# EDGAR Filing Document

**Accession Number:** 0002050338
**File Stem:** 0001213900-26-060720
**Filing Date:** 2026-5
**Character Count:** 891384
**Document Hash:** 74a57a55113789347aeab527d2035f99
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-060720.hdr.sgml**: 20260526

**ACCESSION NUMBER**: 0001213900-26-060720

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

**PUBLIC DOCUMENT COUNT**: 73

**FILED AS OF DATE**: 20260526

**DATE AS OF CHANGE**: 20260522

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Collab Z Inc.
- **CENTRAL INDEX KEY:** 0002050338
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE [6500]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 993072058
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** S-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-293881
- **FILM NUMBER:** 261015639

**BUSINESS ADDRESS:**
- **STREET 1:** 29 ORINDA WAY, #536
- **CITY:** ORINDA
- **STATE:** CA
- **ZIP:** 94563
- **BUSINESS PHONE:** 925-577-9068

**MAIL ADDRESS:**
- **STREET 1:** 29 ORINDA WAY, #536
- **CITY:** ORINDA
- **STATE:** CA
- **ZIP:** 94563

?xml version='1.0' encoding='ASCII'? clbz-20260331

**As filed with the Securities and Exchange Commission on May 22, 2026.**

**Registration No. 333-293881**

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

**AMENDMENT NO. 1**

**TO**

FORM S-1

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

COLLAB Z INC.

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| Nevada | 6500 | 99-3072058 |
| (State or other jurisdiction of<br> incorporation or organization) | (Primary Standard Industrial<br> Classification Code Number) | (I.R.S. Employer<br> Identification Number) |

---

29 Orinda Way, Unit 2060

Orinda, California 94563

Tel: (341) 202-5530

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

Qiaojun Lai

29 Orinda Way, Unit 2060

Orinda, California 94563

Tel: (341) 202-5530

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

---

| | | |
|:---|:---|:---|
| **Ross D. Carmel, Esq.**<br> **Matt Siracusa, Esq.**<br> **Sichenzia Ross Ference Carmel LLP<br> 1185 Avenue of the Americas, 26<sup>th</sup> Floor**<br> **New York, NY 10036**<br> **Telephone: (212) 930-9700** | **Henry Yin, Esq.**<br> **Loeb & Loeb LLP**<br> **2206-19 Jardine House**<br> **1 Connaught Place**<br> **Central, Hong Kong SAR852-3923-1111** | **Hermione Krumm, Esq.**<br> **Loeb & Loeb LLP**<br> **345 Park Avenue**<br> **New York, NY 10154**<br> **(212) 407-4000** |

---

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

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

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

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

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

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

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| | |
|:---|:---|
| Large accelerated filer ☐ | Accelerated filer ☐ |
| Non-accelerated filer ☒ | Smaller reporting company ☒ |
|  | Emerging growth company ☒ |

---

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

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

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

---

| | | |
|:---|:---|:---|
| PRELIMINARY PROSPECTUS | SUBJECT TO COMPLETION | DATED MAY 22, 2026 |

---

![](ea029126101_img1.jpg)

**COLLAB Z INC.**

**5,000,000 Shares of Common Stock**

This is an initial public offering of 5,000,000 shares of our common stock, par value $0.001 per share. We currently expect the initial public offering price to be $4.00 per share. Before this offering, there has been no public market for shares of our common stock. We have applied to have the shares of common stock listed on The Nasdaq Capital Market, or Nasdaq, under the symbol "CLBZ." If shares of our common stock are not approved for listing on Nasdaq, we will not consummate this offering. No assurance can be given that our application will be approved.

The Company currently has 5,000 shares of Series X Preferred Stock, par value $0.001 per share (the "Series X Preferred Stock") issued and outstanding, all of which are owned by YRQ Irrevocable Trust ("YRQ Trust"). Each share of Series X Preferred Stock is entitled to 1,000 votes on all matters on which our common stock is entitled to vote, except as otherwise prohibited by law. Other than the Series X Preferred Stock's voting rights, the Series X Preferred Stock is not entitled to any rights which would supersede the rights of our common stockholders. As a result of YRQ Trust's ownership of 5,000 shares of Series X Preferred Stock, YRQ Trust is entitled to an aggregate of 5 million votes on all matters our common stock is entitled to vote on except as otherwise prohibited by law or as otherwise prohibited by the rules and regulations of any exchange on which the Company's common stock is listed, or shall be listed. The trustees and beneficiaries of YRQ Trust are immediate family members of our founder and former Chairman, Mr. Qian Wang. Mr. Qian Wang, directly and indirectly, through his related entities and entities controlled by immediate family members, including YRQ Trust (collectively, the "Controlling Group"), will hold significant voting power of our common stock upon the closing of this offering. Although the Controlling Group will not hold more than 50% of the total voting power of our capital stock upon the closing of this offering, and we will therefore not be a "controlled company" under the corporate governance rules of Nasdaq, the Controlling Group will nonetheless hold substantial influence over matters requiring stockholder approval.

We are an emerging growth company under the federal securities laws and as such, we have elected to take advantage of certain reduced public company reporting requirements for this prospectus and future filings. See "*Prospectus Summary—Implications of Being an Emerging Growth Company*" for additional information.

Investing in our securities involves a high degree of risk. See "*Risk Factors*" beginning on page 13 of this prospectus for a discussion of information that should be considered in connection with an investment in our securities.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

---

| | | |
|:---|:---|:---|
|  | **Per<br> Share** | **Total** |
| Initial public offering price | $| $|
| Underwriting discounts and commissions <sup>(1)</sup> | $| $|
| Proceeds, before expenses, to us <sup>(2)</sup> | $| $|

---

<sup>(1)</sup> Represents underwriting discounts equal to seven percent (7.0%) per share (or $[●] per share), which is the underwriting discounts we have agreed to pay on investors in this offering introduced by the underwriters. We have also agreed to provide the representatives of the underwriters (the "Representatives") a non-accountable expense allowance equal to 1.0% of the gross proceeds of this offering. See "*Underwriting*" for additional information regarding compensation payable to the underwriters.

<sup>(2)</sup> The amount of offering proceeds to us presented in this table does not give effect to the exercise of the over-allotment option issued to the underwriters.

This offering is being conducted on a firm commitment basis. The underwriters are obligated to take and purchase all of the shares of common stock offered under this prospectus if any such shares are taken.

We have granted a 45-day option to the underwriters to purchase up to 750,000 additional shares of common stock, representing 15% of the shares of common stock sold in this offering, solely to cover over-allotments, if any. If the underwriters exercise the option in full, the total proceeds to us, less underwriting discounts, commissions and non-accountable expenses payable, will be $20.66 million, based on an assumed public offering price of $4.00 per share.

Delivery of the shares of common stock is expected to be made on or about&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026.

*Co-Managers*

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| | |
|:---|:---|
| &nbsp;&nbsp;![](ea029126101_img2.jpg) | &nbsp;&nbsp; **WESTPARK CAPITAL**<br>卫 澎 资 本<br>|

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**The date of this prospectus is&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026**.

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | Page |
| [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS](#a_001) | ii |
| [PROSPECTUS SUMMARY](#a_002) | 1 |
| [RISK FACTORS](#a_003) | 13 |
| [USE OF PROCEEDS](#a_004) | 39 |
| [DIVIDENDS AND DIVIDEND POLICY](#a_005) | 39 |
| [CAPITALIZATION](#a_006) | 40 |
| [DILUTION](#a_007) | 42 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#a_008) | 44 |
| [BUSINESS](#a_009) | 57 |
| [MANAGEMENT](#a_010) | 70 |
| [EXECUTIVE COMPENSATION](#a_011) | 76 |
| [CURRENT RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#a_012) | 77 |
| [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT](#a_013) | 86 |
| [DESCRIPTION OF SECURITIES](#a_014) | 88 |
| [SHARES ELIGIBLE FOR FUTURE SALE](#a_015) | 93 |
| [MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS](#a_016) | 95 |
| [UNDERWRITING](#a_017) | 99 |
| [LEGAL MATTERS](#a_018) | 105 |
| [INTERESTS OF NAMED EXPERTS AND COUNSEL](#a_050) | 105 |
| [EXPERTS](#a_019) | 105 |
| [WHERE YOU CAN FIND MORE INFORMATION](#a_020) | 105 |
| [FINANCIAL STATEMENTS](#a_021) | F-1 |

---

You should rely only on the information contained in this prospectus. We and the underwriters have not authorized anyone to provide you with additional information or information different from that contained in this prospectus. We are not making an offer of these securities in any state or other jurisdiction where the offer is not permitted. The information in this prospectus may only be accurate as of the date on the front of this prospectus regardless of the time of delivery of this prospectus or any sale of our securities.

No person is authorized in connection with this prospectus to give any information or to make any representations about us, our common stock hereby or any matter discussed in this prospectus, other than the information and representations contained in this prospectus. If any other information or representation is given or made, such information or representation may not be relied upon as having been authorized by us. This prospectus does not constitute an offer to sell, or a solicitation of an offer to buy our securities in any circumstance under which the offer or solicitation is unlawful. Neither the delivery of this prospectus nor any distribution of our securities in accordance with this prospectus shall, under any circumstances, imply that there has been no change in our affairs since the date of this prospectus.

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

Unless otherwise indicated, information in this prospectus concerning economic conditions, our industries, and our markets is based on a variety of sources, including information from third-party industry analysts and publications and our estimates and research. This information involves a number of assumptions, estimates, and limitations. The industry publications, surveys and forecasts, and other public information generally indicate or suggest that their information has been obtained from sources believed to be reliable. None of the third-party industry publications used in this prospectus were prepared on our behalf. The industries in which we operate are subject to a high degree of uncertainty and risk due to a variety of factors, including those described in "*Risk Factors*" in this prospectus. These and other factors could cause results to differ materially from those expressed in these publications.

i

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This prospectus contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to us. All statements other than statements of historical facts are forward-looking statements. The forward-looking statements are contained principally in, but not limited to, the sections entitled "*Prospectus Summary*," "*Risk Factors*," "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" and "*Business*." These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements include, but are not limited to, statements about:

● the effect of and uncertainties related the ongoing volatility in interest rates;

● our ability to achieve and maintain profitability in the future;

● the impact on our business of the regulatory environment and complexities with compliance related to such environment;

● our ability to respond to general economic conditions;

● our ability to manage our growth effectively and our expectations regarding the development and expansion of our business;

● our ability to access sources of capital, including debt financing and other sources of capital to finance operations and growth;

● our ability to grow market share in existing markets or any new markets we may enter;

● our ability to develop new products, features and functionality that are competitive and meet market needs;

● our ability to realize the benefits of our strategy, including our financial services and platform productivity;

● our ability to make accurate credit and pricing decisions or effectively forecast our loss rates;

● our ability to establish and maintain an effective system of internal controls over financial reporting;

● our ability to maintain the listing of our securities on Nasdaq;

● sales of our common stock by us or our stockholders, which may result in increased volatility in our stock price;

● the outcome of any legal or governmental proceedings that may be instituted against us; and

● other factors detailed under the section titled "*Risk Factors*."

In some cases, you can identify forward-looking statements by terms such as "may," "could," "will," "should," "would," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," "project" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under the heading "*Risk Factors*" and elsewhere in this prospectus. If one or more of these risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance.

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

ii

MARKET DATA

The market data and certain other statistical information used throughout this prospectus are based on independent industry publications, governmental publications, reports by market research firms or other independent sources that we believe to be reliable sources. Industry publications and third-party research, surveys and studies generally indicate that their information has been obtained from sources believed to be reliable, although they do not guarantee the accuracy or completeness of such information. We are responsible for all of the disclosures contained in this prospectus, and we believe these industry publications and third-party research, surveys and studies are reliable. While we are not aware of any misstatements regarding any third-party information presented in this prospectus, their estimates, in particular, as they relate to projections, involve numerous assumptions, are subject to risks and uncertainties, and are subject to change based on various factors, including those discussed under the section entitled "Risk Factors" and elsewhere in this prospectus. Some data are also based on our good faith estimates.

iii

TRADEMARKS

We own or have rights to various trademarks, service marks and trade names that we use in connection with the operation of our business. This prospectus may also contain trademarks, service marks and trade names of third parties, which are the property of their respective owners. Our use or display of third parties' trademarks, service marks and trade names or products in this prospectus is not intended to, and does not imply a relationship with, or endorsement or sponsorship by, us. Solely for convenience, the trademarks, service marks and trade names referred to in this prospectus may appear without the®,™ or <sup>SM</sup> symbols, but the omission of such references is not intended to indicate, in any way, that we will assert, to the fullest extent under applicable law, our rights or the right of the applicable owner of these trademarks, service marks and trade names.

iv

PROSPECTUS SUMMARY

 

*This summary highlights selected information contained in other parts of this prospectus. Because it is a summary, it does not contain all of the information that you should consider before investing in shares of our common stock and it is qualified in its entirety by, and should be read in conjunction with, the more detailed information appearing elsewhere in this prospectus. You should read the entire prospectus carefully, especially "Risk Factors," "Special Note Regarding Forward-Looking Statements," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our financial statements and the related notes, before deciding to invest in shares of our common stock. Unless the context requires otherwise, the words "we," "us," "our," "Company" and "Collab Z" refer collectively to Collab Z Inc., a Nevada corporation, and its affiliated entities.* 

 

Overview

Collab Z Inc., through its subsidiary, Collab CA LLC, has developed its pioneering Collab Platform, which it believes is a first-of-its-kind Community-Based Property Management model that is designed to replace traditional property management practice by enabling community involvement and by leveraging modern technology, including artificial intelligence features currently under development. Our approach actively involves tenants and other skilled community members in the management process, handling leasing and daily operations in a way that minimizes conflicts of interest and improves tenant satisfaction. With a five-year lead over new market entrants to our knowledge, and the ability to scale quickly without local staffing, Collab Z uniquely positions itself against both traditional property management firms and SaaS-based property technology ("PropTech") competitors.

Our mission is to democratize property management and to foster a more engaged community of tenants, property owners, and professional service providers to maximize asset value and to create a sustainable, decentralized organization that benefits all stakeholders involved.

Our vision is to revolutionize the real estate sector by maximizing community engagement in their living and working spaces for an autonomous and collaborative living experience.

We are committed to innovation, focusing on delivering substantial long-term value to our shareholders and improving the quality of life for our property owners, tenants, Community Pros ("CPs"), and professional service providers. As we expand, our Collab Platform will continue to lead the shift towards a more connected and engaged property management ecosystem.

The Current Industry Challenges, Our Solution, and Our Opportunity

The Challenge

The property management industry faces longstanding inefficiencies and high costs due to outdated value chain structures. Collab Z has identified key pain points and opportunities for transformation:

1. Inefficiency in Traditional Models: Legacy property management structures are bloated with excessive layers of human oversight and reliance on third-party service providers. This increases management costs, creates long lead times, reduces transparency, and often results in misaligned interests between stakeholders.

2. Low Tenant Satisfaction: Traditional systems overlook the potential contributions of tenants who are willing to assist with routine tasks, such as communications, minor repairs, maintenance requests, and leasing coordination. This underutilization contributes to lower tenant satisfaction, higher turnover rates, and poorly maintained properties.

3. Scalability Challenges: Traditional models struggle to scale across multiple properties and regions due to their dependence on local staffing and manual processes. This increases operational complexity and limits growth opportunities.

4. Lag in Technology Adoption: Compared to other industries, property management has been slow to adopt disruptive technologies that could overhaul outdated operational models. This presents a significant opportunity for innovation.

Our Solution

Collab Z has developed its Collab Platform, a community-based property management solution that directly connects tenants with property management tasks, offering them financial incentives to contribute to their living environment and foster stronger community connections. In addition, Collab Z is currently developing an AI-enhanced, community-based property management platform, CollabAPP, designed to fundamentally transform traditional property management processes. AI-enhanced features for CollabAPP are currently under development, with phased launches planned over an 18-month period which started in early 2025. See "*Business - Principal Products and Services*" for a more detailed discussion on the development of CollabAPP.

Based on our data, in comparing our model to the traditional model, our model enhances occupancy rate, eliminates unnecessary management layers, reduces operating expenses, and improves tenant satisfaction by delivering responsive services through CPs and professional service providers. Also, the Collab Platform enables faster entry into new markets without building local teams.

As part of this model, CPs are tenants who assist with property management tasks, such as leasing showings, minor repairs, administrative work, and customer support in exchange for financial incentives.

For repair and maintenance tasks requiring specialized expertise, professional service providers (licensed contractors such as HVAC, plumbing, and electrical repair specialists) handle the work.

CPs play a coordination and communication role, similar to property managers, contacting professional service providers, scheduling service appointments, and ensuring that repairs are completed as expected in a timely manner.

Our Opportunity

According to IBIS World, a leading global industry research and market analysis firm, the property management industry reached $128.3 billion in revenue by the end of 2024, growing at a CAGR of 2.0%. As the first community-based property management solution to our knowledge, Collab Z is positioned to revolutionize this massive market.

With over 300,000 property management companies and 20 million rental properties in the U.S. (Sources: Truelist, February 2024; Rubyhome, August 2023), the opportunity for disruption is immense. The Collab Platform is designed to:

● Streamline operations

● Enhance tenant engagement

● Maximize property value

By applying a community-driven model and planning the integration of AI-powered features currently under development, Collab Z addresses longstanding inefficiencies while scaling across the nation's extensive rental property network.

Business Model

As the company grows its property management portfolio and enters new markets, these efforts serve as a bridge between the company's current business model and its future business model, which prioritizes scalability, efficiency, and community engagement through the Collab Platform.

Current Business Model

The current business model reflects Collab Z's foundational operations, encompassing Property Management Services, Development and Construction Management Businesses, Procurement Services, Renovation Management, and EB-5 Immigration Investor Services.

1. Property Management Services

Collab Z operates as a full-service property management provider, engaging the tenants to manage the day-to-day operations of rental properties. This includes leasing, vendor coordination, and property maintenance.

Leasing Process:

● Tenant-Led Property Showings: Tenants actively participate in the leasing process by hosting property tours for prospective tenants. Their participation is tracked on the Collab Platform, and they are compensated accordingly, promoting active involvement and accountability.

Vendor Coordination:

● Tenant-Initiated Vendor Engagement: Tenants play a coordination role, similar to property managers, contacting professional service providers, scheduling service appointments, and ensuring that repairs are completed in a timely manner.

Property Maintenance Services:

● Task Claiming & Execution: Tenants can claim and complete repair & maintenance tasks such as minor maintenance requests, cleaning of common areas, and handling of packages.

● Automated Compensation: The platform ensures that tenants are promptly compensated for their services, with instant payments processed for completed tasks, fostering a culture of efficiency and fairness.

This innovative approach utilizes the Collab Platform and integrates tenants as CPs, transforming traditional management structures into a decentralized, tenant-driven system that enhances efficiency and cost-effectiveness.

Revenue is generated through a fixed percentage of monthly lease income, fees for managing property-related expenses like repairs and maintenance, and commissions on new lease agreements. Certain properties also feature a profit-sharing model, where Collab Z earns a share of the rental income above guaranteed thresholds.

2. Development and Construction Management

The Company oversees development and construction projects, ensuring timely completion within budget. These services contribute to property value enhancement, with development fees recognized monthly over the service period. Collab utilizes its extensive industry experience and resources to provide comprehensive professional services to multifamily developers, particularly in markets where it has a well-established presence.

Since early 2022, Collab Z has been engaged in the construction management of a new development at 1773 Oxford Street, Berkeley, California. This project is a 5-story, 24-unit student housing property with 81 beds, with a total estimated development cost of $20.5 million. Construction commenced in October 2022 and was completed in May 2025. In this role, Collab Z provides multiple services:

● Design Consulting: Collab advises on unit types, furniture layouts, public areas, building material selections, and amenities to ensure they align with leasing and operational strategies, utilizing insights from tenant community user studies.

● Procurement Consulting: Collab assists with sourcing and importing building materials from international markets, such as China and Malaysia, achieving significant cost reductions averaging 45%.

● Pre-Operating Consulting: Services include rental pricing recommendations, leasing preparations, pre-leasing marketing, and operational license applications, often leveraging Collab's extensive community resources.

Further expanding its portfolio, Collab Z began providing similar consulting services on January 1, 2025, for another significant project located at 2425 Durant Avenue, Berkeley, California. Planned as a 20-story student housing building with 169 units and 513 beds, this project covers 145,920 square feet and is currently in the entitlement process, with an anticipated completion date of August 2030.

Material Terms of Agreements and Related Risks:

● For both projects, Collab's base fees are structured to be paid either monthly or upon completion of specific services.

● There are provisions allowing Collab to terminate the agreements if fees remain unpaid for more than 30 days.

● Performance-based bonuses are subject to the discretion of the developers and owners, posing a risk of non-full payment if the bonus exceeds initial calculations.

● As a consultant during the development phase, Collab does not bear responsibility for financial performance, construction quality, or the completion schedule of the projects. Decision-making authority rests with each project's respective developer and owner.

3. Procurement Services

Collab Z facilitates the sourcing of construction materials, particularly from international suppliers, streamlining procurement for property owners. Fees are recognized upon the completion of the service.

4. Renovation Management

Collab Z manages property acquisition, renovation, and disposition projects, generating fees recognized throughout the project duration and upon specific milestones. This service ensures properties meet market demands and achieve maximum value.

5. EB-5 Immigration Investor Services

The Company identifies EB-5 investment projects and assists investors with project selection, compliance documentation, and support during the application process. Revenue is recognized upon submission of the EB-5 application package.

6. Consulting Services

The Company provides consulting services to third parties that are defined by service agreements. Consulting services may include terms whereby there are a set of deliverables required for which revenue will be recognized at a point in time when the deliverables are satisfied, or may relate to services that are performed periodically and recognized over time. Each contract is assessed for performance obligations. There is generally no right of return or refund related to these services.

 

*Related Party Relationships* 

A significant aspect of our current business model is that a majority of our revenue, accounting for 50% in the three months ended March 31, 2026, 62% in the six months ended March 31, 2026, and 65% in the fiscal year ended September 30, 2025, is derived from services provided to the properties under common control and management of the related parties. These services primarily include property management, development, renovation and procurement. Revenue from these services is recognized according to the progress and completion of specified tasks. Transactions with these related parties are conducted under terms that are revisited periodically to align with market practices and ensure compliance with regulatory standards. While these relationships contribute to our revenue streams, they are managed with careful consideration to maintain transparency and independence in our operations. As Collab Z evolves, our focus on refining our community-based property management services will continue alongside a review and potential adjustment of our involvement in transactions with related parties. See "*Current Relationships And Related Party Transactions*" for a more detailed discussion.

Future Business Model

As Collab Z evolves, we will transition toward a more focused and scalable operational model, emphasizing community-based property management as the core business, while scaling down other activities such as development, renovation management, and EB-5 services. This pivot reflects the Company's strategic emphasis on long-term sustainability and market differentiation through its Collab Platform.

In the fiscal year 2025, our revenue streams were diversely distributed across several business units. Property management, which is becoming our primary focus, contributed 44% to our total revenue. Development and construction management accounted for 11%, procurement services constituted 3%, and consulting income contributed 42% of our revenue.

Reflecting our strategic refocus, we intend to continue to phase out EB-5 Immigration Investor Services. This decision aligns with our strategy to concentrate resources and expertise on enhancing our core property management services, responding to changes in market demand and regulatory landscapes. While development, renovation, and procurement services currently contribute to our diversified revenue streams, we plan to significantly scale down these activities. Over the next two years, we expect their combined contributions to revenue will make up a less significant portion of revenue as we focus on property management services.

We have also entered into five separate limited liability company agreements (collectively, the "Joint Venture Agreements") with five unaffiliated entities to form joint venture companies in Nevada, wherein we hold 40% ownership stake in each joint venture company. Each joint venture was established to pursue property management and related real estate activities in specific local markets using our community-based property management platform. These entities operate independently and are owned jointly by us and our respective joint venture partners.

Under each Joint Venture Agreement, we contributed our technology platform, branding rights, and management expertise, while our partners provided capital contributions, local operational support, and access to regional property opportunities. The joint ventures reflect our strategic focus on scaling up by expanding our property management footprint through local partnerships that leverage our Collab platform.

This pivot underscores our commitment to sustainability and efficiency, leveraging our proprietary platform to enhance property management services. By concentrating on our core competencies, we aim to strengthen our market position and ensure long-term growth and profitability. The outlined changes reflect a deliberate strategy to optimize our business operations and focus on areas with the highest growth potential and alignment with our long-term strategic goals. Detailed plans for this transition are subject to ongoing review by our management team to ensure alignment with evolving market conditions and company objectives.

Listing on the Nasdaq Capital Market

In connection with this offering, we have applied to list our common stock on the Nasdaq Capital Market under the symbol "CLBZ." If Nasdaq approves our listing application, we expect to list our common stock and consummate this offering. Nasdaq's listing requirements for the Nasdaq Capital Market include, among other things, a stock price threshold. If Nasdaq does not approve our application and the listing of our common stock, we will not proceed with this offering. There can be no assurance that our common stock will be listed on Nasdaq.

Recent Developments

*Series B Private Placement*

 

Pursuant to a Certificate of Designation filed with the Secretary of State of Nevada on June 5, 2025, we are authorized to issue up to 1,250,000 shares of Series B Preferred Stock with a stated value of $4.00 per share. As of the date of the prospectus, we have sold an aggregate of 200,000 shares of Series B Preferred Stock, consisting of:

● 75,000 shares of Series B Preferred Stock to one accredited investor for an aggregate purchase price of $300,000 pursuant to a securities purchase agreement dated May 27, 2025;

● 25,000 shares of Series B Preferred Stock to one accredited investor for an aggregate purchase price of $100,000 pursuant to a securities purchase agreement, dated June 24, 2025;

● 25,000 and 37,500 shares of Series B Preferred Stock to two accredited investors, for an aggregate purchase price of $100,000 and $150,000, respectively, pursuant to securities purchase agreements, dated July 7, 2025;

● 37,500 shares of Series B Preferred Stock to one accredited investor for an aggregate purchase price of $150,000 pursuant to a securities purchase agreement, dated July 9, 2025.

*Series C Private Placement*

 

Pursuant to a Series C Certificate of Designation filed with the Secretary of State of Nevada on January 23, 2026, we are authorized to issue up to 10,000,000 shares of Series C Preferred Stock with a stated value of $4.00 per share. We entered into securities purchase agreements dated January 19, 2026 (the "Series C SPA") with certain accredited investors for an aggregate of 872,250 shares of Series C Preferred Stock. Series C SPAs for 122,000 shares were subsequently rescinded prior to funding, and no shares were issued in connection therewith. As of the date of the prospectus, an aggregate of 750,250 shares of Series C Preferred Stock have been sold and are issued and outstanding. Upon receipt of funds by the escrow agent, the purchase price payable by the Series C Preferred Stock investors shall be deposited into a segregated escrow account, pursuant to the terms of an escrow agreement between the Company and the escrow agent, and disbursed in accordance therewith, which funds shall be released to the Company only upon the consummation of the offering or, upon a redemption or termination pursuant to the Series C SPA, released to the investors in an amount equal to the principal invested plus all accrued and unpaid dividends.

As of the date of the prospectus, the Company has $3,001,000 in principal, together with accrued interest, held in escrow pursuant to the Series C Preferred Stock subscriptions.

 

*Joint Ventures* 

 

In March and April 2025, we entered into the Joint Venture Agreements with five unaffiliated entities to form joint venture companies in Nevada, wherein we hold 40% ownership stake in each joint venture company. For four of the five joint venture agreements, the Company issued 10,000 shares of common stock for each joint venture entity, which was valued at $20,000 under the price of $2.00 per share, as part of the capital funding for the joint venture. For the remaining agreement, the Company issued 20,000 shares of common stock for the joint venture entity, which was valued at $40,000 under the price of $2.00 per share of our common stock, as part of the capital funding for the joint venture. Each joint venture was established to pursue property management and related real estate activities in specific local markets using our community-based property management platform. These entities operate independently and are owned jointly by us and our respective joint venture partners.

Under each Joint Venture Agreement, we contributed our technology platform, branding rights, and management expertise, while our partners provided capital contributions, local operational support, and access to regional property opportunities. Each joint venture company is governed by its own operating agreement, which includes customary provisions relating to management responsibilities, capital contributions, profit and loss allocations, and dissolution rights.

The joint ventures reflect our strategic focus on scaling up by expanding our property management footprint through local partnerships that leverage our Collab platform.

Our Corporate History and Structure

Collab LLC commenced operations in the United States in 2020. In 2021, Collab LLC launched its community-based business MVP in Berkeley, California and expanded into the New Brunswick, New Jersey market. In 2022, Collab entered the Boston, Massachusetts market as part of its continued geographic expansion.

During the period from 2021 through 2024, Collab LLC focused on refining and enhancing its technology-supported operating model, developing tools to improve workflow coordination, scalability, and tenant and Community Pro engagement across its managed properties.

Collab Z Inc. was incorporated in Nevada on May 10, 2024, for the purpose of reorganizing our structure and to become the holding company for Collab LLC.

In December 2024, Collab Z Inc. completed a reorganization pursuant to which it became the parent holding company of Collab CA LLC. In 2025, Collab expanded into the Houston, Texas market and increased its portfolio to 13 managed properties across four markets, while continuing to enhance its technology tools to support operations.

In September 2024, we issued an aggregate of 5,060,391 shares of our common stock in a private placement to certain initial investors pursuant to certain securities purchase agreements dated September 16, 2024 (the "Private Placement"), including an aggregate of 2,656,000 shares of common stock to the Controlling Group, comprised of 2,462,500 shares issued to YRQ Trust, 33,500 shares issued to SDZ-1-2022 Trust, 140,000 shares issued to SDZ-2-2022 Trust and 20,000 shares issued to Shui Dui Zi Irrevocable Family Trust. The trustees and beneficiaries of YRQ Trust are immediate family members of Mr. Qian Wang, our founder and former Chairman, who is the trustee of the SDZ-1-2022 Trust, the SDZ-2-2022 Trust and the Shui Dui Zi Irrevocable Family Trusts.

On October 3, 2024, we filed a Certificate of Designation with the Secretary of State of Nevada that authorized us to issue up to 5,000 shares of Series X Preferred Stock, par value $0.001 per share, and provides for 1,000 votes per share when voting together with the common stock. The Company issued all of the shares of Series X Preferred Stock to the YRQ Trust.

On December 11, 2024, we cancelled an aggregate of 4,519,500 shares of common stock pursuant to certain cancellation and release agreements dated December 11, 2024, in order to correct a structural error, which was remedied by the Reorganization Agreement (as defined below).

In December 2024, Collab LLC became a direct, wholly owned subsidiary of the Company through the closing of a share exchange pursuant to a Reorganization Agreement and Plan of Share Exchange dated December 30, 2024 (the "Reorganization Agreement" or "Reorganization"). Pursuant to the Reorganization, the sole member of Collab LLC, YRQ Trust, exchanged 100% of their member interests for a total of 4,550,500 shares of the Company's common stock. As a result, Collab LLC became a direct, wholly owned subsidiary of the Company. Collab Z Inc. is a holding company and carries out all its operations through its subsidiaries. Collab LLC is our main operating subsidiary.

On January 2, 2025, YRQ Trust assigned 1,838,000 of its shares of common stock (the "Assigned Shares") that it had received in the Reorganization to family irrevocable trusts, friends and family members of the beneficiaries of YRQ Trust (the "Assignment"). Of the Assigned Shares, assignments of 150,000 shares to certain recipients did not close because the conditions to such assignments were not satisfied, and such shares were returned to YRQ Trust. Following the Assignment, YRQ Irrevocable Trust owns 2,862,500 shares of common stock and 5,000 shares of Series X Preferred Stock. The Assigned Shares, except for the 150,000 shares returned to YRQ Trust, are held directly by the recipients and are no longer considered beneficially owned by YRQ Trust.

On June 5, 2025, we filed a Certificate of Designation with the Secretary of State of Nevada that authorized us to issue up to 1,250,000 shares of Series B Preferred Stock with a stated value of $4.00 per share. Pursuant to a securities purchase agreement dated May 27, 2025, we sold 75,000 shares of Series B Preferred Stock to an accredited investor for an aggregate purchase price of $300,000. Pursuant to a securities purchase agreement dated June 24, 2025, we sold 25,000 shares of Series B Preferred Stock to an accredited investor for an aggregate purchase price of $100,000. Pursuant to two securities purchase agreements dated July 7, 2025, we sold 25,000 and 37,500 shares of Series B Preferred Stock to two accredited investors, for an aggregate purchase price of $100,000 and $150,000, respectively. Pursuant to a securities purchase agreement dated July 9, 2025, we sold 37,500 shares of Series B Preferred Stock to one accredited investor for an aggregate purchase price of $150,000. As of the date of the prospectus, we have sold an aggregate of 200,000 shares of Series B Preferred Stock pursuant to certain securities purchase agreements described herein.

On January 23, 2026, we filed a Certificate of Designation with the Secretary of State of Nevada that authorized us to issue up to 10,000,000 shares of Series C Preferred Stock with a stated value of $4.00 per share. We entered into the Series C SPAs with certain accredited investors for an aggregate of 872,250 shares of Series C Preferred Stock. Series C SPAs for 122,000 shares were subsequently rescinded prior to funding, and no shares were issued in connection therewith. As of the date of the prospectus, an aggregate of 750,250 shares of Series C Preferred Stock have been sold and are issued and outstanding. Upon receipt of funds by the escrow agent, the purchase price payable by the Series C Preferred Stock investors shall be deposited into a segregated escrow account, pursuant to the terms of an escrow agreement between the Company and the escrow agent, and disbursed in accordance therewith, which funds shall be released to the Company only upon the consummation of the offering or, upon a redemption or termination pursuant to the Series C SPA, released to the investors in an amount equal to the principal invested plus all accrued and unpaid dividends.

As of the date of the prospectus, the Company has $3,001,000 in principal, together with accrued interest, held in escrow pursuant to the Series C Preferred Stock subscriptions.

Corporate Information

Our principal executive offices are located at 2001 Addison St, Suite 300, Berkeley, CA 94704. Our website address is https://living.collabhome.io/. The information included on our website is not part of this prospectus.

Summary of Risk Factors

An investment in our securities involves a high degree of risk. You should carefully consider the risks summarized below. These risks are discussed more fully in the "*Risk Factors*" section immediately following this Prospectus Summary. These risks include, but are not limited to, the following:

*<u>Risks Related to the Company and Our Business</u>*

 

● We are a rapidly growing company with a relatively limited operating history, which may result in increased risks, uncertainties, expenses, and difficulties, and makes it difficult to evaluate our prospects.

● A majority of our revenue is derived from property management and consulting services, which are subject to external economic and political conditions, and a decline in those engagements could have a material adverse effect on our financial condition and results of operations.

● We track certain operational metrics, which are subject to inherent challenges in measurement, and real or perceived inaccuracies in such metrics may harm our reputation and adversely affect our stock price, business, results of operations, and financial condition.

● We are subject to concentration risk.

● We depend on our executive team and other employees to manage the business and the loss of one or more of these employees or an inability to attract and retain highly skilled employees could materially harm our business.

● Our consolidated financial statements have been prepared on a going concern basis.

● We have entered into certain related party transactions and may continue to rely on related parties for certain development and support activities.

● We will be subject to various risks related to artificial intelligence ("AI") and technology as we expand into the PropTech industry.

● Our use of "open source" software could negatively affect our ability to provide AI-based PropTech services and subject us to possible litigation, and our participation in open source projects may impose unanticipated burdens or restrictions.

*<u>Risks Related to Our Intellectual Property and Platform Development</u>*

● We rely on third-party service providers to support our platform and information technology systems.

*<u>Risks Related to Our Regulatory Environment</u>*

● Our business may be subject to a variety of U.S. financial regulations, many of which are overlapping, ambiguous and still developing, which could subject us to claims or otherwise harm our business.

*<u>Risks Related to Taxation</u>*

● We have made significant estimates and judgments in calculating our income tax provision and other tax assets and liabilities. If these estimates or judgments are incorrect, our operating results and financial condition may be materially affected.

● Changes in tax laws could have a material adverse effect on our business, financial condition and results of operations.

*<u>Risks Related to This Offering and Ownership of Our Securities</u>*

● Concentration of ownership of our voting stock by the Controlling Group may limit the ability of new investors to influence significant corporate decisions.

● There is no prior public market for our common stock, and there can be no assurances that a viable public market for our common stock will develop.

● The market price of our common stock may be highly volatile, and you could lose all or part of your investment.

● While we are seeking to have shares of our common stock listed on Nasdaq, there is no assurance that such securities will be listed on Nasdaq. Even if we meet the initial listing requirements of the Nasdaq Capital Market, there can be no assurance that we will be able to comply with the continued listing standards of the Nasdaq Capital Market, a failure that could result in a delisting of our securities.

● The requirements of being a public company may strain our resources, divert management's attention and affect our ability to attract and retain qualified board members.

● Our management has broad discretion as to the use of the net proceeds from this offering.

● We may issue additional debt and equity securities, which are senior to our common stock as to distributions and in liquidation, which could materially adversely affect the market price of our securities.

● Our potential future earnings and cash distributions to our stockholders may affect the market price of our securities.

*<u>General Risk Factors</u>*

● We may make decisions based on the best interests of our users to build long-term trust that may result in us forgoing short-term gains.

● We have less experience operating in some of the newer market verticals to which we have expanded.

● We may not be able to expand into new markets.

● Damage to our reputation could negatively impact our business, financial condition, and results of operations.

Implications of Being an Emerging Growth Company

We are an "emerging growth company" as defined in Section 2(a) of the Securities Act, and we may remain an emerging growth company for up to five years following the closing of this offering. For so long as we remain an emerging growth company, we are permitted and intend to rely on certain exemptions from various public company reporting requirements, including not being required to have our internal control over financial reporting audited by our independent registered public accounting firm pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002, or Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and any golden parachute payments not previously approved. In particular, in this prospectus, we have provided only two years of audited financial statements and have not included all of the executive compensation-related information that would be required if we were not an emerging growth company. Accordingly, the information contained herein may be different from the information you receive from other public companies in which you hold stock.

In addition, the federal securities laws provide that an emerging growth company may take advantage of an extended transition period for complying with new or revised accounting standards. This provision allows an emerging growth company to delay the adoption of some accounting standards until those standards would otherwise apply to private companies. We have elected to use this exemption from new or revised accounting standards during the period in which we remain an emerging growth company; however, we have and may adopt certain new or revised accounting standards early.

We would cease to be an "emerging growth company" upon the earliest to occur of: (i) the last day of the fiscal year in which we have $1.235 billion or more in annual revenue, (ii) the date on which we first qualify as a large accelerated filer under the rules of the Securities and Exchange Commission, or SEC, (iii) the date on which we have, in any three-year period, issued more than $1.0 billion in non-convertible debt securities, and (iv) the last day of the fiscal year ending after the fifth anniversary of this offering.

Implications of Being a Smaller Reporting Company

We are a "smaller reporting company" as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended. We may take advantage of certain of the scaled disclosures available to smaller reporting companies until the fiscal year following the determination that our voting and non-voting common stock held by non-affiliates is more than $250 million measured on the last business day of our second fiscal quarter, or our annual revenues are less than $100 million during the most recently completed fiscal year and our voting and non-voting common stock held by non-affiliates is less than $700 million measured on the last business day of our second fiscal quarter.

The Offering

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| | |
|:---|:---|
| *Shares offered:* | 5,000,000 shares of common stock (5,750,000 shares of common stock, if the underwriters exercise their over-allotment option in full) |
| *Offering price (assumed):* | $4.00 per share of our common stock. |
| *Over-allotment option:* | We have granted a 45-day option to the underwriters to purchase up to 750,000 additional shares of common stock, representing 15% of the shares of common stock sold in this offering. |
| *Shares of common stock outstanding before the offering (1):* | 5,151,391 shares |
| *Shares of common stock outstanding after the offering (2):* | 11,399,188 shares (or 12,149,188 shares of common stock, if the underwriters exercise their over-allotment option in full) |

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| | |
|:---|:---|
| *Use of proceeds:* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br> We estimate that the net proceeds from the sale of the shares in the offering, at an assumed public offering price per share of $4.00, will be approximately $17.9 million after deducting the underwriting discounts and commissions and estimated offering expenses, or $20.66 million if the underwriters exercise their over-allotment option in full. We currently expect to use the net proceeds of this offering primarily for the following purposes:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;approximately $4,500,000 for sales and marketing;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;approximately $3,000,000 for system development; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;the remaining proceeds of approximately $10,400,000 for general corporate purposes, including capital expenditures and working capital. |

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| | |
|:---|:---|
| *Proposed Nasdaq listing and symbol:* | We have applied to list our common stock on the Nasdaq Capital Market under the symbol "CLBZ." No assurance can be given that our listing will be approved by Nasdaq or that a trading market will develop for the common stock. We will not proceed with this offering in the event the common stock is not approved for listing on the Nasdaq Capital Market. |

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| | |
|:---|:---|
| *Lock-up:* | We and our directors, officers, stockholders (including the holders of shares of common stock issuable upon the automatic conversion of our outstanding SAFE agreements and Series B and Series C Preferred Stock upon the closing of this offering) as of the effective date of the registration statement of which this prospectus is a part, and certain persons to be designated by the Representatives prior to the offering, have agreed with the underwriters not to, without the prior written consent of the Representatives, for a period of 180 days after the consummation of this offering, in the case of us, officers, directors and certain stockholders; and for a period of 360 days after the consummation of this offering, in the case of certain other stockholders, (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any classes of our stocks or any securities convertible into or exercisable or exchangeable for any classes of our stocks; (ii) file or caused to be filed any registration statement with the SEC, relating to the offering of any classes of our stocks or any securities convertible into or exercisable or exchangeable for any classes of our stocks; (iii) complete any offering of debt securities, other than entering into a line of credit with a traditional bank; or (iv) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any classes of our stocks, whether any such transaction described in clause (i), (ii), (iii) or (iv) above is to be settled by delivery of any classes of our stocks or such other securities, in cash or otherwise. |
| *Dividend policy:* | We currently intend to retain all available funds and future earnings, if any, for use in the operation of our business and do not anticipate paying any cash dividends on our common stock in the foreseeable future. Investors should not purchase our common stock with the expectation of receiving cash dividends. |
| *Risk factors:* | Investing in our securities involves a high degree of risk. As an investor, you should be able to bear a complete loss of your investment. You should carefully consider the information set forth in the "*Risk Factors*" section. |
| *Transfer Agent:* | The transfer agent and registrar for our common stock is Colonial Stock Transfer. |

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<sup>(1)</sup> The number of shares of common stock outstanding before this offering excludes the following shares:

● 702,974 shares of our common stock issuable upon the exercise of outstanding stock options issued under our 2025 Plan, at a weighted-average exercise price of $2.33 per share;

● 60,734 shares of our common stock reserved for future issuance under our 2025 Plan, as well as any automatic increases in the number of shares of our common stock reserved for future issuance under our 2025 Plan; and

<sup>(2)</sup> The number of shares of common stock outstanding after this offering includes an aggregate of 6,247,797 shares of common stock issuable upon the closing of this offering, consisting of the following shares:

● 5,000,000 shares of common stock to be issued in this offering;

● 100,000 shares of common stock to be issued at the closing of this offering to Blake Elliot Inc. as compensation pursuant to certain advisory agreement dated May 6, 2024;

● 8,333 shares of common stock issuable at a 75% discounted price of $3.00 per share assuming a public offering price of $4.00, upon the automatic conversion of $25,000 of a Simple Agreement for Future Equity (SAFE) issued by the Company in April 2023 (the "2023 SAFE");

● 285,714 shares of common stock issuable upon the conversion of 200,000 shares of Series B Preferred Stock;

● 833,611 shares of common stock issuable upon the conversion of 750,250 shares of Series C Preferred Stock; and

● 20,139 shares of common stock issuable upon the conversion of accrued and unpaid dividends, as of March 31, 2026, on the Series B Preferred Stock and Series C Preferred Stock at the closing of this offering.

Unless the context otherwise requires, the information in this prospectus assumes:

● an assumed initial public offering price of $4.00 per share; and

● no exercise by the underwriters of their over-allotment option.

Summary Financial Information

You should read the following summary financial information and operating data in conjunction with, and it is qualified in its entirety by reference to, our unaudited financial statements and audited financial statements and the related notes thereto, and the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations."

Our summary financial information set forth below are derived from our financial statements included elsewhere in this prospectus.

All financial statements included in this prospectus are prepared and presented in accordance with generally accepted accounting principles in the United States, or GAAP. The summary financial information is only a summary and should be read in conjunction with the financial statements and related notes contained elsewhere in this prospectus. The financial statements contained elsewhere fully represent our financial condition and operations, however, our historical results are not necessarily indicative of our results in any future period and results from our interim period may not necessarily be indicative of the results of the entire year.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **September 30,<br> 2025** |
|  | **Actual** | **Pro Forma (1)** | **Pro Forma**<br>**As Adjusted (2)** |<br>**Actual** |
| Cash | $10794 | $10794 | $20921369 | $161506 |
| Restricted cash | 2762575 | &nbsp;&nbsp;&nbsp;&nbsp; 3010575 |  |  |
| Accounts receivable | 1075911 | 1075911 | 1075911 | 353552 |
| Due from related parties | 420578 | 420578 | 420578 | 383577 |
| Total current assets | 4590113 | 4838113 | 22738113 | 1614627 |
| Intangible assets, net | 301504 | 301504 | 301504 | 198178 |
| Investments in joint ventures | 57237 | 57237 | 57237 | 57753 |
| Total assets | 5669618 | 5917618 | 23096854 | 2490483 |
| Accounts payable and accrued expenses | 498447 | 498447 | 498447 | 376961 |
| Due to related parties | 30001 | 30001 | 30001 | 16605 |
| Total current liabilities | 589025 | 589025 | 563448 | 428566 |
| Future equity obligations | 25000 | 25000 |  | 25000 |
| Total liabilities | 614025 | 614025 | 563448 | 453566 |
| Series C preferred stock | 2792615 | 3040615 |  |  |
| Common stock subject to possible redemption | 120000 | 120000 |  | 120000 |
| Total stockholders' equity | 2142978 | 2142978 | 22533406 | 1916917 |
| Total liabilities, mezzanine and stockholders' equity | $5669618 | $5917618 | $23096854 | $2490483 |

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(1) Pro forma balance sheet information includes the issuance of the remaining 62,000 shares of Series C Preferred Stock for a total purchase price of $248,000 which was received in May 2026. As of March 31, 2026, the Company has already issued 688,250 shares of Series C Preferred Stock for a total purchase price of $2,753,000, which is currently held in escrow (in addition to $9,575 in accrued interest) and is considered within restricted cash per the pro forma balance sheet.

(2) On a pro forma as adjusted basis to give effect to the sale by us of 5,000,000 shares of common stock in this offering at an assumed public offering price of $4.00 per share, after deducting the estimated underwriting discounts and commissions and estimated offering expenses. The pro forma as adjusted basis also gives effect to the following: a) 100,000 shares of common stock to be issued at the closing of this offering to Blake Elliot Inc. as compensation pursuant to certain advisory agreement dated May 6, 2024, b) 8,333 shares of common stock issuable upon the automatic conversion of $25,000 at the closing of this offering pursuant to a Simple Agreement for Future Equity (SAFE) issued by the Company in April 2023 (the "2023 SAFE"), c) 285,714 shares of common stock issuable upon the conversion of 200,000 shares of Series B Preferred Stock at the closing of this offering, d) the reclassification of $120,000 in common stock subject to possible redemption to stockholders' equity pursuant to the Joint Venture Agreements, e) issuance of an aggregate 20,139 shares of common stock on conversion of preferred stock dividend, and f) 833,611 shares of common stock issuable upon the conversion of 750,250 shares of Series C Preferred Stock at the closing of this offering.

RISK FACTORS

 

*An investment in our securities involves a high degree of risk. You should carefully consider the following risk factors, together with the other information contained in this prospectus, before purchasing our securities. We have listed below (not necessarily in order of importance or probability of occurrence) what we believe to be the most significant risk factors applicable to us, but they do not constitute all of the risks that may be applicable. Any of the following factors could harm our business, financial condition, results of operations or prospects, and could result in a partial or complete loss of your investment. Some statements in this prospectus, including statements in the following risk factors, constitute forward-looking statements. Please refer to the section titled "Cautionary Statement Regarding Forward-Looking Statements."*

RISKS RELATED TO OUR COMPANY AND OUR BUSINESS

*We are a rapidly growing company with a relatively limited operating history, which may result in increased risks, uncertainties, expenses and difficulties, and makes it difficult to evaluate our prospects.*

The Company has a limited history upon which an evaluation of its performance and prospects can be made. There can be no assurance that we will ever operate profitably. Our current and proposed operations are subject to all the business risks associated with new enterprises. The Company may not be successful in attaining the objectives necessary for it to overcome these risks and uncertainties. These include likely fluctuations in operating results as the Company reacts to developments in its market, managing its growth and the entry of competitors into the market. We will only be able to pay dividends on any shares once our directors determine that we are financially able to do so.

 

*We may not be able to effectively manage our growth and operations, which could materially and adversely affect our business.*

We may experience rapid growth and development in a relatively short time span through our marketing efforts. The management of this growth will require, among other things, continued development of our financial and management controls and management information systems, stringent control of costs, increased marketing activities, the ability to attract and retain qualified management personnel, and the training of new personnel. We intend to hire additional personnel to manage our expected growth and expansion. Failure to successfully manage our possible growth and development could have a material adverse effect on our business and the value of our common stock.

 

*We engage in related party transactions, which may result in conflicts of interest involving our senior management.*

 

***A majority of our revenue is derived from property management and consulting services, which are subject to external economic and political conditions, and a decline in those engagements could have a material adverse effect on our financial condition and results of operations.*** 

We historically earned a significant portion of our revenue from EB-5 immigration investor management fees; however, we have not generated revenue from EB-5 investor services since fiscal year 2024. Our revenue is now derived primarily from property management services and consulting services, the majority of which are provided to related parties. These revenue streams are highly dependent on external economic and political factors, many of which are beyond our control. Such factors include global or regional economic downturns, fluctuations in interest rates, reduced real estate investment activity, foreign currency volatility, changes in trade agreements, tariffs and customs duties, and broader geopolitical instability. Adverse economic conditions, including recessions, rising interest rates, or reduced real estate investment activity, could negatively impact demand for our property management and consulting services.

If any of these external conditions result in a decline in property management or consulting engagements, our revenue could decrease significantly, which would have a material adverse effect on our business, financial condition, and results of operations.

*We track certain operational metrics, which are subject to inherent challenges in measurement, and real or perceived inaccuracies in such metrics may harm our reputation and adversely affect our stock price, business, results of operations, and financial condition.*

We track certain operational metrics, which may differ from estimates or similar metrics published by third parties due to differences in sources, methodologies, or the assumptions on which we rely. Our internal systems and tools are subject to a number of limitations, and our methodologies for tracking these metrics may change over time, which could result in unexpected changes to our metrics, including the metrics we publicly disclose. If the internal systems and tools we use to track these metrics undercount or overcount or contain algorithmic or other technical errors, the data we report may not be accurate. While these numbers are based on what we believe to be reasonable estimates of our metrics for the applicable period of measurement, there are inherent challenges in measuring how our platform is used. Limitations or errors with respect to how we measure data or with respect to the data that we measure may affect our understanding of certain details of our business, which could affect our long-term strategies. If our operational metrics are not accurate representations of our business, if investors do not perceive these metrics to be accurate, or if we discover material inaccuracies with respect to these figures, our reputation may be significantly harmed, our stock price could decline, we may be subject to stockholder litigation, and our business, financial results and results of operations could be adversely affected.

*Our growth plan may include completing acquisitions, which may or may not happen depending on the acquisition opportunities that are available in the marketplace.*

Our ability to grow by acquiring companies or assets and by making investments to complement our existing businesses will depend upon the availability of suitable acquisition candidates. If we are unable to find suitable acquisition candidates, if we are unable to attract the interest of such candidates, or if we are unable to successfully negotiate and complete such acquisitions, that could limit our ability to grow.

*We may be unable to make acquisitions and investments, successfully integrate acquired companies into our business, or our acquisitions and investments may not meet our expectations, any of which could adversely affect our business, financial condition, and results of operations.*

We may in the future acquire or invest in businesses, offerings, technologies, or talent that we believe could complement or expand our existing product offerings, enhance our technical capabilities, or otherwise offer growth opportunities. The pursuit of future potential acquisitions and investments may divert the attention of management and cause us to incur significant expenses related to identifying, investigating, and pursuing suitable acquisitions and investments, whether or not they are consummated. Furthermore, even if we successfully acquire or invest in additional businesses or technologies, we may not achieve the anticipated benefits or synergies due to a number of factors, including, without limitation:

● unanticipated costs or liabilities associated with the acquisition, including claims related to the acquired company, its product offerings, or technology;

● the incurrence of acquisition-related or investment-related expenses, which would be recognized as a current period expense;

● inability to generate sufficient revenue to offset acquisition or investment costs;

● inability to maintain relationships with customers and partners of the acquired business;

● challenges maintaining quality and security standards consistent with our brand;

● inability to identify security vulnerabilities in acquired technology;

● inability to achieve anticipated synergies or unanticipated difficulty with integration into our corporate culture;

● the need to integrate or implement additional controls, procedures, and policies;

● challenges caused by distance and cultural differences;

● harm to our existing business relationships with business partners as a result of the acquisition or investment;

● potential loss of key employees;

● use of resources that are needed in other parts of our business and diversion of management and employee resources;

● unanticipated complexity in accounting requirements;

● use of substantial portions of our available cash or the incurrence of debt to consummate the acquisition; and

● disputes that may arise out of earn-outs, escrows, and other arrangements related to an acquisition of a company.

Acquisitions also increase the risk of unforeseen legal liability, including for potential violations of applicable law or industry rules and regulations, arising from prior or ongoing acts or omissions by the acquired businesses that are not discovered by due diligence during the acquisition process.

We may have to pay cash, incur additional debt, or issue equity to pay for any future acquisitions or investments, each of which could adversely affect our financial condition. The sale of equity to finance any future acquisitions or investments could result in dilution to our stockholders. The incurrence of additional indebtedness would result in increased fixed obligations and could also include additional covenants or other restrictions that would impede our ability to manage our operations. Any of the foregoing could adversely affect our business, financial condition, and results of operations.

*We may need to raise substantial additional capital in the future in order to execute our business plan and help us and our collaboration partners fund the development and commercialization of our products. If we are unable to raise capital when needed, we may be forced to delay, reduce or eliminate products, programs, commercial efforts, or sales efforts.*

We may need to finance future cash needs through public or private equity offerings, debt financings, or strategic collaboration and licensing or royalty arrangements. Our stockholders may consequently experience additional dilution, and debt financing, if available, and such financings may involve restrictive covenants and/or high interest rates. Regarding accessing additional funds through collaboration and licensing arrangements, it may be necessary to relinquish some rights to our products, processes, and technologies or to grant licenses on terms not necessarily favorable to us. If adequate funds are not available from the foregoing sources, we may consider additional strategic financing options, including sales of assets, or we may be required to delay, reduce the scope of, or eliminate one or more of our research or development programs, or curtail some of our commercialization efforts. We may seek to access the public or private equity markets whenever conditions are favorable, even if we do not have an immediate need for additional capital.

*We depend on our executive team and other employees to manage the business and the loss of one or more of these employees or an inability to attract and retain highly skilled employees could materially harm our business.*

Our success depends largely upon the continued high performance of our executive team and other employees. We rely on our executive team for leadership in critical areas of our business, including product development, engineering, marketing, security, business development, and general and administrative functions. The loss of one or more of our executives or key employees would have an adverse effect on our business. From time to time, there may be changes in executives due to hiring or departures, which could disrupt our business. We do not have employment agreements with executives or other key personnel that require them to continue to work for us for any specified period and, therefore, they could terminate their employment at any time.

*Our management team has limited experience managing a public company.*

Our management team has limited experience managing a publicly traded company, interacting with public company investors, and complying with the increasingly complex laws pertaining to public companies. These new obligations and constituents require significant attention from our management team and may divert their attention away from the day-to-day management of our business, which could harm our business, results of operations, and financial condition.

 

 

***The Controlling Group will hold significant voting power following this offering, which will limit the ability of new investors to influence corporate decisions.***

Following this offering, the Controlling Group will hold significant voting power over our outstanding voting stock due to the Series X Preferred Stock's super-voting rights. Although the Controlling Group will not hold more than 50% of the total voting power of our capital stock and we will not be a "controlled company" within the meaning of Nasdaq corporate governance standards, the Controlling Group will nonetheless hold substantial influence over matters submitted to a vote of stockholders, including the election and removal of directors and any merger or other significant corporate transactions. This concentration of voting power could discourage, delay, or prevent a change in control of our Company, which could deprive our stockholders of an opportunity to receive a premium for their shares as part of a sale of our Company.

Because the Controlling Group holds substantial voting power through the Series X Preferred Stock's super-voting rights, new investors in this offering will have limited ability to influence corporate decisions, even though we will not be a "controlled company" under Nasdaq rules and will be subject to all of Nasdaq's corporate governance requirements, including the requirements for a majority independent board of directors, fully independent nominating and governance and compensation committees, and annual performance evaluations of such committees.

*We rely on a limited number of key personnel and face stiff competition for qualified personnel, and the loss of any of these individuals could harm our business.*

Our success depends on the expertise and experience of a small team of professionals. The loss of any key personnel could delay project approvals, disrupt investor relations, or otherwise impair our ability to operate effectively. We have not obtained key-man life insurance policies on these individuals. The loss of any of its executives' services could cause investors to lose confidence in our business.

Further, our future success will also depend on our ability to retain and motivate other highly skilled employees. To execute our growth plan, we must attract and retain highly qualified personnel. Competition for qualified personnel is intense, especially for engineers experienced in designing and developing online and mobile products. We have experienced and we expect to continue to experience difficulty in hiring and retaining employees with appropriate qualifications. To attract and retain top talent, we have had to offer, and we believe we will need to continue to offer competitive compensation and benefits packages. We may not be able to retain its key employees or attract, assimilate or retain other highly qualified employees in the future. If we do not succeed in attracting new personnel or retaining and motivating our current personnel, our business, financial condition, and results of operations could be materially and adversely affected.

***Our consolidated financial statements have been prepared on a going concern basis and we must raise additional capital to fund our operations to continue as a going concern.***

Note 2 to our consolidated financial statements for the fiscal years ended September 30, 2025 and 2024 included elsewhere in this prospectus states that the financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company had $10,794 and $161,506 in cash and $420,578 and $383,577 in amounts due from related parties as of March 31, 2026, and September 30, 2025, respectively. The Company is heavily reliant on related parties as its primary revenue and cash flow sources and has historically generated revenues from sources that may not be recurring. We are an early-stage company and as a result we expect to incur significant costs to expand our operations and conduct our business plan, which may result in future losses if it cannot effectively market its products and achieve market acceptance.

While property management fee is our recurring source of revenue, our future business success is dependent on our ability to generate cash from our operating activities or to raise additional capital to finance our operations. There is no assurance that we will succeed in obtaining sufficient funding on terms acceptable to us to fund continuing operations, if at all. The perception that we might be unable to continue as a going concern may also make it more difficult to obtain financing for the continuation of our operations on terms that are favorable to us, or at all, and could result in the loss of confidence by investors, suppliers and employees. Our consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. If we are unable to continue as a going concern, we may have to liquidate our assets and may receive less than the value at which those assets are carried on our consolidated financial statements, and it is likely that our investors will lose all or a part of their investment.

*We have entered into certain related party transactions and may continue to rely on related parties for certain business activities*. *Our reliance on related parties for a substantial portion of our revenue from transactions with related parties creates risks to our business, financial condition and results of operations.*

We have engaged in the past, and may continue to engage, in a substantial number of related party transactions. During the three months ended March 31, 2026 and 2025, 50% and 74%, respectively, of our total revenue was generated from transactions with related parties. During the six months ended March 31, 2026 and 2025, 62% and 65%, respectively of our total revenue were generated from transactions with related parties. For additional information related to this and other related party transactions, please see the section entitled "*Current Relationships and Related Party Transactions.*" Such related party transactions may not have been entered into on an arm's-length basis, and we may have achieved more favorable terms because such transactions were entered into with our related parties. We rely on, and will continue to rely on, our related parties to earn revenues. If our related parties cease to demand real estate services from us, including by terminating agreements with us, we may be unable to obtain other sources of revenue on the same terms without disruption to our business. This could have a material effect on our business, results of operations and financial condition. In addition, a significant reliance on related parties for revenue may not reflect our ability to generate revenue from unaffiliated third parties, which could hinder our ability to grow or diversify our customer base.

*We will be subject to various risks related to artificial intelligence ("AI") and technology as we expand into the PropTech industry.*

As we plan to expand to the PropTech industry in the future and transition ourselves from a standard property developer to a tech, AI-based innovator, we believe we will become subject to various risks related to AI and technology, including the following:

● AI and AI-related markets are still in their infancy in comparison to other widely used software types, and it is unclear whether AI and AI-related markets will continue to grow. The success of our AI-based PropTech services will depend on the willingness of developers and other real estate industry participants to increase their use of AI.

● AI is a fast growing industry and we must successfully adapt and manage technological advances in AI and AI-related markets, as well as effectively compete with the emergence of additional competitors in the industry in order to maintain and grow our AI-based PropTech business. Thus, the success of our AI-based PropTech business depends in large part on our ability to keep pace with rapid technological changes in the development and implementation of AI products and services.

● Failure to attract and retain additional qualified personnel in the AI field could also prevent us from executing our business strategy and growth plans.

● The information that AI learns may include highly confidential information. In the unlikely event of a leakage of such confidential information, our credibility may be negatively impacted, which may affect our business, operating results, and financial condition.

● AI algorithms heavily rely on data for training and decision-making. However, the quality, completeness, and accuracy of real estate data can be inconsistent. Incomplete or biased data can lead to flawed predictions and suboptimal outcomes. Also, AI models can inadvertently perpetuate biases present in historical data. In real estate, this could lead to discriminatory practices related to property valuation, tenant selection, or mortgage approvals.

● Handling sensitive personal information (e.g., financial records, property details) requires robust privacy safeguards. Data breaches or misuse could harm individuals and erode trust in AI-driven real estate solutions.

● While AI models can excel in specific tasks (e.g., property valuation, demand prediction), scaling them across diverse markets or adapting them to unique local contexts remains a challenge. Real estate markets vary significantly by location, property type, and regulations. AI models must adapt to local nuances. A one-size-fits-all approach may not work. Customization for individual properties or regions is essential.

● Developing, deploying, and maintaining AI systems involve significant costs. Small real estate businesses may struggle to afford AI solutions, limiting their access to advanced technology.

● Real estate markets are influenced by economic cycles, geopolitical events, and unforeseen crises. AI models trained on historical data may struggle to predict sudden shifts or adapt to unprecedented situations.

● Beyond technical challenges, ethical dilemmas arise. For instance, should AI prioritize profit over community well-being? Balancing commercial interests with societal impact is an ongoing debate.

*Relying on external AI technologies could lead to issues such as service disruptions or changes in licensing terms.*

 

We use AI technologies licensed from third parties in our technologies, and our ability to continue to use such technologies at the scale we need may be dependent on access to specific third-party software and infrastructure. We cannot control the availability or pricing of such third-party AI technologies, especially in a highly competitive environment, and we may be unable to negotiate favorable economic terms with the applicable providers. If any such third-party AI technologies become incompatible with our solutions or unavailable for use, or if the providers of such models unfavorably change the terms on which their AI technologies are offered or terminate their relationship with us, our solutions may become less appealing to our customers, and our business will be harmed. In addition, to the extent any third-party AI technologies are used as a hosted service, any disruption, outage, or loss of information through such hosted services could disrupt our operations or solutions, damage our reputation, cause a loss of confidence in our solutions, or result in legal claims or proceedings for which we may be unable to recover damages from the affected provider.

Our reliance on specific third-party AI providers, or the specialized integrations we build around them, may limit our ability to switch to alternative solutions quickly. Contractual obligations, proprietary APIs, or a need to retrain models on different platforms could result in prohibitively high switching costs. This limitation can reduce our negotiating leverage, preventing us from securing more favorable pricing or service levels from the current or competing vendors. If we are unable to pivot to alternative providers when market conditions or technology trends shift, our platform's evolution and our competitive position could be constrained.

 

*We are exposed to risks related to the adoption and use of artificial intelligence.*

We are subject to various risks associated with the adoption and utilization of AI technologies by both our company and our competitors. The inherent complexity and rapid evolution of AI technology may hinder our ability to effectively implement these capabilities, potentially leading to significant costs without corresponding benefits to our business or customer value. Our AI implementations may result in errors or unintended outcomes due to algorithmic flaws, inadequate training data, or inherent biases, which could expose us to liability and reputational damage. Additionally, we face competitive risks if our adoption of AI or other machine learning technologies is not done timely or as effective as that of our competitors. AI technology also presents unique challenges related to data privacy, cybersecurity, and ethical considerations, which could impact our business operations. The regulatory landscape is continuously evolving, with new laws and regulations being proposed or enacted in various jurisdictions. Compliance with these diverse requirements could increase our operational costs, and any actual or perceived regulatory violations could subject us to enforcement actions, penalties, and reputational harm. The combined effect of these interrelated risks could materially and adversely affect our business operations, financial condition, and competitive position.

The technologies or models we rely upon may undergo major updates or shifts while our AI features are already live in the market. Such updates could force us to retrain or redeploy our own AI systems at inopportune times, increasing our costs and delaying upgrades or product releases. Furthermore, the vendor might unexpectedly discontinue certain features or stop supporting the version on which our platform depends. Any such mid-deployment disruption could result in downtime, diminished accuracy or usability, and ultimately damage our brand reputation and customer experience.

Use of AI-based chatbots, automated email systems, or virtual assistants to communicate with tenants risks generating inaccurate, misleading, or even non-compliant messages, especially if trained on incomplete or biased data. When automated interactions fail to handle tenant needs or provide incorrect information, it can cause confusion and frustration, and may even give rise to disputes or legal liabilities under consumer-protection or housing regulations. Reliance on AI to handle real-time tenant communication may also reduce our ability to detect and correct errors quickly, exposing us to reputational harm if the tenant experience deteriorates.

A number of larger, well-funded companies in the real estate and property-technology sectors are simultaneously investing in or building their own AI solutions. These organizations often possess more resources and larger datasets, giving them an inherent advantage in rapidly developing and refining powerful AI tools. Their scale can also allow them to enter the market more aggressively. If we cannot match the pace or sophistication of these bigger players, our competitive position and market share could be adversely affected, and we may face increased pressure to invest heavily in research and development or enter into less favorable partnerships to remain competitive.

 

*Our use of "open-source" software could negatively affect our ability to provide AI-based PropTech services and subject us to possible litigation, and our participation in open-source projects may impose unanticipated burdens or restrictions.*

 

We use open-source software in our AI-based PropTech services, including as incorporated into software we receive from third-party commercial software vendors, and expect to continue to use open-source software in the future. Use of open-source software may entail greater risks than use of third-party commercial software. The terms of many open-source licenses have not been interpreted by U.S. courts, and there is a risk that such licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to market or commercialize our products. We may face claims from others alleging breach of license requirements or infringement of intellectual property rights in what we believe to be licensed open-source software. In addition, under the terms of some open-source licenses, under certain conditions, we could be required to release our proprietary source code that was developed using, incorporating or linked open-source, or apply open-source licenses to our proprietary software, including authorizing further modification and redistribution. These claims or requirements, including any change to the applicable license terms, could also result in litigation, require us to purchase a costly license, require us to devote additional research and development resources to change our offerings, or require us to cease offering the implicated services unless and until we can find alternative tools or re-engineer them to avoid infringement or release of our proprietary source code, any of which would have a negative effect on our business and operating results. Some open-source software may include generative AI software or other software that incorporates or relies on generative AI. The use of such software may expose us to risks as the intellectual property ownership and license rights, including copyright, of generative AI software and tools, has not been fully interpreted by U.S. courts or been fully addressed by federal or state regulation. In addition to risks related to license requirements, usage of open-source software can lead to greater risks than use of third-party commercial software, as open source licensors generally do not provide updates, warranties, support, indemnities, assurances of title or controls on origin of the software, or other contractual protections regarding infringement claims or the quality of the code. Likewise, some open-source projects have known security and other vulnerabilities and architectural instabilities, or are otherwise subject to security attacks due to their wide availability, and are provided on an "as-is" basis. Many of these risks associated with usage of open-source software could be difficult to eliminate or manage, and could, if not properly addressed, negatively affect the performance of our offerings and our business.

Certain open-source licenses (for example, GNU GPL or AGPL) can impose copyleft obligations, which mandate that any derivative works, including sections of our proprietary code, must be licensed under the same open-source terms. If our team inadvertently integrates this code with our proprietary software in a manner that triggers these obligations, we could be forced to disclose valuable internal source code or re-license parts of our platform. Such an event could undermine the uniqueness of our technology, erode our competitive advantage, and in some cases, lead to contractual disputes or legal action from third parties who believe we violated the license terms.

We bear responsibility for implementing security patches and fixes in a timely manner across all relevant systems. If we fail to promptly address known open-source security flaws, whether out of oversight, insufficient resources, or incompatible code dependencies, our platform could become vulnerable to exploits. Even short delays in applying critical updates could result in data breaches, system outages, or compromised user information, leading to reputational harm, regulatory scrutiny, or legal liabilities.

An open-source software project we use might change its license terms, or if ongoing legal challenges redefine what constitutes fair use of the code. Such shifts, especially if it affects a fundamental component of our platform, could force us to re-engineer substantial parts of our technology under time constraints, or expose us to claims from licensors or users who assert that our software violates revised license conditions.

*We might be exposed to potential financial liabilities as a result of receiving minimum rental guarantees.*

We have a minimum rental guarantee for certain managed properties whereby the Company will pay the difference between the collected rent and the minimum rent guarantee. The minimum rental guarantees expose Collab Z Inc. to potential financial liabilities if the properties under management fail to generate the guaranteed minimum revenue. While the historical performance and current market conditions have not necessitated shortfall payments, changes in market dynamics and economic downturns could lead to significant financial obligations under these guarantees. These conditions could impact our financial position and require careful management and continuous market analysis to mitigate potential risks associated with these guarantees.

 

*Our revenue from our management agreements depends on timely payments, performance based bonuses and project decisions which are beyond our control.*

 

Our management agreements provide that base fees may be paid either monthly or upon completion of specific services. This structure exposes us to the risk of delayed payments, which could negatively impact our cash flow and financial condition. While we have the right to terminate agreements if fees remain unpaid for more than 30 days, there is no guarantee that we will be able to recover outstanding amounts, and termination may limit future business opportunities. Additionally, our agreements allow for performance-based bonuses, which are subject to the discretion of project developers and owners. As a result, we may not receive the full bonus amounts if actual performance calculations differ from initial projections or if developers elect not to pay discretionary bonuses.

Furthermore, as a consultant in the development phase, we do not control key aspects of the projects, including financial performance, construction quality, or the completion schedule. Decision-making authority rests with the developers and owners, and any delays, cost overruns, or project failures could impact our expected compensation or business reputation. If we are unable to effectively manage these risks, our financial performance and growth prospects could be adversely affected.

***Our transition toward a property management-focused business model may result in revenue volatility and operational challenges.***

We anticipate a significant transition in our business model, shifting our focus toward community-based property management and phasing out or significantly scaling down other business activities, including EB-5 immigration investor services, development, renovation management, and procurement services, which accounted for approximately 37% of our total revenue in the fiscal year ended September 30, 2024, generated no revenue during the fiscal year ended September 30, 2025 or during the six months ended March 31, 2026. While we believe this strategic shift will enhance long-term sustainability and market differentiation, it poses several risks that could adversely impact our financial performance and operational efficiency.

As we phase out EB-5 immigration investor services, which accounted for approximately 0% of our total revenue in the six months ended March 31, 2026, 0% in the fiscal year 2025, and 37% in the fiscal year 2024, we may continue to experience revenue volatility during the transition. Although EB-5 immigration investor services has not contributed revenue recently, there is no guarantee that the growth of our property management services will fully compensate for the revenue lost from these discontinued segments in the near term. If our property management division does not scale at the anticipated rate, we may face prolonged revenue shortfalls, which could adversely affect our profitability and cash flow.

Additionally, to support the expansion of our property management services, we will need to allocate substantial financial, technological, and human resources, including the continued development of our CollabAPP platform. There is a risk that these resources may be insufficient or that the reallocation may lead to inefficiencies or underperformance. If we are unable to successfully execute this transition, it could negatively impact our overall business performance, competitive position, and shareholder value. Moreover, our ability to implement these changes effectively will depend on evolving market conditions, regulatory developments, and customer demand, which may not align with our expectations.

*We have entered and may continue to enter into joint ventures that will expose us to increased operating risks.*

 

As part of our growth strategy, we have also entered into joint venture arrangements intended to complement or expand our business and will likely continue to do so in the future. These joint ventures are subject to substantial risks and liabilities associated with their operations, as well as the risk that our relationships with our joint venture partners do not succeed in the manner that we anticipate.

**RISKS RELATED TO OUR EB-5 INVESTOR SERVICES**

**Although we have not generated revenue from EB-5 immigration investor services since the fiscal year ended September 30, 2024, and intend to continue to phase out such services, we continue to provide certain EB-5-related consulting services to related parties and retain exposure to the risks described below in connection with our historical and residual EB-5 activities.**

***The success of the EB-5 program depends on compliance with evolving USCIS requirements, which may be subject to change.***

The EB-5 program is governed by regulations and policies enforced by United States Citizenship and Immigration Services ("USCIS"). Changes to requirements, such as job creation thresholds, investment amounts, or geographic restrictions for Targeted Employment Areas, could reduce demand for EB-5-related consulting services that we continue to provide and may adversely affect any future EB-5 activities we undertake..

***Investors may face significant risks related to their immigration status and financial investments.***

 ****

Investors who have participated through projects we previously identified or facilitated relied on our services to ensure compliance. If an investor's visa petition is denied due to issues with a selected project, such as insufficient job creation or non-compliance with business plans, the investor may lose their immigration benefits and financial investment. Such outcomes may lead to dissatisfaction with our services and potential legal claims, even though we are no longer actively providing EB-5 investor services.

***The success of our business relies heavily on third-party project operators and developers.***

To the extent we have previously assisted EB-5 investors or continue to provide EB-5-related consulting services, our reputation depends on the performance of third-party project operators. Delays, cost overruns, or operational failures in projects we have recommended could result in the inability to meet USCIS requirements or achieve financial returns for investors. Although we conduct due diligence, we cannot control the execution of these projects, which exposes our business to reputational and financial risks.

*Economic, political, or legal changes could adversely impact the EB-5 program and our business operations.*

Changes in federal immigration policy, economic downturns, or shifts in foreign relations could negatively affect the EB-5 program's attractiveness to international investors. For example, increased restrictions on immigration or changes to the EB-5 program's terms may reduce investor interest and impact our ability to operate successfully.

The EB-5 Immigrant Investor Program's Regional Center component is currently authorized by statute only through September 30, 2027. If Congress does not extend or reauthorize the Regional Center program before that date, the program would lapse. In the event of a lapse, new regional center-based EB-5 offerings could be suspended, investor filings could decline, and capital formation activity in the EB-5 sector could materially slow or cease, subject to any grandfathering or transition provisions that may be enacted. Although prior lapses have resulted in temporary reauthorizations and certain investor protections, there can be no assurance that similar legislative action would occur in the future. Because the Company has historically derived revenue from, and continues to provide certain consulting services to participants in the EB-5 industry, a termination or prolonged suspension of the Regional Center program could reduce overall EB-5 activity and demand for the Company's residual EB-5-related services, which could adversely affect the Company's revenues, financial condition, and results of operations. Furthermore, current statutory grandfathering protections requiring the government to continue adjudication of certain petitions apply only to qualifying investor petitions filed on or before September 30, 2026. If the Regional Center program is not reauthorized prior to that date, or if Congress does not enact corrective or transitional legislation extending similar protections to later-filed petitions, prospective investors may delay or forgo filing new petitions due to uncertainty regarding program continuity. Such uncertainty could materially reduce new investor filings and overall EB-5 market activity, which could adversely affect demand for the Company's EB-5-related consulting services.

Changes to immigrant visa processing policies—including temporary pauses, country-specific restrictions, or additional screening requirements—could reduce or delay EB-5 investor demand. If the U.S. Department of State were to impose restrictions affecting countries that historically account for a significant share of EB-5 investors, including India or China, or otherwise impose additional delays in immigrant visa processing, investor demand for EB-5 offerings could decline.

Although we have substantially phased out our EB-5 immigration investor services and have not generated revenue from such services since the fiscal year ended September 30, 2024, any reduction in investor participation in the EB-5 program generally, increased uncertainty regarding visa availability, or prolonged processing times could adversely affect demand for consulting services we provide to projects that have historically utilized EB-5 capital and, as a result, could adversely impact the Company's revenue, financial condition, and results of operations.

*The illiquid nature of EB-5 investments may deter potential investors.*

 

Investments made under the EB-5 program are typically illiquid and cannot be easily sold or transferred. This lack of liquidity may discourage some potential investors from participating in any EB-5 projects with which we are or have been associated, which could limit demand for residual EB-5-related consulting services or expose us to claims from dissatisfied investors.

*We may face conflicts of interest in our relationships with project operators.*

Our relationships with project operators or developers may create conflicts of interest, particularly if those operators are affiliates or entities in which we have financial interests. Such conflicts may result in questions regarding the impartiality of our recommendations and could damage our reputation.

RISKS RELATED TO OUR INTELLECTUAL PROPERTY AND PLATFORM DEVELOPMENT

 

*We may implement new lines of business or offer new products and services within existing lines of business.*

As an early-stage company, we may implement new lines of business at any time. There are substantial risks and uncertainties associated with these efforts, particularly in instances where the markets are not fully developed. In developing and marketing new lines of business and/or new products and services, we may invest significant time and resources. Initial timetables for the introduction and development of new lines of business and/or new products or services may not be achieved, and price and profitability targets may not prove feasible. We may not be successful in introducing new products and services in response to industry trends or developments in technology, or those new products may not achieve market acceptance. As a result, we could lose business, be forced to price products and services on less advantageous terms to retain or attract clients or be subject to cost increases. As a result, our business, financial condition or results of operations may be adversely affected.

 

*If we are unable to maintain the quality of our products, expand our product offerings or continue technological innovation and improvements, our prospects for future growth may be harmed.*

We believe our success depends on users' finding our product offerings to be of value to them. Our ability to attract and engage users depends, in part, on our ability to successfully expand our product offerings and geographic reach. To enter new markets, we will need to develop a deep understanding of those new markets and the associated business challenges faced by participants in them. Developing this level of understanding may require substantial investments of time and resources, and we may not be successful. In addition to the need for substantial resources, government regulation could limit our ability to introduce new product offerings. If we fail to expand into new markets successfully, our revenue may grow at a slower rate than we anticipate, and our business, financial condition and results of operations could be materially adversely affected. We must also continue to innovate and improve our technology and product offerings to continue future growth and successfully compete with other companies in our markets, or our brand and future growth could be materially adversely affected.

In addition, the market for community-based property management solutions and PropTech platforms is rapidly evolving, fragmented and highly competitive. Competition in this market has intensified, and we expect this trend to continue both traditional property management firms and technology-driven competitors expand their offering. There are many established and emerging PropTech companies and traditional property management firms providing a range of services to property owners and tenants. If we fail to successfully anticipate and identify new trends, technologies and emerging competitors, and provide responsive, technology-enabled service, our ability to attract property owners and tenants may suffer, which would harm our business, financial condition, and results of operations.

*We are making substantial investments in new product offerings and technologies and expect to increase such investments in the future. These efforts are inherently risky, and we may never realize any expected benefits from them.*

We have made substantial investments to develop new product offerings and technologies, including our data infrastructure and our matching engine, and we intend to continue investing significant resources in developing new technologies, tools, features, services, products, and product offerings. We expect to increase our investments in these new initiatives in the near term, which may result in lower margins. We also expect to spend substantial amounts as we seek to grow the verticals in which we operate our platform and increase our scale and expand our offerings to additional geographic markets. If we do not spend our development budget efficiently or effectively on commercially successful and innovative technologies, we may not realize the expected benefits of our strategy. Our new initiatives also have a high degree of risk, as each involves strategies, technologies, and regulatory requirements with which we have limited or no prior development or operating experience. There can be no assurance that demand for such initiatives will exist or be sustained at the levels that we anticipate, or that any of these initiatives will gain sufficient traction or market acceptance to generate sufficient revenue to offset any new expenses or liabilities associated with these new investments. It is also possible that product offerings developed by others will render our product offerings non-competitive or obsolete. Further, our development efforts for new product offerings and technologies could distract management from current operations and will divert capital and other resources from our more established product offerings and technologies. Even if we are successful in developing new product offerings or technologies, regulatory authorities may subject us to new rules or restrictions in response to our innovations that could increase our expenses or prevent us from successfully commercializing new product offerings or technologies. If we do not realize the expected benefits of our investments, our business, financial condition and operating results may be harmed.

 

 

***Our new products could fail to achieve the sales projections we expected.***

Our growth projections assume that with an increased advertising and marketing budget, our products will be able to gain traction in the marketplace at a faster rate than our current products. Our new products may fail to gain market acceptance for any number of reasons, including misjudged customer demand, pricing, positioning, distribution, or competitive responses. If our new products fail to achieve significant sales and acceptance in the marketplace, this could materially and adversely impact the value of your investment.

 

*The development and commercialization of our products are highly competitive.*

We face competition with respect to any products that we may seek to develop or commercialize in the future. Our competitors include major companies, some publicly listed, in the United States. Many of our competitors have significantly greater financial, technical, and human resources than we have and superior expertise in research and development and marketing approved products and thus may be better equipped than us to develop and commercialize products. These competitors also compete with us in recruiting and retaining qualified personnel and acquiring technologies. Smaller or early-stage companies may also prove to be significant competitors or disruptors, particularly through collaborative arrangements with large and established companies and/or some of our competitors. Accordingly, our competitors may commercialize products more rapidly or effectively than we can, which would adversely affect our competitive position, the likelihood that our products and services will achieve initial market acceptance and our ability to generate meaningful additional revenues from our products.

 

*We must correctly predict, identify, and interpret changes in consumer preferences and demand, offer new features to meet those changes, and respond to competitive innovation.*

Consumer preferences may result in the need for our products to change continually. Our success depends on our ability to predict, identify, and interpret the tastes and habits of consumers and to offer products that appeal to consumer preferences. If we do not offer products that appeal to consumers, our sales and market share will decrease. We must distinguish between short-term fads, mid-term trends, and long-term changes in consumer preferences. If we do not accurately predict which shifts in consumer preferences will be long-term, or if we fail to introduce new and improved products to satisfy those preferences, our sales could decline. If we fail to expand our product offerings successfully across product categories, or if we do not rapidly develop products in faster growing and more profitable categories, demand for our products could decrease, which could materially and adversely affect our product sales, financial condition, and results of operations. In addition, achieving growth depends on our successful development, introduction, and marketing of innovative new products and line extensions.

Successful innovation depends on our ability to correctly anticipate customer and consumer acceptance, to obtain, protect and maintain necessary intellectual property rights, and avoid infringing the intellectual property rights of others and failure to do so could compromise our competitive position and adversely impact our business.

*We rely on the data provided to us by users and third parties to operate and improve our product offerings, and if we are unable to maintain and grow the use of such data, we may be unable to provide users with a platform experience that is relevant and effective, which would harm our business, financial condition, and results of operations.*

We analyze first-party data from users and may leverage third-party data to understand property performance, tenant needs, and market conditions. The data we use in operating and improving our platform is critical to the experience we provide for our users. If we are unable to maintain, grow and efficiently handle the data provided to us, the value that we provide to users and the quality of our property management services may be limited. In addition, if we do not maintain the quality, accuracy and timeliness of this information, user experience may suffer, which would harm our business, financial condition, and results of operations.

*Seasonal fluctuations and other market data in the investment real estate industry could adversely affect our business and make comparisons of our quarterly results difficult.*

Our revenue and profits have historically tended to be significantly higher in the second half of each year than in the first half of the year. This is a result of a general focus in the real estate industry on completing or documenting transactions by the calendar year-end and because certain of our expenses are relatively constant throughout the year. This historical trend can be disrupted both positively and negatively by major economic, regulatory, or political events impacting investor sentiment for a particular property type or location, current and future projections of interest rates and tax rates, the attractiveness of other asset classes, market liquidity and the extent of limitations or availability of capital allocations for larger institutional buyers, to name a few. As a result, our historical pattern of seasonality may or may not continue to the same degree experienced in the prior years and may make it difficult to determine, during the course of the year, whether planned results will be achieved, and thus to adjust to changes in expectations.

*Any insurance coverage we have might not be sufficient and uninsured losses may occur.*

We maintain minimum insurance coverage to protect us against a broad range of risks, at levels we believe are appropriate and consistent with current industry practice. Our objective is to exclude or minimize the risk of financial loss at a reasonable cost.

Nevertheless, we could still be subject to risks in the following areas, among others:

● losses that might be beyond the limits, or outside the scope, of coverage of our insurance and that may limit or prevent indemnification under our insurance policies;

● inability to maintain adequate insurance coverage on commercially reasonable terms in the future;

● certain categories of risks are currently not insurable at a reasonable cost; and

● no assurance of the financial ability of the insurance companies to meet their claim payment obligations.

Any one or more of these events could have an adverse effect on our business, financial position, profit, and cash flow.

Additionally, we cannot be certain that our insurance coverage will be adequate for data security liabilities incurred, will cover any indemnification claims against us relating to any incident, will 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. Moreover, certain elements of our business model are novel and insurance industry may have difficulty underwriting the risks associated with our business. Therefore, our insurance providers might charge high premiums or do not offer insurance at all for certain risks we expect to incur.

*We rely on third-party service providers to support our platform and information technology systems.*

We rely on third-party service providers to provide critical services that help us deliver our products and operate our business, including hosting our platform. These providers may support or operate critical business systems for us or store or process the same sensitive, proprietary, and confidential information we handle. We do not have a redundant network or rapid disaster recovery capabilities in most cases for the services provided by third-party service providers. These service providers may not have adequate security measures and could experience a security incident that compromises 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-party service providers for the resulting liability we incur.

Any significant disruption to the infrastructure of our third-party service providers and/or any changes in our third-party service providers' service levels may significantly impact our business operations, including making our platform unavailable to our users. A lengthy interruption in the availability of our platform would result in a loss of matches with our lenders and corresponding revenue, which would impact our operating results and cash flow. In addition, it would negatively impact search engine ranking, user experience and our reputation with our lenders. Furthermore, if any of our agreements with our third-party service providers are terminated, we may experience significant costs or downtime in connection with the transfer to, or the addition of, new hosting providers. Although alternative providers could host our platform on a substantially similar basis, such a transition could potentially be disruptive, and we could incur significant costs in connection therewith.

 

***We rely on operating system providers to support our platform, some of which contain open-source software, which may pose particular risks to our proprietary software, products, and services in a manner that could negatively affect our business.***

The success of our platform depends upon the effective operation of certain mobile operating systems, networks and standards that are run by operating system providers and app stores, or Providers. The Providers may and we may use open-source software in our platform and anticipate continuing to use open-source software in the future. Some open-source software licenses require those who distribute open-source software as part of their software product to publicly disclose all or part of the source code of such software product or to make available any derivative works of the open-source code on unfavorable terms or at no cost, and we may be subject to such terms. The terms of certain open-source licenses to which we are subject have not been interpreted by the U.S. or foreign courts, and there is a risk that open-source software licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to provide or distribute our products or services. Additionally, we could face claims from third parties claiming ownership of, or demanding release of, the open-source software or derivative works that we develop using such software, which could include our proprietary source code or otherwise seeking to enforce the terms of the applicable open-source license. These claims could result in litigation and could require us to make our software source code freely available, purchase a costly license or cease offering the implicated products or services unless and until we can re-engineer such source code to eliminate the use of such open-source software. This re-engineering process could require us to expend significant additional research and development resources, and we may not be able to complete the re-engineering process successfully. In addition to risks related to license requirements, the use of certain open-source software can lead to greater risks than the use of third-party commercial software, as open-source licensors generally do not provide warranties, assurance of title or controls on the origin or operation of the open-source software, which are risks that cannot be eliminated, and could, if not properly addressed, negatively affect our business. We cannot be sure that all of our use of open-source software is in a manner that is consistent with our current policies and procedures or will not subject us to liability. Any of these risks could be difficult to eliminate or manage, and, if not addressed, would negatively affect our business, financial condition, and operating results.

*We may not be able to continue to obtain licenses to third-party software and intellectual property on reasonable terms or at all, which may disrupt our business and harm our financial results.*

We license third-party software and other intellectual property for use in connection with our platform, including for various third-party product integrations with our platform. Our third-party licenses typically limit our use of intellectual property to specific uses and include other contractual obligations with which we must comply. These licenses may need to be renegotiated or renewed from time to time, or we may need to obtain new licenses in the future. Third parties may stop adequately supporting or maintaining their offerings or they or their technology may be acquired by our competitors. If we are unable to obtain licenses to third-party software and intellectual property on reasonable terms or at all, the functionalities available through our platform may be adversely impacted, which could in turn harm our business. Further, if we or our third-party licensors were to breach any material term of a license, such a breach could, among other things, prompt costly litigation, result in the license being invalidated and or result in fines and other damages. If any of the following were to occur, it could harm our business, financial results, and our reputation.

We also cannot be certain that our licensors are not infringing the intellectual property rights of others or that our licensors have sufficient rights to the intellectual property to grant us the applicable licenses. Although we seek to mitigate this risk contractually, we may not be able to sufficiently limit our potential liability. If we are unable to obtain or maintain rights to any of this intellectual property because of intellectual property infringement claims brought by third parties against our licensors or against us, our ability to provide functionalities through our platform using such intellectual property could be severely limited and our business could be harmed. Furthermore, regardless of the outcome, infringement claims may require us to use significant resources and may divert management's attention.

 

***Our reliance on communication platform from third parties may adversely affect our business and results of operations.***

We rely on communication platforms from third parties, such as Discord which is utilized under a standard SaaS subscription model, without exclusive licensing, in order to maintain real-time communication among the operations team, tenants, and Community Pros, which is a critical function of our business. If these services provided by Discord become unavailable due to extended outages or interruptions or because they are no longer available on commercially reasonable terms or prices, or for any other reason, our expenses could increase, our ability to manage our property could be impaired, our ability to communicate with our tenants could be weakened until equivalent services, if available, are identified, obtained and implemented, all of which could harm our business, financial condition, and results of operations.

*We are dependent on internet search engines, in particular, Google, to direct traffic to our websites and refer new users to our platform. If search engines' algorithms, methodologies, or policies are modified or enforced in ways we do not anticipate, or if our search results page rankings decline for other reasons, traffic to our platform or user growth or engagement could decline, any of which would harm our business, financial condition, and results of operations.*

We are dependent on internet search engines, primarily Google, to direct traffic to our platform, including our website. Search engines, such as Google, may modify their search algorithms and policies or enforce those policies in ways that are detrimental to us, and without prior notice to us. If that occurs, we may experience significant declines in the organic search ranking of our search results, leading to a decrease in traffic to our platform. We have experienced declines in traffic and user growth as a result of these changes in the past and anticipate fluctuations as a result of such actions in the future.

In addition, Google may take action against websites for behavior that it believes unfairly influences search results. Our ability to appeal these actions is limited, and we may not be able to revise our content strategies to recover the loss in domain authority, page rankings, traffic or user growth resulting from such actions. Any significant reduction in the number of users directed to our website or mobile application from search engines would harm our business, revenue, and financial results.

*Claims by others that we infringed their proprietary technology or other intellectual property rights could harm our business.*

Companies in the internet and technology industries are frequently subject to litigation based on allegations of infringement, misappropriation or other violations of intellectual property rights. In addition, certain companies and rights holders seek to enforce and monetize patents or other intellectual property rights they own, have purchased, or have otherwise obtained. As we gain an increasingly high public profile, the possibility of intellectual property rights claims against us grows. Although we may have meritorious defenses, there can be no assurance that we will be successful in defending against these allegations or in reaching a business resolution that is satisfactory to us. Our competitors and others may now and in the future have patent portfolios that are used against us. In addition, future litigation may involve patent holding companies or other adverse patent owners who have no relevant product or service revenue and against whom our patents may therefore provide little or no deterrence or protection. Many potential litigants, including some of our competitors and patent-holding companies, have the ability to dedicate substantial resources to the assertion of their intellectual property rights. Any claim of infringement by a third-party, even those without merit, could cause us to incur substantial costs defending against the claim, could distract our management from our business and could require us to cease use of such intellectual property.

Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation, we risk compromising our confidential information during this type of litigation. We may be required to pay substantial damages, royalties or other fees in connection with a claimant securing a judgment against us, we may be subject to an injunction or other restrictions that prevent us from using or distributing our intellectual property, or from operating under our brand, or we may agree to a settlement that prevents us from distributing our offerings or a portion thereof, which could adversely affect our business, results of operations and financial condition.

With respect to any intellectual property rights claim, we may have to seek out a license to continue operations found or alleged to violate such rights, which 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 does not offer us a license to its intellectual property on reasonable terms, or at all, we may be required to develop alternative, non-infringing technology, which could require significant time (during which we would be unable to continue to offer our affected offerings), effort and expense and may ultimately not be successful. Any of these events could adversely affect our business, results of operations and financial condition.

 

***Our trademarks, copyrights, and other intellectual property could be unenforceable or ineffective***.

Intellectual property is a complex field of law in which few things are certain. Competitors may be able to design around our intellectual property, find prior art to invalidate it, or render the patents unenforceable through some other mechanism. If competitors can bypass our trademark and copyright protection without obtaining a sub-license, the Company's value will likely be materially and adversely impacted. This could also impair the Company's ability to compete in the marketplace. Moreover, if our trademarks and copyrights are deemed unenforceable, the Company will almost certainly lose any potential revenue it might be able to raise by entering into sub-licenses. This would cut off a significant potential revenue stream for the Company.

*The cost of enforcing our trademarks and copyrights could prevent us from enforcing them.*

Trademark and copyright litigation has become extremely expensive. Even if we believe that a competitor is infringing on one or more of our trademarks or copyrights, we might choose not to file suit because we lack the cash to successfully prosecute a multi-year litigation with an uncertain outcome, or because we believe that the cost of enforcing our trademark(s) or copyright(s) outweighs the value of winning the suit in light of the risks and consequences of losing it, or for some other reason. Choosing not to enforce our trademark(s) or copyright(s) could have adverse consequences for the Company, including undermining the credibility of our intellectual property, reducing our ability to enter into sublicenses, and weakening our attempts to prevent competitors from entering the market. As a result, if we are unable to enforce our trademark(s) or copyright(s) because of the cost of enforcement, your investment in the Company could be significantly and adversely affected.

 

 

*Changes in government regulation could adversely impact our business.*

The Company is subject to legislation and regulation at the federal and local levels and, in some instances, at the state level. We expect that court actions and regulatory proceedings will continue to refine our rights and obligations under applicable federal, state, and local laws, which cannot be predicted. Modifications to existing requirements or imposition of new requirements or limitations could adversely impact our business.

 

*Failure to obtain proper business licenses or other documentation or to otherwise comply with local laws and requirements regarding property management may result in civil or criminal penalties and restrictions on our ability to conduct business in that jurisdiction.*

Compliance with these requirements may render it more difficult for us and our financial services partners to operate or may raise our internal costs or the costs of our clients which may be passed on to us through less favorable commercial arrangements. While we have endeavored to comply with applicable requirements, the application of these requirements to persons operating online is not always clear and the failure to comply with any such applicable requirements may require us to expend significant capital and resources to investigate and remedy the noncompliance and subject us to litigation, regulatory enforcement action, fines, penalties, and other liability, which could adversely affect our business, financial condition and results of operations. Moreover, any of the licenses or rights currently held by us or our employees may be revoked prior to, or may not be renewed upon, their expiration. In addition, we or our employees may not be granted new licenses or rights for which they may be required to apply from time to time in the future.

 

*Changes in the regulation of the internet, mobile carriers and their partners could negatively affect our business.*

Our business is dependent on the continued growth and maintenance of the internet's infrastructure, as well as our ability to market products through channels such as e-mail and voice and text messaging. There can be no assurance that the internet's infrastructure will continue to be able to support the demands placed on it by sustained growth in the number of users and amount of traffic. To the extent that the internet's infrastructure is unable to support the demands placed on it, our business may be impacted. We may also be disadvantaged by the adverse effect of any delays or cancellations of private sector or government initiatives designed to expand broadband access. The reduction in the growth of, or a decline in, broadband and internet access poses a risk to us.

In addition, federal, state, and international government bodies and agencies have in the past adopted, and may in the future adopt, laws and regulations affecting the use of the internet as a commercial medium. Changes in these laws or regulations could adversely affect the demand for our products and services or require us to modify our products and services to comply with these changes. Laws, rules, and regulations governing advertising and e-commerce through internet communications and mobile carriers and their partners are dynamic, and the extent of future government regulation is uncertain. Federal and state regulations govern various aspects of our online business, including intellectual property ownership, infringement, and misappropriation, concerning trade secrets, the distribution of electronic communications, marketing and advertising, data privacy and security, search engines and internet tracking technologies. Future taxation on the use of the internet or e-commerce transactions could also be imposed. Existing or future regulation or taxation could hinder growth in or negatively impact the use of the internet generally, including the viability of internet e-commerce, which could reduce our revenue, increase our operating expenses, and expose us to significant liabilities.

 

*Security incidents or real or perceived errors, failures or bugs in our systems and platform could impair our operations, compromise our confidential information or our users' personal information, damage our reputation and brand, and harm our business and operating results.*

Our continued success depends on our systems, applications, and software continuing to operate and meet the changing needs of our customers and users and financial services partners. We rely on our technology and engineering staff and vendors to successfully implement changes to and maintain our systems and services efficiently and securely. Like all information systems and technology, our platform may contain or develop material errors, failures, vulnerabilities or bugs, particularly when new features or capabilities are released, and may be subject to computer viruses or malicious code, break-ins, phishing impersonation attacks, attempts to overload our servers with denial-of-service or other attacks, ransomware and similar incidents or disruptions from unauthorized use of our computer systems, as well as unintentional incidents causing data leakage, any of which could lead to interruptions, delays or shutdown of our platform.

Operating our business and products involves the collection, storage, use and transmission of large volumes of sensitive, proprietary and confidential information, including financial and personal information, pertaining to our current, prospective and past users, as well as our staff, contractors, and business partners. The security measures we take to protect this information may be breached as a result of computer malware, viruses, social engineering, ransomware attacks, account takeover attacks, hacking and cyberattacks, including by state-sponsored and other sophisticated organizations. Such incidents have become more prevalent in recent years. Our security measures could also be compromised by our personnel, theft, or errors, or be insufficient to prevent exploitation of security vulnerabilities in software or systems on which we rely. Such incidents may in the future result in unauthorized, unlawful or inappropriate use, destruction or disclosure of, access to, or inability to access the sensitive, proprietary, and confidential information that we handle. These incidents may remain undetected for extended periods.

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 promptly or implement adequate preventative measures. While we have developed systems and processes designed to protect the integrity, confidentiality, and security of our and our users' 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 confidence by both our users and financial services partners and damage our reputation and brand, reduce demand for our products, disrupt normal business operations, require us to expend significant capital and resources to investigate and remedy the incident and prevent a recurrence, and subject us to litigation, regulatory enforcement action, fines, penalties, and other liability, which could adversely affect our business, financial condition and results of operations. Even if we take steps that we believe are adequate to protect us from cyber threats, hacking against our competitors or other companies in our industry could create the perception among our users and financial services partners that our digital platform is not safe to use. Security incidents could also damage our IT systems and our ability to make the financial reports and other public disclosures required of public companies. These risks are likely to continue to increase as we continue to grow, process, store and transmit an increasingly larger and larger volume of data.

*We collect, store, use and otherwise process personal information, including financial information and other sensitive data, which subjects us to governmental regulation and other legal obligations related to data privacy and security. Our actual or perceived failure to comply with such obligations could harm our business.*

We collect, store, use and process personal information and other user data, including financial information, credit report information and other sensitive information for our users. We rely on this data provided to us by users and third parties to offer, improve and innovate our products. If we are unable to maintain and grow such data, we may be unable to provide users with a platform experience that is relevant, efficient, and effective, which could adversely affect our business, financial condition and results of operations.

There are numerous federal, state, and local laws and regulations regarding data privacy and the storing, sharing, use, processing, disclosure and protection of personal information and other user data, the scope of which is changing and subject to differing interpretations. In addition, as we continue to expand internationally, we are subject to foreign data privacy and security laws and regulations. These data privacy laws and regulations are complex, continue to evolve, and on occasion may be inconsistent between jurisdictions leading to uncertainty in interpreting such laws. We are also subject to the terms of our privacy policies and privacy-related obligations to third parties and regulators have increasingly scrutinized the handling of financial data. These laws, regulations, and other obligations may be interpreted and applied in a manner that is inconsistent from one regulatory body to another and may conflict with other rules or our practices.

Most of the jurisdictions in which we operate have established their data privacy and security legal frameworks. Failure to comply with these laws can result in regulatory fines or penalties. For example. the California Borrower Privacy Act (CCPA) created new data privacy rights for California-resident users, which was expanded when the California Privacy Rights Act (CPRA) went into effect in March 2023. On July 24, 2025, the California Privacy Protection Agency (Agency) Board adopted regulations that updated existing CCPA regulations. In addition, Virginia recently passed the borrower Data Protection Act, which went into effect at the same time as CPRA and many other states are considering enacting privacy laws. These laws, as well as any associated regulations, may increase our operating costs and potential liability (particularly in the event of a data breach), delay or impede the development of new products, and have a material adverse effect on our business, including how we use information about individuals, our financial condition and the results of our operations or prospects.

Any failure or perceived failure by us to comply with our privacy policies, our privacy-related obligations to users or other third parties, or our privacy-related legal obligations, or any compromise of security that results in the unauthorized release or transfer of personally identifiable information or other user data, may result in governmental enforcement actions, litigation or negative publicity and could cause our users and lenders to lose trust in us, which would have a material and adverse effect on our business. We may also be subject to remedies that may harm our business, including fines, demands or orders that we modify or cease existing or planned business practices.

*Data breaches or incidents involving our technology or products could damage its business, reputation and brand and substantially harm its business and results of operations.*

If the Company's data and network infrastructure were to fail, or if the Company were to suffer an interruption or degradation of services or other infrastructure environments, it could lose important manufacturing and technical data, which could harm its business. The Company's facilities, as well as the facilities of third parties that maintain or have access to the Company's data or network infrastructure, are vulnerable to damage or interruption from earthquakes, hurricanes, floods, fires, cyber security attacks, terrorist attacks, power losses, telecommunications failures and similar events. If the Company's or any third-party provider's systems or service abilities are hindered by any of the events discussed above, the Company's ability to operate may be impaired and its business could be adversely affected. A decision to close facilities without adequate notice, or other unanticipated problems, could adversely impact the Company's operations. The Company's infrastructure also could be subject to break-ins, cyber-attacks, sabotage, intentional acts of vandalism and other misconduct, from a spectrum of actors ranging in sophistication from threats common to most industries to more advanced and persistent, highly organized adversaries. Any security breach, including personal data breaches, or incident, including cybersecurity incidents, that the Company experiences could result in unauthorized access to, misuse of or unauthorized acquisition of its internal sensitive corporate data, such as financial data, intellectual property, or data related to contracts with commercial or government customers or partners. Such unauthorized access, misuse, acquisition, or modification of sensitive data may result in data loss, corruption or alteration, interruptions in the Company's operations or damage to the Company's computer hardware or systems or those of its employees and customers. Moreover, negative publicity arising from these types of disruptions could damage the Company's reputation.

Threats from malicious persons and groups, new vulnerabilities and advanced new attacks against information systems create a risk of cybersecurity incidents. These incidents can include but are not limited to, gaining unauthorized access to digital systems for purposes of misappropriating assets or sensitive information, corrupting data, or causing operational disruption. Because the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently and may not immediately produce signs of intrusion, the Company may be unable to anticipate these incidents or techniques, timely discover them or implement adequate preventative measures.

Over the past several years, cyber-attacks have become more prevalent and much harder to detect and defend against. The Company's network and storage applications may be vulnerable to cyber-attack, malicious intrusion, malfeasance, loss of data privacy or other significant disruption and may be subject to unauthorized access by hackers, employees, consultants or other service providers. In addition, hardware, software or applications the Company develops or procures from third parties may contain defects in design or manufacture or other problems that could unexpectedly compromise information security. Unauthorized parties may also attempt to gain access to the Company's systems or facilities through fraud, trickery or other forms of deceiving the Company's employees, contractors and temporary staff. As cyber threats continue to evolve, the Company may be required to expend significant additional resources to continue to modify or enhance its protective measures or to investigate and remediate any cybersecurity vulnerabilities. The Company does not currently have a cyber liability insurance policy and even if a policy is purchased, the Company cannot be certain that its coverage will be adequate for liabilities incurred or that insurance will continue to be available to it on economically reasonable terms, or at all.

The significant unavailability of the Company's services due to attacks could cause users to cease using the Company's services and materially adversely affect the Company's business, prospects, financial condition and results of operations. The Company uses software that it has developed, which the Company seeks to continually update and improve. Replacing such systems is often time-consuming and expensive and can also be intrusive to daily business operations. Further, the Company may not always be successful in executing these upgrades and improvements, which may occasionally fail its systems. The Company may experience periodic system interruptions from time to time. Any slowdown or failure of the Company's underlying technology infrastructure could harm its business, reputation and ability to execute its business plan, which could materially adversely affect its results of operations. The Company's disaster recovery plan or those of its third-party providers may be inadequate.

 

*Expenses or liabilities resulting from litigation could materially adversely affect our results of operations and financial condition.*

We may become party to various legal proceedings and other claims that arise in the ordinary course of business, or otherwise in the future. Such matters are subject to many uncertainties and outcomes are not predictable with assurance. In addition, any such claims or litigation may be time-consuming and costly, divert management resources, require us to change our platform, or have other adverse effects on our business. While we cannot assure the outcome of any legal proceeding or contingency in which we are or may become involved, we do not believe that any pending legal claim or proceeding arising in the ordinary course will be resolved in a manner that would have a material adverse effect on our business. However, if one or more of these legal matters resulted in an adverse monetary judgment against us, such a judgment could harm our results of operations and financial condition.

*Computer malware, viruses, ransomware, hacking, phishing attacks and similar disruptions could result in security and privacy breaches and interruptions and delays in services and operations, which could harm our business.*

Computer malware, viruses, physical or electronic break-ins and similar disruptions could lead to interruptions and delays in our services and operations and loss, misuse or theft of data. Computer malware, viruses, ransomware, hacking, phishing, and other attacks against online networks have become more prevalent and may occur on our systems in the future. We have implemented security measures, such as multi-factor authentication and security incident and event management tools. But any attempts by cyber attackers to disrupt our services or systems, if successful, could harm our business, introduce liability to data subjects, resulting in the misappropriation of funds, and be expensive to remedy and damage our reputation or brand. Insurance may not be sufficient to cover significant expenses and losses related to cyber-attacks. As cyber-attacks evolve, the cost of measures designed to prevent such attacks continues to increase, and we may not be able to cause the implementation or enforcement of such preventions with respect to 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 customers.

Service disruptions, outages and other performance problems can be caused by a variety of factors, including infrastructure changes, cyber-security threats, third-party service providers, human or software errors and capacity constraints. If our services are unavailable when users attempt to access them, they may seek other services, which could reduce demand for our solutions from target customers.

We plan to have processes and procedures in place designed to enable us to recover from a disaster or catastrophe and continue business operations. By way of example, these potential measures may include the following:

● industry standard targeted controls and security frameworks, including the National Institute of Standards and Technology (NIST), to protect our environment, including antivirus, antimalware, multi-factor authentication, complex and regularly changed passwords, patch management, email security and firewalls to protect our assets and our ability to maintain operations;

● use of technologies to help detect, identify and manage risks within our environments, including endpoint detect and response, security information and event management and vulnerability management;

● a formal cybersecurity incident response plan designed to respond to security incidents in a systematic and complete manner, and involves senior executives, external technical, legal and other resources, including an incident response retainer with our third-party security operations center;

● regularly monitoring and assessing our cybersecurity programs using external parties including a third-party 24/7 security operations center and by conducting periodic cyber maturity and risk assessments, penetration tests and other targeted controls assessments;

● central systems backup processes and associated disaster recovery plans;

● membership in an information sharing and analysis center and other industry groups so that we may stay informed about challenges specific to the financial services industry and contribute to the overall cybersecurity community; and

● employee training and awareness programs addressing cybersecurity and data privacy challenges we face in our industry.

However, there are several factors ranging from human error to data corruption that could materially impact the efficacy of such processes and procedures, including by lengthening the time services are partially or fully unavailable to customers and users. It may be difficult or impossible to perform some or all recovery steps and continue normal business operations due to the nature of a particular disaster or catastrophe, especially during peak periods, which could cause additional reputational damages, or loss of revenues, any of which could adversely affect our business and financial results.

RISKS RELATED TO OUR REGULATORY ENVIRONMENT

*Our business may be subject to a variety of regulations, many of which are overlapping, ambiguous and still developing, which could subject us to claims or otherwise harm our business.*

Aspects of our business may be subject to a variety of federal and state financial and other laws, including laws and state licensing requirements financial products and services, privacy and data security, investment advisory services, and other laws that are frequently evolving and developing. The scope and interpretation of such laws are often uncertain and may be conflicting or ambiguous. It is difficult to predict how existing laws, some of which were enacted before the widespread adoption of the internet and mobile devices, will be applied to our business and the new laws to which we may become subject. In addition, as our business grows into new markets or expands and we collect, use and share more user data internally and with financial services partners, we may become subject to additional laws and regulations.

If we are not able to comply with applicable financial and other laws or regulations or if we become liable under these laws or regulations, we could be directly harmed, and we may be forced to implement new measures to reduce our exposure to this liability. This may require us to expend substantial resources or discontinue certain products or features, which would negatively affect our business. In addition, negative publicity resulting from regulatory actions against us or others in our industry could harm our reputation or otherwise impact the growth of our business. Any costs incurred to prevent or mitigate this potential liability could also harm our business, financial condition and operating results.

*Litigation, regulatory actions and compliance issues could subject us to significant fines, penalties, judgments, remediation costs or requirements resulting in increased expenses.*

In the ordinary course of business, we may be named as a defendant in various categories of legal actions, including class action lawsuits and other litigation. These legal actions are inherently unpredictable and, regardless of the merits of the claims, litigation is often expensive, time-consuming, disruptive to our operations and resources, and distracting to management. In addition, certain actions may include claims for indeterminate amounts of damages. Our involvement in any such matter also could cause significant harm to our or our lending partners' reputations and divert management attention from the operation of our business, even if the matters are ultimately determined in our favor. If resolved against us, legal actions could result in excessive verdicts and judgments, injunctive relief, equitable relief, and other adverse consequences that may affect our financial condition and how we operate our business.

In addition, many participants in the consumer financial services industry have been the subject of putative class action lawsuits, state attorney general actions and other state regulatory actions, and federal regulatory enforcement actions, including actions relating to alleged unfair, deceptive or abusive acts or practices, violations of state licensing and lending laws, including state usury and disclosure laws, actions alleging discrimination based on race, ethnicity, gender or other prohibited bases, and allegations of noncompliance with various state and federal laws and regulations relating to originating, servicing, and collecting consumer finance loans and other consumer financial services and products. The current regulatory environment increased regulatory compliance efforts and enhanced regulatory enforcement have resulted in us undertaking significant time-consuming and expensive operational and compliance improvement efforts, which may delay or preclude our or our bank partners' ability to provide certain new products and services. There is no assurance that these regulatory matters or other factors will not, in the future, affect how we conduct our business and, in turn, have a material adverse effect on our business. In particular, legal proceedings brought under state consumer protection statutes or under several of the various federal consumer financial services statutes may result in a separate fine assessed for each statutory and regulatory violation or substantial damages from class action lawsuits, potentially more than the amounts we earned from the underlying activities.

Some of our agreements used in the course of our business include arbitration clauses. If our arbitration agreements were to become unenforceable for any reason, we could experience an increase to our litigation costs and exposure to potentially damaging tenant-landlord lawsuits, with a potential material adverse effect on our business and results of operations.

We contest our liability and the amount of damages, as appropriate, in each pending matter. The outcome of pending and future matters could be material to our results of operations, financial condition and cash flows, and could materially adversely affect our business.

In addition, from time to time, through our operational and compliance controls, we identify compliance issues that require us to make operational changes and, depending on the nature of the issue, result in financial remediation to impacted clients and platform users. These self-identified issues and voluntary remediation payments could be significant, depending on the issue and the number of clients and platform users impacted and could generate litigation or regulatory investigations that subject us to additional risk.

RISKS RELATED TO TAXATION

 

*We are subject to income taxes as well as non-income-based taxes, such as payroll, sales, use, value-added, net worth, property and goods and services taxes.*

Significant judgment is required in determining our provision for income taxes and other tax liabilities. In the ordinary course of our business, there are many transactions and calculations where the ultimate tax determination is uncertain. Although we believe that our tax estimates are reasonable: a) there is no assurance that the final determination of tax audits or tax disputes will not be different from what is reflected in our income tax provisions, expense amounts for non-income-based taxes and accruals, and b) any material differences could have an adverse effect on our financial position and results of operations in the period or periods for which determination is made.

 

*We have made significant estimates and judgments in calculating our income tax provision and other tax assets and liabilities. If these estimates or judgments are incorrect, our operating results and financial condition may be materially affected.*

We are subject to regular review and audit by tax authorities. Any adverse outcome of such a review or audit could negatively affect our operating results and financial condition. In addition, the determination of our provision for income taxes and other tax assets and liabilities requires significant judgment, and there are many transactions and calculations where the ultimate tax determination is uncertain at the present time. Although we believe our estimates and judgments are reasonable, the ultimate tax outcome may differ from the amounts recorded in our financial statements and may have a material effect on our operating results and financial condition.

*Changes in tax laws could have a material adverse effect on our business, financial condition and results of operations.*

Changes in tax laws could have a material adverse effect on our business, financial condition and results of operations. For example, the Tax Cuts and Jobs Act passed in 2017 contained significant changes to U.S. tax law, including a reduction in the corporate tax rate and a moved towards a new territorial system of taxation. The primary impact of the Tax Act on our provision for income taxes was a reduction of the future tax benefits of our deferred tax assets as a result of the reduction in the corporate tax rate. The impact of the Tax Act may be subject to ongoing technical guidance and accounting interpretation, which we will continue to monitor and assess. As we expand the scale of our business activities, any changes in the U.S. taxation of such activities may increase our effective tax rate and harm our business, financial condition and results of operations.

We are subject to taxes in the United States under federal, state and local jurisdictions in which we operate. The governing tax laws and applicable tax rates vary by jurisdiction and are subject to interpretation and macroeconomic, political or other factors. We may be subject to examination in the future by federal, state and local authorities on income, employment, sales and other tax matters. While we regularly assess the likelihood of adverse outcomes from such examinations and the adequacy of our provision for taxes, there can be no assurance that such provision is sufficient and that a determination by a tax authority would not have an adverse effect on our business, financial condition and results of operations. Various tax authorities may disagree with tax positions we take and if any such tax authorities were to successfully challenge one or more of our tax positions, the results could adversely affect our financial condition. Further, the ultimate amount of tax payable in a given financial statement period may be impacted by sudden or unforeseen changes in tax laws, changes in the mix and level of earnings by taxing jurisdictions, or changes to existing accounting rules or regulations. The determination of our overall provision for income and other taxes is inherently uncertain as it requires significant judgment around complex transactions and calculations. As a result, fluctuations in our ultimate tax obligations may differ materially from amounts recorded in our financial statements and could adversely affect our business, financial condition and results of operations in the periods for which such determination is made.

*Taxing authorities may successfully assert that we should have collected or in the future should collect sales and use, gross receipts, value-added or similar taxes and may successfully impose additional obligations on us, and any such assessments or obligations could adversely affect our business, financial condition and results of operations.*

The application of indirect taxes, such as sales and use tax, value-added tax, goods and services tax, business tax and gross receipts tax, to platform businesses is a complex and evolving issue. Many of the fundamental statutes and regulations that impose these taxes were established before the adoption and growth of the internet and e-commerce. Significant judgment is required on an ongoing basis to evaluate applicable tax obligations and as a result, amounts recorded are estimates and are subject to adjustments. In many cases, the ultimate tax determination is uncertain because it is not clear how new and existing statutes might apply to our business. In addition, governments are increasingly looking for ways to increase revenue, which has resulted in discussions about tax reform and other legislative actions to increase tax revenue, including through indirect taxes. Such taxes could adversely affect our financial condition and results of operations.

We may face various indirect tax audits in various U.S. jurisdictions. In certain jurisdictions, we collect and remit indirect taxes. However, tax authorities may raise questions about or challenge or disagree with our calculation, reporting or collection of taxes and may require us to collect taxes in jurisdictions in which we do not currently do so or to remit additional taxes and interest, and could impose associated penalties and fees. A successful assertion by one or more tax authorities requiring us to collect taxes in jurisdictions in which we do not currently do so or to collect additional taxes in a jurisdiction in which we currently collect taxes, could result in substantial tax liabilities, including taxes on past sales, as well as penalties and interest, could harm our business, financial condition and results of operations. Although we have reserved for potential payments of possible past tax liabilities in our financial statements, if these liabilities exceed such reserves, our financial condition will be harmed.

As a result of these and other factors, the ultimate amount of tax obligations owed may differ from the amounts recorded in our financial statements and any such difference may adversely impact our results of operations in future periods in which we change our estimates of our tax obligations or in which the ultimate tax outcome is determined.

*Reclassification of independent contractors as employees could increase our costs and expose us to penalties.*

We engage certain tenant service providers as independent contractors. While we believe these individuals are properly classified as independent contractors under applicable laws, there is a risk that federal, state, or local authorities could challenge this classification. If these contractors are deemed to be employees, we could become liable for back taxes, including payroll taxes and unemployment insurance, as well as penalties. We may also be required to reimburse wages and benefits, such as overtime pay, health insurance, or retirement contributions. Additionally, reclassification claims could result in increased legal or administrative costs and potential disruptions to our operations. Changes in applicable laws, enforcement priorities, or interpretations of existing regulations could further increase the likelihood of reclassification, which could adversely affect our business, financial condition, and results of operations.

 

RISKS RELATED TO THIS OFFERING AND OWNERSHIP OF OUR SECURITIES

 

*Concentration of ownership of our voting stock by the Controlling Group may limit the ability of new investors to influence significant corporate decisions.*

 

Based on our common stock outstanding as of the date of this prospectus and including the shares to be sold in this offering, upon the closing of this offering, the Controlling Group, will, in the aggregate, beneficially own approximately 28% of our outstanding common stock and all 5,000 shares of our Series X Preferred Stock, which provides for 1,000 votes per share when voting with the common stock, representing 49.99% of the total voting power of our capital stock, assuming no exercise of the underwriters' over-allotment option. Although the Controlling Group will not constitute a majority of the total voting power and we will not be a "controlled company" within the meaning of Nasdaq corporate governance standards, the Controlling Group will nonetheless hold substantial influence over matters requiring stockholder approval, including the election and removal of directors and any merger or other significant corporate transactions. The interests of the Controlling Group may not coincide with the interests of other stockholders.

The Controlling Group may have interests different than yours and may vote in a way with which you disagree and that may be adverse to your interests. In addition, the Controlling Group's concentration of ownership could have the effect of delaying or preventing a change in control or otherwise discouraging a potential acquirer from attempting to obtain control of us, which could cause the market price of our common stock to decline or prevent our stockholders from realizing a premium over the market price for their common stock. The Controlling Group may also seek to cause the Company to pursue strategies that deviate from the interests of other stockholders.

***There is no prior public market for our common stock, and there can be no assurances that a viable public market for our common stock will develop.***

 ****

Prior to the offering, there has not been a public trading market for our common stock. We have applied to have our common stock listed for trading on Nasdaq under the symbol "CLBZ," subject to completion of the offering and compliance with certain conditions. However, there can be no assurance that an active trading market will develop or be sustained after the offering. If an active and liquid trading market is not sustained, you may have difficulty selling any of our securities that you purchase at a price above the price you purchase it or at all. The failure of an active and liquid trading market to continue would likely have a material adverse effect on the value of our securities. The market price of our securities may decline below the public offering price, and you may not be able to sell your securities at or above the price you paid or at all. An inactive market may also impair our ability to raise capital to continue to fund operations by selling securities and may impair our ability to acquire other companies or technologies by using our securities as consideration.

***The market price of our common stock may be highly volatile, and you could lose all or part of your investment.***

The trading price of our common stock is likely to be volatile. Upon the consummation of this offering, we will have a relatively small public float due to the relatively small size of the offering, and the concentrated ownership of our common stock among our executive officers, directors, and greater than 5% stockholders. As a result of our small public float, our common stock may be less liquid and have greater stock price volatility than the common stock of companies with broader public ownership.

Our stock price could be subject to wide fluctuations in response to a variety of other factors, which include:

● whether we achieve our anticipated corporate objectives;

● changes in financial or operational estimates or projections;

● termination of the lock-up agreement or other restrictions on the ability of our stockholders and other security holders to sell shares after this offering; and

● general economic or political conditions in the United States or elsewhere.

In addition, the stock market in general has recently experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of these companies. Such rapid and substantial price volatility, including any stock run-up, may be unrelated to our actual or expected operating performance and financial condition or prospects, making it difficult for prospective investors to assess the rapidly changing value of our stock. This volatility may prevent you from being able to sell your securities at or above the price you paid for your securities. If the market price of our common stock after the offering does not exceed the offering price, you may not realize any return on your investment in us and may lose some or all of your investment.

***While we are seeking to list our common stock on Nasdaq, there is no assurance that our common stock will be listed on Nasdaq. Even if we meet the initial listing requirements of the Nasdaq Capital Market, there can be no assurance that we will be able to comply with the continued listing standards of the Nasdaq Capital Market, a failure of which could result in the delisting of our common stock.***

While we are seeking to list our common stock on Nasdaq, we cannot ensure that such securities will be accepted for listing on Nasdaq. Even if our common stock is listed on Nasdaq, Nasdaq requires that the trading price of its listed stocks remain above $1.00 for the stock to remain listed. If a listed stock trades below $1.00 for more than 30 consecutive trading days, we will receive a deficiency notice from Nasdaq and be at risk of delisting. While we would have an initial 180-day period to regain compliance, there can be no assurance that we will be able to do so and ultimately could result in our shares of common stock being delisted. In addition, to maintain a listing on the Nasdaq, we must satisfy minimum financial and other continued listing requirements and standards, including those regarding director independence and independent committee requirements, minimum stockholders' equity, and certain corporate governance requirements. If we are unable to satisfy these requirements or standards, we could be subject to delisting, which would have a negative effect on the price of our securities and would impair your ability to sell or purchase your securities when you wish to do so. In the event of a delisting, we would expect to take actions to restore our compliance with the listing requirements, but we cannot assure that any such action taken by us would allow our common stock to become listed again, stabilize the market price or improve the liquidity of our common stock, prevent our common stock from dropping below the minimum bid price requirement, or prevent future non-compliance with the listing requirements.

*The market price, trading volume and marketability of our securities may, from time to time, be significantly affected by numerous factors beyond our control, which may materially adversely affect the market price of your securities, the marketability of your securities and our ability to raise capital through future equity financings.*

The market price and trading volume of our securities may fluctuate significantly. Many factors that are beyond our control may materially adversely affect the market price of your securities, the marketability of your securities and our ability to raise capital through equity financings. These factors include the following:

● actual or anticipated variations in our periodic operating results,

● increases in market interest rates that lead investors of our securities to demand a higher investment return,

● changes in earnings estimates,

● changes in market valuations of similar companies,

● actions or announcements by our competitors,

● adverse market reaction to any increased indebtedness we may incur in the future,

● additions or departures of key personnel,

● actions by stockholders,

● speculation in the media, online forums, or investment community, and

● our intentions and ability to list our securities on Nasdaq and our subsequent ability to maintain such listing (if approved).

*The requirements of being a public company may strain our resources, divert management's attention and affect our ability to attract and retain qualified board members.*

As a public company, we are subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act, the Dodd-Frank Act, the listing requirements of the Nasdaq Capital Markets and other applicable securities rules and regulations. Compliance with these rules and regulations will increase our legal and financial compliance costs, make some activities more difficult, time-consuming or costly and increase demand on our systems and resources, especially once we are no longer an "emerging growth company." The Exchange Act requires, among other things, that we file annual, quarterly and current reports with respect to our business and results of operations. In addition, we expect that our management and other personnel will need to divert their attention from operational and other business matters to devote substantial time to these public company requirements. We cannot predict or estimate the amount of additional costs we may incur as a result of becoming a public company or the timing of such costs.

We also expect that being a public company will make it more expensive for us to maintain director and officer liability insurance, and we may be required to accept reduced coverage, incur substantially higher costs to obtain coverage or only obtain coverage with a significant deductible. These factors could also make it more difficult for us to attract and retain qualified executive officers and qualified members of our Board of Directors, particularly to serve on our audit committee and compensation committee.

In addition, changing laws, regulations and standards relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing legal and financial compliance costs and making some activities more time-consuming. These laws, regulations and standards are subject to varying interpretations in many cases due to their lack of specificity, and, as a result, their application in practice may evolve as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We invest resources to comply with evolving laws, regulations and standards, and this investment may result in increased general and administrative expenses and a diversion of management's time and attention from revenue-generating activities to compliance activities. If notwithstanding our efforts, we fail to comply with new laws, regulations and standards or our efforts differ from the activities intended by regulatory or governing bodies due to ambiguities related to their application and practice, regulatory authorities may initiate legal proceedings against us, and our business may be adversely affected.

*We are an "emerging growth company" and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make our common stock less attractive to investors.*

 

We are an "emerging growth company" as defined under the Section 2(a) of the Securities Act, and we intend to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies," including not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. In addition, emerging growth companies can delay the adoption of certain new or revised accounting standards until those standards would otherwise apply to private companies. We have elected to avail ourselves of this exemption from new or revised accounting standards and, therefore, we will not be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies or that have opted out of using such extended transition period, which may make a comparison of our financial statements with those of other public companies more difficult. We may take advantage of these exemptions for so long as we are an "emerging growth company." We cannot predict if investors will find our common stock less attractive to the extent that we rely on these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and the price of our common stock may be more volatile.

*Our management has broad discretion as to the use of the net proceeds from this offering.*

Our management will have broad discretion in the application of the net proceeds of this offering. Accordingly, you will have to rely upon the judgment of our management with respect to the use of these proceeds. We intend to use the proceeds of this offering for business development, system development, and general corporate purposes, including capital expenditures and working capital. Our management may spend a portion or all of the net proceeds from this offering in ways that holders of our securities may not desire or that may not yield a significant return or any return at all. Our management not applying these funds effectively could harm our business. Pending their use, we may also invest the net proceeds from this offering in a manner that does not produce income or that loses value. See "*Use of Proceeds*" for more information.

*You will experience immediate and substantial dilution as a result of this offering.*

As of March 31, 2026, our net book value was approximately $4.0 million or approximately $0.77 per share. Since the price per share being offered in this offering is substantially higher than the pro forma as adjusted net tangible book value per common stock, you will suffer substantial dilution concerning the net tangible book value of the shares you purchase in this offering. Based on the assumed public offering price of $4.00 per share being sold in this offering, and our pro forma as adjusted net tangible book value per share as of March 31, 2026, if you purchase shares in this offering, you will suffer immediate and substantial dilution of $2.05 per share (or $1.94 per share if the underwriters exercise the over-allotment option in full) concerning the net tangible book value of our common stock. See "*Dilution*" for a more detailed discussion of the dilution you will incur if you purchase securities in this offering.

*Future sales of our securities may affect the market price of our securities.*

We cannot predict what effect, if any, future sales of our securities, or the availability of securities for future sale, will have on the market price of our securities. Sales of substantial amounts of our securities in the public market, or the perception that such sales could occur, could materially adversely affect the market price of our securities and may make it more difficult for you to sell your securities at a time and price which you deem appropriate.

Except for our officers, directors, and substantially all of the remaining stockholders (including the shares of common stock issuable upon the automatic conversion of our outstanding SAFE agreements and Series B and Series C Preferred Stock upon the closing of this offering) as of the effective date of the registration statement of which this prospectus is a part, a small number of minority stockholders have not and may not enter into lock-up agreements with the underwriters. Any sales of the stockholders who have not entered into the lock-up agreements, or sales after the lock-up period by our stockholders, could have an immediate adverse effect on the price of our common stock.

*A substantial portion of the outstanding shares of our common stock are restricted from immediate resale but may be sold on a stock exchange in the near future. The large number of shares of our capital stock eligible for public sale could depress the market price of our common stock.*

The market price of our common stock could decline as a result of sales of a large number of shares of our common stock in the market, and the perception that these sales could occur may also depress the market price of our common stock. In connection with our initial public offering, our executive officers, directors, and substantially all of the remaining stockholders (including the shares of common stock issuable upon the automatic conversion of our outstanding SAFE agreements and Series B and Series C Preferred Stock upon the closing of this offering) as of the effective date of the registration statement of which this prospectus is a part entered or will enter into market standoff agreements with us, which restricts the sale of our shares of common stock, or enter into lock-up agreements with the underwriters under which they have agreed, subject to specific exceptions, not to sell any of our stock for 180 days after the closing of this offering. We refer to such period as the "lock-up period." For instance, we have entered into five joint ventures with five unaffiliated entities (collectively, the "Local Members") pursuant to which the Local Members from the date of consummation of this offering until the six (6)-month anniversary thereof or such longer period as required by the underwriters in connection with this offering, agree to lock up all shares received in all equity issuances consummated prior to the date of the consummation of this offering pursuant to a lock up agreement in form and substance satisfactory to us. In addition, the underwriters may, at their discretion, release all or some portion of the shares subject to lock-up agreements before the expiration of the lock-up period. Sales of a substantial number of such shares upon expiration, or the perception that such sales may occur, or early release of the lock-up, could cause our share price to fall or make it more difficult for you to sell your common stock at a time and price that you deem appropriate.

*We may issue additional debt and equity securities, which are senior to our common stock as to distributions and in liquidation, which could materially adversely affect the market price of our securities.*

In the future, we may attempt to increase our capital resources by entering into additional debt or debt-like financing that is secured by all or up to all of our assets, or issuing debt or equity securities, which could include issuances of commercial paper, medium-term notes, senior notes, subordinated notes or shares. In the event of our liquidation, our lenders and holders of our debt securities would receive a distribution of our available assets before distributions to our stockholders.

 

Any additional preferred securities, if issued by our company, may have a preference with respect to distributions and upon liquidation, which could further limit our ability to make distributions to our common stockholders. Because our decision to incur debt and issue securities in our future offerings will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings and debt financing.

Further, market conditions could require us to accept less favorable terms for the issuance of our securities in the future. Thus, you will bear the risk of our future offerings reducing the value of your securities and diluting your interest in us. In addition, we can change our leverage strategy from time to time without the approval of holders of our common stock, which could materially adversely affect the market share price of our securities.

 

*We do not intend to pay dividends for the foreseeable future on our common stock.*

Since our incorporation, we have not declared or paid any cash dividends on our common stock. We intend to continue with the same policy, and currently intend to retain any future earnings to finance the operation and expansion of our business, and we do not expect to declare or pay any dividends on our common stock in the foreseeable future. However, dividends on our outstanding Series B Preferred Stock and Series C Preferred Stock have been accruing since January 1, 2026, in the case of the Series B Preferred Stock, and their date of issuance, in case of the Series C Preferred Stock, and will convert into shares of common stock upon the closing of this offering, which will result in dilution to purchasers in this offering. In addition, the terms of any future debt agreements may preclude us from paying dividends. As a result, capital appreciation of our common stock, if any, will be the only way for stockholders to realize any future gains on their investment in the foreseeable future.

*Our potential future earnings and cash distributions to our stockholders may affect the market price of our securities.*

Generally, the market price of our securities may be based, in part, on the market's perception of our growth potential and our current and potential future cash distributions, whether from operations, sales, acquisitions or refinancings, and on the value of our businesses. For that reason, our securities may trade at prices that are higher or lower than our net asset value per share. Should we retain operating cash flow for investment purposes or working capital reserves instead of distributing the cash flows to our stockholders, the retained funds, while increasing the value of our underlying assets, may materially adversely affect the market price of our securities. Our failure to meet market expectations with respect to earnings and cash distributions and our failure to make such distributions, for any reason whatsoever, could materially adversely affect the market price of our securities.

 

*Were our securities to be considered a penny stock, and therefore become subject to the penny stock rules, U.S. broker-dealers may be discouraged from effecting transactions in our securities.*

Our securities may be subject to the penny stock rules under the Exchange Act. The SEC rules define a "penny stock," as any equity security that has a market price of less than $5.00 per share or with an exercise price of less than $5.00 per share, subject to certain exceptions. For any transaction involving a penny stock, unless exempt, broker-dealers that derive more than 5% of their customer transaction revenues from transactions in penny stocks are required to deliver a standardized risk disclosure document that provides information about penny stocks, and the nature and level of risks in the penny stock market, to any non-institutional customer to whom the broker-dealer recommends a penny stock transaction. The broker-dealer must also provide the customer with the current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson and monthly account statements showing the market value of each penny stock held in the customer's account. The bid and offer quotations and the broker-dealer and salesperson compensation information must be given to the customer orally or in writing before completing the transaction and must be given to the customer in writing before or with the customer's confirmation. In addition, the penny stock rules require that before a transaction, the broker and/or dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction. The transaction costs associated with penny stocks are high, reducing the number of broker-dealers who may be willing to engage in the trading of our securities. These additional penny stock disclosure requirements are burdensome and may reduce all the trading activity in the market for our securities. As long as our securities are subject to the penny stock rules, the holders of our securities may find it more difficult to sell their securities and cause a decline in the market value of our stock.

 

*Our common stock market price and trading volume could decline if equity or industry analysts do not publish research or publish inaccurate or unfavorable research about our business.*

The trading market for our common stock will depend in part on the research and reports that equity or industry analysts publish about us or our business. The analysts' estimates are based upon their own opinions and are often different from our estimates or expectations. If one or more of the analysts who cover us downgrade our common stock or publish inaccurate or unfavorable research about our business, the price of our securities would likely decline. If few securities analysts commence coverage of us, or if one or more of these analysts cease coverage of us or fail to publish reports on us regularly, demand for our securities could decrease, which might cause the price and trading volume of our common stock to decline.

GENERAL RISK FACTORS

 

*We may make decisions based on the best interests of our users to build long-term trust that may result in us forgoing short-term gains.*

One of our fundamental values is to build our business by making decisions based on the best interests of our users, which we believe has been essential to our success in building user trust in our platform and increasing our user growth rate and engagement. We believe this best serves the long-term interests of our company and our stockholders. In the past, we have forgone, and we may in the future continue to forgo, certain expansion or short-term revenue opportunities that we do not believe are in the best interests of our platform and our users, even if such decisions adversely affect our results of operations in the short term.

*We may not be able to expand into new markets.*

While a key part of our business strategy is to engage users in our existing markets, we also intend to expand our operations into new markets. In doing so, we may incur losses or otherwise fail to enter new markets successfully. Our expansion into new markets may place us in unfamiliar competitive environments and involve various risks, including competition, government regulation, the need to invest significant resources and the possibility that returns on such investments will not be achieved for several years or at all. Many factors could negatively affect our ability to grow our user base and engagement, including if:

● we lose users to new market entrants and/or existing competitors;

● we do not obtain regulatory approvals necessary for expansion into new verticals, geographies or to launch new product features and tools;

● we fail to effectively use search engines, social media platforms, digital app stores, content-based online advertising, and other online sources for generating traffic to our platform;

● our platform experiences disruptions or outages;

● we suffer reputational harm to our brand including from negative publicity, whether accurate or inaccurate;

● we fail to expand geographically;

● we fail to offer new and competitive products, provide effective updates to our existing products or keep pace with technological improvements in our industry;

● technical or other problems frustrate the user experience;

● we are unable to address user concerns regarding the content, privacy, and security of our digital platform;

● we are unable to continue to innovate and improve our platform by generating compelling content and tools;

● existing or new financial services providers use incentives to directly cross-sell their products, reducing borrower benefits of using multiple providers; or

● we are unable to successfully launch new verticals.

Our inability to overcome these challenges could impair our ability to engage users and could harm our business, operating results, and financial condition.

*The occurrence of natural disasters may adversely affect our business, financial condition and results of operations following our business combination.*

The occurrence of natural disasters, including hurricanes, floods, earthquakes, tornadoes, fires and pandemic diseases may adversely affect our business, financial condition or results of operations. The potential impact of a natural disaster on our results of operations and financial position is speculative and would depend on numerous factors. The extent and severity of these natural disasters determine their effect on a given economy. Although the long-term effect of diseases such as the COVID-19 "coronavirus," H5N1 "avian flu," or H1N1, the swine flu, cannot currently be predicted, previous occurrences of avian flu and swine flu had an adverse effect on the economies of those countries in which they were most prevalent. An outbreak of a communicable disease in our market could adversely affect our business, financial condition and results of operations, and timely reporting obligations under the current offering. We cannot assure you that natural disasters will not occur in the future or that our business, financial condition and results of operations will not be adversely affected.

*Damage to our reputation could negatively impact our business, financial condition, and results of operations.*

Our reputation and the quality of our brand are critical to our business and success in existing markets and will be critical to our success as we enter new markets. Any incident that erodes consumer loyalty to our brand could significantly reduce its value and damage our business. We may be adversely affected by any negative publicity, regardless of its accuracy. Also, there has been a marked increase in the use of social media platforms and similar devices, including blogs, social media websites and other forms of internet-based communications that provide individuals with access to a broad audience of consumers and other interested persons. The availability of information on social media platforms is virtually immediate as its impact is. The information posted may be adverse to our interests or may be inaccurate, each of which may harm our performance, prospects or business. The harm may be immediate and may disseminate rapidly and broadly, without affording us an opportunity for redress or correction.

*The Russian-Ukrainian Conflict may adversely affect our business, financial condition and results.*

In February 2022, the Russian Federation and Belarus commenced military action against Ukraine. The specific impact on our financial condition, results of operations, and cash flows is not determinable as of the date hereof. However, to the extent that such military action spreads to other countries, intensifies, or otherwise remains active, or that other countries or military alliances become directly involved or increase their involvement in the war, such action could have a material adverse effect on our financial condition, results of operations, and cash flows.

USE OF PROCEEDS

After deducting the estimated underwriters' commissions and estimated offering expenses payable by us, we expect to receive net proceeds of approximately $17.9 million from this offering (or approximately $20.66 million if the underwriters exercise their over-allotment option in full), based on an assumed initial public offering price of $4.00 per share.

We currently anticipate an approximate allocation of the net proceeds from this offering as follows:

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| | |
|:---|:---|
| Sales and Marketing | $4500000 |
| System development | 3000000 |
| Working capital and general corporate purposes | 10400000 |
| **TOTAL** | $17900000 |

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We may change the amount of net proceeds to be used specifically for any of the foregoing purposes. The amounts and timing of our actual expenditures will depend upon numerous factors, including our sales and marketing and commercialization efforts, demand for our products, our operating costs and the other factors described under "Risk Factors" in this prospectus. Accordingly, our management will have significant discretion and flexibility in applying the net proceeds from this offering. Pending any use, as described above, we intend to invest the net proceeds in high-quality, short-term, interest-bearing securities.

We do not currently have any intention of using the net proceeds of this offering for any acquisitions nor do we have any verbal or written agreements with any third parties. However, the board might decide to use some of the net proceeds for an acquisition if the Company becomes aware of a suitable target company.

Each $1.00 increase (decrease) in the assumed initial public offering price of $4.00 per share would increase (decrease) the net proceeds to us from this offering by approximately $4.6 million, assuming the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. Each increase (decrease) of 100,000 in the number of shares we are offering would increase (decrease) the net proceeds to us from this offering, after deducting underwriting discounts and commissions and estimated offering expenses payable by us, by approximately $0.4 million, assuming the assumed initial public offering price stays the same.

DIVIDENDS AND DIVIDEND POLICY

Since our inception, we have not declared or paid any cash dividends on our common stock. We intend to continue with the same policy and currently intend to retain all available funds and any future earnings to support our operations and finance the growth and development of our business. Any future determination related to our dividend policy will be made at the discretion of our board of directors, subject to applicable laws, and will depend upon, among other factors, our results of operations, financial condition, capital requirements, contractual restrictions, business prospects and other factors our board of directors may deem relevant, and subject to the restrictions contained in any future financing instruments.

Notwithstanding the foregoing, dividends on our Series B Preferred Stock have been accruing at the rate of 8% per annum, or $0.32 annually per share, since January 1, 2026, compounding quarterly. Dividends on our Series C Preferred Stock accrue cumulatively, whether or not declared, at a rate of 8% per annum since the date of issuance beginning in January 2026. Upon the closing of this offering, all accrued and unpaid dividends on the Series B Preferred Stock and Series C Preferred Stock will automatically convert into shares of common stock along with the underlying preferred stock. See "*Description of Securities — Series B Preferred Stock*" and "*Description of Securities — Series C Preferred Stock*" for additional information regarding the dividend terms of our preferred stock.

CAPITALIZATION

The following table sets forth our capitalization as of March 31, 2026:

● on an actual basis;

● on a pro forma basis, which includes the effect of the issuance of the remaining 62,000 shares of Series C Preferred Stock for an aggregate purchase price of $248,000 which was received in May 2026. As of March 31, 2026, the Company has already issued 688,250 shares of Series C Preferred Stock for a total purchase price of $2,753,000, which is currently held in escrow (in addition to $9,575 in accrued interest) and is considered within restricted cash per the pro forma balance sheet; and

● on a pro forma as adjusted basis to reflect the issuance of (i) 5,000,000 shares of common stock in this offering, after deducting underwriting discounts and commissions, non-accountable expense allowance and estimated offering expenses payable by us; (ii) 8,333 shares of common stock upon the automatic conversion of $25,000 of the 2023 SAFE, at the closing of this offering, calculated assuming an initial public offering price of $4.00; (iii) 100,000 shares of common stock to be issued at the closing of this offering to certain advisors of the Company in consideration for services rendered, (iv) 285,714 shares of common stock issuable upon the conversion of 200,000 shares of Series B Preferred Stock at the closing of this offering, (v) 20,139 shares of common stock issuable upon the conversion of accrued and unpaid dividends on the Series B Preferred Stock and Series C Preferred Stock at the closing of this offering, calculated based on accrued dividends as of March 31, 2026 (the actual number of shares issuable will be higher at closing because dividends continue to accrue through the closing date), and (vi) 833,611 shares of common stock issuable upon the conversion of 750,250 shares of Series C Preferred Stock at the closing of this offering. The table below assumes no exercise by the underwriters of their over-allotment option.

The pro forma as adjusted information below is illustrative only and our capitalization following the completion of this offering is subject to adjustment based on the public offering price of the shares of our common stock and other terms of this offering determined at pricing. You should read this table together with our financial statements and the related notes included elsewhere in this prospectus and the information under "*Management's Discussion and Analysis of Financial Condition and Results of Operations*."

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| | | | |
|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Actual** | **Pro Forma** | **Pro Forma as<br> Adjusted (1) (2)** |
| Cash | $10794 | $10794 | $20921369 |
| Due to related parties | 30001 | 30001 | 30001 |
| Future equity obligations | 25000 | 25000 | - |
| Total liabilities | 55001 | 55001 | 30001 |
| Redeemable convertible preferred stock, $0.001 par value, 10,000,000 shares authorized, 1,250,000 designated as Series C; 688,250 shares issued and outstanding as of March 31, 2026, actual; 750,250 shares issued and outstanding, pro forma; 0 shares issued and outstanding, pro forma as adjusted | 2792615 | 3040615 |  |
| Common stock subject to possible redemption, $0.001 par value, 10,000 shares issued and outstanding, actual, 60,000 shares issued and outstanding, pro forma, 0 shares pro forma as adjusted | 120000 | 120000 |  |
| Stockholders' equity: |  |  |  |
| Preferred stock, $0.001 par value, 10,000,000 shares authorized |  |  |  |
| Series B preferred stock, 1,250,000 shares authorized, 200,000 shares issued and outstanding, actual, 200,000 shares issued and outstanding, pro forma, 0 shares issued and outstanding, pro forma as adjusted | 200 | 200 |  |
| Series X preferred stock, 5,000 shares issued and outstanding, actual, pro forma and pro forma as adjusted | 5 | 5 | 5 |
| Common stock, $0.001 par value, 190,000,000 shares authorized, 5,091,391 shares issued and outstanding, actual, 5,091,391 issued and outstanding, pro forma, 11,399,189 shares issued and outstanding, pro forma as adjusted | 5092 | 5092 | 11399 |
| Additional paid-in capital | 1164513 | 1164513 | 21948834 |
| Retained earnings | 973168 | 973168 | 573168 |
| Total stockholders' equity | 2142978 | 2142978 | 22533406 |
| Total capitalization | $5110594 | $5358594 | $22563407 |

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<sup>(1)</sup> Pro forma as adjusted information reflects the sale of 5,000,000 shares of our common stock in this offering at the assumed public offering of $4.00 per share, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

<sup>(2)</sup> The number of shares of common stock outstanding after this offering is based on 5,151,391 shares of common stock issued and outstanding as of May 21, 2026 and an aggregate of 6,247,797 shares of common stock issuable upon the closing of this offering, consisting of the following shares:

● 5,000,000 shares of common stock to be issued in this offering;

● 8,333 shares of common stock upon the automatic conversion of $25,000 of the 2023 SAFE (assuming an initial public offering price of $4.00);

● 100,000 shares of common stock to be issued at the closing of this offering to certain advisors of the Company in consideration for services rendered by Blake Elliot Inc. as compensation pursuant to certain advisory agreement dated May 6, 2024;

● 285,714 shares of common stock issuable upon the conversion of 200,000 shares of Series B Preferred Stock (based on an assumed offering price of $4.00);

● 833,611 shares of common stock issuable upon the conversion of 750,250 shares of Series C Preferred Stock; and

● 20,139 shares of common stock issuable upon the conversion of accrued and unpaid dividends on the Series B Preferred Stock and Series C Preferred Stock at the closing of this offering, calculated based on accrued dividends as of March 31, 2026. The actual number of shares issuable upon conversion of accrued dividends will be higher at the closing of this offering because dividends continue to accrue through the closing date.

The number of outstanding shares immediately following this offering excludes:

● 702,974 shares of our common stock issuable upon the exercise of outstanding stock options issued under our 2025 Plan, at a weighted-average exercise price of $2.33 per share; and

● 60,734 shares of our common stock reserved for future issuance under our 2025 Plan, as well as any automatic increases in the number of shares of our common stock reserved for future issuance under our 2025 Plan.

Each $1.00 increase (decrease) in the assumed initial public offering price of $4.00 per share would increase (decrease) the amount of cash, additional paid-in capital, total stockholders' equity (deficit) and total capitalization on a pro forma as adjusted basis by approximately $4.6 million, assuming the number of shares, as set forth on the cover page of this prospectus, remains the same and after deducting underwriting discounts and commissions, the non-accountable expense allowance and estimated offering expenses payable by us.

Similarly, each increase (decrease) of 100,000 shares offered by us would increase (decrease) cash, total stockholders' equity (deficit) and total capitalization on a pro forma as adjusted basis by approximately $0.4 million, assuming the assumed initial public offering price of $4.00 per share remains the same, and after deducting underwriting discounts and commissions, the non-accountable expense allowance and estimated offering expenses payable by us. The pro forma as adjusted information discussed above is illustrative only and will be adjusted based on the actual public offering price and other terms of this offering determined at pricing.

DILUTION

If you invest in our shares in this offering, your ownership will be diluted immediately to the extent of the difference between the public offering price per share and the pro forma as adjusted net tangible book value per common stock immediately after this offering. Dilution in net tangible book value per share to new investors is the amount by which the offering price paid by the purchasers of the shares sold in this offering exceeds the pro forma as adjusted net tangible book value per common stock after this offering. Net tangible book value per share is determined at any date by subtracting our total liabilities from the total book value of our tangible assets and dividing the difference by the number of shares of common stock deemed to be outstanding at that date.

As of March 31, 2026, our net tangible book value (deficit) was $4.0 million, or $0.77 per share.

Our pro forma net tangible book value as of March 31, 2026, was $4.3 million, or $0.67 per share, after giving effect to the issuance of the remaining 62,000 shares of Series C Preferred Stock for an aggregate purchase price of $248,000 received in May 2026.

Pro forma net tangible book value also includes the issuance of an aggregate of 1,247,797 shares of common stock consisting of: (i) the issuance of 8,333 shares of common stock upon the automatic conversion of $25,000 of the 2023 SAFE, at the closing of this offering, calculated assuming an initial public offering price of $4.00; (ii) 100,000 shares of common stock to be issued at the closing of this offering to certain advisors of the Company in consideration for services rendered, (iii) 285,714 shares of common stock issuable upon the conversion of 200,000 shares of Series B Preferred Stock at the closing of this offering, (iv) 20,139 shares of common stock issuable upon the conversion of preferred stock dividend, and (v) 833,611 shares of common stock issuable upon the conversion of 750,250 shares of Series C Preferred Stock at the closing of this offering.

After giving effect to our sale of 5,000,000 shares in this offering at an assumed public offering price of $4.00 per share and after deducting the underwriting discounts and commissions, the non-accountable expense allowance and estimated offering expenses, our pro forma as adjusted net tangible book value (deficit) as of March 31, 2026 would have been approximately $22.2 million, or approximately $1.95 per share. This amount represents an immediate increase in net tangible book value of $1.28 per share to existing stockholders and an immediate dilution in net tangible book value of $2.05 per share to purchasers of our shares in this offering, as illustrated in the following table.

Dilution per share to new investors is determined by subtracting pro forma as adjusted net tangible book value per share after this offering from the initial public offering price per share paid by new investors. The following table illustrates this dilution:

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| | |
|:---|:---|
| Assumed initial public offering price per share | $4.00 |
| Historical net tangible book value (deficit) per share as of March 31, 2026 | $0.77 |
| Decrease in pro forma net tangible book value per share | $(0.10) |
| Pro forma net tangible book value per share | $0.67 |
| Increase in pro forma as adjusted net tangible book value per share attributable to payments by new investors | $1.28 |
| Pro forma as adjusted net tangible book value per share immediately after this offering | $1.95 |
| Dilution per share to new investors purchasing shares in this offering | $2.05 |

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The number of common stock outstanding immediately following this offering excludes:

● 750,000 shares of common stock issuable upon the exercise of the underwriter's over-allotment option.

A $1.00 increase in the assumed public offering price of $4.00 per share, would increase our pro forma as adjusted net tangible book value as of March 31, 2026, after giving effect to this offering by approximately $4.6 million or $0.41 per share, and dilution in net tangible book value per share to investors in this offering by approximately $0.60 per share, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting estimated underwriting discounts and commissions, the non-accountable expense allowance and estimated offering expenses payable by us. A $1.00 decrease in the assumed public offering price of $4.00 per share, would decrease our pro forma as adjusted net tangible book value as of March 31, 2026 after giving effect to this offering by approximately $4.6 million, or $0.40 per share, and dilution in net tangible book value per share to investors in this offering by approximately $0.60 per share, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting estimated underwriting discounts and commissions, the non-accountable expense allowance and estimated offering expenses payable by us.

Each 100,000 share increase in the number of shares offered by us at the assumed initial public offering price of $4.00 per share would increase (decrease) the pro forma as adjusted net tangible book value as of March 31, 2026, after giving effect to the offering, by $0.4 million, or $0.02 per share, and the dilution to new investors by ($0.02) per share, after deducting estimated underwriting discounts and commissions, the non-accountable expense allowance and estimated offering expenses payable by us. Conversely, each 100,000 share decrease in the number of shares offered by us at the assumed initial public offering price of $4.00 per share would decrease the pro forma as adjusted net tangible book value as of March 31, 2026, after giving effect to the offering, by approximately $0.4 million, or $(0.01) per share, and the dilution to new investors by $0.02 per share, and after deducting estimated underwriting discounts and commissions, the non-accountable expense allowance and estimated offering expenses payable by us.

The following table sets forth, on a pro forma as adjusted basis described above, the differences between the number of shares of common stock purchased from us, the total price and average price per share paid by existing stockholders and by the new investors, before deducting offering and acquisition expenses payable by us, using the public offering price of $4.00 per share.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Total Consideration** | |
|  | **Number** | **Percentage** | **Number** | **Percentage** | **Average Price**<br>**Per Share** |
| Existing stockholders before this offering<sup>(1)</sup> | 5251391 | 46.1% | $889810 | 3.6% | $0.17 |
| Automatic IPO conversions<sup>(2)</sup> | 1147797 | 10.1% | 3851577 | 15.6% | $3.36 |
| Investors participating in this offering | 5000000 | 43.9% | 20000000 | 80.8% | $4.00 |
| Total capitalization | 11399188 | 100.0% | $24741387 | 100.0% |  |

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<sup>(1)</sup> Includes 100,000 shares of common stock to be issued at the closing of this offering to certain advisors of the Company in consideration for services rendered.

<sup>(2)</sup> Includes the issuance of (i) 8,333 shares of common stock upon the automatic conversion of $25,000 of the 2023 SAFE, at the closing of this offering pursuant, calculated assuming an initial public offering price of $4.00; (ii) 285,714 shares of common stock issuable upon the conversion of 200,000 shares of Series B Preferred Stock at the closing of this offering, (iii) 20,139 shares of common stock issuable upon the conversion of preferred stock dividend, and (iv) 833,611 shares of common stock issuable upon the conversion of 750,250 shares of Series C Preferred Stock at the closing of this offering.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

*Our financial statements are prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). These accounting principles require us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. Our financial statements would be affected to the extent there are material differences between these estimates and actual results. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management's judgment in its application. There are also areas in which management's judgment in selecting any available alternative would not produce a materially different result. The following discussion should be read in conjunction with our financial statements and notes thereto appearing elsewhere in this prospectus.*

 

Overview

Collab Z Inc., through its subsidiary, Collab CA LLC, has developed its pioneering Collab Platform, which it believes is a first-of-its-kind Community-Based Property Management model that is designed to replace traditional property management practice by enabling community involvement and by leveraging modern technology, including artificial intelligence features currently under development. Our approach actively involves tenants and other skilled community members in the management process, handling leasing and daily operations in a way that minimizes conflicts of interest and improves tenant satisfaction. With a five-year lead over new market entrants to our knowledge, and the ability to scale quickly without local staffing, Collab Z uniquely positions itself against both traditional property management firms and SaaS-based PropTech competitors.

Our mission is to democratize property management and to foster a more engaged community of tenants, property owners, and professional service providers to maximize asset value and to create a sustainable, decentralized organization that benefit all stakeholders involved.

Our vision is to revolutionize the real estate sector by maximizing community engagement in their living and working spaces for an autonomous and collaborative living experience.

We are committed to innovation, focusing on delivering substantial long-term value to our shareholders and improving the quality of life for our property owners, tenants, Community Pros, or CPs, and professional service providers. As we expand, our Collab Platform will continue to lead the shift towards a more connected and engaged property management ecosystem.

The Current Industry Challenges, Our Solution, and Our Opportunity

The Challenge

The property management industry faces longstanding inefficiencies and high costs due to outdated value chain structures. Collab Z has identified key pain points and opportunities for transformation:

1. Inefficiency in Traditional Models: Legacy property management structures are bloated with excessive layers of human oversight and reliance on third-party service providers. This increases management costs, creates long lead times, reduces transparency, and often results in misaligned interests between stakeholders.

2. Low Tenant Satisfaction: Traditional systems overlook the potential contributions of tenants who are willing to assist with routine tasks, such as communications, minor repairs, maintenance requests, and leasing coordination. This underutilization contributes to lower tenant satisfaction, higher turnover rates, and poorly maintained properties.

3. Scalability Challenges: Traditional models struggle to scale across multiple properties and regions due to their dependence on local staffing and manual processes. This increases operational complexity and limits growth opportunities.

4. Lag in Technology Adoption: Compared to other industries, property management has been slow to adopt disruptive technologies that could overhaul outdated operational models. This presents a significant opportunity for innovation.

Our Solution

Collab Z has developed its Collab Platform, a community-based property management solution that directly connects tenants with property management tasks, offering them financial incentives to contribute to their living environment and foster stronger community connections. In addition, Collab Z is currently developing an AI-enhanced, community-based property management platform, CollabAPP, designed to fundamentally transform traditional property management processes. AI-enhanced features for CollabAPP are currently under development, with phased launches planned over an 18-month period which started in early 2025.

Based on our data, in comparing our model to the traditional model, Our model enhances occupancy rate, eliminates unnecessary management layers, reduces operating expenses, and improves tenant satisfaction by delivering responsive services through CPs and professional service providers. Also, the Collab Platform enables faster entry into new market without building local teams.

As part of this model, CPs are tenants who assist with property management tasks, such as leasing showings, minor repairs, administrative work, and Customer support, in exchange for financial incentives.

For repair and maintenance tasks requiring specialized expertise, professional service providers (licensed contractors such as HVAC, plumbing, and electrical repair specialists) handle the work.

CPs play a coordination and communication role, similar to property managers, contacting professional service providers, scheduling service appointments, and ensuring that repairs are completed as expected in a timely manner.

Our Opportunity

According to IBIS World, a leading global industry research and market analysis firm, the property management industry reached $128.3 billion in revenue by the end of 2024, growing at a CAGR of 2.0%. As the first community-based property management solution to our knowledge, Collab Z is positioned to revolutionize this massive market.

With over 300,000 property management companies and 20 million rental properties in the U.S. (Sources: Truelist, February 2024; Rubyhome, August 2023), the opportunity for disruption is immense. The Collab Platform is designed to:

● Streamline operations

● Enhance tenant engagement

● Maximize property value

By applying a community-driven model and planning the integration of AI-powered features currently under development, Collab Z addresses longstanding inefficiencies while scaling across the nation's extensive rental property network.

Certain Key Factors Affecting Our Performance

The performance of our business depends on a number of factors. While each of these areas presents significant opportunities for us, they also pose challenges and risks that we must address to sustain the growth of our business and improve our results of operations. See the section titled "*Risk Factors*" for additional information on the various challenges and risks we face as we look to grow our business model.

Trends, Events and Uncertainties

As a company operating in the real estate technology sector, we face various external factors that could impact our operational results and financial stability:

1. **Economic Conditions**: Our operations are sensitive to economic fluctuations, particularly changes in the real estate market and broader economic indicators such as GDP growth, interest rates, and employment levels. Shifts in these areas can affect demand for our services. For instance, favorable economic conditions typically bolster demand, whereas economic downturns or periods of significant market volatility might result in higher vacancy rates and reduced rental prices. This in turn negatively impacts our revenue streams.

2. **Regulatory Environment**: Changes in regulations related to real estate, technology, and data privacy can significantly affect our operational practices and compliance costs. For instance, local and federal housing policies, including rent control measures, zoning laws, and affordable housing mandates, can significantly impact operational strategies and profitability.

3. **Technological Advancements**: The fast pace of technological change requires continuous investment in our technology to stay competitive. Innovations by competitors could render our current offerings less attractive if not promptly addressed.

4. **Market Adoption and Competitive Landscape**: The adoption rate of our community-based solutions, along with the intensity of competition, can influence our market position and pricing strategies. A slower-than-expected adoption rate or increased competition could adversely affect our financial performance.

Key Metrics

To effectively manage our business and gauge our performance, we focus on several key operational and financial metrics:

1. Customer Acquisition Costs (CAC): This metric measures the average cost incurred to secure new property management customers, reflecting the efficiency of our marketing and sales strategies. To date, the majority of our managed properties have been sourced through related-party relationships. Because these engagements did not require direct marketing or sales efforts, associated acquisition costs have been minimal and are not representative of broader customer acquisition efforts. As a result, we have not historically tracked CAC in a standardized or reportable format across all properties. However, beginning in early 2025, we began managing a property owned by a non-related third party, and plan to add additional third-party properties to our portfolio. Management is currently in the process of building a standardized methodology for calculating CAC and intends to implement internal systems that will enable us to report this metric consistently. As we scale our third-party portfolio, CAC will become an increasingly relevant indicator of operating efficiency and sales effectiveness.

2. Occupancy Rate of the properties managed by Collab Z: Tracks the percentage of units currently rented out in our managed properties. A high occupancy rate reflects strong market demand and the effectiveness of our property management services. We consistently maintain near-full occupancy, with rates of approximately 97% and 99% as of 2023, and 2024, respectively, surpassing the industry average of ~95% (Source: Medium, January 2025)

3. Net Operating Income (NOI) of properties managed by Collab Z: NOI is a key measure of profitability and operational performance at the property level. Across our managed portfolio, Collab Z has delivered NOI margins ranging from approximately 30% to 72% over the past two fiscal years. These variations reflect the nature of our diversified portfolio, which includes Class A, B, and C properties with varying age and condition, as well as differences in operational stage such as lease-up, renovation, or repositioning. This performance reflects our ability to drive operational efficiency and cost control through our community-based property management model.

4. Customer Retention Rate: We define retention as the continuation of management contracts with property owners over time. Since we began operations in 2021, we have retained management of 100% of the properties in our portfolio, except in instances where ownership of the property has changed. While most of these properties are owned by related parties, we believe this consistency reflects the reliability of our service model and our ability to meet ownership expectations. As we expand into third-party markets, we plan to continue tracking retention as a key measure of owner satisfaction and operational quality.

5. Profit margin of Collab Z: Our company-level profit margin measures the percentage of revenue that translates into profit, reflecting the effectiveness of our cost controls and pricing strategy. Collab Z achieved an operating profit margin of 15% for the fiscal year ended September 30, 2023, and 52% for the fiscal year ended September 30, 2024. The significant increase in profit margin was primarily driven by the recognition of EB-5 management fees in 2024, which carry higher margins compared to our core property management services. As we plan to phase out the EB-5 business within the next year and concentrate on expanding our core property management business, we expect our future profit margins will adjust accordingly in future reporting periods.

Components of Operating Results

 

*Revenue*

The Company earns revenue from the following streams:

*Property Management*

 

The Company provides property management services for rental properties that include various elements based on the underlying contractual agreement. The Company earns a fixed percentage of monthly lease income. This revenue is recognized on an ongoing, monthly basis. The Company earns additional fees based on a fixed percentage of property-related expenses such as repairs and maintenance at the time the underlying costs are incurred. The Company, at times, is also eligible to earn commissions on the first month of a new lease agreement. Certain managed properties include a profit share arrangement based on guaranteed rental income whereby the Company shares in the excess rental income over the guaranteed amounts. Any losses incurred under these guarantee have historically been netted against accounts receivable and have not been material. The Company recognizes this revenue at the point in time the excess rental income is known.

*Development and Construction Management*

 

The Company provides services consisting of the oversight of property development and construction projects, including budget monitoring and timeline management. Development fees are recognized on an ongoing monthly basis through the completion of the service period.

*Procurement*

 

The Company facilitates procurement of materials and supplies for construction projects, particularly from international sources. Procurement fees are recognized at a point in time upon the completion of the procurement service, which is shipment of the related materials.

*Renovation Management*

 

Renovation management services include assisting in the acquisition, renovation, and disposition of properties. Renovation fees are recognized on an ongoing, monthly basis through the completion of the service period, which is based on the time elapsed of the renovation project. The Company also earns renovation service fees, which are recognized over time as the project progresses based on the actual costs incurred of the underlying renovation project. Acquisition fees are recognized at a point in time after the acquisition of the property.

*EB-5 Immigration Investor Services*

The Company identifies EB-5 immigration investment projects and assists investors with project identification, assistance and support during the project application process. Fees are recognized at a point in time upon the fulfillment of the EB-5 service obligations, which is when the EB-5 application package has been submitted. Payments are billed in two tranches, and any deferred revenue is recognized once performance obligations are met.

*Consulting Services*

The Company provides consulting services to third parties that are defined by service agreements. Consulting services may include terms whereby there is a set of deliverables required for which revenue will be recognized at a point in time when the deliverables are satisfied, or may relate to services that are performed periodically and recognized over time. Each contract is assessed for performance obligations. There is generally no right of return or refund related to these services.

A disaggregation of revenue for the six months ended March 31, 2026 and 2025 and years ended September 30, 2025 and 2024 is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Six Months Ended | Six Months Ended | Year Ended | Year Ended |
|  | March 31, | March 31, | September 30, | September 30, |
|  | 2026 | 2025 | 2025 | 2024 |
| Property management | $229767 | $357414 | $547304 | $579083 |
| Development and construction management | 214806 | 119514 | 146963 | 94500 |
| Procurement |  | 48708 | 48708 | 237188 |
| Renovation management |  |  |  | 252814 |
| Consulting services | 331800 | - | 150653 | - |
| &nbsp;&nbsp;&nbsp;Revenue - related parties | 776373 | 525636 | 893628 | 1163585 |
| EB-5 immigrant investor services |  |  |  | 690000 |
| Consulting services | 445000 | 270000 | 425000 |  |
| Property management | 40819 | 12549 | 59521 | - |
| &nbsp;&nbsp;&nbsp;Revenue | 485819 | 282549 | 484521 | 690000 |
| &nbsp;&nbsp;&nbsp;Total revenue | $1262192 | $808185 | $1378149 | $1853585 |

---

*Cost of Revenue*

Cost of revenue includes operations personnel supporting the Company's real estate services, specifically those personnel who work directly on property management as well as development, construction, renovation and EB-5 projects. Cost of revenue also includes software costs incurred to maintain the Company's property management system, as well as amortization of capitalized software costs.

*Operating Expenses*

*Sales And Marketing*

Our sales and marketing costs consist primarily of salaries and other related costs for business development personnel and advertising and marketing costs. We expect that our sales and marketing expense will increase significantly on an absolute dollar basis and vary from period-to-period as a percentage of revenue for the foreseeable future as we focus on building out our third-party customer facing organization and expanding our brand.

*General and Administrative Expense*

Our general and administrative expenses consist primarily of salaries and other related costs for personnel in our executive, finance, corporate development and administrative functions. General and administrative expense also includes professional fees for legal, accounting, information technology, travel, insurance, software costs and expenses related to our operations at our headquarters, including rent.

We expect that our general and administrative expense will increase on an absolute dollar basis and vary from period-to-period as a percentage of revenue for the foreseeable future as we focus on processes, systems and controls to enable our internal support functions to scale with the growth of our business. We expect to incur increased expenses associated with being a public company, including costs of accounting, audit, legal, regulatory and tax compliance services, costs related to compliance with the rules and regulations of the SEC, and exchange listing standards, higher director and officer insurance costs, and investor and public relations costs.

*Other Income (Expense)*

 

Other income (expense) primarily includes interest expense on the Company's outstanding debt, as well as interest income earned and income (loss) on joint ventures.

**Results of Operations**

 ****

***Comparison of Three Months Ended March 31, 2026 and 2025***

The following table sets forth key components of our results of operations for the three months ended March 31, 2026 and 2025, both in dollars and as a percentage of our total revenue.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2026** | **2025** | **2025** |
|  | **Amount** | **% of<br> revenues** | **Amount** | **% of<br> revenues** |
| Revenue - related parties | $392777 | 50% | $295769 | 78% |
| Revenue - other | 386172 | 50% | 82549 | 22% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 778949 | 100% | 378318 | 100% |
| Cost of revenue | 119941 | 15% | 103147 | 27% |
| Gross profit | 659008 | 85% | 275171 | 73% |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 141881 | 18% | 5722 | 2% |
| &nbsp;&nbsp;&nbsp;General and administrative | 335977 | 43% | 244764 | 65% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 477858 | 61% | 250486 | 66% |
| Income from operations | 181150 | 23% | 24685 | 7% |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 13828 | 2% | 17351 | 5% |
| &nbsp;&nbsp;&nbsp;Interest expense |  |  | (14296) | -4% |
| &nbsp;&nbsp;&nbsp;Loss on joint ventures | (2754) | 0% |  |  |
| &nbsp;&nbsp;&nbsp;Other income | - | 0% | 113 | 0.03% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | 11074 | 1% | 3168 | 1% |
| Provision for income taxes | - | - | - | - |
| Net income | $192224 | 25% | $27853 | 7% |

---

*Revenue*

Related party revenue increased by $97,008 for the three months ended March 31, 2026 to $392,777 as compared to $295,769 in the prior period. The increase was primarily due to increase in development and construction management fees by $45,789 and consulting services by $122,900, partially offset by a decrease in property management by $71,681.

Revenues from third parties was $386,172 for the three months ended March 31, 2026, consisting of consulting fees performed and property management services to third parties. In 2025, the Company generated revenue of $82,549 from consulting fees performed and property management services.

*Cost of Revenue*

 

Cost of revenue was $119,941 for the three months ended March 31, 2026 as compared to $103,147 in 2025. The increase was primarily due to increase in a third-party revenue during the three months ended March 31, 2026.

*Sales and Marketing*

 

Sales and marketing expenses increased by $136,159 for the three months ended March 31, 2026 to $141,881 as compared to $5,722 in the prior period. This increase was primarily due to higher personnel costs assisting with business development.

*General and Administrative*

General and administrative expenses increased by $91,213 for the three months ended March 31, 2026 to $335,977 as compared to $244,764 in the prior period. This increase was primarily due to higher personnel costs and professional services as we expanded our operations, increased headcount and incurred professional costs in connection with our contemplated initial public offering.

*Other Income (Expense)*

 

Other income (expense) was $11,074 and $3,168 for the three months ended March 31, 2026 and 2025, respectively, which primarily consisted of interest income of $4,253 from a note receivable and interest income of $9,575 on restricted cash, offset by loss on joint ventures of ($2,754), compared to interest income of $17,351 from a note receivable and other income of $113, offset by $14,296 of interest expense on the Company's outstanding line of credit during the prior period.

*Net Income*

 

Net income was $192,224 for the three months ended March 31, 2026 as compared to a net loss of $27,853 for the prior period. The increase of income of $164,371 was primarily due to increased consulting service fees during the three months ended March 31, 2026.

***Comparison of Six Months Ended March 31, 2026 and 2025***

The following table sets forth key components of our results of operations for the six months ended March 31, 2026 and 2025, both in dollars and as a percentage of our total revenue.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended March 31,** | **Six Months Ended March 31,** | **Six Months Ended March 31,** | **Six Months Ended March 31,** |
|  | **2026** | **2026** | **2025** | **2025** |
|  | **Amount** | **% of<br> revenues** | **Amount** | **% of<br> revenues** |
| Revenue - related parties | $776373 | 62% | $525636 | 65% |
| Revenue - other | 485819 | 38% | 282549 | 35% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 1262192 | 100% | 808185 | 100% |
| Cost of revenue | 197308 | 16% | 185957 | 23% |
| Gross profit | 1064884 | 84% | 622228 | 77% |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 201801 | 16% | 10248 | 1% |
| &nbsp;&nbsp;&nbsp;General and administrative | 597814 | 47% | 466555 | 58% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 799615 | 63% | 476803 | 59% |
| Income from operations | 265269 | 21% | 145425 | 18% |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 22183 | 2% | 17351 | 2% |
| &nbsp;&nbsp;&nbsp;Interest expense |  |  | (23006) | -3% |
| &nbsp;&nbsp;&nbsp;Loss on joint ventures | (516) | 0% |  |  |
| &nbsp;&nbsp;&nbsp;Other income | - | - | 1418 | 0.18% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | 21667 | 2% | (4237) | -1% |
| Provision for income taxes | - | - | - | - |
| Net income | $286936 | 23% | $141188 | 17% |

---

*Revenue*

Related party revenue increased by $250,737 for the six months ended March 31, 2026 to $776,373 as compared to $525,636 in the prior period. The increase was primarily due to increased consulting service fees by $331,800 and development and construction management fees by $95,292, partially offset by a decrease in property management by $127,647, and a decrease in procurement revenue by $48,708.

Revenues from third parties was $485,819 for the six months ended March 31, 2026, consisting of consulting fees performed and property management services to third parties. In 2025, the Company generated revenue of $270,000 from consulting services and $12,549 from property management services.

*Cost of Revenue*

 

Cost of revenue was $197,308 for the six months ended March 31, 2026 as compared to $185,957 in 2025. The increase was primarily due to an increase in a third-party revenue during the six months ended March 31, 2026.

*Sales and Marketing*

 

Sales and marketing expenses increased by $191,553 for the six months ended March 31, 2026 to $201,801 as compared to $10,248 in the prior period. This increase was primarily due to higher personnel costs assisting with business development.

*General and Administrative*

General and administrative expenses increased by $131,259 for the six months ended March 31, 2026 to $597,814 as compared to $466,555 in the prior period. This increase was primarily due to higher personnel costs and professional services as we expanded our operations, increased headcount and incurred professional costs in connection with our contemplated initial public offering.

*Other Income (Expense)*

 

Other income (expense) was $21,667 and ($4,237) for the six months ended March 31, 2026 and 2025, respectively, which primarily consisted of interest income of $12,608 from a note receivable and interest income of $9,575 on restricted cash, offset by loss on joint ventures of $516, compared to interest income of $17,351 from a note receivable, other income of $1,418 and offset by $23,006 interest expense on the Company's outstanding line of credit during the prior period.

*Net Income*

 

Net income was $286,936 for the six months ended March 31, 2026 as compared to a net income of $141,188 for the prior period. The increase of income of $145,748 was primarily due to increased other revenue during the six months ended March 31, 2026.

***Comparison of Years Ended September 30, 2025 and 2024***

The following table sets forth key components of our results of operations for the years ended September 30, 2025 and 2024, both in dollars and as a percentage of our net revenues.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended September 30,** | **Year Ended September 30,** | **Year Ended September 30,** | **Year Ended September 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Amount** | **% of<br> revenues** | **Amount** | **% of<br> revenues** |
| Revenue - related parties | $893628 | 62% | $1163585 | 63% |
| Revenue - other | 584521 | 38% | 690000 | 37% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 1378149 | 100% | 1853585 | 100% |
| Cost of revenue | 412783 | 30% | 219283 | 12% |
| Gross profit | 965366 | 70% | 1634302 | 88% |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 77642 | 6% | 47874 | 3% |
| &nbsp;&nbsp;&nbsp;General and administrative | 1003035 | 73% | 622401 | 34% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 1080677 | 78% | 670275 | 36% |
| Income (loss) from operations | (115311) | -8% | 964027 | 52% |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 36685 | 3% |  | N/A |
| &nbsp;&nbsp;&nbsp;Interest expense | (22352) | -2% | (13607) | -1% |
| &nbsp;&nbsp;&nbsp;Loss on joint ventures | (8647) | -1% |  | N/A |
| &nbsp;&nbsp;&nbsp;Other income | 7430 | 1% | - | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense | 13116 | 1% | (13607) | -1% |
| Provision for income taxes | - | 0% | - | 0% |
| Net income (loss) | $(102195) | -7% | $950420 | 51% |

---

*Revenue*

Related party revenue decreased by $269,957 for the year ended September 30, 2025 to $893,628 as compared to $1,163,585 in the prior year. The decrease was due to a decrease in procurement revenue of $188,480, a decrease of renovation management fees of $252,814 and a decrease in property management fees of $31,779 partially offset by an increase in development and construction management fees of $52,463 and an increase in consulting services of $150,653.

Other revenue was $484,521 for the year ended September 30, 2025, consisting of consulting fees performed and property management services to third parties. In 2024, the Company generated revenue of $690,000 for EB-5 services. There was no similar services in 2025.

*Cost of Revenue*

 

Cost of revenue was $412,783 for the year ended September 30, 2025 as compared to $219,283 in 2024. The increase was primarily due to a full year of amortization of capitalized software development costs of $53,333 incurred in 2025. Lastly, in 2025 the Company expanded its system maintenance costs, which are included in cost of revenue. The Collab platform was not operational until August 2024, thus the 2024 period does not have amortization or system maintenance costs included in cost of revenue.

*Sales and Marketing*

 

Sales and marketing expenses increased by $29,768 for the year ended September 30, 2025 to $77,642 as compared to $47,874 in the prior period. This increase was primarily due to higher personnel costs assisting with business development.

*General and Administrative*

General and administrative expenses increased by $380,634 for the year ended September 30, 2025 to $1,003,035 as compared to $622,401 in the prior year. This increase was primarily due to higher personnel costs and professional services as we expanded our operations, increased headcount and incurred professional costs in connection with our contemplated initial public offering.

 

*Other Income (Expense)*

Other income (expense) was $13,116 and ($13,607) for the years ended September 30, 2025 and 2024, respectively. which primarily consisted of interest expense on the Company's outstanding line of credit, offset by interest income in 2025 from a note receivable. In 2025, the Company had a loss on joint ventures of $8,647.

*Net Income (Loss)*

 

Net loss was $102,195 for the year ended September 30, 2025 as compared to a net income of $950,420 for the prior year. The decrease of $1,052,615 was primarily due to increased operating expenses in 2025 and a decline in revenue from EB-5 services.

Liquidity and Capital Resources

Our principal liquidity requirements are for working capital, business development and system development. We have historically funded our liquidity requirements primarily through cash on hand, cash flows from operations, proceeds from related parties and debt and equity financings.

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company had $10,794 in cash as of March 31, 2026, and $1,006,805 in amounts due from related parties. The Company is heavily reliant on related parties as its primary revenue and cash flow sources and has historically generated revenues from sources that may not be recurring.

The Company is in its early-stage, and expects to incur significant costs to expand its operations and conduct its business plan, which may result in future losses if it cannot effectively market its products and achieve market acceptance.

*Management's Plans*

We believe substantial doubt has been alleviated for a period of at least 12 months from the date the financial statements are issued based on the following:

The net due to and from related parties' balances at March 31, 2026, which are expected to be fully collected and paid, provide for a net positive effect to cash of approximately $0.39 million. In addition, third party receivables and the note receivable are expected to be paid and create cash inflows of $0.8 million in aggregate. These funds are expected to provide the Company with operating capital sufficient to cover basic operations while the Company makes efforts to increase revenue and maintain cost management to make operations more profitable and sustainable. Lastly, the Company is seeking to raise capital via an equity offering. In the event the Company does not complete an offering, the Company expects to seek additional funding through private equity offering, debt and/or related party financings to provide additional operating capital. The Company may not be able to obtain financing on acceptable terms, or at all.

*Cash Flows*

Liquidity activity is shown for the six months ended March 31, 2026 and 2025 and years ended September 30, 2025 and 2024. The following is a summary of the Company's cash flows provided by (used in) operating, investing, and financing activities:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** | **Year Ended** | **Year Ended** |
|  | **March 31,** | **March 31,** | **September 30,** | **September 30,** |
|  | **2026** | **2025** | **2025** | **2024** |
| Net cash provided by (used in) operating activities | $(271017) | $128796 | $71281 | $1257920 |
| Net cash provided by (used in) investing activities | 83006 | 1237974 | 1611281 | (2619677) |
| Net cash provided by (used in) financing activities | 2799874 | (1423079) | (1626090) | 1450878 |
| Net change in cash | $2611863 | $(56309) | $56472 | $89121 |

---

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

Cash provided by (used in) operating activities was ($271,017) for the six months ended March 31, 2026, as compared to $128,796 for the prior period. Cash used in operating activities during the six months ended March 31, 2026 was primarily due to net income of $286,936 and cash used in operating assets and liabilities of $605,136 due to the increased receivables, and partially offset by non-cash charges of $47,183. Cash provided during the six months ended March 31, 2025 ,was primarily due to our net income of $141,188, non-cash charges of $42,667 and cash used in operating assets and liabilities of $55,509.

Cash provided by operating activities was $71,281 for the year ended September 30, 2025, as compared to $1,257,920 for the prior year. Cash provided during the year ended September 30, 2025 was primarily due to cash provided by operating assets and liabilities of $75,496, non-cash charges of $97,980, and partially offset by our net loss of $102,195. Cash provided during the year ended September 30, 2024, was primarily due to our net income of $950,420, non-cash charges of $173,521 and cash provided by operating assets and liabilities of $133,979.

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

Cash provided by investing activities was $83,006 for the six months ended March 31, 2026, as compared to $1,237,974 for the prior period. Cash provided during the six months ended March 31, 2026, was primarily due to the receipt from repayment of loan receivable of $250,000, partially offset by the repayment of due to related parties of $37,001 and a software capitalization of $129,993. Cash used in investing activities during the six months ended March 31, 2025, was primarily due to issuance of loan receivable of $1,470,000 and software capitalization of $19,500, offset by receipts from related parties of $2,065,199 and repayment of loan receivable of $662,275.

Cash provided by (used in) investing activities was $1,611,281 for the year ended September 30, 2025, as compared to ($2,619,677) for the prior year. Cash provided during the year ended September 30, 2025 was primarily due to the receipt from related parties of $2,173,456, repayment of loan receivable of $954,625, and $53,600 in distributions from joint ventures, partially offset by the issuance of loan receivable of $1,470,000 and a software capitalization of $100,400. Investing activities in 2024 were primarily due to net advances to related parties of $2,459,677, which included $2,259,850 in advances to YRQ Irrevocable Trust for the purpose of providing YRQ's working capital requirements. The Company also incurred capitalized software development costs of $160,000 in 2024.

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

Cash provided by (used in) financing activities was $2,799,874 and ($1,423,079) for the six months ended March 31, 2026 and 2025, respectively. Cash provided by financing activities for the six months ended March 31, 2026, included proceeds from the issuance of Series C preferred stock of $2,753,000, realization of subscription receivable of $150,000 and $13,396 in proceeds from due to related parties, partially offset by $100,839 in deferred offering cost and dividend paid $15,683. Cash used in financing activities for the six months ended March 31, 2025, included $631,833 in repayment to related parties, in deferred offering cost $148,392 and subscription receivable of $1,942,854, offset by $1,300,000 in proceeds from the Company's revolving line of credit.

Cash provided by (used in) financing activities was $(1,626,090) and $1,450,878 for the years ended September 30, 2025 and 2024, respectively. Cash used in financing activities for the year ended September 30, 2025, included $642,854 in net repayments of a line of credit, $1,288,311 in net repayments to related parties, $344,925 in capitalized deferred offering costs, partially offset by $650,000 in proceeds from issuance of preferred stock. During 2024, the Company received $1,080,800 in net advances from related parties, $2,442,854 in proceeds from the Company's revolving line of credit, $168,435 in member contributions, partially offset by line of credit repayments of $1,800,000 and member distributions of $441,211.

*Debt*

 

*Revolving Line of Credit*

 

On March 14, 2024, the Company entered into a revolving line of credit agreement with East West Bank for a principal amount of up to $2,000,000. The maturity date was March 14, 2026 and the loan was secured by an assignment of a deposit account held by Collab CA's former member, YRQ Irrevocable Trust. The loan was intended exclusively for business operations. The loan had a variable interest rate based on the interest rate of the collateral's certificate of deposit plus 1.5%. The initial rate was set at 5.905%. The loan required monthly interest payments, and full repayment of principal and accrued interest due at maturity.

During the year ended September 30, 2025, the Company borrowed an aggregate of $1,300,000, which was used to provide a loan to a third party (see Note 4 of accompanying financial statements). On February 4, 2025, the Company paid off the line of credit with the funds from the collection of the Company's due from related parties and receivables. As a result, the line of credit was closed prior to its contractual maturity date, and no amounts were outstanding or available under the facility as of March 31, 2026.

*Future Equity Obligations*

In April 2023, the Company entered into a SAFE agreement for proceeds of $25,000. The SAFE has a valuation cap of $50,000,000 and a discount of 25%, which will be applied to the valuation of the Company at the time of the triggering event in order to calculate the price per share for the investor.

The SAFE will convert into equity upon the occurrence of a future qualified financing round of at least $10,000,000 or another triggering event, including the event of a merger, acquisition or initial public offering ("IPO").

As of March 31, 2026 and September 30, 2025, the fair value of SAFEs was $25,000 and $25,000, respectively. See Note 5 of the accompanying financial statements for fair value disclosures.

 

*Due to Related Parties*

 

Due to related parties includes cash advances received from various related parties. These advances are unsecured, due on demand and non-interest bearing. As of March 31, 2026 and September 30, 2025, the amounts outstanding were $30,001 and $16,605, respectively.

Critical Accounting Policies and Significant Judgments and Estimates

This discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with generally accepted accounting standards in the United States ("GAAP"). The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported expenses incurred during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. While our significant accounting policies are described in more detail in the notes to our financial statements included elsewhere in this prospectus, we believe that the following accounting policies are critical to understanding our historical and future performance, as these policies relate to the more significant areas involving management's judgments and estimates.

We believe our most critical accounting policies and estimates relate to the following:

*Revenue Recognition*

The Company recognizes revenue from services in accordance with Financial Accounting Standards Board ("**FASB**") Accounting Standards Codification ("**ASC**") Topic 606, Revenue from Contracts with Customers ("**ASC 606**"). Under ASC 606, the Company recognizes revenue when or as the Company's performance obligations are satisfied by transferring control of the promised services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps as prescribed by ASC 606:

(i) identify the contract(s) with a customer;

(ii) identify the performance obligations in the contract;

(iii) determine the transaction price;

(iv) allocate the transaction price to the performance obligations in the contract; and

(v) recognize revenue when (or as) the entity satisfies performance obligations.

The Company only applies the five-step model to contracts when it is probable that it will collect substantially all the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract, the performance obligations in each contract and whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company has applied ASC 606 on a portfolio basis. The Company has elected the practical expedients, allowing the recognition of incremental costs of obtaining a contract as an expense when incurred, and not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between customer payment and the transfer of goods or services is expected to be one year or less.

*Stock-Based Compensation* 

We record stock-based compensation in accordance with ASC 718, *Compensation-Stock Compensation*. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued and are recognized over the employee's required service period, which is generally the vesting period.

*Related Parties*

Related parties are any entities or individuals that, through employment, ownership or other means, possess the ability to direct or cause the direction of the management and policies of the Company. The Company discloses related party transactions that are outside of normal compensatory agreements, such as salaries. There were no related party transactions during the year other than normal compensatory arrangements, consistent with the prior year. The Company follows ASC 850, *Related Party Disclosures*, for the identification of related parties and disclosure of related party transactions.

 

*Common Stock Valuations* 

An "established trading market" for the Company's common stock does not exist. In 2024, the fair value of the shares of common stock was determined based on public company comparables, specifically microcap companies in similar industries including PropTech and technology platform services. The Company then applied a discount factor accounting for the private to public discount and minority interest discount, which was estimated using comparable valuations. In 2025, the Company considered the planned go-public transaction and the estimated price, as well as Series B Preferred Stock sold near year end, and estimated the accretion of value over the period until estimated IPO to estimate the fair value of common stock. In connection with the stock options granted on January 31, 2026, the Company estimated the fair value of common stock at $3.60 per share, derived from the contemporaneous arm's-length issuance of Series C convertible preferred stock at $4.00 per share, which on an as-converted basis (at the 90% conversion price embedded in the Series C Certificate of Designation, assuming a $4.00 anticipated IPO public offering price) implies a per common stock value of $3.60. This input reflects the state of the IPO process as of the grant date, including that Nasdaq listing approval had not been received and no definitive offering timeline existed.

Following the completion of this offering, the fair value of our common stock will be based on the closing price as reported on the date of grant on the primary stock exchange on which our common stock is traded.

Recently Issued and Adopted Accounting Pronouncements

A description of recently issued and adopted accounting pronouncements that may potentially impact our financial position and results of operations is disclosed in Note 2 to our financial statements appearing elsewhere in this prospectus.

Off-Balance Sheet Arrangements

The Company has a minimum rental guarantee for certain related party managed properties whereby the Company will pay the difference between the collected rent and the minimum rent guarantee. These guarantees require the Company to ensure a specified minimum gross revenue each month. Should the properties' gross revenues fall below these thresholds, the Company is required to compensate for the shortfall. The maximum potential amount of future payments under these guarantees is estimated based on historical occupancy rates and market trends to project potential future shortfalls. The minimum rent guarantee thresholds are calculated annually based on the local market occupancy rates and prevailing market rental rates. The minimum rent guarantee terms are stipulated to last for the duration of the property management agreements unless terminated by either party or amended by mutual consent. These agreements can be terminated by either party by providing 30 days' notice.

As of the issuance date of these consolidated financial statements, the maximum potential rental guarantees were approximately $102,000 per month. Since entering into these terms, no shortfall payments have been incurred with the exception of a negligible amount by one property in the first and second quarters of 2026. The shortfall of this property is netted against the related accounts receivable from the property.

During the periods presented, we did not have, nor do we currently have, any other off-balance sheet arrangements as defined under SEC rules.

 

Quantitative and Qualitative Disclosures about Market Risk

We are exposed to market risks in the ordinary course of our business. These risks primarily include interest rate risks and inflation risks. Periodically, we maintain deposits in accredited financial institutions in excess of federally insured limits. We deposit our cash in financial institutions that we believe have high credit quality and have not experienced any losses on such accounts and do not believe we are exposed to any unusual credit risk beyond the normal credit risk associated with commercial banking relationships.

*Interest Rate Risk* 

Our cash consists of cash in readily available checking accounts. We may also invest in short-term money market fund investments. Such interest-earning instruments carry a degree of interest rate risk, however, historical fluctuations in interest income have not been significant.

 

*Inflation Risk* 

Inflation generally affects us by increasing our cost of labor. We do not believe inflation has had a material effect on our results of operations during the periods presented

Emerging Growth Company

We are an "emerging growth company," as defined in Section 2(a) of the Securities Act of 1933, as amended (the "Securities Act"), as modified by the Jumpstart Our Business Startups Act of 2012. For so long as we remain an emerging growth company, we are permitted and intend to rely on exemptions from specified disclosure requirements that are applicable to other public companies that are not emerging growth companies. These exemptions include:

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

● not being required to comply with the requirement of auditor attestation of our internal controls over financial reporting;

● not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements;

● reduced disclosure obligations regarding executive compensation; and

● not being required to hold a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

We have taken advantage of certain reduced reporting requirements in this prospectus. Accordingly, the information contained herein may be different than the information you receive from other public companies in which you hold stock.

An emerging growth company can also take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. This allows an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to use this exemption from new or revised accounting standards during the period in which we remain an emerging growth company; however, we have and may adopt certain new or revised accounting standards early.

We will remain an emerging growth company until the earlier of (i) the last day of the fiscal year following the fifth anniversary of the date of the first sale of our securities pursuant to an effective registration statement under the Securities Act; (ii) the last day of the fiscal year in which we have total annual gross revenues of $1.235 billion or more; (iii) the date on which we have issued more than $1 billion in nonconvertible debt during the previous three years; or (iv) the date on which we are deemed to be a large accelerated filer under applicable SEC rules. We expect that we will remain an emerging growth company for the foreseeable future but cannot retain our emerging growth company status indefinitely and will no longer qualify as an emerging growth company on or before the last day of the fiscal year following the fifth anniversary of the date of the first sale of our securities pursuant to an effective registration statement under the Securities Act.

BUSINESS

Corporate History

Collab LLC commenced operations in the United States in 2020. In 2021, Collab LLC launched its community-based business MVP in Berkeley, California and expanded into the New Brunswick, New Jersey market. In 2022, Collab entered the Boston, Massachusetts market as part of its continued geographic expansion.

During the period from 2021 through 2024, Collab LLC focused on refining and enhancing its technology-supported operating model, developing tools to improve workflow coordination, scalability, and tenant and Community Pro engagement across its managed properties.

Collab Z Inc. was incorporated in Nevada on May 10, 2024, for the purpose of reorganizing our structure and to become the holding company for Collab LLC.

In December 2024, Collab Z Inc. completed a reorganization pursuant to which it became the parent holding company of Collab CA LLC. In 2025, Collab expanded into the Houston, Texas market and increased its portfolio to 13 managed properties across four markets, while continuing to enhance its technology tools to support operations

In September 2024, we issued an aggregate of 5,060,391 shares of our common stock in a private placement to certain initial investors pursuant to certain securities purchase agreements dated September 16, 2024 (the "Private Placement"), including an aggregate of 2,656,000 shares of common stock to the Controlling Group, comprised of 2,462,500 shares issued to YRQ Trust, 33,500 shares issued to SDZ-1-2022 Trust, 140,000 shares issued to SDZ-2-2022 Trust and 20,000 shares issued to Shui Dui Zi Irrevocable Family Trust. The trustees and beneficiaries of YRQ Trust are immediate family members of Mr. Qian Wang, our founder and former Chairman, who is the trustee of the SDZ-1-2022 Trust, the SDZ-2-2022 Trust and the Shui Dui Zi Irrevocable Family Trusts.

On October 3, 2024, we filed a Certificate of Designation with the Secretary of State of Nevada that authorized us to issue up to 5,000 shares of Series X Preferred Stock, par value $0.001 per share, and provides for 1,000 votes per share when voting together with the common stock. The Company issued all of the shares of Series X Preferred Stock to the YRQ Trust.

On December 11, 2024, we cancelled an aggregate of 4,519,500 shares of common stock pursuant to certain cancellation and release agreements dated December 11, 2024, in order to correct a structural error, which was remedied by the Reorganization Agreement (as defined below).

In December 2024, Collab LLC became a direct, wholly owned subsidiary of the Company through the closing of a share exchange pursuant to a Reorganization Agreement and Plan of Share Exchange dated December 30, 2024 (the "Reorganization Agreement" or "Reorganization"). Pursuant to the Reorganization, the sole member of Collab LLC, YRQ Trust, exchanged 100% of their member interests for a total of 4,550,500 shares of the Company's common stock. As a result, Collab LLC became a direct, wholly owned subsidiary of the Company. Collab Z Inc. is a holding company and carries out all its operations through its subsidiaries. Collab LLC is our main operating subsidiary.

On January 2, 2025, YRQ Trust assigned 1,838,000 of its shares of common stock (the "Assigned Shares") that it had received in the Reorganization to family irrevocable trusts, friends and family members of the beneficiaries of YRQ Trust (the "Assignment"). Of the Assigned Shares, assignments of 150,000 shares to certain recipients did not close because the conditions to such assignments were not satisfied, and such shares were returned to YRQ Trust. Following the Assignment, YRQ Irrevocable Trust owns 2,862,500 shares of common stock and 5,000 shares of Series X Preferred Stock. The Assigned Shares, except for the 150,000 shares returned to YRQ Trust, are held directly by the recipients and are no longer considered beneficially owned by YRQ Trust.

On June 5, 2025, we filed a Certificate of Designation with the Secretary of State of Nevada that authorized us to issue up to 1,250,000 shares of Series B Preferred Stock with a stated value of $4.00 per share. As of the date of the prospectus, we have sold an aggregate of 200,000 shares of Series B Preferred Stock for an aggregate purchase price of $800,000.

On January 23, 2026, we filed a Certificate of Designation with the Secretary of State of Nevada that authorized us to issue up to 10,000,000 shares of Series C Preferred Stock with a stated value of $4.00 per share. We entered into the Series C SPAs for an aggregate of 872,250 shares of Series C Preferred Stock. Series C SPAs for 122,000 shares were subsequently rescinded prior to funding, and no shares were issued in connection therewith. As of the date of the prospectus, an aggregate of 750,250 shares of Series C Preferred Stock have been sold and are issued and outstanding.. As of the date of the prospectus, 750,250 shares of Series C Preferred Stock were issued and outstanding. Upon receipt of funds by the escrow agent, the purchase price payable by the Series C Preferred Stock investors shall be deposited into a segregated escrow account, pursuant to the terms of an escrow agreement between the Company and the escrow agent, and disbursed in accordance therewith, which funds shall be released to the Company only upon the consummation of the offering or, upon a redemption or termination pursuant to the Series C SPA, released to the investors in an amount equal to the principal invested plus all accrued and unpaid dividends.

As of the date of the prospectus, the Company has $3,001,000 in principal, together with accrued interest, held in escrow pursuant to the Series C Preferred Stock subscriptions.

Description of the Business

Collab Z has developed its pioneering Collab Platform, which it believes is a first-of-its-kind Community-Based Property Management model that is designed to replace traditional property management practice by enabling community involvement and by leveraging modern technology, including artificial intelligence features currently under development. Our approach actively involves tenants and other skilled community members in the management process, handling leasing and daily operations in a way that minimizes conflicts of interest and improves tenant satisfaction. With a five-year lead over new market entrants to our knowledge, and the ability to scale quickly without local staffing, Collab Z uniquely positions itself against both traditional property management firms and SaaS-based PropTech competitors.

Our mission is to democratize property management and to foster a more engaged community of tenants, property owners, and professional service providers to maximize asset value and to create a sustainable, decentralized organization that benefits all stakeholders involved.

Our vision is to revolutionize the real estate sector by maximizing community engagement in their living and working spaces for an autonomous and collaborative living experience.

Building an eco-system in property management, we are a people-first organization, focused on delivering value to our property owners, tenants, and professional service provider- while creating sustainable, long-term value for Collab Z's shareholders.

In addition to transforming the property management industry, Collab Z Inc. offers a range of specialized services within its initial ecosystem. These services maximize the value of our strategically developed resources, delivering comprehensive solutions to our stakeholders. Our EB-5 Immigration Investor Services source USCIS-qualified investment projects and assist EB-5 investors with project selection, compliance documentation, and application support. In Renovation Management, we streamline property renovation processes with professional oversight. Our Procurement Service provides expert insights during the construction material specification and design phases. For Development and Construction Management, we oversee projects to ensure timely, on-budget completion. In addition, we deliver tailored solutions to address complex development challenges.

At first glance, these specialized services may seem unrelated to our core business. However, as an early-stage startup, Collab Z has strategically leveraged its robust industry network to drive operational efficiency and profitability. For example:

● Collab Z recently completed a development project at 1773 Oxford Street, Berkeley, California in May 2025, and assumed the role of property manager beginning June 1, 2025.

● An equity investor in Collab Z's 1773 Oxford Street development project helped us secure a 48-unit multifamily property management contract in December 2024.

● A Berkeley-based general contractor, engaged on several Collab Z - managed renovation projects, successfully referred an EB-5 investor in mid-2024.

As we continue building our business ecosystem, Collab Z will transition toward a more focused and scalable operational model. Our core emphasis will be on community-based property management, while we strategically scale down ancillary services such as development and construction management, renovation management, and EB-5 Immigration Investor Services. This streamlined approach will enable us to concentrate resources on expanding and enhancing our innovative property management solutions in the multifamily housing sector.

The Current Industry Challenge, Our Solution, and Our Opportunity

The Challenge

The property management industry faces longstanding inefficiencies and high costs due to outdated value chain structures. Collab Z has identified key pain points and opportunities for transformation:

1. Inefficiency in Traditional Models: Legacy property management structures are bloated with excessive layers of human oversight and reliance on third-party service providers. This increases management costs, creates long lead times, reduces transparency, and often results in misaligned interests between stakeholders.

2. Low Tenant Satisfaction: Traditional systems overlook the potential contributions of tenants who are willing to assist with routine tasks, such as communications, minor repairs, maintenance requests, and leasing coordination. This underutilization contributes to lower tenant satisfaction, higher turnover rates, and poorly maintained properties.

3. Scalability Challenges: Traditional models struggle to scale across multiple properties and regions due to their dependence on local staffing and manual processes. This increases operational complexity and limits growth opportunities.

4. Lag in Technology Adoption: Compared to other industries, property management has been slow to adopt disruptive technologies that could overhaul outdated operational models. This presents a significant opportunity for innovation.

Our Solution

Collab Z has developed its Collab Platform, a community-based property management solution that directly connects tenants with property management tasks, offering them financial incentives to contribute to their living environment and foster stronger community connections. In addition, Collab Z is currently developing an AI-enhanced, community-based property management platform, CollabAPP, designed to fundamentally transform traditional property management processes. AI-enhanced features are currently under development, with phased launches planned over an 18-month period starting in early 2025.

Based on our data, in comparing our model to the traditional model, our model enhances occupancy rate, eliminates unnecessary management layers, reduces operating expenses, and improves tenant satisfaction by delivering responsive services through Community Pros and professional service providers. Also, the Collab Platform enables faster entry into new markets without building local teams.

As part of this model, Community Pros ("CPs") are tenants who assist with property management tasks, such as leasing showings, minor repairs, administrative work, and Customer support, in exchange for financial incentives.

For repair and maintenance tasks requiring specialized expertise, professional service providers (licensed contractors such as HVAC, plumbing, and electrical repair specialists) handle the work.

CPs play a coordination and communication role, similar to property managers, contacting professional service providers, scheduling service appointments, and ensuring that repairs are completed as expected in a timely manner.

After more than five years of refining our disruptive approach, Collab Z has established itself as a market leader, with the following key competitive advantages:

1. First-Mover Advantage and Industry Recognition

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| &nbsp;&nbsp;&nbsp;&nbsp;o | Experience and Market Penetration: With a five-year head start, Collab Z holds a significant advantage in experience, technology deployment, and market reach. |

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| &nbsp;&nbsp;&nbsp;&nbsp;o | Industry Validation: Recognized by esteemed organizations such as the MIT Center for Real Estate, Propmodo, and Yahoo Finance, Collab Z's innovative model is endorsed by industry leaders. |

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2. Proprietary Community-Based Property Management Model

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| &nbsp;&nbsp;&nbsp;&nbsp;o | Unlike traditional SaaS PropTech solutions (e.g., Buildium) or task-matching platforms (e.g., TaskRabbit), Collab Z integrates tenants directly into property management operations. This minimizes reliance on third-party managers, maximizing efficiency. |

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3. Quantifiable Metrics

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| &nbsp;&nbsp;&nbsp;&nbsp;o | Operational Efficiency: Collab Z consistently maintains near-100% occupancy rates, far surpassing the industry average of ~95% (Source: Medium, January 2025). |

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| &nbsp;&nbsp;&nbsp;&nbsp;o | Scalable Market Expansion: Targeting a $5.6 trillion addressable residential rental market (Source: Statista, July 2024), Collab Z actively operates in four markets, managing 13 properties at full occupancy as of 2024. |

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4. Competitive Positioning

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| &nbsp;&nbsp;&nbsp;&nbsp;o | Versus Traditional Property Managers: Traditional property management firms typically rely on centralized, full-time staffing models that result in higher overhead and slower responsiveness across geographically dispersed portfolios. In contrast, Collab Z employs a decentralized, community-enabled operating model that engages residents and local service providers through a digitally managed platform. This structure allows Collab Z to reduce operating costs and scale efficiently without the need for extensive local staffing. |

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| &nbsp;&nbsp;&nbsp;&nbsp;o | Versus SaaS PropTech: Most PropTech providers, including industry incumbents such as Yardi and Buildium, offer software solutions that support—but do not replace—traditional property management infrastructure. Collab Z takes a fundamentally different approach: our platform integrates operational workflows, resident participation, and AI-driven automation into a single system that assumes responsibility for managing day-to-day property operations. Rather than serving traditional property managers, our solution displaces them entirely in many cases, particularly where operational inefficiencies are most acute.<br>Collab Z's model has attracted academic and media attention due to its unconventional structure and early operational success. Our innovative model has been recognized in industry-specific publications such as Propmodo and Yahoo Finance, and by esteemed academic institutions such as the MIT Center for Real Estate, which highlights Collab Z's unique approach in the PropTech industry.<br>Collab Z's founder, Mr. Qian Wang, actively supports innovation at the MIT Center for Real Estate, where he completed his second Master of Science degree. In 2022, Mr. Wang established the Wang Real Estate Innovation Fund at MIT, directly contributing to research initiatives aimed at advancing PropTech solutions. This collaboration provides Collab Z access to cutting-edge industry research and resources, significantly enhancing our capacity for innovation. Despite competition from major public companies with considerable technical resources, our strategic academic partnerships and distinct business model uniquely position Collab Z to address the longstanding inefficiencies and effectively transform the traditionally conservative multifamily property management market. |

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5. Implementation Success Stories

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| &nbsp;&nbsp;&nbsp;&nbsp;o | 1742 Spruce Street, Berkeley, CA: Since Collab Z's takeover in 2021, occupancy has increased from 85% to 100%, resulting in a 22% rise in average annual revenue. |

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| &nbsp;&nbsp;&nbsp;&nbsp;o | 310 Waco Avenue, League City, TX: Within two months of assuming management in January 2025, Collab transformed the property from a monthly loss of $7,891 to a profit of $21,816, driven by a 47% reduction in operating costs—from $63,000 to $33,000 |

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6. Acknowledgment of Competition Risks

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| &nbsp;&nbsp;&nbsp;&nbsp;o | While some competitors may have greater technical resources, Collab Z distinguishes itself through its AI-powered, community-based model. This approach delivers transformative improvements over traditional and incremental technologies in the industry. |

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Our Opportunity

According to IBIS World, a leading global industry research and market analysis firm the property management industry reached $128.3 billion in revenue by the end of 2024, growing at a CAGR of 2.0%. As the first community-based property management solution, to our knowledge Collab Z is positioned to revolutionize this massive market.

With over 300,000 property management companies and 20 million rental properties in the U.S. (Sources: Truelist, February 2024; Rubyhome, August 2023), the opportunity for disruption is immense. The Collab Platform is designed to:

● Streamline operations

● Enhance tenant engagement

● Maximize property value

By applying a community-driven model and planning the integration of AI-powered features currently under development, Collab Z addresses longstanding inefficiencies while scaling across the nation's extensive rental property network.

Principal Products and Services

AI-Enhanced Property Management Platform Overview

Collab Z is developing an AI-enhanced, community-based property management platform designed to fundamentally transform traditional property management processes. The Collab Platform reimagines property management by integrating tenants into day-to-day operations, streamlining workflows, and reducing operational overhead. The model draws inspiration from transformative technology platforms such as Uber and Airbnb, replacing conventional centralized property management structures with a decentralized, scalable, and tenant-driven approach.

Current Systems Features and Tools

Collab Z began system development in March 2021. After an iterative development process, Collab Z launched its Minimum Viable Product ("MVP") in December 2023. The Company is currently operating version 3.0 of its system.

The current property management system is built on a modular architecture, integrating third-party SaaS solutions with proprietary software through a robust API framework developed by Collab Z's engineering team. This architecture allows Collab Z to address diverse operational requirements while supporting its decentralized, community-based management model.

Integrated Third-Party Systems

● **Discord** serves as Collab's primary real-time communication tool between the operations team, tenants, and Community Pros ("CPs"). CPs claim and complete tasks via Discord, while administrators approve and oversee task completion. Discord is utilized under a standard SaaS subscription model, without exclusive licensing.

● **Buildium** manages leasing, rent collection, maintenance tracking, tenant communication, and financial reporting. It includes the Resident Center, a tenant-facing mobile app. Through Resident Center, tenants can (i) pay rent, (ii) submit maintenance requests (with photos), (iii) access lease documents, and (iv) communicate with the operations team. These self-service workflows have improved tenant satisfaction and reduced inbound call volume. While Buildium is a critical component of current operations, Collab Z plans to transition these functions to its proprietary CollabAPP in future phases. Collab Z holds a commercial SaaS license with Buildium, which is non-exclusive and cancellable. Until CollabApp is fully developed and deployed, Resident Center remains the primary tenant portal for core self-service functions. Collab Z does not own or develop Resident Center, but customizes it through Buildium's dashboard. See below the relationship between Resident Center and the in-development CollabAPP.

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|:---|:---|:---|
| Feature | Resident Center | CollabAPP (in Development) |
| Ownership | Buildium SAAS Subscription | Collab Z Inc. |
| User (s) | Residents, Collab Z staff | CPs, Professional service providers, Collab Z staff |
| Core Scope | Tenants can (i) pay rent, (ii) submit maintenance requests, (iii) access lease documents, and (iv) communicate with the operations team. | Unified Hub: CP Task management and marketplace, Tenant self-service, dynamic payments, AI support, leasing and task management, predictive maintenance. |
| AI Functions | None (standard ticketing) | Multi-agent AI layers |
| CP Workflow & Payment | Not Supported | Native: Task claiming, guidance, wallet, CollabPOINTS |
| Development Status | Mature: In use | In Development: Multiphase roadmap |

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● **Retool** facilitates the creation of internal dashboards and administrative interfaces, integrating workflows between leasing, maintenance, and financial management. Retool is employed under a standard SaaS agreement without exclusivity.

● **Webflow** powers Collab's public-facing rental listings and marketing website, which promotes tenant engagement and supports community-building initiatives.

Collab Z is currently developing CollabAPP, a proprietary, unified software platform designed to consolidate these disparate systems. CollabAPP aims to deliver an integrated user experience across all stakeholder groups—tenants, CPs, property owners, and service providers. The application is designed to streamline operations, enhance efficiency, and further validate Collab's community-based business model.

At the core of our model are CPs, tenants who voluntarily opt into the Collab Platform and apply to perform predefined, first-line property management tasks, such as leasing showings, minor repairs, common-area cleaning, package handling, marketing and administrative support. Tasks are generated through tenant service requests, which are submitted through the Resident Center app. Collab staff review these requests, convert them into tasks, and publish them to the Collab Platform (integrated with Discord), or assign them directly to CPs based on availability, skill, or urgency. CPs then claim the task, complete the work, and upload verification (e.g., photos) through the platform. After staff approval, payments are automatically disbursed via Brex ACH transfer and recorded in our accounting system, Buildium.

Task compensation is dynamically priced based on historical internal labor cost data, local market handyman wages, and standardized task durations, with adjustments for task complexity and urgency. CPs are compensated either in cash or through rent credits. CPs describe this flexible, part-time structure as a meaningful opportunity to earn supplemental income without leaving their building while engaging with their community. In addition to financial incentives, CPs gain valuable experience in hospitality and maintenance and enjoy increased recognition within their communities.

By engaging CPs, Collab Z eliminates the need for fixed payroll and onsite staffing typically associated with traditional property management. Because CPs are located on-site and familiar with the properties, response times are

shorter, and service quality is improved. Tasks are paid only upon completion, further aligning incentives and controlling costs.

Insights and Learnings

Through its operational deployment of third-party SaaS solutions and proprietary technologies, Collab has identified key strengths and areas for improvement.

Strengths

● Enhanced Task Visibility and Accountability: Centralized task management tools have increased operational efficiency by enabling administrators to oversee task progress and ensure timely resolution of tenant requests.

● Improved Tenant Satisfaction: Through tools such as Buildium's Resident Center App, tenants have access to self-service functionality including rent payments, maintenance requests, and lease management, resulting in streamlined tenant experiences.

● Community Empowerment: CPs are incentivized to perform property management tasks, fostering tenant ownership and community engagement while reducing operating costs.

● Data-Driven Insights: Integrated analytics tools provide actionable data on property performance and tenant behaviors, informing strategic decision-making.

● Scalability: The modular system architecture supports expansion across multiple markets and properties without disruption.

Challenges

● Platform Fragmentation: Multiple systems result in redundant workflows and limited integration, hindering productivity.

● Manual Processes: Heavy reliance on manual inputs introduces error risks and slows routine processes.

● Limited Data Integration: Siloed data reduces visibility and restricts comprehensive operational oversight.

● Limited External Adoption Potential: Collab Z's current customized integrations present challenges for external deployment without significant reconfiguration.

 

Opportunities and the Vision for CollabAPP

CollabAPP, currently under development, is designed as a centralized, AI-powered platform that addresses these challenges. CollabAPP will serve as the digital hub for property management operations, integrating tenants, CPs, property owners, and professional service providers into a single ecosystem.

CollabAPP Core Features and Functionalities

1. Centralized Task Management: A unified platform will manage the entire lifecycle of a task, from creation and assignment through to execution, verification, and compensation.

2. Enhanced Security and Verification: CollabAPP will incorporate user verification and real-time tracking for all participants and tasks through unique digital IDs.

3. Process Automation: Automation will reduce manual intervention through AI-driven task prioritization, automated leasing workflows, dynamic showing scheduling, and real-time rent pricing adjustments.

4. Integrated Communication Tools: AI-enhanced communication channels will allow personalized real-time engagement between all stakeholders, including tenants, CPs, service providers, and Collab Z staff.

5. Advanced Analytics: Real-time reporting and data visualization tools will provide insights into property operations, tenant satisfaction, and financial performance.

6. Community Engagement and Incentives: Gamified rewards and recognition programs will incentivize CPs, promoting participation and building community cohesion.

7. AI Personal Assistants: AI assistants will support tenants and CPs with automated scheduling, maintenance requests, rent payments, and task prioritization.

8. Market Adaptability: While designed for Collab Z's portfolio, CollabAPP will be adaptable for deployment by other property managers and individual landlords, offering broad market potential.

Unique Features for Community Pros (CPs)

CollabAPP provides CPs with comprehensive tools to engage with property management tasks:

1. Community Enrollment: Tenants join the Collab community by creating a profile within the app.

2. Task Claiming and Execution: CPs can claim available tasks, access step-by-step guidance, and track their progress through the platform.

3. Compensation Requests and Wallet Management: CPs submit requests for payment through the app, with earnings deposited into an in-app wallet. Funds can be applied toward rent or withdrawn as cash.

4. Real-Time Communication: Task-specific chat threads and AI-driven support provide immediate answers and collaborative channels.

5. CollabPOINTS and Ratings System: CPs accumulate points based on performance, unlocking additional earnings and task opportunities.

6. Dynamic Pricing and Predictive Maintenance: AI dynamically adjusts compensation based on task complexity and market rates, while predictive analytics facilitate proactive maintenance scheduling.

AI Integration and Roadmap

CollabAPP will leverage AI to increase efficiency and scalability:

● AI-Powered Task Management: Automated task assignment, intelligent matching, and dynamic scheduling will optimize labor allocation.

● AI-Driven Support Chatbots: Provide immediate, 24/7 support for tenants and CPs.

● Dynamic Leasing and Pricing: Automated market analysis will optimize rental rates and minimize vacancy.

● Predictive Maintenance: AI analytics will identify potential maintenance issues, scheduling preventive actions to reduce costs.

Key Stakeholder Benefits

For Tenants and CPs

● Economic Empowerment: CPs gain financial rewards and professional development opportunities.

● Improved Living Standards: Faster maintenance and support increase tenant satisfaction.

● Community Building: Shared responsibilities foster a collaborative, engaged living environment.

For Property Owners

● Reduced Operating Costs: The decentralized management model, combined with AI-driven workflow automation that will be rolled out over time, reduces traditional overhead costs.

● Higher Occupancy and Revenue: Dynamic pricing and enhanced tenant satisfaction improve retention and revenue.

● Scalability: Collab Z's model facilitates expansion into new markets with minimal upfront investment.

For Professional Service Providers

● Incentivized Service Quality: Merit-based recognition ensures high service standards.

● Faster Payments: Our automated system ensures service providers receive payments within 24 hours of completing their work.

For Collab Z Inc.

● Higher Profitability: Reduced operational costs increase margins on property management contracts.

● Scalable Market Entry: Minimal staffing requirements enable rapid entry into new markets.

● Network Effects: Collab Z's growing community network drives organic demand for its services.

System Development Plan and Timeline

CollabAPP development is structured as a phased, 1.5-year roadmap starting in early 2025:

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| Phase | Timeline | Milestone |
| Phase I | Q2 2025 | Launched CP onboarding; deployed AI-powered repair and maintenance automation |
| Phase II | Q4 2025 | Released full task management module |
| Phase III | Q1 2026 | Deployed AI leasing and showing task automation |
| Phase IV | Q3 2026 | Implement AI move-in/move-out assistance and full property lifecycle management |

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Technology Infrastructure and AI Initiatives

● Proprietary AI Development: Collab Z's AI solutions are built on proprietary datasets and Google Cloud's AI services (including Vertex AI).

● Open Source and Third-Party Integration: Collab Z leverages open-source frameworks (TensorFlow, Hugging Face, PyTorch) and third-party solutions for scheduling and computer vision applications.

● Unified Authentication System: A centralized identity system will integrate CP performance history for quality assurance and tracking.

Future Potential Use of CollabAPP in Development, Construction, Renovation, Procurement and EB-5 Business

The Collab Platform is primarily designed as a community-based property management solution that enhances efficiency, reduces operational costs, and increases tenant engagement through AI-driven automation. While its current primary focus is on residential property management, certain features of the platform can support related business areas, including development, construction, renovation, procurement, and EB-5 services.

The platform holds the potential to expand its capabilities into these areas in the following ways:

● Development & Construction: By leveraging AI for project tracking and real-time workflow automation, the platform could effectively monitor project timelines, budgets, and coordinate contractors.

● Renovation Management: Utilizing its decentralized task management model, the platform could streamline bidding processes, schedule, and track the performance of renovation projects.

● Procurement: Features for managing vendors and suppliers could be added to allow for real-time order tracking, automate invoicing, and manage the supply chain more effectively.

● EB-5 Business Services: Although not a primary function, the platform could act as a centralized hub for EB-5 investment projects, offering real-time updates on construction progress, leasing performance, and compliance milestones.

Collab Z is dedicated to the ongoing evolution of its platform. As system development advances, these areas might be integrated to boost operational efficiency across all business verticals.

Business Model

As the company grows its property management portfolio and enters new markets, these efforts serve as a bridge between the company's current business model and its future business model, which prioritizes scalability, efficiency, and community engagement through the Collab Platform.

Current Business Model

The current business model reflects Collab Z's foundational operations, encompassing Property Management Services, Development and Construction Management Businesses, Procurement Services, Renovation Management, and EB-5 Immigration Investor Services.

1. Property Management Services

Collab Z operates as a full-service property management provider, engaging the tenants to manage the day-to-day operations of rental properties. This includes leasing, vendor coordination, and property maintenance.

Leasing Process:

● Tenant-Led Property Showings: Tenants actively participate in the leasing process by hosting property tours for prospective tenants. Their participation is tracked on the Collab Platform, and they are compensated accordingly, promoting active involvement and accountability.

Vendor Coordination:

● Tenant-Initiated Vendor Engagement: Tenants play a coordination role, similar to property managers, contacting professional service providers, scheduling service appointments, and ensuring that repairs are completed in a timely manner.

Property Maintenance Services:

● Task Claiming & Execution: Tenants can claim and complete repair & maintenance tasks such as minor maintenance requests, cleaning of common areas, and handling of packages.

● Automated Compensation: The platform ensures that tenants are promptly compensated for their services, with instant payments processed for completed tasks, fostering a culture of efficiency and fairness.

● This innovative approach utilizes the Collab Platform and integrates tenants as CPs, transforming traditional management structures into a decentralized, tenant-driven system that enhances efficiency and cost-effectiveness.

Revenue is generated through a fixed percentage of monthly lease income, fees for managing property-related expenses like repairs and maintenance, and commissions on new lease agreements. Certain properties also feature a profit-sharing model, where Collab Z earns a share of the rental income above guaranteed thresholds.

2. Development and Construction Management

The Company oversees development and construction projects, ensuring timely completion within budget. These services contribute to property value enhancement, with development fees recognized monthly over the service period. Collab Z utilizes its extensive industry experience and resources to provide comprehensive professional services to multifamily developers, particularly in markets where it has a well-established presence.

Since early 2022, Collab has been engaged in the construction management of a new development at 1773 Oxford Street, Berkeley, California. This project is a 5-story, 24-unit student housing property with 81 beds, with a total estimated development cost of $20.5 million. Construction commenced in October 2022 and was completed in May 2025. In this role, Collab Z provides multiple services:

● Design Consulting: Collab Z advises on unit types, furniture layouts, public areas, building material selections, and amenities to ensure they align with leasing and operational strategies, utilizing insights from tenant community user studies.

● Procurement Consulting: Collab Z assists with sourcing and importing building materials from international markets, such as China and Malaysia, achieving significant cost reductions averaging 45%.

● Pre-Operating Consulting: Services include rental pricing recommendations, leasing preparations, pre-leasing marketing, and operational license applications, often leveraging Collab's Z extensive community resources.

Further expanding its portfolio, Collab Z began providing similar consulting services on January 1, 2025, for another significant project located at 2425 Durant Avenue, Berkeley, California. Planned as a 20-story student housing building with 169 units and 513 beds, this project covers 145,920 square feet and is currently in the entitlement process, with an anticipated completion date of August 2030.

Material Terms of Agreements and Related Risks:

● For both projects, Collab's Z base fees are structured to be paid either monthly or upon completion of specific services.

● There are provisions allowing Collab Z to terminate the agreements if fees remain unpaid for more than 30 days.

● Performance-based bonuses are subject to the discretion of the developers and owners, posing a risk of non-full payment if the bonus exceeds initial calculations.

● As a consultant during the development phase, Collab Z does not bear responsibility for financial performance, construction quality, or the completion schedule of the projects. Decision-making authority rests with each project's respective developer and owner.

3. Procurement Services

Collab Z facilitates the sourcing of construction materials, particularly from international suppliers, streamlining procurement for property owners. Fees are recognized upon the completion of the service.

4. Renovation Management

Collab Z manages property acquisition, renovation, and disposition projects, generating fees recognized throughout the project duration and upon specific milestones. This service ensures properties meet market demands and achieve maximum value.

5. EB-5 Immigration Investor Services

The company identifies EB-5 investment projects and assists investors with project selection, compliance documentation, and support during the application process. Revenue is recognized upon submission of the EB-5 application package.

6. Consulting Services

The Company provides consulting services to third parties that are defined by service agreements. Consulting services may include terms whereby there are a set of deliverables required for which revenue will be recognized at a point in time when the deliverables are satisfied, or may relate to services that are performed periodically and recognized over time. Each contract is assessed for performance obligations. There is generally no right of return or refund related to these services.

*Related Party Relationships* 

A significant aspect of our current business model is that a majority of our revenue, accounting for 65% in the fiscal year ended September 30, 2025, is derived from services provided to the properties under common control and management of the related parties. These services primarily include property management, development, renovation and procurement. Revenue from these services is recognized according to the progress and completion of specified tasks. Transactions with these related parties are conducted under terms that are revisited periodically to align with market practices and ensure compliance with regulatory standards. While these relationships contribute to our revenue streams, they are managed with careful consideration to maintain transparency and independence in our operations. As Collab Z evolves, our focus on refining our community-based property management services will continue alongside a review and potential adjustment of our involvement in transactions with related parties. See "*Current Relationships And Related Party Transactions*" for a more detailed discussion.

Future Business Model

As Collab Z evolves, we will transition toward a more focused and scalable operational model, emphasizing community-based property management as the core business, while scaling down other activities such as development, renovation management, and EB-5 services. This pivot reflects the Company's strategic emphasis on long-term sustainability and market differentiation through its Collab Platform.

In the fiscal year 2025, our revenue streams were diversely distributed across several business units. Property management, which is becoming our primary focus, contributed 44% to our total revenue. Development and construction management accounted for 11%, procurement services constituted 3%, and consulting income contributed 42% of our revenue.

Reflecting our strategic refocus, we intend to continue to phase out EB-5 Immigration Investor Services within the next year. This decision aligns with our strategy to concentrate resources and expertise on enhancing our core property management services, responding to changes in market demand and regulatory landscapes. While development, renovation, and procurement services currently contribute to our diversified revenue streams, we plan to significantly scale down these activities. Over the next two years, we expect their combined contributions to revenue will make up a less significant portion of revenue as we focus on property management services.

This pivot underscores our commitment to sustainability and efficiency, leveraging our proprietary platform to enhance property management services. By concentrating on our core competencies, we aim to strengthen our market position and ensure long-term growth and profitability. The outlined changes reflect a deliberate strategy to optimize our business operations and focus on areas with the highest growth potential and alignment with our long-term strategic goals. Detailed plans for this transition are subject to ongoing review by our management team to ensure alignment with evolving market conditions and company objectives.

Growth Opportunities

We aim to expand our technological offerings, improve our AI capabilities, and increase market penetration across new geographic regions. Our focus is on enhancing user engagement and automating more task management functions to increase tenant satisfaction and maximize property value.

Beyond these core objectives, Collab Z plans to scale up through various innovative approaches:

1. Partnership with General Partners (GPs)

Collab Z targets partnerships with GPs who manage groups of multifamily properties. By entering into partnerships and taking control of the properties, Collab Z aligns its community-based property management strategies directly with GPs' objectives of enhancing asset value and operational efficiency.

2. Acquisition and Transformation of Traditional Property Management Firms

We are positioned to acquire or take control of traditional property management companies, enabling us to manage their portfolios directly. This strategy not only expands our market presence but also integrates existing operations into our innovative management framework.

3. Collaboration with Debt Financing Institutions:

Collab Z plans to partner with financing institutions to take control of underperforming properties. By injecting equity and improving operations, we provide additional guarantees for borrowers. In return, borrowers agree to allow Collab Z to manage the properties, for which we will charge a premium for our enhanced management services.

4. Joint Ventures with Local Operators:

In March and April 2025, we entered into five joint venture agreements with unaffiliated third parties to establish property management operations in select markets. Each joint venture is jointly owned by Collab Z (40%) and our local partner (60%). Under these agreements, Collab Z contributes its technology platform, brand, and management expertise, while our partners contribute local operational expertise and access to regional opportunities. These entities operate independently under separate operating agreements and reflect a strategic approach to scaling via regionally focused partnerships. Collab Z's aggregate investment across these five joint ventures totaled $120,000. This joint venture strategy allows Collab Z to accelerate market entry, reduce overhead, and maintain flexibility while expanding the reach of our community-based property management model in collaboration with experienced local operators.

Competition

Competitive Disadvantages

Despite its innovative approach, Collab Z faces several competitive disadvantages that stem from its pioneering status in the property management industry:

1. Regulatory and Compliance Challenges

As a new entrant with a novel business model, Collab Z must navigate a complex landscape of local, state, and federal regulations that govern property management and real estate investment. Adapting our operations to meet these stringent requirements can be resource-intensive and may slow our market entry and scaling efforts.

2. Market Acceptance

Our community-based management model, which involves profits sharing, represents a significant departure from traditional property management practices. Convincing property owners of the benefits of our model poses a substantial challenge. Initial skepticism and resistance to change can hinder adoption rates and growth, particularly among established players with entrenched interests and traditional business operations.

3. Initial Trust and Credibility

Building trust with property owners and investors is crucial for our business model to succeed. As a new player in the market, establishing credibility takes time and results, particularly when asking stakeholders to embrace a model that shifts some control and profit-sharing structures. Overcoming initial doubts and demonstrating the long-term value and operational efficiencies of our platform will require not only effective communication and marketing but also proven case studies and endorsements from early adopters.

To mitigate these disadvantages, Collab Z is committed to rigorous compliance, transparent operations, and ongoing dialogue with all stakeholders. Educating potential clients about the tangible benefits of our model through proven case studies will be crucial. Additionally, leveraging partnerships with industry leaders and influencers can accelerate trust-building and market penetration.

Competitive Advantages

Collab Z stands out in the PropTech revolution through its unique approach to property management and property value maximization. Here's an overview of our competitive advantages based on the integrated and innovative strategies we employ:

1. Technology

Collab Z's proprietary technology, namely, the Collab Home application, seamlessly integrates the capabilities of traditional task management platforms with the comprehensive features of conventional property management SaaS systems into a unique, advanced ecosystem. Our technology facilitates direct engagement between tenants and tasks, thereby streamlining property management processes. This direct linkage not only eliminates superfluous management layers, enhancing operational efficiency, but also greatly diminishes the need for extensive local staffing, a typical obstacle to scalability in conventional models.

Furthermore, our platform leverages a community-driven approach, designed to maximize property value by actively involving tenants in the management process. This involvement boosts tenant commitment and satisfaction, which are crucial for long-term property performance. By integrating these innovative elements, Collab Z provides a robust competitive edge, offering unmatched scalability and enhanced property value optimization, setting a standard in the PropTech industry that is challenging for competitors to replicate.

2. Unique Business Model

Collab Z's unique business model aligns our interests directly with those of property owners and tenants. This approach deepens our commitment to the long-term success of these properties. This model not only fosters trust and alignment with property owners but also promotes sustained engagement and profitability.

3. Data-Driven Innovation and AI Development

In managing assets over $172 million over the past five years, Collab Z has accumulated a significant data repository. This extensive data collection is foundational for our ongoing development of AI technologies. While our AI capabilities are currently under development, this initiative will enable us to significantly enhance operational efficiency and enable rapid market entry.

4. Real Estate Expertise

Collab Z's team boasts over 56 years of combined experience in real estate investment, development, and asset management. Collectively, our team members have developed and managed more than $10 billion in real estate assets over the course of their careers. This deep industry knowledge ensures that we are equipped to handle complex market dynamics and provide superior asset and property management services.

Litigation

To date, there are no material legal proceedings or government actions against Collab Z. We maintain robust legal and compliance protocols to manage risks associated with our business.

Employees

As of the date of this prospectus, Collab Z has 15 full-time team members, including employees and full-time contractors engaged through third-party service providers. We are committed to maintaining an inclusive, diverse, and innovative workplace, recognized in the industry for our excellent work environment.

Property

We do not own any real property. Our office is located at 2001 Addison St, Suite 300, Berkeley, CA 94704. Our mailing address is 29 Orinda Way, Unit 2060, Orinda, California 94563.

**Intellectual Property**

As of the date of this registration statement, we do not own any registered patents, copyrights, or other forms of intellectual property, other than the intellectual property related to our CollabAPP, which includes proprietary software code, trade secrets, operating methodologies, and common law trademark rights associated with our branding. To date, our platform and application are developed and maintained by us and are protected through a combination of contractual protections, confidentiality agreements, and applicable intellectual property laws. We have not engaged in any material acquisitions, sales, transfers, assignments, or licensing of intellectual property to date. Accordingly, there have been no material effects on our business or operations related to intellectual property transactions.

**Domain**

Our principal domain name is https://living.collabhome.io/, which we use in connection with our business operations and online presence.

MANAGEMENT

Directors and Executive Officers

The following sets forth information on our executive officers, directors, and director nominees as of the date of this prospectus.

---

| | | |
|:---|:---|:---|
| Name | Age | Position |
| William J. Caragol | 58 | Chairman of the Board |
| Qiaojun Lai | 33 | Chief Executive Officer and Director |
| Jin Kuang | 55 | Chief Financial Officer |
| Matthew Gordon | 53 | Director Nominee <sup>(1)</sup> |
| David Kivitz | 42 | Independent Director Nominee <sup>(1)</sup> |
| Zhe Zhang | 47 | Independent Director Nominee <sup>(1)</sup> |

---

<sup>(1)</sup> To be appointed to our board of directors effective immediately upon the pricing of this offering.

Executive Officers and Directors

**William J. Caragol** is the Chairman of the Board of the Company since May 2025. Mr. Caragol has over thirty years of experience working with growth stage companies. In 2018, he founded and is the Managing Director of Quidem LLC, a corporate strategic and financial advisory firm. Mr. Caragol served as the Chief Financial Officer and Chief Operating Officer of Iron Horse Acquisitions Corp. from December 2023 to September 2025. Since December 2024, Mr. Caragol has served as a director and the Chief Financial Officer of Iron Horse Acquisition II Corp. Since July 2021 he has been the Chief Financial Officer of Mainz Biomed N.V. (NASDAQ: MYNZ), a molecular genetics diagnostic company specializing in the early detection of cancer. Since July 2021, Mr. Caragol has served on the Board of Directors of Worksport Ltd. (NASDAQ: WKSP), a growth stage technology company, and sits on the Audit Committee, Compensation Committee and the Corporate Governance Committee. Since July 2023, Mr. Caragol has served on the Board of Directors of DeFi Development Corp. (NASDAQ: DFDV), a real-estate software firm and Solana-focused treasury company, and sits on the Audit Committee, Compensation Committee and the Corporate Governance Committee. From 2021 to 2023, Mr. Caragol served on the Board of Directors and was Chairman of the Audit Committee of Greenbox POS (NASDAQ: GBOX) a financial technology company leveraging proprietary blockchain security to build customized payment solutions. Mr. Caragol earned a B.S. in business administration and accounting from Washington & Lee University and is a member of the American Institute of Certified Public Accountants.

**Qiaojun Lai** joined Collab CA LLC as Director of Acquisitions in February 2023 and was appointed CEO of Collab Z Inc. in August 2024. She has over 8 years of experience in real estate accounting and portfolio management in Canada and the U.S. Prior to joining Collab CA LLC, she worked on $2 billion real estate asset operation at Hungerford Properties (from December 2017 to June 2020 and again from March 2021 to July 2021) and Bosa Properties (from September 2020 to March 2021). Qiaojun Lai obtained a bachelor's degree in Accounting from the University of British Columbia (UBC) and a Master of Science degree in Real Estate Development from Massachusetts Institute of Technology (MIT). Additionally, she previously held a CPA designation in Canada.

**Jin Kuang** joined Collab CA LLC as CFO in January 2023 and was appointed CFO of Collab Z inc. in August 2024. She has over 15 years of extensive professional expertise in various financial domains gained across the USA and Canada, including IFRS, US GAAP, financial reporting, financial planning, merger and acquisition, financial analysis and tax. She has also spent over a decade in progressively responsible financial leadership roles within publicly traded companies. Between July 2012 and December 2022, Ms. Kuang has served as the CFO at OOOOO Entertainment Commerce Limited which is a public company listed on the Toronto Security Venture Exchange ("TSXV") and OTCQB. During the same time, she also served as a part-time CFO for Gourmet Ocean Products Inc. which is also listed on TSXV. Over the years, Jin has served as CFO for multiple publicly listed companies, in addition to her years of auditing experience with KPMG LLP Chartered Accounts. Jin holds a BA in Accounting and an MBA from the University of Northeastern China, along with a US-Certified Public Accountant and CGA designation.

Director Nominees

**Matthew Gordon** is a director nominee. Mr. Gordon is the Chief Executive Officer and founder of E3iG, a private equity and public policy consulting firm, which he founded in 2013. His career spans business operations, finance, and law.

As a legal professional, Mr. Gordon has advised some of the largest financial services firms in the world, including Goldman Sachs. Mr. Gordon is a recognized expert in the legal and structural aspects of investment-based immigration, particularly the EB-5 visa program. He is the editor of *The EB-5 Book*, the leading legal treatise on the EB-5 program, and is a frequent author and lecturer on related topics. His policy work includes engagements with Harvard University's Kennedy School of Government and the White House. In February 2016, he testified before the House Judiciary Committee as a policy expert on EB-5 matters.

Over the last decade, Mr. Gordon has assisted both companies with both traditional venture and EB-5 project related companies. His work has helped these companies secure tens of millions of financing for their development efforts in a variety of sectors including sports and recreation, health and wellness, and both residential and commercial real estate.

Mr. Gordon is a licensed attorney in New York. He began his legal career practicing mergers and acquisitions law at premier Wall Street firms, including Fried Frank and Sullivan & Cromwell. He later led the U.S. division of a Swiss multinational corporation before transitioning into investment banking and finance.

He holds a B.S. in Policy Analysis from Cornell University and a J.D., *cum laude*, from the University of Pennsylvania School of Law.

Independent Directors Nominees

**David Kivitz** is an independent director nominee. Mr. Kivitz has over twenty years of professional experience working with growth-stage companies. In 2018, he founded and serves as the CEO and Board Director at XS Financial, a company specializing in financing large-ticket equipment. From 2019 to 2024, the company was publicly listed on the Canadian Securities Exchange and the OTC markets in the U.S. In 2024, XS Financial was acquired and taken private by Axar Capital and Mavik Capital, with Mr. Kivitz continuing in his role as CEO. Before founding XS Financial, Mr. Kivitz was Managing Partner at Alta Verde Group ("AVG"), which he co-founded in 2009 to acquire distressed real estate assets impacted by the Global Financial Crisis and housing market downturn. AVG successfully acquired and restructured a portfolio of 300 finished lots across four master-planned housing communities in Southern California. The company fully developed its land portfolio between 2013 and 2018. Before AVG, Mr. Kivitz worked as an Investment Analyst at Hamilton Lane Advisors and began his career as a Real Estate Investment Analyst in the Structured Finance Group at CapitalSource. Mr. Kivitz earned a B.B.A. from George Washington University and is a member of the Young Presidents Organization (YPO) Philadelphia chapter. Mr. Kivitz previously served on the Board of Directors at Healing Realty Trust, a private REIT that owns and operates medical outpatient buildings.

**Zhe Zhang** is a director nominee. Mr. Zhang has more than eighteen years investment experience in financial industry. He is the co-founder and board member of Edgewater Investments since 2014. Mr. Zhang's investments include SpaceX, Palantir, Virgin Hyperloop One, Hyperloop Transportation Technologies (HTT), Wrightspeed, Virtuosys/VEEA, Eyenovia, BioCancell, QuecTel, Fair, IMX (Intelligent Medicine Exchange), TechWin Technology, Ronbow Brand Inc, Atura Technologies and etc. Mr. Zhang has served on the Board of Directors of Hyperloop Transportation Technologies since August 2016, a disruptive transportation technology company providing fifth generation transportation systems globally. In 2022, he also joined the audit committee of HyperloopTT. In April 2020, Mr. Zhang served on the Board of Directors and sits on the Compensation committee of Ronbow Brands Inc, a fast growing high-end customized European design kitchen cabinets company. Prior to Edgewater Investments, Mr. Zhang worked at Franklin Templeton Investments and Millennium Capital. Mr. Zhang earned MPA with government finance concentration from University of Southern California in 2005 and a B.S. degree from Azusa Pacific University in 2003.

Family Relationships

There are no family relationships among any of our officers, directors, or director nominees.

Involvement in Certain Legal Proceedings

To the best of our knowledge, except as described below, none of our directors, director nominees or executive officers has, during the past ten years:

● been convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);

● had any bankruptcy petition filed by or against the business or property of the person, or of any partnership, corporation, or business association of which he was a general partner or executive officer, either at the time of the bankruptcy filing or within two years prior to that time;

● been subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction or federal or state authority, permanently or temporarily enjoining, barring, suspending or otherwise limiting, his involvement in any type of business, securities, futures, commodities, investment, banking, savings and loan, or insurance activities, or to be associated with persons engaged in any such activity;

● been found by a court of competent jurisdiction in a civil action or by the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;

● been the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated (not including any settlement of a civil proceeding among private litigants), relating to an alleged violation of any federal or state securities or commodities law or regulation, any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

● been the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

Corporate Governance

 

*Governance Structure*

 

*The Board's Role in Risk Oversight*

Our board of directors oversees that the assets of our Company are properly safeguarded, that the appropriate financial and other controls are maintained, and that our business is conducted wisely and in compliance with applicable laws and regulations and proper governance. Included in these responsibilities is the board's oversight of the various risks facing our Company. In this regard, our board seeks to understand and oversee critical business risks. Our board does not view risk in isolation. Risks are considered in virtually every business decision and as part of our business strategy. Our board recognizes that it is neither possible nor prudent to eliminate all risks. Indeed, purposeful and appropriate risk-taking is essential for our company to be competitive on a global basis and to achieve its objectives.

While the board oversees risk management, company management is charged with managing risk. Management communicates routinely with the board and individual directors on the significant risks identified and how they are being managed. Directors are free to, and indeed often do, communicate directly with senior management.

Our board administers its risk oversight function as a whole by making risk oversight a matter of collective consideration. Once the board establishes committees, it is anticipated that much of the work will be delegated to such committees, which will meet regularly and report back to the full board. It is anticipated that the audit committee will oversee risks related to our financial statements, the financial reporting process, accounting and legal matters, that the compensation committee will evaluate the risks and rewards associated with our compensation philosophy and programs, and that the nominating and corporate governance committee will evaluate the risk associated with management decisions and strategic direction.

*Independent Directors*

Under the listing requirements and rules of Nasdaq, independent directors must comprise a majority of our board of directors as a listed company within one year of the closing of this offering.

Our board of directors has undertaken a review of its composition, the composition of its committees and the independence of each director and director nominee. Based upon information requested from and provided by each director and director nominee concerning his or her background, employment and affiliations, including family relationships, our board of directors has determined that each of William J. Caragol, David Kivitz and Zhe Zhang do not have any relationships that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that each of these director nominees is "independent" as that term is defined under the applicable rules and regulations of the Securities and Exchange Commission, or SEC, and the listing requirements and rules of Nasdaq. In making this determination, our board of directors considered the current and prior relationships that each non-employee director nominee has with our company and all other facts and circumstances our board of directors deemed relevant in determining their independence, including the beneficial ownership of our capital stock by each non-employee director nominee.

*Committees of the Board of Directors*

Our board of directors has established an audit committee, compensation committee, and a nominating and corporate governance committee, each of which will have the composition and responsibilities described below and will operate under a charter that has been approved by our board of directors. Prior to the completion of this offering, we intend to make each committee's charter available on our website at https://living.collabhome.io/. In addition, our board of directors may, from time to time, designate one or more additional committees, which shall have the duties and powers granted to them by our board of directors.

 

*<u>Audit Committee</u>*

David Kivitz, Zhe Zhang and William J. Caragol, each of whom will satisfy the "independence" requirements of Rule 10A-3 under the Exchange Act and the Nasdaq listing standards, have been designated to serve on our audit committee prior to the completion of this offering, with David Kivitz serving as the chairman. Our board has determined that David Kivitz qualifies as an "audit committee financial expert." The audit committee will oversee our accounting and financial reporting processes and the audits of the financial statements of our Company. The primary purpose of the audit committee is to discharge the responsibilities of our board of directors with respect to our corporate accounting and financial reporting processes, systems of internal control and financial statement audits, and to oversee our independent registered public accounting firm. Specific responsibilities of our audit committee include:

● helping our board of directors oversees our corporate accounting and financial reporting processes,

● reviewing and discussing with our management the adequacy and effectiveness of our disclosure controls and procedures,

● assisting with the design and implementation of our risk assessment functions,

● managing the selection, engagement, qualifications, independence, and performance of a qualified firm to serve as the independent registered public accounting firm to audit our financial statements,

● discussing the scope and results of the audit with the independent registered public accounting firm, and reviewing, with management and the independent accountants, our interim and year-end operating results,

● developing procedures for employees to submit concerns anonymously about questionable accounting or audit matters,

● reviewing related person transactions,

● obtaining and reviewing a report by the independent registered public accounting firm at least annually that describes our internal quality control procedures, any material issues with such procedures and any steps taken to deal with such issues when required by applicable law, and

● approving or, as permitted, pre-approving, audit and permissible non-audit services to be performed by the independent registered public accounting firm.

*<u>Compensation Committee</u>*

David Kivitz, Zhe Zhang and William J. Caragol, have been designated to serve on our compensation committee prior to the completion of this offering, with Zhe Zhang serving as the chairman. The members of the compensation committee will also be "non-employee directors" within the meaning of Section 16 of the Exchange Act. The compensation committee will assist the board in reviewing and approving the compensation structure, including all forms of compensation relating to our directors and executive officers.

The primary purpose of our compensation committee is to discharge the responsibilities of our board of directors in overseeing our compensation policies, plans, and programs and to review and determine the compensation to be paid to our executive officers, directors and other senior management, as appropriate. Specific responsibilities of our compensation committee include:

● reviewing and recommending to our board of directors the compensation of our chief executive officer and other executive officers,

● reviewing and recommending to our board of directors the compensation of our directors,

● administering our equity incentive plans and other benefit programs,

● reviewing, adopting, amending, and terminating incentive compensation and equity plans, severance agreements, profit sharing plans, bonus plans, change-of-control protections, and any other compensatory arrangements for our executive officers and other senior management,

● reviewing and establishing general policies relating to compensation and benefits of our employees, including our overall compensation philosophy, and

● reviewing and evaluating with the chief executive officer the succession plans for our executive officers.

*<u>Nominating and Corporate Governance Committee</u>*

David Kivitz, Zhe Zhang and William J. Caragol, each of whom will satisfy the "independence" requirements of Rule 10A-3 under the Exchange Act and the Nasdaq listing standards, have been designated to serve on our nominating and corporate governance committee, with William J. Caragol serving as the chairman. The nominating and corporate governance committee will assist the board of directors in selecting individuals qualified to become our directors and in determining the composition of the board and its committees.

Specific responsibilities of our nominating and corporate governance committee include:

● identifying and evaluating candidates, including the nomination of incumbent directors for re-election and nominees recommended by stockholders, to serve on our board of directors,

● considering and making recommendations to our board of directors regarding the composition and chairmanship of the committees of our board of directors,

● reviewing with our chief executive officer the plans for succession to the offices of our executive officers and making recommendations to our board of directors concerning the selection of appropriate individuals to succeed in these positions,

● developing and making recommendations to our board of directors regarding corporate governance guidelines and matters, and

● overseeing periodic evaluations of the board of directors' performance, including committees of the board of directors.

Code of Ethics

We have adopted a code of ethics that applies to all of our directors, officers, and employees, including our principal executive officer, principal financial officer and principal accounting officer. This code of ethics addresses, among other things, honesty and ethical conduct, conflicts of interest, compliance with laws, regulations, and policies, including disclosure requirements under the federal securities laws, and reporting of violations of the code.

We will be required to disclose any amendment to, or waiver from, a provision of our code of ethics applicable to our principal executive officer, principal financial officer, principal accounting officer, controller, or persons performing similar functions. We intend to use our website as a method of disseminating this disclosure, as permitted by applicable SEC rules. Any such disclosure will be posted to our website within four (4) business days following the date of any such amendment to, or waiver from, a provision of our code of ethics.

Director Compensation

In fiscal years ended September 30, 2024 and 2025, we did not provide compensation to our directors for their service.

*<u>Director Agreements</u>*

On July 22 ,2025, the Company entered into a director agreement (the "Director Agreement") with David Kivitz, Matthew Gordon and Zhe Zhang. Pursuant to the Director Agreement, each director will be appointed as a member of the Board of Directors of the Company commencing at the closing of this offering (the "Effective Date") until the next annual meeting of the Company's stockholders or until his earlier resignation, removal or death.

In consideration for serving as a member of the Company's Board of Directors, each director shall be paid a cash fee of $12,000 per quarter per fiscal quarter with the chairmen of the Audit Committee and Compensation Committee, to receive an additional $8,000 and $3,000, respectively, each fiscal quarter.

On the Effective Date, the Company will issue David Kivitz a non-qualified stock option to purchase 25,000 shares of common stock at the offering price per share, which shall vest upon the first anniversary upon the one year anniversary of the Company's IPO and commencement of trading on the Nasdaq Capital Markets. In addition, for services as audit committee chair, the Company will grant David Kivitz a non-qualified stock option under the 2025 Plan to purchase 15,000 shares of common stock at an exercise price per share of common stock at the offering price per share.

On the Effective Date, the Company will issue Matthew Gordon a non-qualified stock option to purchase 25,000 shares of common stock at the offering price per share, which shall vest upon the first anniversary of the Company's IPO and commencement of trading on the Nasdaq Capital Markets.

On the Effective Date, the Company will issue Zhe Zhang a non-qualified stock option to purchase 25,000 shares of common stock at the offering price per share, which shall vest upon the first anniversary of upon the first anniversary of the Company's IPO and commencement of trading on the Nasdaq Capital Markets. In addition, for services as compensation committee chair, the Company will grant Zhe Zhang a non-qualified stock option under the 2025 Plan to purchase 5,000 shares of common stock at an exercise price per share of common stock at the offering price per share.

The Company has also agreed to reimburse the directors for reasonable business-related expenses approved by the Company in advance, such approval not to be unreasonably withheld.

A director's Director Agreement will automatically terminate upon the death of the director or upon his resignation or removal from, or failure to win election or reelection to, the Board. In the event of expiration or termination of a director's Director Agreement, the director has agreed to return or destroy any materials transferred to the director under the Agreement except as may be necessary to fulfill any outstanding obligations hereunder.

In connection with each Director Agreement, each director has agreed to enter into a Proprietary Information Agreement (the "Proprietary Information Agreement") pursuant to which the director shall maintain in trust and confidence and not disclose to any third party or use for any unauthorized purpose any proprietary information received from the Company and only in connection with providing services as a member of the Company's Board of Directors. However, a director's disclosure of proprietary information shall not be precluded if such disclosure is (i) in response to a valid order, including a subpoena, of a court or other governmental body of the United States or any political subdivision thereof; provided, however, that to the extent reasonably feasible, the director shall first have given the Company notice of the director's receipt of such order and the Company shall have had an opportunity to obtain a protective order requiring that the Proprietary Information so disclosed be used only for the purpose for which the order was issued; (ii) otherwise required by law; or (iii) otherwise necessary to establish rights or enforce obligations under the Proprietary Information Agreement, but only to the extent that any such disclosure is necessary.

The Proprietary Information Agreement shall continue in full force and effect during the term of the Director Agreement. The Proprietary Information Agreement may be terminated at any time thereafter upon thirty (30) days written notice to the other party. The director's confidentiality obligations under the Proprietary Information Agreement with respect to proprietary information disclosed prior to the effective date of such termination shall survive 18 months after the termination of the agreement; provided, however, the director's obligations under the Proprietary Information Agreement for proprietary information constituting "trade secrets" survive the termination of the Proprietary Information Agreement indefinitely.

EXECUTIVE COMPENSATION

Summary Compensation Table

The following table sets forth information concerning all cash and non-cash compensation awarded to, earned by or paid to our named executive officers (as defined under Item 402(m) of Regulation S-K) during the last two fiscal years.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and principal position** | **Year** | **Salary<br> ($)** | **Bonus<br> ($)** | **Stock award<br> ($)** | **Option awards<br> ($)** | **Nonequity<br> incentive<br> plan<br> compensation<br> ($)** | **Nonqualified<br> deferred<br> compensation<br> earnings<br> ($)** | **All other<br> compensation<br> ($)** | **Total<br> ($)** |
| Qiaojun Lai <br> (CEO) | 2025 | $112500 | $&nbsp;&nbsp;&nbsp;&nbsp; - |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | $112500 |
| Jin Kuang <br> (CFO) | 2025 | $82875 | $- | $- | $- | $- | $- | $- | $82875 |
| Qiaojun Lai <br> (CEO) | 2024 | $80000 | $- | 19500 | $- | $- | $- | $- | $99500 |
| Jin Kuang <br> (CFO) | 2024 | $52000 | $- | $8450 | $- | $- | $- | $- | $60450 |

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Equity Compensation Plan Information

***Collab Z Inc. 2025 Equity Incentive Plan***

The 2025 Equity Incentive Plan (the "2025 Plan") permits the grant of awards, which provides for the grant of shares of stock options to employees, non-employee directors, and non-employee consultants. The number of shares authorized by the 2025 Plan was 763,708 shares as of March 31, 2026. The option exercise price generally may not be less than the underlying stock's fair market value at the date of the grant and generally have a term of ten years. The amounts granted each calendar year to an employee or non-employee is limited depending on the type of award. As of March 31, 2026, there were 60,734 shares available for grant under the 2025 Plan. Stock options granted under the 2025 Plan typically vest over a four-year period, with a one-year cliff as well as via specified milestones.

A summary of information related to stock options for the three months ended March 31, 2026 is as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Options** | **Weighted <br> Average <br> Exercise <br> Price** | **Intrinsic<br> Value** |
| Outstanding as of September 30, 2025 | 587975 | $2.08 | $1173211 |
| Granted | 115000 | 3.60 |  |
| Exercised |  |  |  |
| Forfeited | - | - |  |
| Outstanding as of March 31, 2026 | 702975 | $2.33 | $1173211 |
| Exercisable as of March 31, 2026 |  | $- | $- |
| Exercisable and expected to vest as of March 31, 2026 |  | $- | $- |

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As of March 31, 2026, the weighted average duration to expiration of outstanding options was 9.12 years.

No stock-based compensation expense for stock options was recognized for the three and six months ended March 31, 2026 and 2025, respectively, due to the granted options containing vesting conditions that are contingent upon an IPO. Total unrecognized compensation cost related to non-vested stock option awards amounted to $886,868 as of March 31, 2026, which will be recognized over a weighted average period of 1.98 years if the contingent vesting condition is met.

Employee Benefits and Perquisites

Our executive officers are entitled to reimbursement for all expenses reasonably incurred in connection with the performance of their duties as executive officers of the Company.

Retirement Plans

We do not offer retirement plans to our executive officers.

Equity-Based Incentive Awards

Our equity-based incentive awards are designed to align our interests and those of our stockholders with those of our employees and consultants, including our executive officers. Our board of directors or an authorized committee thereof is responsible for approving equity grants.

Outstanding Equity Awards at Fiscal Year-End

No executive officer named above had any unexercised options, stock that has not vested or equity incentive plan awards outstanding as of September 30, 2024 and 2025.

CURRENT RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

The following includes a summary of transactions since the beginning of our 2024 fiscal year, or any currently proposed transaction, in which we were or are to be a participant and the amount involved exceeded or exceeds the lesser of (i) $120,000 or (ii) one percent of the average of our total assets at year-end for the last two completed fiscal years, and in which any related person had or will have a direct or indirect material interest (other than compensation described under "*Executive Compensation*" above). We believe the terms obtained or consideration that we paid or received, as applicable, in connection with the transactions described below were comparable to terms available or the amounts that would be paid or received in arm's-length transactions.

Qian Wang, the founder and former Chairman of the Company, is a trustee of his family trust, SDZ-US-1 2020 Irrevocable Trust (the "SDZ-US-1 2020 Trust"). SDZ-US-1 2020 Trust held a 100% ownership interest in YSMC LLC. During this period, SDZ-US-1 2020 Trust, through YSMC LLC, indirectly owned 100% of 1742 Spruce, 2340 Hilgard, 2712 Derby, 3110 College, 2521 Regent, and owns 10% of 33Mine and 36.62% of 2425 Durant. The SDZ-US-1 2020 Trust also directly owned 100% of 19–21 Buttonwood.

On January 1, 2025, the SDZ-US-1 2020 Trust sold an 85% membership interest in YSMC to an unrelated third party, reducing its membership interest in YSMC to 15%. On the same date, January 1, 2025, the SDZ-US-1 2020 Trust also sold an 85% membership interest in 19–21 Buttonwood to an unrelated third party, retaining a 15% interest.

Qian Wang is a trustee of two other family trusts: the SDZ-1-2022 Trust and the SDZ-2-2022 Trust, which together own a 90% interest in 33 Mine (45% each).

YRQ Trust, as part of the Controlling Group, owns 100% of 150 Panoramic Way.

1742 Spruce, 2340 Hilgard, 2712 Derby, 3110 College, 2521 Regent, 2425 Durant, 19–21 Buttonwood 33 Mine, and 150 Panoramic Way are collectively called the "Properties").

Collab CA is the property manager and provides property management services to all the Properties listed above and displayed below.

YRQ Trust, as part of the Controlling Group, has a 100% membership interest in 1207 Cedar and 1606 Stannage, where the Company acts as the project manager and provides renovation management services.

The SDZ-2-2022 Trust, through 1773 Oxford Street JV LLC, indirectly owns 64% of 1773 Oxford Street LLC. Collab CA serves as the project manager and provides development management services to this entity.

The following is a summary of all related parties to the Company, including the material terms and interests of the related party transactions:

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| | | | | |
|:---|:---|:---|:---|:---|
| Name | Parent | Basis of Control and Percentage of Voting Securities Held | Business Relationship <br> with Collab Z and <br> Collab CA | Material Terms and Interests |
| 1207 Cedar Street LLC | YRQ Trust | 100% | 1. Acquisition<br> 2. Renovation | 1. Acquisition fee: 3.5% of the purchase price;<br> 2. Renovation service fee: 8% of renovation cost;<br> 3. Design and permitting management fee: $6000/month + actual design and permitting costs.<br>|
| 1606 Stannage Avenue | YRQ Trust | 100% | 1. Acquisition<br> 2. Renovation | 1. Acquisition fee: 3.5% of the purchase price;<br> 2. Renovation service fee: 8% of renovation cost;<br> 3. Design and permitting management fee: $6000/month + actual design and permitting costs. |
| 1773 Oxford Street LLC | 1773 Oxford JV LLC, which is 65% owned by SDZ-2-2022 Trust Irrevocable Trust | 98.248% | 1. Modular construction related pre-development management services, manufacturer research, design management | $9500/month for the period from 1/1/2023-12/31/2023 |
| 1773 Oxford Street LLC | 1773 Oxford JV LLC, which is 65% owned by SDZ-2-2022 Trust Irrevocable Trust | 98.248% | 2. Procurement from China, including windows, cabinets, plumbing features, etc. | $2500/month + procurement service fees (open amount)<br>|
| 1773 Oxford Street LLC | 1773 Oxford JV LLC, which is 65% owned by SDZ-2-2022 Trust Irrevocable Trust | 98.248% | 3. Construction Management | By invoices<br>|
| 1773 Oxford Street LLC | 1773 Oxford JV LLC, which is 65% owned by SDZ-2-2022 Trust Irrevocable Trust | 98.248% | 4. Development Management | $5,500/month from 1/1/2024-end of the construction period for 4/30/2025 |
|  |  |  | 5. Pre-leasing Management | $15,000/month from 1/1/2025-5/31/2025 |
|  |  |  | 6. Property Management | From 6/1/2025 to present:<br> 1) 8% of the total monthly gross receipts; 2) A fee equal to the actual cost of Repair and Maintenance as incurred by the Property Manager, plus a 20% markup; 3) 5.5 % of the costs of such renovation upon completion of such renovations. 4) 2% of the contractual purchase price of the relevant property acquired. 5) 2% of total sales price when the Asset is sold, paid within five (5) days after the sale is closed.<br>|
| 1742 Spruce Street LLC | YSMC LLC, which was 100% owned by SDZ-US-1_2020 Irrevocable Trust. On January 1, 2025, SDZ-US-1_2020 Irrevocable Trust sold 85% its member interest in YSMC LLC to an arm-length third party and the Trust's member interest in YSMC decreased to 15% | 100% | 1. Property Management;<br> 2. Renovation Management;<br> 3. Acquisition;<br> 4. Disposition | 1) 8% of the total monthly gross receipts; 2) A fee equal to the actual cost of Repair and Maintenance as incurred by the Property Manager, plus a 20% markup; 3) 5.5 % of the costs of such renovation upon completion of such renovations. 4) 2% of the contractual purchase price of the relevant property acquired. 5) 2% of total sales price when the Asset is sold, paid within five (5) days after the sale is closed.<br>|
| 2340 Hilgard Avenue LLC | YSMC LLC | 100% |  | 1) 8% of the total monthly gross receipts; 2) A fee equal to the actual cost of Repair and Maintenance as incurred by the Property Manager, plus a 20% markup; 3) 5.5 % of the costs of such renovation upon completion of such renovations. 4) 2% of the contractual purchase price of the relevant property acquired. 5) 2% of total sales price when the Asset is sold, paid within five (5) days after the sale is closed. |

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| | | | | |
|:---|:---|:---|:---|:---|
| <br> Name | <br> Parent | Basis of Control and Percentage of<br> Voting Securities Held | Business Relationship<br> with Collab Z and<br> Collab CA | <br> Material Terms and Interests |
| 2712 Derby Street LLC | YSMC LLC | 100% |  | 1) 8% of the total monthly gross receipts;<br> 2) A fee equal to the actual cost of Repair and Maintenance as incurred by the Property Manager, plus a 20% markup;<br> 3) 5.5 % of the costs of such renovation upon completion of such renovations<br> 4) a fee of 50% on any gross receipts exceeding the Minimum Rent amount.<br> 5) 2% of the contractual purchase price of the relevant property acquired.<br> 6) 2% of total sales price when the Asset is sold, paid within five (5) days after the sale is closed. |
| 3110 College Street LLC | YSMC LLC | 100% |  | 1) 8% of the total monthly gross receipts;<br> 2) A fee equal to the actual cost of Repair and Maintenance as incurred by the Property Manager, plus a 20% markup;<br> 3) 5.5 % of the costs of such renovation upon completion of such renovations<br> 4) a fee of 50% on any gross receipts exceeding the Minimum Rent amount.<br> 5) 2% of the contractual purchase price of the relevant property acquired.<br> 6) 2% of total sales price when the Asset is sold, paid within five (5) days after the sale is closed. |
| 2521 Regent Street LLC | YSMC LLC | 100% |  | 1) 8% of the total monthly gross receipts;<br> 2) A fee equal to the actual cost of Repair and Maintenance as incurred by the Property Manager, plus a 20% markup;<br> 3) 5.5 % of the costs of such renovation upon completion of such renovations<br> 4) a fee of 50% on any gross receipts exceeding the Minimum Rent amount.<br> 5) 2% of the contractual purchase price of the relevant property acquired.<br> 6) 2% of total sales price when the Asset is sold, paid within five (5) days after the sale is closed. |

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| | | | | |
|:---|:---|:---|:---|:---|
| <br> Name | <br> Parent | Basis of Control and Percentage of<br> Voting Securities Held | Business Relationship<br> with Collab Z and<br> Collab CA | <br> Material Terms and Interests |
| 2425 Durant Avenue LLC | YSMC LLC<br> Part A<br> Part B | 36.62% 31.69% 31.69% |  | 1) 8% of the total monthly gross receipts;<br> 2) A fee equal to the actual cost of Repair and Maintenance as incurred by the Property Manager, plus a 20% markup;<br> 3) 5.5 % of the costs of such renovation upon completion of such renovations.<br> 4) 2% of the contractual purchase price of the relevant property acquired.<br> 5) 2% of total sales price when the Asset is sold, paid within five (5) days after the sale is closed.<br> (6) $6,000/month pre-development fees from 1/1/2024 upon full completion of the entitlement process for this property.  |
| 19-21 Buttonwood Street LLC | SDZ-US-1_2020 Irrevocable Trust | 100% |  | 1) 8% of the total monthly gross receipts;<br> 2) A fee equal to the actual cost of Repair and Maintenance as incurred by the Property Manager, plus a 30% markup;<br> 3) 8 % of the costs of such renovation upon completion of such renovations.<br> 4) 2% of the contractual purchase price of the relevant property acquired.<br> 5) 2% of total sales price when the Asset is sold, paid within five (5) days after the sale is closed.<br>|
| 33 Mine Street LLC | YSMC LLC<br>The SDZ-1-2022 Trust<br> The SDZ-2-2022 Trust | 10% <br> 45% 45% |  | 1) 8% of the total monthly gross receipts;<br> 2) A fee equal to the actual cost of Repair and Maintenance as incurred by the Property Manager, plus a 30% markup;<br> 3) 8 % of the costs of such renovation upon completion of such renovations.<br> 4) 2% of the contractual purchase price of the relevant property acquired.<br> 5) 2% of total sales price when the Asset is sold, paid within five (5) days after the sale is closed. |
| 150 Panoramic Way LLC | YRQ Trust | 100% |  | 1) 8% of the total monthly gross receipts;<br> 2) A fee equal to the actual cost of Repair and Maintenance as incurred by the Property Manager, plus a 30% markup;<br> 3) 8 % of the costs of such renovation upon completion of such renovations.<br> 4) 2% of the contractual purchase price of the relevant property acquired.<br> 5) 2% of total sales price when the Asset is sold, paid within five (5) days after the sale is closed. |

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| | | | | |
|:---|:---|:---|:---|:---|
| <br> **Name** | <br> **Parent** | **Basis of Control and Percentage of**<br> **Voting Securities Held** | **Business Relationship<br> with Collab Z and**<br> **Collab CA** | <br> **Material Terms and Interests** |
| YRQ Trust | Trustee Yuan Wang, Qian's father | 100% owner of preferred shares X of Collab Z and sole member of Collab CA |  |  |
| SDZ-US-1_2020 Irrevocable Trust | Trustee - Qian Wang and Qin Wang | Former Chairman and Founder of Collab Z and Collab CA |  |  |
| SDZ-2-2022 Trust Irrevocable Trust | Trustee - Qian Wang and Qin Wang | Former Chairman and Founder of Collab Z and Collab CA |  |  |
| SDZ-1-2022 Trust Irrevocable Trust | Trustee - Qian Wang and Qin Wang | Former Chairman and Founder of Collab Z and Collab CA |  |  |

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The following is a summary of related party transactions as of and for the six months ended March 31, 2026:

*Revenue and Accounts Receivable* 

During the six months ended March 31, 2026, the Company earned revenues of $776,373 from related parties. As of March 31, 2026, the Company had accounts receivable of $586,227 with related parties. The following is a summary of revenue by each related party:

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| | |
|:---|:---|
|  | **Six Months <br> Ended**<br>**March 31,**<br>**2026** |
| 1773 Oxford St | $80339 |
| 150 Panoramic Way | 7411 |
| 1742 Spruce St | 20886 |
| 19-21 Buttonwood St | 11327 |
| 2340 Hilgard Ave | 10486 |
| 2425 Durant Ave | 380137 |
| 2521 Regent St | 53251 |
| 2712 Derby St | 16975 |
| 3110 College Ave | 41747 |
| 33 Mine St | 7675 |
| 310 Waco Ave | 76705 |
| Other | 69434 |
| Revenue - related parties | $776373 |

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The following is a summary of accounts receivable by each related party:

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| | |
|:---|:---|
|  | **March 31,**<br>**2026** |
| 3110 College Ave | $46244 |
| 2521 Regent St | 45981 |
| 2712 Derby St | 16487 |
| 1773 Oxford St | 63872 |
| 19-21 Buttonwood St | 11355 |
| 150 Panoramic Way | 5057 |
| 1742 Spruce Street LLC | 18608 |
| 2340 Hilgard Avenue LLC | 8885 |
| Inno-Fund RE Equity LLC | 80000 |
| SISCO-GAIA RE EQUITY LLC | 24000 |
| 33 Mine Street LLC | 6289 |
| 1606 Stannage Ave LLC | 51450 |
| 2425 Durant Management LLC | 190000 |
| A1 Development Inc. | 15000 |
| Collab (USA) Capital LLC | 3000 |
| &nbsp;&nbsp;&nbsp;Accounts receivable - related parties | $586227 |

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*Due From/To Related Parties*

Due from related parties includes a) cash advances made and b) expenses and other costs paid for on behalf of related parties. Due to related parties includes cash advances received from various related parties. The Company enters into these transactions based on the current working capital needs of the Company and these related entities. These advances are unsecured, due on demand and non-interest bearing.

The following is a summary of due from / to related parties:

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| | |
|:---|:---|
|  | **March 31,**<br>**2026** |
| 1207 Cedar St | $400 |
| 1606 Stannage Ave | 2290 |
| 150 Panoramic | 1813 |
| 1742 Spruce | 993 |
| 2521 Regent Street LLC | 2684 |
| 2712 Derby | 2013 |
| 19-20 Buttonwood | 250 |
| Customer properties with common control and management\* | 10443 |
| Collab USA | 206828 |
| YSMD, LLC | 119172 |
| CollabHome CA LLC | 43655 |
| Collab-Allwin Real Estate Management LLC | 8096 |
| Collab-Gemini Real Estate Management LLC | 8096 |
| Collab-Juzi Real Estate Management LLC | 8096 |
| Collab-Lumen Real Estate Management LLC | 8096 |
| Collab-Pacific Real Estate Management LLC | 8096 |
| Entities with common control and management\* | 410135 |
| Due from related parties | $420578 |
| 2340 Hilgard Ave | 1300 |
| 3110 College | 16701 |
| Customer properties with common control and management\* | 18001 |
| Qin Wang - family member of former Chairman | 12000 |
| Due to related parties | $30001 |

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The following is a summary of related party transactions as of and for the years ended September 30, 2025 and 2024:

*Revenue and Accounts Receivable* 

 

During the years ended September 30, 2025 and 2024, the Company earned revenues of $893,628 and $1,163,585, respectively, from related parties. As of September 30, 2025 and 2024, the Company had accounts receivable of $266,580 and $349,576, respectively, with related parties. The following is a summary of revenue by each related party:

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| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **September 30,** | **September 30,** |
|  | **2025** | **2024** |
| 1773 Oxford St | $196942 | $331688 |
| 2521 Regent St | 117739 | 183295 |
| 3110 College Ave | 92711 | 134669 |
| 1207 Cedar St |  | 103455 |
| 150 Panoramic Way | 18520 | 67338 |
| 1606 Stannage Ave | 51450 | 90212 |
| 1742 Spruce St | 43267 | 41706 |
| 19-21 Buttonwood St | 21628 | 20782 |
| 2340 Hilgard Ave | 22507 | 23995 |
| 2425 Durant Ave | 241832 | 42356 |
| 2712 Derby St | 49416 | 93776 |
| 33 Mine St | 15910 |  |
| Other | 21706 | 30313 |
| &nbsp;&nbsp;&nbsp;Revenue - related parties | $893628 | $1163585 |

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The following is a summary of accounts receivable by each related party:

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| | | |
|:---|:---|:---|
|  | **September 30,** | **September 30,** |
|  | **2025** | **2024** |
| 3110 College Ave | $8309 | $117881 |
| 2521 Regent St | 9968 | 99256 |
| 2712 Derby St | 2419 | 55800 |
| 1773 Oxford St |  | 16000 |
| 19-21 Buttonwood St | 3604 | 1685 |
| 150 Panoramic Way | 1113 | 50062 |
| 1742 Spruce Street LLC | 4083 |  |
| 2340 Hilgard Avenue LLC | 2236 |  |
| 2425 Durant Avenue LLC | 182133 |  |
| 33 Mine Street LLC | 1265 |  |
| 1606 Stannage Ave LLC | 51450 |  |
| Other | - | 8892 |
| &nbsp;&nbsp;&nbsp;Accounts receivable - related parties | $266580 | $349576 |

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These related parties are properties for which the Company provides various real estate services, including property management, construction and development management, and renovation services. To date, the Company has also provided or received certain advances from these properties outside the normal revenue generating services, as noted below.

*Due From/To Related Parties*

Due from related parties includes a) cash advances made and b) expenses and other costs paid for on behalf of related parties. Due to related parties includes cash advances received from various related parties. The Company enters into these transactions based on the current working capital needs of the Company and these related entities. These advances are unsecured, due on demand and non-interest bearing.

The following is a summary of due from / to related parties:

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| | | |
|:---|:---|:---|
|  | **September 30,** | **September 30,** |
|  | **2025** | **2024** |
| 1207 Cedar St | $400 | $75925 |
| 1606 Stannage Ave | 1945 | 63491 |
| 150 Panoramic | 208 |  |
| 1742 Spruce | 410 |  |
| 1773 Oxford | 122 |  |
| 2421 Durant | 1431 |  |
| 2521 Regent Street LLC | 410 |  |
| 2712 Derby | 50 |  |
| 3110 College | 291 | - |
| Customer properties with common control and management\* | 5267 | 139416 |
| Collab USA | 218669 | 78367 |
| YSMD, LLC | 119172 | 79400 |
| CollabHome CA LLC | 10787 |  |
| Joint Ventures:Collab-Allwin Real Estate Management L1c | 29682 |  |
| Entities with common control and management\* | 378310 | 157767 |
| YRQ Irrevocable Trust | - | 2259850 |
| Due from related parties | $383577 | $2557033 |
| 1773 Oxford Street LLC | 3597 | 1027694 |
| 1742 Spruce St |  | 80610 |
| 2340 Hilgard Ave |  | 66612 |
| 3110 College | 1008 | - |
| Customer properties with common control and management\* | 4605 | 1174916 |
| Qin Wang - family member of former Chairman | 12000 | 130000 |
| Due to related parties | $16605 | $1304916 |

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\* The Company or its subsidiaries have no ownership in the customer properties or related party entities as per the amounts above. To date, Collab CA has shared common control and management with these entities through the Controlling Group.

*YRQ Irrevocable Trust*

During the year ended September 30, 2025, the Company advanced $64,970 to YRQ Irrevocable Trust ("YRQ") in order to provide working capital, and YRQ repaid $2,324,820 to the Company. During the year ended September 30, 2024, the Company advanced an aggregate of $2,259,850 to YRQ Irrevocable Trust ("YRQ") in order to provide working capital. These advances were unsecured, due on demand and non-interest bearing.

As of September 30, 2025, YRQ has paid the advance all in full and there was no balance outstanding.

In 2024, YRQ, as part of a control group that maintained control over Collab CA, became the sole member of Collab CA on August 21, 2024. Upon the Reorganization, YRQ received 4,550,500 shares of the Company's common stock and 5,000 shares of the Company's Series X preferred stock.

During the year ended September 30, 2025, Collab CA's former member provided certain advisory services for the Company for a fair value of $36,000. The amounts were recognized as non-cash member contributions.

During the year ended September 30, 2024, Collab CA's former member provided certain advisory services for the Company for a fair value of $24,000. The amounts were recognized as non-cash member contributions.

*Share Assignment* 

On January 2, 2025, YRQ Irrevocable Trust assigned 1,838,000 of its shares of common stock (the "Assigned Shares") that it had received in the Share Exchange to family irrevocable trusts, friends and family members of the beneficiaries of YRQ Irrevocable Trust (the "Assignment"). Of the Assigned Shares, assignments of 150,000 shares to certain recipients did not close because the conditions to such assignments were not satisfied, and such shares were returned to YRQ Trust. Following the Assignment, YRQ Irrevocable Trust owns 2,862,500 shares of common stock and 5,000 shares of Series X Preferred Stock. The Assigned Shares, except for the 150,000 shares returned to YRQ Trust, are held directly by the recipients and are no longer considered beneficially owned by YRQ Irrevocable Trust.

Policies and Procedures for Transactions with Related Persons

Our board of directors will adopt a related person transaction policy prior to the closing of this offering. The related person transaction policy sets forth the policies and procedures for the identification, review and approval or ratification of related person transactions. This policy covers, with certain exceptions set forth in Item 404 of Regulation S-K under the Securities Act, any transaction, arrangement or relationship, or any series of similar transactions, arrangements or relationships, in which we and a related person were or will be participants and the amount involved exceeds $120,000 or 1% of the average of our total assets as of the end of our last two completed fiscal years, including purchases of goods or services by or from the related person or entities in which the related person has a material interest, indebtedness and guarantees of indebtedness. In reviewing and approving any such transactions, our audit committee will consider all relevant facts and circumstances as appropriate, such as the purpose of the transaction, the availability of other sources of comparable products or services, and whether the transaction is on terms comparable to those that could be obtained in an arm's length transaction, management's recommendation with respect to the proposed related person transaction and the extent of the related person's interest in the transaction.

All of the transactions described in this section were entered into prior to the adoption of this policy.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth certain information with respect to the beneficial ownership of our common stock for (i) each of our named executive officers and directors, (ii) all of our named executive officers and directors as a group, and (iii) each other stockholder known by us to be the beneficial owner of more than 5% of our outstanding common stock. The following table assumes that the underwriters have not exercised the over-allotment option.

The table entitled "Percentage of Shares Beneficially Owned-Before Offering" is calculated based on 5,151,391 shares of common stock, 5,000 shares of Series X Preferred Stock, 200,000 shares of Series B Preferred Stock, and 750,250 shares of Series C Preferred Stock issued and outstanding as of May 20, 2026. The table entitled "Percentage of Shares Beneficially Owned-After Offering" is based on 5,000 shares of Series X Preferred Stock and 11,399,188 shares of our common stock to be outstanding after this offering, and assumes (i) the issuance and sale of 5,000,000 shares in this offering, (ii) 8,333 shares of common stock upon the automatic conversion of $25,000 of the 2023 SAFE, at the closing of this offering, calculated assuming an initial public offering price of $4.00; (iii) 100,000 shares of common stock to be issued at the closing of this offering to certain advisors of the Company in consideration for services rendered, (iv) 285,714 shares of common stock issuable upon the conversion of 200,000 shares of Series B Preferred Stock at the closing of this offering, (v) 20,139 shares of common stock issuable upon the conversion of accrued and unpaid dividends on the Series B Preferred Stock and Series C Preferred Stock (calculated based on accrued dividends as of March 31, 2026; the actual number of shares will be higher at closing because dividends continue to accrue through the closing date), and (vi) 833,611 shares of common stock issuable upon the conversion of 750,250 shares of Series C Preferred Stock at the closing of this offering.

Beneficial ownership is determined in accordance with SEC rules and generally includes voting or investment power with respect to securities. For purposes of this table, a person or group of persons is deemed to have "beneficial ownership" of any shares that such person or any member of such group has the right to acquire within sixty (60) days. For purposes of computing the percentage of outstanding shares of our common stock held by each person or group of persons named above, any shares that such person or persons have the right to acquire within sixty (60) days of May XX, 2026 are deemed to be outstanding for such person, but not deemed to be outstanding to compute the percentage ownership of any other person. The inclusion herein of any shares listed as beneficially owned does not constitute an admission of beneficial ownership by any person. The share ownership numbers after the offering for the beneficial owners indicated below exclude any potential purchases that may be made by such persons in this offering.

Unless otherwise indicated, the address of each beneficial owner listed in the table below is c/o Collab Z Inc., 2001 Addison St, Suite 300, Berkeley, CA 94704.

***Percentage of Shares Beneficially Owned—Before Offering***

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | **Series X**<br> **Preferred Stock**  | **Series X**<br> **Preferred Stock**  | **Series B <br> Preferred Stock** | **Series B <br> Preferred Stock** | **Series C <br> Preferred Stock** | **Series C <br> Preferred Stock** |
| <br>**Name of Beneficial Owner** | **Number of<br> Shares** | **Percent<sup>(1)</sup>** | **Number of<br> Shares** | **Percent** | **Number of Shares** | **Percent** | **Number of Shares** | **Percent** |
| **Executive Officers and Directors** | **Executive Officers and Directors** | **Executive Officers and Directors** | **Executive Officers and Directors** | **Executive Officers and Directors** | **Executive Officers and Directors** | **Executive Officers and Directors** | **Executive Officers and Directors** | **Executive Officers and Directors** |
| William J. Caragol, Chairman |  |  |  |  |  |  |  |  |
| Qiaojun Lai, Chief Executive Officer | 75000 | 1.46% |  |  |  |  |  |  |
| Jin Kuang, Chief Financial Officer | 32500 | \* |  |  |  |  |  |  |
| *All executive officers and directors as a group (3 individuals)* | 107500 | 2.09% |  |  |  |  |  |  |
| **5% or More Shareholders** |  |  |  |  |  |  |  |  |
| YRQ Irrevocable Trust<sup>(3)</sup> | 2862500 | 55.57% | 5000 | 100% |  |  |  |  |
| JEAH Irrevocable Trust<sup>(4)</sup> | 500000 | 9.71% |  |  |  |  |  |  |
| Fleco Int'l Corp<sup>(5)</sup> | 387500 | 7.52% |  |  |  |  |  |  |

---

***Percentage of Shares Beneficially Owned—After this Offering***

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | **Series X**<br> **Preferred Stock**  | **Series X**<br> **Preferred Stock**  | **Series B <br> Preferred Stock** | **Series B <br> Preferred Stock** | **Series C <br> Preferred Stock** | **Series C <br> Preferred Stock** |
| <br>**Name of Beneficial Owner** | **Number of <br> Shares** | **Percent<sup>(2)</sup>** | **Number of <br> Shares** | **Percent** | **Number of<br> Shares** | **Percent** | **Number of<br> Shares** | **Percent** |
| **Executive Officers and Directors** | **Executive Officers and Directors** | **Executive Officers and Directors** | **Executive Officers and Directors** | **Executive Officers and Directors** | **Executive Officers and Directors** | **Executive Officers and Directors** | **Executive Officers and Directors** | **Executive Officers and Directors** |
| William J. Caragol, Chairman |  |  |  |  |  |  |  |  |
| Qiaojun Lai, Chief Executive Officer | 75000 | \* |  |  |  |  |  |  |
| Jin Kuang, Chief Financial Officer | 32500 | \* |  |  |  |  |  |  |
| *All executive officers and directors as a group (3 individuals)* | 107500 | \*% |  |  |  |  |  |  |
| **5% or More Shareholders** |  |  |  |  |  |  |  |  |
| YRQ Irrevocable Trust<sup>(3)</sup> | 2862500 | 23.8% | 5000 | 100% |  |  |  |  |
| JEAH Irrevocable Trust<sup>(4)</sup> | 500000 | 4.4% |  |  |  |  |  |  |
| Fleco Int'l Corp<sup>(5)</sup> | 387500 | 3.4% |  |  |  |  |  |  |

---

\* Less than 1%

<sup>(1)</sup> For each person and group included in this table, percentage ownership is calculated by dividing the number of shares beneficially owned by such person or group by the sum of 5,151,391, the number of shares of common stock outstanding prior to the offering.

<sup>(2)</sup> For each person and group included in this table, percentage ownership is calculated by dividing the number of shares beneficially owned by such person or group by the sum of 11,399,189, the number of shares of common stock issued and outstanding immediately after the offering, assuming no exercise of the underwriter's over-allotment option, no conversion of Series X Preferred Stock, and the automatic conversion of all Series B Preferred Stock and Series C Preferred Stock to common stock at the closing of this offering.

<sup>(3)</sup> Edrick Wang and Albert Wang, the children of Qian Wang, our former Chairman, are the beneficiaries of YRQ Irrevocable Trust. Yuan Wang and Ruqin Shan, the parents of Qian Wang, have the voting and dispositive control over the shares held by YRQ Irrevocable Trust. The principal address of YRQ Irrevocable is 10 Winding Lane, Orinda, CA 94563.

<sup>(4)</sup> Edrick Wang, Albert Wang and Haoran Wang are the beneficiaries of JEAH Irrevocable Trust. Jin Wang, as trustee of the JEAH Irrevocable Trust, has the voting and dispositive control over the shares held by JEAH Irrevocable Trust. The principal address of JEAH Irrevocable Trust is 1466 Wright Ave., Sunnyvale, CA 94087.

<sup>(5)</sup> Frank Min-Fu Hung is the director of Fleco Int'l Corp and has the voting and dispositive control over the shares held by Fleco Int'l Corp. The principal address of Fleco Int'l Corp is 17 Longwood Rd, Sands Point, NY 11050.

DESCRIPTION OF SECURITIES

The description below of our capital stock and provisions of our articles of incorporation and bylaws are summaries and are qualified by reference to the articles of incorporation and bylaws, which are filed as exhibits to the registration statement of which this prospectus is part. You should read the provisions of our articles of incorporation, certificate of designations and our bylaws as currently in effect for provisions that may be important to you.

General

We are incorporated in the State of Nevada. The rights of our shareholders are generally covered by Nevada law and our articles of incorporation and bylaws. The terms of our capital stock are therefore subject to Nevada law, including the Nevada Revised Statues, and the common and constitutional law of Nevada.

The total number of shares of stock which the Company is authorized to issue is 200,000,000 shares of capital stock, consisting of 190,000,000 shares of common stock, $0.001 par value per share, and 10,000,000 shares of preferred stock, $0.001 par value per share.

As of the date of this prospectus, we have 5,151,391 shares of common stock issued and outstanding held by 78 stockholders of record. As of the date of the prospectus, we have 5,000 shares of Series X Preferred Stock, 200,000 shares of Series B Preferred Stock and 750,250 shares of Series C Preferred Stock issued and outstanding, respectively.

Common Stock

The holders of our common stock are entitled to the following rights:

*<u>Voting Rights</u>*. Each share of our common stock entitles its holder to one vote per share on all matters to be voted or consented upon by the stockholders. Holders of our common stock are not entitled to cumulative voting rights with respect to the election of directors.

*<u>Dividend Rights</u>*. Subject to limitations under Nevada law and preferences that may apply to any shares of preferred stock that we may decide to issue in the future, holders of our common stock are entitled to receive ratably such dividends or other distributions, if any, as may be declared by our Board out of funds legally available therefor.

*<u>Liquidation Rights</u>*. In the event of the liquidation, dissolution or winding up of our business, the holders of our common stock are entitled to share ratably in the assets available for distribution after the payment of all of our debts and other liabilities, subject to the prior rights of the holders of our preferred stock.

*<u>Other Matters</u>*. The holders of our common stock have no subscription, redemption (except as described below), or conversion privileges. Our common stock does not entitle its holders to preemptive rights. All of the outstanding shares of our common stock are fully paid and non-assessable. The rights, preferences and privileges of the holders of our common stock are subject to the rights of the holders of shares of any series of preferred stock which we may issue in the future.

The shares of common stock issued pursuant to the Joint Venture Agreements feature certain redemption rights subject to the occurrence of uncertain future events, including in the event that the Company fails to consummate an initial public offering of its securities on or prior to December 31, 2026.

Preferred Stock

We are authorized to issue up to 10,000,000 shares of "blank check" preferred stock. Our Board of Directors has the authority, without further stockholder authorization, to issue from time-to-time shares of preferred stock in one or more series and to fix the terms, limitations, relative rights and preferences and variations of each series. Although we have no present plans to issue additional shares of preferred stock, the issuance of shares of preferred stock, or the issuance of rights to purchase such shares, could decrease the amount of earnings and assets available for distribution to the holders of common stock, and could adversely affect the rights and powers, including voting rights, of our common stock, and could have the effect of delaying, deterring or preventing a change of control of us or an unsolicited acquisition proposal.

*Series X Preferred Stock*

Pursuant to the Series X Certificate of Designation filed with the Secretary of State of Nevada on October 3, 2024, we are authorized to issue up to 5,000 shares of Series X Preferred Stock with a stated value of $0.001 per share.

Each share of Series X Preferred Stock is entitled to 1,000 votes. The holders of shares of Series X Preferred Stock are entitled to vote on all matters on which our common stock shall be entitled to vote unless prohibited by law or as set forth in the Certificate of Designation.

The holders of the Series X Preferred Stock are not entitled to dividends. Upon the event of liquidation, dissolution or winding up of the Company, voluntary or involuntary, the holders of our Series X Preferred Stock would be entitled to receive the initial stated value of our preferred stock.

As of the date of this prospectus, there were 5,000 shares of Series X Preferred Stock issued and outstanding, all of which are owned by YQR Trust, as a part of the Controlling Group.

*Series B Preferred Stock*

Pursuant to a Series B Certificate of Designation filed with the Secretary of State of Nevada on June 5, 2025, we are authorized to issue up to 1,250,000 shares of Series B Preferred Stock with a stated value of $4.00 per share. As of the date of the prospectus, we have sold an aggregate of 200,000 shares of Series B Preferred Stock, consisting of:

● 75,000 shares of Series B Preferred Stock to one accredited investor for an aggregate purchase price of $300,000 pursuant to a securities purchase agreement dated May 27, 2025;

● 25,000 shares of Series B Preferred Stock to one accredited investor for an aggregate purchase price of $100,000 pursuant to a securities purchase agreement, dated June 24, 2025;

● 25,000 and 37,500 shares of Series B Preferred Stock to two accredited investors, for an aggregate purchase price of $100,000 and $150,000, respectively, pursuant to securities purchase agreements, dated July 7, 2025;

● 37,500 shares of Series B Preferred Stock to one accredited investor for an aggregate purchase price of $150,000 pursuant to a securities purchase agreement, dated July 9, 2025.

<u>Automatic Conversion</u>. Pursuant to the Series B Certificate of Designation, in connection with, and on the closing of a Qualified Public Offering, Qualified Financing or Qualified Disposition, all of the outstanding shares of Series B Preferred Stock shall automatically convert along with the aggregate accrued or accumulated and unpaid dividends thereon into an aggregate number of shares of common stock as is determined by dividing the stated value per share along with the aggregate accrued or accumulated and unpaid dividends on the outstanding shares of Series B Preferred Stock by the Conversion Price.

● "*<u>Qualified Public Offering</u>*" is defined in the Series B Certificate of Designation as the sale, in a firm commitment underwritten public offering of securities of the Company pursuant to an effective registration statement under the Securities Act, following which the common stock of the Company shall be listed on any national securities exchange.

● "*<u>Qualified Financing</u>*" is defined in the Series B Certificate of Designation as an equity financing with gross proceeds greater than $3,000,000.

● "*<u>Qualified Disposition</u>*" is defined in the Series B Certificate of Designation as any sale, transfer, or conveyance to another Person or entity of all or substantially all of the property and assets of the Company for cash.

● "*<u>Conversion Price</u>*" means 70% of the purchase price per share in a Qualified Public Offering, Qualified Financing Offering Price or Qualified Disposition Price.

<u>Accrual and Payment of Dividends.</u> In the event the Qualified Public Offering is not consummated by December 31, 2025, dividends on such share of Series B Preferred Stock shall accrue, whether or not declared by the Board and whether or not there are funds legally available for the payment of dividends, $0.32 annually per share or at the rate of 8% per annum on the sum of the Liquidation Value which is $4.00 per share of Series B Preferred Stock (as adjusted for any stock splits, stock dividends, recapitalizations, or similar transaction with respect to the Series B Preferred Stock). All accrued dividends on any share shall be paid in cash only when, as and if declared by the Board out of funds legally available therefor or upon a Liquidation of the Series B Preferred Stock; provided, that to the extent not paid on the last day of March, June, September, and December of each calendar year (each such date, a "Dividend Payment Date"), all accrued dividends on any share shall accumulate and compound on the applicable Dividend Payment Date whether or not declared by the Board and shall remain accumulated, compounding dividends until paid pursuant hereto or converted pursuant to the terms herein. All accrued and accumulated dividends on the shares shall be prior and in preference to any dividend on any junior securities and shall be fully declared and paid before any dividends are declared and paid, or any other distributions or redemptions are made, on any junior securities, other than to (a) declare or pay any dividend or distribution payable on the common stock in shares of common stock or (b) repurchase common stock held by employees or consultants of the Company upon the termination of their employment or services pursuant to agreements providing for such repurchase.

Because the Qualified Public Offering was not consummated by December 31, 2025, dividends on the Series B Preferred Stock began accruing on January 1, 2026. For the six months ended March 31, 2026, aggregate accrued dividends on the outstanding 200,000 shares of Series B Preferred Stock were approximately $41,260, of which $15,683 was paid, with the remaining $25,577 unpaid as of March 31, 2026. Upon the closing of this offering, all accrued and unpaid dividends on the Series B Preferred Stock will automatically convert into shares of common stock at the Conversion Price of $2.80 per share (70% of the assumed public offering price of $4.00 per share), together with the underlying Series B Preferred Stock. See "— Automatic Conversion" above.

<u>Liquidation</u>. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company (a "Liquidation"), the holders of shares of Series B Preferred Stock then outstanding shall be entitled to be paid out of the assets of the Company available for distribution to its stockholders, before any payment shall be made to the holders of junior securities by reason of their ownership thereof, an amount in cash equal to the aggregate Liquidation Value of all shares held by such holder, plus all unpaid accrued and accumulated dividends on all such shares (whether or not declared).

In addition to and after payment in full of all preferential amounts required to be paid to the holders of Series B Preferred Stock upon a Liquidation, the holders of shares of Series B Preferred Stock then outstanding shall be entitled to participate with the holders of shares of junior securities then outstanding, pro rata as a single class based on the number of outstanding shares of Junior Securities on an as-converted basis held by each holder as of immediately prior to the Liquidation, in the distribution of all the remaining assets and funds of the Company available for distribution to its stockholders.

If upon any Liquidation the remaining assets of the Company available for distribution to its stockholders shall be insufficient to pay the holders of the shares of Series B Preferred Stock the full preferential amount to which they are entitled, (i) the holders of the shares shall share ratably in any distribution of the remaining assets and funds of the Company in proportion to the respective full preferential amounts which would otherwise be payable in respect of the Series B Preferred Stock in the aggregate upon such Liquidation if all amounts payable on or with respect to such shares were paid in full, and (ii) the Company shall not make or agree to make any payments to the holders of Junior Securities.

<u>Voting</u>. The Series B Preferred Stock are not entitled to any votes with respect to any and all matters presented to the stockholders of the Company for their action or consideration (whether at a meeting of stockholders of the Company, by written action of stockholders in lieu of a meeting or otherwise), except as provided by law.

<u>Reissuance of Series B Preferred Stock</u>. Any shares of Series B Preferred Stock converted or otherwise acquired by the Company shall be canceled and retired as authorized and issued shares of capital stock of the Company and no such shares shall thereafter be reissued, sold, or transferred.

<u>Protective Provisions</u>. No provision of the Series B Certificate of Designation may be amended, modified, or waived except by an instrument in writing executed by the Company and the holders of not less than two-thirds of the then total outstanding shares of Series B Preferred Stock (a "Supermajority Interest") and any such written amendment, modification, or waiver will be binding upon the Company and each holder of Series B Preferred Stock; provided, that no such action shall change or waive (a) the definition of Liquidation Value, or (b) the rate at which or the manner in which dividends on the Series B Preferred Stock accrue or accumulate or the times at which such dividends become payable without the prior written consent of each holder of outstanding shares of Series B Preferred Stock; provided, further, that no amendment, modification, or waiver of the terms or relative priorities of the Series B Preferred Stock may be accomplished by the merger, consolidation, or other transaction of the Company with another Company or entity unless the Company has obtained the prior written consent of the all of the holders of the Series B Preferred Stock.

<u>Redemption</u>. The Series B Certificate of Designation does not contain any redemption provisions.

***Series C Preferred Stock***

 ****

Pursuant to a Series C Certificate of Designation filed with the Secretary of State of Nevada on January 23, 2026, we are authorized to issue up to 10,000,000 shares of Series C Preferred Stock with a stated value of $4.00 per share. As of the date of the prospectus, we have sold an aggregate of 750,250 shares of Series C Preferred Stock pursuant to certain securities purchase agreements dated January 19, 2026. As of the date of the prospectus, an aggregate of 750,250 shares of Series C Preferred Stock were issued and outstanding

<u>Automatic Conversion</u>. Pursuant to the Series C Certificate of Designation, in connection with, and on the closing of a Qualified Public Offering, Qualified Financing or Qualified Disposition, all of the outstanding shares of Series C Preferred Stock shall automatically convert along with the aggregate accrued or accumulated and unpaid dividends thereon into an aggregate number of shares of common stock as is determined by dividing the stated value per share along with the aggregate accrued or accumulated and unpaid dividends on the outstanding shares of Series C Preferred Stock by the Conversion Price.

● "*<u>Qualified Public Offering</u>*" is defined in the Series C Certificate of Designation as the sale, in a firm commitment underwritten public offering of securities of the Company pursuant to an effective registration statement under the Securities Act, following which the common stock of the Company shall be listed on any national securities exchange.

● "*<u>Qualified Financing</u>*" is defined in the Series C Certificate of Designation as an equity financing with gross proceeds greater than $3,000,000.

● "*<u>Qualified Disposition</u>*" is defined in the Series C Certificate of Designation as any sale, transfer, or conveyance to another Person or entity of all or substantially all of the property and assets of the Company for cash.

● "*<u>Conversion Price</u>*" means 90% of the purchase price per share in a Qualified Public Offering, Qualified Financing Offering Price or Qualified Disposition Price.

<u>Accrual and Payment of Dividends.</u> All accrued and unpaid dividends on the Series C Preferred Stock shall be payable upon the consummation of a Qualified Public Offering or upon any redemption of the shares of Series C Preferred Stock pursuant to Section 10 thereof. Upon the consummation of a Qualified Public Offering, the Corporation shall have the option, in its sole discretion, to pay all accrued and unpaid dividends either (i) in cash or (ii) in shares of Common Stock, valued at a ten percent (10%) discount to the applicable price used in such Qualified Public Offering or redemption, as applicable. Notwithstanding the foregoing, in the event that a Qualified Public Offering is not consummated on or before September 30, 2026, and the shares of Series C Preferred Stock are redeemed thereafter pursuant to Section 10 thereof, all accrued and unpaid dividends shall be payable solely in cash. Dividends on the shares of Series C Preferred Stock shall be cumulative and shall accrue, whether or not declared by the Board and whether or not there are funds legally available for the payment of dividends, and shall be prior and in preference to any dividend on any Junior Securities unless and until all accrued and unpaid dividends on the shares of Series C Preferred Stock have been paid in full, except for (a) dividends or distributions payable on the Common Stock in shares of Common Stock or (b) repurchase of Common Stock held by employees or consultants of the Corporation upon the termination of their employment or services pursuant to agreements providing for such repurchase.

Dividends on the Series C Preferred Stock have been accruing since their date of issuance. Aggregate accrued and unpaid cumulative dividends on the outstanding 750,250 shares of Series C Preferred Stock were approximately $39,615 for the six months ended March 31, 2026. Accretion of cumulative dividends to the carrying amount is recorded as a deemed dividend, reducing income available to common stockholders. The Company intends to pay all accrued and unpaid dividends on the Series C Preferred Stock at the closing of this offering in shares of common stock, valued at a ten percent (10%) discount to the public offering price (i.e., $3.60 per share based on the assumed public offering price of $4.00 per share), together with the automatic conversion of the underlying Series C Preferred Stock at the Conversion Price. See "— Automatic Conversion" above.

<u>Liquidation</u>. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company (a "Liquidation"), the holders of shares of Series C Preferred Stock then outstanding shall be entitled to be paid out of the assets of the Company available for distribution to its stockholders, before any payment shall be made to the holders of junior securities by reason of their ownership thereof, an amount in cash equal to the aggregate Liquidation Value of all shares held by such holder, plus all unpaid accrued and accumulated dividends on all such shares (whether or not declared).

In addition to and after payment in full of all preferential amounts required to be paid to the holders of Series C Preferred Stock upon a Liquidation, the holders of shares of Series C Preferred Stock then outstanding shall be entitled to participate with the holders of shares of junior securities then outstanding, pro rata as a single class based on the number of outstanding shares of Junior Securities on an as-converted basis held by each holder as of immediately prior to the Liquidation, in the distribution of all the remaining assets and funds of the Company available for distribution to its stockholders.

If upon any Liquidation the remaining assets of the Company available for distribution to its stockholders shall be insufficient to pay the holders of the shares of Series C Preferred Stock the full preferential amount to which they are entitled, (i) the holders of the shares shall share ratably in any distribution of the remaining assets and funds of the Company in proportion to the respective full preferential amounts which would otherwise be payable in respect of the Series C Preferred Stock in the aggregate upon such Liquidation if all amounts payable on or with respect to such shares were paid in full, and (ii) the Company shall not make or agree to make any payments to the holders of Junior Securities.

<u>Voting</u>. The Series C Preferred Stock are not entitled to any votes with respect to any and all matters presented to the stockholders of the Company for their action or consideration (whether at a meeting of stockholders of the Company, by written action of stockholders in lieu of a meeting or otherwise), except as provided by law.

<u>Reissuance of Series C Preferred Stock</u>. Any Shares of Series C Preferred Stock converted or otherwise acquired by the Corporation shall be canceled and retired as authorized and issued shares of capital stock of the Corporation and no such Shares shall thereafter be reissued, sold, or transferred.

<u>Protective Provisions</u>. No provision of the Series C Certificate of Designation may be amended, modified, or waived except by an instrument in writing executed by the Company and the holders of not less than two-thirds of the then total outstanding shares of Series C Preferred Stock (a "Supermajority Interest") and any such written amendment, modification, or waiver will be binding upon the Company and each holder of Series C Preferred Stock; provided, that no such action shall change or waive (a) the definition of Liquidation Value, or (b) the rate at which or the manner in which dividends on the Series C Preferred Stock accrue or accumulate or the times at which such dividends become payable without the prior written consent of each holder of outstanding shares of Series C Preferred Stock; provided, further, that no amendment, modification, or waiver of the terms or relative priorities of the Series C Preferred Stock may be accomplished by the merger, consolidation, or other transaction of the Company with another Company or entity unless the Company has obtained the prior written consent of the all of the holders of the Series C Preferred Stock.

<u>Redemption</u>. At any time after the initial issuance of shares of Series C Preferred Stock, in the event that (i) a Qualified Public Offering is not consummated on or before September 30, 2026, or (ii) the Securities Purchase Agreement of the Series C Preferred Stock is terminated for any reason before the Qualified Public Offering, the Company shall redeem for cash all (and not less than all) of the outstanding shares of Series C Preferred Stock pursuant to the terms of the Securities Purchase Agreement, as applicable.

Anti-Takeover Effects of Nevada Law

 

*Business Combinations*

The "business combination" provisions of Sections 78.411 to 78.444, inclusive, of the *Nevada Revised Statutes* ("NRS") generally prohibit a Nevada corporation with at least 200 stockholders from engaging in various "combination" transactions with any interested stockholder for a period of two years after the date of the transaction in which the person became an interested stockholder, unless the transaction is approved by the board of directors prior to the date the interested stockholder obtained such status or the combination is approved by the board of directors and thereafter is approved at a meeting of the stockholders by the affirmative vote of stockholders representing at least 60% of the outstanding voting power held by disinterested stockholders, and extends beyond the expiration of the two-year period, unless:

● the combination was approved by the board of directors prior to the person becoming an interested stockholder or the transaction by which the person first became an interested stockholder was approved by the board of directors before the person became an interested stockholder or the combination is later approved by a majority of the voting power held by disinterested stockholders; or

● if the consideration to be paid by the interested stockholder is at least equal to the highest of: (a) the highest price per share paid by the interested stockholder within the two years immediately preceding the date of the announcement of the combination or in the transaction in which it became an interested stockholder, whichever is higher, (b) the market value per share of common stock on the date of announcement of the combination and the date the interested stockholder acquired the shares, whichever is higher, or (c) for holders of preferred stock, the highest liquidation value of the preferred stock, if it is higher.

A "combination" is generally defined to include mergers or consolidations or any sale, lease exchange, mortgage, pledge, transfer, or other disposition, in one transaction or a series of transactions, with an "interested stockholder" having: (a) an aggregate market value equal to 5% or more of the aggregate market value of the assets of the corporation, (b) an aggregate market value equal to 5% or more of the aggregate market value of all outstanding shares of the corporation, (c) 10% or more of the earning power or net income of the corporation, and (d) certain other transactions with an interested stockholder or an affiliate or associate of an interested stockholder.

In general, an "interested stockholder" is a person who, together with affiliates and associates, owns (or within two years, did own) 10% or more of a corporation's voting stock. The statute could prohibit or delay mergers or other takeover or change in control attempts and, accordingly, may discourage attempts to acquire our Company even though such a transaction may offer our stockholders the opportunity to sell their stock at a price above the prevailing market price.

*Control Share Acquisitions*

The "control share" provisions of Sections 78.378 to 78.3793, inclusive, of the NRS apply to "issuing corporations" that are Nevada corporations with at least 200 stockholders, including at least 100 stockholders of record who are Nevada residents, and that conduct business directly or indirectly in Nevada. The control share statute prohibits an acquirer, under certain circumstances, from voting its shares of a target corporation's stock after crossing certain ownership threshold percentages, unless the acquirer obtains approval of the target corporation's disinterested stockholders. The statute specifies three thresholds: one-fifth or more but less than one-third, one-third but less than a majority, and a majority or more, of the outstanding voting power. Generally, once an acquirer crosses one of the above thresholds, those shares in an offer or acquisition and acquired within 90 days thereof become "control shares" and such control shares are deprived of the right to vote until disinterested stockholders restore the right. These provisions also provide that if control shares are accorded full voting rights and the acquiring person has acquired a majority or more of all voting power, all other stockholders who do not vote in favor of authorizing voting rights to the control shares are entitled to demand payment for the fair value of their shares in accordance with statutory procedures established for dissenters' rights.

A corporation may elect to not be governed by, or "opt out" of, the control share provisions by making an election in its articles of incorporation or bylaws, provided that the opt-out election must be in place on the 10th day following the date an acquiring person has acquired a controlling interest, that is, crossing any of the three thresholds described above. We have not opted out of the control share statutes and will be subject to these statutes if we are an "issuing corporation" as defined in such statutes.

The effect of the Nevada control share statutes is that the acquiring person, and those acting in association with the acquiring person, will obtain only such voting rights in the control shares as are conferred by a resolution of the stockholders at an annual or special meeting. The Nevada control share law, if applicable, could have the effect of discouraging takeovers of our Company.

Transfer Agent and Registrar

The transfer agent and registrar for our common stock is Colonial Stock Transfer. The address for Colonial Stock Transfer is 7840 S 700 E, Sandy, UT 84070, and the telephone number is (801) 355-5740.

SHARES ELIGIBLE FOR FUTURE SALE

Future sales of substantial amounts of our common stock, including stocks issued upon the exercise of outstanding options and warrants, in the public market after this offering, or the possibility of these sales occurring, could cause the prevailing market price for our common stock to fall or impair our ability to raise equity capital in the future.

Immediately following the closing of this offering, we will have 11,399,188 shares of common stock issued and outstanding. In the event the underwriters exercise the over-allotment option in full, we will have 12,149,188 shares of common stock issued and outstanding. The common stock sold in this offering will be freely tradable without restriction or further registration or qualification under the Securities Act.

Previously issued shares that were not offered and sold in this offering, as well as stocks issuable upon the exercise of previously issued warrants and subject to employee stock options, are or will be upon issuance, "restricted securities," as that term is defined in Rule 144 under the Securities Act. These restricted securities are eligible for public sale only if such public resale is registered under the Securities Act or if the resale qualifies for an exemption from registration under Rule 144 or Rule 701 under the Securities Act, which are summarized below.

Rule 144

All of the shares of our common stock outstanding prior to the closing of this offering are "restricted securities," as that term is defined in Rule 144 under the Securities Act and may be sold publicly in the United States only if they are subject to an effective registration statement under the Securities Act or pursuant to an exemption from the registration requirement, such as those provided by Rule 144 and Rule 701 promulgated under the Securities Act. After the consummation of the public offering, the remaining outstanding shares of common stock will be deemed to be "restricted securities" as defined in Rule 144. In general, a person who has beneficially owned restricted stocks for at least twelve months, or at least six months in the event we have been a reporting company under the Exchange Act for at least ninety (90) days before the sale, would be entitled to sell such securities, provided that such person is not deemed to be an affiliate of ours at the time of sale or to have been an affiliate of ours at any time during the ninety (90) days preceding the sale. A person who is an affiliate of ours at such time would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period only a number of shares that do not exceed the greater of the following:

● 1% of the number of common stocks then outstanding, or

● 1% of the average weekly trading volume of our common stocks during the four calendar weeks preceding the filing by such person of a notice on Form 144 with respect to the sale,

provided that, in each case, we are subject to the periodic reporting requirements of the Exchange Act for at least ninety (90) days before the sale. Rule 144 trades must also comply with the manner of sale, notice and other provisions of Rule 144, to the extent applicable. As of the date of this prospectus, 5,151,391 shares of common stock are issued and outstanding, all of which are restricted securities that may be sold under Rule 144 of the Securities Act.

Lock-Up Agreements

We, our officers, directors, and substantially all of the remaining stockholders (including the holders of shares of common stock issuable upon the automatic conversion of our outstanding SAFE agreements and Series B and Series C Preferred Stock upon the closing of this offering) as of the effective date of the registration statement of which this prospectus is a part, and certain persons designated by the Representatives prior to the offering, have agreed with the underwriters not to, without the prior written consent of the Representatives, for a period of 180 days after the consummation of this offering, in the case of us, officers, directors and certain stockholders, and 360 days in the case of certain other stockholders, (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any classes of our stocks or any securities convertible into or exercisable or exchangeable for any classes of our stocks, (ii) file or caused to be filed any registration statement with the SEC, relating to the offering of any classes of our stocks or any securities convertible into or exercisable or exchangeable for any classes of our stocks, (iii) complete any offering of debt securities, other than entering into a line of credit with a traditional bank, or (iv) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any classes of our stocks, whether any such transaction described in clause (i), (ii), (iii) or (iv) above is to be settled by delivery of any classes of our stocks or such other securities, in cash or otherwise. Of the 6,247,797 shares that will be subject to lock-up agreements, 2,329,797 are covered by the 180 day lock-up agreements and 3,858,000 are subject to a 360-day lock up. For further details on the lock-up agreements, see the section entitled "*Underwriting-No Sales of Similar Securities*."

Upon the closing of this offering, all of our outstanding shares of Series B and Series C Preferred Stock, as well as the outstanding SAFE agreements and preferred stock dividend, will automatically convert into an aggregate of 1,147,798 shares of common stock, in addition to the 100,000 shares of common stock to be issued at the closing of this offering to certain advisors of the Company in consideration for services rendered. All such shares issued upon conversion are "restricted securities" as defined in Rule 144 under the Securities Act and are strictly subject to the 180-day lock-up agreements entered into with the underwriters. These shares will only become eligible for sale in the public market upon the expiration or early release of such lock-up agreements, subject to the volume and manner of sale limitations of Rule 144.

In addition, we have entered into five joint ventures agreements with the Local Members pursuant to which the Local Members from the date of consummation of this offering until the six (6)-month anniversary thereof or such longer period as required by the underwriters in connection with this offering, have agreed to lock up all shares received in all equity issuances consummated prior to the date of the consummation of this offering pursuant to a lock up agreement in form and substance satisfactory to us. 60,000 shares of common stock collectively held by these Local Members will be subject to the lock-up agreements, in which 60,000 shares are included in the aggregate 6,247,798 shares of common stock held by our directors, officers and substantially all of the remaining stockholders of the outstanding shares of common stock (including the shares of common stock issuable upon the automatic conversion of our outstanding SAFE agreements and Series B and Series C Preferred Stock upon the closing of this offering) as of the effective date of the registration statement.

Regulation S

Regulation S under the Securities Act provides that securities owned by any person may be sold without registration in the United States, provided that the sale is effected in an "offshore transaction" and no "directed selling efforts" are made in the United States (as these terms are defined in Regulation S) and subject to certain other conditions. In general, this means that our shares may be sold in some manner outside the United States without requiring registration in the United States.

Rule 701

In general, Rule 701 allows a stockholder who purchased shares pursuant to a written compensatory plan or contract and who is not deemed to have been an affiliate of ours during the immediately preceding ninety (90) days to sell those shares in reliance upon Rule 144, but without being required to comply with the public information, holding period, volume limitation or notice provisions of Rule 144. All holders of Rule 701 shares, however, are required to wait until ninety (90) days after the date of this prospectus before selling shares pursuant to Rule 701.

MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS

This section summarizes certain material U.S. federal income tax considerations that may be associated with the purchase, ownership, and disposition of our common stock by U.S. holders (as defined below) and non-U.S. holders (as defined below). This summary is not intended to be a complete summary of the U.S. federal income tax consequences to purchasers of our stock and does not discuss any state, local or other tax consequences, of an investment in our company. Moreover, this summary addresses only our common stock that are held as capital assets by holders who acquire our common stock in this offering. The discussion does not discuss all of the U.S. federal income tax consequences that may be relevant to a potential investor in our company in light of such investor's particular circumstances or investors subject to special rules, such as brokers and dealers in securities, certain financial institutions, regulated investment companies, real estate investment trusts, tax-exempt organizations, insurance companies, persons holding our stocks as part of a hedging, integrated, or conversion transaction or a straddle, or as part of any other risk reduction transaction, traders in securities that elect to use a mark-to-market method of accounting for their stocks holdings, partnerships or other entities treated as partnerships for U.S. federal income tax purposes, persons who hold directly or constructively at least 5% of our stocks, or persons liable for the alternative minimum tax or the Medicare tax on certain investment income. This summary does not address any tax law other than the U.S. federal income tax law, including any estate tax law or any foreign, state or local income tax law.

Each potential investor is urged and expected to consult his, her or its own tax advisors prior to acquiring any of our securities to discuss his, her or its own tax and financial situation, including the application and effect of U.S. federal, state, local, and other tax laws and any possible changes in the tax laws that may occur after the date of this prospectus. This section is not to be construed as tax advice or as a substitute for careful tax planning.

The discussion herein is based on existing law as contained in the Internal Revenue Code of 1986, as amended (the "Code"), currently applicable Treasury Regulations thereunder, or the Regulations, administrative rulings and court decisions as of the date hereof, all of which are subject to change by legislative, judicial and administrative action, which change may in any given instance have a retroactive effect. No rulings have been or will be requested from the Internal Revenue Service (the "IRS") or any other taxing authority concerning any of the tax matters discussed herein. Furthermore, no statutory, administrative, or judicial authority directly addresses many of the U.S. federal income tax issues pertaining to the treatment of our stocks or instruments similar to our stocks. As a result, we cannot assure you that the IRS or the courts will agree with the tax consequences described in this summary. The IRS or a court may disagree with the following discussion or with any of the positions taken by the company for U.S. federal income tax reporting purposes, including the positions taken with respect to, for example, the classification of our company as a partnership. A different treatment of our securities or our company from that described below could adversely affect the amount, timing, character, and manner for reporting income, gain, or loss in respect of an investment in our securities.

As used herein, the term "U.S. holder" means a beneficial owner of shares of our common stock that is (i) an individual who is a citizen or resident of the United States, (ii) a corporation that is created or organized in the United States or under the laws of the United States or any political subdivision thereof, (iii) an estate whose income is includible in its gross income for U.S. federal income tax purposes, regardless of its source, (iv) a trust if a U.S. court is able to exercise primary supervision over the administration of the trust and one or more United States persons have the authority to control all substantial decisions of the trust, or (v) a U.S. state, a local government or any instrumentality thereof.

As used herein, the term "non-U.S. holder" means any beneficial owner of shares of our common stock (other than a partnership or other entity treated as a partnership) that is not a U.S. holder.

If a partnership (or other entity or arrangement treated as a partnership for U.S. federal income tax purposes) holds shares or warrants of our company, the U.S. tax treatment of any partner in such partnership (or other entity) will generally depend upon the status of the partner and the activities of the partnership. **If you are a partner of a partnership (or similarly treated entity) that acquires, holds, or sells our common stock, we urge you to consult your own tax adviser, as to the particular U.S. federal income tax consequences to you of the purchase, ownership and disposition of stocks or warrants, as well as any consequences to you arising under the laws of any other taxing jurisdiction.**

PROSPECTIVE INVESTORS SHOULD CONSULT THEIR TAX ADVISORS REGARDING THE TAX CONSEQUENCES OF THE OWNERSHIP AND DISPOSITION OF OUR COMMON STOCK IN THEIR PARTICULAR CIRCUMSTANCES.

CONSEQUENCES TO U.S. HOLDERS

The following is a summary of the U.S. federal income tax consequences that will apply to a U.S. holder of our securities. For purposes of this discussion, you are a U.S. holder if, for U.S. federal income tax purposes, you are a beneficial owner of our securities, other than a partnership, that is:

● an individual citizen or resident of the United States;

● a corporation or other entity taxable as a corporation created or organized in the United States or under the laws of the United States, any State thereof or the District of Columbia;

● an estate or trust whose income is subject to U.S. federal income tax regardless of its source; or

● a trust (x) whose administration is subject to the primary supervision of a U.S. court, and which has one or more "United States persons" (within the meaning of Section 7701(a)(30) of the Code) who have the authority to control all substantial decisions of the trust or (y) which has made a valid election to be treated as a "United States person."

Distributions

As described in the section titled "Dividend Policy," we have never declared or paid cash dividends on our common stock and do not anticipate paying any dividends on our common stock in the foreseeable future. However, if we do make distributions in cash or other property on our common stock, those payments will constitute dividends for U.S. tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. To the extent our distributions exceed both our current and our accumulated earnings and profits, the excess will constitute a return of capital that will first reduce your basis in our common stock, but not below zero, and any remaining amounts will be treated as gain from the sale or other disposition of stock as described below under "—Sale, Exchange or Other Taxable Disposition of Common Stock."

Dividend income may be taxed to an individual U.S. holder at rates applicable to long-term capital gains, provided that a minimum holding period and other limitations and requirements are satisfied with certain exceptions. Any dividends that we pay to a U.S. holder that is a corporation may qualify for the dividends received deduction if the requisite holding period is satisfied, subject to certain limitations. U.S. holders should consult their own tax advisors regarding the holding period and other requirements that must be satisfied in order to qualify for the reduced tax rate on dividends or the dividends-received deduction.

Sale, Exchange or Other Taxable Disposition of Common Stock

A U.S. holder will generally recognize capital gain or loss on the sale, exchange or other taxable disposition of shares of our common stock. The amount of gain or loss will equal the difference between the amount realized on the sale and such U.S. holder's adjusted tax basis in such shares. The amount realized will include the amount of any cash and the fair market value of any other property received in exchange for such shares. A U.S. holder's adjusted tax basis in its shares of common stock will generally equal the U.S. holder's acquisition cost or purchase price, less any prior distributions treated as a return of capital. Gain or loss will be long-term capital gain or loss if the U.S. holder has held the shares of common stock for more than one year. Long-term capital gains of non-corporate U.S. holders are generally taxed at preferential rates. The deductibility of capital losses is subject to certain limitations.

Information Reporting and Backup Withholding

In general, information reporting requirements may apply to dividends paid to a U.S. holder and to the proceeds of the sale or other disposition of our common stock, unless the U.S. holder is an exempt recipient. Backup withholding may apply to such payments if the U.S. holder fails to provide a taxpayer identification number, a certification of exempt status or has been notified by the IRS that it is subject to backup withholding (and such notification has not been withdrawn).

Any amounts withheld under the backup withholding rules will be allowed as a refund or a credit against a U.S. holder's U.S. federal income tax liability provided the required information is timely furnished to the IRS.

Tax on Net Investment Income

Individual U.S. Holders with adjusted gross income that exceeds a threshold amount ($200,000, or $250,000 if married filing jointly) may be subject to an additional 3.8% Medicare tax on some or all of such U.S. Holder's "net investment income." Net investment income generally includes income from the shares unless such income is derived in the ordinary course of the conduct of a trade or business (other than a trade or business that consists of certain passive or trading activities). You should consult your tax advisors regarding the effect this tax may have, if any, on your acquisition, ownership or disposition of common shares.

CONSEQUENCES TO NON-U.S. HOLDERS

The following is a summary of the U.S. federal income tax consequences that will apply to a non-U.S. holder of our securities. A "non-U.S. holder" is a beneficial owner of our securities (other than a partnership or an entity or arrangement treated as a partnership for U.S. federal income tax purposes) that, for U.S. federal income tax purposes, is not a U.S. holder. The term "non-U.S. holder" includes:

● a non-resident alien individual (other than certain former citizens and residents of the U.S. subject to U.S. tax as expatriates);

● a foreign corporation;

● an estate or trust that is not a U.S. holder; or

● any other Person that is not a U.S. holder

but generally does not include an individual who is present in the U.S. for 183 days or more or who is otherwise treated as a U.S. resident in the taxable year. If you are such an individual, you should consult your tax advisor regarding the U.S. federal income tax consequences of the acquisition, ownership or sale or other disposition of our securities.

Distributions

Subject to the discussion below regarding effectively connected income, any distribution paid to a non-U.S. holder, to the extent paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles) generally will constitute a dividend for U.S. federal income tax purposes and, provided such dividends are not effectively connected with the non-U.S. holder's conduct of a trade or business within the U.S., will be subject to U.S. withholding tax either at a rate of 30% of the gross amount of the dividend or such lower rate as may be specified by an applicable income tax treaty. In order to receive a reduced treaty rate, a non-U.S. holder must provide us with an IRS Form W-8BEN, IRS Form W-8BEN-E or other applicable IRS Form W-8 properly certifying qualification for the reduced rate. These forms must be provided prior to the payment of dividends and must be updated periodically. A non-U.S. holder eligible for a reduced rate of U.S. withholding tax pursuant to an income tax treaty should consult with its individual tax advisor to determine if you may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS. If a non-U.S. holder holds our securities through a financial institution or other agent acting on the non-U.S. holder's behalf, the non-U.S. holder will be required to provide appropriate documentation to the agent, which then may be required to provide certification to us or our paying agent, either directly or through other intermediaries.

Dividends received by a non-U.S. holder that are effectively connected with its conduct of a U.S. trade or business (and, if required by an applicable income tax treaty, attributable to a permanent establishment or fixed base maintained by the non-U.S. holder in the United States) are generally exempt from such withholding tax if the non-U.S. holder satisfies certain certification and disclosure requirements. In order to obtain this exemption, the non-U.S. holder must provide us with an IRS Form W-8ECI or other applicable IRS Form W-8 properly certifying such exemption. Such effectively connected dividends, although not subject to withholding tax, are taxed at the same graduated U.S. federal income tax rates applicable to U.S. holders, net of certain deductions and credits. In addition, dividends received by a corporate non-U.S. holder that are effectively connected with its conduct of a U.S. trade or business may also be subject to a branch profits tax at a rate of 30% or such lower rate as may be specified by an applicable income tax treaty. Non-U.S. holders should consult their own tax advisors regarding any applicable tax treaties that may provide for different rules.

Any distribution not constituting a dividend will be treated first as reducing (but not below zero) the Non-U.S. holder's adjusted tax basis in its common stock and, to the extent such distribution exceeds the Non-U.S. holder's adjusted tax basis, as gain realized from the sale or other disposition of the common stock, which will be treated as described under "Non-U.S. Holders — Gain on Sale, Exchange or Other Taxable Disposition of Common Stock" below.

Gain on Sale, Exchange, or Other Taxable Disposition of Common Stock

Subject to the discussion below regarding backup withholding and foreign accounts, a non-U.S. holder generally will not be required to pay U.S. federal income tax on any gain realized upon the sale, exchange or other taxable disposition of our common stock unless:

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

● the non-U.S. holder is a non-resident alien individual who is present in the United States for a period or periods aggregating 183 days or more during the calendar year in which the sale or disposition occurs and certain other conditions are met; or

If the non-U.S. holder is described in the first bullet above, it will be required to pay tax on the net gain derived from the sale, exchange or other taxable disposition under regular graduated U.S. federal income tax rates, and a corporate non-U.S. holder described in the first bullet above also may be subject to the branch profits tax at a rate of 30%, or (in each case) such lower rate as may be specified by an applicable income tax treaty. An individual non-U.S. holder described in the second bullet above will be required to pay a flat 30% tax (or such lower rate specified by an applicable income tax treaty) on the gain derived from the sale, exchange or other taxable disposition, which gain may be offset by U.S. source capital losses for the year (provided the non-U.S. holder has timely filed U.S. federal income tax returns with respect to such losses). Non-U.S. holders should consult their own tax advisors regarding any applicable income tax or other treaties that may apply.

Backup Withholding and Information Reporting

Generally, we must report annually to the IRS the amount of dividends paid to you, your name and address and the amount of tax withheld, if any. A similar report will be sent to you. Pursuant to applicable income tax treaties or other agreements, the IRS may make these reports available to tax authorities in your country of residence. A Non-U.S. holder may have to comply with certification procedures to establish that it is not a United States person in order to avoid information reporting and backup withholding requirements. The certification procedures required to claim a reduced rate of withholding under a treaty generally will satisfy the certification requirements necessary to avoid the backup withholding as well for example, by properly certifying your non-U.S. status on an IRS Form W-8BEN or IRS Form W-8BEN-E or other applicable IRS Form W-8. Notwithstanding the foregoing, backup withholding and information reporting may apply if either we or our paying agent has actual knowledge, or reason to know, that you are a U.S. person.

Backup withholding is not an additional tax; rather, the U.S. federal income tax liability of persons subject to backup withholding will be reduced by the amount of tax withheld. If withholding results in an overpayment of taxes, a refund or credit may generally be obtained from the IRS, provided that the required information is furnished to the IRS in a timely manner.

Foreign Account Tax Compliance

The Foreign Account Tax Compliance Act ("FATCA") generally imposes withholding tax at a rate of 30% on dividends on and gross proceeds from the sale or other disposition of our securities paid to a "foreign financial institution" (as specially defined under these rules), unless any such institution (1) enters into, and complies with, an agreement with the IRS to report, on an annual basis, information with respect to interests in, and accounts maintained by, the institution that are owned by certain U.S. persons and by certain non-U.S. entities that are wholly or partially owned by U.S. persons and to withhold on certain payments, or (2) if required under an intergovernmental agreement between the United States and an applicable foreign country, reports such information to its local tax authority, which will exchange such information with the U.S. authorities. An intergovernmental agreement between the United States and an applicable foreign country may modify these requirements. Accordingly, the entity through which our securities are held will affect the determination of whether such withholding is required. Similarly, dividends in respect of our securities held by an investor that is a non-financial non-U.S. entity that does not qualify under certain exceptions will generally be subject to withholding at a rate of 30%, unless such entity either (1) certifies to us or the applicable withholding agent that such entity does not have any "substantial United States owners" or (2) provides certain information regarding the entity's "substantial United States owners," which will in turn be provided to the U.S. Department of Treasury. Non-U.S. holders should consult their own tax advisors regarding the possible implications of this legislation on their investment in our securities.

Each prospective investor should consult its own tax advisor regarding the particular U.S. federal, state and local and non-U.S. tax consequences of purchasing, owning and disposing of our securities, including the consequences of any proposed changes in applicable laws.

UNDERWRITING

We will enter into an underwriting agreement with American Trust Investment Services, Inc. and WestPark Capital, Inc., as the representatives of the underwriters (the "Representatives"), with respect to the shares sold in this offering. Subject to certain conditions, we have agreed to sell to the underwriters, and each of the underwriters has agreed to purchase the shares listed next to its name in the table at the public offering price per unit less the underwriting discounts set forth on the cover page of this prospectus.

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| | |
|:---|:---|
| **Underwriter** | **Number of Shares** |
| American Trust Investment Services, Inc. |  |
| WestPark Capital, Inc. |  |
| Total |  |

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The underwriters have committed to purchase all of the shares offered by us other than those shares covered by the over-allotment option described below, if they purchase any. The obligations of the underwriters may be terminated upon the occurrence of certain events specified in the underwriting agreement. Furthermore, pursuant to the underwriting agreement, the underwriters' obligations are subject to customary conditions, representations and warranties contained in the underwriting agreement, such as receipt by the underwriters of officers' certificates and legal opinions.

We have agreed to indemnify the underwriters against specified liabilities, including liabilities under the Securities Act, and to contribute to payments the underwriters may be required to make in respect thereof.

The underwriters are offering the shares, subject to prior sale, when, as and if issued to and accepted by them, subject to the approval of legal matters by their counsel and other conditions specified in the underwriting agreement. The underwriters reserve the right to withdraw, cancel or modify offers to the public and to reject orders in whole or in part.

Over-Allotment Option

We have granted to the underwriters an option to purchase from us up to an additional 750,000 shares of our common stock, representing 15% of the shares sold in this offering, at the assumed public offering price of $4.00 per share, in any combination thereof, solely to cover over-allotments, if any. The shares of our common stock to be purchased pursuant to the over-allotment option will be acquired at the initial public offering price, less the underwriting discounts. The underwriters may exercise this option, in whole or in part, any time during the 45-day period after the closing date of the offering, but only to cover over-allotments, if any. To the extent the underwriters exercise the option, the underwriters will become obligated, subject to certain conditions, to purchase the shares for which they exercise the option.

Underwriting Discount, Commissions and Expenses

We estimate that the total expenses of the offering payable by us to the Representatives, excluding underwriting discounts and commissions, and exclusive of other costs and expenses, will be approximately $500,000. Under the underwriting agreement, we will pay the Representatives fees and commissions equal to 7.0% of the gross proceeds raised in the offering.

The Representatives have advised us that it proposes to offer the shares to the public at the public offering price set forth on the cover page of this prospectus and to certain dealers at that price less a concession not in excess of $___. After this offering, the public offering price, concession and reallowance to dealers may be changed by the underwriters. No such change will change the amount of proceeds we receive as set forth on the cover page of this prospectus. The shares are offered by the underwriters as stated herein, subject to receipt and acceptance by it and subject to its right to reject any order in whole or in part. The underwriters have informed us that they do not intend to confirm sales to any accounts over which they exercise discretionary authority.

The following table shows the underwriting discounts payable to the underwriters by us in connection with this offering. Such amounts are shown assuming both no exercise and full exercise of the underwriter's over-allotment option.

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| |
|:---|
| Initial public offering price (assumed) |
| Underwriting discounts and commissions <sup>(1)</sup> |
| Proceeds, before expenses, to us |

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<sup>(1)</sup> The underwriters will receive an underwriting discount equal to 7.0% on all stocks sold by the underwriters in this offering.

<sup>(2)</sup> At an assumed offering price of $4.00 per share.

We have agreed to reimburse the Representatives of the underwriters out of the proceeds of the offering for accountable legal expenses incurred by the Representatives in connection with the offering, including: (i) all filing fees and expenses relating to the registration of the securities with the Commission; (ii) all fees and expenses relating to the listing of the Company's common stock on a national exchange, if applicable; (iii) all fees, expenses and disbursements relating to the registration or qualification of the securities under the "blue sky" securities laws of such states and other jurisdictions as the Representatives may reasonably designate (including, without limitation, all filing and registration fees, and the reasonable fees and disbursements of the Company's "blue sky" counsel, which will be the Representatives' counsel) unless such filings are not required in connection with the Company's proposed listing on a national exchange, if applicable; (iv) all fees, expenses and disbursements relating to the registration, qualification or exemption of the securities under the securities laws of such foreign jurisdictions as the Representatives may reasonably designate; (v) the costs of all mailing and printing of the offering documents; (vi) transfer and/or stamp taxes, if any, payable upon the transfer of securities from us to the Representatives; (vii) the fees and expenses of the Company's accountants; (viii) $100,000 for legal fees and disbursements for the Representatives' counsel; and (ix) a maximum of $100,000 for fees and expenses including: all filing fees and communication expenses associated with the review of the offering by FINRA; all fees, expenses and disbursements relating to the registration, qualification or exemption of securities offered under the securities laws of foreign jurisdictions designated by the Representatives; the underwriters' use of Ipreo's book building, prospectus tracking and compliance software for the offering; "road show" expenses for the offering; and the costs associated with receiving commemorative mementos and lucite tombstones.

For the sake of clarity, it is understood and agreed that we shall be responsible for the Representatives' external counsel legal costs detailed in this Section irrespective of whether the offering is consummated or not, subject to a $60,000 cap in the event that there is no closing. Additionally, we have provided an expense advance (the "Advance") to the Representative of $70,000 upon execution of the engagement letter with American Trust Investment Services, Inc., before WestPark Capital, Inc. was subsequently included as a Representative. The advance shall be applied towards out-of-pocket accountable expense set forth herein and any portion of the Advance shall be returned back to us to the extent not actually incurred in accordance with FINRA Rule 5110(g). Additionally, one percent (1.0%) of the gross proceeds of the offering shall be provided to the Representatives for non-accountable expenses. The Representatives may deduct from the net proceeds of the offering payable to us on the date of closing, or the closing of the Over-Allotment Option, if any, the expenses set forth herein to be paid by us to the underwriters.

We paid R.F. Lafferty & Co., Inc., the previous lead underwriter in connection with the initial public offering of our shares of common stock, the sum of $65,600 for services rendered as the previous lead underwriter.

No Sales of Similar Securities

We have agreed with the underwriters that we would not, without the prior written consent of the Representatives, for a period of 180 days after the consummation of this offering, (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any classes of our stocks or any securities convertible into or exercisable or exchangeable for classes of our stocks, (ii) file or caused to be filed any registration statement with the SEC, relating to the offering of any classes of our stocks or any securities convertible into or exercisable or exchangeable for any classes of our stocks, (iii) complete any offering of debt securities, other than entering into a line of credit with a traditional bank, or (iv) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any classes of our stocks, whether any such transaction described in clause (i), (ii), (iii) or (iv) above is to be settled by delivery of any classes of our stocks or such other securities, in cash or otherwise.

**Lock-Up Agreements**

Each of our directors and officers, and substantially all of the remaining stockholders have agreed, subject to certain exceptions, not to offer, pledge, sell, contract to sell, grant, lend, or otherwise transfer or dispose of, directly or indirectly, or enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any shares of our capital stock or any securities convertible into or exercisable or exchangeable for shares of our common stock, for a period of 180 days after the consummation of this offering, without the prior written consent of the Representatives. All other holders of our shares of common stock and securities convertible into or exercisable or exchangeable for our shares of common stock, including those receiving shares of common stock upon the automatic conversion of our outstanding SAFE agreements and Series B and Series C Preferred Stock in connection with this offering, have also agreed to the same "lock-up" terms for a period of 180 days after the consummation of this offering, in the case of certain stockholders; and for a period of 360 days after the consummation of this offering, in the case of certain other stockholders, without the prior written consent of the Representatives. We, subject to certain exceptions, and all of our other stockholders of the outstanding common stock (or securities convertible into common stock, including options and warrants, and the aforementioned SAFE agreements and Preferred Stock), have agreed not to (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company; (ii) file or caused to be filed any registration statement with the Commission relating to the offering of any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company; (iii) complete any offering of debt securities of the Company, other than entering into a line of credit with a traditional bank, or (iv) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of capital stock of the Company, whether any such transaction described in clause (i), (ii), (iii) or (iv) above is to be settled by delivery of shares of capital stock of the Company or such other securities, in cash or otherwise, for a period of 180 days after the consummation of this offering, without the prior written consent of the Representatives.

Following the expiration of the applicable lock-up period, all of the issued and outstanding shares of our common stock will be eligible for future sale, subject to the applicable volume, manner of sale, holding period, and other limitations of Rule 144.

Determination of Offering Price

In determining the initial public offering price, we and the Representatives have considered a number of factors, including:

● the information set forth in this prospectus and otherwise available to the Representatives;

● our prospects and the history and prospects for the industry in which we compete;

● an assessment of our management;

● our prospects for future revenue and earnings;

● the general condition of the securities markets at the time of this offering;

● the recent prices of, and demand for, shares sold by us prior to this offering;

● the recent market prices of, and demand for, publicly traded securities of generally comparable companies; and

● other factors deemed relevant by the Representatives and us.

The estimated initial public offering price set forth on the cover page of this preliminary prospectus is subject to change as a result of market conditions and other factors. Neither we nor the Representatives can assure investors that an active trading market will develop for our common stock, or that the shares will trade in the public market at or above the initial public offering price.

Tail Financing

If during the engagement period or within six (6) months from the effective date of termination or expiration of the engagement letter, the Company completes a public or private offering of its securities with any investor(s) introduced to the Company by the Representatives during the term of the engagement letter, then the Company shall pay the Representative a tail fee equal to seven percent (7.0%) of the gross proceeds received by the Company from the sale of any securities or debt instruments to any investor actually introduced by the Representatives to the Company during the engagement period, provided that such investor(s) were first introduced to the Company by the Representatives and documented in writing during the term of the engagement letter. This provision is intended to comply with FINRA Rule 5110(g)(5)(B). If the Company terminates the engagement letter for cause — defined as the Representatives' willful misconduct, gross negligence or a material breach of the Agreement by the Representatives as determined by a court of competent jurisdiction — no tail fee (or other post-termination compensation) shall be payable. Any tail fee must be reasonable in relation to the underwriting or placement services originally contemplated and shall not exceed the cash fee rate set forth in the engagement letter. No tail fee is owed for any transaction consummated after the tail period.

Right of First Refusal

We have granted the Representatives the right to act as sole managing underwriter and dealer manager, book runner or sole placement agent for any and all of our future public and private equity, equity-linked, and debt (excluding commercial bank debt) offerings during the six-month period following the completion of this initial public offering.

Indemnification

We have agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act, and to contribute to payments that the underwriters may be required to make for these liabilities.

Price Stabilization, Short Positions, and Penalty Bids

In connection with this offering, each underwriter may engage in transactions that stabilize, maintain or otherwise affect the price of our securities. Specifically, such underwriter may over-allot in connection with this offering by selling more securities than are set forth on the cover page of this prospectus. This creates a short position in our securities for such underwriter's own accounts. The short position may be either a covered short position or a naked short position. In a covered short position, the number of securities over-allotted by such underwriter is not greater than the number of securities that it may purchase in the over-allotment option. In a naked short position, the number of securities involved is greater than the number of securities in the over-allotment option. To close out a short position, such underwriter may elect to exercise all or part of the over-allotment option. Such underwriters may also elect to stabilize the price of our securities or reduce any short position by bidding for, and purchasing, securities in the open market.

The underwriters may also impose a penalty bid. This occurs when a particular underwriter or dealer repays selling concessions allowed to it for distributing a security in this offering because the underwriter repurchases that security in stabilizing or short covering transactions.

Finally, each underwriter may bid for, and purchase, shares of our securities in market-making transactions, including "passive" market-making transactions as described below.

These activities may stabilize or maintain the market price of our securities at a price that is higher than the price that might otherwise exist in the absence of these activities. The underwriters are not required to engage in these activities and may discontinue any of these activities at any time without notice. These transactions may be effected on Nasdaq, in the over-the-counter market, or otherwise.

In connection with this offering, the underwriters and selling group members, if any, or their affiliates may engage in passive market-making transactions in our common stock immediately prior to the commencement of sales in this offering, in accordance with Rule 103 of Regulation M under the Exchange Act. Rule 103 generally provides that:

● a passive market maker may not affect transactions or display bids for our securities in excess of the highest independent bid price by persons who are not passive market makers;

● net purchases by a passive market maker on each day are generally limited to 30% of the passive market maker's average daily trading volume in our common stock during a specified two-month prior period or 200 shares, whichever is greater, and must be discontinued when that limit is reached; and

● passive market-making bids must be identified as such.

Electronic Distribution

This prospectus in electronic format may be made available on websites or through other online services maintained by the underwriters, or by their affiliates. Other than this prospectus in electronic or printed format, the information on the underwriters' websites and any information contained on any other websites maintained by an underwriter is not part of this prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or the underwriters in their capacity as underwriters, and should not be relied upon by investors.

**Passive Market Making**

In connection with this offering, underwriters and selling group members may engage in passive market making transactions in our common stock in accordance with Rule 103 of Regulation M under the Exchange Act, during a period before the commencement of offers or sales of the securities and extending through the completion of the distribution. A passive market maker must display its bid at a price not in excess of the highest independent bid of that security. However, if all independent bids are lowered below the passive market maker's bid, then that bid must then be lowered when specified purchase limits are exceeded.

Certain Relationships

The Representatives and their respective affiliates have engaged in, and may in the future engage in, investment banking and other commercial dealings in the ordinary course of business with us or our affiliates. The Representatives have received, or may in the future receive, customary fees and commissions for these transactions.

SELLING RESTRICTIONS

Other than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

 

***Canada***. The securities may be sold in Canada only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45 106 *Prospectus Exemptions* or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31 103 *Registration Requirements, Exemptions and Ongoing Registrant Obligations*. Any resale of the securities must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor.

Pursuant to section 3A.3 of National Instrument 33 105 *Underwriting Conflicts* (NI 33 105), the underwriters are not required to comply with the disclosure requirements of NI 33 105 regarding underwriter conflicts of interest in connection with this offering.

 

***European Economic Area***. In relation to each Member State of the European Economic Area which has implemented the Prospectus Regulation, or a Relevant Member State, no securities have been offered or will be offered pursuant to the offering to the public in that Relevant Member State prior to the publication of a prospectus in relation to the securities which has been approved by the competent authority in that Relevant Member State or, where appropriate, approved in another Relevant State and notified to the competent authority in that Relevant State, all in accordance with the Prospectus Regulation, except that offers of securities may be made to the public in that Relevant State at any time under the following exemptions under the Prospectus Regulation:

● to any legal entity which is a qualified investor as defined under Article 2 of the Prospectus Regulation

● to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2 of the Prospectus Regulation), subject to obtaining the prior consent of the underwriters for any such offer; or

● in any other circumstances falling within Article 1(4) of the Prospectus Regulation, provided that no such offer of the securities shall require us or any underwriter to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the Prospectus Regulation

For the purposes of this provision, the expression an "offer to the public" in relation to any of the securities in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and any of the securities to be offered so as to enable an investor to decide to purchase or subscribe for any securities, and, the expression "Prospectus Regulation" means Regulation (EU) 2017/1129. 

***United Kingdom***. ****No securities have been offered or will be offered pursuant to the offering to the public in the United Kingdom prior to the publication of a prospectus in relation to the securities which has been approved by the Financial Conduct Authority, except that the securities may be offered to the public in the United Kingdom at any time:

 ****

● to any legal entity which is a qualified investor as defined under Article 2 of the UK Prospectus Regulation;

● to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2 of the UK Prospectus Regulation), subject to obtaining the prior consent of the underwriters for any such offer; or

● in any other circumstances falling within Section 86 of the Financial Services and Markets Act 2000 (the "FSMA"),

 ****

provided that no such offer of the securities shall require the Issuer or any underwriter to publish a prospectus pursuant to Section 85 of the FSMA or supplement a prospectus pursuant to Article 23 of the UK Prospectus Regulation.

 ****

For the purposes of this provision, the expression an "offer to the public" in relation to the securities in the United Kingdom means the communication in any form and by any means of sufficient information on the terms of the offer and any securities to be offered so as to enable an investor to decide to purchase or subscribe for any securities, and the expression "UK Prospectus Regulation" means Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.

Each of the underwriters have represented and agreed that:

● it has only communicated or caused to be communicated and will only communicate or cause to be communicated an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000, or the FSMA) received by it in connection with the issue or sale of the securities in circumstances in which Section 21(1) of the FSMA does not apply to us; and

● it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the securities in, from or otherwise involving the United Kingdom.

 

***Switzerland***. ****The securities may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange, or the SIX, or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without regard to the disclosure standards for issuance prospectuses under the Swiss Financial Services Act ("FinSA") or the disclosure standards for listing prospectuses under art. 27 ff. of the SIX listing rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering or marketing material relating to the securities, or the offering may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this document nor any other offering or marketing material relating to the offering, or the securities have been or will be filed with or approved by any Swiss regulatory authority. In particular, this document will not be filed with, and the offer of the securities will not be supervised by, the Swiss Financial Market Supervisory Authority FINMA, and the offer of the securities has not been and will not be authorized under the Swiss Federal Act on Collective Investment Schemes, or CISA. Accordingly, no public distribution, offering or advertising, as defined in CISA, its implementing ordinances and notices, and no distribution to any non-qualified investor, as defined in CISA, its implementing ordinances and notices, shall be undertaken in or from Switzerland, and the investor protection afforded to acquirers of interests in collective investment schemes under CISA does not extend to acquirers of the securities.

***Australia***. No placement document, prospectus, product disclosure statement or other disclosure document has been lodged with the Australian Securities and Investments Commission in relation to the offering.

This prospectus does not constitute a prospectus, product disclosure statement or other disclosure document under the Corporations Act 2001, or the Corporations Act, and does not purport to include the information required for a prospectus, product disclosure statement or other disclosure document under the Corporations Act.

Any offer in Australia of the securities may only be made to persons (referred to as Exempt Investors) who are "sophisticated investors" (within the meaning of section 708(8) of the Corporations Act), "professional investors" (within the meaning of section 708(11) of the Corporations Act) or otherwise pursuant to one or more exemptions contained in section 708 of the Corporations Act so that it is lawful to offer the securities without disclosure to investors under Chapter 6D of the Corporations Act.

The securities applied for by Exempt Investors in Australia must not be offered for sale in Australia in the period of 12 months after the date of allotment under the offering, except in circumstances where disclosure to investors under Chapter 6D of the Corporations Act would not be required pursuant to an exemption under section 708 of the Corporations Act or otherwise or where the offer is pursuant to a disclosure document which complies with Chapter 6D of the Corporations Act. Any person acquiring securities must observe such Australian on-sale restrictions.

This prospectus contains general information only and does not take account of the investment objectives, financial situation or particular needs of any particular person. It does not contain any securities recommendations or financial product advice. Before making an investment decision, investors need to consider whether the information in this prospectus is appropriate to their needs, objectives and circumstances, and, if necessary, seek expert advice on those matters.

***Israel***. In the State of Israel, this prospectus shall not be regarded as an offer to the public to purchase securities under the Israeli Securities Law, 5728 - 1968, which requires a prospectus to be published and authorized by the Israel Securities Authority, if it complies with certain provisions of Section 15 of the Israeli Securities Law, 5728 - 1968, including, inter alia, if: (i) the offer is made, distributed or directed to not more than 35 investors, subject to certain conditions, or the Addressed Investors, or (ii) the offer is made, distributed or directed to certain qualified investors defined in the First Addendum of the Israeli Securities Law, 5728 - 1968, subject to certain conditions, or the Qualified Investors. The Qualified Investors shall not be taken into account in the count of the Addressed Investors and may be offered to purchase securities in addition to the 35 Addressed Investors. Our company has not and will not take any action that would require it to publish a prospectus in accordance with and subject to the Israeli Securities Law, 5728 - 1968. We have not and will not distribute this prospectus or make, distribute or direct an offer to subscribe for our securities to any person within the State of Israel, other than to Qualified Investors and up to 35 Addressed Investors.

Qualified Investors may have to submit written evidence that they meet the definitions set out in of the First Addendum to the Israeli Securities Law, 5728 - 1968. In particular, we may request, as a condition to be offered securities, that Qualified Investors will each represent, warrant and certify to us or to anyone acting on our behalf: (i) that it is an investor falling within one of the categories listed in the First Addendum to the Israeli Securities Law, 5728 - 1968, (ii) which of the categories listed in the First Addendum to the Israeli Securities Law, 5728 - 1968 regarding Qualified Investors is applicable to it, (iii) that it will abide by all provisions set forth in the Israeli Securities Law, 5728 - 1968 and the regulations promulgated thereunder in connection with the offer to be issued securities, (iv) that the securities that it will be issued are, subject to exemptions available under the Israeli Securities Law, 5728 - 1968: (a) for its own account, (b) for investment purposes only, and (c) not issued with a view to resale within the State of Israel, other than in accordance with the provisions of the Israeli Securities Law, 5728 - 1968, and (v) that it is willing to provide further evidence of its Qualified Investor status. Addressed Investors may have to submit written evidence in respect of their identity and may have to sign and submit a declaration containing, inter alia, the Addressed Investor's name, address and passport number or Israeli identification number.

LEGAL MATTERS

The validity of the shares of common stock offered by this prospectus will be passed upon for the Company by Sichenzia Ross Ference Carmel LLP, New York, New York. Certain legal matters relating to this offering will be passed upon for the underwriters by Loeb & Loeb LLP.

**INTERESTS OF NAMED EXPERTS AND COUNSEL**

Except as noted below, no expert or counsel named in this prospectus as having prepared or certified any part of this prospectus or having given an opinion upon the validity of the securities being registered or upon other legal matters in connection with the registration of the securities was employed on a contingency basis, or had, or is to receive, in connection with the offering, a substantial interest, direct or indirect, in the registrant or any of its parents or subsidiaries. Nor was any such person connected with the registrant or any of its parents or subsidiaries as a promoter, voting trustee, director, officer, or employee.

Sichenzia Ross Ference Carmel LLP, New York, New York, counsel to the Company in connection with this registration statement, owns 20,000 shares of our common stock as partial payment for legal services rendered in connection with the registration of the common stock.

EXPERTS

Our financial statements appearing in this prospectus have been audited by dbb*mckennon*, an independent registered public accounting firm, as stated in their report, and such financial statement have been so included in reliance upon the report of such firm given their authority as experts in auditing and accounting.

WHERE YOU CAN FIND MORE INFORMATION

We have filed a registration statement, of which this prospectus is a part, on Form S-1 with the SEC relating to this offering. This prospectus, which constitutes a part of the registration statement, does not contain all of the information in the registration statement and the exhibits filed with the registration statement. For further information pertaining to us and our common stock to be sold in this offering, you should refer to the registration statement and its exhibits. References in this prospectus to any of our contracts, agreements or other documents are not necessarily complete, and you should refer to the exhibits attached to the registration statement for copies of the actual contracts, agreements or documents.

We file periodic reports, proxy statements and other information with the SEC. These periodic reports, proxy statements and other information are available for inspection and copying at the SEC's public reference facilities and the website of the SEC referred to above. Additionally, we will make these filings available, free of charge, on our website at https://living.collabhome.io/ as soon as reasonably practicable after we electronically file such materials with, or furnish them to, the SEC. The information on our website, other than these filings, is not, and should not be, considered part of this prospectus and is not incorporated by reference into this document.

FINANCIAL STATEMENTS

COLLAB Z INC.

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

**AS OF MARCH 31, 2026 AND 2025**

COLLAB Z INC.

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

**AS OF MARCH 31, 2026 AND 2025**

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| | |
|:---|:---|
|  | Pages |
| [Unaudited Condensed Consolidated Balance Sheets as of March 31, 2026 and September 30, 2025](#s_002) | F-3 |
| [Unaudited Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2026 and 2025](#s_003) | F-4 |
| [Unaudited Condensed Consolidated Statements of Stockholders' Equity for the Three Months Ended March 31, 2026 and 2025](#s_004) | F-5 |
| [Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025](#s_005) | F-6 |
| [Notes to the Unaudited Condensed Consolidated Financial Statements](#s_006) | F-7 |

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COLLAB Z INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2026 AND SEPTEMBER 30, 2025

(Unaudited)

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| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2026** | **September 30,**<br>**2025** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $10794 | $161506 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 2762575 |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable - related parties | 586227 | 266580 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 489684 | 86972 |
| &nbsp;&nbsp;&nbsp;Due from related parties | 420578 | 383577 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 5587 | 13933 |
| &nbsp;&nbsp;&nbsp;Subscription receivable |  | 150000 |
| &nbsp;&nbsp;&nbsp;Loan receivable | 314668 | 552059 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 4590113 | 1614627 |
| Deferred offering costs | 720764 | 619925 |
| Investment in joint ventures | 57237 | 57753 |
| Intangible assets, net | 301504 | 198178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $5669618 | $2490483 |
| **LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $498447 | $376961 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 35000 | 35000 |
| &nbsp;&nbsp;&nbsp;Due to related parties | 30001 | 16605 |
| &nbsp;&nbsp;&nbsp;Dividend payable | 25577 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 589025 | 428566 |
| Future equity obligations | 25000 | 25000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 614025 | 453566 |
| Commitments and contingencies (Note 11) |  |  |
| Mezzanine equity: |  |  |
| Redeemable convertible preferred stock, $0.001 par value, 10,000,000 shares authorized, 1,250,000 designated as Series C; 688,250 and 0 shares issued and outstanding as of March 31, 2026 and September 30, 2025, respectively | 2792615 |  |
| Common stock subject to possible redemption, $0.001 par value, 60,000 shares issued and outstanding as of both March 31, 2026 and September 30, 2025, respectively | 120000 | 120000 |
| Stockholders' equity: |  |  |
| Preferred stock, $0.001 par value, 10,000,000 shares authorized, 1,250,000 designated as Series B; 200,000 shares issued and outstanding as of both March 31, 2026 and September 30, 2025 | 200 | 200 |
| Preferred stock, $0.001 par value, 5,000 shares designated as Series X; 5,000 shares issued and outstanding as of both March 31, 2026 and September 30, 2025 | 5 | 5 |
| Common stock, $0.001 par value, 190,000,000 shares authorized, 5,091,391 shares issued and outstanding as of both March 31, 2026 and September 30, 2025 | 5092 | 5092 |
| Additional paid-in capital | 1164513 | 1144513 |
| Retained earnings | 973168 | 767107 |
| &nbsp;&nbsp;&nbsp;Total stockholders' equity | 2142978 | 1916917 |
| &nbsp;&nbsp;&nbsp;Total liabilities, mezzanine equity and stockholders' equity | $5669618 | $2490483 |

---

See accompanying notes to these financial statements.

**COLLAB Z INC.**

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2026 AND 2025

(Unaudited)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **March 31,** | **March 31,** | **March 31,** | **March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| Revenue - related parties | $392777 | $295769 | $776373 | $525636 |
| Revenue | 386172 | 82549 | 485819 | 282549 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 778949 | 378318 | 1262192 | 808185 |
| Cost of revenue | 119941 | 103147 | 197308 | 185957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 659008 | 275171 | 1064884 | 622228 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 141881 | 5722 | 201801 | 10248 |
| &nbsp;&nbsp;&nbsp;General and administrative | 335977 | 244764 | 597814 | 466555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 477858 | 250486 | 799615 | 476803 |
| Income from operations | 181150 | 24685 | 265269 | 145425 |
| Other income (expense) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 13828 | 17351 | 22183 | 17351 |
| &nbsp;&nbsp;&nbsp;Interest expense |  | (14296) |  | (23006) |
| &nbsp;&nbsp;&nbsp;Loss on joint ventures | (2754) |  | (516) |  |
| &nbsp;&nbsp;&nbsp;Other income | - | 113 | - | 1418 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | 11074 | 3168 | 21667 | (4237) |
| Provision for income taxes | - | - | - | - |
| Net income | $192224 | $27853 | $286936 | $141188 |
| Weighted average common shares outstanding |  |  |  |  |
| Basic | 5091391 | 5091391 | 5091391 | 5091391 |
| Diluted | 5091391 | 5091391 | 5091391 | 5091391 |
| Net income per common share |  |  |  |  |
| Basic | $0.03 | $0.01 | $0.04 | $0.03 |
| Diluted | $0.03 | $0.01 | $0.04 | $0.03 |

---

See accompanying notes to these financial statements.

COLLAB Z INC.

CONDENSED CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY

FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2026 AND 2025

(Unaudited)

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock Subject<br> to Possible** | **Common Stock Subject<br> to Possible** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | | | | | |
|  | **Series C** | **Series C** | **Redemption** | **Redemption** | **Series B** | **Series B** | **Series X** | **Series X** | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in**<br>**Capital** |<br>**Retained**<br>**Earnings** | **Total**<br>**Stockholders'**<br>**Equity** |
| **Balances at September 30, 2024** |  | $- |  | $- |  | $- | 5000 | $5 | 5091391 | $5092 | $308713 | $869302 | $1183112 |
| Contributions |  |  |  |  |  |  |  |  |  |  | 10000 |  | 10000 |
| Net income | - | - | - | - | - | - | - | - | - | - | - | 113335 | 113335 |
| **Balances at December 31, 2024** |  |  |  |  |  |  | 5000 | 5 | 5091391 | 5092 | 318713 | 982637 | 1306447 |
| Contributions |  |  |  |  |  |  |  |  |  |  | 6000 |  | 6000 |
| Shares issued pursuant to investment in joint venture |  |  | 10000 | 20000 |  |  |  |  |  |  |  |  |  |
| Net income | - | - | - | - | - | - | - | - | - | - | - | 27853 | 27853 |
| **Balances at March 31, 2025** | - | $- | 10000 | $20000 | - | $- | 5000 | $5 | 5091391 | $5092 | $324713 | $1010490 | $1340300 |
| **Balances at September 30, 2025** |  | $- | 60000 | $120000 | 200000 | $200 | 5000 | $5 | 5091391 | $5092 | $1144513 | $767107 | $1916917 |
| Contributions |  |  |  |  |  |  |  |  |  |  | 10000 |  | 10000 |
| Preferred stock dividends |  |  |  |  |  |  |  |  |  |  |  | (25479) | (25479) |
| Net income | - | - | - | - | - | - | - | - | - | - | - | 94712 | 94712 |
| **Balances at December 31, 2025** |  |  | 60000 | 120000 | 200000 | 200 | 5000 | 5 | 5091391 | 5092 | 1154513 | 836340 | 1996150 |
| Contributions |  |  |  |  |  |  |  |  |  |  | 10000 |  | 10000 |
| Issuance of Series C preferred stock | 688250 | 2753000 |  |  |  |  |  |  |  |  |  |  |  |
| Preferred stock dividends |  | 39615 |  |  |  |  |  |  |  |  |  | (55396) | (55396) |
| Net income | - | - | - | - | - | - | - | - | - | - | - | 192224 | 192224 |
| **Balances at March 31, 2026** | 688250 | $2792615 | 60000 | $120000 | 200000 | $200 | 5000 | $5 | 5091391 | $5092 | $1164513 | $973168 | $2142978 |

---

See accompanying notes to these financial statements.

COLLAB Z INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED MARCH 31, 2026 AND 2025

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended** | **For the Six Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| **Cash flows from operating activities:** |  |  |
| Net income | $286936 | $141188 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Amortization | 26667 | 26667 |
| &nbsp;&nbsp;&nbsp;Loss on joint ventures | 516 |  |
| &nbsp;&nbsp;&nbsp;Non-cash equity contributions | 20000 | 16000 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable - related parties | (319647) | (182618) |
| &nbsp;&nbsp;&nbsp;Accounts receivable | (402712) | 130232 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 8346 | (42508) |
| &nbsp;&nbsp;&nbsp;Interest receivable | (12608) |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 121485 | 32835 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | - | 7000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by operating activities | (271017) | 128796 |
| **Cash flows from investing activities:** |  |  |
| Due from related parties, net of repayment | (37001) | 2065199 |
| Capitalized software development | (129993) | (19500) |
| Issuance of loan receivable |  | (1470000) |
| Repayments of loan receivable | 250000 | 662275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by investing activities | 83006 | 1237974 |
| **Cash flows from financing activities:** |  |  |
| Due to related parties, net of repayment | 13396 | (631833) |
| Proceeds from line of credit |  | 1300000 |
| Repayment of line of credit |  | (1942854) |
| Subscription receivable | 150000 |  |
| Deferred offering costs | (100839) | (148392) |
| Issuance of Series C preferred stock | 2753000 |  |
| Dividend paid | (15683) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 2799874 | (1423079) |
| **Net change in cash** | 2611863 | (56309) |
| Cash and restricted cash at beginning of period | 161506 | 105034 |
| Cash and restricted cash at end of period | $2773369 | $48725 |
| Reconciliation of cash and restricted cash: |  |  |
| &nbsp;&nbsp;&nbsp;Cash at beginning of period | $161506 | $105034 |
| &nbsp;&nbsp;&nbsp;Restricted cash at beginning of period | - | - |
| &nbsp;&nbsp;&nbsp;Cash and restricted cash at beginning of period | $161506 | $105034 |
| &nbsp;&nbsp;&nbsp;Cash at end of period | $10794 | $48725 |
| &nbsp;&nbsp;&nbsp;Restricted cash at end of period | 2762575 | - |
| &nbsp;&nbsp;&nbsp;Cash and restricted cash at end of period | $2773369 | $48725 |
| **Supplemental disclosure of cash flow information:** |  |  |
| Cash paid for income taxes | $- | $- |
| Cash paid for interest | $- | $22352 |
| **Supplemental disclosure of non-cash investing and financing activities:** |  |  |
| Preferred stock dividends included in mezzanine equity | $39615 | $- |
| Shares issued pursuant to investment in joint venture | $- | $20000 |
| Deferred offering costs included in accrued expenses | $- | $175000 |

---

See accompanying notes to these financial statements.

COLLAB Z INC.

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

NOTE 1 – NATURE OF OPERATIONS

Collab Z Inc. (the "Company") was formed on May 11, 2024. in the State of Nevada for the purpose of reorganizing and becoming the holding company for Collab CA LLC (Collab CA"), a California limited liability company.

In December 2024, Collab CA became a direct, wholly owned subsidiary of the Company as a result of the closing of the Reorganization Agreement and Plan of Share Exchange dated December 30, 2024 (the "Reorganization Agreement" or "Reorganization"). Pursuant to the Reorganization Agreement, the sole member of Collab CA exchanged 100% of its member interests for 4,550,500 shares of the Company's common stock. As a result, the member of Collab CA became a shareholder of the Company and Collab CA became a direct, wholly owned subsidiary of the Company.

The Reorganization was being accounted for as a reorganization of entities under common control by a control group. The accompanying financial statements have been presented to retroactively present the effect of the Reorganization. See Note 3 for further detail.

Collab CA is the main operating subsidiary engaged in various real estate services, including property management, construction and renovation management, as well as EB-5 immigration investor services and consulting services. Collab Z Inc., and its subsidiary, Collab CA, are at the forefront of the PropTech industry. The Company aims to transform property management by integrating community involvement and artificial intelligence to directly connect tenants with management tasks, eliminating intermediaries and enhancing efficiency.

The Company's headquarters are located in Berkeley, California.

NOTE 2 – GOING CONCERN

The accompanying unaudited condensed financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company had $10,794 in cash as of March 31, 2026, and $1,006,805 in amounts due from related parties. The Company is heavily reliant on related parties as its primary revenue and cash flow sources and has historically generated revenues from sources that may not be recurring. Our management's plans disclosure below assumes the continuing commercial relationship between the Company and the related party companies for which we provide services, and the assumption that such related parties can perform on their obligations.

The Company is early-stage, and expects to incur significant costs to expand its operations and conduct its business plan, which may result in future losses if it cannot effectively market its products and achieve market acceptance.

*Management's Plans*

We believe substantial doubt has been alleviated for a period of at least 12 months from the date the financial statements are issued based on the following:

The net due to and from related parties' balances at March 31, 2026, which are expected to be fully collected and paid, provide for a net positive effect to cash of approximately $0.39 million. In addition, third party receivables and the note receivable are expected to be paid and create cash inflows of $0.8 million in aggregate. These funds are expected to provide the Company with operating capital sufficient to cover basic operations while the Company makes efforts to increase revenue and maintain cost management to make operations more profitable and sustainable. Lastly, the Company is seeking to raise capital via an equity offering. In the event the Company does not complete an offering, the Company expects to seek additional funding through private equity offering, debt and/or related party financings to provide additional operating capital. The Company may not be able to obtain financing on acceptable terms, or at all.

COLLAB Z INC.

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

*Basis of Presentation*

The unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and the rules of the SEC and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended September 30, 2025, as filed with the SEC on December 23, 2025. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. All significant intercompany balances and transactions have been eliminated in consolidation. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the year ended September 30, 2025, as reported in the Company's Annual Report on Form 10-K have been omitted.

The unaudited condensed consolidated financial statements represent a) the historical operations of Collab CA, which was formed on November 25, 2019, b) the historical operations of Collab Living LLC ("Collab Living"), a Delaware limited liability company formed on May 15, 2023, c) the initial capital structure of Collab Z, which was completed upon the Reorganization (see Note 1), and d) the results of Collab Z, which solely consisted of the issuance of shares (see Note 8).

In accordance with ASC 805-50-15-6, the Company determined that the share exchange was a reorganization of entities under common control. Collab Z and Collab CA maintained common control for the entire period for which the financial statements are presented through the Reorganization. The Company concluded that the entities were under common control via common ownership and common management. Specifically, the founder and former managing member of Collab CA is the founder and former Chairman of the Company and along with the YRQ Trust for which the trustees and beneficiaries are immediate family members, make up a control group that held voting and management control of Collab CA and the Company prior to and after the Reorganization

Therefore, in accordance with ASC 250-10-45 and ASC 805-50-45, the financial statements required retrospective consolidation of the entities for all periods presented. The financial statements as of March 31, 2026 and September 30, 2025 and for the three and six months ended March 31, 2026 and 2025 are prepared on a consolidated basis which includes Collab CA and Collab Living.

*Principles of Consolidation*

 

The Company evaluates its relationships with other entities to identify whether they are variable interest entities ("VIE") as defined by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 810, Consolidation ("ASC 810"), and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is consolidated. The Company evaluated whether it was the primary beneficiary with its various related party entities it transacts with, and determined it is not the primary beneficiary of any entities.

Collab Living is 50% owned by Collab CA, and it was determined that Collab CA was the primary beneficiary in 2025 and 2024. Per ASC 810-10-50, the Company concluded that Collab CA was the primary beneficiary via its obligation to absorb losses (i.e. non-substantive voting rights) and its power to direct activities that most significantly impact Collab Living's economic performance. Historically, Collab CA has funded the operations of Collab Living and Collab CA's management has directed all Living's activities.

In accordance with ASC 810-10-45-25, Collab Living's results are consolidated within the Company's financial statements. The separate assets, liabilities and results of operations of Collab Living are immaterial. Furthermore, the balance of non-controlling interests was nominal as of March 31, 2026 and September 30, 2025.

*Use of Estimates*

The preparation of the Company's unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, valuation of common stock and related stock-based compensation. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.

COLLAB Z INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

*Concentration of Credit Risk*

The Company's cash and cash equivalents are held at major financial institutions which are deemed credit worthy, in amounts that may at times exceed federally insured limits.

***Restricted Cash***

 ****

The Company classifies as restricted cash any cash and cash equivalents that are legally or contractually restricted as to withdrawal or use. During the six months ended March 31, 2026, the Company issued shares of Series C convertible preferred stock and the related cash proceeds were deposited by the investors directly into a segregated escrow account pursuant to the related Securities Purchase Agreement. The escrowed funds will be released to the Company only upon consummation of a Qualified Public Offering and otherwise are returned to the investors upon a redemption or termination event under the agreement. The escrowed balance is classified as current restricted cash because the contingencies governing release or return resolve within twelve months of the balance sheet date. As of March 31, 2026, restricted cash totaled $2,762,575, including $9,575 of interest earned during the period.

Interest earned on escrowed funds is recognized as interest income with a corresponding increase to restricted cash. The Company reconciles cash, cash equivalents, and restricted cash at the beginning and end of the period in the consolidated statement of cash flows in accordance with ASC 230-10-45-24 (ASU 2016-18).

*Deferred Offering Costs*

The Company complies with the requirements of Accounting Standards Codification ("ASC") 340-10-S99-1 with regards to offering costs. Prior to the completion of an offering, offering costs are capitalized. The deferred offering costs are charged to additional paid-in capital or as a discount to debt, as applicable, upon the completion of an offering or to expense if the offering is not completed. As of March 31, 2026 and September 30, 2025, the Company has $720,764 and $619,925, respectively, in capitalized deferred offering costs.

*Investment in Joint Ventures*

In March and April 2025, the Company entered into five separate limited liability company agreements (collectively, the "Joint Venture Agreements") with five unaffiliated entities to form joint venture companies in Nevada, wherein the Company holds a 40% ownership stake in each joint venture company. For four of the five joint venture agreements, the Company issued 10,000 shares of common stock for each joint venture entity, which were valued at $20,000 based on a fair value of $2.00 per share, as part of the capital funding for the joint venture. For the remaining agreement, the Company issued 20,000 shares of common stock for the joint venture entity, which were valued at $40,000 based on a fair value of $2.00 per share, as part of the capital funding for the joint venture. Each joint venture was established to pursue property management and related real estate activities in specific local markets using our community-based property management platform. These entities operate independently and are owned jointly by us and our respective joint venture partners. As of March 31, 2026, all of the five joint venture agreements were in effect.

The Company holds investments in multiple joint ventures, all of which are accounted for under the equity method in accordance with ASC 323, *Investments—Equity Method and Joint Ventures*. The Company exercises significant influence, but does not have a controlling financial interest, in each of these joint ventures. Accordingly, the investments are initially recorded at cost and subsequently adjusted for the Company's proportionate share of each joint venture's net income or loss and other comprehensive income. The carrying amounts of these investments are evaluated for impairment in accordance with ASC 323-10-35 when events or changes in circumstances indicate that a decline in value may have occurred.

The Company evaluated the joint venture agreement under ASC 810 and determined it was not the primary beneficiary. As such, the Company accounted for the investment under ASC 323 as noted above.

As of March 31, 2026, the carrying value of the investment was $57,237, consisting of the $57,753 the carrying value of the investment as of September 30, 2025 and additional $516, representing the Company's proportionate share of the joint venture's net loss for the six months ended March 31, 2026.

COLLAB Z INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

*Fair Value Measurements*

 

Certain assets and liabilities of the Company are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

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

● Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

● Level 3—Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

The carrying values of the Company's assets and liabilities approximate their fair values. See Note 5 for fair value measurement disclosures.

*Related Parties*

Related parties are any entities or individuals that, through employment, ownership or other means, possess the ability to direct or cause the direction of the management and policies of the Company. The Company discloses related party transactions that are outside of normal compensatory agreements, such as salaries. The Company follows ASC 850, *Related Party Disclosures*, for the identification of related parties and disclosure of related party transactions.

*Accounts Receivable*

The Company has accounts receivable with both related and third-party customers. Accounts receivable is recorded at the invoiced amount or earned fees pursuant to the agreement; are non-interest bearing and are stated at the historical carrying amount net of write-offs and allowances for uncollectible accounts. The Company establishes an allowance for uncollectible accounts based on historical experience and any specific customer collection issues that the Company has identified. There was no allowance for uncollectible accounts at March 31, 2026 and September 30, 2025.

*Capitalized Software Development*

 

The Company capitalizes certain costs related to the development of its property management system pursuant to ASC 350-40. Costs incurred during the development phase are capitalized only when it is deemed probable that the development will result in new or additional functionality. The Company determined that its customization efforts to existing software significantly enhanced functionality, involved substantial development effort and integrated with existing systems. As such, the Company capitalized these costs during the development phase. Costs associated with the preliminary project planning phase and the post-implementation phase are expensed as incurred. The capitalized development costs are amortized on a straight-line basis over the estimated useful life of the asset.

The system, which is expected to be the backbone of the Company's property management service, was developed between November 2023 and August 2024, at which point it was ready for use. The Company began amortizing the costs over a three-year period starting in August 2024. Furthermore, in 2025 the Company began capitalizing another internally developed application. As of March 31, 2026, the application was not yet placed in service and therefore amortization has not commenced. See Note 6.

COLLAB Z INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

*Revenue Recognition*

The Company recognizes revenue from services in accordance with FASB ASC Topic 606, *Revenue from Contracts with Customers* ("ASC 606"). Under ASC 606, the Company recognizes revenue when or as the Company's performance obligations are satisfied by transferring control of the promised services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps as prescribed by ASC 606:

(i) identify the contract(s) with a customer;

(ii) identify the performance obligations in the contract;

(iii) determine the transaction price;

(iv) allocate the transaction price to the performance obligations in the contract; and

(v) recognize revenue when (or as) the entity satisfies performance obligations.

The Company only applies the five-step model to contracts when it is probable that it will collect substantially all the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assess whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company has applied ASC 606 on a portfolio basis. The Company has elected the practical expedients, allowing the recognition of incremental costs of obtaining a contract as an expense when incurred, and not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between customer payment and the transfer of goods or services is expected to be one year or less.

The Company generates revenue through the following streams:

*Property Management*

 

The Company provides property management services for rental properties that include various elements based on the underlying contractual agreement. The Company earns a fixed percentage of monthly lease income. This revenue is recognized on an ongoing, monthly basis. The Company earns additional fees based on a fixed percentage of property-related expenses such as repairs and maintenance at the time the underlying costs are incurred. The Company, at times, is also eligible to earn commissions on the first month of a new lease agreement. Certain managed properties include a profit share arrangement based on guaranteed rental income whereby the Company shares in the excess rental income over the guaranteed amounts. Any losses incurred under these guarantees have historically been netted against accounts receivable and have not been material. The Company recognizes this revenue at the point in time the excess rental income is known. The Company recognizes this revenue monthly, when the profit share information becomes known.

*Development and Construction Management*

 

The Company provides services consisting of the oversight of property development and construction projects, including budget monitoring and timeline management. Development fees are recognized on an ongoing monthly basis through the completion of the service period.

*Procurement*

 

The Company facilitates procurement of materials and supplies for construction projects as well as provides related services for design of procured goods. Procurement fees related to ordered goods are recognized at a point in time upon the completion of the procurement service, which is shipment of the related materials. Revenue for design services are recognized at point in time when the related services are complete.

COLLAB Z INC.

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

 

*Renovation Management*

 

Renovation management services include assisting in the acquisition, renovation, and disposition of properties. Renovation fees are recognized on an ongoing, monthly basis through the completion of the service period, which is based on the time elapsed of the renovation project. The Company also earns renovation service fees, which are recognized over time as the project progresses based on the actual costs incurred of the underlying renovation project. Acquisition and disposition fees are recognized at a point in time after the acquisition of the property.

*EB-5 Immigration Investor Services*

The Company identifies EB-5 immigration investment projects and assists investors with project identification, assistance and support during the project application process. Fees are recognized at a point in time upon the fulfillment of the EB-5 service obligations, which is when the EB-5 application package has been submitted. Payments are typically billed in two tranches, and any deferred revenue is recognized once performance obligations are met.

*Consulting Services*

The Company provides other real estate consulting services to both related and third parties that are defined by respective service agreements. Consulting services may include terms whereby there are a set of deliverables required for which revenue will be recognized over time as the deliverables are satisfied, or at a point in time if the contract calls for a defined deliverable. Each contract is assessed for performance obligations. There is generally no right of refund related to these services.

Each revenue source above is a different type of service being performed, and distinct from the other performance obligations.

*Disaggregation of Revenue*

A disaggregation of revenue for the three and six months ended March 31, 2026 and 2025 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **March 31,** | **March 31,** | **March 31,** | **March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| Property management | $121071 | $192752 | $229767 | $357414 |
| Development and construction management | 148806 | 103017 | 214806 | 119514 |
| Procurement |  |  |  | 48708 |
| Consulting services | 122900 | - | 331800 | - |
| &nbsp;&nbsp;&nbsp;Revenue - related parties | 392777 | 295769 | 776373 | 525636 |
| Consulting services | 365000 | 70000 | 445000 | 270000 |
| Property management | 21172 | 12549 | 40819 | 12549 |
| &nbsp;&nbsp;&nbsp;Revenue | 386172 | 82549 | 485819 | 282549 |
| &nbsp;&nbsp;&nbsp;Total revenue | $778949 | $378318 | $1262192 | $808185 |

---

COLLAB Z INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Deferred revenue primarily represents customer billings on EB-5 contracts for services not yet rendered or procurement services where shipment of goods has not occurred. EB-5 services generally require several months between the time of agreement with the customer and the completion of performance obligations. As of March 31, 2026 and September 30, 2025, the Company has deferred revenue of $35,000. The Company expects deferred revenue as of March 31, 2026 to be recognized within one year.

The following table summarizes the deferred revenue balance as of March 31, 2026 and September 30, 2025:

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2026** | **September 30,**<br>**2025** |
| Balance, beginning | $35000 | $40000 |
| New service contracts |  | 35000 |
| Revenue recognized | - | (40000) |
| Balance, ending | $35000 | $35000 |

---

*Concentrations*

 

During the six months ended March 31, 2026 and 2025, 62% and 65% of the Company's revenues were with related party properties under common control and/or management. During the six months ended March 31, 2026, one related-party property accounted for 15% of the Company's total revenues. During the six months ended March 31, 2025, one related-party property accounted for 17% of the Company's total revenues.

As of March 31, 2026 and September 30, 2025, 54% and 75%, respectively, of the Company's accounts receivable were with related party properties under common control and/or management. As of March 31, 2025, one related party property accounted for 18% of the Company's total receivables. As of September 30, 2025, one related party property accounted for 52% of the Company's total receivables.

To date the Company has been highly dependent on related party customers as its primary source of revenue and cash flows from operations. The Company may be negatively affected by the loss of one of these customers, or a change in the related party relationship.

 

*Future Equity Obligations*

The Company has issued Simple Agreements for Future Equity ("SAFEs") in exchange for cash financing. These amounts are classified as future equity obligations, which are long-term liabilities on the consolidated balance sheets. The Company has accounted for its SAFE investments as liability derivatives for which the Company will record changes to fair value through earnings.

*Common Stock Subject to Redemption*

The Company accounts for its shares of common stock subject to possible redemption in accordance with the guidance enumerated in ASC 480. Shares subject to mandatory redemption are classified as a liability instrument and is measured at fair value. Conditionally redeemable common shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company's control are classified as temporary equity. At all other times, common shares are classified as stockholders' equity. The shares of common stock issued pursuant to the Joint Venture Agreements (see above and Note 8) feature certain redemption rights subject to the occurrence of uncertain future events, including the Company's contemplated future public offering, and therefore are classified within temporary or mezzanine equity.

***Redeemable Convertible Preferred Stock***

The Company accounts for redeemable convertible preferred stock in accordance with ASC 480 and ASC 480-10-S99-3A. Convertible preferred stock that embodies an unconditional obligation to redeem on a specified date or upon an event certain to occur is classified as a liability and measured at fair value pursuant to ASC 480-10-25-4. Convertible preferred stock that embodies a conditional obligation to redeem upon an event not certain to occur, where redemption is at the option of the holder or may occur upon an event not solely within the Company's control, is classified as temporary (mezzanine) equity in accordance with ASC 480-10-S99-3A. Such instruments are initially recognized at issuance proceeds, less direct issuance costs.

COLLAB Z INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

When an instrument classified as temporary equity is currently redeemable or its redemption is probable, the carrying amount is adjusted to redemption value at each reporting date pursuant to ASC 480-10-S99-3A.15, with the offset recorded against retained earnings (or, in the absence of retained earnings, additional paid-in capital). Adjustments to the carrying amount are treated as deemed dividends and reduce net income (or increase net loss) attributable to common stockholders for purposes of computing earnings per share. If the condition resolves in favor of redemption, the instrument is reclassified to a liability at fair value pursuant to ASC 480-10-25-7.

Convertible preferred stock, the redemption of which is solely within the Company's control, is classified within permanent stockholders' equity. The Company's Series C Convertible Preferred Stock (see Note 9) is classified as mezzanine equity in accordance with the foregoing policy.

*Stock-Based Compensation*

The Company accounts for stock-based compensation in accordance with ASC 718, *Compensation – Stock Compensation*. The Company measures all stock-based awards granted to employees, directors and non-employee consultants based on the fair value on the date of the grant and recognizes compensation expense for those awards over the requisite service period, which is generally the vesting period of the respective award. For awards with service-based vesting conditions, the Company records the expense for using the straight-line method. For awards with performance-based vesting conditions, the Company records the expense if and when the Company concludes that it is probable that the performance condition will be achieved.

The Company classifies stock-based compensation expense in its statement of operations in the same manner in which the award recipient's costs are classified.

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.

*Subscription Receivable*

The Company records stock issuances at the effective date. If the subscription is not funded upon issuance, the Company records a subscription receivable as an asset on a balance sheet. When subscription receivables are not received prior to the issuance of financial statements at a reporting date in satisfaction of the requirements under FASB ASC 505-10-45-2, the subscription is reclassified as a contra account to stockholders' equity on the balance sheet.

 

*Net Income per Share*

 

Net earnings per share is computed by dividing net income 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. Adjustments to the carrying amount of redeemable equity securities classified as temporary equity, including accretion to redemption value (which for the Series C Convertible Preferred Stock includes accrued cumulative dividends), are treated as deemed dividends and reduce net income (or increase net loss) attributable to common stockholders for purposes of computing earnings 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 of March 31, 2026 and September 30, 2025, there were an indeterminable number of shares that were potentially dilutive based on the Company's outstanding future equity obligations for which conversion is contingent on a future event (see Note 7).

As of March 31, 2026, the Company had 702,975 outstanding stock options, each exercisable for shares of common stock, which were contingent upon the IPO, as well as 200,000 shares of Series B Preferred Stock outstanding convertible into 285,714 shares of common stock (see Note 9) and 9,135 shares related to conversion of Series B Preferred stock dividends and 688,250 shares of Series C Preferred Stock outstanding convertible into 764,722 shares of common stock (see Note 9) and 11,004 shares related to conversion of Series C Preferred stock dividends.

COLLAB Z INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** | **For the Six Months Ended** | **For the Six Months Ended** |
|  | **March 31,** | **March 31,** | **March 31,** | **March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| **Numerator:** |  |  |  |  |
| Net income | $192224 | $27853 | $286936 | $141188 |
| Less: Preferred stock dividends | 55396 | - | 80875 | - |
| Net income available to common stockholders | $136828 | $27853 | $206061 | $141188 |
| **Denominator:** |  |  |  |  |
| Denominator for basic EPS – weighted average shares |  |  |  |  |
| Basic | 5091391 | 5091391 | 5091391 | 5091391 |
| Denominator for diluted EPS – weighted average shares |  |  |  |  |
| Basic | 5091391 | 5091391 | 5091391 | 5091391 |
| Plus: Effect of dilutive securities | - | - | - | - |
| Diluted | 5091391 | 5091391 | 5091391 | 5091391 |
| **Net income per common share** |  |  |  |  |
| Basic | $0.03 | $0.01 | $0.04 | $0.03 |
| Diluted | $0.03 | $0.01 | $0.04 | $0.03 |

---

Diluted earnings per share for the three and six months ended March 31, 2026 was computed as $0.03 and $0.04 per share, respectively, as all potentially dilutive securities were excluded from the computation because the effect of dilutive securities caused diluted earnings per share to exceed basic earnings per share. Specifically, 1,050,437 shares of convertible preferred stock and 20,139 shares related to preferred dividend conversions were excluded because their effect was anti-dilutive under the if-converted method. Furthermore, 702,975 options were excluded from the diluted calculation because the performance contingency associated with a future offering had not been satisfied as of the reporting date.

 

*Segment Reporting*

 

In accordance with ASC 280, Segment Reporting ("ASC 280"), we identify our operating segments according to how our business activities are managed and evaluated. ASC 280 establishes standards for companies to report financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company's chief operating decision maker ("CODM"), or group, in deciding how to allocate resources and assess performance.

The CODM has been identified as the Chief Executive Officer, who reviews the operating results for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that the Company only has one operating and reportable segment.

The key measures of segment profit or loss reviewed by our CODM are consolidated net income or loss. These metrics are reviewed and monitored by the CODM to manage and forecast cash. The CODM also reviews operating costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget.

COLLAB Z INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 4 – LOAN RECEIVABLE

In November 2024, the Company loaned $170,000 to a third party. The loan is unsecured, payable on demand and bears interest at a rate of 6.5% per annum commencing December 24, 2024.

In December 2024, the Company loaned an additional $1,300,000 to the same third party. The loan is unsecured, due on February 20, 2025, and bore interest at a rate of 8% per annum commencing January 4, 2025. In January 2025, the parties amended the agreement for the loan to be payable on demand and an interest rate of 6.5% per annum.

During the three and six months ended March 31, 2026, the Company recognized interest income of $4,253 and $12,608, respectively, on the respective loans, which is included in loan receivable in the accompanying statement of operations.

During the six months ended March 31, 2026, the Company received repayments totaling $250,000. As of March 31, 2026 and September 30, 2025, the outstanding loan receivable balance was $314,668 and $552,059, respectively.

NOTE 5 – FAIR VALUE MEASUREMENTS

The Company's financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements<br> as of March 31, 2026 Using:** | **Fair Value Measurements<br> as of March 31, 2026 Using:** | **Fair Value Measurements<br> as of March 31, 2026 Using:** | **Fair Value Measurements<br> as of March 31, 2026 Using:** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Liabilities: |  |  |  |  |
| Future equity obligations | $&nbsp;&nbsp;&nbsp;&nbsp;- | $&nbsp;&nbsp;&nbsp;&nbsp;- | $25000 | $25000 |
|  | $- | $- | $25000 | $25000 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements<br> as of September 30, 2025 Using:** | **Fair Value Measurements<br> as of September 30, 2025 Using:** | **Fair Value Measurements<br> as of September 30, 2025 Using:** | **Fair Value Measurements<br> as of September 30, 2025 Using:** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Liabilities: |  |  |  |  |
| Future equity obligations | $&nbsp;&nbsp;&nbsp;&nbsp; - | $&nbsp;&nbsp;&nbsp;&nbsp; - | $25000 | $25000 |
|  | $- | $- | $25000 | $25000 |

---

The Company measures the simple agreements for future equity at fair value based on significant inputs not observable in the market, which causes it to be classified as a Level 3 measurement within the fair value hierarchy. The valuation of the future equity obligations uses assumptions and estimates the Company believes would be made by a market participant in making the same valuation. The Company assesses these assumptions and estimates on an on-going basis as additional data impacting the assumptions and estimates are obtained. Changes in the fair value of the simple agreements for future equity related to updated assumptions and estimates are recognized within the statements of operations.

COLLAB Z INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The simple agreements for future equity may change significantly as additional data is obtained, impacting the Company's assumptions regarding probabilities of outcomes used to estimate the fair value of the liability. In evaluating this information, considerable judgment is required to interpret the data used to develop the assumptions and estimates. The estimates of fair value may not be indicative of the amounts that could be realized in a current market exchange. Accordingly, the use of different market assumptions and/or different valuation techniques may have a material effect on the estimated fair value amounts, and such changes could materially impact the Company's results of operations in future periods.

The Company utilized a probability-weighted average approach based on the estimated market value of the underlying securities and the potential settlement outcomes of the simple agreements for future equity, including a liquidity event or future equity financing as well as other settlement alternatives. Both the market value of the underlying securities and the probability of the settlement outcomes include unobservable Level 3 inputs.

As of March 31, 2026 and September 30, 2025, the Company assumed a 50% probability of a liquidity event as the primary ultimate settlement outcome of the future equity obligations. Based on the Company's estimates regarding the probability of the triggering events and the Company's valuation, management determined the fair value of the SAFEs were representative of the face value as of March 31, 2026 and September 30, 2025.

The following table presents changes in future equity obligations for the six months ended March 31, 2026:

---

| | |
|:---|:---|
|  | **Future equity**<br>**obligations** |
| Outstanding as of September 30, 2025 | $25000 |
| Change in fair value | - |
| Outstanding as of March 31, 2026 | $25000 |

---

NOTE 6 – INTANGIBLE ASSETS, NET

As of March 31, 2026 and September 30, 2025, intangible assets, net consisted of:

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2026** | **September 30,**<br>**2025** |
| Software development - property management system | $160000 | $160000 |
| Internally developed application | 230393 | 100400 |
| Less: Accumulated amortization | (88889) | (62222) |
| Intangible assets, net | $301504 | $198178 |

---

Amortization expense for the three months ended March 31, 2026 and 2025, was $13,333 and $13,333, respectively, which is included in costs of revenues in the consolidated statements of operations.

COLLAB Z INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Amortization expense for the six months ended March 31, 2026 and 2025, was $26,667 and $26,667, respectively, which is included in costs of revenues in the consolidated statements of operations.

As of March 31, 2026, the internally developed application was not yet placed in service and therefore amortization has not commenced.

NOTE 7 – DEBT

*Revolving Line of Credit*

 

On March 14, 2024, the Company entered into a revolving line of credit agreement with East West Bank for a principal amount of up to $2,000,000. The line of credit was terminated in December 2025. The loan was secured by an assignment of a deposit account held by Collab CA's former member, YRQ Irrevocable Trust. The loan had a variable interest rate based on the interest rate of the collateral's certificate of deposit plus 1.5%. The rate was 5.905% per annum.

During the year ended September 30, 2025, the Company borrowed an aggregate of $1,300,000, which was used to provide a loan to a third party (see Note 4). On February 4, 2025, the Company paid off the line of credit with the funds from the collection of the Company's due from related parties and receivables. As a result, the line of credit was closed prior to its contractual maturity date, and no amounts were outstanding or available under the facility as of March 31, 2026.

*Future Equity Obligations*

In April 2023, the Company entered into a SAFE agreement for proceeds of $25,000. The SAFE has a valuation cap of $50,000,000 and a discount of 25%, which will be applied to the valuation of the Company at the time of the triggering event in order to calculate the price per share for the investor.

The SAFE will convert into equity upon the occurrence of a future qualified financing round of at least $10,000,000 or another triggering event, including the event of a merger, acquisition or initial public offering ("IPO").

As of March 31, 2026 and September 30, 2025, the fair value of SAFEs was $25,000 and $25,000, respectively. See Note 5 for fair value disclosures.

COLLAB Z INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 – STOCKHOLDERS' EQUITY

The total number of shares of stock which the Company is authorized to issue is 200,000,000 shares, consisting of 190,000,000 shares of common stock, $0.001 par value per share, and 10,000,000 shares of preferred stock, $0.001 par value per share. Of the 10,000,000 authorized shares of preferred stock, 5,000 shares were designated as Series X preferred stock, 1,250,000 shares were designated as Series B preferred stock, and 1,250,000 shares were designated as Series C preferred stock.

In October 2024, the Company issued 5,000 shares of Series X preferred stock to Collab CA's sole member. In December 2024, pursuant to the Reorganization Agreement, the member of Collab CA exchanged 100% of its membership interests for 4,550,500 shares of the Company's common stock. Both the issuance of Series X preferred stock and the issuance of common shares pursuant to the share exchange were conducted with YRQ Irrevocable Trust ("YRQ"), Collab CA's sole member. These series of transactions are considered together as part of the Reorganization.

 

*Series B Preferred Stock*

 

Pursuant to a Series B Certificate of Designation filed with the Secretary of State of Nevada on June 5, 2025, the Company is authorized to issue up to 1,250,000 shares of Series B preferred stock with a stated value of $4.00 per share.

During the year ended September 30, 2025, the Company issued an aggregate of 200,000 shares of Series B preferred stock to accredited investors for a total purchase price of $800,000. Of this amount, $150,000 was collected in October 2025.

The Series B preferred stock has the following rights and preferences:

*<u>Automatic Conversion</u>*

Pursuant to the Series B Certificate of Designation, in connection with, and on the closing of a Qualified Public Offering, Qualified Financing or Qualified Disposition, all of the outstanding shares of Series B preferred stock shall automatically convert along with the aggregate accrued or accumulated and unpaid dividends thereon into an aggregate number of shares of common stock as is determined by dividing the stated value per share along with the aggregate accrued or accumulated and unpaid dividends on the outstanding shares of Series B preferred stock by the Conversion Price.

Pursuant to the Series B Certificate of Designation, in connection with, and on the closing of a Qualified Public Offering (public offering resulting in listing on a national exchange), Qualified Financing (equity financing greater than $3,000,000) or Qualified Disposition, all of the outstanding shares of Series B preferred stock shall automatically convert along with the aggregate accrued or accumulated and unpaid dividends thereon into an aggregate number of shares of common stock as is determined by dividing the stated value per share along with the aggregate accrued or accumulated and unpaid dividends on the outstanding shares of Series B preferred stock by the Conversion Price.

Conversion price - Each share of Series B Preferred Stock is convertible into shares of common stock based on its stated value, divided by a conversion price equal to 70% of the assumed offering price of $4.00 of the Company's common stock. Accordingly, the number of common shares issuable upon conversion varies based on the offering price.

*<u>Accrual and Payment of Dividends</u>*

In the event the Qualified Public Offering is not consummated by December 31, 2026, dividends on such share of Series B preferred stock shall accrue, whether or not declared by the Board and whether or not there are funds legally available for the payment of dividends, $0.32 annually per share or at the rate of 8% per annum on the sum of the Liquidation Value which is $4.00 per share of Series B preferred stock (as adjusted for any stock splits, stock dividends, recapitalizations, or similar transaction with respect to the Series B preferred stock). All accrued dividends on any share shall be paid in cash only when, as and if declared by the Board out of funds legally available therefor or upon a Liquidation of the Series B preferred stock; provided, that to the extent not paid on the last day of March, June, September, and December of each calendar year (each such date, a "Dividend Payment Date"), all accrued dividends on any share shall accumulate and compound on the applicable Dividend Payment Date whether or not declared by the Board and shall remain accumulated, compounding dividends until paid pursuant hereto or converted pursuant to the terms herein. All accrued and accumulated dividends on the shares shall be prior and in preference to any dividend on any junior securities and shall be fully declared and paid before any dividends are declared and paid, or any other distributions or redemptions are made, on any junior securities, other than to (a) declare or pay any dividend or distribution payable on the common stock in shares of common stock or (b) repurchase common stock held by employees or consultants of the Company upon the termination of their employment or services pursuant to agreements providing for such repurchase. Accordingly, an aggregate of $41,260 preferred stock dividends were accrued for the six months ended March 31, 2026, of which $15,683 was paid, with the remaining $25,577 unpaid as of March 31, 2026.

**COLLAB Z INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

*<u>Liquidation</u>*

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company (a "Liquidation"), the holders of shares of Series B preferred stock then outstanding shall be entitled to be paid out of the assets of the Company available for distribution to its stockholders, before any payment shall be made to the holders of junior securities by reason of their ownership thereof, an amount in cash equal to the aggregate Liquidation Value of all shares held by such holder, plus all unpaid accrued and accumulated dividends on all such shares (whether or not declared).

In addition to and after payment in full of all preferential amounts required to be paid to the holders of Series B preferred stock upon a Liquidation, the holders of shares of Series B preferred stock then outstanding shall be entitled to participate with the holders of shares of junior securities then outstanding, pro rata as a single class based on the number of outstanding shares of Junior Securities on an as-converted basis held by each holder as of immediately prior to the Liquidation, in the distribution of all the remaining assets and funds of the Company available for distribution to its stockholders.

If upon any Liquidation the remaining assets of the Company available for distribution to its stockholders shall be insufficient to pay the holders of the shares of Series B preferred stock the full preferential amount to which they are entitled, (i) the holders of the shares shall share ratably in any distribution of the remaining assets and funds of the Company in proportion to the respective full preferential amounts which would otherwise be payable in respect of the Series B preferred stock in the aggregate upon such Liquidation if all amounts payable on or with respect to such shares were paid in full, and (ii) the Company shall not make or agree to make any payments to the holders of Junior Securities.

*<u>Voting</u>*

The Series B preferred stock are not entitled to any votes with respect to any and all matters presented to the stockholders of the Company for their action or consideration (whether at a meeting of stockholders of the Company, by written action of stockholders in lieu of a meeting or otherwise), except as provided by law.

*<u>Reissuance of Series B Preferred Stoc</u>*<u>k</u>

Any shares of Series B preferred stock converted or otherwise acquired by the Company shall be cancelled and retired as authorized and issued shares of capital stock of the Company and no such shares shall thereafter be reissued, sold, or transferred.

*<u>Protective Provisions</u>*

No provision of the Series B Certificate of Designation may be amended, modified, or waived except by an instrument in writing executed by the Company and the holders of not less than two-thirds of the then total outstanding shares of Series B preferred stock (a "Supermajority Interest") and any such written amendment, modification, or waiver will be binding upon the Company and each holder of Series B preferred stock; provided, that no such action shall change or waive (a) the definition of Liquidation Value, or (b) the rate at which or the manner in which dividends on the Series B preferred stock accrue or accumulate or the times at which such dividends become payable without the prior written consent of each holder of outstanding shares of Series B preferred stock; provided, further, that no amendment, modification, or waiver of the terms or relative priorities of the Series B preferred stock may be accomplished by the merger, consolidation, or other transaction of the Company with another Company or entity unless the Company has obtained the prior written consent of the all of the holders of the Series B preferred stock.

**COLLAB Z INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

*<u>Redemption</u>*

The Series B designation allows for the shares to be redeemed solely at the discretion of the Company if an IPO has not commenced as of March 31, 2026 and provides for a window of repurchase. There are no circumstances in which the holder can force redemption.

***Series C Preferred Stock***

Pursuant to a Series C Certificate of Designation filed with the Secretary of State of Nevada in December 2025, the Company is authorized to issue up to 1,250,000 shares of Series C preferred stock with a stated value of $4.00 per share.

During the six months ended March 31, 2026, the Company issued an aggregate of 688,250 shares of Series C convertible preferred stock to investors for an aggregate purchase price of $2,753,000. Investor funds were deposited directly into a segregated escrow account at a third-party transfer agent pursuant to the related Securities Purchase Agreement. As of March 31, 2026 the escrowed balance of $2,762,575 (which includes $9,575 of interest earned during the period) is reflected as restricted cash within current assets on the consolidated condensed balance sheets.

The Series C convertible preferred stock is redeemable for cash if (i) a Qualified Public Offering is not consummated on or before September 30, 2026, or (ii) the related Securities Purchase Agreement is terminated by the Company. Holders of the Series C convertible preferred stock have no right to require redemption. Because redemption may occur upon an event that is not solely within the Company's control, the Series C convertible preferred stock is classified as temporary (mezzanine) equity If a Qualified Public Offering is not consummated by September 30, 2026, or the Board of Directors approves termination of the Securities Purchase Agreement, the Company will reclassify the Series C convertible preferred stock from temporary equity to a liability measured at fair value at that date.

The Company adjusts the carrying amount of the Series C convertible preferred stock to its redemption value at each reporting date. The redemption value equals the aggregate liquidation value plus all accrued and unpaid cumulative dividends. As of March 31, 2026, the redemption value of the Series C convertible preferred stock was $2,792,615, comprising of the aggregate liquidation value of $2,753,000 and accrued and unpaid cumulative dividends of $39,615.

Cumulative dividends are added to the carrying amount recorded as a deemed dividend and reduces income available to common stockholders.

The Series C preferred stock has the following rights and preferences:

*<u>Automatic Conversion</u>*

Pursuant to the Series C Certificate of Designation, in connection with, and on the closing of a Qualified Public Offering (public offering resulting in listing on a national exchange), all of the outstanding shares of Series C preferred stock shall automatically convert along with the aggregate accrued or accumulated and unpaid dividends thereon into an aggregate number of shares of common stock as is determined by dividing the stated value per share along with the aggregate accrued or accumulated and unpaid dividends on the outstanding shares of Series C preferred stock by the Conversion Price.

*<u>Conversion Price</u>*

Each share of Series C preferred stock is convertible into shares of common stock based on its stated value, divided by a conversion price equal to 90% of the Qualified Public Offering price. Accordingly, the number of common shares issuable upon conversion varies based on the offering price.

**COLLAB Z INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

*<u>Liquidation</u>*

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company (a "Liquidation"), the holders of shares of Series C preferred stock then outstanding shall be entitled to be paid out of the assets of the Company available for distribution to its stockholders, before any payment shall be made to the holders of junior securities, an amount in cash equal to the aggregate Liquidation Value of all shares held by such holder, plus all unpaid accrued and accumulated dividends (whether or not declared).

In addition to and after payment in full of all preferential amounts required to be paid to the holders of Series C preferred stock upon a Liquidation, the holders of shares of Series C preferred stock then outstanding shall be entitled to participate with the holders of junior securities then outstanding, pro rata as a single class based on the number of outstanding shares of junior securities on an as-converted basis held by each holder as of immediately prior to the Liquidation.

If upon any Liquidation the remaining assets of the Company available for distribution are insufficient to pay the holders of the shares of Series C preferred stock the full preferential amount, (i) the holders shall share ratably in any distribution in proportion to the respective full preferential amounts, and (ii) the Company shall not make any payments to the holders of junior securities.

*<u>Voting</u>*

The Series C preferred stock is not entitled to any votes with respect to matters presented to stockholders, except as required by law.

*<u>Protective Provisions</u>*

No provision of the Series C Certificate of Designation may be amended, modified, or waived except by an instrument in writing executed by the Company and the holders of not less than two-thirds of the then total outstanding shares of Series C preferred stock (a "Supermajority Interest"). Certain provisions, including those relating to liquidation value and dividends, require the consent of each holder.

The consent of the holders of a Supermajority Interest is also required for certain actions, including amendments to the Certificate of Designation, incurrence of significant indebtedness outside the ordinary course of business, and other actions that may adversely affect the rights of the Series C preferred stock.

**COLLAB Z INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

*<u>Reissuance of Series C Preferred Stock</u>*

Any shares of Series C preferred stock converted or otherwise acquired by the Company shall be cancelled and retired as authorized and issued shares of capital stock of the Company and no such shares shall thereafter be reissued, sold, or transferred.

**Series X Preferred Stock**

Each share of Series X preferred stock is entitled to 1,000 votes. The holders of shares of Series X preferred stock are entitled to vote on all matters on which the Company's common stock shall be entitled to vote.

The holders of the Series X preferred stock are not entitled to dividends.

The holders of the Series X preferred stock shall not be entitled to any liquidation preference and the shares are not subject to redemption. Upon the event of liquidation, dissolution or winding up of the Company, voluntary or involuntary, the holders of Series X preferred stock would be entitled to receive the initial stated value of the Company's preferred stock.

The holders of the shares of Series X preferred stock shall not have any rights to convert such shares into, or exchange such shares for, shares of any other series or class of capital stock of the Company.

***Common Stock***

 

Each share of common stock entitles its holder to one vote per share on all matters to be voted or consented upon by the stockholders. Holders of our common stock are not entitled to cumulative voting rights with respect to the election of directors.

Holders of common stock are entitled to receive ratably such dividends or other distributions, if any, as may be declared by the Board out of funds legally available.

In the event of the liquidation, dissolution or winding up of our business, the holders of common stock are entitled to share ratably in the assets available for distribution after the payment of all of debts and other liabilities, subject to the prior rights of the holders of the Company's preferred stock.

 

*Collab CA Equity Transactions*

 

During the six months ended March 31, 2026 and 2025, the Company's related party made contributions of $20,000 and $16,000, respectively, all consisting of non-cash in-kind services.

The additions and contributions of Collab CA have been reflected in additional-paid in capital.

**COLLAB Z INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

*Collab Z Equity Transactions*

In March and April 2025, the Company acquired a 40% interest in various joint ventures through the issue of 60,000 shares for a total consideration of $120,000, representing the fair value of the investment at the acquisition date of $2.00 per share using a market participation exit approach under ASC 820 whereby management considered factors such as the expected timing and offering price of the anticipated IPO,, and the underlying price of other equity transactions.

In the event that the Company fails to consummate an initial public offering of its securities (the "Collab IPO") on or prior to December 31, 2026 (the "Collab IPO Deadline"):

(a) The joint venture partner shall have the option to:

(i) Surrender all securities of the Company purchased pursuant to an equity sale; and

(ii) Receive in exchange for such surrendered securities Collab's member interests.

(iii) The Company shall pay the joint venture partner an amount equal to the total capital contributions made by the joint venture partner as of the option exercise date minus the total distributions received by the joint venture partner as of the option exercise date.

(b) The Company shall have the option to:

(i) Surrender all its member's interests; and

(ii) Receive in exchange for such surrendered interests the securities of its member purchased pursuant to an equity sale.

(iii) The Company shall pay the joint venture partner an amount equal to the total capital contributions made by the joint venture partner as of the option exercise date minus the total distributions received by the joint venture partner as of the option exercise date.

(c) In the event that both the joint venture and the Company elect to exercise their respective options concurrently, the Company's right to exercise shall take precedence.

The shares issued pursuant to the Joint Venture Agreement were determined to contain certain redemption rights and subject to the occurrence of uncertain future events (the Collab IPO) pursuant to ASC 480, and therefore the value of $120,000 was included within temporary equity on the consolidated balance sheet.

The assumptions in estimating the fair value of common stock include the identification of comparable companies, observable multiples and appropriate discounts based on the facts and circumstances. The Company also considered the selling price of preferred financings relative to the convertible features of the underlying commons stock. These estimates are highly subjective. Management will be required to estimate fair value, until such point in time that the Company had observable transactions or its shares are quoted on an exchange.

**COLLAB Z INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 9 – STOCK-BASED COMPENSATION**

***Collab Z Inc. 2025 Equity Incentive Plan***

The 2025 Equity Incentive Plan (the "2025 Plan") permits the grant of awards, which provides for the grant of shares of stock options to employees, non-employee directors, and non-employee consultants. The number of shares authorized by the 2025 Plan was 763,708 shares as of March 31, 2026. The option exercise price generally may not be less than the underlying stock's fair market value at the date of the grant and generally have a term of ten years. The amounts granted each calendar year to an employee or non-employee is limited depending on the type of award. As of March 31, 2026, there were 60,734 shares available for grant under the 2025 Plan. Stock options granted under the 2025 Plan typically vest over a four-year period, with a one-year cliff as well as via specified milestones.

A summary of information related to stock options for the six months ended March 31, 2026 ais as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Options** | **Weighted Average Exercise<br> Price** | **Intrinsic Value** |
| Outstanding as of September 30, 2025 | 587975 | $2.08 | $1127211 |
| Granted | 115000 | 3.60 |  |
| Exercised |  |  |  |
| Forfeited | - |  |  |
| Outstanding as of March 31, 2026 | 702975 | $2.33 | $1173211 |
| Exercisable as of March 31, 2026 |  | $- | $- |
| Exercisable and expected to vest as of March 31, 2026 |  | $- | $- |

---

As of March 31, 2026, the weighted average duration to expiration of outstanding options was 9.12 years.

No stock-based compensation expense for stock options was recognized for the three and six months ended March 31, 2026 or 2025 as all granted options contain vesting conditions that are contingent upon an IPO. Total unrecognized compensation cost related to non-vested stock option awards amounted to $886,868 as of March 31, 2026, which will be recognized over a weighted average period of 1.98 years if the contingent vesting condition is met.

**COLLAB Z INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENT**S

**NOTE 10 – RELATED PARTY TRANSACTIONS**

*Revenue and Accounts Receivable*

 

During the three months ended March 31, 2026 and 2025, the Company earned revenues of $392,777 and $295,769, respectively, from related parties. During the six months ended March 31, 2026 and 2025, the Company earned revenues of $776,373 and $525,636, respectively, from related parties. As of March 31, 2026 and September 30, 2025, the Company had accounts receivable of $586,227 and $266,580, respectively, with related parties.

These related parties are primarily properties for which the Company provides various real estate services, including property management, construction and development management, renovation services and consulting services. To date, the Company has also provided or received certain advances from these properties outside the normal revenue generating services, as noted below.

 

*Due From / To Related Parties*

Due from related parties includes a) cash advances made and b) expenses and other costs paid for on behalf of related parties. Due to related parties includes cash advances received from various related parties. The Company enters into these transactions based on the current working capital needs of the Company and these related entities. These advances are unsecured, due on demand and non-interest bearing.

The following is a summary of due from / to related parties:

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2026** | **September 30,**<br>**2025** |
| **Due from related parties** |  |  |
| Customer properties with common control and management\* | $10443 | $5267 |
| Entities with common control and management\* | 410135 | 378310 |
| YRQ Irrevocable Trust | - | - |
| Due from related parties | $420578 | $383577 |
| **Due to related parties** |  |  |
| Customer properties with common control and management\* | $18001 | $4605 |
| Family member of former Chairman | 12000 | 12000 |
| Due to related parties | $30001 | $16605 |

---

\* The Company or its subsidiaries have no ownership in the customer properties or related party entities as per the amounts above. To date, Collab CA has shared common control and management with these entities.

**COLLAB Z INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

*YRQ Irrevocable Trust*

During the year ended September 30, 2025, the Company advanced $64,970 to YRQ Irrevocable Trust ("YRQ") in order to provide working capital, and YRQ repaid $2,324,820 to the Company in full settlement of all outstanding advances. These advances were unsecured, due on demand and non-interest bearing.

As of March 31, 2026, YRQ has paid the advance all in full and there was no balance outstanding.

In 2024, YRQ, as part of a control group that maintained control over Collab CA, became the sole member of Collab CA on August 21, 2024. Upon the Reorganization, YRQ received 4,550,500 shares of the Company's common stock and 5,000 shares of the Company's Series X preferred stock.

**NOTE 11 – COMMITMENTS AND CONTINGENCIES**

 

***Minimum Rental Guarantee***

 ****

The Company has a minimum rental guarantee for certain related party managed properties whereby the Company will pay the difference between the collected rent and the minimum rent guarantee. These guarantees require the Company to ensure a specified minimum gross revenue each month. Should the properties' gross revenues fall below these thresholds, the Company is required to compensate for the shortfall. The maximum potential amount of future payments under these guarantees is estimated based on historical occupancy rates and market trends to project potential future shortfalls. The minimum rent guarantee thresholds are calculated annually based on the local market occupancy rates and prevailing market rental rates. The minimum rent guarantee terms are stipulated to last for the duration of the property management agreements unless terminated by either party or amended by mutual agreement. These agreements can be terminated by either party by providing 30 days' notice.

As of the issuance date of these consolidated financial statements, the maximum potential rental guarantees were approximately $102,000 per month. Since entering into these terms, no shortfall payments have been incurred with the exception of a negligible amount by one property in the first and second quarters of 2026. The shortfall of this property is netted against the related accounts receivable from the property.

***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 matters will have a material adverse effect on its business, financial condition or results of operations.

NOTE 12 – SUBSEQUENT EVENTS

Subsequent to March 31, 2026, the Company issued an additional 62,000 shares of Series C convertible preferred stock to investors for aggregate proceeds of $248,000, which were deposited into the segregated escrow account maintained by the third-party transfer agent pursuant to the related securities purchase agreement.

**FINANCIAL STATEMENTS**

**COLLAB Z INC.**

**CONSOLIDATED FINANCIAL STATEMENTS**

**AS OF AND FOR THE YEARS ENDED SEPTEMBER 30, 2025 AND 2024**

**COLLAB Z INC.**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

---

| | |
|:---|:---|
|  | Pages |
| [Report of Independent Registered Public Accounting Firm (PCAOB ID #3501)](#f_001) | F-30 |
| [Consolidated Balance Sheets as of September 30, 2025 and 2024](#f_002) | F-31 |
| [Consolidated Statements of Operations for the years ended September 30, 2025 and 2024](#f_003) | F-32 |
| [Consolidated Statements of Stockholders' Equity for the years ended September 30, 2025 and 2024](#f_004) | F-33 |
| [Consolidated Statements of Cash Flows for the years ended September 30, 2025 and 2024](#f_005) | F-34 |
| [Notes to the Consolidated Financial Statements](#f_006) | F-35 |

---

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and

Stockholders of Collab Z Inc.

**Opinion on the Consolidated Financial Statements** 

We have audited the accompanying consolidated balance sheets of Collab Z Inc. and subsidiaries (collectively the "Company") as of September 30, 2025 and 2024, the related consolidated statements of operations, stockholders' equity, and cash flows for the years then ended, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2025 and 2024, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

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

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform an audit of internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

---

| |
|:---|
| */s/* dbb*mckennon* |
| Newport Beach, California |
| December 22, 2025 |
| We have served as the Company's auditor since 2024. |

---

**COLLAB Z INC.**

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **September 30,** |
|  | **2025** | **2024** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $161506 | $105034 |
| &nbsp;&nbsp;&nbsp;Accounts receivable - related parties | 266580 | 349576 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 86972 | 160000 |
| &nbsp;&nbsp;&nbsp;Due from related parties | 383577 | 2557033 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 13933 | 34264 |
| &nbsp;&nbsp;&nbsp;Subscription receivable | 150000 |  |
| &nbsp;&nbsp;&nbsp;Loan receivable | 552059 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 1614627 | 3205907 |
| &nbsp;&nbsp;&nbsp;Deferred offering costs | 619925 |  |
| &nbsp;&nbsp;&nbsp;Investment in joint venture | 57753 |  |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 198178 | 151111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2490483 | $3357018 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $376961 | $161136 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 35000 | 40000 |
| &nbsp;&nbsp;&nbsp;Due to related parties | 16605 | 1304916 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 428566 | 1506052 |
| Line of credit |  | 642854 |
| Future equity obligations | 25000 | 25000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 453566 | 2173906 |
| Commitments and contingencies (Note 11) |  |  |
| Common stock subject to redemption, $0.001 par value, 60,000 and 0 shares issued and outstanding as of September 30, 2025 and 2024, respectively | 120000 |  |
| Stockholders' equity: |  |  |
| Preferred stock, $0.001 par value, 10,000,000 shares authorized, 1,250,000 designated as Series B; 200,000 and 0 shares issued and outstanding as of September 30, 2025 and 2024, respectively (liquidation value of $800,000) | 200 |  |
| Preferred stock, $0.001 par value, 5,000 shares designated as Series X; 5,000 shares issued and outstanding as of both September 30, 2025 and 2024 | 5 | 5 |
| Common stock, $0.001 par value, 190,000,000 shares authorized, 5,091,391 shares issued and outstanding as of both September 30, 2025 and 2024 | 5092 | 5092 |
| Additional paid-in capital | 1144513 | 308713 |
| Retained earnings | 767107 | 869302 |
| &nbsp;&nbsp;&nbsp;Total stockholders' equity | 1916917 | 1183112 |
| &nbsp;&nbsp;&nbsp;Total liabilities, common stock subject to redemption and stockholders' equity | $2490483 | $3357018 |

---

See accompanying notes to these consolidated financial statements.

**COLLAB Z INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

---

| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **September 30,** | **September 30,** |
|  | **2025** | **2024** |
| Revenue - related parties | $893628 | $1163585 |
| Revenue | 484521 | 690000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 1378149 | 1853585 |
| Cost of revenue | 412783 | 219283 |
| Gross profit | 965366 | 1634302 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 77642 | 47874 |
| &nbsp;&nbsp;&nbsp;General and administrative | 1003035 | 622401 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 1080677 | 670275 |
| Income (loss) from operations | (115311) | 964027 |
| Other income (expense) |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 36685 |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (22352) | (13607) |
| &nbsp;&nbsp;&nbsp;Loss on joint ventures | (8647) |  |
| &nbsp;&nbsp;&nbsp;Other income | 7430 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | 13116 | (13607) |
| Provision for income taxes | - | - |
| Net income (loss) | $(102195) | $950420 |
| Weighted average common shares outstanding - basic and diluted | 5120898 | 4571247 |
| Net income (loss) per common share - basic and diluted | $(0.02) | $0.21 |

---

See accompanying notes to these consolidated financial statements.

**COLLAB Z INC.**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | | | | | | |
|  | **Subject to** | **Subject to** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | | | | | |
|  | **Redemption** | **Redemption** | **Series B** | **Series B** | **Series X** | **Series X** | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** |<br>**Additional**<br>**Paid-in**<br>**Capital** | Retained<br>**Earnings /**<br>**(Accumulated**<br>**Deficit)** |<br>**Total**<br>**Stockholders'**<br>**Equity** |
| **Balances at September 30, 2023** |  | $- |  | $- | 5000 | $5 | 4550500 | $4551 | $417398 | $(81118) | $340836 |
| Shares issued for services |  |  |  |  |  |  | 540891 | 541 | 140091 |  | 140632 |
| Contributions |  |  |  |  |  |  |  |  | 192435 |  | 192435 |
| Distributions |  |  |  |  |  |  |  |  | (441211) |  | (441211) |
| Net income | - | - | - | - | - | - | - | - | - | 950420 | 950420 |
| **Balances at September 30, 2024** |  |  |  |  | 5000 | 5 | 5091391 | 5092 | 308713 | 869302 | 1183112 |
| Contributions |  |  |  |  |  |  |  |  | 36000 |  | 36000 |
| Shares issued pursuant to investment in joint venture | 60000 | 120000 |  |  |  |  |  |  |  |  |  |
| Issuance of preferred stock |  |  | 200000 | 200 |  |  |  |  | 799800 |  | 800000 |
| Net loss | - | - | - | - | - | - | - | - | - | (102195) | (102195) |
| **Balances at September 30, 2025** | 60000 | $120000 | 200000 | $200 | 5000 | $5 | 5091391 | $5092 | $1144513 | $767107 | $1916917 |

---

See accompanying notes to these consolidated financial statements.

**COLLAB Z INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **September 30,** | **September 30,** |
|  | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| Net income (loss) | $(102195) | $950420 |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Amortization | 53333 | 8889 |
| &nbsp;&nbsp;&nbsp;Shares issued for services |  | 140632 |
| &nbsp;&nbsp;&nbsp;Loss on joint ventures | 8647 |  |
| &nbsp;&nbsp;&nbsp;Non-cash equity contributions | 36000 | 24000 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable - related parties | 82996 | 282328 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 73028 | (160000) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 20331 | (34264) |
| &nbsp;&nbsp;&nbsp;Interest receivable | (36684) |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (59175) | 65915 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | (5000) | (20000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 71281 | 1257920 |
| **Cash flows from investing activities:** |  |  |
| Due from related parties, net of repayment | 2173456 | (2459677) |
| Capitalized software development | (100400) | (160000) |
| Distributions from joint ventures | 53600 |  |
| Issuance of loan receivable | (1470000) |  |
| Repayments of loan receivable | 954625 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | 1611281 | (2619677) |
| **Cash flows from financing activities:** |  |  |
| Due to related parties, net of repayment | (1288311) | 1080800 |
| Proceeds from line of credit | 1300000 | 2442854 |
| Repayments of line of credit | (1942854) | (1800000) |
| Proceeds from issuance of preferred stock | 650000 |  |
| Deferred offering costs | (344925) |  |
| Contributions |  | 168435 |
| Distributions | - | (441211) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | (1626090) | 1450878 |
| **Net change in cash** | 56472 | 89121 |
| Cash at beginning of year | 105034 | 15913 |
| Cash at end of year | $161506 | $105034 |
| **Supplemental disclosure of cash flow information:** |  |  |
| Cash paid for income taxes | $- | $- |
| Cash paid for interest | $22352 | $13624 |
| **Supplemental disclosure of non-cash investing and financing activities:** |  |  |
| Shares issued pursuant to investment in joint venture | $120000 | $- |
| Deferred offering costs included in accrued expenses | $275000 | $- |
| Subscription receivable | $150000 | $- |

---

See accompanying notes to these consolidated financial statements.

**COLLAB Z INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

**NOTE 1 – NATURE OF OPERATIONS**

Collab Z Inc. (the "Company") was formed on May 11, 2024 in the State of Nevada for the purpose of reorganizing and becoming the holding company for Collab CA LLC (Collab CA"), a California limited liability company.

In December 2024, Collab CA became a direct, wholly owned subsidiary of the Company as a result of the closing of the Reorganization Agreement and Plan of Share Exchange dated December 30, 2024 (the "Reorganization Agreement" or "Reorganization"). Pursuant to the Reorganization Agreement, the sole member of Collab CA exchanged 100% of its member interests for 4,550,500 shares of the Company's common stock. As a result, the member of Collab CA became a shareholder of the Company and Collab CA became a direct, wholly owned subsidiary of the Company.

The Reorganization is being accounted for as a reorganization of entities under common control by a control group. The accompanying financial statements have been presented to retroactively present the effect of the Reorganization. See Note 3 for further detail.

Collab CA is the main operating subsidiary engaged in various real estate services, including property management, construction and renovation management, as well EB-5 immigration investor services. Collab Z Inc., and its subsidiary, Collab CA, are at the forefront of the PropTech industry. The Company aims to transform property management by integrating community involvement and artificial intelligence to directly connect tenants with management tasks, eliminating intermediaries and enhancing efficiency.

The Company's headquarters are located in Berkeley, California.

**NOTE 2 – GOING CONCERN**

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company had $161,506 in cash as of September 30, 2025, and $650,157 in amounts due from related parties. The Company is heavily reliant on related parties as its primary revenue and cash flow sources and has historically generated revenues from sources that may not be recurring.

The Company is early-stage, and expects to incur significant costs to expand its operations and conduct its business plan, which may result in future losses if it cannot effectively market its products and achieve market acceptance.

*Management's Plans* 

We believes substantial doubt has been alleviated for a period of at least 12 months from the date the financial statements are issued based on the following:

The net due to and from related parties' balances at September 30, 2025, which are expected to be fully collected and paid, provide for a net positive effect to cash of approximately $0.6 million. In addition, third party receivables and the note receivable are expected to be paid and create cash inflows of $0.7 million in aggregate. These funds are expected to provide the Company with operating capital sufficient to cover basic operations while the Company makes efforts to increase revenue and maintain cost management to make operations more profitable and sustainable. Lastly, the Company is seeking to raise capital via an equity offering. In the event the Company does not complete an offering, the Company expects to seek additional funding through private equity offering, debt and/or related party financings to provide additional operating capital. The Company may not be able to obtain financing on acceptable terms, or at all.

**COLLAB Z INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

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

***Basis of Presentation***

The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The financial statements included herein comprise the consolidated results of the Company and its subsidiaries and all intercompany transactions have been eliminated.

The consolidated financial statements represent a) the historical operations of Collab CA, which was formed on November 25, 2019, b) the historical operations of Collab Living LLC ("Collab Living"), a Delaware limited liability company formed on May 15, 2023, c) the initial capital structure of Collab Z, which was completed upon the Reorganization (see Note 1), and d) the results of Collab Z, which solely consisted of the issuance of shares (see Note 8).

In accordance with ASC 805-50-15-6, the Company determined that the share exchange was a reorganization of entities under common control. Collab Z and Collab CA maintained common control for the entire period for which the financial statements are presented through the Reorganization. The Company concluded that the entities were under common control via common ownership and common management. Specifically, the founder and former managing member of Collab CA is the founder and former Chairman of the Company and along with the YRQ Trust for which the trustees and beneficiaries are immediate family members, make up a control group that held voting and management control of Collab CA and the Company prior to and after the Reorganization

Therefore, in accordance with ASC 250-10-45 and ASC 805-50-45, the financial statements require retrospective consolidation of the entities for all periods presented. The financial statements for the years ended September 30, 2025 and 2024 are prepared on a consolidated basis which includes Collab CA and Collab Living.

***Principles of Consolidation***

 

The Company evaluates its relationships with other entities to identify whether they are variable interest entities ("VIE") as defined by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 810, Consolidation ("ASC 810"), and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is consolidated. The Company evaluated whether it was the primary beneficiary with its various related party entities it transacts with, and determined it is not the primary beneficiary of any entities.

Collab Living is 50% owned by Collab CA, and it was determined that Collab CA was the primary beneficiary in 2025 and 2024. Per ASC 810-10-50, the Company concluded that Collab CA was the primary beneficiary via its obligation to absorb losses (i.e. non-substantive voting rights) and its power to direct activities that most significantly impact Collab Living's economic performance. Historically, Collab CA has funded the operations of Collab Living and Collab CA's management has directed all Living's activities.

In accordance with ASC 810-10-45-25, Collab Living's results are consolidated within the Company's financial statements. The separate assets, liabilities and results of operations of Collab Living are immaterial. Furthermore, the balance of non-controlling interests was nominal as of September 30, 2025 and 2024.

***Use of Estimates***

The preparation of the Company's consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, valuation of common stock and related stock-based compensation. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.

 ****

**COLLAB Z INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

 ****

***Cash and Cash Equivalents***

The Company considers all highly liquid operating instruments with an original maturity of three months or less to be cash equivalents.

***Concentration of Credit Risk***

The Company's cash and cash equivalents are held at major financial institutions. There is a concentration of credit risk related to certain account balances in excess of the Federal Deposit Insurance Corporation insurance limit of $250,000 per account. The Company regularly monitors the financial stability of these financial institutions. At times the Company may hold amounts in excess of insured amounts.

***Deferred Offering Costs***

The Company complies with the requirements of Accounting Standards Codification ("ASC") 340-10-S99-1 with regards to offering costs. Prior to the completion of an offering, offering costs are capitalized. The deferred offering costs are charged to additional paid-in capital or as a discount to debt, as applicable, upon the completion of an offering or to expense if the offering is not completed. As of September 30, 2025, the Company has $619,925 in capitalized deferred offering costs.

***Investment in Joint Ventures***

In March and April 2025, the Company entered into five separate limited liability company agreements (collectively, the "Joint Venture Agreements") with five unaffiliated entities to form joint venture companies in Nevada, wherein the Company holds a 40% ownership stake in each joint venture company. For four of the five joint venture agreements, the Company issued 10,000 shares of common stock for each joint venture entity, which were valued at $20,000 based on a fair value of $2.00 per share, as part of the capital funding for the joint venture. For the remaining agreement, the Company issued 20,000 shares of common stock for the joint venture entity, which were valued at $40,000 based on a fair value of $2.00 per share, as part of the capital funding for the joint venture. Each joint venture was established to pursue property management and related real estate activities in specific local markets using our community-based property management platform. These entities operate independently and are owned jointly by us and our respective joint venture partners. As of September 30, 2025, all of the five joint venture agreements were in effect.

The Company holds investments in multiple joint ventures, all of which are accounted for under the equity method in accordance with ASC 323, *Investments—Equity Method and Joint Ventures*. The Company exercises significant influence, but does not have a controlling financial interest, in each of these joint ventures. Accordingly, the investments are initially recorded at cost and subsequently adjusted for the Company's proportionate share of each joint venture's net income or loss and other comprehensive income. The carrying amounts of these investments are evaluated for impairment in accordance with ASC 323-10-35 when events or changes in circumstances indicate that a decline in value may have occurred.

The Company evaluated the joint venture agreement under ASC 810 and determined it was not the primary beneficiary. As such, the Company accounted for the investment under ASC 323 as noted above.

As of September 30, 2025, the carrying value of the investment was $57,753, consisting of the $120,000 initial investment, offset by $53,600 in distributions from the joint venture and less $8,647 representing the Company's proportionate share of the joint venture's net loss, which was recognized within other income (expense) in the consolidated statements of operations.

**COLLAB Z INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

***Fair Value Measurements***

 

Certain assets and liabilities of the Company are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

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

● Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

● Level 3—Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

The carrying values of the Company's assets and liabilities approximate their fair values. See Note 5 for fair value measurement disclosures.

***Related Parties***

Related parties are any entities or individuals that, through employment, ownership or other means, possess the ability to direct or cause the direction of the management and policies of the Company. The Company discloses related party transactions that are outside of normal compensatory agreements, such as salaries. The Company follows ASC 850, *Related Party Disclosures*, for the identification of related parties and disclosure of related party transactions.

***Accounts Receivable***

The Company has accounts receivable with both related and third-party customers. Accounts receivable is recorded at the invoiced amount or earned fees pursuant to the agreement, are non-interest bearing and are stated at the historical carrying amount net of write-offs and allowances for uncollectible accounts. The Company establishes an allowance for uncollectible accounts based on historical experience and any specific customer collection issues that the Company has identified. There was no allowance for uncollectible accounts at September 30, 2025 and 2024.

***Capitalized Software Development***

 

The Company capitalizes certain costs related to the development of its property management system pursuant to ASC 350-40. Costs incurred during the development phase are capitalized only when it is deemed probable that the development will result in new or additional functionality. The Company determined that its customization efforts to existing software significantly enhanced functionality, involved substantial development effort and integrated with existing systems. As such, the Company capitalized these costs during the development phase. Costs associated with the preliminary project planning phase and the post-implementation phase are expensed as incurred. The capitalized development costs are amortized on a straight-line basis over the estimated useful life of the asset.

The system, which is expected to be the backbone of the Company's property management service, was developed between November 2023 and August 2024, at which point it was ready for use. The Company began amortizing the costs over a three-year period starting in August 2024. Furthermore, in 2025 the Company began capitalizing another internally developed application. As of September 30, 2025, the application was not yet placed in service and therefore amortization has not commenced. See Note 6.

 ****

**COLLAB Z INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

 ****

***Impairment of Long-Lived Assets***

The Company reviews its long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the expected cash flows, undiscounted, is less than the carrying amount of the asset, an impairment loss is recognized as the amount by which the carrying amount of the asset exceeds its fair value. There were no impairments deemed necessary during the periods presented.

 ****

***Revenue Recognition***

The Company recognizes revenue from services in accordance with FASB ASC Topic 606, *Revenue from Contracts with Customers* ("ASC 606"). Under ASC 606, the Company recognizes revenue when or as the Company's performance obligations are satisfied by transferring control of the promised services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps as prescribed by ASC 606:

(i) identify the contract(s) with a customer;

(ii) identify the performance obligations in the contract;

(iii) determine the transaction price;

(iv) allocate the transaction price to the performance obligations in the contract; and

(v) recognize revenue when (or as) the entity satisfies performance obligations.

The Company only applies the five-step model to contracts when it is probable that it will collect substantially all the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determine those that are performance obligations and assess whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company has applied ASC 606 on a portfolio basis. The Company has elected the practical expedients, allowing the recognition of incremental costs of obtaining a contract as an expense when incurred, and not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between customer payment and the transfer of goods or services is expected to be one year or less.

The Company generates revenue through the following streams:

*Property Management*

 

The Company provides property management services for rental properties that include various elements based on the underlying contractual agreement. The Company earns a fixed percentage of monthly lease income. This revenue is recognized on an ongoing, monthly basis. The Company earns additional fees based on a fixed percentage of property-related expenses such as repairs and maintenance at the time the underlying costs are incurred. The Company, at times, is also eligible to earn commissions on the first month of a new lease agreement. Certain managed properties include a profit share arrangement based on guaranteed rental income whereby the Company shares in the excess rental income over the guaranteed amounts. No losses have been incurred based on these guarantees. The Company recognizes this revenue at the point in time the excess rental income is known. The Company recognizes this revenue monthly, when the profit share information becomes known.

*Development and Construction Management*

 

The Company provides services consisting of the oversight of property development and construction projects, including budget monitoring and timeline management. Development fees are recognized on an ongoing monthly basis through the completion of the service period.

*Procurement*

 

The Company facilitates procurement of materials and supplies for construction projects as well as provides related services for design of procured goods. Procurement fees related to ordered goods are recognized at a point in time upon the completion of the procurement service, which is shipment of the related materials. Revenue for design services are recognized at point in time when the related services are complete.

**COLLAB Z INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

*Renovation Management*

 

Renovation management services include assisting in the acquisition, renovation, and disposition of properties. Renovation fees are recognized on an ongoing, monthly basis through the completion of the service period, which is based on the time elapsed of the renovation project. The Company also earns renovation service fees, which are recognized over time as the project progresses based on the actual costs incurred of the underlying renovation project. Acquisition and disposition fees are recognized at a point in time after the acquisition of the property.

*EB-5 Immigration Investor Services*

The Company identifies EB-5 immigration investment projects and assists investors with project identification, assistance and support during the project application process. Fees are recognized at a point in time upon the fulfillment of the EB-5 service obligations, which is when the EB-5 application package has been submitted. Payments are typically billed in two tranches, and any deferred revenue is recognized once performance obligations are met.

*Consulting Services*

The Company provides other real estate consulting services to both related and third parties that are defined by respective service agreements. Consulting services may include terms whereby there are a set of deliverables required for which revenue will be recognized over time as the deliverables are satisfied. Each contract is assessed for performance obligations. There is generally no right of return or refund related to these services.

During the year ended September 30, 2025, the Company earned $484,521 in consulting and property management advisory services to third parties, which were recognized over time as the services were performed. During the year ended September 30, 2025, the Company maintained other contracts related to EB5 and project funding consulting whereby services are rendered over a contractual period. Payments under these services are due at the beginning of each month for the upcoming months' service period.

Each revenue source above is a different type of service being performed, and distinct from the other performance obligations.

*Disaggregation of Revenue*

A disaggregation of revenue for the years ended September 30, 2025 and 2024 is as follows:

---

| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **September 30,** | **September 30,** |
|  | **2025** | **2024** |
| Property management | $547304 | $579083 |
| Development and construction management | 146963 | 94500 |
| Procurement | 48708 | 237188 |
| Renovation management |  | 252814 |
| Consulting services | 150653 | - |
| &nbsp;&nbsp;&nbsp;Revenue - related parties | 893628 | 1163585 |
| EB-5 immigrant investor services |  | 690000 |
| Consulting services | 425000 |  |
| Property management | 59521 | - |
| &nbsp;&nbsp;&nbsp;Revenue | 484521 | 690000 |
| &nbsp;&nbsp;&nbsp;Total revenue | $1378149 | $1853585 |

---

Deferred revenue primarily represents customer billings on EB-5 contracts for services not yet rendered or procurement services where shipment of goods has not occurred. EB-5 services generally require several months between the time of agreement with the customer and the completion of performance obligations. As of September 30, 2025, and 2024, the Company has deferred revenue of $35,000 and $40,000, respectively. The Company expects to recognize the deferred revenue as of September 30, 2025 within one year.

**COLLAB Z INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

The following table summarizes the deferred revenue balance as of September 30, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **September 30,** |
|  | **2025** | **2024** |
| Balance, beginning | $40000 | $60000 |
| New service contracts | 35000 | 670000 |
| Revenue recognized | (40000) | (690000) |
| Balance, ending | $35000 | $40000 |

---

***Cost of Revenue***

 ****

Cost of revenue includes operations personnel supporting the Company's real estate services, specifically those personnel who work directly on property management as well as development, construction, renovation and EB-5 projects. Cost of revenue also includes software costs incurred to maintain the Company's property management system, as well as amortization of capitalized software costs.

 ****

***Sales And Marketing***

Sales and marketing include advertising and marketing costs, which are expensed as incurred, as well as business development personnel. Advertising costs were $3,965 and $7,859 for the years ended September 30, 2025 and 2024, respectively.

***General and Administrative Expenses***

 

Selling, general and administrative expenses consist primarily of compensation and personnel costs, professional services and information technology.

***Concentrations***

 

During the years ended September 30, 2025 and 2024, 65% and 63% of the Company's revenues were with related party properties under common control and/or management. During the year ended September 30, 2025, two related party properties accounted for an aggregate of 32% of the Company's total revenues. During the year ended September 30, 2024, one related party property accounted for 21% of the Company's total revenues.

As of September 30, 2025 and 2024, 75% and 69% of the Company's accounts receivable were with related party properties under common control and/or management. As of September 30, 2025, one related party properties accounted for 52% of the Company's total receivables. As of September 30, 2024, four related party properties accounted for 63% of the Company's total receivables, and EB-5 customers accounted for 31% of total receivables.

To date the Company has been highly dependent on related party customers as its primary source of revenue and cash flows from operations. The Company may be negatively affected by the loss of one of these customers, or a change in the related party relationship.

 

***Future Equity Obligations***

The Company has issued Simple Agreements for Future Equity ("SAFEs") in exchange for cash financing. These amounts are classified as future equity obligations, which are long-term liabilities on the consolidated balance sheets. The Company has accounted for its SAFE investments as liability derivatives for which the Company will record changes to fair value through earnings.

***Common Stock Subject to Redemption***

The Company accounts for its shares of common stock subject to possible redemption in accordance with the guidance enumerated in ASC 480. Shares subject to mandatory redemption are classified as a liability instrument and is measured at fair value. Conditionally redeemable common shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company's control are classified as temporary equity. At all other times, common shares classified as stockholders' equity. The shares of common stock issued pursuant to the Joint Venture Agreements (see above and Note 8) feature certain redemption rights subject to the occurrence of uncertain future events, including the Company's contemplated future public offering, and therefore are classified within temporary or mezzanine equity.

**COLLAB Z INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

***Stock-Based Compensation***

The Company accounts for stock-based compensation in accordance with ASC 718, *Compensation – Stock Compensation*. The Company measures all stock-based awards granted to employees, directors and non-employee consultants based on the fair value on the date of the grant and recognizes compensation expense for those awards over the requisite service period, which is generally the vesting period of the respective award. For awards with service-based vesting conditions, the Company records the expense for using the straight-line method. For awards with performance-based vesting conditions, the Company records the expense if and when the Company concludes that it is probable that the performance condition will be achieved.

The Company classifies stock-based compensation expense in its statement of operations in the same manner in which the award recipient's costs are classified.

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.

***Subscription Receivable***

The Company records stock issuances at the effective date. If the subscription is not funded upon issuance, the Company records a subscription receivable as an asset on a balance sheet. When subscription receivables are not received prior to the issuance of financial statements at a reporting date in satisfaction of the requirements under FASB ASC 505-10-45-2, the subscription is reclassified as a contra account to stockholders' equity on the balance sheet.

 ****

***Net Income (Loss) per Share***

 

Net earnings per share is computed by dividing net income 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 of September 30, 2025 and 2024, there were an indeterminable number of shares that were potentially dilutive based on the Company's outstanding future equity obligations for which conversion is contingent on a future event (see Note 7). As of September 30, 2025, potentially dilutive securities included Series B Preferred Stock (see Note 8) and options outstanding which were considered anti-dilutive (see Note 9).

***Segment Reporting***

 ****

In accordance with ASC 280, Segment Reporting ("ASC 280"), we identify our operating segments according to how our business activities are managed and evaluated. ASC 280 establishes standards for companies to report financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company's chief operating decision maker ("CODM"), or group, in deciding how to allocate resources and assess performance.

The CODM has been identified as the Chief Executive Officer, who reviews the operating results for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that the Company only has one operating and reportable segment.

The key measures of segment profit or loss reviewed by our CODM are consolidated net income or loss. These metrics are reviewed and monitored by the CODM to manage and forecast cash. The CODM also reviews operating costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget.

**COLLAB Z INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

***Recently Issued and Adopted Accounting Pronouncements***

In November 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07 *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures*. The new guidance requires enhanced disclosure of significant expenses that are regularly reported to the chief operating decision maker and the nature of segment expense information used to manage operations. The new guidance is effective for all public companies for annual reporting periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company adopted ASU 2023-07 on January 1, 2025 with no significant effect on the financial statements.

Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying unaudited condensed financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.

 

***Income Taxes***

 ****

Prior to the reorganization as described in Note 1, the Company' historical operations were contained within a limited liability company. Accordingly, under the Internal Revenue Code, all taxable income or loss flowed through to its members. Therefore, no provision for income tax had been recorded in the accompanying financial statements for the years ended September 30, 2024. Income from the Company was reported and taxed to the members on their individual tax returns.

Upon reorganization to a corporation, 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 not be realized. We assess our income tax positions and record tax benefits for all years subject to examination based upon our 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 will be 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's policy is to record interest and penalties associated with unrecognized tax benefits as additional income taxes in the statement of comprehensive income. As of September 30, 2025, the Company had no unrecognized tax benefits and accordingly, the Company did not recognize any interest or penalties during 2024 or 2025 related to unrecognized tax benefits.

The Company is in its first full year of operations as a corporation and, accordingly, has not yet filed any U.S. federal or state income tax returns. All income tax returns to be filed will be subject to examination by the relevant taxing authorities.

**COLLAB Z INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

**NOTE 4 – LOAN RECEIVABLE**

In November 2024, the Company loaned $170,000 to a third party. The loan is unsecured, payable on demand and bears interest at a rate of 6.5% per annum commencing December 24, 2024.

In December 2024, the Company loaned an additional $1,300,000 to the same third party. The loan is unsecured, due on February 20, 2025, and bore interest at a rate of 8% per annum commencing January 4, 2025. In January 2025, the parties amended the agreement for the loan to be payable on demand and an interest rate of 6.5% per annum.

During the year ended September 30, 2025, the Company recognized interest income of $36,685 on the respective loans, which is included in loan receivable in the accompanying statement of operations.

During the year ended September 30, 2025, the Company received repayments totaling $954,625. As of September 30, 2025 and 2024, the outstanding loan receivable balance was $552,059 and $0, respectively.

**NOTE 5 – FAIR VALUE MEASUREMENTS**

The Company's financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements<br> as of September 30, 2025 Using:** | **Fair Value Measurements<br> as of September 30, 2025 Using:** | **Fair Value Measurements<br> as of September 30, 2025 Using:** | **Fair Value Measurements<br> as of September 30, 2025 Using:** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Liabilities: |  |  |  |  |
| Future equity obligations | $&nbsp;&nbsp;&nbsp;&nbsp; - | $&nbsp;&nbsp;&nbsp;&nbsp; - | $25000 | $25000 |
|  | $- | $- | $25000 | $25000 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements<br> as of September 30, 2024 Using:** | **Fair Value Measurements<br> as of September 30, 2024 Using:** | **Fair Value Measurements<br> as of September 30, 2024 Using:** | **Fair Value Measurements<br> as of September 30, 2024 Using:** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Liabilities: |  |  |  |  |
| Future equity obligations | $&nbsp;&nbsp;&nbsp;&nbsp; - | $&nbsp;&nbsp;&nbsp;&nbsp; - | $25000 | $25000 |
|  | $- | $- | $25000 | $25000 |

---

The Company measures the simple agreements for future equity at fair value based on significant inputs not observable in the market, which causes it to be classified as a Level 3 measurement within the fair value hierarchy. The valuation of the future equity obligations uses assumptions and estimates the Company believes would be made by a market participant in making the same valuation. The Company assesses these assumptions and estimates on an on-going basis as additional data impacting the assumptions and estimates are obtained. Changes in the fair value of the simple agreements for future equity related to updated assumptions and estimates are recognized within the statements of operations.

The simple agreements for future equity may change significantly as additional data is obtained, impacting the Company's assumptions regarding probabilities of outcomes used to estimate the fair value of the liability. In evaluating this information, considerable judgment is required to interpret the data used to develop the assumptions and estimates. The estimates of fair value may not be indicative of the amounts that could be realized in a current market exchange. Accordingly, the use of different market assumptions and/or different valuation techniques may have a material effect on the estimated fair value amounts, and such changes could materially impact the Company's results of operations in future periods.

The Company utilized a probability-weighted average approach based on the estimated market value of the underlying securities and the potential settlement outcomes of the simple agreements for future equity, including a liquidity event or future equity financing as well as other settlement alternatives. Both the market value of the underlying securities and the probability of the settlement outcomes include unobservable Level 3 inputs.

As of September 30, 2025 and 2024, the Company assumed an 50% probability of a liquidity event as the primary ultimate settlement outcome of the future equity obligations. Based on the Company's estimates regarding the probability of the triggering events and the Company's valuation, management determined the fair value of the SAFEs were representative of the face value as of September 30, 2025 and 2024.

**COLLAB Z INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

The following table presents changes in future equity obligations for the years ended September 30, 2025 and 2024:

---

| | |
|:---|:---|
|  | **Future equity**<br>**obligations** |
| Outstanding as of September 30, 2023 | $25000 |
| Change in fair value | - |
| Outstanding as of September 30, 2024 | 25000 |
| Change in fair value | - |
| Outstanding as of September 30, 2025 | $25000 |

---

**NOTE 6 – INTANGIBLE ASSETS, NET**

As of September 30, 2025 and 2024, intangible assets, net consisted of:

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **September 30,** |
|  | **2025** | **2024** |
| Software development - property management system | $160000 | $160000 |
| Internally developed application | 100400 |  |
| Less: Accumulated amortization | (62222) | (8889) |
| Intangible assets, net | $198178 | $151111 |

---

Amortization expense for the years ended September 30, 2025 and 2024, was $53,333 and $8,889, respectively, which is included in costs of revenues in the consolidated statements of operations.

As of September 30, 2025, the internally developed application was not yet placed in service and therefore amortization has not commenced.

Future amortization expense for software placed in service is as follows:

---

| | |
|:---|:---|
| **Year ending September 30,** | |
| 2026 | $53333 |
| 2027 | 44445 |
|  | $97778 |

---

**NOTE 7 – DEBT**

*Revolving Line of Credit*

 

On March 14, 2024, the Company entered into a revolving line of credit agreement with East West Bank for a principal amount of up to $2,000,000. The loan matured on March 14, 2026, was secured by an assignment of a deposit account held by Collab CA's former member, YRQ Irrevocable Trust, and was intended exclusively for business operations. The loan had a variable interest rate based on the interest rate of the collateral's certificate of deposit plus 1.5%. The initial rate was set at 5.905%. The loan required monthly interest payments, and full repayment of principal and accrued interest due at maturity.

During the year ended September 30, 2025, the Company borrowed an aggregate of $1,300,000, which was used to provide a loan to a third party (see Note 4). On February 4, 2025, the Company paid off the line of credit with the funds from the collection of the Company's due from related parties and receivables. As a result, the line of credit was closed prior to its contractual maturity date, and no amounts were outstanding or available under the facility as of September 30, 2025.

 

*Future Equity Obligations*

In April 2023, the Company entered into a SAFE agreement for proceeds of $25,000. The SAFE has a valuation cap of $50,000,000 and a discount of 25%, which will be applied to the valuation of the Company at the time of the triggering event in order to calculate the price per share for the investor.

The SAFE will convert into equity upon the occurrence of a future qualified financing round of at least $10,000,000 or another triggering event, including the event of a merger, acquisition or initial public offering ("IPO").

As of September 30, 2025 and 2024, the fair value of SAFEs was $25,000 and $25,000, respectively. See Note 5 for fair value disclosures.

**COLLAB Z INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

**NOTE 8 – STOCKHOLDERS' EQUITY**

The total number of shares of stock which the Company is authorized to issue is 200,000,000 shares, consisting of 190,000,000 shares of common stock, $0.001 par value per share, and 10,000,000 shares of preferred stock, $0.001 par value per share. Of the 10,000,000 authorized shares of preferred stock, 5,000 shares were designated as Series X preferred stock and 1,250,000 shares were designated as Series B preferred stock.

In October 2024, the Company issued 5,000 shares of Series X preferred stock to Collab CA's sole member. In December 2024, pursuant to the Reorganization Agreement, the member of Collab CA exchanged 100% of its membership interests for 4,550,500 shares of the Company's common stock. Both the issuance of Series X preferred stock and the issuance of common shares pursuant to the share exchange were conducted with YRQ Irrevocable Trust ("YRQ"), Collab CA's sole member. These series of transactions are considered together as part of the Reorganization.

 

*Series B Preferred Stock*

 

Pursuant to a Series B Certificate of Designation filed with the Secretary of State of Nevada on June 5, 2025, the Company is authorized to issue up to 1,250,000 shares of Series B preferred stock with a stated and liquidation value of $4.00 per share.

During the year ended September 30, 2025, the Company issued an aggregate of 200,000 shares of Series B preferred stock to accredited investors for a total purchase price of $800,000. Of this amount, $150,000 was collected in October 2025. Accordingly, the $150,000 was recorded as a subscription receivable and presented as a current asset on the balance sheet as of September 30, 2025.

The Series B preferred stock has the following rights and preferences:

*<u>Automatic Conversion</u>*

Pursuant to the Series B Certificate of Designation, in connection with, and on the closing of a Qualified Public Offering, Qualified Financing or Qualified Disposition, all of the outstanding shares of Series B preferred stock shall automatically convert along with the aggregate accrued or accumulated and unpaid dividends thereon into an aggregate number of shares of common stock as is determined by dividing the stated value per share along with the aggregate accrued or accumulated and unpaid dividends on the outstanding shares of Series B preferred stock by the Conversion Price, which is 70% of the qualified public offering price, qualified financing offering price or qualified disposition price.

Pursuant to the Series B Certificate of Designation, in connection with, and on the closing of a Qualified Public Offering (public offering resulting in listing on a national exchange), Qualified Financing (equity financing greater than $3,000,000) or Qualified Disposition, all of the outstanding shares of Series B preferred stock shall automatically convert along with the aggregate accrued or accumulated and unpaid dividends thereon into an aggregate number of shares of common stock as is determined by dividing the stated value per share along with the aggregate accrued or accumulated and unpaid dividends on the outstanding shares of Series B preferred stock by the Conversion Price.

*<u>Accrual and Payment of Dividends</u>*

In the event the Qualified Public Offering is not consummated by December 31, 2025, dividends on such share of Series B preferred stock shall accrue, whether or not declared by the Board and whether or not there are funds legally available for the payment of dividends, at the rate of 8% per annum on the sum of the Liquidation Value which is $4.00 per share of Series B preferred stock (as adjusted for any stock splits, stock dividends, recapitalizations, or similar transaction with respect to the Series B preferred stock). All accrued dividends on any share shall be paid in cash only when, as and if declared by the Board out of funds legally available therefor or upon a Liquidation of the Series B preferred stock; provided, that to the extent not paid on the last day of March, June, September, and December of each calendar year (each such date, a "Dividend Payment Date"), all accrued dividends on any share shall accumulate and compound on the applicable Dividend Payment Date whether or not declared by the Board and shall remain accumulated, compounding dividends until paid pursuant hereto or converted pursuant to the terms herein. All accrued and accumulated dividends on the shares shall be prior and in preference to any dividend on any junior securities and shall be fully declared and paid before any dividends are declared and paid, or any other distributions or redemptions are made, on any junior securities, other than to (a) declare or pay any dividend or distribution payable on the common stock in shares of common stock or (b) repurchase common stock held by employees or consultants of the Company upon the termination of their employment or services pursuant to agreements providing for such repurchase.

**COLLAB Z INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

*<u>Liquidation</u>*

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company (a "Liquidation"), the holders of shares of Series B preferred stock then outstanding shall be entitled to be paid out of the assets of the Company available for distribution to its stockholders, before any payment shall be made to the holders of junior securities by reason of their ownership thereof, an amount in cash equal to the aggregate Liquidation Value of all shares held by such holder, plus all unpaid accrued and accumulated dividends on all such shares (whether or not declared).

In addition to and after payment in full of all preferential amounts required to be paid to the holders of Series B preferred stock upon a Liquidation, the holders of shares of Series B preferred stock then outstanding shall be entitled to participate with the holders of shares of junior securities then outstanding, pro rata as a single class based on the number of outstanding shares of Junior Securities on an as-converted basis held by each holder as of immediately prior to the Liquidation, in the distribution of all the remaining assets and funds of the Company available for distribution to its stockholders.

If upon any Liquidation the remaining assets of the Company available for distribution to its stockholders shall be insufficient to pay the holders of the shares of Series B preferred stock the full preferential amount to which they are entitled, (i) the holders of the shares shall share ratably in any distribution of the remaining assets and funds of the Company in proportion to the respective full preferential amounts which would otherwise be payable in respect of the Series B preferred stock in the aggregate upon such Liquidation if all amounts payable on or with respect to such shares were paid in full, and (ii) the Company shall not make or agree to make any payments to the holders of Junior Securities.

*<u>Voting</u>*

The Series B preferred stock are not entitled to any votes with respect to any and all matters presented to the stockholders of the Company for their action or consideration (whether at a meeting of stockholders of the Company, by written action of stockholders in lieu of a meeting or otherwise), except as provided by law.

*<u>Reissuance of Series B preferred stoc</u>*<u>k</u>

Any shares of Series B preferred stock converted or otherwise acquired by the Company shall be cancelled and retired as authorized and issued shares of capital stock of the Company and no such shares shall thereafter be reissued, sold, or transferred.

*<u>Protective Provisions</u>*

No provision of the Series B Certificate of Designation may be amended, modified, or waived except by an instrument in writing executed by the Company and the holders of not less than two-thirds of the then total outstanding shares of Series B preferred stock (a "Supermajority Interest") and any such written amendment, modification, or waiver will be binding upon the Company and each holder of Series B preferred stock; provided, that no such action shall change or waive (a) the definition of Liquidation Value, or (b) the rate at which or the manner in which dividends on the Series B preferred stock accrue or accumulate or the times at which such dividends become payable without the prior written consent of each holder of outstanding shares of Series B preferred stock; provided, further, that no amendment, modification, or waiver of the terms or relative priorities of the Series B preferred stock may be accomplished by the merger, consolidation, or other transaction of the Company with another Company or entity unless the Company has obtained the prior written consent of the all of the holders of the Series B preferred stock.

*<u>Redemption</u>*

The Series B designation allow for the shares to be redeemed solely at the discretion of the Company if an IPO has not commenced as of December 31, 2025 and provides for a window of repurchase. There are no circumstances in which the holder can force redemption.

**COLLAB Z INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

*Series X Preferred Stock*

Each share of Series X preferred stock is entitled to 1,000 votes. The holders of shares of Series X preferred stock are entitled to vote on all matters on which the Company's common stock shall be entitled to vote.

The holders of the Series X preferred stock are not entitled to dividends.

The holders of the Series X preferred stock shall not be entitled to any liquidation preference and the shares are not subject to redemption. Upon the event of liquidation, dissolution or winding up of the Company, voluntary or involuntary, the holders of Series X preferred stock would be entitled to receive the initial stated value of the Company's preferred stock.

The holders of the shares of Series X preferred stock shall not have any rights to convert such shares into, or exchange such shares for, shares of any other series or class of capital stock of the Company.

*Common Stock*

 

Each share of common stock entitles its holder to one vote per share on all matters to be voted or consented upon by the stockholders. Holders of our common stock are not entitled to cumulative voting rights with respect to the election of directors.

Holders of common stock are entitled to receive ratably such dividends or other distributions, if any, as may be declared by the Board out of funds legally available.

In the event of the liquidation, dissolution or winding up of our business, the holders of common stock are entitled to share ratably in the assets available for distribution after the payment of all of debts and other liabilities, subject to the prior rights of the holders of the Company's preferred stock.

 

*Collab CA Equity Transactions*

 

During the year ended September 30, 2025, the Company's related party made contributions of $36,000, all consisting of non-cash in-kind services. During the year ended September 30, 2024, the Company's sole member made contributions of $192,435, including cash contributions of $168,435 and in-kind services of $24,000.

During the year ended September 30, 2024, the Company had $441,211 in distributions, all consisting of cash.

The additions and contributions of Collab CA have been reflected in additional-paid in capital.

**COLLAB Z INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

*Collab Z Equity Transactions*

In September 2024, the Company issued 540,891 shares to employees and consultants for services performed. The Company determined a fair value per share of $0.26 using a market-based approach whereby management identified public market comparable companies and applied a revenue multiple based on the average observed. Management then applied a discount for lack of marketability and minority interest. The total fair value was $140,632, of which $120,287 was included in general and administrative expenses and $20,345 was included in cost of revenue in the consolidated statements of operations.

In March and April 2025, the Company acquired a 40% interest in various joint ventures through the issue of 60,000 shares for a total consideration of $120,000, representing the fair value of the investment at the acquisition date of $2.00 per share using a market participation exit approach under ASC 820 whereby management considered factors such as the expected timing and offering price of the anticipated IPO, and the underlying price of other equity transactions.

In the event that the Company fails to consummate an initial public offering of its securities (the "Collab IPO") on or prior to December 31, 2026 (the "Collab IPO Deadline"):

(a) The joint venture partner shall have the option to:

(i) Surrender all securities of the Company purchased pursuant to an equity sale; and

(ii) Receive in exchange for such surrendered securities Collab's member interests.

(iii) The Company shall pay the joint venture partner an amount equal to the total capital contributions made by the joint venture partner as of the option exercise date minus the total distributions received by the joint venture partner as of the option exercise date.

(b) The Company shall have the option to:

(i) Surrender all its member's interests; and

(ii) Receive in exchange for such surrendered interests the securities of its member purchased pursuant to an equity sale.

(iii) The Company shall pay the joint venture partner an amount equal to the total capital contributions made by the joint venture partner as of the option exercise date minus the total distributions received by the joint venture partner as of the option exercise date.

(c) In the event that both the joint venture and the Company elect to exercise their respective options concurrently, the Company's right to exercise shall take precedence.

The shares issued pursuant to the Joint Venture Agreement were determined to contain certain redemption rights and subject to the occurrence of uncertain future events (the Collab IPO) pursuant to ASC 480, and therefore the value of $120,000 was included within temporary equity on the consolidated balance sheet.

The assumptions in estimating the fair value of common stock include the identification of comparable companies, and appropriate discounts based on the facts and circumstances. These estimates are highly subjective. Management will be required to estimate fair value, until such point in time that the Company had observable transactions or its shares are become quoted on an exchange.

**COLLAB Z INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

**NOTE 9 – STOCK-BASED COMPENSATION** 

***Collab Z Inc. 2025 Equity Incentive Plan***

The 2025 Equity Incentive Plan (the "2025 Plan") permits the grant of awards, which provides for the grant of shares of stock options to employees, non-employee directors, and non-employee consultants. The number of shares authorized by the 2025 Plan was 763,708 shares as of September 30, 2025. The option exercise price generally may not be less than the underlying stock's fair market value at the date of the grant and generally have a term of ten years. The amounts granted each calendar year to an employee or non-employee is limited depending on the type of award. As of September 30, 2025, there were 175,734 shares available for grant under the 2025 Plan. Stock options granted under the 2025 Plan typically vest over a four-year period, with a one-year cliff as well as via specified milestones.

A summary of information related to stock options for the year ended September 30, 2025 ais as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Options** | **Weighted<br> Average<br> Exercise<br> Price** | **Intrinsic<br> Value** |
| Outstanding as of September 30, 2024 |  | $- | $- |
| Granted | 587975 | 2.08 |  |
| Exercised |  |  |  |
| Forfeited | - |  |  |
| Outstanding as of September 30, 2025 | 587975 | $2.08 | $1127211 |
| Exercisable as of September 30, 2025 |  | $- | $- |
| Exercisable and expected to vest at of September 30, 2025 |  | $- | $- |

---

As of September 30, 2025, the weighted average duration to expiration of outstanding options was 9.48 years.

No stock-based compensation expense for stock options was recognized for the year ended September 30, 2025 and 2024, respectively, due to the granted options containing vesting conditions that are contingent upon an IPO. Total unrecognized compensation cost related to non-vested stock option awards amounted to approximately $660,013 as of September 30, 2025, which will be recognized over a weighted average period of 2.11 years if the contingent vesting condition is met.

The stock options were valued using the Black-Scholes pricing model using the range of inputs as indicated below:

---

| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **September 30,** | **September 30,** |
|  | **2025** | **2024** |
| Risk-free interest rate | 4.09% - 4.18 | n/a |
| Expected term (in years) | 5.50-6.08 | n/a |
| Expected volatility | 53.1% | n/a |
| Expected dividend yield | 0% | n/a |

---

The weighted average grant date fair value of options granted during year ended September 30, 2025 was $1.12.

**COLLAB Z INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

**NOTE 10 – RELATED PARTY TRANSACTIONS**

*Revenue and Accounts Receivable* 

 

During the years ended September 30, 2025 and 2024, the Company earned revenues of $893,628 and $1,163,585, respectively, from related parties. As of September 30, 2025 and 2024, the Company had accounts receivable of $266,580 and $349,576, respectively, with related parties.

These related parties are primarily properties for which the Company provides various real estate services, including property management, construction and development management, and renovation services. To date, the Company has also provided or received certain advances from these properties outside the normal revenue generating services, as noted below.

 

*Due From / To Related Parties*

Due from related parties includes a) cash advances made and b) expenses and other costs paid for on behalf of related parties. Due to related parties includes cash advances received from various related parties. The Company enters into these transactions based on the current working capital needs of the Company and these related entities. These advances are unsecured, due on demand and non-interest bearing.

The following is a summary of due from / to related parties:

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **September 30,** |
|  | **2025** | **2024** |
| **<u>Due from related parties</u>** |  |  |
| Customer properties with common control and management\* | $5267 | $139416 |
| Entities with common control and management\* | 378310 | 157767 |
| YRQ Irrevocable Trust | - | 2259850 |
| Due from related parties | $383577 | $2557033 |
| Due to related parties |  |  |
| Customer properties with common control and management\* | $4605 | $1174916 |
| Family member of former Chairman | 12000 | 130000 |
| Due to related parties | $16605 | $1304916 |

---

\* The Company or its subsidiaries have no ownership in the customer properties or related party entities as per the amounts above. To date, Collab CA has shared common control and management with these entities.

*YRQ Irrevocable Trust*

During the year ended September 30, 2025, the Company advanced $64,970 to YRQ Irrevocable Trust ("YRQ") in order to provide working capital, and YRQ repaid $2,324,820 to the Company. During the year ended September 30, 2024, the Company advanced an aggregate of $2,259,850 to YRQ Irrevocable Trust ("YRQ") in order to provide working capital. These advances were unsecured, due on demand and non-interest bearing.

As of September 30, 2025, YRQ has paid the advance all in full and there was no balance outstanding.

In 2024, YRQ, as part of a control group that maintained control over Collab CA, became the sole member of Collab CA on August 21, 2024. Upon the Reorganization, YRQ received 4,550,500 shares of the Company's common stock and 5,000 shares of the Company's Series X preferred stock.

During the year ended September 30, 2025, Collab CA's former member provided certain advisory services for the Company for a fair value of $36,000. The amounts were recognized as non-cash member contributions.

During the year ended September 30, 2024, Collab CA's former member provided certain advisory services for the Company for a fair value of $24,000. The amounts were recognized as non-cash member contributions.

**COLLAB Z INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025 AND 2024**

**NOTE 11 – INCOME TAXES**

Deferred taxes are recognized for temporary differences between the basis of assets and liabilities for financial statement and income tax purposes. The differences relate primarily to net operating loss carryforwards. As of September 30, 2025, the Company had net deferred tax assets before valuation allowance of $16,910. The following table presents the deferred tax assets and liabilities by source:

---

| | |
|:---|:---|
|  | **September 30,**<br>**2025** |
| Deferred tax assets: |  |
| &nbsp;&nbsp;&nbsp;Net operating loss carryforwards | $16910 |
| Valuation allowance | (16910) |
| &nbsp;&nbsp;&nbsp;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 year ended September 30, 2025. Therefore, a valuation allowance of $16,910 was recorded as of September 30, 2025. Valuation allowance increased by $16,910 during the years ended September 30, 2025. Deferred tax assets were calculated using the Company's combined effective tax rate, which it estimated to be 28.0%. 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. At September 30, 2025, the Company had net operating loss carryforwards available to offset future taxable income in the amounts of $60,427.

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 positions 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.

**NOTE 12 – COMMITMENTS AND CONTINGENCIES**

 

***Minimum Rental Guarantee***

 ****

The Company has a minimum rental guarantee for certain related party managed properties whereby the Company will pay the difference between the collected rent and the minimum rent guarantee. These guarantees require the Company to ensure a specified minimum gross revenue each month. Should the properties' gross revenues fall below these thresholds, the Company is required to compensate for the shortfall. The maximum potential amount of future payments under these guarantees is estimated based on historical occupancy rates and market trends to project potential future shortfalls. The minimum rent guarantee thresholds are calculated annually based on the local market occupancy rates and prevailing market rental rates. The minimum rent guarantee terms are stipulated to last for the duration of the property management agreements unless terminated by either party or amended by mutual agreement. These agreements can be terminated by either party by providing 30 days' notice.

As of the issuance date of these consolidated financial statements, the maximum potential rental guarantees were approximately $102,000 per month. Since entering into these terms, no shortfall payments have been incurred.

***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 matters will have a material adverse effect on its business, financial condition or results of operations.

**NOTE 13 – SUBSEQUENT EVENTS**

In October 2025, the Company received $150,000 pursuant to its subscription receivable (see Note 8).

**5,000,000 Shares of Common Stock**

COLLAB Z INC.

![](ea029126101_img1.jpg)

PROSPECTUS

*Co-Managers*

American Trust Investment Services, Inc. and WestPark Capital

_______ ___, 2026

Until ____, 2026 (25 days from the date of this prospectus), all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.

PART II

INFORMATION NOT REQUIRED IN THE PROSPECTUS

Item 13. Other Expenses of Issuance and Distribution

The following table sets forth the costs and expenses, other than underwriting discounts and commissions, payable by Collab Z Inc., or the Registrant, in connection with the sale of our common stock being registered. The Registrant will bear all of the below fees and expenses, which are inclusive of the fees and expenses incidental to the registration of our common stock. All amounts shown are estimates except for the Securities and Exchange Commission ("SEC") registration fee, the Financial Industry Regulatory Authority, Inc. ("FINRA") filing fee, and the Nasdaq Capital Market listing fee.

---

| | |
|:---|:---|
|  | **Amount** |
| SEC registration fee | $3176.30 |
| Nasdaq Capital Market listing fee | 5000.00 |
| FINRA filing fee | 3950.00 |
| Accounting fees and expenses | 50000.00 |
| Legal fees and expenses | 400000.00 |
| Transfer agent fees and expenses | 15000.00 |
| Printing and related fees and expenses | 10000.00 |
| Miscellaneous fees and expenses | 15000.00 |
| **Total** | $502126.30 |

---

Item 14. Indemnification of Directors and Officers

Neither our articles of incorporation nor bylaws prevent us from indemnifying our officers, directors and agents to the extent permitted under the *Nevada Revised Statutes* ("NRS"). NRS Section 78.7502, provides that a corporation may indemnify any director, officer, employee or agent of a corporation against expenses, including fees, actually and reasonably incurred by him in connection with any defense to the extent that a director, officer, employee or agent of a corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to Section 78.7502(1) or 78.7502(2), or in defense of any claim, issue or matter therein.

NRS 78.7502(1) provides that a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, except an action by or in the right of the corporation, by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with the action, suit or proceeding if he: (a) is not liable pursuant to NRS 78.138; or (b) acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful.

NRS Section 78.7502(2) provides that a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses, including amounts paid in settlement and fees actually and reasonably incurred by him in connection with the defense or settlement of the action or suit if he: (a) is not liable pursuant to NRS 78.138; or (b) acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation. Indemnification may not be made for any claim, issue or matter as to which such a person has been adjudged by a court of competent jurisdiction, after exhaustion of all appeals there from, to be liable to the corporation or for amounts paid in settlement to the corporation, unless and only to the extent that the court in which the action or suit was brought or other court of competent jurisdiction determines upon application that in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper.

NRS Section 78.747 provides that except as otherwise provided by specific statute, no director or officer of a corporation is individually liable for a debt or liability of the corporation, unless the director or officer acts as the alter ego of the corporation. The court as a matter of law must determine the question of whether a director or officer acts as the alter ego of a corporation.

Our Bylaws provide that we will indemnify our directors and executive officers to the fullest extent not prohibited by the NRS, as amended from time to time, or any other applicable law, *provided, however,* that the we may modify the extent of such indemnification by individual contracts with our directors and executive officers, and, *provided, further,* that we shall not be required to indemnify any director or executive officer in connection with any proceeding (or part thereof) initiated by such person unless (i) such indemnification is expressly required to be made by law, (ii) the proceeding was authorized by the Board of Directors of the corporation, (iii) such indemnification is provided by the corporation, in its sole discretion, pursuant to the powers vested in the corporation under the Act or any other applicable law or (iv) such indemnification is required to be made under the amended Bylaws. We have the power to indemnify our other officers, employees and other agents as set forth in the NRS or any other applicable law. The Board of Directors shall have the power to delegate the determination of whether indemnification shall be given to any such person except executive officers to such officers or other persons as the Board of Directors shall determine. To the fullest extent permitted by the NRS, or any other applicable law, upon approval by our Board of Directors, we may purchase insurance on behalf of any person required or permitted to be indemnified pursuant to our amended Bylaws.

If a claim is not paid in full by the Company, the claimant may at any time thereafter bring suit against the Company to recover the unpaid amount of the claim and, if successful in whole or in part, the claimant shall be entitled to be paid also the expense of prosecuting such claim. It shall be a defense to any such action (other than an action brought to enforce a claim for expenses incurred in defending any proceeding in advance of its final disposition where any undertaking required by the By-laws of the Company has been tendered to the Company) that the claimant has not met the standards of conduct which make it permissible under the NRS for the Company to indemnify the claimant for the amount claimed, but the burden of proving such defense shall be on the Company. Neither the failure of the Company (including its Board of Directors, legal counsel, or its stockholders) to have made a determination prior to the commencement of such action that indemnification of the claimant is proper in the circumstances because he or she has met the applicable standard of conduct set forth in the NRS, nor an actual determination by the Company (including its Board of Directors, legal counsel, or its stockholders) that the claimant has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that the claimant has not met the applicable standard of conduct. Indemnification shall include payment by the Company of expenses in defending an action or proceeding in advance of the final disposition of such action or proceeding upon receipt of an undertaking by the person indemnified to repay such payment if it is ultimately determined that such person is not entitled to indemnification.

We intend to enter into separate indemnification agreements with our directors and officers. Each indemnification agreement will provide, among other things, for indemnification to the fullest extent permitted by law and our amended and restated certificate of incorporation and bylaws against any and all expenses, judgments, fines, penalties and amounts paid in settlement of any claim. The indemnification agreements will provide for the advancement or payment of all expenses to the indemnitee and for reimbursement to us if it is found that such indemnitee is not entitled to such indemnification under applicable law and our articles of incorporation and bylaws.

We are in the process of obtaining standard policies of insurance under which coverage is provided (a) to our directors and officers against loss rising from claims made by reason of breach of duty or other wrongful act, and (b) to us with respect to payments which we may make to such officers and directors pursuant to the above indemnification provision or otherwise as a matter of law.

The underwriting agreement, filed as Exhibit 1.1 to this registration statement, will provide for indemnification, under certain circumstances, by the underwriter of us and our officers and directors for certain liabilities arising under the Securities Act or otherwise.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us under the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

Item 15. Recent Sales of Unregistered Securities.

Since the Company's incorporation, it has granted or issued the following securities of the registrant that were not registered under the Securities Act of 1933, as amended.

We sold all of the securities listed below pursuant ‎to: (a) the exemptions from registration provided by Section 4(a)(2) of the Securities Act and/or Regulation D ("Regulation D") under the Securities Act and (b) Rule 701 under the Securities Act, with respect to compensatory securities offered and sold to (i) directors, (ii) officers, (iii) employees, or (iv) consultants who are natural persons providing bona fide services to we and/or its subsidiaries not in connection with the offer or sale of securities in a capital-raising transaction, and which do not directly or indirectly promote or maintain a market for the Company's securities.

No underwriter or placement agent was involved in the issuance or sale of any of the common stock, and no underwriting discounts or commissions were paid.

Common Stock

*SAFE Agreement*

In April 2023, the Company entered into a SAFE agreement for proceeds of $25,000 with an investor. The SAFE has a valuation cap of $50,000,000 and a discount of 25%, which will be applied to the valuation of the Company at the time of the triggering event in order to calculate the price per share for the investor.

The SAFE will convert into equity upon the occurrence of a future qualified financing round of at least $10,000,000 or another triggering event, including the event of a merger, acquisition or initial public offering ("IPO") as contemplated in this offering. The SAFE will convert into an amount of shares undeterminable until an offering price for this offering is established. We expect to issue 8,333 shares of common stock to the investor issuable at a 75% discounted price of $3.00 per share assuming a public offering price of $4.00.

The sale and issuance of common stock described above was made in reliance on Section 4(a)(2) of the Securities Act and of Regulation D, as amended.

*Advisory Agreement*

On May 6, 2024, Collab CA entered into an Advisory Agreement (the "Advisory Agreement") with Blake Elliot Inc., a Florida corporation (the "Advisor"), pursuant to which the Advisor will receive 100,000 shares of common stock of the Company as compensation of the services provided by the Advisor.

The issuance and sale of the common stock described above was made in reliance upon exemptions from registration requirements under Section 4(a)(2) of the Securities Act and pursuant to Rule 701 promulgated under the Securities Act as a transaction by an issuer not involving any public offering and pursuant to benefit plans and contracts relating to compensation.

*Equity Private Placement*

In September 2024, we issued an aggregate of 5,060,391 shares of our common stock in a private placement to certain investors pursuant to certain securities purchase agreements dated September 16, 2024 (the "Private Placement"). The Private Placement was conducted in accordance with applicable exemptions from registration in reliance on Section 4(a)(2) of the Securities Act and of Regulation D, as amended. On December 11, 2024, we cancelled 4,519,500 shares of common stock pursuant to certain cancellation and release agreements dated December 11, 2024, in order to correct a structural error, which was remedied by the Share Exchange dated December 30, 2024.

*Share Exchange*

In December 2024, the Company issued an aggregate of 4,550,500 shares of its common stock to the YRQ Irrevocable Trust, the holder of 5,000 shares of Series X Preferred Stock and controlling stockholder of the Company, and owner of all the membership interests of Collab CA LLC, a California limited liability company ("Collab LLC"), in exchange for 100% of the membership interests in Collab LLC, pursuant to Reorganization Agreement and Plan of Share Exchange dated December 30, 2024 (the "Share Exchange").

The sale and issuance of common stock described above was made in reliance on Section 4(a)(2) of the Securities Act and of Regulation D, as amended.

*Joint Ventures*

 

In December 2024, the Company issued an aggregate of 4,550,500 shares of its common stock to the YRQ Irrevocable Trust, the holder of 5,000 shares of Series X Preferred Stock and controlling stockholder of the Company, and owner of all the membership interests of Collab CA LLC, a California limited liability company ("Collab LLC"), in exchange for 100% of the membership interests in Collab LLC, pursuant to Reorganization Agreement and Plan of Share Exchange dated December 30, 2024 (the "Share Exchange").

The sale and issuance of common stock described above was made in reliance on Section 4(a)(2) of the Securities Act and of Regulation D, as amended.

Preferred Stock

*Series B Private Placement*

 

Pursuant to a Certificate of Designation filed with the Secretary of State of Nevada on June 5, 2025, we are authorized to issue up to 1,250,000 shares of Series B Preferred Stock with a stated value of $4.00 per share. As of the date of the prospectus, we have sold an aggregate of 200,000 shares of Series B Preferred Stock, consisting of:

● 75,000 shares of Series B Preferred Stock to one accredited investor for an aggregate purchase price of $300,000 pursuant to a securities purchase agreement dated May 27, 2025;

● 25,000 shares of Series B Preferred Stock to one accredited investor for an aggregate purchase price of $100,000 pursuant to a securities purchase agreement, dated June 24, 2025;

● 25,000 and 37,500 shares of Series B Preferred Stock to two accredited investors, for an aggregate purchase price of $100,000 and $150,000, respectively, pursuant to securities purchase agreements, dated July 7, 2025;

● 37,500 shares of Series B Preferred Stock to one accredited investor for an aggregate purchase price of $150,000 pursuant to a securities purchase agreement, dated July 9, 2025.

The sale and issuance of the Series B Preferred Stock described above was made in reliance on Section 4(a)(2) of the Securities Act and of Regulation D, as amended.

***Series C Private Placement***

 ****

Pursuant to a Series C Certificate of Designation filed with the Secretary of State of Nevada on January 23, 2026, we are authorized to issue up to 10,000,000 shares of Series C Preferred Stock with a stated value of $4.00 per share. As of the date of the prospectus, we have sold an aggregate of 720,250 shares of Series C Preferred Stock pursuant to certain securities purchase agreements dated January 19, 2026. As of the date of the prospectus, 750,250 shares of Series C Preferred Stock were issued and outstanding.

The sale and issuance of the Series C Preferred Stock described above was made in reliance on Section 4(a)(2) of the Securities Act and of Regulation D, as amended.

Options

In March 2025, the Company granted options to purchase an aggregate of 490,500 shares of common stock to certain individuals under the 2025 Equity Incentive Plan (the "Plan"). In May 2025, the Company granted an aggregate of 97,475 options under the Plan to the individuals under the Plan. In January 2026, Company granted an aggregate of 115,000 options under the Plan to the individuals under the Plan.

The issuance of the stock options described above was made in reliance upon exemptions from registration requirements under Section 4(a)(2) of the Securities Act and pursuant to Rule 701 promulgated under the Securities Act as a transaction by an issuer not involving any public offering and pursuant to benefit plans and contracts relating to compensation.

Item 16. Exhibits.

(a) Exhibits.

---

| | |
|:---|:---|
| Exhibit No. | Description |
| 1.1 | [Form of Underwriting Agreement](ea029126101ex1-1.htm) |
| 2.1\* | [Form of Reorganization Agreement and Plan of Share Exchange by and among the Registrant, Collab CA LLC and its shareholders.](http://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex2-1_collab.htm) |
| 3.1\* | [Articles of Incorporation of the Registrant](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex3-1_collab.htm) |
| 3.2\* | [Bylaws of the Registrant](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex3-2_collab.htm) |
| 3.3\* | [Series X Preferred Stock Certificate of Designation](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex3-3_collab.htm) |
| 3.4\* | [Series B Preferred Stock Certificate of Designation](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex3-4_collab.htm) |
| 3.5\* | [Series C Preferred Stock Certificate of Designation](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex3-5_collab.htm) |
| 5.1 | [Opinion of Counsel to the Registrant.](ea029126101ex5-1.htm) |
| 10.1\* | [Form of Securities Purchase Agreement for September 2024 Private Placement](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex10-1_collab.htm) |
| 10.2\* | [Form of Cancellation and Release Agreement](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex10-2_collab.htm) |
| 10.3\* | [Form of Securities Purchase Agreement for January 2025 Private Placement](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex10-3_collab.htm) |
| 10.4\* | [Form of Stock Assignment Agreement for January 2025 Private Placement](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex10-4_collab.htm) |
| 10.5\* | [SAFE Agreement between Khyati Mody Company and Collab CA LLC dated April 25, 2023](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex10-5_collab.htm) |
| 10.6\* | [Form of Property Management Agreement](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex10-6_collab.htm) |
| 10.7\* | [Form of Limited Liability Company Agreement](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex10-7_collab.htm) |
| 10.8\* | [Advisory Agreement between Blake Elliot Inc. and Collab (USA) Capital LLC dated May 6, 2024.](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex10-8_collab.htm) |
| 10.9\* | [Consulting Agreement by and between Zhaoju ("Kelly") Shen and Collab CA LLC dated October 23, 2024](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex10-9_collab.htm) |
| 10.10\* | [Director Agreement, dated May 1, 2025, between the Company and William Caragol](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex10-10_collab.htm) |
| 10.11\*† | [2025 Equity Incentive Plan](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex10-11_collab.htm) |
| 10.12\* | [Form of Securities Purchase Agreement for Series B Preferred Stock Private Placement](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex10-12_collab.htm) |
| 10.13\* | [Form of Securities Purchase Agreement for Series C Preferred Stock Private Placement](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex10-13_collab.htm) |
| 10.14\* | [Director Agreement, dated July 22, 2025, between the Company and David Kivitz](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex10-14_collab.htm) |
| 10.15\* | [Director Agreement, dated July 22, 2025, between the Company and Matthew Gordon](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex10-15_collab.htm) |
| 10.16\* | [Director Agreement, dated July 22, 2025, between the Company and Zhe Zhang](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex10-16_collab.htm) |
| 10.17 | [Form of Lock-Up Agreement (included as Exhibit A to Exhibit 1.1)](ea029126101ex1-1.htm#u_001) |
| 14.1\* | [Code of Business Conduct and Ethics](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex14-1_collab.htm) |
| 19.1\* | [Insider Trading Policy](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex19-1_collab.htm) |
| 21.1\* | [List of Subsidiaries of the Registrant.](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex21-1_collab.htm) |
| 23.1 | [Consent of DBBMcKennon](ea029126101ex23-1.htm) |
| 23.2 | [Consent of Sichenzia Ross Ference Carmel LLP (included in Exhibit 5.1).](ea029126101ex5-1.htm) |
| 24.1\* | [Power of Attorney](https://www.sec.gov/ix?doc=/Archives/edgar/data/2050338/000121390026021753/ea0276629-s1_collab.htm#d_001) |
| 99.1\*† | [Executive Compensation Clawback Policy](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex99-1_collab.htm) |
| 99.2\* | [Audit Committee Charter](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex99-2_collab.htm) |
| 99.3\* | [Compensation Committee Charter](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex99-3_collab.htm) |
| 99.4\* | [Nominating and Corporate Governance Committee Charter](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex99-4_collab.htm) |
| 99.5\* | [Consent of Matthew Gordon (director nominee)](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex99-5_collab.htm) |
| 99.6\* | [Consent of David Kivitz (director nominee)](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex99-6_collab.htm) |
| 99.7\* | [Consent of Zhe Zhang (director nominee)](https://www.sec.gov/Archives/edgar/data/2050338/000121390026021753/ea027662901ex99-7_collab.htm) |
| 107 | [Filing Fees](ea029126101ex-fee.htm) |
| 101.INS | Inline XBRL Instance Document |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

---

\* Previously filed

---

| | |
|:---|:---|
| † | Management compensatory agreement. |

---

(b) Financial Statement Schedules.

All financial statement schedules are omitted because the information called for is not required or is shown either in the financial statements or in the notes thereto.

Item 17. Undertakings

(a) The undersigned registrant hereby undertakes:

(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.

(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(4) That for the purpose of determining any liability under the Securities Act of 1933 in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

(5) That for the purpose of determining liability under the Securities Act of 1933 to any purchaser, if the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

(b) The undersigned hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreements, certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

(c) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

(d) The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Orinda, on May 22, 2026.

---

| | |
|:---|:---|
| COLLAB Z INC. | COLLAB Z INC. |
| By: | /s/ *Qiaojun Lai* |
|  | Qiaojun Lai |
|  | Chief Executive Officer |

---

---

| | | |
|:---|:---|:---|
| Name | Position | Date |
| */s/ Qiaojun Lai* | Chief Executive Officer | May 22, 2026 |
| Qiaojun Lai | (Principal Executive Officer) |  |
| */s/ Jin Kuang* | Chief Financial Officer | May 22, 2026 |
| Jin Kuang | (Principal Financial and Accounting Officer) |  |
| */s/ \** | Chairman | May 22, 2026 |
| William J. Caragol |  |  |

---

---

| | |
|:---|:---|
| \*By: | /s/ *Qiaojun Lai* |
| Name: | Qiaojun Lai |
|  | Attorney-in-fact |

---

## Exhibit 1.1

**Exhibit 1.1**

**UNDERWRITING AGREEMENT**

[●], 2026

American Trust Investment Services, Inc.

910 S El Camino Real,Suite 200

San Clemente, CA 92672

United States

WestPark Capital, Inc.

1900 Avenue of the Stars, Suite 310

Los Angeles, CA 90067

 

*As the Representatives of the several Underwriters named on Schedule 1 attached hereto*

Ladies and Gentlemen:

The undersigned, Collab Z Inc., a Nevada corporation (the "**Company**"), hereby confirms its agreement (this "**Agreement**") with American Trust Investment Services, Inc. and WestPark Capital, Inc., the "**Representatives**", and the Representatives and such other underwriters being collectively called the "**Underwriters**" or, individually, an "**Underwriter**") and with the other underwriters named on <u>Schedule 1</u> hereto for which the Representatives are acting as the representatives to sell an aggregate of [●] shares (the "**Firm Shares**") of common stock of the Company, par value $0.001 per share (the "**Common Stock**"), and at the election of the Representatives, up to an additional [●] shares of Common Stock (the "**Option Shares**") and, together with the Firm Shares, the "**Shares**") as follows:

1. <u>Purchase and Sale of Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Firm Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.1. <u>Nature and Purchase of Firm Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On the basis of the representations and warranties herein contained, but subject to the terms and conditions herein set forth, the Company agrees to sell to the several Underwriters the Firm Shares, and the Underwriters agree to purchase from the Company the number of Firm Shares set forth opposite their respective names on <u>Schedule 1</u> attached hereto and made a part hereof, at the purchase price of $[●] per Firm Share (or 93% of the per Share public offering price).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Firm Shares are to be offered initially to the public at the offering price set forth on the cover page of the Prospectus (as defined in <u>Section 2.1.1</u> hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.2. <u>Firm Shares Payment and Delivery</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Delivery and payment for the Firm Shares shall be made at [●]:[●] [a.m./p.m.], Eastern time, on the second (2<sup>nd</sup>) Business Day following the Applicable Time (as defined in <u>Section 2.1.1</u> below), or at such earlier time as shall be agreed upon by the Representatives and the Company, at the offices of Loeb & Loeb LLP ("**Representatives' Counsel**"), or at such other place (or remotely by electronic transmission) as shall be agreed upon by the Representatives and the Company. The hour and date of delivery and payment for the Firm Shares is called the "**Closing Date**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Payment for the Firm Shares shall be made on the Closing Date by wire transfer in Federal (same day) funds, payable to the order of the Company upon delivery of the certificates (in form and substance satisfactory to the Underwriters) representing the Firm Shares (or through the facilities of The Depository Trust Company ("**DTC**")) for the account of the Underwriters. The Firm Shares shall be registered in such name or names and in such authorized denominations as the Representatives may request in writing at least two (2) full Business Days prior to the Closing Date. The Company shall not be obligated to sell or deliver the Firm Shares except upon tender of payment by the Representatives for all of the Firm Shares. The term "**Business Day**" means any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions are authorized or obligated by law to close in New York, New York; provided, however, for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to "stay-at-home," "shelter-in-place," "non-essential employee" or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York generally are open for use by customers on such day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. <u>Over-allotment Option</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1. <u>Option Shares</u>. For the purposes of covering any over-allotments in connection with the distribution and sale of the Firm Shares, the Company hereby grants to the Underwriters an option (the "**Over-allotment Option**") to purchase, in the aggregate, up to [●] Option Shares, representing fifteen percent (15%) of the Firm Shares sold in the offering, from the Company. The purchase price to be paid by the Underwriters per Option Share shall be equal to $[●] per Option Share. The offering and sale of the Shares is herein referred to as the "**Offering**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.2. <u>Exercise of Option</u>. The Over-allotment Option granted pursuant to <u>Section 1.2.1</u> hereof may be exercised by the Representatives as to all (at any time) or any part (from time to time) of the Option Shares within forty-five (45) days after the Closing Date. The Underwriters shall not be under any obligation to purchase any of the Option Shares prior to the exercise of the Over-allotment Option. The Over-allotment Option granted hereby may be exercised by the giving of written notice to the Company from the Representatives, setting forth the number of the Option Shares to be purchased and the date and time for delivery of and payment for the Option Shares (the "**Option Closing Date**"), which shall not be later than five (5) full Business Days after the date of the notice or such other time as shall be agreed upon by the Company and the Representatives, at the offices of Representatives' Counsel or at such other place (including remotely by electronic transmission) as shall be agreed upon by the Company and the Representatives. If such delivery and payment for the Option Shares does not occur on the Closing Date, the Option Closing Date will be as set forth in the notice. Upon exercise of the Over-allotment Option with respect to all or any portion of the Option Shares subject to the terms and conditions set forth herein, (i) the Company shall become obligated to sell to the Underwriters the number of the Option Shares specified in such notice and (ii) each of the Underwriters, acting severally and not jointly, shall purchase that portion of the total number of the Option Shares then being purchased as set forth in <u>Schedule 1</u> opposite the name of such Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.3. <u>Payment and Delivery</u>. Payment for the Option Shares shall be made on the Option Closing Date by wire transfer in Federal (same day) funds, payable to the order of the Company upon delivery to the Representatives of certificates (in form and substance satisfactory to the Underwriters) representing the Option Shares (or through the facilities of DTC or via The Depository Trust Company Deposit or Withdrawal at Custodian system ("**DWAC**") transfer) for the account of the Underwriters. The Option Shares shall be registered in such name or names and in such authorized denominations as the Representatives may request in writing at least one (1) full Business Day prior to the Option Closing Date. The Company shall not be obligated to sell or deliver the Option Shares except upon tender of payment by the Representatives for applicable Option Shares.

2. <u>Representations and Warranties of the Company</u>. The Company represents and warrants to the Underwriters as of the Applicable Time (as defined below), as of the Closing Date and as of the Option Closing Date, if any, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>Filing of Registration Statement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1. <u>Pursuant to the Securities Act</u>. The Company has filed with the U.S. Securities and Exchange Commission (the "**Commission**") a registration statement, and an amendment or amendments thereto, on Form S-1 (File No. 333-293881), including any related prospectus or prospectuses, for the registration of the Shares under the Securities Act of 1933, as amended (the "**Securities Act**"), which registration statement and amendment or amendments have been prepared by the Company in all material respects in conformity with the requirements of the Securities Act and the rules and regulations of the Commission under the Securities Act (the "**Securities Act Regulations**") and will contain all material statements that are required to be stated therein in accordance with the Securities Act and the Securities Act Regulations. Except as the context may otherwise require, such registration statement, as amended, on file with the Commission at the time the registration statement became effective (including the Preliminary Prospectus included in the registration statement, financial statements, schedules, exhibits and all other documents filed as a part thereof and all information deemed to be a part thereof as of the Effective Date pursuant to paragraph (b) of Rule 430A of the Securities Act Regulations (the "**Rule 430A Information**")), is referred to herein as the "**Registration Statement**." If the Company files any registration statement pursuant to Rule 462(b) of the Securities Act Regulations, then after such filing, the term "**Registration Statement**" shall include such registration statement filed pursuant to Rule 462(b). The Registration Statement has been declared effective by the Commission on the date hereof (the "**Effective Date**").

Each prospectus used prior to the effectiveness of the Registration Statement, and each prospectus that omitted the Rule 430A Information that was used after such effectiveness and prior to the execution and delivery of this Agreement, is herein called a "**Preliminary Prospectus**." The Preliminary Prospectus, subject to completion, dated [●], that was included in the Registration Statement immediately prior to the Applicable Time is hereinafter called the "**Pricing Prospectus**." The final prospectus in the form first furnished to the Underwriters for use in the Offering is hereinafter called the "**Prospectus**." Any reference to the "**most recent Preliminary Prospectus**" shall be deemed to refer to the latest Preliminary Prospectus included in the Registration Statement.

"**Applicable Time**" means [●]:[●] [a.m./p.m.], Eastern time, on the date of this Agreement.

"**Issuer Free Writing Prospectus**" means any "issuer free writing prospectus," as defined in Rule 433 of the Securities Act Regulations ("**Rule 433**"), including without limitation any "free writing prospectus" (as defined in Rule 405 of the Securities Act Regulations) relating to the Shares that is (i) required to be filed with the Commission by the Company, (ii) a "road show that is a written communication" within the meaning of Rule 433(d)(8)(i), whether or not required to be filed with the Commission, or (iii) exempt from filing with the Commission pursuant to Rule 433(d)(5)(i) because it contains a description of the Shares or of the Offering that does not reflect the final terms, in each case in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company's records pursuant to Rule 433(g).

"**Issuer General Use Free Writing Prospectus**" means any Issuer Free Writing Prospectus that is intended for general distribution to prospective investors (other than a "*bona fide* electronic road show," as defined in Rule 433 (the "**Bona Fide Electronic Road Show**")), as evidenced by its being specified in <u>Schedule 2-B</u> hereto.

"**Issuer Limited Use Free Writing Prospectus**" means any Issuer Free Writing Prospectus that is not an Issuer General Use Free Writing Prospectus.

"**Pricing Disclosure Package**" means any Issuer General Use Free Writing Prospectus issued at or prior to the Applicable Time, the Pricing Prospectus and the information included on <u>Schedule 2-A</u> hereto, all considered together.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.2. <u>Pursuant to the Exchange Act</u>. The Company has filed with the Commission a Form 8-A (File Number [●]) providing for the registration pursuant to Section 12(b) under the Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), of the Common Stock. The registration of the Common Stock under the Exchange Act has become effective on or prior to the date hereof. The Company has taken no action designed to, or likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act, nor has the Company received any notification that the Commission is contemplating terminating such registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. <u>Share Exchange Listing</u>. The Shares have been approved for listing on the Nasdaq Capital Market (the "**Exchange**"), and the Company has taken no action designed to, or likely to have the effect of, delisting of the Shares from the Exchange, nor has the Company received any written notification that the Exchange is contemplating terminating such listing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. <u>No Stop Orders, etc</u>. Neither the Commission nor, to the Company's knowledge, any state regulatory authority has issued any written order preventing or suspending the use of the Registration Statement, any Preliminary Prospectus or the Prospectus or has instituted or, to the Company's knowledge, threatened to institute, any proceedings with respect to such an order. The Company has complied with each request (if any) from the Commission for additional information. For purposes of this Agreement, the term "**Company's knowledge**" means the actual knowledge of the board of directors ("**Board of Directors**") and executive officers of the Company after due inquiry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. <u>Disclosures in Registration Statement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.1. <u>Compliance with Securities Act and 10b-5 Representation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each of the Registration Statement and any post-effective amendment thereto, at the time it became effective, complied in all material respects with the requirements of the Securities Act and the Securities Act Regulations. Each Preliminary Prospectus, including the prospectus filed as part of the Registration Statement as originally filed or as part of any amendment or supplement thereto, and the Prospectus, at the time each was filed with the Commission, complied in all material respects with the requirements of the Securities Act and the Securities Act Regulations. Each Preliminary Prospectus delivered to the Underwriters for use in connection with this Offering and the Prospectus was or will be identical to the electronically transmitted copies thereof filed with the Commission pursuant to the Commission's EDGAR filing system ("**EDGAR**"), except to the extent permitted by Regulation S-T.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Neither the Registration Statement nor any amendment thereto, at the time it became effective, as of the Applicable Time, at the Closing Date or at any Option Closing Date (if any), contained, contains or will contain an untrue statement of a material fact or omitted, omits or will omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; *provided*, *however*, that this representation and warranty shall not apply to statements made or statements omitted in reliance upon and in conformity with information furnished to the Company in writing with respect to the Underwriters by the Representatives expressly for use in the Registration Statement, the Pricing Prospectus or the Prospectus or any amendment thereof or supplement thereto. The parties acknowledge and agree that such information provided by or on behalf of any Underwriter consists solely of the disclosure contained in the "Underwriting" section of the Prospectus: (a) the name of the Underwriter, (b) the information with respect to dealers' concessions and reallowances, (c) the information set forth under the sub-captions "Price Stabilization, Short Positions and Penalty Bids," "Electronic Distribution" and "Passive Market Making" (the "**Underwriters' Information**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Pricing Disclosure Package, as of the Applicable Time, did not, and at the Closing Date or at any Option Closing Date (if any), will not, include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; and each Issuer Limited Use Free Writing Prospectus hereto does not conflict in any material respect with the information contained in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, and each such Issuer Limited Use Free Writing Prospectus, as supplemented by and taken together with the Pricing Prospectus as of the Applicable Time, did not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading; *provided*, *however*, that this representation and warranty shall not apply to statements made in reliance upon and in conformity with Underwriters' Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Neither the Prospectus nor any amendment or supplement thereto (including any prospectus wrapper), as of its issue date, at the time of any filing with the Commission pursuant to Rule 424(b), at the Closing Date or at any Option Closing Date, included, includes or will include an untrue statement of a material fact or omitted, omits or will omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; *provided*, *however*, that this representation and warranty shall not apply to statements made in reliance upon and in conformity with the Underwriters' Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.2. <u>Disclosure of Agreements</u>. The agreements and documents described in the Registration Statement, the Pricing Disclosure Package and the Prospectus conform in all material respects to the descriptions thereof contained therein and there are no agreements or other documents required by the Securities Act and the Securities Act Regulations to be described in the Registration Statement, the Pricing Disclosure Package and the Prospectus or to be filed with the Commission as exhibits to the Registration Statement, that have not been so described or filed. Each agreement or other instrument (however characterized or described) to which the Company or a Subsidiary is a party or by which it is or may be bound or affected and (i) that is referred to in the Registration Statement, the Pricing Disclosure Package and the Prospectus, or (ii) is material to the business of the Company or the Subsidiary, has been duly authorized and validly executed by the Company or the Subsidiary, as applicable, is in full force and effect in all material respects and is enforceable against the Company or the Subsidiary, as applicable, and, to the Company's knowledge, the other parties thereto, in accordance with its terms, except (x) as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors' rights generally, (y) as enforceability of any indemnification or contribution provision may be limited under the federal and state securities laws, and (z) that the remedy of specific performance and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court before which any proceeding therefor may be brought, and except for any unenforceability that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change (as defined in <u>Section 2.5.1</u> below). None of such agreements or instruments has been assigned by the Company or its Subsidiaries, as applicable, and neither the Company, any of its Subsidiaries, nor, to the Company's knowledge, any other party is in material default thereunder and, to the Company's knowledge, no event has occurred that, with the lapse of time or the giving of notice, or both, would constitute a default thereunder, except for any default or event that could not reasonably be expected to result in a Material Adverse Change (as defined below). To the Company's knowledge, performance by the Company and its Subsidiaries of the material provisions of such agreements or instruments will not result in a violation of any existing applicable law, rule, regulation, judgment, order or decree of any governmental agency or court, domestic or foreign, having jurisdiction over the Company or any of its assets or businesses (each, a "**Governmental Entity**"), including, without limitation, those relating to environmental laws and regulations, except for any violation that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.3. <u>Prior Securities Transactions</u>. During the past three (3) years from the date of this Agreement, no securities of the Company have been sold by the Company or by or on behalf of, or for the benefit of, any person or persons controlling, controlled by or under common control with the Company, except as disclosed in the Registration Statement, the Pricing Disclosure Package and any Preliminary Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.4. <u>Regulations</u>. The disclosures in the Registration Statement, the Pricing Disclosure Package and the Prospectus concerning the effects of federal, state, local and all foreign regulation on the Offering and the Company's business as currently contemplated are correct in all material respects and no other such regulations are required under the Securities Act and the Securities Act Regulations to be disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus which are not so disclosed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.5. <u>No Other Distribution of Offering Materials.</u> The Company has not, directly or indirectly, distributed and will not distribute any offering material in connection with the Offering, other than any Preliminary Prospectus, any Issuer Free Writing Prospectus, the Prospectus and other materials, if any, permitted under the Securities Act and consistent with <u>Section 3.2</u> below, until such time as the Underwriters complete the purchase of the Firm Shares or, if the Over-allotment Option is exercised, the Option Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. <u>Changes after Dates in Registration Statement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.1. <u>No Material Adverse Change</u>. Since the respective dates as of which information is given in the Registration Statement, the Pricing Disclosure Package and the Prospectus, except as otherwise specifically stated therein: (i) there has been no material adverse change in the financial position or results of operations of the Company or its subsidiaries (each a "**Subsidiary**" and collectively the "**Subsidiaries**") taken as a whole, nor, to the Company's knowledge, any change or development that, singularly or in the aggregate, could reasonably be expected to result in a material adverse change in or affecting the condition (financial or otherwise), results of operations, business, or assets of the Company or its Subsidiaries taken as a whole (a "**Material Adverse Change**"); (ii) there have been no material transactions entered into by the Company or its Subsidiaries, other than as contemplated pursuant to this Agreement; and (iii) no officer or director of the Company has resigned from any position with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.2. <u>Recent Securities Transactions, etc</u>. Subsequent to the respective dates as of which information is given in the Registration Statement, the Pricing Disclosure Package and the Prospectus, and except as may otherwise be indicated or contemplated herein or disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus, the Company has not: (i) issued any securities or incurred any liability or obligation, direct or contingent, for borrowed money; or (ii) declared or paid any dividend or made any other distribution on or in respect to its capital stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. <u>Disclosures in Commission Filings</u>. None of the Company's filings with, or other documents filed with or furnished to, the Commission contained any untrue statement of a material fact or omitted to state any material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The Company has made all filings with the Commission required under the Exchange Act and the rules and regulations of the Commission promulgated thereunder (the "**Exchange Act Regulations**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. <u>Independent Accountants</u>. To the knowledge of the Company, dbb*mckennon* ("**Auditor**"), whose report is filed with the Commission as part of the Registration Statement, the Pricing Disclosure Package and the Prospectus, is an independent registered public accounting firm as required by the Securities Act and the Securities Act Regulations and the Public Company Accounting Oversight Board. To the knowledge of the Company, the Auditor has not, during the periods covered by the financial statements included in the Registration Statement, the Pricing Disclosure Package and the Prospectus, provided to the Company any non-audit services, as such term is used in Section 10A(g) of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8. <u>Financial Statements, etc</u>. The financial statements, including the notes thereto and supporting schedules, if any, included in the Registration Statement, the Pricing Disclosure Package and the Prospectus, fairly present in all material respects the financial position and the results of operations of the Company as of the dates and for the periods to which they apply; and such financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("**GAAP**"), consistently applied throughout the periods involved (provided that unaudited interim financial statements are subject to year-end audit adjustments that are not expected to be material in the aggregate and do not contain all footnotes required by GAAP); and any supporting schedules included in the Registration Statement present fairly in all material respects the information required to be stated therein. Except as included therein, no historical or pro forma financial statements are required to be included in the Registration Statement, the Pricing Disclosure Package or the Prospectus under the Securities Act or the Securities Act Regulations. The pro forma and pro forma as adjusted financial information and the related notes, if any, included in the Registration Statement, the Pricing Disclosure Package and the Prospectus have been properly compiled and prepared in accordance with the applicable requirements of the Securities Act and the Securities Act Regulations and present fairly in all material respects the information shown therein, and the assumptions used in the preparation thereof are reasonable and the adjustments used therein are appropriate to give effect to the transactions and circumstances referred to therein. All disclosures contained in the Registration Statement, the Pricing Disclosure Package or the Prospectus regarding "non-GAAP financial measures" (as such term is defined by the rules and regulations of the Commission), if any, comply with Regulation G of the Exchange Act and Item 10 of Regulation S-K of the Securities Act, to the extent applicable. Each of the Registration Statement, the Pricing Disclosure Package and the Prospectus discloses all material off-balance sheet transactions, arrangements, obligations (including contingent obligations), and other relationships of the Company with unconsolidated entities or other persons that may have a material current or future effect on the Company's financial condition, changes in financial condition, results of operations, liquidity, capital expenditures, capital resources, or significant components of revenues or expenses. Except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus, (a) since the date of the last balance sheet included in the Registration Statement, the Pricing Disclosure Package and the Prospectus, the Company and each of its Subsidiaries has not incurred any material liabilities or obligations, direct or contingent, or entered into any material transactions other than in the ordinary course of business, (b) the Company has not declared or paid any dividends or made any distribution of any kind with respect to its Common Stock or preferred stock (c) there has not been any change in the capital of the Company or any of its Subsidiaries, or, other than in the course of business, any grants under any stock compensation plan, and (d) there has not been any Material Adverse Change in the Company's long-term or short-term debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9. <u>Authorized Capital; Options, etc</u>. The Company had, at the date or dates indicated in the Registration Statement, the Pricing Disclosure Package and the Prospectus, the duly authorized, issued and outstanding capitalization as set forth therein. Based on the assumptions stated in the Registration Statement, the Pricing Disclosure Package and the Prospectus, the Company will have on the Closing Date the adjusted capitalization set forth therein. Except as set forth in, or contemplated by, the Registration Statement, the Pricing Disclosure Package and the Prospectus, on the Effective Date, as of the Applicable Time and on the Closing Date and any Option Closing Date, there are no options, warrants, or other rights to purchase or otherwise acquire any authorized, but unissued Common Stock or any security convertible or exercisable into Common Stock, or any contracts or commitments to issue or sell Common Stock or any such options, warrants, rights or convertible securities. All the outstanding shares of capital stock or other equity interests of each Subsidiary owned, directly or indirectly, by the Company have been duly and validly authorized and issued, are fully paid and non-assessable and are owned directly or indirectly by the Company, free and clear of any lien, charge, encumbrance, security interest, restriction on voting or transfer or any other claim of any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10. <u>Valid Issuance of Securities, etc.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9.1. <u>Outstanding Securities</u>. All issued and outstanding securities of the Company issued prior to the transactions contemplated by this Agreement have been duly authorized and validly issued and are fully paid and non-assessable; the holders thereof have no rights of rescission with respect thereto, and are not subject to personal liability by reason of being such holders; and none of such securities were issued in violation of the preemptive rights of any holders of any security of the Company or similar contractual rights granted by the Company. The Common Stock, preferred stock, and any other securities outstanding or to be outstanding upon consummation of the Offering conform in all material respects to all statements relating thereto contained in the Registration Statement, the Pricing Disclosure Package and the Prospectus. The description of the Company's stock option and other stock plans or arrangements, and the options or other rights granted thereunder, set forth in the Registration Statement, the Pricing Disclosure Package and the Prospectus accurately and fairly presents the information required to be shown with respect to such plans, arrangements, options and rights. No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Shares. Except as set forth in the Registration Statement, the Pricing Disclosure Package and the Prospectus, there are no stockholders agreements, voting agreements or other similar agreements with respect to the Common Stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company's stockholders. The offers and sales of the outstanding Common Stock were at all relevant times either registered under the Securities Act and the applicable state securities or "blue sky" laws or, based in part on the representations and warranties of the purchasers of such shares, exempt from such registration requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.2. <u>Securities Sold Pursuant to this Agreement</u>. The Shares have been duly authorized for issuance and sale and, when issued and paid for, will be validly issued, fully paid and non-assessable; the holders thereof are not and will not be subject to personal liability by reason of being such holders; the Shares are not and will not be subject to the preemptive rights of any holders of any security of the Company or similar contractual rights granted by the Company; and all corporate action required to be taken for the authorization, issuance and sale of the Shares has been duly and validly taken. The Shares conform in all material respects to all statements with respect thereto contained in the Registration Statement, the Pricing Disclosure Package and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.3. <u>Stock Options</u>. With respect to the stock options (the "**Stock Options**") granted pursuant to the stock-based compensation plans of the Company and its subsidiaries (the "**Company Stock Plans**"), (i) each Stock Option intended to qualify as an "incentive stock option" under Section 422 of the Internal Revenue Code of 1986, as amended (the "**Code**"), so qualifies, (ii) each grant of a Stock Option was duly authorized no later than the date on which the grant of such Stock Option was by its terms to be effective by all necessary corporate action, including, as applicable, approval by the board of directors of the Company (or a duly constituted and authorized committee thereof) and any required stockholder approval by the necessary number of votes or written consents, and the award agreement governing such grant (if any) was duly executed and delivered by each party thereto, (iii) each such grant was made in accordance with the terms of the Company Stock Plans, the Exchange Act and all other applicable laws and regulatory rules or requirements, including the rules of the Exchange, and (iv) each such grant was properly accounted for in accordance with GAAP in the financial statements (including the related notes) of the Company. The Company has not knowingly granted, and there is no and has been no policy or practice of the Company of granting, Stock Options prior to, or otherwise coordinating the grant of Stock Options with, the release or other public announcement of material information regarding the Company or its subsidiaries or their results of operations or prospects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11. <u>Registration Rights of Third Parties</u>. Except as set forth in the Registration Statement, the Pricing Disclosure Package and the Prospectus, no holders of any securities of the Company or any rights exercisable for or convertible or exchangeable into securities of the Company have the right to require the Company to register any such securities of the Company under the Securities Act or to include any such securities in a registration statement to be filed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12. <u>Validity and Binding Effect of Agreements</u>. This Agreement has been duly authorized, executed and delivered by, and, when duly executed and delivered by the other parties hereto, is a valid and binding agreement of, the Company, enforceable in accordance with its terms, except as rights to indemnification hereunder may be limited by applicable law and except as the enforcement hereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13. <u>No Conflicts, etc</u>. The execution, delivery and performance by the Company of this Agreement, the consummation by the Company of the transactions herein contemplated and the compliance by the Company with the terms hereof do not and will not, with or without the giving of notice or the lapse of time or both: (i) result in a material breach of, or conflict with any of the terms and provisions of, or constitute a material default under, or result in the creation, modification, termination or imposition of any lien, charge or encumbrance upon any property or assets of the Company or any of its Subsidiaries pursuant to the terms of any agreement or instrument to which the Company or any of its Subsidiaries is a party; (ii) result in any violation of the provisions of the Company's articles of incorporation (as the same may be amended or restated from time to time, the "**Charter**") or the bylaws of the Company or the charter or by-laws or similar organizational documents of any of the Subsidiaries; or (iii) violate any existing applicable law, rule, regulation, judgment, order or decree of any Governmental Entity as of the date hereof, except in the case of clauses (i) and (iii) for such breach, conflict, default or violation which could not reasonably be expected to cause a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14. <u>No Defaults; Violations</u>. Except as set forth in the Registration Statement, the Pricing Disclosure Package and the Prospectus, no material default exists in the due performance and observance of any term, covenant or condition of any material license, contract, indenture, mortgage, deed of trust, note, loan or credit agreement, or any other agreement or instrument evidencing an obligation for borrowed money, or any other material agreement or instrument to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries may be bound or to which any of the properties or assets of the Company or any of its Subsidiaries is subject, except for any such default which could not reasonably be expected to cause a Material Adverse Change. The Company and each of its Subsidiaries are not in violation of any term or provision of their respective charters or bylaws or similar organizational documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15. <u>Corporate Power; Licenses; Consents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15.1. <u>Conduct of Business</u>. Except as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, the Company and each of its Subsidiaries have all requisite corporate power and authority, and have all necessary authorizations, approvals, orders, licenses, certificates and permits of and from all governmental regulatory officials and bodies that they need as of the date hereof to conduct their respective businesses in all material respects as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, except for the absence of which could not reasonably be expected to have a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15.2. <u>Transactions Contemplated Herein</u>. The Company has all corporate power and authority to enter into this Agreement and to carry out the provisions and conditions hereof, and all consents, authorizations, approvals and orders required in connection therewith have been obtained. No consent, authorization or order of, and no filing with, any court, government agency, the Exchange or other body is required for the valid issuance, sale and delivery of the Shares and the consummation of the transactions and agreements contemplated by this Agreement and as contemplated by the Registration Statement, the Pricing Disclosure Package and the Prospectus, except with respect to applicable Securities Act Regulations, the necessary filings and approvals from the Exchange to list the Shares, state securities laws, the rules and regulations of the Financial Industry Regulatory Authority, Inc. ("**FINRA**") and such consents, authorizations, approvals and orders the failure of which to make or obtain is not reasonably likely to result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16. <u>D&O Questionnaires</u>. To the Company's knowledge, all information contained in the questionnaires (the "**Questionnaires**") completed by each of the Company's directors and officers prior to the Offering (the "**Insiders**") as supplemented by all information concerning the Company's directors, officers and principal stockholders as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, provided to the Underwriters, is true and correct in all material respects and the Company has not become aware of any information which could cause the information disclosed in the Questionnaires to become materially inaccurate and incorrect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17. <u>Litigation; Governmental Proceedings</u>. There is no action, suit, proceeding, inquiry, arbitration, investigation, litigation or governmental proceeding pending or, to the Company's knowledge, threatened against, or involving the Company or any of its Subsidiaries, or, to the Company's knowledge, any executive officer or director which has not been disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change or materially and adversely affect the power or ability of the Company to perform its obligations under this Agreement or to consummate the transactions contemplated by each of the Registration Statement, the Pricing Disclosure Package and the Prospectus*.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18. <u>Organization and Good Standing</u>. The Company and each of its Subsidiaries have been duly organized and are validly existing and are in good standing under the laws of their respective jurisdictions of organization as of the date hereof, and are duly qualified to do business and are in good standing in each jurisdiction in which their respective ownership or lease of property or the conduct of their respective businesses requires such qualification, and have all power and authority necessary to own or hold their respective properties and to conduct the businesses in which they are engaged, except where the failure to qualify, singularly or in the aggregate, would not have or could not reasonably be expected to result in a Material Adverse Change. The Company's ownership and control of each Subsidiary is as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus. The Company does not own or control, directly or indirectly, any corporation, association or other entity other than the subsidiaries listed in Exhibit 21.1 to the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19. <u>Insurance</u>. The Company and each of its Subsidiaries carry or are entitled to the benefits of insurance (including, without limitation, as to directors and officers insurance coverage), with, to the Company's knowledge, reputable insurers, in the amount of directors and officers insurance coverage that the Company believes is reasonable and all such insurance is in full force and effect. The Company has no reason to believe that it or any of its Subsidiaries will not be able (i) to renew their respective existing insurance coverage as and when such policies expire or (ii) to obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct their respective businesses as now conducted and at a cost that could not reasonably be expected to result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20. <u>Transactions Affecting Disclosure to FINRA</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19.1. <u>Finder's Fees</u>. Except as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, there are no claims, payments, arrangements, agreements or understandings relating to the payment of a finder's, consulting or origination fee by the Company or, to the Company's knowledge, by any Insider with respect to the sale of the Shares hereunder or any other arrangements, agreements or understandings of the Company or, to the Company's knowledge, any of its stockholders that may affect the Underwriters' compensation, as determined by FINRA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20.2. <u>Payments Within Twelve (12) Months</u>. Except as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, the Company has not made any direct or indirect payments (in cash, securities or otherwise) in connection with the Offering to: (i) any person, as a finder's fee, consulting fee or otherwise, in consideration of such person raising capital for the Company or introducing to the Company persons who raised or provided capital to the Company; (ii) any FINRA member; or (iii) any person or entity that has any direct or indirect affiliation or association with any FINRA member, within the twelve (12) months immediately prior to the Effective Date, other than the payment to the Underwriters as provided hereunder in connection with the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20.3. <u>Use of Proceeds</u>. None of the net proceeds of the Offering will be paid by the Company to any participating FINRA member or its affiliates, except as specifically authorized herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20.4. <u>FINRA Affiliation</u>. To the Company's knowledge, and except as may otherwise be disclosed in FINRA questionnaires provided to the Representatives' Counsel, there is no (i) officer or director of the Company, (ii) beneficial owner of 10% or more of any class of the Company's securities or (iii) beneficial owner of the Company's unregistered equity securities which were acquired during the 180-day period immediately preceding the filing of the Registration Statement that is an affiliate or associated person of a FINRA member participating in the Offering (as determined in accordance with the rules and regulations of FINRA).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20.5. <u>Information</u>. To the Company's knowledge, all information provided by the Company in its FINRA questionnaire to Representatives' Counsel specifically for use by Representatives' Counsel in connection with its Public Offering System filings (and related disclosure) with FINRA is true, correct and complete in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21. <u>Foreign Corrupt Practices Act</u>. None of the Company or any its Subsidiaries, have, and, to the Company's knowledge, no director, officer, agent, employee or affiliate of the Company or its Subsidiaries or any other person acting on behalf of, and with authority from, the Company or its Subsidiaries, has, directly or indirectly, given or agreed to give any money, gift or similar benefit (other than legal price concessions to customers in the ordinary course of business) to any customer, supplier, employee or agent of a customer or supplier, or official or employee of any governmental agency or instrumentality of any government (domestic or foreign) or any political party or candidate for office (domestic or foreign) or other person who was, is, or may be in a position to help or hinder the business of the Company (or assist it in connection with any actual or proposed transaction) that (i) might subject the Company to any damage or penalty in any civil, criminal or governmental litigation or proceeding, (ii) if not given in the past, might have had a Material Adverse Change or (iii) if not continued in the future, might adversely affect the assets, business, operations or prospects of the Company. The Company has taken reasonable steps to ensure that its accounting controls and procedures are sufficient to cause the Company to comply in all material respects with the Foreign Corrupt Practices Act of 1977, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22. <u>Compliance with OFAC</u>. None of the Company or any of its Subsidiaries, and, to the Company's knowledge, no director, officer, agent, employee or affiliate of the Company or its Subsidiaries or any other person acting on behalf of, and with authority from, the Company or its Subsidiaries, is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury ("**OFAC**"), and the Company and its Subsidiaries will not, directly or indirectly, use the proceeds of the Offering hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.23. <u>Anti-Money Laundering Laws</u>. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance in all material respects with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the anti-money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Entity (collectively, the "**Anti-Money Laundering Laws**"); and no action, suit or proceeding by or before any Governmental Entity involving the Company with respect to the Anti-Money Laundering Laws is pending or, to the Company's knowledge, threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24. <u>Officers' Certificate</u>. Any certificate signed by any duly authorized officer of the Company and delivered to the Representatives or to Representatives' Counsel shall be deemed a representation and warranty by the Company to the Underwriters as to the matters covered thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.25. <u>Lock-Up Agreements</u>. <u>Schedule 3</u> hereto contains a complete and accurate list of the Company's officers, directors, director nominees and each owner of the Company's outstanding Common Stock (or securities convertible or exercisable into Common Stock) (collectively, the "**Lock-Up Parties**"), and the duration of lock-up that such Lock-Up Parties are subject to. The Company has caused each of the Lock-Up Parties to deliver to the Representatives an executed Lock-Up Agreement, in a form substantially similar to that attached hereto as <u>Exhibit A</u> (the "**Lock-Up Agreement**"), on or prior to the execution of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.26. <u>Cybersecurity; Data Protection</u>. The Company and its Subsidiaries' information technology assets and equipment, computers, systems, networks, hardware, software, websites, applications, and databases (collectively, "**IT Systems**") are adequate for, and operate and perform in all material respects as required in connection with the operation of the business of the Company and its Subsidiaries as currently conducted, in each case, to the knowledge of the Company, free and clear of all material bugs, errors, defects, Trojan horses, time bombs, malware and other corruptants. The Company and its Subsidiaries have implemented and maintained commercially reasonable controls, policies, procedures, and safeguards designed to maintain and protect their material confidential information and the integrity, continuous operation, redundancy and security of the IT Systems and data (including all personal, personally identifiable, sensitive, confidential or regulated data ("**Personal Data**") used in connection with their businesses, and, to the knowledge of the Company, there have been no breaches, violations, outages or unauthorized uses of or accesses to any IT Systems or Personal Data, except for those that have been remedied without material cost or liability or the duty to notify any other person, nor any incidents under internal review or investigations relating to the same. The Company and its Subsidiaries are presently in material compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems and Personal Data and to the protection of such IT Systems and Personal Data from unauthorized use, access, misappropriation or modification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.27. <u>Related Party Transactions</u>. There are no business relationships or related party transactions involving the Company or any other person required to be described in the Registration Statement, the Pricing Disclosure Package and the Prospectus that have not been described as required by the Securities Act Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.28. <u>Board of Directors</u>. The Board of Directors of the Company is comprised of the persons set forth under the heading of the Pricing Prospectus and the Prospectus captioned "Management." The qualifications of the persons serving as board members and the overall composition of the board comply with the Exchange Act, the Exchange Act Regulations, the Sarbanes-Oxley Act of 2002 and the rules promulgated thereunder (the "**Sarbanes-Oxley Act**") applicable to the Company and the listing rules of the Exchange, including the phase-in rules of the Exchange. At least one member of the Audit Committee of the Board of Directors of the Company qualifies as an "audit committee financial expert," as such term is defined under Regulation S-K and the listing rules of the Exchange. In addition, at least a majority of the persons serving on the Board of Directors qualify as "independent," as defined under the listing rules of the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.29. <u>Sarbanes-Oxley Compliance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.29.1. <u>Disclosure Controls</u>. Except as disclosed in the Registration Statement, Pricing Disclosure Package and the Prospectus, the Company has developed and currently maintains disclosure controls and procedures that will comply in all material respects with Rule 13a-15 or 15d-15 under the Exchange Act Regulations, and such controls and procedures are effective to ensure that all material information concerning the Company will be made known on a timely basis to the individuals responsible for the preparation of the Company's Exchange Act filings and other public disclosure documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.29.2. <u>Compliance</u>. The Company is, or at the Applicable Time, and on the Closing Date and Option Closing Date (if any), will be, in material compliance with the provisions of the Sarbanes-Oxley Act applicable to it, and has implemented or will implement such programs and has taken reasonable steps to ensure the Company's future compliance (not later than the relevant statutory and regulatory deadlines therefor) with all of the material provisions of the Sarbanes-Oxley Act then applicable to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.30. <u>Accounting Controls</u>. Except as disclosed in the Registration Statement, Pricing Disclosure Package and the Prospectus, the Company maintains a system of "internal control over financial reporting" (as defined under Rules 13a-15 and 15d-15 under the Exchange Act Regulations) that complies in all material respects with the requirements of the Exchange Act and has been designed by, or under the supervision of, its principal executive and principal financial officers, or persons performing similar functions, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP, including, but not limited to, internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management's general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus, the Company is not aware of any material weaknesses in its internal control over financial reporting, and, if applicable, with respect to such remedial actions disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus, the Company represents that it has taken all remedial actions set forth in such disclosure. To the Company's knowledge, the Company's auditors and the Audit Committee of the Board of Directors of the Company have been advised of: (i) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are known to the Company's management and that have adversely affected or are reasonably likely to adversely affect the Company' ability to record, process, summarize and report financial information; and (ii) any fraud known to the Company's management, whether or not material, that involves management or other employees who have a significant role in the Company's internal controls over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.31. <u>No Investment Company Status</u>. The Company is not and, after giving effect to the Offering and the application of the proceeds thereof as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, will not be, required to register as an "investment company," as defined in the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.32. <u>No Labor Disputes</u>. No labor dispute with the employees of the Company or any of its Subsidiaries exists or, to the knowledge of the Company, is contemplated or threatened, and the Company is not aware of any existing or imminent labor disturbance by, or dispute with, the employees of any of its or its Subsidiaries' principal suppliers, contractors or customers, except as would not result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.33. <u>Intellectual Property Rights</u>. The Company and each of its Subsidiaries own or possess or have valid rights to use all patents, patent applications, trademarks, service marks, trade names, trademark registrations, service mark registrations, copyrights, licenses, inventions, trade secrets and similar rights ("**Intellectual Property Rights**") necessary for the conduct of the business of the Company or the Subsidiary, as applicable, as currently carried on and as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, except where the failure to own, possess or have valid rights to use any of the foregoing could not reasonably be expected to result in a Material Adverse Change. To the knowledge of the Company, no action or use by the Company or any of its Subsidiaries necessary for the conduct of its business as currently carried on and as described in the Registration Statement and the Prospectus could reasonably be expected to involve or give rise to any infringement of, or license or similar fees for, any Intellectual Property Rights of others, except as could not reasonably be expected to result, individually or in the aggregate, in a Material Adverse Change. The Company and its Subsidiaries have not received any written notice alleging any such infringement, fee or conflict with asserted Intellectual Property Rights of others. Except as could not reasonably be expected to result, individually or in the aggregate, in a Material Adverse Change (A) to the knowledge of the Company, there is no infringement, misappropriation or violation by third parties of any of the Intellectual Property Rights owned by the Company or any of its Subsidiaries; (B) there is no pending or, to the knowledge of the Company, threatened action, suit, proceeding or claim by others challenging the rights of the Company or any of its Subsidiaries in or to any such Intellectual Property Rights, and the Company is unaware of any facts which could form a reasonable basis for any such claim, that could, individually or in the aggregate, together with any other claims in this <u>Section 2.33</u>, reasonably be expected to result in a Material Adverse Change; (C) the Intellectual Property Rights owned by the Company and each of its Subsidiaries, and, to the knowledge of the Company, the Intellectual Property Rights licensed to the Company and its Subsidiaries have not been adjudged by a court of competent jurisdiction invalid or unenforceable, in whole or in part, and there is no pending or, to the Company's knowledge, threatened action, suit, proceeding or claim by others challenging the validity or scope of any such Intellectual Property Rights, and the Company is unaware of any facts which could form a reasonable basis for any such claim that could, individually or in the aggregate, together with any other claims in this <u>Section 2.33</u>, reasonably be expected to result in a Material Adverse Change; (D) there is no pending or, to the Company's knowledge, threatened action, suit, proceeding or claim by others that the Company or any of its Subsidiaries infringes, misappropriates or otherwise violates any Intellectual Property Rights or other proprietary rights of others, the Company has not received any written notice of such claim and the Company is unaware of any other facts which could form a reasonable basis for any such claim that could, individually or in the aggregate, together with any other claims in this <u>Section 2.33</u>, reasonably be expected to result in a Material Adverse Change; and (E) to the Company's knowledge, no employee of the Company or any of its Subsidiaries is in or has ever been in violation in any material respect of any term of any employment contract, patent disclosure agreement, invention assignment agreement, non-competition agreement, non-solicitation agreement, nondisclosure agreement or any restrictive covenant to or with a former employer where the basis of such violation relates to such employee's employment with the Company or the Subsidiary, as applicable, or actions undertaken by the employee while employed with the Company or the Subsidiary, as applicable, and could reasonably be expected to result, individually or in the aggregate, in a Material Adverse Change. To the Company's knowledge, all material technical information developed by and belonging to the Company or any of its Subsidiaries which has not been patented has been kept confidential. The Company and its Subsidiaries are not a party to or bound by any options, licenses or agreements with respect to the Intellectual Property Rights of any other person or entity that are required to be set forth in the Registration Statement, the Pricing Disclosure Package and the Prospectus and are not described therein. The Registration Statement, the Pricing Disclosure Package and the Prospectus contain in all material respects the same description of the matters set forth in the preceding sentence. None of the technology employed by the Company or any of its Subsidiaries has been obtained or is being used by the Company or a Subsidiary, as applicable, in material violation of any contractual obligation binding on the Company or the Subsidiary, as applicable, or, to the Company's knowledge, any of its officers, directors or employees, or otherwise in violation of the rights of any persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.34. <u>Taxes</u>. The Company and each of its Subsidiaries has filed all returns (as hereinafter defined) required to be filed with taxing authorities prior to the date hereof or has duly obtained extensions of time for the filing thereof, except in any case in which the failure so to file such returns, individually or in the aggregate, would not reasonably be expected to cause a Material Adverse Change. The Company and each of its Subsidiaries have paid all taxes (as hereinafter defined) shown as due on such returns that were filed and has paid all taxes imposed on or assessed against the Company or Subsidiary, as applicable, except for any such taxes that are currently being contested in good faith or as would not reasonably be expected to cause a Material Adverse Change. The provisions for taxes payable, if any, shown on the financial statements filed with or as part of the Registration Statement are sufficient for all accrued and unpaid taxes, whether or not disputed, and for all periods to and including the dates of such consolidated financial statements. Except as disclosed in writing to the Underwriters, (i) no material issues have been raised (and are currently pending) by any taxing authority in connection with any of the returns or taxes asserted as due from the Company or its Subsidiaries, and (ii) no waivers of statutes of limitation with respect to the returns or collection of taxes have been given by or requested from the Company or its Subsidiaries. The term "**taxes**" means all federal, state, local, foreign and other net income, gross income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, license, lease, service, service use, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, windfall profits, customs, duties or other taxes, fees, assessments or charges of any kind whatever, together with any interest and any penalties, additions to tax or additional amounts with respect thereto. The term "returns" means all returns, declarations, reports, statements and other documents required to be filed in respect to taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.35. <u>ERISA Compliance</u>. (i) Each employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended ("**ERISA**"), for which the Company or any member of its "Controlled Group" (defined as any entity, whether or not incorporated, that is under common control with the Company within the meaning of Section 4001(a)(14) of ERISA or any entity that would be regarded as a single employer with the Company under Section 414(b),(c),(m) or (o) of the Code) would have any liability (each, a "**Plan**") has been maintained in compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations, including but not limited to ERISA and the Code; (ii) no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred with respect to any Plan, excluding transactions effected pursuant to a statutory or administrative exemption; (iii) for each Plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no Plan has failed (whether or not waived), or is reasonably expected to fail, to satisfy the minimum funding standards (within the meaning of Section 302 of ERISA or Section 412 of the Code) applicable to such Plan; (iv) no Plan is, or is reasonably expected to be, in "at risk status" (within the meaning of Section 303(i) of ERISA) and no Plan that is a "multiemployer plan" within the meaning of Section 4001(a)(3) of ERISA is in "endangered status" or "critical status" (within the meaning of Sections 304 and 305 of ERISA) (v) the fair market value of the assets of each Plan exceeds the present value of all benefits accrued under such Plan (determined based on those assumptions used to fund such Plan); (vi) no "reportable event" (within the meaning of Section 4043(c) of ERISA and the regulations promulgated thereunder) has occurred or is reasonably expected to occur; (vii) each Plan that is intended to be qualified under Section 401(a) of the Code is so qualified, and nothing has occurred, whether by action or by failure to act, which would cause the loss of such qualification; (viii) neither the Company nor any member of the Controlled Group has incurred, nor reasonably expects to incur, any liability under Title IV of ERISA (other than contributions to the Plan or premiums to the Pension Benefit Guarantee Corporation, in the ordinary course and without default) in respect of a Plan (including a "multiemployer plan" within the meaning of Section 4001(a)(3) of ERISA); and (ix) none of the following events has occurred or is reasonably likely to occur: (A) a material increase in the aggregate amount of contributions required to be made to all Plans by the Company or its Controlled Group affiliates in the current fiscal year of the Company and its Controlled Group affiliates compared to the amount of such contributions made in the Company's and its Controlled Group affiliates' most recently completed fiscal year; or (B) a material increase in the Company and its subsidiaries' "accumulated post-retirement benefit obligations" (within the meaning of Accounting Standards Codification Topic 715-60) compared to the amount of such obligations in the Company and its subsidiaries' most recently completed fiscal year, except in each case with respect to the events or conditions set forth in (i) through (ix) hereof, as would not, individually or in the aggregate, result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.36. <u>Compliance with Laws</u>. Except as otherwise disclosed in the Registration Statement, Pricing Disclosure Package and Prospectus and as could not, individually or in the aggregate, be expected to result in a Material Adverse Change, the Company and each of its Subsidiaries: (A) is and at all times has been in material compliance with all statutes, rules, or regulations applicable to the services provided by the Company ("**Applicable Laws**"), except as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Change; (B) has not received any warning letter, untitled letter or other written correspondence or written notice from any other governmental authority alleging or asserting noncompliance with any Applicable Laws or any licenses, certificates, approvals, clearances, authorizations, permits and supplements or amendments thereto required by any such Applicable Laws ("**Authorizations**"); (C) possesses all material Authorizations and such material Authorizations are valid and in full force and effect and are not in material violation of any term of any such Authorizations; (D) has not received written notice of any claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from any governmental authority or third party alleging that any product operation or activity is in violation of any Applicable Laws or Authorizations and has no knowledge that any such governmental authority or third party is considering any such claim, litigation, arbitration, action, suit, investigation or proceeding that if brought could result in a Material Adverse Change; (E) has not received written notice that any Governmental Authority has taken, is taking or intends to take action to limit, suspend, modify or revoke any Authorizations and has no knowledge that any such Governmental Authority is threatening such action; (F) has filed, obtained, maintained or submitted all material reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments as required by any Applicable Laws or Authorizations and that all such reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments were complete and correct in all material respects on the date filed (or were corrected or supplemented by a subsequent submission); and (G) has not, either voluntarily or involuntarily, initiated, conducted, or issued or caused to be initiated, conducted or issued, any recall, market withdrawal or replacement, safety alert, post-sale warning, or other notice or action relating to the alleged lack of safety of any product or any alleged product defect or violation and, to the Company's knowledge, no third party has initiated, conducted or intends to initiate any such notice or action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.37. <u>Ineligible Issuer</u>. At the time of filing the Registration Statement and any amendment thereto, at the time of effectiveness of the Registration Statement and any amendment thereto, at the earliest time thereafter that the Company or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) of the Securities Act Regulations) of the Shares and at the date hereof, the Company was not and is not an "ineligible issuer," as defined in Rule 405, without taking account of any determination by the Commission pursuant to Rule 405 that it is not necessary that the Company be considered an ineligible issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.38. <u>Real Property</u>. Except as set forth in the Registration Statement, the Pricing Disclosure Package and the Prospectus, the Company and each of its Subsidiaries have good and marketable title in fee simple to, or have valid rights to lease or otherwise use, all items of real or personal property which are material to the business of the Company or the Subsidiary, as applicable, in each case free and clear of all liens, encumbrances, security interests, claims and defects that do not, singly or in the aggregate, materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company or the Subsidiary, as applicable; and all of the leases and subleases material to the business of the Company and its Subsidiaries and under which the Company holds properties described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, are, to the Company's knowledge, in full force and effect, and the Company and its Subsidiaries have not received any written notice of any material claim of any sort that has been asserted by anyone adverse to the rights of the Company or the Subsidiary, as applicable, under any of the leases or subleases mentioned above, or affecting or questioning the rights of the Company or the Subsidiary, as applicable, to the continued possession of the leased or subleased premises under any such lease or sublease, which could result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.39. <u>Contracts Affecting Capital</u>. There are no transactions, arrangements or other relationships between and/or among the Company, any of its affiliates (as such term is defined in Rule 405 of the Securities Act Regulations) and any unconsolidated entity, including, but not limited to, any structured finance, special purpose or limited purpose entity that could reasonably be expected to materially affect the Company's or its Subsidiaries' liquidity or the availability of or requirements for their capital resources required to be described in the Registration Statement, the Pricing Disclosure Package and the Prospectus which have not been described or incorporated by reference therein as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.40. <u>Loans to Directors or Officers</u>. There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or guarantees or indebtedness by the Company or its Subsidiaries to or for the benefit of any of the officers or directors of the Company, its Subsidiaries, or any of their respective family members, except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.41. <u>Industry Data; Forward-looking statements</u>. The statistical and market-related data included in each of the Registration Statement, the Pricing Disclosure Package and the Prospectus are based on or derived from sources that the Company reasonably and in good faith believes are reliable and accurate or represent the Company's good faith estimates that are made on the basis of data derived from such sources. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) contained in the Prospectus has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.42. <u>Electronic Road Show</u>. The Company has made available a Bona Fide Electronic Road Show in compliance with Rule 433(d)(8)(ii) of the Securities Act Regulations such that no filing of any "road show" (as defined in Rule 433(h) of the Securities Act Regulations) is required in connection with the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.43. <u>Margin Securities</u>. The Company owns no "margin securities" as that term is defined in Regulation U of the Board of Governors of the Federal Reserve System (the "**Federal Reserve Board**"), and none of the proceeds of Offering will be used, directly or indirectly, for the purpose of purchasing or carrying any margin security, for the purpose of reducing or retiring any indebtedness which was originally incurred to purchase or carry any margin security or for any other purpose which might cause any of the Common Stock to be considered a "purpose credit" within the meanings of Regulation T, U or X of the Federal Reserve Board*.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.44. <u>Dividends and Distributions</u>. Except as disclosed in the Pricing Disclosure Package, Registration Statement and the Prospectus, no Subsidiary of the Company is currently prohibited or restricted, directly or indirectly, from paying any dividends to the Company, from making any other distribution on such Subsidiary's capital stock, from repaying to the Company any loans or advances to such Subsidiary from the Company or from transferring any of such Subsidiary's property or assets to the Company or any other Subsidiary of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.45. <u>Lending Relationships</u>. Except as disclosed in the Pricing Disclosure Package, Registration Statement and the Prospectus, the Company (i) does not have any material lending or other relationship with any bank or lending affiliate of the Underwriters, and (ii) does not intend to use any of the proceeds from the sale of the Securities hereunder to repay any outstanding debt owed to any affiliate of the Underwriters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.46. <u>No Stabilization</u>. Neither the Company nor any of its Subsidiaries or affiliates has taken, directly or indirectly, any action designed to or that could reasonably be expected to cause or result in any stabilization or manipulation of the price of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.47. <u>No Integration</u>. Neither the Company nor any of its affiliates, nor any person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause the Offering to be integrated with prior offerings by the Company for purposes of the Securities Act that would require the registration of any such securities under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.48. <u>Confidentiality and Non-Competitions</u>. To the Company's knowledge, no director, officer, key employee or any Subsidiary is subject to any confidentiality, non-disclosure, non-competition agreement or non-solicitation agreement with any employer, other than the Company, or prior employer that could materially affect his or her ability to be and act in his or her respective capacity of the Company or such Subsidiary or be expected to result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.49. <u>Emerging Growth Company</u>. From the time of the initial submission of the Registration Statement to the Commission (or, if earlier, the first date on which the Company engaged directly in or through any person authorized to act on its behalf in any Testing-the-Waters Communication (defined below) through the date hereof, the Company has been and is an "emerging growth company," as defined in Section 2(a) of the Securities Act (an "**Emerging Growth Company**"). "**Testing-the-Waters Communication**", if any, means any oral or written communication with potential investors undertaken in reliance on Section 5(d) of the Securities Act. The Company has not (i) alone engaged in any Testing-the-Waters Communications, other than Testing-the-Waters Communications with the written consent of the Representatives and with entities that are qualified institutional buyers within the meaning of Rule 144A under the Securities Act or institutions that are accredited investors within the meaning of Rule 501 under the Securities Act and (ii) authorized anyone other than the Representatives to engage in Testing-the-Waters Communications. The Company confirms that the Representatives have been authorized to act on its behalf in undertaking Testing-the-Waters Communications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.50. <u>Environmental Laws</u>. To the Company's knowledge, the Company has operated, in all material respects, in compliance with applicable foreign, federal, state and local rules, laws and regulations relating to its use, treatment, storage and disposal of hazardous or toxic substances or waste and protection of health and safety or the environment in the ordinary course of its businesses (the "**Environmental Laws**"), except where the failure to comply would not, singularly or in the aggregate, result in a Material Adverse Change. To the Company's knowledge, there has been no material storage, generation, transportation, handling, treatment, disposal, discharge, emission, or other release of any kind of hazardous or toxic substances or waste by, due to, or caused by the Company (or, to the Company's knowledge, any other entity for whose acts or omissions the Company is or may otherwise be liable) upon any of the property now or previously owned or leased by the Company, or upon any other property, in violation of any law, statute, ordinance, rule, regulation, order, judgment, decree or permit or which would, under any law, statute, ordinance, rule (including rule of common law), regulation, order, judgment, decree or permit, reasonably be expected to give rise to any material liability, except for any violation or liability which would not have, singularly or in the aggregate with all such violations and liabilities, a Material Adverse Change. Further, to the Company's knowledge, there has been no disposal, discharge, emission or other release of any reasonably expected kind onto such property or into the environment surrounding such property of any toxic or other hazardous substances with respect to which the Company has knowledge, except for any such disposal, discharge, emission, or other release of any kind which would not have, singularly or in the aggregate with all such discharges and other releases, a Material Adverse Change. In the ordinary course of business, the Company conducts periodic reviews of the effect of Environmental Laws on its business and assets, in the course of which it identifies and evaluates associated costs and liabilities (including, without limitation, any capital or operating expenditures required for clean-up, closure of properties or compliance with Environmental Laws or governmental permits issued thereunder, any related constraints on operating activities and any potential liabilities to third parties). On the basis of such reviews, the Company reasonably believes that such associated costs and liabilities would not, either singularly or in the aggregate, be expected to cause a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.51. <u>Corporate Records</u>. The minute books of the Company have been made available to the Representatives and Representatives' Counsel and such books (i) contain minutes of all material meetings and actions of the Board of Directors (including each board committee) and stockholders of the Company, and (ii) reflect all material transactions referred to in such minutes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.52. <u>Diligence Materials</u>. The Company has provided to the Representatives and Representatives' Counsel all materials required or necessary to respond in all material respects to the diligence request submitted in writing to the Company by the Representatives.

3. <u>Covenants of the Company</u>. The Company covenants and agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>Amendments to Registration Statement</u>. The Company shall deliver to the Representatives, prior to filing, any amendment or supplement to the Registration Statement or Prospectus proposed to be filed after the Effective Date and not file any such amendment or supplement to which the Representatives shall reasonably object in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Federal Securities Laws</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.1. <u>Compliance</u>. The Company, subject to <u>Section 3.2.2</u>, shall comply with the requirements of Rule 430A of the Securities Act Regulations, and will notify the Representatives promptly, and confirm the notice in writing, (i) when any post-effective amendment to the Registration Statement shall become effective or any amendment or supplement to the Prospectus shall have been filed; (ii) of the receipt of any comments from the Commission; (iii) of any request by the Commission for any amendment to the Registration Statement or any amendment or supplement to the Prospectus or for additional information; (iv) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or any post-effective amendment or of any order preventing or suspending the use of any Preliminary Prospectus or the Prospectus, or of the suspension of the qualification of the Shares for offering or sale in any jurisdiction, or of the initiation or threatening of any proceedings for any of such purposes or of any examination pursuant to Section 8(d) or 8(e) of the Securities Act concerning the Registration Statement and (v) if the Company becomes the subject of a proceeding under Section 8A of the Securities Act in connection with the Offering of the Shares. The Company shall effect all filings required under Rule 424(b) of the Securities Act Regulations, in the manner and within the time period required by Rule 424(b) (without reliance on Rule 424(b)(8)), and shall take such steps as it deems necessary to ascertain promptly whether the form of prospectus transmitted for filing under Rule 424(b) was received for filing by the Commission and, in the event that it was not, it will promptly file such prospectus. The Company shall use its reasonable best efforts to prevent the issuance of any stop order, prevention or suspension and, if any such order is issued, to obtain the lifting thereof at the earliest possible moment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.2. <u>Continued Compliance</u>. The Company shall comply with the Securities Act, the Securities Act Regulations, the Exchange Act and the Exchange Act Regulations so as to permit the completion of the distribution of the Shares as contemplated in this Agreement and in the Registration Statement, the Pricing Disclosure Package and the Prospectus. If at any time when a prospectus relating to the Shares is (or, but for the exception afforded by Rule 172 of the Securities Act Regulations ("**Rule 172**"), would be) required by the Securities Act to be delivered in connection with sales of the Shares, any event shall occur or condition shall exist as a result of which it is necessary, in the opinion of counsel for the Underwriters or for the Company, to (i) amend the Registration Statement in order that the Registration Statement will not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) amend or supplement the Pricing Disclosure Package or the Prospectus in order that the Pricing Disclosure Package or the Prospectus, as the case may be, will not include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein not misleading in the light of the circumstances existing at the time it is delivered to a purchaser or (iii) amend the Registration Statement or amend or supplement the Pricing Disclosure Package or the Prospectus, as the case may be, in order to comply with the requirements of the Securities Act or the Securities Act Regulations, the Company will promptly (A) give the Representatives notice of such event; (B) prepare any amendment or supplement as may be necessary to correct such statement or omission or to make the Registration Statement, the Pricing Disclosure Package or the Prospectus comply with such requirements and, a reasonable amount of time prior to any proposed filing or use, furnish the Representatives with copies of any such amendment or supplement and (C) file with the Commission any such amendment or supplement; *provided* that the Company shall not file or use any such amendment or supplement to which the Representatives or Representatives' Counsel shall reasonably object. The Company will furnish to the Underwriters such number of copies of such amendment or supplement as the Underwriters may reasonably request. The Company has given the Representatives notice of any filings made pursuant to the Exchange Act or the Exchange Act Regulations prior to the Applicable Time. The Company shall give the Representatives notice of its intention to make any such filing from the Applicable Time until the later of the Closing Date and the exercise in full or expiration of the Over-allotment Option specified in <u>Section 1.2</u> hereof and will furnish the Representatives with copies of the related document(s) a reasonable amount of time prior to such proposed filing, as the case may be, and will not file or use any such document to which the Representatives or counsel for the Underwriters shall reasonably object.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.3. <u>Exchange Act Registration</u>. Until three (3) years after the date of this Agreement, the Company shall use its commercially reasonable efforts to maintain the registration of the Common Stock under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.4. <u>Free Writing Prospectuses</u>. The Company agrees that, unless it obtains the prior consent of the Representatives, it shall not make any offer relating to the Shares that would constitute an Issuer Free Writing Prospectus or that would otherwise constitute a "free writing prospectus," or a portion thereof, required to be filed by the Company with the Commission or retained by the Company under Rule 433; *provided* that the Representatives shall be deemed to have consented to each Issuer General Use Free Writing Prospectus set forth in <u>Schedule 2-B</u>. The Company represents that it has treated or agrees that it will treat each such free writing prospectus consented to, or deemed consented to, by the Underwriters as an "issuer free writing prospectus," as defined in Rule 433, and that it has complied and will comply with the applicable requirements of Rule 433 with respect thereto, including timely filing with the Commission where required, legending and record keeping. If at any time following issuance of an Issuer Free Writing Prospectus there occurred or occurs an event or development as a result of which such Issuer Free Writing Prospectus conflicted or would conflict with the information contained in the Registration Statement or included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at that subsequent time, not misleading, the Company will promptly notify the Underwriters and will promptly amend or supplement, at its own expense, such Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue statement or omission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.5. <u>Testing-the-Waters Communications</u>. If at any time following the distribution of any Written Testing-the-Waters Communication there occurred or occurs an event or development as a result of which such Written Testing-the-Waters Communication included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at that subsequent time, not misleading, the Company shall promptly notify the Representatives and shall promptly amend or supplement, at its own expense, such Written Testing-the-Waters Communication to eliminate or correct such untrue statement or omission. The Company has not distributed any Testing-the-Waters Communication that is a written communication within the meaning of Rule 405 under the Securities Act ("**Written Testing-the-Waters Communication**") other than those listed on <u>Schedule 2-C</u> hereto. "**Testing-the-Waters Communication**" means any communication with potential investors undertaken in reliance on <u>Section 1.1.2</u> and <u>Section 1.2.3</u> or Rule 163B of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. <u>Delivery to the Underwriters of Registration Statements</u>. The Company has delivered or made available or shall deliver or make available to the Representatives and Representatives' Counsel, without charge, signed copies of the Registration Statement as originally filed and each amendment thereto (including exhibits filed therewith) and signed copies of all consents and certificates of experts, and upon request will also deliver to the Underwriters, without charge, a conformed copy of the Registration Statement as originally filed and each amendment thereto (without exhibits) for each of the Underwriters. The copies of the Registration Statement and each amendment thereto furnished to the Underwriters will be identical to the electronically transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. <u>Delivery to the Underwriters of Prospectuses</u>. The Company has delivered or made available or will deliver or make available to each Underwriter, without charge, as many copies of each Preliminary Prospectus as such Underwriter reasonably requested, and the Company hereby consents to the use of such copies for purposes permitted by the Securities Act. The Company will furnish to each Underwriter, without charge, during the period when a prospectus relating to the Shares is (or, but for the exception afforded by Rule 172, would be) required to be delivered under the Securities Act, such number of copies of the Prospectus (as amended or supplemented) as such Underwriter may reasonably request. The Prospectus and any amendments or supplements thereto furnished to the Underwriters will be identical to the electronically transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. <u>Effectiveness and Events Requiring Notice to the Representatives</u>. The Company shall use its commercially reasonable efforts to cause the Registration Statement covering the issuance of the Shares to remain effective with a current prospectus for at least nine (9) months after the Applicable Time, and shall notify the Representatives promptly and confirm the notice in writing: (i) of the cessation of the effectiveness of the Registration Statement and any amendment thereto; (ii) of the issuance by the Commission of any stop order or of the initiation, or the threatening, of any proceeding for that purpose; (iii) of the issuance by any state securities commission of any proceedings for the suspension of the qualification of the Shares for offering or sale in any jurisdiction or of the initiation, or the threatening, of any proceeding for that purpose; (iv) of the mailing and delivery to the Commission for filing of any amendment or supplement to the Registration Statement or Prospectus; (v) of the receipt of any comments or request for any additional information from the Commission; and (vi) of the happening of any event during the period described in this <u>Section 3.5</u> that, in the judgment of the Company, makes any statement of a material fact made in the Registration Statement, the Pricing Disclosure Package or the Prospectus untrue or that requires the making of any changes in (a) the Registration Statement in order to make the statements therein not misleading, or (b) in the Pricing Disclosure Package or the Prospectus in order to make the statements therein, in light of the circumstances under which they were made, not misleading. If the Commission or any state securities commission shall enter a stop order or suspend such qualification at any time, the Company shall use its commercially reasonable efforts to obtain promptly the lifting of such order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6. <u>Review of Financial Statements</u>. For a period of three (3) years after the date of this Agreement, the Company, at its expense, shall cause its regularly engaged independent registered public accounting firm to review (but not audit) the Company's financial statements for each of the three fiscal quarters immediately preceding the announcement of any quarterly financial information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7. <u>Listing</u>. The Company shall use its commercially reasonable efforts to maintain the listing of the Shares on the Exchange for at least three (3) years from the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8. <u>Reports to the Representatives</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.1. <u>Periodic Reports, etc</u>. For a period of three (3) years after the date of this Agreement, the Company shall furnish or make available to the Representatives copies of such financial statements and other periodic and special reports as the Company from time to time furnishes generally to holders of any class of its securities and also furnish or make available to the Representatives: (i) a copy of each periodic report the Company shall be required to file with the Commission under the Exchange Act and the Exchange Act Regulations; (ii) a copy of every press release and every news item and article with respect to the Company or its affairs which was released by the Company; (iii) a copy of each Current Report on Form 8-K prepared and filed by the Company; (iv) a copy of each registration statement filed by the Company under the Securities Act; and (v) such additional documents and information with respect to the Company and the affairs of any future subsidiaries of the Company as the Representatives may from time to time reasonably request; *provided* the Representatives shall sign, if requested by the Company, a Regulation FD compliant confidentiality agreement which is reasonably acceptable to the Representatives and Representatives's Counsel in connection with the Representatives' receipt of such information. Documents filed with the Commission pursuant to its EDGAR system shall be deemed to have been delivered to the Representatives pursuant to this <u>Section 3.8.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.2. <u>Transfer Agent; Transfer Sheets</u>. For a period of three (3) years after Closing Date, the Company shall retain a transfer agent and registrar acceptable to the Representatives (the "**Transfer Agent**") and shall furnish to the Representatives at the Company's sole cost and expense such transfer sheets of the Company's securities as the Representatives may reasonably request, including the daily and monthly consolidated transfer sheets of the Transfer Agent, DTC and DWAC. Colonial Stock Transfer is acceptable to the Representatives to act as Transfer Agent for the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9. <u>Payment of Expenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.1. <u>General Expenses Related to the Offering</u>. The Company hereby agrees to pay on each of the Closing Date and the Option Closing Date, if any, to the extent not paid at the Closing Date, all expenses incident to the performance of the obligations of the Company under this Agreement, including, but not limited to: (i) all filing fees and expenses relating to the registration of the securities with the Commission; (ii) all fees and expenses relating to the listing of the Company's common stock on a national exchange, if applicable; (iii) all fees, expenses and disbursements relating to the registration or qualification of the securities under the "blue sky" securities laws of such states and other jurisdictions as the Representatives may reasonably designate (including, without limitation, all filing and registration fees, and the reasonable fees and disbursements of the Company's "blue sky" counsel, which will be the Representatives' Counsel) unless such filings are not required in connection with the Company's proposed listing on a national exchange, if applicable; (iv) all fees, expenses and disbursements relating to the registration, qualification or exemption of the securities under the securities laws of such foreign jurisdictions as the Representatives may reasonably designate; (v) the costs of all mailing and printing of the Offering documents; (vi) transfer and/or stamp taxes, if any, payable upon the transfer of securities from the Company to the Representatives; (vii) the fees and expenses of the Company's accountants; (viii) $100,000 for legal fees and disbursements for the Representatives' Counsel; and (ix) a maximum of $100,000 for fees and expenses including: all filing fees and communication expenses associated with the review of the offering by FINRA; all fees, expenses and disbursements relating to the registration, qualification or exemption of securities offered under the securities laws of foreign jurisdictions designated by the Representatives; the underwriters' use of Ipreo's book-building, prospectus tracking and compliance software for the Offering; "road show" expenses for the Offering; and the costs associated with receiving commemorative mementos and lucite tombstones.

For the sake of clarity, it is understood and agreed that the Company shall be responsible for the Representatives' external counsel legal costs detailed in this Section irrespective of whether the Offering is consummated or not, subject to a $60,000 cap in the event that there is not a Closing. Additionally, the Company has provided an expense advance (the "**Advance**") to the Representatives of $70,000 paid upon the first filing of the Registration Statement. The advance shall be applied towards out-of-pocket accountable expense set forth herein and pursuant to <u>Section 7.3</u> and any portion of the Advance shall be returned back to the Company to the extent not actually incurred. The Representatives may deduct from the net proceeds of the Offering payable to the Company on the date of Closing, or the closing of the Over-Allotment Option, if any, the expenses set forth herein to be paid by the Company to the underwriters; *provided*, *however*, that in the event that the Offering is terminated, the Company agrees to reimburse the Underwriters pursuant to <u>Section 7.3</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.2. <u>Non-accountable Expenses</u>. The Company further agrees that, in addition to the expenses payable pursuant to <u>Section 3.9.1</u>, on the Closing Date it shall pay to the Representatives, by deduction from the net proceeds of the Offering contemplated herein, a non-accountable expense allowance equal to one percent (1%) of the gross proceeds received by the Company from the sale of the Shares (based on the offering price set forth on the cover page of the Prospectus).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10. <u>Application of Net Proceeds</u>. The Company shall apply the net proceeds from the Offering received by it in a manner consistent with the application thereof described under the caption "Use of Proceeds" in the Registration Statement, the Pricing Disclosure Package and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11. <u>Delivery of Earnings Statements to Security Holders</u>. The Company shall make generally available to its security holders as soon as practicable, an earnings statement (which need not be certified by independent registered public accounting firm unless required by the Securities Act or the Securities Act Regulations, but which shall satisfy the provisions of Rule 158(a) under Section 11(a) of the Securities Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12. <u>Stabilization</u>. Neither the Company nor, to its knowledge, any of its employees, directors or stockholders has taken or shall take, directly or indirectly, any action designed to or that has constituted or that might reasonably be expected to cause or result in, under Regulation M of the Exchange Act, or otherwise, stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13. <u>Internal Controls</u>. Except to the extent disclosed in the Registration Statement, Pricing Disclosure Package and Prospectus, the Company shall maintain a system of internal accounting controls sufficient to provide reasonable assurances that: (i) transactions are executed in accordance with management's general or specific authorization; (ii) transactions are recorded as necessary in order to permit preparation of financial statements in accordance with GAAP and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14. <u>Accountants</u>. As of the date of this Agreement, the Company has retained a nationally recognized, PCAOB-registered independent certified public accounting firm reasonably acceptable to the Representatives, and the Company shall use commercially reasonable efforts to continue to retain a nationally recognized, PCAOB-registered independent certified public accounting firm of comparable quality for a period of at least three (3) years after the Closing Date. The Representatives acknowledges that the Auditor is acceptable to the Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15. <u>FINRA</u>. For a period of sixty (60) days from the later of the Closing Date or the Option Closing Date, the Company shall advise the Representatives (who shall make an appropriate filing with FINRA) if it is or becomes aware that (i) any officer or director of the Company, (ii) any beneficial owner of 10% or more of any class of the Company's securities or (iii) any beneficial owner of the Company's unregistered equity securities which were acquired during the 180 days immediately preceding the filing of the original Registration Statement is or becomes an affiliate or associated person of a FINRA member participating in the Offering (as determined in accordance with the rules and regulations of FINRA).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16. <u>No Fiduciary Duties</u>. The Company acknowledges and agrees that the Underwriters' responsibility to the Company is solely contractual in nature and that none of the Underwriters or their affiliates or any selling agent shall be deemed to be acting in a fiduciary capacity, or otherwise owes any fiduciary duty to the Company or any of its affiliates in connection with the Offering and the other transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17. <u>Company Lock-Up</u>. The Company, on behalf of itself and any successor entity, agrees that, without the prior written consent of the Representatives, it will not, for a period of one hundred and eighty (180) days after the Closing Date (the "**Lock-Up Period**"), (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company; (ii) file or caused to be filed any registration statement with the Commission relating to the offering of any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company; (iii) complete any offering of debt securities of the Company, other than entering into a line of credit with a traditional bank, or (iv) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of capital stock of the Company, whether any such transaction described in clause (i), (ii), (iii) or (iv) above is to be settled by delivery of shares of capital stock of the Company or such other securities, in cash or otherwise. The restrictions contained in this section shall not apply to (i) the Shares to be sold hereunder; (ii) the issuance by the Company of Common Stock upon the exercise of an outstanding option or warrant or the conversion of a security outstanding on the date hereof or disclosed in the Registration Statement and the Pricing Disclosure Package, provided that, if requested by the Underwriter and agreed by the Company, the recipients of such Common Stock agree in writing to be bound by the terms of the Lock-Up Period; (iii) the issuance of shares of Common Stock issued as part of the purchase price in connection with the acquisitions or strategic transactions, provided certain conditions are met, or (iv) the issuance by the Company of any shares of Common Stock or standard options to purchase such shares to directors, officers, employees or consultants of the Company in their capacity as such pursuant to an Approved Stock Plan (as defined below), provided that, upon the Underwriter's determination, such shares or options shall be subject to the Lock-Up Period for one hundred and eighty (180) days after the Closing Date. "**Approved Stock Plan**" means any employee benefit plan which has been approved by the board of directors of the Company prior to or subsequent to the date hereof pursuant to which shares of Common Stock and standard options to purchase such shares may be issued to any employee, officer, director or consultant for services provided to the Company in their capacity as such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18. <u>Release of D&O Lock-up Period</u>. If the Representatives, in their sole discretion, agree to release or waive the restrictions set forth in the Lock-Up Agreements described in <u>Section 2.25</u> hereof for an officer or director or any shareholder of the Company and provide the Company with notice of the impending release or waiver at least three (3) Business Days before the effective date of the release or waiver, the Company agrees to announce the impending release or waiver by a press release through a major news service at least two (2) Business Days before the effective date of the release or waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.19. <u>Blue Sky Qualifications</u>. The Company shall use its commercially reasonable efforts, in cooperation with the Underwriters, if necessary, to qualify the Shares for offering and sale under the applicable securities laws of such states and other jurisdictions (domestic or foreign) as the Representatives may designate and to maintain such qualifications in effect so long as required to complete the distribution of the Shares; provided, however, that the Company shall not be obligated to file any general consent to service of process or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so qualified or to subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise so subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20. <u>Reporting Requirements</u>. The Company, during the period when a prospectus relating to the Shares is (or, but for the exception afforded by Rule 172, would be) required to be delivered under the Securities Act, will file all documents required to be filed with the Commission pursuant to the Exchange Act within the time periods required by the Exchange Act and Exchange Act Regulations. Additionally, the Company shall report the use of proceeds from the issuance of the Shares as may be required under Rule 463 under the Securities Act Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.21. <u>Public Relations Firm</u>. As of the date of this Agreement, the Company has retained a financial public relations firm reasonably acceptable to the Representatives and the Company, which firm shall be experienced in assisting issuers in public offerings of securities and in their relations with their security holders, and the Company shall retain such firm or another mutually acceptable firm for a period of at least two (2) years after the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.22. <u>Corporation Records Service</u>. As of the date hereof and for a period of three (3) years from the Closing Date, the Company shall have registered and shall continue to maintain its registration with the Corporation Records Service (including annual report information) published by the Standard & Poor's Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.23. <u>"Key Man" Life Insurance</u>. The Company shall have procured "key man" life insurance (in amounts discussed with the Representatives and with the Company as the sole beneficiary thereof) with an insurer rated at least AA or better in the most recent edition of "Best's Life Reports" on the lives of to be determined executive officer or officers of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.24. <u>Emerging Growth Company Status</u>. The Company shall promptly notify the Representatives if the Company ceases to be an Emerging Growth Company at any time prior to the later of (i) completion of the distribution of the Shares within the meaning of the Securities Act and (ii) fifteen (15) days following the completion of the Lock-Up Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.25. <u>Press Releases</u>. Prior to the Closing Date, the Company shall not issue any press release or other communication directly or indirectly or hold any press conference with respect to the Company, its condition, financial or otherwise, or earnings, business affairs or business prospects (except for routine oral marketing communications in the ordinary course of business and consistent with the past practices of the Company and of which the Representatives is notified), without the prior written consent of the Representatives, which consent shall not be unreasonably withheld, unless in the judgment of the Company and its counsel, and after notification to the Representatives, such press release or communication is required by law or requirement of the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.26. <u>Sarbanes-Oxley</u>. The Company shall at all times comply in all material respects with all applicable provisions of the Sarbanes-Oxley Act in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.27 <u>D&O Insurance</u>. The Company shall have procured Directors and Officers (D&O) insurance in a manner consistent with the Company's business and industry standards.

4. <u>Conditions of Underwriters' Obligations</u>. The obligations of the Underwriters to purchase and pay for the Shares, as provided herein, shall be subject to (i) the continuing accuracy of the representations and warranties of the Company as of the date hereof and as of each of the Closing Date and the Option Closing Date, if any; (ii) the accuracy of the statements of officers of the Company made pursuant to the provisions hereof; (iii) the performance by the Company of its obligations hereunder; and (iv) the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <u>Regulatory Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.1. <u>Effectiveness of Registration Statement; Rule 430A Information</u>. The Registration Statement has become effective not later than 5:30 p.m., Eastern time, on the date of this Agreement or such later date and time as shall be consented to in writing by the Representatives, and, at each of the Closing Date and any Option Closing Date, no stop order suspending the effectiveness of the Registration Statement or any post-effective amendment thereto shall have been issued under the Securities Act, no order preventing or suspending the use of any Preliminary Prospectus or the Prospectus has been issued and no proceedings for any of those purposes have been instituted or are pending or, to the Company's knowledge, contemplated by the Commission. The Company has complied with each request (if any) from the Commission for additional information. The Prospectus containing the Rule 430A Information shall have been filed with the Commission in the manner and within the time frame required by Rule 424(b) (without reliance on Rule 424(b)(8)) or a post-effective amendment providing such information shall have been filed with, and declared effective by, the Commission in accordance with the requirements of Rule 430A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.2. <u>FINRA Clearance</u>. On or before the date of this Agreement, the Representatives shall have received clearance from FINRA as to the amount of compensation allowable or payable to the Underwriters as described in the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.3. <u>Exchange Share Market Clearance</u>. On the Closing Date, the Shares shall have been approved for listing on the Exchange, subject only to official notice of issuance. On the first Option Closing Date (if any), the Option Shares shall have been approved for listing on the Exchange, subject only to official notice of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <u>Company Counsel Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.1. <u>Closing Date Opinion of Counsel for the Company</u>. On the Closing Date, the Representatives shall have received the favorable opinion and negative assurances statement of Sichenzia Ross Ference Carmel LLP, dated the Closing Date, in customary form and substance reasonably satisfactory to Representatives' Counsel addressed to the Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.2. <u>Option Closing Date Opinion of Counsel for the Company</u>. On the Option Closing Date, if any, the Representatives shall have received the favorable opinion and negative assurances statement of Sichenzia Ross Ference Carmel LLP, dated the Option Closing Date, addressed to the Representatives and in customary form and substance reasonably satisfactory to the Representatives, confirming as of the Option Closing Date the statements made by such counsel in their opinion delivered on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.3. <u>Reliance</u>. In rendering such opinions, such counsel may rely: (i) as to matters involving the application of laws other than the laws of the United States and jurisdictions in which they are admitted, to the extent such counsel deems proper and to the extent specified in such opinion, if at all, upon an opinion or opinions (in form and substance reasonably satisfactory to the Representatives) of other counsel reasonably acceptable to the Representatives, familiar with the applicable laws; and (ii) as to matters of fact, to the extent they deem proper, on certificates or other written statements of officers of the Company and officers of departments of various jurisdictions having custody of documents respecting the corporate existence or good standing of the Company, *provided* that copies of any such statements or certificates shall be delivered to Representatives' Counsel if requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <u>Comfort Letters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.1. <u>Cold Comfort Letter</u>. At the time this Agreement is executed, the Representatives shall have received a cold comfort letter from the Auditor containing statements and information of the type customarily included in accountants' comfort letters with respect to the financial statements and certain financial information contained in the Registration Statement, the Pricing Disclosure Package and the Prospectus, addressed to the Representatives and in form and substance satisfactory in all respects to the Representatives and to the Auditor, dated as of the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.2. <u>Bring-down Comfort Letter</u>. At each of the Closing Date and the Option Closing Date, if any, the Representatives shall have received from the Auditor a letter, dated as of the Closing Date or the Option Closing Date, as applicable, to the effect that the Auditor reaffirms the statements made in the letter furnished pursuant to <u>Section 4.3.1</u>, except that the specified date referred to shall be a date not more than one (1) Business Days prior to the Closing Date or any Option Closing Date, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <u>Officers' Certificates</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.1. <u>Officers' Certificate</u>. The Company shall have furnished to the Representatives a certificate, dated the Closing Date and any Option Closing Date (if such date is other than the Closing Date), of its Chief Executive Officer and its Chief Financial Officer stating that (i) such officers have carefully examined the Registration Statement, the Pricing Disclosure Package, any Issuer Free Writing Prospectus and the Prospectus and, in their opinion, the Registration Statement and each amendment thereto, as of the Applicable Time and as of the Closing Date (or any Option Closing Date if such date is other than the Closing Date) did not include any untrue statement of a material fact and did not omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading, and the Pricing Disclosure Package, as of the Applicable Time and as of the Closing Date (or any Option Closing Date if such date is other than the Closing Date), any Issuer Free Writing Prospectus as of its date and as of the Closing Date (or any Option Closing Date if such date is other than the Closing Date), the Prospectus and each amendment or supplement thereto, as of the respective date thereof and as of the Closing Date, did not include any untrue statement of a material fact and did not omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances in which they were made, not misleading, (ii) since the effective date of the Registration Statement, no event has occurred which should have been set forth in a supplement or amendment to the Registration Statement, the Pricing Disclosure Package or the Prospectus, (iii) to their knowledge, as of the Closing Date (or any Option Closing Date if such date is other than the Closing Date), the representations and warranties of the Company in this Agreement are true and correct in all material respects (except for those representations and warranties qualified as to materiality, which shall be true and correct in all respects and except for those representations and warranties which refer to facts existing at a specific date, which shall be true and correct as of such date) and the Company has complied with all agreements and satisfied all conditions on its part to be performed or satisfied hereunder at or prior to the Closing Date (or any Option Closing Date if such date is other than the Closing Date), and (iv) there has not been, subsequent to the date of the most recent audited financial statements included in the Pricing Disclosure Package, a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.2. <u>Secretary's Certificate</u>. At each of the Closing Date and the Option Closing Date, if any, the Representatives shall have received a certificate of the Company signed by the Secretary of the Company, dated the Closing Date or the Option Date, as the case may be, respectively, certifying: (i) that each of the Charter and Bylaws is true and complete, has not been modified and is in full force and effect; (ii) that each of the Subsidiaries' articles of organization or any equivalent charter documents attached to such certificate is true and complete, has not been modified and is in full force and effect; (iii) that the resolutions of the Company's Board of Directors (and any pricing committee thereof) relating to the Offering are in full force and effect and have not been modified; (iv) as to the incumbency of the officers of the Company; and (iv) as to the good standing certificates of the Company and each of its Subsidiaries. The documents referred to in such certificate shall be attached to such certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.3. <u>Chief Financial Officer Certificate</u>. At the time this Agreement is executed and on the Closing Date and/or the Option Closing Date, if any, the Representatives shall have received a written certificate executed by the Chief Financial Officer of the Company, dated as of such date, on behalf of the Company, with respect to certain financial data contained in the Registration Statement, Pricing Disclosure Package and the Prospectus, providing "comfort" with respect to such information, in form and substance reasonably satisfactory to the Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. <u>No Material Changes</u>. Prior to and on each of the Closing Date and each Option Closing Date, if any: (i) there shall have been no Material Adverse Change in the condition or prospects or the business activities, financial or otherwise, of the Company from the latest dates as of which such condition is set forth in the Registration Statement, the Pricing Disclosure Package and the Prospectus; (ii) no action, suit or proceeding, at law or in equity, shall have been pending or threatened against the Company or any Insider before or by any court or federal or state commission, board or other administrative agency wherein an unfavorable decision, ruling or finding may reasonably be expected to cause a Material Adverse Change, except as set forth in the Registration Statement, the Pricing Disclosure Package and the Prospectus; (iii) no stop order shall have been issued under the Securities Act and no proceedings therefor shall have been initiated or threatened by the Commission; and (iv) the Registration Statement, the Pricing Disclosure Package and the Prospectus and any amendments or supplements thereto shall contain all material statements which are required to be stated therein in accordance with the Securities Act and the Securities Act Regulations and shall conform in all material respects to the requirements of the Securities Act and the Securities Act Regulations, and neither the Registration Statement, the Pricing Disclosure Package nor the Prospectus nor any amendment or supplement thereto shall contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6. <u>Delivery of Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.1. <u>Lock-Up Agreements</u>. On or before the date of this Agreement, the Company shall have delivered to the Representatives executed copies of the Lock-Up Agreements from each of the persons listed in <u>Schedule 3</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7. <u>Additional Documents</u>. At the Closing Date and at each Option Closing Date (if any), Representatives' Counsel shall have been furnished with such documents and opinions as they may reasonably require for the purpose of enabling Representatives' Counsel to deliver an opinion to the Underwriters, or in order to evidence the accuracy of any of the representations or warranties, or the fulfillment of any of the conditions, herein contained; and all proceedings taken by the Company in connection with the issuance and sale of the Shares as herein contemplated shall be satisfactory in form and substance to the Representatives and Representatives' Counsel.

5. <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <u>Indemnification of the Underwriters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.1. <u>General</u>. Subject to the conditions set forth below, the Company agrees to indemnify, defend and hold harmless each Underwriter, its affiliates and each of its and their respective directors, officers, members, employees, representatives, partners, shareholders, affiliates, counsel, and agents and each person, if any, who controls any such Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively the "**Underwriter Indemnified Parties**," and each an "**Underwriter Indemnified Party**"), from and against any and all loss, liability, claim, damage and expense whatsoever (including but not limited to any and all legal or other expenses reasonably incurred in investigating, preparing or defending against any FINRA arbitration, commenced or threatened, or any claim whatsoever and from and against any and all loss, liability (or actions, including shareholder actions, in respect thereof), claim, damage and expense whatsoever (including but not limited to any and all legal or other expenses reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever (the "**Expenses**"), whether arising out of any action between any of the Underwriter Indemnified Parties and the Company or between any of the Underwriter Indemnified Parties and any third party, or otherwise) to which they or any of them may become subject under the Securities Act, the Exchange Act or any other statute or at common law or otherwise or under the laws of foreign countries (a "**Claim**"), arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, in (A) the Registration Statement, the Pricing Disclosure Package, any Preliminary Prospectus, the Prospectus, or in any Issuer Free Writing Prospectus or in any Written Testing-the-Waters Communication (as from time to time each may be amended and supplemented); (B) any materials or information provided to investors by, or with the approval of, the Company in connection with the marketing of the Offering, including any "road show" or investor presentations made to investors by the Company (whether in person or electronically); or (C) any application or other document or written communication (in this <u>Section 5</u>, collectively called "**application**") executed by the Company or based upon written information furnished by the Company in any jurisdiction in order to qualify the Shares under the securities laws thereof or filed with the Commission, any state securities commission or agency, the Exchange or any other national securities exchange; *unless*, with respect to each subsection (A) through (C), such statement or omission was made in reliance upon, and in conformity with, the Underwriters' Information. With respect to any untrue statement or omission or alleged untrue statement or omission made in the Registration Statement, Pricing Disclosure Package or Prospectus, the indemnity agreement contained in this <u>Section 5.1.1</u> shall not inure to the benefit of any Underwriter Indemnified Party to the extent that any loss, liability, claim, damage or expense of such Underwriter Indemnified Party results from the fact that a copy of the Prospectus was not given or sent to the person asserting any such loss, liability, claim or damage at or prior to the written confirmation of sale of the Shares to such person as required by the Securities Act and the Securities Act Regulations, and if the untrue statement or omission has been corrected in the Prospectus, unless such failure to deliver the Prospectus was a result of non-compliance by the Company with its obligations under <u>Section 3.3</u> hereof. The Company also agrees that no Underwriter Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company or its security holders or creditors related to or arising out of the engagement of the Underwriters pursuant to, or the performance by the Underwriters of the services contemplated by, this Agreement except to the extent that any loss, claim, damage or liability is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Underwriter Indemnified Party's bad faith, willful misconduct, or gross negligence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.2. <u>Procedure</u>. If any action is brought against an Underwriter Indemnified Party in respect of which indemnity may be sought against the Company pursuant to <u>Section 5.1.1</u>, such Underwriter Indemnified Party shall promptly notify the Company in writing of the institution of such action (provided that the failure or delay so to notify the Company (i) will not relieve the Company from liability unless and to the extent such failure or delay causes actual harm to the Company, or materially prejudices its ability to defend such action, suit or proceeding) and the Company shall assume the defense of such action, including the employment and reasonable fees of counsel (subject to the approval of such counsel by the Underwriter Indemnified Party (which approval shall not be unreasonably withheld)) and payment of actual expenses if an Underwriter Indemnified Party requests that the Company do so. Such Underwriter Indemnified Party shall have the right to employ its or their own counsel in any such case at its own expense; provided, however, that the Company shall bear the reasonable fees, costs and expenses of such separate counsel only if (i) the use of counsel chosen by the Company to represent the Underwriter Indemnified Party would present such counsel with a conflict of interest and such conflict has not been waived by the Underwriter Indemnified Party, (ii) the actual or potential defendants in, or targets of, any such action include both the Underwriter Indemnified Party and the Company and the Underwriter Indemnified Party shall have reasonably concluded that there may be legal defenses available to it which are different from or additional to those available to the Company that makes it impossible or inadvisable for counsel to the Company to conduct the defense of both parties, (iii) the Company shall not have employed counsel reasonably satisfactory to the indemnified party to represent the Underwriter Indemnified Party within a reasonable time after notice of the institution of such action, or (iv) the Company shall give written authorization to the Underwriter Indemnified Party to employ separate counsel at the expense of the Company; *provided*, *however*, that the Company shall not be obligated to bear the reasonable fees and expenses of more than one firm of attorneys selected by the Underwriter Indemnified Party (in addition to local counsel). Notwithstanding anything to the contrary contained herein, and provided that the Company has timely honored its obligations under <u>Section 5</u>, the Underwriter Indemnified Party shall not enter into any settlement without the prior written consent (which shall not be unreasonably withheld) of the terms of any settlement by the Company. The Company shall not be liable for any settlement of any action effected without its prior written consent. In addition, the Company shall not, without the prior written consent of the Underwriters (which consent shall not be unreasonably withheld), settle, compromise or consent to the entry of any judgment in or otherwise seek to terminate any pending or threatened action in respect of which advancement, reimbursement, indemnification or contribution may be sought hereunder (whether or not such Underwriter Indemnified Party is a party thereto) unless such settlement, compromise, consent or termination (i) includes an unconditional release of each Underwriter Indemnified Party from all liabilities, expenses and claims arising out of such action for which indemnification or contribution may be sought and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any Underwriter Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. <u>Indemnification of the Company</u>. Each Underwriter, severally and not jointly, agrees to indemnify and hold harmless the Company, its directors, its officers who signed the Registration Statement and persons who control the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act against any and all loss, liability, claim, damage and expense described in the foregoing indemnity from the Company to the several Underwriters, as incurred, but only with respect to such losses, liabilities, claims, damages and expenses (or actions in respect thereof) which arise out of or are based upon untrue statements or omissions, or alleged untrue statements or omissions made in the Registration Statement, any Preliminary Prospectus, the Pricing Disclosure Package or Prospectus or any amendment or supplement thereto or in any application, in reliance upon, and in conformity with, the Underwriters' Information. In case any action shall be brought against the Company or any other person so indemnified based on any Preliminary Prospectus, the Registration Statement, the Pricing Disclosure Package or Prospectus or any amendment or supplement thereto or any application, and in respect of which indemnity may be sought against any Underwriter, such Underwriter shall have the rights and duties given to the Company, and the Company and each other person so indemnified shall have the rights and duties given to the several Underwriters by the provisions of <u>Section 5.1.2</u>. The Company agrees promptly to notify the Representatives of the commencement of any litigation or proceedings against the Company or any of its officers, directors or any person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, in connection with the issuance and sale of the Shares or in connection with the Registration Statement, the Pricing Disclosure Package, the Prospectus, or any Issuer Free Writing Prospectus or any Written Testing-the-Waters Communication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. <u>Contribution</u>. If the indemnification provided for in this <u>Section 5</u> shall for any reason be unavailable or insufficient to hold harmless an indemnified party under <u>Section 5.1</u> or <u>5.2</u> in respect of any liabilities and Expenses referred to therein, then each indemnifying party shall, in lieu of indemnifying such indemnified party, contribute to the amount paid or payable by such indemnified party as a result of such liabilities and Expenses, (i) in such proportion as shall be appropriate to reflect the relative benefits received by the Company, on the one hand, and each of the Underwriters, on the other hand, from the Offering, or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company, on the one hand, and the Underwriters, on the other hand, with respect to the statements or omissions that resulted in such loss, claim, damage or liability, or action in respect thereof, as well as any other relevant equitable considerations. The relative benefits received by the Company, on the one hand, and the Underwriters, on the other, with respect to such Offering shall be deemed to be in the same proportion as the total net proceeds actually received by the Company from the Offering of the Shares purchased under this Agreement (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions actually received by the Underwriters in connection with the Offering. The relative fault of the Company, on the one hand, and the Underwriters, on the other, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company, on the one hand, or the Underwriters, on the other, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement, omission, act or failure to act; *provided* that the parties hereto agree that the written information furnished to the Company through the Representatives by or on behalf of any Underwriter for use in any Preliminary Prospectus, any Registration Statement or the Prospectus, or in any amendment or supplement thereto, consists solely of the Underwriters' Information. The Company and the Underwriters agree that it would not be just and equitable if contributions pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take into account the equitable considerations referred to above in this subsection (d). The amount paid or payable by an indemnified party as a result of the loss, claim, damage, expense, liability, action, investigation or proceeding referred to above in this Section 5.3.1 shall be deemed to include, for purposes of this <u>Section 5.3</u>, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating, preparing to defend or defending against or appearing as a third party witness in respect of, or otherwise incurred in connection with, any such loss, claim, damage, expense, liability, action, investigation or proceeding. Notwithstanding the provisions of this <u>Section 5.3</u>, no Underwriters shall be required to contribute any amount in excess of the total discount and commission received by such Underwriter in connection with the Offering (excluding reimbursable expenses) less the amount of any damages which such Underwriter has otherwise paid or becomes liable to pay by reason of any untrue or alleged untrue statement, omission or alleged omission, act or alleged act or failure to act or alleged failure to act. Notwithstanding the above, no person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall be entitled to contribution from a party who was not guilty of such fraudulent misrepresentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. <u>Contribution Procedure</u>. Within fifteen (15) days after receipt by any party to this Agreement (or its representative) of notice of the commencement of any action, suit or proceeding, such party will, if a claim for contribution in respect thereof is to be made against another party ("**Contributing Party**"), notify the Contributing Party of the commencement thereof, but the failure to so notify the Contributing Party will not relieve it from any liability which it may have to any other party other than for contribution hereunder. In case any such action, suit or proceeding is brought against any party, and such party notifies a Contributing Party or its representative of the commencement thereof within the aforesaid 15 days, the Contributing Party will be entitled to participate therein with the notifying party and any other Contributing Party similarly notified. Any such Contributing Party shall not be liable to any party seeking contribution on account of any settlement of any claim, action or proceeding affected by such party seeking contribution without the written consent of such Contributing Party. The contribution provisions contained in this <u>Section 5.4</u> are intended to supersede, to the extent permitted by law, any right to contribution under the Securities Act, the Exchange Act or otherwise available. The Underwriters' obligations to contribute as provided in this <u>Section 5.4</u> are several and in proportion to their respective underwriting obligation, and not joint.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5. <u>Limitation</u>. The Company also agrees that no Underwriter Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company for or in connection with advice or services rendered or to be rendered by any Underwriter Indemnified Party pursuant to this Agreement, the transactions contemplated thereby or any Underwriter Indemnified Party's actions or inactions in connection with any such advice, services or transactions, except to the extent that a court of competent jurisdiction has made a finding that liabilities (and related Expenses) of the Company have resulted from such Underwriter Indemnified Party's fraud, bad faith, gross negligence or willful misconduct in connection with any such advice, actions, inactions or services or such Underwriter Indemnified Party's breach of this Agreement or any obligations of confidentiality owed to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6. <u>Survival & Third-Party Beneficiaries</u>. The advancement, reimbursement, indemnity and contribution obligations set forth in this <u>Section 5</u> shall remain in full force and effect regardless of any termination of, or the completion of any Underwriter Indemnified Party's services under or in connection with, this Agreement. Each Underwriter Indemnified Party's is an intended third-party beneficiary of this <u>Section 5</u>, and has the right to enforce the provisions of <u>Section 5</u> as if he/she/it was a party to this Agreement.

6. <u>Right of First Refusal and Tail Financing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. <u>Right of First Refusal</u>. Provided that the Firm Shares are sold in accordance with the terms of this Agreement, the Representatives shall have an irrevocable right of first refusal (the "**Right of First Refusal**"), for a period of six (6) months from the Closing Date, to act as sole investment banker, sole book-runner, and/or sole placement agent with at least 50.0% of the economics, at the Representatives' sole discretion, for each and every future public and private equity and debt offering, including all equity linked financings (each, a "**Subject Transaction**"), of the Company, or any successor to or any current or future subsidiary of the Company, on terms and conditions customary to the Representatives for such Subject Transactions. For the avoidance of any doubt, neither the Company nor any subsidiary shall retain, engage or solicit any additional investment banker, book-runner, financial advisor, underwriter and/or placement agent in a Subject Transaction during the six (6) month period referred to above without the express written consent of the Representatives. The Company shall notify the Representatives of its or its subsidiary's intention to pursue a Subject Transaction, including the material terms thereof, by providing written notice thereof by electronic mail or overnight courier service addressed to the Representatives. If the Representatives declines the terms of such Subject Transaction or fails to notify the Company of its intent to exercise its Right of First Refusal with respect to any Subject Transaction within ten (10) Business Days following notice in writing by the Company, then the Representatives shall have no further claim or right with respect to the Subject Transaction. The Representatives may elect, in its sole and absolute discretion, not to exercise its Right of First Refusal with respect to any Subject Transaction; provided that any such election, rejection, waiver or failure to respond or act, by the Representatives shall not adversely affect the Representatives' Right of First Refusal with respect to any other Subject Transaction during the six (6) month period agreed to above. The terms and conditions of any such engagements shall be set forth in separate agreements and may be subject to, among other things, satisfactory completion of due diligence by the Representatives, market conditions, the absence of a material adverse change to the Company's business, financial condition and prospects, approval of the Representatives' internal committee and any other conditions that the Representatives may deem appropriate for transactions of such nature. The Right of First Refusal is subject to FINRA Rule 5110(g), and the Company shall have a right of termination for cause, which includes that the Company may terminate the Representatives' engagement upon the Representatives' material failure to provide the underwriting services required by this Agreement. The Company's exercise of the right of termination for cause will eliminate any obligations with respect to the Right of First Refusal set forth above.

7. <u>Effective Date of this Agreement and Termination Thereof</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. <u>Effective Date</u>. This Agreement shall become effective when both the Company and the Representatives have executed the same and delivered counterparts of such signatures to the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. <u>Termination</u>. The Representatives shall have the right to terminate this Agreement at any time prior to any Closing Date, (i) if any domestic or international event or act or occurrence has materially disrupted, or in the reasonable opinion of the Representatives, will in the immediate future materially disrupt, general securities markets in the United States; or (ii) if trading on the Exchange shall have been suspended or materially limited, or minimum or maximum prices for trading shall have been fixed, or maximum ranges for prices for securities shall have been required by FINRA or by order of the Commission or any other government authority having jurisdiction; or (iii) if the United States shall have become involved in a new war or an increase in major hostilities; or (iv) if a banking moratorium has been declared by a New York State or federal authority; or (v) if a moratorium on foreign exchange trading has been declared which materially adversely impacts the United States securities markets; or (vi) if the Company shall have sustained a material loss by fire, flood, accident, hurricane, earthquake, theft, sabotage or other calamity or malicious act which, whether or not such loss shall have been insured, will, in the Representatives' reasonable opinion, make it inadvisable to proceed with the delivery of the Firm Shares or Option Shares; or (vii) if the Company is in material breach of any of its representations, warranties or covenants hereunder; (viii) if the Representatives shall have become aware after the date hereof of such a Material Adverse Change, or such adverse material change in general market conditions as in the Representatives' reasonable judgment would make it impracticable to proceed with the offering, sale and/or delivery of the Shares or to enforce contracts made by the Underwriters for the sale of the Shares; or (ix) regulatory approval (including but not limited to Exchange approval) for the Offering is denied, conditioned or modified and as a result it makes it impracticable for the Representatives to proceed with the offering, sale and/or delivery of the Shares or to enforce contracts for the sale of the Shares. Notwithstanding anything to the contrary herein, the Representatives (for themselves and on behalf of the Underwriters) shall have the right, in their sole discretion, to terminate this Agreement at any time prior to the commencement of trading of the Firm Shares on the Exchange if, in the exclusive judgment of the Representatives: (a) there exists or has occurred a significant actual or reasonably anticipated imbalance between buy and sell orders for the Firm Shares, or other disorderly trading conditions with respect to the Firm Shares in the pre-opening or opening auction process on the Exchange; (b) the indicative opening price or pre-opening indications for the Firm Shares reflect, or are reasonably likely to reflect, a price level that, in the Representatives' exclusive judgment, does not permit an orderly market for the Firm Shares; or (c) any event, condition, or circumstance has occurred, or is reasonably likely to occur, that, in the exclusive judgment of the Representatives, results or is reasonably likely to result in a material disruption to the orderly trading or settlement of the Firm Shares or the operation of securities markets generally. If the Representatives elect to terminate this Agreement pursuant to this Section, this Agreement shall thereupon terminate (except for those provisions which by their terms survive such termination), and no party shall have any further liability hereunder except as otherwise provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. <u>Expenses</u>. Notwithstanding anything to the contrary in this Agreement, in the event that this Agreement shall not be carried out for any reason whatsoever, within the time specified herein or any extensions thereof pursuant to the terms herein, the Company shall be obligated to pay to the Underwriters their actual and accountable out-of-pocket expenses related to the transactions contemplated herein then due and payable up to the amounts set forth in <u>Section 3.9.1</u> and upon demand the Company shall pay such amount thereof to the Representatives on behalf of the Underwriters; *provided*, *however*, that such expense cap in no way limits or impairs the indemnification and contribution provisions of this Agreement. Notwithstanding the foregoing, any advance received by the Representatives will be reimbursed to the Company to the extent not actually incurred in compliance with FINRA Rule 5110(g)(4)(A).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4. <u>Indemnification Survival</u>. Notwithstanding any contrary provision contained in this Agreement, any election hereunder or any termination of this Agreement, and whether or not this Agreement is otherwise carried out, the provisions of <u>Section 5</u> shall remain in full force and effect and shall not be in any way affected by, such election or termination or failure to carry out the terms of this Agreement or any part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5. <u>Representations, Warranties, Agreements to Survive</u>. All representations, warranties and agreements contained in this Agreement or in certificates of officers of the Company submitted pursuant hereto, shall remain operative and in full force and effect regardless of (i) any investigation made by or on behalf of any Underwriter or its Affiliates or selling agents, any person controlling any Underwriter, its officers or directors or any person controlling the Company or (ii) delivery of and payment for the Shares.

8. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. <u>Notices</u>. All communications hereunder, except as herein otherwise specifically provided, shall be in writing and shall be mailed (registered or certified mail, return receipt requested), personally delivered or sent by email and confirmed and shall be deemed given when so delivered or emailed and confirmed or if mailed, two (2) days after such mailing.

If to the Representatives:

**American Trust Investment Services, Inc.**

910 S El Camino Real,Suite 200

San Clemente, CA 92672

Attention: Kristopher Kessler

Email: k.kessler@amtruinvest.com

**WestPark Capital, Inc.**

1900 Avenue of the Stars, Suite 310

Los Angeles, CA 90067

Attention: [ ]

Email: [ ]

*With a copy (which shall not constitute notice) to:*

**Loeb & Loeb LLP**

2206-19, Jardine House

1 Connaught Pl

Central, Hong Kong

Attention: Henry Yin, Esq.

Email: henry.yin@loeb.com

**Loeb & Loeb LLP**

345 Park Avenue

New York, NY 10154

Attention: Hermione Krumm, Esq.

Email: hkrumm@loeb.com

If to the Company:

**Collab Z Inc.**

29 Orinda Way, Unit 2060

Orinda, California 94563

Attention: Qiaojun Lai

Email: aileen.lai@collabhome.io

*With a copy (which shall not constitute notice) to*:

**Sichenzia Ross Ference Carmel LLP**

1185 Avenue of the Americas, 26<sup>th</sup> Floor

New York, NY 10036

Attention: Ross Carmel

Email: rcarmel@srfc.law

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. <u>Headings</u>. The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the meaning or interpretation of any of the terms or provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. <u>Amendment</u>. This Agreement may only be amended by a written instrument executed by each of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4. <u>Entire Agreement</u>. This Agreement (together with the other agreements and documents being delivered pursuant to or in connection with this Agreement) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof and thereof, and supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5. <u>Binding Effect</u>. This Agreement shall inure solely to the benefit of and shall be binding upon the Representatives, the Underwriters, the Company and the controlling persons, directors and officers referred to in <u>Section 5</u> hereof, and their respective successors, legal Representatives, heirs and assigns, and no other person shall have or be construed to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Agreement or any provisions herein contained. The term "successors and assigns" shall not include a purchaser, in its capacity as such, of securities from any of the Underwriters.

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6. <u>Governing Law; Consent to Jurisdiction; Trial by Jury</u>. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflict of laws principles thereof. The Company hereby agrees that any action, proceeding or claim against it arising out of, or relating in any way to this Agreement shall be brought and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any such process or summons to be served upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in <u>Section 8.1</u> hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding or claim. The Company agrees that the prevailing party(ies) in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys' fees and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor. The Company (on its behalf and, to the extent permitted by applicable law, on behalf of its stockholders and affiliates) and each of the Underwriters hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7. <u>Execution in Counterparts</u>. This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement, and shall become effective when one or more counterparts has been signed by each of the parties hereto and delivered to each of the other parties hereto. Delivery of a signed counterpart of this Agreement by email/pdf transmission shall constitute valid and sufficient delivery thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8. <u>Waiver, etc</u>. The failure of any of the parties hereto to at any time enforce any of the provisions of this Agreement shall not be deemed or construed to be a waiver of any such provision, nor to in any way effect the validity of this Agreement or any provision hereof or the right of any of the parties hereto to thereafter enforce each and every provision of this Agreement. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Agreement shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment.

*[Signature Page Follows]*

 

If the foregoing correctly sets forth the understanding between the Underwriters and the Company, please so indicate in the space provided below for that purpose, whereupon this letter shall constitute a binding agreement between us.

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| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| **Collab Z Inc.** | **Collab Z Inc.** |
| By: |  |
| Name: | Qiaojun Lai |
| Title: | Chief Executive Officer |

---

Confirmed as of the date first written above mentioned, on behalf of itself and as Representatives of the several Underwriters named on <u>Schedule 1</u> hereto:

---

| |
|:---|
| **American Trust Investment Services, Inc.** |
| By: |
| Name: |
| Title: |

---

---

| |
|:---|
| **WestPark Capital, Inc.** |
| By: |
| Name: |
| Title: |

---

*<u>[Signature page to Underwriting Agreement]</u>*

**<u>SCHEDULE 1</u>**

---

| | | |
|:---|:---|:---|
| ***Underwriter*** | **Total<br> Number of<br> Firm Shares<br> to be<br> Purchased** | **Number of<br> Additional<br> Option Shares<br> to be<br> Purchased if the<br> Over-<br> Allotment<br> Option is<br> Fully Exercised** |
| **American Trust Investment Services, Inc.** | [●] | [●] |
| **Westpark Capital, Inc.** | [●] | [●] |
| **TOTAL** | [●] | [●] |

---

**<u>SCHEDULE 2-A</u>**

**Pricing Information**

Number of Firm Shares: [●]

Number of Option Shares: [●]

Public Offering Price per Share: $[●]

Underwriting Discount per Share: $[●]

**<u>SCHEDULE 2-B</u>**

**Issuer General Use Free Writing Prospectuses**

Issuer Free Writing Prospectus dated [ ], filed with the Securities and Exchange Commission on [ ] (file number [ ]).

**<u>SCHEDULE 2-C</u>**

**Written Testing-the-Waters Communications**

None.

**<u>SCHEDULE 3</u>**

**List of Lock-Up Parties**

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

**Form of Lock-Up Agreement**

**Lock-up Agreement**

[Date]

American Trust Investment Services, Inc.

910 S El Camino Real,Suite 200

San Clemente, CA 92672

WestPark Capital, Inc.

1900 Avenue of the Stars, Suite 310

Los Angeles, CA 90067

**Re: <u>Proposed Public Offering by Collab Z Inc.</u>**

Ladies and Gentlemen:

The undersigned, a stockholder of Collab Z Inc., a Nevada corporation (the "<u>Company</u>"), understands that American Trust Investment Services, Inc. and WestPark Capital, Inc. (collectively, the "<u>Representatives</u>") will act as the representative of the underwriters in carrying out an offering (the "<u>Offering</u>") of the Company's common stock, par value $0.001 per share (the "<u>Securities</u>"). In recognition of the benefit that the Offering will confer upon the undersigned, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned agrees with the Representatives that, without the prior written consent of the Representatives, during the period of [one hundred and eighty (180) / three hundred and sixty (360)] days from the closing of the Offering (the "<u>Lock-Up Period</u>"), the undersigned will not, without the prior written consent of the Representatives, directly or indirectly (1) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of common stock, $0.001 per share par value, of the Company (the "Common Stock") or any securities convertible into or exercisable or exchangeable for Common Stock (including without limitation, Common Stock or such other securities which may be deemed to be beneficially owned by the undersigned in accordance with the rules and regulations of the Securities and Exchange Commission and securities which may be issued upon exercise of a stock option or warrant) (collectively with the Common Stock, "<u>Lock-Up Securities</u>"), whether now owned or hereafter acquired by the undersigned or with respect to which the undersigned has or hereafter acquires the power of disposition, or file, or cause to be filed, any registration statement under the Securities Act of 1933, as amended, with respect to any of the foregoing, (2) enter into any hedging, swap or other agreement or transaction that transfers, in whole or in part, any of the economic consequences of ownership of the Lock-Up Securities, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Lock-Up Securities, in cash or otherwise, (3) make any demand for or exercise any right with respect to the registration of any Lock-Up Securities, or (4) publicly disclose the intention to do any of the foregoing. The undersigned acknowledges and agrees that the foregoing precludes the undersigned from engaging during the Lock-Up Period in any hedging or other transactions or arrangements (including, without limitation, any short sale or the purchase or sale of, or entry into, any put or call option, or combination thereof, forward, swap or any other derivative transaction or instrument, however described or defined) designed or intended, or which could reasonably be expected to lead to or result in, a sale or disposition or transfer (whether by the undersigned or any other person) of any economic consequences of ownership, in whole or in part, directly or indirectly, of any Lock-Up Securities, whether any such transaction or arrangement (or instrument provided for thereunder) would be settled by delivery of Lock-Up Securities, in cash or otherwise. The undersigned further confirms that it has furnished the Representatives with the details of any transaction the undersigned, or any of its affiliates, is a party to as of the date hereof, which transaction would have been restricted by this Letter Agreement if it had been entered into by the undersigned during the Lock-Up Period.

The Representatives may in their sole discretion and at any time without notice release some or all of the shares subject to lock-up agreements prior to the expiration of the Lock-Up Period. When determining whether or not to release shares from the lock-up agreements, the Representatives will consider, among other factors, the security holder's reasons for requesting the release, the number of shares for which the release is being requested and market conditions at the time.

Notwithstanding the foregoing, and subject to the conditions below, the undersigned may transfer the Lock-Up Securities without the prior written consent of the Representatives as follows, provided that in the cases of (i), (ii), and (iv) through (vi) below, (1) the Representatives receives a signed lock-up agreement for the balance of the Lock-Up Period from each donee, trustee or transferee, as the case may be, (2) any such transfer shall not involve a disposition for value, (3) such transfers are not required to be reported in any public report or filing with the Securities and Exchange Commission, or otherwise, and (4) the undersigned does not otherwise voluntarily effect any public filing or report regarding such transfers:

&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) as a bona fide gift or gifts (including but not limited to charitable gifts); 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;(ii) to any member of the immediate family of the undersigned or to a trust or other entity for the direct or indirect benefit of, or wholly-owned by, the undersigned or the immediate family of the undersigned (for purposes of this lock-up agreement, "<u>immediate family</u>" shall mean any relationship by blood, marriage or adoption, not more remote than first cousin); 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;(iii) if the undersigned is a corporation, partnership, limited liability company, trust or other business entity (1) transfers to another corporation, partnership, limited liability company, trust or other business entity that is a direct or indirect affiliate (as defined in Rule 405 promulgated under the Securities Act of 1933, as amended) of the undersigned or (2) distributions of common stock or any security convertible into or exercisable for common stock to limited partners, limited liability company members or stockholders of the undersigned; 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;(iv) if the undersigned is a trust, transfers to the beneficiary of such trust; 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;(v) by will, other testamentary document or intestate succession; 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;(vi) by operation of law pursuant to a qualified domestic order or in connection with a divorce settlement; 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;(viii) transfers of Lock-Up Securities to the Company (i) as forfeitures to satisfy tax withholding and remittance obligations of the undersigned in connection with the vesting or exercise of equity awards granted pursuant to the Company's equity incentive plans, or (ii) pursuant to a net exercise or cashless exercise by the stockholder of outstanding equity awards pursuant to the Company's equity incentive plans; 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;(ix) the establishment of a trading plan that complies with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"); *provided*, *however*, that (i) the restrictions shall apply in full force to sales or other dispositions pursuant to such Rule 10b5-1 plan during the Lock-Up Period, and (ii) no public announcement or disclosure of entry into such Rule 10b5-1 plan is made or required to be made, including any filing with the SEC under Section 13 or Section 16 of the Exchange Act; 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;(xi) the transfer of Lock-Up Securities pursuant to a change of control of the Company after the Offering, that has been approved by the Company's board of directors, *provided,* that in the event that such change of control is not completed, the Lock-Up Securities owned by the undersigned shall remain subject to the restrictions herein. For purposes of this clause (i), "change of control" shall mean the consummation of any bona fide third party tender offer, merger, consolidation or other similar transaction, in one transaction or a series of related transactions, the result of which is that any "person" (as defined in Section 13(d)(3) of the Exchange Act), or group of persons, becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 of the Exchange Act) of more than 50% of the voting capital stock of the Company.

Furthermore, no provision in this letter shall be deemed to restrict or prohibit (1) transactions relating to Securities purchased in the Offering or acquired in open market transactions after the completion of Offering; and (2) the conversion, exercise or exchange by the undersigned of any preferred stock, option or warrant to acquire any common stock or options to purchase common stock, in each case for cash or on a "cashless" or "net exercise" basis, pursuant to any share option, share bonus or other share plan or arrangement; provided, however, that the underlying common stock shall continue to be subject to the restrictions on transfer set forth in this letter.

The undersigned further agrees that, prior to engaging in any transaction or taking any other action that is subject to the terms of this lock-up agreement during the Lock-Up Period, it will give written notice thereof to the Representatives and will not consummate such transaction or take any such action unless it has received written confirmation from the Company that the Lock-Up Period has expired.

The undersigned understands that, if the Offering shall terminate or be terminated prior to payment for and delivery of the Securities, the undersigned shall be released from all obligations set forth herein.

The undersigned also agrees and consents to the entry of stop transfer instructions with the Company's transfer agent and registrar against the transfer of the Lock-Up Securities except in compliance with the foregoing restrictions.

The undersigned, whether or not participating in the Offering, understands that the Representatives is proceeding with the Offering in reliance upon this lock-up agreement.

This lock-up agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflict of laws principles thereof.

---

| |
|:---|
| Very truly yours, |
| (Name - Please Print) |
| (Signature) |

---

## Exhibit 5.1

**Exhibit 5.1**

![](ea029126101_ex5-1img1.jpg)

May 22, 2026

Collab Z Inc.

29 Orinda Way, Unit 2060

Orinda, California 94563

Attn: Board of Directors

RE: Collab Z Inc. <br> <u>Registration Statement on Form S-1, as amended, Registration No. 333-293881</u>

Ladies and Gentlemen:

We have acted as counsel to Collab Z Inc., a Nevada corporation (the "<u>Company</u>"), in connection with the preparation and filing with the U.S. Securities and Exchange Commission (the "<u>Commission</u>") of the above-caption registration under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), initially filed with the Commission on February 27, 2026 (as amended, the "<u>Registration Statement</u>"). The Company filed the Registration Statement in connection with the proposed underwritten offering and relates to the issuance and sale by the Company of up to an aggregate of 5,750,000 shares of the Company's common stock, par value $0.001 per share ("<u>Common Stock</u>") consisting of: (i) 5,000,000 shares (the "<u>Company Shares</u>") of the Common Stock to be issued and sold by the Company; and (ii) 750,000 shares of Common Stock (the "<u>Option Shares</u>" and together with the Company Shares, the "<u>Shares</u>") that may be sold pursuant to the underwriters' option to purchase additional shares (the "<u>Over-Allotment Option</u>") pursuant to the underwriting agreement to be entered into by and between the Company and American Trust Investment Services, Inc. and WestPark Capital, Inc., as the representatives of the underwriters (the "<u>Underwriting Agreement</u>"). This opinion is being furnished in accordance with the requirements of Item 601(b)(5) of Regulation S-K under the Securities Act.

In rendering these opinions, we have examined the Company's articles of incorporation and bylaws, both as currently in effect, the Registration Statement, and the exhibits thereto, including the form of Underwriting Agreement, and such other records, instruments and documents as we have deemed advisable in order to render these opinions. In such examination, we have assumed the genuineness of all signatures, the legal capacity of all natural persons, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as certified, conformed or photostatic copies and the authenticity of the originals of such latter documents. In providing these opinions, we have further relied as to certain matters on information obtained from officers of the Company.

1185 AVENUE OF THE AMERICAS \| 31ST FLOOR \| NEW YORK, NY \| 10036

T (212) 930-9700 \| F (212) 930-9725 \| WWW.SRFC.LAW

Based upon the foregoing and in reliance thereon, and subject to the qualifications, limitations, exceptions and assumptions set forth herein, we are of the opinion that, having been issued and sold in exchange for payment in full to the Company of all consideration required therefor as applicable, and as described in the Registration Statement:

&nbsp;&nbsp;&nbsp;&nbsp;(i) The issuance and sale of the Company Shares, has been duly authorized
by all necessary corporate action on the part of the Company and, when issued and sold in the manner described in the Registration Statement,
the Company Shares, will be validly issued, fully paid and non-assessable shares of Common Stock of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;(ii) The issuance and sale of the Option Shares, has been duly
authorized by all necessary corporate action on the part of the Company and, when issued and sold pursuant to the exercise of the
Over-Allotment Option in the manner described in the Registration Statement, the Option Shares will be validly issued, fully paid, and
non-assessable shares of Common Stock of the Company;

Our opinion is limited to the Chapter 78 of the Nevada Revised Statutes and the reported judicial decisions interpreting such statute and provisions, the laws of the state of New York and the federal laws of the United States of America.. We express no opinion as to the effect of the law of any other jurisdiction. Our opinion is rendered as of the date hereof, and we assume no obligation to advise you of changes in law or fact (or the effect thereof on the opinions expressed herein) that hereafter may come to our attention. This opinion letter is limited to the laws in effect as of the date the Registration Statement is declared effective by the Commission and is provided exclusively in connection with the public offering contemplated by the Registration Statement.

This opinion letter speaks only as of the date hereof and we assume no obligation to update or supplement this opinion letter if any applicable laws change after the date of this opinion letter or if we become aware after the date of this opinion letter of any facts, whether existing before or arising after the date hereof, that might change the opinions expressed above.

This opinion letter is furnished in connection with the filing of the Registration Statement and may not be relied upon for any other purpose without our prior written consent in each instance. Further, no portion of this letter may be quoted, circulated or referred to in any other document for any other purpose without our prior written consent.

We consent to the use of this opinion as Exhibit 5.1 to the Registration Statement and further consent to all references to us, if any, in the Registration Statement, and in the Prospectus forming a part thereof. We do not thereby admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission thereunder. We assume no obligation to advise you of any fact, circumstance, event or change in the law or the facts that may hereafter be brought to our attention, whether or not such occurrence would affect or modify any of the opinions expressed herein.

[*Signature page follows*]

1185 AVENUE OF THE AMERICAS \| 31ST FLOOR \| NEW YORK, NY \| 10036

T (212) 930-9700 \| F (212) 930-9725 \| WWW.SRFC.LAW

---

| |
|:---|
| Very truly yours, |
| /s/ Sichenzia Ross Ference Carmel LLP |
| Sichenzia Ross Ference Carmel LLP |

---

1185 AVENUE OF THE AMERICAS \| 31ST FLOOR \| NEW YORK, NY \| 10036

T (212) 930-9700 \| F (212) 930-9725 \| WWW.SRFC.LAW

## Exhibit 23.1

**Exhibit 23.1**

**Consent of Independent Registered Public Accounting Firm**

We consent to the use, in this Registration Statement on Form S-1, of our report dated December 22, 2025, related to the consolidated financial statements of Collab Z Inc. as of September 30, 2025 and 2024, and for the years then ended. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ dbbmckennon

Newport Beach, California

May 22, 2026

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **S-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Collab Z Inc.**  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Calculation or Carry Forward Rule**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Rate**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Common Stock | 457(o) | $5750000.00 | 0.0001381 | $794.07 |
| Fees Previously Paid | 2 | Equity | Common Stock | 457(o) | $17250000.00 |  | $2382.22 |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | $23000000.00  |  | $3176.29  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  | $1401.93  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  |  |  | $980.30  |
|  |  |  | Net Fee Due:  | Net Fee Due:  |  |  | $794.06  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Offering Note** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>1</sup> Estimated solely for the purpose of determining the amount of registration fee in accordance with Rule 457(o) under the Securities Act of 1933, as amended (the "Securities Act"). Pursuant to Rule 416 under the Securities Act, the securities being registered hereunder include such indeterminate number of additional shares of common stock as may be issued after the date hereof as a result of share sub-divisions, share capitalization or similar transactions. Includes shares of common stock that may be purchased by the underwriter pursuant to their over-allotment option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>2</sup> The Registrant's Registration Statement on Form S-1 (Registration No. 333-293881) was initially filed on February 21, 2026, registering $17,250,000 in securities with a total registration fee of $2,382.23. Of this amount, $1,401.93 was paid in cash and $980.30 was applied as a fee offset pursuant to Rule 457(b) from the Registrant's prior Registration Statement on Form S-1 (Registration No. 333-288817), which was initially filed on July 21, 2025, became effective on November 9, 2025, and was terminated with no sales of securities thereunder.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | Registrant or Filer Name | Form or Filing Type | File Number | Initial Filing Date | Filing Date | Fee Offset Claimed | Fee Paid with Fee Offset Source |
| **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims | 1 |  | S-1 | 333-288817 | 07/21/2025 |  | $980.30 |  |
| Fee Offset Sources |  | COLLAB Z INC. | S-1 | 333-288817 |  | 07/21/2025 |  | $980.30 |
| **Rule 457(p)** | **Rule 457(p)** | **Rule 457(p)** | **Rule 457(p)** | **Rule 457(p)** | **Rule 457(p)** | **Rule 457(p)** | **Rule 457(p)** | **Rule 457(p)** |
| Fee Offset Claims |  |  |  |  |  |  |  |  |
| Fee Offset Sources |  |  |  |  |  |  |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Explanation of the basis for claimed offset:** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>1</sup> The Registrant's Registration Statement on Form S-1 (Registration No. 333-288817) was initially filed on July 21, 2025, and became effective on November 9, 2025. The offering under the previous Form S-1 was terminated, and there were no sales of the Registrant's securities under such Registration Statement.