# EDGAR Filing Document

**Accession Number:** 0001817417
**File Stem:** 0001104659-25-103805
**Filing Date:** 2025-10
**Character Count:** 693685
**Document Hash:** 06fcb4627a08f81cc1e557b2b46e6649
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-103805.hdr.sgml**: 20251029

**ACCESSION NUMBER**: 0001104659-25-103805

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

**PUBLIC DOCUMENT COUNT**: 18

**FILED AS OF DATE**: 20251029

**DATE AS OF CHANGE**: 20251029

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Immersed Inc.
- **CENTRAL INDEX KEY:** 0001817417
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 815011777
- **STATE OF INCORPORATION:** DE

**FILING VALUES:**
- **FORM TYPE:** 1-A/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 024-12657
- **FILM NUMBER:** 251431166

**BUSINESS ADDRESS:**
- **STREET 1:** 12 MAIN STREET
- **CITY:** AUSTIN
- **STATE:** TX
- **ZIP:** 78704
- **BUSINESS PHONE:** 5106982462

**MAIL ADDRESS:**
- **STREET 1:** 106 E. 6TH STE 900-202
- **CITY:** AUSTIN
- **STATE:** TX
- **ZIP:** 78701

## Part

**As filed with the Securities and Exchange Commission on October 29, 2025**

 **Filed pursuant to Rule 252(d)**

 **File No. 024-12657**

**PART II – INFORMATION REQUIRED IN OFFERING CIRCULAR**

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

**PRELIMINARY OFFERING CIRCULAR, pre-qualification amendment no. 1**

**SUBJECT TO COMPLETION**

![](tm2528799d1_1asp01img001.jpg)

**IMMERSED INC.**

106 E. 6th St. STE 900-202 <br> Austin, Texas 78701<br> 512-649-5589<br> https://immersed.com

Up to 1,587,301 Shares of Common Stock to be issued and sold by the Company in the Primary Offering

Up to 302,343 Shares of Common Stock to be sold by Selling Stockholders in the Secondary Offering

Consisting of up to 1,889,644 Shares of Common Stock to be sold for Cash Consideration

and up to 317,460 to be issued as Bonus Shares

This pre-qualification offering circular amendment no. 1 (this "Offering Circular") amends the Form 1-A offering statement of Immersed Inc., a Delaware corporation (the "Company," "Immersed," "we," "us" or "our"), dated September 4, 2025, related to (i) the primary offering for the issuance and sale of up to 1,587,301 shares of the Company's common stock, par value $0.00001 per share (the "Shares") by us for cash consideration of up to $21,000,000 (the "Primary Offering"), and (ii) the secondary offering for sale of up to 302,343 Shares by the Selling Stockholders (as defined under "Plan of Distribution—Selling Stockholders" on page 39) for cash consideration of up to $4,000,000 (the "Secondary Offering"), consisting of a maximum of up to 1,889,644 Shares to be offered by us and the Selling Stockholders at a range of $10.58 to $13.23 per share (subject to adjustment for forward stock split) issuable or resold, as applicable, in exchange for cash consideration (plus a 3.0% Transaction Fee (as defined below) in connection with the Primary Offering and Secondary Offering), and a maximum of 317,460 Shares to be issued to eligible investors as "Bonus Shares" for no additional cash consideration to us, pursuant to Regulation A, Tier 2, under the Securities Act of 1933, as amended (the "Securities Act" and the "Offering"). The Company will not receive any of the proceeds from the sale of Shares being sold by the Selling Stockholders.

This Offering is being conducted on a "best efforts" basis, and we and the Selling Stockholders intend to sell the Shares either directly to investors or through registered broker-dealers who are paid commissions. This Offering will terminate on the earlier of (i) , 2027, (ii) the date on which the Primary Offering Maximum Amount (as defined below) is sold, or (iii) when the Board of Directors of the Company, at its sole discretion, elects to terminate the Offering (in each such case, the "Termination Date").

The minimum investment amount from an investor is $992.25 or 75 shares, plus a 3.0% investor transaction fee; however, we expressly reserve the right to waive this minimum in the sole discretion of our management. See "Description of Capital Stock" beginning on page 74 for a discussion of certain items required by Item 14 of Part II of Form 1-A.

We will hold closings at any time at the Company's discretion upon the receipt of investors' subscriptions and acceptance of such subscriptions by the Company. If, on the initial closing date, we have sold less than the Primary Offering Maximum Amount (as defined below), then we may hold one or more additional closings for additional sales of Shares, until the earlier of (i) the sale of the Primary Offering Maximum Amount (as defined below) or (ii) the Termination Date. There is no aggregate minimum requirement for the Offering to become effective; therefore, we reserve the right, subject to applicable securities laws, to begin applying the proceeds from the Offering in accordance with the uses set forth in the section entitled "Use of Proceeds" of this Offering Circular. No funds will be placed in an escrow account during the offering period, and no funds will be returned once an investor's subscription agreement has been accepted by us. Subscriptions for Shares are irrevocable, and the purchase price is non-refundable, unless the Company rejects a subscription, as expressly stated in this Offering Circular. All proceeds received by us from subscribers in this Offering will be available for use by us upon our acceptance of subscriptions for the Shares. We expect to commence the sale of Shares immediately following the qualification of this Offering Circular.

Investing in the Shares involves a high degree of risk. These are speculative securities. You should purchase these securities only if you can afford a complete loss of your investment. **See "<u>Risk Factors</u>" starting on page 6 for a discussion of certain risks that you should consider in connection with an investment in the Shares.**

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Number of<br> Shares** | **Price to<br> Public <sup>(2)</sup>** | **Broker-Dealer<br> Discounts<br> and Commissions <sup>(3)</sup>** | **Proceeds to<br> Issuer Before<br> Expenses <sup>(4)</sup>** | **Proceeds to<br> Selling<br> Stockholders<sup>(7)</sup>** |
| Per Share of Common Stock | 1889644<sup>(1)</sup> | $13.23 | $0.60 | $12.63 | $13.63 |
| Bonus Shares | 317460 |  |  |  |  |
| Transaction Fee (5) |  | $0.40 | $0.02 | $0.38 | $0.38 |
| Per Share plus Transaction Fee |  | $13.63 | $0.62 | $13.01 | $13.63 |
| Total Maximum with Transaction Fee (6) |  | $25749990 | $1632250 | $19997742 | $4119998 |
| Total Maximum Including Value of Bonus Shares and Transaction Fee (6) |  | $29949986 | $1632250 | $24197738 | $4119998 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Represents up to 1,587,301
 Shares of Common Stock to be issued and sold by the Company in the Primary Offering and up to 302,343 Shares of Common Stock to be
 sold by Selling Stockholders in the Secondary Offering.

(2) Reflects a public offering
 price using the upper limit of the range of $13.23 per Share, plus the $0.40 Transaction Fee (as defined below). In connection with
 the Primary Offering, the Company is offering up to 1,587,301 Shares directly to investors for up to a maximum of approximately $21,629,992,
 plus up to 317,460 additional Shares to be issued as Bonus Shares to eligible investors for no additional consideration (and no Transaction
 Fee shall be applied to the Bonus Shares). In connection with the Secondary Offering, the Selling Stockholders are offering up to
 302,343 Shares directly to investors for up to a maximum of approximately $4,119,998. The Offering price range does not reflect a
 planned 20-for-1 forward stock split whereby we intend to issue 20 new shares for each existing share, subject to stockholder approval.
 For more information see "Description of Capital Stock." For the purposes of Rule 251(a)(2), the Company is using
 an implied value of up to approximately $4,199,996 for the Bonus Shares. The Transaction Fee is not applicable with respect to Bonus
 Shares. See "Plan of Distribution" for more details.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The minimum investment
 amount for each subscription is $992.25 or 75 shares, which must be rounded up to the nearest whole number, plus a 3.0% Transaction
 Fee (as defined below). The Offering may be made, in management's discretion, directly to investors by the management of the
 Company on a "best efforts" basis. We reserve the right to offer the Shares through broker-dealers who are registered
 with the Financial Industry Regulatory Authority ("FINRA"). The Company has engaged DealMaker Securities LLC, a FINRA/SIPC
 registered broker-dealer ("Broker") and its affiliates, to perform broker-dealer administrative and compliance related
 functions in connection with this Offering. The Broker does not purchase any securities from the Company or from the Selling Stockholders
 with a view to sell those for the Company or the Selling Stockholders as part of the distribution of the security. The
 Company has agreed to pay Broker and its affiliates a one-time payment of $67,500, and monthly payments of $13,000 for up to three
 months for accountable expenses (total of $39,000), which are subject to refund, if expenses are not incurred. Once the offering
 commences, monthly payments of $13,000 will be paid for service fees up to a maximum of $117,000, plus a budget of supplemental marketing
 fees of $250,000, which may be used at the Company's discretion on a case-by-case basis, and a 4.5% commission (x) on
 the aggregate amount raised by the Company in connection with the Primary Offering and on the aggregate amount sold by the Selling
 Stockholders in connection with the Secondary Offering, and (y) on the Transaction Fee. Neither the Broker nor its affiliates
 will receive compensation on the issuance of the Bonus Shares. In case this Offering is fully subscribed, the maximum amount the
 Company would pay to the Broker is approximately $1,632,250. See "Plan of Distribution" for more details.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The amounts shown in
 the "Proceeds to Issuer Before Expenses" column include a deduction of 4.5% for commissions payable to Broker on all
 the Shares being offered in connection with the Primary Offering and the Secondary Offering, including on the Transaction Fee, and
 other Broker and affiliate compensation. The amount shown is before deducting other organization and Offering costs to be borne by
 the Company, including accounting, legal, printing, due diligence, software, marketing, selling and other costs incurred in the Offering
 of the Shares. The Company agreed to bear the costs and expenses on behalf of the Selling Stockholders in connection with
 the Secondary Offering. See "Use of Proceeds" and "Plan of Distribution."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) In connection with this
 Offering, investors will be required to pay a transaction fee equal to 3.0% of the subscription price per Share (the "Transaction
 Fee") to the Company at the time of the subscription to help offset estimated transaction costs of 2% for payment processing
 of the investors subscription proceeds (not reflected in the table above). The Broker and its affiliates will also receive compensation
 of 4.5% of the Transaction Fee up to approximately $33,750 (assuming all Shares are sold in connection with the Primary Offering
 and the Secondary Offering), which is included in the maximum compensation described in footnote (2) above. The remainder proceeds
 from the Transaction Fee of up to approximately $716,250 will be allocated to the Company to offset the transactions costs of this
 Offering. Transaction Fee applies to the Primary Offering and the Secondary Offering, but the Transaction Fee does not apply to the
 Bonus Shares eligible investors may receive in this Offering. See "Plan of Distribution" for more details.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The Shares are being offered pursuant
 to Regulation A of Section 3(b) of the Securities Act for Tier 2 offerings. The Shares are only being issued to purchasers
 who satisfy the requirements set forth in Regulation A. We have the option in our sole discretion to accept less than the minimum
 investment. While the Company will not receive any additional consideration for the Bonus Shares issued as part of this Offering
 or the Shares sold by the Selling Stockholders in connection with the Secondary Offering, pursuant to Rule 251(a) the total
 value of the Offering, as reflected here and in Part I of the Offering Statement of which this Offering Circular is part, is
 approximately $29,949,986 composed of approximately $19,997,742 in actual proceeds to the Company from investors, approximately $1,632,250,000
 for the maximum amount the Company would have to pay to the Broker in case of a fully subscribed Offering (which includes the investor
 Transaction Fee), the value of the Bonus Shares of approximately $4,199,996, and approximately $4,119,998 in gross proceeds to the
 Selling Stockholders in connection with the Secondary Offering. This full amount of approximately $29,949,986 is the total amount
 the Company is offering towards its annual $75 million offering cap under Rule 251(a)(2).

(7) The Selling Stockholders
 are offering up to 302,343 Shares directly to investors for up to a maximum of approximately $4,119,998 (including the Transaction
 Fee). However, the aggregate amount of approximately up to $113,951, which is derived from the Transaction Fee, will be
 allocated to the Company at the time of the subscription to help offset transaction costs, while the amount of approximately up to
 $6,047 will be allocated to the Broker as part of Broker's commission of 4.5%, as described above. The Company will
 bear the Broker's commission of 4.5% and the other costs and expenses incurred by the Selling Stockholders in connection with
 the Secondary Offering. Therefore, the Selling Stockholders will receive up to $4,000,000, on a pro rata basis, assuming all of their
 Shares offered in the Secondary Offering are sold. The amounts shown in the "Proceeds to Selling Stockholders" column
 does not include a deduction of 4.5% for commissions payable to Broker on the Shares being offered in connection with the Secondary
 Offering through Dealmaker's platform and on the Transaction Fee applicable to those Shares. See "Plan of Distribution—Selling
 Stockholders" for more information.

Bonus Shares are available to investors based on the criteria discussed below under "Plan of Distribution." Investors will pay full price for their securities, and if eligible, may receive Bonus Shares equal to an amount that is up to 20% of the number of shares purchased. Bonus Shares based on the amount of investment will be based on a single transaction and are not cumulative of multiple purchases. Those investors not eligible for ANY BONUS SHARES OR the maximum value of Bonus Shares will experience SIGNIFICANT dilution compared to investors receiving 20% Bonus Shares AND WILL RESULT IN INVESTORS PAYING DIFFERENT AMOUNTS FOR THEIR SHARES DEPENDENT ON HOW MANY BONUS SHARES THEY RECEIVE.

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

IF THE INVESTOR LIVES OUTSIDE OF THE U.S., IT IS THE INVESTOR'S RESPONSIBILITY TO FULLY OBSERVE THE LAWS OF ANY RELEVANT TERRITORY OR JURISDICTION OUTSIDE THE UNITED STATES IN CONNECTION WITH ANY PURCHASE OF THE SECURITIES, INCLUDING OBTAINING REQUIRED GOVERNMENTAL OR OTHER CONSENTS OR OBSERVING ANY OTHER REQUIRED LEGAL OR OTHER FORMALITIES. THE COMPANY RESERVES THE RIGHT TO DENY THE PURCHASE OF THE SECURITIES BY ANY FOREIGN INVESTOR.

This Offering Circular contains all of the representations by us concerning this Offering, and no person shall make different or broader statements than those contained herein. Investors are cautioned not to rely upon any information not expressly set forth in this Offering Circular.

The securities underlying this Offering Circular may not be sold until qualified by the Securities and Exchange Commission. This Offering Circular is not an offer to sell, nor soliciting an offer to buy, any Shares in any state or other jurisdiction in which such sale is prohibited.

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

The date of this Offering Circular is October 29, 2025.

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [IMPORTANT INFORMATION ABOUT THIS OFFERING CIRCULAR](#front_001) | [ii](#front_001) |
| [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS](#front_002) | [iii](#front_002) |
| [SUMMARY](#front_003) | [1](#front_003) |
| [REGULATION A+](#front_004) | [3](#front_004) |
| [THE OFFERING](#front_006) | [4](#front_006) |
| [RISK FACTORS](#front_007) | [6](#front_007) |
| [DILUTION](#ABC1) | [34](#ABC1) |
| [PLAN OF DISTRIBUTION](#ABC2) | [35](#ABC2) |
| [USE OF PROCEEDS](#ABC3) | [40](#ABC3) |
| [DESCRIPTION OF THE BUSINESS](#ABC4) | [41](#ABC4) |
| [DESCRIPTION OF PROPERTY](#ABC5) | [48](#ABC5) |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#ABC6) | [49](#ABC6) |
| [DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES](#front_008) | [69](#front_008) |
| [COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS](#front_009) | [70](#front_009) |
| [SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS](#front_010) | [72](#front_010) |
| [INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS](#front_011) | [73](#front_011) |
| [DESCRIPTION OF CAPITAL STOCK](#front_012) | [74](#front_012) |
| [ABSENCE OF PUBLIC MARKET](#front_013) | [78](#front_013) |
| [DIVIDEND POLICY](#front_014) | [78](#front_014) |
| [WHERE YOU CAN FIND MORE INFORMATION](#front_015) | [78](#front_015) |
| [LEGAL MATTERS](#front_016) | [79](#front_016) |
| [INDEPENDENT AUDITORS](#front_017) | [79](#front_017) |
| [INDEX TO FINANCIAL STATEMENTS](#front_018) | [F-1](#front_018) |
| [PART III – EXHIBITS](#ABC18) | [III-1](#ABC18) |
| [SIGNATURES](#ABC19) | [S-1](#ABC19) |

---

i

**IMPORTANT INFORMATION ABOUT THIS OFFERING CIRCULAR**

We are offering to sell, and seeking offers to buy, our securities only in jurisdictions where such offers and sales are permitted. Please carefully read the information in this Offering Circular and any accompanying offering circular supplements, which we refer to collectively as the Offering Circular. You should rely only on the information contained in this Offering Circular. We have not authorized anyone to provide you with any information other than the information contained in this Offering Circular. The information contained in this Offering Circular is accurate only as of its date or as of the respective dates of any documents or other information incorporated herein by reference, regardless of the time of its delivery or of any sale or delivery of our securities. Neither the delivery of this Offering Circular nor any sale or delivery of our securities shall, under any circumstances, imply that there has been no change in our affairs since the date of this Offering Circular. This Offering Circular will be updated and made for delivery to the extent required by the federal securities laws.

This Offering Circular is part of an Offering Statement that we filed with the SEC using a continuous offering process pursuant to Rule 251(d)(3)(i)(F) under the Securities Act. Periodically, we may provide an offering circular supplement that would add, update or change information contained in this Offering Circular. Any statement that we make in this Offering Circular will be modified or superseded by any inconsistent statement made by us in a subsequent offering circular supplement. The Offering Statement we filed with the SEC includes exhibits that provide more detailed descriptions of the matters discussed in this Offering Circular. You should read this Offering Circular and the related exhibits filed with the SEC and any offering circular supplement, together with additional information contained in our annual reports, semi-annual reports and other reports that we will file periodically with the SEC. The offering statement and all supplements and reports that we have filed or will file in the future can be read at the SEC website, www.sec.gov.

Unless otherwise indicated, data contained in this Offering Circular concerning the business of the Company are based on information from various public sources. Although we believe that these data are generally reliable, such information is inherently imprecise, and our estimates and expectations based on these data involve a number of assumptions and limitations. As a result, you are cautioned not to give undue weight to such data, estimates or expectations.

In this Offering Circular, unless the context indicates otherwise, references to the "Company," "Immersed," "we," "our," and "us" refer to the activities of and the assets and liabilities of the business and operations of Immersed Inc., a Delaware corporation.

ii

**CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS**

Some of the statements under "Summary," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Description of Business" and elsewhere in this Offering Circular may constitute "forward-looking statements" for purposes of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar matters that are not historical facts. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "should," "will" and "would" or the negatives of these terms or other comparable terminology.

You should not place undue reliance on forward-looking statements. The cautionary statements set forth in this Offering Circular, including in "Risk Factors" and elsewhere, identify important factors which you should consider in evaluating our forward-looking statements. These risk factors include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our history of losses and expectation to incur significant expenses and continuing losses at least for the near term;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our limited operating history on which to judge our business plan, technology, and management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our market opportunity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to properly manage our costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our Visor, Visor Plus and Curator, including the timing for development, manufacturing and initial deliveries of such products and the anticipated revenues and other benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The price of our securities has been determined by our management and such price may be deemed arbitrary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our limited resources compared to competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our business strategy, future operations, financial position, estimated revenues and losses, forecasts, projected costs, prospects and plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to grow market share in our existing markets or any new markets we may enter through sales and marketing investments or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to raise capital and the availability of future financing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to compete and succeed in a highly competitive and rapidly evolving industry; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to maintain key personnel to support our business development and activities.

Although the forward-looking statements in this Offering Circular are based on our beliefs, assumptions and expectations, taking into account all information currently available to us, we cannot guarantee future transactions, results, performance, achievements or outcomes. No assurance can be made to any investor by anyone that the expectations reflected in our forward-looking statements will be attained, or that deviations from them will not be material and adverse. We undertake no obligation, other than as may be required by law, to re-issue this Offering Circular or otherwise make public statements updating our forward-looking statements.

iii

**SUMMARY**

This summary highlights selected information contained elsewhere in this Offering Circular. This summary is not complete and does not contain all the information that you should consider before deciding whether to invest in our Shares. You should carefully read the entire Offering Circular, including the risks associated with an investment in the Company discussed in the "Risk Factors" section of this Offering Circular, before making an investment decision. Some of the statements in this Offering Circular are forward-looking statements. See the section entitled "Cautionary Statement Regarding Forward-Looking Statements."

**Overview**

Our mission is to become a leading provider of AR/VR productivity solutions that is building artificial intelligence ("AI") productivity solutions to digitally transform the working environment to enhance worker and company efficiency. Founded in 2017 and headquartered in Austin, Texas, Immersed has developed spatial computing software optimized for enterprise, that allows users to work full-time with their team in virtual AR/VR offices. Immersed is also developing purpose-built spatial computing hardware called "Visor" that is 70% lighter weight and 70% less expensive than other 4K-per-eye headsets, which Immersed intends to bring to mass production with a major AR/VR manufacturing company, and an AI assistant named "Curator" that is optimized for enterprise office productivity using multi-modal large language models (LLMs) that is expected to considerably increase worker productivity. With our innovative spatial computing software and AI-driven solutions, we believe Immersed is well positioned to help organizations adapt to the changing dynamics of the workforce and equip employees with the skills and capabilities needed for the jobs of the future. Immersed has a limited operating history and has not generated a profit.

Immersed's workplace productivity application is one of the most widely used AR/VR enterprise solutions, uniquely connecting any AR/VR headset to any computer operating system and providing up to five virtual monitors. Compatible with hardware from major companies like Meta, Microsoft, Apple, HTC, ByteDance, and SteamVR, the application enables users to work independently or collaborate by sharing screens and whiteboards, regardless of location. Additionally, its integrated AI assistant, Curator, is designed to index and analyze virtual interactions while preserving privacy, allowing users to recall information via natural language prompts and ultimately boosting productivity and cost savings. Built on the Unity game engine and OpenXR standards—and enhanced by Microsoft's Mixed Reality Toolkit 3 and Qualcomm's Snapdragon Spaces SDK—Immersed delivers a seamless, hardware-agnostic virtual experience now available across all major AR/VR app stores. Our technologies and services offerings are described in greater detail in "Description of Business" below together with a detailed description of our entire business.

Our principal place of business and mailing address is Immersed Inc., 106 E. 6th St. STE 900-202, Austin, Texas 78701, and our telephone number is 512-649-5589. Our website is https://immersed.com. The information contained therein or accessible thereby shall not be deemed to be incorporated into this Offering Circular.

**Summary Risk Factors**

Investing in our securities involves a high degree of risk. You should carefully consider the risks described in the "Risk Factors" section before making an investment decision. Some of the key risks include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We may require additional capital to support the growth of our business, and this capital might not be available on acceptable terms, if at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We may need to raise additional funds and these funds may not be available when needed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We have experienced rapid growth and expect to invest in growth for the foreseeable future. If we fail to manage growth effectively, our business, operating results and financial condition would be adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We have a history of losses and expect to incur significant expenses and continuing losses at least for the near term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our estimates of market opportunity and forecasts of market growth may prove to be inaccurate, and even if the market in which we compete achieves the forecasted growth, our business could fail to grow at a similar rate, if at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We currently face competition from a number of companies and expect to face significant competition in the future as the market for spatial computing develops. If we do not compete effectively, our business, financial condition, and results of operations could be harmed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· As a provider of a virtual reality software solution for hybrid and remote work, we face potential risks associated with the post-pandemic return to office. The shift back to traditional office environments could impact the demand for our AR/ VR collaboration application and remote work solutions.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our success may be reliant on the development and integration of the Immersed Visor, which could introduce additional risks and challenges to the business. The following considerations address the potential risks associated with developing and incorporating essential hardware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We will rely on a limited number of suppliers and manufacturers for the Immersed Visor, and availability of supplied hardware may be affected by factors such as tariffs or supply disruptions caused by the COVID-19 pandemic and general economic conditions. We may not be able to obtain sufficient components or completed Visors to meet our needs, or obtain such materials on favorable terms or at all, which could impair our ability to fulfill orders in a timely manner or increase our costs of production.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Some of our facilities are located in areas susceptible to wildfires and other severe weather events. An earthquake, wildfire or other natural disaster or resource shortage, including public safety power shut-offs that have occurred and will continue to occur in Texas or other states, could disrupt and harm our operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· If we fail to retain current subscribers or add new subscribers, our business would be seriously harmed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Computer malware, viruses, ransomware, hacking, phishing attacks and other network disruptions could result in security and privacy breaches and interruption in service, which would harm our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Immersed has identified a significant deficiency in its design and implement of internal controls to formalize roles and review responsibilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We are dependent on the success of our customers in the enterprise market. Adverse events relating to our customers could have a negative impact on our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We intend to provide service-level agreement commitments related to our platform. If we fail to meet these contractual commitments, we could be obligated to provide refunds of prepaid amounts or other credits, which would lower our revenue and harm our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· If we fail to offer high-quality support, our ability to retain and attract customers could suffer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Acquisitions, strategic investments, partnerships, and alliances could be difficult to identify, pose integration challenges, divert the attention of management, disrupt our business, dilute stockholder value, and adversely affect our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We are exposed to collection and credit risks, which could impact our operating results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our current research and development efforts may not produce successful products or features that result in significant revenue, cost savings or other benefits in the near future. If we do not realize significant revenue from our research and development efforts, our business and operating results could be adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our future growth and success is dependent upon the continuing rapid adoption of spatial computing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The spatial computing market is characterized by rapid technological change, which requires us to continue to develop new services, products and service and product innovations. Any delays in such development could adversely affect market adoption of our products and services and could adversely affect our business and financial results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Developing and launching an AI assistant product presents unique challenges and risks that could adversely impact the business and operations of the Post-Combination Company. The unsuccessful development, deployment, and adoption of an AI assistant could adversely affect our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· If we fail to timely release updates and new features to our platform and adapt and respond effectively to rapidly changing technology, evolving industry standards, changing regulations, or changing customer needs, requirements, or preferences, our platform may become less competitive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our business may be adversely affected if we are unable to protect our spatial computing technology and intellectual property from unauthorized use by third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Because we store, process, and use data, some of which contains personal information, we are subject to complex and evolving federal, state and foreign laws and regulations regarding privacy, data protection, and other matters. Many of these laws and regulations are subject to change and uncertain interpretation, and could result in investigations, claims, changes to our business practices, increased cost of operations, or declines in customers or retention, any of which could seriously harm our business.

**REGULATION A+**

We are offering our Shares pursuant to rules of the SEC mandated under the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). These offering rules are often referred to as "Regulation A+." We are relying upon "Tier 2" of Regulation A+, which allows us to offer and sell up to $75 million in a 12-month period.

In accordance with the requirements of Tier 2 of Regulation A+, we are required to publicly file annual, semiannual, and current event reports with the SEC.

 **Bonus Shares**

As mentioned above, certain investors in this offering are eligible to receive Bonus Shares of Common Stock for no additional consideration. The amount of Bonus Shares investors in this Offering are eligible to receive and the criteria for receiving such Bonus Shares is described under "Plan of Distribution—Bonus Shares for Certain Investors (Up to 20%)" below. Our current noteholders, including holders of convertible promissory notes issued by us, will not be deemed "investors" eligible for Bonus Shares unless and solely to the extent they make a new cash investment in this Offering after qualification by the SEC. No Bonus Shares will be issued in respect of any conversion, exchange, or cancellation of outstanding indebtedness, including the conversion of any notes issued by us, whether before or after qualification of this Offering by the SEC.

**THE** **OFFERING**

---

| | |
|:---|:---|
| **Issuer** | Immersed Inc., a Delaware corporation. |
| **Securities Offered by the Company** | A maximum of 1,587,301 Shares at an offering price of $13.23 per Share, plus up to 317,460 additional shares of Common Stock eligible to be issued as Bonus Shares for no additional consideration. |
| **Securities Offered by Selling Stockholders** | A maximum of 302,343 Shares at an offering price of $13.23 for up to $4,000,000 to be received by the Selling Stockholders. |
| **Securities Outstanding before the Offering** <br> **(as of the date of this Offering Circular):**  |  |
| Common Stock <sup>(1)</sup> | 5,821,712 shares of Common Stock (subject to adjustment for a planned 20-for-1 forward stock split). |
| **Securities Outstanding after the Offering<sup>(2)</sup>:** |  |
| Common Stock <sup>(1)</sup> | 7,726,473 shares of Common Stock (subject to adjustment for a planned 20-for-1 forward stock split). |
| **Price per Share Range** | $10.58 to $13.23 (final price to be fixed prior to qualification), plus the $0.40 Transaction Fee, which is based on the upper limit of the price range (prior to adjustment for forward stock split pricing). |
| **Transaction Fee per Share** | $0.40 per Share. |
| **Primary Offering Maximum Amount** | Approximately $21,629,992 (including the investor Transaction Fee of 3.0% to offset our Offering costs assuming the Primary Offering Maximum Amount is raised). |
| **Secondary Offering Maximum Amount<sup>(3)</sup>** | Approximately $4,119,998 (including the investor Transaction Fee of 3.0%, which will be allocated to the Company to offset the Offering costs assuming the Secondary Offering Maximum Amount is sold). |
| **Use of Proceeds** | If the Primary Offering Maximum Amount is sold, our net proceeds (after our estimated offering expenses, broker-dealer discounts and commissions of approximately $2,369,629) are expected to be approximately $19,380,360 (including the Transaction Fee applied on the Selling Stockholders' Shares, assuming the total Selling Stockholders' Shares are sold in connection with the Secondary Offering, which will be allocated to the Company to offset the Offering costs). We intend to use the net proceeds from this Offering to fund our business strategy, including without limitation, product development, salaries and compensation, general corporate purposes, offering expenses, and such other purposes described in the "Use of Proceeds" section of this Offering Circular. We will not receive any of the proceeds from the sale of Shares being sold by the Selling Stockholders in connection with the Secondary Offering. |
| **Risk Factors** | Investing in our Common Stock involves a high degree of risk. See "Risk Factors" starting on page 6. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) As of June 30,
 2025, 11,984,141 options to purchase shares of Common Stock have been issued pursuant to stock option award agreements under the
 2017 Stock Option Plan, with exercise prices ranging from $0.02 per share to $3.70 per share, and 1,492,595 shares of Common Stock
 remain available for future grants under the 2017 Stock Option Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Considering the maximum amount of Shares in connection with
 the Primary Offering is issued and sold by us and all Bonus Shares are issued, and considering the maximum amount of Shares in connection
 with the Secondary Offering is sold by the Selling Stockholders.

(3) The Selling Stockholders will receive up to $4,000,000,
 on a pro rata basis, assuming the Secondary Offering Maximum Amount is sold.

**Increase our Authorized Capital Stock**

The number of shares of Common Stock currently authorized under our Certificate of Incorporation is not sufficient to cover the total number of shares of Common Stock we are offering pursuant to this Offering. Prior to the qualification of this Offering by the SEC, we intend to file an amended and restated certificate of incorporation with the Secretary of State of the State of Delaware to increase the number of authorized shares of our Common Stock to a number sufficient to cover the shares offered hereby and to provide us with additional authorized but unissued shares for future corporate purposes. The financial and share-related information presented in this Offering Circular does not currently assume the filing and effectiveness of such amended and restated certificate of incorporation. There can be no assurance that such amendment will be effected as currently anticipated.

**Forward Stock Split**

In connection with this Offering and subject to stockholder approval, we intend to effect a forward stock split of our Common Stock at a ratio of 20-for-1 prior to qualification of this Offering. The purpose of the forward stock split is to proportionally increase the number of shares of our Common Stock outstanding and adjust the per-share price of the Shares offered so that the public offering price falls within the anticipated price range of $0.50 to $1.00 per share. The forward stock split ratio of 20-for-1 may be adjusted by the Board in its discretion as it deems necessary to achieve the desired price range.

The number of Shares and price range included in this Offering Circular does not currently assume that the forward stock split has been effected. The forward stock split has not yet occurred and will be implemented following stockholder approval and immediately prior to the qualification of this Offering and effectiveness of the related amended and restated certificate of incorporation. Upon approval of the forward stock split, we intend to file an amendment to this Offering Circular with the SEC to reflect the stock split, including updated disclosures regarding the number of Shares offered, price range, and revisions to our financial statements and related financial information. The actual ratio and timing of the forward stock split will be determined by our board of directors in its sole discretion and remain subject to change. There can be no assurance that the forward stock split will occur as currently contemplated or that it will achieve the intended price range for the Offering.

**RISK** **FACTORS**

You should carefully consider the risks described below in addition to all other information included in this Offering Circular before making an investment decision. The risks described below are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially and adversely affect our business operations. Any of the following risks could materially and adversely affect our business, results of operations and financial condition.

This Offering Circular also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including the risks faced by us described below and elsewhere in this Offering Circular. You should read "Cautionary Statement Regarding Forward-Looking Statements" for more information.

**Risks Related to the Business**

***We may need to raise additional funds and these funds may not be available when needed.***

We may need to raise additional funds in the future to further scale our business and expand to additional markets. We may raise additional funds through the issuance of equity, equity-related or debt securities, or by obtaining credit from financial institutions. We cannot be certain that additional funds will be available on favorable terms when required, or at all. If we cannot raise additional funds when needed, our financial condition, results of operations, business and prospects could be materially and adversely affected. If we raise funds through the issuance of debt securities or other loan transactions, we could face significant interest payments, covenants that restrict our business, or other unfavorable terms. In addition, to the extent we raise funds through the sale of additional equity securities, our stockholders would experience additional dilution.

We could also be required to seek funds through arrangements with collaborative partners or otherwise at an earlier stage than would be desirable. In such a case, we may be required to relinquish rights to some of our technologies or product candidate or agree to terms unfavorable to us, any of which may have a material adverse effect on our business, operating results, and prospects.

If we are unable to obtain funding on a timely basis, we may be required to significantly curtail, delay or discontinue one or more of our research or development programs, the commercialization of any product candidate, or be unable to expand our operations or otherwise capitalize on our business opportunities, as desired, which could materially affect our business, financial condition, and results of operations.

***We may require additional capital to support the growth of our business, and this capital might not be available on acceptable terms, if at all.***

We have funded our operations since inception primarily with the issuance of equity securities, debt and cash generated from sales from our platform, including consumer subscriptions and order deposits. We cannot be certain when or if our operations will generate sufficient cash to fully fund our ongoing operations or the growth of our business. We intend to continue to make investments to support our business and may require additional funds to respond to business challenges, including the need to develop new solutions, products, services or enhance our existing solutions, products or services, enhance our operating infrastructure, expand globally and acquire complementary businesses and technologies. Additional financing may not be available on terms favorable to us, if at all. If adequate funds are not available on acceptable terms, we may be unable to invest in future growth opportunities, which could harm our business, operating results, and financial condition. If we incur additional debt, the debt holders would have rights senior to holders of common stock to make claims on our assets, and the terms of any debt could restrict our operations, including our ability to pay dividends on our common stock. Furthermore, if we issue additional equity securities, stockholders will experience dilution, and the new equity securities could have rights senior to those of our common stock. Because our decision to issue securities in the future will depend on numerous considerations, including factors beyond our control, we cannot predict or estimate the amount, timing, or nature of any future issuances of debt, equity, or other securities. As a result, our stockholders bear the risk of future issuances of debt, equity, or other securities reducing the value of our common stock and diluting their interests. Our inability to obtain adequate financing on terms satisfactory to us, when we require it, could significantly limit our ability to continue to support our business growth, respond to business challenges, expand our operations or otherwise capitalize on our business opportunities due to lack of sufficient capital. Even if we are able to raise such capital, we cannot assure you that it will enable us to achieve better operating results or grow our business.

***We have experienced rapid growth and expect to invest in growth for the foreseeable future. If we fail to manage growth effectively, our business, operating results and financial condition would be adversely affected.***

We have experienced rapid growth in recent periods. For example, the number of our team has grown from one employee as of January 4, 2017, to 27 team members as of the date of this Offering Circular, and we expect to continue to experience rapid growth over the near term. The growth and expansion of our business has placed and continues to place a significant strain on our management, operations, financial infrastructure and corporate culture.

In the event of further growth, our information technology systems and internal controls over financial reporting and procedures may not be adequate to support our operations and may introduce opportunities for data security incidents that may interrupt business operations or permit bad actors to obtain unauthorized access to business information or misappropriate funds.

To manage growth in operations and personnel, we will need to continue to improve our operational, financial and management controls and reporting systems and procedures. Failure to manage growth effectively could result in difficulty or delays in attracting new customers, declines in quality or customer satisfaction, increases in costs, difficulties in introducing or enhancing products and services, loss of customers, information security vulnerabilities or other operational difficulties, any of which could adversely affect our business performance and operating results.

***We have a history of losses and expect to incur significant expenses and continuing losses at least for the near term.***

For the six months ended June 30, 2025, we incurred a net loss of approximately $1,876,218, and as of June 30, 2025 we had an accumulated deficit of approximately $33,250,609. We incurred a net loss of approximately $14,269,329 and $5,307,684 for the years ended December 31, 2024 and 2023, respectively, and, as of December 31, 2024, had an accumulated deficit of approximately $31,374,391. We believe we will continue to incur operating and net losses each quarter at least for the near term. Even if we achieve profitability, there can be no assurance that we will be able to maintain profitability in the future. Though Immersed's leadership team desires to reach profitability as soon as possible and maintain it, our potential profitability is particularly dependent upon the continued adoption of spatial computing and the use of our platform by commercial and individual consumers, which may not occur at the levels we currently anticipate or at all.

We have historically funded the net cash needed for operating and investing activities through the sale of equity and through debt financing. Before this Offering, we have cash to fund our forecasted operating expenses, working capital requirements and capital expenditures through April 2026. Therefore, we do not have adequate liquidity to meet our forecasted obligations for a period of one year from the date of this Offering. We have historically raised capital through several financing arrangements, including the issuance of convertible promissory notes pursuant to Regulation D, public crowdfunding campaigns, agreements with merchant cash advance providers, and loan agreements. These financing arrangements have been entered into at different times and on varying terms, and some of them remain outstanding. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Debt and Financing Arrangements." Our plan is to raise additional capital through the issuance and sale of the Shares in connection with this Offering. If we are unable to raise additional capital through this Offering, we will decrease spending levels for labor, and sales and marketing programs, and we will also reduce discretionary spending, including reducing our direct and indirect labor, reducing sales and marketing costs and focusing our available capital on a reduced number of prioritized activities and programs, in order to have sufficient liquidity to fund our operations for at least one year from the date of the issuance of these financial statements. We cannot assure you that such measures would be sufficient to enable us to fund our operations for one year from the date of this Offering if we are unable to raise sufficient funds in connection with this Offering.

***We are subject to liquidity risk.***

Liquidity risk arises through the excess of financial obligations due over available financial assets at any point in time. Our objective in managing liquidity risk will be to maintain sufficient readily available cash reserves and credit in order to meet its liquidity requirements at any point in time. As we do not currently have revenue and are not expected to have revenue in the foreseeable future, we will be reliant upon debt and equity financing to mitigate liquidity risk. The total cost and planned timing of acquisitions and/or other development or construction projects is not currently determinable, and it is not currently known precisely when we will require external financing in future periods. There is no guarantee that external financing will be available on commercially reasonable terms, or at all, and our inability to finance future development and acquisitions would have a material and adverse effect on us and our business and prospects.

***We may not be able to continue as a "going concern."***

The Company sustained recurring losses and negative cash flows from operations for the six months ended June 30, 2025, and for the years ended December 31, 2024 and 2023. These factors, among others, raise substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent on various factors, such as our ability to continue to raise additional debt or equity financing, including through this Offering, and to increase revenue through our sales efforts. We cannot assure you that the consummation of this Offering will eliminate any doubts about our ability to continue as a going concern. We cannot provide any assurance that we will be able to raise sufficient additional capital to meet the needs of our business. If we are unable to continue as a going concern, we may be forced to sell our assets, seek bankruptcy relief or otherwise restructure our balance sheet or liquidate, and you could lose all or a substantial portion of your investment.

***Our estimates of market opportunity and forecasts of market growth may prove to be inaccurate, and even if the market in which we compete achieves the forecasted growth, our business could fail to grow at a similar rate, if at all.***

This Offering Circular includes estimates of the addressable market for our products. The estimates of market opportunity and forecasts of market growth we have made and may make may prove to be inaccurate. Market opportunity estimates and growth forecasts, including those we have generated ourselves, are subject to significant uncertainty and are based on assumptions and estimates that may not prove to be accurate. The variables that affect the calculation of our market opportunity are also subject to change over time.

Estimates of market opportunity in industries are uncertain, given the earlier stage of adoption of solutions for AR/VR in the markets. Our estimates of the addressable market opportunities depend on a variety of factors, including the number of potential users of our platform across various industries. We cannot be sure that such industries will adopt AR/VR generally, or our solutions specifically, to any particular extent or at any particular rate.

Our expectations regarding potential future market addressable opportunities are subject to even greater uncertainty. For example, our expectations regarding future market opportunities depend, among other things, on the extent to which we are able to develop new products and features that expand the applicability of our software platform. In addition, our expectations regarding future market opportunities represented by augmented reality and virtual reality applications are subject to uncertainties relating from the fact that such applications are at relatively early stages of development and may not grow at the rates we expect. The extent to which engineers, technicians or other potential users of our platform in industries outside higher education are representative of other future market opportunities will depend on those industries having use cases that can be served by AR/VR content. Our ability to address those opportunities will depend on our developing products that are responsive to those use cases.

We cannot assure you that any particular number or percentage of addressable users or companies covered by our market opportunity estimates will purchase our solutions at all or generate any particular level of revenue for us. In addition, any expansion in our market depends on a number of factors, including the cost, performance and perceived value associated with our platform and those of our competitors.

Even if the market in which we compete meets the size estimates and growth we forecast, our business could fail to achieve a substantial share of this market or grow at a similar rate, if at all. Our growth is subject to many risks and uncertainties. Accordingly, the estimates of market opportunity or forecasts of market growth we have made and may make should not be taken as indicative of our future growth.

***We currently face competition from a number of companies and expect to face significant competition in the future as the market for spatial computing develops. If we do not compete effectively, our business, financial condition, and results of operations could be harmed.***

The spatial computing market is relatively new and competition is still developing. The markets in which we operate are highly competitive. A significant number of companies have developed or are developing AR/VR solutions that currently, or in the future may, compete with some or all of our offerings and we also compete with competitors offering traditional, offline methods of workplace interaction and productivity. As we look to market and sell our platform to potential customers with existing solutions, we must convince their internal stakeholders that our platform is superior and/or more cost-effective to their current solutions.

With respect to our software platform, we primarily compete against Meta Workrooms, EngageXR, Virbela, etc., in the spatial computing industry. Outside of the enterprise industry, we also compete with other development platforms that offer virtual screens like Virtual Desktop, BigScreen, and Apple Vision Pro.

With respect to our Immersed Visor, we compete in a fragmented ecosystem composed of select divisions of large, well-established companies as well as privately held companies. The large companies in our ecosystem may play multiple roles given the breadth of their business. Examples of these large companies are Apple, Meta, Google, HTC, Bytedance and Microsoft. Most of these companies are or could be seen as our competition.

With the introduction of new technologies and market entrants, we expect that the competitive environment will remain intense or become even more intense in the future. Some of our actual and potential competitors have been acquired by other larger companies and have made or may make acquisitions, or may enter into partnerships or other strategic relationships that may provide more comprehensive offerings than they offered individually or achieve greater economies of scale than us.

Our competitors vary in size and in the breadth and scope of the solutions offered. Some of our competitors and potential competitors have greater name recognition, longer operating histories, more established customer relationships, larger marketing budgets and greater financial and operational resources than we do. Further, other potential competitors not currently offering competing products or services may expand their offerings to compete with our platform or enter the market through acquisitions, partnerships or strategic relationships. In addition, our current and potential competitors may have or establish cooperative relationships among themselves or with our customers or other third parties that may further enhance their resources and offerings in our addressable market. Our competitors may be able to respond more quickly and effectively than we can to new or changing opportunities, technologies, standards, and customer requirements. An existing competitor or new entrant could introduce new technology that is perceived to be easier to use or otherwise favorable to ours, which could reduce demand for our software platform or Immersed Visor.

For all of these reasons, we may not be able to compete successfully against our current or future competitors, which could result in the failure of our platform to continue to achieve or maintain market acceptance, which would harm our business, results of operations and financial condition.

Our business, like many others, is susceptible to the potential risks and uncertainties associated with general economic downturns, including those resulting from future pandemics. These economic downturns could significantly impact our operations, financial performance, and overall business.

The impact of a future pandemic, including changes in consumer and business behavior, pandemic fears and market downturns, and restrictions on business and individual activities, could create significant volatility in the global and domestic economy and lead to reduced economic activity.

The following are potential risks associated with a general economic downturn resulting from a future pandemic:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reduced Customer Spending: Economic downturns often lead to reduced consumer and business spending, resulting in decreased demand for our VR collaboration application and services. Organizations may cut back on non-essential expenses, including technology investments, negatively impacting our revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Delayed Decision-Making: During economic uncertainty, businesses may postpone or delay making purchasing decisions, leading to longer sales cycles and potential revenue decline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reduced Funding and Investments: Economic downturns can lead to reduced venture capital funding, fewer investments in technology companies, and lower valuations, limiting our ability to raise necessary capital for growth and expansion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Disrupted Supply Chains: Economic downturns may disrupt supply chains, affecting the availability of necessary hardware components, equipment, and resources required for our platform's functionality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Impact on Advertising and Marketing: Organizations may cut back on advertising and marketing budgets during economic downturns, making it challenging to attract new users and customers to our platform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Subscription Cancellations: Economic pressures may lead businesses and individuals to cancel or downgrade their subscriptions, reducing our recurring revenue and impacting overall financial stability.

These potential risks associated with an economic downturn resulting from a future pandemic could significantly impact our operations, financial performance, and overall business.

***As a provider of a virtual reality software solution for hybrid and remote work, we face potential risks associated with the post-pandemic return to office. The shift back to traditional office environments could impact the demand for our AR/ VR collaboration application and remote work solutions.***

The following are potential risks associated with the return to the office:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reduced Demand for Remote Work Solutions: Organizations may transition back to in-office work arrangements, leading to decreased demand for remote-only work tools and virtual collaboration solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Disrupted Business Model: A widespread return to office environments could challenge our business model, which focuses on providing virtual collaboration tools for hybrid and remote work scenarios.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Loss of Users: Users who adopted our platform primarily for remote work purposes may no longer require our solution once they return to office settings, leading to a potential loss of users and subscribers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Competition from Traditional Tools: Organizations may revert to using traditional communication and collaboration tools commonly used in office settings, reducing the perceived need for virtual reality solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Adaptation to New Market Dynamics: We may need to adapt our product offering to cater to a changing market dynamic where remote work coexists with office-based work, which could require additional development efforts and resources.

These potential risks associated with post-pandemic return to work could significantly impact our operations, financial performance, and overall business.

***Our success may be reliant on the development and integration of the Immersed Visor, which could introduce additional risks and challenges to the business. The following considerations address the potential risks associated with developing and incorporating essential hardware.***

While we are in advanced discussions with various potential partners to help to develop and manufacture the Immersed Visor, no formal agreement/partnership has been struck yet. There is a risk that the plans for the Immersed Visor do not come to fruition since developing new hardware components involves intricate engineering, design, manufacturing, and testing processes. Technical challenges, unforeseen complexities, or delays in the development timeline could impact product launch schedules, leading to missed opportunities and revenue targets. Additionally, integrating new hardware seamlessly into our existing software platforms may be complex. Compatibility issues, interoperability challenges, or disruptions during integration could lead to customer frustration and hinder the successful deployment of the integrated solution. Developing and manufacturing hardware often involves significant upfront costs. Cost overruns due to unexpected expenses in research, development, production, or supply chain management could strain financial resources and negatively impact profitability.

The success of new hardware components depends on their adoption by customers. Poor market reception, reluctance to adopt new technology, or the emergence of competing solutions could impact the demand for the hardware product. Scaling up production to meet demand can be challenging. Scaling too quickly may lead to production issues, while scaling too slowly may result in missed market opportunities. The hardware development process may span multiple years, during which technology evolves rapidly. There is a risk that the developed hardware may become obsolete before or shortly after its launch, affecting its competitiveness and appeal.

Hardware development and manufacturing processes can have environmental implications. Failing to consider sustainable practices and address environmental concerns could lead to reputational damage and regulatory challenges. Offering warranties and providing reliable customer support for hardware products is essential. Inadequate warranty coverage or inefficient customer support could lead to dissatisfied customers and decreased brand loyalty. If the Immersed Visor is not manufactured and sold or is sold but received poorly, this could significantly impact our operations, financial performance, and overall business.

***We will rely on a limited number of suppliers and manufacturers for the Visor, and availability of supplied hardware may be affected by factors such as tariffs or supply disruptions and general economic conditions. We may not be able to obtain sufficient components or completed Visors to meet our needs, or obtain such materials on favorable terms or at all, which could impair our ability to fulfill orders in a timely manner or increase our costs of production.***

We will rely on a limited number of manufacturers and suppliers of components for the Visor, including in some cases only a single supplier. This reliance on a limited number of suppliers and manufacturers increases our risks, since we do not currently have proven reliable alternative or replacement manufacturers beyond these key parties. In the event of interruption, we may not be able to increase capacity from other sources or develop alternate or secondary sources, and if such sources become available, they may result in material additional costs and substantial delays.

Further, our suppliers are subject to government restrictions. Such restrictions may have a material adverse effect on our suppliers' ability to manufacture and supply such components in a timely manner. Such disruptions could adversely affect our business if it is not able to meet customer demands. In addition, some of our suppliers and manufacturers are located in China. Our access to suppliers in China may be limited or impaired as a result of tariffs or other government restrictions in response to geopolitical factors. The company must ensure that its own-brand hardware products comply with industry standards, safety regulations, and other legal requirements.

The company is dependent on its ability to secure favorable terms and pricing, and to maintain positive a relationship with its third-party manufacturers. Disagreements, contractual disputes, or changes in terms could impact the company's profitability and operational efficiency.

If we face supply constraints for any of the reasons described above, it may not be possible to obtain or increase supplies on acceptable terms, which may undermine our ability to satisfy customer demands in a timely manner. For example, it may take a significant amount of time to identify a manufacturer that has the capability and resources to build and supply necessary hardware components in sufficient volume.

Identifying suitable suppliers can be an extensive process that requires us to become satisfied with our suppliers' quality control, technical capabilities, responsiveness and service, financial stability, regulatory compliance, and labor and other ethical practices. Accordingly, a loss of any significant suppliers or manufacturers would have an adverse effect on our business, financial condition and operating results.

***As a company planning to sell and distribute our own-brand hardware manufactured by a third party, we face specific risks associated with the manufacturing, quality control, branding, and customer experience of these products that could harm our business, financial condition or result of operations.***

By planning to rely on third-party manufacturers to produce the Immersed Visor, our success relies on the manufacturing capabilities, quality, and reliability of third-party manufacturers. Any disruption in the manufacturing process, quality issues, or failure to meet production deadlines could lead to supply shortages, delays, and potential revenue loss. We introduce risks that could impact our product availability. Ensuring consistent quality and performance of the manufactured hardware requires stringent quality control measures. Failure to maintain quality standards can lead to product defects, customer dissatisfaction, and potential legal claims.

In addition, the quality and reliability of our products directly impact our brand reputation. Poor- quality products or product defects could tarnish our brand image and erode customer trust. The company may face risks related to intellectual property infringement or counterfeiting of its own-brand hardware by third parties. Legal disputes, reputational damage, and lost sales could result from such activities.

Inconsistent product quality, functionality, or customer support can lead to a negative customer experience, reduced customer satisfaction, and potential loss of repeat business.

Our products must comply with relevant regulations and standards to ensure they are safe and legal for consumers to use. Non-compliance could result in fines, recalls, or legal actions. Any one of the risks associated with selling and distributing our own-brand hardware manufactured by a third party could harm our business, financial condition or result of operations.

***Some of our facilities are located in areas susceptible to wildfires and other severe weather events. An earthquake, wildfire or other natural disaster or resource shortage, including public safety power shut-offs that have occurred and will continue to occur in Texas or other states, could disrupt and harm our operations.***

Our headquarters and largest facility is located in Austin, Texas. The occurrence of a natural disaster such as an earthquake, drought, flood, fire, localized extended outages of critical utilities or transportation systems, or any critical resource shortages could cause a significant interruption in our business, damage or destroy our facilities, or cause us to incur significant costs, any of which could harm our business, financial condition, and results of operations. Any insurance we maintain against such risks may not be adequate to cover losses in any particular case.

***If we fail to retain current subscribers or add new subscribers, our business would be seriously harmed.***

We had over 1.3 million free and paid subscribers as of December 31, 2024. Our future revenue growth will depend in significant part on our ability to retain our existing customers and increase the number of our subscribers. Spatial data is an emerging market, and businesses and consumers may not adopt the use of spatial computing or our platform on a widespread basis or on the timelines we anticipate. It is possible that our paid subscriber growth rate could decline over time if we achieve higher market penetration rates. If current and potential subscribers do not perceive our platform and products as useful, we may not be able to attract new subscribers or retain existing subscribers.

There are many factors that could negatively affect subscriber retention and growth, including if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· our competitors develop superior offerings or attempt to mimic our products, which could harm our subscriber engagement and growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· we fail to introduce new products and services or those we introduce are poorly received;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· we are unable to continue to develop products that work with a variety of mobile operating systems, networks, smartphones and computers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· there are changes in subscriber sentiment about the quality or usefulness of our existing products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· there are concerns about the privacy implications, safety, or security of our platform or products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· there are changes in our platform or products that are mandated by legislation, regulatory authorities or litigation, including settlements or consent decrees that adversely affect the subscriber's experience;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· technical or other problems frustrate subscribers' experiences with our platform or products, particularly if those problems prevent us from delivering our products in a fast and reliable manner; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· we fail to provide adequate service to subscribers.

Decreases to our subscriber retention or growth could seriously harm our business and results of operation.

***Computer malware, viruses, ransomware, hacking, phishing attacks and other network disruptions could result in security and privacy breaches and interruption in service, which would harm our business.***

Computer malware, viruses, physical or electronic break-ins and similar disruptions could lead to interruption and delays in our services and operations and loss, misuse or theft of data. Computer malware, viruses, ransomware, hacking and phishing attacks against online networks have become more prevalent and may occur on our systems in the future. Any successful attempts by cyber attackers to disrupt our services or systems could result in mandated user notifications, litigation, government investigations, significant fines and expenditures; divert management's attention from operations; deter people from using our platform; damage our brand and reputation; and materially adversely affect our business and results of operations.

Insurance may not be sufficient to cover significant expenses and losses related to cyber-attacks. Efforts to prevent cyber attackers from entering computer systems are expensive to implement, and we may not be able to avoid attacks that arise through computer systems of our third-party vendors. Though it is difficult to determine what, if any, harm may directly result from any specific interruption or attack, any failure to maintain performance, reliability, security and availability of systems and technical infrastructure may, in addition to other losses, harm our reputation, brand and ability to attract subscribers.

We have not previously experienced, but may in the future experience, service disruptions, outages and other performance problems due to a variety of factors, including infrastructure changes, third-party service providers, human or software errors and capacity constraints. If our services are unavailable when subscribers attempt to access them, they may seek other services, which could reduce demand for our solutions from target subscribers.

In the event of a disaster or catastrophe, we would seek to recover a local version of our code base and push it back up to another repository. It may be difficult or impossible to perform these 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.

***While we to date have not made material acquisitions, should we pursue acquisitions in the future, we would be subject to risks associated with acquisitions.***

We may acquire additional assets, products, technologies or businesses that are complementary to our existing business. The process of identifying and consummating acquisitions and the subsequent integration of new assets and businesses into our existing business would require attention from management and could result in a diversion of resources from our existing business, which in turn could have an adverse effect on our operations. Acquired assets or businesses may not generate the expected financial results.

Acquisitions could also result in significant cash expenditures, potentially dilutive issuances of equity securities, goodwill impairment charges, amortization expenses for other intangible assets and exposure to potential unknown liabilities of acquired businesses. To date, we have no experience with material acquisitions and the integration of acquired assets, businesses and personnel. Failure to successfully identify, complete, manage and integrate acquisitions could materially and adversely affect our business, financial condition and results of operations.

***Our products are highly technical and may contain undetected software bugs or hardware errors, which could manifest in ways that could seriously harm our reputation and our business.***

Our products and services are highly technical and complex. Our platform and any products we may introduce in the future may contain undetected software bugs, hardware errors, and other vulnerabilities. These bugs and errors can manifest in any number of ways in our products and services, including through diminished performance, security vulnerabilities, malfunctions, or even permanently disabled products. We have a practice of rapidly updating our products and some errors in our products may be discovered only after a product has been shipped and used by customers. Any errors, bugs or vulnerabilities discovered in our code after release could damage our reputation, drive away customers, lower revenue, and expose us to damages claims, any of which could seriously harm our business.

We could also face claims for product liability, tort, or breach of warranty. In addition, our contracts with subscribers contain provisions relating to warranty disclaimers and liability limitations, which may not be upheld. Defending a lawsuit, regardless of its merit, is costly and may divert management's attention and seriously harm our reputation and business. In addition, if our liability insurance coverage proves inadequate or future coverage is unavailable on acceptable terms or at all, our business could be seriously harmed.

***Our platform facilitates user interactions within a virtual environment, creating opportunities for collaboration, communication, and networking. While we strive to foster a positive and inclusive community, there are inherent risks associated with user behavior, including potential harassment, abuse, or inappropriate conduct.***

As such, we acknowledge the following risks related to user interaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Harassment and Inappropriate Conduct: Users may engage in harassment, cyberbullying, or other forms of inappropriate behavior while interacting within the virtual environment. Such actions can lead to negative experiences, emotional distress, and harm to affected users. Instances of harassment could tarnish our reputation and discourage user adoption, leading to potential financial and operational consequences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Privacy Violations: Within a virtual environment, users may inadvertently or intentionally share sensitive personal information or violate others' privacy rights. Failure to address privacy concerns adequately could lead to legal and regulatory issues, impacting our business operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· User Compliance: Despite implementing guidelines and community standards, some users may disregard our policies on appropriate behavior, leading to continued misconduct. This non-compliance could lead to a hostile virtual environment and potential consequences for our platform's reputation and user retention.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Content Moderation Challenges: As our platform enables user-generated content, we may face difficulties in effectively moderating and reviewing all interactions for potential violations. Inadequate content moderation may expose users to harmful behavior, negatively impacting our platform's user experience and brand perception.

***We have identified a significant deficiency in our design and implementation of internal controls to formalize roles and review responsibilities. If unable to remediate this significant deficiency or if management identifies additional deficiencies in the future or otherwise fail to maintain effective internal controls, we may not be able to accurately or timely report its financial position or results of operations, which may adversely affect our business and stock price or cause our access to the capital markets to be impaired.***

In connection with the preparation of our financial statements as of and for the years ended December 31, 2024 and 2023, we identified the below significant deficiency. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the Company's financial statements will not be prevented, or detected and corrected, on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the following deficiency in internal control to be a significant deficiency:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We did not design and implement controls to formalize roles and review responsibilities to align the team's skills and experience, including segregation of duties considerations.

Additionally, this significant deficiency could result in a misstatement of one or more account balances or disclosures that would result in a material misstatement to our annual or interim financial statements that would not be prevented or detected. Ineffective design and implementation controls to formalize roles and review responsibilities could expose us to an increased risk of financial reporting fraud and the misappropriation of assets.

Our failure to implement and maintain effective internal controls to formalize roles and review responsibilities could result in errors in our financial statements that could result in a restatement of our financial statements, and could cause us to fail to meet our reporting obligations, any of which could diminish investor confidence in us and cause a decline in the price of our Common Stock. Failure could also subject us to potential regulatory investigations and civil or criminal sanctions.

We intend to implement measures to remediate this significant deficiency, including designing and implementing controls to formalize roles and review responsibilities to align the team's skills and experience, including segregation of duties. The primary costs associated with such measures are corresponding recruiting and additional salary and consulting costs, which are difficult to estimate at this time but which may be significant. These additional resources and procedures are intended to enable us to formalize our internal control procedures and documentation and to establish more robust processes to support our internal control over financial reporting, including clearly defined roles and responsibilities and appropriate segregation of duties.

The significant deficiency will not be considered remediated until our remediation plan has been fully implemented, the applicable controls operate for a sufficient period of time, and we have concluded, through testing, that the newly implemented and enhanced controls are operating effectively. We currently expect that our remediation plan will be implemented upon the closing of this Offering, following which we will continue to test such controls over time. We cannot predict the success of such efforts or the outcome of our assessment of the remediation efforts. Our efforts may not remediate this significant deficiency in our design and implementation of internal controls to formalize roles and review responsibilities, or additional deficiencies may be identified in the future.

***We will incur additional expenses and administrative costs upon the consummation of this Offering, which could have an adverse effect on our business, financial condition and results of operations.***

Upon the consummation of this Offering, we will be required to publicly report on an ongoing basis under the reporting rules set forth in Regulation A+ for Tier 2 issuers. The ongoing reporting requirements under Regulation A+ are more relaxed than for public companies reporting under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The differences include, but are not limited to, being required to file only annual and semi-annual reports, rather than annual and quarterly reports. Annual reports are due within 120 calendar days after the end of the issuer's fiscal year, and semi-annual reports are due within 90 calendar days after the end of the first six months of the issuer's fiscal year. The additional reporting and other obligations imposed by these rules and regulations will increase legal and financial compliance costs and the costs of related legal, accounting and administrative activities.

***Operating system platform providers or application stores may change terms of service, policies or technical requirements to require us or our customers to change data collection and privacy practices, business models, operations, practices, advertising activities or application content, which could adversely impact our business.***

We and our customers are subject to the standard policies and terms of service of the operating system platforms on which we create, run and monetize applications and content, as well as policies and terms of service of the various application stores that make applications and content available to end users. These policies and terms of service govern the promotion, distribution, content, technical requirements, and operation generally of applications and content on such platforms and stores. Each of these platforms and stores has broad discretion to change and interpret its terms of service and policies with respect to us, our customers and other creators, and those changes may be unfavorable to us or our customers' use of our platform. An operating system platform or application store may also change its fee structure, add fees associated with access to and use of its platform, alter how customers are able to advertise on their platform, change how the personal or other information of its users is made available to application developers on their platform, limit the use of personal information for advertising purposes or restrict how end users can share information on their platform or across other platforms.

In particular, operating system platform providers or application stores such as Apple or Google may change their technical requirements or policies in a manner that adversely impacts the way in which we or our customers offer solutions or collect, use, and share data from end-user devices. Restrictions on our ability to collect and use data as desired could negatively impact our resource planning and feature development planning for our software. Actions by operating system platform providers or application stores such as Apple or Google may affect the manner in which we or our customers offer solutions or collect, use, and share data from end-user devices. For example, Apple has recently implemented a requirement for applications using its mobile operating system, iOS, to affirmatively (on an opt-in basis) obtain an end user's permission to "track them across apps or websites owned by other companies" or access their device's advertising identifier for advertising and advertising measurement purposes, as well as other restrictions. The long-term impact of these and other privacy and regulatory changes remains uncertain. In addition, if customers have applications removed from these third-party platforms because of a change in platform guidelines that impact our code or practices, we could be exposed to legal risk and lose customers. In addition, these platforms could change their business models and could, for example, increase application store fees to our customers, which could have an adverse impact on our business.

If we or our customers were to violate, or an operating system platform provider or application store believes that we or our customers have violated, its terms of service or policies, that operating system platform provider or application store could limit or discontinue our or our customers' access to its platform or store. In some cases, these requirements may not be clear, and our interpretation of the requirements may not align with the interpretation of the operating system platform provider or application store, which could lead to inconsistent enforcement of these terms of service or policies against us or our customers and could also result in the operating system platform provider or application store limiting or discontinuing access to its platform or store. An operating system platform provider or application store could also limit or discontinue our access to its platform or store if it establishes more favorable relationships with one or more of our competitors or it determines that it is in their business interests to do so. Any limitation on or discontinuation of our or our customers' access to any third-party platform or application store could adversely affect our business, financial condition, or results of operations.

***We may not be able to successfully manage our growth, and if we are not able to grow efficiently, our business, financial condition, and results of operations could be harmed.***

The growth and expansion of our business places a continuous significant strain on our management, operational and financial resources. As usage of our platform grows, we will need to devote additional resources to improving its capabilities, features and functionality. In addition, we will need to appropriately scale our internal business, IT, and financial, operating and administrative systems to serve our growing customer base, and continue to manage headcount, capital and operating and reporting processes in an efficient manner. Any failure of or delay in these efforts could result in impaired performance and reduced customer satisfaction, resulting in decreased sales to new customers or lower dollar-based net expansion rates, which would hurt our revenue growth and our reputation. Further, any failure in optimizing the costs associated with our third-party cloud services as we scale could negatively impact our gross margins. Even if we are successful in our expansion efforts, they will be expensive and complex, and require the dedication of significant management time and attention. We may also suffer inefficiencies or service disruptions as a result of our efforts to scale our internal infrastructure. We cannot be sure that the expansion of and improvements to our internal infrastructure will be effectively implemented on a timely basis, if at all, and such failures could harm our business, financial condition and results of operations.

***We are dependent on the success of our customers in the enterprise market. Adverse events relating to our customers could have a negative impact on our business.***

Our enterprise customers use our software platform to enable their staff to work and collaborate in virtual offices. As a result, our success depends in part on the ability of our customers to integrate their business with our solutions. If our customers' marketing efforts are unsuccessful or if our customers experience a decrease in demand for their business, sales of our platform could be reduced. The enterprise market is characterized by intense competition, rapid technological change, increased focus by regulators, and economic uncertainty and, as such, there is no guarantee that any of our customers' AR/VR experiences will gain any meaningful traction with end users which is ultimately required. If our customers fail to use our platform in their business, and we are not able to maintain a diversified portfolio of customers, our results of operations may be adversely affected.

***Third parties with whom we do business may be unable to honor their obligations to us or their actions may put us at risk.***

We rely on third parties, including our strategic partners, for various aspects of our business, including deep technology collaborations, development and manufacturing outsourcing, co-marketing, advertising partners, development services agreements and revenue share arrangements. Their actions may put our business, reputation and brand at risk. In many cases, third parties may be given access to sensitive and proprietary information or personal information in order to provide services and support to our teams or customers, and they may misappropriate and engage in unauthorized use of our information, technology or customers' data.

In addition, the failure of these third parties to provide adequate services and technologies, or the failure of the third parties to adequately maintain or update their services and technologies, could result in a disruption to our business operations. Further, disruptions in the mobile application industry, financial markets, economic downturns, poor business decisions, or reputational harm may adversely affect our partners and may increase their propensity to engage in fraud or otherwise illegal activity which could harm our business reputation, and they may not be able to continue honoring their obligations to us, or we may cease our arrangements with them. Alternative arrangements and services may not be available to us on commercially reasonable terms or at all and we may experience business interruptions upon a transition to an alternative partner or vendor. If we lose one or more business relationships, or experience a degradation of services, our business could be harmed and our financial results could be adversely affected.

***We plan to use third party partners to sell, market, and deploy our solutions to a variety of customers, and our failure to effectively develop, manage, and maintain our indirect sales channels would harm our business.***

We plan to use third party partners to sell, market, and deploy our platform to a variety of customers. Loss of or reduction in sales through these third parties could reduce our revenue. Identifying and retaining strategic partners, training them in our technology and solution offerings, and negotiating and documenting relationships with them, requires significant time and resources. We cannot assure you that we will be able to maintain our relationships with our strategic partners on favorable terms or at all.

Third party partners may cease marketing our software platform and the Immersed Visor with limited or no notice and without penalty. Further, a substantial number of our agreements with third parties are non-exclusive such that they may offer customers the products of several different companies, including products that compete with ours. Third party partners may favor our competitors' products or services over ours, including due to incentives that our competitors provide to them. If our third party partners do not effectively sell, market or deploy our platform and Immersed Visor, choose to promote our competitors' products, or otherwise fail to meet the needs of our customers, our ability to sell our platform and Immersed Visor could be adversely affected.

***Our direct sales force will be targeting larger customers, and sales to these customers involve risks that may not be present or that are present to a lesser extent with respect to sales to smaller customers or to individual consumers.***

One of the factors affecting our growth and financial performance is the adoption of our platform and solutions by enterprise customers over legacy and proprietary technologies. To increase adoption within larger enterprise customers and to expand into new industries, where potential customers are typically larger organizations, we will utilize a direct sales organization. We have relatively limited experience selling our platform and solutions in industries outside of enterprise. To increase sales of our platform and solutions to other industries, we are expanding our sales organization with personnel who have experience in enterprise software sales in the specific industries on which we are focusing. If we do not effectively expand our direct sales capabilities to address these industries effectively and develop effective sales and marketing strategies for those industries, or if we focus our efforts on non-higher education industries that end up being slow adopters of our platform and solutions, our ability to increase sales of our platform and solutions to industries and for use cases outside of higher education will be adversely affected.

Sales to larger customers involve risks that may not be present or that are present to a lesser extent than with sales to smaller customers, such as longer sales cycles, more complex customer requirements, substantial upfront sales costs, and less predictability in completing some of our sales. For example, larger customers may require considerable time to evaluate and test our platform and those of our competitors prior to making a purchase decision, or may have specific compliance and product requirements we may not meet. A number of factors influence the length and variability of our sales cycle, including the need to educate potential customers about the uses and benefits of our platform, the discretionary nature of purchasing and budget cycles, and the competitive nature of evaluation and purchasing approval processes. As a result, the length of our sales cycle, from identification of the opportunity to deal closure, may vary significantly from customer to customer, with sales to larger customers typically taking longer to complete. Moreover, larger customers are likely to begin to deploy our platform on a limited basis, but nevertheless demand configuration, integration services and pricing negotiations, which increase our upfront investment in the sales effort with no guarantee that these customers will deploy our platform widely enough across their organization to justify our substantial upfront investment. If we fail to increase adoption of our platform and solutions by larger enterprise customers, our growth could be impaired.

***We intend to provide service-level agreement commitments related to our platform. If we fail to meet these contractual commitments, we could be obligated to provide refunds of prepaid amounts or other credits, which would lower our revenue and harm our business, financial condition and results of operations.***

Our software platform will include service-level agreement commitments. If we are unable to meet the stated service-level commitments, including failure to meet the uptime and response time requirements under our customer agreements, we could face terminations with refunds of prepaid amounts or other credits, which could significantly affect both our current and future revenue. Any service-level failures could also damage our reputation, which could also adversely affect our business, financial condition and results of operations.

***Indemnity provisions in various agreements to which we are a party potentially expose us to substantial liability for infringement, misappropriation or other violation of intellectual property rights, data protection and other losses.***

Our agreements with our customers and other third parties may include indemnification provisions under which we agree to indemnify or otherwise be liable to them for losses suffered or incurred as a result of claims of infringement, misappropriation or other violation of intellectual property rights, data protection or other data rights, damages caused by us to property or persons, or other liabilities relating to or arising from our software, services, platform, our acts or omissions under such agreements or other contractual obligations. Some of our historical indemnity agreements, and renewals of such agreements, provide for uncapped liability and some indemnity provisions survive termination or expiration of the applicable agreement. Large indemnity payments would harm our business, financial condition and results of operations. Although we attempt to contractually limit our liability with respect to such indemnity obligations in our more recent customer agreements, in some cases, the liability is not limited given other strategic facets of the relationship and we may still incur substantial liability related to such agreements, and we may be required to cease providing certain functions or features on our platform as a result of any such claims. Even if we succeed in contractually limiting our liability, such limitations may not always be enforceable. Any dispute with a customer or other third party with respect to such obligations could have adverse effects on our relationship with such customer or other third party and other existing or prospective customers, reduce demand for our platform and adversely affect our business, financial conditions and results of operations.

In addition, although we carry general liability insurance, our insurance may not be adequate to indemnify us for all liability that may be imposed on us or otherwise protect us from liabilities or damages with respect to claims, including clams on such matters as alleged compromises of customer data, which may be substantial. Any such coverage may not continue to be available to us on acceptable terms or at all.

***If we fail to offer high-quality support, our ability to retain and attract customers could suffer.***

Our customers rely on our sales, customer success and customer support personnel and tools to resolve issues and realize the full benefits that our platform provides. High-quality support is important for the retention of our existing customers and expanding their use of our platform. The importance of these functions will increase as we expand our business, pursue new customers and seek to expand the use of our platform and solutions by enterprise customers in new industries outside of higher education. If we do not help our customers quickly resolve issues and provide effective ongoing support, our ability to maintain and expand our solution to existing and new customers could suffer, and our reputation with existing or potential customers could suffer.

***Acquisitions, strategic investments, partnerships, and alliances could be difficult to identify, pose integration challenges, divert the attention of management, disrupt our business, dilute stockholder value, and adversely affect our business, financial condition and results of operations.***

We may in the future seek to acquire or invest in businesses, joint ventures, platform or technologies that we believe could complement or expand our platform, enhance our technical capabilities, or otherwise offer growth opportunities. Although our revenue growth to-date has all been organic, we may enter into acquisitions in the future. Any such acquisition or investment may divert the attention of management and cause us to incur various expenses in identifying, investigating and pursuing suitable opportunities, whether or not the transactions are completed, and may result in unforeseen operating difficulties and expenditures. In particular, we may encounter difficulties assimilating or integrating the businesses, technologies, data, platform, personnel or operations of any acquired companies, particularly if the key personnel of an acquired company choose not to work for us or face cultural challenges integrating with our company, or if their software or technology is not easily adapted to work with our platform, or we have difficulty retaining the customers of any acquired business due to changes in ownership, management, or otherwise.

We could also face risks related to liability for activities of the acquired company before the acquisition, including intellectual property infringement claims, violations of laws, commercial disputes, tax liabilities and other known and unknown liabilities, and litigation or other claims in connection with the acquired company, including claims from terminated employees, users, former stockholders or other third parties, and our efforts to limit such liabilities could be unsuccessful. These transactions may also disrupt our business, divert our resources, and require significant management attention that would otherwise be available for the development of our existing business. Any such transactions that we are able to complete may not result in any synergies or other benefits we had expected to achieve, which could result in impairment charges that could be substantial. In addition, we may not be able to find and identify desirable acquisition targets or business opportunities or be successful in entering into an agreement with any particular strategic partner. These transactions could also result in dilutive issuances of equity securities or the incurrence of debt, contingent liabilities, amortization expenses, incremental operating expenses, or the impairment of goodwill, any of which could adversely affect our results of operations. In addition, if the resulting business from such a transaction fails to meet our expectations, our business, financial condition and results of operations may be adversely affected or we may be exposed to unknown risks or liabilities.

***We are exposed to collection and credit risks, which could impact our operating results.***

Immersed is currently updating its subscription models and planning the best approach to monetize future enterprise customers. However, our accounts receivable will likely become subject to collection and credit risks, which could impact our operating results. We may face timing issues with our accounts payable on shorter cycles than our accounts receivable, requiring us to remit payments from our own funds, and accept the risk of bad debt. Businesses that are good credit risks at the time of sale may become bad credit risks over time. In times of economic recession, the number of our customers who default on payments owed to us will increase. Our operating results may be impacted by significant bankruptcies among customers, which could negatively impact our revenue and cash flows. We cannot assure you that our processes to monitor and mitigate these risks will be effective. If we fail to adequately assess and monitor our credit risks, we could experience longer payment cycles, increased collection costs and higher bad debt expense, and our business, operating results and financial condition could be harmed.

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

The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes appearing elsewhere in this offering statement on Form 1-A. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, as provided in the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates." The results of these estimates form the basis for making judgments about the carrying values of assets, liabilities and equity, and the amount of revenue and expenses that are not readily apparent from other sources. Significant estimates and judgments involve revenue recognition, the valuation of our stock-based compensation awards, including the determination of fair value of our common stock, accounting for business combinations and income taxes, among others.

Actual results may differ from these estimates under different assumptions or conditions and any such differences may be material. Our results of operations may be adversely affected if our assumptions change or if actual circumstances differ from those in our assumptions, which could cause our results of operations to fall below the expectations of securities analysts and investors, resulting in a decline in the market price of our common stock.

***Our current research and development efforts may not produce successful products or features that result in significant revenue, cost savings or other benefits in the near future. If we do not realize significant revenue from our research and development efforts, our business and operating results could be adversely affected.***

Our future growth depends on penetrating new markets, adapting existing products to new applications and customer requirements, and introducing new projects that achieve market acceptance. We plan to incur significant research and development costs in the future as part of our efforts to design, develop, manufacture and introduce new products and enhance existing products. Our research and development ("R&D") expense was approximately $534,760 and $4.2 million for the six months ended June 30, 2025 and for the year ended December 31, 2024, respectively, and is expected to grow substantially in the future.

Developing products and related enhancements in our field is expensive. Investments in R&D may not result in significant design improvements, marketable products or features or may result in products that are more expensive than anticipated. We may not achieve the cost savings or the anticipated performance improvements expected, and we may take longer to generate revenue from products in development, or generate less revenue than expected.

Our management believes that we must continue to dedicate a significant amount of resources to research and development efforts to maintain a competitive position. However, we may not receive significant revenue from these investments in the near future, or longer-term these investments may not achieve market acceptance, create additional revenue or become profitable, either of which could adversely affect our business and operating results.

**Risks Related to our Intellectual Property**

***Our business may be adversely affected if we are unable to protect our spatial computing technology and intellectual property from unauthorized use by third parties.***

We currently do not own any patents or registered trademarks. An inherent risk for companies that develop rapidly evolving technology is that the technology quickly becomes outdated and stale, meaning that it is often not worth the time and effort to apply for a patent for it. However, despite this challenge, our future success will depend, at least in part, on our ability to protect our core spatial computing technology and intellectual property. To accomplish this, when possible, we plan to rely on a combination of patents, trade secrets, employee and third-party nondisclosure agreements, copyright, trademarks, intellectual property licenses and other contractual rights to retain ownership of, and protect, our technology. Such agreements may not effectively prevent unauthorized use or disclosure of our confidential information, intellectual property or technology and may not provide an adequate remedy in the event of unauthorized use or disclosure of our confidential information, intellectual property or technology, and we may fail to consistently obtain, police and enforce such agreements. Failure to adequately protect our technology and intellectual property could result in competitors offering similar products, potentially resulting in the loss of some of our competitive advantage and a decrease in revenue, which would adversely affect our business prospects, financial condition and operating results.

***Any failure to obtain, maintain, protect or enforce our intellectual property and proprietary rights could impair our ability to protect our proprietary technology and our brand.***

Our success depends to a significant degree on our ability to obtain, maintain, protect and enforce our intellectual property rights, including our proprietary technology, know-how and our brand. We rely on a combination of trademarks, trade secret laws, patents, copyrights, service marks, contractual restrictions and other intellectual property laws and confidentiality procedures to establish and protect our proprietary rights. However, the steps we take to obtain, maintain, protect and enforce our intellectual property rights may be inadequate. We will not be able to protect our intellectual property rights if we are unable to enforce our rights or if we do not detect unauthorized use of our intellectual property rights.

If we fail to protect our intellectual property rights adequately, or fail to continuously innovate and advance our technology, our competitors could gain access to our proprietary technology and develop and commercialize substantially identical products, services or technologies. In addition, defending our intellectual property rights might entail significant expense. Any patents, trademarks or other intellectual property rights that we have or may obtain may be challenged or circumvented by others or invalidated or held unenforceable through administrative processes, including re-examination, inter partes review, interference and derivation proceedings and equivalent proceedings in foreign jurisdictions, such as opposition proceedings, or litigation.

In addition, despite our pending patent applications, we cannot assure you that our patent applications will result in issued patents. Even if we continue to seek patent protection in the future, we may be unable to obtain or maintain patent protection for our technology. In addition, any patents issued from pending or future patent applications or licensed to us in the future may not provide us with competitive advantages, or may be successfully challenged by third parties.

Furthermore, legal standards relating to the validity, enforceability and scope of protection of intellectual property rights are uncertain. Despite our precautions, it may be possible for unauthorized third parties to copy our solutions and use information that we regard as proprietary to create products that compete with ours. Patent, trademark, copyright and trade secret protection may not be available to us in every country in which our platform and solutions are available. The value of our intellectual property could diminish if others assert rights in or ownership of our trademarks and other intellectual property rights, or trademarks that are similar to our trademarks. We may be unable to successfully resolve these types of conflicts to our satisfaction. In some cases, litigation or other actions may be necessary to protect or enforce our trademarks and other intellectual property rights.

Furthermore, third parties may assert intellectual property claims against us, and we may be subject to liability, required to enter into costly license agreements, required to rebrand our platform or prevented from selling our platform and solutions if third parties successfully oppose or challenge our trademarks or successfully claim that we or our infringe, misappropriate or otherwise violate their trademarks or other intellectual property rights. We may be subject to claims that we and our employees may have inadvertently or otherwise used or disclosed trade secrets or other proprietary information of former employers or competitors. Litigation may be necessary to defend against these claims. We may be subject to unexpected claims of infringement of third party intellectual property rights, either for intellectual property rights of which we are not aware, or for which we believe are invalid or narrower in scope than the accusing party. Even if we are successful in defending against these claims, litigation could result in substantial costs and be a distraction to management. If we fail in defending such claims, in addition to paying money claims, we may lose valuable intellectual property rights or personnel or be enjoined from selling certain products or providing certain services. A loss of key research personnel or their work product could hamper or prevent our ability to commercialize certain products, which could severely harm our business.

In addition, the laws of some foreign countries may not be as protective of intellectual property rights as those in the United States, and mechanisms for enforcement of intellectual property rights may be inadequate. As we expand our global activities, our exposure to unauthorized copying and use of our platform and proprietary information will likely increase. Moreover, policing unauthorized use of our technologies, trade secrets and intellectual property may be difficult, expensive and time-consuming, particularly in foreign countries where the laws may not be as protective of intellectual property rights as those in the United States and where mechanisms for enforcement of intellectual property rights may be weak. Accordingly, despite our efforts, we may be unable to prevent third parties from infringing upon, misappropriating or otherwise violating our intellectual property rights.

We enter into confidentiality and invention assignment agreements with our employees and independent contractors and enter into confidentiality agreements with other third parties, including suppliers and other partners.

However, we cannot guarantee that we have entered into such agreements with each party that has or may have had access to our proprietary information, know-how and trade secrets or that has or may have developed intellectual property in connection with their engagement with us. Moreover, we cannot assure you that these agreements will be effective in controlling access to, distribution, use, misuse, misappropriation, reverse engineering or disclosure of our proprietary information, know-how and trade secrets. Further, these agreements may not prevent our competitors from independently developing technologies that are substantially equivalent or superior to our platform. These agreements may be breached, and we may not have adequate remedies for any such breach.

In order to protect our intellectual property rights, we may be required to spend significant resources to monitor and protect our intellectual property rights. Litigation may be necessary in the future to enforce our intellectual property rights, such as rights under our software licenses, and to protect our trade secrets.

Litigation brought to protect and enforce our intellectual property rights could be costly, time-consuming and distracting to management, and could result in the impairment or loss of portions of our intellectual property.

Further, our efforts to enforce our intellectual property rights may be met with defenses, counterclaims, and countersuits attacking the validity and enforceability of our intellectual property rights, and if such defenses, counterclaims or countersuits are successful, we could lose valuable intellectual property rights. Our inability to enforce our unique licensing structure, including financial eligibility tiers, and our inability to protect our proprietary technology against unauthorized copying or use, as well as any costly litigation or diversion of our management's attention and resources, could delay further sales or the implementation of our solutions, impair the functionality of our platform, delay introductions of new solutions, result in our substituting inferior or more costly technologies into our platform, or injure our reputation.

***Our ability to acquire and maintain licenses to intellectual property may affect our revenue and profitability. These licenses may become more expensive and increase our costs.***

Proprietary licenses typically limit our use of intellectual property to specific uses and for specific time periods. If we are unable to maintain these licenses or obtain additional licenses on reasonable economic terms or with significant commercial value, our revenue and profitability may be adversely impacted. These licenses may become more expensive and increase the advances, guarantees and royalties that we may pay to the licensor, which could significantly increase our costs and adversely affect our profitability.

***We face potential risks associated with prior art. Prior art refers to existing technologies, patents, publications, or other publicly available information that may be relevant to our products or technology.***

These risks include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Patent Infringement: Our technology and products may unknowingly infringe upon existing patents or intellectual property rights of other companies or individuals. Identifying and addressing potential patent infringement risks is crucial to avoid costly legal disputes and potential damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Intellectual Property Challenges: We must be vigilant in conducting thorough searches for prior art to ensure that our products and technology are unique and do not infringe on existing intellectual property rights. Failure to identify prior art could lead to challenges from competitors or other stakeholders, negatively impacting our ability to protect our own intellectual property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Product Development Delays: Discovery of prior art that conflicts with our technology may require us to modify our product design or technology, leading to delays in product development and launch.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Legal Liability: If our products or technology are found to infringe on existing patents or intellectual property rights, we may face legal liabilities, including injunctions, licensing fees, or damage claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Loss of Market Advantage: Our competitors may hold patents or intellectual property rights that could give them a competitive advantage. Failure to identify and address potential infringement risks could limit our ability to compete effectively in the market.

***We are and may in the future become subject to intellectual property disputes, which are costly and may subject us to significant liability and increased costs of doing business.***

Technology companies are frequently subject to litigation based on allegations of infringement or other violations of intellectual property rights. From time to time, the holders of intellectual property rights may assert their rights and urge us to take licenses, and/or bring suits alleging infringement or misappropriation of such rights.

There can be no assurance that we will be able to mitigate the risk of potential suits or other legal demands by such third parties. Although we may have meritorious defenses, there can be no assurance that we will be successful in defending against these allegations or in reaching business resolutions that are satisfactory to us. Defending any future claims can be expensive and impose a significant burden on management and employees, and we may receive unfavorable preliminary, interim, or final rulings in the course of litigation, which could seriously harm our business.

We may in the future become subject to additional intellectual property disputes, and may become subject to liability as a result of these disputes. Our success depends, in part, on our ability to develop and commercialize our solutions without infringing, misappropriating, or otherwise violating the intellectual property rights of third parties. However, there is no assurance that our technologies, products, services, or platform will not be found to infringe, misappropriate or otherwise violate the intellectual property rights of third parties. Lawsuits are time-consuming and expensive to resolve and they divert management's time and attention. Companies in the internet, technology, and other industries own large numbers of patents, copyrights, trademarks, domain names and trade secrets and frequently enter into litigation based on allegations of infringement, misappropriation or other violations of intellectual property or other rights. As we face increasing competition and gain a higher profile, the possibility of intellectual property rights and other claims against us grows. Our technologies may not be able to withstand any third-party claims against their use.

In addition, many 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. Any litigation may also involve patent holding companies or other adverse patent owners that have no relevant product revenue, and therefore, our patents and patent applications may provide little or no deterrence as we would not be able to assert them against such entities or individuals.

With respect to any intellectual property rights claim, we may have to seek a license to continue operations that are found or alleged to violate such rights. Such licenses may not be available, or if available, may not be available on favorable or commercially reasonable terms and may significantly increase our operating expenses. Some licenses may be non-exclusive, and therefore our competitors may have access to the same technology licensed to us. If a third party is able to obtain an injunction preventing us from accessing such third-party intellectual property rights, or if we cannot license or develop alternative technology for any infringing aspect of our business, we would be forced to limit or stop sales of our solutions or cease business activities related to such intellectual property.

To the extent that our subscribers and business partners become the subject of allegations or claims regarding the infringement or misappropriation of intellectual property rights related to our products and services, we may be required to indemnify such subscribers and business partners. Even if we are not a party to any litigation between a subscriber or business partner and a third party relating to infringement by our products, an adverse outcome in any such litigation could make it more difficult for us to defend our products against intellectual property infringement claims in subsequent litigation in which we are a named party.

In addition, we may need to settle litigation and disputes on terms that are unfavorable to us. Although we carry general liability insurance and patent infringement insurance, our insurance may not cover potential claims of this type or may not be adequate to indemnify us for all liability that may be imposed. We cannot predict the outcome of lawsuits and cannot ensure that the results of any such actions will not have an adverse effect on our business, financial condition or results of operations. Any intellectual property claim asserted against us, or for which we are required to provide indemnification, may require us to do one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· cease selling or using products that incorporate the intellectual property rights that we allegedly infringe, misappropriate or violate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· make substantial payments for legal fees, settlement payments, or other costs or damages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· obtain a license, which may not be available on reasonable terms or at all, to sell or use the relevant technology; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· redesign or rebrand the allegedly infringing products to avoid infringement, misappropriation, or violation, which could be costly, time-consuming or impossible.

Even if the claims do not result in litigation or are resolved in our favor, these claims, and the time and resources necessary to resolve them, could divert the resources of our management and harm our business and operating results. Moreover, there could be public announcements of the results of hearings, motions or other interim proceedings or developments and if securities analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the price of our common stock. We expect that the occurrence of infringement claims is likely to grow as the market for our solutions grow. Accordingly, our exposure to damages resulting from infringement claims could increase, and this could further exhaust our financial and management resources.

**Risks Related to Immersed's Management, Brand, and Culture**

***We rely on the performance of highly skilled personnel, including our management and other key employees, and the loss of one or more of such personnel, or of a significant number of our employees, or the inability to attract and retain executives and employees we need to support our operations and growth, could harm our business.***

Our success and future growth depend upon the continued services of our management team and other key employees. In particular, our Chief Executive Officer, is critical to our overall management, as well as the continued development of our platform, our culture and our strategic direction. From time to time, there may be changes in our management team resulting from the hiring or departure of executives and key employees, which could disrupt our business. We also are dependent on the continued service of our existing software engineers because of the complexity of our solutions. Our senior management and key employees are employed on an at-will basis. We may terminate any employee's employment at any time, with or without cause, and any employee may resign at any time, with or without cause. The loss of one or more members of our senior management, especially our VP of XR Development and our primary OS Engineer, or other key employees could harm our business, and we may not be able to find adequate replacements. We cannot ensure that we will be able to retain the services of any members of our senior management or key employees.

In addition, to execute our growth plan, we must attract and retain highly qualified personnel. We have had difficulty quickly filling certain open positions in the past, and we expect to have significant future hiring needs. Competition is intense, particularly in Austin, Texas, for engineers experienced in designing and developing cloud-based platform products, data scientists with experience in machine learning and artificial intelligence and experienced sales professionals. In order to continue to access top talent, we will likely continue to grow our footprint of office locations, which may add to the complexity and costs of our business operations. From time to time, we have experienced, and we expect to continue to experience, difficulty in hiring and retaining employees with appropriate qualifications. Many of the companies with which we compete for experienced personnel have greater resources than we have. If we hire employees from competitors or other companies, their former employers may attempt to assert that these employees or we have breached their legal obligations, resulting in a diversion of our time and resources. In addition, prospective and existing employees often consider the value of the equity awards they receive in connection with their employment. If the perceived value of our equity awards declines, experiences significant volatility or increases such that prospective employees believe there is limited upside to the value of our equity awards, it may adversely affect our ability to recruit and retain key employees. In addition, we may experience employee turnover as a result of the ongoing "great resignation" occurring throughout the U.S. economy.

New hires require training and take time before they achieve full productivity. New employees may not become as productive as we expect, and we may be unable to hire or retain sufficient numbers of qualified individuals. If we fail to attract new personnel or fail to retain and motivate our current personnel, our business and future growth prospects would be harmed.

***If we are unable to attract and hire qualified management, technical, engineering and sales personnel, our ability to compete and successfully grow our business would be adversely affected.***

Our success depends, in part, on our continuing ability to identify, hire, train and retain highly qualified personnel. Any inability to do so effectively would adversely affect our business. Competition for employees is intense and the ability to attract, hire, train and retain them depends on our ability to provide competitive compensation. We may not be able to attract, hire or retain qualified personnel in the future, and any failure to do so would adversely affect our business, financial condition and financial results.

***Our culture emphasizes innovation, and if we cannot maintain this culture as we grow, our business could be harmed.***

We have a culture that encourages employees to develop and launch new and innovative solutions, which we believe is essential to attracting customers and partners and serving the best, long-term interests of our company. As our business grows and becomes more complex, it may become more difficult to maintain this cultural emphasis. Any failure to preserve our culture could negatively affect our ability to retain and recruit personnel, which is critical to our growth, and to effectively focus on and pursue our strategies. If we fail to maintain our company culture, our business and competitive position may be harmed.

**Risks Related to Data Privacy**

***Because we store, process, and use data, some of which contains personal information, we are subject to complex and evolving federal, state and foreign laws and regulations regarding privacy, data protection, and other matters. Many of these laws and regulations are subject to change and uncertain interpretation, and could result in investigations, claims, changes to our business practices, increased cost of operations, or declines in customers or retention, any of which could seriously harm our business.***

We are subject to a variety of laws and regulations in the United States and other countries relating to user privacy, rights of publicity, data protection, content, intellectual property, distribution, electronic contracts and other communications, competition, consumer protection, taxation, and online-payment services. These laws can be particularly restrictive in countries outside the United States. Both in the United States and abroad, these laws and regulations constantly evolve and remain subject to significant change.

State and local governments and agencies in the jurisdictions in which we operate, and in which our subscribers operate or reside, have adopted or may adopt laws and regulations regarding the collection, use, storage, processing, and disclosure of information regarding consumers, which could impact our ability to offer services in certain jurisdictions. Laws and regulations relating to the collection, use, disclosure, security, and other processing of individuals' information can vary significantly from jurisdiction to jurisdiction and are particularly stringent in Europe. The costs of compliance with, and other burdens imposed by, laws, regulations, standards and other obligations relating to privacy, data protection and information security are significant. In addition, some companies, particularly larger enterprises, often will not contract with vendors that do not meet these rigorous standards. Accordingly, the failure, or perceived inability, to comply with these laws, regulations, standards, and other obligations may limit the use and adoption of our products and services, reduce overall demand, lead to regulatory investigations, litigation, and significant fines, penalties, or liabilities for actual or alleged noncompliance, or slow the pace at which we close sales transactions, any of which could harm our business. Moreover, if we or any of our employees or contractors fail or are believed to fail to adhere to appropriate practices regarding customers' data, we may damage our reputation and brand.

Additionally, existing laws, regulations, standards, and other obligations may be interpreted in new and differing manners in the future, and may be inconsistent among jurisdictions. Future laws, regulations, standards, and other obligations, and changes in the interpretation of existing laws, regulations, standards, and other obligations could result in increased regulation, increased costs of compliance and penalties for non-compliance, and limitations on data collection, use, disclosure, and transfer for us and our subscribers. Further, California adopted the California Consumer Privacy Protection Act ("CCPA") and the California State Attorney General has begun enforcement actions in connection with the CCPA.

The application and interpretation of these laws and regulations are often uncertain, particularly in the new and rapidly evolving industry in which we operate. The costs of compliance with, and other burdens imposed by, laws and regulations relating to privacy, data protection and information security that are applicable to the businesses of customers may adversely affect ability and willingness to process, handle, store, use, and transmit certain types of information, such as demographic and other personal information.

In addition to government activity, privacy advocacy groups, the technology industry and other industries have established or may establish various new, additional or different self-regulatory standards that may place additional burdens on technology companies. Customers may expect that we will meet voluntary certifications or adhere to other standards established by them or third parties. If we are unable to maintain these certifications or meet these standards, we could reduce demand for our solutions and adversely affect our business. These laws and regulations may result in investigations, claims, changes to our business practices, increased cost of operations, or declines in customer retention and growth, any of which could seriously harm our business.

***If we or our third-party service providers experience a security breach or unauthorized parties otherwise obtain access to our customers' data, our data, or our platform, our platform may be perceived as not secure, our reputation may be harmed, our business operations may be disrupted, demand for our platform may be reduced, and we may incur significant liabilities.***

Operating our business and platform involves the collection, storage and transmission of sensitive, proprietary and confidential information, including personal information of our personnel, customers and their end users, our proprietary and confidential information and the confidential information we collect from our partners, customers and creators.

The security measures we take to protect this information may be breached as a result of cyber-attacks, computer malware, software bugs and vulnerabilities, malicious code, viruses, social engineering (including spear phishing and ransomware attacks), denial-of-service attacks (such as credential stuffing attacks), supply chain attacks and vulnerabilities through our third party vendors, hacking, and other efforts by individuals or groups of hackers and sophisticated organizations, including state-sponsored organizations or nation- states. Such incidents have become more prevalent in our industry in recent years. For example, attempts by malicious actors to fraudulently induce our personnel into disclosing usernames, passwords or other information that can be used to access our systems have increased and could be successful. Ransomware attacks are becoming increasingly prevalent and severe and can lead to significant interruptions, delays, or outages in our operations, loss of data, loss of income, significant extra expenses to restore data or systems, reputational harm, and the diversion of funds. Extortion payments may alleviate the negative impact of a ransomware attack, but we may be unwilling or unable to make such payments due to, for example, applicable laws or regulations prohibiting payments. Our security measures could also be compromised by personnel, theft or errors, or be insufficient to prevent harm resulting from security vulnerabilities in software or systems on which we rely. Additionally, the COVID-19 pandemic and our remote workforce pose increased risks to our information technology assets and data. Future acquisitions could also expose us to additional cybersecurity risks and vulnerabilities from any newly acquired information technology infrastructure.

Such incidents have occurred in the past, and may occur in the future, resulting in unauthorized, unlawful or inappropriate access to, inability to access, disclosure of or loss of the sensitive, proprietary and confidential information that we handle. Investigations into potential incidents occur on a regular basis as part of our security program. Security incidents could also damage our IT systems, our ability to provide our platform and solutions, and our ability to make the financial reports and other public disclosures required under the securities laws.

We rely on third parties to provide critical services that help us deliver our solutions and operate our business. In the course of providing their services, these third parties may support or operate critical business systems for us or store or process personal information and any of the same sensitive, proprietary and confidential information that we handle. These third-party providers may not have adequate security measures and have experienced and could experience in the future security incidents that compromise the confidentiality, integrity or availability of the systems they operate for us or the information they process on our behalf. Such occurrences could adversely affect our business to the same degree as if we had experienced these occurrences directly and we may not have recourse to the responsible third parties for the resulting liability we incur.

Because there are many different cybercrime and hacking techniques and such techniques continue to evolve, we may be unable to anticipate attempted security breaches, react in a timely manner or implement adequate preventative measures. While we have developed systems and processes designed to protect the integrity, confidentiality and security of our and our customers' confidential and personal information under our control, we cannot assure you that any security measures that we or our third-party service providers have implemented will be effective against current or future security threats. A security breach or other security incident, or the perception that one has occurred, could result in a loss of customer confidence in the security of our platform and damage to our reputation and brand, reduce demand for our solutions, disrupt normal business operations, require us to incur material costs to investigate and remedy the incident and prevent recurrence, expose us to litigation, regulatory enforcement action, fines, penalties and damages and adversely affect our business, financial condition and results of operations. These risks are likely to increase as we continue to grow and process, store and transmit an increasingly large volume of data.

We have contractual and legal obligations to notify relevant stakeholders of security breaches. Most jurisdictions have enacted laws requiring companies to notify individuals, regulatory authorities and others of security breaches involving certain types of data. In addition, our agreements with certain customers and partners may require us to notify them in the event of a security breach. Such mandatory disclosures are costly, could lead to negative publicity and may cause our customers to lose confidence in the effectiveness of our security measures.

A security breach could lead to claims by our customers, their end users or other relevant parties that we have failed to comply with contractual obligations to implement specified security measures. As a result, we could be subject to legal action or our customers could end their relationships with us. We cannot assure you that the limitations of liability in our contracts would be enforceable or adequate or would otherwise protect us from liabilities or damages. Security breaches could similarly result in enforcement actions by government authorities alleging that we have violated laws requiring us to maintain reasonable security measures.

Additionally, we cannot be certain that our insurance coverage will be adequate for data security liabilities actually incurred, will cover any indemnification claims against us relating to any incident, will continue to be available to us on economically reasonable terms, or at all, or that any insurer will not deny coverage as to any future claim. The successful assertion of one or more large claims against us that exceed available insurance coverage, or the occurrence of changes in our insurance policies, including premium increases or the imposition of large deductible or co-insurance requirements, could adversely affect our reputation, business, financial condition, and results of operations.

In addition, we continue to expend significant costs to seek to protect our platform and solutions and to introduce additional security features for our customers, and we expect to continue to have to expend significant costs in the future. Any increase in these costs will adversely affect our business, financial condition, and results of operations.

***We are subject to rapidly changing and increasingly stringent laws, contractual obligations, and industry standards relating to privacy, data security, and the protection of children. The restrictions and costs imposed by these requirements, or our actual or perceived failure to comply with them, could harm our business.***

Our platform and solutions rely on our ability to process sensitive, proprietary, confidential, and regulated information, including personal information, trade secrets, intellectual property, and business information, which belongs to us or that we handle on behalf of others such as our customers. These activities are regulated by a variety of federal, state, local, and foreign privacy and data security laws and regulations, which have become increasingly stringent in recent years and continue to evolve. Any actual or perceived non-compliance could result in litigation and proceedings against us by governmental entities, customers, individuals or others; fines and civil or criminal penalties for us or company officials; obligations to cease offerings or to substantially modify our ways that make them less effective in certain jurisdictions; negative publicity and harm to our brand and reputation; and reduced overall demand for our platform or reduced returns on our Operate Solutions.

Internationally, most jurisdictions in which we or our customers operate have adopted privacy and data security laws. For example, the European Union's ("EU") General Data Protection Regulation (EU) 2016/679 ("GDPR") applies to the European Economic Area ("EEA") and, in substantially equivalent form, to UK establishments and UK-focused processing operations ("UK GDPR"). European data protection laws, including EU GDPR, UK GDPR, and others, impose significant and complex burdens on processing personal information and provide for robust regulatory enforcement and significant penalties for noncompliance. For example, companies that violate the GDPR can face private litigation, bans on data processing and fines of up to the greater of 20 million Euros or 4% of their worldwide annual revenue.

Regulators, courts, and platforms have increasingly interpreted the GDPR and other data protection laws as requiring affirmative opt-in consent to use cookies and similar technologies for personalization, advertising, or analytics. A new regulation that has been proposed in the European Union, known as the ePrivacy Regulation, may further restrict the use of cookies and other online tracking technologies on which our platform relies, as well as increase restrictions on online direct marketing. Such restrictions could increase our exposure to regulatory enforcement action, increase our compliance costs, and adversely affect our business.

Globally, certain jurisdictions have enacted data localization laws and have imposed requirements for cross-border transfers of personal information. For example, the cross-border transfer landscape in Europe is currently unstable and other countries outside of Europe have enacted or are considering enacting cross- border data transfer restrictions and laws requiring data residency. For example, the GDPR and other European data protection laws also generally prohibit the transfer of personal information to countries outside the EEA, such as the United States, which are not considered by the European Commission to provide an adequate level of data protection. In addition, Swiss and UK law contain similar data transfer restrictions as the GDPR. The European Commission recently released guidance on Standard Contractual Clauses, a mechanism to transfer data outside of the EEA, which imposes additional obligations to carry out cross- border data transfers. Although there are currently valid mechanisms available to transfer data from these jurisdictions, there remains some uncertainty regarding the future of these cross-border data transfers.

Countries outside of Europe have enacted or are considering similar cross-border data transfer restrictions and laws requiring local data residency and restricting cross-border data transfer, which could increase the cost and complexity of doing business. If we cannot implement a valid mechanism for cross-border personal information transfers, we may face increased exposure to regulatory actions, penalties, and data processing restrictions or bans, and reduce demand for our services. Loss of our ability to import personal information from Europe and elsewhere may also require us to increase our data processing capabilities outside the U.S. at significant expense.

Additionally, in August 2021, China adopted the Personal Information Protection Law ("PIPL"), which takes effect on November 1, 2021. The PIPL introduces a legal framework similar to the GDPR and is viewed as the beginning of a comprehensive system for the protection of personal information in China, although numerous aspects of the law remain uncertain and developing and the impact that PIPL will have on businesses remains uncertain.

In the United States, federal, state, and local governments have enacted numerous privacy and data security laws, including data breach notification laws, personal information privacy laws, health information privacy laws, and consumer protection laws.

States have begun to introduce more comprehensive privacy legislation. For example, California enacted the California Consumer Privacy Act ("CCPA"), which took effect on January 1, 2020 and imposes several obligations on covered businesses, including requiring specific disclosures related to a business's collection, use, and sharing of personal information, new operational practices, and requirements to respond to requests from California residents related to their personal information. The CCPA contains significant potential penalties for noncompliance (up to $7,500 per violation). Additionally, it is anticipated that the California Privacy Rights Act of 2020 ("CPRA"), which became effective January 1, 2023, will expand the CCPA. The CPRA established a new California Privacy Protection Agency to implement and enforce the CPRA, which could increase the risk of enforcement. Other states have enacted data privacy laws. For example, Virginia passed the Consumer Data Protection Act, and Colorado passed the Colorado Privacy Act, both of which became effective in 2023. In addition, data privacy and security laws have been proposed at federal, state, and local levels in recent years, which could further intensify the challenges associated with compliance efforts.

There is also increasing focus at the state and federal level on use of sensitive categories of data that we may be deemed to collect from time to time. For example, several states and localities have enacted statutes banning or restricting the collection of biometric information. Our platform and solutions employ technology to help creators build augmented and virtual reality applications, and their use to recognize and collect information about individuals could be perceived as subject to these biometric privacy laws. Although we have endeavored to comply with these laws, the collection of biometric information has increasingly been subject to litigation.

There are emerging cases applying existing privacy and data security laws in the U.S., such as the federal and state wiretapping laws in novel and potentially impactful ways, which may affect our ability to offer certain products. The outcome of these cases could cause us to make changes to our platform to avoid costly litigation, government enforcement actions, damages, and penalties under these laws, which could adversely affect our business, results of operations, and our financial condition.

Another area of increasing focus by regulators is children's privacy. Enforcement of longstanding privacy laws, such as the Children's Online Privacy Protection Act ("COPPA"), has increased and that trend is expected to continue under the new generation of privacy and data security laws, such as the GDPR, CCPA, and CPRA. For example, the U.K.'s Information Commissioner's Office recently enacted the Age- Appropriate Design Code ("Children's Code"), which imposes various obligations relating to the processing of children's data. We have previously been subject to claims related to the privacy of minors predicated on COPPA and other privacy and data security laws, and we may in the future face claims under COPPA, the GDPR, the Children's Code, the CCPA, the CPRA, or other laws relating to children's privacy.

In response to the increasing restrictions of global privacy and data security laws, our customers have sought and may continue to seek increasingly stringent contractual assurances regarding our handling of personal information and may adopt internal policies that limit their use of our Operate Solutions. In addition, privacy advocates and industry groups have regularly proposed, and may propose in the future, self- regulatory standards by which we are legally or contractually bound. If we fail to comply with these contractual obligations or standards, we may face substantial contractual liability or fines.

As also described in "Risk Factors — Operating system platform providers or application stores may change terms of service, policies or technical requirements to require us or our customers to change data collection and privacy practices, business models, operations, practices, advertising activities or application content, which could adversely impact our business," the requirements imposed by rapidly changing privacy and data security laws, platform providers, and application stores requires us to dedicate significant resources to compliance, and could also limit our ability to operate, harm our reputation, reduce demand for our platform, and subject us to regulatory enforcement action (including fines, investigations, audits, or bans on processing personal information), private litigation, and other liability. Such occurrences could adversely affect our business, financial condition, and results of operations.

**Risks Related to Laws, Regulations, and the Global Economy**

***Failure to comply with laws relating to employment could subject us to penalties and other adverse consequences.***

We are subject to various employment-related laws in the jurisdictions in which our employees are based. We face risks if we fail to comply with applicable United States federal or state employment laws, or employment laws applicable to our employees outside of the United States. Any violation of applicable wage laws or other employment-related laws could result in complaints by current or former employees, adverse media coverage, investigations, and damages or penalties which could have a materially adverse effect on our reputation, business, operating results and prospects. In addition, responding to any such proceedings may result in a significant diversion of management's attention and resources, significant defense costs, and other professional fees.

***We may be materially adversely affected by the geopolitical conditions resulting from the invasion of Ukraine by Russia, and subsequent sanctions against Russia, Belarus and related individuals and entities, and the status of debt and equity markets, as well as protectionist legislation in our target markets.***

The United States and global markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the recent invasion of Ukraine by Russia in February 2022. In response to such invasion, the North Atlantic Treaty Organization ("NATO") deployed additional military forces to eastern Europe, and the United States, the United Kingdom, the European Union and other countries have announced various sanctions and restrictive actions against Russia, Belarus and related individuals and entities, including the removal of certain financial institutions from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment system. Certain countries, including the United States, have also provided and may continue to provide military aid or other assistance to Ukraine during the ongoing military conflict, increasing geopolitical tensions with Russia. The invasion of Ukraine by Russia and the resulting measures that have been taken, and could be taken in the future, by NATO, the United States, the United Kingdom, the European Union and other countries have created global security concerns that could have a lasting impact on regional and global economies. Although the length and impact of the ongoing military conflict in Ukraine is highly unpredictable, the conflict could lead to market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as supply chain interruptions. Additionally, Russian military actions and the resulting sanctions could adversely affect the global economy and financial markets and lead to instability and lack of liquidity in capital markets. In addition, the invasion of Ukraine by Russia, and the impact of sanctions against Russia and the potential for retaliatory acts from Russia, could result in increased cyber-attacks against U.S. companies.

Additionally, changes in international trade policies by governments around the world, including the imposition or continuation of tariffs, could materially and adversely affect our business. In 2018, the U.S. imposed tariffs on certain imports from China and other countries, resulting in retaliatory tariffs by China and other countries. On February 1, 2025, the United States imposed a 25% tariff on imports from Canada and Mexico, which were subsequently suspended for a period of one month, and a 10% additional tariff on imports from China. Historically, tariffs have led to increased trade and political tensions, between not only the United States and China, but also between the United States and other countries in the international community. In response to tariffs, other countries have implemented retaliatory tariffs on U.S. goods. These tariffs, any new tariffs or policies imposed by governments around the world, or any resulting retaliatory measures, to the extent implemented, could increase our costs, reduce our sales and earnings or otherwise have an adverse effect on our operations.

Any of the abovementioned factors, or any other negative impact on the global economy, capital markets or other geopolitical conditions, could adversely affect our target business. The extent and duration of the Russian invasion of Ukraine, resulting sanctions and any related market disruptions are impossible to predict, but could be substantial, particularly if current or new sanctions continue for an extended period of time or if geopolitical tensions result in expanded military operations on a global scale. If these disruptions or other matters of global concern continue for an extensive period of time, our operations may be materially adversely affected.

***Changes in laws or regulations, or a failure to comply with any laws and regulations, may adversely affect our business and operations.***

We are subject to laws and regulations enacted by national, regional, and local governments. We will be required to comply with certain SEC and other legal requirements. Compliance with, and monitoring of, applicable laws and regulations may be difficult, time consuming and costly. Those laws and regulations and their interpretation and application may also change from time to time and those changes could have a material adverse effect on our business, investments, and results of operations. In addition, a failure to comply with applicable laws or regulations, as interpreted and applied, could have a material adverse effect on our business and operations.

***We are subject to anti-corruption, anti-bribery, anti-money laundering, and similar laws, and non-compliance with such laws can subject us to criminal or civil liability and harm our business, financial condition and results of operations.***

We are subject to the Foreign Corrupt Practices Act of 1977, as amended ("FCPA") and U.S. domestic bribery laws. Anti-corruption and anti-bribery laws have been enforced aggressively in recent years and are interpreted broadly to generally prohibit companies, their employees and their third-party intermediaries from authorizing, offering or providing, directly or indirectly, improper payments or benefits to recipients in the public or private sector. The current U.S. President Donald Trump signed an Executive Order on February 10, 2025, pausing all future investigations and enforcement actions under the FCPA for at least 180 days, along with directing the U.S. attorney general to (1) resolve existing FCPA investigations or enforcement matters, taking into account the current administration's foreign policy objectives, and (2) issued updated FCPA guidelines or policies. As of the date of this offering statement on Form 1-A, no new guidelines have been issued. As we increase our global sales and business to the public sector and further develop our reseller channel, we may engage with business partners and third-party intermediaries to market our solutions and obtain necessary permits, licenses and other regulatory approvals. In addition, we or our third-party intermediaries may have direct or indirect interactions with officials and employees of government agencies or state-owned or affiliated entities. We can be held liable for the corrupt or other illegal activities of these third-party intermediaries, our employees, representatives, contractors, partners and agents, even if we do not authorize such activities.

While we have policies and procedures to address compliance with such laws, we cannot assure you that none of our employees and agents will take actions in violation of our policies and applicable law, for which we may be ultimately held responsible. As we increase our global sales and business, our risks under these laws may increase.

Detecting, investigating and resolving actual or alleged violations of anti-corruption laws can require a significant diversion of time, resources and attention from senior management. In addition, noncompliance with anti-corruption, anti-bribery or anti-money laundering laws could subject us to whistleblower complaints, investigations, sanctions, settlements, prosecution, enforcement actions, fines, damages, other civil or criminal penalties or injunctions, suspension or debarment from contracting with certain persons, reputational harm, adverse media coverage and other collateral consequences. If any subpoenas or investigations are launched, or governmental or other sanctions are imposed, or if we do not prevail in any possible civil or criminal proceeding, our business, financial condition and results of operations could be harmed. In addition, responding to any action will likely result in a materially significant diversion of management's attention and resources and significant defense costs and other professional fees.

***We are subject to governmental export and import controls and economic sanctions laws that could impair our ability to compete in global markets or subject us to liability if we violate the controls.***

The Immersed Visor will be subject to U.S. export controls. Our AR/VR headset and the underlying technology may be exported outside of the United States only with the required export authorizations, including by license, a license exception, or other appropriate government authorizations.

Furthermore, all our activities are subject to U.S. economic sanctions laws and regulations administered by the Office of Foreign Assets Control ("OFAC"), that prohibit the shipment of most solutions to embargoed jurisdictions or sanctioned parties without the required export authorizations. Obtaining the necessary export license or other authorization for a particular sale may be time-consuming and may result in the delay or loss of sales opportunities.

We have taken precautions to prevent our platform from being provided, deployed or used in violation of U.S. sanctions laws. We cannot assure you that our policies and procedures relating to export control and sanctions compliance will prevent violations in the future. If we are found to be in violation of U.S. sanctions or export control regulations, it can result in significant fines or penalties and possible incarceration for responsible employees and managers, as well as reputational harm and loss of business.

If we or our partners fail to obtain appropriate import, export, or re-export licenses or permits, we may also be adversely affected through reputational harm, as well as other negative consequences, including government investigations and penalties.

Also, various countries, in addition to the United States, regulate the import and export of certain encryption and other technology, including import and export licensing requirements, and have enacted laws that could limit our ability to distribute our platform or could limit our customers' ability to implement our platform in those countries. Changes in our platform or future changes in export and import regulations may create delays in the introduction of our platform in global markets, prevent our customers with global operations from deploying our platform globally or, in some cases, prevent the export or import of our platform to certain countries, governments or persons altogether. From time to time, various governmental agencies have proposed additional regulation of encryption technology.

Our customers outside of North America generated approximately 25% and 33% of our revenue for the years ended December 31, 2024, and 2023, respectively, and approximately 15% of our revenue for the six months ended June 30, 2025. Our growth strategy includes further expanding our operations and customer base across all major global markets. However, any change in export or import regulations, economic sanctions or related legislation, increased export and import controls, or change in the countries, governments, persons or technologies targeted by such regulations, could result in decreased use of our platform by, or in our decreased ability to export or sell our platform to, existing or potential customers with global operations. Any decreased use of our platform or limitation on our ability to export or sell our platform in major global markets would adversely affect our business, results of operations, and growth prospects.

***Sales to government entities and highly regulated organizations are subject to a number of challenges and risks.***

We may sell our software to U.S. federal, state, and local, as well as foreign, governmental agency customers, as well as to customers in highly regulated industries. Sales to such entities are subject to a number of challenges and risks. Selling to such entities can be highly competitive, expensive, and time-consuming, often requiring significant upfront time and expense without any assurance that these efforts will generate a sale. Government contracting requirements may change and in doing so restrict our ability to sell into the government sector until we have attained the revised certification. Government demand and payment for solutions are affected by public sector budgetary cycles and funding authorizations and funding reductions or delays may adversely affect public sector demand that could develop for our solutions.

Further, governmental, and highly regulated entities may demand or require contract terms and product and solution features or certifications that differ from our standard arrangements and are less favorable or more difficult to maintain than terms that we negotiate with private sector customers or otherwise make available. Such entities may have statutory, contractual or other legal rights to terminate contracts with us or our partners for convenience or for other reasons. Any such termination may adversely affect our ability to provide our platform to other government customers and could adversely impact our reputation, business, financial condition and results of operations.

***We are subject to laws and regulations worldwide, many of which are unsettled and still developing, and which could increase our costs or adversely affect our business.***

We are subject to a variety of laws in the United States and abroad that affect our business, including state and federal laws regarding consumer protection, advertising, electronic marketing, protection of minors, data protection and privacy, data localization requirements, online services, anti-competition, labor, real estate, taxation, intellectual property ownership and infringement, export and national security, tariffs, anti- corruption and telecommunications, all of which are continuously evolving and developing. The scope and interpretation of the laws that are or may be applicable to us are often uncertain and may be conflicting, particularly laws outside the United States, and compliance with laws, regulations and similar requirements may be burdensome and expensive. Laws and regulations may be inconsistent from jurisdiction to jurisdiction, which may increase the cost of compliance and doing business. Any such costs, which may rise in the future as a result of changes in these laws and regulations or in their interpretation, could make our platform less attractive to our customers or cause us to change or limit our ability to sell our platform. We have policies and procedures designed to ensure compliance with applicable laws and regulations, but we cannot assure you that our employees, contractors or agents will not violate such laws and regulations or our policies and procedures. Changes in current laws or regulations or the imposition of new laws and regulations in the United States or elsewhere regarding our platform may lessen the growth of mobile academic institutions and impair our business, financial condition or results of operations.

***Any legal proceedings, claims against us, or other disputes could be costly and time-consuming to defend and could harm our reputation regardless of the outcome.***

We are and may in the future become subject to legal proceedings and claims that arise from time to time, such as claims brought by our customers in connection with commercial disputes or employment claims made by our current or former employees.

Any litigation or dispute, whether meritorious or not, could harm our reputation, will increase our costs and may divert management's attention, time and resources, which may in turn harm our business, financial condition and results of operations. Insurance might not cover such claims, might not provide sufficient payments to cover all the costs to resolve one or more such claims, and might not continue to be available on terms acceptable to us. A claim brought against us that is uninsured or underinsured could result in unanticipated costs, potentially harming our business, financial position and results of operations.

**Risks Related to Taxation**

***Changes in our effective tax rate or tax liability may have an adverse effect on our results of operations.***

Our effective tax rate could increase due to several factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· changes in the relative
 amounts of income before taxes in the various jurisdictions in which we operate that have differing statutory tax rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· changes in tax laws, tax
 treaties, and regulations or the interpretation of them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· changes to our assessment
 of our ability to realize our deferred tax assets that are based on estimates of our future results, the feasibility of possible
 tax planning strategies, and the economic and political environments in which we do business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the outcome of current
 and future tax audits, examinations or administrative appeals; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· limitations or adverse
 findings regarding our ability to do business in some jurisdictions. Any of these developments could adversely affect our results
 of operations.

***Changes to applicable U.S. tax laws and regulations or exposure to additional income tax liabilities could affect our business and future profitability.***

We are an U.S. corporation that is subject to U.S. corporate income tax on our worldwide operations. Moreover, most of our operations and customers are located in the United States, and as a result, we are subject to various U.S. federal, state and local taxes. To the extent that we conduct activities with connections to other countries, we may be subject to taxes imposed by those countries. New U.S. federal, state and local, and, to the extent applicable, non-U.S., laws and policy relating to taxes may have an adverse effect on our business and future profitability. Further, existing U.S. and foreign tax laws, statutes, rules, regulations or ordinances could be interpreted, changed, modified or applied adversely to us.

***Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.***

As of June 30, 2025 and December 31, 2024, we had $29,525,481 and $28,107,567, respectively, of U.S. federal net operating loss carryforwards available to reduce future taxable income. Certain of these carryforwards may be carried forward indefinitely for U.S. federal tax purposes. It is possible that we will not generate taxable income in time to use these net operating loss carryforwards before their expiration or at all. Under legislative changes made in December 2017, U.S. federal net operating losses incurred in 2018 and in future years may be carried forward indefinitely, but the deductibility of such net operating losses is limited. It is uncertain if and to what extent various states will conform to such federal tax law. In addition, the federal and state net operating loss carryforwards and certain other attributes may be subject to significant limitations under Section 382 and Section 383 of the U.S. Tax Code, respectively, and similar provisions of state law. Under those sections of the U.S. Tax Code, if a corporation undergoes an "ownership change," the corporation's ability to use its pre-change net operating loss carryforwards and other pre-change attributes, such as research tax credits, to offset its post-change income or tax may be limited. In general, an "ownership change" will occur if there is a cumulative change in our ownership by "5-percent shareholders" that exceeds 50 percentage points over a rolling three-year period. Similar rules may apply under state tax laws.

***We could be required to collect additional sales, value added or similar taxes or be subject to other tax liabilities that may increase the costs our customers would have to pay for our solutions and adversely affect our results of operations.***

We collect sales, value added or similar indirect taxes in a number of jurisdictions. An increasing number of states have considered or adopted laws that attempt to impose sales tax collection obligations on out-of-state companies. Additionally, the Supreme Court of the United States ruled in South Dakota v. Wayfair, Inc. et al ("Wayfair") that online sellers can be required to collect sales and use tax despite not having a physical presence in the buyer's state. In response to Wayfair, or otherwise, states or local governments may adopt, or begin to enforce, laws requiring us to calculate, collect, and remit taxes on sales in their jurisdictions. Similarly, many foreign jurisdictions have considered or adopted laws that impose value added, digital service, or similar taxes, on companies despite not having a physical presence in the foreign jurisdiction. A successful assertion by one or more states, or foreign jurisdictions, requiring us to collect taxes where we presently do not do so, or to collect more taxes in a jurisdiction in which we currently do collect some taxes, could result in substantial tax liabilities, including taxes on past sales, as well as penalties and interest. The requirement to collect sales, value added or similar indirect taxes by foreign, state or local governments for sellers that do not have a physical presence in the jurisdiction could also create additional administrative burdens for us, put us at a competitive disadvantage if they do not impose similar obligations on our competitors, and decrease our future sales, which could have a material adverse effect on our business and results of operations. We continually monitor the evolving tax requirements in the jurisdictions in which we operate and those jurisdictions where our customers reside.

***Tax Consequences***

IN VIEW OF THE COMPLEXITY OF THE TAX ASPECTS OF THE OFFERING, PARTICULARLY IN LIGHT OF CHANGES IN THE LAW AND POSSIBLE FUTURE CHANGES IN THE LAW AND THE FACT THAT CERTAIN OF THE TAX ASPECTS OF THE OFFERING WILL NOT BE THE SAME FOR ALL INVESTORS, PROSPECTIVE INVESTORS ARE STRONGLY ADVISED TO CONSULT THEIR TAX ADVISORS WITH SPECIFIC REFERENCE TO THEIR OWN TAX SITUATION PRIOR TO INVESTMENT IN THE COMPANY.

THE FOREGOING RISK FACTORS REFLECT MANY, BUT PERHAPS NOT ALL OF THE RISKS INCIDENT TO AN INVESTMENT IN THE COMPANY'S SHARES. EACH INVESTOR MUST MAKE HIS OWN INDEPENDENT EVALUATION OF THE RISKS OF THIS INVESTMENT.

**Risks Related to this Offering and our Common Stock**

***Our Stockholders are subject to dilution.***

If we are successful in raising the Maximum Offering, we believe with the net proceeds from this Offering that we are adequately financed to carry out our technology and development plans in the near term and to reach a commercial construction decision. However, financing the development of processing operations through to commercial production will be expensive and we may require additional capital to fund large commercial construction and development, technology programs, and potential acquisitions. We cannot predict the size of future issuances of Company shares, the issuance of debt instruments, or other securities convertible into Company shares in connection with any such financing, or the issuance of options to Company employees to add key members to the team. Likewise, we cannot predict the effect, if any, that future issuances and sales of our securities will have on the market price of such shares. If we raise additional funds by issuing additional equity securities, such financing may substantially dilute the interests of existing stockholders. Sales of substantial numbers of our shares, or the availability of such shares for sale, could adversely affect prevailing market prices for our securities and a securityholder's interest in us.

***Investors in this Offering will incur immediate dilution from the offering price.***

Because our price per share being offered is higher than our book value per share, investors will suffer immediate dilution in our net tangible book value purchased in this Offering. After giving effect to the sale by us in the Primary Offering of Shares at an assumed public offering price of $13.23 per share, which is based on the upper limit of the price range, and after deducting approximately $2.370 million in offering expenses and commissions, assuming the maximum 20% of Bonus Shares are issued and that all of Shares subject to the Secondary Offering are sold by the Selling Stockholders and no other shares of the Company are sold, our post-Offering pro forma net tangible book value as of June 30, 2025, would be approximately $3.594 million or $0.47 per share. This amount represents an immediate increase in pro forma net tangible book value of $3.18 per share to our existing stockholders as of June 30, 2025, and an immediate dilution in pro forma net tangible book value of approximately $12.76 per share to investors purchasing Shares in this Offering. See "Dilution" on page 34 for a more detailed description of the dilution to new investors in the Offering.

***The price per share has been determined by our management and our Board of Directors and such determination of price per share may be arbitrary.***

The price per share of our Common Stock has been determined by the Company's management as recommended and approved by our Board of Directors in its sole discretion projecting the value of the Company based on (i) the addition of new commercial agreements, (ii) valuations of peer companies in our industry, (iii) projections of our future cash flows (because the present value of a future cash flow increases as the future cash flow gets closer). The price per share of our Common Stock has not been determined by an independent valuation specialist and may be arbitrary. Additionally, our management may in its discretion offer securities of the Company in "down rounds" at lower pricing than the share price in this Offering. There are no guarantees investors will realize any appreciation on the shares of Common Stock sold in this Offering.

***This Offering does not require a minimum funding to close.***

We do not have a minimum capitalization and we may use the proceeds from this Offering immediately following our acceptance of the corresponding subscription agreements and funding. We do not have any track record for self-underwritten Regulation A+ offerings and there can be no assurance we will sell the Maximum Offering or any other amount. It is possible we may only raise a minimum amount of capital, which could leave us with insufficient capital to implement our business plan, potentially resulting in greater operating losses unless we are able to raise the required capital from alternative sources. There is no assurance that alternative capital, if needed, would be available on terms acceptable to us, or at all.

***Our executive officers, directors, major stockholder and their respective affiliates will continue to exercise significant control over our Company after this Offering, which will limit your ability to influence corporate matters and could delay or prevent a change in corporate control.***

Immediately following the completion of this Offering, including any shares of Common Stock that are purchased in this Offering (including the Primary Offering and the Secondary Offering), if any, and assuming no other shares are sold, the existing holdings of our Founder and CEO will represent beneficial ownership, in the aggregate, of approximately 52.0% of our outstanding Common Stock, on a fully diluted basis, assuming the Company issues the Primary Offering Maximum Amount of Shares and the Selling Stockholders sell the Secondary Offering Maximum Amount of Shares as set forth on the cover page of this Offering Circular. Please see "Security Ownership of Management and Certain Security Holders" on page 72 for more information. As a result, the Founder and CEO will be able to influence our management and affairs and control the outcome of matters submitted to our stockholders for approval, including the election of directors and any sale, merger, consolidation, or sale of all or substantially all of our assets. The Founder and CEO acquired these shares of Common Stock for substantially less than the price of the shares of Common Stock being acquired in this Offering. In addition, this concentration of ownership might affect the market price of our Common Stock by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Delaying, deferring or
 preventing a change of control of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Impending a merger, consolidation,
 takeover or other business combination involving the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Discouraging a potential
 acquirer from making a tender offer or otherwise attempting to obtain control of the Company.

***We have broad discretion in how we use the proceeds of this Offering and may not use these proceeds effectively, which could affect our results of operations and cause our Common Stock price to decline.***

We will have considerable discretion in the application of the net proceeds of this Offering. We intend to use the net proceeds from this Offering to fund our business strategy, including without limitation, product development, salaries and compensation, general corporate purposes, and offering expenses, which may include funding for the hiring of additional personnel. As a result, investors will be relying upon management's judgment with only limited information about our specific intentions for the use of the balance of the net proceeds of this Offering. We may use the net proceeds for purposes that do not yield a significant return or any return at all for our stockholders. In addition, pending their use, we may invest the net proceeds from this Offering in a manner that does not produce income or that loses value.

***There is no existing market for our Common Stock, and investors cannot be certain that an active trading market will ever exist or a specific share price will be established.***

Prior to this Offering, there has been no public market for shares of Common Stock. We cannot predict the extent to which investor interest in our Company will lead to the development of a trading market or how liquid that market might become. Shares of Common Stock may be traded on the over-the-counter market to the extent any demand exists. Investors should assume that they may not be able to liquidate their investment for some time or be able to pledge their shares as collateral. The Company currently has no plans to list any of its shares on any OTC or similar exchange.

The Offering price for the shares of Common Stock has been arbitrarily determined by the Company and may not be indicative of the price that will prevail in any trading market following this Offering, if any. The market price for our Common Stock may decline below the Offering price, and our stock price is likely to be volatile.

***We will use our best efforts to list our Common Stock for trading on a securities exchange however it is uncertain when our Common Stock will be listed on an exchange for trading, if ever.***

There is currently no public market for our Common Stock and there can be no assurance that one will ever develop. Our Board of Directors may take actions necessary to list our Common Stock over-the-counter (OTC) or on a national securities exchange, such as the NYSE American, the Nasdaq Stock Exchange, the Toronto Stock Exchange or the London Stock Exchange among others, however such a listing is not guaranteed. As a result, our Common Stock sold in this Offering may not be listed on a securities exchange for an extended period of time, if at all. If our Common Stock is not listed on an exchange it may be difficult to sell or trade our Common Stock shares.

***If our stock becomes publicly traded and the price fluctuates after the Offering, you could lose a significant part of your investment.***

The market price of our Common Stock, if it were traded, could be subject to wide fluctuations in response to, among other things, the risk factors described in this section of this Offering Circular, and other factors beyond our control, such as fluctuations in the valuation of companies perceived by investors to be comparable to us. Furthermore, the stock markets typically experience price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. These fluctuations often have been unrelated or disproportionate to the operating performance of those companies. These broad market and industry fluctuations, as well as general economic, political, and market conditions, such as recessions, interest rate changes or international currency fluctuations, may negatively affect the market price of our Common Stock. In the past, many companies that have experienced volatility in the market price of their stock have been subject to securities class action litigation. If this type of securities litigation occurred against us in the future, it could result in substantial costs and divert management's attention from other business concerns, which could seriously harm our business.

***Different Share classes may have different rights than Common Shares.***

Different classes of shares may exist in the Company such as Preferred Shares held by major investors or founders of the Company. These shares may have different rights and preferences, such as voting rights, liquidation rights, participation rights, rights of first refusal, co-sale rights, and various other rights that do not exist for the class of Common Shares being sold in this Offering. As a result, holders of Preferred Shares will be able to influence certain decisions in management and affairs, and control the outcome of matters submitted to our stockholders for approval, including the election of directors and any sale, merger, consolidation, or sale of all or substantially all of our assets.

***After the completion of this Offering, we may be at an increased risk of securities class action litigation.***

Historically, securities class action litigation has often been brought against a company following a decline in the market price of its securities. This risk is especially relevant for us because extractive mineral processing and battery material related companies have experienced significant stock price volatility in recent years. If we were to be sued, it could result in substantial costs and a diversion of management's attention and resources, which could harm our business.

***We do not intend to pay dividends on our Common Stock and, consequently, your ability to achieve a return on your investment will depend on appreciation in the price and eventual liquidity of our Common Stock.***

We have never declared or paid any cash dividend on our Common Stock and do not currently intend to do so in the foreseeable future. We currently anticipate that we will retain future earnings for the development, operation, and expansion of our business, and do not anticipate declaring or paying any cash dividends in the foreseeable future. Therefore, the success of an investment in shares of Common Stock will depend upon any future appreciation in their value. There is no guarantee that shares of Common Stock will appreciate in value or even maintain the price at which they are purchased.

***We may terminate this Offering at any time during the Offering Period.***

We reserve the right to terminate this Offering at any time regardless of the number of Shares sold. In the event that we terminate this Offering at any time prior to the sale of all of the Shares offered hereby, whatever amount of capital that we have raised at that time will have already been utilized by the Company and no funds will be returned to subscribers.

***We are offering Bonus Shares to certain investors, which will result in increased dilution to those investors not eligible for the maximum bonus.***

Certain investors are entitled to receive additional shares of Common Stock under the terms of our Bonus Share program described below under "Plan of Distribution." The maximum amount of Bonus Shares available is 20%, but could be lower based on the amount invested. As a result, those investors not eligible for the maximum value of Bonus Shares will experience additional dilution compared to investors receiving 20% Bonus Shares.

***Our valuation and our offering price have been established internally and are difficult to assess.***

The Company has set the price of its Common Stock at $13.23 per share. The valuation for this offering was established by the company. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially early-stage companies, is difficult to assess and you may risk overpaying for your investment.

 ***We have conducted multiple offerings of securities, and the integration of these offerings could materially harm our business and financial condition.***

We are currently and will in the future be involved in one or more unrelated offerings of our securities. Any two or more of our securities offerings could be found by the SEC or a state securities agency to be "integrated" and therefore constitute a single offering of securities. The integration of our offerings could lead to a disallowance of certain exemptions from registration for the sale of our securities in such other securities offerings. Such a finding could give rise to various legal actions on behalf of a federal or state regulatory agency against the Company.

 ***We will not receive any proceeds from shares sold by Selling Stockholders, which may limit our ability to use offering proceeds for corporate purposes.***

A portion of the Shares offered in this Offering are being sold by existing Selling Stockholders rather than by us. We will not receive any proceeds from the sale of Shares by Selling Stockholders. Selling Stockholders are offering up to 302,343 Shares, representing approximately 13.7% of the total Shares offered (including the Bonus Shares), or approximately 16.0% of the total Shares being sold for cash consideration. Investors will not be able to choose whether they are purchasing Shares from the Company or from Selling Stockholders. Further, the proceeds from Shares sold by Selling Stockholders will go directly to those Selling Stockholders. As a result, we will receive less capital from this Offering than if we were selling all of the offered Shares ourselves. This reduction in proceeds may limit our ability to fund operations, pursue growth opportunities, or achieve other corporate objectives that we might otherwise accomplish with the full proceeds of the Offering.

**DILUTION**

As of June 30, 2025, an aggregate of 5,821,712 shares of Common Stock is outstanding. In addition, 11,984,141 options to purchase shares of Common Stock have been issued pursuant to stock option award agreements under the 2017 Stock Option Plan, with exercise prices ranging from $0.02 to $3.70 per share, and 1,492,595 shares of Common Stock remain available for future grants under the 2017 Stock Option Plan. Additionally, 2,616,048 options to purchase shares of Common Stock have been issued to our founder pursuant to stock option award agreements, with exercise prices ranging from $0.03 to $0.82 per share. Future awards could be issued at per share prices above or below the Offering Price. The following dilution discussion does not include any conversion of our outstanding convertible notes into shares of Common Stock, or any awards under our 2017 Stock Option Plan or awards granted to our executive officers outside of the 2017 Stock Option Plan.

If you purchase Shares in this Offering, your ownership interest in our Common Stock will be diluted immediately, to the extent of the difference between the price to the public charged for each share in this Offering and the net tangible book value per share of our Common Stock after this Offering.

Our net tangible book value as of June 30, 2025, was approximately $(15.787) million or $(2.71) per share based on 5,821,712 outstanding shares of Common Stock as of June 30, 2025. Net tangible book value per share equals the amount of our total tangible assets less total liabilities, divided by the total number of shares of Common Stock outstanding, all as of the date specified.

After giving effect to the sale by us in the Primary Offering of Shares at an assumed public offering price of $13.23 per share, which is based on the upper limit of the price range, and after deducting approximately $2.370 million in offering expenses and commissions, assuming the maximum 20% of Bonus Shares are issued and that all of Shares subject to the Secondary Offering are sold by the Selling Stockholders and no other shares of the Company are sold, our post-Offering pro forma net tangible book value as of June 30, 2025, would be approximately $3.594 million or $0.47 per share. This amount represents an immediate increase in pro forma net tangible book value of $3.18 per share to our existing stockholders as of June 30, 2025, and an immediate dilution in pro forma net tangible book value of approximately $12.76 per share to investors purchasing Shares in this Offering.

The following table illustrates the per share dilution to investors discussed above, assuming the sale of, respectively, 100%, 75%, 50% and 25% of the Shares offered for sale in this Offering (after deducting our estimated offering expenses and Broker commission of approximately $2.370 million, $1.951 million, $1.533 million, and $1.114 million), respectively, as of June 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Funding Level | $19380360 | $13361300 | $7342240 | $1323180 |
| Offering Price | $13.23 | $13.23 | $13.23 | $13.23 |
| Net tangible book value per Share at June 30, 2025 | $(2.71) | $(2.71) | $(2.71) | $(2.71) |
| Increase per Share attributable to existing investors in this Offering | $3.18 | $2.45 | $(6.15) | $(27.66) |
| Pro forma net tangible book value per Share after Offering at June 30, 2025 | $0.47 | $(0.33) | $(1.25) | $(2.30) |
| Dilution to investors purchasing Share in the Offering | $12.76 | $13.56 | $14.48 | $15.53 |

---

**PLAN OF** **DISTRIBUTION**

The Shares are being offered by us on a "best-efforts" basis. There is no aggregate minimum to be raised in order for the Offering to become effective, and therefore the Offering will be conducted on a "rolling basis." This means we are entitled to begin applying "dollar one" of the proceeds from the Offering towards our business strategy, including, without limitation, research and development expenses, offering expenses, working capital, general corporate purposes, repayment of debt (if any) and, prior to our use of the proceeds, other uses, including short-term, interest-bearing investments, as more specifically set forth in the "Use of Proceeds" starting on page 40.

**Agreement with DealMaker Securities, LLC**

DealMaker Securities, LLC (the "Broker"), a broker-dealer registered with the Commission and a member of FINRA, has been engaged to provide the administrative and compliance related functions in connection with this Offering, and as broker-dealer of record. Although this role differs from that of a traditional underwriter in that the Broker does not purchase any securities from the Company with a view to sell such for the Company as part of the distribution of the security, the Broker is a statutory underwriter under Section 2(a)(11) of the Securities Act of 1933. Affiliates of Broker have also been engaged to provide technology services and marketing advisory services, specifically Novation Solutions Inc. O/A DealMaker ("DealMaker") and DealMaker Reach, LLC ("Reach").

Neither the Broker nor its affiliates will receive compensation for the sale or issuance of bonus securities. The aggregate fees payable to the Broker and its affiliates are described below.

***Administrative and Compliance Related Functions***

The Broker will provide administrative and compliance related functions in connection with this Offering, including:

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reviewing with the Company
 on question customization for investor questionnaire, selection of webhosting services, and template for the Offering campaign page;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Advising us on compliance
 of marketing material and other communications with the public with applicable legal standards and requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Providing advice to the
 Company on preparation and completion of this Offering Circular;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Providing extensive review,
 training and advice to the Company and Company personnel on how to configure and use the electronic platform for the Offering powered
 by Novation Solutions Inc. O/A DealMaker ("DealMaker"), an affiliate of the Broker;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Working with Company personnel
 and counsel in providing information to the extent necessary;

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Coordinating with third
 party agents and vendors in connection with performance of services;

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reviewing with the Company
 regarding any material changes to the Form 1-A which may require an amended filing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reviewing third party provider
 work-product with respect to compliance with applicable rules and regulations.

Such services shall not include providing any investment advice or any investment recommendations to any investor. For these services, we have agreed to pay Broker:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· A one-time $27,500 payment
 for accountable expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· A cash commission equal
 to four and one-half percent (4.5%) of each investor's total amount invested in the Offering (including the 3.0% Transaction
 Fee), not to exceed a maximum of $1,158,749.54, if fully subscribed.

***Technology Services***

The Company has also engaged DealMaker, an affiliate of Broker, to create and maintain the online subscription processing platform for the Offering.

After the qualification by the Commission of the Offering Statement of which this Offering Circular is a part, this Offering will be conducted using the online subscription processing platform of DealMaker through our website at https://invest.immersed.com, whereby investors will receive, review, execute and deliver subscription agreements electronically as well as make payment of the purchase price through a third party processor by ACH debit transfer, wire transfer or credit card to an account we designate. There is no escrow established for this Offering. We will hold closings upon the receipt of investors' subscriptions and our acceptance of such subscriptions.

For these services, we have agreed to pay DealMaker:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· A one-time $10,000 payment
 and monthly payments of $2,000 for three months (up to $6,000) for accountable expenses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· After the Offering commences,
 $2,000 monthly marketing advisory fee, to a maximum of $18,000.

***Marketing and Advisory Services***

The Company has also engaged Reach, an affiliate of Broker, for certain marketing advisory and consulting services. Reach will consult and advise on the design and messaging on creative assets, website design and implementation, paid media and email campaigns, advise on optimizing the Company's campaign page to track investor progress, and advise on strategic planning, implementation, and execution of Company's capital raise marketing budget.

For these services, we have agreed to pay Reach:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· A one-time $30,000 payment
 and monthly payments of $11,000 for three months (up to $33,000) for accountable expenses for the provision of marketing consulting
 services and developing materials with respect to the self-directed electronic roadshow; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· After the Offering commences,
 $11,000 monthly marketing advisory fee, to a maximum of $99,000.

For supplemental marketing services, Reach will receive as compensation a maximum of $250,000, which will be requested on a case-by-case basis as the Company requests for the placement of marketing advertisements.

The Administrative and Compliance fees, the Technology Services Fees, and the Marketing and Advisory Services Fees described above will, in aggregate, not exceed $1,632,249.54.

**Transaction Fee**

In connection with this Offering, Investors will be required to pay a Transaction Fee to the Company at the time of the subscription to help offset transaction costs equal to 3.0% of the subscription price per Share (the "Transaction Fee"). The Transaction Fee will apply in connection with the issuance and sale of new Shares by the Company in the Primary Offering and in connection with the sale of Shares by the Selling Stockholders in the Secondary Offering. The aggregate amount paid by the investors related to the Transaction Fee will be allocated to the Company to offset the Offering costs. The Transaction Fee is subject to the 4.5% commission calculation charged by DealMaker Securities. These expenses are included in the maximum compensation set forth in the table above.

**Offering Period and Expiration Date**

This Offering will start on or after the date on which the Offering Statement is qualified by the SEC, and will terminate at our discretion or, on the Termination Date.

**Procedures for Subscribing**

After the Offering Statement has been qualified by the Commission, the Company will accept tenders of funds to purchase the Shares. The Company may close on investments on a "rolling" basis (so not all investors will receive their shares on the same date). Investors may subscribe by tendering funds via wire, credit or debit card, or ACH only, and checks will not be accepted. Investors will subscribe via the Company's website and investor funds will be processed via DealMaker's integrated payment solutions. Funds will be held in the Company's payment processor account until the Broker has reviewed the proposed subscription, and the Company has accepted the subscription. Funds released to the Company's bank account will be net funds (investment less payment for processing fees and a holdback equivalent to 5.0% for 90 days).

The Company will be responsible for payment processing fees in relation to this Offering, estimated to be approximately 2.0% of the total proceeds. Upon each closing, funds tendered by investors will be made available to the Company for its use.

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

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

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

The Company maintains the right to accept or reject subscriptions in whole or in part, for any reason or for no reason, including, but not limited to, in the event that an investor fails to provide all necessary information, even after further requests from the Company, in the event an investor fails to provide requested follow up information to complete background checks or fails background checks, and in the event the Company receives oversubscriptions in excess of the Primary Offering Maximum Amount.

The Subscription Agreement is to be construed in accordance with and governed by the laws of the State of Texas. The Subscription Agreement provides further that the parties to the Subscription Agreement will submit to the jurisdiction of the state courts of Texas and to the jurisdiction of the United States District Court in the City and County of Austin, Travis County for the purpose of any suit, action or other proceeding arising out of or based upon the Subscription Agreement.

In the interest of allowing interested investors as much time as possible to complete the paperwork associated with a subscription, the Company has not set a maximum period of time to decide whether to accept or reject a subscription. If a subscription is rejected, funds will not be accepted by wire transfer or ACH, and payments made by debit card or credit card will be returned to subscribers within 30 days of such rejection without deduction or interest.

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

**Commissions and Discounts**

The following table sets forth the total discounts and compensation payable to the Broker in connection with this Offering:

---

| | | |
|:---|:---|:---|
|  | **Per Share** | **Maximum** |
| Public Offering Price | $13.23 | $24999990<sup>(1)</sup> |
| Transaction Fee | $0.40 | $750000<sup>(2)</sup> |
| Broker and Affiliate Compensation | $0.86 | $1632250 |
| Proceeds, before expenses, to us | $10.65 | $20117740<sup>(3)</sup> |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) This includes the total amount of
 1,587,301 Shares subject to the Primary Offering and the total amount of 302,343 Shares subject
 to the Secondary Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Transaction Fee does not apply
 to the 317,460 Bonus Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Represents the proceeds, before expenses,
 to the Company, but after deducting $4,000,000, which will be received by the Selling Stockholders,
 on a pro rata basis, assuming all of their Shares offered in the Secondary Offering are sold.

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

Certain investors in this Offering are eligible to receive Bonus Shares of Common Stock for no additional consideration.

The Company's current noteholders, including holders of convertible promissory notes issued by the Company, will not be deemed "investors" eligible for Bonus Shares unless and solely to the extent they make a new cash investment in this Offering after qualification by the SEC. No Bonus Shares will be issued in respect of any conversion, exchanger, or cancellation of outstanding indebtedness, including the conversion of any notes issued by the Company, whether before or after qualification of this Offering by the SEC.

The amount of Bonus Shares investors in this offering are eligible to receive and the criteria for receiving such Bonus Shares is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Investment Amount. Investors
 will be eligible to receive Bonus Shares based on the amount of their investment in this offering. The below table summarizes the
 available bonus by amount invested:

---

| | |
|:---|:---|
| **Amount Invested** | **Bonus Shares** |
| $5000.00 | 5% |
| $10000.00 | 10% |
| $25000.00 | 15% |
| $50000.00 | 20% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Existing Immersed Investor.
 Existing investors in the Company will be eligible to receive Bonus Shares if they also invest in this Offering. Each existing investor
 that invests in this Offering will receive additional Bonus Shares equal to 20% of the number of shares purchased, rounded down to
 the nearest whole share.

The maximum amount of Bonus Shares an investor can make on a single investment in this Offering is 20%.

Investors in this Offering are only eligible to receive all of the Bonus Share perks described above. Therefore, the most Bonus Shares any individual investor is eligible to receive is 20%. Bonus Shares will be applied to each investor following the completion of the subscription in the Offering. The Broker and the Company will verify eligibility through records maintained for prior investments to this Offering, and current investments in this Offering.

 **Selling Stockholders**

The Selling Stockholders set forth below will sell up to a maximum of 302,343 Shares for up to $4,000,000.

The following table sets forth the names of the Selling Stockholders, the number of shares of capital stock (on an as-converted basis to Common Stock basis) beneficially owned prior to this Offering, the number of shares being offered in connection with the Secondary Offering and the number of shares of capital stock to be beneficially owned after this Offering, on a fully diluted basis, assuming that all of Selling Stockholders' Shares are sold in connection with the Secondary Offering.

Subscriptions for the Shares will be applied between the Selling Stockholders on a pro rata basis, which means that at each closing in which Selling Stockholders are participating, a Selling Stockholder will be able to sell its "Pro Rata Portion" of the Shares that the Selling Stockholder is offering (as set forth in the table below) of the number of securities being issued to investors. For example, if the Company holds a closing for $1 million in gross proceeds, the Company will issue shares and receive gross proceeds of $840,000 while each of the Selling Stockholders will receive their Pro Rata Portion of the remaining $160,000 in gross proceeds and will transfer their shares to investors in this Offering. Selling Stockholders will not offer fractional shares and the shares represented by a Selling Stockholder's Pro Rata Portion will be determined by rounding down to the nearest whole share.

The Broker will receive a 4.5% commission on sales of Shares by the Selling Stockholders through Dealmaker's platform prior to disbursement to the Selling Stockholder. The Company will not receive any of the proceeds from the sale of Shares by the Selling Stockholders in connection with the Secondary Offering, except for the Transaction Fee applied on the Shares sold by the Selling Stockholders which will be allocated to the Company to offset the costs of the Offering.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Selling Stockholder** | **Amount of Shares<br> Owned Prior to the<br> Offering (on a Fully <br> Diluted Basis)** | **Amount Offered** | **Amount Owned After <br> the Offering <br> (Assuming Sale of All<br> Amount Offered)** | **Selling Stockholders<br> Pro Rata Portion <sup>(1)</sup>** |
| Renji Bijoy | 16594655 | 207861 | 16386794 | 6875% |
| Joseph Bernardi | 1062421 | 56689 | 1005732 | 18.75% |
| Tatsuya Yamashita | 283726 | 37793 | 245933 | 12.50% |
| &nbsp;&nbsp;&nbsp; **Total** | **17940802** | **302343** | **17638459** | **100.00%** |

---

(1) "Pro
 Rata Portion" represents that portion that a Selling Stockholder may sell in the Offering expressed as a percentage where the
 numerator is the amount offered by the Selling Stockholder divided by the total number of shares offered by all Selling Stockholders.

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

**Transfer Agent and Registrar**

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

**USE OF** **PROCEEDS**

If the Primary Offering Maximum Amount is sold in connection with the Primary Offering (which assumes a public offering price per share of $13.23, plus the $0.40 of Transaction Fee, which represents the upper limit of the price range) pursuant to this Offering Circular, our net proceeds (after our estimated offering expenses, broker-dealer discounts and commissions of approximately $2,369,629) are expected to be approximately $19,380,360 (including the Transaction Fee applied on the Selling Stockholders' Shares, assuming the total Selling Stockholders' Shares are sold in connection with the Secondary Offering, which will be allocated to the Company to offset the Offering costs). The estimate of the budget for Offering costs is an estimate only and the actual Offering costs may differ. The following table represents management's best estimate of the uses of the net proceeds received from the sale of the Shares assuming the sale of, respectively, 100%, 75%, 50% and 25% of Shares offered for sale in this Offering.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Percentage of Offering Sold** | **Percentage of Offering Sold** | **Percentage of Offering Sold** | **Percentage of Offering Sold** |
| <br> **Use of <br> Proceeds** | **100%** | **75%** | **50%** | **25%** |
| Total amount raised | $21749990 | $15312492 | $8874995 | $2437497 |
| Product development | $11628216 | $8016780 | $4405344 | $793908 |
| Salaries and compensation | $5814108 | $4008390 | $2202672 | $396954 |
| General corporate purposes | $1938036 | $1336130 | $734224 | $132318 |
| Offering Expenses (including broker-dealer fees and commissions) | $1854630 | $1564942 | $1275255 | $985567 |
| Payment and Transaction Processing Fees | $515000 | $386250 | 257500 | $128750 |

---

We will not receive any of the proceeds from the sale of Shares being sold by the Selling Stockholders in connection with the Secondary Offering, except for up to $113,951 resulting from the Transaction Fee applied on the Selling Stockholders' Shares (assuming all Selling Stockholders' Shares offered in connection with the Secondary Offering are sold), which will be allocated to the Company to offset the Offering costs.

We are an early-stage company that began development efforts in 2017. As set forth above, we expect to utilize the majority of capital raised in connection with this Offering to fund our business strategy, including without limitation, product development, salaries and compensation, general corporate purposes, and offering expenses. Our plan of operations for the next few years includes scaling Visor through mass production, developing a newer version of Visor, the Visor 2, further developing and scaling adoption of Curator AI, as well as other AI initiatives where our hardware provides value to other AI companies.

The amounts set forth above are our current estimates for such development, and we cannot be certain that actual costs will not vary from these estimates. This expected use of the net proceeds from the Primary Offering represents our intentions based upon our current financial condition, results of operations, business plans and conditions. Our management has significant flexibility and broad discretion in applying the net proceeds received in the Primary Offering, including the repayment of any indebtedness. We cannot assure that our assumptions, expected costs and expenses, and estimates will prove to be accurate or that unforeseen events, problems or delays will not occur that would require us to seek additional debt and/or equity funding, which may not be available on favorable terms, or at all. See "Risk Factors" starting on page 6.

Although our business does not presently generate profit, we believe that if we raise the Primary Offering Maximum Amount, that we will have sufficient capital to finance our operations at least through the end of September 2026. However, if we do not sell the Maximum Amount or if our operating and development costs are higher than expected, we will need to obtain additional financing prior to that time. Further, we expect that during and/or after such period, we may be required to raise additional funds to finance our operations until such time that we can conduct profitable revenue-generating activities.

Pending our use of the net proceeds from the Primary Offering, we may choose to invest the net proceeds in a variety of capital preservation investments, including, without limitation, short-term, investment grade, interest bearing instruments and United States government securities. We may also use a portion of the net proceeds for the investment in strategic partnerships and possibly the acquisition of complementary businesses, products, and/or technologies, although we have no present commitments or agreements for any specific acquisitions or investments.

**DESCRIPTION OF THE BUSINESS**

The following business description is made as of the time of this Offering Circular and may change course as the Company evolves.

**Overview**

The incorporation of the company that is today, Immersed Inc., took place on January 4, 2017, as a Delaware Corporation under the name of "Arajoy, Inc.". The company initially focused on building computer vision-driven AI models for autonomous drones and human-pose estimation algorithms. In 2017, the company changed its focus to working on what Immersed does today. The company changed its name to "Immersed Inc." on November 29, 2017.

Our mission is to become a leading provider of AR/VR productivity solutions that is building artificial intelligence ("AI") productivity solutions to digitally transform the working environment to enhance worker and company efficiency. Founded in 2017 and headquartered in Austin, Texas, Immersed has developed a spatial computing software optimized for enterprise that allows users to work full-time with their team in virtual AR/VR offices, which is available on several AR/VR app stores. Our Immersed application remains a cornerstone of our business. Additionally, Immersed has developed with industry partners a purpose-built spatial computing hardware called the Visor that is 70% lighter weight and 70% less expensive than other 4K-per-eye headsets. The Visor is a key differentiator in our hardware portfolio, boasting an ultra-lightweight, ergonomic design and high-resolution displays that set it apart from gaming-centric alternatives. In addition to that, Immersed is developing an AI assistant named "Curator" that is optimized for enterprise office productivity using multi-modal large language models (LLMs). With Curator, we are pioneering proactive, context-aware support that acts as a "second brain" for managing tasks and retrieving critical information.

With our innovative spatial computing software, integrated with the Visor and AI-driven solutions, we believe Immersed is well positioned to help organizations adapt to the changing dynamics of the workforce, as well as offer new solutions to enhance collaboration and individual productivity, and equip employees with the skills and capabilities needed for the jobs of the future. Immersed has a limited operating history and has not generated a profit.

The mailing address of Immersed's principal executive office is 106 E. 6th St. STE 900-202, Austin, Texas 78701.

**Products and Technology**

We believe that Immersed's workplace productivity application, which allows users to work in a virtual office environment, is one of the most used enterprise applications within AR/VR measured by the number of hours spent in the application. Using its proprietary intellectual property that has been developed over the last seven years, Immersed is, to our knowledge, the only application that connects any AR/VR headset to any computer operating system (Mac, PC, or Linux) and provides up to five software-emulated virtual monitors.

Immersed's application is compatible with third-party hardware provided by companies like Meta, Microsoft, Apple, HTC, ByteDance, and SteamVR devices. The Immersed application allows users to optimize focus and productivity independent of the physical location where they choose to work. This can be done individually or in collaboration with a team where users can share multiple screens and whiteboard together.

As employees work within Immersed's spatial computing application, it is intended that Curator will have the unique capability to index and analyze everything that the "virtualized" workers see, say, hear, or interact with while maintaining individual privacy and security. Curator will observe the information that the user experiences during meetings or interactions with colleagues, curate that information, and summarize it for later use. We expect that Curator will provide a mechanism for the information to be recalled using natural language prompts interpreted by the LLM in order to return the best context-related answer. We believe that using this mechanism will help employees be more productive in the tasks that require repetition but low cognitive load, while freeing them up to concentrate on higher-value work that requires a higher cognitive load. We expect that the outcome for the employer will be higher productivity and cost savings.

Immersed has deployed existing class-leading, industry-proven software to deliver a seamless virtual experience. Immersed's spatial computing software is built on the ubiquitous Unity game engine and follows OpenXR standards to easily port to any future third-party AR/VR hardware. Immersed also leverages Microsoft's Mixed Reality Toolkit 3 which enables hand-tracked interactions to feel fluid when interacting with virtual user interface elements. Immersed has partnered with Qualcomm to adopt their Snapdragon Spaces SDK which accelerates performance for eye-tracking, face-tracking, hand-tracking, simultaneous localization and mapping (SLAM), visual see-through (VST), also known as "passthrough", and other computationally demanding processes, leading to an overall smoother experience.

In 2022, Immersed became hardware agnostic, being able to be run on any compatible third-party hardware, and its application can now be downloaded from all major AR/VR app stores.

In 2023, Immersed began development with industry partners on a work-focused AR/VR headset, the "Visor," which is higher resolution than Apple Vision Pro, 70% lighter weight, and 70% less expensive. Owning the entire technology stack, from the software to the hardware, Immersed is enabled to have one of the world's most valuable data engines for the imminent AI future.

In 2024 and currently, Immersed continued refining Visor based on demoing it to prospective enterprise customers, and also began development of Curator AI.

**Business Model**

Our business model is built on a three-pronged approach:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·  ***Software*** :
 our immersive application on the multiple AR/VR app stores delivers high-performance virtual workspaces that enhance collaboration
 and individual productivity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·  ***Hardware*** :
 the Visor is purpose-designed for work, boasting an ultra-lightweight, ergonomic design and high-resolution displays that set it
 apart from gaming-centric alternatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·  ***AI Integration*** :
 with our AI assistant, Curator, we are pioneering proactive, context-aware support that acts as a "second brain" for
 managing tasks and retrieving critical information.

Immersed has evolved from its initial consumer model to also include enterprise clients business to business. We do still maintain a consumer offering.

In June 2019, Immersed released a 3-tiered SaaS model: free, $14.99 one-time payment, and $9.99/ month, with each higher tier having an increased set of features. Once Immersed was released to the Meta Oculus App Store in August 2020, that model was iterated to a 2-tiered software as a service (SaaS) model: Free and $14.99/month (called "Elite"). In July 2022, Immersed decided to discontinue this subscription model.

In September 2023, Immersed released a new subscription tier for $4.99/month.

Immersed's focus on enterprise monetization consists of three revenue streams that correspond to its three solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The first revenue stream
 is expected to be similar to the tiers that were released in the Meta Oculus App Store, but specifically tailored for enterprise
 customers. We expect that this will have additional sets of features that are relevant to teams at companies, such as User Access
 Management, administrator privileges, custom virtual office floor plans, Mobile Device Management, and increased security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The second revenue stream
 is expected to be from Immersed's sales of "Visor", which has been developed with the assistance of industry partners,
 with initial deliveries in 2025. We expect to sell at scale to enterprise customers to complement our revenue stream from our spatial
 computing software. We intend that Visor will provide a seamless and comfortable user experience, optimized specifically for enterprise
 work-related tasks. By combining hardware and software expertise, Immersed is aiming to deliver a vertically integrated solution
 that should transform the way employees work, increasing collaboration and driving productivity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The third revenue stream
 is expected to be from monetizing "Curator" and will be charged per user, which we believe would complement our hardware
 and software solutions both from Immersed's own vertically integrated solutions and third-party hardware.

More recently, Immersed is implementing innovative monetization strategies, including, for example, reducing the upfront cost for the hardware, Visor, to approximately $500 if the customer commits to a one-year subscription model, to drive recurring revenue and broaden market access.

**Market Size**

The demand for augmented and virtual reality (XR) is growing, not just in the entertainment landscape but in the enterprise space as well, according to Morder Intelligence. Our platform already serves over 1.4 million unique users and has generated billions of social media views organically. This is because Immersed not only serves the spatial computing market, but also serves the general computing market. As hybrid and remote work models gain tractions—and as emerging applications such as remote physical labor and humanoid robotics come to the forefront—the potential market size continues to grow dramatically. Our evolving customer base now includes not only early teach adopters but also professionals across multiple industries, confirming the expansive opportunity ahead. According to the Extended Reality Market Report issued by Mordor Intelligence in 2025, XR market will grow with a CAGR of 40.61% from 2025-2030. The study suggested that a significant portion of the XR market growth would come from the enterprise space, where businesses are now moving more rapidly into the age of digital transformation. Although there has long been potential for XR in the enterprise environment, we believe that most organizations have only begun to see the technology's true value during 2020, as a result of the COVID-19 pandemic.

COVID-19 pushed companies outside of their traditional environments, shutting down physical locations, and reducing the ways that companies could interact, both internally and externally. Although there has been a return to the office for some companies, in this new landscape that includes remote working, XR is emerging as the solution to help bridge the gap separating employees.

We believe that the growing demand for immersive and collaborative technologies is fueling the adoption of Immersed's solutions. Based on market research published by Enterprise Collaboration Market in January 2025, the global enterprise collaboration market was valued at $54.5 billion in 2023 and is expected to surpass $154.96 billion by the end of 2033, driven by the need for seamless remote collaboration, enhanced productivity, and improved communication across geographically dispersed teams. We believe Immersed is poised to capture a significant share of this market by offering cutting-edge solutions that enable organizations to unlock the full potential of their workforce.

According to Next Move Strategy Consulting's report from 2025, the market for AI is expected to show strong growth in the coming decade – its value of nearly $225 billion in 2024 is expected to grow five times by 2030, up to nearly $1.2 trillion. In addition, according to the World Economic Forum, by 2030, an estimated nine million jobs will be displaced by AI, emphasizing the urgent need for reskilling and upskilling the workforce. Furthermore, according to The Business Research Company's report from 2025, the current global corporate training market size in 2024 was approximately $398.8 billion and with a compound annual growth rate (CAGR) of 4.7%. This is a key market for Immersed solutions that fit well within the context of training new employees and retraining existing employees.

**Customers**

Immersed has had over 1.4 million unique users since inception, with users spending more than 1,600 years in our application. See "Management's Discussion and Analysis of Results of Operations" for more information.

**Product Development**

In an ever-evolving industry, the key to our long-term success and growth lies in our commitment to embracing technological advancements. As pioneers in spatial computing, we understand the critical importance of staying ahead of the curve, and our executive management diligently fosters an environment of innovation and adaptability. We remain vigilant in exploring and leveraging new technologies that can augment our product and service offerings, propelling us into new dimensions of efficiency and user experience. Our multi-year product roadmap is a testament to this dedication, encompassing a strategic vision that centers around expanding the application of our cutting-edge proprietary spatial computing hardware, while continually enhancing our flagship Immersed application and empowering our workforce with AI-driven assistance. We intend to deliver a comprehensive ecosystem that reshapes the way professionals work, ensuring they have access to the most advanced tools and capabilities in the ever-expanding landscape of remote collaboration.

***Immersed Application: Revolutionizing Remote Collaboration***

We believe our flagship product, the Immersed application, can be at the forefront of revolutionizing remote collaboration. We are dedicated to continually enhancing the application to provide users with a seamless and intuitive virtual workspace. As our product development cycles are tightly integrated and informed by user data, user feedback, and user interviews, our product roadmap for the Immersed application includes ongoing improvements to enhance user experience and productivity, in addition to incorporating user-requested integrations. We are actively developing features that enable more efficient virtual meetings, streamlined project management, and innovative ways to interact with digital content and co-workers. One of our Immersed application capabilities is to transform any compatible AR/VR headset into a multi-screen workstation by providing up to five virtual displays that are intuitively aligned and persistently available throughout the workday. This tool not only elevates individual productivity, but also fosters dynamic, real-time collaboration—whether for pair programming, creative brainstorming, or executive strategy sessions—mimicking the benefits of physical co-location in a virtual space. As we expand our application's capabilities, we are committed to ensuring that it remains a leading-edge solution for enterprises seeking to optimize their remote work capabilities. This also includes capabilities for enterprise companies to recreate their real-world offices in the Immersed application.

***Visor: Unlocking a New Dimension of Work***

Complementing our Immersed application, our work-optimized spatial computing hardware, Visor, is designed to elevate the immersive experience for professionals. We have developed and intend to continuously refine Visor's design and capabilities to offer users comfort and performance during extended wear. The Visor is developed specifically for workplace productivity, its features include: (i) ultra-lightweight and ergonomic design—weighing only six ounces and with a thickness of roughly 41 millimeters (less than half that of many competing headsets)—the Visor is engineered for all-day comfort and ease of use; (ii) high-resolution visuals—delivering 4K resolution per eye, it ensures clear, detailed images critical for productivity tasks; and (iii) enhanced user experience—its sleek, unobtrusive design makes it suitable for public use, and upcoming enhancements such as slip-in prescription lens inserts will further broaden its appeal.

The Visor product roadmap is expected to encompass advancements in display technology, enhanced tracking precision, and ergonomic design improvements. We aim to create a next-generation device that seamlessly integrates with the Immersed application, creating a cohesive and efficient workflow for remote collaboration. As we forge ahead, our goal is to continuously improve the quality of the hardware while simultaneously reducing costs for manufacturing. Development of Visor commenced in March 2023. Since that time, Immersed has co-developed initial units with a high-volume hardware manufacturer and is working with them to design manufacturing lines to produce Visor at scale. Immersed received $500,000 in pre-orders for Visor within the first week of launching pre-orders and began initial deliveries of Visor in 2025, with fulfillment through 2026. The anticipated distributions are subject to completion of the manufacturing of Visor within the anticipated schedule. There can be no assurance that the manufacturing and distribution of Visor will not experience delays or other setbacks. In January 2024, Immersed introduced Visor Plus, a membership bundle for new Visor customers that lowers the upfront hardware price and includes added benefits to enhance the user's experience. Immersed intends to honor its pre-orders from customers who purchased the Visor at a higher cost by offering 12 months of Visor Plus free in addition to the features they will already receive. A Visor Plus membership is expected to be issued with the Visor for all orders placed from February 2024. A Visor Plus membership is expected to include Immersed Pro features (and early access to beta features), standard warranty during membership, Curator professional AI assistant, customizable 3D work spaces, discounts on Visor accessories, extended 3 hour battery, VIP co-working spaces, priority support and a priority trade-in program.

***AI-Driven Assistance: Empowering the Workforce***

Immersed is also about empowering the workforce with AI-driven assistance. Curator is at the heart of our next-generation productivity offerings. Built on state-of-the-art LLMs, Curator will feature: (i) proactive task management—it intelligently reviews past interactions and meeting data to suggest actionable tasks and schedule adjustments; (ii) contextual awareness—by combining virtual data with real-world sensor inputs, Curator can help users locate misplaced items and recall important details, effectively acting as an ever-present "second brain;" and (iii) future-proof capabilities—the continuous data stream from our devices sets the stage for extending AI functions into future applications such remote-controlled humanoid robotics, further expanding the practical applications of our platform.

We expect our AI solution, "Curator," will function as a knowledgeable and proactive AI assistant for knowledge workers, but this will require secure training data at scale. We are dedicated to developing and then expanding Curator's capabilities to provide users with instant access to expert knowledge, proactive task suggestions, and personalized support. In our product roadmap for AI-driven assistance, we are focused on developing Curator's ability to comprehend and contextualize virtualized work experiences. As time progresses, Immersed intends to work to improve the cost of training while increasing the throughput of data that will greatly improve the precision and utility of our AI.

**Growth Strategy**

***Enterprise Partnerships: Goal of Uniting Hardware, Channel Sales, and Expansion***

At Immersed, one of our key growth strategies lies in fostering strategic partnerships with enterprise partners, focusing on securing long-term market leadership. Our approach goes beyond hardware development: it encompasses sales channel and a dynamic land-and-expand model. By creating alliances with major players in the enterprise sector, we aim to create a powerful ecosystem that amplifies our reach and impact. Collaborating with renowned hardware manufacturers, we aim to ensure seamless integration of Visor into existing enterprise setups, enhancing the immersive experience for professionals worldwide.

Furthermore, our channel sales strategy targets diverse markets and industries, leveraging established networks to bring Immersed's spatial computing solution to a broader audience. Through carefully orchestrated land-and-expand tactics, we expect to secure new customer relationships and fortify our presence with existing clients. We believe this multi-pronged approach empowers Immersed to establish strong and lasting connections, potentially driving widespread adoption of our revolutionary spatial computing technology across enterprises.

***Consumer Adoption: Goal of Uniting Ecosystems, Expanding Brand Awareness Globally***

As part of our growth strategy, Immersed will aim to penetrate all major headset ecosystems. As consumer adoption grows, we expect brand awareness and seamless user connectivity across devices to increase with it. Our platform has garnered significant traction with over 1.4 billion social media views in 2024 alone and a growing base of satisfied users, achieved without reliance on paid advertising. Our dedication to providing an immersive experience extends to users of various AR/VR headsets, proving essential hardware-agnostic software that connects users regardless of what ecosystem they are already part of.

Through currently growing SEO moats and strategic integration with leading headset ecosystems, we intend to create a unified platform where users can collaborate effortlessly, irrespective of their device preferences. We believe this holistic approach to consumer adoption will allow us to reach a broader audience and establish Immersed as the go-to solution for remote collaboration, virtual meetings, and enhanced individual productivity.

We plan to continue expanding our user base across both consumers and enterprise sectors. Additionally, we are actively exploring applications beyond traditional office productivity, including remote physical labor and the integration of intelligent robotics, leveraging our unparalleled data insights and hardware.

***AI Adoption: Curator's Path to Potential Viral Adoption and Growth***

By unlocking value and streamlining the workflow of knowledge workers using data that no other company has access to, Curator has the potential to drive the viral growth of AI-empowered workers. We believe that the ability that it will have to make jobs significantly easier and more efficient will inspire users to share their experiences through word-of-mouth referrals, potentially fostering organic expansion and widespread adoption. Immersed will aim to make it very easy for users to share their experiences, whether it be through easy ways to export experiences to social media or referral incentives.

As professionals discover the ease and productivity gains afforded by Curator's AI-powered assistance, our hope is that the appeal of Immersed's ecosystem will increase. If we achieve our aim of making Curator an indispensable tool in the work arsenal of countless users, we expect that it will act as an ambassador for Immersed, generating organic momentum for our entire suite of products. We are committed to developing and then continually enhancing Curator's capabilities and intelligence, solidifying its position as the ultimate AI assistant for knowledge workers and the catalyst for Immersed's exponential growth.

**Sales and Marketing**

Moving ahead, Immersed is focused on advancing its sales and marketing endeavors with a strategic approach. We aim to expand our market presence and capitalize on hardware development and channel sales opportunities. Our commitment to consumer adoption will continue, as we plan to extend our platform onto various headset ecosystems, bolstering brand awareness and fostering user connections across devices. Immersed's content team also releases viral social media content to spread awareness of its products. In parallel, we believe that our AI-driven workforce augmentation solution, Curator, will play a pivotal role in driving organic growth through word-of-mouth referrals and user-generated social media content, unlocking new market opportunities.

We continue to work with bulk orders and strategic partnerships with major corporations, reinforcing our position as the go-to solution for large-scale, remote, and hybrid work environments.

Through these cohesive efforts, Immersed believes it is positioned to strengthen its market position as a leading player in spatial computing and enterprise AI. Our sales approach is highly adaptable and responsive to both consumer and enterprise needs,

**Research and Development**

Our research and development activities have primarily been focused on enhancing our spatial computing software, developing our AI assistant "Curator," and modernizing our hardware offering "Visor," which is being developed in partnership with a major AR/VR manufacturing company. Part of our research and development consists of gathering user feedback, which then informs swift, iterative improvements.

Our management believes that we must dedicate a significant amount of resources to research and development in order to develop our offerings and then maintain a competitive position in the market. Our products intersect many emerging fields including AI, spatial computing, augmented reality, and space management, and we plan to continue to innovate and patent new methods to solve problems for our customers. Our ability to rapidly iterate and respond to customer feedback ensures that our research and development practices create fast solutions.

**Competition, Strengths, and Differentiation**

We both compete and aim to collaborate and partner with companies such as Apple, Meta, Microsoft, Google, and Samsung. While aiming to co-develop mutually beneficial projects with these companies, we may also simultaneously have competing offerings with them that appeal to similar but different audiences.

We believe that we offer a unique and differentiated approach to the market that our competition is currently not positioned or not capable of servicing, as described below.

*Our Platform.* We understand today's workplace is a collection of spaces, people, activity-based work, virtual and physical interactions, culture, experiences, and the technology that binds them. Immersed has built a solution that we believe helps enterprise companies build culture, foster innovation, empower employees, and create equitable experiences for a distributed workforce that is cross-platform.

*Connectivity and workplace experience.* The Immersed platform can connect every employee in an organization whether they are in the office or remote working. We focus on improving the workplace experience and helping companies deliver that experience direct to employees to help attract and retain top talent, keep employees engaged and invested in company culture, and support them through a hybrid workforce model that is easy to navigate and easy to use.

*Comprehensive Uses.* The Immersed technology supports a multitude of uses for enterprise organizations including but not limited to hybrid remote work experience, conference and meeting rooms, individual productivity, analytics, and security, across numerous industries.

*Visor*. Our aim is to seamlessly integrate Visor with our spatial computing platform and thereby empower professionals to work in an immersive environment with one-fifth of the weight on their heads compared to alternative solutions. Furthermore, our plan for Visor is that it should also cut costs in ways that competitive products are not incentivized to do. Unlike competitors focused on general-purpose VR, we expect Visor to be meticulously optimized for the modern workforce. We believe its scalability will accommodate client growth and diverse applications, from workplace experiences to meeting room reservations, analytics, and security. We believe Visor will reflect our commitment to leading spatial computing's future, and expect that it will establish Immersed as a driving force in the enterprise collaboration landscape.

*Scalability*. We are building to support customers' expanding needs and uses. We believe our solutions will allow for employee growth and will aid onboarding and employee orientation.

We believe our integrated strategy is a major competitive advantage in an increasingly competitive field.

**Intellectual Property**

We are highly conscious of the need to protect our core technology and intellectual property. Given the speed of current innovation and the ongoing iterations in our technology and products, we need to time any future patent applications carefully. We intend to protect our intellectual property rights, both in the United States and abroad, through a combination of patent, trademark, copyright, and trade secret laws, and will continue to employ nondisclosure and invention assignment agreements with our independent contractors employees and non-disclosure agreements with our commercial partners and vendors. Unpatented research, development, know-how, and engineering skills make an important contribution to our business, but we will pursue patent protection when we believe it is possible and consistent with our overall strategy for safeguarding intellectual property.

The table below summarizes our trademark applications to date:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Country Name** | **Trademark** | **Application No.** | **Filed Date** | **Registration No.** | **Status** |
| United States | Immersed | 98136225 | 2023.08.16 | 7690471 | Registration expire on 2030.02.11 |
| United States | Immersed | 98615375 | 2024.06.24 |  | Pending |
| United States | Curator | 98118228 | 2023.08.04 |  | Pending |
| United States | Visor | 98118204 | 2023.08.04 |  | Pending |

---

The table below summarizes our patent applications to date:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Country Name** | **Title** | **Application No.** | **Filed Date** | **Status** |
| United States | Augmented and Virtual Reality Visor | 63/747,679 | 2025.01.21 | Pending |
| United States | AR/VR headset lens configuration | 63/636,402 | 2024.04.19 | Pending |
| United States | Artificial intelligence (ai)-based virtual assistant | 63/746,565 | 2025.01.17 | Pending |

---

**Employees**

Our employees are critical to our success. As of the date of this Offering Circular, we had a total of 27 team members, 17 of which are full-time employees. Our team members include one management personnel, three marketing personnel, 21 technical and engineering personnel, one customer service personnel, and one finance, legal, human resource, and administration personnel. To date, we have not experienced any work stoppages and consider our relationship with our employees to be in good standing. None of our employees are represented by a labor union or are subject to a collective bargaining agreement.

**Government Regulation**

In general, we are subject to numerous federal, state, and foreign legal requirements on matters as diverse as data privacy and protection, employment and labor relations, immigration, taxation, anti- corruption, import/export controls, trade restrictions, internal and disclosure control obligations, securities regulation and anti-competition.

Violations of one or more of these diverse legal requirements in the conduct of our business could result in significant fines and other damages, criminal sanctions against us or our officers, prohibitions on doing business, and damage to our reputation. Violations of these regulations or contractual obligations related to regulatory compliance in connection with the performance of customer contracts could also result in liability for significant monetary damages, fines and/or criminal prosecution, unfavorable publicity and other reputational damage, restrictions on our ability to compete for certain work and allegations by our customers that we have not performed our contractual obligations. To date, compliance with these regulations has not been financially burdensome.

**Export and Trade Matters**

We are subject to various trade restrictions, including trade and economic sanctions and export controls, imposed by governments around the world with jurisdiction over our operations. For example, in accordance with trade sanctions administered by the Office of Foreign Assets Control and the U.S. Department of Commerce, we are prohibited from engaging in transactions involving certain persons and certain designated countries or territories, including Cuba, Iran, Syria, North Korea and the Crimea Region of Ukraine. In addition, our products are subject to export regulations that can involve significant compliance and administrative time to address. In recent years the United States government has a renewed focus on export matters. Our current and future products may be subject to these heightened regulations, which could increase our compliance costs. We are subject to anti-corruption laws and regulations imposed by governments around the world with jurisdiction over our operations, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010, as well as the laws of the countries where we do business.

**Legal Proceedings**

We are not presently a party to any litigation. However, we may from time to time be 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.

**DESCRIPTION OF PROPERTY**

Our main office is located at 106 E. 6<sup>th</sup> St. STE 900-202, Austin, Texas 78701.

We do not currently lease or own any real property.

**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 our operations, together with our financial statements and the notes thereto appearing elsewhere in this Offering Circular. This discussion contains forward-looking statements reflecting our current expectations, whose actual outcomes involve risks and uncertainties. Actual results and the timing of events may differ materially from those stated in or implied by these forward-looking statements due to a number of factors, including those discussed in the sections entitled "Risk Factors" starting on page 6, "Cautionary Statement Regarding Forward-Looking Statements" starting on page iii, and elsewhere in this Offering Circular. Please see the notes to our Financial Statements for information about our Significant Accounting Policies.

**Overview**

Our mission is to become a leading provider of AR/VR productivity solutions that is building artificial intelligence ("AI") productivity solutions to digitally transform the working environment to enhance worker and company efficiency. Founded in 2017 and headquartered in Austin, Texas, Immersed has developed spatial computing software optimized for enterprise, that allows users to work full-time with their team in virtual AR/VR offices, which is available on several AR/VR app stores. Our Immersed application remains a cornerstone of our business. Additionally, Immersed has developed with industry partners a purpose-built spatial computing hardware called the Visor that is 70% lighter weight and 70% less expensive than other 4K-per-eye headsets. The Visor is a key differentiator in our hardware portfolio, boasting an ultra-lightweight, ergonomic design and high-resolution displays that set it apart from gaming-centric alternatives. In addition to that, Immersed is developing an AI assistant named "Curator" that is optimized for enterprise office productivity using multi-modal large language models (LLMs). With Curator, we are pioneering proactive, context-aware support that acts as a "second brain" for managing tasks and retrieving critical information. With our innovative spatial computing software, integrated with the Visor and AI-driven solutions, we believe Immersed is well positioned to help organizations adapt to the changing dynamics of the workforce, as well as offer new solutions to enhance collaboration and individual productivity, and equip employees with the skills and capabilities needed for the jobs of the future. Immersed has a limited operating history and has not generated a profit.

**Our Business Model**

Immersed provides immersive virtual reality offices where customers can spawn multiple virtual monitors and collaborate with others in the same virtual space. Immersed has evolved from its initial consumer model to also include enterprise clients business to business. We do still maintain a consumer offering.

During 2023, Immersed began development of Visor, an AR/VR headset to be used in conjunction with a laptop and designed for work. Immersed announced the headset in August 2023 and started pre-orders in September 2023. Immersed received $500,000 in pre-orders for Visor within the first week of launching pre-orders and began initial deliveries of Visor in 2025, with fulfillment through 2026. The anticipated distributions are subject to completion of the development and manufacturing of Visor within the anticipated schedule.

There can be no assurance that the development, manufacturing and distribution of Visor will not experience delays or other setbacks. In January 2024, Immersed introduced Visor Plus, a membership bundle for new Visor customers that lowers the upfront hardware price and includes added benefits to enhance the user's experience. Immersed intends to honor its pre-orders from customers who purchased the Visor at a higher cost by offering 12 months of Visor Plus free in addition to the features they will already receive. A Visor Plus membership is expected to be included with the delivery of the Visor for all orders placed from February 2024.

**Consumer Revenue**

Immersed enters into monthly and annual subscription plans with its customers. Immersed recognizes subscription revenue ratably over the term of the subscription agreement, as its performance obligation is satisfied over time. Subscription revenue accounted for approximately 41% and 71% of Immersed's total revenue for the six months ended June 30, 2025 and for the year ended December 31, 2024, respectively, and 100% of Immersed's total revenue for the year ended December 31, 2023. Immersed released a new subscription plan for consumers in September 2023 and it can be purchased or earned through app usage. Immersed plans to release a new subscription for enterprise customers in 2026 that will include additional collaboration features, user-access management dashboards for administrators, and other features that are important for remote hybrid teams.

The majority of Immersed's subscription services are billed either monthly or annually in advance and are typically non-refundable. Consequently, for month-to-month subscriptions, Immersed recognizes the revenue monthly, and for annual or longer-term subscriptions, Immersed records deferred revenue on its consolidated balance sheet and recognizes the deferred revenue ratably over the subscription term.

**Enterprise Revenue**

As Immersed shifts focus to enterprise, monetization will consist of three revenue streams that correspond to its three solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· AR/VR Immersed Software
 Subscriptions — The first revenue stream is expected to be similar to the subscriptions that were released in other App Stores,
 but specifically tailored for enterprise customers. This is expected to have additional sets of features that are relevant to teams
 at companies, such as User Access Management, administrator privileges, custom virtual office floor plans, Mobile Device Management,
 and increased security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· AR/VR Headset Sales —
 The second revenue stream is expected to be from sales of Immersed's "Visor", which began development in March 2023.
 Immersed plans to continue Visor development with industry partners and then sell at scale to enterprise customers. This is expected
 to complement Immersed's revenue stream from its spatial computing software. Visor is expected to provide a seamless and comfortable
 user experience, optimized specifically for enterprise work-related tasks. By combining the hardware and software expertise, Immersed
 expects to deliver a vertically integrated solution that should transform the way employees work, increasing collaboration and driving
 productivity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· AI Services Revenue —
 The third revenue stream is expected to be from monetizing "Curator" – Immersed's AI assistant, computer-using
 agent – and will be charged per user. Curator is expected to complement the hardware and software solutions both from Immersed's
 own vertically integrated solutions and third-party hardware.

**Key Metrics**

Immersed monitors the following key metrics to help evaluate its business, identify trends affecting the business, formulate business plans, and make strategic decisions. The calculation of the key metrics discussed below may differ from other similarly titled metrics used by other companies, analysts, investors and other industry participants.

***New Unique Users ("NUUs")***

Immersed defines a NUU as an individual that has downloaded the Immersed software application and opened it for the first time during the applicable measurement period. Immersed has had over 1 million unique users since inception. We view our number of NUUs as a key indicator of our market penetration, and the strength of our brand awareness and intend to consistently track this data on a monthly basis. Management believes monitoring the growth of unique users helps it evaluate the growth of our business and future revenue trends. We believe this metric would be valuable for investors because it illustrates the growth of unique users over a specified period of time. We believe the number of free unique users on our platform is important because, not only may free users become paid users on our platform over time, but they also add presence to the Immersed community co-working spaces and share their experiences on social media which may help Immersed with its word-of-mouth advertising.

***Shipped Visors***

Immersed defines a Shipped Visor as a Visor that has been ordered, manufactured and shipped to a customer during the applicable measurement period. Immersed began development of Visor in March 2023 and began initial deliveries in 2025. We view our number of Shipped Visors as a key indicator of our company performance and intend to consistently track this data on a quarterly basis. We believe this metric would be valuable for investors because it illustrates Company performance over a specified period of time. We believe that the development of the Visor, not only will grow revenue through sales of the Visor but will increase the total number of customers since we believe the Visor will have better retention than currently available headsets due to being higher resolution and lighter-weight, enabling users to work in their headset more frequently and consistently.

**Non-GAAP Financial Measures**

In addition to our results of operations below, we report certain financial measures that are not required by, or presented in accordance with, U.S. generally accepted accounting principles ("GAAP"). These measures have limitations as analytical tools when assessing our operating performance and should not be considered in isolation or as a substitute for GAAP measures, including gross profit and net income. We may calculate or present our non-GAAP financial measures differently than other companies who report measures with similar titles and, as a result, the non-GAAP financial measures we report may not be comparable with those of companies in our industry or in other industries.

***Non-GAAP Loss from Operations***

We calculate non-GAAP loss from operations as GAAP loss from operations excluding stock-based compensation expense. We believe this measure provides our management and investors with consistency and comparability with our past financial performance and is an important indicator of the performance and profitability of our business. Additionally, this measure eliminates the effects of stock-based compensation, which we do not consider to be indicative of our overall operating performance.

The following table presents our non-GAAP loss from operations for each of the periods presented:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **As of June 30,** | **As of June 30,** | **As of December 31,** | **As of December 31,** |
| <br> **(in thousands)** | **2025** | **2024** | **2024** | **2023** |
| GAAP loss operations | $(1876) | $(7112) | $(14269) | $(5308) |
| Add back: Stock based compensation expense, net of amounts capitalized | $34 | $144 | $220 | $216 |
| Non-GAAP loss from operations | $(1842) | $(6968) | $(14049) | $(5092) |

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***Free Cash Flow***

We calculate free cash flow as net cash used in operating activities less purchases of property and equipment and capitalized software and development costs. We believe this metric provides our management and investors with an important indicator of the ability of our business to generate additional cash from our business operations or our need to access additional sources of cash, in order to fund our operations and investments.

The following table presents our free cash flow for each of the periods presented:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **As of June 30,** | **As of June 30,** | **As of December 31,** | **As of December 31,** |
| <br> **(in thousands)** | **2025** | **2024** | **2024** | **2023** |
| **Net cash used in operating activities** | $(1646) | $(3092) | $(5942) | $(4717) |
| Less: Purchases of property and equipment, and intangibles | $(9) | $(12) | $(17) | $(215) |
| Free (Negative) cash flow | $(1655) | $(3104) | $(5959) | $(4932) |

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**Factors Affecting our Performance**

We believe that our growth and financial performance are dependent upon many factors, including the key factors described below, which are in turn subject to significant risks and challenges, including those discussed below and in the section of this Offering Circular entitled "Risk Factors."

***Retention and Expansion of Existing Users***

Our ability to increase revenue depends in part on retaining our existing users and expanding their use of our platform. We offer an integrated, comprehensive set of hybrid and remote work solutions including up to five virtual monitors, distraction-free environments and an assortment of remote collaboration tools. We have subscription plans to meet the needs of our users, including a free and a paid subscription plan, and we are able to provide customized subscription plans tailored to the specific needs of large enterprises. Our desire to increase our value proposition to our customers has led us to the development of the Immersed Visor, the first AR/VR headset optimized for work, to better serve the entirety of the hybrid and remote work experience. As a result, we believe we are positioned to grow our revenue with our existing users as our platform continues to help them to more effectively and efficiently work with hybrid and remote teams.

***Adoption of our Solutions by Enterprise Customers***

We are pioneering the transformation of the work world from in-office to hybrid and remote. In conjunction with our software platform, we think that mass adoption of our hybrid and remote work solutions will be dependent on the successful development and distribution of the Immersed Visor, optimized for work, to enterprise customers. Visor has been developed with industry partners and we plan to sell it at scale to enterprise customers. Visor sales are expected to complement our revenue stream from our spatial computing software. We aim to create a next-generation device that seamlessly integrates with the Immersed application, creating a cohesive and efficient workflow for remote collaboration. As we forge ahead, our goal will be to develop and then continuously improve the quality of the hardware while simultaneously reducing costs for manufacturing. By combining hardware and software expertise, Immersed expects to deliver a vertically integrated solution that can transform the way employees work, increasing collaboration and driving productivity. We expect operating margins to improve over the long term as we continue to scale and gain higher operating leverage.

***Investing in Research and Innovation for Growth***

We plan to continue to invest in research and development to improve our Immersed virtual and augmented reality application with the goal of supporting seamless use of our platform with our computer-based customers' work needs. We plan to concentrate on in-house innovation and expect to consider acquisitions on an opportunistic basis. We have a robust pipeline of new product releases. For example, in March 2024, we began development of Curator, with internal betas beginning in December 2024 and external betas beginning in March 2025. In March 2023, we began development on the Immersed Visor, the first AR/VR headset specifically designed for work. In November 2022, we started research and development to launch Immersed on the Bytedance Pico 4 headset (except for China), which launched in March 2023, making our virtual reality offices available to additional markets in Europe and Asia. We launched our application on the Apple Vision Pro in May 2024. In October 2022, we launched Immersed on the Meta Quest Pro headset, making our virtual reality offices available on the headset with the highest specs for resolution and color passthrough to date, enabling users to significantly increase time spent using the application for work. In March 2022, Immersed released a new feature to enable keyboard tracking within the Immersed application, bringing a user's keyboard inside the application, no longer requiring touch-typing.

We see significant potential for future user growth as we release more products and create additional upselling opportunities through sale of additional features — extra virtual screens, virtual environments and other features. We also continue to strengthen our AI and ML capabilities as we enlarge our user data library, enabling continuous improvement of the fidelity and accuracy of our use of multi-modal large language models and enhancing the commercial value from data-driven analytics. These investments may lower our operating profitability in the near term, but we expect our operating margins to improve over the long term as we solidify our scale and reach.

While we plan to concentrate on in-house innovation, we may also pursue acquisitions of products, teams, and technologies on an opportunistic basis to further expand the functionality of and use cases for our platform. As with organic research and development, we adopt a long-term perspective in the evaluation of acquisition opportunities in order to ensure sustainable value creation for our customers.

**COMPONENTS OF RESULTS OF OPERATIONS**

**Revenue**

Our revenue consists of subscription revenue and software contract service revenue. Immersed provides virtual reality offices for remote teams and individuals. Currently, Immersed's technology is available on the following platforms: Meta Quest, HTC, Pico, and Apple Vision Pro.

Immersed enters into monthly and annual subscription plans with our customers to provide immersive virtual reality offices where customers can spawn up to five virtual monitors and can collaborate with others in the same virtual space. We recognize revenue ratably over the term of the agreement, as our performance obligation is satisfied over time.

**Deferred Revenue**

Our deferred revenue consists of subscription revenue collected but not yet earned for the Immersed virtual reality application annual subscriptions. Additionally, we began taking pre-order deposits in September 2023 for the Visor, which will be recognized as revenue when orders are ready for fulfillment.

**Cost of Revenue**

Cost of revenue consists of direct costs of maintaining the Immersed virtual reality (AR/VR) software application, software subscriptions, hosting, servers, storage costs, supplies, and direct cost of any merchandise sold.

**Operating Expense**

Our operating expenses consist primarily of AR/VR product expenses, marketing and advertising, and general and administrative expenses. Personnel costs are the most significant component of operating expenses and consist of salaries, benefits, bonuses, and stock-based compensation.

 *AR/VR Product Expenses* — AR/VR product expenses are expensed as incurred and include expenses related directly to producing and maintaining the Immersed virtual reality (AR/VR) software application and products accessed within it. It also includes expenses directly related to developing Immersed's work-focused AR/VR headset, Visor. Within the Immersed virtual reality (AR/VR) software application, there are both paid-use and free-use products.

 *Digital asset impairment losses (gain on sale), net* — Immersed's digital assets are comprised solely of Ethereum and USDC, and are accounted for as indefinite-lived intangible assets in accordance with Accounting Standards Codification ("ASC") 350, Intangibles — Goodwill and Other.

*General and administrative expenses* — General, and administrative expenses consist primarily of personnel-related expenses associated with our finance, information technology, human resources, and administrative employees, including salaries, benefits, bonuses, and stock-based compensation. General and administrative expenses also include external legal, accounting, and other professional services fees, software and subscription services, and other corporate expenses.

*Marketing and advertising expenses* — Marketing and advertising expenses consist primarily of content production, paid advertisements, sponsored videos and sponsored events.

**Other Income**

 *Other Income —* Other income pertains to reversal of vProperty deposits.

*Interest Income* — Interest income consists of interest income earned on our cash and cash equivalents.

*Interest Expense* — Interest expense consists primarily of interest payments for our debt facilities. See "Liquidity and Capital Resources — Debt and Financing Arrangements."

**Provision for Income Taxes**

Provision for income taxes consists primarily of income taxes in certain foreign and state jurisdictions in which we conduct business. We record income taxes using the asset and liability method. Under this method, deferred income tax assets and liabilities are recorded based on the estimated future tax effects of differences between the financial statement and income tax basis of existing assets and liabilities. These differences are measured using the enacted statutory tax rates that are expected to apply to taxable income for the years in which differences are expected to reverse. We recognize the effect on deferred income taxes of a change in tax rates in income in the period that includes the enactment date.

We record a valuation allowance to reduce our deferred tax assets and liabilities to the net amount that we believe is more likely than not to be realized. We consider all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing tax planning strategies in assessing the need for a valuation allowance.

**RESULTS OF OPERATIONS**

**Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024**

The following table sets forth our results of operations for the six months ended June 30, 2025 and June 30, 2024 (in thousands, except percentages):

---

| | | | |
|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Change** |
|  | **2025** | **2024** | **%** |
| Revenues | 494 | 224 | 121% |
| Cost of Revenue | (57) | (81) | (30)% |
| Gross profit | 437 | 143 | 206% |
| Gross margin | 88% | 64% |  |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp; General and administrative and other | 493 | 1051) | (53)% |
| &nbsp;&nbsp;&nbsp; AR/VR product expenses | 1084 | 5813) | (81)% |
| &nbsp;&nbsp;&nbsp; Marketing and advertising | 277 | 32 | 766% |
| &nbsp;&nbsp;&nbsp; Digital asset impairment losses (gain on sale), net |  | (2) | (100)% |
| &nbsp;&nbsp;&nbsp; Professional Fees | 90 | 218 | (59)% |
| Total operating expenses | 1944 | 7112 | (73)% |
| Loss from operations | (1507) | (6969) | (78)% |
| Other income (expense): |  |  |  |
| &nbsp;&nbsp;&nbsp; Other income | 73 |  | 100% |
| &nbsp;&nbsp;&nbsp; Interest expense | (442) | (147) | 201% |
| &nbsp;&nbsp;&nbsp; Gain on disposal of digital assets, property and equipment | - | 4 | (100)% |
| Total other income (expense) | (369) | (143) | 158% |
| Net loss | $(1876) | $(7112) | (74)% |

---

 ***Revenues***

Total revenue increased by $270 thousand, or 121%, to $494 thousand for the six months ended June 30, 2025, from $224 thousand for the six months ended June 30, 2024. Subscription revenue decreased by $23 thousand, or 10%, to $201 thousand for the six months ended June 30, 2025, from $224 thousand for the six months ended June 30, 2024. The increase in total revenue is attributable to a new revenue stream, which is software contract revenue which amounted to $293 thousand for the six months ended June 30, 2025.

 ***Gross Profit and Gross Margin***

Gross profit increased by $294 thousand, or 206%, to $437 thousand for the six months ended June 30, 2025, from $143 thousand for the six months ended June 30, 2024. The increase is attributable to a new revenue stream, which is software contract revenue.

 ***AR/VR Product Expenses***

AR/VR product expenses decreased by $4.7 million, or 81%, to $1.1 million for the six months ended June 30, 2025, from $5.8 million for the six months ended June 30, 2024. The decrease was primarily attributable to a decrease in personnel-related costs associated with salaries and third-party design, engineering and manufacturing services which was greater in 2024 to support the initial development of Immersed's own AR/VR headset, Visor.

 ***General and Administrative Expenses***

General and administrative expenses decreased by $558 thousand, or 53%, to $493 thousand for the six months ended June 30, 2025 from $1.1 million for the six months ended June 30, 2024. The decrease was primarily attributable to an decrease in non-product-related facilites and personnel costs during the year.

 ***Digital Asset Impairment losses (gain on sale), net***

Digital asset impairment losses (gains on sale) decreased by $2 thousand, or 100%, to $0 gain on sale for the six months ended June 30, 2025 from $2 thousand gain on sale for the six months ended June 30, 2024. The decrease was primarily attributable to decreased activity with held digital assets during the six months ended June 30, 2025.

 ***Marketing and Advertising Expenses***

Marketing and advertising expenses increased by $245 thousand, or 766%, to $277 thousand for the six months ended June 30, 2025 from $32 thousand for the six months ended June 30, 2024. The increase was primarily attributable to increased marketing and advertising efforts for our public crowdfundraises.

 ***Other income***

Other income increased by $73 thousand, or 100%, to $73 for the six months ended June 30, 2025 from $0 for the year six months ended June 30, 2024. The increase was primarily attributable to recognizing income on the remaining vProperty deposits in January 2025.

 ***Interest Expense***

Interest expense increased by $295 thousand, or 201%, to $442 thousand for the six months ended June 30, 2025 from $147 thousand for the six months ended June 30, 2024. The increase was primarily attributable to the company recognizing accrued interest expense on convertible notes issued, merchant cash advances, loans payable and notes payable.

 ***Total Other Income (Expense), Net***

Total other (expense) income, net increased by $238 thousand, or 166%, to net other expense of $381 thousand for the six months ended June 30, 2025 from net other expense of $143 thousand for the six months ended June 30, 2024. The increase was primarily attributable to increase in interest expense.

 ***Provision for Income Taxes***

The provision for income taxes did not significantly fluctuate year over year. The U.S. federal statutory tax rate is 21%, while our effective tax rate for the six months ended June 30, 2025 and 2024 was 0% and 0%, respectively.

**Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023**

The following table sets forth our results of operations for the years ended December 31, 2024 and December 31, 2023 (in thousands, except percentages):

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Change** |
|  | **2024** | **2023** | **%** |
| Revenues | 660 | 220 | 200% |
| Cost of Revenue | (155) | (72) | 115% |
| Gross profit | 505 | 148 | 241% |
| Gross margin | 77% | 67% |  |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative and other | 1868 | 1652 | 13% |
| &nbsp;&nbsp;&nbsp;AR/VR product expenses | 12036 | 3826 | 215% |
| &nbsp;&nbsp;&nbsp;Marketing and advertising | 142 | 88 | 61% |
| &nbsp;&nbsp;&nbsp;Digital asset impairment gains, net | (2) | (255) | (99)% |
| &nbsp;&nbsp;&nbsp;Professional fees | 274 | 400 | (32)% |
| Total operating expenses | 14318 | 5711 | (151)% |
| Loss from operations | (13813) | (5563) | (148)% |
| Other income (expense): |  |  |  |
| &nbsp;&nbsp;&nbsp;Other income |  | 204) | (100)% |
| &nbsp;&nbsp;&nbsp;Interest income |  | 8) | (100)% |
| &nbsp;&nbsp;&nbsp;Interest expense | (458) | (14) | 3171% |
| &nbsp;&nbsp;&nbsp;Gain on disposal of digital assets, property and equipment | 2 | 58 | (97)% |
| Total other income (expense) | (456) | 256 | (278)% |
| Net loss | $(14269) | $(5307) | (169)% |

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***Revenues***

Total revenue increased by $440 thousand, or 200%, to $660 thousand for the year ended December 31, 2024, from $220 thousand for the year ended December 31, 2023. Subscription revenue increased by $247 thousand, or 112%, to $467 thousand for the year ended December 31, 2024, from $220 thousand for the year ended December 31, 2023. The increase in total revenue is attributable both to an increase in subscription revenue and to a new revenue stream in 2024 from software contract revenue, which amounted to $193 thousand for the year ended December 31, 2024. The increase in subscription revenue is attributable to the new consumer subscription being available for all of 2024, while it was only available from September to December in 2023. The consumer subscription features can be purchased or earned through app usage.

***Gross Profit and Gross Margin***

Gross profit increased by $357 thousand, or 241%, to $505 thousand for the year ended December 31, 2024, from $148 thousand for the year ended December 31, 2023.

***AR/VR Product Expenses***

AR/VR product expenses increased by $8.2 million, or 215%, to $12.0 million for the year ended December 31, 2024, from $3.8 million for the year ended December 31, 2023. The increase was primarily attributable to an increase in personnel-related costs associated with salaries and third-party design, engineering and manufacturing services to support the development of Immersed's own AR/VR headset, Visor.

***General and Administrative Expenses***

General and administrative expenses increased by $216 thousand, or 13%, to $1.9 million for the year ended December 31, 2024, from $1.7 million for the year ended December 31, 2024. The increase was primarily attributable to an increase in non-product-related personnel costs and salaries during the year.

***Digital Asset Impairment losses (gain on sale), net***

Digital asset impairment losses (gains on sale) decreased by $253 thousand, or 99%, to $2 thousand gains on sale for the year ended December 31, 2024, from $255 thousand gains on sale for the year ended December 31, 2023. The decrease was primarily attributable to decreased activity with held digital assets during the year ended December 31, 2023.

***Marketing and Advertising Expenses***

Marketing and advertising expenses increased by $54 thousand, or 61%, to $142 thousand for the year ended December 31, 2024, from $88 thousand for the year ended December 31, 2024. The increase was primarily attributable to hosting an in-person production launch for Visor in September 2024 - Immersed IRL.

***Other income***

Other income decreased by $204 thousand, or 100%, to $0 for the year ended December 31, 2024, from $204 thousand for the year ended December 31, 2023. The decrease was primarily attributable to no additional grants awarded by Meta (Facebook) during the year.

***Interest Income***

Interest income decreased by $8 thousand, or 100%, to $0 for the year ended December 31, 2024, from $8 thousand for the year ended December 31, 2024. The decrease was primarily attributable to closing the Company's interest-bearing Money Market Account.

***Interest Expense***

Interest expense increased by $444 thousand, or 3,171%, to $458 thousand for the year ended December 31, 2024, from $14 thousand for the year ended December 31, 2023. The increase was primarily attributable to the company recognizing accrued interest expense on convertible notes issued, merchant cash advances, loans payable and notes payable.

***Total Other Income (Expense), Net***

Total other (expense) income, net decreased by $712 thousand, or 278%, to net other expense of $456 thousand for the year ended December 31, 2024, from net other income of $256 thousand for the year ended December 31, 2023. The decrease was primarily attributable to a decrease in grant income and increase in interest expense.

***Provision for Income Taxes***

The provision for income taxes did not significantly fluctuate year over year. The U.S. federal statutory tax rate is 21%, while our effective tax rate for the year ended December 31, 2024 and 2023 was 0% and 0%, respectively.

**LIQUIDITY AND CAPITAL RESOURCES**

**Sources of Liquidity**

Our capital requirements will depend on many factors, including the growth and expansion of our paid subscribers, development of our software platform and our new AR/VR headset (including research and development efforts), expansion of our sales and marketing activities and sales, general and administrative expenses. As of June 30, 2025, we had cash of $372,274, which primarily comprised cash in banks deposit with financial institutions. As of December 31, 2024 and 2023, we had cash, cash equivalents, and restricted cash of approximately $242,290 and $1.6 million, respectively, which comprised primarily cash on hand and amounts on deposit with financial institutions. To date, our principal sources of liquidity have been proceeds received from the issuance of equity and financing activities.

Until we can generate sufficient revenue from paid subscribers and sales of products and services to cover operating expenses, working capital and capital expenditures, we expect the funds raised in this Offering to fund our cash needs. If we are required to raise additional funds by issuing equity securities, dilution to our stockholders would result. Furthermore, the terms of any debt securities or borrowings could impose significant restrictions on our operations. In addition, the credit market and financial services industry have experienced in the past, and may experience in the future, periods of uncertainty that could impact the availability and cost of equity and debt financing.

We generated negative cash flows from operating activities during the periods ended June 30, 2025 and 2024 and during the years ended December 31, 2024 and 2023, and have incurred negative cash flows from operating activities and significant losses from operations prior to this fiscal year as reflected in our accumulated deficit of $33.25 million as of June 30, 2025, and $31.37 million and $17.1 million as of December 31, 2024 and 2023, respectively. We expect to incur operating losses for the foreseeable future due to the planned spending to develop our AR/VR headset and to improve our software platform as well as costs associated with acquiring additional paid subscribers in connection with the growth of our business. As a result, we may require additional capital resources to grow our business. We believe that current cash, cash equivalents, and expected net proceeds from this Offering will be sufficient to fund our operating and capital expenditure requirements through at least 12 months following the date of issuance of our audited consolidated financial statements.

We have historically funded the net cash needed for operating and investing activities through the sale of equity and through debt financing. Before this Offering, we have cash to fund our forecasted operating expenses, working capital requirements and capital expenditures through April 2026. Therefore, we do not have adequate liquidity to meet our forecasted obligations for a period of one year from the date of this Offering. If we are unable to complete this Offering, we plan to decrease spending levels for labor, and also plan to reduce discretionary spending, including reducing our direct and indirect labor, reducing sales and marketing costs and focusing our available capital on a reduced number of prioritized activities and programs, in order to have sufficient liquidity from the convertible notes and public crowdfunding raised to fund our operations for at least one year from the date of the issuance of these consolidated financial statements. We cannot assure you that such measures would be sufficient to enable us to fund our operations for one year from the date of this Offering if we are unable to complete this Offering.

 **Equity Offerings**

In August 2023, Immersed conducted a public crowdfunding campaign pursuant to Regulation Crowdfunding through Wefunder Portal LLC ("WeFunder"). In connection with the offering, Immersed issued an aggregate amount of 604,546 shares of common stock at a price per share of $4.9624, for gross proceeds of approximately $3.0 million. Immersed paid WeFunder fees and offering expenses of approximately $150,000, resulting in net proceeds of approximately $2.85 million. The offering was closed on August 31, 2023. Immersed used the net proceeds for working capital and general corporate costs and expenses. The shares of common stock issued in the Regulation Crowdfunding offering were restricted securities and were subject to transfer limitation under Regulation Crowdfunding for one year from the date of purchase, subject to limited exceptions.

 **Debt and Financing Arrangements**

***Convertible Note Financing***

In August 2023, Immersed entered into three note purchase agreements with certain investors, pursuant to which we issued to such investors convertible promissory notes in an aggregate amount of $450,000 (the "2023 Convertible Notes") with a 20% discount. The notes bear interest at a rate of 8% per annum with all principal and interest due and payable on the earlier of: (i) 5 days after the receipt of demand for payment, which demand shall not made prior to August 11, 2025 (the "Maturity Date"), or (ii) in the events of default, which includes voluntary and involuntary proceedings. Assuming conversion of the notes in connection with the consummation of this Offering, an aggregate of 106,827 shares of Common Stock would be issuable to the noteholders.

In May 2024, Immersed entered into a note purchase agreement with a certain investor, pursuant to which Immersed issued to such investor a convertible promissory note in an aggregate amount of $1,000,000, with a 10% discount. The note bears interest at a rate of 8% per annum with all principal and interest due and payable on the earlier date of: (i) 5 days after the receipt of demand for payment, which demand shall not be made prior to May 11, 2027, or (ii) in the events of default, which includes voluntary and involuntary proceedings. Assuming conversion of the note in connection with the consummation of this Offering, 224,810 shares of Common Stock would be issuable to the noteholder.

In July 2024, Immersed issued multiple convertible notes for a total principal of $2,149,300, of which $425,000 includes notes with a 10% discount. The note bears an interest of 8% per annum with all principal and interest due and payable on the earlier date of; (i) 5 days after the receipts of demand for payment, which demand shall not be made prior to July 2026, or (ii) in the events of default, which includes voluntary and involuntary proceedings. Assuming conversion of the notes in connection with the consummation of this Offering, an aggregate of 477,504 shares of Common Stock would be issuable to the noteholders.

In November 2024, Immersed issued a single convertible promissory note for a total principal of $1,000,000, with a 25% discount. The note bears an interest equal to the prime rate plus 5% per annum with all principal and interest due and payable on the earlier date of: (i) 5 days after the receipts of demand for payment, which demand shall not be made prior to November 2027, or (ii) in the events of default, which includes voluntary and involuntary proceedings. Assuming conversion of the note in connection with the consummation of this Offering, 112,438 shares of Common Stock would be issuable to the noteholder.

In January 2025, Immersed issued a single convertible note for a total principal of $50,000, with a 10% discount. The note bears an interest of 8% per annum with all principal and interest due and payable on the earlier date of: (a) five days after the receipt of demand for payment, which demand shall not be made prior to January 2028, or (b) in the events of default, which includes voluntary and involuntary proceedings. Assuming conversion of the note in connection with the consummation of this Offering, 10,681 shares of Common Stock would be issuable to the noteholder.

In January 2025, Immersed commenced selling convertible promissory notes in connection with its public crowdfunding campaign (the "2025 Reg CF Offering"). The notes issued in the 2025 Reg CF Offering bear simple interest at 8% per annum, with all principal and interest due and payable on the earlier of: (a) five days after the receipt of demand for payment, which demand shall not be made prior to second anniversary of the issuance date, or (b) in the events of default, which includes voluntary and involuntary proceedings. Investors in the 2025 Reg CF Offering purchased the notes through Immersed III EB, a series of Wefunder SPV, LLC, a special purpose vehicle that invested all of its assets in securities issued by Immersed. Immersed stopped accepting investments in connection with the 2025 Reg CF Offering on April 30, 2025, and raised aggregate proceeds of approximately $1.75 million. Assuming the conversion of all 2025 Reg CF Offering notes upon consummation of this Offering, an aggregate of 290,166 shares of Common Stock would be issuable to the noteholders.

In connection with the 2025 Reg CF Offering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in February 2025, Immersed
 issued multiple convertible notes which were part of a series of notes for a total principal
 of $559,400, of which $230,000 includes notes with a 10% discount. Assuming the conversion
 of the notes upon consummation of this Offering, an aggregate of 101,580 shares of Common
 Stock would be issuable to the noteholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in March 2025, Immersed issued
 multiple convertible notes which were part of a series of notes for a total principal of
 $165,800, of which $10,000 includes notes with a 10% discount. Assuming the conversion of
 the notes upon consummation of this Offering, an aggregate of 26,800 shares of Common Stock
 would be issuable to the noteholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in April 2025, Immersed issued
 multiple convertible notes which were part of a series of notes for a total principal of
 $408,612. Assuming the conversion of the notes upon consummation of this Offering, an aggregate
 of 64,508 shares of Common Stock would be issuable to the noteholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in May 2025, Immersed issued
 multiple convertible notes which were part of a series of notes for a total principal of
 $620,922. Assuming the conversion of the notes upon consummation of this Offering, an aggregate
 of 97,278 shares of Common Stock would be issuable to the noteholders.

In June 2025, Immersed issued a single convertible note for a total principal of $250,000, with a 10% discount. The note bears interest at a rate of 8% per annum, with all principal and interest due and payable on the earlier date of: (a) five days after the receipt of demand for payment, which demand shall not be made prior to June 2028, or (b) in the events of default, which includes voluntary and involuntary proceedings. Assuming the conversion of the note upon consummation of this Offering, an aggregate of 28,240 shares of Common Stock would be issuable to the noteholder.

In case of liquidity event, which means a change of control, private placement equity financing, direct listing, an initial public offering (IPO) or special purpose acquisition companies (SPAC) merger, the outstanding principal and accrued interest will automatically convert into Immersed's shares issued in the triggering financing, as applicable. The conversion price per share equal to: (a) (i) in the case of an IPO, the price per share at which conversion shares are sold to the public, (ii) in the case of private placement equity financing, the lowest per share purchase price of the conversion shares issued in such financing, and (iii) in the case of other liquidity event, the aggregate fair market value of Immersed's equity interest divided by the number of shares constituting the Company equity interest outstanding immediately prior to such liquidity event; in each case multiplied by (ii) the 75-100% discount rate.

Interest expense recognized for the years ended December 31, 2024 and 2023, on these notes amounted to $167,511 and $14,104, respectively, all of which remained accrued and outstanding at December 31, 2024. As of December 31, 2024 and 2023, the outstanding principal was $4,599,300 and $450,000, respectively.

For the six months ended June 30, 2025, Immersed recorded a discount on the convertible notes amounting to $114,058, which is being amortized to interest expense over the term of the loans. For the six months ended June 30, 2025, $13,490 of discount was amortized to interest expense. No discount on convertible notes was recorded for the six months ended June 30, 2024.

Interest expense recognized for the six months ended June 30, 2025 and 2024 on these notes amounted to $212,974 and $26,400, respectively, all of which remained accrued and outstanding as of June 30, 2025. As of June 30, 2025 and 2024, the outstanding principal was $6,553,466 and $1,450,000, net of unamortized discount of $100,568 and $0, respectively.

 ***Notes Payable***

On July 11, 2024, Immersed entered into multiple promissory note agreements for a total principal amount of $420,000. The notes bear interest of 10% per annum with all principal and interest due and payable on the earlier of; (a) July 11, 2025, or (b) in the events of default, which include voluntary and involuntary proceedings. As of June 30, 2025 and December 31, 2024, the Company had outstanding principal balances of $62,000 and $177,000, respectively.

Interest expense recognized for the year ended December 31, 2024, on these notes amounted to $20,300, of which $16,917 remained accrued and outstanding as of December 31, 2024.

Interest expense recognized for the six months ended June 30, 2025, on these notes amounted to $21,117, of which $9,514 remained accrued and outstanding at June 30, 2025.

***Merchant Cash Advances***

Immersed entered into multiple agreements with the merchant cash advance providers. Below is a summary of those agreements:

In March 2024, Immersed received a loan from Ondeck Capital, a financial institution, for a total principal of $150,000, with interest rate of 35% per annum. Immersed recorded a discount on the loan amounting to $52,500, which is being amortized to interest expense over the terms of the loan. The loan was paid in full in March 2025.

On March 25, 2024, Immersed entered into a short-term agreement with FundFi Merchant Funding totaling $150,000. Total weekly required payments are $7,821 for the whole term of the loan. Immersed recorded a discount on the loan amounting to $69,000, which is amortized to interest expense over the term of the loan. The loan was paid in full in October 2024.

On March 26, 2024, Immersed entered into a short-term agreement with Superfast Capital totaling $100,000. Total weekly required payments are $3,393 for the whole term of the loan. Immersed recorded a discount on the loan amounting to $45,900, which is being amortized to interest expense over the term of the loan. The loan was paid in full in April 2025.

On September 27, 2024, Immersed entered into a short-term agreement with FundFi Merchant Funding totaling $150,000. Total weekly required payments are $6,516 for the whole term of the loan. Immersed recorded a discount on loan amounting to $58,500, which is being amortized to interest expense over the term of the loans. The loan was paid in full in March 2025.

On October 1, 2024, Immersed entered into a short-term agreement with Specialty Capital totaling $150,000. Total weekly required payments are $6,516 for the whole term of the loan. Immersed recorded a discount on the loan amounting to $58,500, which is being amortized to interest expense over the term of the loans. The loan is being repaid at a 7% which is being deducted automatically from Immersed's bank account until the total required payments are made.

On March 4, 2025, Immersed entered into a short-term agreement with Fundfi Merchant Funding, LLC totaling $454,530. Total weekly required payments are $13,369 for the whole term of the loan. Immersed recorded a discount on the loan amounting to $127,530, which is being amortized to interest expense over the term of the loans. The loan is being repaid at a 25% which is being deducted automatically from the Immersed's bank account until the total required payments are made.

On May 12, 2025, Immersed entered into a short-term agreement with Cedar Advance LLC totaling $147,000. Total weekly required payments are $6,516 for the whole term of the loan. Immersed recorded a discount on the loan amounting to $42,000, which is being amortized to interest expense over the term of the loans. The loan is being repaid at a 30% which is being deducted automatically from the Immersed's bank account until the total required payments are made.

As of June 30, 2025 and December 31, 2024, the Company has an outstanding balance of $404,910 and $295,350, net of unamortized discount of $88,965 and $78,735, respectively. Interest expense recognized for the periods ended June 30, 2025 and 2024 on these loans amounted to $180,660 and $77,778, respectively. Interest expense from amortization of loan discount for the year ended December 31, 2024, amounted to $205,665.

***Loan Agreements***

Immersed entered into multiple loan agreements. Below is a summary of those agreements:

In March 2024, Immersed received its first loan from Shopify totaling $270,000. Immersed recorded a discount on the loan amounting to $35,100, which is being amortized to interest expense over the term of the loan. The loan is being repaid daily at 17% of Immersed's Shopify account's sales proceeds, which is being deducted automatically until the total required payments are made. The loan is secured by Immersed's balances on its Shopify account.

On May 13, 2024, Immersed received its first loan from Stripe Capital, a financial institution, for a total principal of $67,600. Immersed recorded a discount on the loan amounting to $7,436, which is being amortized to interest expense over the term of the loan. The loan matures in November 2025 and carries an interest rate of 7.3% per annum. The loan was paid in full in October 2024.

In September 2024, Immersed received a second loan from Shopify totaling $75,000. Immersed recorded a discount on the loan amounting to $9,750, which is being amortized to interest expense over the term of the loan. The loan repayment will begin after the first loan is paid in full. The loan is secured by Immersed's balances on its Shopify account.

On October 15, 2024, Immersed received a loan from Stripe Capital, a financial institution, for a total principal of $88,300. Immersed recorded a discount on the loan amounting to $10,684, which is being amortized to interest expense over the term of the loan. The loan matures in April 2026 and carries an interest rate of 8% per annum. The loan was paid in full in February 2025.

On February 18, 2025, Immersed received a loan from Stripe Capital, a financial institution, for a total principal of $132,900. Immersed recorded a discount on the loan amounting to $14,220, which is being amortized to interest expense over the term of the loan. The loan matures in August 2026 and carries interest rate of 7.1% per annum.

As of June 30, 2025 and December 31, 2024, Immersed had an outstanding balance of $232,176 and $195,854, net of unamortized discount of $18,503 and $32,087, respectively. Interest expense recognized for the periods ended June 30, 2025 and 2024 on these loans amounted to $27,803 and $8,626, respectively. Interest expense from amortization of loan discount for the year ended December 31, 2024 amounted to $30,883.

***Other commitments***

Immersed leased office space under an operating lease for our U.S. headquarters that expired in 2024.

**Digital Assets**

During 2022, the Company acquired 384 Ethereum through the sale of Immersed Virtual Property ("vProperty"). The Company held a minimal amount of Ethereum through the sale of vProperty during 2024 and 2023. During 2023, the Company acquired 1 additional Ethereum through the sale of vProperty, sold the 363 Ethereum held on February 18, 2023 and recorded a gain of $259,048. In June 2023, the Company decided to cancel vProperty project due to refocusing on spatial computing. The Company purchased 327 Ethereum to facilitate refunds of the vProperty deposits and refunded 321 Ethereum of the vProperty deposits resulting in a gain on the refund settlements of $58,149. The Company recorded digital asset impairment losses of $3,729 for the year ended December 31, 2023 on the remaining 6 Ethereum held as of December 31, 2023.

During 2024, Immersed reversed digital impairment losses of $1,895 and recorded and additional gain of $4,064 due to the exchange of Ethereum for another NFT "USDC". As of December 31, 2024, Immersed held approximately $6.00 and $2,635 of Ethereum and USDC, respectively.

During the period ended June 30, 2025, Immersed has not recorded digital asset impairment losses. As of June 30, 2025, Immersed held approximately $6.00 and $2,635 of Ethereum and USDC, respectively.

**Known Trends or Uncertainties**

As discussed elsewhere in this Offering Circular, the world has continued to be affected by the lingering effects of the COVID-19 pandemic, the ongoing conflicts between Russia and Ukraine as well as Israel and Hamas, economic uncertainty in human capital management and certain other macroeconomic factors. Inflation has risen, Federal Reserve interest rates have increased over the last year, and the general consensus among economists continues to suggest that we should expect a higher recession risk to continue for the near term. Additionally, it is possible that U.S. policy changes, including changes and uncertainty, could increase market volatility. These factors, amongst other things, could result in further economic uncertainty and volatility in the capital markets in the near term, and could negatively affect our operations. Effects of recent economic volatility have negatively impacted our business in various ways over the last three years, including as a result of global supply chain constraints at least partially attributable to the pandemic.

Global supply chain shortages (especially when coupled with the increase in inflation and other economic factors) could result in an increase in the cost of the components used in our products, which could result in a decrease in our gross margins or in us having to increase the price at which we sell our products until supply chain constraints are resolved. Additionally, in the event that the price of our components increases significantly or we are unable to source sufficient components and materials from our current suppliers, or to develop relationships with additional suppliers, to manufacture enough of our products to satisfy demand, we may have to slow down production and our business operations and financial condition may be materially harmed and we may need to alter our plan of operation.

The United States has implemented tariffs on certain imported goods, including on certain items imported from China. In addition, China has imposed tariffs on a wide range of American products and placed restrictions on the export of certain items in retaliation for these American tariffs. As a result, there is a concern that the imposition of additional tariffs by the United States could result in the adoption of additional tariffs or export restrictions by China and/or other countries. Any resulting trade war could negatively impact on our business. The imposition of tariffs on items imported by us from China or other countries could increase our costs and could result in lowering our gross margin on products sold.

Additionally, U.S. and global markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the ongoing military conflicts between Russia and Ukraine and between Israel and Hamas. Although the length and impact of the ongoing military conflicts is highly unpredictable, the conflicts in Ukraine and the Middle East could lead to market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as further supply chain interruptions. Russian military actions and the resulting sanctions could adversely affect the global economy and financial markets and lead to instability and lack of liquidity in capital markets, potentially making it more difficult for us to obtain additional funds.

Although our business has not been materially impacted by the ongoing military conflict between Russian and Ukraine or the conflict between Israel and Hamas to date, it is impossible to predict the extent to which our operations, or those of our suppliers and manufacturers, will be impacted in the short and long term, or the ways in which the conflict may impact our business. The extent and duration of the military action and resulting market disruptions are impossible to predict, but could be substantial. We are continuing to monitor the situations in Ukraine, the Middle East and globally to assess potential impacts on our business.

As a result of these global issues and other macroeconomic factors, it has been difficult to accurately forecast our revenues or financial results, especially given the near- and long-term impact of the pandemic, geopolitical issues, inflation, the Federal Reserve maintaining high interest rates, the potential for a recession and recent uncertainties from the new presidential administration. In addition, while the potential impact and duration of these issues on the economy and our business may be difficult to assess or predict, these world events have resulted in, and may continue to result in, significant disruption of global financial markets, and may reduce our ability to access additional capital, which could negatively affect our liquidity in the future. Our results of operations could be materially below our forecasts as well, which could adversely affect our results of operations, disappoint analysts and investors, or cause our stock price to decline. Furthermore, a decrease in orders in a given period could negatively affect our revenues in future periods.

These global issues and events may also have the effect of heightening many risks associated with our customers and supply chain. We may take further actions that alter our operations as may be required by federal, state, or local authorities from time to time, or which we determine are in our best interests. In addition, we may decide to postpone or abandon planned investments in our business in response to changes in our business, which may impact our ability to attract and retain customers and our rate of innovation, either of which could harm our business.

***Inflation***

Inflation has increased recently and future rates are unknown. Inflationary factors, such as increases in the cost of our products (and components thereof), interest rates, overhead costs and transportation costs may adversely affect our operating results. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, we may experience some effect in the near future (especially if inflation rates continue to rise) due to supply chain constraints, consequences associated with the ongoing conflicts between Russia and Ukraine and Israel and Hamas, employee availability and wage increases, trade tariffs imposed on certain products from China and increased component and services pricing.

 **Cash Flows for the six months ended June 30, 2025 and 2024**

The following table sets forth a summary of our cash flows for the six months ended June 30, 2025 and 2024:

---

| | | |
|:---|:---|:---|
| **(in thousands)** | **For the Six Months Ended** | **For the Six Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| Cash provided by (used in): |  |  |
| &nbsp;&nbsp;&nbsp; Operating activities | (1646) | (3092) |
| &nbsp;&nbsp;&nbsp; Investing activities | (9) | (4) |
| &nbsp;&nbsp;&nbsp; Financing activities | 1784 | 1534 |

---

 ***Net Cash Provided by (Used in) Operating Activities***

Net cash used in operating activities was $1.7 million for the six months ended June 30, 2025. This amount primarily consisted of a net loss of $1.9 million, offset by certain non-cash charges, and a decrease in net operating assets and liabilities. The non-cash charges primarily consisted of $0.20 million amortization of discounts on merchant cash advances and loans payable. Changes in net operating assets and liabilities primarily consisted of decrease in accounts receivable, prepaid expenses, and vProperty deposits, operating lease right-of-use asset, and operating lease liability and offset by increase in accounts payable, accrued expenses, and deferred revenue.

Net cash used in operating activities was $3.1 million for the six months ended June 30, 2024. This amount primarily consisted of a net loss of $7.1 million, offset by certain non-cash charges, and a decrease in net operating assets and liabilities. The non-cash charges primarily consisted of $0.10 million amortization of discounts on merchant cash advances and loans payable and $0.14 million of stock-based compensation expense. Changes in net operating assets and liabilities primarily consisted of decrease in operating lease right-of-use asset and accounts receivable and increase in accounts payable, accrued expenses and deferred revenue offset by increase in prepaid expenses, vProperty deposits and operating lease liability.

 ***Net Cash Used in Investing Activities***

Net cash used in investing activities was $9 thousand for the six months ended June 30, 2025. This amount primarily consisted of $6 thousand purchase of intangible and $3 thousand purchase of property and equipment.

Net cash used in investing activities was $4 thousand for the six months ended June 30, 2024. This amount primarily consisted of $12 thousand purchase of property and offset by $8 thousand sale of digital assets.

 ***Net Cash Provided by Financing Activities***

Net cash provided by financing activities was $1.8 million for the six months ended June 30, 2025. This amount primarily consisted of proceeds from convertible notes payable, merchant cash advances, and loans payable for an aggregate amount of $2.5 million.

Net cash provided by financing activities was $1.5 million for the six months ended June 30, 2024. This amount primarily consisted of proceeds from convertible notes payable, merchant cash advances, and loans payable for an aggregate amount of $1.9 million.

**Cash Flows for the year ended December 31, 2024 and 2023**

The following table sets forth a summary of our cash flows for the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** |
| <br>**(in thousands)** | **2024** | **2023** |
| Cash provided by (used in): |  |  |
| Operating activities | $(5941) | $(4717) |
| Investing activities | $(3) | $391 |
| Financing activities | $4597 | $3425 |

---

***Net Cash Provided by (Used in) Operating Activities***

Net cash used in operating activities was $5.9 million for the year ended December 31, 2024. This amount primarily consisted of a net loss of $14.3 million, offset by certain non-cash charges, and a decrease in net operating assets and liabilities. The non-cash charges primarily consisted of $0.24 million amortization of discounts on merchant cash advances and loans payable and $0.22 million of stock-based compensation expense. Changes in net operating assets and liabilities primarily consisted of decrease in accounts receivable, prepaid expenses, and vProperty deposits, operating lease right-of-use asset, and operating lease liability and offset by increase in accounts payable, accrued expenses, and deferred revenue.

Net cash used in operating activities was $4.7 million for the year ended December 31, 2023. This amount primarily consisted of a net loss of $5.3 million, offset by certain non-cash charges, and a decrease in net operating assets and liabilities. The non-cash charges primarily consisted of $0.25 million of digital asset gains on sale, and $0.22 million of stock-based compensation expense. Changes in net operating assets and liabilities primarily consisted of decrease in operating lease right-of-use asset and increase in accounts payable and accrued expenses, significantly offset by increase in accounts receivable, prepaid expenses and deferred revenue, vProperty deposits and operating lease liability.

***Net Cash Used in Investing Activities***

Net cash used in investing activities was $3 thousand for the year ended December 31, 2024. This amount primarily consisted of $17 thousand purchase of property and offset by equipment and sale of digital assets and property and equipment for $8 thousand and $6 thousand, respectively.

Net cash provided by investing activities was $391 thousand for the year ended December 31, 2023. This amount primarily consisted of the sale of digital assets.

***Net Cash Provided by Financing Activities***

Net cash provided by financing activities was $4.5 million for the year ended December 31, 2024. This amount primarily consisted of proceeds from convertible notes payable, notes payable, merchant cash advances, and loans payable for an aggregate amount of $5.9 million.

Net cash provided by financing activities was $3.4 million for the year ended December 31, 2023. This amount primarily consisted of proceeds from the issuance of common stock for $3.1 million.

**Off-Balance Sheet Arrangements**

As of the balance sheet date of June 30, 2025, we have not engaged in any off-balance sheet arrangements as defined in the rules and regulations of the SEC. As of the balance sheet date of December 31, 2024, we have not engaged in any off-balance sheet arrangements as defined in the rules and regulations of the SEC.

**Relaxed Ongoing Reporting Requirements**

Regulation A+ provides that a filer can take advantage of an extended transition period for complying with new or revised accounting standards. We have elected to avail ourselves of this exemption and, therefore, we will not be subject to the same adoption period for new or revised accounting standards as public companies.

Upon the completion of this Offering Statement, we may elect to become a public reporting company under the Securities Exchange Act of 1934, as amended (the Exchange Act). If we elect to do so, we will be required to publicly report on an ongoing basis as an "emerging growth company" (as defined in the JOBS Act) under the reporting rules set forth under the Exchange Act. As defined in the JOBS Act, an emerging growth company is defined as a company with less than $1 billion in revenue during its last fiscal year. An emerging growth company may take advantage of specified reduced reporting and other burdens that are otherwise applicable generally to public companies.

For so long as we remain an "emerging growth company," we may take advantage of certain exemptions from various reporting requirements that are applicable to other Exchange Act reporting companies that are not "emerging growth companies," including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· not being required to comply
 with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· taking advantage of extensions
 of time to comply with certain new or revised financial accounting standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· being permitted to comply
 with reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· being exempt from the requirement
 to hold a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously
 approved.

If we are required to publicly report under the Exchange Act as an "emerging growth company", we expect to take advantage of these reporting exemptions until we are no longer an emerging growth company. We would remain an "emerging growth company" for up to 5 years, though if the market value of our Common Stock that is held by non-affiliates exceeds $750 million, we would cease to be an "emerging growth company."

We have commenced reporting under the Regulation A+ reporting requirements. If we elect not to become a public reporting company under the Exchange Act, we will be required to continue to publicly report on an ongoing basis under the reporting rules set forth in Regulation A+ for Tier 2 issuers. The ongoing reporting requirements under Regulation A+ are more relaxed than for "emerging growth companies" under the Exchange Act. The differences include, but are not limited to, being required to file only annual and semi-annual reports, rather than annual and quarterly reports. Annual reports are due within 120 calendar days after the end of the issuer's fiscal year, and semi-annual reports are due within 90 calendar days after the end of the first six months of the issuer's fiscal year.

**CRITICAL ACCOUNTING POLICIES AND ESTIMATES**

Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with GAAP. We evaluated the development and selection of our critical accounting policies and estimates and believe that the following involve a higher degree of judgment or complexity and are most significant to reporting our results of operations and financial position and are therefore discussed as critical. The following critical accounting policies reflect the significant estimates and judgements used in the preparation of our consolidated financial statements. Actual results could differ materially from those estimates and assumptions, and those differences could be material to our consolidated financial statements.

We re-evaluate our estimates on an ongoing basis. For information on our significant accounting policies, refer to Note 2 — Summary of Significant Accounting Policies to our audited consolidated financial statements contained elsewhere in this Offering Circular.

**Revenue**

Effective January 1, 2019, our revenue recognition policy is a critical policy due to the adoption of the guidance from ASC 606, Revenue from Contracts with Customers, and because of the variety of revenue generating transactions. We determine the amount of revenue to be recognized through the application of the following steps: (1) identify the contract; (2) identify the performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when (or as) performance obligations are satisfied.

Immersed enters into monthly and yearly subscription plans with our customers to provide immersive virtual reality offices where customers can spawn up to five virtual monitors and can collaborate with others in the same virtual space. We recognize revenue ratably over the term of the agreement, as our performance obligation is satisfied over time.

Immersed records contract service revenue when services are performed. Immersed records grant income as milestones are achieved.

**Stock-Based Compensation**

We measure and record the expense related to stock-based payment awards based on the fair value of those awards as determined on the date of grant. We recognize stock-based compensation expense over the requisite service period of the individual grant, generally equal to the vesting period and use the straight-line method to recognize stock-based compensation. For stock options with performance conditions, we record compensation expense when it is deemed probable that the performance condition will be met. We account for forfeitures as they occur. We selected the Black-Scholes option-pricing model as the method for determining the estimated fair value for stock options. The Black-Scholes option-pricing model requires the use of highly subjective and complex assumptions, which determine the fair value of stock-based awards, including the option's expected term and the price volatility of the underlying stock.

We calculated the fair value of options granted by using the Black-Scholes option-pricing model with the following assumptions:

*Expected Volatility* — We estimated volatility for option grants by evaluating the average historical volatility of a peer group of companies for the period immediately preceding the option grant for a term that is approximately equal to the options' expected term.

*Expected Term* — The expected term of the Immersed's options represents the period that the stock-based awards are expected to be outstanding. We have elected to use the midpoint of the stock options vesting term and contractual expiration period to compute the expected term, as we do not have sufficient historical information to develop reasonable expectations about future exercise patterns and post vesting employment termination behavior.

*Risk-Free Interest Rate* — The risk-free interest rate is based on the implied yield available on US Treasury zero coupon issues with a term that is equal to the options' expected term at the grant date. Dividend Yield — We have never declared or paid dividends and do not anticipate declaring dividends.

As such, the dividend yield has been estimated to be zero.

Refer to Note 4 — Stockholders' Equity to our audited consolidated financial statements included elsewhere in this Offering Circular.

**Common Stock Valuation**

In the absence of a public trading market for our common stock, the fair value of our common stock has historically been determined by our board of directors with inputs from management, taking into account our most recent valuations from an independent third-party valuation specialist. Our board of directors intended all stock options granted to have an exercise price per share not less than the per share fair value of our common stock on the date of grant. The valuations of our common stock were determined in accordance with the guidelines outlined in the American Institute of Certified Public Accountants ("AICPA") Accounting and Valuation Guide: Valuation of Privately-Held-Company Equity Securities Issued as Compensation (the "AICPA guide"). The assumptions used to determine the estimated fair value of our common stock are based on numerous objective and subjective factors, combined with management's judgment, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· relevant precedent transactions
 involving our capital stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· external market conditions
 affecting the industry and trends within the industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the rights, preferences
 and privileges of our redeemable convertible preferred stock relative to those of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· our financial condition
 and operating results, including our levels of available capital resources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the progress of our research
 and development efforts, our stage of development and business strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the likelihood of achieving
 a liquidity event, such as an initial public offering or a sale of our given prevailing market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the history and nature
 of our business, industry trends and competitive environment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the lack of marketability
 of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· recent secondary stock
 sales and tender offers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· equity market conditions
 affecting comparable public companies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· general U.S. and global
 market conditions.

In determining the fair value of our common stock, we have established the enterprise value of our business using the Market Approach: Guideline Public Company Method. The Market Approach: Guideline Public Company Method relies on an analysis of publicly traded companies similar in industry and/or business model to the Company. This methodology uses these guideline companies to develop relevant market multiples and ratios, using metrics such as revenue, earnings before interest and taxes (EBIT), earnings before interest, taxes, depreciation and amortization (EBITDA), net income and/or tangible book value. These multiples and values are then applied to the Company's corresponding financial metrics.

In order to determine the value of the Company's common shares as of September 8, 2024, 409a valuation, a global list of companies that could be considered similar to the Company. was compiled for comparative purposes from a variety of sources including Capital IQ and communication with management. Publicly traded guideline companies were selected based on consideration of business descriptions, operations and geographic presence, financial size and performance, stock liquidity, and management recommendations regarding most similar companies. The total equity value implied by the guideline companies was then applied in the context of an option pricing model ("OPM") to determine the value of each class of the Company's shares. The OPM allocates a company's equity value among the various capital investors. The OPM takes into account the preferred shareholders' liquidation preferences, participation rights, dividend policy, and conversion rights to determine how proceeds from a liquidity event shall be distributed among the various ownership classes at a future date. The reliance on the OPM through December 31, 2024, was appropriate when the range of possible future outcomes was difficult to predict and resulted in a highly speculative forecast.

Application of these approaches and methodologies involves the use of estimates, judgments and assumptions that are highly complex and subjective, such as those regarding our expected future revenue, expenses and future cash flows, discount rates, market multiples, the selection of comparable public companies, and the probability of and timing associated with possible future events. Changes in any or all of these estimates and assumptions or the relationships between those assumptions impact on our valuations as of each valuation date and may have a material impact on the valuation of our common stock.

**Internal Control Over Financial Reporting**

In connection with the audits of our financial statements for the years ended December 31, 2024 and 2023, a significant deficiency in our internal control was identified.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the Company's financial statements will not be prevented, or detected and corrected, on a timely basis. No deficiencies in internal control were identified that are considered to be material weaknesses.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. The following deficiency in internal control is considered to be a significant deficiency:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Design and implement controls
 to formalize roles and review responsibilities to align the team's skills and experience, including segregation of duties considerations.

For a description of the identified significant deficiency see section titled "Risk Factors — We have identified a significant deficiency in our design and implementation of controls to formalize roles and review responsibilities. If unable to remediate this significant deficiency or if management identifies additional deficiencies in the future or otherwise fail to maintain effective internal controls, we may not be able to accurately or timely report its financial position or results of operations, which may adversely affect our business and stock price or cause our access to the capital markets to be impaired."

We expect that our remediation efforts for this significant deficiency will include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· design and implement controls
 to formalize roles and review responsibilities to align the team's skills and experience, including segregation of duties considerations;

We plan to continue to assess our internal controls and procedures and intend to take further action as necessary or appropriate to address any other matters we identify.

**Quantitative and Qualitative Disclosures About Market Risk**

We are subject to market risk, primarily relating to potential losses arising from adverse changes in foreign currency exchange rates.

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

The table below sets forth our directors and executive officers as of the date of this Offering Circular.

---

| | | | |
|:---|:---|:---|:---|
| **Name**  | **Age**  | **Position**  | **Term of Office**  |
| **Executive Officers:** |  |  |  |
| Renji Bijoy | 34 | Chief Executive Officer | January 2017 |
| **Directors:** |  |  |  |
| Renji Bijoy | 34 | Director | January 2017 |

---

The Board of Directors of the Company are elected at each annual meeting of stockholders to hold office until the next annual meeting. Each director, including a director elected to fill a vacancy, shall hold office until his or her successor is elected and qualified or until his or her earlier resignation or removal. The Board of Directors has no nominating, auditing, or compensation committees. No date for the next annual meeting of stockholders is specified in the Company's bylaws or has been fixed by the Board of Directors.

The Board of Directors may appoint, or empower the chief executive officer or the president to appoint, such other officers and agents as the business of the corporation may require, each of whom shall hold office for such period, have such authority, and perform such duties as are provided in these bylaws or as the Board of Directors may from time to time determine. Subject to the rights (if any) of an officer under any contract of employment, any officer may be removed, either with or without cause, by an affirmative vote of the majority of the Board of Directors at any regular or special meeting of the board or, except in the case of an officer chosen by the Board of Directors, by any officer upon whom the power of removal is conferred by the Board of Directors. Any vacancy occurring in any office of the corporation shall be filled by the Board of Directors.

**Biographical Information**

***Renji Bijoy***

Mr. Bijoy is the Founder, Chief Executive Officer and Director of Immersed Inc. He is responsible for all aspects of building the company into one of the leading providers of enterprise AR/VR productivity solutions that is building AI productivity solutions to digitally transform the working environment to enhance worker and company efficiency. Prior to Immersed, he previously dedicated his time as an engineering mentor (consultant) in the Firehose Project (from April 2016 to August 2017) and at Viking Code school (from August 2017 to February 2017). Mr. Bijoy also worked for CNN as the lead software architect of greatbigstory.com (from September 2015 and May 2016) and at CareerBuilder as a senior software engineer (from November 2014 to August 2015). Prior to that, Mr. Bijoy worked at NCR Corporation as a mid-level software engineer (from January 2014 to November 2014). Mr. Bijoy holds a Bachelor of Science (B.S.), in Mathematics and Computer science from Emory University, and a Master of Science (M.S.) in Computer Science, specializing in Computational Perception and Robotics from Georgia Institute of Technology.

**Involvement in Certain Legal Proceedings**

No executive officer, member of the board of directors or control person of our Company has been involved in any legal proceeding listed in Item 401(f) of Regulation S-K in the past 10 years.

**COMPENSATION OF** **DIRECTORS AND EXECUTIVE OFFICERS**

Our board of directors has historically determined the compensation for our executive officers.

Our board of directors has designed, and intends to modify as necessary, our compensation and benefits programs to attract, retain, incentivize and reward talented and qualified executives who share our philosophy and desire to work towards achieving our goals. We believe our compensation programs should promote our success and align executive incentives with the long-term interests of our stockholders. Our current compensation programs reflect our startup origins and consist primarily of salary, bonus and equity awards. As our needs evolve, we intend to continue to evaluate our philosophy and compensation programs as circumstances require.

The following table represents information regarding the total compensation for the three highest paid executive officers or directors of the Company during the last completed fiscal year ended 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Capacity in which<br> compensation was received** | **Cash <br> Compensation ($)** | **Bonus ($)** | **Option <br> Awards ($)** | **Total<br> Compensation ($)** |
| Renji Bijoy | Chief Executive Officer | 72625.13 | 0 | 0 | 72625.13 |

---

**Directors Compensation**

No cash compensation was paid to the Company's directors for their service as directors for the year ended December 31, 2024.

**Executive Officers Compensation**

For 2024, the compensation program for our executive officers consisted of base salary and certain standard employee benefits. No cash bonus or equity awards were paid or granted during the fiscal year 2024.

**Equity Compensation**

Although we do not have a formal policy with respect to the grant of equity incentive awards to our executive officers, we believe that equity grants provide our executives with a strong link to our long-term performance, create an ownership culture and help to align the interests of our executives and our stockholders. In addition, we believe that equity grants promote executive retention because they incentivize executive officers to remain our employees during the vesting period. Accordingly, our board of directors may grant equity incentive awards to them from time to time. For additional information regarding outstanding equity awards held by our executive officer as of December 31, 2024, see the "Outstanding Equity Awards at 2024 Fiscal Year-End" table below.

**2017 Stock Option Plan**

On November 28, 2017, our board of directors adopted and our stockholders approved our 2017 Stock Option Plan (the "2017 Stock Option Plan"). The 2017 Stock Option Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock and restricted stock awards to our employees (and employees of any of our parent or majority-owned subsidiary). Our board of directors is the administrator of the 2017 Stock Option Plan.

The fair market value of each option granted is estimated in good faith by the Board to be the fair market value of a share of Common Stock on such day (which determination shall, to the extent applicable, be made in a manner that complies with Section 409A of the Code), and such determination shall be conclusive and binding for all purposes.

As of June 30, 2025, 11,984,141 options to purchase shares of Common Stock have been issued pursuant to stock option award agreements under the 2017 Stock Option Plan, with exercise prices ranging from $0.02 per share to $3.70 per share, and 1,492,595 shares of Common Stock remain available for future grants under the 2017 Stock Option Plan.

**Benefits and Perquisites**

In 2024, we provided benefits to our named executive officers on the same basis as provided to all of our employees, including medical, dental, vision, flexible spending accounts, vacation and paid holidays.

**Outstanding Equity Awards at 2024 Fiscal Year-End**

The following table presents, for each of our named executive officers, information regarding outstanding equity awards as of December 31, 2024.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Award Grant<br> Date** | **Number of <br> Securities<br> Underlying<br> Unexercised<br> Options<br> Exercisable (#)** | **Number of<br> Securities<br> Underlying<br> Unexercised<br> Options<br> Unexercisable (#)** | **Option Exercise<br> Price<sup>(2)</sup>** | **Option<br> Expiration Date** |
| Renji Bijoy | 11/03/2018 | 1318784<sup>(3)</sup> | – $| 0.03 | 11/03/2028 |
|  | 12/31/2021 | 1297264<sup>(3)</sup> | – $| 0.82 | 12/31/2031 |
|  | 12/31/2021 | 4912288<sup>(4)</sup> | – $| 0.82 | 12/31/2031 |
|  | 02/01/2022 | 3361969<sup>(4)</sup> | – $| 0.82 | 02/01/2032 |
|  | 11/14/2022 | 1704350<sup>(4)</sup> | – $| 0.82 | 11/14/2032 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) All options listed above cover shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Represents the fair market value of a share of our Common Stock on the date of grant, as determined by our board of directors.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Represent stock options granted outside of the 2017 Stock Option Plan.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Represent stock options granted under the 2017 Stock Option Plan.

**Employment Agreement**

We do not currently have an employment agreement with any of our directors or executive officers. We expect that our employment agreements when entered into with our executive officers will provide for a cash salary and participation in all employee benefit plans sponsored by us, in addition to paid vacation time and reimbursement for reasonable expenses.

**Advisor Agreement**

We have an advisor agreement (the "Advisor Agreement") with Lonsdale Enterprises Inc. (the "Advisor"), pursuant to which the Advisor will provide services as agreed with our Chief Executive Officer and members of our management as an independent contractor until the earlier of (i) final completion of the services, or (ii) termination by either party upon 30 day's prior written notice to the other party. The Advisor will receive no employee or similar benefits from us. In consideration for performing the services to us, the Advisor shall be granted an option to purchase shares of our Common Stock representing 0.20% of our fully-diluted capitalization as of the date of grant (the "Option"). The Option was granted on August 3, 2023, at a strike price of $0.56 and represented a total amount of 59,245 shares of Common Stock fully-vested.

Pursuant to the Advisor Agreement, we acknowledged that Joe Lonsdale is affiliated with Advisor and that Mr. Lonsdale is the managing member of Eight Partners VC, LLC, and its affiliated venture capital funds (collectively, the "8VC"), which are in the business of company incubation and formation and venture capital and private equity investing and which may now or in the future incubate, evaluate and/or invest in technologies or businesses similar to, or competitive with, those of ours.

**SECURITY OWNERSHIP OF** **MANAGEMENT AND CERTAIN SECURITYHOLDERS**

The following table and accompanying footnotes set forth information with respect to the beneficial ownership of our Common Stock and our Preferred Stock, as of the date of this Offering Circular, for (1) each person known by us to be the beneficial owner of more than 5% of the outstanding shares of Common Stock and our Preferred Stock, (2) each member of our board of directors, (3) each of our named executive officers, and (4) all of the members of our board of directors and our executive officers as a group. As of the date of this Offering Circular, our outstanding capital stock was 5,821,712 shares of Common Stock and 8,315,264 shares of Preferred Stock.

The number of shares and the percentages of beneficial ownership below are based on the number of shares of Common Stock and Preferred Stock issued and outstanding as of the date of this Offering Circular. In computing the number of shares of Common Stock and Preferred Stock beneficially owned by a person and the percentage ownership of such person, we deemed to be outstanding all shares of Common Stock and Preferred Stock subject to options held by the person that are currently exercisable or exercisable within 60 days of the date of this Offering Circular. We did not deem such shares outstanding, however, for the purpose of computing the percentage ownership of any other person.

Beneficial ownership for the purposes of the following table is determined in accordance with the rules and regulations of the SEC. A person is a "beneficial owner" of a security if that person has or shares "voting power", which includes the power to vote or to direct the voting of the security, or "investment power", which includes the power to dispose of or to direct the disposition of the security or has the right to acquire such powers within 60 days.

Unless otherwise noted in the footnotes to the following table, and subject to applicable community property laws, the persons and entities named in the table have sole voting and investment power with respect to their beneficially owned common stock and preferred stock. Unless otherwise noted, the address of each beneficial owner is c/o Immersed Inc., 106 E. 6th St. STE 900-202, Austin, Texas 78701.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Title of Class** | **Name and address of Beneficial<br> Owner** | **Amount and <br> nature of<br> beneficial<br> ownership** | **Amount and <br> nature<br> of beneficial<br> ownership<br> acquirable** | **Percent of<br> Class<sup>(1)</sup>** | **Fully-diluted<br> ownership -<br> Percent<sup>(2)</sup>** |
| Common Stock | Renji Bijoy, Chief Executive Officer, Director | 4000000 | 12594655<sup>(3)</sup> | 68.7% | 54.9% |
| Common Stock | All directors and executive officers<sup>(4)</sup> | 4000000 | 12594655<sup>(3)</sup> | 68.7% | 54.9% |
| **10% Stockholders:** |  |  |  |  |  |
| Series 1 Preferred Stock<sup>(5)</sup> | Entities affiliated to Sovereign's Capital II, LP<sup>(7)</sup> | 1881440 |  | 22.6% | 6.2%<sup>(6)</sup> |
| Series 1 Preferred Stock<sup>(5)</sup> | Entities affiliated to XX Investments LLC<sup>(8)</sup> | 1930310 |  | 38.8% | 10.7%<sup>(6)</sup> |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Based on 5,821,712 shares of Common Stock outstanding
 and 8,315,264 shares of Series 1 Preferred Stock outstanding, in each case as of the date of this Offering Circular.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Based on the aggregate amount of 14,136,976 shares
 of Common Stock and Series 1 Preferred Stock outstanding as of the date of this Offering Circular.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Represent (i) 9,978,607 options to acquire
 shares of Common Stock granted under the 2017 Stock Option Plan and (ii) 2,616,048 options to acquire shares of Common Stock
 granted outside of the 2017 Stock Option Plan, in each case exercisable within 60 days of the date of this Offering Circular.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) As of the date of this Offering Circular, Renji
 Bijoy is the sole director and the only executive officer of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The holders of Series 1 Preferred Stock are entitled to cast the number of votes equal to a 1:1 conversion of the number of whole shares of Common Stock into which the shares held are convertible as of the record date for determining stockholders entitles to vote on such matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Calculated on an as-converted basis, with one share of Series 1 Preferred Stock being converted to one share of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Address at 310 S. West Street, Ste 100, Raleigh, NC 27603.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Address at 4104 24<sup>th</sup> St. PMB 8113, San Francisco, CA 94114.

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

**Transactions with Related Persons**

***Notes Payable***

On July 11, 2024, Immersed entered into multiple promissory note agreements with related parties, including Immersed's chief executive officer, for a total principal amount of $420,000. The notes bear interest of 10% per annum with all principal and interest due and payable on the earlier of (a) July 11, 2025, or (b) in the events of default, which include voluntary and involuntary proceedings. As of June 30, 2025, Immersed has an outstanding principal of $62,000. The interest expense on the notes for the year ended December 31, 2024, and the period of six months ended June 30, 2025, amounted to $20,300 and $21,117, respectively, of which $16,917 and $9,514 remained accrued and outstanding as of December 31, 2024 and as of June 30, 2025, respectively.

***Indemnification Agreements***

We have also entered into indemnification agreements with each of our directors and executive officers. In general, these indemnification agreements require us to indemnify directors and officers to the fullest extent permitted by law against liabilities that may arise by reason of his or her service for us.

**Review, Approval and Ratification of Related Party Transactions**

Our board of directors reviews and approves all related party transactions.

**DESCRIPTION OF CAPITAL STOCK**

The following is a summary of the rights of our capital stock as provided in our Amended and Restated Certificate of Incorporation (as amended from time to time, the "Certificate of Incorporation"), Certificate of Designation of Series 1 Convertible Preferred Stock (as amended from time to time, the "Certificate of Designation"), and bylaws. For more detailed information, please see our Certificate of Incorporation and bylaws which have been filed as exhibits to the Offering Statement of which this Offering Circular is a part.

We are authorized to issue 33,000,000 shares of Common Stock, par value $0.00001 per share, and 8,950,000 shares of Preferred Stock, par value $0.00001 per share. As of the date of this Offering Circular, there were 5,821,712 shares of Common Stock outstanding and 8,315,264 shares of Preferred Stock outstanding. Pursuant to the Certificate of Designation, each share of Preferred Stock is designated as Series 1 Convertible Preferred Stock (the "Series 1 Preferred Stock").

**Common Stock**

***Voting***

The holders of shares of Common Stock are entitled to one vote for each share held of record by such holder on all matters on which stockholders generally are entitled to vote; provided, however, that, except as otherwise required by law, holders of shares of Common Stock, as such, shall not be entitled to vote on any amendment to the Certificate of Incorporation, including any certificate of designations relating to any series of Preferred Stock, that relates solely to the terms of one or more outstanding series of Preferred Stock if the holders of such affected series are entitled, either separately or together with the holders of one or more other such series, to vote thereon pursuant to the Certificate of Incorporation and the Certificate of Designation. There shall be no cumulative voting.

***Dividends***

Subject to the rights of the holders of any outstanding series of Preferred Stock, the holders of shares of Common Stock shall be entitled to receive dividends to the extent permitted by law when, as and if declared by the Board of Directors of the Company. Our Board of Directors may or may not decide to declare dividends in the future. See "Dividend Policy." The Board of Directors' determination to issue dividends will depend upon our profitability, financial condition, and other factors that our Board of Directors deems relevant.

***Liquidation Rights***

Upon the dissolution, liquidation, or winding up of the Company, subject to the rights of the holders of any outstanding series of Preferred Stock, the holders of shares of Common Stock shall be entitled to receive the assets of the Company available for distribution to its stockholders ratably in proportion to the number of shares held by them.

**Series 1 Preferred Stock**

***Rank***

Shares of Series 1 Preferred Stock ranks senior to the shares Common Stock and any other class of securities that is specifically designated as junior to the shares of Series 1 Preferred Stock (the "Junior Securities").

***Voting***

Each holder of outstanding shares of Series 1 Preferred Stock shall be entitled to cast the number of votes equal to the number of whole shares of Common Stock into which the shares of Series 1 Preferred Stock held by such holder are convertible as of the record date for determining stockholders entitled to vote on such matter. Except as provided by law or by the Certificate of Designation, holders of shares of Series 1 Preferred Stock shall vote together with the holders of shares of Common Stock as a single class and on an as-converted to shares of Common Stock basis.

***Dividends***

The Company is restricted from declaring dividends on any class or series of its capital stock (other than Common Stock dividends paid in Common Stock) unless the holders of shares of Series 1 Preferred Stock receive, either first or simultaneously, a dividend per share that is at least equal to the dividend computed as follows:

 *For dividends on shares of Common Stock or any class convertible into shares of Common Stock*. Each Series 1 Preferred share must receive a dividend equal to the dividend payable on a share of that class—determined as if all shares were converted into shares of Common Stock—multiplied by the number of shares of Common Stock issuable upon conversion of one Series 1 Preferred share, based on the record date.

 *For dividends on any class that is not convertible into shares of Common Stock.* Each Series 1 Preferred share must receive a dividend calculated by taking the dividend per share of the non-convertible class, dividing it by that class's original issuance price (adjusted for stock dividends, splits, or similar recapitalizations), and then multiplying by the Series 1 Original Issue Price (i.e., $4.11107 per share, subject to adjustment).

If the Company declares dividends on more than one class or series on the same date, the dividend for shares of Series 1 Preferred Stock is determined based on the class that yields the highest dividend for holders of shares of Series 1 Preferred Stock.

***Liquidation Rights***

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company (a "Liquidation"), holders of Series 1 Preferred Stock are entitled to be paid out of the assets of the Company available for distribution, before any payment shall be made to the holders of Junior Securities, an amount per share in cash equal to the greater of (i) the Series 1 Original Issue Price, plus any dividends declared but unpaid, or (ii) such amount per share as would have been payable had all shares of Series 1 Preferred Stock been converted into shares of Common Stock according to the Certificate of Designation immediately prior to such Liquidation (the "Liquidation Amount"). In the event of such Liquidation, after the payment in full of all Liquidation Amount required to be paid to the holders of shares Series 1 Preferred Stock, the remaining assets available for distribution or, in the case of a Deemed Liquidation (as defined in the Certificate of Designation), the consideration not payable to the holders of shares of Preferred Stock shall be distributed among the holders of Junior Securities, pro rata based on the number of shares held by each such holder.

***Conversion Rights***

Each share of Series 1 Preferred Stock is convertible into shares of Common Stock at the rate of 1:1 the total issued and outstanding shares of Common Stock at the time of conversion, subject to adjustments.

***Redemption Rights***

Shares of Series 1 Preferred Stock are not redeemable.

***Amendment and Protective Provisions***

At any time when at least 1,000,000 shares of Series 1 Preferred Stock are outstanding, Holders of Series 1 Preferred Stock are entitled to certain protective provisions (the "Protective Provisions"), including, among others, (i) to liquidate, dissolve or wind-up the business of the Company, effect any merger or consolidation or any other Liquidation, unless the aggregate consideration payable to the Company and/or its stockholders is at least $140,000,000; (ii) amend or repeal any provision of the Certificate of Incorporation, the Certificate of Designation, or the Company's bylaws in a manner that adversely affects the shares of Series 1 Preferred Stock; (iii) create, authorize the creation of, or issue or reclassify, any capital stock unless the same ranks junior to the shares of Series 1 Preferred Stock with respect to its rights, preferences and privileges; and (iv) increase the authorized number of shares of Series 1 Preferred Stock or any additional class or series of capital stock of the Company unless the same ranks junior to the shares of Series 1 Preferred Stock. In order to approve a Protective Provision, the Company needs to obtain the written consent or affirmative vote of the holders of at least a majority of the outstanding shares of Series 1 Preferred Stock (the "Requisite Holders") given in writing or by vote at a meeting, consenting or voting (as the case may be) separately as a class.

The Certificate of Designation may be amended, modified or waived only by an instrument in writing executed by the Company and the Requisite Holders.

**Lock-Up Agreement**

The Subscribers holding shares of Common Stock issued under this Offering Statement, will provide an undertaking in the Subscription Agreement to lock-up its shares of Common Stock if requested by the Company. By providing this undertaking, Subscribers agree that in the event of an underwritten public offering or direct listing on a public exchange of the Company's securities or the closing of a merger or other business combination of the Company with a publicly-traded special purpose acquisition company following which the capital stock of the combined or surviving entity are listed for trading on a public exchange, that such Subscriber will irrevocably agree not to sell, contract to sell, grant any option to purchase, transfer the economic risk of ownership in, make any short sale of, lend, pledge, or otherwise transfer or dispose of any interest in any shares of Common Stock or any securities convertible into or exchangeable or exercisable for or any other rights to purchase or acquire shares of Common Stock during the 180-day period following the effective date of a registration statement or offering statement of the Company filed under the Securities Act.

**Fully Paid and Non-assessable**

All outstanding shares of Common Stock are, and the shares of Common Stock to be outstanding upon completion of this Offering will be, duly authorized, validly issued, fully paid and non-assessable.

**Changes in Authorized Number**

Subject to the rights of the holders of any outstanding series of Preferred 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 at least a majority of the voting power of the stock outstanding and entitled to vote thereon.

**Limitations on Liability and Indemnification of Officers and Directors**

Delaware law authorizes corporations to limit or eliminate (with a few exceptions) the personal liability of directors to corporations and their stockholders for monetary damages for breaches of directors' fiduciary duties as directors. Our Certificate of Incorporation include a provision that eliminate, to the extent permitted by the Delaware law, the personal liability of directors for monetary damages for breach of fiduciary duty as a director. Additionally, our bylaws include provisions that eliminate, to the extent allowable under Delaware law, the personal liability of directors or officers for monetary damages for actions taken as a director or officer, as the case may be.

Our bylaws also provide that we must indemnify and advance reasonable expenses to our directors and officers to the fullest extent permitted by Delaware law. We are also expressly authorized to carry directors' and officers' insurance for our directors, officers, employees and agents for some liabilities. We currently maintain directors' and officers' insurance, covering liabilities that may be incurred by directors and officers in the performance of their duties.

The limitation of liability and indemnification provisions in our Certificate of Incorporation and bylaws, as applicable may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duty. These provisions may also 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 that, in a class action or direct suit, we pay the costs of settlement and damage awards against directors and officers pursuant to the indemnification provisions in our Certificate of Incorporation and bylaws.

There is currently no pending litigation or proceeding involving any of the directors, officers, or employees for which indemnification is sought.

**2017 Stock Option Plan**

On November 28, 2017, our board of directors adopted and our stockholders approved our 2017 Stock Option Plan (the "2017 Stock Option Plan"). The 2017 Stock Option Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock and restricted stock awards to our employees (and employees of any of our parent or majority-owned subsidiary). As of June 30, 2025, 11,984,141 options to purchase shares of Common Stock have been issued pursuant to stock option award agreements under the 2017 Stock Option Plan, with exercise prices ranging from $0.02 to $3.70 per share, and 1,492,595 shares of Common Stock remain available for future grants under the 2017 Stock Option Plan.

**Transfer Agent and Registrar**

The transfer agent and registrar for our Common Stock to be issued pursuant to this Offering Statement will be DealMaker Transfer Agent LLC, an agent registered pursuant to Section 17A(c) of the Exchange Act.

**Increase our Authorized Capital Stock**

The number of shares of Common Stock currently authorized under our Certificate of Incorporation is not sufficient to cover the total number of shares of Common Stock we are offering pursuant to this Offering. Prior to the qualification of this Offering by the SEC, we intend to file an amended and restated certificate of incorporation with the Secretary of State of the State of Delaware to increase the number of authorized shares of our Common Stock to a number sufficient to cover the shares offered hereby and to provide us with additional authorized but unissued shares for future corporate purposes. The financial and share-related information presented in this Offering Circular does not currently assume the filing and effectiveness of such amended and restated certificate of incorporation. There can be no assurance that such amendment will be effected as currently anticipated.

**Forward Stock Split**

In connection with this Offering and subject to stockholder approval, we intend to effect a forward stock split of our Common Stock at a ratio of 20-for-1 prior to qualification of this Offering. The purpose of the forward stock split is to proportionally increase the number of shares of our Common Stock outstanding and adjust the per-share price of the Shares offered so that the public offering price falls within the anticipated price range of $0.50 to $1.00 per share. The forward stock split ratio of 20-for-1 may be adjusted by the Board in its discretion as it deems necessary to achieve the desired price range.

The number of Shares and price range included in this Offering Circular does not currently assume that the forward stock split has been effected. The forward stock split has not yet occurred and will be implemented following stockholder approval and immediately prior to the qualification of this Offering and effectiveness of the related amended and restated certificate of incorporation. Upon approval of the forward stock split, we intend to file an amendment to this Offering Circular with the SEC to reflect the stock split, including updated disclosures regarding the number of Shares offered, price range, and revisions to our financial statements and related financial information. The actual ratio and timing of the forward stock split will be determined by our board of directors in its sole discretion and remain subject to change. There can be no assurance that the forward stock split will occur as currently contemplated or that it will achieve the intended price range for the Offering.

**ABSENCE OF** **PUBLIC MARKET**

No public market has developed nor is expected to develop for our shares of Common Stock, and in the near future we do not intend to list our shares of Common Stock on a national securities exchange or interdealer quotation system. (See Risk Factors starting on page 6.)

**DIVIDEND POLICY**

We plan to retain any earnings from future revenues for the foreseeable future for our operations. We have never paid any cash dividends on our shares of Common Stock and do not anticipate paying any cash dividends in the foreseeable future. Any future determination to pay cash dividends will be at the sole discretion of our Board of Directors and will depend on our financial condition, operating results, capital requirements and such other factors as our Board of Directors deems relevant.

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed with the SEC a Regulation A+ Pre-Qualification Amendment No. 1 to the Offering Statement on Form 1-A under the Securities Act with respect to the Shares of Common Stock offered hereby. This Offering Circular, which constitutes a part of the Offering Statement, does not contain all of the information set forth in the Offering Statement or the exhibits and schedules filed therewith. For further information about us and the shares of Common Stock offered hereby, we refer you to the Offering Statement and the exhibits and schedules filed therewith. Statements contained in this Offering Circular regarding the contents of any contract or other document that is filed as an exhibit to the Offering Statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the Offering Statement. The SEC maintains an Internet website that contains reports and other information about issuers, including us, that file electronically with the SEC. The address of this site is www.sec.gov.

**LEGAL** **MATTERS**

We have retained Greenberg Traurig, LLP. to advise us in connection with the preparation of this Offering Circular, the Subscription Agreement and any other documents related thereto. Greenberg Traurig, LLP. has not been retained to represent the interests of any stockholder in connection with this offering. All prospective investors that are evaluating or purchasing Shares should retain their own independent legal counsel to review this Offering Circular, the Subscription Agreements and any other documents and matters related whatsoever to this Offering, and to advise them accordingly.

**INDEPENDENT AUDITORS**

Our interim financial statements (unaudited) for the six months ended June 30, 2025, included in this Offering Ciruclar, have been prepared by Alice CPA, an independent registered public accounting firm ("Alice CPA"). Our financial statements as of December 31, 2024 and 2023, and for each of the two years in the period ended December 31, 2024 and 2023, included in this Offering Circular, have been audited by Alice CPA as stated in their report appearing herein and elsewhere in this Offering Circular. Such financial statements have been included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing.

**INDEX TO FINANCIAL** **STATEMENTS**

---

| | |
|:---|:---|
|  | <u>Page</u> |
| **Interim Financial Statements (Unaudited) as of June 30, 2025 and December 31, 2024 and for the six months ended June 30, 2025 and 2024** |  |
| [Independent Account's Review Report](#a_001) | [F-3](#a_001) |
| [Balance Sheets](#a_002) | [F-4](#a_002) |
| [Statements of Operations](#a_003) | [F-5](#a_003) |
| [Statements of Changes in Stockholders' Equity (Deficit)](#a_004) | [F-6](#a_004) |
| [Statements of Cash Flows](#a_005) | [F-7](#a_005) |
| [Notes to Interim Financial Statements](#a_006) | [F-8 – F-23](#a_006) |

---

---

| | |
|:---|:---|
| **Audited Financial Statements as of December 31, 2024 and 2023, and for the years then ended** |  |
| [Independent Accountant's Audit Report](#pra_001) | [F-26](#pra_001) |
| [Balance Sheets](#pra_002) | [F-28](#pra_002) |
| [Statements of Operations](#pra_003) | [F-29](#pra_003) |
| [Statements of Changes in Stockholders' Equity (Deficit)](#pra_004) | [F-30](#pra_004) |
| [Statements of Cash Flows](#pra_005) | [F-31](#pra_005) |
| [Notes to Financial Statements](#pra_006) | [F-32 – F-44](#pra_006) |

---

 **Immersed Inc.**

(a Delaware Corporation)

Interim Financial Statements (Unaudited)

As of June 30, 2025 and December 31, 2024

and for the six months ended June 30, 2025 and June 30, 2024

Reviewed by

![](tm2528799d1_1aimg01.jpg)

Alice.CPA LLC

A New Jersey CPA Company

![](tm2528799d1_1aimg02.jpg)

Independent Accountant's Review Report

October 14, 2025

To: Board of Directors of Immersed Inc.

Re: Interim Period June 30, 2025—Financial Statement Review

Financial Review of the Financial Statements

We have reviewed the accompanying financial statements of Immersed Inc., which comprise the balance sheets as of June 30, 2025, and the related statements of income, changes in stockholders' equity, and cash flows for the six-month period then ended, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management's financial data and making inquiries of company management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error.

Accountant's Responsibility

Our responsibility is to conduct the review engagements in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion.

We are required to be independent of Immersed Inc. and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our reviews.

Accountant's Conclusion

Based on our reviews, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America.

/s/ Alice.CPA LLC

Alice.CPA LLC

Robbinsville, New Jersey

October 14, 2025

![](tm2528799d1_1aimg03.jpg)

Immersed Inc.

Balance Sheet

As of the interim period ended June 30, 2025 and the year

ended December 31, 2024

---

| | | |
|:---|:---|:---|
|  | June 30, 2025 <br>(Unaudited) | December 31, 2024 <br>(Audited) |
| ASSETS |  |  |
| Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash in bank | $372274 | $242490 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 2540 | 114314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other assets | 46930 | 312117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Digital Assets, net | 2642 | 2642 |
| Total Current Assets | 424386 | 671563 |
| Non-Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment, net | 30831 | 40089 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net | 197809 | 199132 |
| Total Non-Current Assets | 228640 | 239221 |
| TOTAL ASSETS | $653026 | $910784 |
| LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT) |  |  |
| Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $5111273 | $5558992 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 859938 | 740656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest payable | 390613 | 198531 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 2751587 | 3025713 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; vProperty deposits |  | 73391 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Merchant cash advances, net | 404910 | 295350 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans payable, net | 232176 | 195854 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Note payable - related party | 62000 | 177000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other accrued liabilities | 73578 | - |
| Total Current Liabilities | 9886075 | 10265487 |
| Non-Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible notes payable | 6553466 | 4599300 |
| Total Liabilities | 16439541 | 14864787 |
| Stockholders' Equity/(Deficit): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock, $0.00001 par value, 33,000,000 shares authorized as of June 30, 2025 and December 31, 2024, 5,821,712 shares issued and outstanding as of June 30, 2025 and December 31, 2024 | 60 | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 1 Preferred stock, $0.00001 par value, 8,950,000 shares authorized, 8,315,265 shares issued and outstanding, liquidation preference of $34,184,635, as of <br>June 30, 2025 and December 31, 2024 | 82 | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 17463952 | 17420246 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (33250609) | (31374391) |
| Total Stockholders' Equity/(Deficit) | (15786515) | (13954003) |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT) | $653026 | $910784  |

---

The accompanying footnotes are an integral part of these financial statements.

Immersed Inc.

Income Statement

For the Six Months Ended June 30, 2025 and June 30, 2024

---

| | | |
|:---|:---|:---|
|  | June 30, 2025<br>(Unaudited) | June 30, 2024<br>(Unaudited) |
| Revenues | 493936 | 224180 |
| Cost of revenues | (56779) | (81332) |
| Gross profit | 437157 | 142848 |
| Operating Expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administration expenses | 492594 | 1051253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AR/VR product expenses | 1084126 | 5812832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Marketing and advertising | 277291 | 31852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Digital asset impairment gains, net |  | (1900) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees | 89591 | 218445 |
| Total Operating Expenses | 1943602 | 7112482 |
| Loss from Operations | (1506445) | (6969634) |
| Other Income (Expenses): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income | 73391 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (442554) | (146554) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (Loss) on disposal of digital assets, property and equipment | (610) | 3812 |
| Total Other Income (Expenses) | (369773) | (142742) |
| Net loss | $(1876218) | $(7112376) |
| Weighted average common stock outstanding - basic and diluted | 5821712 | 5801807 |
| Net loss per share - basic and diluted | $(0.32) | $(1.23) |

---

The accompanying footnotes are an integral part of these financial statements.

Immersed Inc.

Statement of Changes in Stockholders' Equity

For the Six Months Ended June 30, 2025 and June 30, 2024

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Common Stock | Common Stock | Series 1 Preferred stock | Series 1 Preferred stock | | | |
|  | <br>Shares | Value<br>($ par) |<br>Shares | Value<br>($ par) |<br>Additional Paid<br>in Capital |<br>Accumulated<br>Deficit |<br>Total Stockholders'<br>Equity |
| Balance as of December 31, 2023 (Audited) | 5800045 | $58 | 8315265 | $82 | $17184289 | $(17105062) | $79367 |
| Issuance of common stock upon exercise of stock options | 856 |  |  |  | 702 |  | 702 |
| Issuance of common stock for services | 2519 |  |  |  |  |  |  |
| Stock-based compensation-stock options |  |  |  |  | 144312 |  | 144312 |
| Net loss | - | - | - | - | - | (7112376) | (7112376) |
| Balance as of June 30, 2024 (Unaudited) | 5803420 | $58 | 8315265 | $82 | $17329303 | $(24217438) | $(6887995) |
| Issuance of common stock upon exercise of stock options | 18292 | 2 |  |  | 14998 |  | 15000 |
| Stock-based compensation-stock options |  |  |  |  | 75945 |  | 75945 |
| Net loss | - | - | - | - | - | (7156953) | (7156953) |
| Balance as of December 31, 2024 (Audited) | 5821712 | $60 | 8315265 | $82 | $17420246 | $(31374391) | $(13954003) |
| Stock-based compensation-stock options |  |  |  |  | 34386 |  | 34386 |
| Issuance of common stock for services |  |  |  |  | 9320 |  | 9320 |
| Net loss | - | - | - | - | - | (1876218) | (1876218) |
| Balance as of June 30, 2025 (Unaudited) | 5821712 | $60 | 8315265 | $82 | $17463952 | $(33250609) | $(15786515) |

---

The accompanying footnotes are an integral part of these financial statements.

Immersed Inc.

Statement of Cash Flows

For the Six Months Ended June 30, 2025 and June 30, 2024

---

| | | |
|:---|:---|:---|
|  | June 30, 2025 <br>(Unaudited) | June 30, 2024 <br>(Unaudited) |
| Cash Flows from Operating Activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss | $(1876218) | $(7112376) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 18767 | 27049 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bad debt expense | 1860 | 6450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation | 34386 | 144312 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock issued for services | 9320 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of discounts on convertible notes payable | 13490 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of discounts on merchant cash advances and loans payable | 187104 | 86404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of discount on operating lease liability |  | 6547 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposal of property and equipment | 610 | 213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Digital asset impairment losses (gains on sale), net |  | (1900) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Increase)/decrease in accounts receivable | 109914 | 247122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Increase)/decrease in prepaid expenses and other assets | 265187 | (66703) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Increase)/decrease in operating lease right-of-use asset |  | 196263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase/(decrease) in accounts payable | (447718) | 2241191 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase/(decrease) in accrued expenses and interest | 311364 | 318752 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase/(decrease) in deferred revenue | (274126) | 1015980 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase/(decrease) in operating lease liability |  | (188657) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase/(decrease) in vProperty deposits | (73391) | (12309) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase/(decrease) in other current liabilities | 73578 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Cash Used in Operating Activities | (1645873) | (3091662) |
| Cash Flows from Investing Activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of intangible assets | (6390) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sale of digital assets |  | 8284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of property and equipment | (3167) | (12280) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sale of property and equipment | 760 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Cash Used in Investing Activities | (8797) | (3996) |
| Cash Flows from Financing Activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from convertible notes payable | 1940676 | 1000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of notes payable | (115000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from merchant cash advances | 432000 | 525000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of merchant cash advances | (481740) | (223468) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from loans payable | 132900 | 337600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of loans payable | (124382) | (105428) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of common stock |  | 702 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Cash Provided by Financing Activities | 1784454 | 1534406 |
| Net change in cash in bank | 129784 | (1561252) |
| Cash in bank at beginning of period | 242490 | 1589997 |
| Cash in bank at end of period | $372274 | $28745 |
| Supplemental Disclosure of Cash Flow Information |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for interest | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for income taxes | $- | $- |

---

The accompanying footnotes are an integral part of these financial statements.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

NOTE 1 – NATURE OF OPERATIONS

Immersed Inc., previously known as AraJoy Inc., (the "Company"), was incorporated on January 4, 2017 under the laws of the State of Delaware. Effective November 29, 2017, the Company amended its certificate of incorporation to change its corporate name from AraJoy Inc. to Immersed Inc.

The Company is a software company providing virtual reality offices for remote teams and individuals. The Company's technology is available on the following platforms: Facebook/Meta Quest, HTC, Pico, Apple, and planning to expand onto other platforms in the future.

During 2023, the Company began the development of Visor, its own work-optimized spatial computing AR/VR headset. The Company announced Visor in August 2023 and started pre-orders in September 2023, with initial deliveries of Visor beginning in 2025 and targeting mass production in 2026.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of the significant accounting policies of the Company is presented to assist in understanding the Company's financial statements. The financial statements and notes are representations of the Company's management, who is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.

Basis of Accounting

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America ("US GAAP"). Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification ("ASC") and Accounting Standards Updates ("ASU") of the Financial Accounting Standards Board ("FASB").

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Significant estimates used in the preparation of the accompanying financial statements include recording of depreciation and amortization, digital assets impairment gains/losses, collectible valuation of accounts receivable and the estimate of valuation of stock-based compensation.

Risks and Uncertainties

The Company's business and operations are sensitive to general business and economic conditions in the United States. A host of factors beyond the Company's control could cause fluctuations in these conditions. Adverse conditions may include recession, downturn or otherwise, local competition or changes in consumer taste. These adverse conditions could affect the Company's financial condition and the results of its operations.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

Concentration of Credit Risk

The Company maintains its cash with financial institutions located in the United States of America, which it believes to be credit worthy. The Federal Deposit Insurance Corporation insures balances up to $250,000. At times, the Company may maintain balances in excess of the federally insured limits. The Company has not experienced any losses for balances in excess of federally insured limits.

Going Concern

The accompanying financial statements have been prepared using US GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

The Company sustained net losses amounting to $1,876,218 and $7,112,376 for the six-month periods ended June 30, 2025 and 2024, respectively. It has a working capital deficit of $9,461,689 and an accumulated deficit of $33,250,609 as of June 30, 2025. The Company also reported negative cash flows from operating activities of $1,645,873 and $3,091,662 for the six-month periods ended June 30, 2025, and 2024, respectively. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. Management's plans to mitigate the conditions and events that raise substantial doubt about the Company's ability to continue as a going concern include immediate efforts to raise additional funds through both a private capital raise and a public crowdfunding campaign, as well as plans to increase revenue by hiring sales staff and aggressively marketing current and future product offerings. The Company's ability to meet its obligations as they become due is dependent upon its ability to generate sufficient cash flow from operations and/or obtain additional external capital financing. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

Cash and Cash Equivalents

The Company considers all highly liquid securities with an original maturity of less than three months to be cash equivalents. The Company's cash and cash equivalents in bank deposit accounts, at times, may exceed federally insured limits. As of June 30, 2025 and December 31, 2024, the Company's cash in bank balance has exceeded federally insured limits by $122,274 and $0, respectively. As of June 30, 2025, and December 31, 2024, the Company held cash balances at Silicon Valley Bank, which carries a credit risk that deposits may not be collectible or fully liquid. The Company has not experienced any losses through the date when the financial statements were available to be issued.

The Company considers all highly liquid securities with an original maturity of less than three months to be cash equivalents. As of June 30, 2025 and December 31, 2024, the Company held cash balances at Silicon Valley Bank, which carried a credit risk that deposits may not be collectible or fully liquid.

Accounts Receivable

Accounts receivables are carried at their estimated collectible amounts and are periodically evaluated for collectability based on past credit history with customers and other factors. Provisions for losses on accounts receivable are determined based on loss experience, known and inherent risk in the account balance and current economic conditions. As of June 30, 2025, and December 31, 2024, management considers its accounts receivable as fully collectible and no allowance for credit losses has been recorded.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

For the six-month periods ending June 30, 2025 and 2024, the Company wrote off $1,860 and $6,450 of its accounts receivable as bad debt expense.

Prepaid Expenses

Prepaid expenses include engineering consulting service fees and subscription fees for periods after June 30, 2025, and December 31, 2024.

Digital Assets

During the period ended June 30, 2025 and December 31, 2024, the Company held a minimal amount of Ethereum and USDC through the sale of Immersed Virtual Property ("vProperty") in prior years. See deferred revenue accounting policy for additional information on deposits held from these vProperty sales.

The Company accounts for its digital assets, which are comprised solely of Ethereum and USDC, as indefinite-lived intangible assets in accordance with Accounting Standards Codification (ASC") 350, *Intangibles-Goodwill and Other*. The Company's digital assets are initially recorded at cost and assessed for impairment based on observable market prices in accordance with ASC 820.

Prior to 2024, the Company's activities included the acquisition, sale, and refunding of Ethereum in connection with its discontinued vProperty project, resulting in gains and impairment losses on digital assets.

During 2024, the Company reversed previously recognized digital asset impairment losses of $1,895 and recognized an additional gain of $4,064 from the exchange of Ethereum for USDC. No additional gain or loss was recorded on digital assets during the period January to June 2025. As of December 31, 2024, and June 30, 2025, the Company held approximately $6 in Ethereum and $2,635 in USDC, with no changes to these balances during the six-month period ended June 30, 2025.

Property and Equipment

Property and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance, and repairs are charged to expense as incurred. When equipment is retired or sold, the cost and related accumulated depreciation are eliminated from the accounts, and the resultant gain or loss is reflected in the income statement. Depreciation is recorded for property and equipment using the straight-line method over the estimated useful lives of assets which is 3 to 7 years.

Property and equipment as of June 30, 2025, and December 31, 2024, were as follows:

---

| | | |
|:---|:---|:---|
|  | June 30, 2025 | December 31, 2024 |
| Equipment | $111681 | $115602 |
| Furniture and fixture | 26511 | 28019 |
|  | 138192 | 143621 |
| Less: accumulated depreciation | (107361) | (103532) |
| Total property and equipment, net | $30831 | $40089 |

---

Depreciation expense of $11,054 and $19,426 was recorded for the six-month periods ended June 30, 2025 and 2024, respectively.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

For the six-month periods ended June 30, 2025 and 2024, the Company disposed property and equipment with carrying amount of $1,370 and $213, received $760 and $0 in proceeds, and recognized $610 and $213 as loss on disposals of property and equipment in the statements of operations, all respectively.

Intangible Assets

During the six months ended June 30, 2025, the Company purchased two domain names. As of June 30, 2025, the Company has capitalized a total of $235,075 in domain names. All domain names capitalized are amortized over the length of 15 years. Amortization expense for the six-month periods ended June 30, 2025 and 2024 was $7,713 and $7,623, respectively.

Impairment of Long-Lived Assets

The management continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the management assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the management recognizes an impairment loss based on the excess of the carrying amount over the fair value of the Company's long-lived assets. The Company did not recognize any impairment losses on its property and equipment and intangibles assets during the six-month period ended June 2025 and the year ended December 31, 2024.

Convertible Instruments

GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. An exception to this rule is when the host instrument is deemed to be conventional as that term is described under applicable GAAP.

When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The Company also records, when necessary, deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the transaction and the effective conversion price embedded in preferred shares.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

Fair Value of Financial Instruments

The Company's financial instruments consist primarily of cash, accounts receivable, digital assets, accounts payable, accrued expenses and convertible notes payable.

Financial Accounting Standards Board ("FASB") guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active).

Level 3 - Unobservable inputs for the asset or liability. Financial instruments are considered Level 3 when their fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable.

As of June 30, 2025, and December 31, 2024, the carrying amounts of the Company's financial assets and liabilities reported in the balance sheets approximate their fair value.

Revenue Recognition

ASC Topic 606, *Revenue from Contracts with Customers* establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: 1) identify the contract with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to performance obligations in the contract; and 5) recognize revenue as the performance obligation is satisfied. No adjustments to revenue recognition were required from the adoption of ASC 606, which was adopted on January 1, 2019 and retroactively applied to the periods presented.

The Company enters monthly and yearly subscription plans with the customers to provide immersive virtual reality offices where customers can spawn up to five virtual monitors and can collaborate with others in the same virtual space. The Company recognizes revenue ratably over the term of the agreement, as the Company's performance obligation is satisfied over time.

During the period ended June 30, 2025, the Company recognized software subscription revenue totaling $200,594 and contract services revenue totaling $293,342. These amounts are included in revenues in the accompanying statements of operations.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

Deferred Revenue

Deferred revenue consists of the following as of June 30, 2025, and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | June 30, 2025 | December 31, 2024 |
| Subscriptions | 52829 | 50168 |
| Visor pre-order and visor plus deposits | 2698758 | 2975545 |
| Total deferred revenue | $2751587 | $3025713 |

---

 *Subscriptions*

Deferred revenue as of December 31, 2024, and June 30, 2025, pertains to subscription payments collected but not yet earned for the Immersed virtual reality application annual subscriptions. The Company expects to recognize the deferred revenue balance as of December 31, 2024, in 2025, and the deferred revenue balance as of June 30, 2025, over the period from 2025 through 2026, as the related service obligations are satisfied.

 *Visor Pre-Order Deposits*

During 2023, the Company began development of its work-focused AR/VR headset, Visor, and commenced accepting pre-order deposits in September 2023. Additional pre-order deposits were received during 2024 and through mid-2025. Pre-order deposits will be recognized as revenue when the related orders are fulfilled.

vProperty Deposits

During 2022, the Company created Immersed Virtual Property ("vProperty") and received Ethereum deposits from customers for vProperty. The deeds to the virtual property were in the form of non-fungible tokens (NFT's).

In 2023, the Company discontinued the vProperty project to refocus on spatial computing, and no vProperty was delivered to customers. Customers were notified of the refund process and were required to return their vProperty NFTs in order to receive a refund. As customers returned their vProperty deeds, the Company refunded deposits in Ethereum to customers from 2023 through the end of 2024. The remaining deposit balances were presented as vProperty deposits on the balance sheets.

As of December 31, 2024, vProperty deposits totaled 51 Ethereum valued at $73,391. During the period ended June 30, 2025, the Company recognized $73,391 in other income, pertaining to unclaimed vProperty deposits following the cancellation of the project and conclusion of the refund process. As of June 30, 2025, the vProperty deposits had a balance of $0.

Cost of Revenues

Cost of revenue primarily includes the direct costs of maintaining the Immersed virtual reality (AR/VR) software application, software subscriptions, hosting, servers and storage costs and supplies. The cost of revenues also includes the direct cost of any merchandise sold.

Marketing and Advertising Expense

Marketing and advertising expenses are expensed as incurred.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

AR/VR Product Expenses

AR/VR product expenses are expensed as incurred and include expenses related directly to producing the Immersed virtual reality (AR/VR) software application and products accessed within it. Also included are expenses directly related to developing Immersed's work-focused AR/VR headset, Visor. Within the Immersed virtual reality (AR/VR) software application, there are both paid-use and free-use products.

Stock Based Compensation

The Company measures all stock-based awards granted to employees and directors based on the fair value on the date of the grant and recognizes compensation expense for those awards, net of estimated forfeitures, over the requisite service period, which is generally the vesting period of the respective award. The Company issues stock-based awards with only service-based vesting conditions and records the expense for these awards using the straight-line method.

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

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

Income Taxes

The Company uses the liability method of accounting for income taxes as set forth in ASC 740, *Income Taxes*. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is unlikely that the deferred tax assets will be realized.

The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances and information available at the reporting date. In accordance with ASC 740-10, for those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, our policy is to record the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit will be recognized in the financial statements. The Company has determined that there are no material uncertain tax positions.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

The Company accounts for income taxes with the recognition of estimated income taxes payable or refundable on income tax returns for the current period and for the estimated future tax effect attributable to temporary differences and carryforwards. Measurement of deferred income items is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized in the immediate future.

Net Loss per Share

Net earnings or loss per share is computed by dividing net income or loss by the weighted-average number of common shares outstanding during the period, excluding shares subject to redemption or forfeiture. The Company presents basic and diluted net earnings or loss per share. Diluted net earnings or loss per share reflect the actual weighted average of common shares issued and outstanding during the period, adjusted for potentially dilutive securities outstanding. Potentially dilutive securities are excluded from the computation of the diluted net loss per share if their inclusion would be anti-dilutive. As all potentially dilutive securities are anti-dilutive as of June 30, 2025 and 2024, diluted net loss per share is the same as basic net loss per share for each year. Potentially dilutive items outstanding as of June 30, 2025 and 2024 consist of outstanding options (Note 4).

Recent Accounting Pronouncements

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

NOTE 3 – DEBTS

Merchant Cash Advances

During 2024, the Company entered into multiple agreements with the merchant cash advance providers.

In March 2024, the Company received a loan from Ondeck Capital, a financial institution, for a total principal of $150,000. The Company recorded a discount on the loan amounting to $52,500, which is being amortized to interest expense over the terms of the loan. The loan matures in March 2025 and carries an interest rate of 35% per annum. The loan was paid in full in March 2025.

On March 25, 2024, the Company entered into a short-term agreement with FundFi Merchant Funding totaling $150,000. Total weekly required payments are $7,821 for the whole term of the loan. The Company recorded a discount on the loan amounting to $69,000, which is amortized to interest expense over the term of the loan. The loan was paid in full in October 2024.

On March 26, 2024, the Company entered into a short-term agreement with Superfast Capital totaling $100,000. Total weekly required payments are $3,393 for the whole term of the loan. The Company recorded a discount on the loan amounting to $45,900, which is being amortized to interest expense over the term of the loan. The loan is being repaid at 6%, which is being deducted automatically from the Company's bank account until the total payments required are made. The loan was paid in full in April 2025.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

On June 4, 2024, the Company entered into a short-term agreement with RedStone Advance totaling $125,000. Total weekly required payments are $3,122 for the whole term of the loan. The loan was repaid in November 2024.

On September 27, 2024, the Company entered into a short-term agreement with FundFi Merchant Funding totaling $150,000. Total weekly required payments are $6,516 for the whole term of the loan. The Company recorded a discount on a loan amounting to $58,500, which is being amortized to interest expense over the term of the loans. The loan is being repaid at a 25% which is being deducted automatically from the Company's bank account until the total required payments are made. The loan was paid in full in March 2025.

On October 1, 2024, the Company entered into a short-term agreement with Specialty Capital totaling $150,000. Total weekly required payments are $6,516 for the whole term of the loan. The Company recorded a discount on the loan amounting to $58,500, which is being amortized to interest expense over the term of the loans. The loan is being repaid at a 7% which is being deducted automatically from the Company's bank account until the total required payments are made.

As of December 31, 2024, the Company has an outstanding balance of $295,350, net of unamortized discount of $78,735.

During 2025, the Company entered into additional agreements with merchant cash advance providers:

On March 4, 2025, the Company entered into a short-term agreement with Fundfi Merchant Funding, LLC totaling $454,530. Total weekly required payments are $13,369 for the whole term of the loan. The Company recorded a discount on the loan amounting to $127,530, which is being amortized to interest expense over the term of the loans. The loan is being repaid at a 25% which is being deducted automatically from the Company's bank account until the total required payments are made.

On May 12, 2025, the Company entered into a short-term agreement with Cedar Advance LLC totaling $147,000. Total weekly required payments are $6,516 for the whole term of the loan. The Company recorded a discount on the loan amounting to $42,000, which is being amortized to interest expense over the term of the loans. The loan is being repaid at a 30% which is being deducted automatically from the Company's bank account until the total required payments are made.

As of June 30, 2025, the Company has an outstanding balance of $404,910, net of unamortized discount of $88,965. Interest expense recognized, for the six-month periods ended June 30, 2025 and 2024, on these loans amounted to $180,660 and $77,778, respectively.

Loans Payable

During 2024, the Company entered into multiple loan agreements.

In March 2024, the Company received its first loan from Shopify totaling $270,000. The Company recorded a discount on the loan amounting to $35,100, which is being amortized to interest expense over the term of the loan. The loan is being repaid daily at 17% of the Company's Shopify account's sales proceeds, which is being deducted automatically until the total required payments are made. The loan is secured by the Company's balances on its Shopify account.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

On May 13, 2024, the Company received its first loan from Stripe Capital, a financial institution, for a total principal of $67,600. The Company recorded a discount on the loan amounting to $7,436, which is being amortized to interest expense over the term of the loan. The loan matures in November 2025 and carries an interest rate of 7.3% per annum. The loan was paid in full in October 2024.

In September 2024, the Company received a second loan from Shopify totaling $75,000. The Company recorded a discount on the loan amounting to $9,750, which is being amortized to interest expense over the term of the loan. The loan repayment will begin after the first loan is paid in full. The loan is secured by the Company's balances on its Shopify account.

On October 15, 2024, the Company received a loan from Stripe Capital, a financial institution, for a total principal of $88,300. The Company recorded a discount on the loan amounting to $10,684, which is being amortized to interest expense over the term of the loan. The loan matures in April 2026 and carries an interest rate of 8% per annum. The loan was paid in full in February 2025.

As of December 31, 2024, the Company has a total outstanding balance of $195,854, net of unamortized discount of $32,087.

On February 18, 2025, the Company received a loan from Stripe Capital, a financial institution, for a total principal of $132,900. The Company recorded a discount on the loan amounting to $14,220, which is being amortized to interest expense over the term of the loan. The loan matures in August 2026 and carries an interest rate of 7.1% per annum.

As of June 30, 2025, the Company had a total outstanding balance of $232,176, net of unamortized discount of $18,503. Interest expense from the amortization of loan discount for the six-month periods ended June 30, 2025 and 2024, amounted to $27,803 and $8,626, respectively.

Notes Payable – Related Party Liabilities

On July 11, 2024, the Company entered into multiple promissory note agreements with related parties, including the Company's CEO, for a total principal amount of $420,000. The notes bear interest at 10% per annum, with all principal and accrued interest due earlier of July 11, 2025, or in the event of default, which includes voluntary and involuntary proceedings. As of June 30, 2025 and December 31, 2024, the Company has an outstanding principal of $62,000 and $177,000, respectively.

Interest expense recognized for the six-month period ended June 30, 2025 on these notes at 10% per annum amounted to $21,117, of which $9,514 remained accrued and outstanding on June 30, 2025.

Convertible Notes Payable

In August 2023, the Company issued a series of convertible notes for a total principal of $450,000 with a 20% discount. The notes bear interest of 8% per annum with all principal and interest due and payable on the earlier of: (a) 5 days after the receipt of demand for payment, which demand shall not made prior to August 11, 2025 (the "Maturity Date") and (b) in the events of default, which includes voluntary and involuntary proceedings.

In May 2024, the Company issued a single convertible note for a total principal of $1,000,000 with a 10% discount. The note bears an interest of 8% per annum with all principal and interest due and payable on the earlier date of; a) five days after the receipt of demand for payment, which demand shall not be made prior to May 11, 2027, or b) in the events of default, which includes voluntary and involuntary proceedings.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

In July 2024, the Company issued multiple convertible notes for a total principal of $2,149,300, of which $425,000 includes notes with a 10% discount. The note bears an interest of 8% per annum with all principal and interest due and payable on the earlier date of; a) five days after the receipts of demand for payment, the demand which shall not be made prior to July 2026, or b) in the events of default, which includes voluntary and involuntary proceedings.

In November 2024, the Company issued a single convertible promissory note for a total principal of $1,000,000 with a 25% discount. The note bears an interest equal to the prime rate plus 5% per annum with all principal and interest due and payable on the earlier date of; a) five days after the receipts of demand for payment, which demand shall not be made prior to November 2027, or b) in the events of default, which includes voluntary and involuntary proceedings.

In January 2025, the Company issued a single convertible note for a total principal of $50,000 with a 10% discount. The note bears an interest of 8% per annum with all principal and interest due and payable on the earlier date of: (a) five days after the receipt of demand for payment, which demand shall not be made prior to January 2028, or (b) in the events of default, which includes voluntary and involuntary proceedings.

Between February and May 2025, the Company also issued a series of convertible notes via Wefunder for a total principal of $1,754,734, of which $240,000 includes notes with a 10% discount. The notes bear an interest of 8% per annum with all principal and interest due and payable on the earlier date of: (a) five days after the receipt of demand for payment, which demand shall not be made prior to February 2027 for notes issued in February 2025, not prior to March 2027 for those issued in March 2025, not prior to April 2027 for those issued in April 2025, and not prior to May 2027 for those issued in May 2025 or (b) in the events of default, which includes voluntary and involuntary proceedings.

In June 2025, the Company issued a single convertible note for a total principal of $250,000, with a 10% discount. The note bears an interest of 8% per annum with all principal and interest due and payable on the earlier date of: (a) five days after the receipt of demand for payment, which demand shall not be made prior to June 2028, or (b) in the events of default, which includes voluntary and involuntary proceedings.

In case of liquidity event, which means a change of control, private placement equity financing, direct listing, an initial public offering (IPO) or special purpose acquisition companies (SPAC) merger, the outstanding principal and accrued interest will automatically convert into Company's shares issued in the triggering financing, as applicable. The conversion price per share equal to: (a) (i) in the case of an IPO, the price per share at which conversion shares are sold to the public, (ii) in the case of private placement equity financing, the lowest per share purchase price of the conversion shares issued in such financing and (iii) in the case of other liquidity event, the aggregate fair market value of the Company's equity interest divided by the number of shares constituting the Company equity interest outstanding immediately prior to such liquidity event; in each case multiplied by (ii) the 75-100% discount rate.

Interest expense recognized for the six-month periods ended June 30, 2025 and 2024 amounted to $212,974 and $26,400, respectively, all of which remained accrued and outstanding as of June 30, 2025 and December 31, 2024.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

The Company analyzed the notes for beneficial conversion features and concluded that no beneficial conversion feature discount should be recorded until the contingency of a qualified equity financing is resolved. As no notes had been repaid or converted under the conversion terms, the outstanding principal balances were $6,654,034 and $4,599,300 as of June 30, 2025, and December 31, 2024, respectively. The discount on convertible loan was $100,568 and $0 as of June 30, 2025 and December 31, 2024, respectively.

NOTE 4 – STOCKHOLDERS' EQUITY

Capital Structure

During October 2023, the Company amended and restated its articles of incorporation (the "Amended Articles"). The Amended Articles authorized 8,950,000 shares of preferred stock, designated as Series 1 Preferred Stock, and 33,000,000 shares of common stock, both $0.00001 par value per share.

As of June 30, 2025, and December 31, 2024, the Company had 8,315,265 shares of preferred stock and 5,821,712 shares of common stock issued and outstanding.

Preferred Stock

The holders of Series 1 Preferred Stock are entitled to various protective provisions and preferences, as defined in the certificate of designation of Series 1 Preferred Stock (the "Agreement"). Holders of Series 1 Preferred Stock are entitled to vote on an as-converted basis with holders of Common Stock. The holders of Series 1 Preferred Stock are entitled to a dilution protected dividend preference over holders of Common Stock, as defined in the agreement. The holders of Series 1 Preferred Stock are entitled to a liquidation preference over holders of Common Stock at the original issuance price ($4.11107) per share, providing a total liquidation preference of $34,184,635 as of June 30, 2025, and December 31, 2024, or such greater amount as would be payable on an as-converted basis to Common Stock. The Series 1 Preferred Stock are convertible, at the holder's election, into Common Stock at a dilution protected conversion rate that is currently 1:1.

Common Stock

On January 9, 2017, the founder was granted 4,000,000 shares of common stock which are subject to a 4-year vesting period. Vested common stock issued and outstanding as of June 30, 2025, and December 31, 2024, were 5,821,712 and 5,821,712, respectively.

During 2024, 19,184 stock options were exercised for $15,702 and converted into 19,148 shares of common stock.

During 2024, the Company issued 2,519 common stock shares at a price of $3.70 per share to the lead investor of its 2023 Wefunder crowd fundraiser.

During 2025, no additional common stock shares were issued.

Stock Options

The Company accounts for stock-based compensation under the provisions of Topic 718, Compensation - Stock Compensation, which requires measurement and recognition of compensation expense for all share-based payment awards made to employees and non-employee officers based on estimated fair values as of the date of grant. Compensation expense is

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

recognized on a straight-line basis over the requisite service period. The Company has a stock- based employee compensation plan, the 2017 Stock Option Plan (the "Plan"), for which 1,400,000 shares of common stock were initially reserved for issuance under the Plan to certain employees. Awards granted under the Plan are made in the form of Incentive Stock Options (ISOs).

During May 2021, the Board of Director and stockholders of the Company approved the increase in total shares to be reserved for issuance under the Plan from 1,874,022 to 7,480,000 shares of common stock. During February 2022, the Board of Director and stockholders of the Company approved the increase in total shares to be reserved for issuance under the Plan from 7,480,000 to 12,000,000 shares of common stock. During November 2022, the Board of Director and stockholders of the Company approved the increase in total shares to be reserved for issuance under the Plan from 12,000,000 to 14,062,398 shares of common stock. 1,492,595 and 835,563 shares were available for issuance under the Plan as of June 30, 2025, and December 31, 2024, respectively.

Incentive Stock Options ("ISOs") are granted to certain employees of the Company from time to time. As of June 30, 2025, and December 31, 2024, a total of 1,096,472 and 1,445,730 ISOs, respectively, were issued and outstanding under the Plan. Vested ISOs totaled 1,009,560 and 1,270,964 as of June 30, 2025, and December 31, 2024, respectively. During the periods ended June 30, 2025, and December 31, 2024, 349,258 and 329,513 ISOs, were forfeited, respectively.

Non-Qualified Stock Options ("NQSOs") are granted to certain employees of the Company from time to time. As of June 30, 2025, and December 31, 2024, a total of 10,887,669 and 11,195,443 NQSOs, respectively, were issued and outstanding under the Plan. Vested NQSOs totaled 10,712,222 and 10,820,206 as of June 30, 2025, and December 31, 2024, respectively. During the periods ended June 30, 2025, and December 31, 2024, 307,774 and 406,503 NQSOs were forfeited, respectively.

Outside the Plan, prior to 2020, the Company granted 1,318,784 non-qualified stock options ("NQSOs") with an exercise price of $0.03 per share. During the year ended December 31, 2021, the Company granted 1,297,264 NQSOs with an exercise price of $0.82 per share. NQSOs of 2,616,048 remain outstanding as of June 30, 2025, and December 31, 2024, of which 2,616,048 NQSOs were vested as of June 30, 2025, and December 31, 2024.

The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option. The estimation of the number of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from the Company's current estimates, such amounts are recognized as an adjustment in the period in which estimates are revised. In accordance with ASC 718, as a private company, the Company has elected to use a 0% forfeiture rate in calculating its stock compensation expense.

The Company's ISOs and NQSOs typically expire ten years after the grant date and vesting occurs immediately or over a period of four years.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

A summary of options activities for the six-month periods ended June 30, 2025 and June 30, 2024 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | June 30, 2025 | June 30, 2025 | June 30, 2024 | June 30, 2024 |
|  |<br><br>Options | Weighted<br>Average<br>Exercise<br>Price |<br><br>Options | Weighted<br>Average<br>Exercise<br>Price |
| Balance at beginning of period | 15257221 | $0.73 | 15652393 | $0.73 |
| Granted |  |  |  |  |
| Exercised |  |  | (856) | $0.82 |
| Forfeited | (657032) | $0.82 | - | - |
| Outstanding at end of period | 14600189 | $0.74 | 15651537 | $0.72 |
| Exercisable at end of period | 14337830 | $0.73 | 14804130 | $0.72 |
| Intrinsic value of options outstanding at period-end | $43219513 |  | $46317667 |  |
| Weighted average duration (years) to expiration of outstanding options at year-end | 6.29 |  | 7.32 |  |
| Weighted average duration (years) to expiration of exercisable options at year-end | 6.26 |  | 7.24 |  |

---

Determining the appropriate fair value of stock-based awards requires the input of subjective assumptions, including the fair value of the Company's common stock, and for stock options, the expected life of the option, and expected stock price volatility. The Company used the Black- Scholes Option Pricing model to value its stock option awards. The assumptions used in calculating the fair value of stock-based awards represent management's best estimates and involve inherent uncertainties and the application of management's judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards.

The expected life of stock options was estimated using the "simplified method," which is the midpoint between the vesting start date and the end of the contractual term, as the Company has limited historical information to develop reasonable expectations about future exercise patterns and employment duration for its stock options grants. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. For stock price volatility, the Company uses comparable public companies as a basis for its expected volatility to calculate the fair value of options grants.

For the six-month periods ended stock-based compensation expense was $34,386 and $144,312, respectively.

As of June 30, 2025 and 2024, there were $169,292 and $513,133, respectively, of costs to be recognized over a weighted-average period of approximately 2.47 years and 1.89 years, all respectively.

NOTE 5 – INCOME TAXES

Income taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of other assets and liabilities. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which result in taxable or deductible amounts in the future.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

As of June 30, 2025 and December 31, 2024, the Company had net deferred tax assets before valuation allowance of $6,249,649 and $5,951,989, respectively.

The following table presents the deferred tax assets and liabilities by source:

---

| | | |
|:---|:---|:---|
|  | June 30, 2025 | December 31, 2024 |
| Net operating loss carryforward | $6200351 | $5902589 |
| Research and development credits | 50100 | 50100 |
| Depreciation methods | (802) | (700) |
| Deferred tax assets | 6249649 | 5951989 |
| Valuation allowance | (6249649) | (5951989) |
| Net deferred tax assets | - | - |

---

The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to 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 assessed the need for a valuation allowance against its net deferred tax assets and determined a full valuation allowance is required due to taxable losses for the periods ended June 30, 2025 and December 31, 2024, cumulative losses through June 30, 2025, and no history of generating taxable income. Therefore, valuation allowances of $6,249,649 and $5,951,989 were recorded as of June 30, 2025 and December 31, 2024, respectively. Deferred tax assets were calculated using the Company's combined effective tax rate, which it estimated to be 21.0%. The effective rate is reduced to 0% due to the full valuation allowance on its net deferred tax assets.

The Company's ability to utilize net operating loss carryforwards will depend on its ability to generate adequate future taxable income. As of June 30, 2025 and December 31, 2024, the Company had net operating loss carryforwards available to offset future taxable income in the amounts of $29,525,481 and $28,107,567, respectively, which may be carried forward to offset future income.

The Company has evaluated its income tax positions and has determined that it does not have any uncertain tax positions. The Company will recognize interest and penalties related to any uncertain tax position through its income tax expense.

The Company may in the future become subject to federal, state and local income taxation though it has not been since its inception, other than minimum state tax. The Company is not presently subject to any income tax audit in any taxing jurisdiction, though its 2019-2024 tax years remain open to examination.

NOTE 6 – CONTINGENCIES

The Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome, if any, arising out of any such matter will have a material adverse effect on its business, financial condition or results of operations. As of June 30, 2025, and December 31, 2024, the Company has not reported any lawsuit or known plans of litigation by or against the Company.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

NOTE 7 – SUBSEQUENT EVENTS

The Company opened a Regulation Crowdfunding (Reg CF) in June 2025 and is actively raising capital through a Reg CF campaign via a convertible note with a $300M valuation cap. Additionally, in September 2025, the Company filed a Form 1-A Offering Statement under Regulation A with the SEC to raise up to $25 million in capital. As of the date of these financial statements, the offering has not yet been qualified. There can be no assurance as to if or when the offering will be qualified or the amount of capital that may be raised.

Management has evaluated subsequent events through October 14, 2025, the date the financial statements were available to be issued. Based on the management's evaluation, no other material subsequent events requiring adjustment to or disclosure in the financial statements were identified.

**IMMERSED INC.**

**(A Delaware Corporation)**

**AUDITED FINANCIAL STATEMENTS**

**YEARS ENDED DECEMBER 31, 2024 AND 2023**

**Immersed Inc.**

(a Delaware Corporation)

Audited Financial Statements

As of the years ended December 31, 2024 and December 31, 2023

Audited by:

![](tm259922d1_partiiandiiiimg01.jpg)

Alice.CPA LLC

A New Jersey CPA Company

![](tm259922d1_partiiandiiiimg02.jpg)

**Independent Auditor's Report**

February 14, 2025

To: Board of Directors of Immersed Inc.

Attn: Renji Bijoy, CEO

Re: 2024 and 2023 Financial Statement Audit – Immersed Inc.

**Report on the Audit of the Financial Statements**

**Opinion**

We have audited the financial statements of Immersed Inc., which comprise the balance sheets as of December 31, 2024 and December 31, 2023, and the related statements of income, changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Immersed Inc. as of December 31, 2024 and December 31, 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Immersed Inc. and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

**Responsibilities of Management for the Financial Statements**

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Immersed Inc.'s ability to continue as a going concern.

**Auditor's Responsibilities for the Audit of the Financial Statements**

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

![](tm259922d1_partiiandiiiimg03.jpg)

**In performing an audit in accordance with GAAS, we:**

&nbsp;&nbsp;&nbsp;&nbsp;· Exercise professional judgment and maintain professional skepticism throughout
the audit.

&nbsp;&nbsp;&nbsp;&nbsp;· Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on
a test basis, evidence regarding the amounts and disclosures in the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;· Obtain an understanding of internal control relevant to the audit in order
to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of Immersed Inc.'s internal control. Accordingly, no such opinion is expressed.

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluate the appropriateness of accounting policies used and the reasonableness
of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;· Conclude whether, in our judgment, there are conditions or events, considered
in the aggregate, that raise substantial doubt about Immersed Inc.'s ability to continue as a going concern for a reasonable period
of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Sincerely,

/s/ Alice.CPA LLC

Alice.CPA LLC

February 14, 2025

![](tm259922d1_partiiandiiiimg05.jpg)

**Immersed Inc.**

**BALANCE SHEETS**

**December 31, 2024 and 2023**

**(Audited)**

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| **ASSETS** |  |  |
| **Current Assets** |  |  |
| Cash | $242490 | $1589997 |
| Accounts receivable | 114314 | 625463 |
| Prepaid and other current assets | 312117 | 367815 |
| Digital assets, net | 2642 | 9026 |
| **Total Current Assets** | **671563** | **2592301** |
| Property and equipment, net | 40089 | 64350 |
| Intangible assets, net | 199132 | 214378 |
| Operating lease right-of-use asset, net | - | 337123 |
| **Total Assets** | $**910784** | $**3208152** |
| **LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)** |  |  |
| **Current Liabilities** |  |  |
| Accounts payable | $5558992 | $566953 |
| Accrued expenses | 740656 | 200063 |
| Accrued interest | 198531 | 14104 |
| Deferred revenue | 3025713 | 1474585 |
| Operating lease liability, current |  | 337380 |
| vProperty deposits | 73391 | 85700 |
| Merchant cash advances, net | 295350 |  |
| Loans payable, net | 195854 |  |
| Notes payable | 177000 | - |
| **Total Current Liabilities** | **10265487** | **2678785** |
| Convertible notes payable | 4599300 | 450000 |
| **Total Liabilities** | **14864787** | **3128785** |
| **Stockholders' Equity (Deficit)** |  |  |
| Common stock, $0.00001 par value; 33,000,000 and 30,000,000 shares authorized, 5,821,712 and 5,800,045 shares issued and outstanding as of December 2024 and 2023, respectively | 60 | 58 |
| Series 1 Preferred stock, $0.00001 par value; 8,950,000 shares authorized, 8,315,265 shares issued and outstanding, liquidation preference of $34,184,635, as of December 2024 and 2023 | 82 | 82 |
| Additional paid-in capital | 17420246 | 17184289 |
| Accumulated deficit | (31374391) | (17105062) |
| **Total Stockholders' Equity (Deficit)** | **(13954003)** | **79367** |
| **Total Liabilities and Stockholders' Equity (Deficit)** | $**910784** | $**3208152** |

---

**The accompanying footnotes are an integral part of these financial statements.**

**Immersed Inc.**

**STATEMENTS OF OPERATIONS**

**For the Years Ended December 31, 2024 and 2023**

**(Audited)**

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Revenues | $659590 | $220413 |
| Cost of revenues | (155331) | (72068) |
| **Net Profit** | **504259** | **148345** |
| **Operating Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | $1868107 | $1652324 |
| &nbsp;&nbsp;&nbsp;AR/VR product expenses | 12036253 | 3826309 |
| &nbsp;&nbsp;&nbsp;Marketing and advertising | 141919 | 88260 |
| &nbsp;&nbsp;&nbsp;Digital assets impairment gains, net | (1895) | (255318) |
| &nbsp;&nbsp;&nbsp;Professional fees | 273746 | 400213 |
| **Total Operating Expenses** | **14318130** | **5711788** |
| **Loss from Operations** | **(13813871)** | **(5563443)** |
| **Other Income (Expense)** |  |  |
| &nbsp;&nbsp;&nbsp;Other income |  | 203810 |
| &nbsp;&nbsp;&nbsp;Interest income |  | 7932 |
| &nbsp;&nbsp;&nbsp;Interest expense | (457701) | (14104) |
| &nbsp;&nbsp;&nbsp;Gain on disposal of digital assets, property and equipment | 2243 | 58121 |
| **Total Other Income (Expense)** | **(455458)** | **255759** |
| **Net Loss** | $**(14269329)** | $**(5307684)** |

---

**The accompanying footnotes are an integral part of these financial statements.**

**Immersed Inc.**

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

**For the Years Ended December 31, 2024 and 2023**

**(Audited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** | **Series 1 Preferred stock** | **Series 1 Preferred stock** | | | |
|  | **Shares** | **Value** | **Shares** | **Value** |<br>**Additional<br> Paid-in<br> Capital** |<br>**Accumulated<br> Deficit** |<br>**Total<br> Stockholders'<br> Equity<br> (Deficit)** |
| **Balance as of January 1, 2023** | 4641185 | $46 | 8315265 | $82 | $13993016 | $(11797378) | $2195766 |
| Issuance of common stock upon exercise of stock options | 554314 | 6 |  |  | 124976 |  | 124982 |
| Issuance of common stock through WeFunder | 604546 | 6 |  |  | 2999994 |  | 3000000 |
| Offering costs |  |  |  |  | (150000) |  | (150000) |
| Stock-based compensation - stock options |  |  |  |  | 216303 |  | 216303 |
| &nbsp;&nbsp;&nbsp;Net loss | - | - | - | - | - | (5307684) | (5307684) |
| **Balance as of December 31, 2023** | 5800045 | 58 | 8315265 | 82 | 17184289 | (17105062) | 79367 |
| Issuance of common stock upon exercise of stock options | 19148 | 2 |  |  | 15700 |  | 15702 |
| Issuance of common stock through WeFunder | 2519 |  |  |  |  |  |  |
| Stock-based compensation - stock options |  |  |  |  | 220257 |  | 220257 |
| &nbsp;&nbsp;&nbsp;Net loss | - | - | - | - | - | (14269329) | (14269329) |
| **Balance as of December 31, 2024** | 5821712 | $60 | 8315265 | $82 | $17420246 | $(31374391) | $(13954003) |

---

**The accompanying footnotes are an integral part of these financial statements.**

**Immersed Inc.**

**STATEMENTS OF CASH FLOWS**

**For the Years Ended December 31, 2024 and 2023**

**(Audited)**

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| **Cash Flows from Operating Activities** |  |  |
| Net loss | $(14269329) | $(5307684) |
| Adjustments to reconcile net loss to net cash provided by operations: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 48551 | 51347 |
| &nbsp;&nbsp;&nbsp;Bad debt expense | 6686 | 28348 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 220257 | 216303 |
| &nbsp;&nbsp;&nbsp;Amortization of discount on operating lease liability | 8493 | 26238 |
| &nbsp;&nbsp;&nbsp;Amortization of discount on merchant cash advances and loans payable | 236548 |  |
| &nbsp;&nbsp;&nbsp;Loss on disposal of property and equipment | 1819 | 28 |
| &nbsp;&nbsp;&nbsp;Digital assets impairment gains, net | (1895) | (255318) |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 504463 | (640242) |
| &nbsp;&nbsp;&nbsp;Prepaid and other current assets | 55698 | (329700) |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use asset | 337123 | 376634 |
| &nbsp;&nbsp;&nbsp;Other noncurrent assets |  | 70000 |
| &nbsp;&nbsp;&nbsp;Accounts payable | 4992039 | 559228 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and interest | 725020 | 79133 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 1551128 | 1437765 |
| &nbsp;&nbsp;&nbsp;Operating lease liability | (345873) | (368156) |
| &nbsp;&nbsp;&nbsp;vProperty deposits | (12309) | (661396) |
| **Net cash provided by (used in) operating activities** | (5941581) | (4717472) |
| **Cash Flows from Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Sale/(purchase) of digital assets | 8279 | 599756 |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | (17280) | (14727) |
| &nbsp;&nbsp;&nbsp;Purchase of intangible assets |  | (200000) |
| &nbsp;&nbsp;&nbsp;Sale of property and equipment | 6417 | 5505 |
| **Net cash used in investing activities** | (2584) | 390534 |
| **Cash Flows from Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from convertible notes payable | 4149300 | 450000 |
| &nbsp;&nbsp;&nbsp;Proceeds from notes payable | 420000 |  |
| &nbsp;&nbsp;&nbsp;Repayment of notes payable | (243000) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from merchant cash advances | 825000 |  |
| &nbsp;&nbsp;&nbsp;Repayment of merchant cash advances | (735315) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from loans payable | 500900 |  |
| &nbsp;&nbsp;&nbsp;Repayment of loans payable | (335929) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock | 15702 | 3124982 |
| &nbsp;&nbsp;&nbsp;Offering costs | - | (150000) |
| **Net cash used in financing activities** | 4596658 | 3424982 |
| &nbsp;&nbsp;&nbsp;**Net change in cash and cash equivalents** | (1347507) | (901956) |
| Cash at beginning of year | 1589997 | 2491953 |
| **Cash at end of year** | $242490 | $1589997 |
| **Supplemental information** |  |  |
| &nbsp;&nbsp;&nbsp;Interest paid | $- | $- |
| &nbsp;&nbsp;&nbsp;Income taxes paid | $- | $- |

---

**The accompanying footnotes are an integral part of these financial statements.**

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

**NOTE 1 – NATURE OF OPERATIONS**

Immersed Inc., previously known as AraJoy Inc., ("the Company") was incorporated on January 4, 2017 under the laws of the State of Delaware. Effective November 29, 2017, the Company amended its certificate of incorporation to change its corporate name from AraJoy Inc. to Immersed Inc.

The Company is a software company providing virtual reality offices for remote teams and individuals. The Company's technology is available on the following platforms: Facebook/Meta Quest, HTC, Pico, Apple, and planning to expand onto other platforms in the future.

During 2023, the Company began the development of Visor, its own work-optimized spatial computing AR/VR headset. The Company announced Visor in August 2023 and started pre-orders in September 2023, targeting initial deliveries of Visor in mid-2025.

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

This summary of the significant accounting policies of the Company is presented to assist in understanding the Company's financial statements. The financial statements and notes are representations of the Company's management, who is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.

**Basis of Accounting**

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America ("US GAAP"). Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification ("ASC") and Accounting Standards Updates ("ASU") of the Financial Accounting Standards Board ("FASB").

**Use of Estimates**

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Significant estimates used in the preparation of the accompanying financial statements include recording of depreciation and amortization, digital assets impairment gains/losses, collectible valuation of accounts receivable and the estimate of valuation of stock-based compensation.

**Risks and Uncertainties**

The Company's business and operations are sensitive to general business and economic conditions in the United States. A host of factors beyond the Company's control could cause fluctuations in these conditions. Adverse conditions may include recession, downturn or otherwise, local competition or changes in consumer taste. These adverse conditions could affect the Company's financial condition and the results of its operations.

**Concentration of Credit Risk**

The Company maintains its cash with financial institutions located in the United States of America, which it believes to be credit worthy. The Federal Deposit Insurance Corporation insures balances up to $250,000. At times, the Company may maintain balances in excess of the federally insured limits. The Company has not experienced any losses for balances in excess of federally insured limits.

**Going Concern**

The accompanying financial statements have been prepared using US GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

The Company sustained net losses amounting to $14,269,329 and $5,307,684 for the years ended December 31, 2024 and 2023, respectively, has a working capital deficit of $9,593,924 and an accumulated deficit of $31,374,391 as of December 31, 2024. The Company has negative cash flows from operating activities of $5,941,581 and $4,717,472 for the years ended December 31, 2024 and 2023, respectively. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The management's plans to mitigate the conditions and events that raise substantial doubt about the Company's ability to continue as a going concern include immediate plans to raise additional funds to meet obligations through both a private capital raise and a public crowdfunding campaign and to increase revenue through hiring sales staff and aggressively selling current and future product offerings. The Company's ability to meet its obligations as they become due is dependent upon its ability to generate sufficient cash flow from operations to meet its obligations, and/or to obtain additional external capital financing. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as going concern.

**Cash and Cash Equivalents**

The Company considers all highly liquid securities with an original maturity of less than three months to be cash equivalents. As of December 31, 2024 and 2023, the Company held cash balances at Silicon Valley Bank, which carried a credit risk that deposits may not be collectible or fully liquid.

**Accounts Receivable**

Accounts receivable are carried at their estimated collectible amounts and are periodically evaluated for collectability based on past credit history with customers and other factors. Provisions for losses on accounts receivable are determined based on loss experience, known and inherent risk in the account balance and current economic conditions. As of December 31, 2024 and 2023, management considers its accounts receivable as fully collectible and no allowance for credit losses has been recorded.

For the years ended December 31, 2024 and 2023, the Company wrote off $6,686 and $28,348 of its accounts receivable as bad debt expense.

**Prepaid Expenses**

Prepaid expenses include engineering consulting service fees, subscription fees and others for periods subsequent to December 31, 2024 and 2023.

**Digital Assets**

The Company held a minimal amount of Ethereum through the sale of vProperty during 2024 and 2023. The deeds to the vProperty are in the form of Non-Fungible Tokens ("NFTs"); see deferred revenue accounting policy for additional information on deposits held from these vProperty sales.

The Company accounts for its digital assets, which are comprised solely of Ethereum, as indefinite-lived intangible assets in accordance with Accounting Standards Codification ("ASC") 350, *Intangibles-Goodwill and Other*. The Company has ownership of and control over its Ethereum and uses a self-custodial wallet to store its Ethereum. The Company's digital assets are initially recorded at cost. Subsequently, they are measured at cost, net of any impairment losses incurred since acquisition.

The Company determines the fair value of its Ethereum on a nonrecurring basis in accordance with ASC 820, *Fair Value Measurement*, based on quoted (unadjusted) prices on the Coinbase exchange, the active exchange that the Company has determined is its principal market for Ethereum (Level 1 inputs). The Company performs an analysis each quarter to identify whether events or changes in circumstances, principally decreases in the quoted (unadjusted) prices on the active exchange, indicates that it is more likely than not that any of the assets are impaired. In determining if an impairment has occurred, the Company considers the lowest price of one Ethereum quoted on the active exchange at any time since acquiring the specific Ethereum held by the Company. If the carrying value of an Ethereum exceeds that lowest price, an impairment loss has occurred with respect to that Ethereum in the amount equal to the difference between its carrying value and such lowest price.

Impairment losses are recognized as Digital assets impairment losses in the Company's statements of operations in the period in which the impairment occurs.

The impaired digital assets are written down to their fair value at the time of impairment and this new cost basis will not be adjusted upward for any subsequent increase in fair value. Gains (if any) are not recorded until realized upon sale, at which point they would be presented net of any impairment losses in the Company's statements of operations. In determining the gain to be recognized upon sale, the Company calculates the difference between the sales price and carrying value of the specific Ethereum sold immediately prior to sale.

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

During 2023, the Company acquired 1 additional Ethereum through the sale of vProperty, sold the 363 Ethereum held on February 18, 2023 and recorded a gain of $259,048.

In June 2023, the Company decided to cancel vProperty project due to refocusing on spatial computing. The Company purchased 327 Ethereum to facilitate refunds of the vProperty deposits and refunded 321 Ethereum of the vProperty deposits resulting in a gain on the refund settlements of $58,149. The Company recorded digital asset impairment losses of $3,729 for the year ended December 31, 2023 on the remaining 6 Ethereum held as of December 31, 2023.

During 2024, the Company reversed digital asset impairment losses of $1,895 and recorded an additional gain of $4,064 due to the exchange of Ethereum for another NFT "USDC". As of December 31, 2024, the Company held approximately $6 and $2,636 of Ethereum and USDC, respectively.

The Company may continue to incur significant digital asset impairment losses in the future.

**Property and Equipment**

Property and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance, and repairs are charged to expense as incurred. When equipment is retired or sold, the cost and related accumulated depreciation are eliminated from the accounts and the resultant gain or loss is reflected in the income statement. Depreciation is recorded for property and equipment using the straight-line method over the estimated useful lives of assets which is 3 to 7 years.

Property and equipment as of December 31, 2024 and 2023 were as follows:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Equipment | $115602 | $112118 |
| Furniture and fixture | 28019 | 34250 |
|  | 143621 | 146368 |
| Less: accumulated depreciation | 103532 | 82018 |
| Total property and equipment, net | $40089 | $64350 |

---

Depreciation expense of $33,305 and $40,386 was recorded for the years ended December 31, 2024 and 2023, respectively.

**Intangible Assets**

The Company has capitalized purchase fees related to two domain names. As of December 31, 2024, the Company has capitalized a total of $228,685 in domain names. All domain names capitalized are amortized over the length of 15 years. Amortization expense for the years ended December 31, 2024 and 2023 was $15,246 and $10,961, respectively.

**Leases**

The Company recognizes and measures its leases in accordance with ASU 2016-02, *Leases (Topic 842)* ("ASC 842")*.* In accordance with ASC 842, the Company determines if an arrangement contains a lease at inception. Operating leases are included in operating lease right-of-use (ROU) assets and operating lease liabilities, current and noncurrent, on the balance sheet. Lease liabilities are initially recorded at the present value of the lease payments by discounting the lease payments by the discount rate and then recording accretion over the lease term using the effective interest method.

Operating lease classification results in straight-line expense recognition pattern over the lease term and recognized lease expense as a single expense component, which results in amortization of the ROU asset that equals the difference between straight-line lease expense and the expense recorded to related to the lease liability. Operating lease expense is presented under operating expenses, based on the use of the leased asset, on the statement of operations.

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

The operating lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense is recognized on a straight-line basis over the lease term.

**Impairment of Long-Lived Assets**

The management continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the management assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the management recognizes an impairment loss based on the excess of the carrying amount over the fair value of the Company's long-lived assets. The Company did not have any impairment losses during 2024 and 2023.

**Convertible Instruments**

GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. An exception to this rule is when the host instrument is deemed to be conventional as that term is described under applicable GAAP.

When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The Company also records, when necessary, deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the transaction and the effective conversion price embedded in preferred shares.

**Fair Value of Financial Instruments**

The Company's financial instruments consist primarily of cash, accounts receivable, digital assets, accounts payable, accrued expenses and convertible notes payable.

Financial Accounting Standards Board ("FASB") guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities.

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active).

Level 3 - Unobservable inputs for the asset or liability. Financial instruments are considered Level 3 when their fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable.

As of December 31, 2024 and 2023, the carrying amounts of the Company's financial assets and liabilities reported in the balance sheets approximate their fair value.

**Offering Costs**

The Company complies with the requirements of FASB ASC 340-10-S99-1 with regards to offering costs. Prior to the completion of an offering, offering costs are capitalized as deferred offering costs on the balance sheets. The deferred offering costs are charged to stockholders' equity (deficit) upon the completion of an offering or to expense if the offering is not completed. During the year ended December 31, 2023, the Company incurred $150,000 offering costs.

**Revenue Recognition**

ASC Topic 606, *Revenue from Contracts with Customers* establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: 1) identify the contract with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to performance obligations in the contract; and 5) recognize revenue as the performance obligation is satisfied. No adjustments to revenue recognition were required from the adoption of ASC 606, which was adopted on January 1, 2019 and retroactively applied to the periods presented.

The Company enters into monthly and yearly subscription plans with the customers to provide immersive virtual reality offices where customers can spawn up to five virtual monitors and can collaborate with others in the same virtual space. The Company recognizes revenue ratably over the term of the agreement, as the Company's performance obligation is satisfied over time.

During the year ended December 31, 2023, the Company achieved additional milestones for the Meta (Facebook) grant valued at $200,000. These amounts are included in other income on the statements of operations.

**Deferred Revenue**

Deferred revenue consists of the following as of December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Subscriptions | $50168 | $38599 |
| Visor pre-order and visor plus deposits | 2975545 | 1435986 |
| Total deferred revenue | $3025713 | $1474585 |

---

*Subscriptions*

This pertains to subscription revenue collected but not yet earned for the Immersed virtual reality application annual subscriptions. The Company expects to recognize all deferred revenue for subscriptions in 2025.

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

*Visor Pre-Order Deposits*

During 2023, the Company began development of its own work-focused AR/VR headset, Visor, and began taking pre-order deposits in September 2023. Pre-order deposits will be recognized as revenue when orders are ready for fulfillment.

**vProperty Deposits**

During 2022, the Company created Immersed Virtual Property ("vProperty") and was paid a total of 377 Ethereum in deposits for vProperty with a total of $747,096 at 2022. This was presented as vProperty deposits under the current liabilities on the balance sheets.

During 2023, the Company was paid 2 Ethereum in deposits for vProperty valued at $2,338. Furthermore, during 2023, the Company decided to cancel that vProperty project due to refocusing on spatial computing. No vProperty was delivered to customers. As customers returned the vProperty deeds, the Company refunded the vProperty deposits to customers in Ethereum. During 2023, the Company refunded deposits in the amount of 328 Ethereum valued at $663,734 as of the date of the deposits. The remaining balance of vProperty deposits as of December 31, 2023 was 51 Ethereum valued at $85,700.

During 2024, the Company refunded deposits in the amount of 6 Ethereum valued at $12,309 as of the date of the deposits. As of December 31, 2024, the remaining Ethereum held by the Company was exchanged for another NFT, "USDC" in the amount of $2,642. See digital assets accounting policy for additional information regarding digital assets.

**Cost of Revenues**

Cost of revenue primarily includes the direct costs of maintaining the Immersed virtual reality (AR/VR) software application, software subscriptions, hosting, servers and storage costs and supplies. The cost of revenues also includes the direct cost of any merchandise sold.

**Marketing and Advertising Expense**

Marketing and advertising expenses are expensed as incurred. Marketing and advertising expenses consist of the following for the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Sponsored events | $85579 | $76680 |
| Content production | 56340 | 11124 |
| Business conference tickets |  | 406 |
| Paid advertisements | - | 50 |
| Marketing and advertising expenses | $141919 | $88260 |

---

**AR/VR Product Expenses**

AR/VR product expenses are expensed as incurred and include expenses related directly to producing the Immersed virtual reality (AR/VR) software application and products accessed within it. Also included are expenses directly related to developing Immersed's work-focused AR/VR headset, Visor. Within the Immersed virtual reality (AR/VR) software application, there are both paid-use and free-use products.

**Stock Based Compensation**

The Company measures all stock-based awards granted to employees and directors based on the fair value on the date of the grant and recognizes compensation expense for those awards, net of estimated forfeitures, over the requisite service period, which is generally the vesting period of the respective award. The Company issues stock-based awards with only service-based vesting conditions and records the expense for these awards using the straight-line method.

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

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

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

**Income Taxes**

The Company uses the liability method of accounting for income taxes as set forth in ASC 740, *Income Taxes*. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is unlikely that the deferred tax assets will be realized.

The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances and information available at the reporting date. In accordance with ASC 740-10, for those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, our policy is to record the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit will be recognized in the financial statements. The Company has determined that there are no material uncertain tax positions.

The Company accounts for income taxes with the recognition of estimated income taxes payable or refundable on income tax returns for the current period and for the estimated future tax effect attributable to temporary differences and carryforwards. Measurement of deferred income items is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized in the immediate future.

**Net Loss per Share**

Net earnings or loss per share is computed by dividing net income or loss by the weighted-average number of common shares outstanding during the period, excluding shares subject to redemption or forfeiture. The Company presents basic and diluted net earnings or loss per share. Diluted net earnings or loss per share reflect the actual weighted average of common shares issued and outstanding during the period, adjusted for potentially dilutive securities outstanding. Potentially dilutive securities are excluded from the computation of the diluted net loss per share if their inclusion would be anti-dilutive. As all potentially dilutive securities are anti-dilutive as of December 31, 2024 and 2023, diluted net loss per share is the same as basic net loss per share for each year. Potentially dilutive items outstanding as of December 31, 2024 and 2023 consist of outstanding options (Note 4).

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

**NOTE 3 – DEBTS**

**Merchant Cash Advances**

During 2024, the Company entered into multiple agreements with the merchant cash advance providers.

In March 2024, the Company received a loan from Ondeck Capital, a financial institution, for a total principal of $150,000. The Company recorded a discount on the loan amounting to $52,500, which is being amortized to interest expense over the terms of the loan. The loan matures in March 2025 and carries an interest rate of 35% per annum.

On March 25, 2024, the Company entered into a short-term agreement with FundFi Merchant Funding totaling $150,000. Total weekly required payments are $7,821 for the whole term of the loan. The Company recorded a discount on the loan amounting to $69,000, which is amortized to interest expense over the term of the loan. The loan was paid in full in October 2024.

On March 26, 2024, the Company entered into a short-term agreement with Superfast Capital totaling $100,000. Total weekly required payments are $3,393 for the whole term of the loan. The Company recorded a discount on the loan amounting to $45,900, which is being amortized to interest expense over the term of the loan. The loan is being repaid at 6% which is being deducted automatically from the Company's bank account until the total required payments are made.

On June 4, 2024, the Company entered into a short-term agreement with RedStone Advance totaling $125,000. Total weekly required payments are $3,122 for the whole term of the loan. The loan was repaid in November 2024.

On September 27, 2024, the Company entered into a short-term agreement with FundFi Merchant Funding totaling $150,000. Total weekly required payments are $6,516 for the whole term of the loan. The Company recorded discount on loan amounting to $58,500, which is being amortized to interest expense over the term of the loans. The loan is being repaid at a 25% which is being deducted automatically from the Company's bank account until the total required payments are made.

On October 1, 2024, the Company entered into a short-term agreement with Specialty Capital totaling $150,000. Total weekly required payments are $6,516 for the whole term of the loan. The Company recorded a discount on the loan amounting to $58,500, which is being amortized to interest expense over the term of the loans. The loan is being repaid at a 7% which is being deducted automatically from the Company's bank account until the total required payments are made.

As of December 31, 2024, the Company has an outstanding balance of $295,350, net of unamortized discount of $78,735. Interest expense from amortization of loan discount for the year ended December 31, 2024 amounted to $205,665.

**Loans Payable**

During 2024, the Company entered into multiple loan agreements.

In March 2024, the Company received its first loan from Shopify totaling $270,000. The Company recorded a discount on the loan amounting to $35,100, which is being amortized to interest expense over the term of the loan. The loan is being repaid daily at 17% of the Company's Shopify account's sales proceeds, which is being deducted automatically until the total required payments are made. The loan is secured by the Company's balances on its Shopify account.

On May 13, 2024 the Company received its first loan from Stripe Capital, a financial institution, for a total principal of $67,600. The Company recorded a discount on the loan amounting to $7,436, which is being amortized to interest expense over the term of the loan. The loan matures in November 2025 and carries an interest rate of 7.3% per annum. The loan was paid in full in October 2024.

In September 2024, the Company received a second loan from Shopify totaling $75,000. The Company recorded a discount on the loan amounting to $9,750, which is being amortized to interest expense over the term of the loan. The loan repayment will begin after the first loan is paid in full. The loan is secured by the Company's balances on its Shopify account.

On October 15, 2024 the Company received a loan from Stripe Capital, a financial institution, for a total principal of $88,300. The Company recorded a discount on the loan amounting to $10,684, which is being amortized to interest expense over the term of the loans. The loan matures in April 2026 and carries an interest rate of 8% per annum.

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

As of December 31, 2024, the Company has a total outstanding balance of $195,854, net of unamortized discount of $32,087. Interest expense from amortization of loan discount for the year ended December 31, 2024 amounted to $30,883.

**Notes Payable – Related Party Liabilities**

On July 11, 2024, the Company entered into multiple promissory note agreements with related parties of the company, including the Company's CEO, for a total principal amount of $420,000. The notes bear interest of 10% per annum with all principal and interest due and payable on the earlier of; (a) July 11, 2025 or, (b) in the events of default, which include voluntary and involuntary proceedings. As of December 31, 2024, the Company has an outstanding principal of $177,000.

Interest expense for the year ended December 31, 2024 on these notes amounted to $20,300, of which $16,917 remained accrued and outstanding at December 31, 2024.

**Convertible Notes Payable**

In August 2023, the Company issued a series of convertible notes for a total principal of $450,000 with a 20% discount. The notes bear interest of 8% per annum with all principal and interest due and payable on the earlier of: (a) 5 days after the receipt of demand for payment, which demand shall not made prior to August 11, 2025 (the "Maturity Date") and (b) in the events of default, which includes voluntary and involuntary proceedings.

In May 2024, the Company issued a single convertible note for a total principal of $1,000,000 with a 10% discount. The note bears an interest of 8% per annum with all principal and interest due and payable on the earlier date of; a) five days after the receipt of demand for payment, which demand shall not be made prior to May 11, 2027, or b) in the events of default, which includes voluntary and involuntary proceedings.

In July 2024, the Company issued multiple convertible notes for a total principal of $2,149,300, of which $425,000 includes notes with a 10% discount. The note bears an interest of 8% per annum with all principal and interest due and payable on the earlier date of; a) five days after the receipts of demand for payment, which demand shall not be made prior to July 2026, or b) in the events of default, which includes voluntary and involuntary proceedings.

In November 2024, the Company issued a single convertible promissory note for a total principal of $1,000,000 with a 25% discount. The note bears an interest equal to the prime rate plus 5% per annum with all principal and interest due and payable on the earlier date of; a) five days after the receipts of demand for payment, which demand shall not be made prior to November 2027, or b) in the events of default, which includes voluntary and involuntary proceedings.

In case of liquidity event, which means a change of control, private placement equity financing, direct listing, an initial public offering (IPO) or special purpose acquisition companies (SPAC) merger, the outstanding principal and accrued interest will automatically convert into Company's shares issued in the triggering financing, as applicable. The conversion price per share equal to: (a) (i) in the case of an IPO, the price per share at which conversion shares are sold to the public, (ii) in the case of private placement equity financing, the lowest per share purchase price of the conversion shares issued in such financing and (iii) in the case of other liquidity event, the aggregate fair market value of the Company's equity interest divided by the number of shares constituting the Company equity interest outstanding immediately prior to such liquidity event; in each case multiplied by (ii) the 75-100% discount rate.

Interest expense for the years ended December 31, 2024 and 2023 on these notes amounted to $167,511 and $14,104, respectively, all of which remained accrued and outstanding at December 31, 2024.

The Company analyzed the notes for beneficial conversion features and concluded that no beneficial conversion feature discount should be recorded until resolution of the contingency of the qualified equity financing. As no notes had been repaid nor converted under the conversion terms, the outstanding principal was $4,599,300 and $450,000 as of December 31, 2024 and 2023, respectively.

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

**NOTE 4 – STOCKHOLDERS' EQUITY**

**Capital Structure**

During October 2023, the Company amended and restated its articles of incorporation (the "Amended Articles"). The Amended Articles authorized 8,950,000 shares of preferred stock, designated as Series 1 Preferred Stock, and 33,000,000 shares of common stock, both $0.00001 par value per share.

As of December 31, 2023, the Company had 8,315,265 issued and outstanding shares of preferred stock and 5,800,045 issued and outstanding shares of common stock.

As of December 31, 2024, the Company had 8,315,265 issued and outstanding shares of preferred stock and 5,821,712 issued and outstanding shares of common stock.

**Preferred Stock**

The holders of Series 1 Preferred Stock are entitled to various protective provisions and preferences, as defined in the certificate of designation of Series 1 Preferred Stock (the "Agreement"). Holders of Series 1 Preferred Stock are entitled to vote on an as-converted basis with holders of Common Stock. The holders of Series 1 Preferred Stock are entitled to a dilution protected dividend preference over holders of Common Stock, as defined in the agreement. The holders of Series 1 Preferred Stock are entitled to a liquidation preference over holders of Common Stock at the original issuance price ($4.11107) per share, providing a total liquidation preference of $34,184,635 as of December 31, 2024 and 2023, or such greater amount as would be payable on an as-converted basis to Common Stock. The Series 1 Preferred Stock are convertible, at the holder's election, into Common Stock at a dilution protected conversion rate that is currently 1:1.

**Common Stock**

On January 9, 2017, the founder was granted 4,000,000 shares of common stock which are subject to 4-year vesting period. Vested common stock issued and outstanding as of December 31, 2024 and 2023 were 5,821,712 and 5,800,045, respectively.

During 2023, 554,314 stock options were exercised for $124,982 and converted into 554,314 shares of common stock.

During 2023, the Company undertook an offering of common stock pursuant to a Regulation Crowdfunding offering, raised $3,000,000 and issued 604,546 common stock shares at a price of $4.96.

During 2024, 19,148 stock options were exercised for $15,702 and converted into 19,148 shares of common stock.

During 2024, the Company issued 2,519 common stock shares at a price of $3.70 to the lead investor of its 2023 Wefunder crowd fundraiser.

**Stock Options**

The Company accounts for stock-based compensation under the provisions of Topic 718, Compensation - Stock Compensation, which requires measurement and recognition of compensation expense for all share-based payment awards made to employees and non-employee officers based on estimated fair values as of the date of grant. Compensation expense is recognized on a straight-line basis over the requisite service period. The Company has a stock-based employee compensation plan, the 2017 Stock Option Plan (the "Plan"), for which 1,400,000 shares of common stock were initially reserved for issuance under the Plan to certain employees. Awards granted under the Plan are made in the form of Incentive Stock Options (ISOs). During May 2021, the Board of Director and stockholders of the Company approved the increase in total shares to be reserved for issuance under the Plan from 1,874,022 to 7,480,000 shares of common stock. During February 2022, the Board of Director and stockholders of the Company approved the increase in total shares to be reserved for issuance under the Plan from 7,480,000 to 12,000,000 shares of common stock. During November 2022, the Board of Director and stockholders of the Company approved the increase in total shares to be reserved for issuance under the Plan from 12,000,000 to 14,062,398 shares of common stock. 835,563 and 459,539 shares were available for issuance under the Plan as of December 31, 2024 and 2023, respectively.

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

ISOs are granted to certain employees of the Company from time to time. As of December 31, 2024, and 2023, 1,445,730 and 1,794,035 ISOs were issued and outstanding, respectively, under the Plan. Vested ISOs were 1,270,964 and 1,273,540 as of December 31, 2024 and 2023, respectively. During the years ended December 31, 2024 and 2023, 329,513 and 204,842 ISOs were forfeited, respectively.

NQSOs are granted to certain employees of the Company from time to time. As of December 31, 2024 and 2023, 11,195,443 and 11,242,310 NQSOs were issued and outstanding, respectively, under the Plan. Vested NQSOs were 10,820,206 and 10,663,332 as of December 31, 2024 and 2023, respectively. During the years ended December 31, 2024 and 2023, 406,503 and 41,712 NQSOs were forfeited, respectively.

Outside the Plan, prior to 2020, the Company granted 1,318,784 non-qualified stock options ("NQSOs") with an exercise price of $0.03 per share. During the year ended December 31, 2021, the Company granted 1,297,264 NQSOs with an exercise price of $0.82 per share. NQSOs of 2,616,048 remain outstanding as of December 31, 2024 and 2023, of which 2,616,048 NQSOs were vested as of December 31, 2024 and 2023.

The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option. The estimation of the number of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from the Company's current estimates, such amounts are recognized as an adjustment in the period in which estimates are revised. In accordance with ASC 718, as a private company, the Company has elected to use a 0% forfeiture rate in calculating its stock compensation expense.

The Company's ISOs and NQSOs typically expire ten years after the grant date and vesting occurs immediately or over a period of four years.

A summary of options activities for the years ended December 31, 2024 and 2023 is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2024** | **2024** | **2023** | **2023** |
|  |<br><br>**Options** | **Weighted**<br>**Average**<br>**Exercise**<br>**Price** |<br><br>**Options** | **Weighted**<br>**Average**<br>**Exercise**<br>**Price** |
| Balance beginning of period | 15652393 | $0.73 | 16394016 | $0.71 |
| Granted | 359992 | $3.70 | 59245 | $0.56 |
| Excercised | (19148) | $0.82 | (554314) | $0.82 |
| Forfeited | (736016) | $2.13 | (246554) | $0.82 |
| Outstanding - end of period | 15257221 | $0.74 | 15652393 | $0.73 |
| Exercisable at end of period | 14707218 | $0.73 | 14552920 | $0.71 |
| Intrinsic value of options outstanding at year-end | $45320849 |  | $1249840 |  |
| Weighted average duration (years) to expiration of outstanding options at year-end | 6.80 |  | 7.99 |  |
| Weighted average duration (years) to expiration of exercisable options at year-end | 6.75 |  | 7.60 |  |

---

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

Determining the appropriate fair value of stock-based awards requires the input of subjective assumptions, including the fair value of the Company's common stock, and for stock options, the expected life of the option, and expected stock price volatility. The Company used the Black-Scholes Option Pricing model to value its stock option awards. The assumptions used in calculating the fair value of stock-based awards represent management's best estimates and involve inherent uncertainties and the application of management's judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards.

The expected life of stock options was estimated using the "simplified method," which is the midpoint between the vesting start date and the end of the contractual term, as the Company has limited historical information to develop reasonable expectations about future exercise patterns and employment duration for its stock options grants. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. For stock price volatility, the Company uses comparable public companies as a basis for its expected volatility to calculate the fair value of options grants.

The stock option issuances were valued using the following inputs for the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Risk free interest rate | 0.23% | 3.37% |
| Expected dividend yield | 0.00% | 0.00% |
| Expected volatility | 33.75% | 33.75% |
| Expected life (years) | 7 | 5 |
| Fair value per stock option | $1.295 | $0.199 |

---

As of December 31, 2024 and 2023, there were $239,797 and $572,438, respectively, of costs to be recognized over a weighted-average period of approximately 1.70 years and 2.74 years, respectively.

The fair value of stock options issued during the years ended December 31, 2024 and 2023 was $466,190 and $11,790, respectively.

**NOTE 5 – INCOME TAXES**

Income taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of other assets and liabilities. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which result in taxable or deductible amounts in the future.

As of December 31, 2024 and 2023, the Company had net deferred tax assets before valuation allowance of $5,951,989 and $2,992,850, respectively.

The following table presents the deferred tax assets and liabilities by source:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Net operating loss carryforward | $5902589 | $2947668 |
| Research and development credits | 50100 | 50100 |
| Depreciation methods | (700) | (4918) |
| Deferred tax assets | 5951989 | 2992850 |
| Valuation allowance | (5951989) | (2992850) |
| Net deferred tax assets | $- | $- |

---

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to 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 assessed the need for a valuation allowance against its net deferred tax assets and determined a full valuation allowance is required due to taxable losses for the years ended December 31, 2024 and 2023, cumulative losses through December 31, 2024, and no history of generating taxable income. Therefore, valuation allowances of $5,951,989 and $2,992,850 were recorded as of December 31, 2024 and 2023, respectively. Deferred tax assets were calculated using the Company's combined effective tax rate, which it estimated to be 21.0%. The effective rate is reduced to 0% due to the full valuation allowance on its net deferred tax assets.

The Company's ability to utilize net operating loss carryforwards will depend on its ability to generate adequate future taxable income. As of December 31, 2024 and 2023, the Company had net operating loss carryforwards available to offset future taxable income in the amounts of $28,107,567 and $14,036,515, respectively, which may be carried forward to offset future income.

The Company has evaluated its income tax positions and has determined that it does not have any uncertain tax positions. The Company will recognize interest and penalties related to any uncertain tax position through its income tax expense.

The Company may in the future become subject to federal, state and local income taxation though it has not been since its inception, other than minimum state tax. The Company is not presently subject to any income tax audit in any taxing jurisdiction, though its 2019-2024 tax years remain open to examination.

**NOTE 6 – CONTINGENCIES**

The Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome, if any, arising out of any such matter will have a material adverse effect on its business, financial condition or results of operations. As of December 31, 2024 and 2023, the Company has not reported any lawsuit or known plans of litigation by or against the Company.

**NOTE 7 – LEASE COMMITMENTS**

In September 2022, the Company entered into a 25-month operating lease agreement for office space, which started in November 2022. The agreement called for a security deposit of $70,000 and monthly payments of $30,527 for the first year, and $31,443 for the remaining 13 months. Additionally, the Company is responsible for $19,148 of the monthly common area maintenance charges. The Company initially recognized an operating lease right-of-use asset and an operating lease liability of $673,673, discounted using the Company's incremental borrowing rate of 5.0% and lease term of 25 months. As of December 31, 2023, the carrying amount of the operating lease right-of-use asset was $337,123, net of accumulated amortization of $367,993 and the carrying amount of operating lease liability was $337,380, net of unamortized interest of $8,493. On November 30, 2024, the lease agreement was fully consummated and was not renewed.

For the years ended December 31, 2024 and 2023, the Company incurred $553,182 and $577,995 of rent expense, respectively.

**NOTE 8 – SUBSEQUENT EVENTS**

The Company opened a Regulation Crowdfunding (Reg CF) in January 2025 and is actively raising capital through a Reg CF campaign via a convertible note with a $200M valuation cap.

Management has evaluated subsequent events through February 14, 2025, the date the financial statements were available to be issued. Based on this evaluation, no other material events were identified which require adjustment or disclosure in the financial statement.

**PART III – EXHIBITS**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| [2.1\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-1.htm) | [Amended and Restated Certificate of Incorporation dated May 13, 2021](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-1.htm) |
| [2.2\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-2.htm) | [Amendment dated November 19, 2021, to the Amended and Restated Certificate of Incorporation](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-2.htm) |
| [2.3\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-3.htm) | [Amendment dated October 24, 2023, to the Amended and Restated Certificate of Incorporation](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-3.htm) |
| [2.4\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-4.htm) | [Certificate of Designation of Series 1 Convertible Preferred Stock dated May 13, 2021](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-4.htm) |
| [2.5\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-5.htm) | [Amendment dated November 19, 2021 to the Certificate of Designation of Series 1 Preferred Stock](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-5.htm) |
| [2.6\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-6.htm) | [Bylaws of Immersed Inc. (former AraJoy, Inc.)](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-6.htm) |
| 4.1\*\* | Form of Subscription Agreement |
| [6.1+](tm2528799d1_ex6-1.htm) | [Agreement with DealMaker Securities LLC (and affiliates), dated October 28, 2025](tm2528799d1_ex6-1.htm) |
| [6.2\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex6-2.htm) | [Advisor Agreement between the Immersed Inc. and Lonsdale Enterprises Inc., dated May 18, 2023](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex6-2.htm) |
| [6.3\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex6-3.htm) | [Form of indemnification agreement for directors and officers](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex6-3.htm) |
| [6.4\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex6-4.htm) | [2017 Stock Option Plan, as amended on September 30, 2019 and on May 13, 2021](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex6-4.htm) |
| [6.5\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex6-5.htm) | [Form of Stock Option Agreement](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex6-5.htm) |
| [11.1+](tm2528799d1_ex11-1.htm) | [Consent of Independent Auditor](tm2528799d1_ex11-1.htm) |
| 12.1\*\* | Opinion of Greenberg Traurig, LLP regarding legality of the securities covered in this Offering |

---

\* Previously filed.

\*\* To be filed.

+ Filed herewith.

**SIGNATURES**

Pursuant to the requirements of Regulation A, as amended, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing this Offering Statement on Form 1-A and has duly caused this Offering Circular and the correlating Offering Statement to be signed on its behalf, by the undersigned, thereunto duly authorized, in the city of Austin, Texas on this 29<sup>th</sup> day of October 2025.

This Offering Statement has been signed by the following persons in the capacities and on the dates indicated.

---

| |
|:---|
| **IMMERSED INC.** |
| By: /s/ Renji Bijoy |
| Name: Renji Bijoy<br> Title: Founder and Chief Executive Officer |

---

## Ex1A-6

**Exhibit 6.1**

![](tm2528799d1_ex6-1sp01img001.jpg)

**Order Form -** **Reg A**

---

| | |
|:---|:---|
| **Prepared for: Immersed** | **Quote Date: Oct 27, 2025** |
| **Contact: Renji Bijoy** | **Valid Until: Nov 26, 2025** |
| **Email: renji@immersed.com** | **Proposed By: Jonathan Self** |

---

**Billing Information**

---

| | |
|:---|:---|
| ***Effective Date:*** | Oct 28, 2025 10:24:10 AM UTC-0500 |
| ***Payment Terms:*** | 10% Due on Signing, 10% Due Net 7, 20% Due Net 30 |
| ***Billing Contact:*** | Renji Bijoy |
| ***Billing Phone:*** |  |
| ***Billing Email:*** | renji@immersed.com |
| ***Billing Address:*** | PO Box 40681, Austin Texas United States 78704 |

---

**Set Up Fees**

---

| | |
|:---|:---|
| **Set Up Fees** | **Net Price** |
| DealMaker Shareholder Services - Setup | $2500 |
| DealMaker Securities – Reg A Onboarding Setup | $27500 |
| DealMaker.tech Plus Setup | $10000 |
| **Total Net Setup** | $**40000** |

---

**Monthly Fees**

---

| | |
|:---|:---|
| **Monthly Fees** | **Net Price** |
| DealMaker.tech - Plus Platform Monthly Fee | $2000 |
| **Total Net Monthly** | $**2000** |
| **Set Up Fees** | **Net Price** |
| DealMaker Marketing Services - Full Package Setup | $30000 |
| **Total Net Setup** | $**30000** |
| **Monthly Fees** | **Net Price** |
| DealMaker Marketing Services - Marketing Advisory Monthly Fee | $11000 |
| DealMaker Marketing Services - Marketing Consulting Monthly Fee | $2000 |
| **Total Net Monthly** | $**13000** |

---

1/49

This Order Form sets forth the terms of service by which a number of separate DealMaker affiliates are engaged to provide services to Customer (collectively, the "**Services**"). By its signature below in each applicable section, Customer hereby agrees to the terms of service of each company referenced in such section. Unless otherwise specified above, the Services shall commence on the date hereof.

By proceeding with its order, Customer agrees to be bound contractually with each respective company. The Applicable Terms of Service include and contain, among other things, warranty disclaimers, liability limitations and use limitations.

In particular, Customer understands and agrees that it is carrying out a self-hosted capital raise and bears primary responsibility for the success of its own raise. No DealMaker entity is ever responsible for the success of Customer's campaign and no guarantees or representations are ever in place with respect to (i) capital raised (ii) investor solicitation or (iii) completion of investor transactions with Customers. Customer agrees and acknowledges that online capital formation is uncertain, and that nothing in this agreement prevents Customer from pursuing concurrent or sequential alternative forms of capital formation. Customer should use its discretion in choosing to engage the vendors described in this Agreement and agrees that such entities bear no responsibility to Customer with respect to raising capital.

There shall be no force or effect to any different terms other than as described or referenced herein (including all terms included or incorporated by reference) except as entered into by one of the companies referenced herein and Customer in writing.

A summary of Services purchased is described in the Schedule "Summary of Compensation" attached. The applicable Terms of Service are described on the Schedules thereafter, and are incorporated herein.

Services NEVER include providing any investment advice nor any investment recommendations to any investor.

---

| | |
|:---|:---|
| &nbsp;&nbsp;Immersed |  |
| &nbsp;&nbsp;**Name** | &nbsp;&nbsp;Renji Bijoy |
| &nbsp;&nbsp;**Title** | &nbsp;&nbsp;CEO |
| &nbsp;&nbsp;**Signature** | &nbsp;&nbsp;/s/ Renji Bijoy <br> CEO |
| &nbsp;&nbsp;**Date** | &nbsp;&nbsp;Oct 28, 2025 10:24:10 AM UTC-0500 |

---

2/49

**Schedule "Summary of Compensation"**

**A. Regulation A Offering Advance**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **$67,500 Advance** (an advance against accountable expenses anticipated to be incurred, and refunded
 to extent not actually incurred)

*This advance includes:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. $27,500 prepaid to DealMaker Securities
 LLC for Pre-Offering Analysis

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. $10,000 prepaid to Novation Solutions Inc.
 O/A DealMaker for infrastructure for self-directed electronic roadshow

iii. $30,000 prepaid to DealMaker
 Reach LLC for consulting and developing materials for self-directed electronic roadshow

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **$13,000 monthly account management compensation.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Monthly account management and software access fees commence in the month
 of the Commencement date. If no Commencement date is stated on the Order Form, monthly fees
 commence in the first month following the Effective Date.

o To the extent services are commenced in advance of a FINRA no objection letter being received, such amounts shall
 be considered an advance against accountable expenses anticipated to be incurred, and fully refunded to extent not
 actually incurred). A maximum of $39,000 or three months of account management fees are payable prior to a no objection
 letter being received.

o Monthly compensation includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ $2,000
 account maintenance fees payable to DealMaker (up to a maximum of $18,000 during the Offering)

· $11,000 marketing
 advisory fees payable to Reach (up to a maximum of $99,000 during the Offering)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **4.5% Cash Compensation From All Proceeds:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Cash
 compensation does not include processing investor refunds for Customers, which are chargeable
 at $50.00 per refund.

o Customer shall be responsible for third-party fees with respect
 to payment processing.\*

o Customer may elect to offset all or a portion of these fees by levying an administrative
 fee to investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **Media Fees ("Supplemental Marketing Fees")** to be determined on a case-by-case basis,
 as may be authorized by the Customer, up to a maximum of an additional $250,000 of compensation
 during the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **$5,075 in Corporate Filing Fees (payable to FINRA)** 

**\*Fees are estimated to be approximately 2% of offering proceeds.**

3/49

**Fair Compensation**

To ensure adherence to fair compensation guidelines, DealMaker Securities will ensure that, in any scenario, the aggregate fees payable to DealMaker Securities and its affiliates in respect of Services related to the Offering shall never exceed $1,632,249.54 (the "Maximum Compensation"), if the Offering is fully subscribed..

*\*In the event that the Financial Industry Regulatory Authority ("FINRA") Department of Corporate Finance does not issue a no objection letter for the Offering, all DMS compensation fully refundable other than services actually rendered.*

&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Non-Regulation A Offering Fees** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **$2,500 DealMaker Shareholder Services account setup**, including upload of existing shareholder list and general review
 and compliance (Directors' resolutions, etc.) in respect of up to 2,500 shareholders
 with no additional charge. Additional services beyond the first 2,500 shareholders will be
 charged out at DM Shareholder Services standard hourly rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **DealMaker Shareholder Services:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o $250 monthly subscription
 fee for DealMaker Shareholder Services Management portal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o DealMaker Shareholder Services include the issuance of securities by
 DealMaker Shareholder Services to investors in any Offering conducted on DealMaker, as well
 as the maintenance of Customer's register of securities

o Compensation for additional DealMaker Shareholder Services is listed on the DM Shareholder
 Services Rate card and is subject to regular update in the ordinary course.

Note: Prices are standard base compensation and subject to additional customization compensation. A condition of the use of DealMaker Transfer Agent LLC (O/A "DealMaker Shareholder Services") is that Customer continue to pay any and all outstanding compensation owing to DealMaker, including software compensation for use of the DealMaker Shareholder Services Management portal on a monthly basis, on the fees and terms established in the Order Form entered into between Customer and DealMaker.

4/49

**Schedule "Broker Dealer Services" (DealMaker Securities LLC)**

**Pre-Offering Analysis**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reviewing Customer, its
 affiliates, executives and other parties as described in Rule 262 of Regulation A, and
 consulting with Customer regarding the same.

**Pre-Offering Consulting for Self-Directed Electronic Roadshow**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reviewing
 with Customer on best business practices regarding raise in light of current market conditions and prior self-directed capital raises

· Reviewing
 with Customer on question customization for investor questionnaire, selection of webhosting services, and template for campaign page

· Advising
 Customer on compliance of marketing material and other communications with the public with applicable legal standards and requirements

· Providing
 advice to Customer on content of Form 1A and Revisions

· Provide
 extensive, review, training, and advice to Customer and Customer personnel on how to configure and use electronic platform powered
 by DealMaker.tech

· Assisting
 in the preparation of SEC and FINRA filings

· Working with the Client's
 SEC counsel in providing information to the extent necessary

**Advisory, Compliance and Consulting Services During the Offering**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reviewing investor information,
 including identity verification, performing AML (Anti-Money Laundering) and other compliance background checks, and providing Customer
 with information on an investor in order for Customer to determine whether to accept such investor into the Offering;

· If necessary,
 discussions with the Customer regarding additional information or clarification on an Customer-invited investor;

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

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

· Contracting
 and/or notifying the company, if needed, to gather additional information or clarification on an investor;

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

· Reviewing
 with Customer regarding any material changes to the Form 1A which may require an amended filing; and

· Reviewing third party provider
 work-product with respect to compliance with applicable rules and regulations.

**Customer hereby engages and retains DealMaker Securities LLC, a registered Broker-Dealer, to provide the applicable services described above. Customer hereby agrees to the terms set forth in the DealMaker Securities Terms, with compensation described on Schedule "Summary of Compensation" hereto.**

5/49

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Customer** | &nbsp;&nbsp;/s/ Renji Bijoy |
| &nbsp;&nbsp;**Signature** | &nbsp;&nbsp;CEO |

---

**Schedule "Marketing Scope of Services (DealMaker Marketing Services LLC (O/A "DealMaker Reach"))"**

Full Marketing Compensation Includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Website Design and Development:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Copywriting and design of the website with up to 3 rounds of revisions at the
 copywriting stage and design stage each.

· Development of the website using Webflow.

· Integration of tracking, analytics,
 and pixels.

· Ongoing maintenance and management of website content.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Audience-Building Infrastructure:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Audience building through email capture on landing pages.

· Creation of the following email series:

&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. Investor educational email series (4
 to 6 emails)

ii. Post investment series (1-2 emails)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Ongoing email list nurturing with updates from the Customer's campaign
 announcements, relevant news, and webinars.

· Design and implementation of email capture in Klaviyo.

· Integration of DealMaker webhooks to build and track the investor funnel and
 status.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Video Production:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Creation
 of a campaign video to highlight the investment opportunity.

&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. 90-120 Seconds

ii. Basic Motion Graphics (includes lower-thirds,
 basic text animations, etc.)

iii. Access to Stock Footage

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Creation of video script with up to 2 rounds of revisions on the script.

· One
 full day of video shooting (up to 10 hours).

· Creation of final video with up to three revisions of edits

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Conversion Rate Optimization (CRO):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Continuous
 testing of website content to improve conversion rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Email Marketing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Ongoing
 nurturing of the email list with updates repurposed from the Customer's campaign announcements,
 relevant news, and webinars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Ad Creative

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· 4-6 image assets resized for all channels

· 2-3 video assets resized for all channels

· 3-4 copy variations applicable to respective channels

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Paid Media

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Management of Google ADs including Search, Display, Google Discovery, and YouTube
 ads.

· Management of Meta Ads (Facebook & Instagram) as well as Twitter/X
 ads upon request.

· Ongoing testing of ad copy and creative.

6/49

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Partnerships:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Sourcing
 and negotiating private ad placements with relevant publishers and email newsletters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Reporting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Regular calls: bi-weekly

· Strategic planning, implementation, and execution of the marketing budget.

· Coordination with third-party agents in connection with the performance of services.

· Monthly forecasting.

· Monthly and bimonthly report generation.

Customer is responsible for reviewing items 1 through 9 with Customer's professional advisors, as required Marketing Services monthly fee will commence in the first month following **the Effective Date**.

COMPENSATION NOT INCLUDED

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Expenses

**Marketing Services are provided by DealMaker Marketing Services LLC (O/A "DealMaker Reach"). Customer hereby agrees to the terms set forth in the DealMaker Marketing Services Terms of Service, with compensation described on Schedules "Summary of Compensation" and "Marketing Scope of Services (DealMaker Marketing Services LLC (O/A "DealMaker Reach"))" hereto.**

7/49

**Schedule**

**"DealMaker.tech Subscription Platform and Shareholder Services Online Portal"**

**During the Offering, Subscription Processing and Payments Functionality**

 fully-automated tracking, signing, and reconciliation of investment transactions

· Full analytics suite to track all aspects of the offering and manage the conversion
 of prospective investors into actual investors.

**Apart from the Offering, Shareholder Management via DealMaker Shareholder Services**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Access to DM Shareholder Management Technology to provide corporate updates,
 announce additional financings, and track engagement

· Document-sharing functionality to disseminate share certificates, tax documentation,
 and other files to investors

· Monthly compensation is payable to DealMaker.tech while the client has engaged
 DealMaker Shareholder Services

**Subscription Management and DM Shareholder Management Technology is provided by Novation Solutions Inc. O/A DealMaker. Customer hereby agrees to the terms set forth in the DealMaker Terms of Service with compensation described on Schedule "Summary of Compensation" hereto.**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Customer** | &nbsp;&nbsp;/s/ Renji Bijoy |
| &nbsp;&nbsp;**Signature** | &nbsp;&nbsp;CEO |

---

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**Schedule "Transfer Agent Services" (DealMaker Shareholder Services)**

**Account Setup:**

**General onboarding and customer account setup, includes:**

● Upload of existing shareholder list (2,500 shareholders or fewer)

● Issuer review and compliance package (directors resolutions, etc)

**Shareholder Services Management Portal Monthly Compensation**

---

| | |
|:---|:---|
| **Number of Shareholders** | **Monthly Compensation** |
| 0-250 | $250 minimum flat fee |
| 251-500 | $0.75 / shareholder |
| 501-1500 | $0.50 / shareholder |
| 1501-5000 | $0.20 / shareholder |
| 5001-10000 | $0.10 / shareholder |
| 10,001+ | $0.08 / shareholder |

---

**Issuance Compensation (Per Action)**

Electronic Record (Book Entry) security issuance compensation included

Compensation for additional services is listed on the DealMaker Shareholder Services Rate card and is subject to regular update in the ordinary course. **Upload of historic shareholder list includes up to 2,500 shareholders provided that that shareholder data meets DealMaker's standard data format. Services related to onboarding historical shareholders where data is not provided in DealMaker's standard format or above and beyond the first 2,500 shareholders will be billable at DealMaker Shareholder Services standard hourly rates of $50 per hour.**

A condition of the use of DealMaker Shareholder Services is that Customer continue to pay any and all outstanding compensation owing to DealMaker, including software compensation for use of the DealMaker Shareholder Services Management portal on a monthly basis, on the compensation and terms established in the Order Form entered into between Customer and DealMaker.

**Customer hereby engages and retains DealMaker Transfer Agent LLC, a registered Transfer Agent, (O/A "DealMaker Shareholder Services") to provide the applicable services, with compensation described on Schedule "Summary of Compensation" hereto.**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Customer** | &nbsp;&nbsp;/s/ Renji Bijoy |
| &nbsp;&nbsp;**Signature** | &nbsp;&nbsp;CEO |

---

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**Shareholder Services Rate Card**

---

| | |
|:---|:---|
| <u>Account Setup & Onboarding</u> |  |
| DealMaker Shareholder Services Onboarding includes: | $2500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Configuration of a Customer Shareholder Services portal for shareholder management |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Issuer review and compliance package |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Upload of historical shareholder list (must be provided in appropriate CSV Format) up to 2,500 holders |  |
| Data cleaning and reconciliation | $125/hour |
| *Note: DealMaker standard hourly rates of $125 per hour will apply to:* |  |
| &nbsp;&nbsp;*(a) uploading all historic shareholder data that is not in standard CSV format; and* |  |
| &nbsp;&nbsp;*(b) Issuers importing greater than 2,500 historic shareholders.* |  |
| &nbsp;&nbsp;*Requests to upload more than 2500 historic shareholders may also incur additional fees for data integration, available upon request.* | &nbsp;&nbsp;*Requests to upload more than 2500 historic shareholders may also incur additional fees for data integration, available upon request.* |

---

---

| | |
|:---|:---|
| <u>Shareholder Services Management Portal Monthly Fee</u> |  |
| 0 - 250 shareholders (*minimum flat fee*) | $250 |
| 251 - 500 shareholders | $0.75 / shareholder |
| 501 - 1,500 shareholders | $0.50 / shareholder |
| 1,501 - 5,000 shareholders | $0.20 / shareholder |
| 5,001 - 10,000 shareholders | $0.10 / shareholder |
| 10,001+ shareholders | $0.08 / shareholder |

---

---

| |
|:---|
| Monthly Fee includes: |
| - Portal access and use of DM Shareholder Management Technology |
| - shareholder ledger management, shareholder inquiry and IR functionality, Community building tools, and more. |
| - Functionality supporting corporate updates, announcements, tracking engagement. |
| - Document-sharing functionality to disseminate book entry statements, tax documentation, and other files to shareholders. |
| Note: Pricing is graduated - tiers apply progressively as shareholder quantity increases. |

---

<u><u>Issuance Fees</u></u>   <br> <u>Electronic Record (Book Entry) security issuance fee</u> <u>included</u>

---

| | |
|:---|:---|
| <u>Base Usage Fees - Corporate Actions</u> | <u>Base Usage Fees - Corporate Actions</u> |
| Stock Split | $2500 |
| Name Change | $2500 |
| Stock Dividend | $2500 |

---

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---

| | |
|:---|:---|
| Sh<u>areholder Actions</u> |  |
| Non-restricted share transfer (issue/cancel). Includes electronic record-keeping of documentation received for transfer | $50/transfer |
| Removal of Restrictive Legend | $100 |
| Transaction Rejection | $25 |
| *Note: all shares are maintained in book-entry form, we do not issue paper certificates so significant savings on paper certificate costs (lost/stolen/mailing)* | *Note: all shares are maintained in book-entry form, we do not issue paper certificates so significant savings on paper certificate costs (lost/stolen/mailing)* |
| <u>Digital Dividend</u> |  |
| Dividend Setup | $1500 |
| Administrative Fee | $500 per disbursement |
| Per distribution (plus associated payment processing costs) | $3.00 |
| 1099s Issue/Send\* | $3.99 |
| *Note: Customer is responsible for issuing K-1s in place of 1099s. Customer's accountant can prepare K-1s. DealMaker Shareholder Services can be used to share K-1 statements with Customer's investors and FAQs prepared to easily manage investor's inquiries.* | *Note: Customer is responsible for issuing K-1s in place of 1099s. Customer's accountant can prepare K-1s. DealMaker Shareholder Services can be used to share K-1 statements with Customer's investors and FAQs prepared to easily manage investor's inquiries.* |
| <u>Base Shareholder Digital Voting & Annual Meetings</u> |  |
| Voting, Website setup, Digital Meeting Hosting, Digital Q&A, Shareholder Technology Support | $15,000\*\* |
| Email notice and Electronic ID Generation | $1.50 per shareholder |
| Vote Tabulation | $0.50 per vote tabulated |
| \*\*Per Quarter. Voting extended beyond the quarter is subject to additional fees. |  |
| *Note: By-Laws must be drafted by counsel to permit digital meetings.* |  |
| **<u>Other Services</u>** |  |
| Audit Verification | $125 |
| Additional OFAC investor checks | $2.50 */shareholder* |
| Early Termination | Per contract term |

---

<u>Warrants and Convertible Notes:</u>

---

| | | |
|:---|:---|:---|
| General onboarding and customer account setup, includes: | General onboarding and customer account setup, includes: |  |
| · | services rendered in connection with the creation of the issue. |  |
| · | including, among other things, reviewing and providing our comments to counsel on the draft Warrant Indenture and other related documents. |  |
| · | execution of the Warrant Indenture in its final approved form in acceptance of the responsibilities and duties of the agency. |  |
| · | setting up records, and all telephone communications and correspondence incidental thereto. |  |
| <u>Monthly Record Maintenance Fee</u> | <u>Monthly Record Maintenance Fee</u> | $300 per month |

---

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---

| | | |
|:---|:---|:---|
| <u>Exercise Fee</u> | <u>Exercise Fee</u> | $60.00 per exercise and |
| · | Includes review of exercise forms, confirmation of payment | issuance |
| · | Cancellation of warrants and update of warrant register |  |
| · | Issuance of new securities, update of new security register |  |
| · | AML verification included in .tech portal |  |
| <u>Cancellation, De-Registration, Re-Registration of Warrants</u> | <u>Cancellation, De-Registration, Re-Registration of Warrants</u> | $20.00 per cancellation |
| Removal of Restrictive Legend | Removal of Restrictive Legend | &nbsp;&nbsp;$100 per transaction |
| <u>Other Services</u> | <u>Other Services</u> |  |
| Rush Fees | Rush Fees | *\*Quoted based on *Customer time *limitations and project *scope** |
| Fractional Share Payments | Fractional Share Payments |  |
|  |  | \**Quoted upon request* |
| Audit Verification | Audit Verification | $125 |
| Early Termination | Early Termination | $2500 |
| Consulting Fee | Consulting Fee | $50/hour |
|  |  | &nbsp;&nbsp;\* *Consulting fee for *issuer & investor *questions outside our *mandate for example,** *questions not directly *related to the series raise for which we have *been engaged.* |

---

NOTE: Prices are standard base fees and subject to additional customization fees. A condition of the use of DealMaker Transfer Agent LLC services is that Issuer continue to pay any and all outstanding fees owing to DealMaker, including software fees for use of the DealMaker Shareholder Services Management portal on a monthly basis, on the fees and terms established in the Order Form entered into between Issuer and DealMaker.

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![](tm2528799d1_ex6-1sp01img002.jpg)

**DEALMAKER TERMS OF SERVICE**

These Terms of Services **("Terms")** govern access to the software and services provided by any of the DealMaker entities such as Novation Solutions Inc., O/A DealMaker (**"DealMaker.tech"**), DealMaker Reach, LLC (**"DM Reach"**), DealMaker Securities LLC (**"DMS"**) and DealMaker Transfer Agent LLC, O/A DealMaker Shareholder Services (**"DMTA"**) (individually, each a **"DealMaker Entity"** and collectively, the **"DealMaker Entities"**). Each of the entities may be referred to as **"DealMaker"** or the **"Company"** in these Terms.

These Terms have legal implications. It is important that you read these terms carefully, and consult legal counsel if you determine that is appropriate, in order to understand these Terms.

The Terms, together with the DealMaker order form from which this page was linked (**"Order Form"**), form an agreement between the Customer (as defined in the order form) and the applicable DealMaker entit(ies) being engaged for technology or services (each an **"Agreement"**). Each of these Agreements may be referred to as "an Agreement" or "the Agreement" in these Terms.

Each Agreement contains, among other things, warranty disclaimers, liability limitations and use limitations. Each Agreement also contains an arbitration provision which is enforceable against the parties and may impact your rights and obligations. By signing the Order Form and using the DealMaker Entity services described in such Order Form, Customer accepts and agrees to be bound by these Terms.

These Terms apply to all DealMaker Entities unless a DealMaker Entity is explicitly excluded or alternative terms are supplemented, as indicated below.

**<u>1. Definitions</u>**

**"Account"** means Investment funds deposited in Customer's account with a financial institution by (i) Customer's investors directly, funded via wire or check or (ii) a third party payment processor, prior to the Closing of any transaction involving such investments.

**"Closing"** means the resolution of all applicable AML-related exceptions or discrepancies identified through any searches provided by third parties through Company or otherwise identified by or to Company for all transactions associated with an investment and the acceptance by the Customer of the investment associated with such transactions.

**"Closing Date"** means the date of each Closing.

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**"Commencement Date"** occurs in the month the Customer begins paying monthly subscription fees. If no Commencement Date is stated on the Order Form, monthly subscription fees are payable in the month following the Effective Date.

**"Customer Payment Processing Account"** means a Customer's account with a third party payment processor into which Customer deposits investment funds.

**"DM Shareholder Management Technology"** means DealMaker's investor communication functionality technology and/or services provided by DealMaker.tech.

**"Effective Date"** is the date the Agreement is signed.

**"Escrow Account"** means Customer's third party escrow account into which Customer directs investment funds from Investors.

**"Improvements"** means any improvements, updates, variations, modifications, alterations, additions, error corrections, enhancements, functional changes or other changes to the Software, including, without limitation: (i) improvements or upgrades to improve software efficiency and maintainability; (ii) improvements or upgrades to improve operational integrity and efficiency; (iii) changes or modifications to correct errors; and (iv) additional licensed computer programs to otherwise update the Software.

**"Intended Purpose"** means Customer's use of the Software to raise capital online via technology or services provided by DealMaker.tech.

**"Offerings"** refers to online capital formation transactions completed by Company's Customers or Customer's clients, using the Software.

**"Software"** means the DealMaker™ cloud-based software program developed by Company, including its features, functionality, performance, application and use, any related printed, electronic and online documentation, manuals, training aids, user guides, system administration documentation and any other files that may accompany the Software used by the Customer.

**"TOS"** means the DealMaker.tech website terms of service located at https://www.dealmaker.tech/terms.

**<u>2. Term and Termination</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>2.1. Term</u>**

**Unless otherwise stated in the Order Form, the Agreement will remain in effect from the Effective Date until the first day of the month following the completion of an Offering ("Term"). The Term for DMTA is set forth in the DMTA terms.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>2.2. Renewal</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1. <u>Activation Fees</u>: Unless otherwise specified in the Order Form, activation fees do not renew. Activation fees are one-time fees. These may also be referred to as "Launch Expenses" or "Setup," if they precede the Offering launch or commencement of Services

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2. <u>Monthly Subscription Fees</u>: Unless otherwise specified in the Order Form, Monthly Subscription Fees ("Subscription Fee") automatically renew each month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.3. <u>DM Shareholder Management Technology Fees</u> : DM Shareholder Management Technology is a service offered by DealMaker.tech. Unless otherwise specified in the DealMaker.tech or DMTA fee schedules to your Order Form, fees for use of the DM Shareholder Management Technology, when applicable, will automatically renew each month and the services can be canceled within any month upon written notice, effective the month following cancellation of DealMaker.tech services, except for DMTA Customers. Cancellation of fees for use of DM Shareholder Management Technology for DMTA customers is governed by the DMTA terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.4. <u>DealMaker Transactional Fees</u> are incurred at the time of each transaction and charged on a per use basis, as specified in the Order Form.

**<u>2.3. Termination</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.1. <u>Termination for Cause</u>. Customer or any DealMaker Entity may terminate this Agreement immediately for Cause, as to any or all Subscription services. "Cause" includes a determination that a party is acting, or have acted, in a way that has negatively reflected on or impacted, or may negatively reflect on or impact the other party, its prospects, or its customers, including without limitation in a way that violates or causes a violation of applicable law or regulation. Upon termination for cause, there are no additional fees incurred. All prepaid unused fees would be returned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.3.2. Otherwise, an Agreement may only be terminated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Material Breach</u>: A party may terminate this Agreement upon sixty (60) days written notice if the breaching party fails to perform or observe any material term, covenant, or condition to be performed or observed by it under this Agreement and such failure continues to be unremedied after sixty (60) days' written notice of such failure from Company to Customer.

If the breach has not been cured within the sixty day period, the non-breaching party may terminate this Agreement forthwith and may immediately exercise any one or more of the remedies available to it under the Terms of this Agreement, in addition to any remedy available at law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Customer Default</u>. If Customer defaults in performing its obligations under an Agreement, Company may terminate this Agreement (i) upon written notice if any material representation or warranty made by Customer proves to be incorrect at any time in any material respect or (ii) upon written notice, in order to comply with a legal requirement, if such compliance cannot be timely achieved using commercially reasonable efforts, after Company has provided Customer with as much notice as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Right of Termination – Insolvency/Bankruptcy</u>: A party may terminate an Agreement immediately, if the other party becomes the subject of a petition in bankruptcy or any other proceeding relating to insolvency, cessation of business, liquidation or assignment for the benefit of creditors, reorganization or other relief, or is adjudged bankrupt or insolvent or has entered against it a final and unappealable order for relief, under any bankruptcy, insolvency, or other similar law. In the event of Company insolvency, all of the Customer's assets are immediately released.

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(collectively, **"Termination Reasons"**)

Other than the Termination Reasons, unless explicitly stated otherwise, an Agreement may not otherwise be terminated prior to the end of the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.3. The termination of an Agreement as described herein shall not exclude the availability of any other remedies. Any delay or failure by either party to exercise, in whole or in part, any right, power, remedy or privilege shall not be construed as a waiver or limitation to exercise, in whole or in part, such right, power, remedy or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.4. All terms of an Agreement, which should reasonably survive termination, shall survive, including, without limitation, confidentiality, limitations of liability and indemnities, arbitration and the obligation to pay fees relating to services provided by the DealMaker Entity prior to termination.

**<u>3. Payment & Billing</u>**

DealMaker shall be compensated as set out in the Order Form. Unless otherwise specified in the schedules to the Order Form, Customer will be invoiced on a monthly basis. Payment will be automatically debited from the Customer's bank account or credit card on file, with a receipt to be automatically delivered. Invoices will be available for the Customer to review upon request. In the event that any Customer payment fails, in respect of any invoice due and payable to a DealMaker Entity (**"Arrears"**), Customer must re–connect its bank account or update credit card within fourteen (14) days and submit payment for any Arrears. Unless Arrears are cleared and accounts are brought back into good standing within 14 days, automated payouts and reconciliation reporting will be disabled. In the event the Arrears are not cleared or accounts are not brought back into good standing within 30 days, all services will be paused until payment is received and the Customer's bank account or credit card authorization is restored. DealMaker reserves the right to debit from Customer's payment account in respect of any Arrears aged beyond thirty days unless the Customer disputes the charges in writing.

**<u>4. Intellectual Property</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.1. <u>Title</u>. Company retains title to and sole ownership of the Software and all Improvements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <u>Cloud-Based Software</u>. The Software is cloud based. As such, the source and object code are located on servers outside of the Customer's premises. Customer shall have no access to the facilities at which the Software is hosted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <u>Intellectual Property</u>. All Intellectual Property, Intellectual Property Rights and distribution rights associated with or arising from Company's Confidential Information including but not limited to the Software, remain exclusively with Company. **"Intellectual Property"** includes, without limitation, with respect to all DealMaker Products: all technical data, designs, specifications, software, data, drawings, plans, reports, patterns, models, prototypes, demonstration units, practices, inventions, methods and related technology, processes or other information, and all rights therein, including, without limitation, patents, copyrights, industrial designs, trade-marks and any registrations or applications for the same and all other rights of intellectual property therein, including any rights that arise from the above items being treated by the parties as trade secrets (the rights being **"Intellectual Property Rights."**)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.4. <u>Restrictions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.1. Customer may not: (i) modify, enhance, reverse-engineer, decompile, disassemble or create derivative forms of the Software; (ii) copy the Software; (iii) sell, sub-license, lease, transmit, distribute or otherwise transfer rights in/to the Software; (iv) allow third-party use of the Software installed at the Site; or (v) pledge, hypothecate, alienate or otherwise encumber the Software to any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.2. Use of the Software is restricted to the Intended Purpose only. Customer agrees not to engage in any activity restricted by the TOS or transfer any information restricted by the TOS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.3. Customer acknowledges that unauthorized reproduction or distribution of the Software is expressly prohibited by law, and may result in civil and criminal penalties. Violators may be prosecuted. Customer may not reverse engineer, decompile, disassemble or otherwise attempt to discover the source code of the Software, DealMaker website or any part thereof, except and only to the extent that such activity is expressly permitted by applicable law notwithstanding this limitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. Customer represents and warrants that any Customer assets or materials provided and the intended use thereof in accordance with the terms of each Agreement, will not infringe, violate, or misappropriate any third party rights, including without limitation, any copyrights, trademarks, trade secrets, privacy, publicity, or other proprietary or intellectual property rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6. Customer represents and warrants that Customer will not to bid on or use any DealMaker Entity trademarks, brand names, or any variations thereof in Customer's paid search advertising campaigns. This includes, but is not limited to, Google AdWords, Bing Ads, and other search engine marketing platforms. Unless otherwise provided for in the Agreement, Customer shall not:

4.6.1.bid on or use our trademarks as keywords in Customer's paid search campaigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.2. include DealMaker Entity trademarks in Customer's ad copy, display URL, or landing page URL; 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;4.6.3. use any misspellings, variations, or confusingly similar terms to DealMaker Entity trademarks in Customer's paid search activities;

DealMaker reserves the right to monitor and enforce compliance with these trademark bidding restrictions.

**<u>5. Confidential Information</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. **"Confidential Information"** means any and all confidential or proprietary information of DealMaker or Customer, including affiliates thereof, which has been or may be disclosed by one party to this Agreement ("Disclosing Party") to the other party ("Receiving Party"), at any time prior to and during the Agreement Term, including, without limitation, the names of employees and owners, the names or other personally identifiable information of customers, business and marketing information, technology, know-how, ideas, reports, techniques, methods, processes, uses, composites, skills, and configurations, intellectual property of any kind and all documentation provided by investors in the Offering. Without limiting the generality of the foregoing, DealMaker's Confidential Information includes: (i) the Software; (ii) the computer code underlying the Software, including source and compiled code and all associated documentation and files; (iii) information relating to the performance or quality of the Software and services provided by the DealMaker Entity; (iv) the details of any technical assistance provided to Customer during the Term; (v) any other products or service made available to Customer by DealMaker during the Agreement Term; and (vi) information regarding DealMaker's business operations including its research and development activities. All work product, pricing, Agreement terms and process information of either party exchanged with the other party to perform the terms of the Agreement is agreed to be Confidential Information, except that any logos or marketing references are not Confidential Information.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. **"Confidential Information"** does not include information that: (i) is or has become generally known to the public without any action by the non-disclosing party; (ii) was known by either party prior to entering into the Agreement; (iii) was independently determined by either party; or (iv) was disclosed to the relevant party without restriction by a third party who, to the best of such party's knowledge and belief, had no obligation not to disclose such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. Neither party may disclose Confidential Information without the express written consent of the other party, except as specifically contemplated in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. <u>Trade Secrets.</u> Notwithstanding anything to the contrary herein, with respect to Confidential Information that constitutes a trade secret under the laws of any jurisdiction, such rights and obligations shall survive such expiration or termination until, if ever, such Confidential Information loses its trade secret protection other than due to an act or omission of the receiving Party or its Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5. By executing this Agreement, the Customer is providing written consent for DealMaker to disclose Confidential Information but only to the extent required to carry out the terms of this Agreement. Customer's investors will be required to sign-in to the DealMaker.tech portal and agree to the DealMaker.tech TOS. The parties agree that this process shall not constitute a disclosure of "Confidential Information" as described in this section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6. Notwithstanding anything in this section, Customer and DealMaker hereby agree that each party may use the other party's logo for promotional purposes (**"Logo Use"**). The parties acknowledge that Logo Use does not include the use of any descriptive copy, all of which must be approved by Customer and DealMaker in writing. Except as provided for in this paragraph, nothing contained in this Agreement will be construed as granting Customer or DealMaker any right, title or interest in or to any or to use any of the other party's Confidential Information. Customer or DealMaker may terminate Logo Use at any time, with or without cause, upon written notice to the other party. For any Customer conducting a public offering on the DealMaker platform (i.e. Regulation A or Regulation CF offerings), in which the offering is already in the public domain, Customer agrees that DealMaker may disclose Customer name and offering proceeds to third party data aggregators for the purpose of generating industry reports. Industry reports shall not include publication of Customer name or the amount raised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7. <u>Authorized Disclosure</u>. Each party may, without the consent of the other party, disclose Confidential Information to the extent reasonably necessary to comply with applicable regulatory demands or orders in connection with the purpose for which the Customer enters into this Agreement. Each party may disclose the existence of this Agreement and any relationship between the parties.

**<u>6. Exclusion of Warranties</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Except as expressly stated in this Agreement, DealMaker makes no representations or warranties or covenants to Customer, either express or implied, with respect to the Software, services provided by the DealMaker Entity or with respect to any Confidential Information disclosed to Customer. DealMaker specifically disclaims any implied warranty or condition of non-infringement, merchantable quality or fitness for a particular purpose. Customer acknowledges that the Software is in continuous development and that it has been advised by DealMaker to undertake its own due diligence with respect to all matters arising from this Agreement. All services are provided on an "as is" and "as available" basis without any warranties, express or implied, including, without limitation, implied warranties of merchantability or fitness for a particular purpose, and DealMaker expressly disclaims all warranties. Customer agrees and understands that no DealMaker entity has any fiduciary duty to Customer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. <u>No Improvements</u>. Company is under no obligation to provide Improvements to the Software during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. <u>Any Improvements Gratuitous</u>. Any Improvements provided by DealMaker to Customer from time to time during the Term shall be, unless otherwise stated, construed as being provided on a purely gratuitous basis and shall not give rise to any right or entitlement on the part of Customer, except as otherwise specifically provided in this Agreement. Any Improvements so provided shall be governed by the same terms and conditions applicable to the Software, as described herein, unless otherwise outlined in a fee schedule or addendum to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. <u>No Future Entitlement.</u> Nothing in this Agreement shall be construed as creating any obligation on DealMaker to continue to develop, commercialize, offer, make available or support (i) the Software; or (ii) any feature, functionality or Improvement as may be encompassed in the Software from time to time during the Term, beyond the duration of the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. <u>Company Templates and Samples are Provided with No Warranties</u>. Customer may request access to DealMaker's templates and resources to help organize and set up an offering or any communications related thereto. These resources may include template communications, educational packages, resources for the management of administrative and collaborative tasks, and best practices observed from other offerings and industries. Customer acknowledges and agrees that, by providing access to any documents, training, or resources, DealMaker is not rendering and shall not be deemed to have rendered any legal, tax, investment, or financial planning advice. Customer shall, as it deems necessary or advisable, consult its own legal, tax, investment, or financial planning advisers. All templates and samples are provided with no warranties whatsoever and by making use of such materials, Customer is agreeing to voluntarily assume any liability with respect thereto.

**<u>7. Limitation and Exclusion of Liability</u>**

Unless otherwise specified herein, in no event is DealMaker's liability for any damages on any basis, in contract, tort or otherwise, of any kind and nature whatsoever, arising in respect of this Agreement, howsoever caused, including damages of any kind and nature caused by DealMaker's negligence or by a breach of contract or any other breach of duty whatsoever, to exceed the fees actually paid to DealMaker by Customer during the Term. Customer acknowledges that DealMaker has set its fees under this Agreement in reliance on the limitations and exclusions of liability set forth in this Agreement and such reliance forms an essential basis of this Agreement.

**<u>8. Indemnification</u>**

<u>Applicability of Indemnification Clause:</u> Customers of DMTA are bound by the separate indemnification clauses applying only to DMTA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. **Indemnification by Customer**. Customer shall indemnify and hold each DealMaker Entity, its affiliates and their respective members, officers, directors and agents (**"Indemnified Parties"**) harmless from any and all actual or direct losses, liabilities, claims, demands, judgements, arbitrations awards, settlements, damages, direct fees, costs and expenses (including attorney fees and costs) (collectively **"Losses"**), resulting from or arising out of any third party suits, actions, claims, demands, investigations or similar proceedings (collectively **"Claim"**) to the extent they are based upon (i) a breach of this Agreement by Customer, (ii) the wrongful acts or omissions of Customer, (iii) Customer, or Customer's clients' engagement with DealMaker and any actions taken in conjunction therewith, including but no limited to usage of the Software, whether or not such activities are in accordance with Intended Usage or (iv) the Offering. **"Losses"** includes, losses arising from payment processing which are losses arising from chargebacks, clawbacks, payment reversals, fraudulent charges, insufficient credit, unauthorized charges, claims of Customer or third parties regarding payment disputes, and any other problems relating to card or ACH payments made for the benefit of Customer (**"Payment Processing Losses"**).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. **Indemnification by Company.** The applicable DealMaker Entity shall indemnify and hold Customer, Customer's affiliates and Customer's representatives and agents harmless from any Losses resulting from or arising out of Claims to the extent they are based upon (i) such DealMaker Entity's breach of this Agreement (ii) the negligence, fraud, bad faith or willful misconduct of the DealMaker Entity or (iii) DealMaker Entity's failure to comply with any applicable laws in the performance of its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. **Indemnification Procedure**. If any proceeding is commenced against a party entitled to indemnification under this section, prompt notice of the proceeding shall be given to the party obligated to provide such indemnification. The indemnifying party shall be entitled to take control of the defense, investigation or settlement of the Proceedings and the indemnified party agrees to reasonably cooperate, at the indemnifying party's cost in ensuing investigations, defense or settlement. The indemnifying party shall reimburse the indemnified party for all expenses (including reasonable fees, disbursements and other charges of counsel) as they are incurred in connection with investigating, preparing, pursuing, defending, or settling a Claim (including without limitation any shareholder or derivative action); provided, however, that indemnifying party will not be liable to indemnify and hold harmless or reimburse an indemnified party pursuant to this paragraph to the extent that an arbitrator (or panel of arbitrators) or court of competent jurisdiction will have determined by a final non-appealable judgment that such Claim resulted from the gross negligence or willful misconduct of such indemnified party. The Indemnifying Party will not settle, compromise or consent to the entry of a judgment in any pending or threatened Claim unless such settlement, compromise or consent includes a release of the indemnified parties satisfactory to the indemnified parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4. **Indemnified Party Limitation Of Liability**. In no event shall the Indemnified Parties be liable or obligated in any manner for any consequential, exemplary or punitive damages or lost profits incurred by Customer arising from or relating to the Agreement, an Offering, or any actions or inactions taken by an Indemnified Parties in connection with the Agreement, and the Customer agrees not to seek or claim any such damages under any circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5. **Recovery of Payment Processing Losses.** Notwithstanding anything to the contrary in this Agreement, upon Company giving Customer prior written notice of no less than five business days, DealMaker.tech shall have the right, in its sole discretion, to request Customer reimburse Company for Payment Processing Losses from Customer Account or from Customer's Payment Processing Account, unless prohibited by law. Customer acknowledges and agrees that recovery of Losses from Customer's Payment Processing Account will not serve as any limitation on the indemnification obligations of Customer under this Agreement or any remedy or claim that Company may be entitled to pursue against Customer in respect of such Losses.

**<u>9. Third Party Services</u>**

Customer may request introductions to DealMaker's network of partners and vendors for the purpose of sourcing additional services (including but not limited to, a call center, marketing support, investment relations). Unless otherwise specified in writing, all engagements with third parties in this respect are to be made directly between the Customer and the vendor at the Customer's discretion. Customer acknowledges and agrees that, by making such introductions, DealMaker is not recommending and shall not be deemed to have recommended any partner or vendor's products or services or to have assumed any responsibility for Customer's selection of any partner or vendor or procurement of such products or services.

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Without limiting any other protection of DealMaker under this Agreement and notwithstanding anything to the contrary, DealMaker shall bear no responsibility or liability whatsoever in connection with any third party services provided by a vendor engaged by Customer, the decision to engage such vendors rests solely with the management of the Customer on the terms contracted between the Customer and such parties.

**<u>10. Escrow</u>**

Customer acknowledges that if Customer opens a third-party escrow account (either by Customer's choice or as necessary to comply with applicable laws or regulations) in connection with the Company services, Customer will apply for escrow account with a DealMaker-approved escrow provider.

**<u>11. Customer Obligations</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **11.1. General**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.1. Customer shall be responsible for providing Offering terms to its subscribers. Such disclosure shall include, but is not limited to the following material information: a method of Customer valuation, a description of the security available in the Offering, the risks related to the investment, whether there are existing investors and any additional capital expectations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.2. Customer is solely responsible for ensuring that the funds raised in the Offering are used, allocated or invested in accordance with the use of funds described in the Offering disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.3. Customer acknowledges that following the final closing for the Offering, Customer will have sufficient liquidity (from the proceeds raised in the Offering or alternate Customer funds) to sustain Customer operations for that period of time which is clearly identified in the Offering disclosure or alternatively, until the next Customer funding round.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.4. Nothing in this Agreement shall be construed to relieve the managers or officers of Customer from the performance of their respective duties or limit the exercise of their powers in accordance with the Customer's bylaws, operating and constituent documents, written supervisory procedures, applicable law or otherwise. The Customer bears ultimately responsibility for all decisions with regard to any matter upon which Company has rendered its services. The Company shall not, and shall have no authority to control Customer or Customer's day-to-day operations, whether through the performance of the Company's duties hereunder or otherwise. The Customer's directors, managers, officers and employees shall retain all responsibility for Customer, and its operations as and to the extent required by Customer's bylaws, operating and constituent documents, and applicable law. In furtherance and not in limitation of the above, and notwithstanding any other provision of this Agreement or of any other agreement, understanding or document that purports to have any contrary effect or meaning, the DealMaker shall not control, or have the right to control, directly or indirectly, the wages, hours, or terms and conditions of employment of the Customer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **11.2. Privacy.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.1. Notwithstanding any other provision of this Agreement, Customer shall not take or direct any action that would contravene, or cause the other party to contravene, applicable legislation that addresses the protection of individuals' personal information (collectively, **"Privacy Laws"**). Customer shall, prior to transferring or causing to be transferred personal information to Company, obtain and retain required consents of the relevant individuals to the collection, use and disclosure of their personal information, or shall have determined that such consents either have previously been given upon which the parties can rely or are not required under the Privacy Laws, including any consents required from third parties pursuant to applicable Privacy Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.2. Customer acknowledges that, when used for an Offering, the Customer's personalized Software dashboard (**"Software Dashboard"**) will contain personal identifying information (**"PII"**) of Customer's investors. Customer is solely responsible for ensuring compliance with all applicable Privacy Laws when Customer (a) downloads and stores any PII obtained from the Software Dashboard and (b) provides Customer's representatives with access to the Software Dashboard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.3. Customer is solely responsible for notifying Company when any Customer representative is no longer working for the Customer and/or authorized to access the Software Dashboard for the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.4 Customer shall cause all third parties with access to PII obtained from the Software Dashboard to execute agreements acknowledging the third parties' obligation to comply with applicable Privacy Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.5. Customer has implemented and continually monitors and enforces an agreement or policy with its Customer representatives, employees and agents that addresses (i) confidentiality and security provisions for all data, including data obtained through the Software Dashboard and (ii) permitted and impermissible use of this data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.3. Bad Actor Checks**

Customer agrees to provide DealMaker Entity with documentation verifying completion of bad actor checks in compliance with all applicable regulations (**"Bad Actor Checks"**). Customer shall provide DealMaker Entity with a copy of Customer's Bad Actor Checks within thirty (30) days of the Effective Date of this Agreement, failing which, DealMaker Entity shall notify Customer in writing that it shall take steps to complete Customer's Bad Actor Checks at Customer's sole expense.

**<u>12. General Terms</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. <u>Publications.</u> Each party acknowledges that its name, logo(s) and a description of the general nature of this Agreement may be used in any press release, public announcement or public communication during and following the Term. Without limiting the generality of the foregoing, Company may publish such information on its websites and in its promotional materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. <u>General Cooperation</u>. The parties shall with reasonable diligence do all such things and provide all such reasonable assurances and execute all such documents, agreements and other instruments as may reasonably be necessary for the purpose of carrying out the provisions and intent of any Agreement. The parties further acknowledge that the implementation of each Agreement will require the co-operation and assistance of each of them.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3. <u>No Books And Records Obligations</u>. Any and all obligations of Customer related to the storage of books and records remains the sole obligation of Customer. Company expressly disclaims any and all responsibility with respect to any regulatory or industry requirements with respect to the Customer's obligations related to record keeping and maintenance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4. <u>Survival.</u> These terms shall continue in effect until the expiration or termination of the Agreement, whichever is earlier. The provisions of these Terms of Service which should by their nature survive expiration or termination of this Agreement shall so survive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12.5. <u>Currency.</u> All currencies referred to herein are in US dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6. <u>Amendment and Waiver</u>. Amendments to any Agreement, including any schedule or attachment hereto, shall be enforceable only if in writing and signed by authorized representatives of each of the applicable parties. A party does not waive any right under this Agreement by failing to insist on compliance with any of the terms of this Agreement or by failing to exercise any right hereunder. No waiver of any breach of any terms or provisions of this Agreement is effective or binding unless made in writing and signed by the authorized representative of each of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7. <u>Assignment</u>: No party may assign an Agreement or any of its rights or obligations hereunder without the prior written consent of the other party, such consent not to be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.8. <u>Inurement</u>. Each Agreement inures to the benefit of and is binding on each of the parties and their respective successors and permitted assignees, heirs and legal representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9. <u>Force Majeure</u>. Excluding any obligations of a party to pay monies due hereunder, neither party will be responsible for any delay or failure in its performance or obligations under this Agreement due to causes beyond its reasonable control, including, without limitation, labor disputes, strikes, civil disturbances, government actions, fire, floods, acts of God, war, terrorism, or other similar occurrences (each, a **"Force Majeure Event"**); provided that the party affected by such Force Majeure Event (a) is without fault in causing such delay or failure, (b) notifies the other party of the circumstances causing the Force Majeure Event, and (c) takes commercially reasonable steps to eliminate the delay or failure and resume performance as soon as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.10. <u>Governing Law.</u> Each Agreement is made in New York governed by and construed in accordance with the laws of the state of New York and the federal laws applicable therein. In connection with each Agreement, the Parties attorn to the jurisdiction of the courts of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.11. <u>Arbitration</u>. Any and all controversies, claims, or disputes arising out of or relating to each Agreement, or the interpretation, performance, or breach thereof, including the scope or applicability of this provision to arbitrate (**"Dispute"**) shall be referred to senior management of the parties for good faith discussion and resolution. In the event the parties cannot resolve any Dispute informally, then such Dispute shall be submitted to confidential, final, and binding arbitration with venue in New York, NY, pursuant to the rules of the American Arbitration Association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.11.1. <u>Arbitration Procedure</u>. The arbitration shall take place in New York. The arbitration shall be before a single, neutral arbitrator who is a former or retired New York state or federal court judge. The arbitration may be initiated by any party by giving to the other party written notice requesting arbitration, which notice shall also include a statement of the claims asserted and the facts upon which the claims are based. Customer and Company each consent to this method of dispute resolution, as well as jurisdiction, and consent to this being a convenient forum for any such claim or dispute and waive any right it may have to object to either the method or jurisdiction for such claim or dispute. In the event of any dispute among the parties, the prevailing party shall be entitled to recover damages plus reasonable costs and attorney's fees and the decision of the arbitrator shall be final, binding and enforceable in any court.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.11.2. <u>Compelling Arbitration</u>. Any party may bring an action in any court of competent jurisdiction to compel arbitration under this Agreement and to enforce an arbitration award. Notwithstanding this arbitration provision, either party shall be entitled to seek injunctive relief (unless otherwise precluded by any other provision of this Agreement) from any court of competent jurisdiction. If for any reason an action proceeds in court rather than in arbitration, it shall be brought exclusively in a state or federal court of competent jurisdiction located in New York and the parties expressly consent to personal jurisdiction and venue therein and expressly waive any right to trial by jury.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.11.3. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY LITIGATION, ACTION, PROCEEDING, CROSS-CLAIM, OR COUNTERCLAIM IN ANY COURT (WHETHER BASED ON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF, RELATING TO OR IN CONNECTION WITH (I) THIS AGREEMENT OR THE VALIDITY, PERFORMANCE, INTERPRETATION, COLLECTION OR ENFORCEMENT HEREOF OR (II) THE ACTIONS OF THE PARTIES IN THE NEGOTIATION, AUTHORIZATION, EXECUTION, DELIVERY, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT HEREOF.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.12. <u>Entire Agreement</u>: Each Agreement including all schedules thereto, constitutes the entire agreement between the parties concerning the applicable subject matter and supersedes all prior or collateral agreements, communications, presentations, representations, understandings, negotiations and discussions, oral or written.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.13. <u>Headings</u>**:** Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.14. <u>Number and Gender.</u> Words importing the singular mean the plural and vice versa. Words in the masculine gender include the feminine gender and vice versa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.15. <u>Severability.</u> If any term, covenant, condition or provision of an Agreement is held by a court or arbitrator(s) of competent jurisdiction to be invalid, void or unenforceable, it is the parties' intent that such provision be reduced in scope by the court or arbitrator(s) only to the extent deemed necessary by that court or arbitrator(s) to render the provision reasonable and enforceable and the remainder of the provisions of this Agreement will in no way be affected, impaired or invalidated as a result.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.16. <u>Notices.</u> Any notice required to be given pursuant to an Agreement shall be in writing and delivered by electronic mail, addressed to the appropriate party. Any notice given is deemed to have been received on the date on which it was delivered if a business day, or, failing that, on the next business day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.17. **<u>Testimonials.</u>** Customer acknowledges that DealMaker's materials may from time to time include testimonials, real world experiences and insights or opinions about other people's experiences with DealMaker (***"Examples"***) and that this information is for illustration purposes only. Customer further acknowledges that campaigns are affected by a variety of factors including but not limited to time, external global events, varying business plans, different industries, and that these Examples are in no way a representation or guarantee that current or future customers will achieve the same or similar results.

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**DealMaker Additional Terms Applicable to Certain DealMaker.tech Services: Third Party Payment Processing, AML/KYC Background Checks, Accreditation Verification and Analytics, Marketing Review Tool.**

**The following sections of the Terms only apply to those DealMaker.tech Customers who purchase the specific services noted.**

**<u>13. Background Checks: AML compliance and "clearing"</u>**

DealMaker's integrated AML searches are tools provided to Customer to assist Customer (or its agents) in complying with applicable obligations related to KYC/AML regulations. Company is not engaged to perform and will not perform, and shall not be deemed responsible for performing, any services related to reviewing or analyzing search results, sources of funds or wealth, or making any determination as to whether Customer has complied with its obligations under applicable anti-money laundering legislation and regulations or as to whether any prospective investor poses any risk of money laundering, terrorist financing, or other criminal or suspicious activity. Customer and/or its agents (including counsel or broker dealer as applicable) shall bear primary responsibility to determine compliance with applicable AML legislation and regulation and shall assist in the clearing of any AML exceptions. Customer's KYC/AML clearing obligations may require Customer to undertake efforts to ensure that individual and corporate investors provide applicable identity verification, explanations of adverse regulatory/disciplinary/bankruptcy history or media reports, confirmation of false positive results, or other documents or information required for AML purposes. DealMaker.tech's AML searches are limited by capabilities and design of products and services of the third parties DealMaker.tech engages to perform such searches, including limitations on the search methodology, matching logic, data sources, and information accuracy.

**<u>14. Regulation D, 506(c) Accredited Investor Verification</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1. Customer may engage either Company or a third party (each a **"Reviewer"**) to assist Customer in complying with applicable obligations related to accredited investor verification pursuant to Rule 506(c) of Regulation D promulgated under the Securities Act (**"Regulation D"**). If Reviewer is Company, Company shall review investor submissions and uploaded documentation on the DealMaker portal and make a determination as to whether Customer has complied with its obligations to verify accredited investors (as defined by Rule 501 of Regulation D promulgated under the Securities Act) (**"DM Verification"**). Customer acknowledges that Company may contact investor for the purpose of accredited investor verification and that Customer has obtained investor's consent to receive communications from Company and/or DealMaker regarding investor's accreditation verification. If Reviewer is a third party, Company will not perform, and shall not be deemed responsible for performing, any services related to reviewing or analyzing search results, sources of funds or wealth, or making any determination as to whether Customer has complied with its obligations to verify accredited investors (as defined by Rule 501 of Regulation D promulgated under the Securities Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2. Company does not make and hereby disclaims any warranty, expressed or implied with respect to the information provided through DM Verification. Company does not guarantee or warrant the correctness, merchantability, or fitness for a particular purpose of the information provided through DM Verification. Customer acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.1. DM Verification shall not include accreditation verification of non-U.S. investors (**"foreign accredited investors"**) who may be subject to foreign accreditation verification requirements.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.2. DM Verification is conducted using a variety of third party database searches, public record services and user submissions. Company cannot represent or warrant that the data provided will be 100% accurate, complete or up to date. The data is time sensitive and Company provides the information as is. Public records may be incomplete, out of date or have errors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.3. The results of a DM Verification search for any type of personal verification should be interpreted cautiously. Criminal and civil record search results may not provide a complete or accurate representation of a person's criminal background or civil judgment history. Records are available for the majority, but not all, of states and counties. Records can be incomplete, contain inaccuracies or false matches.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.4. Company is not a consumer reporting agency as defined in the Fair Credit Reporting Act (**"FCRA"**), and the information in DealMaker.tech's databases has not been collected in whole or in part for the purpose of furnishing consumer reports, as defined in the FCRA. CUSTOMER SHALL NOT USE DM VERIFICATION SERVICES AS A FACTOR IN (1) ESTABLISHING AN INDIVIDUAL'S ELIGIBILITY FOR PERSONAL CREDIT OR INSURANCE OR ASSESSING RISKS ASSOCIATED WITH EXISTING CONSUMER CREDIT OBLIGATIONS, (2) EVALUATING AN INDIVIDUAL FOR EMPLOYMENT, PROMOTION, REASSIGNMENT OR RETENTION, OR (3) ANY OTHER PERSONAL BUSINESS TRANSACTION WITH ANOTHER INDIVIDUAL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.5. Customer assumes all risks arising from its use or disclosure of DM Verification information Company provides to Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.6. DM Verification Services are provided in English only. Customer acknowledges that data provided in any other language will require a certified translation which Customer shall pay for, or alternatively, reject the investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.7. Notwithstanding anything in the DealMaker Terms of Service, Customer agrees that it shall indemnify, defend and hold harmless Company, its officers, directors, employees and agents, and the entities that have contributed information to or provided services for DM Verification against any and all direct or indirect losses, claims, demands, expenses (including attorneys' fees and cost) or liabilities of whatever nature or kind arising out of Customer's use of the information provided by DM Verification and Customer's use or distribution of any information obtained therefrom, except for losses caused exclusively and directly by Company's gross negligence, fraud, bad faith or wilful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.8. THE DM VERIFICATION SERVICES AND INFORMATION ARE PROVIDED "AS-IS" AND "AS AVAILABLE" AND NEITHER COMPANY NOR ANY OF ITS DATA SUPPLIERS REPRESENTS OR WARRANTS THAT THE INFORMATION IS CURRENT, COMPLETE OR ACCURATE. COMPANY HEREBY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES REGARDING THE PERFORMANCE OF THE WEBSITE OR OUR SERVICES, AND THE ACCURACY, CURRENCY, OR COMPLETENESS OF THE INFORMATION, INCLUDING (WITHOUT LIMITATION) ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Customer acknowledges that these disclaimers are an integral part of this Agreement, and that Company would not provide DM Verification services if Customer did not agree to these disclaimers.

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**<u>15. Third-Party Payment Processing</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.1. For the processing of electronic payments (including bank-to-bank payments, credit card, etc.), the Company may submit material(s) and or application(s) to partner third-party payment processors on behalf of the Customer. Upon approval, the Company will enable the partner processors' intake form/system within the Customer's online DealMaker.tech portal.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2. Customer acknowledges that Company makes no guarantee that Customer will be approved by any third party, and approval is subject to each third party's sole discretion, including, to the extent applicable, its due diligence and compliance policies and procedures. Use of payment processing service(s) is further contingent on the mutual acceptance by Company and Customer of each third party's respective terms, service agreements, and fees (including fees for merchant processing account and ongoing maintenance, which may be applied on a per-issuer basis) to be included as an addendum to this Agreement and/or presented to Customer for acceptance at the time Customer engages third party, and as updated from time to time. Note holdback periods may apply for electronic payment transfer methods, as enforced by processors. Company shall not be deemed responsible for delivery or any interruption or cessation of any services provided by any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3. All transactions must clear prior to being made available to Customer. US Federal regulations provide investors with 60 days to recall funds. Customer remains liable to immediately and without protestation or delay return any funds recalled by investors for whatever reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4. Customer agrees that funds deposited into Customer's Account shall remain in Customer's Account and shall not be withdrawn by Customer or a person authorized by Customer, from the Customer's Account prior to Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5. Company reserves the right to deny, suspend or terminate participation of any investor in the offering to the extent Company, in its sole discretion, deems it advisable or necessary to comply with applicable laws or to eliminate practices that are not consistent with laws, rules, regulations, best practices, or the protection of its reputation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6. **Holdbacks.** The Customer hereby acknowledges that certain terms apply in respect of electronic or credit card payment to cover against charge-backs and/or rescission (**"Chargeback"**). Chargeback windows can vary in duration and amount. For this reason, a holdback is applied to all funds processed online and deposited in Customer Payment Processing Account. Company shall have the right, in its sole discretion, to revise the amount and duration of any holdback. Unless otherwise advised in writing prior to the Effective Date, the holdback is 5.00% of payments processed, for a ninety (90) day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7. In the event that a Customer's investor disputes, through their financial institution, a subscription payment made using electronic or credit card payments **("Chargeback Dispute")**, Customer acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.1. If the Chargeback Dispute is initiated by a subscriber before the Customer has accepted the subscriber's investment, the Company shall refund the subscriber, and no further action will be taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.2. If the Chargeback Dispute is initiated by a subscriber after the Customer has accepted the subscriber's investment, the Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15.7.2.1. notify the Customer within twenty-four (24) hours of the Chargeback Dispute; 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;15.7.2.2. Provide Customer with five (5) business days to resolve the Chargeback Dispute directly with the subscriber.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.3. If, after (5) business days, the subscriber and Customer fail to resolve the Chargeback Dispute, Company will submit evidence contesting the Chargeback Dispute, on behalf of the Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.4. Customer agrees to promptly notify Company upon receipt of any Chargeback Dispute notifications, provide all necessary information and documentation requested by the Company to support the Chargeback Dispute and refrain from directly engaging with the payment processor or any other third party regarding the Chargeback Dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.5. Customer acknowledges that contesting a Chargeback Dispute may require the Company to share certain transaction details with third party payment processors. The Customer agrees to (a) only share information necessary to contest the Chargeback Dispute and (b) comply with all applicable data protection and privacy laws when handling Customer data and providing Customer data to Company related to the Chargeback Dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.6. For the avoidance of doubt, although the Company will make best efforts to represent the Customer in contesting a Chargeback Dispute, Company shall not be liable for and bares no responsibility whatsoever for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15.7.6.1. The outcome of the Chargeback Dispute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7.6.2. Any fees or penalties imposed by payment processors or financial institutions as a result of the Chargeback or Chargeback Dispute; 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;15.7.6.3. Any loss of revenue or business opportunity resulting from the Chargeback or Chargeback Dispute.

**<u>16. Analytics</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1. <u>Data and Analytics</u>. Company reserves the right to collect data relating to Customer's usage of the Software during the Term. Without limiting the generality of the foregoing, Company may collect information relating to: (i) Software use (including the number of users, duration of usage sessions, and number of transactions initiated or completed using the Software); (ii) error information (including error messages and any feedback text submitted via any in-application feedback form); (iii) performance data (including software run time); (iv) user experience information (including time spent on each page of the user interface); and (v) license status information (including confirmation of license activation status). Customer shall have the right to access and use data relating to its usage of the Software for its own purposes, as available through the online dashboard or other reports provided by Company.

**<u>17. Marketing Review Tool</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1. DealMaker's integrated third party marketing review tool is made available to Customer (or its agents) to review Customer's marketing materials and assist Customer in complying with applicable marketing regulations (**"Marketing Review Tool"**). If reviewer is Company, Customer may request that a DealMaker Entity assistant Customer with uploading documentation into the Marketing Review Tool but Company will not perform, and shall not be deemed responsible for performing, any services related to reviewing or analyzing search results. Company is not engaged to perform and will not perform, and shall not be deemed responsible for making any determination as to whether Customer has complied with its obligations under applicable marketing regulations based on information provided by the Marketing Review Tool. Customer and/or its agents (if so designated) shall be responsible for reviewing the results, and determining compliance with applicable marketing legislation and regulations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2. Use of the Marketing Review Tool is contingent upon Customer's acceptance of third party provider's terms and fees (if applicable) to be presented to the Customer at the time Customer initiates engagement with the Marketing Review Tool.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3. Company does not make and hereby disclaims any warranty, express or implied with respect to the information provided through the Marketing Review Tool. Customer acknowledges that (i) Company does not guarantee or warrant the correctness, merchantability or fitness for a particular purpose of the information provided through Marketing Review Tool; (ii) Marketing Review Tool is PROVIDED "AS-IS" AND "AS AVAILABLE" AND NEITHER COMPANY NOR ANY OF ITS THIRD PARTY SUPPLIER REPRESENTS OR WARRANTS THAT THE INFORMATION IS CURRENT, COMPLETE OR ACCURATE; and (iii) Customer assumes all risks arising from Company or its agents' use of the Marketing Review Tool.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.4. Notwithstanding anything in the DealMaker Terms of Service, Customer agrees that it shall indemnify, defend and hold harmless Company, its officers, directors, employees and agents, and affiliates that have contributed information to or provided services related to the Marketing Review Tool against any and all direct or indirect losses, claims, demands, expenses (including attorneys' fees and cost) or liabilities of whatever nature or kind arising out of Customer's or its agent's use of the Marketing Review Tool and Customer's use or distribution of any information obtained therefrom.

**<u>Enterprise Customer Terms</u>**

**For DealMaker Customers who have signed an Enterprise Order Form, the Terms apply, as well as the following additional terms. If you are not an Enterprise Customer, these additional terms do not apply to you:**

**<u>18. Definitions</u>**

**"Enterprise Customer"** means a Customer that has entered into an Enterprise Order Form.

**"License"** means the Company's grant to Enterprise Customer of a non-exclusive, non-transferable license for use of the Software by an unlimited number of individual users. Company will designate a DealMaker Enterprise Account to Enterprise Customers with a License.

**"Intended Purpose"** For the purposes of this section, Intended Purpose also includes usage by issuers invited by Enterprise Customer to use Enterprise Customer's Enterprise Account for the above-described purpose.

**"Software"** as it pertains to this section, shall also include any related printed, electronic and online documentation, manuals, training aids, user guides, system administration documentation and any other files that may accompany the Software licensed by Enterprise Customer.

**<u>19. SLA</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1. It is expressly understood and agreed that the Company shall determine its capacity to offer consulting services, only to such extent and at such times and places as may be mutually convenient to the parties. Company shall be free to provide similar services to such other business enterprises or activities as the Company may deem fit without any limitation or restriction whatsoever.

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**<u>20. Licensed Intermediary Terms.</u>**

**If Enterprise Customer is a licensed Intermediary (as defined below), the following additional terms apply:**

A. Books and Records

<u>Books and Records.</u> Any and all obligations of Customer related to the storage of books and records including but not limited to, obligations in accordance with Sections 17(a)(1), 17(a)(3) and 17(a)(4) of the Securities Exchange Act of 1934 (**"Exchange Act"** or "SEA") remain the sole obligation of Customer and its clients. Company expressly disclaims any and all responsibility with respect to any regulatory or industry requirements with respect to the Customer and its clients' obligations related to record keeping and maintenance.

&nbsp;&nbsp;&nbsp;&nbsp;B. Regulation CF Offerings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; i. Obligations of the Customer (acting as an Licensed Intermediary):

Where Customer using the Software has been engaged by its client to (i) act as a Broker-Dealer and a licensed Intermediary pursuant to Regulation CF, 17 C.F.R. Part 227 (the **"Regulation CF"**), or (ii) act as a registered Funding Portal and licensed Intermediary pursuant to Regulation CF, in a transaction involving the offer or sale of securities in reliance on section 4(a)(6) of the Securities Act (15 U.S.C. 77d(a)(6)), Customer shall comply with the requirements of Regulation CF (**"Licensed Intermediary"**). For greater certainty, this includes the requirements that Customer shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Register with the Securities and Exchange Commission (**"Commission"**) as either (i) a broker or (ii) a Funding Portal under section 15(b) of the Exchange Act (15 U.S.C. 78o(b)), pursuant to Regulation CF, §227.400;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. If registering with the Commission as a Funding Portal, refrain from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a. Offering investment advice or recommendations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b. Soliciting purchases, sales or offers to buy the securities displayed on its platform;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Compensate employees, agents, or other persons for such solicitation or based on the sale of securities displayed or referenced on the DealMaker platform; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d. Hold, manage, possess, or otherwise handle investor funds or securities.

(Regulation CF, §227.300(2)(c))

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Verify that no director, officer or partner of Customer, or any person occupying a similar status or performing a similar function has a prohibited "financial interest in an issuer" as the term is defined in Regulation CF, §227.300(b);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Have a reasonable basis for believing that Customer's client seeking to initiate an offering of securities under the Regulation has a reasonable basis for keeping accurate records of security holders and is not disqualified to offer securities pursuant to Regulation CF, §227.301(c);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Make available to SEC and to the public, the disclosure required by Regulation CF, §227.201 and §227.303;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6. Provide educational materials to all investors, pursuant to Regulation CF, §227.302(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Verify that Customer's clients are not disqualified from offering securities pursuant to Regulation CF, §227.100(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Only accept an Investor into an offering after (1) the Investor opens an account with Customer, (2) the Investor consents to electronic delivery and the review of the educational materials regarding the offering and (3) Customer has a reasonable basis to believe that the Investor meets the investment limitations in Regulation CF pursuant to Regulation CF, §227.302 and §227.303.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Provide communication channels by which Investors who have opened accounts can communicate with one another and with representatives of the Customer about offerings made available through the Customer or its clients, pursuant to Regulation CF, §227.303(c); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Provide Investors the opportunity to reconsider their investment decision and to cancel their investment commitment until 48 hours prior to the new offering deadline, pursuant to Regulation CF §227.304

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Provide Investors with notice of material changes as described in Regulation CF, §227.304 (**"Notice"**), including but not limited to notice that the investor's investment commitment will be canceled unless the investor reconfirms his or her investment commitment within five business days of receipt of the Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. If registering with the Commission as a Funding Portal, comply with the Conditional Safe Harbor provisions in Regulation CF, §227.402; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. If registering with the Commission as a Funding Portal, implement written policies and procedures reasonably designed to achieve compliance with federal securities laws and the rules and regulations thereunder, relating to its business as a Funding Portal, as required by Regulation CF, §227.402(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. If registering with the Commission as a Funding Portal, manage any reconciliation or reporting questions with the Issuer directly.

(**"Regulation CF Requirements"**)

For greater certainty, the parties acknowledge that Company shall bear no responsibility for or liability whatsoever in connection with the Regulation CF Requirements and Customer shall be solely responsible for ensuring that Customer and its clients comply with Regulation CF.

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Further Assurances. When Customer or its clients use the Software for an offering in reliance on Regulation CF, Customer shall verify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The issuer has filed a Form C Offering Statement with the SEC, as described in Regulation CF, §227.203(a), prior to making an offering to the public pursuant to Regulation CF;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. Issuer complies with marketing and advertising requirements of Regulation CF, §227.204;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Provider is notified of any investor who, having received Customer's Notice pursuant to Regulation CF §227.304, opts-out of their investment and whose investment must therefore be refunded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Signed and funded subscription agreements, executed by investors who have cleared AML/KYC, are reviewed by the Customer prior to countersignature;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The aggregate amount of all securities sold to all Investors by the Issuer in a single offering during a 12 month period shall not exceed $5,000,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Non-accredited Investors (as defined by Rule 501, CFR §230.301) investing in the offering pursuant to Regulation CF do not exceed the maximum investment permitted in a 12 month period per Regulation CF, §227.100.

<u>Payments To Escrow.</u> Customer acknowledges that it shall direct all payments from Investors in respect of a Regulation CF offering to Issuer's Escrow Account. Customer is responsible for (1) applying for escrow account with a DealMaker-selected Escrow Provider; (2) configuring instructions on the DealMaker platform to ensure that all payments are directed to the appropriate Escrow Account; (3) using the DealMaker.tech application to manage closings pursuant to the DealMaker user guide and (4) coordinating with the escrow company managing the Escrow Account to disburse funds upon request from the issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Regulation A/A+ Offerings

Obligations of the Customer. Where Customer has been engaged by its client as a broker-dealer in connection with an offering pursuant to Regulation A, 17 C.F.R. Parts 230.251-230.263 (**"Regulation A"**), the Customer shall verify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Customer shall complete a reasonable due diligence ensuring no anti-fraud or civil liabilities provisions of federal securities laws have been violated. As such, Customer shall maintain a Due Diligence file including the Issuer Agreement (or Selling Agreement); organizational, constating, financial, and administrative support to accept such Issuer engagement; and Issuer's Offering Memoranda, Subscription Document. Further, the Due Diligence folder shall evidence the collection of such documents in a form as described in Customer's Written Supervisory Procedures ("WSPs"). Customer shall create and maintain customer files, including new account, accredited investor, or qualified purchaser questionnaires, including Investor attestations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Issuer has filed a Form 1-A Offering Statement with the SEC, as described in Regulation A, §230.252 and §239.90, prior to making an offering to the public pursuant to Regulation A;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Issuer complies with marketing and advertising requirements of 17 C.F.R. Part II, Securities and Exchange Commission and the SRO, FINRA, including but not limited to, setting up the issuer landing page for the Offering website.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Signed and funded subscription agreements, executed by investors who have cleared AML/KYC, are reviewed by the Customer and a recommendation is made by Customer to Issuer regarding countersignature.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5. Prior to enabling countersignature:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Issuer has provided written confirmation to Customer that it has BlueSky notice filed in each state, as applicable depending on the states in which the securities are offered and whether the offering is conducted pursuant to Tier 1 or Tier 2 of Regulation A §230.252; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For the first 25 days of an offering, Customer will monitor investors until the issuer has provided written confirmation that all state BlueSky requirements have been met for the 53 US jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Issuer and Issuer counsel have taken the steps required to review non-US investors, as required by the applicable international regulations.

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![](image_037.jpg)

**DEALMAKER SECURITIES LLC ("DMS") CUSTOMER TERMS**

**For any DealMaker Securities Customer, the following additional terms also apply:**

**Broker-Dealer Agreement.** These terms and conditions for DealMaker Securities LLC (**"DMS Terms"**), along with the Order Form and schedules attached to the Order Form create a binding agreement by and between the Customer who has signed the Order Form (**"DMS Customer"**), and DealMaker Securities LLC, a FINRA-registered Broker-Dealer (**"DMS"**)(the **"DMS Agreement"**), as of the Effective Date. DMS Customer may also be considered a Customer of the other DealMaker Entities, depending on the services the Customer purchases.

DMS is a registered broker-dealer providing services in the equity and debt securities market, including offerings conducted via SEC approved exemptions such as Rules 506(b) and 506(c) of Regulation D under the Securities Act of 1933 (the **"Securities Act"**); Regulation A under the Securities Act (**"Regulation A"**); Regulation CF under the Securities Act (**"Regulation CF"**) and others. DMS Customer is offering securities directly to the public in an offering exempt from registration under either Regulation A or Regulation CF (the **"Offering"**). DMS Customer recognizes the benefit of having DMS provide advisory and other services as described herein, on the terms hereof.

Capitalized terms used but not defined in these DMS Terms have the meanings set forth in the Order Form or the Terms. In the event of a conflict between the Terms and the DMS Terms, the DMS Terms shall control.

**<u>1. Appointment & Termination</u>**

DMS Customer hereby engages and retains DMS to provide operations and compliance services at Customer's discretion/ subject to DMS's approval as a FINRA-registered broker-dealer. DMS Customer acknowledges that DMS obligations hereunder are subject to (a) DMS's acceptance of DMS Customer as a customer following DMS's due diligence review and (b) if applicable, issuance by the Financial Industry Regulatory Authority ("FINRA") Department of Corporate Finance of a no objection letter for the Offering.

In addition to the Termination Reasons, DMS may terminate this DMS Agreement if, at any time after the commencement of DMS's due diligence of the potential DMS Customer, DMS reasonably believes that is not advisable to proceed with the contemplated Offering.

**<u>2. Services</u>**

DMS will perform the services listed on the Order Form in connection with the Offering (the **"Services"**).

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**<u>3. Fees</u>**

As payment for the Services, DMS Customer shall pay to DMS such fees as described in the Order Form. Transaction-based Fees including equity are earned once the DMS Customer's investors are

reviewed by DMS. DMS Customer's acceptance of an investor completes DMS's service obligation at which time fees are due and payable to DMS. DMS Customer authorizes DMS to deduct any fees owing directly from the DMS Customer's bank account or third-party escrow account (if Customer has engaged an escrow provider). In the event this DMS Agreement is terminated in accordance with paragraph 1 of the DMS Terms, any advance against accountable expenses anticipated to be incurred, shall be refunded to the extent said expenses are not actually incurred as of the termination date.

**<u>4. Regulatory Compliance</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. DMS Customer and all its third-party providers shall at all times (i) comply with direct reasonable requests of DMS: (ii) maintain all required registrations and licenses, including foreign qualification, if necessary; and (iii) pay all related fees and expenses (including the FINRA corporate filing fee) in each case that are necessary or appropriate to perform their respective obligations under this Agreement. Customer shall comply with and adhere to all DMS policies and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. DMS Customer shall at all times disclose all compensation received by any third party promoters (including but not limited to social media influencers) in connection with the Offering, in accordance with applicable rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. DMS Customer and DMS will have shared responsibility for the review of all documentation related to the Offering but the ultimate discretion about accepting an Investor will be the sole decision of the DMS Customer. Each Investor will be considered to be that of the DMS Customer and NOT that of DMS. DMS Customer shall advise DMS of each Investor who shall not be accepted into the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. DMS Customer and DMS shall each supervise and train their respective employees, agents, representatives and independent contractors in the performance of functions allocated to them pursuant to the terms of this DMS Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. DMS Customer may request DMS assistance with preparation of the Form C for the Offering and guidance on filing the Form C for the Offering in the SEC-Edgar system but DMS Customer is ultimately responsible for the review and filing the Form C related to the Offering. In the event that DMS Customer files a Form C-W or Form 1-A-W withdrawing its filing in relation to its Offering, DMS Customer agrees to the prompt return to investors of all funds received from investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; f. DMS Customer agrees to

● Provide accurate, complete, and timely information through the online form provided. The filing creation timeline will commence only upon receipt of all required information

● Review all filings with their securities counsel to ensure accuracy before each EDGAR filing. DealMaker Securities, LLC is not liable for errors, omissions, or inaccuracies in filings due to incomplete or inaccurate information provided by the Customer.

● Submit requested revisions within the specified review windows, as additional rounds or delays may incur further fees and impact timelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. If either DMS Customer or DMS receives material communications (orally or in writing) from any Governmental Authority or Self-Regulatory Organization with respect to this Agreement or the performance of either party's obligations thereunder, the receiving party shall promptly provide said communications to the other party, unless such notification is expressly prohibited by the applicable Governmental Authority.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. DMS Customer is responsible for the preparation of financial statements using the going concern basis of accounting and required disclosures alerting investors about any underlying financial conditions and management's plans to address them. DMS Customer acknowledges that it must maintain at least six months of operating capital and update investor disclosures to reflect any change in operating capital below this threshold. DMS Customer acknowledges that these updates to investors disclosures will be made in accordance with the advice of the DMS Customer's professional advisors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. DMS Customer is solely responsible for confirming that DMS Customer is authorized to use or wholly owns all DMS Customer intellectual property used in connection with the Offering.

**<u>5. Role of DMS</u>**

DMS Customer acknowledges and agrees that it relies on its own judgment in engaging DMS Services. DMS Customer understands and agrees that (i) DMS is not assuming any responsibility for the DMS Customer's underlying business decision to pursue any business strategy or effect any Offering; (ii) DMS makes no representations with respect to the quality of any investment opportunity in connection with the Offering (iii) DMS does not guarantee the performance to or of any Investor in the Offering, (iv) DMS does not guarantee the performance of any third party which provides services to DMS or DMS Customer with respect to the Offering), (v) DMS will make commercially reasonable efforts to perform the Services pursuant to this DMS Agreement, (vi) DMS is not an investment adviser, does not provide investment advice and does not recommend securities transactions and any display of data or other information about the Offering, does not constitute a recommendation as to the appropriateness, suitability, legality, validity, or profitability of any Offering, (vii) DMS Services in connection with this DMS Agreement should not be construed as creating a partnership, joint venture, or employer-employee relationship of any kind, (ix) Services in connection with this DMS Agreement that require registration as a FINRA/SEC registered broker-dealer shall be performed exclusively by DMS or an associated person of DMS, (x) DMS is not providing any accounting, legal or tax advice, and (xi) will use "commercially reasonable efforts" to perform Services pursuant to this DMS Agreement but that this shall not give rise to any express or implied commitment by DMS to purchase or place any of the DMS Customer's securities. DMS <u>Customer explicitly acknowledges that DMS shall not and is under no duty to recommend DMS Customer's security and DMS is not selling DMS Customer's security to retail investors.</u>

**<u>6. Indemnification</u>**

<u>Insufficient Funding For A Claim</u>. If the foregoing indemnification or reimbursement is judicially determined to be unavailable or insufficient to fully indemnify and hold harmless DMS as an indemnified party against a Claim, the DMS Customer will contribute to the amount paid or payable by an indemnified party as a result of such Claim in such proportion as is appropriate to reflect the relative financial benefits of the Offering to the Company, on the one hand, and the indemnified party, on the other hand; or if such allocation is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits but also the relative fault of the DMS Customer on the one hand and the indemnified party on the other hand with respect to such Claim as well as any other relevant equitable considerations. Notwithstanding the preceding paragraphs, in no event will the aggregate amount to be contributed by all indemnified parties towards all Claims and DMS Customer losses, exceed the actual fees received by DMS pursuant to the DMS Agreement.

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**<u>7. Witness Reimbursement</u>**

In the event that DMS or any of its employees, officers, directors, affiliates or agents are requested or required to appear as a witness or subpoenaed to produce documents in any action in which the DMS Customer or any of its affiliates is a party to and DMS is not, the DMS Customer will reimburse DMS for all expenses incurred by its employees, officers, directors, affiliates or agents in preparing for and appearing as a witness or producing documents, including the reasonable fees and disbursements of legal counsel.

**<u>8. Notices</u>**

Any notices required by the agreement shall be in writing and shall be addressed, and delivered via email at the email address included in the Order Form.

**<u>9. Confidentiality and Mutual Non-Disclosure:</u>**

Nothing contained herein shall be construed to prohibit the SEC, FINRA, or other government entities from obtaining, reviewing, and auditing any information, records, or data of either party containing Confidential Information, as defined in this Agreement.

<u>Disclosure and Retention Of Confidential Information.</u> DMS is hereby expressly permitted by DMS Customer to disclose Confidential Information to third parties involved in the Offering contemplated herein, provided that DMS Customer has been informed of such disclosure in advance and has approved such disclosure (either orally or in writing). DMS may retain one copy of the DMS Customer's Confidential Information to the extent necessary to comply with industry-specific document retention rules and other regulations, and in an archived computer backup system stored as a result of automated backup procedures for compliance purposes. DMS Customer acknowledges that regulatory record-keeping requirements, as well as securities industry best practices, require DMS to maintain copies of practically all data and communications, even after this Agreement is terminated.

**<u>10. Miscellaneous</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. **FINRA Arbitration Rules Apply To DMS Customers**. Notwithstanding anything to the contrary in this Agreement, ANY DISPUTE, CONTROVERSY, CLAIM OR CAUSE OF ACTION BETWEEN THE DMS Customer AND DMS DIRECTLY OR INDIRECTLY RELATING TO OR ARISING OUT OF THIS AGREEMENT, OR BREACH THEREOF required or allowed to be conducted by the Financial Industry Regulatory Authority's ("FINRA") rules (including the FINRA Code of Arbitration Procedure for Industry Disputes) shall be arbitrated in accordance with such rules. Any arbitration shall be before a neutral arbitrator or panel of arbitrators selected under the FINRA Neutral List Selection System (or any successor system) and in a forum designated by the Director of FINRA Dispute Resolution or any member of FINRA Staff to whom such Director has delegated authority. In general accordance with FINRA Rule 2268, by signing an arbitration agreement the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.1.1. This Agreement contains a pre-dispute arbitration clause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.2. Except as otherwise provided in this Agreement, all parties to this Agreement are giving up the right to sue each other in court, including the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.3. Arbitration awards are generally final and binding; a party's ability to have a court reverse or modify an arbitration award is very limited.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.4. The ability of the parties to obtain documents, witness statements and other discovery is generally more limited in arbitration than in court proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.5. The arbitrators do not have to explain the reason(s) for their award unless, in an eligible case, a joint request for an explained decision has been submitted by all parties to the panel at least 20 days prior to the first scheduled hearing date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.6. Any panel of arbitrators may include a minority of arbitrators who were or are affiliated with the securities industry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.7. The rules of some arbitration forums may impose time limits for bringing a claim in arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.8. The rules of the arbitration forum in which the claim is filed, and any amendments thereto, shall be incorporated into this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.9. As provided in FINRA Rule 2268, no person shall bring a putative or certified class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement against any person who has initiated in court a putative class action; or who is a member of a putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until: (i) the class certification is denied; or (ii) the class is decertified; or (iii) the DMS Customer is excluded from the class by the court. Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this Agreement except to the extent stated herein.

10.2. **DMS Customer Identifying Information**. Pursuant to the requirements of Title III of Pub. L. 107-56 (the USA Patriot Act), as amended (the **"Patriot Act"**) and other applicable laws, rules and regulations, DMS is required to obtain, verify and record information that identifies the DMS Customer which information includes the name and address of the DM Customer and other information that that allows DMS to identify the DMS Customer in accordance with the Patriot Act and other such laws, rules and regulations.

10.3. **Affiliates of DMS**: DMS Customer acknowledges that agreements with DMS affiliates (also referred to as DealMaker Entities in this Agreement), if any, shall be governed by the DMS affiliates' applicable terms of service and exclusive remedy for DM Reach to recover any Losses against Customer in respect of the Agreement."

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**DEALMAKER TRANSFER AGENT LLC O/A "DEALMAKER SHAREHOLDER SERVICES" CUSTOMER TERMS**

If you are DealMaker Shareholder Services Customer, the following additional terms also apply to you.

These terms and conditions for DealMaker Transfer Agent LLC, O/A "DealMaker Shareholder Services ("DMTA Terms"), along with the Order Form and schedules attached to the Order Form create a binding agreement by and between the Customer who has signed the Order Form ("DMTA Customer"), and DMTA, as of the Effective Date ("DMTA Agreement"). DMTA Customer may also be considered a Customer of the other DealMaker Entities, depending on the services the DMTA Customer purchases.

Where these DMTA Terms replace a provision in the Terms, it is so stated. In the event of a conflict between these DMTA Terms and the Terms, the DMTA Terms shall control:

**1. Mandate**

DMTA is hereby appointed as the service provider for the register of securities issued by the DMTA Customer via the online platform hosted at dealmaker.tech or as requested by the DMTA Customer, other classes of Securities that may have been issued, from time to time by the DMTA Customer (the "Securities"). DMTA's appointment shall take effect upon receipt of a DMTA Customer Board resolution in a form acceptable to DMTA and upon DMTA's acceptance of its mandate as articulated in the DMTA Customer Board resolution. The Securities may be issued by the DMTA Customer subject to Regulation A, Regulation CF or Regulation D of the Securities Act of 1933. In some cases, in the event the parties agree, DMTA may act as sub-register for the Securities, whereas the register for certain other of the DMTA Customer's securities may be held by a different transfer agent. DMTA may also act as DMTA Customer's Dividend Distributing Agent, in the event the DMTA Customer confirms in writing such additional request (the "DMTA Services").

**2. DMTA Term & Termination**

Term

Notwithstanding anything to the contrary in any Agreement, the DMTA Services provided pursuant to this DMTA Agreement shall have a term of thirty-six (36) months ("DMTA Term"), commencing on the Effective Date, which DMTA Term shall automatically renew for successive three-year terms unless DMTA Customer provides written notice to DMTA at least sixty days (60) prior to the completion of the DMTA Term.

Termination

Notwithstanding anything to the contrary in this Agreement, the following termination provisions shall apply to DMTA Services:

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Early Termination.

In the event that DMTA Customer terminates this DMTA Agreement prior to the end of the DMTA Term ("Early Termination"), DMTA Customer shall pay the DMTA a break fee ("Break Fee.") The Break Fee shall be equivalent to the remaining fees due for the balance of the DMTA Term, pursuant to this DMTA Agreement, calculated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) Months remaining in the DMTA Term shall be equivalent to the DMTA Term minus the number of months of the DMTA Term expired up to the Early Termination date requested by DMTA Customer ("Months Remaining");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) Months Remaining multiplied by record maintenance fees (pro-rated monthly) plus Months Remaining multiplied by the Shareholder Services Management Portal Monthly Fee.

This DMTA Agreement may be terminated by DMTA (i) if the DMTA Customer is in breach of this Agreement and does not remedy such breach within sixty (60) days notice, in writing, or (ii) upon ninety (90) days' notice, in writing, being given to DMTA Customer.

This DMTA Agreement may be terminated by either the DMTA Customer or DMTA immediately upon notification or written confirmation of any bankruptcy, receivership, or dissolution of either party.

Within thirty (30) days of the termination of this DMTA Agreement and provided that the DMTA Customer is in compliance with all of the terms of this Agreement, DMTA shall deliver over to the DMTA Customer (or to such third party as the DMTA Customer otherwise requests) the Registers, share certificates and any other documents connected with the business of the DMTA Customer as reasonably requested.

**3. Status of DMTA**

DMTA is a stock transfer agent registered with the Securities and Exchange Commission. DMTA will not custody, hold, manage, possess or otherwise handle securities. DMTA is not providing escrow services to DMTA Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. DMTA Customer's Securities and Appointment of DMTA

"Securities", as used in this Agreement shall mean the equity, debt and revenue share securities, including any warrants and options, of DMTA Customer issued. DMTA Customer affirms, represents and warrants that it has provided to DMTA all applicable data concerning its Securities to be covered by this Agreement and associated holder positions.

DMTA Customer hereby certifies that it has taken such action required to appoint DMTA to provide the services set out in this Agreement, which action shall remain valid so long as this Agreement is in force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. Management of Holders Registers, Records and Transfer of Securities

DMTA shall keep and maintain an electronic register of holders and register of transfers of Securities. Subject to any laws and government regulations in force from time to time and to any general or particular instructions as may from time to time be given to it by the DMTA Customer, and subject to any other written agreement applicable to DMTA from time to time, DMTA shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. make such entries from time to time in the Register as are necessary in order that the accounts of each holder of Securities be properly and accurately kept and transfers of Securities properly recorded;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.2. record on the Register the particulars of all transfers of Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. furnish to the DMTA Customer, upon the reasonable request and at the expense of the DMTA Customer, such statements, lists, entries, information and material, concerning transfers and other matters, as are maintained or prepared by it pursuant hereto; and

shall be the sole person authorized to add, modify or remove Securities from the Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.3. Share Certificates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Securities issued following the date hereof shall be held in "book entry" form only. "Book entry" means that ownership interests shall be recorded and kept only on the books and records of DMTA Customer (including, if applicable, in Direct Registration Statement form). No physical certificates shall be issued or received by DMTA. The Securities covered by this Agreement are not DTC eligible unless explicitly stated otherwise in the Order Form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The DMTA Customer hereby confirms that it has reviewed its articles/certificate of incorporation, by-laws and other governing documents and such documents allow for the issuance of book-based securities. The DMTA Customer acknowledges and agrees that upon receipt of written instructions from the DMTA Customer to the DMTA, DMTA may issue such book-based positions, as represented by DRS advice or otherwise, on all new share issuances and/or transfers. If a shareholder or its representative requests a change to a physical share certificate, DMTA shall convert said share certificate to book entry form and make the requested change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The DMTA Customer shall not issue any share certificate without such certificate being countersigned by DMTA in its capacity as Transfer Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. In the case of the loss, theft or destruction of any share certificate, before a replacement certificate will be issued, DMTA must receive:

&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. evidence satisfactory to DMTA of the loss, theft or destruction of such certificate; 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;b. a letter of indemnity from the shareholder and the DMTA Customer in a form acceptable to DMTA.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The DMTA Customer represents and warrants that all Securities to be covered by this Agreement that are issued and outstanding on the Effective Date are issued and outstanding as fully paid and non-assessable and that with respect to future allotments and issuances of Securities, DMTA shall be entitled to regard such Securities as fully paid and non-assessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. DMTA shall be entitled to treat as valid any shareholder data, share certificate or DRS position for Securities purporting to have been issued or prepared by or on behalf of the DMTA Customer prior to the Effective Date of this Agreement and the DMTA Customer shall indemnify and save harmless DMTA, its officers, directors, employees, successors, assigns and agents from any liability or claims that may be made against them by reason of DMTA treating any such shareholder data, certificate or DRS position as valid. DMTA is hereby expressly relieved from any duty or obligation to (a) correct incomplete shareholder data prepared on behalf of the DMTA Customer prior to the Effective Date of this Agreement; and (b) verify the signature or the authority to sign of the person or persons purporting to sign any such certificate on behalf of the DMTA Customer or on behalf of any other institution that was appointed the Transfer Agent of the Securities prior to the Effective Date.

 **4. Dividend Distribution Agent (if requested by DMTA Customer)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. In the event that DMTA Customer appoints DMTA as agent to distribute to holders of Securities dividends as may from time to time be declared by the board of directors of the DMTA Customer, DMTA agrees to accept such appointment subject to terms to be agreed upon by the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. DMTA Customer shall provide security holder information to DMTA in order for DMTA Customer to contact such holders and obtain the information necessary to make dividend payments or pay amounts owing under debt securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. If directed by DMTA Customer, DMTA may provide administrative reconciliation services for investor tax form completion but DMTA Customer is solely responsible for submitting required tax forms to the IRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. If DMTA Customer chooses to appoint DMTA as the Dividend Distribution Agent in accordance with this section, DMTA Customer acknowledges that DMTA is not the dividend distribution paying agent. DMTA shall disburse dividends in accordance herewith upon receiving written direction from the DMTA Customer and a certified copy of a resolution of the board of directors of the DMTA Customer declaring such dividends but all payments shall be made by DMTA Customer from DMTA Customer funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. At least one business day before the date on which such dividends are payable, the DMTA Customer shall deliver to DMTA by electronic transfer or certified cheque, funds sufficient to pay such dividends, or make such other arrangements for the provision of funds as may be agreeable between the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6. If any funds are received by DMTA in the form of uncertified cheques, DMTA shall be entitled to delay the time for release of such funds until such uncertified cheques shall be determined to have cleared the financial institution upon which the same are drawn.

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 **5. Other Services**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. DMTA shall perform such other services normally incident with the role of Transfer Agent and Registrar or Dividend Disbursing Agent, if applicable, as the DMTA Customer may request in writing from time to time for such fees as may be agreed to from time to time between the parties, in accordance with the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. DMTA may, in connection with the services described in this Agreement, engage, at DMTA's sole expense (unless agreed in writing by DMTA Customer), without notice, subcontractors, agents and service providers in its sole and absolute discretion. DMTA Customer agrees that DMTA is authorized to appoint such individuals and entities and do all other acts required to carry out the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. DMTA may be required to perform other work on behalf of the DMTA Customer with respect to new or existing industry regulations (for example, related to provincial Securities Acts, the U.S. Securities Exchange Act of 1934 ("1934 Act"), the Internal Revenue Code, state escheatment or unclaimed property legislation or other). DMTA is hereby authorized, at its discretion and at the expense of the DMTA Customer, where applicable, to perform such work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. The DMTA Customer hereby acknowledges and authorizes DMTA to use the DMTA Customer's online DealMaker Shareholder online portal to communicate with shareholders for the purpose of delivering the DMTA shareholder Services described herein, including but not limited to (i) uploading book entry statements and (2) responding to shareholder action requests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5. The DMTA Customer acknowledges and agrees that DMTA is not responsible for the escheatment of unclaimed property, including securities or funds issued and/or held by DMTA as a result of DMTA performing its services as Transfer Agent and Disbursing Agent ("Unclaimed Property"), which may be required under any state laws or the 1934 Act. DMTA's role is limited to completing two lost holder searches pursuant to SEC rule 17 Ad-17 ("Lost Holder Searches"). The DMTA Customer acknowledges that it is solely responsible for all obligations with respect to Unclaimed Property that is in the possession of DMTA at any time and agrees that DMTA does not offer escheatment services. DMTA shall have no responsibility to provide additional services regarding lost holder accounts for DMTA Customer's Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6. Notwithstanding the foregoing, in the event one or more shareholders is not responsive to the Lost Holder Searches, DMTA Customer may retain DMTA to conduct additional database searches to locate the shareholder, at the DMTA Customer's sole expense, in accordance with DMTA's then applicable fees ("Additional Searches"). DMTA Customer acknowledges that it remains solely responsible for all obligations with respect to Unclaimed Property even if DMTA is directed to conduct Additional Searches.

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 **6. Fees and Expenses**

This section applies only to the provision of DMTA Services and in the event of a conflict, supersedes any prior paragraphs concerning Fees contained in this Agreement:

6.1.The DMTA Customer shall pay the fees outlined on the Order Form for the services described therein. Fees are subject to revision by DMTA from time to time DMTA Customer shall reimburse DMTA for all costs and expenses incurred in connection herewith. Without limiting the generality of the foregoing and notwithstanding any other provision of this Agreement or of any fees, the DMTA Customer agrees to pay DMTA such additional compensation, costs and expenses as are agreed between the parties to be warranted by any additional time, effort and/or responsibility incurred or expended by DMTA in order to comply with any laws or regulations it may be subject to as Registrar, Transfer Agent or as dividend distribution disbursing agent, including, without limitation, unclaimed property legislation or future imposed regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. All DMTA Fees are incurred immediately at time of service and non-refundable. The DMTA Customer will be billed as set out in the Terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. All out of pocket costs and expense recoveries are payable in advance, unless otherwise agreed to in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. In the event that a corporate action or reorganization occurs, the DMTA Customer agrees to compensate DMTA at a rate based on the terms of the transaction and the duties required of DMTA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. In the event the DMTA Customer defaults in its payment obligations to DMTA ("Payment Default"), DMTA shall have the right, commencing thirty (30) days following written notification to the DMTA Customer of Payment Default and unless such Payment Default has been remedied, to immediately suspend service or terminate this Agreement, subject to DMTA's rights and recourses under this Agreement or applicable law.

 **7. DMTA Customer's Responsibility For Documents**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.1. The DMTA Customer agrees that it will promptly furnish to DMTA from time to time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.1.1. certified copies of all articles, any amendments thereto and all relevant By-laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.2. certified copies of all resolutions or other authorizing documents allotting or providing for the issuance of Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.3. a current list of the directors of the DMTA Customer upon any change to this information;

and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.4. that number of unissued Share certificates as is necessary for DMTA to perform its obligations hereunder from time to time

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. DMTA Customer agrees to direct its broker-dealer, as applicable, to share required onboarding documents with DMTA upon request.

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 **8. DMTA Customer's Responsibility For Signatories**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. The DMTA Customer shall deliver evidence of the appointment of its signatories as such evidence may be requested from time to time by DMTA. The DMTA Customer shall promptly advise DMTA, in writing, as to any changes in the authorized signatories and the directors of the DMTA Customer and DMTA shall not be charged with notice of any such change in authorized signatories unless and until such notice is provided in writing in accordance with the provisions herein with respect to Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. DMTA may act upon any email or certificate or other document believed by it to be genuine and to have been signed by the proper person or persons. DMTA may refuse to process any requested transfer or perform any other act requested of it if it is not satisfied as to the propriety of the request or the sufficiency of the evidence provided in support of such request.

 **9. Authorization To Act On Electronic Instructions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. The DMTA Customer hereby directs DMTA to accept and act upon directions including treasury directions sent to DMTA via e-mail or via communications initiated by DMTA Customer through the DMTA Customer's online portal licensed from DealMaker.tech.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. The DMTA Customer acknowledges that: E-mail is not a secure means of communication. Some of the risks of e-mail communications are that:

● someone could intercept, read, retransmit or alter a communication;

● e-mails can be lost, delivered late, or not received; and

● someone can send unauthorized e-mails that appear to emanate from a secure source.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. In reviewing directions received via email, DMTA shall rely upon the customary signature block of the individual authorized to sign for the DMTA Customer, as provided by the DMTA Customer, from time to time. In reviewing direction received via DMTA Customer's deal portal, DMTA shall rely upon the user credentials customarily associated with the DMTA Customer's account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4. DMTA shall be entitled to act upon any direction received via e-mail or DealMaker.tech that DMTA believes to be genuine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5. DMTA retains the right, at all times, to refuse to process any direction where DMTA questions the legitimacy of the direction. Where DMTA questions the legitimacy of a direction, DMTA shall make a good faith effort to promptly confirm the legitimacy of the direction, which may include requesting an originally signed direction. DMTA shall not be liable to the DMTA Customer or any party for any losses caused by DMTA's refusal to act on a direction that DMTA is not able to confirm to be legitimate.

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 **10. DMTA's Reservation Of Rights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. DMTA shall not incur any liability in refusing in good faith to affect any transfer which in its judgment is improper or unauthorized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.2. DMTA shall retain all rights and be entitled to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.1. refuse to act, and shall not be liable for refusing to act, unless it has received clear instructions and/or documentation and sufficient time to give effect to such instructions and/or documentation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.2. refuse the transfer of any Securities until such time as DMTA is satisfied, acting reasonably, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.2.2.1. the share certificate, if applicable, presented to DMTA is valid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.2.2. the endorsement on the Share Certificate or DRS statement or appended stock power of attorney, as applicable, is genuine; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.2.2.3. the transfer requested is properly and legally authorized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.3. treat as valid any shareholder data or share certificate purporting to have been issued by or on behalf of the DMTA Customer prior to the date of this Agreement, as set out in section above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.4. not transfer any Security if such Security is subject to any restriction or prohibition on transfer, and DMTA shall not be liable to DMTA Customer or any other party for refusing toaffect any such transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.5. refuse to act, and shall not be liable for refusing to act if, due to a lack of information or for any other reason whatsoever, DMTA, in its sole judgment, determines that such act might cause it to be in non-compliance with any applicable anti-money laundering or anti-terrorist legislation, regulation or guideline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.5.1. Further, should DMTA, in its sole judgment, determine at any time that its acting under this Agreement has resulted in its being in non-compliance with any applicable anti-money laundering or anti-terrorist legislation, regulation or guideline, then DMTA shall have the right to resign on 10 days' written notice to the DMTA Customer, provided that (i) DMTA's written notice shall describe the circumstances of such non-compliance; and (ii) if such circumstances are rectified to DMTA's satisfaction within such 10 day period, then such resignation shall not be effective; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3. DMTA shall be under no obligation to prosecute or defend any action or suit in respect of its agency relationship under this Agreement but will do so at the request of the DMTA Customer, provided that the DMTA Customer furnishes indemnity and funding satisfactory to DMTA, acting reasonably, against any liability, cost or expense which might be incurred.

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 **11. Legal Advice**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. DMTA is hereby authorized, at its discretion and at the expense of the DMTA Customer to refer all documents or requests relating to any transfers or any other matters contemplated by this Agreement or requested to be performed pursuant to this Agreement to the DMTA Customer's or DMTA's legal counsel for advice, and DMTA shall be entitled but not required to rely on such advice. DMTA will, in all cases, endeavor to consult with the DMTA Customer prior to engaging outside counsel, unless as otherwise required by a regulatory body.

 **12. Data Access By Third Parties**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. DMTA Customer agrees that inspection of Securities records and Registers on the systems of DMTA may be subject to the inspection rights of securities regulatory authorities including the Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. For this purpose, DMTA is hereby authorized to make Securities and holder Register data available to industry third-party systems, both directly and via an integrated API, including but not limited to DMTAs and securities exchanges, to enable them to obtain information about the DMTA Customer's Securities, payment history of Securities, confirmations of holders' ownership positions, among others.

 **13. Warranties and Disclaimer**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1. Mutual Warranties: Each party to this Agreement represents to the other that (i) it has the right and authority to enter into this Agreement and to perform all of its respective obligations; (ii) the Agreement has been duly executed and delivered and constituted a valid, binding agreement enforceable in accordance with its terms; (iii) no other person is required to authorize the party's execution, delivery or performance of the Agreement; and (iv) execution, delivery and performance of this Agreement does not violate the terms or conditions of any other agreement to which it is a party or by which it is otherwise bound.

 **14. Warranties By DMTA Customer**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1. DMTA Customer warrants and represents to DMTA that it will provide complete and accurate information and records with respect to the Securities, the holders thereof and the restrictions applicable to transfer of the Securities (including the dates that any such restrictions are no longer applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 In the event of a breach of any of the DMTA Customer's warranties or responsibilities herein, DMTA will have the right at its sole discretion to suspend DMTA Services if deemed necessary by DMTA to prevent or eliminate difficulties in the provision of DMTA Services pursuant to this Agreement or to prevent potential litigation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3. Disclaimer By DMTA: Except as expressly set forth in this Agreement, DMTA makes no representation or warranty or any kind whether express, implied, or statutory.

**15. Limitation of Liability**

This section applies only to the provision of DMTA Services and in the event of a conflict, supersedes any prior paragraphs concerning LImitation of Liability contained in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1. Limits On Damages. DMTA shall not be liable for any action taken or omitted to be taken by DMTA under or in connection with this Agreement, except for losses caused principally and directly by DMTA's gross negligence, fraud, bad faith or willful misconduct. Notwithstanding any other provision in this Agreement, DMTA shall not, under any circumstances, be liable to DMTA Customer for special, indirect, incidental, consequential, exemplary, aggravated or punitive damages arising out of or related to the transactions contemplated under this Agreement, including but not limited to lost profits, loss of business or holder claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2. Cap on LIability. Notwithstanding any other provision of this Agreement, DMTA Customer agrees that DMTA's total liability arising out of or related to this Agreement, regardless of whether the action or claim is based on contract, tort, warranty or otherwise, shall be limited to the amount of fees paid by the DMTA Customer to DMTA in the twelve (12) months immediately preceding the first receipt by DMTA of notice of the claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3. Notwithstanding and without limitation of any other provision of this Agreement, and notwithstanding whether such losses or damages are foreseeable or unforeseeable, DMTA and each Indemnified Party shall not be liable under any circumstances whatsoever for any breach by any other person, which term includes corporations, partnerships, trusts or other entities, of securities laws or other rule of any securities regulatory authority, for lost profits or for special, indirect, incidental, consequential, exemplary, aggravated or punitive losses or damages. DMTA Customer agrees that its liability hereunder shall be absolute and unconditional, regardless of the correctness of any representations of any third parties and regardless of any liability of third parties to any of the Indemnified Parties and shall accrue and become enforceable without prior demand or any other precedent action or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4. For so long as the DMTA Customer is a client of DMTA, the DMTA Customer undertakes to advise DMTA in writing as soon as reasonably practicable in the event that the DMTA Customer becomes, or ceases to be, a reporting DMTA Customer with the United States Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5. The provisions of this section shall survive the resignation or removal of DMTA and the termination of this Agreement.

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 **16. Miscellaneous**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1. No Implied License. DMTA Customer has no right, title or interest in the technology used and the DMTA Services or by third parties engaged by the DMTA. This Agreement is not intended and will not be construed to confer upon either party any license rights to any patent, trademark, copyright, or other intellectual property rights of either party hereto or any other rights of any kind not specifically conferred in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2. No Underwriting. DMTA Customer agrees that DMTA is not acting as an underwriter of any Securities offering, nor as a broker or dealer on any Securities transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3. No Investment Advice. DMTA Customer agrees that DMTA is not providing investment advice, does not make any Securities recommendation, and does not solicit the offer or sale of Securities to any investor or DMTA Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4. No Legal or Accounting Advice. DMTA Customer agrees that DMTA does not provide any legal or accounting advice, including but not limited to legal advice or recommendations with respect to the vesting, conversion or expiry of any securities (collectively "Conversion Events"). DMTA Customer shall rely solely on its own professional advisors as it deems appropriate to do so, including but not limited to matters in relation to Conversion Events. DMTA reserves the right to seek legal advice as needed and in its sole discretion, as set out in this Agreement.

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## Ex1A-11

**Exhibit 11.1**

![](tm2528799d1_ex11-1img001.jpg)

**CONSENT OF INDEPENDENT PUBLIC ACCOUNTING FIRM**

October 29, 2025

To the Board of Directors of Immersed Inc.,

We hereby consent to the inclusion of our Auditors' Report, dated February 14, 2025, on the financial statements of Immersed Inc. – which comprise the balance sheet as of December 31, 2024 and December 31, 2023, and the related statements of income, changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements— in the Company's Form 1-A. We also consent to the inclusion of our Financial Review Report, dated October 14, 2025, on the interim financial statements of Immersed Inc. – which comprise the balance sheet as of June 30, 2025, and the related statements of income, changes in stockholders' equity, and cash flows for the interim six month period then ended, and the related notes to the financial statements— in the Company's Form 1-A.

We also consent to application of such report to the financial information in the Report on Form 1-A, when such financial information is read in conjunction with the financial statements referred to in our report.

Best,

/s/ Alice.CPA LLC

Alice.CPA LLC

Robbinsville, New Jersey

October 29, 2025

![](tm2528799d1_ex11-1img002.jpg)

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM 1-A

### REGULATION A OFFERING STATEMENT
### UNDER THE SECURITIES ACT OF 1933

### Item 1. Issuer Information

**Exact name of issuer:** Immersed Inc.

**Jurisdiction of Incorporation/Organization:** DE

**Year of Incorporation:** 2017

**CIK:** 0001817417

**I.R.S. Employer Identification Number:** 81-5011777

**Primary Standard Industrial Classification Code:** 3577

**Total number of full-time employees:** 15

**Total number of part-time employees:** 12

**Address of Principal Executive Offices:** 106 E. 6th St. STE 900-202, —, AUSTIN, TX 78701

**Company Phone:** 512-649-5589

**Person to contact:** Rebecca DiStefano

### Financial Statements

**Balance Sheet Information**

| Metric                                   | Amount        |
|:---|:---|
| Cash and Cash Equivalents                | $372374.00    |
| Investment Securities                    | $0.00         |
| Accounts and Notes Receivable            | $2540.00      |
| Property, Plant and Equipment (PP&E)     | $30831.00     |
| Total Assets                             | $653026.00    |
| Accounts Payable and Accrued Liabilities | $6361824.00   |
| Long-Term Debt                           | $6533466.00   |
| Total Liabilities                        | $16439541.00  |
| Total Stockholders' Equity               | $-15786515.00 |
| Total Liabilities and Equity             | $653026.00    |

**Statement of Comprehensive Income Information**

| Metric                                    | Amount       |
|:---|:---|
| Total Revenues                            | $493936.00   |
| Costs and Expenses Applicable to Revenues | $56779.00    |
| Depreciation and Amortization             | $18767.00    |
| Net Income                                | $-1876218.00 |
| Earnings Per Share - Basic                | -0.32        |
| Earnings Per Share - Diluted              | -0.32        |

**Auditor Information**

| Metric          | Amount    |
|:---|:---|
| Name of Auditor | Alice CPA |

### Outstanding Securities

| Class                    |   Outstanding | CUSIP     | Publicly Traded   |
|:---|---:|:---|:---|
| Common Stock             |       5821712 | 000000N/A | N/A               |
| Series 1 Preferred Stock |       8315264 | 000000N/A | N/A               |
| Convertible Notes        |       6654034 | 000000N/A | N/A               |

### Item 2. Issuer Eligibility
- [x] The issuer certifies that all of the statements in this part are true.

### Item 3. Application of Rule 262
- [x] The issuer certifies that it is not disqualified and has not been involved in any disqualifying event.

### Item 4. Summary Information Regarding the Offering

**Tier:** Tier2

**Financial Statement Status:** Audited

**Type of Securities Offered:** Equity (common or preferred stock)

**Is this a delayed or continuous offering?** Yes

**Was or is the offering to take place within one year after qualification?** Yes

**Was or is the offering to commence within two days after qualification?** No

**Is this a best efforts offering?** Yes

**Was there any solicitation of interest?** No

**Are there any resale securities by affiliates of the issuer?** Yes

**Offering Amounts**

| Description                                                     | Amount       |
|:---|:---|
| Number of securities offered                                    | 2207104      |
| Number of securities outstanding                                | 5821712      |
| Price per security                                              | $11.91       |
| Issuer's aggregate offering price                               | $22685703.51 |
| Aggregate offering price of securities held by security holders | $3600905.13  |
| Aggregate price of securities offered concurrently              | $0.00        |
| Total aggregate offering price                                  | $26286608.64 |

**Anticipated Fees**

| Service Provider   | Name                    | Fees       |
|:---|:---|:---|
| Auditor            | Alice CPA               | $33000.00  |
| Legal              | Greenberg Traurig, P.A. | $150000.00 |
| Promoters          |  |  |

**Estimated Net Proceeds to the Issuer:** $20836148.97

### Item 5. Jurisdictions in Which Securities are to be Offered

AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY, DC, PR, A0, A1, A2, A3, A4, A5, A6, A7, A8, A9, B0, Z4

### Item 6. Unregistered Securities Issued or Sold Within One Year

**Name of Such Issuer:** Immersed Inc.

**Title of Securities Issued:** Convertible Promissory Notes

**Total Amount of Securities Issued:** 44140

**Amount of such securities sold by principal security holders:** 0

**Aggregate consideration:** $44,140 in gross proceeds sold, subject to final accounting.

**Basis for aggregate consideration:** —

**Securities Act Exemption:** Section 4(a)(2), Regulation D, Rule 506(b), Rule 506(c), Reg. CF, Section 4(a)(6).