitee subject to and in accordance with Section 4, any Expenses actually and reasonably paid or incurred by Indemnitee in connection with any action or proceeding by Indemnitee for (a) indemnification or reimbursement or advance payment of Expenses by the Company under any provision of this Agreement, or under any other agreement or provision of the Constituent Documents now or hereafter in effect relating to Claims relating to Indemnifiable Events, and/or (b) recovery under any directors' and officers' liability insurance policies maintained by the Company. Indemnitee shall be required to reimburse the Company in the event that a final judicial determination is made that such action brought by Indemnitee was frivolous or not made in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Partial Indemnity</u>. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for a portion of any Losses in respect of a Claim related to an Indemnifiable Event but not for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Notification and Defense of Claims</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notification of Claims</u>. Indemnitee shall notify the Company in writing as soon as practicable of any Claim which could relate to an Indemnifiable Event or for which Indemnitee could seek Expense Advances, including a brief description (based upon information then available to Indemnitee) of the nature of, and the facts underlying, such Claim. The failure by Indemnitee to timely notify the Company hereunder shall not relieve the Company from any liability hereunder unless the Company's ability to participate in the defense of such claim was materially and adversely affected by such failure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Defense of Claims</u>. The Company shall be entitled to participate in the defense of any Claim relating to an Indemnifiable Event at its own expense and, except as otherwise provided below, to the extent the Company so wishes, it may assume the defense thereof with counsel reasonably satisfactory to Indemnitee. After notice from the Company to Indemnitee of its election to assume the defense of any such Claim, the Company shall not be liable to Indemnitee under this Agreement or otherwise for any Expenses subsequently directly incurred by Indemnitee in connection with Indemnitee's defense of such Claim other than reasonable costs of investigation or as otherwise provided below. Indemnitee shall have the right to employ its own legal counsel in such Claim, but all Expenses related to such counsel incurred after notice from the Company of its assumption of the defense shall be at Indemnitee's own expense; provided, however, that if (i) Indemnitee's employment of its own legal counsel has been authorized by the Company, (ii) Indemnitee has reasonably determined that there may be a conflict of interest between Indemnitee and the Company in the defense of such Claim, (iii) after a Change in Control, Indemnitee's employment of its own counsel has been approved by the Independent Counsel or (iv) the Company shall not in fact have employed counsel to assume the defense of such Claim, then Indemnitee shall be entitled to retain its own separate counsel (but not more than one law firm plus, if applicable, local counsel in respect of any such Claim) and all Expenses related to such separate counsel shall be borne by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Procedure upon Application for Indemnification</u>. In order to obtain indemnification pursuant to this Agreement, Indemnitee shall submit to the Company a written request therefor, including in such request such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of the Claim, provided that documentation and information need not be so provided to the extent that the provision thereof would undermine or otherwise jeopardize attorney-client privilege. Indemnification shall be made insofar as the Company determines Indemnitee is entitled to indemnification in accordance with Section 9 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Determination of Right to Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Mandatory Indemnification; Indemnification as a Witness.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the extent that Indemnitee shall have been successful on the merits or otherwise in defense of any Claim relating to an Indemnifiable Event or any portion thereof or in defense of any issue or matter therein, including without limitation dismissal without prejudice, Indemnitee shall be indemnified against all Losses relating to such Claim in accordance with Section 3 to the fullest extent allowable by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the extent that Indemnitee's involvement in a Claim relating to an Indemnifiable Event is to prepare to serve and serve as a witness, and not as a party, the Indemnitee shall be indemnified against all Losses incurred in connection therewith to the fullest extent allowable by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Standard of Conduct</u>. To the extent that the provisions of Section 9(a) are inapplicable to a Claim related to an Indemnifiable Event that shall have been finally disposed of, any determination of whether Indemnitee has satisfied any applicable standard of conduct under Delaware law that is a legally required condition to indemnification of Indemnitee hereunder against Losses relating to such Claim and any determination that Expense Advances must be repaid to the Company (a "**Standard of Conduct Determination**") shall be made as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if no Change in Control has occurred, (A) by a majority vote of the Disinterested Directors, even if less than a quorum of the Board, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum or (C) if there are no such Disinterested Directors, by Independent Counsel in a written opinion addressed to the Board, a copy of which shall be delivered to Indemnitee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if a Change in Control shall have occurred, (A) if the Indemnitee so requests in writing, by a majority vote of the Disinterested Directors, even if less than a quorum of the Board or (B) otherwise, by Independent Counsel in a written opinion addressed to the Board, a copy of which shall be delivered to Indemnitee.

The Company shall indemnify and hold harmless Indemnitee against and, if requested by Indemnitee, shall reimburse Indemnitee for, or advance to Indemnitee, within 30 days of such request, any and all Expenses incurred by Indemnitee in cooperating with the person or persons making such Standard of Conduct Determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Making the Standard of Conduct Determination</u>. The Company shall use its reasonable best efforts to cause any Standard of Conduct Determination required under Section 9(b) to be made as promptly as practicable. If the person or persons designated to make the Standard of Conduct Determination under Section 9(b) shall not have made a determination within 30 days after the later of (A) receipt by the Company of a written request from Indemnitee for indemnification pursuant to Section 8 (the date of such receipt being the "**Notification Date**") and (B) the selection of an Independent Counsel, if such determination is to be made by Independent Counsel, then Indemnitee shall be deemed to have satisfied the applicable standard of conduct; provided that such 30-day period may be extended for a reasonable time, not to exceed an additional 30 days, if the person or persons making such determination in good faith requires such additional time to obtain or evaluate information relating thereto. Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement of Indemnitee to indemnification under this Agreement shall be required to be made prior to the final disposition of any Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Payment of Indemnification</u>. If, in regard to any Losses:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Indemnitee shall be entitled to indemnification pursuant to Section 9(a);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no Standard of Conduct Determination is legally required as a condition to indemnification of Indemnitee hereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Indemnitee has been determined or deemed pursuant to Section 9(b) or Section 9(c) to have satisfied the Standard of Conduct Determination,

then the Company shall pay to Indemnitee, within five days after the later of (A) the Notification Date or (B) the earliest date on which the applicable criterion specified in clause (i), (ii) or (iii) is satisfied, an amount equal to such Losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Selection of Independent Counsel for Standard of Conduct Determination</u>. If a Standard of Conduct Determination is to be made by Independent Counsel pursuant to Section 9(b)(i), the Independent Counsel shall be selected by the Board of Directors, and the Company shall give written notice to Indemnitee advising him or her of the identity of the Independent Counsel so selected. If a Standard of Conduct Determination is to be made by Independent Counsel pursuant to Section 9(b)(ii), the Independent Counsel shall be selected by Indemnitee, and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. In either case, Indemnitee or the Company, as applicable, may, within five days after receiving written notice of selection from the other, deliver to the other a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not satisfy the criteria set forth in the definition of "Independent Counsel" in Section 1(i), and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person or firm so selected shall act as Independent Counsel. If such written objection is properly and timely made and substantiated, (i) the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit; and (ii) the non-objecting party may, at its option, select an alternative Independent Counsel and give written notice to the other party advising such other party of the identity of the alternative Independent Counsel so selected, in which case the provisions of the two immediately preceding sentences, the introductory clause of this sentence and numbered clause (i) of this sentence shall apply to such subsequent selection and notice. If applicable, the provisions of clause (ii) of the immediately preceding sentence shall apply to successive alternative selections. If no Independent Counsel that is permitted under the foregoing provisions of this Section 9(e) to make the Standard of Conduct Determination shall have been selected within 20 days after the Company gives its initial notice pursuant to the first sentence of this Section 9(e) or Indemnitee gives its initial notice pursuant to the second sentence of this Section 9(e), as the case may be, either the Company or Indemnitee may petition the Court of Chancery of the State of Delaware ("**Delaware Court**") to resolve any objection which shall have been made by the Company or Indemnitee to the other's selection of Independent Counsel and/or to appoint as Independent Counsel a person to be selected by the Court or such other person as the Court shall designate, and the person or firm with respect to whom all objections are so resolved or the person or firm so appointed will act as Independent Counsel. In all events, the Company shall pay all of the reasonable fees and expenses of the Independent Counsel incurred in connection with the Independent Counsel's determination pursuant to Section 9(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Presumptions and Defenses.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Indemnitee's Entitlement to Indemnification</u>. In making any Standard of Conduct Determination, the person or persons making such determination shall presume that Indemnitee has satisfied the applicable standard of conduct and is entitled to indemnification, and the Company shall have the burden of proof to overcome that presumption and establish that Indemnitee is not so entitled. Any Standard of Conduct Determination that is adverse to Indemnitee may be challenged by the Indemnitee in the Delaware Court. No determination by the Company (including by its directors or any Independent Counsel) that Indemnitee has not satisfied any applicable standard of conduct may be used as a defense to any legal proceedings brought by Indemnitee to secure indemnification or reimbursement or advance payment of Expenses by the Company hereunder or create a presumption that Indemnitee has not met any applicable standard of conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Reliance as a Safe Harbor</u>. For purposes of this Agreement, and without creating any presumption as to a lack of good faith if the following circumstances do not exist, Indemnitee shall be deemed to have acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company if Indemnitee's actions or omissions to act are taken in good faith reliance upon the records of the Company, including its financial statements, or upon information, opinions, reports or statements furnished to Indemnitee by the officers or employees of the Company or any of its subsidiaries in the course of their duties, or by committees of the Board or by any other Person (including legal counsel, accountants and financial advisors) as to matters Indemnitee reasonably believes are within such other Person's professional or expert competence and who has been selected with reasonable care by or on behalf of the Company. In addition, the knowledge and/or actions, or failures to act, of any director, officer, agent or employee of the Company shall not be imputed to Indemnitee for purposes of determining the right to indemnity hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>No Other Presumptions</u>. For purposes of this Agreement, the termination of any Claim by judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere or its equivalent, will not create a presumption that Indemnitee did not meet any applicable standard of conduct or have any particular belief, or that indemnification hereunder is otherwise not permitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Defense to Indemnification and Burden of Proof</u>. It shall be a defense to any action brought by Indemnitee against the Company to enforce this Agreement (other than an action brought to enforce a claim for Losses incurred in defending against a Claim related to an Indemnifiable Event in advance of its final disposition) that it is not permissible under applicable law for the Company to indemnify Indemnitee for the amount claimed. In connection with any such action or any related Standard of Conduct Determination, the burden of proving such a defense or that the Indemnitee did not satisfy the applicable standard of conduct shall be on the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Exclusions from Indemnification</u>. Notwithstanding anything in this Agreement to the contrary, the Company shall not be obligated to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) indemnify or advance funds to Indemnitee for Expenses or Losses with respect to proceedings initiated by Indemnitee, including any proceedings against the Company or its directors, officers, employees or other indemnitees and not by way of defense, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) proceedings referenced in Section 5 above (unless a court of competent jurisdiction determines that each of the material assertions made by Indemnitee in such proceeding was not made in good faith or was frivolous); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) where the Company has joined in or the Board has consented to the initiation of such proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) indemnify Indemnitee if a final decision by a court of competent jurisdiction determines that such indemnification is prohibited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) indemnify Indemnitee for the disgorgement of profits arising from the purchase or sale by Indemnitee of securities of the Company in violation of Section 16(b) of the Exchange Act, or any similar successor statute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) indemnify or advance funds to Indemnitee for Indemnitee's reimbursement to the Company of any bonus or other incentive-based or equity-based compensation previously received by Indemnitee, or payment of any profits realized by Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements under Section 304 of the Sarbanes-Oxley Act of 2002 in connection with an accounting restatement of the Company or under any clawback policy adopted by the Company, including the Company's clawback policy to comply with Rule 10D-1 under the Exchange Act and applicable stock exchange listing requirements, or the payment to the Company of profits arising from the purchase or sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Settlement of Claims</u>. The Company shall not be liable to Indemnitee under this Agreement for any amounts paid in settlement of any threatened or pending Claim related to an Indemnifiable Event effected without the Company's prior written consent, which shall not be unreasonably withheld; provided, however, that if a Change in Control has occurred, the Company shall be liable for indemnification of the Indemnitee for amounts paid in settlement if an Independent Counsel has approved the settlement. The Company shall not settle any Claim related to an Indemnifiable Event in any manner that would impose any Losses on the Indemnitee without the Indemnitee's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Duration</u>. All agreements and obligations of the Company contained herein shall continue during the period that Indemnitee is a director or officer of the Company (or is serving at the request of the Company as a director, officer, employee, member, trustee or agent of another Enterprise) and shall continue thereafter (i) so long as Indemnitee may be subject to any possible Claim relating to an Indemnifiable Event (including any rights of appeal thereto) and (ii) throughout the pendency of any proceeding (including any rights of appeal thereto) commenced by Indemnitee to enforce or interpret his or her rights under this Agreement, even if, in either case, he or she may have ceased to serve in such capacity at the time of any such Claim or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Non-Exclusivity</u>. The rights of Indemnitee hereunder will be in addition to any other rights Indemnitee may have under the Constituent Documents, the General Corporation Law of the State of Delaware, any other contract or otherwise (collectively, "**Other Indemnity Provisions**"); provided, however, that (a) to the extent that Indemnitee otherwise would have any greater right to indemnification under any Other Indemnity Provision, Indemnitee will be deemed to have such greater right hereunder and (b) to the extent that any change is made to any Other Indemnity Provision which permits any greater right to indemnification than that provided under this Agreement as of the date hereof, Indemnitee will be deemed to have such greater right hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Liability Insurance</u>. For the duration of Indemnitee's service as a director and/or officer of the Company, and thereafter for so long as Indemnitee shall be subject to any pending Claim relating to an Indemnifiable Event, the Company shall use commercially reasonable efforts (taking into account the scope and amount of coverage available relative to the cost thereof) to continue to maintain in effect policies of directors' and officers' liability insurance providing coverage that is at least substantially comparable in scope and amount to that provided by the Company's current policies of directors' and officers' liability insurance. In all policies of directors' and officers' liability insurance maintained by the Company, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are provided to the most favorably insured of the Company's directors, if Indemnitee is a director, or of the Company's officers, if Indemnitee is an officer (and not a director) by such policy. Upon request, the Company will provide to Indemnitee copies of all directors' and officers' liability insurance applications, binders, policies, declarations, endorsements and other related materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>No Duplication of Payments</u>. The Company shall not be liable under this Agreement to make any payment to Indemnitee in respect of any Losses to the extent Indemnitee has otherwise received payment under any insurance policy, the Constituent Documents, Other Indemnity Provisions or otherwise of the amounts otherwise indemnifiable by the Company hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Subrogation</u>. In the event of payment to Indemnitee under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee. Indemnitee shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Amendments</u>. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be binding unless in the form of a writing signed by the party against whom enforcement of the waiver is sought, and no such waiver shall operate as a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver. Except as specifically provided herein, no failure to exercise or any delay in exercising any right or remedy hereunder shall constitute a waiver thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Binding Effect</u>. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the Company), assigns, spouses, heirs and personal and legal representatives. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part of the business and/or assets of the Company, by written agreement in form and substances satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Severability</u>. The provisions of this Agreement shall be severable in the event that any of the provisions hereof (including any portion thereof) are held by a court of competent jurisdiction to be invalid, illegal, void or otherwise unenforceable, and the remaining provisions shall remain enforceable to the fullest extent permitted by law. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Notices</u>. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered by hand, against receipt, or mailed, by postage prepaid, certified or registered mail:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to Indemnitee, to the address set forth on the signature page hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Company, to: FireFly Automatix, Inc.

Attn: Chief Financial Officer

1130 South 3800 West, Suite 100

Salt Lake City, UT 84104

Notice of change of address shall be effective only when given in accordance with this Section. All notices complying with this Section shall be deemed to have been received on the date of hand delivery or on the third business day after mailing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Governing Law and Forum</u>. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware applicable to contracts made and to be performed in such state without giving effect to its principles of conflicts of laws. The Company and Indemnitee hereby irrevocably and unconditionally: (a) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Delaware Court and not in any other state or federal court in the United States, (b) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement and (c) waive, and agree not to plead or make, any claim that the Delaware Court lacks venue or that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Headings</u>. The headings of the sections and paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction or interpretation thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Counterparts</u>. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original, but all of which together shall constitute one and the same Agreement.

[signature page follows]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

---

| |
|:---|
| FIREFLY AUTOMATIX, INC. |
| <br> By:<br>|
| Name: |
| Title: |

---

---

| |
|:---|
| INDEMNITEE |
| <br>Name:<br>|
| Address: |

---

## Exhibit 10.5

**Exhibit 10.5**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS OF THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**LEASE AGREEMENT**

**BETWEEN**

**CLPF – CROSSROADS 1, L.P., a Delaware limited partnership**

**AS LANDLORD**

**AND**

**FIREFLY AUTOMATIX, INC., a Delaware corporation**

**AS TENANT**

**Crossroads Corporate Center – Building l**

**Salt Lake City, Utah**

**<u>LEASE AGREEMENT</u>**

**(Utah Net Lease)**

THIS LEASE AGREEMENT ("**<u>Lease</u>**") is dated as of October 1, 2018 (the "**<u>Effective Date</u>**"), between CLPF – CROSSROADS 1, LP., a Delaware limited partnership ("**<u>Landlord</u>**") and FIREFLY AUTOMATIX, INC., a Delaware corporation ("**<u>Tenant</u>**").

**<u>BASIC LEASE PROVISIONS</u>**

---

| | |
|:---|:---|
| Premises: | That portion of the Building (as defined below) commonly known as Suite 100 containing approximately 77,500 rentable square feet, as determined by Landlord, as shown on <u>Exhibit A</u> attached hereto (the "**<u>Premises</u>**"). |
| Project: | Crossroads Corporate Center (the "**<u>Project</u>**"). |
| Building: | Building 1 of the Project located at 1130 South 3800 West, Salt Lake City, Utah (the "**<u>Building</u>**"). |
| Tenant's Proportionate Share of Building: | 40.3226% (based on 77,500 rentable square feet of the Premises divided by 192,200 rentable square feet of the Building). |
| Lease Term: | Beginning on the Commencement Date (as defined below) and ending on the last day of the sixty-second (62<sup>nd</sup>) full calendar month thereafter. |
| Commencement Date: | The date of delivery of the Premises to Tenant (the "**<u>Commencement Date</u>**"), which is anticipated to occur on October 1, 2018. |
| Option to Extend: | See Paragraph 43 below. |
| Monthly Base Rent: | The monthly Base Rent during the initial Lease Term shall be as follows: |

---

---

| | |
|:---|:---|
| Months of Lease Term: | Base Rent: |
| 1 – 12 | $32937.50 |
| 13 – 24 | $33925.63 |
| 25 – 36 | $34943.39 |
| 37 –48 | $35991.70 |
| 49 – 60 | $37071.45 |
| 61 – 62 | $38183.59 |

---

Base Rent Credit: See Paragraph 4(b) below.

---

| | |
|:---|:---|
| Initial Estimated Monthly Operating Expense Payments: (estimate only and subject to adjustment to actual costs and expenses according to the provisions of this Lease) | $9,175.10 (does not include utilities, which are to be paid separately in accordance with Paragraph 7 herein). |
| Prepaid Rent: | $42,112.60 (the "**<u>Prepaid Rent</u>**"). |
| Security Deposit: | $138,793.64 (the "**<u>Security Deposit</u>**"). |
| Permitted Use: | General industrial/warehouse use for the purpose of receiving, storing, shipping and selling (but limited to wholesale sales) products, materials and merchandise made and/or distributed by Tenant, light manufacturing and assembly, and incidental office use related thereto (the "**<u>Permitted Use</u>**"). |
| Tenant's Notice Address: | Prior to the Commencement Date:<br>[\*\*\*]<br>From and after the Commencement Date: To the Premises.<br>With a copy to:<br>[\*\*\*] |
| Landlord's Notice Address: | [\*\*\*]<br>With a copy to:<br>[\*\*\*] |
| Brokers: | CBRE, Inc. (Landlord's broker)<br> Jones Lang LaSalle (Tenant's broker) |
| Addenda: | Rules and Regulations;<br> <u>Exhibit A</u> (Premises);<br> <u>Exhibit B</u> (Intentionally Omitted);<br> <u>Exhibit C</u> (List of Property Left in Place by Preceding Tenant);<br> <u>Exhibit D</u> (Environmental Questionnaire). |

---

**<u>LEASE</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Granting Clause; Lease Term</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In consideration of the obligation of Tenant to pay rent as herein provided and in consideration of the other terms, covenants, and conditions hereof, Landlord leases to Tenant, and Tenant leases from Landlord, the Premises, to have and to hold for the Lease Term, subject to the terms, covenants and conditions of this Lease. The term of this Lease shall commence on the "Commencement Date" specified in or established above, and except as otherwise provided herein, shall continue in full force and effect through the number of months as provided above (the "**<u>Lease Term</u>**"); provided, however, that if the Commencement Date is a date other than the first day of a calendar month, the Lease Term shall consist of the remainder of the calendar month including and following the Commencement Date, plus said number of full calendar months. Notwithstanding the foregoing, if Landlord cannot, for any reason, deliver the Premises to Tenant by the Commencement Date set forth in the Basic Lease Provisions above (including, without limitation on account of any present tenant or occupant of the Premises not vacating the Premises), then this Lease shall not be deemed void or voidable nor shall Landlord be deemed to be in default hereunder, nor shall Landlord be liable for any loss or damage directly or indirectly arising out of such delay. Tenant agrees to accept possession of the Premises at such time as Landlord is able to tender the same, which date shall thenceforth be deemed the Commencement Date. After the Commencement Date, Tenant shall, upon demand, execute and deliver a letter of acceptance of delivery of the Premises specifying the Commencement Date. Landlord and Tenant agree that the rentable square footage of the Premises as set forth above and the Building as set forth above shall be conclusive and binding on the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Acceptance of Premises</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Paragraphs 2(b) and 2(c) below, Tenant shall accept the Premises in its "as-is" condition, subject to all applicable laws, ordinances, regulations, covenants and restrictions, and Landlord shall have no obligation to perform or pay for any repair or other work therein (except as otherwise expressly provided in this Lease). Landlord has made no representation or warranty as to the suitability of the Premises for the conduct of Tenant's business, and Tenant waives any implied warranty that the Premises are suitable for Tenant's intended purposes. Tenant acknowledges that, except as otherwise expressly provided in this Lease, (a) it has inspected and accepts the Premises in an "As-ls, Where-ls" condition, (b) the Building and improvements in the Premises are suitable for the purpose for which the Premises are leased and Landlord has made no warranty, representation, covenant, or agreement with respect to the merchantability or fitness for any particular purpose of the Premises, (c) the Premises are in good and satisfactory condition, (d) no representations as to the repair of the Premises, nor promises to alter, remodel or improve the Premises have been made by Landlord, and (e) there are no representations or warranties, expressed, implied or statutory, that extend beyond the description of the Premises. Except as provided in Paragraph 10, in no event shall Landlord have any obligation for any defects in the Premises or any limitation on its use. The taking of possession of the Premises shall be conclusive evidence that Tenant accepts the Premises and that the Premises were in good condition at the time possession was taken except for: (i) items that are Landlord's responsibility under Paragraphs 2(c) and 10, and (ii) any punchlist items agreed to in writing by Landlord and Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Tenant shall be entitled to a one-time tenant improvement allowance from Landlord in an amount up to $77,500.00 (the "**<u>Allowance</u>**") towards the actual and reasonable costs paid by Tenant to unaffiliated third parties for certain Tenant-Made Alterations in the Premises. Detailed plans and specifications for all Tenant-Made Alterations performed by or on behalf of Tenant must be approved in advance by Landlord (in accordance with Paragraph 12 below), and Tenant shall otherwise perform, or cause others to perform, such Tenant-Made Alterations in accordance with the terms and conditions of Paragraph 12 of this Lease. Landlord shall make a one-time disbursement of the Allowance to Tenant within forty-five (45) days (subject to the last sentence of this Paragraph 2(b)) following the last to occur of: (i) completion of the applicable work for which Tenant is seeking reimbursement from Landlord (and confirmation from Landlord that no substandard work has been performed), (ii) Landlord's receipt of Tenant's invoices substantiating the costs paid by Tenant to unaffiliated third parties for such work, (iii) Landlord's receipt of final, unconditional lien waivers from all contractors and subcontractors who performed the applicable work, (iv) Landlord's receipt of a copy of all final permits approved by the applicable governing authority for any work which requires the same, and (v) Landlord's receipt of a copy of all warranties, guaranties, as-built drawings (if applicable) and other documentation relating to the improvements and systems installed in the Premises. Landlord shall be under no obligation to pay for any costs relating to Tenant-Made Alterations that are in excess of the Allowance and all such costs shall be borne solely by Tenant. In no event will the Allowance be used to pay for Tenant's moving expenses or for Trade Fixtures, telephone systems or any other item of personal property which are not affixed to the Premises. Tenant shall not be entitled to any portion of the Allowance which is not requested by Tenant in writing in accordance with the requirements set forth above by June 30, 2019 (and any such unrequested portion of the Allowance shall be retained as Landlord's sole and separate property).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to the last sentence of this Paragraph 2(c), Landlord hereby represents to Tenant that as of the Commencement Date (the "**<u>Representation Date</u>**"), the existing mechanical (including HVAC equipment, dock doors and dock equipment), electrical (including existing lighting) and plumbing systems serving the Premises (the "**<u>Representation Items</u>**") shall be in good working condition; provided, however, if Tenant does not deliver written notice to Landlord of any material breach of such representation within forty-five(45) days following the Representation Date, then Tenant shall be deemed to have inspected and accepted the Representation Items in their present condition. If a material breach of the foregoing representation exists, and Tenant timely (i.e., within forty-five (45) days following the Representation Date) delivers written notice to Landlord setting forth in reasonable detail a description of such material breach, Landlord shall, as Tenant's sole and exclusive remedy, rectify the same at Landlord's expense (provided, however, in no event shall Landlord be responsible for any damages or defects existing as a result of any act or omission of Tenant or Tenant's agents, employees, contractors, subcontractors, subtenants, assigns, licensees or invitees, all of which shall be the sole responsibility of Tenant). Notwithstanding the foregoing, the Representation Items shall not include any of the property listed on Exhibit C attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Use; Compliance with Legal Requirements</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Tenant's compliance with all zoning ordinances and Legal Requirements (as hereinafter defined), the Premises shall be used only for the Permitted Use; provided, however, no retail sales may be made from the Premises. Notwithstanding the immediately preceding sentence, Tenant shall be permitted to sell its products on a wholesale, commercial basis within the Premises (subject to Tenant's compliance with all applicable zoning ordinances and Legal Requirements the terms and conditions of this Lease, and such reasonable rules and regulations as established by Landlord from time to time, and provided that Tenant shall not interfere with any other tenants of the Project or Landlord's operation of the Project in connection with such activities). Tenant shall not conduct or give notice of any auction, liquidation, or going out of business sale on the Premises. Tenant will use the Premises in a careful, safe and proper manner and will not commit waste, overload the floor or structure of the Premises or subject the Premises to use that would damage the Premises. Tenant shall not permit any objectionable or unpleasant odors, smoke, dust, gas, noise, or vibrations to emanate from the Premises, or take any other action that would constitute a nuisance or would disturb, interfere with, or endanger Landlord or any tenants of the Project. Outside storage, including without limitation, storage of trucks and other vehicles, is prohibited without Landlord's prior written consent, which shall not be unreasonably withheld, delayed or conditioned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Landlord represents to Tenant that, as of the date hereof, Landlord has not received written notice from a governmental authority with jurisdiction indicating that the Premises and Building is in violation of any Legal Requirements which remain uncured. Tenant, at its sole expense, shall comply with all laws, orders, judgments, ordinances, regulations, codes, directives, permits, licenses, covenants and restrictions now or hereafter applicable to the Premises (collectively, "**<u>Legal Requirements</u>**"). Notwithstanding the foregoing (except to the extent any of the following alterations or improvements are required as a result of Tenant's specific use of the Premises or any alterations, improvements or other work performed by or on behalf of Tenant, in which case Tenant shall be responsible therefor at Tenant's sole cost and expense), Landlord (not Tenant) shall be responsible, at Landlord's sole cost and expense, for making all alterations and improvements required by the Legal Requirements to remedy any violation of Legal Requirements which existed prior to the Effective Date and which was not subject to any variance or grandfathered code waiver exemption (but only to the extent that (i) remediation is required by a governmental authority with jurisdiction, and (ii) such governmental authority, if it had knowledge of the condition prior to the Effective Date, would have then required remediation pursuant to then-current applicable Legal Requirements, in their form existing as of the Effective Date and pursuant to the then-current interpretation of such Legal Requirements by such governmental authority as of the Effective Date). Any obligations of Landlord pursuant to the immediately preceding sentence are referred to herein as "**Landlord Compliance Obligations.**" The Premises shall not be used as a place of public accommodation under the Americans With Disabilities Act or similar state statutes or local ordinances or any regulations promulgated thereunder, all as may be amended from time to time. Tenant shall, at its expense, make any alterations or modifications, within or without the Premises, that are required by Legal Requirements related to Tenant's specific use or occupation of the Premises. Tenant will not use or permit the Premises to be used for any purpose or in any manner that would void Tenant's or Landlord's insurance, increase the insurance risk, or cause the disallowance of any sprinkler credits. If any increase in the cost of any insurance on the Premises or the Project is caused by Tenant's use or occupation of the Premises, or because Tenant vacates the Premises, then Tenant shall pay the amount of such increase to Landlord. Any entrance into or occupation of the Premises by Tenant prior to the Commencement Date shall be subject to all obligations of Tenant under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Tenant and its employees and invitees shall have the non-exclusive right to use, in common with others, any areas designated by Landlord from time to time as common areas for the use and enjoyment of all tenants and occupants of the Project, subject to such reasonable rules and regulations as Landlord may promulgate from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Base Rent</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Tenant shall pay Base Rent in the amounts set forth on the first page of this Lease. The Prepaid Rent (as set forth in the Basic Lease Provisions above) shall be due and payable on the date hereof (and shall be applied against Base Rent and Operating Expenses first due under this Lease), and Tenant promises to pay to Landlord in advance, without demand, deduction or set-off, monthly installments of Base Rent on or before the first day of each calendar month succeeding the Commencement Date. Payments of Base Rent for any fractional calendar month shall be prorated. All payments required to be made by Tenant to Landlord hereunder shall be payable at such address as Landlord may specify from time to time by written notice delivered in accordance herewith. The obligation of Tenant to pay Base Rent and other sums to Landlord and the obligations of Landlord under this Lease are independent obligations. Tenant shall have no right at any time to abate, reduce, or set-off any rent due hereunder except where expressly provided in this Lease. Tenant acknowledges that late payment by Tenant to Landlord of any rent due hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact amount of such costs being extremely difficult and impractical to determine. Therefore, if Tenant is delinquent in any monthly installment of Base Rent, estimated Operating Expenses or other sums due and payable hereunder for more than five (5) days, Tenant shall pay to Landlord on demand a late charge equal to five percent (5%) of such delinquent sum (provided, however, with respect to the first late payment in any twelve (12) month period only, such late charge shall not be due and payable unless Tenant fails to pay the applicable amount within five (5) days following written notice from Landlord that such amount is past-due). The parties agree that such late charge represents a fair and reasonable estimate of the costs that Landlord will incur by reason of such late payment by Tenant. The late charge shall be deemed to be rent, and the right to require it shall be in addition to all of Landlord's other rights and remedies for a payment failure of Tenant, including the right to charge interest on the past due amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the terms and conditions of this Paragraph 4(b), provided that Tenant is not then in default under this Lease, and has not been in monetary or material non-monetary default (beyond the expiration of any applicable notice and cure period), Tenant shall be credited with the payment of monthly Base Rent with respect to the Premises for the first (1<sup>st</sup>) and second (2<sup>nd</sup>) full calendar months of the initial Lease Term only (collectively, the "**<u>Base Rent Credit</u>**"), as and when the same becomes due and payable, for a total Base Rent Credit equal to $65,875.00 in the aggregate. No such Base Rent Credit shall reduce or limit any other amounts which are otherwise payable by Tenant under this Lease (including, without limitation, Operating Expenses). Tenant understands and agrees that the foregoing Base Rent Credit is conditioned upon Tenant's not being in default under this Lease (beyond the expiration of any applicable notice and cure period). Accordingly, upon the occurrence of any default under this Lease, the foregoing Base Rent Credit shall immediately become null and void to the extent it would have been applicable to future payments. In addition, if Landlord should terminate this Lease as a result of any default by Tenant then, in addition to all other rights and remedies of Landlord, any Base Rent previously credited to Tenant shall immediately become due and payable

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Security Deposit</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Concurrently with the execution of this Lease, Tenant shall deposit with Landlord the Security Deposit in the amount set forth above. The Security Deposit shall be held by Landlord as security for the performance of Tenant's obligations under this Lease. The Security Deposit is not an advance rental deposit or a measure of Landlord's damages in case of Tenant's default. Upon each occurrence of an Event of Default (hereinafter defined), Landlord may use all or part of the Security Deposit to pay delinquent payments due under this Lease, and the cost of any damage, injury, expense or liability caused by such Event of Default, without prejudice to any other remedy provided herein or provided by law. Tenant shall pay Landlord on demand the amount that will restore the Security Deposit to its original amount, or reduced amount in accordance with the first sentence above. Landlord's obligation respecting the Security Deposit is that of a debtor, not a trustee; no interest shall accrue thereon. The Security Deposit shall be the property of Landlord, but shall be paid to Tenant when Tenant's obligations under this Lease have been completely fulfilled. Landlord shall be released from any obligation with respect to the Security Deposit upon transfer of this Lease and the Premises to a person or entity assuming Landlord's obligations under this Paragraph 5. In the event of a sale or other disposition of the Premises, Landlord shall provide written notice to Tenant and may transfer the Security Deposit to the new owner, and, thereafter, Landlord shall be released by Tenant from all responsibility for returning the Security Deposit, and Tenant shall look solely to the new owner for return of the Security Deposit. If Tenant assigns this Lease, Tenant's rights in the Security Deposit shall be deemed to be assigned to the assignee, such Security Deposit shall be held by Landlord as a Security Deposit made by the assignee and Landlord shall have no further responsibility for return of the Security Deposit to Tenant. Tenant hereby waives the provisions of any law, now or hereafter in effect, which provides that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums specified in this Paragraph 5 and/or those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the acts or omissions of Tenant or any officer, employee, agent, contractor or invitee of Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Reduction Preconditions (defined below) are then satisfied and continue to be satisfied thereafter, then (1) as of the twenty-sixth (26<sup>th</sup>) month anniversary of the Commencement Date, the Security Deposit shall be reduced by $46,246.54 and applied by Landlord against Base Rent next due under the Lease, and (ii) as of the fiftieth (50<sup>th</sup>) month anniversary of the Commencement Date, the Security Deposit shall be reduced by $46,246.55 and applied by Landlord against Base Rent next due under the Lease. Each of the foregoing dates shall be referred to herein as the "**<u>Security Deposit Reduction Date</u>**". As used herein, the term "**<u>Reduction Preconditions</u>**" means that (x) Tenant is not then in default under this Lease and (y) Tenant has provided Landlord with financial statements, certified as true and correct in all material respects by a financial officer of Tenant, reflecting (Y) Tenant's current annual EBITDA (earnings before interest, taxes, depreciation and amortization) with respect to Tenant's business operations for the immediately preceding twelve (12) months prior to the applicable Security Deposit Reduction Date is equal to or greater than Seven Hundred Fifty Thousand and No/100 Dollars ($750,000.00) and, (Z) Tenant's net tangible worth of at least Three Million and No/100 Dollars ($3,000,000.00) as of the applicable Security Deposit Reduction Date, in each case of (Y) and (Z) and as determined in accordance with generally accepted accounting principles consistently applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Operating Expense Payments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During each month of the Lease Term, on the same date that Base Rent is due, Tenant shall pay Landlord an amount equal to 1/12<sup>th</sup> of the annual cost, as estimated by Landlord from time to time, of Tenant's Proportionate Share (hereinafter defined) of Operating Expenses. Payments thereof for any fractional calendar month shall be prorated. The provisions of this Paragraph 6 shall survive the expiration or earlier termination of the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The term "**<u>Operating Expenses</u>**" means all commercially reasonable costs and expenses incurred by Landlord in connection with the ownership, maintenance, and/or operation of the Building and the Project including, but not limited to costs of: Common Area utilities; maintenance, repair and replacement of all portions of the Project, including without limitation, paving and parking areas, roads, roofs, roof membrane, alleys, and driveways (except for repairs and replacements to the extent for which Landlord is actually paid from the proceeds of insurance, or to the extent for which Landlord is otherwise reimbursed by Tenant or other tenants or any third party, other than through Operating Expenses); mowing, snow removal, landscaping, and exterior painting; the cost of maintaining utility lines, fire sprinklers and fire protection systems, exterior lighting and mechanical and building systems serving the Building or Project; amounts paid to contractors and subcontractors for work or services performed in connection with any of the foregoing; charges or assessments of any association to which the Project is subject; fees payable to tax consultants and attorneys for consultation and contesting taxes; environmental insurance, environmental management fees and environmental audits; the cost of any insurance deductibles for insurance maintained by Landlord; property management fees payable to a property manager, including any affiliate of Landlord (which property management fee shall be commercially reasonable, based upon the property management fees charged by sophisticated property management companies for the management of institutionally owned commercial properties similar to the Project in the market in which the Project is located), or if there is no property manager, an administration fee of fifteen percent (15%) of Operating Expenses payable to Landlord; security services, if any; trash collection, sweeping and removal; and additions or alterations made by Landlord to the Project or the Building in order to comply with Legal Requirements (other than those expressly required herein to be made by Tenant) or that are appropriate to the continued operation of the Project or the Building as a bulk warehouse/industrial or service center facility in the market area, provided that the cost of such additions or alterations that are required to be capitalized for federal income tax purposes shall be amortized on a straight line basis over a period equal to the lesser of the useful life thereof for federal income tax purposes or ten (10) years and included in Operating Expenses only to the extent of the amortized amount for the respective calendar year. In addition, Operating Expenses shall include (1) Taxes (hereinafter defined) due and payable each calendar year during the Lease Term, and (2) the cost of insurance maintained by Landlord for the Project for each calendar year during the Lease Term. With respect to any Operating Expenses that Landlord determines benefit either the Project as a whole or other buildings in the Project in addition to the Building, Operating Expenses shall include the Building's equitable share of the same, as reasonably determined by Landlord. If less than ninety-five percent (95%) of the net rentable area of the Building and/or Project is occupied by tenants at all times during any calendar year, then Operating Expenses for such year shall include all additional costs and expenses that Landlord reasonably determines would have been incurred had ninety-five percent (95%) of the Building and Project been occupied at all times during such year by tenants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the foregoing, Operating Expenses do not include (1) debt service under mortgages or ground rent under ground leases; (2) costs of restoration to the extent of net insurance proceeds received by Landlord with respect thereto; (3) leasing commissions or the costs of renovating space for tenants; (4) any costs or legal fees incurred in connection with a dispute with any particular tenant; (5) any cost or expenditure (or portion thereof) to the extent for which Landlord is actually reimbursed other than through Operating Expenses, whether by insurance proceeds or otherwise; (6) costs of any service furnished exclusively to any other occupant of the Building or Project which Landlord does not provide to Tenant; (7) any cost of repairs necessitated by the gross negligence of the Landlord, its agents or contractors; (8) costs of performing any Landlord Compliance Obligations (and any penalties or interest incurred or accumulated as a result of such Landlord Compliance Obligations having not earlier been performed); (9) any legal fees, accountant's fees, and other expenses incurred in connection with disputes with tenants or other occupants of the Project or associated with the enforcement of any leases or the defense of Landlord's title to or interest in the Project or any part thereof; (10) legal fees, auditing fees, advertising costs, promotional or marketing expenses; (11) any costs of contributing to a political or charitable organization; (12) costs of acquiring, installing, moving, insuring or restoring objects of art; (13) expenses or costs incurred by Landlord for the abatement, removal, handling or treatment of any Landlord's Hazardous Materials (defined below); provided that the foregoing shall not limit Tenant's obligations under Paragraph 30(d) below to the extent that any Landlord's Hazardous Materials are generated, used or transported, or knowingly or negligently exacerbated, released or disturbed, by Tenant, its agents, employees, contractors, subtenants, assignees, licensees or invitees; (14) cost of any disputes between Landlord and any employee or agent of Landlord; (15) executive salaries to the extent that such services are not in connection with the management, operation, repair or maintenance of the Project; (16) Landlord's general overhead expenses not related to the Project; and (17) contributions to reserves for expenses to be incurred after the applicable year. The cost of any repairs or replacements which are classified as capital improvements under generally accepted accounting principles shall be amortized with interest (at a rate reasonably determined by Landlord) over the lesser of the useful life of the improvement or ten (10) years and included in Operating Expenses only to the extent of the amortized amount for the respective calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If Tenant's total payments of Operating Expenses for any year are less than Tenant's Proportionate Share of actual Operating Expenses for such year, then Tenant shall pay the difference to Landlord within thirty (30) days after demand, and if more, then Landlord shall retain such excess and credit it against Tenant's next payments. For purposes of calculating Tenant's Proportionate Share of Operating Expenses, a year shall mean a calendar year except the first year, which shall begin on the Commencement Date, and the last year, which shall end on the expiration of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Tenant's "**<u>Proportionate Share</u>**" shall be the percentage set forth on the first page of this Lease as Tenant's Proportionate Share of the Building as reasonably adjusted by Landlord in the future for changes in the physical size of the Premises or the Building. Landlord may equitably increase Tenant's Proportionate Share for any item of expense or cost reimbursable by Tenant that relates to a repair, replacement, or service that benefits only the Premises or only a portion of the Project or Building that includes the Premises or that varies with occupancy or use. The estimated Operating Expenses for the Premises set forth on the first page of this Lease are only estimates, and Landlord makes no guaranty or warranty that such estimates will be accurate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Tenant shall have the right, once each calendar year, to cause a Qualified Person (as defined below) to review supporting data for any portion of an actual statement of annual Operating Expenses delivered by Landlord (the "**<u>Actual Statement</u>**") (provided, however, Tenant may not have an audit right to all documentation relating to Building operations as this would far-exceed the relevant information necessary to properly document a pass-through billing statement, but real estate tax statements, and information on utilities, repairs, maintenance and insurance, and such other information as reasonably required to substantiate Operating Expenses charged to Tenant, will be available), in accordance with the following procedure:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Tenant shall, within sixty (60) days after any Actual Statement is delivered, deliver a written notice to Landlord specifying the portions of the Actual Statement that are claimed to be incorrect, and Tenant shall simultaneously pay to Landlord all amounts due from Tenant to Landlord as specified in the Actual Statement (unless such amounts have already been paid by Tenant). In no event shall Tenant be entitled to withhold, deduct, or offset any monetary obligation of Tenant to Landlord under the Lease (including without limitation, Tenant's obligation to make all payments of rent and all payments of Tenant's Operating Expenses) pending the completion of and regardless of the results of any review of records under this Paragraph. The right of Tenant under this Paragraph may only be exercised once for any Actual Statement, and if Tenant fails to meet any of the above conditions as a prerequisite to the exercise of such right, the right of Tenant under this Paragraph for a particular Actual Statement shall be deemed waived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Tenant acknowledges that Landlord maintains its records for the Project at the office of Landlord's property manager, and Tenant agrees that any review of records under this Paragraph shall be at the sole expense of Tenant and shall be conducted by a Qualified Person. Tenant acknowledges and agrees that any records reviewed under this Paragraph constitute confidential information of Landlord, which shall not be disclosed to anyone other than the Qualified Person performing the review, the principals of Tenant who receive the results of the review, and Tenant's accounting employees (unless disclosure is required by any judicial or administrative order or ruling; provided that in such event Tenant shall notify Landlord in writing of any such order or ruling and shall not disclose such information until Landlord has been provided a reasonable opportunity, with reasonable cooperation from Tenant, to protect such information from disclosure). The disclosure of such information to any other person, whether or not caused by the conduct of Tenant, shall constitute a material breach of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any errors disclosed by the review shall be promptly corrected by Landlord, provided, however, that if Landlord disagrees with any such claimed errors, Landlord shall have the right to cause another review to be made by a Qualified Person. In the event of a disagreement between the two (2) reviews, the two (2) Qualified Persons who conducted Landlord's and Tenant's reviews shall jointly designate a third (3<sup>rd</sup>) Qualified Person, at Tenant's sole cost and expense (except as otherwise indicated in this Lease), to conduct a review of Landlord's records. The review of such third (3<sup>rd</sup>) Qualified Person shall be deemed correct and binding upon the parties. In the event that the final results of such review of Landlord's records reveal that Tenant has overpaid obligations for the preceding period, the amount of such overpayment shall be credited against Tenant's subsequent installment obligations to pay the estimated Operating Expenses; provided, however, if Tenant has overpaid by more than seven percent (7%), Landlord shall pay the reasonable out-of-pocket cost of the review of Landlord's records by Tenant's Qualified Person and the reasonable out-of-pocket cost of the review of Landlord's records by the third (3<sup>rd</sup>) Qualified Person. If this Lease has expired, Landlord shall return the amount of such overpayment to Tenant within thirty (30) days after such reviews have been made. In the event that such results show that Tenant has underpaid its obligations for a preceding period, the amount of such underpayment shall be paid by Tenant to Landlord with the next succeeding installment obligation of estimated Operating Expenses. A "**<u>Qualified Person</u>**" means an accountant or other person experienced in accounting for income and expenses of industrial projects engaged solely by Tenant on terms which do not entail any compensation based or measured in any way upon any savings in rent or reduction in Operating Expenses achieved through the inspection process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Utilities</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Tenant shall timely pay for all water, gas, electricity, heat, light, power, telephone, sewer, sprinkler services, refuse and trash collection, and other utilities and services used on the Premises, all maintenance charges for utilities, and any storm sewer charges or other similar charges for utilities imposed by any governmental entity or utility provider, together with any taxes, penalties, surcharges or the like pertaining to Tenant's use of the Premises. Landlord shall have no responsibilities whatsoever in connection with the foregoing. Landlord may cause at Tenant's expense any utilities to be separately metered or charged directly to Tenant by the provider. Tenant shall pay its share of all charges for jointly metered utilities based upon consumption, as reasonably determined by Landlord. Tenant shall be permitted, at Tenant's sole cost and expense, to have the water serving the Premises separately metered (which work must be performed in accordance with all terms and conditions of this Lease, including, without limitation Paragraph 12 below and Landlord's right to review and approve of detailed plans and specifications in advance). Tenant agrees to limit use of water and sewer for normal restroom use. Except as expressly provided in the remainder of this Paragraph 7(a), no interruption or failure of utilities shall result in the termination of this Lease or the abatement of rent. If Tenant is prevented from using, and does not use, the Premises or a substantial portion thereof as a result of any negligent failure or willful misconduct by Landlord to provide utility services to the Premises, and such failure was not caused directly or indirectly by the gross negligence or willful misconduct of Tenant, its employees, agents or visitors, guests, invitees or licensees (an "**<u>Abatement Event</u>**"), then Tenant shall give written notice of such Abatement Event to Landlord. If the Abatement Event continues for five (5) consecutive business days (the "**<u>Abatement Period</u>**") after Landlord's receipt of Tenant's written notice, then Base Rent shall be abated or reduced after expiration of the Abatement Period, for such time that Tenant continues (as a result of the Abatement Event) to be so prevented from using, and does not use, the Premises or a substantial portion thereof, in the proportion that the rentable area of the portion of the Premises that Tenant is prevented from using, and does not use, bears to the total rentable area of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Tenant shall, at its sole cost and expense, contract directly with a janitorial service and shall pay for all janitorial services used on or for the Premises. Landlord shall have no obligations whatsoever in connection therewith. All janitorial services and employees utilized by Tenant shall be subject to Landlord's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary contained in this Lease, Tenant agrees that Landlord, at its election, may contact any utility company providing utility services to the Premises in order to obtain data on the energy being consumed by the occupant of the Premises. Furthermore, Tenant agrees to provide Landlord with Tenant's energy consumption data within thirty (30) days after Landlord's request for the same. Tenant agrees to take such further actions as are necessary in order to further the purpose of this paragraph, including, without limitation, providing to Landlord the names and contact information for all utility providers serving the Premises, copies of utility bills, written authorization from Tenant to any such utility company to release information to Landlord, and any other relevant information reasonably requested by Landlord or the applicable utility company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Taxes</u>**. Landlord shall pay all taxes, assessments, special assessments, improvement districts, and governmental charges (collectively referred to as "**<u>Taxes</u>**") that accrue against the Project during the Lease Term. Taxes shall be included as part of the Operating Expenses charged to Tenant pursuant to Paragraph 6 hereof during each year of the Lease Term, based upon Landlord's reasonable estimate of the amount of Taxes, and shall be subject to reconciliation and adjustment pursuant to Paragraph 6 once the actual amount of Taxes is known. Taxes shall include, without limitation, any increase in any of the foregoing based upon construction of improvements on the Project or changes in ownership. Landlord may- contest by appropriate legal proceedings the amount, validity, or application of any Taxes or liens thereof and any costs incurred in such contest may be included as part of Taxes. All capital levies or other taxes assessed or imposed on Landlord upon the rents payable to Landlord under this Lease and any franchise tax, any excise, transaction, sales or privilege tax, assessment, levy or charge measured by or based, in whole or in part, upon such rents from the Premises and/or the Project or any portion thereof shall be paid by Tenant to Landlord monthly in estimated installments or upon demand, at the option of Landlord, as additional rent; provided, however, in no event shall Tenant be liable for any net income taxes imposed on Landlord unless such net income taxes are in substitution for any Taxes payable hereunder. If any such tax or excise is levied or assessed directly against Tenant, then Tenant shall be responsible for and shall pay the same at such times and in such manner as the taxing authority shall require. Tenant shall be liable for all taxes levied or assessed against any personal property or fixtures placed in the Premises, whether levied or assessed against Landlord or Tenant, and if any such taxes are levied or assessed against Landlord or Landlord's property and (a) Landlord pays them or (b) the assessed value of Landlord's property is increased thereby and Landlord pays the increased taxes, then Tenant shall pay to Landlord such taxes within thirty (30) days after Landlord's request therefor. Notwithstanding the foregoing, Taxes shall not include real estate transfer taxes (as distinct from increases in property taxes resulting from a change in ownership) or late charges or penalties caused by Landlord's failure to pay any Taxes when due (where such failure is not the result of any failure of Tenant to timely pay any amounts due and payable by Tenant under this Lease).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Insurance</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Tenant Insurance Requirements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Effective as of the earlier of: (x) the date Tenant enters or occupies the Premises; or (y) the Commencement Date, and continuing during the Lease Term, Tenant, at its expense, shall obtain and maintain in full force the following insurance coverage (subject to increases in coverage amounts and additional types of coverage, as reasonably determined by Landlord from time to time):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Commercial general liability insurance which insures against claims for bodily injury, personal injury, advertising injury, and property damage based upon, involving, or arising out of the use, occupancy, or maintenance of the Premises and the Project. Such insurance shall afford, at a minimum, the following limits:

---

| | |
|:---|:---|
| Each Occurrence | $1000000 |
| General Aggregate | $2000000 |
| Products/Completed Operations Aggregate | $1000000 |
| Personal and Advertising Injury Liability | $1000000 |
| Fire Damage Legal Liability | $100000 |
| Medical Payments | $5000 |

---

Any general aggregate limit shall apply on a per location basis. Tenant's commercial general liability insurance shall include Landlord, its trustees, officers, directors, members, agents, and employees, Landlord's mortgagees, and Landlord's representatives, as additional insureds. This coverage shall be written on the most current ISO CGL form, shall include contractual liability, premises-operations and products-completed operations and shall contain an exception to any pollution exclusion which insures damage or injury arising out of heat, smoke, or fumes from a hostile fire. Such insurance shall be written on an occurrence basis and contain a standard separation of insureds provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Business automobile liability insurance covering owned, hired and non-owned vehicles with limits of $1,000,000 combined single limit per occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Workers' compensation insurance in accordance with the laws of the state in which the Premises are located with employer's liability insurance in an amount not less than $1,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Umbrella/excess liability insurance, on an occurrence basis, that applies excess of the required commercial general liability, business automobile liability, and employer's liability policies with the following minimum limits:

---

| | |
|:---|:---|
| Each Occurrence | $5000000 |
| Annual Aggregate | $5000000 |

---

These limits shall be in addition to and not including those stated for the underlying commercial general liability, business automobile liability, and employers liability insurance required herein. Umbrella/Excess liability policies shall be following form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) "Cause of Loss – Special Form" property insurance including theft, sprinkler leakage and boiler and machinery coverage on all of Tenant's trade fixtures, furniture, inventory and other personal property in the Premises, and on any alterations, additions, or improvements made by Tenant upon the Premises all for the full replacement cost thereof. Tenant shall use the proceeds from such insurance for the replacement of trade fixtures, furniture, inventory and other personal property and for the restoration of Tenant's improvements, alterations, and additions to the Premises. Landlord shall be named as loss payee with respect to alterations, additions, or improvements of the Premises where the tenant cannot remove at the end of the lease term wherein ownership then reverts to the landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Business income and extra expense insurance with limits not less than one hundred percent (100%) of all income and charges payable by Tenant under this lease for a period of twelve (12) months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All policies required to be carried by Tenant hereunder shall be issued by an insurance company licensed or authorized to do business in the state in which the Project is located with a rating of at least "A-: X" or better as set forth in the most current issue of Best's Insurance Reports, unless otherwise approved by Landlord. Tenant shall not do or permit anything to be done that would invalidate the insurance policies required herein. Liability insurance maintained by Tenant shall be primary coverage on behalf of Landlord, its trustees, officers, directors, members, agents, and employees, Landlord's mortgagees, and Landlord's representatives and any policies of Landlord, its trustees, officers, directors, members, agents, and employees, Landlord's mortgagees, and Landlord's representatives shall be non contributory. Certificates of insurance, acceptable to Landlord, evidencing the existence and amount of each insurance policy required hereunder shall be delivered to Landlord prior to delivery or possession of the Premises and ten (10) days following each renewal date. Certificates of insurance shall evidence that Landlord, its trustees, officers, directors, members, agents, and employees, Landlord's mortgagees, and Landlord's representatives are included as additional insureds on liability policies and that Landlord is included as loss payee on the property insurance as stated in Paragraph 9(a)(i)(5) above. Further, each policy shall contain provisions giving Landlord and each of the other additional insureds at least thirty (30) days prior written notice of cancellation, non-renewal or material change in coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the event that Tenant fails to provide evidence of insurance required to be provided by Tenant in this Lease, prior to the Commencement Date and thereafter during the Term, within ten (10) days following Landlord's request thereof, and thirty (30) days prior to the expiration of any such coverage, Landlord shall be authorized (but not required) to procure such coverage in the amount stated with all costs thereof to be chargeable to Tenant and payable upon written invoice thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The limits of insurance required by this Lease, or as carried by Tenant, shall not limit the liability of Tenant or relieve Tenant of any obligation under this Lease. Any deductibles selected by Tenant shall be the sole responsibility of Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Tenant insurance requirements stipulated in Paragraph 9(a)(i) above are based upon current industry standards. Landlord reserves the right to require additional coverage or to increase limits as industry standards change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Should Tenant engage the services of any contractor to perform work in the Premises, Tenant shall ensure that such contractor carries commercial general liability, business automobile liability, umbrella/excess liability (following form), worker's compensation and employers liability coverages in substantially the same amounts as are required of Tenant under this Lease. Contractor shall include Landlord, its trustees, officers, directors, members, agents and employees, Landlord's mortgagees and Landlord's representatives as additional insureds on the liability policies required hereunder. All policies required to be carried by any contractor shall be issued by and binding upon an insurance company licensed or authorized to do business in the state in which the Project is located with a rating of at least "A-: X" or better as set forth in the most current issue of Best's Insurance Reports, unless otherwise approved by Landlord. Certificates of insurance, acceptable to Landlord, evidencing the existence and amount of each insurance policy required hereunder shall be delivered to Landlord prior to the commencement of any work in the Premises. Further, each policy will contain provisions giving Landlord and each of the other additional insureds with at least thirty (30) days prior written notice of any cancelation, non-renewal or material change in coverage. The above requirements shall apply equally to any subcontractor engaged by contractor

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Landlord's Insurance</u>. Landlord shall obtain and maintain the following: (1) all risk property insurance covering the full replacement cost of the Building (excluding foundations), less a commercially reasonable deductible if Landlord so chooses; and (2) commercial general liability insurance, which shall be in such amount as Landlord so determines and shall be in addition to, and not in lieu of, any insurance required to be maintained by Tenant. Landlord shall not be obligated to insure any furniture, equipment, trade fixtures, machinery, goods, or supplies which Tenant may keep or maintain in the Premises or any alteration, addition, or improvement which Tenant may make upon the Premises. In addition, Landlord may, but is not obligated to, maintain such other insurance and additional coverages as it may deem necessary, including, but not limited to, flood insurance, earthquake insurance and rent loss insurance. The premiums for all such insurance shall be included as part of the Operating Expenses charged to Tenant pursuant to Paragraph 6 hereof. The Project or Building may be included in a blanket policy (in which case the cost of such insurance allocable to the Project or Building will be determined by Landlord based upon the insurer's cost calculations). Tenant shall also reimburse Landlord for any increased premiums or additional insurance that Landlord reasonably deems necessary as a result of Tenant's use of the Premises. Tenant shall not be named as an additional insured on any policy of liability insurance maintained by Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waiver of Subrogation</u>. Landlord waives any and all rights of recovery against Tenant for or arising out of damage to, or destruction of the Premises to the extent that Landlord's property insurance policies then in force insure against such damage or destruction and permit such waiver and only to the extent of insurance proceeds actually received by Landlord for such damage or destruction. Tenant waives any and all rights of recovery against Landlord for or arising out of damage to or destruction of any property of Tenant to the extent that Tenant's property insurance policies then in force or the policies required by this Lease, whichever is broader, insure against such damage or destruction. Landlord will not be responsible for or liable to Tenant for any loss or damage that may be occasioned by or through the acts or omissions of persons occupying adjoining premises or any part of the premises adjacent to or connected with the Premises or any part of the Building or for any loss or damage resulting to Tenant or its property from burst, stopped or leaking water, gas, sewer or steam pipes or falling plaster, or electrical wiring or for any damage or loss of property within the Premises from any causes whatsoever, including but not limited to theft, and/or acts or threatened acts of terrorism, damage or injury due to mold, excepting only losses or damages resulting from the gross negligence or willful misconduct of Landlord. Landlord will not be liable under any circumstances to Tenant for any incidental or consequential damages

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Landlord's Repairs</u>**. This Lease is intended to be a net lease. Landlord shall maintain and repair, as part of Operating Expenses, the fire sprinklers and fire protection systems, roof, foundation piers and structural members of the exterior walls and bearing walls of the Building, drainage systems, in good repair, reasonable wear and tear and uninsured losses and damages caused by Tenant, its agents, employees, contractors, licensees and invitees excluded. The term "walls" as used in this Paragraph 10 shall not include windows, glass or plate glass, doors or overhead doors, special store fronts, dock bumpers, dock plates or levelers, or office entries, all of which shall be maintained by Tenant. Tenant shall promptly give Landlord written notice of any repair required by Landlord pursuant to this Paragraph 10, after which Landlord shall have a reasonable opportunity to repair such item. Landlord shall also maintain in good repair and condition the parking areas and other common areas of the Building, including, but not limited to driveways, alleys, landscape and grounds surrounding the Premises, the cost of such maintenance, repair and replacement to be paid in accordance with Paragraph 6 hereof. Tenant hereby waives the benefit of any other statute providing a right to make repairs and deduct the cost thereof from the rent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Tenant's Repairs</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Landlord's obligation in Paragraph 10, Tenant, at its sole expense, shall repair, replace and maintain in good condition and in compliance with all Legal Requirements all portions of the Premises and all areas, improvements and systems exclusively serving the Premises including, without limitation, dock, dock equipment and loading areas, truck doors, plumbing, water, and sewer lines up to points of common connection, entries, doors, door frames, ceilings, windows, window frames, interior walls, and the interior side of demising walls, and heating, ventilation and air conditioning systems, and other building and mechanical systems serving the Premises. Such repair and replacements include capital expenditures and repairs whose benefit may extend beyond the Lease Term provided, however, if Tenant is required (pursuant to the terms hereof) to replace the heating, ventilation and air conditioning systems, plumbing or electrical systems (each, a "**<u>Capital Systems Item</u>**") during the Lease Term, then, provided Tenant is not then in default under this Lease and provided further that such Capital Systems Item (i) was not necessitated by Tenant's misuse, neglect or failure to timely comply with any of the terms of this Lease, or (ii) is not with respect to any leasehold improvements, fixtures or equipment installed in the Premises by, for or on behalf of Tenant (including, without limitation, the repair or replacement of any Tenant-Made Alterations), and (iii) Tenant has maintained the maintenance service contract(s) for certain building systems pursuant to the terms of this paragraph below, and then at Tenant's election, Landlord shall perform such Capital Systems Item and the cost thereof shall be amortized on a straight line basis (with interest at eight percent (8%) per annum) over a period equal to the useful life thereof (pursuant to generally accepted accounting principles), and Tenant shall pay such amortized payments to Landlord on the first day of each month together with its Base Rent payments (but without regard to any credit or abatement of Base Rent) for only the portion of the useful life of such capital expenditures and repairs that coincides with Tenant's remaining Lease Term. Within ten (10) days of the Commencement Date, Tenant, at Tenant's expense, shall enter into maintenance service contracts for the maintenance and repair of the heating, ventilation and air conditioning systems and other mechanical and building systems serving the Premises; provided, however, at Landlord's written election (but at Tenant's expense), Landlord shall have the right (but not the obligation) to enter into such maintenance service contracts. The scope of services and contractors under such maintenance contracts maintained by Tenant shall be subject to Landlord's prior written approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that any repair or maintenance obligation required to be performed by Tenant hereunder may affect the structural integrity of the Building (e.g., roof, foundation, structural members of the exterior walls) or any Building systems (e.g., plumbing, electrical, HVAC, fire and life safety), prior to commencing any such repair, Tenant shall provide Landlord with written notice of the necessary repair or maintenance and a brief summary of the structural component or components of the Building, and/or the Building systems, that may be affected by such repair or maintenance. Within ten (10) business days after Landlord's receipt of Tenant's written notice, Landlord shall have the right, but not the obligation, to elect to cause such repair or maintenance to be performed by Landlord, or a contractor selected and engaged by Landlord, but at Tenant's sole cost and expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Within the fifteen (15) day period prior to the expiration or termination of this Lease, Tenant shall deliver to Landlord a certificate from an engineer reasonably acceptable to Landlord certifying that the hot water equipment, dock equipment, and the HVAC system are then in good repair and working order. If Tenant fails to perform any repair or replacement for which it is responsible (or if Tenant fails to obtain any of the certifications described in the immediately preceding sentence), Landlord may perform such work (and/or obtain such certifications) and be reimbursed by Tenant within ten (10) days after demand for all costs and expenses incurred by Landlord in connection therewith. Subject to Paragraphs 9 and 15, Tenant shall bear the full cost of any repair or replacement to any part of the Building or Project that results from damage caused by Tenant, its agents, contractors, or invitees and any repair that benefits only the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Tenant-Made Alterations and Trade Fixtures.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any alterations, additions, or improvements made by or on behalf of Tenant to the Premises ("**<u>Tenant-Made Alterations</u>**") shall be subject to Landlord's prior written consent. Notwithstanding the foregoing, Tenant may make strictly cosmetic changes in the Premises, not including any changes affecting the Premises' or Building's structure, systems, equipment, or exterior appearance, without Landlord's consent (but subject to all other terms of this Lease), provided that (i) the aggregate cost of any such cosmetic, non-structural Tenant-Made Alterations does not exceed Twenty Thousand Dollars ($20,000.00) in any twelve (12) month period, and (ii) such Tenant-Made Alterations do not require any substantial modifications to the Premises and do not require issuance of a building permit. Tenant shall give Landlord at least ten (10) days prior written notice of such cosmetic Tenant-Made Alterations ("**<u>Cosmetic Alterations Notice</u>**"), which Cosmetic Alterations Notice shall be accompanied by reasonably adequate evidence that such cosmetic Tenant-Made Alterations meet the criteria contained in this Paragraph 12. Tenant shall cause, at its expense, all Tenant-Made Alterations to comply with insurance requirements and with Legal Requirements and shall construct at its expense any alteration or modification required by Legal Requirements as a result of any Tenant-Made Alterations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All Tenant-Made Alterations shall be constructed in a good and workmanlike manner by contractors reasonably acceptable to Landlord and only good grades of materials shall be used. All plans and specifications for any Tenant-Made Alterations shall be submitted to Landlord for its approval. Landlord may monitor construction of the Tenant-Made Alterations. Tenant shall reimburse Landlord for its costs in reviewing plans and specifications and in monitoring construction not to exceed five percent (5%) of the total cost of such Tenant-Made Alterations. Landlord's right to review plans and specifications and to monitor construction shall be solely for its own benefit, and Landlord shall have no duty to see that such plans and specifications or construction comply with applicable laws, codes, rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Tenant shall provide Landlord with the identities and mailing addresses of all persons performing work or supplying materials, prior to beginning such construction, and Landlord may post on and about the Premises notices of non-responsibility pursuant to applicable law. Tenant shall furnish security or make other arrangements satisfactory to Landlord to assure payment for the completion of all work free and clear of liens and shall provide certificates of insurance for worker's compensation and other coverage in amounts and from an insurance company satisfactory to Landlord protecting Landlord against liability for personal injury or property damage during construction. Upon completion of any Tenant-Made Alterations, Tenant shall deliver to Landlord sworn statements setting forth the names of all contractors and subcontractors who did work on the Tenant-Made Alterations and final lien waivers from all such contractors and subcontractors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon surrender of the Premises, all Tenant-Made Alterations and any leasehold improvements constructed by Landlord or Tenant shall remain on the Premises as Landlord's property, except to the extent Landlord's requires removal at Tenant's expense of any such items or Landlord and Tenant have otherwise agreed in writing in connection with Landlord's consent to any Tenant-Made Alterations. Prior to the expiration or termination of this Lease, Tenant, at its sole expense, shall repair any and all damage caused by such removal and restore the Premises to their condition existing upon the Commencement Date, normal wear and tear excepted (and subject to the provisions of Paragraph 15 and Paragraph 16 below with respect to any casualty or condemnation events). This Paragraph 12(d) shall not apply to any Trade Fixtures as defined below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Tenant, at its own cost and expense and without Landlord's prior approval, may erect such shelves, bins, machinery, equipment, furniture, trade fixtures, and other removable personal property (collectively "**<u>Trade Fixtures</u>**") in the ordinary course of its business provided that such items do not alter the basic character of the Premises, do not overload or damage the Premises, and may be removed without injury to the Premises, and the construction, erection, and installation thereof complies with all Legal Requirements and with Landlord's requirements set forth above. Prior to the expiration or termination of this Lease, Tenant, at its sole expense, shall remove its Trade Fixtures and shall repair any and all damage caused by such removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Subject to all terms and conditions of this Paragraph 12 (including, without limitation, Tenant's obligation to comply with all Legal Requirements (including, without limitation, all Environmental Requirements)), Tenant shall be permitted to install (i) one (I) 5,000 gallon above-ground double-walled storage tank(s) and containment berm within the Premises and (ii) one nitrogen tank outside of the Premises in a mutually agreed upon location. Plans and specifications with respect to the same (including method of installation) must be approved in advance by Landlord, which approval shall not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **<u>Signs</u>**. Subject to all Legal Requirements (and only to the extent permitted thereby), and provided there is no monetary or material non-monetary Event of Default by Tenant hereunder, Tenant shall have the right, at Tenant's sole cost and expense, to install one (1) exterior building sign identifying Tenant to be located above the main entrance to the Premises or on the façade of the Building in an exact location to be approved by Landlord ("**<u>Tenant's Signage</u>**"), such approval not to be unreasonably withheld, delayed or conditioned. Notwithstanding the foregoing, the exact location, size, appearance and substance of Tenant's Signage shall be subject to Landlord's prior written approval, which shall not be unreasonably withheld, conditioned or delayed (and shall conform in all respects to Landlord's commercially reasonable requirements). All signs, decorations, advertising media, blinds, draperies and other window treatment or bars or other security installations visible from outside the Premises shall be subject to Landlord's prior written approval and shall conform in all respects to Landlord's requirements. Tenant shall not make any changes to the exterior of the Premises, install any exterior lights, decorations, balloons, flags, pennants, banners, or painting, or erect or install any signs, windows or door lettering, placards, decorations, or advertising media of any type which can be viewed from the exterior of the Premises, without Landlord's prior written consent. Landlord shall not be required to notify Tenant of whether it consents to any sign until it (a) has received detailed, to-scale drawings thereof specifying design, material composition, color scheme, and method of installation, and (b) has had a reasonable opportunity to review them. Upon surrender or vacation of the Premises, Tenant shall have removed all signs and repair, paint, and/or replace the building fascia surface to which its signs are attached. Tenant shall obtain all applicable governmental permits and approvals for sign and exterior treatments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **<u>Parking</u>**. Tenant shall be entitled to park its proportionate share of vehicles (as determined by Landlord from time to time) in common with other tenants of the Project in those areas designated by Landlord for non-reserved parking, on a first come, first served basis, subject to Tenant's obligation to comply with all Legal Requirements, the terms of this Lease and all rules and regulations which are prescribed from time to time by Landlord. From time to time, Landlord may allocate the number of parking spaces among Tenant and other tenants in the Project at Landlord's sole discretion. Landlord shall not be responsible for enforcing Tenant's parking rights against any third parties. All motor vehicles (including all contents thereof) shall be parked in the Project's parking areas at the sole risk of Tenant, it being expressly agreed and understood Landlord has no duty to insure any of said motor vehicles (including the contents thereof), and Landlord is not responsible for the protection and security of such vehicles. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS LEASE, LANDLORD SHALL HAVE NO LIABILITY WHATSOEVER FOR ANY PROPERTY DAMAGE OR LOSS WHICH MIGHT OCCUR ON THE PARKING AREAS OR AS A RESULT OF OR IN CONNECTION WITH THE PARKING OF MOTOR VEHICLES IN ANY OF THE PARKING SPACES,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **<u>Restoration</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If at any time during the Lease Term the Premises are damaged by a fire or other casualty, Landlord shall notify Tenant within sixty (60) days after such damage as to the amount of time Landlord reasonably estimates it will take to restore the Premises. If the restoration time is estimated to exceed 270 days from the date Landlord is notified of the casualty, either Landlord or Tenant may elect to terminate this Lease upon notice to the other party given no later than thirty (30) days after Landlord's notice. If neither party elects to terminate this Lease or if Landlord estimates that restoration will take 270 days or less, then, subject to receipt of sufficient insurance proceeds, Landlord shall promptly restore the Premises excluding the Tenant-Made Alterations, and any other improvements installed by Tenant or by Landlord and paid by Tenant, subject to delays arising from the collection of insurance proceeds or from Force Majeure events. Tenant at Tenant's expense shall promptly perform, subject to delays arising from the collection of insurance proceeds, or from Force Majeure events, all repairs or restoration with respect to any Tenant-Made Alterations and Trade Fixtures shall promptly re-enter the Premises and commence doing business in accordance with this Lease. Base Rent shall be abated for the period of repair and restoration in the proportion which the area of the Premises, if any, which is not usable by Tenant bears to the total area of the Premises. Notwithstanding the foregoing, either party may terminate this Lease upon thirty (30) days written notice to the other if the Premises are damaged during the last year of the Lease Term and Landlord reasonably estimates that it will take more than thirty (30) days to repair such damage. Tenant shall pay to Landlord, within thirty (30) days following Landlord's written demand therefor, the amount of the deductible under Landlord's insurance policy applicable to the restoration work (which deductible shall be commercially reasonable based on the deductibles of other institutional owners of commercial properties similar to the Project in the market in which the Project is located). If the damage involves portions of the Building other than the Premises, Tenant shall pay only a portion of the deductible based on the ratio of the costs of repairing the damage to the Premises to the total cost of repairing all of the damage to the Building.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Premises are destroyed or substantially damaged by any peril not covered by the insurance maintained by Landlord or any Landlord's mortgagee requires that insurance proceeds be applied to the indebtedness secured by its mortgage (defined hereinafter), Landlord may terminate this Lease by delivering written notice of termination to Tenant within thirty (30) days after such destruction or damage or such requirement is made known by any such Landlord's mortgagee, as applicable, whereupon all rights and obligations hereunder shall cease and terminate, except for any liabilities of Tenant which accrued prior to Lease termination. If Landlord elects to repair or restore such damage or destruction, this Lease shall continue in full force and effect, but Base Rent shall be proportionately reduced as provided in Paragraph 15(a). If Landlord elects to terminate this Lease, such termination shall be effective as of the date of the occurrence of such damage or destruction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the foregoing, if the Premises or the Project are wholly or partially damaged or destroyed as a result of the negligence or willful misconduct or omission of Tenant, Tenant shall forthwith diligently undertake to repair or restore all such damage or destruction at Tenant's sole cost and expense, or Landlord may at its option undertake such repair or restoration at Tenant's sole cost and expense; provided, however, that Tenant shall be relieved of its repair and payment obligations pursuant to this Paragraph 15(c) to the extent that insurance proceeds are collected by Landlord to repair such damage, although Tenant shall in such events pay to Landlord the full amount of the deductible under Landlord's insurance policy and any amounts not insured. This Lease shall continue in full force and effect without any abatement or reduction in Base Rent or Operating Expenses or other payments owed by Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The provisions of this Paragraph 15 shall constitute Tenant's sole and exclusive remedy in the event of damage or destruction to the Premises or Project, and Tenant waives and releases all statutory rights and remedies in favor of Tenant in the event of damage or destruction. No damages, compensation or claim shall be payable by Landlord for any inconvenience, any interruption or cessation of Tenant's business, or any annoyance, arising from any damage or destruction of all or any portion of the Premises or Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **<u>Condemnation</u>**. If any part of the Premises or the Project should be taken for any public or quasi-public use under governmental law, ordinance, or regulation, or by right of eminent domain, or by private purchase in lieu thereof (a "**<u>Taking</u>**" or "**<u>Taken</u>**"), and (a) the Taking would prevent or materially interfere with Tenant's use of the Premises, (b) in Landlord's judgment would materially interfere with or impair its ownership or operation of the Project or (c) as a result of such Taking, Landlord's mortgagee accelerates the payment of any indebtedness securing all or a portion of the Project, then upon written notice by Landlord this Lease shall terminate and Base Rent shall be apportioned as of said date. If part of the Premises shall be Taken, and this Lease is not terminated as provided above, the Base Rent payable hereunder during the unexpired Lease Term shall be reduced to such extent as may be fair and reasonable under the circumstances, and Landlord shall restore the Premises as near as reasonably attainable to its condition prior to the Taking; provided, however, Landlord's obligation to so restore the Premises shall be limited to the award Landlord receives in respect of such Taking that is not required to be applied to the indebtedness secured by a mortgage. In the event of any such Taking, Landlord shall be entitled to receive the entire price or award from any such Taking without any payment to Tenant, and Tenant hereby assigns to Landlord Tenant's interest, if any, in such award, including, without limitation any award for a Taking of Tenant's leasehold interest hereunder. Tenant shall have the right, to the extent that same shall not diminish Landlord's award, to make a separate claim against the condemning authority (but not Landlord) for such compensation as may be separately awarded or recoverable by Tenant for moving expenses and damage to Tenant's Trade Fixtures, if a separate award for such items is made to Tenant. This paragraph shall be Tenant's sole and exclusive remedy in the event of any taking and Tenant hereby waives any rights and the benefits of any statute granting Tenant specific rights in the event of a Taking which are inconsistent with the provisions of this Paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **<u>Assignment and Subletting</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Without Landlord's prior written consent, which consent shall not be unreasonably withheld, conditioned, or delayed, Tenant shall not assign this Lease or sublease the Premises or any part thereof or mortgage, pledge, or hypothecate its leasehold interest or grant any concession or license within the Premises (each being a "**<u>Transfer</u>**") and any attempt to do any of the foregoing shall be void and of no effect. For purposes of this Paragraph 17, a transfer of the ownership interests controlling Tenant shall be deemed a Transfer of this Lease unless such ownership interests are publicly traded. Notwithstanding the above, Tenant may assign or sublet the Premises, or any part thereof, to any entity controlling Tenant, controlled by Tenant or under common control with Tenant (a "**<u>Tenant Affiliate</u>**"), without the prior written consent of Landlord; provided, however, Tenant shall provide at least ten (10) days written notice prior to assigning this Lease to, or entering into any sublease with, any Tenant Affiliate and the Tenant Affiliate must have a net worth (calculated in accordance with generally accepted accounting principles, consistently applied) greater than or equal to that of Tenant as of the date of this Lease. Tenant shall reimburse Landlord for all of Landlord's reasonable out-of-pocket expenses in connection with any Transfer, other than to a Tenant Affiliate (not to exceed $2,000.00 per Transfer, but such limitation of fees shall only apply to the extent such Transfer is in the ordinary course of business. Landlord and Tenant hereby agree that a proposed Transfer shall not be considered "in the ordinary course of business" if such Transfer involves the review of documentation by Landlord on more than two (2) occasions). Upon Landlord's receipt of Tenant's written notice of a desire to assign or sublet the Premises, or any part thereof (other than to a Tenant Affiliate), Landlord may, by giving written notice to Tenant (a "**<u>Recapture Notice</u>**") within thirty (30) days after receipt of Tenant's notice, terminate this Lease with respect to the space described in Tenant's notice, as of the date specified in Tenant's notice for the commencement of the proposed assignment or sublease (provided, however, Tenant may retract its request to assign or sublease by delivering written notice of such retraction to Landlord within five (5) days following the date of Landlord's Recapture Notice, in which event such Recapture Notice shall be null and void). Tenant acknowledges and agrees that Landlord may withhold its consent to any proposed assignment or subletting for any reasonable basis including, but not limited to: (1) Tenant is in default of this Lease; (ii) the assignee or subtenant is unwilling to assume in writing all of Tenant's obligations hereunder; (iii) the assignee or subtenant has a financial condition which is reasonably unsatisfactory to Landlord or Landlord's mortgagee; (iv) the Premises will be used for different purposes than those set forth in Paragraph 3(a) or for a use requiring or generating Hazardous Materials, or (v) the proposed assignee or subtenant or an affiliate thereof is an existing tenant in the Project or is or has been in discussions with Landlord regarding leasing space within the Project and Landlord currently has available space within the Project that meets the real estate requirements of such proposed assignee or subtenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any Transfer, Tenant and any guarantor or surety of Tenant's obligations under this Lease shall at all times remain fully responsible and liable for the payment of the rent and for compliance with all of Tenant's other obligations under this Lease (regardless of whether Landlord's approval has been obtained for any such Transfer). In the event that the rent due and payable by a sublessee or assignee (or a combination of the rental payable under such sublease or assignment plus any bonus or other consideration therefor or incident thereto) exceeds the rental payable under this Lease, then Tenant shall be bound and obligated to pay Landlord as additional rent hereunder all such excess rental and other excess consideration within ten (10) days following receipt thereof by Tenant. If such Transfer is for less than all of the Premises, such excess rental and other excess consideration shall be calculated on a rentable square foot basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If this Lease is assigned or if the Premises is subleased (whether in whole or in part) or in the event of the mortgage, pledge, or hypothecation of Tenant's leasehold interest or grant of any concession or license within the Premises or if the Premises be occupied in whole or in part by anyone other than Tenant, then upon a default by Tenant hereunder Landlord may collect rent from the assignee, sublessee, mortgagee, pledgee, party to whom the leasehold interest was hypothecated, concessionee or licensee or other occupant and, except to the extent set forth in the preceding subparagraph, apply the amount collected to the next rent payable hereunder; and all such rentals collected by Tenant shall be held in trust for Landlord and immediately forwarded to Landlord. No such transaction or collection of rent or application thereof by Landlord, however, shall be deemed a waiver of these provisions or a release of Tenant from the further performance by Tenant of its covenants, duties, or obligations hereunder. Any approved assignment or sublease shall be expressly subject to the terms and conditions of this Lease. Landlord's consent to any Transfer shall not waive Landlord's rights as to any subsequent Transfers. Notwithstanding anything to the contrary contained in this Lease, if Tenant or any proposed transferee claims that Landlord has unreasonably withheld or delayed its consent under this Paragraph 17 or otherwise has breached or acted unreasonably under this Paragraph 17, their sole remedies shall be a declaratory judgment and an injunction for the relief sought without any monetary damages, and Tenant hereby waives all other remedies, including, without limitation, any right at law or equity to terminate this Lease, on its own behalf and, to the extent permitted under all applicable laws, on behalf of the proposed transferee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **<u>Indemnification</u>**. Tenant agrees to indemnify, defend (with counsel reasonably acceptable to Landlord) and hold harmless Landlord, and Landlord's agents, employees and contractors, from and against any and all claims, demands, losses, liabilities, causes of action, suits, judgments, damages, costs and expenses (including attorneys' fees) (collectively, "**<u>Claims</u>**"), arising from any occurrence in or about the Premises, the use and occupancy of the Premises, or from any activity, work, or thing done, permitted or suffered by Tenant, its agents, employees, contractors, shareholders, partners, invitees, subtenants or assignees in or about the Premises or due to any other act or omission of Tenant, its subtenants, assignees, invitees, employees, contractors and agents, or from Tenant's failure to perform its obligations under this Lease (other than, in each case, any loss to the extent arising from the gross negligence or willful misconduct of Landlord or its agents, contractors or employees). This indemnity provision shall survive termination or expiration of this Lease to the extent any Claim (or the circumstances or actions that give rise to such Claim) arises, accrues or occurs during the Lease Term or any holdover period (or any period of access or occupancy prior to the Commencement Date, if any). The furnishing of insurance required hereunder shall not be deemed to limit Tenant's obligations under this Paragraph 18. Landlord shall not be liable to Tenant, and Tenant hereby waives all Claims against Landlord and the other indemnified parties, for any damages arising from any act, omission or neglect of any other tenant in the Project and in no event shall Landlord or any of the other indemnified parties be liable for any injury or interruption to Tenant's business or any loss of income therefrom under any circumstances and neither Landlord nor any of the other indemnified parties shall be liable for any indirect or consequential losses or damages suffered by Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **<u>Inspection and Access</u>**. Landlord and its agents, representatives, and contractors may enter the Premises at any reasonable time (upon not less than 24-hours advance oral or written notice, except in the case of an emergency in which case no notice shall be required) to inspect the Premises and to make such repairs as may be required or permitted pursuant to this Lease and for any other business purpose. Landlord and Landlord's representatives may enter the Premises during business hours for the purpose of showing the Premises to prospective purchasers or, during the last year of the Lease Term, to prospective tenants. Landlord may erect a suitable sign on the Premises stating the Premises are available to let or that the Project is available for sale. Landlord may grant easements, make public dedications, designate common areas and create restrictions on or about the Premises, provided that no such easement, dedication, designation or restriction materially interferes with Tenant's use or occupancy of the Premises, materially increases the Operating Expenses due under this Lease, or materially reduces Tenant's rights, or materially increases Tenant's obligations, under this Lease. At Landlord's request, Tenant shall execute such instruments as may be necessary for such easements, dedications or restrictions, provided that such instruments do not materially and adversely impact Tenant's rights or obligations under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **<u>Quiet Enjoyment</u>**. If Tenant shall perform all of the covenants and agreements herein required to be performed by Tenant, Tenant shall, subject to the terms of this Lease, any ground lease, mortgage or deed of trust now or hereafter encumbering the Premises and all matters of record, at all times during the Lease Term, have peaceful and quiet enjoyment of the Premises against any person claiming by, through or under Landlord, but not otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. **<u>Surrender</u>**. No act by Landlord shall be an acceptance of a surrender of the Premises, and no agreement to accept a surrender of the Premises shall be valid unless it is in writing and signed by Landlord. Upon termination of the Lease Term or earlier termination of Tenant's right of possession, Tenant shall surrender the Premises to Landlord in the same condition as received, broom clean, ordinary wear and tear and casualty loss and condemnation covered by Paragraphs 15 and 16 excepted. Tenant shall give written notice to Landlord at least thirty (30) days prior to vacating the Premises and shall meet with Landlord for a joint inspection of the Premises at the time of vacating. In the event of Tenant's failure to give such notice or to participate in such joint inspection, Landlord's inspection shall be deemed conclusive for purposes of determining Tenant's responsibility for repairs and restoration. No such performance by Landlord shall create any liability on the part of Landlord whatsoever. Any Trade Fixtures, Tenant-Made Alterations and property (including, without limitation, the items of property listed on <u>Exhibit C</u> attached hereto) not so removed by Tenant as permitted or required herein shall be deemed abandoned and may be stored, removed, and disposed of by Landlord at Tenant's expense, and Tenant waives all claims against Landlord for any damages resulting from Landlord's retention and disposition of such property. All obligations of Tenant hereunder not fully performed as of the termination of the Lease Term shall survive the termination of the Lease Term, including without limitation, indemnity obligations, payment obligations with respect to Operating Expenses and all obligations concerning the condition and repair of the Premises. If Tenant fails to perform any obligation prior to the expiration or earlier termination of this Lease, Landlord may, but shall not be obligated to, perform such obligation and Tenant shall pay Landlord all costs associated therewith, plus an administrative fee of 15% of such costs, promptly upon Landlord's delivery to Tenant of an invoice therefor, and any time required by Landlord to complete such obligations shall be considered a period of holding over and the terms of Paragraph 22 shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. **<u>Holding Over</u>**. If Tenant fails to vacate the Premises after the termination of the Lease Term, Tenant shall be, at Landlord's sole election, a tenant at will or at sufferance, and Tenant shall pay, in addition to any other rent or other sums then due Landlord, base rental equal to the greater of (a) 150% of the Base Rent in effect on the expiration or termination date, or (b) 125% of the prevailing market rate for similar space in the market in which the Premises are located, computed on a monthly basis for each month or part thereof during such holdover, even if Landlord consents to such holdover (which consent shall be effective only if in writing). All other payments shall continue under the terms of this Lease. Tenant shall also be liable for all Operating Expenses incurred during such holdover period. In addition, Tenant shall be liable for all damages (including attorneys' fees and expenses) of whatever type (including consequential damages) incurred by Landlord as a result of such holding over. No holding over by Tenant, whether with or without consent of Landlord, shall operate to extend this Lease except as otherwise expressly provided, and this Paragraph 22 shall not be construed as consent for Tenant to retain possession of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. **<u>Events of Default</u>**. Each of the following events shall be an event of default ("**<u>Event of Default</u>**") by Tenant under this Lease:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Tenant shall fail to pay any installment of Base Rent or any other payment required herein when due, and such failure shall continue for a period of five (5) days after written notice that such payment was not received as and when due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Tenant or any guarantor or surety of Tenant's obligations hereunder shall (i) make a general assignment for the benefit of creditors; (ii) commence any case, proceeding or other action seeking to have an order for relief entered on its behalf as a debtor or to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, liquidation, dissolution or composition of it or its debts or seeking appointment of a receiver, trustee, custodian or other similar official for it or for all or of any substantial part of its property (collectively a "**<u>proceeding for relief</u>**"); (iii) become the subject of any proceeding for relief which is not dismissed within sixty (60) days of its filing or entry; or (iv) die or suffer a legal disability (if Tenant, guarantor, or surety is an individual) or be dissolved or otherwise fail to maintain its legal existence (if Tenant, guarantor or surety is a corporation, partnership or other entity).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any insurance required to be maintained by Tenant pursuant to this Lease shall be canceled or terminated or shall expire or shall be reduced or materially changed, except, in each case, as permitted in this Lease (and Tenant fails to obtain new coverage, effective retroactively to the date of termination or cancellation of the prior policy, within five (5) business days following its receipt of written notice from either Landlord or the applicable insurance carrier).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Intentionally Omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Tenant shall attempt or there shall occur any assignment, subleasing or other transfer of Tenant's interest in or with respect to this Lease except as otherwise permitted in this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Tenant shall fail to discharge or bond over any lien placed upon the Premises in violation of this Lease within thirty (30) days after any such lien or encumbrance is filed against the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Tenant shall fail to execute any instrument of subordination or attornment or any estoppel certificate within the time periods set forth in Paragraphs 27 and 29 respectively following Landlord's request for the same and such failure shall continue for a period of ten (10) days or more after a second (2<sup>nd</sup>) notice from Landlord to Tenant, so long as such second (2<sup>nd</sup>) notice contains a caption, bolded and in at least 18-point font that states "**YOUR FAILURE TO RESPOND TO THIS REQUEST WITHIN TEN (10) DAYS WILL CAUSE AN EVENT OF DEFAULT UNDER SECTION 23(G) OF YOUR LEASE.**"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Tenant shall breach any of the requirements of Paragraph 30 and such failure shall continue for a period of five (5) days or more after notice from Landlord to Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Tenant shall fail to comply with any provision of this Lease other than those specifically referred to in this Paragraph 23, and except as otherwise expressly provided herein, such default shall continue for more than thirty (30) days after Landlord shall have given Tenant written notice of such default; provided, however, that if the nature of Tenant's obligation under this subsection (i) is such that more than thirty (30) days are reasonably required for performance, then Tenant shall not be in default under this subsection (i) if Tenant promptly commences performance within such thirty (30) day period and thereafter diligently prosecutes the same to completion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The failure of Tenant or Tenant's employees, agents or representatives to observe or comply with any of the rules and regulations of the Project as the same may be amended from time to time, and such failure shall continue for five (5) days or more after written notice from Landlord to Tenant; provided, however, that if Tenant or Tenant's employees, agents or representatives shall breach the same rule or regulation more than two (2) times in any twelve (12) month period, then the third (3rd) such violation shall be deemed an Event of Default (without any notice).

Any notices to be provided by Landlord under this Paragraph 23 shall be in lieu of, and not in addition to, any other notice required under applicable Utah law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. **<u>Landlord's Remedies</u>**. Upon the occurrence of any default. Landlord shall have the following rights and remedies, in addition to those allowed by law or in equity, any one or more of which may be exercised or not exercised without precluding the Landlord from exercising any other remedy provided in this Lease or otherwise allowed by law or in equity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Termination of Lease</u>**. Landlord may terminate this Lease and Tenant's right to possession of the Premises. If Tenant has abandoned and vacated the Premises, the mere entry of the Premises by Landlord in order to perform acts of maintenance, cure defaults, preserve the Premises or to attempt to relet the Premises, or the appointment of a receiver in order to protect the Landlord's interest under this Lease, shall not be deemed a termination of Tenant's right to possession or a termination of this Lease unless Landlord has notified Tenant in writing that this Lease is terminated. Notification of any default described in Paragraph 23 of this Lease shall be in lieu of, and not in addition to, any other notice required under Utah law. If Landlord terminates this Lease and Tenant's right to possession of the Premises, Landlord may recover from Tenant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The worth at the time of the award of unpaid rent which had been earned at the time of termination; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The worth at the time of the award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The worth at the time of the award of the amount by which the unpaid rent for the balance of the Lease Term after the time of the award exceeds the amount of such rental loss that Tenant proves could be reasonably avoided; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Any other amounts necessary to compensate the Landlord for all of the detriment proximately caused by Tenant's failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, including any legal expenses, brokers commissions or finders fees (in connection with reletting the Premises and the pro rata portion of any leasing commission paid by Landlord in connection with this Lease which is applicable to the portion of the Lease Term, including option periods, which is unexpired as of the date on which this Lease terminated), the costs of repairs, cleanup, refurbishing, removal and storage or disposal of Tenant's personal property, equipment, fixtures and anything else that Tenant is required under this Lease to remove but does not remove (including those alterations which Tenant is required to remove pursuant to an election by Landlord and Landlord actually removes whether notice to remove shall be delivered to Tenant), and any costs for alterations, additions and renovations incurred by Landlord in regaining possession of and reletting (or attempting to relet) the Premises. Tenant shall also reimburse Landlord for the pro rata portion of leasehold improvement costs paid by Landlord to install leasehold improvements on the Premises which is applicable to that portion of the Lease Term including any terminated option periods which is unexpired as of the date on which this Lease terminated, discounted to present value.

All computations of the "worth at the time of the award" of amounts recoverable by Landlord under (1) and (2) hereof shall be computed by allowing interest at the maximum lawful contract rate per annum. The "worth at the time of the award" recoverable by Landlord under (3) and the discount rate for purposes of determining any amounts recoverable under (4), if applicable, shall be computed by discounting the amount recoverable by Landlord at the discount rate of the Federal Reserve Bank, San Francisco, California, at the time of the award plus one percent (1%).

Upon termination of this Lease, whether by lapse of time or otherwise, Tenant shall immediately vacate the Premises and deliver possession to Landlord, and Landlord shall have the right to re-enter the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Lease to Remain in Effect</u>**. Notwithstanding Landlord's right to terminate this Lease, Landlord may, at its option, even though Tenant has breached this Lease and abandoned the Premises, continue this Lease in full force and effect and not terminate Tenant's right to possession, and enforce all of Landlord's rights and remedies under this Lease. In such event, Landlord may continue the Lease in effect after Tenant's breach and abandonment and recover rent as it becomes due. Further, in such event Landlord shall be entitled to recover from Tenant all costs of maintenance and preservation of the Premises, and all costs, including attorneys' fees and receivers' fees, incurred in connection with appointment of and performance by a receiver to protect the Premises and Landlord's interest under this Lease. No re-entry or taking possession of the Premises by Landlord shall be construed as an election to terminate this Lease unless a notice (signed by a duly authorized representative of Landlord) of intention to terminate this Lease is given to Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>All Sums Collectible as Rent</u>**. All sums due and owing to Landlord by Tenant under this Lease shall be collectible by Landlord as rent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>No Surrender</u>**. No act or omission by Landlord or its agents during the Lease Term shall be an acceptance of a surrender of the Premises, and no agreement to accept a surrender of the Premises shall be valid unless made in writing and signed by a duly authorized representative of Landlord. Landlord shall be entitled to a restraining order or injunction to prevent Tenant from defaulting under any of its obligations other than the payment of rent or other sums due hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **<u>Effect of Termination</u>**. Neither the termination of this Lease nor the exercise of any remedy under this Lease or otherwise available at law or in equity shall affect Landlord's right of indemnification set forth in this, Lease or otherwise available at law or in equity for any act or omission of Tenant, and all rights to indemnification and other obligations of Tenant intended to be performed after termination of this Lease shall survive termination of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. **<u>Tenant's Remedies/Limitation of Liability</u>**. Landlord shall not be in default hereunder unless Landlord fails to perform any of its obligations hereunder within thirty (30) days after written notice from Tenant specifying such failure (unless such performance will, due to the nature of the obligation, require a period of time in excess of thirty (30) days, then after such period of time as is reasonably necessary so long as Landlord commences such cure within thirty (30) days after written notice from Tenant and diligently pursues such cure to completion). All obligations of Landlord hereunder shall be construed as covenants, not conditions; and Tenant may not terminate this Lease for breach of Landlord's obligations hereunder. Tenant hereby waives the benefit of any laws granting it the right to perform Landlord's obligations or the right to terminate this Lease or withhold rent on account of any Landlord default. All obligations of Landlord under this Lease will be binding upon Landlord only during the period of its ownership of the Premises and not thereafter. The term "Landlord" in this Lease shall mean only the owner, for the time being of the Premises, and in the event of the transfer by such owner of its interest in the Premises, such owner shall thereupon be released and discharged from all obligations of Landlord thereafter accruing, but such obligations shall be binding during the Lease Term upon each new owner for the duration of such owner's ownership. Notwithstanding the foregoing, Landlord will remain liable to Tenant for any obligations to Tenant that arose and accrued during Landlord's period of ownership and that were not assumed (in writing, by operation of law or otherwise) by the subsequent owner or transferee. Any liability of Landlord (and its partners, shareholders or members) to Tenant (or any person or entity claiming by, through or under Tenant) for any default by Landlord under this Lease or arising out of the relationship between Landlord and Tenant shall be limited solely to Tenant's actual direct, but not consequential, damages therefor and shall be recoverable only from Landlord's equity interest in the Building (including all rent, sale proceeds, insurance proceeds, condemnation awards and other proceeds and income derived therefrom), and in no event shall any personal liability be asserted against Landlord, its partners, shareholders, members, directors, employees or agents in connection with this Lease nor shall any recourse be had to any other property or assets of Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. **<u>Waiver of Jury Trial</u>**. TO THE FULLEST EXTENT PERMITTED BY LAW, TENANT AND LANDLORD WAIVE ANY RIGHT TO TRIAL BY JURY OR TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, BETWEEN LANDLORD AND TENANT ARISING OUT OF THIS LEASE OR ANY OTHER INSTRUMENT, DOCUMENT, OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED HERETO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. **<u>Subordination</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Lease and Tenant's interest and rights hereunder are and shall be subject and subordinate at all times to the lien of any deed of trust or mortgage or any ground lease, now existing or hereafter created on or against the Project or the Premises, and all amendments, restatements, renewals, modifications, consolidations, refinancing, assignments and extensions thereof, without the necessity of any further instrument or act on the part of Tenant. Notwithstanding the foregoing, the subordination of this Lease to the lien of any deed of trust, mortgage or ground lease shall be subject to Tenant's receipt of a subordination, non-disturbance and attornment agreement from the holder of such lien (on the standard form of such holder, subject to commercially reasonable modifications agreed upon by Tenant and such holder). Tenant agrees, at the election of the holder of any such mortgage, to attorn to any such holder. The provisions of this Paragraph 27 shall be self-operative and no further instrument shall be required to effect such subordination or attornment; however, Tenant agrees to execute, acknowledge and deliver such instruments, confirming such subordination and such instruments of attornment as shall reasonably be requested by any such holder within ten (10) business days of such request. Tenant's obligation to furnish each such instrument requested hereunder in the time period provided is a material inducement for Landlord's execution of this Lease and any failure of Tenant to timely deliver each instrument shall, so long as Tenant has received a subordination, non-disturbance and attornment agreement from the holder of the lien, act as an appointment by Tenant of Landlord as attorney in fact for Tenant (such power of attorney being coupled with an interest) to execute, acknowledge and deliver a subordination instrument for and in the name of the Tenant and to cause any such instrument to be recorded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, any such holder may at any time subordinate its mortgage to this Lease, without Tenant's consent, by notice in writing to Tenant, and thereupon this Lease shall be deemed prior to such mortgage without regard to their respective dates of execution, delivery or recording and in that event such holder shall have the same rights with respect to this Lease as though this Lease had been executed prior to the execution, delivery and recording of such mortgage and had been assigned to such holder. The term "**<u>mortgage</u>**" whenever used in this Lease shall be deemed to include deeds of trust, security assignments and any other encumbrances, and any reference to the "**<u>holder</u>**" of a mortgage shall be deemed to include the beneficiary under a deed of trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Tenant shall not seek to enforce any remedy it may have for any default on the part of Landlord without first giving written notice by certified mail, return receipt requested, specifying the default in reasonable detail to any mortgage holder whose address has been given to Tenant, and affording such mortgage holder a reasonable opportunity to perform Landlord's obligations hereunder. Notwithstanding any such attornment or subordination of a mortgage to this Lease, the holder of any mortgage shall not be liable for any acts of any previous landlord, shall not be obligated to install any tenant improvements, and shall not be bound by any amendment.to which it did not consent in writing nor any payment of rent made more than one month in advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. **<u>Mechanic's Liens</u>**. Tenant has no express or implied authority to create or place any lien or encumbrance of any kind upon, or in any manner to bind the interest of Landlord or Tenant in, the Premises or to charge the rentals payable hereunder for any claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor for any construction or repairs. Landlord may record, at its election, notices of non-responsibility pursuant to applicable law in connection with any work performed by Tenant. Tenant covenants and agrees that it will pay or cause to be paid all sums legally due and payable by it on account of any labor performed or materials furnished in connection with any work performed on the Premises and that it will save and hold Landlord harmless from all loss, cost or expense based on or arising out of asserted claims or liens against the leasehold estate or against the interest of Landlord in the Premises or under this Lease. Tenant shall give Landlord immediate written notice of the placing of any lien or encumbrance against the Premises and cause such lien or encumbrance to be discharged within thirty (30) days of the filing or recording thereof; provided, however, Tenant may contest such liens or encumbrances as long as such contest prevents foreclosure of the lien or encumbrance and Tenant causes such lien or encumbrance to be bonded or insured over in a manner satisfactory to Landlord within such thirty (30) day period. Without limiting any other rights or remedies of Landlord, if Tenant fails for any reason to cause a lien or encumbrance to be discharged within thirty (30) days of the filing or recording thereof, then Landlord may take such action(s) as it deems necessary to cause the discharge of the same (including, without limitation, by paying any amount demanded by the party who has filed or recorded such lien or encumbrance, regardless of whether the same is in dispute), and Landlord shall be reimbursed by Tenant for all costs and expenses incurred by Landlord in connection therewith within five (5) business days following written demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. **<u>Estoppel Certificates</u>**. Tenant agrees, from time to time, within ten (10) business days after request of Landlord, to execute and deliver to Landlord, or Landlords designee, any estoppel certificate requested by Landlord, stating that this Lease is in full force and effect, the date to which rent has been paid, that Landlord is not in default hereunder (or specifying in detail the nature of Landlord's default), the termination date of this Lease and such other matters pertaining to this Lease as may be requested by Landlord. Tenant's obligation to furnish each estoppel certificate in a timely fashion is a material inducement for Landlord's execution of this Lease. If Tenant fails to execute and deliver the estoppel certificate within ten (10) days after Landlord's written request thereof, Tenant shall be deemed to have appointed Landlord as its attorney in fact to execute on its behalf and in its name an estoppel certificate stating: (i) that the terms and provisions of this Lease have not been changed, or stating the particulars of any amendment to this Lease executed by Tenant; (ii) that this Lease has not been cancelled or terminated; (iii) that not more than one month's Rent has been paid in advance; and (iv) that there is no existing Event of Default under the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30. **<u>Environmental Requirements</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Tenant has fully and accurately completed Landlord's Pre-Leasing Environmental Questionnaire ("**<u>Environmental Questionnaire</u>**") attached hereto as Exhibit D and incorporated herein by reference. Tenant hereby represents, warrants and covenants that except for those chemicals or materials, and their respective quantities listed on the Environmental Questionnaire, Tenant will not use, store or generate any "Hazardous Materials" (as defined below) in, on, under or about the Premises and/or Project. Tenant further represents, warrants and covenants that except for those chemicals and materials, and their respective quantities listed on the Environmental Questionnaire, Tenant shall not cause or permit any Hazardous Materials to be brought upon, placed, stored, manufactured, generated, blended, handled, recycled, disposed of, used or released on, in, under or about the Premises and/or Project by Tenant or its agents, employees, contractors, subcontractors, subtenants, assigns or invitees. Tenant shall keep, operate and maintain the Premises in full compliance with all Environmental Requirements (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The term "**<u>Environmental Requirements</u>**" means all applicable present and future statutes, regulations, ordinances, rules, codes, judgments, permits, authorizations, orders, policies or other similar requirements of any governmental authority, agency or court regulating or relating to health, safety, or environmental conditions on, under, or about the Premises or the environment, including without limitation, the following: the Comprehensive Environmental Response, Compensation and Liability Act; the Resource Conservation and Recovery Act; the Clean Air Act; the Clean Water Act; the Toxic Substances Control Act and all state and local counterparts thereto, and any common or civil law obligations including, without limitation, nuisance or trespass, and any other requirements of Paragraphs 3 and 31 of this Lease. The term "**<u>Hazardous Materials</u>**" means and includes any substance, material, waste, pollutant, or contaminant that is or could be regulated under any Environmental Requirement or that may adversely affect human health or the environment, including, without limitation, any solid or hazardous waste, hazardous substance, asbestos, petroleum (including crude oil or any fraction thereof, natural gas, synthetic gas, polychlorinated biphenyls (PCBs), and radioactive material). For purposes of Environmental Requirements, to the extent authorized by law, Tenant is and shall be deemed to be the responsible party, including without limitation, the "owner" and "operator" of Tenant's "facility" and the "owner" of all Hazardous Materials brought on the Premises by Tenant, its agents, employees, contractors or invitees, and the wastes, by-products, or residues generated, resulting, or produced therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Without limiting the generality of Tenant's obligation to comply with laws as otherwise provided in this Lease, Tenant shall, at its sole cost and expense, comply with all present and future Environmental Requirements. Tenant shall obtain and maintain any and all necessary government permits, licenses, certifications and approvals appropriate or required for the use, handling, storage, and disposal of any Hazardous Materials used, stored, generated, transported, handled, blended, or recycled by Tenant on the Premises or Project. Landlord shall have a continuing right, without obligation, to require Tenant to obtain, and to review and inspect any and all such permits, licenses, certifications and approvals, together with copies of any and all Hazardous Materials management plans and programs, any and all Hazardous Materials risk management and pollution prevention programs, and any and all Hazardous Materials emergency response and employee training programs respecting Tenant's use of Hazardous Materials. Upon request of Landlord, Tenant shall deliver to Landlord, a narrative description explaining the nature and scope of Tenant's activities involving Hazardous Materials and showing to Landlord's satisfaction compliance with all Environmental Requirements and the terms of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Unless Tenant is required by law to give earlier notice to Landlord, Tenant shall notify Landlord in writing as soon as possible but in no event later than five (5) days after (1) the occurrence of any spill, discharge, leak, seep or any other release of any Hazardous Material on, under, from or about the Premises or Project, regardless of the quantity of any such spill, discharge, leak, seep or release of Hazardous Material, or (2) Tenant becomes aware of any regulatory inquiries, inspections, investigations, directives, or any cleanup, compliance or abatement proceedings (including any threatened or potential investigations or proceedings), or claims by any third parties relating to any Hazardous Materials in, on, under, from or about the Project or Premises, Landlord shall have the right to appear at and participate in, any and all legal or other administrative proceedings concerning the release of any Hazardous Materials on, under, from or about the Premises or Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If any spill, discharge, leak, seep or any other release of any Hazardous Material on, under, from or about the Premises or Project shall occur, in addition to notifying Landlord as specified herein, Tenant, at its own sole cost and expense, shall (1) immediately comply with any and all reporting requirements imposed pursuant to any and all Environmental Requirements, (2) provide a written certification to Landlord indicating that Tenant has complied with all applicable reporting requirements, (3) take any and all necessary investigation, corrective and remedial action in accordance with any and all applicable Environmental Requirements, utilizing an environmental consultant approved by Landlord, and (4) take any such additional investigative, remedial and corrective actions as Landlord shall in its sole discretion deem necessary. Landlord may, as required by any and all Environmental Requirements, report the unauthorized spill, discharge, leak, seep or any other unauthorized release of any Hazardous Material to the appropriate regulatory agencies identifying the Tenant as the responsible party. Tenant shall deliver to Landlord copies of all administrative orders, notices, demands, directives or other communications directed to Tenant from any governmental authority in respect of any release, discharge, or spill of any Hazardous Material on, under, from, or about the Premises or Project, together with copies of all investigation, assessment, and remediation plans and reports prepared by or on behalf of Tenant in response to any such regulatory order or directive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Landlord shall have access to, and a right to perform inspections and tests of, the Premises to determine Tenant's compliance with Environmental Requirements, its obligations under this Paragraph 30, or the environmental condition of the Premises. Access shall be granted to Landlord upon Landlord's prior notice to Tenant and at such times so as to minimize, so far as may be reasonable under the circumstances, any disturbance to Tenant's operations. Such inspections and tests shall be conducted at Tenant's expense. Landlord's receipt of or satisfaction with any environmental assessment in no way waives any rights that Landlord holds against Tenant. Without limiting the foregoing, Landlord may separately engage its own environmental consultant or consultants at Tenant's expense to investigate and advise Landlord respecting any release, discharge, or spill of Hazardous Materials on, under, from, or about the Premises or Project, or to independently investigate any regulatory inquiries, directives, or investigations regarding Tenant's use, handling, storage, or disposal of Hazardous Materials. Landlord may, by written notice to Tenant, declare any such release, discharge, spill, of Hazardous Materials on, under, from, or about the Premises or Project, regardless of the quantity of any such release, discharge or spill, to be a material breach of this Lease by Tenant, which Tenant shall not have the right to cure. Landlord may, by written notice to Tenant, separately declare any improper use, storage, handling or disposal of Hazardous Materials on or about the Premises or Project, to be a separate material breach of this Lease by Tenant, which Tenant shall not have the right to cure. Tenant shall not conduct any invasive environmental testing or investigation (including, without limitation, any testing of any soils) on or about the Project without obtaining Landlord's prior written consent, and any investigations or remediation on or about the Project shall be conducted only by a consultant approved in writing by Landlord and pursuant to a work letter approved in writing by Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding anything to the contrary contained herein, Landlord shall have the right (but not the obligation) to enter upon the Premises and cure any non-compliance by Tenant with the terms of this Paragraph 30 or any Environmental Requirements or any release, discharge, spill, improper use, storage, handling or disposal of Hazardous Materials on, under, from, or about the Premises or Project, regardless of the quantity of any such release, discharge, spill, improper use, storage, handling or disposal of Hazardous Materials on or about the Premises or Project, the full cost of which shall be deemed to be rent and shall be due and payable by Tenant to Landlord immediately upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) If Landlord shall determine, in its sole discretion, that the use, storage, handling or disposal by Tenant of Hazardous Materials in, on or about the Project shall cause an undue risk of damage or harm to the Premises or Project, to the environment, to adjacent properties, or possible injury or disease to other tenants or other persons coming onto the Project or Premises, or any potential liability to the Landlord arising out of the use, storage, handling or disposal by Tenant of Hazardous Materials, then without prior notice to Tenant or opportunity of Tenant to cure, Landlord may (I) revoke or modify any consent previously given by Landlord allowing the use, storage, handling or disposal by Tenant of Hazardous Materials listed on the Hazardous Materials List, in which case Tenant shall immediately cease the use, storage, handling or disposal of such Hazardous Materials on the Premises or Project, and/or (2) upon sixty (60) days' prior written notice to Tenant, Landlord may elect to terminate this Lease without further liability to Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If any information provided to Landlord by Tenant on the Hazardous Materials List, or otherwise relating to information concerning Hazardous Materials is false, incomplete, or misleading in any material respect, the same shall be deemed an event of default by Tenant under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Upon termination of this Lease, Tenant, at its own cost and expense, shall cause any and all Hazardous Materials stored on, under, upon or about the Premises or Project to be removed in a manner and to a level satisfactory to Landlord in its sole discretion, but in no event to a level and in a manner less than that which complies with all Environmental Requirements and does not limit any future uses of the Premises or Project or require the recording of any deed restriction or notice regarding the Premises or Project. Upon prior notice and approval by the Landlord, Tenant shall, at its own cost and expense and in compliance with all Environmental Requirements, remove any contaminated equipment, furnishings, and fixtures from the Premises including any and all Hazardous Materials storage containers and facilities from the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Without limiting in any way Tenant's obligations under any other provision of this Lease, Tenant and its successors and assigns shall indemnify, protect, defend and hold Landlord, its partners, officers, directors, shareholders, employees, agents, lenders, contractors and each of their respective successors and assigns (collectively, the "**<u>Indemnified Parties</u>**") harmless from any and all claims, judgments, damages, penalties, enforcement actions, taxes, fines, remedial actions, liabilities, losses, costs and expenses (including, without limitation, actual attorneys' fees, litigation, arbitration and administrative proceeding costs, expert and consultant fees and laboratory costs) including, without limitation, damages arising out of the diminution in the value of the Premises or Project or any portion thereof, damages for the loss of the Premises or Project, damages arising from any adverse impact on the marketing of space in the Premises or Project, and sums paid in settlement of claims, which arise during or after the Lease Term in whole or in part as a result of the presence or suspected presence of any Hazardous Materials, in, on, under, from or about the Premises or the. Project and/or other adjacent properties due to the activities, or failures to act (including, without limitation, Tenant's failure to report any spill or release to the appropriate regulatory agencies) of Tenant or its agents, employees, contractors, shareholders, partners, invitees, subtenants or assignees, on or about the Premises or Project. The obligations of Tenant under this Paragraph 30 shall survive any termination of this Lease. Notwithstanding the foregoing, Tenant shall not be responsible to indemnify or defend Landlord under this Paragraph 30 for Hazardous Materials which are present in the Premises or Project as of the date of this Lease, or which are brought upon the Premises or the Building by Landlord or its agents or contractors (collectively, "**Landlord's Hazardous Materials**"), unless and to the extent any of such Landlord's Hazardous Materials are generated, used or transported, or knowingly or negligently exacerbated, released or disturbed, by Tenant or its agents, employees, contractors, subtenants, assignees, licensees or invitees (in which event the terms and conditions of this Paragraph 30, including with respect to indemnification, removal and remediation, shall remain applicable to Tenant).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Tenant shall at all times ensure that a secondary containment system is in place for all waste generated by Tenant's use of Hazardous Materials on, in or about the Premises and shall cause all such waste to be disposed of from the Premises in accordance with Environmental Requirements within 90 days of generation thereof. Tenant shall perform routine general housekeeping to minimize the threat of any violation of Environmental Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31. **<u>Rules and Regulations</u>**. Tenant shall, at all times during the Lease Term and any extension thereof, comply with all reasonable rules and regulations at any time or from time to time established by Landlord covering use of the Premises and the Project. The current rules and regulations are attached hereto. In the event of any conflict between said rules and regulations and other provisions of this Lease, the other terms and provisions of this Lease shall control. Landlord shall not have any liability or obligation for the breach of any rules or regulations by other tenants in the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32. **<u>Security Service</u>**. Tenant acknowledges and agrees that, while Landlord may (but shall not be obligated to) patrol the Project, Landlord is not providing any security services with respect to the Premises and that Landlord shall not be liable to Tenant for, and Tenant waives any claim against Landlord with respect to, any loss by theft or any other damage suffered or incurred by Tenant in connection with any unauthorized entry into the Premises or any other breach of security with respect to the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33. **<u>Force Majeure</u>**. Landlord shall not be held responsible for delays in the performance of its obligations hereunder when caused by strikes, lockouts, labor disputes, acts of God, inability to obtain labor or materials or reasonable substitutes therefor, governmental restrictions, governmental regulations, governmental controls, delay in issuance of permits, enemy or hostile governmental action, civil commotion, fire or other casualty, and other causes beyond the reasonable control of Landlord ("**<u>Force Majeure</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34. **<u>Entire Agreement</u>**. This Lease constitutes the complete and entire agreement of Landlord and Tenant with respect to the subject matter hereof. No representations, inducements, promises or agreements, oral or written, have been made by Landlord or Tenant, or anyone acting on behalf of Landlord or Tenant, which are not contained herein, and any prior agreements, promises, negotiations, or representations are superseded by this Lease. This Lease may not be amended except by an instrument in writing signed by both parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35. **<u>Severability</u>**. If any clause or provision of this Lease is illegal, invalid or unenforceable under present or future laws, then and in that event, it is the intention of the parties hereto that the remainder of this Lease shall not be affected thereby. It is also the intention of the parties to this Lease that in lieu of each clause or provision of this Lease that is illegal, invalid or unenforceable, there be added, as a part of this Lease, a clause or provision as similar in terms to such illegal, invalid or unenforceable clause or provision as may be possible and be legal, valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36. **<u>Brokers</u>**. Tenant represents and warrants that it has dealt with no broker, agent or other person in connection with this transaction and that no broker, agent or other person brought about this transaction, other than the Brokers set forth in the Basic Lease Provisions above, and Tenant agrees to indemnify and hold Landlord harmless from and against any claims by any other broker, agent or other person claiming a commission or other form of compensation by virtue of having dealt with Tenant with regard to this leasing transaction. Landlord shall pay Landlord's Broker a commission pursuant to a separate written agreement between Landlord and Landlord's Broker. Any commission due to Tenant's Broker shall be the responsibility of Landlord's Broker and not Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37. **<u>Miscellaneous</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any payments or charges due from Tenant to Landlord hereunder shall be considered rent for all purposes of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If and when included within the term "Tenant," as used in this instrument, there is more than one person, firm or corporation, each shall be jointly and severally liable for the obligations of Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All notices required or permitted to be given under this Lease shall be in writing and shall be sent by registered or certified mail, return receipt requested, or by a reputable national overnight courier service, with proof of delivery and postage prepaid, or by hand delivery and sent to the notice address for each party listed in the Basic Lease Provisions. Either party may by notice given aforesaid change its address for all subsequent notices. Except where otherwise expressly provided to the contrary, notice shall be deemed given upon delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as otherwise expressly provided in this Lease or as otherwise required by law, Landlord retains the absolute right to withhold any consent or approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) At Landlord's request from time to time (but not more than once per year, except in connection with an actual or potential sale, financing, ground lease or similar transaction, in which case such once per year limitation shall not apply), Tenant shall furnish Landlord with true and complete copies of its most recent annual and quarterly financial statements (including year-to-date balance sheet and income statements for current and prior two years) prepared by Tenant or Tenant's accountants and any other financial information or summaries that Tenant typically provides to its lenders or shareholders. Such annual statements shall be certified as true and accurate by a responsible officer of Tenant. Landlord shall hold such financial statements and information in confidence, and shall not disclose the same except: (1) to Landlord's lenders or potential lenders, (2) to potential purchasers of all or a portion of the Project, (3) to attorneys, accountants, consultants or other advisors, (4) otherwise as reasonably necessary for the operation of the Project or administration of Landlord's business, or (5) if disclosure is required by any judicial or administrative order or ruling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Neither this Lease nor a memorandum of lease shall be filed by or on behalf of Tenant in any public record. Landlord may prepare and file, and upon request by Landlord, Tenant will execute a memorandum of lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each party acknowledges that it has had the opportunity to consult counsel with respect to this Lease, and therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Lease or any exhibits or amendments hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The submission by Landlord to Tenant of this Lease shall have no binding force or effect, shall not constitute an option for the leasing of the Premises, nor confer any right or impose any obligations upon either party until execution of this Lease by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Words of any gender used in this Lease shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, unless the context otherwise requires. The captions inserted in this Lease are for convenience only and in no way define, limit or otherwise describe the scope or intent of this Lease, or any provision hereof, or in any way affect the interpretation of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Any amount not paid by Tenant within five (5) days after its due date in accordance with the terms of this Lease shall bear interest from such due date until paid in full at the lesser of the highest rate permitted by applicable law or fifteen percent (15%) per year. It is expressly the intent of Landlord and Tenant at all times to comply with applicable law governing the maximum rate or amount of any interest payable on or in connection with this Lease. If applicable law is ever judicially interpreted so as to render usurious any interest called for under this Lease, or contracted for, charged, taken, reserved, or received with respect to this Lease, then it is Landlord's and Tenant's express intent that all excess amounts theretofore collected by Landlord be credited on the applicable obligation (or, if the obligation has been or would thereby be paid in full, refunded to Tenant), and the provisions of this Lease immediately shall be deemed reformed and the amounts thereafter collectible hereunder reduced, without the necessity of the execution of any new document, so as to comply with the applicable law, but so as to permit the recovery of the fullest amount otherwise called for hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Construction and interpretation of this Lease shall be governed by the laws of the state in which the Project is located, excluding any principles of conflicts of laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Time is of the essence as to the performance of Tenant's obligations under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) All exhibits and addenda attached hereto are hereby incorporated into this Lease and made a part hereof. In the event of any conflict between such exhibits or addenda (other than the rules and regulations) and the terms of this Lease, such exhibits or addenda shall control. In the event of a conflict between the rules and regulations attached hereto and the terms of this Lease, the terms of this Lease shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) In the event either party shall commence an action to enforce any provision of this Lease, the prevailing party in such action shall be entitled to receive from the other party, in addition to damages, equitable or other relief, any and all costs and expenses incurred, including reasonable attorneys' fees and court costs and the fees and costs of expert witnesses, and fees incurred to enforce any judgment obtained. This provision with respect to attorneys fees incurred to enforce a judgment shall be severable from all other provisions of this Lease, shall survive any judgment, and shall not be deemed merged into the judgment. Tenant shall also reimburse Landlord for all costs incurred by Landlord in connection with enforcing its rights under this Lease in a bankruptcy proceeding, or other proceeding under Title 11 of the United States Code, as amended, including without limitation, legal fees, experts' fees and expenses, court costs and consulting fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) There shall be no merger of the leasehold estate hereby created with the fee estate in the Premises or any part thereof if the same person acquires or holds, directly or indirectly, this Lease or any interest in this Lease and the fee estate in the leasehold Premises or any interest in such fee estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) To the extent Tenant or its agents or employees discover any water leakage, water damage or mold in or about the Premises or Project, Tenant shall promptly notify Landlord thereof in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Whenever Tenant requests Landlord to take any action not required of it hereunder or give any consent required or permitted under this Lease, Tenant will reimburse Landlord for Landlord's reasonable, out-of-pocket costs payable to third parties and incurred by Landlord in reviewing the proposed action or consent, including reasonable attorneys', engineers' or architects' fees, within 30 days after Landlord's delivery to Tenant of a statement of such costs. Tenant will be obligated to make such reimbursement without regard to whether Landlord consents to any such proposed action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Tenant and its telecommunications companies, including local exchange telecommunications companies and alternative access vendor services companies, shall have no right of access to and within the Building, for the installation and operation of telecommunications systems, including voice, video, data, Internet, and any other services provided over wire, fiber optic, microwave, wireless, and any other transmission systems ("**<u>Telecommunications Services</u>**"), for part or all of Tenant's telecommunications within the Building and from the Building to any other location without Landlord's prior written consent. All providers of Telecommunications Services shall be required to comply with the rules and regulations of the Building, applicable Legal Requirements and Landlord's policies and practices for the Building. Tenant acknowledges that Landlord shall not be required to provide or arrange for any Telecommunications Services and that Landlord shall have no liability to a Tenant-related party in connection with the installation, operation or maintenance of Telecommunications Services or any equipment or facilities relating thereto. Tenant, at its cost and for its own account, shall be solely responsible for obtaining all Telecommunications Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Tenant (if a corporation, partnership or other business entity) hereby represents and warrants to Landlord that Tenant is and will remain during the Term a duly formed and existing entity qualified to do business in the state in which the Premises are located, that Tenant has full right and authority to execute and deliver this Lease, that each person signing on behalf of Tenant is authorized to do so, and that Tenant's organizational identification number assigned by the Utah Secretary of State is 7560490-0143. Landlord hereby represents and warrants to Tenant that Landlord is a duly formed and existing entity qualified to do business in the state in which the Premises are located, that Landlord has full right and authority to execute and deliver this Lease, and that each person signing on behalf of Landlord is authorized to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Landlord and Tenant agree that all administrative fees and late charges prescribed in this Lease are reasonable estimates of the costs that Landlord will incur by reason of Tenant's failure to comply with the provisions of this Lease, and the imposition of such fees and charges shall be in addition to all of Landlord's other rights and remedies hereunder or at law, and shall not be construed as a penalty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) Landlord may during the Lease Term construct, renovate, improve, alter, or modify (collectively, "**<u>Renovations</u>**") the Project, the Building and/or the Premises, and in connection with any Renovations, Landlord may, among other things, erect scaffolding or other necessary structures in the Building, limit or eliminate access to portions of the Project, including portions of the common areas, or perform work in the Building and common areas, which work may create noise, dust or leave debris in the Building and common areas. Tenant hereby agrees that such Renovations and Landlord's actions in connection with such Renovations shall in no way constitute a constructive eviction of Tenant nor entitle Tenant to any abatement of rent or damages from Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38. **<u>Intentionally Omitted</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39. **<u>Limitation of Liability of Landlord's Partners, and Others</u>**. Tenant agrees that any obligation or liability whatsoever of Landlord which may arise at any time under this Lease, or any obligation or liability which may be incurred by Landlord pursuant to any other instrument, transaction, or undertaking contemplated hereby, shall not be personally binding upon, nor shall resort for the enforcement thereof be had to the property of the constituent partners of Landlord or any of their respective directors, officers, representatives, employees or agents, regardless of whether such obligation or liability is in the nature of contract, tort, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40. **<u>OFAC</u>**. Tenant represents and warrants to Landlord that Tenant is currently in compliance with and shall at all times during the Lease Term (including any extension thereof) remain in compliance with the regulations of the Office of Foreign Asset Control ("**<u>OFAC</u>**") of the Department of the Treasury (including those named on OFAC's Specially Designated and Blocked Persons List) and any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41. **<u>Intentionally Omitted</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42. **<u>Easements; CC&R's</u>**. Landlord reserves to itself the right, from time to time, to grant such easements, rights and dedications that Landlord deems necessary or desirable, and to cause the recordation of parcel maps, easement agreements and covenants, conditions and restrictions, so long as such easements, rights, dedications, maps and covenants, conditions and restrictions do not unreasonably interfere with the permitted use of the Premises by Tenant. Tenant shall sign any of the aforementioned documents upon request of Landlord and failure to do so shall constitute a material breach of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43. **<u>Option to Extend</u>**. Landlord hereby grants to Tenant one (1) option to extend the Lease Term (the "**<u>Option</u>**"), for a period of five (5) years (the "**<u>Option Term</u>**") commencing upon the expiration of the initial Lease Term, upon each of the following conditions and terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Tenant shall give to Landlord, and Landlord shall actually receive, on a date which is at least two hundred seventy (270) days and not more than three hundred sixty-five (365) days prior to the then-scheduled expiration date of the Lease Term, a written notice of Tenant's exercise of the Option ("**<u>Option Notice</u>**"), time being of the essence. If the Option Notice is not timely so given and received, the Option, and any subsequent Option (if any), shall automatically expire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Tenant shall have no right to exercise the Option, notwithstanding any provision hereof to the contrary, (1) during the time commencing from the date Landlord gives to Tenant a notice of default pursuant to this Lease and continuing until the noncompliance alleged in said notice of default is cured, or (2) during the period of time commencing on the day after a monetary obligation to Landlord is due from Tenant and unpaid (without any necessity for notice thereof to Tenant) and continuing until the obligation is paid, or (3) if, during the 12 month period of time immediately prior to the time that Tenant attempts to exercise the Option, Landlord has given to Tenant one or more notices of default under this Lease, whether or not the defaults are cured, or Tenant has been late on three or more occasions in the payment of a monetary obligation to Landlord (without any necessity for notice thereof to Tenant), or (4) if Tenant has committed any non-curable breach, or is otherwise in default of any of the terms, covenants or conditions of this Lease or (5) if as of the date of Tenant's exercise of the Option, Tenant's financial condition is not as strong as Tenant's financial condition as of the date of this Lease, as reasonably determined by Landlord (with Tenant to provide Landlord with such information as may be reasonably requested by Landlord to verify the same).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The period of time within which the Option may be exercised shall not be extended or enlarged by reason of Tenant's inability to exercise the Option because of the provisions of Paragraph 43(b) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At Landlord's sole election, all Option rights of Tenant under this Paragraph 43 shall terminate and be of no further force or effect, notwithstanding Tenant's due and timely exercise of the Option, if, after such exercise, but prior to the commencement of the Option Term, (i) an Event of Default occurs, or (ii) Landlord gives to Tenant one (1) or more notices of monetary or material non-monetary default under this Lease, whether or not the defaults are cured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Option granted to Tenant in this Lease is personal to the original Tenant named in this Lease (the "**<u>Original Tenant</u>**"), or a Tenant Affiliate to whom this Lease has been assigned, and may be exercised only by the Original Tenant (or such Tenant Affiliate) while occupying the entire Premises who does so without the intent of thereafter assigning this Lease or subletting the Premises or any portion thereof, and may not be exercised or be assigned, voluntarily or involuntarily, by or to any person or entity other than Original Tenant or such Tenant Affiliate. The Option herein granted to Original Tenant is not assignable separate and apart from this Lease, nor may the Option be separated from this Lease in any manner, either by reservation or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All of the terms and conditions of this Lease except where specifically modified by this Paragraph 43 or as otherwise stated to be applicable only to the initial Lease Term shall apply during any extended Lease Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The monthly Base Rent payable during any Option Term shall be equal to the greater of (x) the then current fair market value the Premises; or (y) the monthly Base Rent payable during the immediately preceding term of this Lease. The then current fair market value for the Premises shall be determined as of the beginning of the Option Term, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Promptly following receipt by Landlord of Tenant's Option Notice, Landlord and Tenant shall attempt to reach agreement on the Base Rent for the Option Term, which Base Rent shall be set in accordance with the criteria described above. If Landlord and Tenant are able to agree on the Base Rent for the Option Term, Landlord and Tenant shall immediately execute an amendment to this Lease stating the Base Rent for the Option Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the parties are unable to agree on the Base Rent for the Option Term within forty-five (45) days following Landlord's receipt of the Option Notice, then each party, at its cost and by giving notice to the other party, shall have ten (10) days within which to appoint a licensed commercial real estate broker with at least seven (7) years' experience in the California Avenue industrial submarket of Salt Lake City. Utah, to determine and set the Base Rent for the Option Term at the then current fair market monthly rental value for the highest and best use of the Premises (but not less than the monthly Base Rent payable during the immediately preceding term of this Lease) for a term equal to the Option Tenn. If a party does not appoint a broker within such ten (10) day period, the single broker appointed shall be the sole broker and shall set the Base Rent for the Option Term. If two brokers are appointed by the parties as stated in this paragraph, they shall meet promptly and attempt to set the Base Rent for the Option Term. If they are unable to agree within forty five (45) days after the second broker has been appointed, they shall attempt to select a third broker meeting the qualifications stated in this paragraph within ten (10) days after the last day the two brokers are given to set the Base Rent for the Option Term. If they are unable to agree on the third broker, either of the parties to this Lease, by giving ten (10) days notice to the other party, may apply to the presiding judge of the court of the County in which the Premises are located, for the selection of a third broker who meets the qualifications stated in this paragraph. Each of the parties shall bear the cost of its own broker and one-half (1/2) of the cost of appointing the third broker and of paying the third broker's fee. The third broker, however selected, shall be a person who has not previously acted in any capacity for either party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Within twenty (20) days after the selection of the third broker, a majority of the brokers shall set the Base Rent for the Option Term. If a majority of the brokers are unable to agree upon the Base Rent within the stipulated period of time, the two closest brokers shall be added together and their total divided by two, and the resulting quotient shall be the Base Rent for the Premises during such Option Term. Notwithstanding the foregoing, in no event, however, shall the Base Rent for the Option Term be less than the Base Rent payable during the immediately preceding term of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) If the Base Rent for the Option Term has not been determined by the commencement date of the Option Term, then until such Base Rent is determined, Tenant shall pay Base Rent to Landlord at the rate in effect immediately preceding the Option Term, and if the actual Base Rent for the Option Term is determined to be higher, then within fifteen (15) days after the determination of such higher Base Rent, Tenant shall pay to Landlord the difference for each month of the Option Term for which Base Rent has already become due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44. **<u>Lease Contingency</u>**. TENANT ACKNOWLEDGES AND AGREES THAT THE PREMISES ARE CURRENTLY OCCUPIED BY A THIRD PARTY PURSUANT TO A LEASE THAT IS NOT SCHEDULED TO EXPIRE UNTIL AFTER THE ANTICIPATED COMMENCEMENT DATE HEREOF. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, THIS LEASE AND THE OBLIGATIONS OF LANDLORD HEREUNDER ARE EXPRESSLY CONDITIONED UPON AND SUBJECT TO (I) THE EXISTING TENANT (AND ANY SUBTENANTS) IN THE PREMISES ENTERING INTO A SURRENDER AGREEMENT AND VACATING THE PREMISES IN A MANNER AND UPON TERMS ACCEPTABLE TO LANDLORD IN ITS SOLE AND ABSOLUTE DISCRETION, AND (II) THE APPROVAL OF THE MORTGAGEE OF THE PROJECT. THE FOREGOING CONTINGENCIES ARE FOR THE SOLE BENEFIT OF LANDLORD AND MAY BE WAIVED ONLY BY LANDLORD IN WRITING.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45. **<u>Notice of Availability</u>**. Landlord shall use its commercially reasonable efforts to notify Tenant if, during the initial Lease Term only, Landlord determines that Landlord shall commence the marketing of space in the Project adjacent to the Premises (i.e., Suite 200 and Suite 500) ("**<u>Available Space</u>**") because such space shall become available for lease to third parties as determined by Landlord (if any such occasion occurs during the initial Lease Term). Notwithstanding anything to the contrary contained in this Paragraph 45, Landlord shall not be obligated to reserve space for Tenant, make any space available to Tenant, or enter into a new lease or lease amendment with Tenant. Any new lease or lease amendment with respect to any Available Space will only be entered into by Landlord if it decides, in its sole and absolute discretion, that such new lease or lease amendment is on terms and conditions acceptable to Landlord. Notwithstanding the foregoing or anything to the contrary. Landlord shall be free to lease any space in the Project (including, without limitation, any Available Space) to any party on any terms that Landlord so desires in its sole and absolute discretion. Notwithstanding the foregoing or anything to the contrary in this Lease, in the event that Landlord fails to notify Tenant that Landlord shall commence the marketing of any Available Space because such space has become available for lease to third parties, Tenant's sole and exclusive remedy shall be that, subject to the provisions of this Paragraph 45, Landlord shall use its commercially reasonable efforts to notify Tenant on the next occasion, if any such occasion occurs during the initial Lease Term, that Landlord determines that Landlord shall commence the marketing of any Available Space (and, notwithstanding anything to the contrary contained in this Lease, no lease or agreement entered into by and between Landlord and any party with respect to any Available Space shall be affected or impaired by any failure of Landlord to notify Tenant prior to entering into any such lease or agreement). Notwithstanding the foregoing, since Suite 200 is expected to imminently become vacant and is being currently marketed as available for Lease, Landlord shall have no obligation to notify Tenant that such space is available for lease until such time as the term of any new lease entered into by Landlord and any third party after the date of this Lease for such Suite 200 expires.

 ****

***[SIGNATURE PAGE FOLLOWS]***

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the latest date set forth on this signature page below.

**LANDLORD:**

---

| | |
|:---|:---|
| CLPF – CROSSROADS 1, L.P., | CLPF – CROSSROADS 1, L.P., |
| a Delaware limited partnership | a Delaware limited partnership |
| By: | CLPF – Crossroads 1 GP, LLC, |
|  | its general partner |
| By: | Clarion Lion Properties Fund Holdings, L.P., |
|  | its sole member |
| By: | CLPF-Holdings, LLC, |
|  | its general partner |
| By: | Clarion Lion Properties Fund Holdings REIT, LLC, |
|  | its sole member |
| By: | Clarion Lion Properties Fund, LP, |
|  | its managing member |
| By: | Clarion Partners LPF GP, LLC, |
|  | its general partner |
| By: | Clarion Partners, LLC, |
|  | its sole member |

---

---

| | |
|:---|:---|
| By: | */s/ Sara Young* |
| Name: | Sara Young |
| Title: | Authorized Signatory |

---

---

| | |
|:---|:---|
| **TENANT:** | **TENANT:** |
| FIREFLY AUTOMATIX, INC. | FIREFLY AUTOMATIX, INC. |
| a Delaware corporation | a Delaware corporation |
| By: | */s/ Matt Aposhian* |
| Name: | Matt Aposhian |
| Title: | President & COO |
| By: | */s/ Steven Aposhian* |
| Name: | Chairman, Steven Aposhian |
| Title: | Chairman |

---

**<u>RULES AND REGULATIONS</u>**

In the event of a conflict between the following Rules and Regulations and the terms of the Lease to which this Addendum is attached, the terms of the Lease shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The sidewalk, entries, and driveways of the Project shall not be obstructed by Tenant, or its agents, or used by them for any purpose other than ingress and egress to and from the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Tenant shall not place any objects, including antennas, outdoor furniture, etc., in the parking areas, landscaped areas or other areas outside of its Premises, or on the roof of the Project,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Except for licensed service animals (where access of the same is required by applicable Legal Requirements), no animals shall be allowed in the offices, halls, or corridors in the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Tenant shall not disturb the occupants of the Project or adjoining buildings by the use of any radio or musical instrument or by the making of loud or improper noises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If Tenant desires telegraphic, telephonic or other electric connections in the Premises, Landlord or its agent will direct the electrician as to where and how the wires may be introduced; and, without such direction, no boring or cutting of wires will be permitted. Any such installation or connection shall be made at Tenant's expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Tenant shall not install or operate any steam or gas engine or boiler, or other mechanical apparatus in the Premises, except as specifically approved in the Lease. The use of oil, gas or inflammable liquids for heating, lighting or any other purpose is expressly prohibited. Explosives or other articles deemed extra hazardous shall not be brought into the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Parking any type of recreational vehicles is specifically prohibited on or about the Project. Except for the overnight parking of operative vehicles or as expressly permitted in the Lease, no vehicle of any type shall be stored in the parking areas at any time. In the event that a vehicle is disabled, it shall be removed within 48 hours. There shall be no "For Sale" or other advertising signs on or about any parked vehicle. All vehicles shall be parked in the designated parking areas in conformity with all signs and other markings. All parking will be open parking, and no reserved parking, numbering or lettering of individual spaces will be permitted except as specified by Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Tenant shall not wash or service any vehicles in or about the Premises or the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Tenant shall maintain the Premises free from rodents, insects and other pests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Landlord reserves the right to exclude or expel from the Project any person who, in the judgment of Landlord, is intoxicated or under the influence of liquor or drugs or who shall in any manner do any act in violation of the Rules and Regulations of the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Tenant shall not cause any unnecessary labor by reason of Tenant's carelessness or indifference in the preservation of good order and cleanliness. Landlord shall not be responsible to Tenant for any loss of property on the Premises, however occurring, or for any damage done to the effects of Tenant by the janitors or any other employee or person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Tenant shall give Landlord prompt notice of any defects in the water, lawn sprinkler, sewage, gas pipes, electrical lights and fixtures, heating apparatus, or any other service equipment affecting the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. Tenant shall not permit storage outside the Premises, including without limitation, outside storage of trucks and other vehicles, or dumping of waste or refuse or permit any harmful materials to be placed in any drainage system or sanitary system in or about the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. All moveable trash receptacles provided by the trash disposal firm for the Premises must be kept in the trash enclosure areas, if any, provided for that purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. No auction, public or private, will be permitted on the Premises or the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. No awnings shall be placed over the windows in the Premises except with the prior written consent of Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. The Premises shall not be used for lodging, sleeping or cooking or for any immoral or illegal purposes or for any purpose other than that specified in the Lease. No gaming devices shall be operated in the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. Tenant shall ascertain from Landlord the maximum amount of electrical current which can safely be used in the Premises, taking into account the capacity of the electrical wiring in the Project and the Premises and the needs of other tenants, and shall not use more than such safe capacity. Landlord's consent to the installation of electric equipment shall not relieve Tenant from the obligation not to use more electricity than such safe capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. Tenant assumes full responsibility for protecting the Premises from theft, robbery and pilferage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. Tenant shall not install or operate on the Premises any machinery or mechanical devices of a nature not directly related to Tenant's ordinary use of the Premises and shall keep all such machinery free of vibration, noise and air waves which may be transmitted beyond the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. Tenant shall not introduce, disturb or release asbestos or PCBs onto or from the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. Tenant shall at all times conduct its operations in a good and workmanlike manner, employing best management practices to minimize the threat of any violation of Environmental Requirements.

## Exhibit 10.6

**Exhibit 10.6**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS OF THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**<u>FIRST AMENDMENT TO LEASE</u>**

This FIRST AMENDMENT TO LEASE (this "**<u>First Amendment</u>**") is made and entered into as of January 5, 2024, by and between CLPF- CROSSROADS 1, L.P., a Delaware limited partnership ("**<u>Landlord</u>**"), and FIREFLY AUTOMATIX, INC., a Delaware corporation ("**<u>Tenant</u>**").

**<u>RECITALS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Landlord and Tenant are parties to that certain Lease Agreement dated as of October 1, 2018 (the "**<u>Original Lease</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Pursuant to the Original Lease, Landlord leases to Tenant, and Tenant leases from Landlord, certain space (the "**<u>Original Premises</u>**") consisting of approximately 77,500 rentable square feet commonly known as Suite 100 and located within the building commonly known as "Building 1" (the "**<u>Building</u>**") with an address of 1130 South 3800 West, Salt Lake City, Utah, which is part of the project (the "**<u>Project</u>**") commonly known as Crossroads Corporate Center, all as more particularly described in the Original Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Landlord and Tenant now desire to amend the Original Lease to, among other things, (i) expand the Original Premises to include additional space in the Building consisting of approximately 31,000 rentable square feet of space commonly known as Suite 200 (the "**<u>Expansion Premises</u>**"), as more particularly shown on <u>Exhibit A</u> attached hereto, and (ii) extend the Lease Term of the Original Lease, all in accordance with the terms and conditions set forth below.

**<u>AGREEMENT</u>**

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Defined Terms</u>. All capitalized terms used herein but not specifically defined in this First Amendment shall have the meanings ascribed to such terms in the Original Lease. The term "**<u>Lease</u>**" where used in the Original Lease and this First Amendment shall hereafter refer to the Original Lease, as amended by this First Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Expansion of Premises</u>. Effective as of the earlier of (i) the date that Tenant occupies any portion of the Expansion Premises and begins conducting business therein, and (ii) February 1, 2024 ("**<u>Expansion Date</u>**"), the Original Premises shall be expanded to include (and Tenant shall lease from Landlord) the Expansion Premises. From and after the Expansion Date, the term "Premises" where used in the Lease (including this First Amendment) shall mean the Original Premises and the Expansion Premises, collectively (for a total of approximately 108,500 rentable square feet). Notwithstanding the foregoing, if Landlord cannot, for any reason, deliver the Expansion Premises to Tenant (including, without limitation on account of any present tenant or occupant of all or any portion of the Expansion Premises not vacating any portion of the Expansion Premises), then this First Amendment shall not be deemed void or voidable nor shall Landlord be deemed to be in default hereunder, nor shall Landlord be liable for any loss or damage directly or indirectly arising out of such delay, and Tenant agrees to accept possession of the Expansion Premises at such time as Landlord is able to tender the same (which date shall thenceforth be the Expansion Date for the Expansion Premises). Landlord and Tenant agree that the rentable square footage of the Expansion Premises as set forth in Recital C above (and of the Original Premises as set forth in Recital B above) shall be conclusive and binding on the parties hereto. Landlord may deliver to Tenant a letter in a form acceptable to Landlord memorializing the Expansion Date and the Base Rent applicable thereto, and such other matters as Landlord shall require, which Tenant shall execute and return to Landlord within five (5) business days of receipt thereof; provided, however, that such notice shall not be required to establish the Expansion Date and the Base Rent applicable thereto. Failure of Tenant to timely execute and deliver such letter shall constitute an acknowledgment by Tenant that the statements included in such notice are true and correct, without exception.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Extension of Lease Term</u>. Landlord and Tenant acknowledge and agree that the Lease Term is expired on December 31, 2023. Notwithstanding anything to the contrary contained in the Original Lease, the Lease Term is hereby retroactively extended for an additional period of eighty-eight (88) months (the "**<u>First Amendment Extended Term</u>**"), beginning on January 1, 2024 (the "**<u>First Amendment Extended Term Commencement Date</u>**") and expiring on April 30, 2031 (the "**<u>First Amendment Extended Term Expiration Date</u>**"), unless sooner terminated in accordance with the terms of the Lease. Notwithstanding anything to the contrary contained in the Original Lease, Tenant acknowledges and agrees that Tenant shall have no rights or options to further expand the Premises and/or renew or extend the Lease Term of the Lease beyond the First Amendment Extended Term Expiration Date. Accordingly, and without limiting the generality of the foregoing, Section 43 and Section 45 of the Original Lease are hereby deleted in their entirety and are of no further force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Base Rent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior to the First Amendment Extended Term Commencement Date, Tenant shall continue to pay Base Rent for the Original Premises in accordance with the terms and conditions of the Original Lease, in addition to all other amounts due and payable by Tenant under the Lease (including, without limitation, Base Rent for the Expansion Premises and Operating Expenses for the entire Premises). Notwithstanding anything to the contrary contained in the Original Lease, effective as of the First Amendment Extended Term Commencement Date, Tenant shall pay Base Rent with respect to the Original Premises in accordance with the schedule set forth in this Section 4(a) below. Such Base Rent for the Original Premises shall otherwise be payable in accordance with the terms of the Original Lease and shall be in addition to all other amounts due and payable by Tenant under the Lease (including, without limitation, Base Rent for the Expansion Premises and Operating Expenses for the entire Premises).

---

| | |
|:---|:---|
| Period During First Amendment Extended Term: | Monthly Base Rent for the Original Premises: |
| January 1, 2024 – December 31, 2024 | $65,100.00 per month\* |
| January 1, 2025 – December 31, 2025 | $67,378.50 per month |
| January 1, 2026 – December 31, 2026 | $69,736.75 per month |
| January 1, 2027 – December 31, 2027 | $72,177.54 per month |
| January 1, 2028 – December 31, 2028 | $74,703.75 per month |
| January 1, 2029 – December 31, 2029 | $77,318.39 per month |
| January 1, 2030 – December 31, 2030 | $80,024.53 per month |
| &nbsp;&nbsp;&nbsp;January 1, 2031 – April 30, 2031 | $82,825.39 per month |

---

\*Base Rent for the Original Premises for the 1<sup>st</sup>, 2<sup>nd</sup>, and 3<sup>rd</sup> full calendar months following the Expansion Date is subject to the "First Amendment Base Rent Credit", as provided in Section 5 of this First Amendment below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary set forth in the Original Lease, effective as of the Expansion Date, Tenant shall pay Base Rent, in the manner specified in the Lease, for the Expansion Premises in accordance with the schedule set forth in this Section 4(b) below. Such Base Rent for the Expansion Premises shall otherwise be payable in accordance with the terms of the Original Lease and shall be in addition to all other amounts due and payable by Tenant under the Lease (including, without limitation, Base Rent for the Original Premises and Operating Expenses for the entire Premises).

---

| | |
|:---|:---|
| Months During Lease Term from and after Expansion Date: | Monthly Base Rent for the Expansion Premises: |
| Expansion Date – Month 12 | $26,040.00 per month |
| Month 13 – Month 24 | $26,951.40 per month |
| Month 25 – Month 36 | $27,894.70 per month |
| Month 37 – Month 48 | $28,871.01 per month |
| Month 49 – Month 60 | $29,881.50 per month |
| Month 61 – Month 72 | $30,927.35 per month |
| Month 73 – Month 84 | $32,009.81 per month |
| &nbsp;&nbsp;&nbsp;Month 85 – April 30, 2031 | $33,130.15 per month |

---

\*Base Rent for the Expansion Premises for the 1<sup>st</sup>, 2<sup>nd</sup>, and 3<sup>rd</sup> full calendar months following the Expansion Date is subject to the "First Amendment Base Rent Credit", as provided in Section 5 of this First Amendment below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>First Amendment Base Rent Credit</u>. Subject to the terms and conditions of this Section 5, provided that Tenant is not then in default under the Lease, and has not previously been in default under the Lease, Tenant shall be credited with the payment of monthly Base Rent otherwise due and payable with respect to (x) the Original Premises for the first (1<sup>st</sup>), second (2<sup>nd</sup>) and third (3<sup>rd</sup>) full calendar months following the Expansion Date only (the "**<u>Original Premises Base Rent Credit</u>**"), as and when the same becomes due and payable (for a total maximum Original Premises Base Rent Credit equal to $195,300.00 in the aggregate, subject to the terms hereof), and (y) the Expansion Premises for the first (1<sup>st</sup>), second (2<sup>nd</sup>) and third (3<sup>rd</sup>) full calendar months following the Expansion Date only (the "**<u>Expansion Premises Base Rent Credit</u>**", and, together with the Original Premises Base Rent Credit, collectively, the "**<u>First Amendment Base Rent Credit</u>**"), as and when the same becomes due and payable (for a total maximum Expansion Premises Base Rent Credit equal to $78,120.00 in the aggregate, subject to the terms hereof). No such First Amendment Base Rent Credit shall reduce the amount of any other amounts which are otherwise payable by Tenant under the Lease (including, without limitation, Operating Expenses). Tenant understands and agrees that the foregoing First Amendment Base Rent Credit is conditioned upon Tenant's not being in default under the Lease. Accordingly, upon the occurrence of any default under the Lease, in addition to all other rights and remedies of Landlord, the foregoing First Amendment Base Rent Credit shall immediately become null and void, and any Base Rent previously credited to Tenant on account thereof shall immediately become due and payable, and Tenant shall no longer receive any credit on account of such First Amendment Base Rent Credit. Tenant agrees and acknowledges that notwithstanding the fact that Landlord may elect not to cause the First Amendment Base Rent Credit to become null and void on account of any particular default under the Lease, Landlord shall at all times retain the right to cause the First Amendment Base Rent Credit to become null and void in the event of any such default by Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Tenant's Proportionate Share; Operating Expenses</u>. Effective as of the Expansion Date, Tenant's Proportionate Share of the Building shall equal 56.45% (based on 108,500 rentable square feet of the Original Premises and the Expansion Premises divided by 192,200 rentable square feet of the Building). Tenant's Proportionate Share shall be subject to adjustment by Landlord pursuant to the terms and conditions of the Original Lease. Tenant shall be responsible for the payment of Operating Expenses with respect to the Original Premises and, from and after the Expansion Date, the Expansion Premises in accordance with the terms and conditions of the Original Lease (without limiting any other obligations of Tenant).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Condition of Premises; Landlord Work</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Section 7(b) below, Tenant shall lease the Expansion Premises (and continue to lease the Original Premises), "as is,", "where is", "with all faults," and "without any representations or warranties". Tenant acknowledges and warrants that it currently occupies and is extremely familiar with the Original Premises and that it has investigated and inspected the condition of the entire Premises and the suitability of same for Tenant's purposes, and Tenant hereby waives and disclaims any objection to, cause of action based upon, or claim that its obligations under the Lease should be reduced or limited because of the condition of the Premises, the Building or the Project or the suitability of same for Tenant's purposes. Tenant acknowledges that neither Landlord nor any agent or employee of Landlord has made any representations or warranty with respect to the Premises, the Building or the Project or with respect to their suitability for the conduct of Tenant's business, and Tenant expressly warrants and represents that Tenant has relied solely on its own investigation and inspection of the Premises, the Building and the Project in its decision to enter into this First Amendment and to let the Expansion Premises, and to continue to let the Original Premises, in their "as-is" conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent permitted by Legal Requirements, Landlord shall, on a one-time basis only, using Project standard materials, specifications, guidelines and procedures (except to the extent otherwise designated by Landlord), (1) perform the following work in the Expansion Premises: (a) re-lamp the warehouse area with LED fixtures, (b) repaint the walls and replace any damaged floor/ceiling tiles in the Expansion Premises, and (c) perform a Building-standard clean of the Expansion Premises and mechanically scrub the warehouse floor, and (2) perform the following work in the Original Premises: (i) re-lamp with LED fixtures, (ii) replace existing swamp coolers, (iii) service existing loading doors, adjust tracks and replace failing pit lever gaskets as needed, (iv) install cased opening for access between the Original Premises and the Expansion Premises, (v) widen the existing drive-in door on the South side of the Building to accommodate larger machines, (vi) improve existing bathrooms for additional service capabilities, and (vii) add temperature-controlled cooling (all such work in items [1] and [2] above, collectively, the "**<u>Landlord Work</u>**"). The exact location of, and scope and specifications for, each element of the Landlord Work shall be determined by Landlord taking into consideration reasonable feedback from Tenant. Notwithstanding the foregoing or anything to the contrary herein, Tenant shall be responsible for all costs and expenses incurred by Landlord in connection with the Landlord Work (including, without limitation, hard and soft construction costs and construction management and oversight fees) to the extent such costs and expenses exceed $212,000.00 in the aggregate ("**<u>Landlord's Maximum Contribution</u>**"), and Tenant shall pay any such excess costs or expenses to Landlord upon demand (which demand may be made by Landlord from time to time, including prior to the commencement of the Landlord Work based on Landlord's reasonable estimate of the cost thereof). Notwithstanding anything to the contrary herein, in no event shall Landlord be required to incur costs or expenses in connection with the Landlord Work in excess of Landlord's Maximum Contribution. Tenant shall not (and Tenant shall ensure that its agents, representatives, employees and invitees do not) interfere with the performance of the Landlord Work and shall cooperate with Landlord in connection with the performance of the Landlord Work, including, without limitation, by moving any equipment and other property which Landlord or its contractor may request be moved. Landlord shall be permitted to perform the Landlord Work during Tenant's occupancy of the Premises, during normal business hours (or any hours), without any obligation to pay overtime or other premiums. Tenant hereby agrees that the performance of the Landlord Work shall in no way constitute a constructive eviction of Tenant or entitle Tenant to any abatement of rent payable pursuant to the Lease. Landlord shall have no responsibility for, or for any reason be liable to Tenant, for any direct or indirect injury to or interference with Tenant's business arising from the performance of the Landlord Work, nor shall Tenant be entitled to any compensation or damages for loss of the use of the whole or any part of the Premises or of Tenant's personal property or improvements resulting from the performance of the Landlord Work or Landlord's or Landlord's contractor's or agent's actions in connection with the performance of the Landlord Work, or for any inconvenience or annoyance occasioned by the performance of the Landlord Work or Landlord's or Landlord's contractor's or agent's actions in connection with the performance of the Landlord Work. Tenant shall be responsible for any increase in the cost of performing the Landlord Work resulting from any act or omission of Tenant or its agents, employees, contractors, licensees and invitees (and Tenant shall pay any such increased costs to Landlord upon demand). In addition, should Tenant request any change in the scope of the Landlord Work, then Tenant shall be responsible for all costs and expenses incurred by Landlord in connection therewith (payable upon demand); provided, however, Landlord shall have no obligation to change the scope of the Landlord Work (and any election to do so shall be in Landlord's and Tenant's mutual agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Landlord hereby represents that, as of the Expansion Date, the existing mechanical (including, without limitation, the dock doors), electrical (including all existing HVAC and gas-fired heaters) and plumbing systems serving the Expansion Premises only (collectively, the "**<u>Expansion Premises Building Systems</u>**") shall be in good working order; provided, however, if Tenant does not deliver written notice to Landlord of any breach of such representation within one hundred eighty (180) days following the Expansion Date, then Tenant shall be deemed to have inspected and accepted the Expansion Premises Building Systems in their present condition, and the correction of any subsequently discovered defects shall be the obligation of the applicable party pursuant to the other provisions of the Lease. If a breach of the foregoing representations exists, and Tenant timely (i.e., within one hundred eighty [180] days following the Expansion Date) delivers written notice to Landlord setting forth in reasonable detail a description of such breach, Landlord shall, as Tenant's sole and exclusive remedy, rectify the same at Landlord's sole expense (provided, however, in no event shall Landlord be responsible for any damages or defects existing as a result of any act or omission of Tenant or Tenant's agents, employees, contractors, subcontractors, subtenants, assigns, licensees or invitees or any other party claiming by, through or under Tenant, all of which shall be the sole responsibility of Tenant).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Security Deposit</u>. The parties acknowledge and agree that Landlord currently holds a Security Deposit from Tenant in the amount of $138,793.64 pursuant to the Original Lease. Landlord shall continue to hold the Security Deposit (in accordance with the terms and conditions of the Original Lease (as amended hereby).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Landlord's Notice Address</u>. Notwithstanding anything to the contrary contained in the Lease, effective as of the date of this First Amendment and continuing until such time as Landlord delivers written notice to Tenant of any changes in such address in accordance with the terms of the Lease, Landlord's address for notices and other communications in connection with the Lease shall be as follows:

[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Attorneys' Fees</u>. In the event either party shall commence an action to enforce any provision of this First Amendment (or the Lease), the prevailing party in such action shall be entitled to receive from the other party, in addition to damages, equitable or other relief, and all costs and expenses incurred, including reasonable attorneys' fees and court costs and the fees and costs of expert witnesses, and fees incurred to enforce any judgment obtained. This provision with respect to attorneys' fees incurred to enforce a judgment shall be severable from all other provisions of this First Amendment and the Lease, shall survive any judgment, and shall not be deemed merged into the judgment. Tenant shall also reimburse Landlord for all costs incurred by Landlord in connection with enforcing its rights under this First Amendment or the Lease in a bankruptcy proceeding, or other proceeding under Title 11 of the United States Code, as amended, including without limitation, reasonable legal fees, experts' fees and expenses, court costs and reasonable consulting fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Brokers</u>. Tenant represents and warrants to Landlord that it has not dealt with any broker, finder or other person with respect to this First Amendment (or the transaction that is the subject matter hereof) who is or might be entitled to a commission, finder's fee or other like payment in connection herewith other than CBRE, Inc., representing Landlord ("**<u>Landlord's Broker</u>**"), and APL Commercial LLC, representing Tenant ("**<u>Tenant's Broker</u>**", and together with Landlord's Broker, collectively, the "**<u>Brokers</u>**"). If Tenant has dealt with any broker, agent or other person with respect to this First Amendment other than the Brokers, Tenant shall be solely responsible for the payment of any fees due to said person or firm and Tenant shall protect, indemnify, hold harmless and defend Landlord from any liability in respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Estoppel</u>. Tenant warrants, represents and certifies to Landlord that as of the date of this First Amendment: (a) Landlord is not in default under the Lease; (b) Tenant does not have any defenses or offsets to payment of rent and performance of its obligations under the Lease as and when same becomes due; and (c) Landlord has completed any improvements and paid any allowances required to be constructed or paid by Landlord in accordance with the terms of the Lease, subject to performance of the Landlord Work in accordance with the terms of this First Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Severability</u>. Any provision of this First Amendment which shall prove to be invalid, void or illegal shall in no way affect, impair or invalidate any other provision hereof and such other provisions shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Authority</u>. Tenant represents and warrants that it has full power and authority to enter into this First Amendment and the person signing on behalf of Tenant has been fully authorized to do so by all necessary corporate or partnership action on the part of Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Binding Effect</u>. This First Amendment shall be binding upon and inure to the benefit of Landlord, its successors and assigns and Tenant and its permitted successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Further Assurances</u>. Each of the parties hereto agrees to execute and deliver all such further documents and to take all such further actions as may be reasonably requested by the other party hereto to effectuate fully the terms and provisions of this First Amendment, provided such documents or actions do not limit, reduce or impair the rights of the party upon whom such request is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Original Lease in Full Force</u>. Except for those provisions which are inconsistent with this First Amendment and those terms, covenants and conditions for which performance has heretofore been completed, all other terms, covenants and conditions of the Original Lease shall remain unmodified and in full force and effect. Landlord and Tenant ratify the Original Lease, as amended hereby. The terms of this First Amendment shall prevail and control to the extent of any conflict or inconsistency between the terms of the Original Lease and this First Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Counterparts; Electronic Signatures</u>. This First Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all of which counterparts together shall constitute one agreement with the same effect as if the parties had signed the same signature page. Each party hereto, and their respective successors and assigns, shall be authorized to rely upon the signatures of all of the parties hereto which are delivered by facsimile, email or other electronic means (e.g., DocuSign) as constituting a duly authorized, irrevocable, actual, current delivery of this First Amendment with original ink signatures. Landlord and Tenant (a) intend to be bound by the signatures (whether original or electronic) on any document sent or delivered by electronic mail or other electronic means, (b) are aware that the other party will rely on such signatures and acknowledgements, and (c) hereby waive any defenses to the enforcement of the terms of this First Amendment based on the foregoing forms of signature and acknowledgement. If this First Amendment has been executed by electronic signature, all parties executing this document are expressly consenting under the Electronic Signatures in Global and National Commerce Act ("**<u>E-SIGN</u>**"), and Uniform Electronic Transactions Act ("**<u>UETA</u>**"), that a signature by fax, email or other electronic means shall constitute an Electronic Signature to an Electronic Record under both E-SIGN and UETA with respect to this specific transaction.

**[SIGNATURE PAGE FOLLOWS]**

IN WITNESS WHEREOF, this First Amendment has been executed by Landlord and Tenant as of the date first set forth above.

---

| | |
|:---|:---|
| "LANDLORD": | "LANDLORD": |
| CLPF – CROSSROADS 1, L.P., | CLPF – CROSSROADS 1, L.P., |
| a Delaware limited partnership | a Delaware limited partnership |
| By: | CLPF – Crossroads I GP, LLC, |
|  | its general partner |
| By: | Clarion Lion Properties Fund Holdings, L.P., |
|  | its sole member |
| By: | CLPF-Holdings, LLC, |
|  | its general partner |
| By: | Clarion Lion Properties Fund Holdings REIT, LLC, |
|  | its sole member |
| By: | Clarion Lion Properties Fund, LP, |
|  | its managing member |
| By: | Clarion Partners LPF GP, LLC, |
|  | its general partner |
| By: | Clarion Partners, LLC, |
|  | its sole member |

---

---

| | |
|:---|:---|
| Name: | */s/ Nicole Welch* |
| Name: | Nicole Welch |
| Title: | Senior Vice-President |

---

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

---

| | |
|:---|:---|
| "TENANT": | "TENANT": |
| FIREFLY AUTOMATIX, INC., | FIREFLY AUTOMATIX, INC., |
| a Delaware corporation | a Delaware corporation |
| By: | *<u>/s/ Steven R Aposhian</u>* |
| Name: | <u>Steven R Aposhian</u> |
| Title: | <u>Chairman/CTO</u> |
| By: |  |
| Name: |  |
| Title: |  |

---

## Exhibit 10.7

**Exhibit 10.7**

**EXCHANGE AGREEMENT**

This Exchange Agreement (this "**Agreement**") is made as of October 21, 2025, by and among FF Opportunities 2 LLC, FF Opportunities 3 LLC and FF Opportunities 4 LLC (together, the "**Holders**", with each of the purchasing entities, a "**Holder**"), on the one hand, and FireFly Automatix, Inc., a Delaware corporation (the "**Company**"), on the other hand.

**WHEREAS**, the Holders hold certain debentures (each debenture, an "**Existing Debenture**," and collectively, the "**Existing Debentures**") convertible into shares of the Company's common stock, par value $0.001 per share (the "**Common Stock**" and, as so issuable upon conversion, the "**Debenture Shares**") and/or warrants (each warrant, an "**Existing Warrant**," and collectively, the "**Existing Warrants**") to purchase Common Stock previously issued by the Company (such shares issuable upon exercise, the "**Warrant Shares**"), as more fully described on <u>Schedule A</u> attached hereto (collectively, the "**Original Securities**");

**WHEREAS**, the Original Securities were issued pursuant to one or more purchase agreements between the Company and the Holders (each, a "**Prior Purchase Agreement**," and collectively, the "**Prior Purchase Agreements**").

**WHEREAS**, the Holders have certain rights pursuant to the terms and conditions of the Original Securities and the Prior Purchase Agreements (each right, a "**Holder's Right**," and collectively, the "**Holder's Rights**");

**WHEREAS**, the Company is contemplating an initial public offering of its common stock (the "**IPO**") pursuant to a registration statement on Form S-1 to be filed with the U.S. Securities and Exchange Commission (the "**Commission**") (together with any amendments or supplements thereto, the "**Registration Statement**");

**WHEREAS**, in connection with the IPO, the parties hereto desire for the Holders to effect exchanges of certain of the Original Securities held by each of the Holders in the amounts set forth on <u>Schedule B</u> hereto in exchange for equity securities of the Company, as described below (the "**Exchange**," with such exchanged amount, the "**Exchange Amount**");

**WHEREAS**, in connection with the IPO, the parties hereto desire for the Holders to effect exercises, on a cashless basis (i) certain of the Existing Warrants (the "**Cashless Exercise Warrants**"), and (ii) of certain of other Existing Warrants (the "**Additional Cashless Exercise Warrants**") held by each of the Holders, as described on <u>Schedule C</u>;

**WHEREAS**, as consideration for the Holders' agreement to effect the Exchange, the Company shall issue to the Holders in reliance on the exemption(s) from registration provided by Section 3(a)(9) and/or Section 4(a)(2) of the Securities Act of 1933, as amended (the "**Securities Act**"), shares of the Company's newly designated Series A Convertible Preferred Stock, par value $0.001 per share (the "**Preferred Stock**"), convertible into Common Stock (such shares issuable upon conversion, the "**Preferred Stock Shares**," and together with the Debenture Shares and Warrant Shares, the "**Future Securities**, with the rights and preferences as set forth in that certain Certificate of Designation of Preferences, Rights and Limitations of the Preferred Stock (the "**Series A Certificate of Designation**" and together with this Agreement, the "**Transaction Documents**"), in substantially the form attached hereto as <u>Exhibit A</u>, upon Exchange of the Exchange Amounts set forth on <u>Schedule B</u> hereto (the "**Shares**"); and

**WHEREAS**, in connection with the IPO and the Exchange, the Holders desire to waive or clarify certain provisions of the Original Securities, as set forth herein.

**NOW THEREFORE**, in consideration of the foregoing premises and the respective representations and warranties, covenants and agreements contained herein, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1. **Exchange and Warrant Exercises**.

(a) <u>Debenture Exchange</u>. Subject to the terms and conditions of this Agreement, the Company hereby agrees
 to issue to each Holder of the Existing Debentures set forth on <u>Schedule B</u> at the
 closing of the Exchange (the "**Closing**") a number of Shares equal to the
 quotient obtained by dividing (i) the quotient obtained by dividing (a) the outstanding principal
 and accrued interest of the Existing Debentures as of the Closing by (b) the applicable conversion
 price of the Existing Debentures set forth on <u>Schedule B</u> by (ii) the Conversion Ratio,
 such that the number of shares of Common Stock initially issuable upon the conversion of
 the Shares shall be equal to the number of shares of Common Stock issuable upon the full
 conversion of the Existing Debentures at the time of the Exchange. The "**Conversion Ratio**" shall be equal to the quotient obtained by dividing the Series A Original
 Issue Price (as defined in the Series A Certificate of Designation) by the Series A Conversion
 Price (as defined in the Series A Certificate of Designation).

(b) <u>Warrant Exchange</u>. At the Closing, and subject to the terms and conditions of this Agreement,
 the Company agrees to issue to each holder of the Existing Warrants set forth on <u>Schedule B</u> the number of Shares determined in accordance with the calculations set forth on <u>Schedule B</u> with respect to such Existing Warrants, such that the number of shares of Common Stock
 initially issuable upon the conversion of the Shares shall be equal to the product obtained
 by multiplying (a) number of shares of Common Stock underlying the number of Existing Warrants
 to be exchanged by (b) the Common Stock exchange ratio set forth on <u>Schedule B</u> for
 such Existing Warrants.

(c) <u>Warrant Exercises</u>. Subject to the terms and conditions of this Agreement, the Company and the
 Holders hereby agree that, at the Closing, (i) the Cashless Exercise Warrants will be exercised
 on a cashless basis in accordance with the calculations set forth on <u>Schedule C</u> and
 (ii) the Additional Cashless Exercise Warrants will be exercised on a cashless basis in accordance
 with the calculations set forth on <u>Schedule C</u>.

2. **Closing; Delivery**.

(a) <u>Closing</u>.
 The Closing shall take place remotely via the exchange of documents and signatures simultaneously
 with the satisfaction of each of the conditions set forth in Section 7 and Section 8 herein
 (to the extent not waived in accordance therewith) (the date on which the Closing occurs
 hereinafter referred to as the "**Closing Date** ").

(b) <u>Exchange; Delivery</u>. At Closing, the Exchange shall be effected by (i) the Company delivering to
 each Holder, in book entry form, the applicable number of Shares being issued to such Holder
 pursuant to the Exchange and (ii) each Holder surrendering to the Company the Original Securities
 for cancellation.

(c) Assuming
 the accuracy of the representations and warranties of each of the Company and each of the
 Holders set forth in Sections 3 and 4 of this Agreement, respectively, the parties hereto
 acknowledge and agree that the purpose of such representations and warranties is, among other
 things, to ensure that the Exchange qualifies as an exchange and/or purchase and sale of
 securities under Section 3(a)(9) and/or Section 4(a)(2) of the Securities Act.

3. **Representations and Warranties of the Company**. Except as set forth in the disclosure schedules which are attached hereto and delivered by the Company to the Holders concurrently with the execution and delivery of this Agreement (the "**Disclosure Schedules**"), which Disclosure Schedules shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the corresponding section of the Disclosure Schedules, the Company hereby makes the following representations and warranties to each Holder:

(a) <u>Subsidiaries</u>.
 All of the direct and indirect subsidiaries of the Company are set forth on <u>Schedule 3(a)</u>.
 The Company owns, directly or indirectly, all of the capital stock or other equity interests
 of each Subsidiary free and clear of any lien, charge, pledge, security interest, encumbrance,
 right of first refusal, preemptive right or other restriction ()"**Liens** "),
 and all of the issued and outstanding shares of capital stock of each direct or indirect
 subsidiary of the Company formed or acquired after the date hereof (each, a "**Subsidiary** ")
 are validly issued and are fully paid, non-assessable and free of preemptive and similar
 rights to subscribe for or purchase securities. If the Company has no subsidiaries, all other
 references to the Subsidiaries or any of them in the Transaction Documents shall be disregarded.

(b) <u>Organization and Qualification</u>. The Company and each of the Subsidiaries is an entity duly incorporated
 or otherwise organized, validly existing and in good standing under the laws of the jurisdiction
 of its incorporation or organization, with the requisite power and authority to own and use
 its properties and assets and to carry on its business as currently conducted. Neither the
 Company nor any Subsidiary is in violation nor default of any of the provisions of its respective
 certificate or articles of incorporation, bylaws or other organizational or charter documents.
 Each of the Company and the Subsidiaries is duly qualified to conduct business and is in
 good standing as a foreign corporation or other entity in each jurisdiction in which the
 nature of the business conducted or property owned by it makes such qualification necessary,
 except where the failure to be so qualified or in good standing, as the case may be, could
 not have or reasonably be expected to result in: (i) a material adverse effect on the legality,
 validity or enforceability of any Transaction Document, (ii) a material adverse effect on
 the results of operations, assets, business, prospects or condition (financial or otherwise)
 of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect
 on the Company's ability to perform in any material respect on a timely basis its obligations
 under any Transaction Document (any of (i), (ii) or (iii), a "**Material Adverse Effect** ")
 and no action, claim, suit, investigation or proceeding (including, without limitation, an
 informal investigation or partial proceeding, such as a deposition), whether commenced or
 threatened (each, a "**Proceeding**") has been instituted in any such jurisdiction
 revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority
 or qualification.

(c) <u>Authorization; Enforcement</u>. Subject to the Required Approvals, the Company has the requisite corporate
 power and authority to enter into and to consummate the transactions contemplated by this
 Agreement and each of the other Transaction Documents and otherwise to carry out its obligations
 hereunder and thereunder. The execution and delivery of this Agreement and each of the other
 Transaction Documents by the Company and the consummation by it of the transactions contemplated
 hereby and thereby have been duly authorized by all necessary action on the part of the Company
 and no further action is required by the Company, the Company's Board of Directors
 ()"**Board of Directors**") or the Company's stockholders in connection
 herewith or therewith other than in connection with (i) the filings required pursuant to
 Section 6(c) of this Agreement, (ii) all filings required by the Secretary of State of the
 State of Delaware to create and maintain the status of the Preferred Stock in accordance
 with the terms of the Transaction Documents, including the filing of a second amended and
 restated certificate of incorporation of the Company, in substantially the form attached
 hereto as <u>Exhibit D</u> (the "**Amended and Restated Charter** "), and the
 Series A Certificate of Designation, and (iii) from and after the date on which the Common
 Stock is listed on any applicable Trading Market (as defined below), the notice and/or application(s)
 to each applicable Trading Market for the issuance of the Shares and the listing of the shares
 of Common Stock issuable upon conversion of the Shares (the "**Underlying Shares** "
 and together with the Shares, the "**Securities**") for trading thereon in
 the time and manner required thereby (collectively, the "**Required Approvals** ").
 For the purposes of this Agreement, "**Trading Market**" means any of the
 following markets or exchanges on which the Common Stock is listed or quoted for trading
 on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global
 Market, the Nasdaq Global Select Market, or the New York Stock Exchange, but not including
 the OTCID, OTCQB or OTCQX markets (or any other over-the-counter market or successors to
 any of the foregoing). This Agreement and each other Transaction Document to which it is
 a party has been (or upon delivery will have been) duly executed by the Company and, when
 delivered in accordance with the terms hereof and thereof, will constitute the valid and
 binding obligation of the Company enforceable against the Company in accordance with its
 terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
 reorganization, moratorium and other laws of general application affecting enforcement of
 creditors' rights generally, (ii) as limited by laws relating to the availability of
 specific performance, injunctive relief or other equitable remedies and (iii) insofar as
 indemnification and contribution provisions may be limited by applicable law.

(d) <u>No Conflicts</u>. The execution, delivery and performance by the Company of this Agreement and
 the other Transaction Documents to which it is a party, the issuance of the Shares and the
 consummation by it of the transactions contemplated hereby and thereby do not and will not
 (i) subject to the Required Approvals, conflict with or violate any provision of the Company's
 or any Subsidiary's certificate or articles of incorporation, bylaws or other organizational
 or charter documents, (ii) conflict with, or constitute a default (or an event that with
 notice or lapse of time or both would become a default) under, result in the creation of
 any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to
 others any rights of termination, amendment, anti- dilution or similar adjustments, acceleration
 or cancellation (with or without notice, lapse of time or both) of, any agreement, credit
 facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise)
 or other understanding to which the Company or any Subsidiary is a party or by which any
 property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject
 to the Required Approvals, conflict with or result in a violation of any law, rule, regulation,
 order, judgment, injunction, decree or other restriction of any court or governmental authority
 to which the Company or a Subsidiary is subject (including federal and state securities laws
 and regulations), or by which any property or asset of the Company or a Subsidiary is bound
 or affected; except in the case of each of clauses (ii) and (iii), such as could not have
 or reasonably be expected to result in a Material Adverse Effect.

(e) <u>Filings, Consents and Approvals</u>. Assuming the accuracy of the Holders' representations and
 warranties set forth in Section 4, the Company is not required to obtain any consent, waiver,
 authorization or order of, give any notice to, or make any filing or registration with, any
 court or other federal, state, local or other governmental authority or any individual or
 corporation, partnership, trust, incorporated or unincorporated association, joint venture,
 limited liability company, joint stock company, government (or an agency or subdivision thereof)
 or other entity of any kind (each, a "**Person**") in connection with the
 execution, delivery and performance by the Company of the Transaction Documents, other than
 the Required Approvals.

(f) <u>Issuance of the Shares</u>. Subject to the Required Approvals, the Shares are duly authorized and,
 when issued and paid for in accordance with the applicable Transaction Documents, will be
 duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed
 by the Company other than restrictions on transfer provided for in the Transaction Documents.
 Subject to the Required Approvals, the Underlying Shares, when issued in accordance with
 the terms of the Transaction Documents, will be validly issued, fully paid and nonassessable,
 free and clear of all Liens imposed by the Company other than restrictions on transfer provided
 for in the Transaction Documents. Subject to the Required Approvals, the Company has reserved
 from its duly authorized capital stock a number of shares of Common Stock for the purpose
 of issuance, no less than 100% of the sum of the maximum number of Underlying Shares issuable
 upon conversion of the Shares then outstanding assuming for purposes hereof that (x) the
 Shares are convertible at the Series A Conversion Price (as defined in the Series A Certificate
 of Designation) then in effect and (y) any such conversion shall not take into account any
 limitations on the conversion of the Shares set forth in the Series A Certificate of Designation)
 (collectively, the "**Required Reserve Amount** ").

(g) <u>Capitalization</u>.
 The capitalization of the Company as of the date hereof is as set forth on <u>Schedule 3(g)</u>.
 No Person has any right of first refusal, preemptive right, right of participation, or any
 similar right to participate in the transactions contemplated by the Transaction Documents.
 Except as a result of the Exchange or as set forth on <u>Schedule 3(g)</u>, there are no
 outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any
 character whatsoever relating to, or securities, rights or obligations convertible into or
 exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire,
 any shares of Common Stock or the capital stock of any Subsidiary, or contracts, commitments,
 understandings or arrangements by which the Company or any Subsidiary is or may become bound
 to issue additional shares of Common Stock or any securities of the Company or the Subsidiaries
 which would entitle the holder thereof to acquire at any time Common Stock, including, without
 limitation, any debt, preferred stock, right, option, warrant or other instrument that is
 at any time convertible into or exercisable or exchangeable for, or otherwise entitles the
 holder thereof to receive, Common Stock ()"**Common Stock Equivalents**") or
 capital stock of any Subsidiary. The issuance of the Shares will not obligate the Company
 or any Subsidiary to issue shares of Common Stock or other securities to any Person (other
 than the Holders). Except as set forth on <u>Schedule 3(g)</u>, there are no outstanding
 securities or instruments of the Company or any Subsidiary with any provision that adjusts
 the exercise, conversion, exchange or reset price of such security or instrument upon an
 issuance of securities by the Company or any Subsidiary. There are no outstanding securities
 or instruments of the Company or any Subsidiary that contain any redemption or similar provisions,
 and there are no contracts, commitments, understandings or arrangements by which the Company
 or any Subsidiary is or may become bound to redeem a security of the Company or such Subsidiary.
 The Company does not have any stock appreciation rights or "phantom stock" plans
 or agreements or any similar plan or agreement. All of the outstanding shares of capital
 stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have
 been issued in compliance with all federal and state securities laws, and none of such outstanding
 shares was issued in violation of any preemptive rights or similar rights to subscribe for
 or purchase securities. Subject to the Required Approvals, no further approval or authorization
 of any stockholder, the Board of Directors or others is required for the issuance of the
 Shares. There are no stockholders agreements, voting agreements or other similar agreements
 with respect to the Company's capital stock to which the Company is a party or, to
 the knowledge of the Company, between or among any of the Company's stockholders.

(h) <u>Financial Statements</u>. The unaudited financial statements of the Company for the 2024 fiscal year
 and unaudited financial statements through June 30, 2025 are attached hereto as <u>Schedule 3(h)</u>. Such financial statements have been prepared in accordance with United States generally
 accepted accounting principles applied on a consistent basis during the periods involved
 ()"**GAAP** "), except as may be otherwise specified in such financial statements
 or the notes thereto and except that unaudited financial statements may not contain all footnotes
 required by GAAP, and fairly present in all material respects the financial position of the
 Company and its consolidated Subsidiaries as of and for the dates thereof and the results
 of operations and cash flows for the periods then ended, subject, in the case of unaudited
 statements, to normal, immaterial, year-end adjustments.

(i) <u>Material Changes; Undisclosed Events, Liabilities or Developments</u>. Since the date of the latest
 financial statements attached hereto as <u>Schedule 3(h)</u>, (i) there has been no event,
 occurrence or development that has had or that could reasonably be expected to result in
 a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent
 or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary
 course of business consistent with past practice, (B) liabilities not required to be reflected
 in the Company's financial statements pursuant to GAAP or disclosed in filings made
 with the Commission and (C) those liabilities disclosed on <u>Schedule 3(i)</u>, (iii) the
 Company has not altered its method of accounting, (iv) the Company has not declared or made
 any dividend or distribution of cash or other property to its stockholders or purchased,
 redeemed or made any agreements to purchase or redeem any shares of its capital stock and
 (v) the Company has not issued any equity securities to any officer, director or any Person
 that, directly or indirectly through one or more intermediaries, controls or is controlled
 by or is under common control with a Person, as such terms are used in and construed under
 Rule 405 under the Securities Act ()"**Affiliate** "), except pursuant to existing
 Company stock option plans.

(j) <u>Litigation</u>.
 Except as set forth on <u>Schedule 3(j)</u>, there is no action, suit, inquiry, notice of
 violation, proceeding or investigation pending or, to the knowledge of the Company, threatened
 against or affecting the Company, any Subsidiary or any of their respective properties before
 or by any court, arbitrator, governmental or administrative agency or regulatory authority
 (federal, state, county, local or foreign) (collectively, an "**Action** ")
 which (i) adversely affects or challenges the legality, validity or enforceability of any
 of the Transaction Documents or the Shares or (ii) could, if there were an unfavorable decision,
 have or reasonably be expected to result in a Material Adverse Effect. Except as set forth
 on <u>Schedule 3(j)</u>, neither the Company nor any Subsidiary, nor any director or officer
 thereof, is or has been the subject of any Action involving a claim of violation of or liability
 under federal or state securities laws or a claim of breach of fiduciary duty. There has
 not been, and to the knowledge of the Company, there is not pending or contemplated, any
 investigation by the Commission involving the Company or any current or former director or
 officer of the Company.

(k) <u>Labor Relations</u>. No labor dispute exists or, to the knowledge of the Company, is imminent with
 respect to any of the employees of the Company, which could reasonably be expected to result
 in a Material Adverse Effect. None of the Company's or its Subsidiaries' employees
 is a member of a union that relates to such employee's relationship with the Company
 or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective
 bargaining agreement, and the Company and its Subsidiaries believe that their relationships
 with their employees are good. To the knowledge of the Company, no executive officer of the
 Company or any Subsidiary, is, or is now expected to be, in violation of any material term
 of any employment contract, confidentiality, disclosure or proprietary information agreement
 or non-competition agreement, or any other contract or agreement or any restrictive covenant
 in favor of any third party, and the continued employment of each such executive officer
 does not subject the Company or any of its Subsidiaries to any liability with respect to
 any of the foregoing matters. The Company and its Subsidiaries are in compliance with all
 U.S. federal, state, local and foreign laws and regulations relating to employment and employment
 practices, terms and conditions of employment and wages and hours, except where the failure
 to be in compliance could not, individually or in the aggregate, reasonably be expected to
 have a Material Adverse Effect.

(l) <u>Compliance</u>.
 Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no
 event has occurred that has not been waived that, with notice or lapse of time or both, would
 result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary
 received notice of a claim that it is in default under or that it is in violation of, any
 indenture, loan or credit agreement or any other agreement or instrument to which it is a
 party or by which it or any of its properties is bound (whether or not such default or violation
 has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator
 or other governmental authority or (iii) is or has been in violation of any statute, rule,
 ordinance or regulation of any governmental authority, including without limitation all foreign,
 federal, state and local laws relating to taxes, environmental protection, occupational health
 and safety, product quality and safety and employment and labor matters, except in each case
 as could not have or reasonably be expected to result in a Material Adverse Effect.

(m) <u>Environmental Laws</u>. The Company and its Subsidiaries (i) are in compliance with all federal, state,
 local and foreign laws relating to pollution or protection of human health or the environment
 (including ambient air, surface water, groundwater, land surface or subsurface strata), including
 laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants,
 contaminants, or toxic or hazardous substances or wastes (collectively, "**Hazardous Materials**") into the environment, or otherwise relating to the manufacture, processing,
 distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials,
 as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments,
 licenses, notices or notice letters, orders, permits, plans or regulations, issued, entered,
 promulgated or approved thereunder ()"**Environmental Laws** "); (ii) have received
 all permits licenses or other approvals required of them under applicable Environmental Laws
 to conduct their respective businesses; and (iii) are in compliance with all terms and conditions
 of any such permit, license or approval where in each clause (i), (ii) and (iii), the failure
 to so comply could be reasonably expected to have, individually or in the aggregate, a Material
 Adverse Effect.

(n) <u>Regulatory Permits</u>. The Company and the Subsidiaries possess all certificates, authorizations and
 permits issued by the appropriate federal, state, local or foreign regulatory authorities
 necessary to conduct their respective businesses, except where the failure to possess such
 permits could not reasonably be expected to result in a Material Adverse Effect ()"**Material Permits** "), and neither the Company nor any Subsidiary has received any notice of
 proceedings relating to the revocation or modification of any Material Permit.

(o) <u>Title to Assets</u>. The Company and the Subsidiaries have good and marketable title in fee simple
 to all real property owned by them and good and marketable title in all personal property
 owned by them that is material to the business of the Company and the Subsidiaries, in each
 case free and clear of all Liens, except for (i) Permitted Liens as set forth in <u>Schedule 3(o)</u>, (ii) Liens that do not materially affect the value of such property and do not
 materially interfere with the use made and proposed to be made of such property by the Company
 and the Subsidiaries and (iii) Liens for the payment of federal, state or other taxes, for
 which appropriate reserves have been made therefor in accordance with GAAP and, the payment
 of which is neither delinquent nor subject to penalties. Any real property and facilities
 held under lease by the Company and the Subsidiaries are held by them under valid, subsisting
 and enforceable leases with which the Company and the Subsidiaries are in material compliance.

(p) <u>Intellectual Property</u>. The Company and the Subsidiaries have, or have rights to use, all patents,
 patent applications, trademarks, trademark applications, service marks, trade names, trade
 secrets, inventions, copyrights, licenses and other intellectual property rights and similar
 rights necessary or required for use in connection with their respective businesses and which
 the failure to so have could have a Material Adverse Effect (collectively, the "**Intellectual Property Rights** "). None of, and neither the Company nor any Subsidiary has received
 a notice (written or otherwise) that any of, the Intellectual Property Rights has expired,
 terminated or been abandoned, or is expected to expire or terminate or be abandoned, within
 two (2) years from the date of this Agreement. Neither the Company nor any Subsidiary has
 received a written notice of a claim or otherwise has any knowledge that the Intellectual
 Property Rights violate or infringe upon the rights of any Person, except as could not have
 or reasonably be expected to not have a Material Adverse Effect. To the knowledge of the
 Company, all such Intellectual Property Rights are enforceable and there is no existing infringement
 by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries
 have taken reasonable security measures to protect the secrecy, confidentiality and value
 of all of their intellectual properties, except where failure to do so could not, individually
 or in the aggregate, reasonably be expected to have a Material Adverse Effect.

(q) <u>Insurance</u>.
 The Company and the Subsidiaries are insured by insurers of recognized financial responsibility
 against such losses and risks and in such amounts as are prudent and customary in the businesses
 in which the Company and the Subsidiaries are engaged, including, but not limited to, directors
 and officers insurance coverage at least equal to $1 million. Neither the Company nor any
 Subsidiary has any reason to believe that it will not be able to renew its existing insurance
 coverage as and when such coverage expires or to obtain similar coverage from similar insurers
 as may be necessary to continue its business without a significant increase in cost.

(r) <u>Transactions with Affiliates and Employees</u>. Except as set forth on <u>Schedule 3(r)</u>, none of the
 officers or directors of the Company or any Subsidiary and, to the knowledge of the Company,
 none of the employees of the Company or any Subsidiary is presently a party to any transaction
 with the Company or any Subsidiary (other than for services as employees, officers and directors),
 including any contract, agreement or other arrangement providing for the furnishing of services
 to or by, providing for rental of real or personal property to or from providing for the
 borrowing of money from or lending of money to, or otherwise requiring payments to or from
 any officer, director or such employee or, to the knowledge of the Company, any entity in
 which any officer, director, or any such employee has a substantial interest or is an officer,
 director, trustee, stockholder, member or partner, in each case in excess of $120,000 other
 than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement
 for expenses incurred on behalf of the Company and (iii) other employee benefits, including
 stock option agreements under any stock option plan of the Company.

(s) <u>No Commission; No Other Consideration</u>. No brokerage or finder's fees or commissions
 are or will be payable by the Company or any Subsidiaries to any broker, financial advisor
 or consultant, finder, placement agent, investment banker, bank or other Person with respect
 to the Exchange or other transactions contemplated by the Transaction Documents. The Holders
 shall have no obligation with respect to any fees or with respect to any claims made by or
 on behalf of other Persons for fees of a type contemplated in this Section that may be due
 in connection with the transactions contemplated by the Exchange or the Transaction Documents.
 The Shares are being conveyed exclusively for the exchange of the Original Securities and
 no other consideration has or will be paid for the Shares. The Holders' agreement to
 exercise the Additional Cashless Exercise Warrants is occurring solely to assist the Company
 comply with certain regulatory requirements in connection with its planned IPO and not as
 additional consideration for the Shares to be issued in connection with the Exchange.

(t) <u>No Registration</u>. Assuming the accuracy of the Holders' representations and warranties
 set forth in Section 4, no registration under the Securities Act is required for the Exchange
 as contemplated hereby.

(u) <u>Investment Company</u>. The Company is not, and is not an Affiliate of, and immediately after receipt
 of payment for the Shares, will not be or be an Affiliate of, an "investment company"
 within the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct
 its business in a manner so that it will not become an "investment company" subject
 to registration under the Investment Company Act of 1940, as amended.

(v) <u>Registration Rights</u>. No Person other than the Holders has any right to cause the Company or any Subsidiary
 to effect the registration under the Securities Act of any securities of the Company or any
 Subsidiaries except as provided in the Transaction Documents.

(w) <u>Application of Takeover Protections</u>. The Company and the Board of Directors have taken all necessary
 action, if any, in order to render inapplicable any control share acquisition, business combination,
 poison pill (including any distribution under a rights agreement) or other similar anti-takeover
 provision under the Company's certificate of incorporation (or similar charter documents)
 or the laws of its state of incorporation that is or could become applicable to the Holders
 as a result of the Holders and the Company fulfilling their obligations or exercising their
 rights under the Transaction Documents, including without limitation, as a result of the
 Company's issuance of the Shares and the Holders' ownership of the Shares.

(x) <u>Disclosure</u>.
 The representations and warranties contained in this Agreement or any other Transaction Document
 regarding the Company and its Subsidiaries, their respective businesses and the transactions
 contemplated hereby, including the Disclosure Schedules to this Agreement, are true and correct
 and do not contain any untrue statement of a material fact or omit to state any material
 fact necessary in order to make the statements made therein, in the light of the circumstances
 under which they were made, not misleading.

(y) <u>No Integrated Offering; Exemption Representations</u>. Assuming the accuracy of the Holders'
 representations and warranties set forth in Section 4, neither the Company, nor any of its
 Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
 any offers or sales of any security or solicited any offers to buy any security, under circumstances
 that would cause this Exchange or the issuance of the Shares pursuant to the Transaction
 Documents to be integrated with prior offerings by the Company for purposes of the Securities
 Act which would prevent the Company from delivering the Shares to the Holders pursuant to
 Section 3(a)(9) and/or Section 4(a)(2) of the Securities Act or require the registration
 of any such securities under the Securities Act, nor will the Company take any action or
 steps that would cause the Exchange, issuance and delivery of the Shares to be integrated
 with other offerings to the effect that the delivery of the Shares to the Holders would not
 be deemed exempt pursuant to Section 3(a)(9) and/or Section 4(a)(2) of the Securities Act.
 Other than legal counsel, the Company has not engaged any third parties to assist in the
 solicitation with respect to the Exchange.

(z) <u>Solvency</u>.
 Based on the consolidated financial condition of the Company as of the Closing Date, after
 giving effect to the Exchange, (i) the fair saleable value of the Company's assets
 exceeds the amount that will be required to be paid on or in respect of the Company's
 existing debts and other liabilities (including known contingent liabilities) as they mature,
 (ii) the Company's assets do not constitute unreasonably small capital to carry on
 its business as now conducted and as proposed to be conducted including its capital needs
 taking into account the particular capital requirements of the business conducted by the
 Company, consolidated and projected capital requirements and capital availability thereof,
 and (iii) the current cash flow of the Company, together with the proceeds the Company would
 receive, were it to liquidate all of its assets, after taking into account all anticipated
 uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities
 when such amounts are required to be paid. The Company does not intend to incur debts beyond
 its ability to pay such debts as they mature (taking into account the timing and amounts
 of cash to be payable on or in respect of its debt). The Company has no knowledge of any
 facts or circumstances which lead it to believe that it will file for reorganization or liquidation
 under the bankruptcy or reorganization laws of any jurisdiction within one year from the
 Closing Date. <u>Schedule 3(z)</u> sets forth as of the date hereof all outstanding secured
 and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or
 any Subsidiary has commitments. For the purposes of this Agreement, "**Indebtedness** "
 means (x) any liabilities for borrowed money or amounts owed in excess of $25,000 (other
 than trade accounts payable incurred in the ordinary course of business), (y) all guaranties,
 endorsements and other contingent obligations in respect of indebtedness of others, whether
 or not the same are or should be reflected in the Company's consolidated balance sheet
 (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit
 or collection or similar transactions in the ordinary course of business; and (z) the present
 value of any lease payments in excess of $25,000 due under leases required to be capitalized
 in accordance with GAAP. Neither the Company nor any Subsidiary is in default with respect
 to any Indebtedness.

(aa) <u>Tax Status</u>. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material
Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local income and all
foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid
all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns,
reports and declarations and (iii) has set aside on its books provisions reasonably adequate for the payment of all material taxes for
periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount
claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or of any Subsidiary know of no basis
for any such claim.

(bb) <u>[Reserved]</u>.

(cc) <u>Foreign Corrupt Practices</u>. Neither the Company nor any Subsidiary, nor to the knowledge of the
 Company or any Subsidiary, any agent or other person acting on behalf of the Company or any
 Subsidiary, has (i) directly or indirectly, used any funds for unlawful contributions, gifts,
 entertainment or other unlawful expenses related to foreign or domestic political activity,
 (ii) made any unlawful payment to foreign or domestic government officials or employees or
 to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed
 to disclose fully any contribution made by the Company or any Subsidiary (or made by any
 person acting on its behalf of which the Company is aware) which is in violation of law or
 (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act
 of 1977.

(dd) <u>Accountants</u>.
 The Company's accounting firm is set forth on <u>Schedule 3(dd)</u> of the Disclosure
 Schedules.

(ee) <u>Seniority</u>.
 As of the Closing Date, no Indebtedness or other claim against the Company is senior to the
 Shares in right of payment, whether with respect to interest or upon liquidation or dissolution,
 or otherwise, other than indebtedness secured by purchase money security interests (which
 is senior only as to underlying assets covered thereby) and capital lease obligations (which
 is senior only as to the property covered thereby).

(ff) <u>No Disagreements with Accountants and Lawyers</u>. There are no disagreements of any kind presently
 existing, or reasonably anticipated by the Company to arise, between the Company and the
 accountants and lawyers formerly or presently employed by the Company and the Company is
 current with respect to any fees owed to its accountants and lawyers which could affect the
 Company's ability to perform any of its obligations under any of the Transaction Documents.

(gg) <u>Acknowledgment Regarding Section 3(a)(9) Exchange</u>. The Company acknowledges and agrees that each of
 the Holders is acting solely in the capacity of an arm's length third party with respect
 to the Transaction Documents and the transactions contemplated thereby. The Company further
 acknowledges that no Holder is acting as a financial advisor or fiduciary of the Company
 (or in any similar capacity) with respect to the Transaction Documents and the transactions
 contemplated thereby and any advice given by any Holder or any of their respective representatives
 or agents in connection with the Transaction Documents and the transactions contemplated
 thereby is merely incidental to the Exchange. The Company further represents to each Holder
 that the Company's decision to enter into this Agreement and the other Transaction
 Documents has been based solely on the independent evaluation of the transactions contemplated
 hereby by the Company and its representatives.

(hh) <u>Stock Option Plans</u>. Each stock option granted by the Company under the Company's stock
 option plan was granted (i) in accordance with the terms of the Company's stock option
 plan and (ii) with an exercise price at least equal to the fair market value of the Common
 Stock on the date such stock option would be considered granted under GAAP and applicable
 law. No stock option granted under the Company's stock option plan has been backdated.
 The Company has not knowingly granted, and there is no and has been no Company policy or
 practice to knowingly grant, stock options prior to, or otherwise knowingly coordinate the
 grant of stock options with, the release or other public announcement of material information
 regarding the Company or its Subsidiaries or their financial results or prospects.

(ii) <u>Office of Foreign Assets Control</u>. Neither the Company nor any Subsidiary nor, to the Company's
 knowledge, any director, officer, agent, employee or affiliate of the Company or any Subsidiary
 is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control
 of the U.S. Treasury Department ()"**OFAC** ").

(jj) <u>U.S. Real Property Holding Corporation</u>. The Company is not and has never been a U.S. real
 property holding corporation within the meaning of Section 897 of the Internal Revenue Code
 of 1986, as amended (the "**Code** "), and the Company shall so certify upon
 any Holder's request.

(kk) <u>Bank Holding Company Act</u>. Neither the Company nor any of its Subsidiaries or Affiliates is
 subject to the Bank Holding Company Act of 1956, as amended (the "**BHCA** ")
 and to regulation by the Board of Governors of the Federal Reserve System (the "**Federal Reserve** "). Neither the Company nor any of its Subsidiaries or Affiliates owns or
 controls, directly or indirectly, five percent (5%) or more of the outstanding shares of
 any class of voting securities or twenty-five percent or more of the total equity of a bank
 or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither
 the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over
 the management or policies of a bank or any entity that is subject to the BHCA and to regulation
 by the Federal Reserve.

(ll) <u>Money Laundering</u>. The operations of the Company and its Subsidiaries are and have been conducted
 at all times in compliance with applicable financial record- keeping and reporting requirements
 of the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable money
 laundering statutes and applicable rules and regulations thereunder (collectively, the "**Money Laundering Laws** "), and no Action or Proceeding by or before any court or governmental
 agency, authority or body or any arbitrator involving the Company or any Subsidiary with
 respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any
 Subsidiary, threatened.

(mm) <u>No Disqualification Events</u>. None of the Company, any of its predecessors, any affiliated
 issuer, any director, executive officer, other officer of the Company participating in the
 Exchange hereunder, any beneficial owner of 20% or more of the Company's outstanding
 voting equity securities, calculated on the basis of voting power, nor any promoter (as that
 term is defined in Rule 405 under the Securities Act) connected with the Company in any capacity
 at the time of issuance (each, an "**Issuer Covered Person**" and, together,
 "**Issuer Covered Persons**") is subject to any of the "Bad Actor"
 disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a "**Disqualification Event** "), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3).
 The Company has exercised reasonable care to determine whether any Issuer Covered Person
 is subject to a Disqualification Event. The Company has complied, to the extent applicable,
 with its disclosure obligations under Rule 506(e), and has furnished to the Holders a copy
 of any disclosures provided thereunder, including the disclosures set forth on <u>Schedule 3(mm)</u>.

(nn) <u>Other Covered Persons</u>. The Company is not aware of any person (other than any Issuer Covered
 Person) that has been or will be paid (directly or indirectly) remuneration for solicitation
 in connection with the issuance of any Shares.

(oo) <u>Notice of Disqualification Events</u>. The Company will notify the Holders in writing, prior to
 the Closing Date of (i) any Disqualification Event relating to any Issuer Covered Person
 and (ii) any event that would, with the passage of time, become a Disqualification Event
 relating to any Issuer Covered Person.

(pp) <u>Shell Company Status</u>. The Company is not, nor has it ever been, an issuer identified in Rule
 144(i)(1) under the Securities Act.

4. **Representations, Warranties and Agreements of the Holders**. Each Holder, for itself and for no other Holder, hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein, in which case they shall be accurate as of such date):

(a) <u>Ownership of the Original Securities</u>. The Holder is the legal and beneficial owner of the Original
 Securities. The Holder paid for the Original Securities and has continuously held the Original
 Securities since its purchase. The Holder owns the Original Securities outright and free
 and clear of any options, contracts, agreements, liens, security interests, or other encumbrances.
 The Holder acknowledges, understands and agrees that the Shares are being exchanged and/or
 issued in consideration for the Original Securities hereunder pursuant to the exemption under
 Section 3(a)(9) and/or Section 4(a)(2) of the Securities Act.

(b) <u>Organization; Authority</u>. Such Holder is an entity duly incorporated or formed, validly existing and
 in good standing under the laws of the jurisdiction of its incorporation or formation with
 full right, corporate, partnership, limited liability company or similar power and authority
 to enter into and to consummate the transactions contemplated by the Transaction Documents
 and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery
 of the Transaction Documents and performance by such Holder of the transactions contemplated
 by the Transaction Documents have been duly authorized by all necessary corporate, partnership,
 limited liability company or similar action, as applicable, on the part of such Holder. Each
 Transaction Document to which it is a party has been duly executed by such Holder, and when
 delivered by such Holder in accordance with the terms hereof, will constitute the valid and
 legally binding obligation of such Holder, enforceable against it in accordance with its
 terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
 reorganization, moratorium and other laws of general application affecting enforcement of
 creditors' rights generally, (ii) as limited by laws relating to the availability of
 specific performance, injunctive relief or other equitable remedies and (iii) insofar as
 indemnification and contribution provisions may be limited by applicable law.

(c) <u>Own Account</u>. Such Holder understands that the Shares are "restricted securities"
 and have not been registered under the Securities Act or any applicable state securities
 law and is acquiring the Shares as principal for its own account and not with a view to or
 for distributing or reselling such Shares or any part thereof in violation of the Securities
 Act or any applicable state securities law, has no present intention of distributing any
 of such Shares in violation of the Securities Act or any applicable state securities law
 and has no direct or indirect arrangements or understandings with any other persons to distribute
 or regarding the distribution of such Shares in violation of the Securities Act or any applicable
 state securities law (this representation and warranty not limiting such Holder's right
 to sell the Shares pursuant to an effective registration statement or otherwise in compliance
 with applicable federal and state securities laws). Such Holder is acquiring the Shares hereunder
 in the ordinary course of its business.

(d) <u>Status</u>.
 Such Holder is: (i) an "accredited investor" as defined in Rule 501(a)(1), (a)(2),
 (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a "qualified institutional
 buyer" as defined in Rule 144A(a) under the Securities Act.

(e) <u>Experience of Holders</u>. Such Holder, either alone or together with its representatives, has such
 knowledge, sophistication and experience in business and financial matters so as to be capable
 of evaluating the merits and risks of the Exchange, and has so evaluated such merits and
 risks. Such Holder is able to bear the economic risk of holding the Shares and, at the present
 time, is able to afford a complete loss relating to such Exchange.

(f) <u>General Solicitation</u>. Such Holder is not, to such Holder's knowledge, the Exchange was
 not effected as a result of any advertisement, article, notice or other communication regarding
 the Shares published in any newspaper, magazine or similar media or broadcast over television
 or radio or presented at any seminar or, to the knowledge of such Holder, any other general
 solicitation or general advertisement.

(g) <u>No Public Market</u>. Such Holder understands that no public market now exists for the Shares,
 and that the Company has made no assurances that a public market will ever exist for the
 Shares.

(h) <u>Access to Information</u>. Such Holder acknowledges that (i) it has conducted its own investigation
 of the Company and the terms of the Certificate of Designation, (ii) it has had access to
 such financial and other information as it deems necessary to make its decision to participate
 in the Exchange and (iii) has been offered the opportunity to conduct such review and analysis
 of the business, assets, condition, operations and prospects of the Company and its Subsidiaries
 and to ask questions of the Company and received answers thereto, each as it deemed necessary
 in connection with the decision to participate in the Exchange. Such Holder further acknowledges
 that it has had such opportunity to consult with its own counsel, financial and tax advisors
 and other professional advisors as it believes is sufficient for purposes of participating
 in the Exchange. Neither the foregoing nor the representations contained in this Section
 4 shall modify, amend or affect such Holder's right to rely on the Company's
 representations and warranties contained in this Agreement or any representations and warranties
 contained in any other Transaction Document or any other document or instrument executed
 and/or delivered in connection with this Agreement or the consummation of the transactions
 contemplated hereby.

(i) <u>Waiver of Piggyback Registration Rights in Connection with the IPO</u>. To the extent that the IPO
 would otherwise trigger any rights of any Holder under Section 4.19 or 4.20 of the Prior
 Purchase Agreements or any similar "piggyback registration rights provision, each Holder
 hereby waives any and all rights it may have to (i) request or require the inclusion of any
 shares of Common Stock or any securities convertible into or exercisable or exchangeable
 for Common Stock held by such Holder in the registration statement filed by the Company in
 connection with the IPO, and (ii) receive any notice with respect to such registration or
 the opportunity to participate therein. Further, each Holder hereby waives any and all additional
 rights, including any right to notice, that arise under the Prior Purchase Agreements applicable
 to such Holder solely as a result of the IPO (and not with respect to any subsequent registration
 or offering).

(j) <u>Waiver of Reset Provision in Connection with the IPO, Preferred Stock and Future Securities</u>.
 To the extent that (i) the IPO or (ii) the issuance or conversion of the Preferred Stock
 and Future Securities would constitute a Dilutive Issuance for purposes of Section 5(b) of
 the Existing Debentures, each Holder hereby waives any and all rights it may have with respect
 to: (i) any adjustment to the applicable Conversion Price (as defined in the Existing Debenture
 applicable to such Holder); and (ii) any increase or issuance of additional Conversion Shares
 (as defined in the Existing Debenture applicable to such Holder), in each case, as a result
 of the IPO or the issuance or conversion of the Preferred Stock and Future Securities. Each
 Holder additionally waives: (x) any rights to the "Dilutive Issuance Notice"
 pursuant to Section 5(b) of the Existing Debentures applicable to such Holder, to the extent
 applicable with respect to the IPO or the issuance or conversion of the Preferred Stock and
 Future Securities; (y) any rights to a Mandatory Redemption and to the use of proceeds for
 the purpose of Mandatory Redemption as defined in, and pursuant to, Section 6(c) of the Existing
 Debentures, as the case may be, to the extent applicable to such Holder in connection with
 the IPO or the issuance or conversion of the Preferred Stock and Future Securities; and (z)
 the applicability of Section 7 (Negative Covenants) of the Existing Debentures applicable
 to such Holder in connection with, and to the extent applicable to, the IPO or the issuance
 or conversion of the Preferred Stock and Future Securities. Further, each Holder hereby waives
 any and all additional Holder's Rights, including any right to notice, that arise under
 the Existing Debentures applicable to such Holder solely as a result of (i) the IPO or (ii)
 the issuance or conversion of the Preferred Stock and Future Securities (and not any other
 Dilutive Issuance).

(k) <u>Waiver of Dilutive Issuance in Connection with the IPO, Preferred Stock and Future Securities</u>.
 To the extent that (i) the IPO or (ii) the issuance or conversion of the Preferred Stock
 and Future Securities would constitute a Dilutive Issuance for purposes of Section 3(b) of
 the Existing Warrants, each Holder hereby waives any and all rights it may have with respect
 to: (i) any adjustment to the applicable Exercise Price (as defined in the Existing Warrant
 applicable to such Holder); and (ii) any increase or issuance of additional Warrant Shares
 (as defined in the Existing Warrant applicable to such Holder), in each case, as a result
 of the IPO or the issuance or conversion of Preferred Stock and Future Securities. Each Holder
 additionally waives any rights to the "Dilutive Issuance Notice" pursuant to
 Section 3(b) of the Existing Warrants applicable to such Holder, to the extent applicable
 with respect to the IPO or the issuance or conversion of the Preferred Stock and Future Securities.
 Further, each Holder hereby waives any and all additional Holder's Rights, including
 any right to notice, that arise under the Existing Warrants applicable to such Holder solely
 as a result of (i) the IPO or (ii) the issuance or conversion of the Preferred Stock and
 Future Securities (and not any other Dilutive Issuance).

(l) <u>Consent to Issuance of Preferred Stock</u>. Each Holder hereby consents to the issuance of the Preferred
 Stock.

The Company acknowledges and agrees that the representations contained in this Section 4 shall not modify, amend or affect such Holder's right to rely on the Company's representations and warranties contained in this Agreement or any representations and warranties contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this Agreement or the consummation of the transactions contemplated hereby.

5. **Transfer Restrictions**. Each Holder acknowledges and agrees as follows:

(a) None
 of the Shares have been registered under the Securities Act, in reliance on the exemption
 from registration provided by Section 3(a)(9) and Section 4(a)(2) thereof; and the undersigned
 will not immediately be entitled to the benefits of Rule 144 promulgated under the Securities
 Act ()"**Rule 144**") with respect to the Shares or the Underlying Shares.

(b) Each
 Holder understands that there are substantial restrictions on the transferability of the
 Shares and the Underlying Shares, and that the certificates or book entries representing
 the Shares and the Underlying Shares shall bear restrictive legends in substantially the
 following form, as applicable (and a stop-transfer order may be placed against transfer of
 such certificates or other instruments):

"THIS SECURITY [AND THE SECURITIES FOR WHICH THIS SECURITY IS CONVERTIBLE] [HAVE][HAS] BEEN ACQUIRED FOR INVESTMENT AND [HAVE][HAS] NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES OR "BLUE SKY LAWS". SUCH SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED, ASSIGNED, HYPOTHECATED OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT (OR COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH ACT), OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED. NOTWITHSTANDING THE FOREGOING, THIS SECURITY [AND THE SECURITIES FOR WHICH THIS SECURITY IS CONVERTIBLE] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED THEREBY WITH A REGISTERED BROKER-DEALER THAT IS AN "ACCREDITED INVESTOR" AS DEFINED IN RULE 501(a) UNDER THE ACT."

(c) The
 Shares and the Underlying Shares may only be disposed of in compliance with state and federal
 securities laws. The legend set forth above shall be removed and the Company shall issue,
 or cause its transfer agent to issue, within one (1) business day of the request of the Holder
 (such date, the "**Legend Removal Date** "), a certificate or book entries
 for the Shares or Underlying Shares, as applicable, without such legend to the holder of
 the Shares or Underlying Shares, respectively, upon which it is stamped, if (a) such resale
 of the Underlying Shares are registered pursuant to the Registration Rights Agreement (as
 defined below) under the Securities Act, (b) such Holder delivers to the Company an opinion
 of counsel, reasonably acceptable to the Company, that a disposition of such Shares or Underlying
 Shares is being made pursuant to an exemption from such registration, or (c) any other evidence
 reasonably requested and reasonably satisfactory to counsel to the Company to the effect
 that the proposed sale, pledge, or transfer of the Shares or Underlying Shares may be effected
 without registration under the Securities Act. The Company will not require a legal opinion
 (x) in any transaction in compliance with Rule 144, provided that Holder provides customary
 representations regarding Holder's eligibility to sell the applicable securities under
 Rule 144; or (y) in any transaction in which such Holder distributes Shares to an Affiliate
 of such Holder for no consideration.

(d) In
 addition to such Holder's other available remedies, the Company shall pay to a Holder,
 in cash, (i) as partial liquidated damages and not as a penalty, for each $1,000 of Shares
 or Underlying Shares (based on the VWAP of the shares of Common Stock on the date such Shares
 or Underlying Shares are submitted to the Company or its transfer agent) delivered for removal
 of the restrictive legend from any of the Securities and subject to Section 5(c), $10 per
 trading day (increasing to $20 per trading day five (5) trading days after such damages have
 begun to accrue) for each trading day after the Legend Removal Date until such certificate
 or book entries are delivered without a legend and (ii) if the Company fails to (a) issue
 and deliver (or cause to be delivered) to such Holder by the Legend Removal Date a certificate
 or book entries representing the Shares or Underlying Shares so delivered to the Company
 by such Holder that is free from all restrictive and other legends and (b) if after the Legend
 Removal Date, such Holder purchases (in an open market transaction or otherwise) shares of
 Common Stock or other Company securities to deliver in satisfaction of a sale by such Holder
 of all or any portion of the number of shares of Common Stock or such other securities, or
 a sale of a number of shares of Common Stock equal to all or any portion of the number of
 Shares or Underlying Shares, that such Holder anticipated receiving from the Company without
 any restrictive legend, then an amount equal to the excess of such Holder's total purchase
 price (including brokerage commissions and other out-of-pocket expenses, if any) for the
 shares of Common Stock or other securities so purchased (including brokerage commissions
 and other out-of-pocket expenses, if any) over the product of (A) such number of Shares or
 Underlying Shares that the Company was required to deliver to such Holder by the Legend Removal
 Date multiplied by (B) the lowest closing sale price of the shares of Common Stock on any
 trading day during the period commencing on the date of the delivery by such Holder to the
 Company of the applicable Shares or Underlying Shares (as the case may be) and ending on
 the date of such delivery and payment under this Section 5(d).

6. **Covenants and Other Rights**.

(a) <u>Registration Rights Agreement</u>. Concurrently with the execution of this Agreement, the Company and
 the Holders shall execute a Registration Rights Agreement in form agreed upon by the Company
 and the Holders and attached hereto as Exhibit B, providing for the registration of the resale
 of the Underlying Shares (the "**Registration Rights Agreement** ").

(b) <u>Lock-Up Agreements</u>. Each Holder hereby agrees to execute and deliver, in connection with the
 IPO and prior to the Closing Date, lock-up agreements (the "**Lock-Up Agreements** ")
 substantially in the form attached hereto as Exhibit C, in customary form with respect to
 securities of the Company held by such Holder, including, but not limited to, the Shares
 and the Underlying Shares, providing for a lock-up period of 180 calendar days from the completion
 of the IPO, subject to the terms provided therein.

(c) <u>Listing of Common Stock</u>. Upon the consummation of the IPO, the Company shall use its commercially
 reasonable efforts to secure the listing of the Underlying Shares on the Trading Market,
 if any, upon which shares of Common Stock are then listed (subject to official notice of
 issuance) and shall maintain such listing, so long as any other shares of Common Stock shall
 be so listed. Following such initial listing, the Company shall use its reasonable best efforts
 to maintain the Common Stock's listing on the Trading Market. Following such initial
 listing, neither the Company nor any of its Subsidiaries shall take any action that would
 be reasonably expected to result in the delisting or suspension of the Common Stock on the
 Trading Market, unless the Common Stock is immediately thereafter traded on the New York
 Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market,
 or the Nasdaq Capital Market. The Company shall pay all fees and expenses in connection with
 satisfying its obligations under this Section 6(b). From and after the date of consummation
 of the IPO, the Company shall use commercially reasonable efforts to ensure that its shares
 of Common Stock are and remain eligible for the "Deposit and Withdrawal at Custodian"
 (DWAC) service of the Deposit Trust Corporation and not subject to any restriction or limitation
 imposed by or on behalf of the Deposit Trust Corporation on any of its services or any other
 restriction or limitation on the use of the services provided by the Deposit Trust Corporation
 (DTC chill).

(d) <u>Securities Laws Disclosure; Publicity</u>. From and after the date the Company makes its initial public
 filing with the Commission (whether it be a registration statement or current or periodic
 report, which filing will include the material terms of the transactions contemplated hereby
 and attach forms of the Transaction Documents as exhibits thereto) (the "**Disclosure Date** "), the Company represents to the Holders that it shall have publicly disclosed
 the material terms and conditions of the transactions contemplated by the Transaction Documents
 and all other material, non-public information required to be disclosed in such initial public
 filing with the Commission. The Company and each Holder shall consult with each other in
 issuing any other press releases with respect to the transactions contemplated hereby, and
 neither the Company nor any Holder shall issue any such press release nor otherwise make
 any such public statement without the prior consent of the Company, with respect to any press
 release of any Holder, or without the prior consent of each Holder, with respect to any press
 release of the Company, which consent shall not unreasonably be withheld or delayed, except
 if such disclosure is required by law, in which case the disclosing party shall promptly
 provide the other party with prior notice of such public statement or communication. Notwithstanding
 the foregoing, the Company shall not publicly disclose the name of any Holder, or include
 the name of any Holder in any filing with the Commission or any regulatory agency or Trading
 Market, without the prior written consent of such Holder, except (a) as required by federal
 securities law in connection with the filing of Transaction Documents with the Commission
 and (b) to the extent such disclosure is required by law or Trading Market regulations, in
 which case the Company shall provide the Holders with prior notice of such disclosure permitted
 under this clause (b). The Company covenants and agrees that from and after the Disclosure
 Date until the date on which no Shares or Underlying Shares are held by the Holders or their
 respective Affiliates, (i) all reports, schedules, forms, statements, and other documents
 required to be filed by the Company under the Securities Act and the Securities Exchange
 Act of 1934, as amended, and all rules and regulations promulgated by the Commission thereunder
 (the "**Exchange Act** "), including pursuant to Section 13(a) or 15(d) thereto,
 will conform in all material respects to the requirements of the Securities Act and Exchange
 Act and the applicable rules and regulations, as applicable, and will not contain any untrue
 statement of a material fact or omit to state a material fact necessary to make the statements
 therein, in light of the circumstances under which they were made not misleading and (ii)
 the Company covenants to timely file (or obtain extensions in respect thereof and file within
 the applicable grace period) all reports required to be filed by the Company after the date
 hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting
 requirements of the Exchange Act. The financial statements and other financial data included
 in such reports shall comply in all material respects with applicable accounting requirements
 and Commission rules and regulations and shall fairly present in all material respects the
 consolidated financial position and results of operations and cash flows of the Company and
 its Subsidiaries as of the dates and for the periods indicated therein.

(e) <u>Financial Statements</u>. For so long as any Holder holds any Shares or Underlying Shares, the Company
 shall deliver to such Holder, upon request, copies of its quarterly and annual financial
 statements, and such other material financial or corporate information reasonably requested
 by such Holder. If the Company becomes subject to Commissions reporting obligations, it shall
 be deemed to have satisfied such delivery obligations to the extent such materials are made
 publicly available on the Commission's EDGAR website.

7. **Conditions to Company**'**s Obligations at Closing**. The Company's obligation to complete the Exchange and deliver the Shares to the Holders on the Closing Date, shall be subject to the following conditions to the extent not waived by the Company:

(a) <u>Representations and Warranties</u>. The representations and warranties made by the Holders in Section 4 hereof
 shall be true and correct in all material respects when made, and shall be true and correct
 in all material respects on the Closing Date, as the case may be, with the same force and
 effect as if they had been made on and as of said date.

(b) <u>Performance</u>.
 Each Holder shall have performed in all material respects all obligations and covenants herein
 required to be performed by them on or prior to the Closing Date.

(c) <u>Receipt of Executed Documents</u>. Each Holder shall have executed and delivered to the Company each
 of the Transaction Documents that requires its signature.

(d) <u>Registration Statement</u>. The Registration Statement shall have been declared effective by the Commission,
 and no stop order suspending its effectiveness shall be in effect, and no proceedings for
 such purpose shall have been instituted or threatened by the Commission.

8. **Conditions to Holder's Obligations at Closing**. Each Holder's obligation to accept delivery of the Shares and to effect the Exchange on the Closing Date shall be subject to the following conditions, to the extent not waived by the Holders of a majority of the Shares:

(a) <u>Representations and Warranties Correct</u>. The representations and warranties made by the Company in Section
 3 hereof shall be true and correct in all material respects (except to the extent any such
 representation and warranty is qualified by materiality or reference to Material Adverse
 Effect, in which case, such representation and warranty shall be true and correct in all
 respects as so qualified) as of, and as if made on, the date of this Agreement and as of
 the Closing Date, except to the extent any such representation or warranty expressly speaks
 as of an earlier date, in which case such representation or warranty shall be true and correct
 as of such earlier date.

(b) <u>Performance</u>.
 The Company shall have performed in all material respects all obligations and covenants herein
 required to be performed by it on or prior to the Closing Date.

(c) <u>Certificate</u>.
 The Chief Executive Officer of the Company shall execute and deliver to the Holders a certificate
 to the effect that the representations and warranties of the Company in Section 3 hereof
 are true and correct (except to the extent any such representation and warranty is qualified
 by materiality or reference to Material Adverse Effect, in which case, such representation
 and warranty shall be true and correct in all respects as so qualified) as of, and as if
 made on, the date of this Agreement and as of the Closing Date and that the Company has satisfied
 in all material respects all of the conditions set forth in this Section 8.

(d) <u>Good Standing</u>. The Company and each of its Subsidiaries are corporations or other business entities duly organized, validly existing,
 and in good standing under the laws of their respective jurisdictions of formation.

(e) <u>Judgments</u>.
 No judgment, writ, order, injunction, award or decree of or by any court, or judge, justice or magistrate, including any bankruptcy
 court or judge, or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall have
 been instituted by any governmental authority, enjoining or preventing the consummation of the transactions contemplated hereby.

(f) <u>No Suspension</u>. On or after the Disclosure Date, no suspension of trading shall have been imposed by any Trading Market, the Commission
 or any other governmental regulatory body with respect to public trading in the Common Stock.

(g) <u>Amended and Restated Charter and Series A Certificate of Designation</u>. The Company shall have filed (i) the Amended and Restated Charter
 with the Secretary of State of the State of Delaware, authorizing the issuance of blank check preferred stock, which shall be in
 substantially the form attached hereto as <u>Exhibit D</u>, and (ii) the Series A Certificate of Designation with the Secretary of
 State of the State of Delaware, which Series A Certificate of Designation shall be substantially in the form attached as <u>Exhibit A</u> hereto.

(h) <u>Registration Statement</u>. The Registration Statement shall have been declared effective by the Commission, and no stop order suspending its
 effectiveness shall be in effect, and no proceedings for such purpose shall have been instituted or threatened by the Commission.

9. **U.S. Federal Income Tax Matters.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 parties intend that, unless otherwise required pursuant to a final determination within the meaning of Section 1313(a) of the Code,
 (i) the Company shall treat the Shares as stock that participates in corporate growth to a significant extent within the meaning
 of Section 1.305-5(a) of the Treasury Regulations, and (ii) for U.S. federal income tax purposes, pursuant to Section 108(e)(8) of
 the Code, the Company be treated as having satisfied the debentures being exchanged pursuant to the Exchange for an amount of cash
 equal to the fair market value of the Preferred Stock being issued to the Holders pursuant to the Exchange; provided, however, if
 it is determined that the fair market value of the Preferred Stock being issued to the Holders pursuant to the Exchange is not at
 least equal to the principal amount owed by the Company under the debentures being exchanged therefor, such deficit shall be treated
 as contributed by the Holders to the capital of the Company pursuant to Section 108(e)(6) of the Code. The parties hereto shall file
 all tax returns and determine all taxes consistent with such treatment and shall not take any action that is inconsistent with such
 treatment unless otherwise required by a final determination within the meaning of Section 1313(a) of the Code.

(b) Prior
to the Closing, each Holder shall deliver to the Company a properly completed and executed IRS Form W-9 and such other information reasonably
requested by the Company to enable the Company to comply with its tax reporting and withholding obligations with respect to the Exchange
and any portion of the Preferred Stock that is treated as the payment of interest to the Holder for U.S. federal income tax purposes.
The Company shall be entitled to deduct and withhold, or cause to be deducted and withheld, from the Preferred Stock the portion (if
any) of the Preferred Stock that is treated as the payment of interest to the Holders for U.S. federal income tax purposes such taxes
that are required to be deducted and withheld from such amounts under applicable tax law; provided that the Company shall be obligated
to timely remit such amounts to the appropriate U.S. tax authorities.

10. **Indemnification**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company agrees to indemnify and hold harmless each Holder, and each of its respective directors, officers, shareholders, members,
 partners, employees and agents (and any other persons with a functionally equivalent role of a person holding such titles notwithstanding
 a lack of such title or any other title), each person who controls such Holder (within the meaning of Section 15 of the Securities
 Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any
 other persons with a functionally equivalent role of a person holding such titles notwithstanding a lack of such title or any other
 title) of such controlling person, from and against all losses, liabilities, claims, damages, costs, fees and expenses whatsoever
 (including, but not limited to, any and all expenses incurred in investigating, preparing or defending against any litigation commenced
 or threatened) arising from any Action based upon or arising out of the Company's actual false representation or warranty,
 or material breach by the Company of any covenant or agreement made by the Company, contained herein or in any other document delivered
 by the Company in connection with this Agreement; provided, however, that the Company will not be liable in any such case to the
 extent and only to the extent that any such loss, liability, claim, damage, cost, fee or expense arises out of or is based upon the
 inaccuracy of any representations made by such indemnified party in this Agreement.

(b) Each
 Holder, severally and not jointly, agrees to indemnify and hold harmless the Company and
 its directors, officers, shareholders, members, partners, employees and agents (and any other
 persons with a functionally equivalent role of a person holding such titles notwithstanding
 a lack of such title or any other title), each person who controls such indemnified person
 (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act),
 and the directors, officers, shareholders, agents, members, partners or employees (and any
 other persons with a functionally equivalent role of a person holding such titles notwithstanding
 a lack of such title or any other title) of such controlling person, from and against all
 losses, liabilities, claims, damages, costs, fees and expenses whatsoever (including, but
 not limited to, any and all expenses incurred in investigating, preparing or defending against
 any litigation commenced or threatened, and including in settlement of any litigation, but
 only if such settlement is effected with the written consent of the Holders of a majority
 of the Shares) arising from any Action insofar as such losses, liabilities, claims, damages,
 costs, fees and expenses are primarily based upon or primarily arise out of the Holder's
 actual false representation or warranty or material breach by the Holder of any covenant
 or agreement made by the Holder, contained herein or in any other document delivered by the
 Holder in connection with this Agreement.

(c) Promptly
 after receipt by an indemnified party under this Section 9 of notice of the commencement
 of any Action for which such indemnified party is asserting a right to indemnification under
 this Section 9, such indemnified party will, if a claim in respect thereof is to be made
 against the indemnifying party under this Section 9, promptly notify the indemnifying party
 in writing of the commencement thereof; but the omission so to notify the indemnifying party
 will not relieve it from any liability which it may have to any indemnified party otherwise
 than under this Section 9, unless such delay materially harms the indemnifying party. In
 case any such Action is brought against any indemnified party, and it notifies the indemnifying
 party of the commencement thereof, the indemnifying party will be entitled to participate
 therein, and to the extent that it may elect by written notice delivered to the indemnified
 party promptly after receiving the aforesaid notice from such indemnified party, to assume
 the defense thereof, with counsel satisfactory to such indemnified party; provided, however,
 if the defendants in any such Action include both the indemnified party and the indemnifying
 party and either (i) the indemnifying party or parties and the indemnified party or parties
 mutually agree or (ii) representation of both the indemnifying party or parties and the indemnified
 party or parties by the same counsel is inappropriate under applicable standards of professional
 conduct due to actual or potential differing interests between them, the indemnified party
 or parties shall have the right to select separate counsel to assume such legal defenses
 and to otherwise participate in the defense of such Action on behalf of such indemnified
 party or parties. Upon receipt of notice from the indemnifying party to such indemnified
 party of its election so to assume the defense of such Action and approval by the indemnified
 party of counsel, the indemnifying party will not be liable to such indemnified party under
 this Section 9 for any reasonable legal or other expenses subsequently incurred by such indemnified
 party in connection with the defense thereof unless (i) the indemnified party shall have
 employed counsel in connection with the assumption of legal defenses in accordance with the
 proviso to the next preceding sentence (it being understood, however, that the indemnifying
 party shall not be liable for the expenses of more than one separate counsel in such circumstance),
 (ii) the indemnifying party shall not have employed counsel satisfactory to the indemnified
 party to represent the indemnified party within a reasonable time after notice of commencement
 of the Action or (iii) the indemnifying party has authorized the employment of counsel for
 the indemnified party at the expense of the indemnifying party. No indemnifying party shall
 (i) without the prior written consent of the indemnified parties (which consent shall not
 be unreasonably withheld), settle or compromise or consent to the entry of any judgment with
 respect to any pending or threatened Action in respect of which indemnification or contribution
 may be sought hereunder (whether or not the indemnified parties are actual or potential parties
 to such Action) unless such settlement, compromise or consent includes an unconditional release
 of each indemnified party from all liability arising out of such Action, or (ii) be liable
 for any settlement of any such Action effected without its written consent (which consent
 shall not be unreasonably withheld), but if settled with its written consent or if there
 be a final judgment of the plaintiff in any such Action, the indemnifying party agrees to
 indemnify and hold harmless any indemnified party from and against any loss or liability
 by reason of such settlement or judgment.

11. **Termination**. This Agreement shall automatically terminate and become null and void if the Closing shall not have occurred on or before December 31, 2025.

12. **Binding Effect**. Each of the Holders hereby acknowledges and agrees that this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors, legal representatives and permitted assigns.

13. **Reserved.**

14. **No Third-Party Beneficiaries**. This Agreement is intended only for the benefit of the parties hereto, and their respective Affiliates, and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

15. **Amendments and Waivers**. Except as set forth in Section 7 and Section 8, any term of this Agreement may be amended, terminated or waived only with the written consent of the Company and each of the Holders.

16. **Notices**. Any notice, consents, waivers or other communication required or permitted to be given hereunder shall be in writing and will be deemed to have been delivered: (i) upon receipt, when personally delivered; (ii) upon receipt when sent by certified mail, return receipt requested, postage prepaid; (iii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); (iv) when sent, if by e-mail, (provided that such sent e-mail is kept on file (whether electronically or otherwise) by the sending party and the sending party does not receive an automatically generated message from the recipient's e-mail server that such e-mail could not be delivered to such recipient); or (v) one (1) Business Day after deposit with an overnight courier service with next day delivery specified, in each case, properly addressed to the party to receive the same. For purposes of this Agreement, "**Business Day**" means a day, other than a Saturday or Sunday, on which banks in New York City are open for the general transaction of business. The addresses, facsimile numbers and email addresses for such communications shall be:

(a) if
 to the Company, at

FireFly Automatix, Inc.

1130 South 3800 West

Suite 100

Salt Lake City, UT 84101

Telephone: (801) 698-5128

Attention: Andrew Limpert

Email: <u>andrew.limpert@fireflyautomatix.com</u>

with a copy to (which shall not constitute notice):

Dorsey & Whitney LLP

111 South Main Street

Suite 2100

Salt Lake City, UT 84111

Telephone: (801) 933-7363

Attention: David Marx

Email: <u>marx.david@dorsey.com</u>

or

(b) if
 to ATW, at

ATW Partners Opportunities Management, LLC

ONE PENN, 1 Pennsylvania Plaza, Suite 4810

New York, NY 10119

Attention: Antonio Ruiz-Gimenez, Manager

Telephone: (646) 975-5548

Email: <u>notice@atwpartners.com</u>

<u>aruizg@atwpartners.com</u>

<u>kpropper@atwpartners.com</u>

<u>operations@atwpartners.com</u>

with a copy to (which shall not constitute notice):

Sullivan & Worcester LLP

1251 Avenue of the Americas

New York, NY 10020

Telephone: (212) 660-3060

Attention: David Danovitch

Email: <u>ddanovitch@sullivanlaw.com</u>

(or, in any case, to such other address as the party shall have furnished in writing in accordance with the provisions of this Section 15). Any notice or other communication given by certified mail shall be deemed given at the time of certification thereof, except for a notice changing a party's address which shall be deemed given at the time of receipt thereof.

17. **Assignability**. This Agreement and the rights, interests and obligations hereunder are not transferable or assignable by either the Company or the Holders without the other parties' prior written consent, and any transfer or assignment of the Shares or Underlying Shares shall be made only in accordance with all applicable laws.

18. **Applicable Law**. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without reference to the principles thereof relating to the conflict of laws.

19. **Dispute Resolution**. Each party agrees that all legal Proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action or Proceeding is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If any party shall commence an Action or Proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the Company under Section 9, the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing party for its reasonable attorneys' fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Action or Proceeding.

20. **Blue Sky Qualification**. If applicable, the Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Shares at the Closing under applicable securities or "Blue Sky" laws of the states of the United States, and shall provide evidence of such actions promptly upon request of any Holder.

21. **Use of Pronouns**. All pronouns and any variations thereof used herein shall be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the person or persons referred to may require.

22. **Miscellaneous**.

(a) This
 Agreement, together with the other Transaction Documents and any confidentiality agreement
 between the Holders and the Company, constitute the entire agreement between the Holders
 and the Company with respect to the Exchange and supersede all prior oral or written agreements
 and understandings, if any, relating to the subject matter hereof. The terms and provisions
 of this Agreement may be waived, or consent for the departure therefrom granted, only by
 a written document executed by the party entitled to the benefits of such terms or provisions.

(b) The
 representations and warranties of the Company and the Holders made in this Agreement shall
 survive the execution and delivery hereof and delivery of the Shares.

(c) If
 the Shares are certificated and any certificate or instrument evidencing any Shares is mutilated,
 lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and
 substitution for and upon cancellation thereof, or in lieu of and substitution therefor,
 a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
 to the Company and the Company's transfer agent of such loss, theft or destruction
 and the execution by the holder thereof of a customary lost certificate affidavit of that
 fact and an agreement to indemnify and hold harmless the Company and the Company's
 transfer agent for any losses in connection therewith or, if required by the transfer agent,
 a bond in such form and amount as is required by the transfer agent. The applicants for a
 new certificate or instrument under such circumstances shall also pay any reasonable third-party
 costs associated with the issuance of such replacement Shares. If a replacement certificate
 or instrument evidencing any Shares is requested due to a mutilation thereof, the Company
 may require delivery of such mutilated certificate or instrument as a condition precedent
 to any issuance of a replacement.

(d) Each
 of the parties hereto shall pay its own fees and expenses (including the fees of any attorneys,
 accountants, appraisers or others engaged by such party) in connection with this Agreement
 and the transactions contemplated hereby, whether or not the transactions contemplated hereby
 are consummated.

(e) This
 Agreement may be executed by any one or more of the parties hereto in any number of counterparts,
 each of which shall be deemed to be an original, but all such respective counterparts shall
 together constitute one and the same instrument. Delivery of an executed signature page of
 this Agreement by facsimile or any other rapid transmission device designed to produce a
 written record of the communication transmitted shall be as effective as delivery of a manually
 executed counterpart thereof.

The words "execution," "executed," "signed," signature," and words of like import in this Agreement or in any other certificate, agreement or document related to this Agreement shall include images of manually executed signatures transmitted by facsimile, email or other electronic format (including, without limitation, "pdf," "tif" or "jpg") and other electronic signatures (including, without limitation, DocuSign and AdobeSign). The use of electronic signatures and electronic records (including, without limitation, any contract or other record created, generated, sent, communicated, received, or stored by electronic means) shall be of the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act and any other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or the Uniform Commercial Code.

(f) Each
 provision of this Agreement shall be considered separable and, if for any reason any provision
 or provisions hereof are determined to be invalid or contrary to applicable law, such invalidity
 or illegality shall not impair the operation of or affect the remaining portions of this
 Agreement.

(g) Paragraph
 titles are for descriptive purposes only and shall not control or alter the meaning of this
 Agreement as set forth in the text.

[*Signature Pages to Follow*]

**IN WITNESS WHEREOF**, the undersigned have executed, or caused to be executed on their behalf by an agent there unto duly authorized, this Agreement as of the date first above written.

---

| | |
|:---|:---|
| **<u>COMPANY</u>:** | **<u>COMPANY</u>:** |
| **FIREFLY AUTOMATIX, INC.** | **FIREFLY AUTOMATIX, INC.** |
| By: | /s/ Andrew Limpert |
| Name: | Andrew Limpert |
| Title: | Chief Executive Officer |

---

**IN WITNESS WHEREOF**, the undersigned Holders have executed, or caused to be executed on their behalf by an agent there unto duly authorized, this Agreement as of the date first above written.

---

| | |
|:---|:---|
| **FF OPPORTUNITIES 2 LLC** | **FF OPPORTUNITIES 2 LLC** |
| By: | /s/ Antonio Ruiz-Gimenez |
| Name: | Antonio Ruiz-Gimenez |
| Title: | Managing Member of ATW Partners GP II, LLC, Manager of FF Opportunities 2 LLC |

---

---

| | |
|:---|:---|
| **FF OPPORTUNITIES 3 LLC** | **FF OPPORTUNITIES 3 LLC** |
| By: | /s/ Antonio Ruiz-Gimenez |
| Name: | Antonio Ruiz-Gimenez |
| Title: | Managing Member of ATW Partners Opportunities Fund GP, LLC, Manager of FF Opportunities 3 LLC |

---

---

| | |
|:---|:---|
| **FF OPPORTUNITIES 4 LLC** | **FF OPPORTUNITIES 4 LLC** |
| By: | /s/ Antonio Ruiz-Gimenez |
| Name: | Antonio Ruiz-Gimenez |
| Title: | Managing Member of ATW Partners Opportunities Fund II GP, LLC, Manager of FF Opportunities 4 LLC |

---

<u>SCHEDULE A</u>

ORIGINAL SECURITIES

---

| | | |
|:---|:---|:---|
| **Holder** | **Description**  | **Date of Issuance** |
| FF Opportunities 2 LLC | Senior Secured Convertible Debenture | July 17, 2019 |
| FF Opportunities 2 LLC | Senior Secured Convertible Debenture | April 22, 2020 |
| FF Opportunities 2 LLC | Senior Secured Convertible Debenture | September 4, 2020 |
| FF Opportunities 3 LLC | Senior Secured Convertible Debenture | January 13, 2022 |
| FF Opportunities 4 LLC | Senior Secured Convertible Debenture | January 19, 2023 |
| FF Opportunities 4 LLC | Senior Secured Convertible Debenture | July 25, 2024 |
| FF Opportunities 4 LLC | Senior Secured Convertible Debenture | June 18, 2025 |
| FF Opportunities 2 LLC | Common Stock Purchase Warrant | July 17, 2019 |
| FF Opportunities 2 LLC | Common Stock Purchase Warrant | April 22, 2020 |
| FF Opportunities 2 LLC | Common Stock Purchase Warrant | September 4, 2020 |
| FF Opportunities 3 LLC | Common Stock Purchase Warrant | January 13, 2022 |
| FF Opportunities 4 LLC | Common Stock Purchase Warrant | January 19, 2023 |
| FF Opportunities 4 LLC | Common Stock Purchase Warrant | July 11, 2024 |
| FF Opportunities 4 LLC | Common Stock Purchase Warrant | July 25, 2024 |
| FF Opportunities 4 LLC | Common Stock Purchase Warrant | June 18, 2025 |

---

<u>SCHEDULE B</u>

ORIGINAL SECURITIES TO BE EXCHANGED

Debentures

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>**Existing <br> Debentures** | **Holder** | **Original <br> Principal** | **Current <br> Accrued <br> Interest at <br> July 31, 2025 <br> (1)** | **Conversion <br> Price** | **Base <br> Interest <br> Rate** | **Issuance <br> Date** | **Maturity <br> Date** | **Number of <br> Shares of <br> Common <br> Stock <br> Underlying <br> Original <br> Principal and <br> Current <br> Accrued <br> Interest**<br> **(A) (1)** | **Conversion Ratio**<br> **(B) (1)** | **Number <br> of Shares <br> Issued in <br> Exchange**<br> **(C = A / <br> B) (1)** |
| July 2019 Senior Secured Convertible Debenture | FF Opportunities 2 LLC | $3800000.00 | $1290471.87 | $1.1200 | 11% | 7/17/2019 | 1/31/2027 | 4545064 | 100 | 45450.64 |
| April 2020 Senior Secured Convertible Debenture | FF Opportunities 2 LLC | $750000.00 | $254698.01 | $2.0000 | 11% | 4/20/2020 | 1/31/2027 | 502349 | 100 | 5023.49 |
| September 2020 Senior Secured Convertible Debenture | FF Opportunities 2 LLC | $750000.00 | $254698.01 | $2.2000 | 11% | 9/4/2020 | 1/31/2027 | 456681 | 100 | 4566.81 |

---

(1) The current accrued interest at July 31, 2025, Conversion Ratio, and number of Shares issued in the Exchange are for illustrative purposes only. The actual Conversion Ratio will be determinable based on the final terms set forth in the Series A Certificate of Designation. Accrued interest will be determined at the time of the Exchange.

Warrants

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Existing <br> Warrants** | **Holder** | **Number of Existing <br> Warrants to Exchange (A)** | **Common Stock Exchange <br> Ratio (B)** | **Number of Shares <br> of Common Stock <br> Underlying <br> Existing <br> Warrants to be <br> Exchanged <br> (C = A x B)** | **Conversion Ratio <br> (D) (2)** | **Number of <br> Shares Issued <br> in Exchange <br> (E = C / D) (2)** |
| July 2019 Common Stock Purchase Warrants | FF Opportunities 2 LLC | 110226 (1) | 87.5% | 96448 (1) | 100 | 964.48 (1) |
| April 20, 2020 Common Stock Purchase Warrants | FF Opportunities 2 LLC | 281250 | 80.0% | 225000 | 100 | 2250.00 |
| September 2020 Common Stock Purchase Warrants | FF Opportunities 2 LLC | 255682 | 80.0% | 204546 | 100 | 2045.46 |
| January 2022 Common Stock Purchase Warrants | FF Opportunities 3 LLC | 420918 (1) | 100.0% | 420918 (1) | 100 | 4209.18 (1) |
| January 2023 Common Stock Purchase Warrants | FF Opportunities 4 LLC | 120460 (1) | 100.0% | 120460 (1) | 100 | 1204.60 (1) |
| July 11, 2024 Common Stock Purchase Warrants | FF Opportunities 4 LLC | 430009 | 100.0% | 430009 | 100 | 4300.09 |
| July 25, 2024 Common Stock Purchase Warrants | FF Opportunities 4 LLC | 181861 | 100.0% | 181861 | 100 | 1818.61 |
| June 2025 Common Stock Purchase Warrants | FF Opportunities 4 LLC | 181861 | 100.0% | 181861 | 100 | 1818.61 |

---

(1) With respect to the July 2019 Existing Warrants, January 2022 Existing Warrants, and January 2023 Existing Warrants, the number of such Existing Warrants to be exchanged, the number of shares of Common Stock underlying such Existing Warrants to be exchanged, and the number of Shares issued in the Exchange are for illustrative purposes only. The actual number of such warrants to be exchanged with respect to the July 2019 Existing Warrants, January 2022 Existing Warrants, and January 2023 Existing Warrants will be equal to the number of such Existing Warrants outstanding less the number of such Existing Warrants to be exercised, as described in Section 1(c) and <u>Schedule C</u>. The number of such Existing Warrants remaining after such exercises will be multiplied by the common stock exchange ratio in column B of the table above and divided by the Conversion Ratio in column D of the table above to determine the number of Shares to be issued in the Exchange.

(2) The Conversion Ratio and number of Shares that may be issued in the Exchange are for illustrative purposes only. The actual Conversion Ratio will be determinable based on the final terms set forth in the Series A Certificate of Designation.

<u>SCHEDULE C</u>

EXISTING WARRANT EXERCISES

**Cashless Exercise Warrants**:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Cashless Exercise Warrants** | **Holder** | **Warrants to be <br> Exercised<sup>(1)</sup> <br> (A)** | **Cashless <br> Exercise <br> Ratio <br> (B)** | **Number of <br> Shares of <br> Common Stock <br> Issued upon <br> Cashless <br> Exercise<sup>(1)</sup> <br> (C = A x B)** |
| July 2019 Common Stock Purchase Warrants | FF Opportunities 2 LLC | 1789774 | 87.5% | 1566052 |

---

(1) The number of such Cashless Exercise Warrants to be exercised and the number of shares of Common Stock issued upon such cashless exercise provided in the table above are for illustrative purposes only. The actual number of Cashless Exercise Warrants to be exercised on a cashless basis will be determined such that the number of shares of Common Stock beneficially owned (as such term is defined under Section 13 of the Exchange Act and the rules and regulations promulgated thereunder) by such holder will equal no more than 9.99% of the aggregate number of shares of Common Stock outstanding, immediately after giving effect to the exercise of the Cashless Exercise Warrants and Additional Cashless Exercise Warrants, the Exchange and the closing of the IPO. The number of Cashless Exercise Warrants to be cashless exercised will be multiplied by the cashless exercise ratio set forth in column B of the table above to determine the number of shares of Common Stock issued upon the cashless exercise of Cashless Exercise Warrants.

**Additional Cashless Exercise Warrants**:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Additional Cashless Exercise <br> Warrants** | **Holder** | **Warrants to be <br> Exercised<sup>(1)</sup>** | **Cashless <br> Exercise <br> Shares <br> Surrendered <br> (B)** | **Number of <br> Shares of <br> Common Stock <br> Issued upon <br> Cashless <br> Exercise <br> (C = A - B)<sup>(1)</sup>** |
| January 2022 Common Stock Purchase Warrants | FF Opportunities 3 LLC | 110509 | 185 | 110324 |
| January 2023 Common Stock Purchase Warrants | FF Opportunities 4 LLC | 240015 | 401 | 239614 |

---

(1) The number of such Additional Cashless Exercise Warrants to be exercised, the number of shares of Common Stock issued upon exercise, and the number of cashless exercise shares surrendered provided in the table above are for illustrative purposes only. The actual number of Additional Cashless Exercise Warrants to be exercised on a cashless basis will be determined such that the number of shares of Common Stock beneficially owned (as such term is defined under Section 13 of the Exchange Act and the rules and regulations promulgated thereunder) by such holders will equal no more than 9.99% of the aggregate number of shares of Common Stock outstanding, immediately after giving effect to the exercise of the Cashless Exercise Warrants and Additional Cashless Exercise Warrants, the Exchange and the closing of the IPO. The number of shares of Common Stock issued upon exercise of the Additional Cashless Exercise Warrants to be cashless exercised will be determined by deducting from the total number of shares issuable under such warrants an amount equal to the quotient obtained by dividing (a) the aggregate exercise price of such warrants by (b) the public offering price in the IPO. For purposes of the above illustration, the public offering price in the IPO was assumed to be $6.00 per share. The actual public offering price in the IPO may vary from such assumption.

<u>EXHIBIT A</u>

Form of Series A Certificate of Designation

<u>EXHIBIT B</u>

Form of Registration Rights Agreement

<u>EXHIBIT C</u>

Form of Lock Up Agreement

<u>EXHIBIT D</u>

Form of Amended and Restated Charter

## Exhibit 10.8

**Exhibit 10.8**

**REGISTRATION RIGHTS AGREEMENT**

This Registration Rights Agreement (this "**Agreement**") is made and entered into as of October 21, 2025 among FireFly Automatix, Inc., a Delaware corporation (the "**Company**"), and each of the several holders of securities of the Company signatory hereto (each such holder, a "**Holder**" and, collectively, the "**Holders**").

**WHEREAS**, the Company and the Holders are parties to an Exchange Agreement, dated as of the date hereof (the "**Exchange Agreement**"), pursuant to which the Holders have agreed to exchange certain outstanding convertible debentures and common stock purchase warrants of the Company for shares of the Company's newly designated Series A convertible preferred stock (the "**Preferred Stock**"), in connection with an initial public offering of the Common Stock (the "**IPO**") pursuant to a Registration Statement on Form S-1 filed with the U.S. Securities and Exchange Commission (the "**Commission**"); and

**WHEREAS**, in connection with the consummation of the transactions contemplated by the Exchange Agreement and pursuant to the terms of the Exchange Agreement, the parties hereto desire to enter into this Agreement in order to grant certain registration rights to the Holders with respect to the Registrable Securities as set forth below.

**NOW, THEREFORE**, in consideration of the foregoing and the mutual and dependent covenants hereinafter set forth, the parties hereto agree as follows:

1. **Definitions**.

"**Affiliate**" means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act.

"**Business Day**" means any day, excluding Saturdays and Sundays, on which banks in the in the United States are generally open for business.

"**Debentures**" means those certain convertible debentures of the Company identified in <u>Exhibit A</u>.

"**Common Stock**" means the common stock of the Company, par value $0.001 per share.

**"Effectiveness Date**" means, (i) with respect to the Initial Registration Statement required to be filed hereunder, the 45th calendar day following the Filing Date (or, in the event of a "full review" by the Commission, the 75th calendar day following the Filing Date), (ii) with respect to any additional Registration Statements which may be required pursuant to <u>Section 2(b)</u> and <u>Section 2(c)</u>, the 45th calendar day following the applicable Filing Date (or, in the event of a "full review" by the Commission, the 75th calendar day following the applicable Filing Date), and (iii) with respect to the Accelerated Registration Statement, the 45th calendar day following the applicable Filing Date (or, in the event of a "full review" by the Commission, the 75th calendar day following the applicable Filing Date); <u>provided</u>, <u>however</u>, that in the event the Company is notified by the Commission in writing that one or more of the above Registration Statements will not be reviewed or is no longer subject to further review and comments, the Effectiveness Date as to such Registration Statement shall be the fifth Trading Day following the date on which the Company is so notified if such date precedes the dates otherwise required above; <u>provided</u>, <u>further</u>, <u>that</u> if such Effectiveness Date falls on a day that is not a Trading Day, then the Effectiveness Date shall be the next succeeding Trading Day.

"**Exchange Act**" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"**Family Member**" means (a) with respect to any individual, such individual's spouse, any descendants (whether natural or adopted), any trust all of the beneficial interests of which are owned by any of such individuals or by any of such individuals together with any organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, the estate of any such individual, and any corporation, association, partnership or limited liability company all of the equity interests of which are owned by those above described individuals, trusts or organizations and (b) with respect to any trust, the owners of the beneficial interests of such trust.

"**Filing Date**" means, (i) with respect to the Initial Registration Statement required hereunder, the first calendar day following 180th calendar day following the pricing of the IPO, provided that if such calendar day falls on a day that is not a Business Day, then the following Business Day, (ii) with respect to any additional Registration Statements which may be required pursuant to <u>Section 2(b)</u> or <u>Section 2(c)</u>, the 30th calendar day following the date on which the Company is permitted by SEC Guidance to file such additional Registration Statement related to the Registrable Securities, provided that if such calendar day falls on a day that is not a Business Day, then the following Business Day, and (iii) with respect to the public filing of the Accelerated Registration Statement confidentially submitted in accordance with <u>Section 2(a)</u>, the first Trading Day following the occurrence of the Triggering Event; *provided, however*, that if (a) additional time is required to update such Registration Statement to include required financial statements to comply with the Securities Act or obtain applicable auditor consents, or (b) there occurs or exists any pending corporate development with respect to the Company that the Company believes may be material and that, in the determination of the Company's Board of Directors, makes it not in the best interest of the Company to allow continued availability of such Registration Statement or any prospectus relating thereto, then the Company shall promptly notify the Holders and the Company and the Holders will work together to ensure that such Registration Statement is filed as promptly as possible, but in no event later than twenty (20) Trading Days following the applicable deadline; *provided further*, that if the Filing Date would fall on a date between February 15 and March 31, the Filing Date shall be extended to March 31.

"**Governmental Authority**" means any court, agency, authority, department, regulatory body or other instrumentality of any government or country or of any national, federal, state, provincial, regional, county, city or other political subdivision of any such government or country or any supranational organization of which any such country is a member, and any self-regulatory organization, including any stock exchange.

"**Holder**" or "**Holders**" means the holder or holders, as the case may be, from time to time of Registrable Securities.

"**Initial Registration Statement**" means the initial Registration Statement on Form S-1 filed with the Commission pursuant to this Agreement after the 180th calendar day following the pricing of the IPO.

"**Daily VWAP**" means for any Trading Day, the per share volume-weighted average price of the Common Stock as displayed under the heading "Bloomberg VWAP" on Bloomberg page "EVTV VAP" (or, if such page is not available, its equivalent successor page) in respect of the period from the scheduled open of trading until the scheduled close of trading of the primary trading session on such Trading Day (or, if such volume-weighted average price is unavailable, the market value of one share of Common Stock on such Trading Day, determined, using a volume-weighted average price method, by a nationally recognized independent investment banking firm selected by the Company). The Daily VWAP will be determined without regard to after-hours trading or any other trading outside of the regular trading session.

"**Person**" means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association or other entity.

"**Principal Market**" means the Nasdaq Capital Market (or such other market or exchange on which Common Stock is then listed or traded).

"**Prospectus**" means the prospectus or prospectuses included in any Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective Registration Statement in reliance on Rule 430A or Rule 430B under the Securities Act or any successor rule thereto), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement and by all other amendments and supplements to the prospectus, including post-effective amendments and all material incorporated by reference in such prospectus or prospectuses.

"**Registrable Securities**" means, to the extent that such securities are permitted to be included in a Registration Statement under the SEC Guidance at the time such Registration Statement is filed, (a) the shares of Common Stock issued or issuable upon the conversion of all of the Debentures, (b) the shares of Common Stock issued or issuable upon the conversion of all shares of the Preferred Stock, and (c) all shares of Common Stock held by the Holders (or their respective Affiliates) following the closing of the IPO. As to any particular Registrable Securities, such securities shall cease to be Registrable Securities for as long as (i) the Commission has declared a Registration Statement covering the Registrable Securities effective, (ii) such securities become eligible for resale pursuant to Rule 144 without restriction by the Holder, including without volume or manner-of-sale restrictions and without the requirement for the Company to be in compliance with the current public information requirement under Rule 144(c)(1) (or any successor thereto), or (iii) such Registrable Securities have ceased to be outstanding.

"**Registration Statement**" means any registration statement of the Company confidentially submitted to or filed with the SEC in compliance with the Securities Act, including the Initial Registration Statement, and the Prospectus, amendments and supplements to such registration statement, including post-effective amendments, all exhibits and all material incorporated by reference in such registration statement.

"**Rule 144**" means Rule 144 under the Securities Act or any successor rule thereto.

"**Rule 415**" means Rule 415 under the Securities Act or any successor rule thereto.

"**Securities Act**" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"**SEC Guidance**" means (i) any publicly-available written guidance of the Commission staff, or any written comments, requirements or requests of the Commission staff and (ii) the Securities Act.

"**Trading Day**" means a day on which the Principal Market is open for business.

"**Triggering Event**" occurs which the Daily VWAP of the Common Stock equals or exceeds two hundred percent (200%) of the initial public offering price of the Common Stock sold in the IPO on five (5) of ten (10) consecutive Trading Days following the 90th calendar day after the pricing of the IPO.

2. **Shelf Registration**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or prior to each applicable Filing Date (with respect to the Initial Registration Statement), and on each other Filing Date (with respect to any additional Registration Statement), the Company shall prepare and file with the Commission a Registration Statement covering the resale of all of the Registrable Securities that are not then registered on an effective Registration Statement and that are then permitted under the SEC Guidance to be included on such Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415(a)(1)(i). Notwithstanding anything herein to the contrary, on or before the 60th day following the pricing of the IPO, the Company shall prepare and confidentially submit a draft Registration Statement covering the resale of up to an aggregate of thirty-three percent (33%) of all of the Registrable Securities (the "<u>Accelerated Registration Statement</u>"). If the Triggering Event occurs prior to the 180th calendar day following the pricing of the IPO, the Accelerated Registration Statement shall be publicly filed by the Filing Date applicable to an Accelerated Registration Statement. Each Registration Statement filed hereunder, other than the Initial Registration Statement, shall be on Form S-3 (except if the Company is not then eligible to register for resale the Registrable Securities on Form S-3, in which case such registration shall be on another appropriate form in accordance herewith) and shall contain substantially the "<u>Plan of Distribution</u>" attached hereto as <u>Exhibit B</u>; <u>provided</u>, <u>however</u>, that no Holder shall be required to be named as an "underwriter" without such Holder's express prior written consent, except as required by applicable law. Subject to the terms of this Agreement, the Company shall use its reasonable best efforts to cause a Registration Statement filed under this Agreement to be declared effective under the Securities Act as promptly as possible after the filing thereof, but in any event no later than the applicable Effectiveness Date, and shall use its reasonable best efforts to keep such Registration Statement continuously effective under the Securities Act until the date that all Registrable Securities covered by such Registration Statement cease to be Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any other provision of this Agreement, if the Commission or any SEC Guidance sets forth a limitation on the number or type of Registrable Securities permitted to be registered on a particular Registration Statement as a secondary offering (and notwithstanding that the Company used its reasonable best efforts to seek the registration of all or a greater portion of Registrable Securities), unless otherwise directed in writing by a Holder as to its Registrable Securities, the number and type of Registrable Securities to be registered on such Registration Statement will be limited to the number and type permitted under the SEC Guidance. Any reduction in the number of Registrable Securities will be made as follows: (a) first, the Company shall reduce or eliminate any securities to be included other than Registrable Securities and (b) second, the Company shall reduce Registrable Securities, applied to the Holders on a pro rata basis based on the total number of Registrable Securities held by such Holders. In the event of a cutback hereunder, the Company shall give the Holder at least three Trading Days prior written notice along with the calculations as to such Holder's allotment. In the event the Company amends the Initial Registration Statement in accordance with the foregoing, the Company will use its reasonable best efforts to file with the Commission, as promptly as allowed by the Commission or SEC Guidance provided to the Company or to registrants of securities in general, one or more registration statements on Form S-3 or such other form available to register for resale those Registrable Securities that were not registered for resale on the Initial Registration Statement (the "***Cut Back Shares***"), as amended (the "***Remainder Registration Statement***"). From and after such date as the Company is allowed by the Commission or SEC Guidance to effect the registration of the resale of all such Cut Back Shares in accordance with any Commission restrictions applicable to such Cut Back Shares (the "***Restriction Termination Date***"), all of the provisions of this <u>Section 2</u> (including the Company's obligations with respect to the filing of a Registration Statement and its obligations to use its reasonable best efforts to have such Registration Statement declared effective within the time periods set forth herein) shall again be applicable to such Cut Back Shares; provided, however, that (i) the Filing Date for such Cut Back Shares shall be the 30th calendar day after such Restriction Termination Date, and (ii) the date by which the Company is required to obtain effectiveness with respect to such Cut Back Shares shall be the 75th calendar day following the date such Remainder Registration Statement is filed hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If all Registrable Securities are not covered by a Registration Statement filed pursuant to this Agreement or otherwise, the Company shall use its best efforts to file with the SEC one or more additional Registration Statements so as to cover all of the Registrable Securities not covered by such initial Registration Statement, in each case as soon as practicable (taking into account any position of the staff of the SEC (the "***Staff***") with respect to the date on which the Staff will permit such additional Registration Statement(s) to be filed with the SEC and the rules and regulations of the SEC). The Company shall use its best efforts to cause each such new Registration Statement to become effective as soon as reasonably practicable following the filing thereof with the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Commencing on the Filing Date, if at any time there is not an effective Registration Statement covering all of the Registrable Securities and the Company proposes to register the offer and sale of any shares of Common Stock under the Securities Act (other than a registration (i) pursuant to a registration statement on Form S-8 ((or other registration solely relating to an offering or sale to employees or directors of the Company pursuant to any employee stock plan or other employee benefit arrangement), (ii) pursuant to a registration statement on Form S-4 (or similar form that relates to a transaction subject to Rule 145 under the Securities Act or any successor rule thereto), or (iii) in connection with any dividend or distribution reinvestment or similar plan), whether for its own account or for the account of one or more stockholders of the Company and the form of registration statement to be used may be used for any registration of Registrable Securities, the Company shall give prompt written notice (in any event no later than five days prior to the filing of such registration statement) to the holders of Registrable Securities of its intention to effect such a registration and, shall include in such registration all Registrable Securities with respect to which the Company has received written requests for inclusion from the holders of Registrable Securities; provided, however, that, the Company shall not be required to register any Registrable Securities pursuant to this Section 2(d) that have been sold or may be sold without any restrictions pursuant to Rule 144, provided that the Company is in compliance with the current public information requirement under 144(c)(1), as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company's transfer agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) After the filing of a Registration Statement, the Company shall promptly notify the Holders holding Registrable Securities included in such Registration Statement within three (3) Business Days after the occurrence of any of the following: (i) the issuance or threatened issuance by the SEC of any stop order (and Parent shall take all actions required to prevent the entry of such stop order or to remove it if entered); (ii) subject to the last sentence of this Section 2(e), the occurrence or existence of any pending corporate development with respect to the Company that the Company believes may be material and that, in the determination of the Company's Board of Directors, makes it not in the best interest of the Company to allow continued availability of such Registration Statement or any prospectus relating thereto; and (iii) any request by the SEC for any amendment or supplement to such Registration Statement or any prospectus relating thereto or for additional information or of the occurrence of an event requiring the preparation of a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of the securities covered by such Registration Statement, such prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and promptly make available to Investors holding Registrable Securities included in such Registration Statement any such supplement or amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything herein to the contrary, upon receipt of any notice from the Company pursuant to Section 2(e), each Holder holding Registrable Securities included in such Registration Statement shall immediately discontinue disposition of its Registrable Securities pursuant to the Registration Statement covering such Registrable Securities until such Investor receives the supplemented or amended prospectus contemplated by Section 2(e) to the extent required. The Company shall be entitled to exercise its right under this Section 2(f) to suspend the availability of a Registration Statement and related prospectus for a period not to exceed forty-five (45) calendar days once in any 365-day period.

3. **Company Information Requests**. The Company may require each Holder to furnish to the Company such information regarding the distribution of Registrable Securities and such other information relating to such Holder and its ownership of Registrable Securities or other securities of the Company as the Company may from time to time reasonably request in writing, and the Company may exclude the Registrable Securities of each Holder who unreasonably fails to furnish such information within a reasonable time after receiving such request. Each Holder shall furnish such information to the Company and cooperate with the Company as reasonably necessary to enable the Company to comply with the provisions of this Agreement.

4. **Expenses**. All expenses (other than expenses of any Holder) incurred by the Company in complying with its obligations pursuant to this Agreement and in connection with the registration and disposition of Registrable Securities shall be paid by the Company, including, without limitation, all (i) registration and filing fees (including, without limitation, any fees relating to filings required to be made with, or the listing of any Registrable Securities on, any securities exchange or over-the-counter trading market on which the Registrable Securities are listed or quoted); (ii) expenses of any audits incident to or required by any such registration; (iii) fees and expenses of complying with securities and "blue sky" laws (including, without limitation, fees and disbursements of counsel for the Company in connection with "blue sky" qualifications or exemptions of the Registrable Securities); (iv) printing expenses; (v) messenger, telephone and delivery expenses; (vi) fees and expenses of the Company's counsel and accountants; and (vii) Financial Industry Regulatory Authority, Inc. filing fees (if any). In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties) and the expense of any annual audits. All expenses of the Holders relating to the offer and sale of Registrable Securities registered under the Securities Act pursuant to this Agreement, including, but not limited to, fees and expenses of counsel to such Holder, all underwriting discounts, selling commissions and stock transfer taxes and other similar expenses, shall be borne and paid by the Holders in proportion to the number of Registrable Securities included in such registration for each such Holder.

5. **Indemnification**.

(a) The Company shall indemnify and hold harmless, to the fullest extent permitted by law, each Holder, such Holder's officers, directors, managers, members, partners, stockholders, employees, agents, representatives and Affiliates, each underwriter, broker or any other Person acting on behalf of such Holder, if any, who controls any of the foregoing Persons, against all losses, claims, actions, damages, liabilities and expenses, joint or several, to which any of the foregoing Persons may become subject under the Securities Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule thereto) or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of a Prospectus, preliminary Prospectus or free writing prospectus, in light of the circumstances under which they were made) not misleading, or (ii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation thereunder, in connection with the performance of its obligations under this Agreement; and shall reimburse such Persons for any legal or other expenses reasonably incurred by any of them in connection with investigating or defending any such loss, claim, action, damage or liability, except and only insofar as the same are solely caused by an untrue statement in or omission from such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule thereto) or any amendment thereof or supplement thereto in reliance upon and in conformity with written information furnished by such Holder to the Company expressly for use in the preparation thereof or by such Holder's failure to deliver a copy of the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule thereto) or any amendments or supplements thereto (if the same was required by applicable law to be so delivered).

(b) In connection with any registration in which a Holder is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus and, to the extent permitted by law, shall indemnify and hold harmless, the Company, each director of the Company, and each officer of the Company who shall sign such Registration Statement against any losses, claims, actions, damages, liabilities or expenses resulting from any untrue or alleged untrue statement of material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule thereto) or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of a Prospectus, preliminary Prospectus or free writing prospectus, in light of the circumstances under which they were made) not misleading, but only to the extent that such untrue statement or omission is contained in any information so furnished in writing by such Holder, it being understood and agreed that the only information furnished by any Holder consists of the number of shares of Common Stock (or any securities convertible, exchangeable or exercisable for Common Stock within sixty (60) days of any such filing) beneficially owned by such Holder, the number of Registrable Securities proposed to be sold by such Holder, the name and address of such Holder proposing to sell, and the distribution proposed by such Holder; provided, that the obligation to indemnify shall be several, not joint and several, for each Holder and shall not exceed an amount equal to the net proceeds (after underwriting fees, commissions or discounts) actually received by such Holder from the sale of Registrable Securities pursuant to such Registration Statement.

(c) Promptly after receipt by an indemnified party of notice of the commencement of any action involving a claim referred to in this <u>Section 5</u>, such indemnified party shall, if a claim in respect thereof is made against an indemnifying party, give written notice to the latter of the commencement of such action. The failure of any indemnified party to notify an indemnifying party of any such action shall not (unless such failure shall have a material adverse effect on the indemnifying party) relieve the indemnifying party from any liability in respect of such action that it may have to such indemnified party hereunder. In case any such action is brought against an indemnified party, the indemnifying party shall be entitled to participate in and to assume the defense of the claims in any such action that are subject or potentially subject to indemnification hereunder, jointly with any other indemnifying party similarly notified to the extent that it may wish, with counsel reasonably satisfactory to such indemnified party, and after written notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be responsible for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof; provided, that, if (i) any indemnified party shall have reasonably concluded that there may be one or more legal or equitable defenses available to such indemnified party which are additional to or conflict with those available to the indemnifying party, or that such claim or litigation involves or could have an effect upon matters beyond the scope of the indemnity provided hereunder, or (ii) such action seeks an injunction or equitable relief against any indemnified party or involves actual or alleged criminal activity, the indemnifying party shall not have the right to assume the defense of such action on behalf of such indemnified party without such indemnified party's prior written consent (but, without such consent, shall have the right to participate therein with counsel of its choice) and such indemnifying party shall reimburse such indemnified party of such indemnified party for that portion of the fees and expenses of any counsel retained by the indemnified party which is reasonably related to the matters covered by the indemnity provided hereunder. If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim.

(d) If the indemnification provided for hereunder is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, claim, damage, liability or action referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amounts paid or payable by such indemnified party as a result of such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions which resulted in such loss, claim, damage, liability or action as well as any other relevant equitable considerations; provided, that the maximum amount of liability in respect of such contribution shall be limited, in the case of a Holder, to an amount equal to the net proceeds (after underwriting fees, commissions or discounts) actually received by such Holder from the sale of Registrable Securities effected pursuant to such registration. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties agree that it would not be just and equitable if contribution pursuant hereto were determined by pro rata allocation or by any other method or allocation which does not take account of the equitable considerations referred to herein. No Person guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

6. **Participation in Underwritten Registrations**. No Person may participate in any registration hereunder which is underwritten unless such Person (a) agrees to sell such Person's securities on the basis provided in any underwriting arrangements approved by the Person or Persons entitled hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents required under the terms of such underwriting arrangements.

7. **Termination**. This Agreement shall terminate and be of no further force or effect when there shall no longer be any Registrable Securities outstanding; provided, that the provisions of <u>Section 4</u> (Expenses), <u>Section 5</u> (Indemnification) and <u>Section 14</u> (Governing Law) shall survive any such termination.

8. **Notices**. Any notice, consents, waivers or other communication required or permitted to be given hereunder shall be in writing and will be deemed to have been delivered: (i) upon receipt, when personally delivered; (ii) upon receipt when sent by certified mail, return receipt requested, postage prepaid; (iii) when sent, if by e-mail, provided that such sent e-mail is kept on file (whether electronically or otherwise) by the sending party and the sending party does not receive an automatically generated message from the recipient's e-mail server that such e-mail could not be delivered to such recipient; or (iv) three (3) Business Days after deposit with an internationally-recognized courier service with next day delivery specified, in each case, properly addressed to the party to receive the same. The addresses and email addresses for such communications shall be:

(a) if
 to the Company, at

FireFly Automatix, Inc.

1130 South 3800 West

Suite 100

Salt Lake City, UT 84101

Telephone: 801-698-5128

Attention: Andrew Limpert

Email: <u>andrew.limpert@fireflyautomatix.com</u>

with a copy to (which shall not constitute notice):

Dorsey & Whitney LLP

111 South Main Street

Suite 2100

Salt Lake City, UT 84111

Telephone: (801) 933-7363

Attention: David Marx

Email: <u>marx.david@dorsey.com</u>

or

(b) if
 to a Holder, at

ATW Partners Opportunities Management, LLC

ONE PENN, 1 Pennsylvania Plaza, Suite 4810

New York, NY 10119<br> Attention: Antonio Ruiz-Gimenez, Manager

Telephone: (646) 975-5548

Email: <u>notice@atwpartners.com</u>

<u>aruizg@atwpartners.com</u>

<u>kpropper@atwpartners.com</u>

<u>operations@atwparners.com</u>

with a copy to (which shall not constitute notice):

Sullivan & Worcester LLP

1251 Avenue of the Americas

New York, NY 10020

Telephone: (212) 660-3060

Attention: David Danovitch

Email: <u>ddanovitch@sullivanlaw.com</u>

(or, in any case, to such other address as the party shall have furnished in writing in accordance with the provisions of this Section 9). Any notice or other communication given by certified mail shall be deemed given at the time of certification thereof, except for a notice changing a party's address which shall be deemed given at the time of receipt thereof.

9. **Entire Agreement**. This Agreement constitutes the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter. Notwithstanding the foregoing, in the event of any conflict between the terms and provisions of this Agreement and those of the Exchange Agreement, the terms and conditions of this Agreement shall control.

10. **Assignability**. This Agreement and the rights, interests and obligations hereunder are not transferable or assignable by any of the parties (whether by operation of law or otherwise) without the prior written consent of the other party; <u>provided</u>, <u>however</u>, that each Holder may assign its rights, interests and obligations under this Agreement, in whole or in part, to one or more of its Affiliates, or to any other Person in connection with any transfer of all or a portion of the Registrable Securities, which assignee shall agree in writing to be bound by the provisions of this Agreement, including the rights, interests and obligations so assigned.

11. **No Third-Party Beneficiaries**. This Agreement is intended only for the benefit of the parties hereto and their respective successors and permitted assigns.

12. **Amendments and Waivers**. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and the Holders of 50.1% or more of the then outstanding Registrable Securities.

13. **Severability**. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

14. **Governing Law**. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware. Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby ("***Related Proceedings***") may be instituted in the federal courts of the United States of America located in the courts of the State of Delaware (collectively, the "***Specified Courts***"), and each party irrevocably submits to the exclusive jurisdiction (except for proceedings instituted in regard to the enforcement of a judgment of any such court (a "***Related Judgment***"), as to which such jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding. Service of any process, summons, notice or document by mail to such party's address set forth above shall be effective service of process for any suit, action or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or other proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such suit, action or other proceeding brought in any such court has been brought in an inconvenient forum.

15. **Counterparts**. This Agreement may be executed in one or more original or facsimile or by an e-mail which contains a portable document format (.pdf) file of an executed signature page counterparts, each of which shall be deemed an original, but all of which shall together constitute one and the same instrument and which shall be enforceable against the parties actually executing such counterparts. Either party may enter into this Agreement by executing any such counterpart manually or electronically (such as Adobe Sign or DocuSign) and delivering the executed counterpart by electronic means to the other party. The receiving party may rely on the receipt of such document so executed and delivered as if the original had been received.

16. **Further Assurances**. Each of the parties to this Agreement shall execute and deliver such additional documents, instruments, conveyances and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and to give effect to the transactions contemplated hereby.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first written above.

---

| | |
|:---|:---|
| FIREFLY AUTOMATIX, INC. | FIREFLY AUTOMATIX, INC. |
| By | /s/ Andrew Limpert |
| Name: | Andrew Limpert |
| Title: | Chief Executive Officer |
| FF OPPORTUNITIES 2 LLC | FF OPPORTUNITIES 2 LLC |
| By | /s/ Antonio Ruiz-Gimenez |
| Name: | Antonio Ruiz-Gimenez |
| Title: | Managing Member of ATW Partners GP II, LLC, Manager of FF Opportunities 2 LLC |
| FF OPPORTUNITIES 3 LLC | FF OPPORTUNITIES 3 LLC |
| By | /s/ Antonio Ruiz-Gimenez |
| Name: | Antonio Ruiz-Gimenez |
| Title: | Managing Member of ATW Partners Opportunities Fund GP, LLC, Manager of FF Opportunities 3 LLC |
| FF OPPORTUNITIES 4 LLC | FF OPPORTUNITIES 4 LLC |
| By | /s/ Antonio Ruiz-Gimenez |
| Name: | Antonio Ruiz-Gimenez |
| Title: | Managing Member of ATW Partners Opportunities Fund II GP, LLC, Manager of FF Opportunities 4 LLC |

---

<u>Exhibit A</u>

<u>Debentures</u>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Holder** | **Original<br> Principal** | **Conversion<br> Price** |  | **Base<br> Interest<br> Rate** | **Issuance<br> Date**  | **Maturity<br> Date**  |
| January 2022 Senior Secured Convertible Debenture | FF Opportunities 3 LLC | $3000000.00 | $10.5800 |  | 11% | 1/13/2022 | 1/31/2027 |
| January 2023 Senior Secured Convertible Debenture | FF Opportunities 4 LLC | $2000000.00 | $5.7705 |  | 15% | 1/19/2023 | 1/31/2027 |
| July 2024 Senior Secured Convertible Debenture | FF Opportunities 4 LLC | $1000000.00 | $5.5674 | (1) | 15% | 7/25/2024 | 1/31/2027 |
| June 2025 Senior Secured Convertible Debenture | FF Opportunities 4 LLC | $1000000.00 | $5.5674 | (1) | 15% | 6/18/2025 | 1/31/2027 |

---

<u>Exhibit B</u>

<u>Plan of Distribution</u>

Each Selling Stockholder (the "**Selling Stockholders**") of the securities and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their securities covered hereby on the Principal Market or any other stock exchange, market or trading facility on which the securities are traded or in private transactions. These sales may be at fixed or negotiated prices. A Selling Stockholder may use any one or more of the following methods when selling securities:

● one
 or more underwritten offerings on a firm commitment or best-efforts basis;

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

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

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

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

● privately
 negotiated transactions;

● settlement
 of short sales;

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

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

● a
 combination of any such methods of sale; or

● any
 other method permitted pursuant to applicable law.

The Selling Stockholders may also sell securities under Rule 144 or any other exemption from registration under the Securities Act of 1933, as amended (the "**Securities Act**"), if available, rather than under this prospectus.

To the extent required, this prospectus may be amended or supplemented from time to time to describe a specific plan of distribution.

If underwriters are used in a sale, they will acquire the offered common shares for their own account. The underwriters may resell the offered securities in one or more transactions, including negotiated transactions. The Selling Stockholder may offer the common shares to the public either through an underwriting syndicate represented by one or more managing underwriters or through one or more underwriter(s). The underwriters in any particular offering will be identified in the applicable prospectus supplement or pricing supplement, as the case may be.

Unless otherwise specified in connection with any particular offering of common shares, the obligations of the underwriters to purchase the offered common shares will be subject to certain conditions contained in an underwriting agreement that we and the Selling Stockholder will enter into with the underwriters at the time of the sale to them. The underwriters will be obligated to purchase all common shares offered if any of the common shares are purchased, unless otherwise specified in connection with any particular offering. Any initial offering price and any discounts or concessions allowed, reallowed or paid to underwriters may be changed from time to time.

Broker-dealers engaged by the Selling Stockholder may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the Selling Stockholder (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction not in excess of a customary brokerage commission in compliance with FINRA Rule 2121; and in the case of a principal transaction a markup or markdown in compliance with FINRA Rule 2121.

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

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

We will bear all fees and expenses incident to our obligation to register the common shares.

The resale securities will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states, the resale securities covered hereby may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.

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

## Exhibit 10.29

**Exhibit 10.29**

**OMNIBUS AMENDMENT AGREEMENT**

THIS OMNIBUS WAIVER AND AMENDMENT AGREEMENT (this "<u>Agreement</u>"), is made and entered into effective as of October 10, 2025, by and between FireFly Automatix, Inc., a Delaware corporation (the "<u>Company</u>") and FF Opportunities 2 LLC ("<u>FF2</u>"), FF Opportunities 3 LLC ("<u>FF3</u>") and FF Opportunities 4 LLC ("<u>FF4</u>" together with FF2 and FF3, each a "<u>Holder</u>" and together, the "<u>Holders</u>").

WHEREAS, the Company and FF2 are parties to that certain Securities Purchase Agreement, dated as of July 17, 2019 (the "<u>2019 Purchase Agreement</u>") pursuant to which the Company issued to FF2 an 11% Senior Secured Convertible Debenture dated as of July 17, 2019 (the "<u>2019 Debenture</u>") and Common Stock Purchase Warrant dated as of July 17, 2019 (the "<u>2019 Warrant</u>");

WHEREAS, the Company and FF2 are also parties to that certain Securities Purchase Agreement, dated as of April 22, 2020 (the "<u>April 2020 Purchase Agreement</u>") pursuant to which the Company issued to FF2 an 11% Senior Secured Convertible Debenture dated as of April 22, 2020 (the "<u>April 2020 Debenture</u>") and Common Stock Purchase Warrant dated as of April 22, 2020 (the "<u>April 2020 Warrant</u>");

WHEREAS, the Company and FF2 are also parties to that certain Securities Purchase Agreement, dated as of September 4, 2020 (the "<u>September 2020 Purchase Agreement</u>") pursuant to which the Company issued to FF2 an 11% Senior Secured Convertible Debenture dated as of September 4, 2020 (the "<u>September 2020 Debenture</u>") and Common Stock Purchase Warrant dated as of September 4, 2020 (the "<u>September 2020 Warrant</u>");

WHEREAS, the Company and FF3 are parties to that certain Securities Purchase Agreement, dated as of January 13, 2022 (the "<u>2022 Purchase Agreement</u>") pursuant to which the Company issued to FF3 an 11% Senior Secured Convertible Debenture dated as of January 13, 2022 (the "<u>2022 Debenture</u>") and Common Stock Purchase Warrant dated as of January 13, 2022 (the "<u>2022 Warrant</u>");

WHEREAS, the Company and FF4 are parties to that certain Securities Purchase Agreement, dated as of January 19, 2023 (the "<u>2023 Purchase Agreement</u>") pursuant to which the Company issued to FF4 a 15% Senior Secured Convertible Debenture dated as of January 19, 2023 (the "<u>2023 Debenture</u>"), Common Stock Purchase Warrant dated as of January 19, 2023 (the "<u>2023 Warrant</u>") and Common Stock Purchase Warrant dated as of July 11, 2024 (the "<u>2023 Extension Warrant</u>");

WHEREAS, the Company and FF4 are also parties to that certain Securities Purchase Agreement, dated as of July 25, 2024 (the "<u>2024 Purchase Agreement</u>", together with the 2019 Purchase Agreement, the April 2020 Purchase Agreement, the September 2020 Purchase Agreement, 2022 Purchase Agreement, and the 2023 Purchase Agreement, the "<u>Purchase Agreements</u>") pursuant to which the Company issued to FF4 (i) a 15% Senior Secured Convertible Debenture dated as of July 25, 2024 (the "<u>2024 Debenture</u>") and (ii) a 15% Senior Secured Convertible Debenture dated as of June 18, 2025 (the "2025 Debenture", and together with the 2019 Debenture, the April 2020 Debenture, the September 2020 Debenture, the 2022 Debenture, the 2023 Debenture, and the 2024 Debenture, the "<u>Debentures</u>"), Common Stock Purchase Warrant dated as of July 25, 2024 (the "<u>2024 Warrant</u>"), and Common Stock Purchase Warrant dated as of June 18, 2025 (the "<u>2025 Warrant</u>", and together with the 2019 Warrant, the April 2020 Warrant, the September 2020 Warrant, the 2022 Warrant, the 2023 Warrant, the 2023 Extension Warrant, and the 2024 Warrant the "<u>Warrants</u>"). All defined terms not otherwise defined herein shall have such meaning as defined in the applicable Purchase Agreement, Debenture or Warrant (the "<u>ATW Documents</u>");

WHEREAS, the Debentures have a maturity date of January 31, 2027; and

WHEREAS, the Company and each Holder desires to amend the Debentures as set forth herein.

NOW, THEREFORE, in consideration of the terms and conditions contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties intending to be legally bound hereby, agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amendment to Debentures</u>. The "Maturity Date" as defined in each of the Debentures is hereby amended to be January 31, 2028. Notwithstanding anything in the Debentures to the contrary, the Holders agree that no Extension Warrants (as defined in the applicable Debenture) shall be issuable to the Holders as a result of this Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Effect of Transaction Documents</u>. Except as expressly set forth herein and in the Prior Agreements, all of the terms and conditions of each of the Transaction Documents (as defined in each of the Purchase Agreements applicable to such Holder) shall continue in full force and effect after the execution of this Agreement and shall not be in any way changed, modified or superseded by the terms set forth herein. Each Holder acknowledges and agrees that as of the date hereof the Company is not in breach of, or default under, any of the Transaction Documents (as defined in each of the Purchase Agreements applicable to such Holder).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Notices</u>. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered as set forth in the applicable Transaction Documents (as defined in each of the Purchase Agreements applicable to such Holder).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Successors and Assigns</u>. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights or obligations hereunder without the prior written consent of each Holder. Each Holder may assign their respective rights hereunder in the manner and to the Persons as permitted under the applicable Transaction Documents (as defined in each of the Purchase Agreements applicable to such Holder).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Execution and Counterparts</u>. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf" signature page were an original thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Governing Law</u>. This Agreement shall be governed by and interpreted in accordance with laws of the State of New York, excluding its choice of law rules. The parties hereto hereby waive the right to a jury trial in any litigation resulting from or related to this Agreement. The parties hereto consent to exclusive jurisdiction and venue in the federal courts sitting in the southern district of New York, unless no federal subject matter jurisdiction exists, in which case the parties hereto consent to exclusive jurisdiction and venue in the New York state courts in the borough of Manhattan, New York. Each party waives all defenses of lack of personal jurisdiction and forum non conveniens. Process may be served on any party hereto in the manner authorized by applicable law or court rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Severability</u>. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Headings</u>. The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and shall not be deemed to limit or affect any of the provisions hereof.

[*SIGNATURE PAGE FOLLOWS*]

IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties have executed this Omnibus Waiver Agreement as of the date first set forth above.

---

| | |
|:---|:---|
| **FIREFLY AUTOMATIX, INC.** | **FIREFLY AUTOMATIX, INC.** |
| By: | */s/ Andrew W. Limpert* |
| Name: | Andrew W. Limpert |
| Title: | Chief Executive Officer |

---

*[signature page of Holders to follow]*

 

 

SIGNATURE PAGE OF HOLDERS TO

OMNIBUS WAIVER AGREEMENT

BETWEEN FIREFLY AUTOMATIX AND

THE HOLDERS THEREUNDER

---

| | |
|:---|:---|
| **Name of Holder: <u>FF Opportunities 2 LLC</u>** | **Name of Holder: <u>FF Opportunities 2 LLC</u>** |
| By: | */s/ Antonio Ruiz-Gimenez* |
| Name: | Antonio Ruiz-Gimenez |
| Title: | Managing Member of ATW Partners GP II, LLC, Manager of Holder |

---

---

| | |
|:---|:---|
| **Name of Holder: <u>FF Opportunities 3 LLC</u>** | **Name of Holder: <u>FF Opportunities 3 LLC</u>** |
| By: | */s/ Antonio Ruiz-Gimenez* |
| Name: | Antonio Ruiz-Gimenez |
| Title: | Managing Member of ATW Partners Opportunities Fund GP, LLC, Manager of Holder |

---

---

| | |
|:---|:---|
| **Name of Holder: <u>FF Opportunities 4 LLC</u>** | **Name of Holder: <u>FF Opportunities 4 LLC</u>** |
| By: | */s/ Antonio Ruiz-Gimenez* |
| Name: | Antonio Ruiz-Gimenez |
| Title: | Managing Member of ATW Partners Opportunities Fund II GP, LLC, Manager of Holder |

---

## Exhibit 23.1

**Exhibit 23.1**

**Consent of Independent Registered Public Accounting Firm**

We consent to the use in this Amendment No. 1 to Registration Statement on Form S-1 (No. 333-290743) of FireFly Automatix, Inc. (the "Company") of our report dated April 23, 2025, relating to the consolidated financial statements of the Company (which report expresses an unqualified opinion and includes an explanatory paragraph relating to a going concern uncertainty). We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ Baker Tilly US, LLP

Denver, Colorado

October 23, 2025