UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-K

☒	ANNUAL REPORT PURSANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the fiscal year ended December 31, 2022

Or

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from __________ to __________

Commission File Number: 001-35923 

AUSCRETE CORPORATION

(Exact name of registrant as specified in its charter)

Wyoming	27-1692457
(State of Incorporation)	(IRS Employer ID Number)

49 John Day Dam Road, Goldendale, WA 98920

(Address of principal executive offices and Zip Code)

Registrant’s telephone number, including area code (509) 261-2525

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Each Exchange on Which Registered
Common Stock, par value 0.0001	OTCPink

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large Accelerated filer, an Accelerated filer, a non-Accelerated filer, or a smaller reporting company. Or an emerging growth company.

See the definitions of "large Accelerated filer," "Accelerated filer," "non-Accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

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 the new or revised financial accounting standards provided pursuant to Section13(a)of the Exchange Act

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The aggregate market value of common stock held by non-affiliates of the registrant as of June 30, 2022 was $469,708 based upon 16,775,271 shares held by non-affiliates and the closing price of $0.028per share. Accordingly, effective as of June 30, 2022, the registrant’s aggregate market value was less than $75 million and the registrant qualifies for “smaller reporting company” status under Rule 12b-2 of the Exchange Act and is subject to the disclosure requirements and filing deadlines for smaller reporting companies.

APPLICABLE TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☐   No ☒

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock. The number of shares outstanding of the issuer's common stock as of April 10, 2023 was 75,811,229 shares.

AUSCRETE CORPORATION

DECEMBER 31, 2022

TABLE OF CONTENTS

		Page
PART I
Item 1 -	Business	3
Item 1A -	Risk Factors	4
Item 2 -	Properties	4
Item 3 -	Legal Proceedings	4
Item 4 -	Mine Safety Disclosures	4
PART II
Item 5 -	Market for Registrant's Common Equity, related Stockholder Matters and Issuer Purchases of Equity Securities	5
Item 6 -	Selected Financial Data	5
Item 7 -	Management's Discussion and Analysis of Financial Condition and Results of Operations	5
Item 8 -	Financial Statements and Supplementary Data	10
	Report of Independent Registered Public Accounting Firm	11
	Balance Sheets as at December 31, 2022 and 2021	12
	Statements of Operations for the period ended December 31, 2022 and 2021	13
	Statements of Changes in Shareholders' Equity for the period ended December 31, 2022 and 2021	14
	Statements of Cash Flows for the period ended December 31, 2022 and 2021	15
	Notes to Financial Statements	16
Item 9 -	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	24
Item 9A -	Controls and Procedures	24
Item 9B -	Other Information	24
PART III
Item 10 -	Directors, Executive Officers and Corporate Governance	25
Item 11 -	Executive Compensation	27
Item 12 -	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	28
Item 13 -	Certain Relationships and Related Transactions, and Director Independence	28
Item 14 -	Principal Accounting Fees and Services	29
PART IV
Item 15 -	Exhibits	30
	Exhibits 31.1 and 32.1 Certifications of the Sarbanes-Oxley Act of 2002	Attached
Signatures		31

2

PART I

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

We make forward-looking statements in this annual report that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words “believe”, “expect”, “anticipate”, “estimate”, “intend”, “should”, “may”, “plans”, “projects”, “will”, or similar expressions, or the negative of these words, we intend to identify forward-looking statements. Statements regarding the following subjects are forward-looking by their nature:

Although Registrant believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties, which may cause the actual results to differ materially from those anticipated in the forward-looking statements. Such factors include, but are not limited to, the following: general economic and business conditions, which will, among other things, affect demand for housing, the availability of prospective buyers; adverse changes in Registrant's real estate and construction market; including, among other things, competition with other manufacturers, risks of real estate development and acquisitions; governmental actions and initiatives; and environmental/safety requirements.

ITEM 1. BUSINESS

Our Company Overview

Auscrete Corporation was formed as an enterprise to take advantage of technologies developed for the construction of affordable, thermally efficient and structurally superior commercial structures and residential housing. This "GREEN" product is the culmination of design and development since the early 1980's and is the result of the amalgamation of various material developments, taking an idea to a product and further developing that product to address an ongoing problem in the world's largest consumer marketplace, the quest for affordable, efficient and enduring housing. Auscrete's structures are monetarily highly competitive. A turnkey house, ready to move in sells for around $110-$120 per square foot. That is very competitive in today's market but is brought about by Auscrete's ability to manufacture large building products in mass production format. Each house is constructed on site and this produces an attractive site-built home, a durable home that will combat all kinds of adverse weather and age conditions. It will not burn, is not affected by termites or rot, its thermal efficiency saves extensively on energy costs, has extreme longevity and has very low maintenance needs.

Founder's Development Activities to Date

Auscrete's CEO and founder, John Sprovieri, possessed certain proprietary technology in lighter-weight concrete manufacturing that has been acquired by the corporation. He has applied his engineering and marketing expertise to develop and promote products under the product name, Auscretehomes and Auscrete. These products are the culmination of the refinements made to a technology developed in Australia in the mid 1980's. The Australian product has been used in many parts of the world in construction, and Mr. Sprovieri has further developed it in the US by creating a highly thermally efficient building system. The process enables infusion of millions of tiny air bubbles and EPS insulation into a special inert concrete mix enabling the creation of an insulated and lightweight product without sacrificing strength or structural integrity.

Since commencing re-development of the basic technology almost thirteen years ago, Mr. Sprovieri has refined and modified the basic insulating formula that involves a number of purpose-built machines that have been fabricated for the manufacturing of Auscrete’s product.

The process includes machinery that can produce and infuse various sized aggregates, product specific hydraulically operated casting beds, concrete batching plant, materials handling equipment, specialized finishing machines and a "Hot Box" materials thermal testing station that gives thermal "R" ratings of materials to ASTM specifications. Additionally, many sample panels were produced for testing and for the construction of structures. At the outset and putting the Company’s technology to practical use, Auscrete Corporation has produced many and varied housing and commercial buildings.

3

Future Strategy

Auscrete Corporation intends to position itself as a major supplier in the affordable housing market. Housing is generally considered "affordable" when its cost does not exceed 30 percent of the median family income in a given area. In many parts of the country, housing costs have shown signs of adversely affecting workers, corporations and local economies. Yet still the availability of affordable housing is becoming increasingly scarce forcing large numbers of working families to live on the streets overwhelming Governmental services.

The company is offering a product that not only makes housing affordable, but also offers some luxuries as well, such as standard heat pump/air conditioning that would not be available in other houses at such comparable pricing. By constructing using the Auscrete Building System, those luxuries will result in lower cost utilities and a comfortable 'feel' to the living environment, as can be achieved with a product offering excellent thermal and soundproofing qualities as well as superb fire resistance.

Developers and contractors will offer the homes as complete, turnkey ready constructed site-built dwellings. Even though they are technologically advanced, they are just plain good value masonry homes built of a time proven product, concrete.

Auscrete can economically deliver whole house panel sets throughout the entire West Coast and as far away as Texas or Alberta, Canada servicing a fast-emerging market in this above average, affordable housing growth area.

The company plans on selling most of its output to developers, contractors and builders who will purchase the complete set of wall, roof and interior panels from Auscrete and use their own construction crews to construct and complete the houses.

ITEM 1A. RISK FACTORS

Not required for smaller reporting companies.

ITEM 2. PROPERTIES.

In 2019 the Company divested its ownership of a 5-acre Industrial Property in Goldendale WA repurposing the investment to capital used for major specialized plant equipment.

In June of that year the Company moved its Manufacturing Plant operations into an 8,000 sq. ft. facility located in the outer Goldendale area. The Companies month-to-month facility total rental payments for 2022 were $24,000.

ITEM 3. LEGAL PROCEEDINGS.

The Company is not party to any material pending legal proceedings as described in Item 103 of Regulation S-K.

ITEM 4. MINE SAFETY DISCLOSURES.

Not Applicable.

4

PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

The company’s stock is listed on the OTCPINK under the symbol "ASCK". The company has not repurchased stock or declared or paid dividends on its capital stock in 2022.

ITEM 6. SELECTED FINANCIAL DATA.

Not required for smaller reporting companies.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Forward-Looking Statements

All statements other than statements of historical fact included in "Management's Discussion and Analysis of Financial Condition and Results of Operations" are forward-looking statements. Forward-looking statements involve various important assumptions, risks, uncertainties and other factors which could cause our actual results to differ materially from those expressed in such forward-looking statements. Forward-looking statements in this discussion can be identified by words such as "anticipate," "believe," "could," "estimate," "expect," "plan," "intend," "may," "should" or the negative of these terms or similar expressions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance or achievement. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors including but not limited to, competitive factors and pricing pressures, changes in legal and regulatory requirements, cancellation or deferral of customer orders, technological change or difficulties, difficulties in the timely development of new products, difficulties in manufacturing, commercialization and trade difficulties and general economic conditions as well as the factors set forth in our public filings with the Securities and Exchange Commission.

You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this Annual Report or the date of any document incorporated by reference, in this Annual Report. We are under no obligation, and expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

For these statements, we claim the protection of the safe harbor for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934.

The Company's financial statements have been presented on the basis that it will continue as a going concern. The Company has not generated revenues from construction related operations to date. The Company has an Accumulated deficit of $13,371,184 as of December 31, 2022, which raises substantial doubt about the Company’s ability to continue as a going concern.

To the extent that the Company's capital resources are not adequate to meet current and planned operating requirements, the Company will use additional funds through equity and debt financing, collaborative or other arrangements with corporate partners, licensees or others, and from other sources, which may have the effect of diluting the holdings of existing shareholders. The Company has subsequent current arrangements with respect to, or sources of, such additional financing and the Company does not anticipate that existing shareholders will be required to provide any portion of the Company's future financing requirements.

No assurance can be given that additional financing will be available when needed or that such financing will be available on terms Acceptable to the Company. If adequate funds are not available, the Company may be required to delay or terminate expenditures for certain of its programs that it would otherwise seek to develop and commercialize. This would have a material adverse effect on the Company and raise doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that may result from the outcome of this uncertainty.

5

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

The summary of significant accounting policies of Auscrete Corporation is presented to assist in the understanding of the Company's financial statements. The financial statements and notes are representations of the Company’s management, who is responsible for their integrity and objectivity. You should read this section together with our financial statements and related notes thereto included elsewhere in this report.

The financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).

Please see the notes to the financial statements for further discussion on Significant accounting policies.

GOING CONCERN AND PLAN OF OPERATION

The Company's financial statements have been presented on the basis that it will continue as a going concern. The Company did not generate revenues from construction related operations during the period ending December 31,2022. The Company has an Accumulated deficit of $13,367,354 as of December 31, 2022 and no current revenue stream, which raises substantial doubt about the Company’s ability to continue as a going concern.

The Company will use additional funds through equity and debt financing, collaborative or other arrangements with corporate partners, licensees or others, and from other sources, which may have the effect of diluting the holdings of existing shareholders. The Company has subsequent current arrangements with respect to, or sources of, such additional financing and the Company does not anticipate that existing shareholders will be required to provide any portion of the Company's future financing requirements.

No assurance can be given that additional financing will be available when needed or that such financing will be available on terms acceptable to the Company. If adequate funds are not available, the Company may be required to delay or terminate expenditures for certain of its programs that it would otherwise seek to develop and commercialize. This would have a material adverse effect on the Company and raise doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that may result from the outcome of this uncertainty.

RELATED PARTY TRANSACTIONS

As of December 31, 2022, and December 31, 2021, the balance owed to John Sprovieri was $0 and $0 respectively.

Results of Operations

Results of Operations comparison of the fiscal year ended December 31, 2021 to the fiscal year ended December 31, 2022.

During the twelve-month period ended December 31, 2022 the Company had commenced its manufacturing operations which brought material operational changes from the last audited financials of December 31, 2021. Revenue for the twelve months ending December 31, 2022, was $0 compared to $0 for the same period in 2021.

The company had a net loss of $(257,348) for the year ended December 31, 2022 compared to a net loss of $(3,064,028) for the year ended December 31, 2021. The main reason is the decrease in share-based expense from $0 in 2022 compared to $2,683,227 in 2021.

The company's operational expenses during 2022 were involved in fund-raising, day to day operations, payroll, facility lease, utilities, compliance fees, equipment and materials purchases. 

6

The company acquired access to investment funds which were to produce results in limited cash acquisitions throughout 2022 and 2021.

The intended set up of facilities and subsequent operations of the company, being the manufacture of construction products for commercial and residential structures, had begun during 4^th quarter of 2021 with the first contracted home beginning construction.

For the twelve months ended December 31, 2022 our accounting and legal was $40,740 compared to $5,000 for the same period in 2021. This was mainly due to increase in legal and accounting fees. 

For the twelve months ended December 31, 2022 our salaries expense was $157,700 compared to $217,486 for the same period in 2021. The decrease in salaries expense was mainly due to an decrease in executive compensation.

For the twelve months ended December 31, 2022 our share-based expense was $0 compared to $2,683,227 for the same period in 2021. During the Period January 1, 2021 to December 31, 2021 there were 53,238,652 shares issued to key individuals for service compensation to the Company.

For the twelve months ended December 31, 2022 our rent expense was $14,000 compared to $26,123, for the same period in 2021. Contract ongoing as is with no changes to original contract.

For the twelve months ended December 31, 2022 our G&A expense was $122,815 compared to $123,330 for the same period in 2021.

For the twelve months ended December 31, 2022 our depreciation expense was $11,940 compared to $11,940 for the same period in 2021.

For the twelve months ended December 31, 2022 our gain / (loss) on derivatives was $248,563, compared to $114,452 for the same period in 2021. Some notes were complete during the period.

For the twelve months ended December 31, 2022 our gain on debt forgiveness was $48,779 compared to $24,120 for the same period in 2021.

For the twelve months ended December 31, 2022 our financing expense was $0 compared to $(3,234) for the same period in 2021. Current notes are fixed price and discounts can’t be manipulated by noteholders.

For the twelve months ended December 31, 2022 our Interest expense was $(207,495) compared to $(117,152) for the same period in 2021.

For the Twelve months ended December 31, 2022 our net loss was $(257,348) compared to $(3,064,028) for the same period in 2021. As there were no major asset purchases, therefore lower operational costs.

At the time of filing the Company has fully implemented its planned start-up strategy which has now positioned itself in an operational state of production.

The Company’s specialized systems and major new equipment procurements have been integrated and installed into a fully operational batch plant and product manufacturing has commenced.

The Company is at the stage of delivering full house sets as its next tactical step in securing self-sustaining revenue capital.

7

Liquidity and Capital Resources

We have had minimal operating activity since inception of the company in 2010. Our 2022 short-term obligations were covered by funding received from convertible notes with a total value of $288,000 issued in 2022.

Net cash used in operating activities was $271,184 in the year ended December 31, 2022 compared to net cash used in operating activity of 359,297 for the year ended December 31, 2021.

Net cash used in investing activities was $0 in the year ended December 31, 2022. Net cash used in activities for the year ended December 31, 2021 was $(918).

Net cash provided by financing activities was $282,376 in the year ended December 31, 2022. Net cash provided by financing activities in the year ended December 31, 2021 was $345,624.

As of December 31, 2022, the Company had inadequate cash to operate its business at the current level for the next six months and to achieve its business goals. The success of our business plan during and beyond the next 6 months will be provided by additional loan financing and revenues of a minimum of $300,000.

Financing

Auscrete Corporation, a Wyoming public company was incorporated on December 31, 2009 and first became effective for an IPO with the SEC on August 16, 2012. It was established to finance an expansion of a current pilot facility operated by the founders in Rufus, OR. The IPO was not commenced and expired in February 2014. The company became Effective with a Registration Statement in December 2014 registering shareholder held shares for sale enabling re-application to FINRA for listing on the

OTCPink. The company engaged the services of a registered broker-dealer and market maker, Glendale Securities, LLC, who subsequently applied with the Financial Industry Regulatory Authority (FINRA). 

Use of Funds Raised Through Financing

Initial Stage One targeted funding was $1.2 million and the company, during 2018, had purchased 5 acres of land on the Goldendale Industrial Estate. Initially it cost $102,000, including fees, to purchase the land.

In 2019 a change in Company strategy brought Management to make the decision to sell back its land investment and utilize the funds to establish an operational plant within a newly leased facility also in the Goldendale Washington area.

During the fiscal year both land sale funds and additional capital raised were used for major production equipment purchases and to fabricate startup provisions within a newly plant facility.

This Corporate profit orientated decision has provided greater advantageous results in assuring faster revenue generation.

The balance was used for working capital and expenses including wages, marketing and other working capital and reserves.

Marketing

Principal marketing efforts are initially aimed at leveraging specific contacts and relationships that have developed over the last 12 years since the inception of the founders’ pilot plant.

The company has interviewed and chosen an experienced real estate marketing agent who will bring with him a multitude of contacts and interested customer inquiries.

The Company is actively placing itself in the position to be a major supplier in the smaller home market. The structures will be on average 100 to 600 square feet, and consist of a number of floor plans and varying interior options. These much-desired structures would support urban community transitioning efforts for houseless populations and builders seeking to construct these smaller homes on their properties.

8

Auscrete's product is also extremely suitable for the construction of commercial and industrial structures. Company marketing will also explore the commercial world for applications and it is believed that such construction will become a large part of the company's future direction.

Financial Projections

The typical midsized affordable home market consists of structures in the range of 1,100 - 3,000 sq. ft. These will sell to the contractor or developer for around $80K-$200K with the average being over $150,000.

The Company plans on marketing its small 300 to 800 sq ft homes in the neighborhood of $40K-$100K on average.  

Obviously, the company will look to increase output to meet future demands and expects to do this through internal financing.

Off-balance Sheet Arrangement

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders. 

ITEM 7a. QUANTITIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

The company has no exposure at this time.

9

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

FINANCIAL STATEMENTS
Report of Independent Registered Public Accounting Firm – Fruci & Associate II, PLLC PCAOB ID. 5525.	11
Balance Sheets as of December 31, 2022 and 2021	12
Statements of Operations for the years ended December 31, 2022 and 2021	13
Statements of Changes in Stockholders' Equity for the Period ended December 31, 2022 and 2021	14
Statements of Cash Flows for the years ended December 31, 2022 and 2021	15
Notes to Financial Statements	16

10

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of Auscrete Corporation

Opinion on the Financial Statements

We have audited the accompanying balance sheets of Auscrete Corporation (“the Company”) as of December 31, 2022 and 2021, and the related statements of operations, changes in shareholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2022, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021 and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.

Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has not yet generated sufficient revenues and has a significant accumulated deficit. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinion

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

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

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

Accounting for Embedded Conversion Features on Notes Payable — Refer to Note 8 to the financial statements

Critical Audit Matter Description

The Company has issued several notes payable during the year with conversion rates that are adjustable at a discounted rate to market prices. The terms allow for variable amounts of shares to be converted for a set dollar value; this and other factors require the embedded conversion feature to be bifurcated and evaluated at each reporting period. Calculations and accounting for the notes payable and embedded conversion features require management’s judgments related to initial and subsequent recognition of the debt and related conversion features, use of a valuation model, and determination of appropriate inputs used in the selected valuation model.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to evaluating the Company’s accounting for notes payable and related accounts included the following, among others:

· Performed confirmation procedures and evaluated relevance and reliability of management data.

· Assessed the completeness and accuracy of valuation data provided by Company by performing independent calculations based on the model and comparing the Company’s results for reasonableness.

· Evaluated any unusual transactions related to notes payable and the appropriate accounting treatment in accordance with generally accepted accounting principles.

We have served as the Company’s auditor since 2014.

Spokane, Washington

April 17, 2023

11

AUSCRETE CORPORATION
BALANCE SHEETS
	December 31,			December 31,
	2022			2021
ASSETS
CURRENT ASSETS:
Cash	$	11,192		$	-
Accounts Receivable		11,751			8,000
Prepaid Expenses		1,543			6,202
Inventory		22,470			6,197
TOTAL CURRENT ASSETS		46,956			20,399
Property, Plant and Equipment (net)		28,252			40,193
TOTAL ASSETS	$	75,208		$	60,592
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Bank Overdraft	$	-		$	5,624
Accounts Payable and Accrued Expenses		168,059			121,170
Accrued Interest Payable		72,064			231,373
Deferred Revenue		11,250			-
Notes Payable (net of discount)		1,376,461			890,139
Derivative Liability		80,774			295,306
TOTAL CURRENT LIABILITIES		1,708,608			1,543,612
TOTAL LIABILITIES		1,708,608			1,543,612
Commitments and Contingencies		-			-
STOCKHOLDERS' EQUITY (DEFICIT)
Common Stock, 0.0001 par value, authorized 2,000,000,000 shares
62,957,291 and 56,798,678 shares issued and outstanding as of December 31, 2022 and December 31, 2021 respectively, restated to APIC below for the 40 for 1 reverse stock split.		6,295			5,679
Additional Paid In Capital		11,727,659			11,621,307
Shares to be issued		-			-
Accumulated deficit		(13,367,354	)		(13,110,006	)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)		(1,633,400	)		(1,483,020	)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$	75,208		$	60,592

The accompanying notes are an integral part of these financial statements

12

AUSCRETE CORPORATION
STATEMENTS OF OPERATIONS
For the years ended December 31,
	2022			2021
REVENUE	$	-		$	-
Cost of Goods sold		-			15,108
Gross Profit		-			(15,108	)
EXPENSES
Accounting and Legal		40,740			5,000
Salaries and wages		157,700			217,486
Share based expense for wages and consulting		-			2,683,227
Rent		14,000			26,123
G&A Expenses		122,815			123,330
Depreciation expense		11,940			11,940
TOTAL EXPENSES		347,195			3,067,106
Income (loss) from operations		(347,195	)		(3,082,214	)
OTHER INCOME (EXPENSES)
Gain / (Loss) on derivative		248,563			114,452
Gain / (Loss) on debt forgiveness		48,779			24,120
Financing cost		-			(3,234	)
Interest Expense		(207,495	)		(117,152	)
TOTAL OTHER INCOME (EXPENSES)		89,847			18,186
INCOME (LOSS) BEFORE TAXES		(257,348	)		(3,064,028	)
Provision for Income Taxes		-			-
NET INCOME (LOSS)	$	(257,348	)	$	(3,064,028	)
NET INCOME (LOSS) PER COMMON SHARE - BASIC AND DILUTED	$	(0.00	)	$	(0.21	)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED		58,123,770			14,491,751

The accompanying notes are an integral part of these financial statements

13

AUSCRETE CORPORATION
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
as of December 31, 2022
	Common Stock					Additional Paid in		Accumulated
	Shares		Amount			Capital		Deficit			TOTAL
Balance December 31, 2020		3,428,652	$	372		$	8,897,873	$	(10,045,978	)	$	(1,147,734	)
Note conversion		130,409		13			45,502					45,515
Round up shares		965		(29	)		29					-
Shares issued for services		53,238,652		5,324			2,677,903					2,683,227
												-
Net Profit (Loss)									(3,064,028	)		(3,064,028	)
												-
Balance, December  31, 2021		56,798,678	$	5,679		$	11,621,307	$	(13,110,006	)	$	(1,483,020	)
Note conversion		6,158,613		616			106,352					106,968
												-
Net Profit (Loss)									(257,348	)		(257,348	)
												-
Balance, December  31, 2022		62,957,291		6,295			11,727,659		(13,367,354	)		(1,633,400	)

The accompanying notes are an integral part of these financial statements

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AUSCRETE CORPORATION
STATEMENT OF CASH FLOWS
For the years ended December 31,
	2022			2021
OPERATING ACTIVITIES
Net Income (Loss)	$	(257,348	)	$	(3,064,028	)
Finance Costs		-			55,234
Depreciation		11,940			11,940
Gain on Debt Forgiveness		(248,563	)		(24,120	)
Share based expense\		-			2,683,227
Change in other assets		4,659			(2,180	)
Change in Accounts Receivable		(3,751	)		-
Change in Inventory		16,273			-
Change in Accounts Payable and Accrued Expenses		(112,420	)		118,365
Change in Deferred revenue		11,250			-
Change in Derivative and Note Discount		306,776			(137,735	)
Net Cash Used by Operating Activities		(271,184	)		(359,297	)
INVESTING ACTIVITIES:
Purchase of Equipment		-			(918	)
Net cash used by investing activities		-			(918	)
FINANCING ACTIVITIES:
Bank Overdraft / (Repayment)		(5,624	)		5,624
Proceeds from notes payable		288,000			340,000
Net cash provided by financing activities		282,376			345,624
NET INCREASE (DECREASE) IN CASH		11,192			(14,591	)
CASH AT BEGINNING OF PERIOD		-			14,591
CASH AT END OF PERIOD	$	11,192		$	-
Supplemental Cashflow Information
Interest Paid	$	-		$	-
Taxes Paid	$	-		$	-

The accompanying notes are an integral part of these financial statements

15

AUSCRETE CORPORATION

UNAUDITED NOTES TO FINANCIAL STATEMENTS

December 31, 2022

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

HISTORY

Auscrete Corporation (“the Company”) was formed as an enterprise to take advantage of technologies developed for the construction of affordable, thermally efficient and structurally superior housing. This “GREEN” product is the culmination of design and development since the early 1980’s. The company’s Registration Statement outlines the result of the amalgamation of various material development stages, taking an idea to a product and further developing that product to address an ongoing problem in the world’s largest marketplace, the quest for affordable, efficient and enduring housing. Auscrete’s structures are monetarily highly competitive. A turnkey house, ready to move in sells for around $110-120 per square foot. That is very low in today’s market but is brought about by Auscrete’s ability to manufacture large panels in mass production format. The house is virtually “fastened” together on site to produce an attractive site-built home, a home that will stay where it is put through all kinds of adverse weather and age conditions. It will not burn, is not affected by bugs, termites or rot, it saves extensively on energy costs and has very low maintenance needs.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

The summary of significant accounting policies of Auscrete Corporation is presented to assist in the understanding of the Company's financial statements. The financial statements and notes are representations of the Company’s management, who is responsible for their integrity and objectivity.

The financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).

INCOME TAXES

On December 22, 2017, H.R. 1, originally known as the Tax Cuts and Jobs Act, (the “Tax Act”) was enacted. Among the significant changes to the U.S. Internal Revenue Code, the Tax Act lowers the U.S. federal corporate income tax rate (“Federal Tax Rate”) from 35% to 21% effective January 1, 2018. The Company will compute its income tax expense for the year ended December 31, 2022, using a Federal Tax Rate of 21%.

Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes – Recognition. Under this approach, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end. A valuation allowance is recorded against deferred tax assets if management does not believe the Company has met the “more likely than not” standard required by ASC 740-10-25-5.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist primarily of cash in banks and highly liquid investments with original maturities of 90 days or less. There were $11,192 cash equivalents as of December 31, 2022, and $(5,624) as of December 31, 2021.

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Fair Value Measurements

The Company adopted guidance which defines fair value, establishes a framework for using fair value to measure financial assets and liabilities on a recurring basis, and expands disclosures about fair value measurements. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent sources. Unobservable inputs are inputs that reflect the Company’s assumptions of what market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of the inputs as follows:

Level 1 - Valuation is based upon unadjusted quoted market prices for identical assets or liabilities in accessible active markets.

Level 2 - Valuation is based upon quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable in the market.

Level 3 - Valuation is based on models where significant inputs are not observable. The unobservable inputs reflect a company’s own assumptions about the inputs that market participants would use.

The Company’s financial instruments consist of cash, prepaid expenses, inventory, accounts payable, convertible notes payable, advances from related parties, and derivative liabilities. The estimated fair value of cash, prepaid expenses, investments, accounts payable, convertible notes payable and advances from related parties approximate their carrying amounts due to the short-term nature of these instruments.

The Company’s derivative liabilities have been valued as Level 3 instruments.

	Level 1		Level 2		Level 3		Total
Fair value of convertible notes derivative liability – December 31, 2021	$	-	$	-	$	295,306	$	295,306

Fair value of convertible notes derivative liability – December 31, 2021

	Level 1		Level 2		Level 3		Total
Fair value of convertible notes derivative liability – December 31, 2022	$	-	$	-	$	80,774	$	80,774

Fair value of convertible notes derivative liability – December 31, 2022

REVENUE RECOGNITION POLICY

The Company recognizes revenue under ASU No. 2014-09, ”Revenue from Contracts with Customers (Topic 606),” (“ASC 606”). The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods and services transferred to the customer. The following five steps are applied to achieve that core principle:

· Identify the contract with the customer

· Identify the performance obligations in the contract

· Determine the transaction price

· Allocate the transaction price to the performance obligations in the contract

· Recognize revenue when the company satisfies a performance obligation

For the years ended December 31, 2022, our revenue was $0.

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COST OF SALES

Amounts that will be recorded as cost of sales relate to direct expenses incurred in order to fulfill orders of our products. Such costs are recorded as incurred. Our cost of sales will consist primarily of the cost of product; labor, selling costs and the cost of G&A expenses.

PROPERTY AND EQUIPMENT

Property and Equipment was stated at historical cost less Accumulated depreciation and amortization. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use.

Depreciation is provided on a straight-line basis over the assets’ estimated useful lives. The useful lives of the assets are as follows: equipment 7-years, vehicles 7-years, and buildings 30-years. Additions and improvements are capitalized while routine repairs and maintenance are charged to expense as incurred. Upon sale or disposition, the historically recorded asset cost and Accumulated depreciation are removed from the Accounts and the net amount less proceeds from disposal is charged or credited to other income or expense.

IMPAIRMENT OF LONG-LIVED ASSETS

We evaluate long-lived assets for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate their net book value may not be recoverable. When these events occur, we compare the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of those assets and is recorded in the period in which the determination is made. There can be no assurance, however, that market conditions will not change or demand for the Company’s products will continue. Either of these could result in the future impairment of long-lived assets. Estimates of fair value are determined through various techniques, including discounted cash flow models and market approaches, as considered necessary.

LOSS PER COMMON SHARE

Basic loss per common share is computed based upon the weighted average number of common shares outstanding during the period. Diluted earnings per share consists of the weighted average number of common shares outstanding plus the dilutive effects of options and warrants calculated using the treasury stock method. In loss periods, dilutive common equivalent shares are excluded as the effect would be anti-dilutive. It is estimated that the Company will issue approximately 22,700,000 as a result of conversion of notes. Included in the year ended December 31, 2022, all calculations reflect the effects of the 40 to 1 reverse stock split done on February 22, 2020. Fully diluted weighted average common shares and equivalents were withheld from the calculation as they were considered anti-dilutive.

RECLASSIFICATION

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported income, total assets, or stockholders’ equity as previously reported. 

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USE OF ESTIMATES

The preparation of the financial statements in conformity with generally Accepted Accounting principles 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 periods. Actual results could differ from those estimates and assumptions.

EMERGING GROWTH COMPANY

The Company qualifies as an Emerging Growth Company, thus takes advantage of the 1-year deferral period for the adoption of all new accounting standards updates.

NOTE 2 - GOING CONCERN AND PLAN OF OPERATION

The Company’s financial statements have been presented on the basis that it will continue as a going concern. The Company has not generated revenues from construction related operations to date. The Company has an Accumulated deficit of $13,367,354 as of December 31, 2022, which raises substantial doubt about the Company’s ability to continue as a going concern.

The Company will use additional funds through equity and debt financing, collaborative or other arrangements with corporate partners, licensees or others, and from other sources, which may have the effect of diluting the holdings of existing shareholders. The Company has subsequent current arrangements with respect to, or sources of, such additional financing and the Company does not anticipate that existing shareholders will be required to provide any portion of the Company’s future financing requirements.

No assurance can be given that additional financing will be available when needed or that such financing will be available on terms Acceptable to the Company. If adequate funds are not available, the Company may be required to delay or terminate expenditures for certain of its programs that it would otherwise seek to develop and commercialize. This would have a material adverse effect on the Company and raise doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that may result from the outcome of this uncertainty.

NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS

Update 2020-06—Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This was issued in August of 2020 and will become effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. We are in the process of evaluating the impact to the company.

NOTE 4 - RELATED PARTY TRANSACTIONS

Though the company has established banking credit cards to assist with the normal everyday purchases and payments of corporate needs such as utilities etc., The CEO and other involved parties often use their own cards for this purpose and, to represent this, the company has a continuous Related Party Advances section in its financial statements. This is adjusted typically at the end of each reporting period.

As of December 31, 2022, and December 31, 2021, the balance owed to John Sprovieri was $0 and $0 respectively.

NOTE 5 - PROPERTY, INVENTORY AND EQUIPMENT

Notes to Inventory Type and Value:

Inventory consists of Finished Product and Raw Materials that are valued at the lower of cost or market. 

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Raw Materials:

Raw materials consist of rebar, insulation, surfactant, powdered cement, threaded inserts and sundry items. The cost is based on the cost of purchase from a non-related supplier. As of December 31, 2022 and December 31, 2021 the inventory value was $1,543 and $6,197 respectively.

Property and Equipment at December 31, 2022 were comprised of the following at:

	December 31, 2022			December 31, 2021
Capital Equipment	$	80,554		$	80,554
Vehicles		6,344			6,344
Accumulated Depreciation		(58,645	)		(46,705	)
Net Fixed Assets	$	28,252		$	40,193

Depreciation expense for the years ended December 31, 2022 and 2021 was $11,940 and $11,940 respectively.

NOTE 6 - EQUITY

Common Stock:

During the Period January 1, 2021 to December 31, 2021, the Company issued 1,788,703 shares for convertible note conversions.

During the Period January 1, 2022 to December 31, 2022, the Company issued 130,409 shares for convertible note conversions.

On February 22 of 2021 the company performed a 40 for 1 reverse stock split. All share amounts have been adjusted retroactively to reflect the split and adjustments have been made to reflect the par value and adjusted to additional paid in capital.

The following table is a list of the foremost 6 shareholders of the Company as of December 31, 2022.

NAME                 ADDRESS	Number of Shares
1. John & Mary Sprovieri PO Box 813, Rufus, OR 97050		40,675,923
2. CEDE & Company 570 Washington Blvd. 5th. Floor, Jersey City, NJ 07310		8,243,170
3. Kathleen D Jett PO Box 846, 618 W. First Street, Rufus, OR 97050.		6,025,352
4. Kimberly Grimm 15011 SE Mt Royale Ct. Milwaukie, OR 97267.		3,275,120
5. Michael Young 4405 Highway 30W, #407, The Dalles, OR.		1,100,000
6. William S Beers PO Box 825, Rufus, OR 97058		1,110,200

Warrants

On May 28, 2019 we issued 2,000,000 in cashless warrants in connection with the issuance of the convertible promissory note dated May 29, 2019 with Crown Bridge Partners, LLC in the amount of $27,500. These warrants have subsequently been canceled prior to December 31, 2022.

The warrants had contained a down-round feature that were triggered during 2020, and the result $12,600 of deemed dividend had been recognized as a result.

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NOTE 7 - INCOME TAXES

We currently have no current tax liability, as we have had limited revenue and incurred losses since inception.

On December 22, 2017 H.R. 1, originally known as the Tax Cuts and Jobs Act, (the “Tax Act”) was enacted. Among the significant changes to the U.S. Internal Revenue Code, the Tax Act lowers the U.S. federal corporate income tax rate (“Federal Tax Rate”) from 35% to 21% effective January 1, 2019. The Company will compute its income tax expense for the year ended December 31, 2022 using a Federal Tax Rate of 21%.

Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes – Recognition. Under this approach, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end. A valuation allowance is recorded against deferred tax assets if management does not believe the Company has met the “more likely than not” standard required by ASC 740-10-25-5.

Deferred income tax amounts reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes.

In addition, during the Period January 1, 2021 to December 31, 2021 there were 53,238,652 shares issued to these individuals to recompense post-split roll back numbers issued for service compensation to the Company. As a result the company recognized a share based expense of $2,683,227. This amount was eliminated from the net operating loss carry forward as of December 31, 2022.

Shareholder	Issued		Cost Basis
Michael A. Young		1,072,500		57,915
Otto B. Paulette		1,072,500		57,915
William S. Beers		1,082,445		58,452
Julie Jett-Regnell		1,074,957		58,048
Linda Beers		100,000		5,400
Kimberly A. Grimm		3,193,242		172,435
Kathleen D. Jett		5,874,726		317,235
Joe Hobbs		9,260		500
Rick Plotnikoff		100,000		5,400
John & Mary Sprovieri		39,659,022		2,141,587

As of December 31, 2022, we had a net operating loss carry-forward of approximately $13,367,354 and a deferred tax asset of approximately $1,992,553 using the statutory rate of 21%. The deferred tax asset may be recognized in future periods, not to exceed 20 years for 2022 and prior and post 2018 are indefinite. 

However, due to the uncertainty of future events, we have booked valuation allowance of $(1,992,553). FASB ASC 740 prescribes recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. At December 31, 2022, the Company had not taken any tax positions that would require disclosure under FASB ASC 740.

21

	December 31, 2022			December 31, 2021
Deferred Tax Asset	$	1,992,553		$	1,948,124
Valuation Allowance		(1,992,553	)		(1,948,424	)
Deferred Tax Asset (net)	$	-		$	-

The Company is subject to tax in the U.S. federal and Washington jurisdictions. These filings are subject to a three-year statute of limitations unless the returns have not been filed at which point the statute of limitations becomes indefinite. No filings are currently under examination. No adjustments have been made to reduce the estimated income tax benefit at year end. Any valuations relating to these income tax provisions will comply with U.S. generally Accepted Accounting principles.

NOTE 8 - NOTES PAYABLE AND DERIVATIVE LIABILITIES

On December 28, 2021, the company issued a 12-month Convertible Note for the sum of $38,000 to Sixth Street Lending at 6%. Convertible at 65% of the averaged 3 lowest trading prices during the prior 15 day trading period. We recognized a derivative liability in the amount of $117,851 as a result.

On March 18, 2022, the company issued a 12-month Convertible Note for the sum of $50,000 to RB Capital at 10%. Convertible at $0.06. No beneficial conversion was recognized as the conversion price was higher than the stock price.

On July 11, 2022, the company issued a 12-month Convertible Note for the sum of $50,000 to RB Capital at 10%. Convertible at $0.02. No beneficial conversion was recognized as the conversion price was higher than the stock price.

On July 15, 2022, the company issued a 12-month Convertible Note for the sum of $1,050,000 to RB Capital at 8%. Convertible at $0.05. This Note is a result of consolidation of [21] previous Notes ranging from 2/2/2018 up to and including 10/5/2021.   No beneficial conversion was recognized as the conversion price was higher than the stock price.

On September 27, 2022, the company received a 12-month line of credit for the sum of $50,000 from RB Capital at 10%.

On November 1, 2022, the company received a 12-month line of credit of $100,000 from RB Capital at 8%.

As a result of the convertible notes we recognized the embedded derivative liability on the date that the note was convertible. We also revalued the remaining derivative liability on the outstanding note balance on the date of the balance sheet. The inputs used were a weighted volatility of 157% and a risk-free discount rate of3.22% 

The convertible notes have interest rates that range from 6% to 10% per annum and default rates that range from 12% to 22% per annum. The maturity dates range from six months to one year. The conversion rates range from 60% discount to the market to 65% discount to the market. As of December 31, 2022, there were twenty-three convertible notes outstanding,

The remaining derivative liabilities valued using the level 3 inputs in the fair value hierarchy were:

	December 31, 2022		December 31, 2021
Derivative Liabilities on Convertible Loans:
Outstanding Balance		80,774		295,306

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NOTE 9 - COMMITMENTS

The company maintains a month-to-month lease agreement on an 8,000 sq. ft. facility located in outer Goldendale and monthly lease cost is $2,000. 

As of December 31, 2022 the company has not remitted all of the backup withholdings, which could result in material trust-fund penalties from the internal revenue service.

NOTE 10 - SUBSEQUENT EVENTS

Subsequent to December 31, 2022, the Company sold a 480sf home for $37,500. Despite the unfavorable wintery conditions in Oregon at the time, the home was constructed by mid-March. Minor interior finish work is currently in process and the homes tenets should be taking occupancy by April 17^th.

In accordance with ASC 855, the Company has analyzed its operations subsequent to December 31, 2022 through the date these financial statements were issued, and has determined that it does not have any other material subsequent events to disclose in these financial statements.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

ITEM 9A. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports pursuant to the Securities Exchange Act, of 1934, as amended, or the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the rules and forms, and that such information is accumulated and communicated to us, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

As required by Rules 13a-15(b) of the Exchange Act, an evaluation as of December 31, 2022 was conducted under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based upon that evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were effective as of December 31, 2022. 

(b) Report of Management on Internal Control over Financial Reporting

We are responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act. Under the supervision and with the participation of our management including of our chief executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the 2013 framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission, or COSO.

Based on our evaluation under the 2013 Internal Control-Integrated Framework, our chief executive officer and chief financial officer concluded that our internal control over financial reporting was not effective as of December 31, 2022.

(c) Changes in Internal Control over Financial Reporting

There have been no other changes in our internal control over financial reporting that occurred during the period covered by this Annual Report on Form 10-K for the year ended 2022, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

There are no other disclosures at this time.

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PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

Directors and Executive Officers

Our directors and executive officers and their respective ages, positions, term of office and biographical information are set forth below.

Our bylaws require at least three directors to serve for a term of one year or until they are replaced by a qualified director. Our executive officers are chosen by our board of directors and serve at its discretion. There are no existing family relationships between or among any of our executive officers or directors.19

John Sprovieri – CEO/Director, Age 74

John Sprovieri's background is in Mechanical Engineering being in the manufacturing industry for many years. He is an American, born in Australia and moved permanently to the US in 1994. He and his wife, Mary have been married nearly 51 years and have no children.

In 1975, Mr. Sprovieri developed an Australian agricultural/industrial tractor line and developed both the manufacturing and marketing segments of his company. The corporation produced nearly 500 units over the next 14 years until he sold the company to Just Australia China Holdings Ltd. (JACH) with interests in China, Korea and Russia. The company was operating profitably at the time it was sold. JACH were setting up overseas operations and were going to manufacture in China or South Korea. He stayed on with the corporation liaising with overseas licensed manufacturers and markets. He traveled extensively into Europe, USSR, the Middle East and North America.

Following completion of his obligations to JACH in 1993, he researched the US West Coast Market for Affordable Housing development opportunities. In 1997 Mr. Sprovieri launched an interstate transport company and was responsible for all facets of management including finance, operations, personnel and government compliance. In 2003, Mr. Sprovieri commenced development of the Auscrete technology and acquired financing to further develop the Cellucon based technology and product with a view to creating an affordable housing manufacturing operation.

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During the past 13 years since 2006, Mr. Sprovieri has been principally involved with launching and managing the Auscrete Brand development activities. During this time, he has set up a manufacturing facility, trained personnel, redeveloped technology and started production of Auscrete products in 2008.

Michael Young – VP / CFO Age 69

Mike Young is Auscrete’s VP of Operations and CFO, he is currently also serving a position with the Company as an interim Director. Mike provides internal operational initiatives supporting compliance, accounting and regulations. He also possesses many years of diverse Management experience within Business and the Transportation Industry.

Mike spent 33 years of earlier life in IT and Broadcast Engineering working in Portland Oregon. His responsibilities included day to day employee Management and Technical Engineering and design of numerous Technologies.

Mike provides extensive internal and financial operational experience and knowledge which allows him to keep Auscrete’s business both accurate and correct.

Code of Ethics

Since we have only two persons serving as executive officers and directors and because we have minimal operations, we have not adopted a code of ethics for our principal executive and financial officers. Our board of directors will revisit this issue in the future to determine if adoption of a code of ethics is appropriate. In the meantime, our management intends to promote honest and ethical conduct, full and fair disclosure in our reports to the SEC and comply with applicable governmental laws and regulations.

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Corporate Governance

We are a smaller reporting company with minimal operations and only two directors and officers. As a result, we do not have a standing nominating committee for directors, nor do we have an audit committee with an audit committee financial expert serving on that committee. Our entire Board of Directors acts as our nominating and audit committee.

ITEM 11. - EXECUTIVE COMPENSATION

Name and Principal Position	Fiscal Year	Salary ($)		Bonus		Stock Awards ($)		Option Awards ($)		All Other Compensation ($)		Total ($)
John Sprovieri CEO	2022		43,680		-		-		-		-		43,680
	2021		40,170		-		-		-		-		40,170
Michael Young VP CFO	2022		43,680		-		-		-		-		43,680
	2021		39,000		-		-		-		-		39,000

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Our CEO, John Sprovieri currently draws a flat yearly salary of $43,680 ($840 p/week) and our CFO, Mike Young draws a flat yearly salary of $43,680 ($840 p/week).

DIRECTOR’S COMPENSATION.

Name and Principal Position	Fiscal Year	Director Fees $		Stock Awards  ($)		Option Awards ($)		All Other Compensation  ($)		Total ($)
John Sprovieri CEO Director	2022		-		0		-		-		0
	2021		-		39,659,022		-		-		39,659,022
Michael Young CFO Director	2022		-		0		-		-		0
	2021		-		1,072,500		-		-		1,072,500

ITEM 12. - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The following table sets forth certain information regarding beneficial ownership of our common stock as of December 31, 2022. We did not have any equity compensation plans as of December 31, 2022.

Name & Address	# Class A Common Stock		Percentage
John Sprovieri - PO Box 813, Rufus OR 97050		39,659,022		23.6
Kay Jett - PO Box 846, Rufus OR 97050		5,874,726		6.6
William S. Beers – PO Box 825, Rufus 97050		1,082,445		7.0

We have determined beneficial ownership in Accordance with the rules of the SEC. We believe, based on the information furnished to us, that the persons and entities named in the table above have sole voting and investment power with respect to all shares of common stock that they beneficially own.

ITEM 13. - CERTAIN RELATIONSHIPS, AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

There are no notable outside director and officer related transactions or relationships to report other than minimal advances made by directors to finance interim operations.

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ITEM 14. - PRINCIPAL ACCOUNTING FEES AND SERVICES.

Audit Fee

The aggregate fees billed for each of the last two fiscal years for professional services rendered by Fruci & Associates II, PLLC for the audit of Auscrete Corporation annual financial statements and review of financial statements included in Auscrete Corporation's 10-Q reports and services normally provided by the Accountant in connection with statutory and regulatory filings or engagements were $28,000 for fiscal year ended 2022 and $19,850 for professional services for fiscal year 2021.

Audit-Related Fees

The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal Accountant that are reasonably related to the performance of the audit or review of Auscrete Corporation financial statements that are not reported above were $7,000 for fiscal year ended 2022 and $7,000 for fiscal year ended 2021.

Tax Fees

The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal Accountant for tax compliance, tax advice, and tax planning were $0 for fiscal year 2022 and $0 for 2021.

All Other Fees

The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal Accountant, other than the services reported above were $0 for fiscal years ended 2022 and 2021.

We do not have an audit committee currently serving and as a result our board of directors performs the duties of an audit committee. Our board of directors will evaluate and approve in advance, the scope and cost of the engagement of an auditor before the auditor renders audit and non-audit services. We do not rely on pre-approval policies and procedures.

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PART IV

ITEM 15. - EXHIBITS.

Exhibit 31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL 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).

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	AUSCRETE CORPORATION
Date: April 17, 2023	By:	/s/ A John Sprovieri
		A. John Sprovieri
		(President/Chief Executive Officer)

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