S-1/A

As filed with the Securities and Exchange Commission on September 12, 2023

Registration No. 333-264707

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Amendment No. 8

to

FORM S-1

REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933

FIRST PERSON LTD.

(Exact name of registrant as specified in its charter)

Alberta, Canada	2833	N/A
(State or other jurisdiction of incorporation or organization)	(Primary Standard Industrial Classification Code Number)	(IRS Employer Identification Number)

1840, 444 – 5^th Ave., SW

Calgary, AB, T2P 2T8
(587) 577-9261

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

Jan Campbell
Corporate Secretary
1840, 444 – 5^th Ave., SW

Calgary, AB, T2P 2T8
(403) 225-3003

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

With copies to:

Jeffrey Baumel, Esq.
Dentons US LLP 1221 Avenue of the Americas New York, NY 10020
Tel. No.: (973) 912-7189 Christopher Jones, Esq. Dentons Bingham Greenebaum LLP 3500 PNC Tower 101 S. 5^th Street Louisville, KY 40202 Tel. No.: (502) 589-4200 Lucas Tomei Dentons Canada LLP 850 – 2^nd Street SW 15^th Floor, Bankers Court Calgary, Alberta Canada, T2P 0R8 Tel. No.: (403) 268-7000 David Crandall, Esq. Brandon Kinnard, Esq. Hogan Lovells US LLP 1601 Wewatta Street Suite 900
Denver, CO 80202 Tel. No.: (303) 899-7300

Approximate date of commencement of proposed sale to the public: As soon as practicable after the registration statement is declared 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.

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 the Securities Act. ☐

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

The information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell nor does it solicit an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

PRELIMINARY PROSPECTUS	SUBJECT TO COMPLETION
	DATED SEPTEMBER 12, 2023

FIRST PERSON LTD.

2,900,000 Common Shares being offered by the Company

2,330,364 Common Shares being offered by the Selling Shareholders

Primary Offering

This is an initial public offering of our common shares, no par value (our “Common Shares”). We are offering 2,900,000 Common Shares (the “Primary Offering”). Prior to the Primary Offering, there has been no public market for our Common Shares. We anticipate that the Primary Offering price will be between $4.00 and $5.00 per Common Share. We have applied to list our Common Shares on The Nasdaq Capital Market under the symbol “FP”. Completion of the Primary Offering is contingent on the approval of our listing application for trading of our Common Shares on The Nasdaq Capital Market. No assurance can be given that our application will be approved and that our Common Shares will ever be listed on The Nasdaq Capital Market. If our listing application is not approved by The Nasdaq Capital Market, we will not consummate the offering and will terminate the Primary Offering.

Resale Offering

The selling shareholders identified in this prospectus are offering an additional 2,330,364 Common Shares, which we refer to as the “selling shareholder shares.” We will not receive any proceeds from the sale of selling shareholder shares. However, upon any exercise, other than a net exercise, of warrants or stock options held by the selling shareholders, we will receive cash proceeds per share equal to the exercise price of such warrants or stock options. The selling shareholder shares will not be purchased by the underwriter or otherwise included in the underwritten offering of our Common Shares in the Primary Offering. The selling shareholders may sell or otherwise dispose of their shares from time to time in a number of different ways and at varying prices, but the sale of any selling shareholder shares will not occur until after the closing of the Primary Offering and will be contingent on the approval of our listing application for trading of our Common Shares on The Nasdaq Capital Market and the closing of the Primary Offering. See “Selling Shareholders — Plan of Distribution” on page 87 of this prospectus for additional information. We will pay all expenses (other than discounts, concessions, commissions, and similar selling expenses, if any) relating to the registration of the selling shareholder shares with the Securities and Exchange Commission (the “SEC”).

We are an “emerging growth company” as defined under U.S. securities laws and, as such, we have elected to comply with certain reduced reporting requirements for this prospectus and may elect to do so in future filings.

Investing in our Common Shares is highly speculative and involves a high degree of risk. See “Risk Factors” beginning on page 11 of this prospectus for a discussion of information that should be considered in connection with an investment in our Common Shares.

	Per Common Share	Total
Primary Offering price	$	$
Underwriting discounts and commissions(1)	$	$
Proceeds to our Company before expenses	$	$

⁽¹⁾ See “Underwriting” beginning on page 119 of this prospectus for additional information regarding underwriting compensation.

We have granted the underwriter an option for a period of forty-five days to purchase up to an additional 435,000 Common Shares (15 percent of the Common Shares sold in the Primary Offering) from us at the Primary Offering price, less the underwriting discounts and commissions.

Neither the SEC nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.

Delivery of the Common Shares will be made on or about      , 2023, subject to customary closing conditions.

Sole Book-Running Manager

EF HUTTON

division of Benchmark Investments, LLC

The date of this prospectus is      , 2023.

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TABLE OF CONTENTS

PROSPECTUS SUMMARY	1
RISK FACTORS	11
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS	41
USE OF PROCEEDS	42
DIVIDEND POLICY	43
CAPITALIZATION	44
DILUTION	45
SELECTED CONSOLIDATED FINANCIAL DATA	46
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	48
BUSINESS	54
MANAGEMENT	72
CORPORATE GOVERNANCE	75
EXECUTIVE COMPENSATION	79
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS	85
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS	86
SELLING SHAREHOLDERS	87
DESCRIPTION OF SHARE CAPITAL	93
SHARES ELIGIBLE FOR FUTURE SALE	99
MATERIAL DIFFERENCES BETWEEN THE ALBERTA BUSINESS CORPORATIONS ACT AND THE DELAWARE GENERAL CORPORATION LAW	100
MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS	111
MATERIAL CANADIAN FEDERAL INCOME TAX CONSIDERATIONS	117
UNDERWRITING	119
LEGAL MATTERS	124
EXPERTS	124
WHERE YOU CAN FIND ADDITIONAL INFORMATION	124
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS	F-1

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Neither we nor the selling shareholders nor the underwriter have authorized anyone to provide any information or to make any representations other than those contained in this prospectus or in any free writing prospectuses we have prepared. Neither we nor the selling shareholders take responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. We and the selling shareholders are offering to sell, and seeking offers to buy, Common Shares only under circumstances and in jurisdictions where it is lawful to do so. Neither we, the selling shareholders nor the underwriter are making an offer to sell these securities in any jurisdiction where the offer or sale is not permitted. The information contained in this prospectus is current only as of its date. You should also read this prospectus together with the additional information described under “Where You Can Find Additional Information” on page 124 of this prospectus.

The distribution of this prospectus and the issuance of the Common Shares in certain jurisdictions may be restricted by law. Persons outside the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the issuance of the Common Shares and the distribution of this prospectus outside the United States. This prospectus does not constitute, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy, the Common Shares offered by this prospectus by any person in any jurisdiction in which it is unlawful for such person to make such an offer or solicitation.

In this prospectus, currency amounts are stated in U.S. dollars (“$”), unless specified otherwise. All references to CAD$ are to Canadian dollars.

Unless otherwise indicated, information contained in this prospectus concerning our industry and the markets in which we operate, including our general expectations and market position, market opportunity, and market share, is based on information from our own management estimates and research, as well as from industry and general publications and research, surveys, and studies conducted by third parties. Management estimates are derived from publicly available information, our knowledge of our industry, and assumptions based on such information and knowledge, which we believe to be reasonable. Assumptions and estimates of our and our industry’s future performance are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in “Risk Factors” beginning on page 11 of this prospectus. These and other factors could cause our future performance to differ materially from our assumptions and estimates. See “Cautionary Note Regarding Forward-Looking Statements” on page 41 of this prospectus.

This prospectus contains references to our trademarks and service marks and to those belonging to other entities. Solely for convenience, trademarks and trade names referred to in this prospectus may appear without the ® or ^TM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensor to these trademarks and trade names. We do not intend our use or display of other companies’ trade names, trademarks, or service marks to imply a relationship with, or endorsement or sponsorship of us by, any other companies.

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PROSPECTUS SUMMARY

This summary highlights information contained elsewhere in this prospectus. This summary does not contain all of the information you should consider before investing in the Common Shares offered by this prospectus. You should read the entirety of this prospectus carefully, especially “Risk Factors” beginning on page 11 of this prospectus and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” beginning on page 48 of this prospectus and the financial statements and related notes appearing at the end of this prospectus before making an investment decision.

Unless the context provides otherwise, all references in this prospectus to “First Person,” “we,” “us,” “our,” “our company,” the “Company,” or similar terms, refer to First Person Ltd., a company incorporated in Alberta, Canada. References to the “selling shareholders” refer to the selling shareholders named in this prospectus.

Overview

First Person Ltd., a company incorporated in Alberta, Canada, is a holding company. The Company conducts its business and operations through its wholly-owned operating subsidiaries: First Person, Inc., a Delaware corporation (“FP, Inc.”), and TruMed Limited, a Jamaican company limited by shares (“TruMed”). We compete, or intend to compete, in the following three markets:

● Functional Mushrooms. Functional mushrooms are mushrooms believed to have additional health benefits beyond their basic nutritional value. We intend to produce and distribute for sale 100 percent grain-free, organic functional mushrooms at scale.

● Nutraceutical Products. Nutraceuticals are products derived from food sources believed to have additional health benefits beyond their basic nutritional value. We launched our direct-to-consumer line of highly curated cognitive supplements in March 2022.

● Psychedelic Mushrooms. Psychedelic mushrooms are mushrooms that contain psilocybin. We are building a robust culture library of psychedelic mushrooms and we intend to conduct research and development involving psychedelic mushrooms in Jamaica through TruMed. If there is rescheduling of psylocibin under the U.S. Controlled Substances Act of 1970 (the “CSA”) from Schedule I to a lower Schedule (II-V) and we obtain the requisite approvals from all applicable state and federal governmental authorities, including U.S. Drug Enforcement Administration (“DEA”) manufacturing and research registration, then we intend to enter the psychedelic mushroom supply chain for the psychedelics research and development market in the United States.

Psilocybin, the naturally occurring drug found in psychedelic mushrooms, is currently a Schedule I controlled substance under the CSA and is currently an illegal substance in the State of Washington and all other U.S. states. Therefore, production and research of psilocybin requires approvals from federal and state authorities, which may be granted in the sole discretion of such authorities. Even with the necessary approvals, production and research of psilocybin may be subject to quotas or other restrictions set by federal or state authorities. If there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we obtain the requisite approvals from all applicable state and federal governmental authorities, including the Washington State Department of Health (“WDOH”) and the DEA, then we intend to build out our naturally-derived psychedelic mushroom supply chain in the United States in full compliance with state and federal laws. Unless there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we are able to obtain all of the requisite approvals, including approvals to produce, or conduct research involving, psychedelic mushrooms in the United States, then all of our activities involving psychedelic mushrooms and psilocybin will occur in Jamaica through TruMed, or through agreements with independent research labs in accordance with applicable laws. See “Business—Overview” beginning on page 54 of this prospectus. Psilocybin is not an illegal drug under Jamaica’s Dangerous Drugs Act, 1948 (the “Jamaica Drug Act”). Unlike mushrooms that contain psilocybin, functional mushrooms and nutraceuticals are fully legal in the United States. We do not intend to market any of our products for medical use.

Our goal is to activate the full potential of human cognition through mushroom innovation. We believe that First Person, despite its early stage of development, is building a resilient foundation for long-term growth, and we believe we have positioned ourselves for success in the brain health and wellness markets through our innovative product formulations and production processes.

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First Person, Inc.

Since its inception in January 2021, FP, Inc. has devoted substantially all of its efforts to business and product development relating to the operations of a functional mushroom farm in Olympia, Washington, and to the development of its own proprietary formulations of cognitive nutraceutical performance products containing functional mushrooms.

FP, Inc. has developed grow and production capacity to become a U.S. domestic producer of 100 percent grain-free, organic functional mushrooms at scale; brought to market a legal nutraceutical brand of proprietary nootropics (substances believed to have a positive impact on mental performance); and constructed an initial 15,000 sq. ft. production and laboratory facility for the propagation and cultivation its proprietary functional mushrooms, with the intention of acquiring or leasing additional space to expand its growing space. The facility currently contains three fully constructed functional mushroom greenhouses, totaling 12,000 sq. ft. We intend to use a portion of the net proceeds of this offering for the expansion of FP, Inc.’s production capabilities in the ingredients division in Olympia, Washington, focusing on expanding FP, Inc.’s processing capabilities for fresh and dried functional mushrooms. See “Use of Proceeds” on page 42 of this prospectus. FP, Inc. is also actively building a robust fungi culture library of both functional and psychedelic mushrooms.

TruMed Limited

TruMed was formed on April 30, 2019, and is focused on research and development of psilocybin mushrooms. On February 15, 2022, we acquired all of the issued and outstanding shares of common stock of TruMed in exchange for an aggregate purchase price of up to $750,000, pursuant to the terms of a share purchase agreement (the “Share Purchase Agreement”) entered into with TruMed and TruMed’s former shareholders, Pratik Ruparell and Gaston Flagstaff (the “TruMed Sellers”). $130,000 of the purchase price was paid by wire transfer upon the closing of the acquisition, while $70,000 of the purchase price was to be paid pursuant to the terms of a promissory note delivered to the TruMed Sellers. On April, 28, 2023, the Company paid to the TruMed Sellers the remaining amount outstanding under the promissory note and the promissory note was cancelled. The remaining $550,000 of the purchase price will only be paid if TruMed achieves certain milestones within the first twenty-four months following the closing of the acquisition (the “Milestone Payments”). See “Business—Overview” beginning on page 54 of this prospectus for additional information. TruMed is a pre-revenue company in the development stage with substantially no operations. TruMed intends to conduct research and development involving psychedelic mushrooms in Jamaica. Psilocybin is not an illegal drug under the Jamaica Drug Act. Therefore, research involving psychedelic mushrooms is not in contravention of the laws of Jamaica and does not require any permit or authorization from the regulatory authorities in Jamaica. TruMed intends to cultivate and study psychedelic mushrooms in Jamaica, and we plan to use a portion of the proceeds of this offering to establish TruMed’s operations in Jamaica. See “Use of Proceeds” on page 42 of this prospectus. On June 26, 2023, the TruMed Sellers filed a statement of claim against First Person Ltd. and TruMed Limited in the Court of King’s Bench of Alberta. See “Business – Legal Proceedings” on page 71 of this prospectus for additional information. The statement of claim has not had any material impact on TruMed’s business, including TruMed’s research and development operations in Jamaica. TruMed does not have any employees or currently active business operations.

Our Strategy and Competitive Strengths

Building a Vertically Integrated Supply Chain for Functional Mushrooms to Be Used as Supplied Ingredients for Consumer Brands.

We intend to become a functional mushroom supplier, leveraging our expertise and innovation to build a supply chain from the ground up, using our proprietary First Person™ process and techniques. We intend to sell functional mushroom powders and extracts, as well as the unprocessed fruiting bodies of functional mushrooms, as supplied ingredients for consumer brands by entering into supply agreements with other companies. We also use our functional mushroom products in our own nutraceutical brand.

The global appetite for functional mushrooms is rapidly expanding. However, a nascent marketplace and fractured supply chain leave businesses and consumers wanting. Demand has currently overwhelmed the industry’s existing supply chain for functional mushrooms and large companies are buying out entire mushroom harvests in advance. In response, functional mushrooms are being grown and imported from overseas to meet demand in North America. Imported mushrooms have, in some instances, been found to contain heavy contaminants, grains, and other substrates, compromising the quality and purity of final consumer products. We intend to set the standard for purity, potency, and transparency while innovating finished mushroom ingredient formats to expand potential end-use product applications.

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While we are an early stage company with a history of net losses, we believe our planned vertically-integrated structure will allow us to disrupt and potentially dominate this fractured supply chain, secure growth, and generate revenue streams in the developing markets for functional mushrooms.

Using FP, Inc.’s proprietary First Person™ production process, which FP, Inc. protects as a trade secret, our innovation team, together with our Head of Mycology & Psychedelics, Robert C. Kaelin, has developed a protectable, proprietary, and scalable end product that is 100 percent pure mushrooms, with no fillers or grain residue. Mr. Kaelin has over twenty years of experience in propagation, cultivation, and processing, and has extensive knowledge in the handling of good-manufacturing-practice certified mushrooms and mycelium products for use in the nutraceutical and whole-foods industries.

We are building in-house processing capabilities to meet demand for our premium grain-free, pure fruiting body extract powders. Our functional mushrooms are cultivated on wild harvest alder saw dust, then harvested, dried, and shipped to a processing partner for milling, extraction, and spray drying. Our proprietary extraction method uses hot water and ethanol in an ultrasonic assisted extraction (“UAE”) process that utilizes high frequency sound waves to extract compounds from the mushroom fiber. We own all of the UAE equipment, which is housed at our processing partner’s facility, and it is operated by our processing partner’s staff in accordance with our specifications. We do not have a formal agreement with our processing partner, and instead function on an order-by-order basis with pricing established for each order. Once fully operational, we believe our proprietary automated processes to grow and process systems will maximize yields and minimize lead times and processing steps.

Our production capacity is growing, and currently consists of 15,000 sq. ft., including three fully constructed functional mushroom greenhouses, totaling 12,000 sq. ft., with plans to acquire or lease additional growing space. The three First Person™ fungi varieties that we are currently growing and intend to harvest are: (i) First Person™ Lions Mane (Hericium erinaceus); (ii) First Person™ Reishi (Ganoderma lingzhi); and (iii) First Person™ Cordyceps (Cordyceps militaris). We have harvested initial batches of each of these three fungi varieties for testing purposes, and we have harvested additional batches of First Person™ Lions Mane for use in our direct-to-consumer cognitive supplements. We do not use ethanol during the UAE process when processing First Person™ Lions Mane, but instead use only water. On June 23, 2022, our First Person^TM functional mushrooms were certified as organic by CCOF Certification Services, LLC, an organic certifying agency accredited by the U.S. Department of Agriculture (“USDA”).

We believe that owning our supply chain will allow us to participate in the high-growth mushroom business-to-business ingredient market by eventually becoming the primary supplier and product innovation partner of functional and wellness brands. We anticipate that these relationships could eventually expand to include psychedelic mushrooms if the legal path is cleared to do so and we obtain the requisite approvals from all applicable state and federal governmental authorities, including DEA manufacturing and research registration, to enter the psychedelic mushroom supply chain for the psychedelics research and development market in the United States.

Building Consumer Relationships Through a Direct-to-Consumer Brand.

We plan to further develop, build, and market a successful direct-to-consumer brand of targeted nutraceuticals containing functional mushrooms and adaptogenic botanicals (plants or plant parts believed to help the body adjust to physical, chemical, or biological stress). We believe that building an early, direct, and trusted brand relationship with the consumer enables seamless product and category expansion.

On March 1, 2022, we launched a cognitive supplement system formulated to target specific neurotransmitters, which we believe will help establish our brand in the functional mushroom and the brain health and wellness markets. These are curated and fully legal cognitive supplements. The supplements feature functional mushrooms and a curated blend of nutraceuticals that activate specific neurotransmitters affecting energy, mood, and sleep. Nutraceuticals are dietary supplements and are regulated by the U.S. Food and Drug Administration (“FDA”). These consumer products do not require FDA approval prior to marketing and distribution, but are required to include a disclaimer that they have not been evaluated by the FDA and are not intended to diagnose, treat, cure, or prevent any disease.

At launch, all functional mushrooms in our nutraceuticals were purchased from third parties. We have since started to include our First Person™ Lions Mane in our nutraceuticals; however, we still purchase functional mushrooms from third parties, which are included in our nutraceuticals along with our First Person™ Lions Mane. All of the ingredients used in our nutraceuticals come from three sources—FP, Inc., Nutricode (an FM World brand), and North American Reishi Ltd. d/b/a NAMMEX. We do not have any formal agreements with third-party suppliers of functional mushrooms, and instead operate on an order-by-order basis with prices determined for each order. All of the ingredients used in our nutraceuticals meet the definition of a “dietary ingredient” as used in the Federal Food, Drug, and Cosmetic Act of 1938 (the “FDCA”). We do not intend to market any of our products for medical use.

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We are branding and marketing these cognitive supplements with a brand agency that has experience in creating and launching successful direct-to-consumer brands. Our brand and product ecosystems are strategically positioned to resonate with forward-thinking consumers who seek to optimize their mental health and cognitive performance. We intend to build and sustain community engagement through high-impact marketing and branding activities, executive communications, and industry recognition. Our team brings a depth of invaluable experience across a diverse range of direct-to-consumer e-commerce businesses, and are experts in areas involving consumer acquisition costs, order frequency, and retention. We anticipate this will lead to detailed and realistic expectations for lifetime value that can inform and drive our decisions around reasonable marketing spend for customer acquisition. We expect future product-line expansion to include innovations in the functional beverage category (a category that includes nutritional and energy drinks).

Product Research and Development and Innovation Capabilities in Psychedelic Mushrooms.

We plan to conduct psychedelic mushroom product research and development in Jamaica through TruMed. If there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we obtain the requisite approvals from all applicable state and federal governmental authorities, including the WDOH and the DEA, then we intend to build out our naturally-derived psychedelic mushroom supply chain in the United States in full compliance with state and federal laws. We believe our multi-faceted approach, involving supplying functional mushrooms, marketing a nutraceutical brand, and psychedelic mushroom product research and development, will maximize our potential in an emerging and transformative category of mental health products and solutions.

Psilocybin, the naturally occurring drug found in psychedelic mushrooms, is currently a Schedule I controlled substance under the CSA and is currently an illegal substance in the State of Washington and all other U.S. states. Therefore, in order to produce and research psilocybin in the United States, we will need to obtain the necessary approvals from federal and state authorities, which may be granted in the sole discretion of such authorities. Even if we receive the necessary approvals, we may be subject to quotas or other restrictions on our production and research set by federal or state authorities.

Research involving controlled substances in the State of Washington requires participating individuals to register with both the DEA and the WDOH. Under Section 69.50.508(e) of the Revised Code of Washington (“RCW”), the State of Washington gives the WDOH the authority to authorize certain persons to possess and distribute controlled substances for research purposes. The first step in obtaining the necessary authorizations is to receive state approval from the WDOH. Applicants must obtain controlled substance researcher registration from the WDOH prior to registering with the DEA. Chris L. Claussen, our Chief Innovation Officer, submitted a controlled substance researcher application with the WDOH in order for FP, Inc. to conduct psilocybin research, with such application listing FP, Inc.’s Olympia, Washington facility as the research lab location. The application was submitted on July 12, 2021, and remains under review. If the WDOH registration is granted, then FP, Inc. intends to utilize such registration to apply for licensure with the DEA to make our facility in Olympia, Washington a licensed psilocybin facility. Due to the unpredictable nature of the WDOH review process, the timeline for receiving WDOH’s determination with respect to the application is currently uncertain. If we receive the WDOH license, then the approval process with the DEA is expected to take two to three months from when we initially submit an application with the DEA. If these licenses are obtained, and there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V), then we expect our facility to include a WDOH- and DEA-compliant culture laboratory and controlled production and research facility for psychedelic mushrooms, built in compliance with all security protocols. We do not intend to use any of the proceeds we receive from this offering for the construction of the WDOH- and DEA-compliant culture laboratory and controlled production and research facility.

Unless there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we are able to obtain all of the requisite approvals, including approvals to produce, or conduct research involving, psychedelic mushrooms in the United States, then all of our activities involving psychedelic mushrooms and psilocybin will occur in Jamaica through TruMed, or through agreements with independent research labs in accordance with applicable laws. Psilocybin is not an illegal drug under the Jamaica Drug Act. Therefore, the cultivation of, and research involving, psychedelic mushrooms is not in contravention of the laws of Jamaica and does not require any permit or authorization from the regulatory authorities in Jamaica. TruMed intends to cultivate and study psychedelic mushrooms in Jamaica. TruMed’s research and development efforts are intended to focus on analyzing certain psychedelic mushroom species and extraction and production methods that standardize the potency of naturally-occurring psilocybin in mushrooms for use in approved clinical trials by drug development companies. While TruMed intends to supply psilocybin to drug development companies, TruMed does not intend to develop pharmaceutical products or market any of its products for medical use, nor does TruMed intend to develop recreational products involving psilocybin or psychedelic mushrooms. We plan to use a portion of the proceeds of this offering to establish TruMed’s operations in Jamaica. See “Use of Proceeds” on page 42 of this prospectus. TruMed is a pre-revenue company in the development stage with substantially no operations, and has not yet conducted any research involving psilocybin.

In addition, we have entered into a statement of work with Charles River Laboratories Montreal ULC (“Charles River Labs”), an independent research lab in Canada, to conduct two studies involving psilocybin. Charles River Labs obtained the necessary import permits from Health Canada—a department of the Government of Canada responsible for national health policy—and the Company does not need to acquire any approvals in connection with such research. After Charles River Labs obtains the necessary components for the tests, then Charles River Labs will commence two studies pursuant to the terms of the statement of work, with research and development efforts focused on isolating and studying the individual psychoactive components of mushrooms. Through the exploration of genetic strains and compounds, we hope to discover novel combinations and applications of these analogs for brain health and performance.

If there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we receive the necessary approvals from the WDOH and the DEA in order to legally produce and research psilocybin in the State of Washington in the United States, then we intend to expand domestic U.S. production to include psychedelic mushrooms and conduct research and development. Our intended research and development activities in the United States would be parallel to TruMed’s intended activities in Jamaica (i.e., analyzing certain psychedelic mushroom species and extraction and production methods that standardize the potency of naturally-occurring psilocybin in mushrooms for use in approved clinical trials by drug development companies), but we believe carrying out such activities in the United States would improve our ability to enter the psychedelic mushroom supply chain for the psychedelics research and development market in the United States. While we intend to supply psilocybin to drug development companies if there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we receive the necessary approvals from the WDOH and the DEA, we do not intend to develop pharmaceutical products or market any of our products for medical use, nor do we intend to develop recreational products involving psilocybin or psychedelic mushrooms. We may not commence psilocybin propagation operations until we receive the requisite approvals from such authorities, and there is no guarantee that we will receive such approvals.

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We have filed two provisional patent applications that could provide us with a protected advantage in legal psychedelic mushroom markets. Both provisional patents were initially filed in 2021 and refiled in 2022, and one of the provisional patents was refiled again in 2023. We have not yet filed a formal patent application for either innovation. The provisional patent applications will expire in 2023. We do not intend to file a utility patent application for either innovation until after the commencement of the studies pursuant to the statement of work entered into with Charles River Labs. In the event the studies do not commence prior to the expiration of the provisional patent applications, then we intend to refile the provisional patent applications. Our goal is to combine these patented innovations, and we believe that doing so will give us product performance and market advantages over other competitors preparing for the possibility of a legal market for sales of psychedelic mushrooms to drug development companies for their research and clinical trials. We have only filed provisional patent applications, which help protect inventions for a twelve-month period while a formal patent application is being filed. The patent process can take up to twenty-four months or longer to complete and can be challenged during the process. At this time, we cannot state whether the patent applications will be approved, refused, and/or ultimately registered. See “Business—Intellectual Property” beginning on page 60 of this prospectus for more information regarding our intellectual property.

We believe our three-part holistic strategy and approach to the developing markets for both functional mushrooms and, when legal pathways allow, psychedelic mushrooms strategically positions us for both near and long-term growth.

Risks Associated with Our Business

Our business is subject to numerous risks and uncertainties that you should be aware of before making an investment decision, including those highlighted under “Risk Factors” beginning on page 11 of this prospectus. These risks include, but are not limited to, the following:

● we might have contingent liability arising out of a possible violation of Section 5 of the Securities Act in connection with certain statements and disclosures made in an online article appearing on Bloomberg on July 21, 2022; a television interview broadcast by NewsNation on October 17, 2022; and fifteen podcasts released between July 13, 2021 and February 2, 2023, nine of which were temporarily linked to the Company website. The podcasts were conducted by “The Story of a Brand”; “That Gives Me Anxiety”; “JJ Flizanes” (published on Ms. Flizane’s podcasts: “Nutrition & Alternative Medicine”, “Fit 2 Love”, and “Spirit Purpose & Energy”); “Mycopreneur”; “Koncrete”; “Justin Caviar”; “Humble and Hungry”; “Elevate Your Brand”; “Bliss Project”; “Ashley On”; “Riderflex”; “Let’s Talk Plant Medicine”; “Spiritual Boss Babe”; “Vital Science”; and “Finding Genius”;

● we might have contingent liability arising out of a possible violation of Section 5 of the Securities Act in connection with certain statements and disclosures made in an article published online on September 20, 2022;

● the functional-mushroom and psilocybin industries are new in the United States, and the industries and markets may not continue to exist or develop as anticipated or we may ultimately be unable to succeed as anticipated in these industries and markets;

● our ability to cultivate and/or acquire mushrooms for our products is subject to risks inherent in agricultural operations;

● we may encounter disruptions or delays in the expansion and construction of our facilities, which may impair our ability to grow and produce our own mushroom products for distribution;

● we rely on a third-party co-packer for certain product components and other third parties for the packaging material for our products, and there is no guarantee that the relationships with the co-packers or packaging companies will continue or that the co-packer or packaging companies will deliver goods on a timely basis;

● if we are unable to protect the confidentiality of our trade secrets, the value of our proprietary processes could be materially adversely affected and our business would be harmed;

● a denial of, or significant delay in obtaining, or any interruption of required government authorizations to produce psilocybin for federally sanctioned purposes would likely have a significant negative impact on the Company’s business plans;

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● the dynamic nature of the laws and regulations affecting the psilocybin market, including the federal authorization of psilocybin, or the state-regulated psilocybin industry, could adversely affect our proposed operations in the United States, and we cannot predict the impact that future regulations may have on us;

● the laws, regulations, and guidelines generally applicable to our business or products, or to research involving psilocybin, in the United States may change in ways that impact our ability to continue our business as currently conducted or proposed to be conducted;

● because psilocybin is a controlled substance, our products, equipment, and revenues could be subject to civil or criminal asset forfeiture if we fail to comply with the laws and regulations applicable to psilocybin;

● adverse U.S. or international economic conditions, including periods of inflation, could negatively affect our business, financial condition, and results of operations;

● the recent COVID-19 pandemic or future pandemics could have a material adverse impact on our business, results of operations, and financial condition;

● we may be vulnerable to rising energy costs;

● environmental risks may adversely affect our business; and

● you may face difficulties in protecting your interests, and your ability to protect your rights through the U.S. federal courts may be limited because we are incorporated under Canadian law and certain of our executive officers and directors reside outside the United States.

If we are unable to adequately address these and other risks we face, our business, financial condition, results of operations, and prospects may be adversely affected.

Implications of Being an Emerging Growth Company

As a company with less than $1.235 billion in revenue during our last fiscal year, we qualify as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These provisions include that:

● we are only required to provide reduced disclosure in “Management’s Discussion and Analysis of Financial Condition and Results of Operations”;

● we are not required to engage an auditor to report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002, as amended (the “Sarbanes-Oxley Act”);

● we are not required to submit certain executive compensation matters to shareholder advisory votes, such as “say-on-pay,” “say-on-frequency,” and “say-on-golden parachutes”; and

● we are not required to disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the chief executive officer’s compensation to our median employee compensation.

We may take advantage of these provisions until the last day of the fiscal year during which the fifth anniversary of this listing occurs or such earlier time that we are no longer an emerging growth company. We will remain an emerging growth company until the earliest of: (i) the last day of the first fiscal year in which our annual gross revenue is $1.235 billion or more; (ii) the last day of the fiscal year during which the fifth anniversary of this listing occurs; (iii) the date on which we have issued more than $1.0 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 the rules of the SEC.

Under the JOBS Act, emerging growth companies also can delay adopting new or revised accounting standards until such time as those standards would otherwise apply to private companies. We currently intend to take advantage of this exemption.

For risks related to our status as an emerging growth company, see “Risk Factors—We are a “smaller reporting company” and “emerging growth company” and we cannot be certain if the reduced disclosure requirements applicable to smaller reporting companies and emerging growth companies will make our Common Shares less attractive to investors” on page 28 of this prospectus.

Corporate Information

LEIIO Wellness Ltd. (“Wellness”), our predecessor by name change, was incorporated on January 21, 2021 (date of inception), under the laws of the province of Alberta, Canada. On December 15, 2021, we changed our name to First Person Ltd. Our principal executive offices are located at 1840, 444 – 5^th Ave., SW, Calgary, AB, T2P 2T8, and our telephone number at such address is (587) 577-9261. Our principal offices in the United States are located at 611 N. Brand Blvd., Suite 1300, Glendale, CA 91203. Our website address is https://www.firstpersongroup.com. The reference to our website in this prospectus is an inactive textual reference only and is not a hyperlink. You should not consider information contained on our website to be part of this prospectus in deciding whether to purchase the Common Shares offered by this prospectus.

6

THE OFFERING

Common Shares Offered in Primary Offering:	2,900,000 Common Shares
Over-allotment Option:	We have granted an option to the underwriter, exercisable one or more times in whole or in part for a period of forty-five days from the date of this prospectus, to purchase up to an additional 435,000 Common Shares (15 percent of the Common Shares sold in the Primary Offering) solely to cover over-allotments, if any, at the Primary Offering price per Common Share, less the underwriting discount.
Common Shares to be outstanding immediately after this offering:	10,002,033 Common Shares. If the underwriter’s over-allotment option to purchase additional Common Shares is exercised in full, the total number of Common Shares outstanding immediately after this offering would be 10,437,033 Common Shares.
Use of proceeds:	We estimate that the net proceeds to us from this offering will be approximately $10.54 million, or approximately $12.33 million if the underwriter exercises the over-allotment option in full, assuming an offering price of $4.50 per Common Share, which is the midpoint of the estimated price range set forth on the cover page of this prospectus, after deducting underwriting discounts and commissions and estimated offering expenses payable by us. We will not receive any of the proceeds from the sale of selling shareholder shares. However, upon any exercise, other than a net exercise, of warrants or stock options held by the selling shareholders, we will receive cash proceeds per share equal to the exercise price of such warrants or stock options.
	We intend to use the net proceeds of this offering primarily for general working capital, launching and growing an initial line of consumer products, research and development, establishment of operations in Jamaica, and expansion of growing and production capabilities in Olympia, Washington.
	As of December 31, 2022, Cory J. Rosenberg, our Chairman, Chief Executive Officer, and President, was due $643,407 for digital advertising expenditures incurred on our behalf, of which $229,545 remained outstanding and due to Mr. Rosenberg as of September 12, 2023. See “Certain Relationships and Related Party Transactions” on page 85 of this prospectus for more information regarding the amounts due to Mr. Rosenberg. We will pay such amounts out of the net proceeds from this offering.
	As of September 12, 2023, we have convertible secured promissory notes in the aggregate principal amount of approximately $3.34 million outstanding, including a convertible secured promissory note in the principal amount of $271,739 issued to Cory J. Rosenberg, our Chairman, Chief Executive Officer, and President, on January 3, 2023, a convertible secured promissory note in the principal amount of $108,696 issued to Mr. Rosenberg on September 7, 2023, and a convertible secured promissory note in the principal amount of $100,000 issued to Darcy A. Campbell, our Chief Financial Officer on January 9, 2023. See “Certain Relationships and Related Party Transactions” on page 85 of this prospectus for more information regarding the convertible secured promissory notes issued to Mr. Rosenberg and Mr. Campbell. Interest on the principal amount outstanding and remaining from time to time on each convertible secured promissory note accrues at the rate of 8 percent per annum. Each convertible secured promissory note, including the outstanding principal amount together with all applicable accrued and unpaid interest thereunder, is convertible, in whole or in part, into Common Shares at the option of the holder of such convertible secured promissory note (subject to certain limitations set forth in the convertible secured promissory note) at a conversion price equal to $6.00 per Common Share (subject to certain adjustments set forth in the convertible secured promissory note). Each convertible secured promissory note is payable in accordance with the following schedule: (i) if a Qualifying Transaction occurs 30 days or more before the date that is one year after the date of such convertible secured promissory note, then (a) 50 percent of the principal amount is payable on the thirtieth calendar day after the date of the first Qualifying Transaction occurring after the date of such convertible secured promissory note; and (b) the remaining 50 percent of the principal amount is payable on the earlier to occur of (1) the ninetieth calendar day after the date of the first Qualifying Transaction occurring after the date of such convertible secured promissory note, or (2) the date that is one year after the date of such convertible secured promissory note, and (ii) if a Qualifying Transaction does not occur, or occurs less than 30 days, before the date that is one year after the date of such convertible secured promissory note, then 100 percent of the principal amount is payable on the date that is one year after the date of such convertible secured promissory note. All of the convertible secured promissory notes were issued between January 3, 2023, and September 7, 2023. The Primary Offering is expected to qualify as a Qualifying Transaction under the terms of the convertible secured promissory notes. Therefore, to the extent the holders of the convertible secured promissory notes, including the convertible secured promissory notes held by Mr. Rosenberg and Mr. Campbell, do not elect to convert the outstanding principal and accrued and unpaid interest into Common Shares such amounts will become payable in accordance with the schedule set forth above and we will pay such amounts out of the net proceeds from this offering.
Existing Selling Shareholder Shares being registered for resale:	Up to 2,330,364 Common Shares
Risk Factors:	Investing in our Common Shares is highly speculative and involves a high degree of risk. You should carefully consider the information set forth in this prospectus and, in particular, the specific factors set forth in “Risk Factors” beginning on page 11 of this prospectus, before deciding whether or not to invest in the Common Shares offered by this prospectus.
Proposed Nasdaq Capital Market Listing:	We have applied to list our Common Shares on The Nasdaq Capital Market under the symbol “FP”.

The number of Common Shares that will be outstanding after this offering is based on 7,102,033 Common Shares outstanding as of June 30, 2023, assuming all outstanding Preferred Shares, Series 1 (“Series 1 Shares”) are converted into 750,679 Common Shares immediately prior to the closing of the Primary Offering, and excludes the following:

● up to 482,500 Common Shares issuable upon the exercise of outstanding options under the First Person Ltd. Long Term Incentive Plan (as amended, the “Incentive Plan”) as of the date hereof, of which 290,000 have an exercise price of CAD$2.00 per Common Share, 72,500 have an exercise price of CAD$3.50 per Common Share, and 120,000 have an exercise price of $5.00 per Common Share;

● up to 500,620 Common Shares at a price per Common Share of CAD$5.00 issuable upon exercise of outstanding warrants as of the date hereof;

● 152,635 Common Shares reserved for future issuance under the Incentive Plan as of the date hereof; and

● any Common Shares issuable upon exercise of the underwriter’s over-allotment option.

Any holder of Series 1 Shares may, at any time, elect to convert all or any portion of the outstanding Series 1 Shares held by such holder into Common Shares. The Series 1 Shares will automatically convert into Common Shares on the date that is 12 months after the closing of the Primary Offering. The number of Common Shares issuable upon conversion of the Series 1 Shares is calculated as of the date of this prospectus as follows: (i) with respect to the 1,748,970 Series 1 Shares issued on January 3, 2023, January 9, 2023, and February 6, 2023, (a) the aggregate number of Series 1 Shares outstanding, divided by (b) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus; and (ii) with respect to the 1,589,130 Series 1 Shares issued on March 31, 2023, and September 7, 2023, (a) the aggregate number of Series 1 Shares outstanding, multiplied by (b) 0.6, divided by (c) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus. The actual number of Common Shares issuable upon conversion of the outstanding Series 1 Shares may increase or decrease on a future date based on when the closing of the Primary Offering occurs and the actual offering price per Common Share. See “Description of Share Capital – Preferred Shares” on page 93 of this prospectus for more information regarding the conversion of the Series 1 Shares.

Consolidation

On April 21, 2022, First Person amended its articles of incorporation to effect a consolidation of the outstanding Common Shares (the “Consolidation”) on the basis of a consolidation ratio of one post-Consolidation Common Share for every ten pre-Consolidation Common Shares outstanding prior to the effective date of the Consolidation. All references to Common Shares, options and warrants to purchase Common Shares, share data, per share data, and related information have been retroactively adjusted, where applicable, in this prospectus to reflect the Consolidation as if it had occurred at the beginning of the earliest period presented.

Interview Statements

Information about the Company and statements made by Chris L. Claussen, one of our directors and our Chief Innovation Officer, Joseph Claussen, our Director of Business Development (collectively, the “Claussens”), Cory J. Rosenberg, our Chairman, Chief Executive Officer, and President, and Dom D’Agostino, our scientific advisor, during fifteen podcast interviews (the “Podcasts”) were uploaded to YouTube and links to nine of such Podcasts were temporarily posted to our new Company website. The Podcasts that were temporarily linked to the Company website were created between March 29, 2022 and February 2, 2023. In addition, information about the Company and statements made by the Claussens were published in an online article appearing on Bloomberg on July 21, 2022 and a television interview broadcast by NewsNation on October 17, 2022 (together with the Podcasts, the “Interviews”), neither of which were linked to our website. The statements made by the Claussens, Cory J. Rosenberg, and Dom D’Agostino in the Interviews were predominately focused on their personal experiences and how they were inspired to become involved in the Company’s business. The Company was not involved in any way in the preparation of the statements made by the Claussens, Cory J. Rosenberg, or Dom D’Agostino, and all links to the Podcasts have since been deleted from the Company website and all of the Podcasts have been removed from YouTube. The Podcasts were conducted by “The Story of a Brand”; “That Gives Me Anxiety”; “JJ Flizanes” (published on Ms. Flizane’s podcasts: “Nutrition & Alternative Medicine”, “Fit 2 Love”, and “Spirit Purpose & Energy”); “Mycopreneur”; “Koncrete”; “Justin Caviar”; “Humble and Hungry”; “Elevate Your Brand”; “Bliss Project”; “Ashley On”; “Riderflex”; “Let’s Talk Plant Medicine”; “Spiritual Boss Babe”; “Vital Science”; and “Finding Genius”. None of the entities or persons who conducted or published the Interviews are affiliated with the Company or any other offering participant. No payment was made nor was any consideration given to the hosts or anyone else involved in the production of the Interviews by or on behalf of the Company or any other offering participant in connection with the Interviews. You should not consider the statements in the Interviews, as set forth in Exhibit 99.1 to the registration statement of which this prospectus forms a part, in making your investment decision. You should make an investment decision only after carefully evaluating all of the information contained in this prospectus, including the Company’s responses to the statements in the Interviews, as set forth in Exhibit 99.1 to the registration statement of which this prospectus forms a part.

Certain claims regarding our products and business made by the Claussens, Cory J. Rosenberg, or Dom D’Agostino in the Interviews are inaccurate, unsubstantiated, and contradict the claims made in the registration statement of which this prospectus is a part. As a result of the foregoing, the Interviews could be determined not to be in compliance for a registered securities offering under Section 5 of the Securities Act. If the statements or disclosures in the Interviews are determined by a court to be a violation by us of Section 5 of the Securities Act, we could have a contingent liability. Any liability would depend upon the number of Common Shares purchased in this offering. If a claim were brought by any investors in this offering and a court were to conclude that we violated Section 5 of the Securities Act, then those investors might have rescission rights and we (and the selling shareholders) could be required to repurchase the shares sold to them, at the original purchase price, plus statutory interest from the date of purchase, for claims brought during a period of one year from the date of their purchase of our Common Shares. We could also incur considerable expense in contesting any such claims. Further, if the Interviews are deemed to be in violation of Section 5 of the Securities Act, then the SEC and/or relevant state regulators could impose monetary fines or other sanctions under relevant federal and state securities laws.

Free Writing Prospectus

On September 26, 2022, First Person filed an issuer free writing prospectus with the SEC pursuant to Rule 433(f) under the Securities Act (the “Free Writing Prospectus”). The Free Writing Prospectus includes the full text of an article that was published in a September 20, 2022, online publication by reMind Media (the “Article”). As of September 22, 2022, the Article was no longer available on reMind Media’s website or any of its other publications. The Article contained information about the Company and statements made by Chris L. Claussen, one of our directors and our Chief Innovation Officer, and Joseph Claussen, our Director of Business Development, during an interview with reMind Media. The Free Writing Prospectus contains corrective statements regarding certain of the statements made by the Claussens in the Article. The Company was not involved in any way in the interview or the preparation of the statements made by the Claussens. The Article was prepared by reMind Media, which is not affiliated with the Company. No payment was made nor was any consideration given to reMind Media by or on behalf of the Company or any other offering participant in connection with the publication of the Article.

The Article contained the following inaccurate or unsubstantiated statements:

● The Article stated that we have “two pending patents related to a natural psilocybin extract and a novel combination of psilocin and ketones, which [the Company] developed at their lab in Jamaica.” We filed two provisional patent applications, which help protect inventions for a twelve-month period while a formal patent application is being filed. The patent process can take up to twenty-four months or longer to complete and can be challenged during the process. At this time, we cannot state whether the patent applications will be approved, refused, and/or ultimately registered. The innovations were developed by the Claussens, rather than the Company, and were not developed in our lab in Jamaica. Both provisional patent applications were filed in 2021, after the Claussens assigned to us their interests in the innovations. We did not acquire TruMed or have Jamaican operations until 2022, which was after the provisional patent applications were filed. Investors should review the information regarding our intellectual property in “Business—Intellectual Property” beginning on page 60 of this prospectus, and elsewhere in this prospectus, and not the statements made in the Article.

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● When discussing his family’s personal experiences with psilocybin, Joseph Claussen stated in the Article that “there’s no toxicity”. Additionally, Chris L. Claussen stated that “psilocybin had the ability to create some new neural networks,” “our brains are functioning at the highest levels that they ever have,” and that “[w]e know that once you get Alzheimer’s there no cure for it. But we also know that you can prevent it by keeping your brain healthy, to always be creating new neural connections, and maintain neuroplasticity as you age and avoid going into cognitive decline.” We do not intend to market any of our functional mushroom or nutraceutical products for medical use. Our consumer products are required to include a disclaimer that they have not been evaluated by the FDA and are not intended to diagnose, treat, cure, or prevent any disease. We have not conducted clinical studies with respect to the claims made by the Claussens. We cannot confirm that psilocybin will create new neural networks or can prevent the onset of Alzheimer’s disease or cognitive decline. We cannot provide any assurance that any persons will have the same outcomes as Chris L. Claussen, Joseph Claussen, or their father, or that psilocybin was a cause of such outcomes. Investors should review the information regarding our products in the section titled “Business” beginning on page 54 of this prospectus, and elsewhere in this prospectus, and not the statements made in the Article.

● When referring to our products, Joseph Claussen stated in the Article that our products “contain curated amounts of Lion’s Mane and cordyceps — the cordyceps is important because it has an MAO inhibitor, so it provides a longer duration.” Additionally, Chris L. Claussen stated in the Article that “We think our functional mushroom products work wonderfully on their own. But they were definitely designed for a microdosing regime. We deliberately engineered them to stay away from the serotonin receptors. A lot of other nootropics contain everything and the kitchen sink, which will flood your serotonin receptors and interfere with your microdosing. We didn’t want to do that. We targeted our functionals to the dopamine, oxytocin, and GABA receptors. We left serotonin alone, so the psilocybin could do its work.” Our direct-to-consumer brand of supplements contain functional mushrooms and a curated blend of nutraceuticals. Not all of our supplements contains Lions Mane and/or Cordyceps. Nutraceuticals are dietary supplements and are regulated by the FDA. These consumer products do not require FDA approval prior to marketing and distribution, but are required to include a disclaimer that they have not been evaluated by the FDA and are not intended to diagnose, treat, cure, or prevent any disease. We have not conducted clinical studies with respect to the claims made by the Claussens. We cannot confirm that cordyceps provides longer duration or has an MAO inhibitor, that there are any characteristics of different mushrooms that may be beneficial, or that targeting dopamine, oxytocin, and GABA receptors may be possible or beneficial. Investors should review the information regarding the Company’s direct-to-consumer brand of supplements in the section titled “Business” beginning on page 54 of this prospectus, and elsewhere in this prospectus, and not the statements made in the Article.

● When referring to studies that are anticipated to be performed by Charles River Labs, Chris L. Claussen stated in the Article that “[w]e’re really excited about this. We believe there’s a real potential to improve the efficacy of psilocin. Our scientific advisor Dom D’Agostino, a pioneer in the science of the health benefits of the ketogenic diet, is working with us to prove our hypothesis.” Additionally, Joseph Claussen stated in the Article that “[w]hen proven, the improvements in neurogenesis and synaptogenesis could be very powerful.” Charles River Labs is an independent research lab in Canada, with which we have entered into a statement of work to conduct two studies involving psilocybin. Charles River Labs obtained the necessary import permits from Health Canada—a department of the Government of Canada responsible for national health policy—and the Company does not need to acquire any approvals in connection with such research. After Charles River Labs obtains the necessary components for the tests, then Charles River Labs will commence two studies pursuant to the terms of the statement of work, with research and development efforts focused on isolating and studying the individual psychoactive components of mushrooms. Investors should review the information regarding our statement of work with Charles River Labs in the section titled “Business” beginning on page 54 of this prospectus, and elsewhere in this prospectus, and not the statements made in the Article. We have not established objectively that there is a potential to improve the efficacy of psilocybin.

● When referring to the state of our business, Joseph Claussen stated in the Article that “[i]t’s been amazing. We launched in March, and we sold out within three months. We thought we had enough product to last the year, but we ran out. And it’s mostly been organic word of mouth. We’ve done some marketing, but it’s really amazing how rapidly people have found us. Of course, we’re riding a very nice wave of interest in mushrooms right now, so that’s been fortunate.” We launched our direct-to-consumer brand of supplements in March 2022, but the Company was formed in January 2021. In July 2022, we began taking pre-orders only for new purchases, in order to ensure that we maintained sufficient inventory to fulfill existing subscription orders. We operate our business in a new industry and market. There is no assurance that the industry and market will continue to exist and grow as currently estimated or function and evolve in the manner consistent with management’s expectations and assumptions. The mushroom market may decline or mushrooms may fail to achieve substantially greater market acceptance than they currently enjoy. As a result of changing customer preferences, products may attain financial success for a limited period of time. There is no assurance that we will be able to achieve brand awareness in any of our target regions. Investors should review the information regarding our industry and market in the section titled “Business” beginning on page 54 of this prospectus, the section titled “Risk Factors” beginning on page 11 of this prospectus, and elsewhere in this prospectus, and not the statements made in the Article.

● When referring to our business and mission, Chris L. Claussen stated in the Article that “[w]e see ourselves as a brain health company. Our mission is to improve people’s brains. This makes us more than a functional mushroom company, and more than a psychedelics company. We don’t want people to ever fall off the cliff as they get older. We want people to just get better and better. Everything we do is in support of that.” We do not intend to market any of our products for medical use. Our consumer products are required to include a disclaimer that they have not been evaluated by the FDA and are not intended to diagnose, treat, cure, or prevent any disease. Investors should review the information regarding our products in the section titled “Business” beginning on page 54 of this prospectus, and elsewhere in this prospectus, and not the statements made in the Article.

Certain claims regarding our products and business made by the Claussens in the Article are inaccurate, unsubstantiated, and contradict the claims made in the registration statement of which this prospectus is a part. Any statements or disclosures in the Article that did not comply with, or that exceeded the scope permissible under, Rule 134 under the Securities Act, may not be entitled to the safe-harbor provided by Rule 134. As a result, the Article could be determined not to be in compliance for a registered securities offering under Section 5 of the Securities Act. If the statements or disclosures in the Article are determined by a court to be a violation by us of Section 5 of the Securities Act, then we could have a contingent liability. Any liability would depend upon the number of Common Shares purchased in this offering. If a claim were brought by any investors in this offering and a court were to conclude that we violated Section 5 of the Securities Act, then those investors might have rescission rights and we (and the selling shareholders) could be required to repurchase the shares sold to them, at the original purchase price, plus statutory interest from the date of purchase, for claims brought during a period of one year from the date of their purchase of our Common Shares. We could also incur considerable expense in contesting any such claims. Further, if the Article is deemed to be a violation of Section 5 of the Securities Act, the SEC and/or relevant state regulators could impose monetary fines or other sanctions under relevant federal and state securities laws.

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SUMMARY CONSOLIDATED FINANCIAL DATA

The summary consolidated statements of operations data for the year ended December 31, 2021 and 2022, have been derived from our audited consolidated financial statements included elsewhere in this prospectus. The summary consolidated statements of operations data for the six months ended June 30, 2022 and 2023, have been derived from the unaudited consolidated financial statements included elsewhere in this prospectus. The unaudited consolidated financial statements have been prepared on a basis consistent with our audited financial statements and, in our opinion, contain all adjustments, consisting of only normal recurring adjustments, necessary for fair presentation of such financial data. Our historical results are not necessarily indicative of the results that should be expected for any future period.

You should read the consolidated financial data set forth below in conjunction with our consolidated financial statements and the accompanying notes and the information in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” beginning on page 48 of this prospectus.

First Person Ltd.

Consolidated Statement of Operations and Comprehensive Loss

	Year ended December 31,						Six months ended June 30,
	2021(1)			2022			2022			2023
							(Unaudited)			(Unaudited)
	(in thousands, except per share amounts)
Revenues, net	$	-		$	4,334		$	1,080		$	3,895
Cost of Goods Sold		-			1,406			365			1,128
Gross Profit		-			2,928			715			2,766
Operating expenses:
Selling, general and administrative		2,948			8,081			3,631			4,254
Depreciation and amortization		1			52			17			86
Foreign currency transaction loss (gain)		(28	)		101			(6	)		-
Total operating expenses		2,921			8,233			3,642			4,341
Loss from operations		(2,921	)		(5,305	)		(2,927	)		(1,575	)
Other income (expense):
Net interest (expense)		0			(88	)		-			(569	)
Net interest income		0			0			0			1
Total other income (expense)		0			(88	)		0			(567	)
Loss before provision for income taxes		(2,921	)		(5,393	)		(2,927	)		(2,142	)
Provision for income taxes		-			-			-			-
Net loss		(2,921	)		(5,393	)		(2,927	)		(2,142	)
Other comprehensive loss, net of provision for income taxes:
Foreign currency translation gain (loss)		(36	)		64			(11	)		(8	)
Comprehensive loss	$	(2,957	)	$	(5,329	)	$	(2,938	)	$	(2,150	)
Net Loss per Common Share
Basic and diluted		(0.59	)		(0.86	)		(0.50	)		(0.34	)
Weighted Average Number of Common Shares Outstanding
Basic and diluted		4,918			6,252			5,838			6,351

(1) For the period from January 21, 2021 (inception) through December 31, 2021.

9

First Person Ltd.

Consolidated Balance Sheet

	December 31,						June 30,			Pro Forma
	2021			2022			2023			as Adjusted(1)
							(Unaudited)			(Unaudited)
	(in thousands, except share amounts)
ASSETS
Current assets:
Cash		559		$	65		$	200		$	11,645
Accounts Receivable, net		-			55			47			47
Inventory		98			1,013			1,285			1,285
Prepaid expenses and other current assets		540			238			214			214
Deferred offering cost		297			889			1,371			121
Total current assets		1,494			2,260			3,116			13,312
Property and equipment, net		10			988			948			948
Construction-in-progress		452			-			-			-
Deposits		3			17			17			17
Intangible Assets, net		190			132			102			102
Operating lease right-of-use asset		158			197			169			169
Total assets		2,307		$	3,594		$	4,353		$	14,548
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable (includes related party balances of $0 as of December 31, 2021; $686 as of December 31, 2022; $409 as of June 30, 2023)		436		$	2,533		$	2,314		$	1,064
Accrued expenses and other current liabilities		117			278			473			473
Lease liability, current portion		36			79			71			71
Convertible debentures		-			-			2,099			2,249
Loans and note payable		-			1,098			780			1,465
Total current liabilities		589			3,987			5,737			5,321
Lease liability, net of current portion		122			118			99			99
Total liabilities		711			4,105			5,836			5,420
Commitments and contingencies(2)		-			-			-			-
Shareholders’ equity (deficit)
Preferred Shares, no par value – unlimited authorized, 0 shares issued and outstanding, actual, as of December 31, 2021 and 2022; 3,098,971 shares issued and outstanding, actual, as of June 30, 2023; 0 shares issued and outstanding, pro forma as adjusted		-			-			969			-
Common shares, no par value - unlimited authorized, 5,804,254 shares issued and outstanding, actual, as of December 31, 2021; 6,351,354 shares issued and outstanding, actual, as of December 31, 2022, and June 30, 2023; 10,002,033 shares issued and outstanding, pro forma as adjusted		4,358			7,081			7,081			18,662
Additional paid-in capital		196			694			903			903
Accumulated deficit		(2,921	)		(8,314	)		(10,456	)		(10,456	)
Accumulated other comprehensive loss		(36	)		28			20			20
Total shareholders’ equity (deficit)		1,596			(511	)		(1,483	)		9,128
Total liabilities and shareholders’ equity (deficit)		2,307		$	3,594		$	4,353		$	14,548

(1)

The pro forma as adjusted column reflects (i) the receipt of cash proceeds in the amount of $199,774 on July 19, 2023, pursuant to a merchant loan agreement entered into with Cloudfund LLC; (ii) the receipt of cash proceeds in the amount of $260,000 on July 21, 2023, pursuant to a merchant loan agreement entered into with WebBank, on behalf of Shopify Inc.; (iii) the receipt of cash proceeds in the amount of $225,000 on August 31, 2023, pursuant to a merchant loan agreement entered into with Curve Capital LLC; (iv) the issuance of convertible secured promissory notes in the aggregate principal amount of $239,130 and 239,129 Series 1 Shares to accredited investors for gross proceeds of approximately $220,000 on September 7, 2023; (v) the conversion of all outstanding Series 1 Shares into 750,679 Common Shares; and (vi) the issuance and sale of Common Shares by us in this offering at the Primary Offering price of $4.50 per Common Share, which is the midpoint of the price range set forth on the cover of this prospectus, after deducting the estimated underwriting discounts and the estimated offering expenses payable by us. Any holder of Series 1 Shares may, at any time, elect to convert all or any portion of the outstanding Series 1 Shares held by such holder into Common Shares. The Series 1 Shares will automatically convert into Common Shares on the date that is 12 months after the closing of the Primary Offering. The number of Common Shares issuable upon conversion of the Series 1 Shares is calculated as of the date of this prospectus as follows: (i) with respect to the 1,748,970 Series 1 Shares issued on January 3, 2023, January 9, 2023, and February 6, 2023, (a) the aggregate number of Series 1 Shares outstanding, divided by (b) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus; and (ii) with respect to the 1,589,130 Series 1 Shares issued on March 31, 2023, and September 7, 2023, (a) the aggregate number of Series 1 Shares outstanding, multiplied by (b) 0.6, divided by (c) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus. The actual number of Common Shares issuable upon conversion of the outstanding Series 1 Shares may increase or decrease on a future date based on when the closing of the Primary Offering occurs and the actual offering price per Common Share. See “Description of Share Capital – Preferred Shares” on page 93 of this prospectus for more information regarding the conversion of the Series 1 Shares. The pro forma as adjusted information discussed above is illustrative only and will depend on the actual Primary Offering price and other terms of this offering determined at pricing. Each $0.50 increase (decrease) in the assumed Primary Offering price of $4.50 per Common Share, which is the midpoint of the price range set forth on the cover of this prospectus, would increase (decrease) the pro forma as adjusted amount of each of cash, total assets, and total stockholders’ equity by approximately $1.33 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 estimated underwriting discounts and commissions. Similarly, each increase (decrease) of 100,000 Common Shares offered by us would increase (decrease) the pro forma as adjusted amount of each of cash, total assets, and total stockholders’ equity by approximately $0.41 million, assuming the assumed Primary Offering price remains the same, and after deducting estimated underwriting discounts and commissions.

(2)

See Note 10 to the unaudited consolidated financial statements included elsewhere in this prospectus.

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RISK FACTORS

Investing in our Common Shares involves a high degree of risk. You should carefully consider the following information about these risks, together with the other information appearing elsewhere in this prospectus, including our consolidated financial statements, the notes thereto, and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” beginning on page 48 of this prospectus, before deciding to invest in the Common Shares offered by this prospectus. The occurrence of any of the following risks could have a material and adverse effect on our business, reputation, financial condition, results of operations, and future growth prospects, as well as our ability to accomplish our strategic objectives. As a result, the trading price of our Common Shares could decline and you could lose all or part of your investment. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our business operations and the trading price of our Common Shares. Certain statements contained in this section constitute forward-looking statements. See “Cautionary Note Regarding Forward-Looking Statements” on page 41 of this prospectus.

We might have contingent liability arising out of a possible violation of Section 5 of the Securities Act in connection with certain statements and disclosures made in an online article appearing on Bloomberg on July 21, 2022; a television interview broadcast by NewsNation on October 17, 2022; and fifteen podcasts released between July 13, 2021 and February 2, 2023, nine of which were temporarily linked to the Company website. The podcasts were conducted by “The Story of a Brand”; “That Gives Me Anxiety”; “JJ Flizanes” (published on Ms. Flizane’s podcasts: “Nutrition & Alternative Medicine”, “Fit 2 Love”, and “Spirit Purpose & Energy”); “Mycopreneur”; “Koncrete”; “Justin Caviar”; “Humble and Hungry”; “Elevate Your Brand”; “Bliss Project”; “Ashley On”; “Riderflex”; “Let’s Talk Plant Medicine”; “Spiritual Boss Babe”; “Vital Science”; and “Finding Genius”.

Information about the Company and statements made by Chris L. Claussen, one of our directors and our Chief Innovation Officer, Joseph Claussen, our Director of Business Development, Cory J. Rosenberg, our Chairman, Chief Executive Officer, and President, and Dom D’Agostino, our scientific advisor, during fifteen podcast interviews were uploaded to YouTube and links to nine of such Podcasts were temporarily posted to our new Company website. The Podcasts that were temporarily linked to the Company website were created between March 29, 2022 and February 2, 2023. In addition, information about the Company and statements made by the Claussens were published in an online article appearing on Bloomberg on July 21, 2022 and a television interview broadcast by NewsNation on October 17, 2022, neither of which were linked to our website. The statements made by the Claussens, Cory J. Rosenberg, and Dom D’Agostino in the Interviews were predominately focused on their personal experiences and how they were inspired to become involved in the Company’s business. The Company was not involved in any way in the preparation of the statements made by the Claussens, Cory J. Rosenberg, or Dom D’Agostino, and all links to the Podcasts have since been deleted from the Company website and all of the Podcasts have been removed from YouTube.

The Podcasts were conducted by “The Story of a Brand”; “That Gives Me Anxiety”; “JJ Flizanes” (published on Ms. Flizane’s podcasts: “Nutrition & Alternative Medicine”, “Fit 2 Love”, and “Spirit Purpose & Energy”); “Mycopreneur”; “Koncrete”; “Justin Caviar”; “Humble and Hungry”; “Elevate Your Brand”; “Bliss Project”; “Ashley On”; “Riderflex”; “Let’s Talk Plant Medicine”; “Spiritual Boss Babe”; “Vital Science”; and “Finding Genius”. None of the entities or persons who conducted or published the Interviews are affiliated with the Company or any other offering participant. No payment was made nor was any consideration given to the hosts or anyone else involved in the production of the Interviews by or on behalf of the Company or any other offering participant in connection with the Interviews.

You should not consider the statements in the Interviews, as set forth in Exhibit 99.1 to the registration statement of which this prospectus forms a part, in making your investment decision. You should make an investment decision only after carefully evaluating all of the information contained in this prospectus, including the Company’s responses to the statements in the Interviews, as set forth in Exhibit 99.1 to the registration statement of which this prospectus forms a part.

Certain claims regarding our products and business made by the Claussens, Cory J. Rosenberg, or Dom D’Agostino in the Interviews are inaccurate, unsubstantiated, and contradict the claims made in the registration statement of which this prospectus is a part. As a result of the foregoing, the Interviews could be determined not to be in compliance for a registered securities offering under Section 5 of the Securities Act. If the statements or disclosures in the Interviews are determined by a court to be a violation by us of Section 5 of the Securities Act, we could have a contingent liability. Any liability would depend upon the number of Common Shares purchased in this offering. If a claim were brought by any investors in this offering and a court were to conclude that we violated Section 5 of the Securities Act, then those investors might have rescission rights and we (and the selling shareholders) could be required to repurchase the shares sold to them, at the original purchase price, plus statutory interest from the date of purchase, for claims brought during a period of one year from the date of their purchase of our Common Shares. We could also incur considerable expense in contesting any such claims. Further, if the Interviews are deemed to be a violation of Section 5 of the Securities Act, the SEC and/or relevant state regulators could impose monetary fines or other sanctions under relevant federal and state securities laws. Such payments, expenses, and fines, if required, could significantly reduce the amount of working capital we have available for our operations and business plan, delay or prevent us from completing our plan of operations, or force us to raise additional funding sooner than expected, which funding may not be available on favorable terms, if at all. Additionally, the trading price of our Common Shares might decline in value in the event we are deemed to have liability, are required to make payments, or face sanctions in connection with the potential claim described above.

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We might have contingent liability arising out of a possible violation of Section 5 of the Securities Act in connection with certain statements and disclosures made in an article published online on September 20, 2022.

Information about the Company and statements made by Chris L. Claussen, one of our directors and our Chief Innovation Officer, and Joseph Claussen, our Director of Business Development, were published in an online publication by reMind Media on September 20, 2022. The statements attributed to Chris L. Claussen and Joseph Claussen in the Article were made during an interview by reMind Media focused on how Chris L. Claussen’s and Joseph Claussen’s personal experiences inspired them to become involved in our business. The Company was not involved in any way in the interview or the preparation of the statements made by Chris L. Claussen or Joseph Claussen. The Article was prepared by reMind Media, which is not affiliated with the Company. No payment was made nor was any consideration given to reMind Media by or on behalf of the Company or any other offering participant in connection with the publication of the Article. Upon becoming aware of the Article and the inclusion of certain statements relating to the Company and the Offering, we requested the Article be deleted from reMind Media’s website. As of September 22, 2022, the Article was no longer available on reMind Media’s website or any of its other publications. On September 26, 2022, we filed an issuer free writing prospectus with the SEC pursuant to Rule 433(f) under the Securities Act. The Free Writing Prospectus includes the full text of the Article.

The Article contained the following inaccurate or unsubstantiated statements:

● The Article stated that we have “two pending patents related to a natural psilocybin extract and a novel combination of psilocin and ketones, which [the Company] developed at their lab in Jamaica.” We filed two provisional patent applications, which help protect inventions for a twelve-month period while a formal patent application is being filed. The patent process can take up to twenty-four months or longer to complete and can be challenged during the process. At this time, we cannot state whether the patent applications will be approved, refused, and/or ultimately registered. The innovations were developed by Chris L. Claussen and Joseph Claussen, rather than the Company, and were not developed in our lab in Jamaica. Both provisional patent applications were filed in 2021, after Chris L. Claussen and Joseph Claussen assigned to us their interests in the innovations. We did not acquire TruMed or have Jamaican operations until 2022, which was after the provisional patent applications were filed. Investors should review the information regarding our intellectual property in “Business—Intellectual Property” beginning on page 60 of this prospectus, and elsewhere in this prospectus, and not the statements made in the Article.

● When discussing his family’s personal experiences with psilocybin, Joseph Claussen stated in the Article that “there’s no toxicity”. Additionally, Chris L. Claussen stated that “psilocybin had the ability to create some new neural networks,” “our brains are functioning at the highest levels that they ever have,” and that “[w]e know that once you get Alzheimer’s there no cure for it. But we also know that you can prevent it by keeping your brain healthy, to always be creating new neural connections, and maintain neuroplasticity as you age and avoid going into cognitive decline.” We do not intend to market any of our products for medical use. Our consumer products are required to include a disclaimer that they have not been evaluated by the FDA and are not intended to diagnose, treat, cure, or prevent any disease. We have not conducted clinical studies with respect to the claims made by Chris L. Claussen and Joseph Claussen. We cannot confirm that psilocybin will create new neural networks or can prevent the onset of Alzheimer’s disease or cognitive decline. We cannot provide any assurance that any persons will have the same outcomes as Chris L. Claussen, Joseph Claussen, or their father, or that psilocybin was a cause of such outcomes. Investors should review the information regarding our products in the section titled “Business” beginning on page 54 of this prospectus, and elsewhere in this prospectus, and not the statements made in the Article.

● When referring to our products, Joseph Claussen stated in the Article that our products “contain curated amounts of Lion’s Mane and cordyceps — the cordyceps is important because it has an MAO inhibitor, so it provides a longer duration.” Additionally, Chris L. Claussen stated in the Article that “We think our functional mushroom products work wonderfully on their own. But they were definitely designed for a microdosing regime. We deliberately engineered them to stay away from the serotonin receptors. A lot of other nootropics contain everything and the kitchen sink, which will flood your serotonin receptors and interfere with your microdosing. We didn’t want to do that. We targeted our functionals to the dopamine, oxytocin, and GABA receptors. We left serotonin alone, so the psilocybin could do its work.” Our direct-to-consumer brand of supplements contain functional mushrooms and a curated blend of nutraceuticals. Not all of our supplements contains Lions Mane and/or Cordyceps. Nutraceuticals are dietary supplements and are regulated by the FDA. These consumer products do not require FDA approval prior to marketing and distribution, but are required to include a disclaimer that they have not been evaluated by the FDA and are not intended to diagnose, treat, cure, or prevent any disease. We have not conducted clinical studies with respect to the claims made by Chris L. Claussen and Joseph Claussen. We cannot confirm that cordyceps provides longer duration or has an MAO inhibitor, that there are any characteristics of different mushrooms that may be beneficial, or that targeting dopamine, oxytocin, and GABA receptors may be possible or beneficial. Investors should review the information regarding the Company’s direct-to-consumer brand of supplements in the section titled “Business” beginning on page 54 of this prospectus, and elsewhere in this prospectus, and not the statements made in the Article.

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● When referring to studies that are anticipated to be performed by Charles River Labs, Chris L. Claussen stated in the Article that “[w]e’re really excited about this. We believe there’s a real potential to improve the efficacy of psilocin. Our scientific advisor Dom D’Agostino, a pioneer in the science of the health benefits of the ketogenic diet, is working with us to prove our hypothesis.” Additionally, Joseph Claussen stated in the Article that “[w]hen proven, the improvements in neurogenesis and synaptogenesis could be very powerful.” Charles River Labs is an independent research lab in Canada, with which we have entered into a statement of work to conduct two studies involving psilocybin. Charles River Labs obtained the necessary import permits from Health Canada—a department of the Government of Canada responsible for national health policy—and the Company does not need to acquire any approvals in connection with such research. After Charles River Labs obtains the necessary components for the tests, then Charles River Labs will commence two studies pursuant to the terms of the statement of work, with research and development efforts focused on isolating and studying the individual psychoactive components of mushrooms. Investors should review the information regarding our statement of work with Charles River Labs in the section titled “Business” beginning on page 54 of this prospectus, and elsewhere in this prospectus, and not the statements made in the Article. We have not established objectively that there is a potential to improve the efficacy of psilocybin.

● When referring to the state of our business, Joseph Claussen stated in the Article that “[i]t’s been amazing. We launched in March, and we sold out within three months. We thought we had enough product to last the year, but we ran out. And it’s mostly been organic word of mouth. We’ve done some marketing, but it’s really amazing how rapidly people have found us. Of course, we’re riding a very nice wave of interest in mushrooms right now, so that’s been fortunate.” We launched our direct-to-consumer brand of supplements in March 2022, but the Company was formed in January 2021. In July 2022, we began taking pre-orders only for new purchases, in order to ensure that we maintained sufficient inventory to fulfill existing subscription orders. We operate our business in a new industry and market. There is no assurance that the industry and market will continue to exist and grow as currently estimated or function and evolve in the manner consistent with management’s expectations and assumptions. The mushroom market may decline or mushrooms may fail to achieve substantially greater market acceptance than they currently enjoy. As a result of changing customer preferences, products may attain financial success for a limited period of time. There is no assurance that we will be able to achieve brand awareness in any of our target regions. Investors should review the information regarding our industry and market in the section titled “Business” beginning on page 54 of this prospectus, the section titled “Risk Factors” beginning on page 11 of this prospectus, and elsewhere in this prospectus, and not the statements made in the Article.

● When referring to our business and mission, Chris L. Claussen stated in the Article that “[w]e see ourselves as a brain health company. Our mission is to improve people’s brains. This makes us more than a functional mushroom company, and more than a psychedelics company. We don’t want people to ever fall off the cliff as they get older. We want people to just get better and better. Everything we do is in support of that.” We do not intend to market any of our products for medical use. Our consumer products are required to include a disclaimer that they have not been evaluated by the FDA and are not intended to diagnose, treat, cure, or prevent any disease. Investors should review the information regarding our products in the section titled “Business” beginning on page 54 of this prospectus, and elsewhere in this prospectus, and not the statements made in the Article.

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Any statements or disclosures in the Article that did not comply with, or that exceeded the scope permissible under, Rule 134 under the Securities Act, may not be entitled to the safe-harbor provided by Rule 134. As a result, the Article could be determined not to be in compliance for a registered securities offering under Section 5 of the Securities Act. If the statements or disclosures in the Article are determined by a court to be a violation by us of Section 5 of the Securities Act, we could have a contingent liability. Any liability would depend upon the number of Common Shares purchased in this offering. If a claim were brought by any investors and a court were to conclude that we violated Section 5 of the Securities Act, then those investors might have rescission rights and we (and the selling shareholders) could be required to repurchase the shares sold to them, at the original purchase price, plus statutory interest from the date of purchase, for claims brought during a period of one year from the date of their purchase of our Common Shares. We could also incur considerable expense in contesting any such claims. Further, if the Article is deemed to be a violation of Section 5 of the Securities Act, the SEC and/or relevant state regulators could impose monetary fines or other sanctions under relevant federal and state securities laws. Such payments, expenses, and fines, if required, could significantly reduce the amount of working capital we have available for our operations and business plan, delay or prevent us from completing our plan of operations, or force us to raise additional funding sooner than expected, which funding may not be available on favorable terms, if at all. Additionally, the trading price of our Common Shares might decline in value in the event we are deemed to have liability, are required to make payments, or face sanctions in connection with the potential claim described above.

Risks Related to Our Limited Operating History, Financial Position and Capital Needs

We have a limited operating history and a history of net losses, and we may not achieve or maintain profitability in the future.

We have a very limited history of operations and are considered an early stage company. We were formed in January 2021. Although this prospectus includes audited financial statements for the period from January 21, 2021 (inception) through December 31, 2021, and for the year ended December 31, 2022, and unaudited financial statements for the six months ended June 30, 2023, we commenced our commercial operations in March 2022. As such, there is very limited financial information about us and such information has been supplemented with other relevant information disclosed in this prospectus so as to enable an investor to make an informed investment decision. We are subject to many risks common to such enterprises, including under-capitalization, cash shortages, limitations with respect to personnel, financial, and other resources, and lack of revenues, as well as significant competition from existing and emerging competitors, many of which are established and have access to capital. In addition, as a new business, we may encounter unforeseen expenses, difficulties, complications, delays, and other known and unknown factors. We will need to transition from an early stage company to a company capable of supporting larger scale commercial activities. If we are not successful in such a transition, our business, results, and financial condition will be harmed.

Although we expect to become profitable, there is no guarantee that will happen, and we may never become profitable. We currently have a negative operating cash flow and may continue to have that for the foreseeable future. To the extent that we have negative operating cash flow in future periods, we will need to allocate a portion of our cash (including proceeds from this offering) to fund such negative cash flow. For the period from January 21, 2021 (inception) through June 30, 2023, our net loss was $10,456,225. Our net losses may worsen and our ability to generate increased revenues and potential to become profitable will depend largely on our ability to manufacture and market our products. There can be no assurance that any such events will occur or that we will ever become profitable. Even if we do achieve profitability, we cannot predict the level of such profitability. If we sustain losses over an extended period of time, we may be unable to continue our business.

We will need additional financing to continue to sustain operations at this time.

Our operating cash flow is insufficient to fund all of our operational needs and we will require additional financing to continue our operations. There can be no assurance that such financing will be available on favorable terms or at all. Failure to obtain additional financing could result in delay or indefinite postponement of the deployment of our products. Additional financing may dilute the ownership interest of our shareholders at the time of the financing, and may dilute the value of their investment in our Common Shares. After taking into account the proceeds of this offering, we anticipate that our current cash reserves will last in excess of twelve months under our present operating expectations.

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We may face difficulties obtaining additional financing, and additional financing may result in further dilution.

We anticipate expending substantial funds to carry out the development, introduction, distribution, and manufacture of our products. We may require additional funds for these purposes through one or more public or private financing transactions. No assurance can be given that such additional funds will be available on acceptable terms or at all. Additionally, U.S. banks often refuse to provide banking services to businesses involved in the psilocybin industry because of the present state of the laws and regulations governing financial institutions in the United States, which discourage the provision of banking services to companies involved in the research or production of controlled substances. Consequently, in comparison to companies in other industries, we may face increased difficulties in obtaining financing from U.S. banks due to the nature of our business. If such funds are unavailable or are only available at a prohibitive cost, we may have to significantly curtail our product development program or seek funds through financing alternatives, including equity financing. Any additional equity financing may result in dilution to existing shareholders.

There is substantial doubt about our ability to continue as a going concern.

We have a history of net losses and are primarily dependent upon financing transactions to obtain additional funds for product development and operating expenses. The report of our independent registered public accounting firm on our consolidated financial statements for the year ended December 31, 2022, included an explanatory paragraph expressing management’s assessment and conclusion that there is substantial doubt about our ability to continue as a going concern, citing our significant working capital deficiency and our significant losses. Our ability to continue as a going concern will be determined by our ability to generate sufficient cash flow to sustain our operations and/or raise additional capital in the form of debt or equity financing. Delays in obtaining the capital, onerous terms for the capital, or a failure to raise additional capital could have a material negative impact on our business or plans of operations. We believe that the inclusion of a going concern explanatory paragraph in the report of our registered public accounting firm may make it more difficult for us to secure additional financing or enter into strategic relationships with distributors on terms acceptable to us, if at all, and likely will materially and adversely affect the terms of any financing that we might obtain. Our consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

We face general risks common to early stage companies, including ongoing requirements for additional capital.

Our Common Shares must be considered highly speculative due to the nature of our business, the early stage of our deployment, current financial position, and ongoing capital. An investment in our Common Shares should only be considered by those persons who can afford a total loss of investment, and is not suited to those investors who may need to dispose of their investment in a timely fashion. Investors should consult with their own professional advisors to assess the legal, financial, and other aspects of an investment in our Common Shares.

We may be exposed to financial risk related to the fluctuation of foreign exchange rates and the degrees of volatility of those rates.

We may be adversely affected by foreign currency fluctuations. Our functional currency is the Canadian dollar, but the functional currency of our operating company in the United States is the U.S. dollar. To date, we have been primarily funded through issuances of equity that have been denominated in Canadian dollars. However, a significant portion of our expenditures are paid in U.S. dollars, and we are, therefore, subject to foreign currency fluctuations that may, from time to time, impact our financial position and results of operations.

We will incur significant costs during the transition to a public company, and face ongoing costs of maintaining a public listing.

We expect this offering will have a significant transformative effect on us. We expect to incur significant additional legal, accounting, reporting, and other expenses as a result of being a public company. We will also incur new costs related to being a public company that we have not incurred previously, including, but not limited to, costs and expenses for managing directors’ and supervisory directors’ fees, increased directors and officers insurance, investor relations, and various other costs of a public company.

15

We also anticipate that we will incur costs associated with corporate governance requirements, including requirements under the Sarbanes-Oxley Act, laws, regulations, and requirements relating to becoming a reporting issuer in Alberta, Canada, as well as rules implemented by the SEC and the Nasdaq Stock Market, LLC (“Nasdaq”). We expect these rules and regulations to increase our legal and financial compliance costs and make some management and corporate governance activities more time consuming and costly. These rules and regulations may make it more difficult and more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. This could have an adverse impact on our ability to retain, recruit, and bring on a qualified independent supervisory board. We expect that the additional costs we will incur as a public company, including costs associated with corporate governance requirements, will be considerable relative to our costs as a private company.

The transition to a public company may disrupt and have a negative effect on our regular operations.

The additional demands associated with being a public company may disrupt regular operations of our business by diverting the attention of some of our senior management team away from revenue producing activities to management and administrative oversight, adversely affecting our ability to attract and complete business opportunities and increasing the difficulty in both retaining professionals and managing and growing our businesses. Any of these effects could harm our business, financial condition, and results.

Our management team’s financial projections are based on assumptions and estimates that may be inaccurate.

Our actual financial position and results of operations may differ materially from management’s expectations. We may experience changes in our operating plans and certain delays with respect to our operating plans. As a result, our revenue, net income, and cash flow may differ materially from our projected revenue, net income, and cash flow. The process for estimating our revenue, net income, and cash flow requires the use of judgment in determining the appropriate assumptions and estimates. These estimates and assumptions may be revised as additional information becomes available and as additional analyses are performed. In addition, the assumptions used in planning may not prove to be accurate, and other factors may affect our financial condition or results of operations.

Risk Related to Our Products and Business

We face significant ongoing costs and obligations related to developing our business and products, and these costs may increase in the future, which may result in significant losses.

We expect to incur significant ongoing costs and obligations related to developing our business and products, which could have a material adverse impact on our results of operations, financial condition, and cash flows. In addition, future changes in regulations, more vigorous enforcement thereof, or other unanticipated events could require extensive changes to our operations, increased compliance costs, or give rise to material liabilities, which could have a material adverse effect on our business, results of operations and financial condition. Our efforts to grow our business may be more costly than we expect, and we may not be able to increase our revenue enough to offset our higher operating expenses. We may incur significant losses in the future for a number of reasons, including the other risks described in this prospectus, and unforeseen expenses, difficulties, complications and delays, and other unknown events. If we are unable to achieve and sustain profitability, the market price of our Common Shares may significantly decrease.

We have incurred substantial expenses related to the development and initial operations of our business and we may never become profitable, earn revenues, or pay dividends.

There is no assurance that we will be profitable or pay dividends. We have incurred, and anticipate that we will continue to incur, substantial expenses relating to the development and initial operations of our business. The payment and amount of any future dividends will depend upon, among other things, our results of operations, cash flow, financial condition, and operating and capital requirements. There is no assurance that future dividends will be paid, and, if dividends are paid, there is no assurance with respect to the amount of any such dividends.

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As our operating expenses increase, we may not be able to generate revenue growth or sustain any revenue growth that we achieve.

There can be no assurance that we can generate revenue growth, or that any revenue growth that is achieved can be sustained. Revenue growth that we may achieve may not be indicative of future operating results. In addition, we may further increase operating expenses in order to fund higher levels of research and development, increase sales and marketing efforts and increase administrative resources in anticipation of future growth. To the extent that increases in such expenses precede or are not subsequently followed by increased revenues, our business, operating results, and financial condition will be materially adversely affected.

The functional-mushroom and psilocybin industries are new in the United States, and the industries and markets may not continue to exist or develop as anticipated or we may ultimately be unable to succeed as anticipated in these industries and markets.

We operate our business in a new industry and market. There is no assurance we will be able to derive meaningful revenue from our investment in functional or psychedelic mushrooms, or that we will pursue that business to the extent currently proposed or at all. In addition to being subject to general business risks, we must continue to build brand awareness in this industry and market through significant investments in our strategy, production capacity, quality assurance, and compliance with regulations. In addition, there is no assurance that the industry and market will continue to exist and grow as currently estimated or function and evolve in the manner consistent with management’s expectations and assumptions. Any event or circumstance that adversely affects our industry and market could have a material adverse effect on our business, financial conditions, and results of operations.

Psilocybin is highly regulated at the federal and state level, and authorizations for the production of psilocybin are still in the early stages and we may not receive the required approvals.

Psilocybin is a Schedule I controlled substance under the CSA. Even in U.S. states or territories that have decriminalized psilocybin to some extent, unless specific authority is obtained from the DEA, the propagation, possession, and sale of psilocybin all remain violations of U.S. federal law punishable by imprisonment, substantial fines, and forfeiture. To obtain federal authority to grow or manufacture psilocybin for federally sanctioned research and other limited purposes, one must receive a permit from the DEA and meet certain requirements imposed by the DEA. The registration process to manufacture controlled substances is codified under 21 U.S.C. § 823. It requires that the U.S. Attorney General determine whether registrations are in the public interest; to do so, the U.S. Attorney General is directed to consider multiple factors, including “compliance with applicable State and local law.”

Research involving controlled substances in the State of Washington requires participating individuals to register with both the DEA and the WDOH. Applicants must obtain a controlled substance researcher registration from the WDOH prior to registering with the DEA. Chris L. Claussen, our Chief Innovation Officer, submitted a controlled substance researcher application with the WDOH in order for FP, Inc. to conduct psilocybin research, with such application listing FP, Inc.’s Olympia, Washington facility as the research lab location. The application was submitted on July 12, 2021, and remains under review. If the WDOH registration is granted, then FP, Inc. intends to utilize such registration to apply for licensure with the DEA to make our facility in Olympia, Washington a licensed psilocybin facility.

Unless there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we are able to obtain all of the requisite approvals, including approvals to produce, or conduct research involving, psychedelic mushrooms in the United States, then all of our activities involving psychedelic mushrooms and psilocybin will occur in Jamaica through TruMed, or through agreements with independent research labs in accordance with applicable laws. If there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we receive the necessary approvals from the WDOH and the DEA in order to legally produce and research psilocybin in the State of Washington in the United States, then we intend to expand domestic U.S. production to include psychedelic mushrooms and conduct research and development, focusing on analyzing certain psychedelic mushroom species and extraction and production methods that standardize the potency of naturally-occurring psilocybin in mushrooms for use in approved clinical trials by drug development companies. Our intended research and development activities in the United States would be parallel to TruMed’s intended activities in Jamaica, but we believe carrying out such activities in the United States would improve our ability to enter the psychedelic mushroom supply chain for the psychedelics research and development market in the United States.

We may not commence psilocybin propagation operations in the United States until we receive the requisite approvals from the WDOH and the DEA, and there is no guarantee that we will receive such approvals. If we are successful in obtaining such approvals, we will be subject to strict regulations from both the State of Washington and the DEA relating to security, recordkeeping, reporting, and inventory controls to prevent drug loss and diversion. The licenses from the WDOH and the DEA, if successfully obtained, will only be provided on an annual basis and we may not be successful in renewing such licenses each subsequent year. The failure to obtain the necessary approvals to conduct psilocybin research at our Olympia, Washington facility (or the renewal of such approvals if obtained) would prevent us from expanding domestic U.S. production to include psychedelic mushrooms (or would require us to cease such production), which could limit our ability to enter the psychedelic mushroom supply chain for the psychedelics research and development market in the United States if there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V).

17

The dynamic nature of the laws and regulations affecting the psilocybin market, including the federal authorization of psilocybin, or the state-regulated psilocybin industry, could adversely affect our proposed operations in the United States, and we cannot predict the impact that future regulations may have on us.

Local, state, and federal psilocybin laws and regulations have been evolving rapidly and are subject to varied interpretations, which could require us to incur substantial costs associated with compliance or negatively impact, and accordingly cause us to alter, our business plan, which could require further costs and negatively impact our business and future results of operations. We can know neither the nature of any future laws, regulations, interpretations, or applications nor how additional governmental regulations or administrative policies and procedures, when and if promulgated, could impact our business. For example, if psilocybin is no longer illegal under federal law, and depending on future laws or guidance on psilocybin for research, we may experience a significant increase in competition. Accordingly, any change in these laws or regulations, changes in their interpretation, or newly enacted laws or regulations or any failure by us to comply with these laws or regulations could require changes to certain of our business practices, negatively impact our operations, cash flow, or financial condition, impose additional costs on us, or otherwise adversely affect our business.

A denial of, or significant delay in obtaining, or any interruption of required government authorizations to produce psilocybin for federally sanctioned purposes would likely have a significant negative impact on the Company’s business plans.

While psilocybin is not an illegal drug under the Jamaica Drug Act and we intend to conduct research and development involving psychedelic mushrooms in Jamaica through TruMed, a portion of our business plan in the United States depends on rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and us receiving the necessary state and federal authorizations to research and produce psilocybin for federally sanctioned purposes. There is no guaranty that there will be rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) or, in the event there is rescheduling, what types of activities will be permitted under the new legal regime. Our Company may not commence psilocybin propagation operations in the United States until both the WDOH and the U.S. federal government, in particular the DEA, have signed off that the Company has met its obligations under state law and is compliance with all applicable DEA regulations. There is no guarantee that we will receive the necessary approvals from either the WDOH or the DEA.

For drugs manufactured in the United States, the DEA establishes annually an aggregate quota for the amount of substances within Schedules I and II that may be manufactured or produced in the United States based on the DEA’s estimate of the quantity needed to meet legitimate medical, scientific, research, and industrial needs. The DEA also issues individual production quotas for Schedule I Controlled Substance registrants. These quotas may only be adjusted once per year, at the DEA’s sole discretion. The DEA’s quotas may limit our ability to achieve revenue goals, even if we are able to obtain DEA Controlled Substance Research and/or Manufacturing registrations. The failure to obtain the necessary approvals to conduct psilocybin research at our Olympia, Washington facility (or the renewal of such approvals if obtained) would prevent us from expanding domestic U.S. production to include psychedelic mushrooms (or would require us to cease such production), which could limit our ability to enter the psychedelic mushroom supply chain for the psychedelics research and development market in the United States if there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V), and could have a significant negative impact on our business plans in the United States.

Operating in a highly regulated business requires significant resources.

We intend to operate a highly regulated, vertically integrated business involving psilocybin. Research involving controlled substances in the State of Washington requires participating individuals to register with both the DEA and the WDOH. Applicants must obtain a controlled substance researcher registration from the WDOH prior to registering with the DEA. Chris L. Claussen, our Chief Innovation Officer, submitted a controlled substance researcher application with the WDOH in order for FP, Inc. to conduct psilocybin research, with such application listing FP, Inc.’s Olympia, Washington facility as the research lab location. The application was submitted on July 12, 2021, and remains under review. If the WDOH registration is granted, then FP, Inc. intends to utilize such registration to apply for licensure with the DEA to make our facility in Olympia, Washington a licensed psilocybin facility. If there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we receive the necessary approvals from the WDOH and the DEA in order to legally produce and research psilocybin in the State of Washington in the United States, then we intend to expand domestic U.S. production to include psychedelic mushrooms and conduct research and development, focusing on analyzing certain psychedelic mushroom species and extraction and production methods that standardize the potency of naturally-occurring psilocybin in mushrooms for use in approved clinical trials by drug development companies. We expect that pursuing the necessary approvals and ensuring compliance with the laws, regulations, and guidelines, and changes thereto, that impact our intended business plans involving psilocybin will require a significant amount of our management’s time and external resources.

Additionally, even if psilocybin were to become legal under U.S. federal law, companies operating in the psilocybin industry would have to comply with all applicable state and local laws, which may vary greatly between jurisdictions, increasing costs for companies that operate in multiple jurisdictions. Therefore, in the event we receive the necessary approvals from the WDOH and the DEA in order to legally produce and research psilocybin in the State of Washington in the United States and enter the psychedelic mushroom supply chain for the psychedelics research and development market in the United States, we may still be subject to a variety of laws, regulations, and guidelines related to such activities. Complying with multiple regulatory regimes will require additional resources and may negatively impact our ability to expand into certain U.S. jurisdictions.

We compete for market share with other companies, some of which have longer operating histories and may have more financial resources and manufacturing and marketing experience than we have.

We face competition in the markets in which we operate. Some of our competitors have longer operating histories and may have more financial resources and manufacturing and marketing experience than we have. Some of our competitors may also be better positioned to develop superior product features and technological innovations and may be able to better adapt to market trends. Our ability to compete depends on, among other things, high product quality, short lead-time, timely delivery, competitive pricing, range of product offerings, and superior customer service and support. Increased competition may require us to reduce prices or increase costs and may have a material adverse effect on our financial condition and results of operations. Any decrease in the quality of our products or level of service to customers or any occurrence of a price war among our competitors and us may adversely affect the business and results of operations.

18

We may expend substantial time and financial resources on potential acquisitions of other companies and such acquisitions may not be completed or successful.

Our success will depend, in part, on our ability to grow our business in response to the demands of consumers and other constituents within the functional mushroom industry as well as competitive pressures. In some circumstances, we may decide to grow our business through the acquisition of complementary businesses rather than through internal development. The identification of suitable acquisition candidates can be difficult, time-consuming, and costly and we may not be able to successfully complete identified acquisitions. In addition, we may not realize the expected benefits from completed acquisitions. Our failure to address risks encountered in connection with any future acquisitions or investments could cause us to fail to realize the anticipated benefits of these acquisitions or investments, cause us to incur unanticipated liabilities and harm our business generally. Future acquisitions could also result in the incurrence of debt, contingent liabilities, amortization expenses, or the impairment of goodwill, any of which could harm our financial condition.

The psychedelics industry is in a nascent stage so there is a lack of information about the business models of comparable companies and the potential market size.

We plan to conduct psychedelic mushroom product research and development in Jamaica through TruMed. Psilocybin is not an illegal drug under the Jamaica Drug Act. Therefore, the cultivation of, and research involving, psychedelic mushrooms is not in contravention of the laws of Jamaica and does not require any permit or authorization from the regulatory authorities in Jamaica. If there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we obtain the requisite approvals from all applicable state and federal governmental authorities, including the WDOH and the DEA, then we intend to build out our naturally-derived psychedelic mushroom supply chain in the United States in full compliance with state and federal laws. Because the legal psychedelics industry is in a nascent stage, there is a lack of information about comparable companies available for potential investors to review in deciding about whether to invest in our Common Shares, and few, if any, established companies whose business model we can follow or upon whose success we can build. Accordingly, investors will have to rely on their own estimates in deciding about whether to invest in our Common Shares. There can be no assurance that our estimates are accurate or that the market size is sufficiently large for our business to grow as projected, which may negatively impact our financial results.

Our ability to cultivate and/or acquire mushrooms for our products is subject to risks inherent in agricultural operations.

Our products are derived from mushrooms. Accordingly, we must grow or acquire enough mushrooms so that our products can be produced to meet the demand of our customers. Even with the procedures and protections we have put in place, a poor harvest could result in loss of sales and damage our business and results of operations. Agricultural products are vulnerable to climate change, crop disease, natural disaster, and pests, which may vary in severity and effect, depending on the stage of production at the time of infection or infestation, the type of treatment applied, and climatic conditions. Unfavorable growing conditions caused by these factors can reduce both crop size and crop quality and, in extreme cases, entire harvests may be lost, which would negatively impact our business and results of operations. Additionally, there could be difficulties with the first crop or harvest in any new facility.

There are many factors that could impact our ability to attract and retain customers, including that we may not be able to develop as many nutraceutical products or functional mushrooms of the consistency or quality that we expect, which could have a negative adverse effect on our business plan and profitability.

Our success depends on our ability to attract and retain customers, but we face, or will face, competition in obtaining customers for our nutraceutical products or functional mushrooms. There are many factors that could impact our ability to attract and retain customers, including our ability to compete based on price, produce high quality or consistent crops, continually produce desirable and effective products that are superior to others in the market, and implement our customer acquisition plan, as well as maintain continued growth in the aggregate number of potential customers. Competition for customers may result in increasing our costs while also lowering the market prices for our products and reducing our profitability. If we are not successful in attracting and retaining customers, we may fail to be competitive or achieve profitability or sustain profitability over time.

19

As a result of changing customer preferences, products may attain financial success for a limited period of time, or none at all. Even if we are successful in introducing new products, a failure to gain consumer acceptance or to update products with compelling attributes could cause a decline in our products’ popularity that could reduce revenues and harm our business, operating results, and financial condition. Failure to introduce new products or product types and to achieve and sustain market acceptance could result in our being unable to meet consumer preferences and generate revenue, which would have a material adverse effect on our profitability and financial results from operations.

We currently have a limited number of contemplated products, and have limited financial and management resources, and, as a result, we may forego or delay our development of planned or other products. Our resource allocation decisions may cause us to fail to capitalize on profitable market opportunities. If we are unsuccessful in developing the contemplated or additional products, our business may be harmed.

Our business relies on the production and distribution of mushroom-related products, and such products may not maintain or grow their market acceptance.

Our business is focused on the production and distribution of mushrooms and related products. If such products do not maintain or grow their market acceptance, it will be difficult for us to achieve profitability. Our revenues are expected to derive almost exclusively from sales of mushroom-based products, and we expect that our mushroom-based products will account for substantially all of our revenue for the foreseeable future. If the mushroom market declines or mushrooms fail to achieve substantially greater market acceptance than they currently enjoy, we may not be able to grow our revenues sufficiently for us to achieve consistent profitability. Even if our products conform to international safety and quality standards, sales could be adversely affected if consumers in target markets lose confidence in the safety, efficacy, and quality of mushrooms. Adverse publicity about mushroom-based products that we sell may discourage consumers from buying products distributed by us.

We may not be successful in developing and commercializing our products, or may not be able to do so at acceptable costs.

If we cannot successfully develop, manufacture, sell, and distribute our products, or if we experience difficulties in the development process, such as capacity constraints, quality control problems, or other disruptions, we may not be able to develop market-ready commercial products at acceptable costs, which would adversely affect our ability to effectively enter the market. A failure by us to achieve a low-cost structure through economies of scale or improvements in cultivation and manufacturing processes would have a material adverse effect on our commercialization plans and our business, prospects, results of operations, and financial condition. If there is a shift in consumer demand, we must meet such demand through new and innovative products or else our business may fail.

A significant failure or deterioration in our quality control systems could have a material adverse effect on our business and operating results.

The quality and safety of our products are critical to the success of our business and operations. As such, it is imperative that our (and our service providers’) quality control systems operate effectively and successfully. Quality control systems can be negatively impacted by the design of the quality control systems, the quality training programs and adherence by employees to quality control guidelines. Although we strive to ensure that all of our service providers have implemented and adhere to high-quality control systems, any significant failure or deterioration of such quality control systems could have a material adverse effect on our business and operating results.

We may experience breaches of security at our facilities or loss as a result of the theft of our products.

If there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we obtain the requisite approvals from all applicable state and federal governmental authorities, including the WDOH and the DEA, then we intend to build out our naturally-derived psychedelic mushroom supply chain in the United States in full compliance with state and federal laws. Given the nature of psilocybin and its lack of legal availability outside of government approved channels, and despite the fact that we would be required to meet or exceed applicable security requirements if we build out our naturally-derived psychedelic mushroom supply chain in the United States, there remains a risk of security breach as well as theft. A security breach at one of our facilities could result in a significant loss of available products, expose us to additional liability under applicable regulations, and to potentially costly litigation or increased expenses relating to the resolution and future prevention of these breaches and may deter potential customers from choosing our products, any of which could have a material adverse effect on our business, financial condition, and results of operations.

20

We are subject to liability arising from any fraudulent or illegal activity by our employees, contractors, and consultants.

We are exposed to the risk that our employees, independent contractors, and consultants may engage in fraudulent or other illegal activity. Misconduct by these parties could include intentional, reckless, or negligent conduct or disclosure of unauthorized activities to us that violate (i) government regulations, (ii) manufacturing standards, (iii) federal, state, or local healthcare fraud and abuse laws and regulations, or (iv) laws that require the true, complete, and accurate reporting of financial information or data. It is not always possible for us to identify and deter misconduct by our employees and other third parties, and the precautions taken by us to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses or in protecting us from governmental investigations or other actions or lawsuits stemming from a failure to be in compliance with such laws or regulations. If any actions are brought against us, including by former employees, independent contractors, and consultants, and we are not successful in defending ourselves or asserting our rights, those actions could have a significant impact on our business, including the imposition of civil, criminal, and administrative penalties, damages, monetary fines, contractual damages, reputational harm, diminished profits and future earnings, and the curtailment of our operations, any of which would have an adverse effect on our business, financial condition, and results from operations.

Our products are produced by third parties at their own manufacturing facilities; a significant disruption at such facilities or to any key production equipment could adversely affect our ability to meet consumer and wholesale demand.

While we grow and harvest functional mushrooms at our facility in Olympia, Washington, all of our products are produced by third parties at their own manufacturing facilities. A significant disruption at such facilities or to any key production equipment, even on a short-term basis, could impair the productions and shipment of products, which could have a material adverse effect on our business, financial position, and results of operations. The manufacturing operations of these third parties are vulnerable to interruption and damage from natural and other types of disasters, including earthquake, fire, floods, volcanic events, draughts, environmental accidents, winter storms, power loss, disease outbreaks or pandemics such as the recent COVID-19 pandemic, communications failures, and similar events. If any disaster were to occur at the facilities of these third parties, our ability to operate our business would be seriously impaired.

Regulations and evolving legislation governing issues involving climate change and sustainability could result in increased operating costs, which could have a material adverse effect on our business, and the potential physical impacts of climate change on our operations are highly uncertain.

A number of international, federal, state, or local governments or governmental bodies have introduced or are contemplating regulatory changes in response to the potential impact of climate change. For example, the U.S. Environmental Protection Agency (“EPA”) issued a notice of finding and determination that emissions of carbon dioxide, methane, and other greenhouse gases (“GHGs”) present an endangerment to human health and the environment, which allowed the EPA to begin regulating emissions of GHGs under existing provisions of the Clean Air Act. Legislation and increased regulation regarding climate change could impose significant costs on us and our suppliers, including costs related to increased energy requirements, capital equipment, environmental monitoring, permitting, reporting, and other costs to comply with such regulations. Any adopted future climate change regulations could also negatively impact our ability to compete with companies situated in areas and countries not subject to such limitations. Given the political significance, regulatory or compliance obligations, and uncertainty around the impact of climate change and how it should be addressed, we cannot predict how legislation and regulation will affect our financial condition, operating performance, and ability to compete. The potential physical impacts of climate change on our operations are highly uncertain, and would be particular to the geographic circumstances in areas in which we operate. These impacts may adversely impact the cost, production, and financial performance of our operations.

21

We may encounter disruptions or delays in the expansion and construction of our facilities, which may impair our ability to grow and produce our own mushroom products for distribution.

Our production capacity is growing, and currently consists of 15,000 sq. ft., including three fully constructed functional mushroom greenhouses, totaling 12,000 sq. ft., with plans to acquire or lease additional growing space. Chris L. Claussen, our Chief Innovation Officer, submitted a controlled substance researcher application with the WDOH in order for FP, Inc. to conduct psilocybin research legally under state and federal law, with such application listing FP, Inc.’s Olympia, Washington facility as the research lab location. The application was submitted on July 12, 2021, and remains under review. If the WDOH registration is approved, then we intend to apply for a DEA license to make our facility in Olympia, Washington a licensed psilocybin facility. In addition, we intend to expand operations into a larger facility to increase our functional mushroom production capacity in the future. Commercial construction and expansion of operations involves a number of risks and uncertainties, certain of which are outside our control. Any disruption or delay in the construction of facilities, expansion of operations, or in obtaining either a WDOH or DEA license to legally grow psilocybin mushrooms in the United States may impair or impede our ability to grow functional or psychedelic mushrooms and manufacture products for distribution.

We are subject to several risks in connection with the construction of our facilities, including the availability and performance of engineers and contractors, suppliers, and consultants, the availability of funding, and the receipt of required governmental approvals, licenses, and permits, and the projected timeline for construction, which could change due to delays. Any delay in the performance of any one or more of the contractors, suppliers, consultants, or other persons on whom we are dependent in connection with our construction activities, a delay in or failure to receive the required governmental approvals, licenses, and permits in a timely manner or on reasonable terms, or a delay in or failure in connection with the completion and successful operation of the operational elements in connection with construction could delay or prevent the construction of the additional phases of the facilities as planned. There can be no assurance that current or future construction plans implemented by us will be successfully completed on time, within budget and without design defect, that the necessary personnel and equipment will be available in a timely manner or on reasonable terms to complete construction projects successfully, that we will be able to obtain all necessary governmental approvals, licenses, and permits, or that the completion of the construction, the start-up costs, and the ongoing operating costs will not be significantly higher than anticipated by us. Any of the foregoing factors could adversely impact our operations and financial condition.

We are subject to risks associated with leasing and occupying real property and the inability to extend, renew, or continue to lease real property in key locations could harm our business, profitability, and results of operations.

The lease for our facility in Olympia, Washington is set to expire in 2025, subject to a two-year renewal option (see “Properties” on page 69 of this prospectus). Accordingly, we are subject to the risks associated with leasing, occupying, and making tenant improvements to real property, including, among others, changes in availability of, and contractual terms for, leasable manufacturing space, as well as potential liability for environmental conditions or various other claims. If demand increases, we may also need to expand into other facilities in order to increase our production capabilities. When our lease expires or when we need to expand into other facilities, we may be unable to negotiate leases or renewals, either on commercially acceptable terms or at all, which could impact our ability to manufacture our products or deliver them to the market, which in turn could harm our business, profitability, and results of operations.

We may be vulnerable to rising energy costs.

Psilocybin and functional mushroom growing operations consume considerable energy, which makes us vulnerable to rising energy costs and/or the availability of stable energy sources. Accordingly, rising or volatile energy costs or the inability to access stable energy sources may have a material adverse effect on our business, financial condition, and results of operations.

Environmental risks may adversely affect our business.

Cultivation and production activities may be subject to licensing requirements relating to environment regulation. Environmental legislation is evolving in such a manner that may result in stricter standards and enforcement, larger fines and liability, and potentially increased capital expenditures and operating costs. The application of environmental laws to our business may cause us to increase the costs of our cultivation, production, or scientific activities. Unanticipated licensing delays can result in significant delays and cost overruns in our business and could affect our financial condition and results of operations. There can be no assurance that these delays will not occur.

22

We rely on a third-party co-packer for certain product components and other third parties for the packaging material for our products, and there is no guarantee that the relationships with the co-packers or packaging companies will continue or that the co-packer or packaging companies will deliver goods on a timely basis.

We rely on a third-party co-packer to provide microbeads utilized in our products, and other third-party companies for the packaging materials for our products. While we have identified other potential suppliers who can supply similar microbeads, we do not currently own and do not plan to develop in-house manufacturing capabilities for these microbeads, and will be reliant on third-party suppliers for microbeads now and going forward. We also do not manufacture our packaging materials for our products and are reliant on third-party packaging companies for these materials. While other packaging companies exist which could provide these packaging materials for our products, locating and changing suppliers could result in product delivery delays to potential customers, which could materially harm our business and results of operations. This co-packer and these packaging companies are third parties over which we have little or no control, and with which we do not have any long-term agreements. The failure of the co-packer to continue to provide the microbeads or to deliver products on a timely basis, or the failure of the third-party packaging companies to provide packaging materials, or the termination of our relationship with any of these parties could have a material adverse effect on our business, financial condition, and operating results.

We are dependent on third parties to supply materials used in our products and packaging, and any interruption or failure by these suppliers or other disruptions to our supply chain may have a material adverse effect on our business, financial condition, results of operations, and cash flows.

Our ability to make, move, and sell our products is critical to our success. Damage or disruption to our supply chain, including third-party manufacturing, assembly, or transportation capabilities, due to weather, including any potential effects of climate change, natural disaster, fire or explosion, terrorism, pandemics (such as the recent COVID-19 pandemic), strikes, government action, or other reasons beyond our control or the control of our suppliers and business partners, could impair our ability to manufacture or sell our products. Further, we rely on third parties to supply materials used in our products and packaging. Any interruption or failure by our suppliers or other partners to meet their obligations on schedule or in accordance with our expectations, which, in each case, could be the result of one or many factors outside of our control, could delay or prevent the manufacture or commercialization of our products, disrupt our operations, or cause reputational harm to our company, any or all of which could have a material adverse effect on our business, financial condition, results of operations, and cash flows. The global supply chain issues caused by the recent COVID-19 pandemic impacted our ability to obtain packaging materials for our products, and we were forced to delay the launch of our consumer packaged goods because of a delay in our initial orders for packaging samples from suppliers in China. Failure to take adequate steps to mitigate the likelihood or potential impact of such events, or to effectively manage such events when they occur, could adversely affect our business or financial results.

The ongoing labor shortage, or an increase in its severity, may result in delays in receiving materials from our third-party suppliers or an increase in the cost of sourcing materials and producing products.

We rely on third-party suppliers for materials used in our products and packaging. Our third-party suppliers may face difficulties in meeting their obligations on schedule or in accordance with our expectations if they are unable to find sufficient workers as a result of the ongoing labor shortage, caused in part by the recent COVID-19 pandemic, or an increase in the severity of such labor shortage, which could adversely affect our business or financial results. In addition, we rely in part on our ability to find, hire, and retain capable personnel who can successfully operate our facility in Olympia, Washington, and who can understand, explain, market, and sell our products. The ongoing labor shortage, or an increase in its severity, could result in increased costs related to finding, hiring, and retaining capable personnel, which could adversely affect our business or financial results.

23

Our financial success will depend on our ability to successfully predict changes in consumer preferences and develop successful new products and marketing strategies in response.

Our ability to earn revenues is substantially dependent on the success of our products, which depends upon, among other matters, pronounced and rapidly changing public tastes, and other factors which are difficult to predict and over which we have little, if any, control. Consumer trends change based on many factors, including but not limited to, nutritional values, consumer preferences, and general economic conditions. Additionally, there is a growing movement among some consumers to buy local products in an attempt to reduce the carbon footprint associated with transporting products from longer distances, and this could result in a decrease in the demand for our nutraceuticals or future mushroom-based products. A shift in consumer demand away from our nutraceuticals or proposed products or our failure to expand our current market position will harm our business and results of operations.

We will be dependent on the popularity and consumer acceptance of our brand.

There is no assurance that we will be able to achieve brand awareness in any of our target regions. In addition, we must develop successful marketing, promotional, and sales programs in order to sell our products. If we are not able to develop successful marketing, promotional, and sales programs, then such failure will have a material adverse effect on our business, financial condition, and operating results.

We may face unfavorable publicity or consumer perception.

We may depend significantly on consumer perception regarding the safety and quality of our products. Consumer perception of products can be significantly influenced by adverse publicity in the form of published scientific research, media attention, social media, or other publicity, whether or not accurate, that associates consumption of our products or any other similar products with illness or other adverse effects, or questions the benefits of our or similar products or that claims that any such products are ineffective. A new product may initially be received favorably, resulting in high sales of that product, but that sales level may not be sustainable as consumer preferences change. Future scientific research or publicity could be unfavorable to our industry or any of our particular products and may not be consistent with earlier favorable research or publicity. Unfavorable research or publicity could have a material adverse effect on our ability to generate sales.

We are highly dependent upon consumer perception of mushrooms and mushroom-based products. The public may associate our fully legal functional mushroom and nutraceutical products with illegal psychedelic mushrooms, which are prohibited substances in the United States, except under research and related exceptions pursuant to DEA and state registrations in place. Our revenues may be negatively impacted due to the fact the market does not fully accept mushrooms as a food or nutritional product.

If the reputation of our brand erodes significantly, it could have a material impact on our results of operations.

In certain circumstances, our reputation could be damaged as a result of the actual or perceived occurrence of any number of events, including negative publicity, whether true or not. Widespread adoption of social media and other web-based tools to generate, publish, and discuss user-generated content and to connect with other users has made it increasingly easy for individuals and groups to communicate and share opinions and views regarding us, our products and our activities, whether true or not. Although we believe that we operate in a manner that is respectful to all stakeholders and take care in protecting our image and reputation, we do not ultimately have direct control over how we are perceived by others. Reputation loss may result in decreased investor confidence, increased challenges in developing and maintaining community relations, and impede our ability to advance our projects, thereby having a material adverse impact on financial performance, financial condition, cash flows, and growth prospects.

We may not be successful in developing a marketing and sales force for the commercialization of our products, or we may incur substantial expenses to do so.

In order to commercialize and market our products, we must either acquire or develop an internal marketing and sales force with technical expertise and with supporting distribution capabilities, or arrange for third parties to perform these services. The acquisition or development of a sales and distribution infrastructure would require substantial resources, which may divert the attention of our management and key personnel, and defer our product development and deployment efforts. To the extent that we enter into marketing and sales arrangements with other companies, our revenues will depend on the efforts of others. These efforts may not be successful. If we fail to develop substantial sales, marketing, and distribution channels, or to enter into arrangements with third parties for those purposes, we will experience delays in product sales and incur increased costs.

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We may be unable to adequately protect our brand and our other intellectual property rights.

Our ability to compete effectively will depend, in part, on our ability to maintain the proprietary nature of our brand and product, and processes and methodologies used to create our products. We have adopted procedures to protect our intellectual property and maintain the secrecy of our confidential business information and trade secrets. However, there can be no assurance that such procedures will afford complete protection of such intellectual property, confidential business information, and trade secrets. There can be no assurance that our competitors will not independently develop technologies that are substantially equivalent or superior to our technology. We have trademark applications for our key names and phrases, and two pending patents for innovations related to our products. We have only filed provisional patent applications, which help protect inventions for a twelve-month period while a formal patent application is being filed. The patent process can take up to twenty-four months or longer to complete and can be challenged during the process. At this time, we cannot state whether the patent applications will be approved, refused, and/or ultimately registered. In addition, our trademark, patent, and other intellectual property rights and related registrations may be challenged in the future and could be cancelled or narrowed.

Failure to protect our trademark rights could prevent us in the future from challenging third parties who use names and logos similar to our trademarks, which may in turn cause consumer confusion or negatively affect consumers’ perception of our brand and products. Our patent applications may not contain claims sufficiently broad to protect us against third parties with similar technologies or products or provide us with any competitive advantage. In addition, if we do not keep our trade secrets confidential, others may produce products with our recipes or formulations. Intellectual property disputes and proceedings may be protracted with no certainty of success, and an adverse outcome could subject us to liabilities, force us to cease use of certain trademarks or other intellectual property, or force us to enter into licenses with others. Any one of these occurrences may have a material adverse effect on our business, results of operations, and financial condition.

If we are unable to protect the confidentiality of our trade secrets, the value of our proprietary processes could be materially adversely affected and our business would be harmed.

We consider proprietary trade secrets, confidential know-how, and unpatented know-how to be important to our business. We may rely on trade secrets and confidential know-how to protect our technology, especially where patent protection is believed by us to be of limited value. However, trade secrets and confidential know-how are difficult to protect. We seek to protect our confidential proprietary information, in part, by entering into confidentiality agreements with parties who have access to them, including our employees. However, we cannot be certain that such agreements have been entered into with all relevant parties that may have or have had access to our trade secrets.

We may not be able to enforce our intellectual property rights throughout the world.

The laws of some foreign countries do not protect intellectual property rights to the same extent as the laws of the United States. Many companies have encountered significant problems in protecting and defending intellectual property rights in certain foreign jurisdictions. This could make it difficult for us to stop the infringement or misappropriation of our intellectual property rights. The loss of the First Person brand or logo or other registered or common law trade names or a diminution in the perceived quality of products or services associated with our Company would harm our business. Our efforts to protect our intellectual property rights in such countries may be inadequate. In addition, changes in the law and legal decisions by courts in the United States and foreign countries may affect our ability to obtain adequate protection for our technology and the enforcement of our intellectual property rights.

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Third parties may assert that we, our employees, consultants, or independent contractors have wrongfully used or disclosed confidential information or misappropriated trade secrets.

Although we try to ensure that our employees, consultants, and independent contractors do not use the proprietary information or know-how of others in their work for us, we may be subject to claims that we or our employees, consultants, or independent contractors have inadvertently or otherwise used or disclosed intellectual property, including trade secrets or other proprietary information, of a former employer or other third parties. Litigation may be necessary to defend against these claims. If we fail in defending any such claims, in addition to paying monetary damages, we may lose valuable intellectual property rights or personnel. Even if we are successful in defending against such claims, litigation could result in substantial costs and be a distraction to management and other employees.

Our internal computer systems may fail or suffer security breaches, which could result in a significant disruption of our product development programs and our ability to operate our business effectively.

Our internal computer systems may fail or suffer damage due to computer viruses, unauthorized access, natural disasters, terrorism, war, or telecommunication and electrical failures. Cyber-attacks are increasing in their frequency, sophistication, and intensity, and have become increasingly difficult to detect. Cyber-attacks could include the deployment of harmful malware, ransomware, denial-of-service attacks, social engineering, and other means to affect service reliability and threaten the confidentiality, integrity, and availability of information. Cyber-attacks also could include phishing attempts or e-mail fraud to cause payments or information to be transmitted to an unintended recipient.

While we have not experienced any significant system failure, accident, or security breach to date, if such an event were to occur and cause interruptions in our operations, it could result in a disruption of our development programs and our business operations, whether due to a loss of our trade secrets or other proprietary information or other similar disruptions. Additionally, any such event that leads to unauthorized access, use, or disclosure of personal information, including personal information regarding our employees, could harm our reputation, cause us not to comply with federal and/or state breach notification laws and foreign law equivalents, and otherwise subject us to liability under laws and regulations that protect the privacy and security of personal information. Security breaches and other inappropriate access can be difficult to detect, and any delay in identifying them may lead to increased harm of the type described above. All such events could have a material adverse effect on our business, financial condition, and results of operations.

Our ability to produce and sell our products is dependent on compliance with regulatory and other requirements.

The processing, manufacturing, packaging, labeling, advertising, and distribution of our planned products is subject to regulation by one or more governmental authorities, and various agencies of the federal, state, and localities in which our products are sold. These governmental authorities may attempt to regulate any of our products that fall within their jurisdiction. Our functional mushrooms that we supply to other businesses will be subject to regulation by the USDA and the FDA. Our nutraceutical products will be subject to regulation by the USDA, the FDA, and the FTC. Our intended production of, and research and development involving, psilocybin in the United States will require prior approval from the WDOH and the DEA. We are also required to comply with the regulations and policies promulgated by the EPA and corresponding state agencies.

Such governmental authorities may determine that a particular product or product ingredient presents an unacceptable health risk and may determine that a particular statement of nutritional support that we want to use is an unacceptable claim. Such a determination would prevent us from marketing particular products or using certain statements of nutritional support on our products. We also may be unable to disseminate third-party literature that supports our products if the third-party literature fails to satisfy certain requirements.

In addition, governmental authorities could require us to remove a particular product from the market. Any recall or removal would result in additional costs to us, including lost revenues from any products that we are required to remove from the market, any of which could be material. Any such product recalls or removals could lead to liability, substantial costs, and reduced growth prospects, all of which could be material.

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If we are not able to comply with all environmental, health, and safety regulations applicable to our operations and industry, we may be held liable for any breaches of those regulations.

Our operations are subject to a variety of environmental, health, and safety laws and regulations in each of the jurisdictions in which we operate. These laws and regulations govern, among other things, air emissions, wastewater discharges, the handling and disposal of hazardous substances and wastes, soil and groundwater contamination, and employee health and safety. We are also subject to laws and regulations governing the handling and disposal of noncompliant products and waste, the handling of regulated material that is included in our products and the disposal of products at the end of their useful life. These laws and regulations have increasingly become more stringent, and we may incur additional expenses to ensure compliance with existing or new requirements in the future. Any failure by us to comply with environmental, health, and safety requirements could result in the limitation or suspension of our operations. We also could incur monetary fines, civil or criminal sanctions, third-party claims or cleanup, or other costs as a result of violations of or liabilities under such requirements. In addition, compliance with environmental, health, and safety requirements could restrict our ability to expand our facilities or require us to acquire costly pollution control equipment or incur other significant expenses.

Our reputation could suffer from real or perceived issues involving the labeling or marketing of our products.

Products that we sell carry claims as to their origin, ingredients or health benefits, including, by way of example, the use of the term “natural”, “functional”, or “healthy”, or similar synonyms or implied statements relating to such benefits. Although each of the FDA and the USDA has issued statements regarding the appropriate use of the word “natural,” there is no single, U.S.-government-regulated definition of the term “natural” for use in the food industry, which is true for many other adjectives common in the better-for-you and functionally-focused food industry. The resulting uncertainty has led to consumer confusion, distrust, and legal challenges. Plaintiffs have commenced legal actions against several food companies that market “natural” products, asserting false, misleading and deceptive advertising and labeling claims, including claims related to genetically modified ingredients. In limited circumstances, the FDA has taken regulatory action against products labeled “natural” but that nonetheless contain synthetic ingredients or components. Should we become subject to similar claims, consumers may avoid purchasing products from us or seek alternatives, even if the basis for the claim is unfounded. Adverse publicity about these matters may discourage consumers from buying our products. The cost of defending against any such claims could be significant. Any loss of confidence on the part of consumers in the truthfulness of our labeling or ingredient claims would be difficult and costly to overcome and may significantly reduce our brand value. Any of these events could adversely affect our reputation and brand and decrease our sales, which would have a material adverse effect on our business, financial condition, and results of operations.

The laws, regulations, and guidelines generally applicable to our business or products, or to research involving psilocybin, in the United States may change in ways that impact our ability to continue our business as currently conducted or proposed to be conducted.

From time to time, U.S. federal, state, or local legislative and governmental authorities may impose additional or more stringent laws or regulations that could apply to us, our business, and products, repeal laws or regulations that we consider favorable to us, or impose more stringent interpretations of current laws or regulations. We are not able to predict the nature of such future laws, regulations, repeals, or interpretations or to predict the effect that additional governmental regulation, when and if it occurs, would have on our business in the future. Those developments could prohibit the sale and marketing of ingredients and products or require reformulation of products to meet new standards, recalls, or discontinuance of products (including products that we sell). Further, we may be subject to requirements for reformulation, labeling, additional record-keeping requirements, increased documentation of the properties of certain products, additional or different labeling, additional scientific substantiation, quality control requirements, adverse event reporting, or other requirements. Any developments of this nature could increase our costs significantly and could have a material adverse effect on our business, financial condition, and results of operations.

Psilocybin is currently classified as a Schedule I controlled substance under the CSA. If psilocybin and/or psilocin, other than the FDA-approved formulation, is rescheduled under the CSA as a Schedule II or lower controlled substance (i.e., Schedule III, IV, or V), the ability to conduct research involving psilocybin and psilocin would most likely be improved. However, rescheduling psilocybin and psilocin may materially alter enforcement policies across many federal agencies, primarily the FDA and DEA. The FDA is responsible for ensuring public health and safety through regulation of food, drugs, supplements, and cosmetics, among other products, through its enforcement authority pursuant to the FDCA. The FDA’s responsibilities include regulating the ingredients as well as the marketing and labeling of drugs sold in interstate commerce. Because it is currently illegal under federal law to produce and sell psilocybin and psilocin, and because there are no federally recognized medical uses, the FDA has historically deferred enforcement related to psilocybin and psilocin to the DEA. If psilocybin and psilocin were to be rescheduled to a federally controlled, yet legal, substance, the FDA would likely play a more active regulatory role. The DEA would continue to be active in regulating manufacturing, distribution, and dispensing of such substances. There is no guarantee that our future intended psilocybin cultivation and research would be able to meet any new FDA regulations or interpretations of the law, which could inhibit our business prospects even in the case that the federal government were to legalize psilocybin. The potential for multi-agency enforcement post-rescheduling could threaten or have a materially adverse effect on our business.

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The failure to comply with any of the above applicable regulations, regulatory authorities, or other requirements may result in civil or criminal penalties, recall or seizure of products, injunctive relief including partial or total suspension of production, or withdrawal of a product from the market.

We may encounter difficulties in accessing banking and other financial services due to our involvement in the psilocybin industry.

We plan to conduct psychedelic mushroom product research and development in Jamaica through TruMed. In addition, if there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we receive the necessary approvals from the WDOH and the DEA in order to legally produce and research psilocybin in the State of Washington in the United States, then we intend to expand domestic U.S. production to include psychedelic mushrooms and conduct research and development. Due to the present state of the laws and regulations governing financial institutions in the United States, banks often refuse to provide banking services to businesses involved in the psilocybin industry. Consequently, businesses involved in the psilocybin industry often have difficulty accessing the U.S. banking system and traditional financing sources. While we currently have a bank account with a U.S. bank, the inability to open bank accounts with certain institutions may make it difficult to operate our business and could make our cash holdings more vulnerable. In addition to the foregoing, banks may refuse to process debit card payments and credit card companies may refuse to process credit card payments due to our planned involvement in the psilocybin industry through TruMed and, if there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we receive the necessary approvals from the WDOH and the DEA, in the United States. If we are unable or limited in our ability to open or maintain bank accounts, obtain other banking services, or accept credit card and debit card payments, it may be difficult for us to operate and conduct our business as planned.

A health or safety issue resulting in litigation against us could harm our business.

Health and safety issues related to our products may arise that could lead to litigation or other action against us or to regulation of certain of our product components. We may be required to modify our recipes or packaging and may not be able to do so. In extreme circumstances, we could be required to pay damages that may reduce our profitability and adversely affect our financial condition. Even if these concerns prove to be baseless, the resulting negative publicity could affect our ability to market certain of our products and, in turn, could harm our business and results from operations.

Contamination of our products intended for human consumption could result in a product recall or harm our reputation.

The sale of products for human consumption involves inherent risks. We could decide to, or be required to, recall products due to suspected or confirmed contamination or product tampering. A product recall could lead to litigation and adversely affect our product sales, financial condition, and results of operation as well as our general reputation in the industry.

Our products may be subject to product recalls, withdrawals, or seizures.

Manufacturers, producers, and distributors of products are sometimes subject to the recall or return of their products for a variety of reasons, including product defects, such as contamination, unintended harmful side effects or interactions with other substances, packaging safety, and inadequate or inaccurate labelling disclosure. If any of our products are recalled due to an alleged product defect or for any other reason, we could be required to incur the unexpected expense of the recall and any legal proceedings that might arise in connection with the recall. We may lose a significant amount of sales and may not be able to replace those sales at an acceptable level or at all. In addition, a product recall may require significant management attention.

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Although we have detailed procedures in place for testing our products, there can be no assurance that any quality, potency or contamination problems will be detected in time to avoid unforeseen product recalls, regulatory action or lawsuits. Additionally, if we are subject to recall, our public image could be harmed. A recall for any of the foregoing reasons could lead to decreased demand for our products and could have a material adverse effect on our results of operations and financial condition. Additionally, product recalls may lead to increased scrutiny of our operations by regulatory agencies, requiring further management attention, potential loss of applicable permits or licenses, and potential legal fees and other expenses, which could materially and adversely affect our business, financial condition and results of operations.

Because psilocybin is a controlled substance, our products, equipment, and revenues could be subject to civil or criminal asset forfeiture if we fail to comply with the laws and regulations applicable to psilocybin.

Any assets owned by participants in the psilocybin industry used in the course of conducting such business, or that are the proceeds of such business, could be subject to seizure by law enforcement and subsequent civil asset forfeiture because of the illegality of the psilocybin industry under U.S. federal law. Even if the owner of the property is never charged with a crime, the property in question could still be seized and subjected to an administrative proceeding by which, with minimal due process, it could be forfeited.

We face inherent and significant risks related to product liability and similar claims.

We may be subject to various product liability claims, including, among others, that our products caused injury or illness, include inadequate instructions for use or include inadequate warnings concerning possible side effects or interactions with other substances. A product liability claim or regulatory action against us could result in increased costs, could adversely affect our reputation with our clients and consumers generally, and could have a material adverse effect on our business, financial condition and results of operations. There can be no assurances that we will be able to obtain or maintain product liability insurance on acceptable terms or with adequate coverage against potential liabilities. Such insurance is expensive and may not be available in the future on acceptable terms, or at all. The inability to obtain sufficient insurance coverage on reasonable terms or to otherwise protect against potential product liability claims could prevent or inhibit the commercialization of our potential products.

We may be required to pay for losses or injuries purportedly or actually caused by our products. Although we have not yet been subject to any product liability claims, we may be subject to such claims in the future, and that liability may exceed the funds available to us.

We are currently involved in, and may be in the future be involved in, litigation which could result in substantial costs and be a distraction to management and other employees.

We are currently involved in, and may in the future be involved in, litigation relating to claims arising out of our operations in the normal course of business. On June 26, 2023, the TruMed Sellers (Pratik Ruparell and Gaston Wagstaff) filed a statement of claim against First Person Ltd. and TruMed Limited in the Court of King’s Bench of Alberta. See “Business – Legal Proceedings” on page 71 of this prospectus for additional information. TruMed does not have any employees or currently active business operations and the statement of claim has not had any material impact on TruMed’s business, including TruMed’s research and development operations in Jamaica. Based on our initial internal review, we believe the claims lack merit and we intend to vigorously defend same. However, the outcomes of legal proceedings and claims are inherently unpredictable and subject to significant judgment to determine the likelihood and amount of loss related to such matters. In the event we are not successful in defending against or settling the statement of claim filed by the TruMed Sellers, or other disputes or litigation that we may be involved in from time to time, then we may be required to pay damages, or other fees as a court may order, which could have a material adverse effect on the results of our operations or financial position. Even if we are successful in defending against or settling the statement of claim filed by the TruMed Sellers, and other disputes or litigation that we may be involved in from time to time, litigation could result in substantial costs and be a distraction to management and other employees.

We are highly dependent on our management team, and the loss of any key member of this team may prevent us from implementing our business plan in a timely manner, or at all.

Our success is largely dependent on the performance of our directors and officers. There is no assurance we can maintain the services of our directors, officers, or other qualified personnel required to operate our business. In addition, our ability to retain key personnel may be challenged as a result of potential COVID-19 outbreaks or quarantines. The loss of one more of these persons could seriously harm our business and may prevent us from implementing our business plan in a timely manner, or at all.

Conflicts of interest may arise between us and our directors and officers as a result of other business activities undertaken by such individuals.

Except as otherwise restricted in an applicable noncompetition agreement, certain of our directors and officers may become associated with other companies in the same or related industries, which may give rise to conflicts of interest. Directors who have a material interest in any person who is a party to a material contract or a proposed material contract with us or our related parties are required, subject to certain exceptions, to disclose that interest and generally abstain from voting on any resolution to approve the contract. In addition, our directors and officers are required to act honestly and in good faith with a view toward our best interests.

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We must attract and maintain key personnel or our business could suffer material harm.

The loss of certain key non-executive employees could have a material adverse effect on our business and results of operations. In addition, an inability to hire, or the increased costs of new personnel, including members of executive management, could have a material adverse effect on our business and operating results. The expansion of marketing and sales of our products will require us to find, hire, and retain additional capable personnel who can understand, explain, market and sell our products. There is intense competition for capable personnel in all of these areas and we may not be successful in attracting, training, integrating, motivating, or retaining new personnel, vendors, or subcontractors for these required functions. New employees often require significant training and, in many cases, take significant time before they achieve full productivity. As a result, we may incur significant costs to attract and retain contractors, including significant expenditures related to salaries and benefits and compensation expenses related to equity awards, and may lose new employees to our competitors or other companies before we realize the benefit of the resources we expend in recruiting and training them.

We may be unable to manage our growth effectively, which could make it difficult to execute our business strategy.

In order to manage growth and change in strategy effectively, we must: (i) maintain adequate systems to meet future customer demands; (ii) expand sales and marketing, distribution capabilities, and administrative functions; (iii) expand the skills and capabilities of our current management team; and (iv) attract and retain qualified employees. While we intend to focus on managing costs and expenses over the long term, we expect to expend substantial resources to support our growth and may have additional unexpected costs. We may not be able to expand quickly enough to exploit potential market opportunities. If we are unable to manage our growth effectively, we may be unable to execute our business plan, which could have a material adverse effect on our business results of operations.

Adverse U.S. or international economic conditions, including periods of inflation, could negatively affect our business, financial condition, and results of operations.

Consumer spending on nutraceutical products is influenced by general economic conditions and the availability of discretionary income. Adverse U.S. or international economic conditions or periods of inflation or high energy prices may contribute to higher unemployment levels, decreased consumer spending, reduced credit availability, and declining consumer confidence and demand, each of which poses a risk to our business. A decrease in consumer spending or in retailer and consumer confidence and demand for our products could have a significant negative impact on our net sales and profitability, including our operating margins. These economic conditions could cause potential customers or suppliers to experience cash flow or credit problems and impair their financial condition, which could disrupt our business and adversely affect product orders, payment patterns, and default rates and increase our bad debt expense.

The recent COVID-19 pandemic or future pandemics could have a material adverse impact on our business, results of operations, and financial condition.

The recent outbreak of COVID-19, and the subsequent emergence of variant strains of the virus, resulted in governments worldwide enacting emergency measures to combat the spread of the virus. These measures, which included the implementation of travel bans, self-imposed quarantine periods, and social distancing, caused material disruption to businesses globally resulting in an economic slowdown. Global equity markets experienced significant volatility and weakness. Governments and central banks reacted with significant monetary and fiscal interventions designed to stabilize economic conditions. The efficacy of the government and central bank interventions is unknown at this time. It is not possible to reliably estimate the length and severity of these developments and the impact on our financial results and condition in future periods. However, the lasting effects of the recent COVID-19 pandemic, or government responses to future pandemics, could: interrupt our operations; increase operating expenses; cause delayed performance of contractual obligations; cause packaging restrictions on shipping; impair our ability to raise funds, depending on the recent COVID-19 pandemic’s effect on capital markets; adversely affect our supply partners, contractors, customers, and/or transportation carriers; and cause changes in our regulatory framework, which may increase competition for the mushrooms and packaging we use or affect our ability to deliver our products to customers—each of which could materially and adversely affect our business and financial condition.

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The measures taken by the governments of countries to contain the spread of COVID-19, or measures that governments may take in responses to future pandemics, could disrupt our plan of distribution and use of available funds and the timelines, business objectives, or disclosed milestones related thereto, and thus, adversely impact our business, financial condition, results of operations, and prospects. In addition, there can be no assurance that we will not lose members of our workforce or consultants or see our workforce person-hours reduced, or incur increased medical costs as a result of these health risks. It is difficult to predict the impact that any pandemic, including any extension of the COVID-19 pandemic, may have on our business in the future, or the price of and demand for our products. It is possible that the measures taken in response to the recent COVID-19 pandemic, or any future pandemic, could have a material adverse effect on our business, financial condition, results of operations, and prospects, as well as the market for our Common Shares and/or our ability to obtain financing.

Current uncertainty in global economic conditions, including, the Russia-Ukraine conflict and inflation, could adversely affect our revenue and business.

Global inflation increased during 2022, and inflationary pressures have been exacerbated by the Russia-Ukraine conflict and other geopolitical tensions, as well as the related international response. The pressures include increases in the price for goods and services and increased global supply chain disruptions, which have resulted in, and may continue to result in, shortages in materials and services and related uncertainties. Such shortages have resulted in, and may continue to result in, cost increases for labor, fuel, materials, and services, and could continue to cause costs to increase, and also result in the scarcity of certain materials. We cannot predict any future trends in the rate of inflation or other negative economic factors or associated increases in our operating costs and how that may impact our business. To the extent we are unable to recover higher operating costs resulting from inflation or otherwise mitigate the impact of such costs on our business, our revenues and gross profit could decrease, and our financial condition and results of operations could be adversely affected. Interest rate increases may raise our cost of goods sold and negatively impact our ability to obtain debt financing, which in turn may negatively impact our ability to acquire new machinery and equipment. To date, increased borrowing costs have not impacted our ability to make timely payments on existing debt obligations, but interest rate increases may ultimately have such impact. Supply chain disruptions could represent a challenge for us, which may have a material adverse effect on our operations.

Risks Related to Our Common Shares

Additional issuances of Common Shares or issuances of securities convertible into or exercisable for Common Shares may result in further dilution.

In order to finance future operations, we may raise additional funds through the issuance of Common Shares or other securities convertible into or exercisable for Common Shares. We cannot predict the size of future issuances of Common Shares or other securities convertible into or exercisable for Common Shares or the effect, if any, that future issuances will have on the market price of the Common Shares. Any transaction involving the issue of previously unissued Common Shares, or securities convertible into or exercisable for Common Shares, would result in dilution, which may be substantial, to existing holders of Common Shares.

The market price for our Common Shares may be volatile, which may affect the price at which you could sell our Common Shares.

Securities of small-cap companies have experienced substantial volatility in the past, often based on factors unrelated to the companies’ financial performance or prospects. These factors include macroeconomic developments in North America and globally and market perceptions of the attractiveness of particular industries. Factors unrelated to our performance that may affect the price of our Common Shares include, but are not limited to:

● the extent of analytical coverage available to investors concerning our business may be limited if investment banks with research capabilities do not cover our Common Shares;

● lessening in trading volume and general market interest in our Common Shares may affect an investor’s ability to trade significant numbers of our Common Shares; the size of our public float may limit the ability of some institutions to invest in our Common Shares; and

● a substantial decline in the price of our Common Shares that persists for a significant period of time could cause our Common Shares to be delisted from The Nasdaq Capital Market, further reducing market liquidity.

The market price of our Common Shares at any given time may not accurately reflect our long-term value due to the impacts of events involving one or more of these risks. In addition, securities class action litigation often has been brought against companies following periods of volatility in the market price of their securities. We may in the future be the target of similar litigation. Securities litigation could result in substantial costs and damages and divert management’s attention and resources. The market price of our Common Shares is affected by many other variables that are not directly related to our success and are, therefore, not within our control. These include other developments that affect the breadth of the public market for our Common Shares and the attractiveness of alternative investments. The effect of these and other factors on the market price of our Common Shares is expected to make our Common Share price volatile in the future, which may result in losses to investors.

The offering price of the Primary Offering and the resale offering could differ.

The offering price of our Common Shares in the Primary Offering has been determined by negotiations between us and the underwriter. The selling shareholders may sell the selling shareholder shares at prevailing market prices or privately negotiated prices after close of the Primary Offering and listing of the Common Shares on The Nasdaq Capital Market. Therefore, the offering prices of the Primary Offering and resale offering could differ. As a result, purchasers in the resale offering could pay more or less than the offering price in the Primary Offering.

Sales of substantial amounts of our Common Shares by our existing shareholders in the public market place may have an adverse effect on the market price of our Common Shares.

Sales of a large number of our Common Shares in the public markets, or the potential for such sales, could decrease the trading price of our Common Shares and could impair our ability to raise capital through future sales of our Common Shares. Upon completion of this offering, we will have 10,002,033 Common Shares outstanding, based on 7,062,178 Common Shares outstanding as of June 30, 2023, assuming all outstanding Series 1 Shares are converted into 750,679 Common Shares immediately prior to the closing of the Primary Offering. Any holder of Series 1 Shares may, at any time, elect to convert all or any portion of the outstanding Series 1 Shares held by such holder into Common Shares. The Series 1 Shares will automatically convert into Common Shares on the date that is 12 months after the closing of the Primary Offering. The number of Common Shares issuable upon conversion of the Series 1 Shares is calculated as of the date of this prospectus as follows: (i) with respect to the 1,748,970 Series 1 Shares issued on January 3, 2023, January 9, 2023, and February 6, 2023, (a) the aggregate number of Series 1 Shares outstanding, divided by (b) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus; and (ii) with respect to the 1,589,130 Series 1 Shares issued on March 31, 2023, and September 7, 2023 (a) the aggregate number of Series 1 Shares outstanding, multiplied by (b) 0.6, divided by (c) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus. The actual number of Common Shares issuable upon conversion of the outstanding Series 1 Shares may increase or decrease on a future date based on when the closing of the Primary Offering occurs and the actual offering price per Common Share. See “Description of Share Capital – Preferred Shares” on page 93 of this prospectus for more information regarding the conversion of the Series 1 Shares. Of the 10,002,033 Common Shares that will be outstanding upon completion of this offering, all the Common Shares sold in this offering by us, plus any Common Shares sold upon exercise of the underwriter’s over-allotment option to purchase additional Common Shares, and the selling shareholder shares that are being registered in the registration statement of which this prospectus is a part, will be freely tradable without restriction in the public market immediately following this offering. Based on the number of Common Shares outstanding as of the date of this prospectus, an additional 3,871,400 Common Shares will be eligible for sale in the public market after the expiration of the lock-up agreements pertaining to this offering or the restrictions on the resale of certain restricted securities held by our existing shareholders, as the case may be. If our existing shareholders sell substantial amounts of our Common Shares in the public market, or if the public perceives that such sales could occur, this could have an adverse impact on the market price of our Common Shares, even if there is no relationship between such sales and the performance of our business.

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The resale of Common Shares by the selling shareholders may cause the market price of our Common Shares to decline.

An aggregate of 2,330,364 Common Shares are being registered for resale by the selling shareholders in the resale offering pursuant to this prospectus. The resale of Common Shares by the selling shareholders in the resale offering could result in resales of Common Shares by our current shareholders concerned about the potential dilution of their holdings. In addition, the resale of a large number of Common Shares by the selling shareholders could have the effect of depressing the market price for our Common Shares.

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

We intend to retain earnings, if any, to finance the growth and development of our business and do not intend to pay cash dividends on our Common Shares in the foreseeable future, if ever. The payment of future cash dividends, if any, will be reviewed periodically by the Board of Directors and will depend upon, among other things, conditions then existing including earnings, financial condition and capital requirements, restrictions in financing agreements, business opportunities and conditions, and other factors.

If persons engage in short sales of our Common Shares, including sales of Common Shares to be issued upon exercise of outstanding securities, the price of our Common Shares may decline.

Selling short is a technique used by a shareholder to take advantage of an anticipated decline in the price of a security. In addition, holders of options, warrants, and other convertible securities will sometimes sell short knowing they can, in effect, cover through the exercise or conversion of options, warrants, and other convertible securities, thus locking in a profit. A significant number of short sales or a large volume of other sales within a relatively short period of time can create downward pressure on the market price of a security. Further sales of Common Shares issued upon exercise or conversion of options, warrants, and other convertible securities could cause even greater declines in the price of our Common Shares due to the number of additional shares available in the market upon such exercise/conversion, which could encourage short sales that could further undermine the value of our Common Shares. You could, therefore, experience a decline in the value of your investment as a result of short sales of our Common Shares.

A “short squeeze” due to a sudden increase in demand for our Common Shares could lead to extreme price volatility in our Common Shares.

Investors may purchase our Common Shares to hedge existing exposure or to speculate on the price of our Common Shares. Speculation of the price of our Common Shares may lead to long and short exposures. To the extent aggregate short exposure exceeds the number of our Common Shares available for purchase on the open market, investors with short exposure may have to pay a premium to repurchase Common Shares for delivery to lenders of our Common Shares. Those repurchases may in turn, dramatically increase the price of our Common Shares until additional Common Shares are available for trading or borrowing. This is often referred to as a “short squeeze.” In the future, a proportion of our Common Shares may be traded by short sellers which may increase the likelihood that our Common Shares will be the target of a short squeeze. A short squeeze could lead to volatile price movements in shares of our Common Shares that are unrelated or disproportionate to our operating performance and, once investors purchase the Common Shares necessary to cover their short positions, the price of our Common Shares may rapidly decline. Investors that purchase Common Shares during a short squeeze may lose a significant portion of their investment.

Our Common Shares, once listed on The Nasdaq Capital Market, may be subject to potential delisting if we do not continue to comply with the listing requirements of The Nasdaq Capital Market.

We have applied to list our Common Shares on The Nasdaq Capital Market, under the symbol “FP”. An approval of our listing application by The Nasdaq Capital Market will be subject to, among other things, our fulfilling of all of the initial listing requirements of The Nasdaq Capital Market. There is no guarantee that our Common Shares will be approved for listing on The Nasdaq Capital Market or any other securities exchange. In addition, The Nasdaq Capital Market maintains rules and standards for continued listing, including, without limitation, minimum market capitalization requirements. Failure to maintain our listing (i.e., being de-listed from Nasdaq Capital Market), would make it more difficult for shareholders to sell our Common Shares and more difficult to obtain accurate price quotations for our Common Shares. Any potential or actual de-listing may have significant adverse effects on the price of our Common Shares, our ability to issue additional securities for financing or other purposes, or otherwise to arrange for any financing.

There is a limited trading market for our Common Shares and shareholders may find it difficult to sell our Common Shares.

Currently, our Common Shares are not listed on any exchange or quoted on any of the over the counter markets. As a result, investors may find it difficult to sell, or to obtain accurate quotations as to the price of, our Common Shares prior to successful listing with The Nasdaq Capital Market. Even if our Common Shares are listed on The Nasdaq Capital Market, our Common Shares being offered pursuant to this prospectus may be subject to the “penny stock” rules that impose additional sales practice requirements on broker-dealers who sell such securities to persons other than established customers and accredited investors. The SEC regulations generally define a penny stock to be an equity security that has a market price of less than $5.00 per share, subject to certain exceptions. If we do not obtain or retain a listing on The Nasdaq Capital Market and if the price of our Common Shares is less than $5.00, our Common Shares will be deemed a penny stock. Unless an exception is available, those regulations require the delivery, prior to any transaction involving a penny stock, of a disclosure schedule explaining the penny stock market and the risks associated therewith and impose various sales practice requirements on broker-dealers who sell penny stocks to persons other than established customers and accredited investors (generally institutions and high net worth individuals). In addition, the broker-dealer must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction, and monthly account statements showing the market value of each penny stock held in the customer’s account. Moreover, broker-dealers who recommend such securities to persons other than established customers and accredited investors must make a special written suitability determination for the purchaser and receive the purchaser’s written agreement to transactions prior to sale. Regulations on penny stocks could limit the ability of broker-dealers to sell our Common Shares and thus the ability of purchasers of our Common Shares to sell their securities in the secondary market.

We cannot predict the extent to which investor interest in us and our Common Shares will lead to the development or continuance of an active trading market or how liquid that trading market for our Common Shares might become. If an active trading market for our Common Shares does not develop or is not sustained, it may be difficult for investors to sell our Common Shares, particularly large quantities thereof, at a price that is attractive or at all. As a result, an investment in our Common Shares may be illiquid and investors may not be able to liquidate their investment readily or at all when they desire to sell.

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There is limited liquidity in our Common Shares, which may adversely affect your ability to sell your Common Shares.

The market price of our Common Shares may fluctuate significantly in response to a number of factors, some of which are beyond our control. These factors include, but are not limited to:

● developments concerning intellectual property rights and regulatory approvals relating to us;

● quarterly variations in our business and financial results or the business and financial results of our competitors;

● our ability or inability to generate increases in revenue and profit;

● our ability or inability to raise capital, and the terms and conditions associated with any such raising of capital;

● developments in our industry and target markets;

● the number of market makers who are willing to continue to make a market in our stock and the market or exchange on which they decide to make a market in our stock;

● our ability to have our Common Shares listed on The Nasdaq Capital Market; and

● general market conditions and other factors, including factors unrelated to our own operating performance.

In recent years, the stock market in general has experienced extreme price and volume fluctuations. Continued market fluctuations could result in extreme volatility in the price of our Common Shares, which could cause a decline in the value of our Common Shares. Price volatility may be accentuated if trading volume of our Common Shares is low. Any or all of these above factors could adversely affect your ability to sell your Common Shares or to sell at a price that you determine to be fair or favorable.

We are a “smaller reporting company” and “emerging growth company” and we cannot be certain if the reduced disclosure requirements applicable to smaller reporting companies and emerging growth companies will make our Common Shares less attractive to investors.

We are a “smaller reporting company,” as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies, including “emerging growth companies” such as, but not limited to, 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, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. Our status as a “smaller reporting company” is determined on an annual basis. We cannot predict if investors will find our Common Shares less attractive or our Company less comparable to certain other public companies because we will rely on these exemptions. For example, if we do not adopt a new or revised accounting standard, our future financial results may not be as comparable to the financial results of certain other companies in our industry that adopted such standards.

Additionally, in connection with this offering, we are concurrently filing a long form prospectus in Alberta, Canada, in order to become a reporting issuer under applicable securities laws in Alberta, Canada. As a result, we will, thereafter, be required to follow Canadian laws and regulations that are applicable to public Canadian companies, including proxy rules. If some investors find our Common Shares less attractive as a result of the reduced disclosure requirements or the applicable Canadian laws and regulations, there may be a less active trading market for our Common Shares and our stock price may be more volatile.

If we fail to implement and maintain an effective system of internal controls, we may be unable to accurately report our results of operations, meet our reporting obligations or prevent fraud.

Under Section 404 of the Sarbanes-Oxley Act, a newly public company is not required to comply with either the management or the auditor reporting requirements related to internal control over financial reporting until its second annual report, if applicable.

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Further, we intend to qualify as an “emerging growth company” as defined in the JOBS Act. An emerging growth company may take advantage of reduced reporting and other burdens that are otherwise applicable generally to public companies. These provisions include:

● an extended transition period to comply with new or revised accounting standards applicable to public companies; and

● an exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act.

We may take advantage of these provisions until the last day of the fiscal year ending during which fifth anniversary of this listing occurs, or such earlier time that we are no longer an emerging growth company and, if we do, the information that we provide shareholders may be different than you might receive from other public companies in which you hold equity. We would cease to be an emerging growth company upon the earliest of: (i) the last day of the first fiscal year in which our annual gross revenue is $1.235 billion or more; (ii) the last day of the fiscal year during which the fifth anniversary of this listing occurs; (iii) the date on which we have issued more than $1.0 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 the rules of the SEC.

In addition, if we no longer qualify as an emerging growth company, as an accelerated filer, our independent registered public accounting firm must attest to and report on the effectiveness of our internal control over financial reporting. Our management may conclude that our internal control over financial reporting is not effective. Moreover, even if our management concludes that our internal control over financial reporting is effective, our independent registered public accounting firm, after conducting its own independent testing, may issue a report that is qualified if it is not satisfied with our internal controls or the level at which our controls are documented, designed, operated or reviewed, or if it interprets the relevant requirements differently from us. In addition, after we become a public company, our reporting obligations may place a significant strain on our management, operational and financial resources and systems for the foreseeable future. We may be unable to timely complete our evaluation testing and any required remediation.

During the course of documenting and testing our internal control procedures, in order to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act, we may identify other weaknesses and deficiencies in our internal control over financial reporting. In addition, if we fail to maintain the adequacy of our internal control over financial reporting, as these standards are modified, supplemented or amended from time to time, we may not be able to conclude on an ongoing basis that we have effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act. If we fail to achieve and maintain an effective internal control environment, we could suffer material misstatements in our financial statements and fail to meet our reporting obligations, which would likely cause investors to lose confidence in our reported financial information. This could in turn limit our access to capital markets, harm our results of operations and lead to a decline in the trading price of our stock.

Additionally, ineffective internal control over financial reporting could expose us to increased risk of fraud or misuse of corporate assets and subject us to potential delisting from the stock exchange on which we list, regulatory investigations and civil or criminal sanctions. We may also be required to restate our financial statements from prior periods.

In connection with the preparation of our consolidated financial statements for the period from January 21, 2021 (inception) through December 31, 2021, we identified the following material weaknesses in our internal controls:

● Due to limited accounting and financial reporting resources, we lack formal processes to identify, update, and assess risks to our financial reporting.

● Due to limited accounting and financial reporting resources, certain authorization, approval, and review controls over our financial statements and accounting records have not been implemented or have not been applied consistently. This includes controls over the identification, approval, and disclosure of related party transactions. In certain cases, formal documentation does not exist regarding the design of controls or evidence of implementation of controls, or evidence of occurrence. In addition, our processes lack segregation of duties in certain audit areas.

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In order to mitigate these material weaknesses, we have expanded our Board of Directors to include three independent directors (see “Management” beginning on page 72 of this prospectus) and have established an independent Audit Committee (see “Corporate Governance” beginning on page 75 of this prospectus).

You may face difficulties in protecting your interests, and your ability to protect your rights through the U.S. federal courts may be limited because we are incorporated under Canadian law and certain of our executive officers and directors reside outside the United States.

We are incorporated under the laws of Alberta, Canada, and our principal executive office is located in Canada. In addition, certain of the directors and officers of the Company are residents of Canada or other jurisdictions outside of the United States, and all or a substantial portion of the assets of those directors and officers are or may be located outside the United States. As a result, it may be difficult or not possible for investors in the United States to effect service of process within the United States upon us, our officers, or our directors, or to enforce against us, our officers, or our directors judgments of U.S. courts based upon civil liability under the U.S. federal securities laws or the securities laws of any state within the United States. There is doubt as to the enforceability in Canada against us, our officers, or our directors in original actions or in actions for enforcement of judgments of U.S. courts of liabilities based solely upon the U.S. federal securities laws or the securities laws of any state within the United States.

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Our amended and restated articles of incorporation and amended and restated bylaws contain provisions that could delay, discourage, or prevent a takeover attempt even if a takeover attempt might be beneficial to our shareholders, and such provisions may adversely affect the market price of our Common Shares.

Provisions contained in our amended and restated articles of incorporation and amended and restated bylaws could make it more difficult for a third party to acquire us. Our amended and restated articles of incorporation and amended and restated bylaws also impose various procedural and other requirements, which could make it more difficult for shareholders to effect certain corporate actions. For example, our amended and restated articles of incorporation authorizes our Board of Directors to determine the rights, preferences, privileges, and restrictions of unissued series of preferred shares without any vote or action by our shareholders. Thus, our Board of Directors can authorize and issue preferred shares with voting or conversion rights that could adversely affect the voting or other rights of holders of our Common Shares. These rights may have the effect of delaying or deterring a change of control of our company. Additionally, for example, our amended and restated bylaws include advance notice requirements for nominations for election to our Board of Directors and for proposing matters that can be acted upon at shareholder meetings.

In addition, our company is subject to the laws of Alberta, Canada, which laws contain certain provisions that could make it more difficult for a third party to acquire us, including that (i) our Board of Directors is expressly authorized to adopt, or to alter or repeal, our amended and restated bylaws, subject to a shareholder ratification requirement by ordinary resolution at the next meeting of shareholders, and (ii) the ability to remove our directors and the ability of our shareholders to call special meetings of shareholders are subject to certain limitations.

See “Description of Share Capital—Anti-Takeover Effects of Provisions of Our Amended and Restated Articles of Incorporation, Our Amended and Restated Bylaws, and Alberta Law” beginning on page 94 of this prospectus. These provisions could limit the price that certain investors might be willing to pay in the future for our Common Shares.

Our amended and restated bylaws provide that any derivative actions, actions relating to breach of fiduciary duties, and other matters relating to our internal affairs will be required to be litigated in Alberta, Canada, which could limit investors’ ability to obtain a favorable judicial forum for disputes with us.

Our amended and restated bylaws provide that, unless we consent in writing to the selection of an alternative forum, the Court of King’s Bench of the Province of Alberta, Canada, and appellate Courts therefrom (or, failing such Court, any other court having jurisdiction, and the appellate Courts therefrom), will be the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf, (ii) any action or proceeding asserting a breach of fiduciary duty owed by any of our directors, officers, or other employees to us, (iii) any action or proceeding asserting a claim arising pursuant to any provision of the Business Corporations Act (Alberta) (the “ABCA”) or our amended and restated articles of incorporation or our amended and restated bylaws, or (iv) any action or proceeding asserting a claim otherwise related to our “affairs” (as defined in the ABCA). Our forum selection bylaw also provides that our securityholders are deemed to have consented to personal jurisdiction in the Province of Alberta and to service of process on their counsel in any foreign action initiated in violation of our bylaw relating to the foregoing matters. Therefore, it may not be possible for securityholders to litigate any action relating to the foregoing matters outside of the Province of Alberta. This may result in increased costs to investors to bring a claim against us, and may discourage claims or limit investors’ ability to bring a claim in a judicial forum that they find favorable. However, our amended and restated bylaws provide that, unless the Company consents in writing to the selection of an alternative forum, the federal district courts of the United States of America shall be the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act, and that the exclusive forum provision shall not apply to actions brought to enforce any liability or duty created by the Exchange Act.

Our forum selection bylaw seeks to reduce litigation costs and increase outcome predictability by requiring derivative actions and other matters relating to our affairs to be litigated in a designated forum. While forum selection clauses in corporate charters and bylaws are becoming more commonplace for public companies in the United States and have been upheld by courts in certain states, they are untested in Canada. It is possible that the validity of our forum selection bylaw could be challenged and that a court could rule that such bylaw is inapplicable or unenforceable.

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If a court were to find our forum selection bylaw inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or proceedings, we may incur additional costs associated with resolving such matters in other jurisdictions and we may not obtain the benefits of limiting jurisdiction to the courts selected.

General economic conditions may negatively impact our operations.

Economic downturns may negatively affect our operations. These conditions may be widespread or isolated to one or more geographic regions in which we operate. Higher wages, related labor costs, printing costs, leasing costs, energy, insurance, and fuel costs, and the increasing cost trends in those markets may decrease our margins. In addition, decreases in discretionary spending during economic downturns could impact our businesses, and thereby negatively impact our operations.

We could be subject to taxation in both Canada and the United States, which could have a material adverse effect on our financial condition and results of operations.

We are a Canadian corporation, and as a result generally would be classified as a non-U.S. corporation under the general rules of U.S. federal income taxation. Section 7874 of the Internal Revenue Code of 1986, as amended (the “Code”), however, contains rules that can cause a non-U.S. corporation to be taxed as a U.S. corporation for U.S. federal income tax purposes. Under Section 7874 of the Code, a corporation created or organized outside of the United States will nevertheless be treated as a U.S. corporation for U.S. federal income tax purposes, which is referred to as an inversion, if certain conditions are met.

If, pursuant to Section 7874 of the Code, we are classified as a U.S. corporation for U.S. federal income tax purposes, then we would be subject to U.S. federal income tax on our worldwide income. Regardless of any application of Section 7874 of the Code, however, we expect to be treated as a Canadian resident company for purposes of the Income Tax Act (Canada), as amended. If, as a result of the application of Section 7874 of the Code, we are subject to taxation both in Canada and the United States, then such treatment could have a material adverse effect on our financial condition and results of operations.

If we are a passive foreign investment company following this offering, there could be adverse U.S. federal income tax consequences to U.S. Holders.

Based on the Company’s current and projected income, assets, activities and market capitalization, we do not expect that the Company will be classified as a passive foreign investment company (“PFIC”) for our taxable year ending December 31, 2023, and we do not expect to become one in the future. However, if we are a PFIC for our taxable year ending December 31, 2023, or any subsequent taxable years, we intend to annually furnish U.S. holders, upon request, a “PFIC Annual Information Statement,” with the information required to allow U.S. holders to make a “qualified electing fund” election, or “QEF Election” for U.S. federal income tax purposes. No assurances regarding our PFIC status can be provided for any past, current, or future taxable years. The determination of whether we are a PFIC is a fact-intensive determination made on an annual basis and the applicable law is subject to varying interpretation. In particular, the characterization of our assets as active or passive may depend in part on our current and intended future business plans, which are subject to change. In addition, for our current and future taxable years, the total value of our assets for PFIC testing purposes may be determined in part by reference to the market price of our securities from time to time, which may fluctuate considerably. Under the income test, our status as a PFIC depends on the composition of our income which will depend on the transactions we enter into in the future and our corporate structure. The composition of our income and assets is also affected by how, and how quickly, we spend the cash we raise in any offering, including this offering.

If we are a PFIC, U.S. holders of our securities will be subject to adverse U.S. federal income tax consequences, such as ineligibility for any preferential tax rates for individuals on capital gains or on actual or deemed dividends, interest charges on certain taxes treated as deferred, and additional reporting requirements under U.S. federal income tax laws and regulations. For further discussion of the PFIC rules and the adverse U.S. federal income tax consequences in the event we are classified as a PFIC, see “Material U.S. Federal Income Tax Considerations—Passive Foreign Investment Company Rules” beginning on page 112 of this prospectus.

If we or any of our non-U.S. subsidiaries are classified as a controlled foreign corporation, there could be materially adverse U.S. federal income tax consequences to certain U.S. Holders of our securities.

Each “Ten Percent Shareholder” (as defined below) in a non-U.S. corporation that is classified as a controlled foreign corporation (“CFC”) for U.S. federal income tax purposes generally is required to include in income for U.S. federal tax purposes such Ten Percent Shareholder’s pro rata share of the CFC’s “Subpart F income,” global intangible low taxed income, and investment of earnings in U.S. property, even if the CFC has made no distributions to its shareholders. Subpart F income generally includes dividends, interest, rents, royalties, gains from the sale of securities and income from certain transactions with related parties. In addition, a Ten Percent Shareholder that realizes gain from the sale or exchange of shares in a CFC may be required to classify a portion of such gain as dividend income rather than capital gain. An individual that is a Ten Percent Shareholder with respect to a CFC generally would not be allowed certain tax deductions or foreign tax credits that would be allowed to a Ten Percent Shareholder that is a U.S. corporation. Failure to comply with these reporting obligations may subject a Ten Percent Shareholder to significant monetary penalties and may prevent the statute of limitations with respect to such Ten Percent Shareholder’s U.S. federal income tax return for the year for which reporting was due from starting.

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A non-U.S. corporation generally will be classified as a CFC for U.S. federal income tax purposes if Ten Percent Shareholders own, directly or indirectly, more than 50 percent of either the total combined voting power of all classes of stock of such corporation entitled to vote or of the total value of the stock of such corporation. A “Ten Percent Shareholder” is a U.S. person (as defined by the Code) who owns or is considered to own 10 percent or more of the total combined voting power of all classes of stock entitled to vote or 10 percent or more of the total value of all classes of stock of such corporation.

We believe that we were not a CFC in the 2022 taxable year, and we do not expect to become a CFC in the 2023 taxable year or in a subsequent taxable year. However, the determination of CFC status is complex and includes attribution rules, the application of which is not entirely certain. In addition, recent changes to the attribution rules relating to the determination of CFC status may make it difficult to determine our CFC status for any taxable year. In addition, those changes to the attribution rules may result in ownership of the stock of our non-U.S. subsidiary being attributed to our U.S. subsidiary, which could result in our non-U.S. subsidiary being treated as a CFC and certain U.S. holders of our securities being treated as Ten Percent Shareholders of such non-U.S. subsidiary CFC. In addition, it is possible that, following this offering, a shareholder treated as a U.S. person for U.S. federal income tax purposes will acquire, directly or indirectly, enough of our securities to be treated as a Ten Percent Shareholder. We cannot provide any assurances that we will assist holders of our securities in determining whether we or any of our non-U.S. subsidiaries are treated as a CFC or whether any holder of our securities is treated as a Ten Percent Shareholder with respect to any such CFC or furnish to any Ten Percent Shareholders information that may be necessary to comply with the aforementioned reporting and tax paying obligations.

U.S. holders should consult their tax advisors with respect to the potential adverse U.S. tax consequences of becoming a Ten Percent Shareholder in a CFC, including the possibility and consequences of becoming a Ten Percent Shareholder in our non-U.S. subsidiary that may be treated as a CFC due to the changes to the attribution rules. If we are classified as both a CFC and a PFIC, we generally will not be treated as a PFIC with respect to those U.S. holders that meet the definition of a Ten Percent Shareholder during the period in which we are a CFC.

Risks Related to this Offering

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

As a reporting public company, we will be subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act, and the Dodd-Frank Act, laws, regulations, and requirements relating to becoming a reporting issuer in Alberta, Canada, and other applicable securities rules and regulations. Compliance with these rules and regulations will increase our legal and financial compliance costs, making some activities more difficult, time-consuming or costly. This will put increased demand on our systems and resources, particularly after we are no longer a “smaller reporting 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. As a “smaller reporting company” and “emerging growth company,” as stated above, we receive certain reporting exemptions under the Sarbanes-Oxley Act.

Changing laws, regulations, and standards relating to corporate governance and public disclosure create uncertainty for public companies, which increases legal and financial compliance costs and time expenditures for internal personnel. These laws, regulations, and standards are subject to interpretation, which in many cases due to their lack of specificity, their application in practice may evolve over time as regulators and governing bodies provide new guidance. These changes may result in continued uncertainty regarding compliance matters and may necessitate higher costs due to ongoing revisions to filings, disclosures, and governance practices. We intend to 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 our efforts to comply with new laws, regulations, and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to their application and practice, regulatory authorities may initiate regulatory or legal proceedings against us and our business may be adversely affected.

As a public company under these rules and regulations, we expect that it may make it more expensive for us to hire external auditors to perform requisite outside audited financial statements, as well as obtain director and officer liability insurance, and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. These factors could also make it more difficult for us to attract and retain qualified members of our Board of Directors, particularly to serve on our Audit Committee and Compensation Committee, and could also make it more difficult to attract qualified executive officers.

As a result of disclosure of information in this prospectus and in filings required of a public company, our business and financial condition will become more visible, which we believe may result in threatened or actual litigation, including by competitors and other third parties. If such claims are successful, our business and results of operations could be adversely affected, and even if the claims do not result in litigation or are resolved in our favor, these claims, and the time and resources necessary to resolve them, could divert the resources of our management and adversely affect our business and results of operations.

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Investors in this offering will experience immediate and substantial dilution in net tangible book value.

The Primary Offering price per Common Share is substantially higher than the pro forma net tangible book value per share of our outstanding Common Shares. As a result, investors in this offering will incur immediate dilution of $3.61 per Common Share, based on the assumed Primary Offering price of $4.50 per Common Share, representing the difference between our pro forma as adjusted net tangible book value per Common Share after this offering and the Primary Offering price per Common Share. Investors in this offering will pay a price per Common Share that substantially exceeds the book value of our assets after subtracting our liabilities. See “Dilution” on page 45 of this prospectus for a more complete description of how the value of your investment will be diluted upon the completion of this offering. After this offering, we will also have outstanding options and warrants to purchase our Common Shares with exercise prices lower than the Primary Offering price. To the extent these outstanding options or warrants are exercised, there will be further dilution to investors in this offering.

We will have broad discretion in the use of the net proceeds from this offering and may not use them effectively.

Our management will have broad discretion in the application of the net proceeds from this offering, including for any of the purposes described in “Use of Proceeds” beginning on page 42 of this prospectus, and you will not have the opportunity as part of your investment decision to assess whether the net proceeds will be used appropriately. Because of the number and variability of factors that will determine our use of the net proceeds from this offering, their ultimate use may vary substantially from their currently intended use. Our management might not apply our net proceeds in ways that ultimately increase the value of your investment. We currently intend to use the net proceeds of this offering primarily for general corporate purposes, growing our initial line of consumer products, expanding research and development, establishing operations in Jamaica, and expansion of growing and production capabilities in Olympia, Washington. See “Use of Proceeds” on page 42 of this prospectus for additional information.

Our expected use of net proceeds from this offering represents our current intentions based upon our present plans and business condition. As of the date of this prospectus, we cannot predict with certainty all of the particular uses for the net proceeds to be received upon the completion of this offering, or the amounts that we will actually spend on the uses set forth above. The amounts and timing of our actual use of the net proceeds will vary depending on numerous factors, including the commercial success of our systems, as well as the amount of cash used in our operations. As a result, our management will have broad discretion in the application of the net proceeds, and investors will be relying on our judgment regarding the application of the net proceeds of this offering.

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The failure by our management to apply these funds effectively could harm our business. Pending their use, we may invest the net proceeds from this offering in short-term, investment-grade, interest-bearing securities. These investments may not yield a favorable return to our shareholders. If we do not invest or apply the net proceeds from this offering in ways that enhance shareholder value, we may fail to achieve expected financial results, which could cause our stock price to decline.

Our principal stockholders and management own a significant percentage of our capital stock and will be able to exert significant control over matters subject to shareholder approval.

Immediately following the completion of this offering, our executive officers, directors, and their affiliates will beneficially hold, in the aggregate, approximately 1.74 million of our outstanding Common Shares, or approximately 18.70 percent of our outstanding Common Shares. These stockholders would be able to significantly influence elections of directors, amendments of our organizational documents, or approval of any merger, sale of assets, or other major corporate transaction. This may prevent or discourage unsolicited acquisition proposals or offers for our Common Shares that you may feel are in your best interest as one of our shareholders.

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

The trading market for our Common Shares will depend in part on the research and reports that securities or industry analysts publish about us or our business. Securities and industry analysts do not currently, and may never, publish research on our company. If no securities or industry analysts commence coverage of our company, the trading price for our Common Shares would likely be negatively impacted. In the event securities or industry analysts initiate coverage, if one or more of the analysts who covers us downgrades our Common Shares or publishes inaccurate or unfavorable research about our business, our Common Share price may decline. If one or more of these analysts ceases coverage of our company or fails to publish reports on us regularly, demand for our Common Shares could decrease, which might cause our Common Share price and trading volume to decline.

Future changes to tax laws could materially adversely affect us and reduce net returns to our shareholders.

Our tax treatment is subject to changes in tax laws, regulations, and treaties, or the interpretation thereof, tax policy initiatives and reforms under consideration and the practices of tax authorities in jurisdictions in which we operate, as well as tax policy initiatives and reforms related to the Organisation for Economic Co-Operation and Development’s Base Erosion and Profit Shifting Project, and other initiatives. Such changes may include (but are not limited to) the taxation of operating income, investment income, dividends received, or (in the specific context of withholding tax) dividends paid. We are unable to predict what tax reform may be proposed or enacted in the future or what effect such changes would have on our business, but such changes, to the extent they are brought into tax legislation, regulations, policies, or practices, could affect our financial position and overall or effective tax rates in the future in countries where we have operations, reduce post-tax returns to our shareholders, and increase the complexity, burden, and cost of tax compliance.

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This prospectus contains forward-looking statements. All statements other than statements of historical facts contained in this prospectus, including statements regarding our future results of operations and financial position, business strategy, prospective products, product approvals, timing and likelihood of success, plans and objectives of management for future operations, and future results of current and anticipated products are forward-looking statements. These statements involve known and unknown risks, uncertainties, and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue” or the negative of these terms or other similar expressions. The forward-looking statements in this prospectus are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These forward-looking statements speak only as of the date of this prospectus and are subject to a number of risks, uncertainties, and assumptions described under “Risk Factors” beginning on page 11 of this prospectus and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” beginning on page 48 of this prospectus, and elsewhere in this prospectus. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for us to predict all risk factors and uncertainties. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances, or otherwise. All of the forward-looking statements made in this prospectus are qualified by these cautionary statements.

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USE OF PROCEEDS

Based upon an assumed Primary Offering price of $4.50 per Common Share, which is the midpoint of the price range set forth on the cover of this prospectus, we estimate that we will receive net proceeds from this offering, after deducting the underwriting discounts and commissions and the estimated offering expenses payable by us, of approximately $10.54 million assuming the underwriter does not exercise the over-allotment option (or $12.33 million if the underwriter exercises the over-allotment option in full). We will not receive any of the proceeds from the sale of selling shareholder shares. However, upon any exercise, other than a net exercise, of warrants or stock options held by the selling shareholders, we will receive cash proceeds per share equal to the exercise price of such warrants or stock options.

Each $0.50 increase (decrease) in the assumed Primary Offering price of $4.50 per Common Share, which is the midpoint of the price range set forth on the cover of this prospectus, would increase (decrease) the net proceeds we receive from this offering by approximately $1.33 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 estimated underwriting discounts and commissions. Similarly, each increase (decrease) of 100,000 Common Shares offered by us would increase (decrease) the net proceeds we receive from this offering by approximately $0.41 million, assuming the assumed Primary Offering price remains the same, and after deducting estimated underwriting discounts and commissions.

We plan to use the net proceeds we receive from this offering primarily for the following purposes:

● approximately $2.75 million to grow our direct-to-consumers product line of nutraceutical cognitive supplements, as discussed below;

● approximately $500,000 to expand innovation and research and development and establish TruMed’s innovation and research and development operations in Jamaica, as discussed below;

● approximately $750,000 for the expansion of our production capabilities in the ingredients division in Olympia, Washington, focusing on expanding our processing capabilities for fresh and dried functional mushrooms;

● approximately $229,545 for repayment of digital advertising expenses incurred on our behalf by Cory J. Rosenberg, our Chairman, Chief Executive Officer, and President; and

● the remainder for other general corporate purposes, further research and development and product innovation, marketing spend and brand development, capital expenditures, and working capital, including approximately $3,338,109 for the repayment of outstanding convertible secured promissory notes, to the extent the holders of such notes do not elect to convert such notes into Common Shares. None of the holders of the convertible secured promissory notes, including Mr. Rosenberg and Mr. Campbell, have indicated whether they intend to convert their notes into Common Shares.

On March 1, 2022, FP, Inc. launched a direct-to-consumers product line of nutraceutical cognitive supplements made of functional mushrooms and other adaptogenic botanicals. There are three initial product offerings, as follows: (i) Sunbeam^TM, (ii) Golden Hour^TM, and (iii) Moonlight^TM. See “Business— Development of Nutraceutical Consumer Products” beginning on page 56 of this prospectus for additional information. We intend to use approximately $2.75 million of the net proceeds in connection with the growth of these consumer products. Of the $2.75 million, we plan to use approximately $1.25 million for inventory and approximately $1.5 million for marketing.

On February 15, 2022, we acquired all of the issued and outstanding shares of common stock of TruMed pursuant to the terms of the Share Purchase Agreement. See “Business—Overview” beginning on page 54 of this prospectus for additional information. TruMed is a pre-revenue company in the development stage with substantially no operations. We intend to use approximately $500,000 of the net proceeds of this offering to expand innovation and research and development and establish TruMed’s operations in Jamaica. Of the $500,000, we plan to use approximately $200,000 for capital assets and leasehold improvements, including the purchase or lease of containers for growing functional and psychedelic mushrooms and building-out a grow facility in Jamaica. We plan to use the remaining approximately $300,000 for general working capital, including approximately $50,000 for marketing, and approximately $100,000 for research and development, including research in Jamaica involving psychedelic mushrooms. The Share Purchase Agreement provides that $550,000 of the purchase price for the acquisition of TruMed will only be paid if TruMed achieves certain milestones within the first twenty-four months following the closing of the acquisition. See “Business—Overview” beginning on page 54 of this prospectus for additional information. In the event the first milestone is met after the effective date of the registration statement of which this prospectus forms a part, then $125,000 of the $300,000 of proceeds allocated for general working capital, marketing, and research and development will be used to make the corresponding Milestone Payment.

Our Olympia, Washington facility currently consists of 15,000 sq. ft. of production space, including three fully constructed functional mushroom greenhouses, totaling 12,000 sq. ft., with plans to acquire or lease additional growing space. We intend to use approximately $750,000 of the net proceeds of this offering for the expansion of our production capabilities in the ingredients division in Olympia, Washington, focusing on expanding our processing capabilities for fresh and dried functional mushrooms. This expansion effort will increase our production efficiency and processing capacity. We do not intend to use any of the proceeds we receive from this offering for the construction of our planned WDOH- and DEA-compliant culture laboratory and controlled production and research facility for psychedelic mushrooms.

During the year ended December 31, 2022, Cory J. Rosenberg, our Chairman, Chief Executive Officer, and President, incurred digital advertising expenditures on our behalf, subject to expense reporting and reimbursement. As of December 31, 2022, there was $643,407 due to Mr. Rosenberg, of which $229,545 remained outstanding and due to Mr. Rosenberg as of September 12, 2023. See “Certain Relationships and Related Party Transactions” on page 85 of this prospectus for more information regarding the amounts due to Mr. Rosenberg. We will pay such amounts out of the net proceeds from this offering.

As of September 12, 2023, we have convertible secured promissory notes in the aggregate principal amount of $3,338,109 outstanding, including a convertible secured promissory note in the principal amount of $271,739 issued to Cory J. Rosenberg, our Chairman, Chief Executive Officer, and President, on January 3, 2023, a convertible secured promissory note in the principal amount of $108,696 issued to Mr. Rosenberg on September 7, 2023, and a convertible secured promissory note in the principal amount of $100,000 issued to Darcy A. Campbell, our Chief Financial Officer on January 9, 2023. See “Certain Relationships and Related Party Transactions” on page 85 of this prospectus for more information regarding the convertible secured promissory notes issued to Mr. Rosenberg and Mr. Campbell. The principal amount of each convertible secured promissory note may be prepaid at any time at our sole election without penalty. Interest on the principal amount outstanding and remaining from time to time on each convertible secured promissory note accrues at the rate of 8 percent per annum. Interest is payable in cash on a quarterly basis on the last day of each quarter, which commenced with the first quarter ending March 31, 2023. Interest is calculated on the basis of a 360-day year consisting of twelve, 30-day months. Each holder of a convertible secured promissory note may elect, in such holder’s sole discretion, to have the interest payable on the principal amount to be paid-in-kind. In the event of such election, the interest is calculated at a rate of 10 percent per annum, and such interest is added to the outstanding principal amount on the applicable interest payment date. Any such paid-in-kind interest is added to and increases the principal amount for all purposes under the convertible secured promissory note. Each convertible secured promissory note, including the outstanding principal amount together with all applicable accrued and unpaid interest thereunder, is convertible, in whole or in part, into Common Shares at the option of the holder of such convertible secured promissory note (subject to certain limitations set forth in the convertible secured promissory note) at a conversion price equal to $6.00 per Common Share (subject to certain adjustments set forth in the convertible secured promissory note). Each convertible secured promissory note is payable in accordance with the following schedule: (i) if a Qualifying Transaction occurs 30 days or more before the date that is one year after the date of such convertible secured promissory note, then (a) 50 percent of the principal amount is payable on the thirtieth calendar day after the date of the first Qualifying Transaction occurring after the date of such convertible secured promissory note; and (b) the remaining 50 percent of the principal amount is payable on the earlier to occur of (1) the ninetieth calendar day after the date of the first Qualifying Transaction occurring after the date of such convertible secured promissory note, or (2) the date that is one year after the date of such convertible secured promissory note, and (ii) if a Qualifying Transaction does not occur, or occurs less than 30 days, before the date that is one year after the date of such convertible secured promissory note, then 100 percent of the principal amount is payable on the date that is one year after the date of such convertible secured promissory note. All of the convertible secured promissory notes were issued between January 3, 2023, and September 7, 2023. The Primary Offering is expected to qualify as a Qualifying Transaction under the terms of the convertible secured promissory notes. Therefore, to the extent the holders of the convertible secured promissory notes, including the convertible secured promissory notes held by Mr. Rosenberg and Mr. Campbell, do not elect to convert the outstanding principal and accrued and unpaid interest into Common Shares such amounts will become payable in accordance with the schedule set forth above and we will pay such amounts out of the net proceeds from this offering that are allocated for general corporate purposes, further research and development and product innovation, marketing spend and brand development, capital expenditures, and working capital.

The foregoing represents our current intentions based upon our present plans and business conditions to use and allocate the net proceeds of this offering. However, the nature, amounts, and timing of our actual expenditures may vary significantly depending on numerous factors. As a result, our management has and will retain broad discretion over the allocation of the net proceeds from this offering. We may find it necessary or advisable to use the net proceeds from this offering for other purposes, and we will have broad discretion in the application of net proceeds from this offering. To the extent that the net proceeds we receive from this offering are not immediately used for the above purposes, we intend to invest our net proceeds in short-term, interest-bearing bank deposits, or debt instruments.

We are an early stage company with a history of net losses. We currently have negative operating cash flow and may continue to have that for the foreseeable future. To the extent that we have negative operating cash flow in future periods, we will need to allocate a portion of our cash to fund such negative operating cash flow. As such, certain of the net proceeds of this offering may be used to fund such negative cash flow from operating activities in future periods. See “Risk Factors—We have a limited operating history and a history of net losses, and we may not achieve or maintain profitability in the future” on page 14 of this prospectus.

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DIVIDEND POLICY

We have never paid dividends on our Common Shares, and currently do not intend to pay any cash dividends on our Common Shares in the foreseeable future. Our current policy is to retain all of our earnings to finance future growth. Any future declaration of dividends will be subject to the discretion of our Board of Directors.

In addition, we may incur additional debt financing in the future, the terms of which will likely prohibit us from paying cash dividends or distributions on our Common Shares. Even if we are permitted to pay cash dividends in the future, we currently anticipate that we will retain all future earnings, if any, to fund the operation and expansion of our business, and for general corporate purposes.

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CAPITALIZATION

Set forth below is our cash and capitalization as of June 30, 2023:

● on an actual basis;

● on a pro forma basis to give effect to (i) the receipt of cash proceeds in the amount of $199,774 on July 19, 2023, pursuant to a merchant loan agreement entered into with Cloudfund LLC; (ii) the receipt of cash proceeds in the amount of $260,000 on July 21, 2023, pursuant to a merchant loan agreement entered into with WebBank, on behalf of Shopify Inc.; (iii) the receipt of cash proceeds in the amount of $225,000 on August 31, 2023, pursuant to a merchant loan agreement entered into with Curve Capital LLC; (iv) the issuance of convertible secured promissory notes in the aggregate principal amount of $239,130 and 239,129 Series 1 Shares to accredited investors for gross proceeds of approximately $220,000 on September 7, 2023; and (v) the conversion of all outstanding Series 1 Shares into 750,679 Common Shares; and

● on an a pro forma as adjusted basis to further reflect the issuance and sale of Common Shares by us in this offering at the Primary Offering price of $4.50 per Common Share, which is the midpoint of the price range set forth on the cover of this prospectus, after deducting the estimated underwriting discounts and the estimated offering expenses payable by us.

Any holder of Series 1 Shares may, at any time, elect to convert all or any portion of the outstanding Series 1 Shares held by such holder into Common Shares. The Series 1 Shares will automatically convert into Common Shares on the date that is 12 months after the closing of the Primary Offering. The number of Common Shares issuable upon conversion of the Series 1 Shares is calculated as of the date of this prospectus as follows: (i) with respect to the 1,748,970 Series 1 Shares issued on January 3, 2023, January 9, 2023, and February 6, 2023, (a) the aggregate number of Series 1 Shares outstanding, divided by (b) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus; and (ii) with respect to the 1,589,130 Series 1 Shares issued on March 31, 2023, and September 7, 2023, (a) the aggregate number of Series 1 Shares outstanding, multiplied by (b) 0.6, divided by (c) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus. The actual number of Common Shares issuable upon conversion of the outstanding Series 1 Shares may increase or decrease on a future date based on when the closing of the Primary Offering occurs and the actual offering price per Common Share. See “Description of Share Capital – Preferred Shares” on page 93 of this prospectus for more information regarding the conversion of the Series 1 Shares.

You should read the information in the below table together with our consolidated financial statements and related notes included elsewhere in this prospectus, and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” beginning on page 48 of this prospectus.

(in thousands except share numbers)	Actual			Pro Forma (unaudited)			Pro Forma as Adjusted (unaudited)(1)
Cash	$	200			1,105			11,645
Total shareholders’ equity (deficit):
Preferred Shares, no par value – unlimited authorized, 3,098,971 shares issued and outstanding, 0 shares issued and outstanding, pro forma, and 0 shares issued and outstanding, pro forma as adjusted		969			-			-
Common Shares, no par value – unlimited authorized, 6,351,354 shares issued and outstanding, actual; 7,102,033 shares issued and outstanding, pro forma; 10,002,033 shares issued and outstanding, pro forma as adjusted		7,081			8,121			18,662
Additional paid-in capital		903			903			903
Accumulated deficit		(10,456	)		(10,456	)		(10,456	)
Accumulated other comprehensive loss		20			20			20
Total shareholders’ equity (deficit)		(1,483	)		(1,412	)		9,128
Loans and note payable		780			1,465			1,465
Convertible notes payable		2,099			2,249			2,249
Capitalization	$	1,397			2,301			12,842

(1)

The pro forma as adjusted information discussed above is illustrative only and will depend on the actual Primary Offering price and other terms of this offering determined at pricing. Each $0.50 increase (decrease) in the assumed Primary Offering price of $4.50 per Common Share, which is the midpoint of the price range set forth on the cover of this prospectus, would increase (decrease) the as adjusted amount of each of cash, total assets, and total stockholders’ equity by approximately $1.33 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 estimated underwriting discounts and commissions. Similarly, each increase (decrease) of 100,000 Common Shares offered by us would increase (decrease) the as adjusted amount of each of cash, total assets, and total stockholders’ equity by approximately $0.41 million, assuming the assumed Primary Offering price remains the same, and after deducting estimated underwriting discounts and commissions.

The number of Common Shares that will be outstanding after this offering is based on 6,351,354 Common Shares outstanding as of June 30, 2023, and excludes the following:

● up to 482,500 Common Shares issuable upon the exercise of outstanding options under the Incentive Plan as of the date hereof, of which 290,000 have an exercise price of CAD$2.00 per Common Share, 72,500 have an exercise price of CAD$3.50 per Common Share, and 120,000 have an exercise price of $5.00 per Common Share;

● up to 500,620 Common Shares at a price per Common Share of CAD$5.00 issuable upon exercise of outstanding warrants as of the date hereof;

● 152,635 Common Shares reserved for future issuance under the Incentive Plan as of the date hereof; and

● any Common Shares issuable upon exercise of the underwriter’s over-allotment option.

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DILUTION

If you invest in our Common Shares in this offering, your interest will be diluted to the extent of the difference between the Primary Offering price per Common Share and the as adjusted net tangible book value per Common Share immediately after this offering.

Our historical net tangible book value as of June 30, 2023, was $(2,955,325), or $(0.47) per Common Share. Our historical net tangible book value is the amount of our total tangible assets less our liabilities. Historical net tangible book value per Common Share is our historical net tangible book value divided by the number of outstanding Common Shares as of June 30, 2023.

Our pro forma net tangible book value as of June 30, 2023, was $(2,884,925), or $(0.41) per Common Share. Pro forma net tangible book value per Common Share represents pro forma net tangible book value divided by the total number of Common Shares outstanding after giving effect to (i) the receipt of cash proceeds in the amount of $199,774 on July 19, 2023, pursuant to a merchant loan agreement entered into with Cloudfund LLC; (ii) the receipt of cash proceeds in the amount of $260,000 on July 21, 2023, pursuant to a merchant loan agreement entered into with WebBank, on behalf of Shopify Inc.; (iii) the receipt of cash proceeds in the amount of $225,000 on August 31, 2023, pursuant to a merchant loan agreement entered into with Curve Capital LLC; (iv) the issuance of convertible secured promissory notes in the aggregate principal amount of $239,130 and 239,129 Series 1 Shares to accredited investors for gross proceeds of approximately $220,000 on September 7, 2023; and (v) the conversion of all outstanding Series 1 Shares into 750,679 Common Shares. Any holder of Series 1 Shares may, at any time, elect to convert all or any portion of the outstanding Series 1 Shares held by such holder into Common Shares. The Series 1 Shares will automatically convert into Common Shares on the date that is 12 months after the closing of the Primary Offering. The number of Common Shares issuable upon conversion of the Series 1 Shares is calculated as of the date of this prospectus as follows: (i) with respect to the 1,748,970 Series 1 Shares issued on January 3, 2023, January 9, 2023, and February 6, 2023, (a) the aggregate number of Series 1 Shares outstanding, divided by (b) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus; and (ii) with respect to the 1,589,130 Series 1 Shares issued on March 31, 2023, and September 7, 2023, (a) the aggregate number of Series 1 Shares outstanding, multiplied by (b) 0.6, divided by (c) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus. The actual number of Common Shares issuable upon conversion of the outstanding Series 1 Shares may increase or decrease on a future date based on when the closing of the Primary Offering occurs and the actual offering price per Common Share. See “Description of Share Capital – Preferred Shares” on page 93 of this prospectus for more information regarding the conversion of the Series 1 Shares.

After giving further effect to the sale of the Common Shares in this offering at the assumed Primary Offering price of $4.50 per Common Share, and after deducting underwriting discounts and commissions and other estimated offering expenses payable by us, our pro forma as adjusted net tangible book value as of June 30, 2023, would have been $8,905,825, or $0.89 per Common Share. This amount represents an immediate increase in pro forma as adjusted net tangible book value per Common Share of $1.30 to our existing shareholders and immediate dilution of $3.61 in pro forma as adjusted net tangible book value per Common Share to new investors purchasing Common Shares in this offering.

Dilution per Common Share to new investors is determined by subtracting pro forma as adjusted net tangible book value per Common Share after this offering from the Primary Offering price per Common Share paid by new investors. The following table illustrates this dilution on a per Common Share basis (without giving effect to any exercise by the underwriter of its option to purchase additional shares):

Assumed Primary Offering price per Common Share	$	4.50
Net tangible book value per Common Shares as of June 30, 2023	$	(0.47	)
Increase per Common Share attributable to the pro forma adjustment described above	$	0.06
Pro forma net tangible book value per Common Share as of June 30, 2023	$	(0.41	)
Pro forma as adjusted increase in net tangible book value per Common Share attributable to new investors participating in this offering	$	1.30
Pro forma as adjusted net tangible book value per Common Share after this offering	$	0.89
Dilution per Common Share to new investors participating in this offering	$	(3.61	)

A $0.50 increase (decrease) in the assumed Primary Offering price of $4.50 per Common Share, would increase (decrease) the pro forma as adjusted net tangible book value per Common Share by $0.13, and increase (decrease) dilution to new investors by $0.37 per Common Share, in each case assuming that the number of Common 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.

The foregoing discussion and table do not take into account further dilution to new investors that could occur upon the exercise of outstanding warrants or convertible promissory notes having a per Common Share exercise or conversion price less than the per Common Share offering price to the public in this offering.

If the underwriter exercises in full the over-allotment option to purchase additional Common Shares in this offering, the as adjusted net tangible book value after the offering would be $1.02 per Common Share, the increase in net tangible book value to existing shareholders would be $1.43 per Common Share, and the dilution to new investors would be $3.48 per Common Share, in each case assuming a Primary Offering price of $4.50 per Common Share.

The following table presents, as of June 30, 2023, on an as adjusted basis, the number of Common Shares purchased from us, the total consideration paid to us, and the average price paid per Common Share by existing shareholders and by new investors purchasing Common Shares in this offering at an assumed Primary Offering price of $4.50 per Common Share (the midpoint of the estimated price range set forth on the cover of this prospectus), before deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us:

	Common Shares Purchased					Total Cash Consideration					Average price per Common
	Number		Percent			Amount		Percent			Share
Existing shareholders		7,102,033		71.01	%	$	7,761,291		37.29	%	$	1.09
New investors		2,900,000		28.99	%		13,050,000		62.71	%		4.50
Total		10,002,033		100	%	$	20,811,291		100	%	$	2.08

Except as otherwise indicated, the above discussion and table assume no exercise of the underwriter’s over-allotment option to purchase additional Common Share from us. If the underwriter’s over-allotment option to purchase additional Common Share were exercised in full, our existing shareholders would own 68.05 percent and our new investors would own 31.95 percent of the total number of Common Shares outstanding upon completion of this offering.

The number of Common Shares that will be outstanding after this offering is based on 7,102,033 Common Shares outstanding as of June 30, 2023, assuming all outstanding Series 1 Shares are converted into 750,679 Common Shares immediately prior to the closing of the Primary Offering, and excludes the following:

● up to 482,500 Common Shares issuable upon the exercise of outstanding options under the Incentive Plan as of the date hereof, of which 290,000 have an exercise price of CAD$2.00 per Common Share, 72,500 have an exercise price of CAD$3.50 per Common Share, and 120,000 have an exercise price of $5.00 per Common Share;

● up to 500,620 Common Shares at a price per Common Share of CAD$5.00 issuable upon exercise of outstanding warrants as of the date hereof;

● 152,635 Common Shares reserved for future issuance under the Incentive Plan as of the date hereof; and

● any Common Shares issuable upon exercise of the underwriter’s over-allotment option.

Any holder of Series 1 Shares may, at any time, elect to convert all or any portion of the outstanding Series 1 Shares held by such holder into Common Shares. The Series 1 Shares will automatically convert into Common Shares on the date that is 12 months after the closing of the Primary Offering. The number of Common Shares issuable upon conversion of the Series 1 Shares is calculated as of the date of this prospectus as follows: (i) with respect to the 1,748,970 Series 1 Shares issued on January 3, 2023, January 9, 2023, and February 6, 2023, (a) the aggregate number of Series 1 Shares outstanding, divided by (b) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus; and (ii) with respect to the 1,589,130 Series 1 Shares issued on March 31, 2023, and September 7, 2023, (a) the aggregate number of Series 1 Shares outstanding, multiplied by (b) 0.6, divided by (c) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus. The actual number of Common Shares issuable upon conversion of the outstanding Series 1 Shares may increase or decrease on a future date based on when the closing of the Primary Offering occurs and the actual offering price per Common Share. See “Description of Share Capital – Preferred Shares” on page 93 of this prospectus for more information regarding the conversion of the Series 1 Shares.

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SELECTED CONSOLIDATED FINANCIAL DATA

The summary consolidated statements of operations data for the year ended December 31, 2022, have been derived from our audited consolidated financial statements included elsewhere in this prospectus. The summary consolidated statements of operations data for the three months ended June 30, 2022 and 2023, have been derived from the unaudited consolidated financial statements included elsewhere in this prospectus. The unaudited consolidated financial statements have been prepared on a basis consistent with our audited financial statements and, in our opinion, contain all adjustments, consisting of only normal recurring adjustments, necessary for fair presentation of such financial data. Our historical results are not necessarily indicative of the results that should be expected for any future period.

You should read the consolidated financial data set forth below in conjunction with our consolidated financial statements and the accompanying notes and the information in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” beginning on page 48 of this prospectus. Our historical results are not necessarily indicative of the results to be expected for any period in the future.

First Person Ltd.

Consolidated Statement of Operations and Comprehensive Loss

	Year ended December 31,						Six months ended June 30,
	2021(1)			2022			2022			2023
							(Unaudited)			(Unaudited)
	(in thousands, except per share amounts)
Revenues, net	$	-		$	4,334		$	1,080		$	3,895
Cost of Goods Sold		-			1,406			365			1,128
Gross Profit		-			2,928			715			2,766
Operating expenses:
Selling, general and administrative		2,948			8,081			3,631			4,254
Depreciation and amortization		1			52			17			86
Foreign currency transaction loss (gain)		(28	)		101			(6	)		-
Total operating expenses		2,921			8,233			3,642			4,341
Loss from operations		(2,921	)		(5,305	)		(2,927	)		(1,575	)
Other income (expense):
Net interest (expense)		0			(88	)		-			(569	)
Net interest income		0			0			0			1
Total other income (expense)		0			(88	)		0			(567	)
Loss before provision for income taxes		(2,921	)		(5,393	)		(2,927	)		(2,142	)
Provision for income taxes		-			-			-			-
Net loss		(2,921	)		(5,393	)		(2,927	)		(2,142	)
Other comprehensive loss, net of provision for income taxes:
Foreign currency translation gain (loss)		(36	)		64			(11	)		(8	)
Comprehensive loss	$	(2,957	)	$	(5,329	)	$	(2,938	)	$	(2,150	)
Net Loss per Common Share
Basic and diluted		(0.59	)		(0.86	)		(0.50	)		(0.34	)
Weighted Average Number of Common Shares Outstanding
Basic and diluted		4,918			6,252			5,838			6,351

⁽¹⁾ For the period from January 21, 2021 (inception) through December 31, 2021.

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First Person Ltd.

Consolidated Balance Sheet

	December 31,						June 30,
	2021			2022			2023
							(Unaudited)
	(in thousands, except share amounts)
ASSETS
Current assets:
Cash		559		$	65		$	200
Accounts Receivable, net		-			55			47
Inventory		98			1,013			1,285
Prepaid expenses and other current assets		540			238			214
Deferred offering cost		297			889			1,371
Total current assets		1,494			2,260			3,116
Property and equipment, net		10			988			948
Construction-in-progress		452			-			-
Deposits		3			17			17
Intangible Assets, net		190			132			102
Operating lease right-of-use asset		158			197			169
Total assets		2,307		$	3,594		$	4,353
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable (includes related party balances of $0 as of December 31, 2021; $686 as of December 31, 2022; and $409 as of June 30, 2023)		436		$	2,533		$	2,314
Accrued expenses and other current liabilities		117			278			473
Lease liability, current portion		36			79			71
Convertible debentures		-			-			2,099
Loans and note payable		-			1,098			780
Total current liabilities		589			3,987			5,737
Lease liability, net of current portion		122			118			99
Total liabilities		711			4,105			5,836
Commitments and contingencies(1)		-			-			-
Shareholders’ equity (deficit)
Preferred Shares, no par value – unlimited authorized, 0 shares issued and outstanding, actual, as of December 31, 2021 and 2022; 3,098,971 shares issued and outstanding, actual, as of June 30, 2023		-			-			969
Common shares, no par value - unlimited authorized, 5,804,254 shares issued and outstanding, actual, as of December 31, 2021; 6,351,354 shares issued and outstanding, actual, as of December 31, 2022, and June 30, 2023		4,358			7,081			7,081
Additional paid-in capital		196			694			903
Accumulated deficit		(2,921	)		(8,314	)		(10,456	)
Accumulated other comprehensive loss		(36	)		28			20
Total shareholders’ equity (deficit)		1,596			(511	)		(1,483	)
Total liabilities and shareholders’ equity (deficit)		2,307		$	3,594		$	4,353

⁽¹⁾ See Note 10 to the unaudited consolidated financial statements included elsewhere in this prospectus.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

This Management’s Discussion and Analysis of Financial Condition and Results of Operations includes a number of forward-looking statements that reflect management’s current views with respect to future events and financial performance. You can identify these statements by forward-looking words such as “may,” “will,” “expect,” “anticipate,” “believe,” “estimate,” and “continue,” or similar words. Those statements include statements regarding the intent, belief or current expectations of us and members of our management team as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risk and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements.

The following discussion provides information that management believes is relevant to an assessment and understanding of our past financial condition and plan of operations. The discussion below should be read in conjunction with the consolidated financial statements and related notes thereto included elsewhere in this prospectus.

As used below, unless the context otherwise requires, the terms “First Person,” “the Company,” “we,” “us,” and “our” refer to First Person Ltd., a company incorporated under the laws of Alberta, Canada.

OVERVIEW

First Person Ltd., a company incorporated in Alberta, Canada, is a holding company. We conduct our business and operations through our wholly-owned operating subsidiaries, FP, Inc. and TruMed. FP, Inc. is engaged in the business of formulation and distribution of wholesale food grade functional mushrooms as well as cognitive performance products focusing on the mental performance and wellness markets in the United States. If there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we receive the necessary approvals from the WDOH and the DEA in order to legally produce and research psilocybin in the State of Washington in the United States, then we intend to expand domestic U.S. production to include psychedelic mushrooms and conduct research and development. TruMed is a pre-revenue company in the development stage with substantially no operations. TruMed intends to carry out psilocybin-related research and development solely in Jamaica. Psilocybin is not an illegal drug under the Jamaica Drug Act. Therefore, research involving psychedelic mushrooms is not in contravention of the laws of Jamaica and does not require any permit or authorization from the regulatory authorities in Jamaica.

Since our inception, we have devoted substantially all of our efforts to business and product developments relating to the operations of a functional mushroom farm in Olympia, Washington, and to the development of our own proprietary formulations of cognitive performance products containing functional mushrooms.

COVID-19: Overview of Impacts

While the recent COVID-19 pandemic did not have a significant impact on our financial performance, it had the following impacts on our business operations during the year ended December 31, 2022:

● The global supply chain issues caused by the COVID-19 pandemic impacted our ability to obtain packaging materials for our products. We placed initial orders for packaging samples from multiple suppliers in China, but delivery of those samples was delayed. Due to the supply chain issues, we delayed the launch of our consumer packaged goods.

● The increased restrictions on international travel due to the COVID-19 pandemic impacted our ability to operate. We are a Canadian company with operations in the United States, and certain members of our management team are based in Canada while others are based in the United States. The enhanced restrictions on international travel inhibited the ability of members of management to travel to, and personally oversee, operations in other countries. Members of management were also unable to hold in-person meetings with each other or investors, and transitioned to virtual meetings.

● Some of our employees contracted COVID-19, resulting in quarantines of those individuals and a decrease in workforce person-hours.

While our operations have not been materially impacted in the six months ended June 30, 2023, cases of COVID-19 and other respiratory diseases could increase, the severity of which could provoke government lockdowns and impact our existing supply chain by delaying the delivery of materials used in our products. To the extent lockdowns are used to combat COVID-19 or other pandemics in the future, we expect they would contribute to further disruptions in the global supply chain, which may materially and negatively impact both our future net sales and profitability. Given the unpredictable nature of COVID-19 and the response to it, we cannot predict the impact on future periods at this time.

Interview Statements

Information about the Company and statements made by Chris L. Claussen, one of our directors and our Chief Innovation Officer, Joseph Claussen, our Director of Business Development, Cory J. Rosenberg, our Chairman, Chief Executive Officer, and President, and Dom D’Agostino, our scientific advisor, during fifteen podcast interviews were uploaded to YouTube and links to nine of such Podcasts were temporarily posted to our new Company website. The Podcasts that were temporarily linked to the Company website were created between March 29, 2022 and February 2, 2023. In addition, information about the Company and statements made by the Claussens were published in an online article appearing on Bloomberg on July 21, 2022 and a television interview broadcast by NewsNation on October 17, 2022, neither of which were linked to our website. The statements made by the Claussens, Cory J. Rosenberg, and Dom D’Agostino in the Interviews were predominately focused on their personal experiences and how they were inspired to become involved in the Company’s business. The Company was not involved in any way in the preparation of the statements made by the Claussens, Cory J. Rosenberg, or Dom D’Agostino, and all links to the Podcasts have since been deleted from the Company website and all of the Podcasts have been removed from YouTube. The Podcasts were conducted by “The Story of a Brand”; “That Gives Me Anxiety”; “JJ Flizanes” (published on Ms. Flizane’s podcasts: “Nutrition & Alternative Medicine”, “Fit 2 Love”, and “Spirit Purpose & Energy”); “Mycopreneur”; “Koncrete”; “Justin Caviar”; “Humble and Hungry”; “Elevate Your Brand”; “Bliss Project”; “Ashley On”; “Riderflex”; “Let’s Talk Plant Medicine”; “Spiritual Boss Babe”; “Vital Science”; and “Finding Genius”. None of the entities or persons who conducted or published the Interviews are affiliated with the Company or any other offering participant. No payment was made nor was any consideration given to the hosts or anyone else involved in the production of the Interviews by or on behalf of the Company or any other offering participant in connection with the Interviews. You should not consider the statements in the Interviews, as set forth in Exhibit 99.1 to the registration statement of which this prospectus forms a part, in making your investment decision. You should make an investment decision only after carefully evaluating all of the information contained in this prospectus, including the Company’s responses to the statements in the Interviews, as set forth in Exhibit 99.1 to the registration statement of which this prospectus forms a part.

Certain claims regarding our products and business made by the Claussens, Cory J. Rosenberg, or Dom D’Agostino in the Interviews are inaccurate, unsubstantiated, and contradict the claims made in the registration statement of which this prospectus is a part. As a result of the foregoing, the Interviews could be determined not to be in compliance for a registered securities offering under Section 5 of the Securities Act. If the statements or disclosures in the Interviews are determined by a court to be a violation by us of Section 5 of the Securities Act, we could have a contingent liability. Any liability would depend upon the number of Common Shares purchased in this offering. If a claim were brought by any investors in this offering and a court were to conclude that we violated Section 5 of the Securities Act, then those investors might have rescission rights and we (and the selling shareholders) could be required to repurchase the shares sold to them, at the original purchase price, plus statutory interest from the date of purchase, for claims brought during a period of one year from the date of their purchase of our Common Shares. We could also incur considerable expense in contesting any such claims. Further, if the Interviews are deemed to be in violation of Section 5 of the Securities Act, then the SEC and/or relevant state regulators could impose monetary fines or other sanctions under relevant federal and state securities laws.

Free Writing Prospectus

Information about the Company and statements made by Chris L. Claussen, one of our directors and our Chief Innovation Officer, and Joseph Claussen, our Director of Business Development, were published in an online publication by reMind Media on September 20, 2022. The statements attributed to the Claussens in the Article were made during an interview by reMind Media focused on how the Claussens’ personal experiences inspired them to become involved in our business. The Company was not involved in any way in the interview or the preparation of the statements made by the Claussens. The Article was prepared by reMind Media, which is not affiliated with the Company. No payment was made nor was any consideration given to reMind Media by or on behalf of the Company or any other offering participant in connection with the publication of the Article. Upon becoming aware of the Article and the inclusion of certain statements relating to the Company and the Offering, we requested the Article be deleted from reMind Media’s website. As of September 22, 2022, the Article was no longer available on reMind Media’s website or any of its other publications. On September 26, 2022, we filed an issuer free writing prospectus with the SEC pursuant to Rule 433(f) under the Securities Act. The Free Writing Prospectus includes the full text of the Article.

The Article contained the following inaccurate or unsubstantiated statements:

● The Article stated that we have “two pending patents related to a natural psilocybin extract and a novel combination of psilocin and ketones, which [the Company] developed at their lab in Jamaica.” We filed two provisional patent applications, which help protect inventions for a twelve-month period while a formal patent application is being filed. The patent process can take up to twenty-four months or longer to complete and can be challenged during the process. At this time, we cannot state whether the patent applications will be approved, refused, and/or ultimately registered. The innovations were developed by the Claussens, rather than the Company, and were not developed in our lab in Jamaica. Both provisional patent applications were filed in 2021, after the Claussens assigned to us their interests in the innovations. We did not acquire TruMed or have Jamaican operations until 2022, which was after the provisional patent applications were filed. Investors should review the information regarding our intellectual property in “Business—Intellectual Property” beginning on page 60 of this prospectus, and elsewhere in this prospectus, and not the statements made in the Article.

48

● When discussing his family’s personal experiences with psilocybin, Joseph Claussen stated in the Article that “there’s no toxicity”. Additionally, Chris L. Claussen stated that “psilocybin had the ability to create some new neural networks,” “our brains are functioning at the highest levels that they ever have,” and that “[w]e know that once you get Alzheimer’s there no cure for it. But we also know that you can prevent it by keeping your brain healthy, to always be creating new neural connections, and maintain neuroplasticity as you age and avoid going into cognitive decline.” We do not intend to market any of our products for medical use. Our consumer products are required to include a disclaimer that they have not been evaluated by the FDA and are not intended to diagnose, treat, cure, or prevent any disease. We have not conducted clinical studies with respect to the claims made by the Claussens. We cannot confirm that psilocybin will create new neural networks or can prevent the onset of Alzheimer’s disease or cognitive decline. We cannot provide any assurance that any persons will have the same outcomes as Chris L. Claussen, Joseph Claussen, or their father, or that psilocybin was a cause of such outcomes. Investors should review the information regarding our products in the section titled “Business” beginning on page 54 of this prospectus, and elsewhere in this prospectus, and not the statements made in the Article.

● When referring to our products, Joseph Claussen stated in the Article that our products “contain curated amounts of Lion’s Mane and cordyceps — the cordyceps is important because it has an MAO inhibitor, so it provides a longer duration.” Additionally, Chris L. Claussen stated in the Article that “We think our functional mushroom products work wonderfully on their own. But they were definitely designed for a microdosing regime. We deliberately engineered them to stay away from the serotonin receptors. A lot of other nootropics contain everything and the kitchen sink, which will flood your serotonin receptors and interfere with your microdosing. We didn’t want to do that. We targeted our functionals to the dopamine, oxytocin, and GABA receptors. We left serotonin alone, so the psilocybin could do its work.” Our direct-to-consumer brand of supplements contain functional mushrooms and a curated blend of nutraceuticals. Not all of our supplements contains Lions Mane and/or Cordyceps. Nutraceuticals are dietary supplements and are regulated by the FDA. These consumer products do not require FDA approval prior to marketing and distribution, but are required to include a disclaimer that they have not been evaluated by the FDA and are not intended to diagnose, treat, cure, or prevent any disease. We have not conducted clinical studies with respect to the claims made by the Claussens. We cannot confirm that cordyceps provides longer duration or has an MAO inhibitor, that there are any characteristics of difference mushrooms that may be beneficial, or that targeting dopamine, oxytocin, and GABA receptors may be possible or beneficial. Investors should review the information regarding the Company’s direct-to-consumer brand of supplements in the section titled “Business” beginning on page 54 of this prospectus, and elsewhere in this prospectus, and not the statements made in the Article.

● When referring to studies that are anticipated to be performed by Charles River Labs, Chris L. Claussen stated in the Article that “[w]e’re really excited about this. We believe there’s a real potential to improve the efficacy of psilocin. Our scientific advisor Dom D’Agostino, a pioneer in the science of the health benefits of the ketogenic diet, is working with us to prove our hypothesis.” Additionally, Joseph Claussen stated in the Article that “[w]hen proven, the improvements in neurogenesis and synaptogenesis could be very powerful.” Charles River Labs is an independent research lab in Canada, with which we have entered into a statement of work to conduct two studies involving psilocybin. Charles River Labs obtained the necessary import permits from Health Canada—a department of the Government of Canada responsible for national health policy—and the Company does not need to acquire any approvals in connection with such research. After Charles River Labs obtains the necessary components for the tests, then Charles River Labs will commence two studies pursuant to the terms of the statement of work, with research and development efforts focused on isolating and studying the individual psychoactive components of mushrooms. Investors should review the information regarding our statement of work with Charles River Labs in the section titled “Business” beginning on page 54 of this prospectus, and elsewhere in this prospectus, and not the statements made in the Article. We have not established objectively that there is a potential to improve the efficacy of psilocybin.

● When referring to the state of our business, Joseph Claussen stated in the Article that “[i]t’s been amazing. We launched in March, and we sold out within three months. We thought we had enough product to last the year, but we ran out. And it’s mostly been organic word of mouth. We’ve done some marketing, but it’s really amazing how rapidly people have found us. Of course, we’re riding a very nice wave of interest in mushrooms right now, so that’s been fortunate.” We launched our direct-to-consumer brand of supplements in March 2022, but the Company was formed in January 2021. In July 2022, we began taking pre-orders only for new purchases, in order to ensure that we maintained sufficient inventory to fulfill existing subscription orders. We operate our business in a new industry and market. There is no assurance that the industry and market will continue to exist and grow as currently estimated or function and evolve in the manner consistent with management’s expectations and assumptions. The mushroom market may decline or mushrooms may fail to achieve substantially greater market acceptance than they currently enjoy. As a result of changing customer preferences, products may attain financial success for a limited period of time. There is no assurance that we will be able to achieve brand awareness in any of our target regions. Investors should review the information regarding our industry and market in the section titled “Business” beginning on page 54 of this prospectus, the section titled “Risk Factors” beginning on page 11 of this prospectus, and elsewhere in this prospectus, and not the statements made in the Article.

● When referring to our business and mission, Chris L. Claussen stated in the Article that “[w]e see ourselves as a brain health company. Our mission is to improve people’s brains. This makes us more than a functional mushroom company, and more than a psychedelics company. We don’t want people to ever fall off the cliff as they get older. We want people to just get better and better. Everything we do is in support of that.” We do not intend to market any of our products for medical use. Our consumer products are required to include a disclaimer that they have not been evaluated by the FDA and are not intended to diagnose, treat, cure, or prevent any disease. Investors should review the information regarding our products in the section titled “Business” beginning on page 54 of this prospectus, and elsewhere in this prospectus, and not the statements made in the Article.

Certain claims regarding our products and business made by the Claussens in the Article are inaccurate, unsubstantiated, and contradict the claims made in the registration statement of which this prospectus is a part. Any statements or disclosures in the Article that did not comply with, or that exceeded the scope permissible under, Rule 134 under the Securities Act, may not be entitled to the safe-harbor provided by Rule 134. As a result, the Article could be determined not to be in compliance for a registered securities offering under Section 5 of the Securities Act. If the statements or disclosures in the Article are determined by a court to be a violation by us of Section 5 of the Securities Act, then we could have a contingent liability. Any liability would depend upon the number of Common Shares purchased in this offering. If a claim were brought by any investors in this offering and a court were to conclude that we violated Section 5 of the Securities Act, then those investors might have rescission rights and we (and the selling shareholders) could be required to repurchase the shares sold to them, at the original purchase price, plus statutory interest from the date of purchase, for claims brought during a period of one year from the date of their purchase of our Common Shares. We could also incur considerable expense in contesting any such claims. Further, if the Article is deemed to be a violation of Section 5 of the Securities Act, the SEC and/or relevant state regulators could impose monetary fines or other sanctions under relevant federal and state securities laws.

OPERATING SUBSIDIARIES

As of June 30, 2023, we have two operating subsidiaries: FP, Inc. and TruMed.

49

First Person, Inc.

FP, Inc. is engaged in the business of formulation and distribution of wholesale food grade functional mushrooms as well as cognitive performance products focusing on the mental performance and wellness markets in the United States. If there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we receive the necessary approvals from the WDOH and the DEA in order to legally produce and research psilocybin in the State of Washington in the United States, then we intend to expand domestic U.S. production to include psychedelic mushrooms and conduct research and development.

TruMed Limited

TruMed was formed on April 30, 2019, and is focused on research and development involving psilocybin mushrooms. On February 15, 2022, we acquired all of the issued and outstanding shares of common stock of TruMed in exchange for an aggregate purchase price of up to $750,000, pursuant to the terms of the Share Purchase Agreement entered into with TruMed and each of the TruMed Sellers. See “Business—Overview” beginning on page 54 of this prospectus for additional information. TruMed is a pre-revenue company in the development stage with substantially no operations. TruMed intends to carry out psilocybin-related research and development in Jamaica. Psilocybin is not an illegal drug under the Jamaica Drug Act. Therefore, research involving psychedelic mushrooms is not in contravention of the laws of Jamaica and does not require any permit or authorization from the regulatory authorities in Jamaica. TruMed intends to cultivate and study psychedelic mushrooms in Jamaica, and we plan to use a portion of the proceeds of this offering to establish TruMed’s operations in Jamaica. See “Use of Proceeds” on page 42 of this prospectus.

BASIS OF PRESENTATION

The unaudited interim condensed consolidated financial statements for the periods reflect our financial position, results of operations, and cash flows as of June 30, 2023. The financial statements have been prepared using the historical basis for the assets and liabilities and results of operations.

CRITICAL ACCOUNTING POLICIES

Our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, and expenses and the disclosure of contingent assets and liabilities in our financial statements. Critical accounting policies are those that require application of management’s most subjective or complex judgments, often as a result of matters that are inherently uncertain and may change in subsequent periods. On an ongoing basis, we evaluate our estimates and judgments, including those related to stock-based compensation expense, the Company’s ability to continue as a going concern, and income taxes and related valuation allowance. We base our estimates on historical experience, known trends and events, and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values 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 Note 3 to our audited financial statements included elsewhere in this prospectus, we believe the following accounting policies are the most critical to the judgments and estimates used in the preparation of our financial statements.

Income Taxes

It is possible that we could be treated as a U.S. corporation for U.S. federal income tax purposes under Section 7874 of the Code, and be subject to U.S. federal income tax. However, for Canadian tax purposes, we expect, regardless of any application of Section 7874 of the Code, to be treated as a Canadian resident company (as defined in the Income Tax Act (Canada), as amended) for Canadian income tax purposes. If we are treated as a U.S. corporation for U.S. federal income tax purposes, then we will be subject to taxation both in Canada and the United States, however, even in such situation, it is our expectation that our activities will be conducted in such a manner that income from operations will not be subjected to double taxation. Notwithstanding the foregoing, we do not expect to Section 7874 of the Code to apply to us to cause the Company to be treated as a U.S. corporation for U.S. federal income tax purposes. 

FP, Inc. accounts for income taxes in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740-10, Accounting for Uncertainty in Income Taxes. The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain tax position will not be recognized if it has less than 50 percent likelihood of being sustained.

FP, Inc. is a Delaware C corporation and is subject to taxation and files income tax returns in the United States. Since inception, FP, Inc.’s tax returns are subject to examination by taxing authorities, and no examinations are currently pending.

As of December 31, 2022 and 2021, FP, Inc. does not have any unrecognized tax benefits. FP, Inc. does not anticipate any material changes to its unrecognized tax benefits within the next twelve months.

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Share-based Compensation

In June 2018, the FASB issued ASU Topic 2018-07, Compensation – Stock Compensation (Topic 718) – Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). The amendments in ASU 2018-07 expand the scope of FASB ASC Topic 718, Compensation – Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. Upon adoption, entities shall be required to apply FASB ASC Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. FASB ASU 2018-07 is effective for private entities for fiscal years beginning after December 15, 2019, with early adoption permitted, but no earlier than an entity’s adoption date of FASB ASC Topic 606, Revenue from Contracts with Customers. We adopted FASB ASC 2018-07 effective January 21, 2021 (date of inception). In accordance with ASU 2018-07, we record our share-based payments at the estimated grant date fair value over the service period for equity-classified awards granted to nonemployees in the same period and in the same manner as if we paid cash for the goods or services. In addition, we have elected to account for forfeitures when they occur in accordance with FASB ASC 718-10-35-3. The calculation of expected term is based on the “simplified” method described in Staff Accounting Bulletin (“SAB”) Topic 14, Share-Based Payment. SAB Topic 14 provides a simplified method for estimating the expected term for “plain vanilla” options if a company does not have sufficient appropriate exercise data on which to base its own estimate or exercise data relating to employees of comparable companies is not easily obtainable. The risk-free interest rate is based on the U.S. Treasury yield at the date of grant for an instrument with a maturity that is commensurate with the expected term of the stock options. The dividend yield is zero since we have never paid cash dividends on our Common Shares and have no present intention to pay cash dividends. Options granted under the Incentive Plan generally vest based on three years of continuous service and have five-year contractual terms.

We estimate the fair value of each stock option award on the date of grant using a Black-Scholes option-pricing model.

Estimates used in the Black-Scholes option-pricing model are based, in part, on the price at which our Common Shares were sold during private placement offerings, and are not considered highly complex or subjective. Estimates will not be necessary to determine the fair market value of new awards once the underlying shares begin trading after this offering.

Revenue Recognition

We recognize revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration that we expect to be entitled to in exchange for those goods or services. In order to recognize revenue under FASB ASU 2014-09, Revenue from Contracts with Customer, we apply the following five steps: (i) identification of customer contracts, (ii) identification of the performance obligation(s) in the contract to transfer goods or provide services to a customer, (iii) determination of the transaction price we expect to be entitled to in exchange for transferring promised goods or services to a customer, (iv) allocation of the transaction price to the performance obligation(s) in the contract, and (v) recognition of revenue when or as we satisfy the performance obligation(s).

Our contracts with customers for the cognitive supplements and other related products consist of single performance obligations. The performance obligation in a contract is determined based on each individual order and the respective quantities shipped, with revenue being recognized at a point in time when obligations under the terms of the agreement are satisfied. This generally occurs with the transfer of control when the product is shipped to the customer. The amount of revenue recognized is reduced for estimated returns and other customer credits, such as discounts and rebates, based on the expected value to be realized. Payment terms are consistent with terms standard to the markets we serve. Revenue received from shipping and handling fees is reflected in net sales. Shipping and handling costs are included in selling, general and administrative expenses at the time revenue is recognized for the related goods. We have also elected to recognize revenue net of sales taxes and similar taxes that are imposed on and concurrent with revenue producing activities. We have elected to use the practical expedient for significant financing components allowed under ASU 2014-09, such that if the period between revenue recognition and cash receipt for a particular contract is expected to be a year or less, no interest income is recognized and the full amount of revenue appropriate under the contract is recognized at the time the performance obligation is met.

COMPONENTS OF OUR RESULTS OF OPERATIONS

Revenue. Since our inception, we have devoted substantially all of our efforts to business and product developments relating to the operations of our functional mushroom farm in Olympia, Washington, and to the development of our own proprietary formulations of cognitive performance products containing functional mushrooms. We launched our direct-to-consumer line of highly curated cognitive supplements in March 2022. For the six months ended June 30, 2023, we generated net revenues of $3.89 million from direct-to-consumer sales of cognitive supplements through our website, www.getfirstperson.com, compared to $1.08 million for the six months ended June 30, 2022. The increase in revenue was due in part to having a full six months of product sales during the first half of 2023, whereas our products were not available for sale until nearly the end of the first quarter of 2022. Our net revenues for the year ended December 31, 2022, was $4.33 million. We did not generate any revenues during the period from January 21, 2021 (date of inception), through December 31, 2021 (the “period ended December 31, 2021”), because the launch of our direct-to-consumer cognitive supplements did not occur until March 2022. Revenues increased throughout 2022 and 2023 as a result of focused advertising and marketing efforts and an increase in the number of repeat customers.

Cost of Goods Sold. For the six months ended June 30, 2023, our costs of goods sold was $1.13 million, compared to $365 thousand for the six months ended June 30, 2022. Our increased costs of goods sold was due to the launch of our first product, which did not occur until March 2022. We generated no revenues prior to March 2022. For the year ended December 31, 2022, our cost of goods sold was $1.41 million. We declared no costs of goods sold during the period ended December 31, 2021, because we generated no revenues during this period and the launch of our direct-to-consumer cognitive supplements did not occur until March 2022

Operating Expenses. For the six months ended June 30, 2023, our operating expenses were $4.34 million, compared to $3.64 million for the six months ended June 30, 2022, $8.23 million for the year ended December 31, 2022, and $2.92 million for the period ended December 31, 2021. Our operating expenses consist of selling, general and administrative, depreciation and amortization, and foreign currency transaction losses or gains. Selling, general and administrative expenses increased to $4.25 million for the six months ended June 30, 2023, from $3.63 million for the six months ended June 30, 2022. This increase was primarily the result of an increase in marketing expenses due to having a full six months of product sales during the first half of 2023, whereas our products were not available for sale until nearly the end of the first quarter of 2022 (digital advertising spend accounts for approximately $150 thousand to $330 thousand per month in selling, general and administrative). Our depreciation and amortization increased during the first quarter of 2023 ($46 thousand) compared to the fourth quarter of 2022 ($16 thousand) because we completed construction of our facility in Olympia, Washington, and began depreciation as of January 1, 2023. Following the completion of this offering, we expect to incur additional expenses as a result of operating as a public company, including costs to comply with the rules and regulations applicable to companies listed on a national securities exchange, costs related to compliance and reporting obligations pursuant to the rules and regulations of the SEC, and higher expenses for insurance, investor relations, and professional services. We expect our selling, general and administrative expenses will increase as our business grows.

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Interest Income. For the six months ended June 30, 2023, we recorded interest expense of $569 thousand and interest income of $1 thousand, compared to interest expense of $0 and interest income of $178 for the six months ended June 30, 2022. For the year ended December 31, 2021, we recorded interest expense of $88 thousand, compared to $0 interest income for the period ended December 31, 2021. Interest expense increased during 2022 and the first half of 2023 because we entered into several merchant financing agreements and a note payable related to the purchase of TruMed and issued convertible secured promissory notes in the aggregate principal amount of $3.1 million.

Provision for Income Taxes. For the period from January 21, 2021 (date of inception) through December 31, 2021, and the year ended December 31, 2022, we had no current or deferred provision for income taxes. As of December 31, 2022, $4.43 million (2021 - $534 thousand) of U.S. federal net operating losses, $4.43 million of U.S. state net operating losses, and $2.53 million (2021 - $943 thousand) of Canadian net operating losses were available to offset our future taxable income. The U.S. federal net operating losses will carry forward indefinitely. The Canadian net operating losses shall begin to expire in 2041. The U.S. state net operating losses generally start expiring in 20 years.

Other Comprehensive Loss, net of provision for income tax. Unrealized gains or losses resulting from foreign currency transactions and translation adjustments are reported as an element of other comprehensive loss, net of provision of income taxes. Our foreign currency translation gains amounted to $8 thousand for the six months ended June 30, 2023, compared to losses of $11 thousand for the six months ended June 30, 2022. Our foreign currency translation gains amounted to $64 thousand for the year ended December 31, 2022, compared to losses of $36 thousand for the period ended December 31, 2021.

RESULTS OF OPERATIONS

Comprehensive Income (Loss) First Person Ltd.

Consolidated

The following table summarizes our results of operations for the periods indicated:

	For the year ended December 31,						For the six months ended June 30,
	2021(1)			2022			2022			2023
							(Unaudited)			(Unaudited)
	(in thousands)
Revenues	$	-		$	4,334		$	1,080		$	3,895
Cost of Goods Sold		-			1,406			365			1,128
Gross profit		-			2,928			715			2,766
Operating expenses		2,921			8,233			3,642			4,341
Other income (expense)		0			(88	)		0			(567	)
Provision for income taxes		-			-			-			-
Other comprehensive gain (loss), net of provision for income tax		(36	)		64			(11	)		8
Comprehensive loss	$	(2,957	)	$	(5,329	)	$	(2,938	)	$	(2,150	)

⁽¹⁾ For the period from January 21, 2021 (inception) through December 31, 2021.

Comprehensive income (loss). For the six ended June 30, 2023, we incurred comprehensive losses in the amount of $2.15 million, compared to $2.94 million for the six months ended June 30, 2022, $5.33 million for the year ended December 31, 2022, and $2.96 million for the period ended December 31, 2021.

Liquidity and Capital Resources

General

We satisfy our cash requirements primarily through cash provided by our equity and debt financing activities. The following table summarizes our cash flows for the periods indicated:

	For the year ended December 31,						For the six months ended June 30,
	2021(1)			2022			2022			2023
							(Unaudited)			(Unaudited)
	(in thousands)
Cash flows (used in) provided by:
Operating activities	$	(2,950	)	$	(3,562	)	$	(2,410	)	$	(2,126	)
Investing activities		(657	)		(395	)		(402	)		(8	)
Financing activities		4,198			3,399			2,673			2,283
Effect of exchange rate changes on cash and cash equivalents		(32	)		64			(11	)		(14	)
Net (decrease) increase in cash and cash equivalents	$	559		$	(494	)	$	(149	)	$	135

⁽¹⁾ For the period from January 21, 2021 (inception) through December 31, 2021.

Operating Activities. Our cash flow from operations varies from quarter to quarter and, we expect, from year to year, depending on our operating results and the timing of operating cash receipts and payments, specifically trade accounts payable. Cash flows were used in operating activities based on these factors amounting to approximately $2.13 million for the six months ended June 30, 2023, compared to $2.41 million for the six months ended June 30, 2022, $3.56 million for the year ended December 31, 2022, and $2.95 million for the period ended December 31, 2021.

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Investing Activities. For the six months ended June 30, 2023, our capital expenditures were approximately $8 thousand, compared to $402 thousand for the six months ended June 30, 2022, $395 thousand for the year ended December 31, 2022, and $657 thousand for the period ended December 31, 2021.

Financing Activities. For the six months June 30, 2023, our cash flows from financing activities were approximately $2.28 million, compared to $2.67 million for the six months ended June 30, 2022, $3.40 million for the year ended December 31, 2022, and $4.20 million for the period ended December 31, 2021. During the six months ended June 30, 2023, we issued convertible secured promissory notes in the aggregate principal amount of $3,098,978 and 3,098,971 Series 1 Shares for gross proceeds of approximately $2.85 million. As of September 12, 2023, the Company has convertible secured promissory notes in the aggregate principal amount of $3,338,109 outstanding. Each convertible secured promissory note is payable in accordance with the following schedule: (i) if a Qualifying Transaction occurs 30 days or more before the date that is one year after the date of such convertible secured promissory note, then (a) 50 percent of the principal amount is payable on the thirtieth calendar day after the date of the first Qualifying Transaction occurring after the date of such convertible secured promissory note; and (b) the remaining 50 percent of the principal amount is payable on the earlier to occur of (1) the ninetieth calendar day after the date of the first Qualifying Transaction occurring after the date of such convertible secured promissory note, or (2) the date that is one year after the date of such convertible secured promissory note, and (ii) if a Qualifying Transaction does not occur, or occurs less than 30 days, before the date that is one year after the date of such convertible secured promissory note, then 100 percent of the principal amount is payable on the date that is one year after the date of such convertible secured promissory note. All of the convertible secured promissory notes were issued between January 3, 2023, and September 7, 2023. The Primary Offering is expected to qualify as a Qualifying Transaction under the terms of the convertible secured promissory notes. The principal amount of each convertible secured promissory note may be prepaid at any time at the Company’s sole election without penalty. Interest on the principal amount outstanding and remaining from time to time on each convertible secured promissory note accrues at the rate of 8 percent per annum. Interest is payable in cash on a quarterly basis on the last day of each quarter, which commenced with the first quarter ending March 31, 2023. Interest is calculated on the basis of a 360-day year consisting of twelve, 30-day months. Each holder of a convertible secured promissory note may elect, in such holder’s sole discretion, to have the interest payable on the principal amount to be paid-in-kind. In the event of such election, the interest is calculated at a rate of 10 percent per annum, and such interest is added to the outstanding principal amount on the applicable interest payment date. Any such paid-in-kind interest is added to and increases the principal amount for all purposes under the convertible secured promissory note. Each convertible secured promissory note, including the outstanding principal amount together with all applicable accrued and unpaid interest thereunder, is convertible, in whole or in part, into Common Shares at the option of the holder of such convertible secured promissory note (subject to certain limitations set forth in the convertible secured promissory note) at a conversion price equal to $6.00 per Common Share (subject to certain adjustments set forth in the convertible secured promissory note). On May 18, 2023, the Company entered into a merchant loan agreement with WebBank, on behalf of Shopify Inc., for proceeds of $410,000 and a repayment amount of $451,000 (cost of borrowing $41,000). The repayments are made to Shopify Inc. at a rate of 17% of the Company’s daily sales amounts until the repayment amount has been fully settled. On June 8, 2023, the Company entered into a merchant loan agreement with Fundonatic, for proceeds of $225,000 and a repayment amount of $292,500 (cost of borrowing $67,500). Daily repayments in the amount of $1,950 are made to Fundonatic. On June 8, 2023, the Company entered into a merchant loan agreement with Click Capital Group LLC, for proceeds of $225,000 and a repayment amount of $292,500 (cost of borrowing $67,500). Daily repayments in the amount of $1,950 are made to Click Capital Group LLC. On July 19, 2023, the Company entered into a merchant loan agreement with Cloudfund LLC, for proceeds of $199,774 and a repayment amount of $276,040 (cost of borrowing $76,266). The repayments are made to Cloudfund LLC at a rate of 4% of the Company’s daily receipts for the sale of goods and services until the repayment amount has been fully settled. On July 21, 2023, the Company entered into a merchant loan agreement with WebBank, on behalf of Shopify Inc., for proceeds of $260,000 and a repayment amount of $283,400 (cost of borrowing $23,400). The repayments are made to Shopify Inc. at a rate of 17% of the Company’s daily sales amounts until the repayment amount has been fully settled. On August 31, 2023, the Company entered into a merchant loan agreement with Curve Capital LLC, for proceeds of $225,000 and a repayment amount of $306,000 (cost of borrowing $81,000). The repayments are made to Curve Capital LLC at a rate of 6.12% of the Company’s daily receivables until the repayment amount has been fully settled.

During the year ended December 31, 2022, we issued Common Shares and received loans for net proceeds of $3,398,989, compared to net proceeds of $4,198,020 for the issuance of Common Shares and warrants to purchase Common Shares during the period ended December 31, 2021. On August 8, 2022, we entered into a line of credit agreement line of credit for a maximum draw amount of $200,000 with Celtic Bank Corporation, which is subject to a draw fee of 3% and an interest rate of 1.93% per month. On August 8, 2022, we entered into a merchant loan agreement with WebBank, on behalf of Shopify Inc., for proceeds of $250,000 and a repayment amount of $282,500 (cost of borrowing of $32,500). The repayments are made to Shopify Inc. at a rate of 12% of our daily sales amounts until the repayment amount has been fully settled. On November 8, 2022, we received additional proceeds of $355,000, for which the repayment amount is $401,150 (cost of borrowing of $46,150). The repayments for the additional proceeds are made to Shopify Inc. at a rate of 15% of our daily sales amounts until the repayment amount has fully been settled. On October 8, 2022, we entered into a revenue purchase agreement whereby Pearl Beta Funding, LLC provided us with cash proceeds of $245,000. The terms require that we make weekly payments of $8,208 (which amount may be periodically adjusted to approximate 10% of sales) until a total of $328,300 has been repaid. On December 20, 2022, we entered into a bridge loan with Cloudfund LLC for cash proceeds of $200,000. The repayments will be made through daily payments of $2,092 until the total $272,000 loan is repaid. On December 31, 2022, we entered into a loan agreement with Imperial PFS Canada for financing of our insurance policy. The repayments will be made through nine monthly payments of $20,736.

Availability of Additional Funds

Based upon our working capital deficiency and our significant losses, we require additional funds to meet our obligations and sustain our operations. These conditions indicate that there is substantial doubt about our ability to continue as a going concern.

Our consolidated financial statements included elsewhere in this prospectus have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which contemplate our continuation as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The financial statements do not include any adjustment that might result from the outcome of this uncertainty.

Other Sources and Uses of Resources

Where appropriate, we evaluate strategic investments and acquisitions to complement, expand, and/or enter into new businesses. In considering acquisitions and investments, we search for opportunities to profitably grow our existing businesses, to add qualitatively to the range of businesses in our portfolio and to achieve operational synergies. At this time, we cannot guarantee that we will be presented with acquisition opportunities that meet our return on investment criteria, or that our efforts to make acquisitions that meet our criteria will be successful.

We plan to use the net proceeds we receive from this offering for the following purposes: most heavily for general working capital and to grow our initial product line of three nutraceutical consumer facing products, as well as supplemental marketing spend for these newly created products and for brand development; additionally, for the establishment and expansion of operations in Jamaica, further research and development and product innovation, and the expansion of growing and production capabilities in Olympia, Washington.

We do not have any agreements at this time to potentially acquire other entities or businesses. The foregoing represents our current intentions based upon our present plans and business conditions to use and allocate the net proceeds of this offering. However, the nature, amounts and timing of our actual expenditures may vary significantly depending on numerous factors. As a result, our management has and will retain broad discretion over the allocation of the net proceeds from this offering. We may find it necessary or advisable to use the net proceeds from this offering for other purposes, and we will have broad discretion in the application of net proceeds from this offering. To the extent that the net proceeds we receive from this offering are not immediately used for the above purposes, we intend to invest our net proceeds in short-term, interest-bearing bank deposits or debt instruments.

Dividends

In light of our current growth initiatives, the Board of Directors determined to continue its policy of not making payments of cash dividends. Projects that have already been approved and commenced are placing demands on our resources, and management and the Board of Directors determined that it was in the best interests of the shareholders to utilize available cash resources for investment in these promising and exciting growth opportunities. This position may continue depending on the timing of projects, the cash generation of our operations, and any financing that we may consummate. Decisions as to the payment of dividends in future periods will depend on the financial position, results of operations, prospects, and current and projected competing demands for cash resources at the relevant time. We continue our position of prudent and conservative cash management and we are committed to using all of our resources to maximize shareholder value, balancing short-, medium-, and long-term interests.

Foreign Currency Risk

Foreign exchange risk arises from the changes in foreign exchange rates that may affect the fair market value or future cash flows of our financial assets or liabilities. The following table summarizes our foreign exchange balances held in Canadian dollars as of the dates indicated:

	December 31,				June 30,
	2021		2022		2022		2023
					(Unaudited)		(Unaudited)
Foreign Exchange Balances Held in CAD$	(in thousands)
Cash	$	651	$	7	$	258	$	19
Accounts receivable		-		-		-		-
Bank loans		-		-		-		-
Total	$	651	$	7	$	258	$	19

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BUSINESS

Overview

LEIIO Wellness Ltd. (“Wellness”), our predecessor by name change, was incorporated on January 21, 2021 (date of inception), under the laws of the province of Alberta, Canada. Wellness’s now wholly-owned subsidiary, LEIIO Inc. (“LEIIO”), was incorporated the next day, on January 22, 2021, in the state of Delaware, United States.

On February 17, 2021, Wellness entered into an agreement and plan of merger (the “Plan of Merger”). Pursuant to the Plan of Merger, a merger between LEIIO and LEIIO Merger Sub, Inc., a Delaware corporation wholly-owned by Wellness (“Merger Sub”), occurred. Immediately prior to the merger, and by virtue of the merger, each share of LEIIO issued and outstanding converted into 0.31111112 Common Shares of Wellness (each, a “Wellness Share”). The consideration in the merger consisted of 2,800,000 Wellness Shares, with 700,000 Wellness Shares issued to each of three current members of our management (Cory J. Rosenberg, Chris L. Claussen, and Joseph Claussen) and one former member of our management (Stephen Leider) (the “Wellness Share Recipients”). The first 175,000 Wellness Shares issued to each of the Wellness Share Recipients were issued at a price of CAD$0.05 per share and the remaining Wellness Shares were issued at a price of CAD$0.20 per share. The total consideration in the merger amounted to CAD$455,000. By virtue of the merger, each share of Merger Sub issued and outstanding immediately prior to the effective time of the merger converted into one share of LEIIO. Immediately after the merger, the surviving corporation, LEIIO became a wholly-owned subsidiary of Wellness and the owners of LEIIO obtained control of Wellness, resulting in a reverse acquisition.

On October 4, 2021, LEIIO changed its name to “First Person, Inc.”

On December 15, 2021, Wellness held a special meeting of its shareholders at which the following actions were taken:

● passed an ordinary resolution appointing Marcum LLP as auditor of Wellness for the ensuing year and authorizing the Board of Directors to determine the remuneration to be paid to the auditor;

● passed an ordinary resolution fixing the number of directors to be elected at five;

● elected Gail D. Hamilton Azodo, Chris L. Claussen, Ariel Fainsod, Rosema J. Nemorin, and Cory J. Rosenberg as directors of Wellness, to hold office until the next annual meeting of the shareholders or until their successors are duly elected or appointed pursuant to the by-laws of Wellness, unless a director ceases to hold office pursuant to the ABCA or the office is otherwise vacated;

● passed an ordinary resolution adopting the amended and restated By-Law No. 1 of Wellness and repealing Wellness’s previously adopted By-Law No. 1;

● passed a special resolution authorizing the amendment of Wellness’s articles of incorporation (the “Articles”) to change the name of Wellness to “First Person Ltd.”;

● passed a special resolution authorizing the amendment of the Articles to effect the Consolidation on the basis of a consolidation ratio within the range of one post-Consolidation Common Share for every two to twelve pre-Consolidation Common Shares outstanding prior to the effective date of the Consolidation;

● passed a special resolution authorizing the amendment of the Articles to increase the minimum number of directors from one to three; and

● passed a special resolution authorizing the amendment of the Articles to remove certain restrictions on the transfer of shares of Wellness.

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On April 21, 2022, First Person amended the Articles to effect the Consolidation on the basis of a consolidation ratio of one post-Consolidation Common Share for every ten pre-Consolidation Common Shares outstanding prior to the effective date of the Consolidation. All references to Common Shares, options and warrants to purchase Common Shares, share data, per share data, and related information have been retroactively adjusted, where applicable, in this prospectus to reflect the Consolidation as if it had occurred at the beginning of the earliest period presented.

On February 15, 2022, we acquired all of the issued and outstanding shares of common stock of TruMed in exchange for an aggregate purchase price of up to $750,000, pursuant to the terms of the Share Purchase Agreement entered into with TruMed and each of the TruMed Sellers. $130,000 of the purchase price was paid by wire transfer upon the closing of the acquisition, while $70,000 of the purchase price was to be paid pursuant to a promissory note delivered to the TruMed Sellers. The original promissory note provided that the principal amount was payable on or before the earlier of (i) May 15, 2022 and (ii) the date on which First Person completes an initial public offering of securities on a “designated exchange” within the meaning of Canadian securities legislation; however, the Company and the TruMed Sellers subsequently agreed to amend the promissory note to provide that the principal amount of the promissory note is payable on or before the earlier of (i) October 15, 2022 and (ii) the date on which First Person completes an initial public offering of securities on a designated exchange. On October 14, 2022, the Company and the TruMed Sellers agreed to further amend the promissory note to provide that the principal amount of the promissory note is payable on or before the earlier of (i) December 31, 2022 and (ii) the date on which First Person completes an initial public offering of securities on a designated exchange. On January 10, 2023, the Company paid $35,000 to the TruMed Sellers as partial payment of the amount owed under the promissory note, and the Company and the TruMed Sellers further amended the promissory note to provide for a new principal amount of $37,867.51, which shall be payable on or before the earlier of (i) April 30, 2023 and (ii) the date on which First Person completes an initial public offering of securities on a designated exchange. On April, 28, 2023, the Company paid to the TruMed Sellers the remaining amount outstanding under the promissory note. The remaining $550,000 of the purchase price will only be paid if TruMed achieves certain milestones within the first twenty-four months following the closing of the acquisition, including: (i) $125,000 upon the establishment of a cultivation facility in Jamaica with at least three containers or equivalent and at least three trained employees, such facility having remote monitoring capabilities; (ii) $125,000 upon the establishment of an operating extraction laboratory in Jamaica; (iii) $125,000 upon the cultivation and harvest of at least ten kilograms of dry mushrooms; and (iv) $175,000 upon the receipt by TruMed of revenue from sales to arm’s length third-party purchasers in the marketplace (each a “Milestone Payment”). In the event one or more of the milestones are met after the effective date of the registration statement of which this prospectus forms a part, some of the proceeds of this offering may be used to make the corresponding Milestone Payment(s). See “Use of Proceeds” on page 42 of this prospectus for additional information. The Share Purchase Agreement provides that, upon mutual agreement of the parties, we may pay a Milestone Payment through the issuance of our (or any successor entity’s) Common Shares at the then current fair market value price per share, as determined in good faith by our board of directors, in lieu of cash.

On December 30, 2022, First Person amended the Articles to create the first series of preferred shares of the Company, consisting of an unlimited number of shares, designated as Preferred Shares, Series 1 shares. See “Description of Share Capital—Preferred Shares” on page 93 of this prospectus for additional information.

On April 11, 2023, First Person’s Board of Directors passed a resolution adopting an amendment to the amended and restated By-Law No. 1 of First Person, which was ratified by the Company’s shareholders on April 30, 2023, with shareholders holding 77.5 percent of the outstanding Common Shares approving the amendment. The amendment revised the exclusive forum provision of the amended and restated bylaws to provide that, unless the Company consents in writing to the selection of an alternative forum, the federal district courts of the United States of America shall be the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act, and that the exclusive forum provision shall not apply to actions brought to enforce any liability or duty created by the Exchange Act.

First Person Ltd. is referred to as “First Person” or the “Company.” First Person, a company incorporated in Alberta, Canada, is a holding company. We conduct our business and operations through our wholly-owned operating subsidiaries: FP, Inc. and TruMed. Our goal is to activate the full potential of human cognition through mushroom innovation. We believe that First Person, despite its early stage of development, is building a resilient foundation for long-term growth, and we believe we have positioned ourselves for success in the brain health and wellness markets through our innovative product formulations and production processes.

First Person, Inc.

FP, Inc. produces and distributes for sale grain-free, organic functional mushroom ingredients and a premium brand of cognitive supplement consumer products. If there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we receive the necessary approvals from the WDOH and the DEA in order to legally produce and research psilocybin in the State of Washington in the United States, then we intend to expand domestic U.S. production to include psychedelic mushrooms and conduct research and development.

Since its inception in January 2021, FP, Inc. has devoted substantially all of its efforts to business and product development relating to the operations of a functional mushroom farm in Olympia, Washington, and to the development of its own proprietary formulations of cognitive nutraceutical performance products containing functional mushrooms. We intend to use a portion of the net proceeds of this offering to support FP, Inc. in growing our initial product line of three nutraceutical consumer facing products, as well as expansion of growing and production capabilities for functional mushrooms and cognitive supplement consumer products in Olympia, Washington. See “Use of Proceeds” on page 42 of this prospectus.

Olympia Production Facility

The Olympia, Washington production facility is FP, Inc.’s primary production and processing facility and includes approximately 15,000 sq. ft. of current production and laboratory space, including three fully constructed functional mushroom greenhouses, totaling 12,000 sq. ft., with plans to acquire or lease additional growing space. Each greenhouse is utilized to grow First Person functional mushrooms.

Upon maturity and harvest, FP, Inc. dehydrates its mushrooms on site into dry powders. FP, Inc. started its first inoculation in December 2021 and harvested its first batch of functional mushrooms in February 2022. Initially, external testing will be used to test each batch of functional mushrooms. However, as FP, Inc. scales, it intends to develop the capacity to bring that testing function in house. Current production takes approximately nine to sixteen weeks to inoculate, grow, harvest, and process each batch of functional mushrooms. Our functional mushrooms are subject to the standards set forth in the Organic Foods Production Act and the regulations adopted thereunder by the National Organic Program (the “NOP”). On June 23, 2022, our First Person^TM functional mushrooms were certified as organic by CCOF Certification Services, LLC, a USDA-accredited organic certifying agency. We also intend to acquire or lease additional space to expand FP, Inc.’s production footprint at our facility in Olympia, Washington, or elsewhere in the Pacific Northwest.

We intend to use a portion of the net proceeds of this offering for the expansion of FP, Inc.’s production capabilities in the ingredients division in Olympia, Washington, focusing on expanding FP, Inc.’s processing capabilities for fresh and dried functional mushrooms. See “Use of Proceeds” on page 42 of this prospectus.

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Psychedelic mushrooms are currently a Schedule I controlled substance under the CSA in the United States. The State of Washington allows for controlled substance research and production within the state, so long as the operator has a state authorization from the WDOH and also possesses a DEA registration for the controlled substance activities it is conducting. Our facility will have a separate controlled substance area, which is under construction, and will require specialized security, monitoring, and safety equipment. Chris L. Claussen, our Chief Innovation Officer, submitted a controlled substance researcher application with the WDOH in order for FP, Inc. to conduct psilocybin research, with such application listing FP, Inc.’s Olympia, Washington facility as the research lab location. The application was submitted on July 12, 2021, and remains under review. If there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and our Olympia, Washington facility becomes licensed and the proper security measures are implemented, then FP, Inc. intends to begin producing psychedelic mushrooms at that site, but only for our own research and development involving psychedelic mushrooms or for sale to research laboratories authorized to conduct research involving psilocybin.

Supply Contracts for Functional Mushroom Powder and Extracts

FP, Inc. is negotiating potential long-term contracts to supply functional whole mushroom dry powder and extracts, as well as the unprocessed fruiting bodies of functional mushrooms, to several prominent brands and co-manufacturers in the functional food category. FP, Inc. intends to enter into such long-term supply agreements throughout 2023. The whole mushroom dry powder and extracts provided to these business-to-business customers can be added as an ingredient in an assortment of consumer nootropic formulations (capsules) and food products, including, but not limited to, coffees and other beverages, creamers, gummies, chocolates, and candies.

Development of Nutraceutical Consumer Products

FP, Inc. has expended significant resources in developing a direct-to-consumers product line of nutraceutical cognitive supplements which are made of functional mushrooms and other adaptogenic botanicals, and completed a product launch for sale to the public on March 1, 2022. There are three initial product offerings, as follows: (i) Sunbeam^TM, a supplement targeting dopamine, sparking motivation and focus; (ii) Golden Hour^TM, a supplement targeting oxytocin, sparking connection and joy; and (iii) Moonlight^TM, a supplement targeting gamma-aminobutryric acid (GABA), sparking restorative sleep cycles. These consumer products do not require FDA approval prior to marketing and distribution, but these consumer products are required to include a disclaimer that they have not been evaluated by the FDA and are not intended to diagnose, treat, cure, or prevent any disease. The microbeads and encapsulation for the supplement pills, and packaging materials for the pill tins and shipping boxes, are all produced by third-party manufacturers. Each of these consumer products is sold directly to consumers through FP, Inc.’s website, www.getfirstperson.com. Customers may either make a one-time purchase or enroll in a subscription services where they receive shipments based on a timeline chosen by the customer (typically monthly). In July 2022, due to greater than expected demand and to ensure that the company maintained sufficient inventory to fulfill existing subscription orders, FP, Inc. began taking pre-orders only for new purchases. FP, Inc. received additional inventory in early September 2022, and has since fulfilled all pre-orders and is currently meeting consumer demand without further limiting orders.

TruMed Limited

TruMed was formed on April 30, 2019, and is focused on research and development of psilocybin mushrooms. TruMed is a pre-revenue company in the development stage with substantially no operations. TruMed intends to carry out psilocybin-related research and development activities in Jamaica. Psilocybin is not an illegal drug under the Jamaica Drug Act. Therefore, research involving psychedelic mushrooms is not in contravention of the laws of Jamaica and does not require any permit or authorization from the regulatory authorities in Jamaica. TruMed intends to cultivate and research psychedelic mushrooms in Jamaica, and we plan to use a portion of the proceeds of this offering to establish TruMed’s operations in Jamaica. See “Use of Proceeds” on page 42 of this prospectus.

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Our Strategy and Competitive Strengths

Building a Vertically Integrated Supply Chain for Functional Mushrooms to Be Used as Supplied Ingredients for Consumer Brands.

We intend to become a functional mushroom supplier, leveraging our expertise and innovation to build a supply chain from the ground up, using our proprietary First Person™ process and techniques. We intend to sell functional mushroom powders and extracts, as well as the unprocessed fruiting bodies of functional mushrooms, as supplied ingredients for consumer brands by entering into supply agreements with other companies. We also use our functional mushroom products in our own nutraceutical brand.

The global appetite for functional mushrooms is rapidly expanding. However, a nascent marketplace and fractured supply chain leave businesses and consumers wanting. Demand has currently overwhelmed the industry’s existing supply chain for functional mushrooms and large companies are buying out entire mushroom harvests in advance. In response, functional mushrooms are being grown and imported from overseas to meet demand in North America. Imported mushrooms have, in some instances, been found to contain heavy contaminants, grains, and other substrates, compromising the quality and purity of final consumer products. We intend to set the standard for purity, potency, and transparency while innovating finished mushroom ingredient formats to expand potential end-use product applications.

While we are an early stage company with a history of net losses, we believe our planned vertically-integrated structure will allow us to disrupt and potentially dominate this fractured supply chain, secure growth, and generate revenue streams in the developing markets for functional mushrooms.

Using FP, Inc.’s proprietary First Person™ production process, which FP, Inc. protects as a trade secret, our innovation team, together with our Head of Mycology & Psychedelics, Robert C. Kaelin, has developed a protectable, proprietary, and scalable end product that is 100 percent pure mushrooms, with no fillers or grain residue. Mr. Kaelin has over twenty years of experience in propagation, cultivation, and processing, and has extensive knowledge in the handling of good-manufacturing-practice certified mushrooms and mycelium products for use in the nutraceutical and whole-foods industries.

We are building in-house processing capabilities to meet demand for our premium grain-free, pure fruiting body extract powders. Our functional mushrooms are cultivated on wild harvest alder saw dust, then harvested, dried, and shipped to a processing partner for milling, extraction, and spray drying. Our proprietary extraction method uses hot water and ethanol in a UAE process that utilizes high frequency sound waves to extract compounds from the mushroom fiber. We own all of the UAE equipment, which is housed at our processing partner’s facility, and it is operated by our processing partner’s staff in accordance with our specifications. We do not have a formal agreement with our processing partner, and instead function on an order-by-order basis with pricing established for each order. Once fully operational, we believe our proprietary automated processes to grow and process systems will maximize yields and minimize lead times and processing steps.

Our production capacity is growing, and currently consists of 15,000 sq. ft., including three fully constructed functional mushroom greenhouses, totaling 12,000 sq. ft., with plans to acquire or lease additional growing space. The three First Person™ fungi varieties that we are currently growing and intend to harvest are: (i) First Person™ Lions Mane (Hericium erinaceus); (ii) First Person™ Reishi (Ganoderma lingzhi); and (iii) First Person™ Cordyceps (Cordyceps militaris). We have harvested initial batches of each of these three fungi varieties for testing purposes, and we have harvested additional batches of First Person™ Lions Mane for use in our direct-to-consumer cognitive supplements. We do not use ethanol during the UAE process when processing First Person™ Lions Mane, but instead use only water. On June 23, 2022, our First Person^TM functional mushrooms were certified as organic by CCOF Certification Services, LLC, a USDA-accredited organic certifying agency.

We believe that owning our supply chain will allow us to participate in the high-growth mushroom business-to-business ingredient market by eventually becoming the primary supplier and product innovation partner of functional and wellness brands. We anticipate that these relationships could eventually expand to include psychedelic mushrooms if the legal path is cleared to do so and we obtain the requisite approvals from all applicable state and federal governmental authorities, including DEA manufacturing and research registration, to enter the psychedelic mushroom supply chain for the psychedelics research and development market in the United States.

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Building Consumer Relationships Through a Direct-to-Consumer Brand.

We plan to further develop, build, and market a successful direct-to-consumer brand of targeted nutraceuticals containing functional mushrooms and adaptogenic botanicals (plants or plant parts believed to help the body adjust to physical, chemical, or biological stress). We believe that building an early, direct, and trusted brand relationship with the consumer enables seamless product and category expansion.

On March 1, 2022, we launched a cognitive supplement system formulated to target specific neurotransmitters, which we believe will help establish our brand in the functional mushroom and the brain health and wellness markets. These are curated and fully legal cognitive supplements. The supplements feature functional mushrooms and a curated blend of nutraceuticals that activate specific neurotransmitters affecting energy, mood, and sleep. Nutraceuticals are dietary supplements and are regulated by the FDA. These consumer products do not require FDA approval prior to marketing and distribution, but are required to include a disclaimer that they have not been evaluated by the FDA and are not intended to diagnose, treat, cure, or prevent any disease.

At launch, all functional mushrooms in our nutraceuticals were purchased from third parties. We have since started to include our First Person™ Lions Mane in our nutraceuticals; however, we still purchase functional mushrooms from third parties, which are included in our nutraceuticals along with our First Person™ Lions Mane. All of the ingredients used in our nutraceuticals come from three sources—FP, Inc., Nutricode (an FM World brand), and North American Reishi Ltd. d/b/a NAMMEX. We do not have any formal agreements with third-party suppliers of functional mushrooms, and instead operate on an order-by-order basis with prices determined for each order. All of the ingredients used in our nutraceuticals meet the definition of a “dietary ingredient” as used in the FDCA. We do not intend to market any of our products for medical use.

We are branding and marketing these cognitive supplements with a brand agency that has experience in creating and launching successful direct-to-consumer brands. Our brand and product ecosystems are strategically positioned to resonate with forward-thinking consumers who seek to optimize their mental health and cognitive performance. We intend to build and sustain community engagement through high-impact marketing and branding activities, executive communications, and industry recognition. Our team brings a depth of invaluable experience across a diverse range of direct-to-consumer e-commerce businesses, and are experts in areas involving consumer acquisition costs, order frequency, and retention. We anticipate this will lead to detailed and realistic expectations for lifetime value that can inform and drive our decisions around reasonable marketing spend for customer acquisition. We expect future product-line expansion to include innovations in the functional beverage category (a category that includes nutritional and energy drinks).

Product Research and Development and Innovation Capabilities in Psychedelic Mushrooms.

We plan to conduct psychedelic mushroom product research and development in Jamaica through TruMed. If there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we obtain the requisite approvals from all applicable state and federal governmental authorities, including the WDOH and the DEA, then we intend to build out our naturally-derived psychedelic mushroom supply chain in the United States in full compliance with state and federal laws. We believe our multi-faceted approach, involving supplying functional mushrooms, marketing a nutraceutical brand, and psychedelic mushroom product research and development, will maximize our potential in an emerging and transformative category of mental health products and solutions.

Psilocybin, the naturally occurring drug found in psychedelic mushrooms, is currently a Schedule I controlled substance under the CSA and is currently an illegal substance in the State of Washington and all other U.S. states. Therefore, in order to produce and research psilocybin in the United States, we will need to obtain the necessary approvals from federal and state authorities, which may be granted in the sole discretion of such authorities. Even if we receive the necessary approvals, we may be subject to quotas or other restrictions on our production and research set by federal or state authorities.

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Research involving controlled substances in the State of Washington requires participating individuals to register with both the DEA and the WDOH. Under Section 69.50.508(e) of the RCW, the State of Washington gives the WDOH the authority to authorize certain persons to possess and distribute controlled substances for research purposes. The first step in obtaining the necessary authorizations is to receive state approval from the WDOH. Applicants must obtain controlled substance researcher registration from the WDOH prior to registering with the DEA. Chris L. Claussen, our Chief Innovation Officer, submitted a controlled substance researcher application with the WDOH in order for FP, Inc. to conduct psilocybin research, with such application listing FP, Inc.’s Olympia, Washington facility as the research lab location. The application was submitted on July 12, 2021, and remains under review. If the WDOH registration is granted, then FP, Inc. intends to utilize such registration to apply for licensure with the DEA to make our facility in Olympia, Washington a licensed psilocybin facility. Due to the unpredictable nature of the WDOH review process, the timeline for receiving WDOH’s determination with respect to the application is currently uncertain. If we receive the WDOH license, then the approval process with the DEA is expected to take two to three months from when we initially submit an application with the DEA. If these licenses are obtained, and there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V), then we expect our facility to include a WDOH- and DEA-compliant culture laboratory and controlled production and research facility for psychedelic mushrooms, built in compliance with all security protocols. We do not intend to use any of the proceeds we receive from this offering for the construction of the WDOH- and DEA-compliant culture laboratory and controlled production and research facility.

Unless there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we are able to obtain all of the requisite approvals, including approvals to produce, or conduct research involving, psychedelic mushrooms in the United States, then all of our activities involving psychedelic mushrooms and psilocybin will occur in Jamaica through TruMed, or through agreements with independent research labs in accordance with applicable laws. Psilocybin is not an illegal drug under the Jamaica Drug Act. Therefore, the cultivation of, and research involving, psychedelic mushrooms is not in contravention of the laws of Jamaica and does not require any permit or authorization from the regulatory authorities in Jamaica. TruMed intends to cultivate and study psychedelic mushrooms in Jamaica. TruMed’s research and development efforts are intended to focus on analyzing certain psychedelic mushroom species and extraction and production methods that standardize the potency of naturally-occurring psilocybin in mushrooms for use in approved clinical trials by drug development companies. While TruMed intends to supply psilocybin to drug development companies, TruMed does not intend to develop pharmaceutical products or market any of its products for medical use, nor does TruMed intend to develop recreational products involving psilocybin or psychedelic mushrooms. We plan to use a portion of the proceeds of this offering to establish TruMed’s operations in Jamaica. See “Use of Proceeds” on page 42 of this prospectus. TruMed is a pre-revenue company in the development stage with substantially no operations, and has not yet conducted any research involving psilocybin.

In addition, we have entered into a statement of work with Charles River Labs, an independent research lab in Canada, to conduct two studies involving psilocybin. Charles River Labs obtained the necessary import permits from Health Canada—a department of the Government of Canada responsible for national health policy—and the Company does not need to acquire any approvals in connection with such research. After Charles River Labs obtains the necessary components for the tests, then Charles River Labs will commence two studies pursuant to the terms of the statement of work, with research and development efforts focused on isolating and studying the individual psychoactive components of mushrooms. Through the exploration of genetic strains and compounds, we hope to discover novel combinations and applications of these analogs for brain health and performance.

If there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we receive the necessary approvals from the WDOH and the DEA in order to legally produce and research psilocybin in the State of Washington in the United States, then we intend to expand domestic U.S. production to include psychedelic mushrooms and conduct research and development. Our intended research and development activities in the United States would be parallel to TruMed’s intended activities in Jamaica (i.e., analyzing certain psychedelic mushroom species and extraction and production methods that standardize the potency of naturally-occurring psilocybin in mushrooms for use in approved clinical trials by drug development companies), but we believe carrying out such activities in the United States would improve our ability to enter the psychedelic mushroom supply chain for the psychedelics research and development market in the United States. While we intend to supply psilocybin to drug development companies if there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we receive the necessary approvals from the WDOH and the DEA, we do not intend to develop pharmaceutical products or market any of our products for medical use, nor do we intend to develop recreational products involving psilocybin or psychedelic mushrooms. We may not commence psilocybin propagation operations until we receive the requisite approvals from such authorities, and there is no guarantee that we will receive such approvals.

We have filed two provisional patent applications that could provide us with a protected advantage in legal psychedelic mushroom markets. Both provisional patents were initially filed in 2021 and refiled in 2022, and one of the provisional patents was refiled again in 2023. We have not yet filed a formal patent application for either innovation. The provisional patent applications will expire in 2023. We do not intend to file a utility patent application for either innovation until after the commencement of the studies pursuant to the statement of work entered into with Charles River Labs. In the event the studies do not commence prior to the expiration of the provisional patent applications, then we intend to refile the provisional patent applications. Our goal is to combine these patented innovations, and we believe that doing so will give us product performance and market advantages over other competitors preparing for the possibility of a legal market for sales of psychedelic mushrooms to drug development companies for their research and clinical trials. We have only filed provisional patent applications, which help protect inventions for a twelve-month period while a formal patent application is being filed. The patent process can take up to twenty-four months or longer to complete and can be challenged during the process. At this time, we cannot state whether the patent applications will be approved, refused, and/or ultimately registered. See “Business—Intellectual Property” beginning on page 60 of this prospectus for more information regarding our intellectual property.

We believe our three-part holistic strategy and approach to the developing markets for both functional mushrooms and, when legal pathways allow, psychedelic mushrooms strategically positions us for both near and long-term growth.

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Competition

First Person competes most directly with both public and privately held companies that supply and manufacture functional mushrooms and produce related consumer nutraceutical products. Competitors for First Person include public company Optimi Health Corp. and numerous private functional mushroom producers and nootropic supplement brands.

We compete in the following markets, based on how we categorize our core products:

● Functional Mushrooms. Demand for functional mushrooms has overwhelmed the existing supply chain, with large companies purchasing entire functional mushroom harvests in advance. Major North American suppliers are currently growing functional mushrooms and importing them from overseas. Functional mushrooms grown overseas have a reputation of containing heavy contaminants, compromising the quality and purity of final consumer products. We intend to produce and distribute for sale 100 percent grain-free, organic functional mushrooms at scale.

● Nutraceutical Products. In March 2022, we launched our direct-to-consumer line of highly curated and fully legal cognitive supplements. These supplements feature functional mushrooms and a curated blend of nutraceuticals that activate neurotransmitters affecting energy, mood, and sleep. This line of products may also expand into innovations in the functional beverage category—a category that includes nutritional and energy drinks.

● Psychedelic Mushrooms. In addition to our functional mushrooms, we are building a robust culture library of psychedelic mushrooms. We plan to conduct psychedelic mushroom product research and development in Jamaica through TruMed. TruMed’s research and development efforts are intended to focus on analyzing certain psychedelic mushroom species and extraction and production methods that standardize the potency of naturally-occurring psilocybin in mushrooms for use in approved clinical trials by drug development companies. While TruMed intends to supply psilocybin to drug development companies, TruMed does not intend to develop pharmaceutical products or market any of its products for medical use, nor does TruMed intend to develop recreational products involving psilocybin or psychedelic mushrooms. If there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we receive the necessary approvals from the WDOH and the DEA in order to legally produce and research psilocybin in the State of Washington in the United States, then we intend to expand domestic U.S. production to include psychedelic mushrooms and conduct research and development. Our intended research and development activities in the United States would be parallel to TruMed’s intended activities in Jamaica, but we believe carrying out such activities in the United States would improve our ability to enter the psychedelic mushroom supply chain for the psychedelics research and development market in the United States. While we intend to supply psilocybin to drug development companies if there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we receive the necessary approvals from the WDOH and the DEA, we do not intend to develop pharmaceutical products or market any of our products for medical use, nor do we intend to develop recreational products involving psilocybin or psychedelic mushrooms.

Intellectual Property

On February 18, 2021, FP, Inc. filed a provisional patent application (Application No. 63/150,762) with the U.S. Patent and Trademark Office (the “USPTO”) for an innovation that reduces the gastric distress that can be caused by consuming psychedelic mushrooms. On November 5, 2021, FP, Inc. refiled the provisional patent application (Application No. 63/276,142) with the USPTO to provide additional time to provide evidence to prove out the patent. On November 11, 2021, Chris L. Claussen and Joseph Claussen, the inventors of the innovation, filed an assignment with the USPTO assigning their entire interest in the innovation and the patent to us. FP, Inc. refiled the provisional patent with the USPTO on November 3, 2022 (Application No. 63,422,132). The provisional patent application recites claims to composition of matter, process of using/treatment, and process of making. The patent is expected to expire on November 3, 2023. We do not intend to file a utility patent application until after the commencement of the studies pursuant to the statement of work entered into with Charles River Labs. In the event the studies do not commence prior to the expiration of the provisional patent application, then we intend to refile the provisional patent application.

On August 5, 2021, FP, Inc. filed a provisional patent application (Application No. 63/229,725) with the USPTO for an innovation that increases bioavailability of tryptamine analogs from psychedelic mushrooms. Contemporaneously with the filing of the provisional patent application, Chris L. Claussen and Joseph Claussen, the inventors of the innovation, filed an assignment with the USPTO assigning their entire interest in the innovation and the patent to us. The provisional patent application recites claims to composition of matter, process of using/treatment, and process of making. FP, Inc. refiled the provisional patent with the USPTO on August 3, 2022 (Application No. 63/394,700) and again on August 4, 2023 (Application No. 63/530,750). The patent is expected to expire on August 4, 2024. We do not intend to file a utility patent application until after the commencement of the studies pursuant to the statement of work entered into with Charles River Labs. In the event the studies do not commence prior to the expiration of the provisional patent application, then we intend to refile the provisional patent application.

On May 19, 2021, we filed a trademark application with the USPTO for the unregistered mark “First Person” (Application No. 90/722,122). On July 23, 2021, we filed trademark applications with the USPTO for the following three unregistered marks: (i) “Sunbeam” (Application No. 90/845,607); (ii) “Golden Hour” (Application No. 90/845,631); and (iii) “Moonlight” (Application No. 90/845,651). On September 23, 2021, we filed a trademark application with the USPTO for the unregistered mark “First Grown” (Application No. 97/042,249). On October 1, 2021, we filed trademark applications with the USPTO for the unregistered marks “Awaken Your Best Mind” (Application No. 97/056,489) and “Best Mind Ahead of You” (Application No. 97/056,495).

On May 19, 2021, we filed a trademark application with the Jamaica Intellectual Property Office for the mark “First Person”. On November 11, 2021, we filed an application for international registration for the mark “First Person”, designating the mark for registration in Australia, Canada, China, the European Union, Japan, and the United Kingdom.

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In addition to the intellectual property registrations and applications noted above, FP, Inc. protects its First Person™ process and techniques as a trade secret. There is no registration procedure for trade secrets, and such rights are secured and maintained by making reasonable efforts to preserve the information’s secrecy.

Government Regulation

We are subject to a wide range of governmental regulations and policies. We are required to comply with the regulations and policies promulgated by the EPA and corresponding state agencies, as well as the USDA, the FDA, the FTC, the Occupational Safety and Health Administration (“OSHA”), and the DEA and corresponding state agencies. In addition, the Federal Communications Commission monitors claims made by companies, particularly with celebrity spokespeople.

USDA National Organic Program and Similar Regulations

We are involved in the sourcing, manufacturing, supplying, processing, marketing, selling, and distribution of organic food products and, as such, are subject to certain organic quality assurance standards. The Organic Foods Production Act mandates that the USDA develop national standards for organically produced agricultural products to assure consumers that those products marketed as organic meet consistent, uniform standards. The Organic Foods Production Act established the NOP, a marketing program housed within the Agricultural Marketing Service of the USDA.

The USDA’s regulations, among other things, set forth the minimum standards producers must meet, and have reviewed by an accredited USDA-certifying agent, in order to label their products “100% organic,” “organic,” or “made with organic ingredients” and display the USDA organic seal. The regulations impose strict standards on the production of organic food products and limit the use of non-organic or synthetic materials in the production of organic foods. Generally, organic food products are produced using:

● agricultural management practices intended to promote and enhance ecosystem health;

● no genetically engineered crops, sewage sludge, long-lasting pesticides, herbicides, or fungicides; and

● food processing practices intended to protect the integrity of the organic product and disallow irradiation, genetically modified organisms, or synthetic preservatives.

After becoming certified, organic operations must retain records concerning the production, harvesting, and handling of agricultural products that are to be sold as organic for a period of five years. Any organic operation found to be in violation of the USDA organic regulations is subject to enforcement actions, which can include financial penalties or suspension or revocation of their organic certificate.

Additionally, our organic products may be subject to various state regulations. Many states have adopted their own organic programs making the state agency responsible for enforcing USDA regulations for organic operations. However, state organic programs may also add more restrictive requirements due to specific environmental conditions or the necessity of production and handling practices in the state.

We intend to manufacture and distribute a number of organic products that will be subject to the standards set forth in the Organic Foods Production Act and the regulations adopted thereunder by the NOP, and on June 23, 2022, our First Person^TM functional mushrooms were certified as organic by CCOF Certification Services, LLC, a USDA-accredited organic certifying agency.

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Food-Related Regulations

As a manufacturer and distributor of food products, we are also subject to a number of federal, state, and local food-related regulations, including, but not limited to, the FDCA and regulations promulgated thereunder by the FDA. This comprehensive regulatory framework governs the manufacture (including composition and ingredients), labeling, packaging, and safety of food in the United States. The FDA:

● regulates manufacturing practices for foods through its Current Good Manufacturing Practices (“CGMP”) regulations and other regulations affecting food manufacturing;

● regulates ingredient safety; and

● prescribes the format and content of certain information required to appear on food product labels.

Some of the key food safety and food labeling regulations in the United States are discussed in the following sections.

Food Safety Regulations

The Food Safety Modernization Act (the “FSMA”) enables the FDA to better protect public health by strengthening the food safety system. The law provides the FDA with new enforcement authorities and tools designed to achieve higher rates of compliance with prevention- and risk-based food safety standards and to better respond to and contain problems when they do occur.

The FDA has now finalized its rules necessary to implement the FSMA, including: (i) Preventive Controls for Human Food, (ii) Preventive Controls for Food for Animals, (iii) Standards for the Growing, Harvesting, Packing, and Holding of Produce for Human Consumption, (iv) Foreign Supplier Verification Programs for Importers of Food for Humans and Animals, (v) Sanitary Transportation of Human and Animal Food, (vi) Mitigation Strategies to Protect Food Against Intentional Adulteration, and (vii) Accredited Third-Party Certification. Most of these rules have gone into effect. For others, including the Foreign Supplier Verification Program requirements, tiered compliance dates apply, which depend on the size of the importing company and the size of the company from which the imported ingredient is sourced. The intentional adulteration rule went into effect July 27, 2020, for companies the FDA considers small businesses, with fewer than 500 employees, such as our Company.

Hazard Analysis and Risk-Based Preventive Controls

Many of the rules, particularly those relating to good manufacturing practices and preventive controls relating to food for human consumption, sanitary transport, and foreign supplier verification and import safety, apply to us as we manufacture, process, pack, hold, and transport food for human consumption. We also work with foreign suppliers who provide us with raw materials. We have developed a food safety plan that we believe complies with our obligations under the FDA preventive controls requirements. Under that rule, covered facilities must establish and implement a written food safety system that includes an analysis of hazards and risk-based preventive controls. The hazard analysis must consider known or reasonably foreseeable biological, chemical, and physical hazards. The preventive control measures are required to ensure that hazards requiring a preventive control will be minimized or prevented. They include process, food allergen, and sanitation controls, as well as supply chain controls and a recall plan. In addition to establishing preventive controls, we must continuously ensure that the controls are effective through monitoring and verification activities. If a control fails, prompt corrective actions must be taken to identify a problem with preventive control implementation, to reduce the likelihood the problem will recur, evaluate affected food for safety, and prevent it from entering commerce. All corrective actions must be documented in writing.

The final rule mandates that a manufacturing facility have a risk-based supply chain program for those raw materials and other ingredients that have an identified hazard requiring a supply chain applied control. Accordingly, we are responsible for ensuring that foods are received only from approved suppliers, or on a temporary basis from unapproved suppliers whose materials are subject to verification activities before being accepted for use.

The final rule updated and clarified CGMPs. Management is required to ensure that all employees who manufacture, process, pack, or hold food are qualified and properly educated to perform their assigned duties. We have developed regulatory compliance programs to ensure we are in compliance with the applicable rules, and we continue to monitor the FDA’s ongoing efforts to develop guidance for industry clarifying the FDA’s expectations under the rule.

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We believe that we are in material compliance with the current regulations promulgated to implement the FSMA that are applicable to our business, and we intend to partner with manufacturing companies that have CGMP certified facilities. We are continuing to develop internal compliance policies and practices for those rules that have future compliance dates in order to ensure compliance by the required deadlines.

Foreign Supplier Verification Program

The FDA’s Foreign Supplier Verification Program requires that the U.S. owner or consignee of imported food take steps to verify that the foreign supplier of imported food is manufacturing the food in accordance with FDA requirements, that the importer understand what hazards the foreign supplier is controlling and how those hazards are controlled, and that this oversight program is documented. The regulation is being implemented using a tiered series of compliance dates based on the size of the U.S. importer and the foreign supplier. We have developed a program that we believe is in compliance with this regulation and are monitoring its ongoing implementation.

Sanitary Transportation Rule

The FDA’s regulations governing the Sanitary Transportation of Food for Humans and Animals requires that the parties involved in shipping food take steps to ensure that food is not contaminated or otherwise rendered unsafe during transportation. Steps include ensuring the conveyance is clean and that refrigerated foods are maintained in a refrigerated state. Fully packaged foods that do not require temperature control for safety, such as the foods that we currently produce, are generally exempt from these requirements. These requirements could become applicable to us, however, if we were to change our product line.

Bioterrorism Act

In addition, we are subject to the Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (the “Bioterrorism Act”) and regulations issued thereunder. The Bioterrorism Act authorizes the FDA to take the regulatory action necessary to protect the nation’s food supply against the threat of intentional or accidental contamination. The major components of the Bioterrorism Act include registration of food facilities with the FDA; prior notice of virtually all imported food shipments under the FDA’s authority; recordkeeping requirements for food facilities; authorization of the FDA to administratively detain food; authorization of the FDA to institute debarment of food importers for various violations related to food importation; and creation of a clear way to re-import previously refused foods if certain criteria are met.

Other Requirements

Lastly, we are subject to numerous other federal, state, and local regulations involving such matters as the licensing and registration of manufacturing facilities, enforcement by government health agencies of standards for our products, inspection of our facilities, and regulation of our trade practices in connection with the sale of food products.

Food Labeling Regulations

We are subject to certain requirements relating to food labeling under the FDCA and corresponding FDA regulations as well as the Fair Packaging and Labeling Act, enacted in 1967, and corresponding FTC regulations. Although the FTC and the FDA share jurisdiction over claims made by manufacturers of food products (with the USDA also having jurisdiction over “organic” claims), the FDA retains primary jurisdiction over the labeling of food products whereas the FTC regulates advertising.

The FDA and the FTC require that all food products be labeled to disclose the net contents, the identity of commodity, nutrition information, and the name and place of business of the product’s manufacturer, packer, or distributor. Both agencies also require that any claim on the product be truthful and not misleading.

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In 2016, the FDA updated its nutrition labeling rules, which had not been changed since 1993. The updated nutrition labeling rules require manufacturers to, among other things:

● increase the type size for “calories,” “servings per container,” and the “serving size” declaration, and bolding the number of calories and the “serving size” declaration to highlight this information;

● declare the actual amount, in addition to percent Daily Value, of vitamin D, calcium, iron, and potassium;

● include “added sugars,” in grams and as percent Daily Value on the label; and

● display serving sizes on labels based on amounts of foods and beverages that people are actually eating, not what they should be eating.

All food manufacturers were required to comply with the new rules by January 1, 2021. We believe we are in material compliance with these new food labeling regulations where applicable to our business.

The FDA also has detailed regulations and requirements governing various types of claims about products’ nutritional value and wellness benefits, such as a nutrient content claims, health claims, and structure-function claims. Claims falling under these regulations must be phrased in specific ways to avoid misbranding the food. We believe we are in compliance with applicable FDA claims regulations.

Other state and local statutes and regulations may impose additional food labeling requirements. For instance, the California Safe Drinking Water and Toxic Enforcement Act of 1986 (commonly known as Proposition 65) requires, with a few exceptions, that a specific warning appear on any consumer product sold in California that contains a substance, above certain levels, listed by that state as having been found to cause cancer or birth defects. This law exposes all food and beverage producers to the possibility of having to provide warnings on their products.

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Dietary Supplements

Pursuant to the FDCA, the FDA regulates the safety, formulation, manufacturing, processing, packaging, labeling, importation, and distribution of dietary supplements (including nutraceuticals). In addition, the FTC has jurisdiction to regulate the promotion and advertising of these products. The FDCA has been amended several times with respect to dietary supplements, in particular by the Dietary Supplement Health and Education Act of 1994 (“DSHEA”). DSHEA established a framework governing the composition, safety, labeling, manufacturing, and marketing of dietary supplements and established new statutory criteria for evaluating the safety of substances. In the process, DSHEA removed dietary supplements from pre-market approval requirements that apply to food additives and pharmaceuticals and established a combination of notification and post-marketing controls for regulating product safety. The FDA does not require notification to market a dietary supplement if it contains only dietary ingredients that were present in the U.S. food supply prior to DSHEA’s enactment on October 15, 1994. However, for a dietary ingredient not present in the food supply prior to this date, the manufacturer must provide the FDA with information supporting the conclusion that the ingredient will reasonably be expected to be safe at least seventy-five days before introducing a new dietary ingredient into interstate commerce.

As required by the FSMA, the FDA issued draft guidance in July 2011, which attempts to clarify when an ingredient will be considered a new dietary ingredient, the evidence needed to document the safety of a new dietary ingredient, and the appropriate methods for establishing the identity of a new dietary ingredient. In particular, the new guidance may cause dietary supplement products available in the market before DSHEA to now be classified to include a “new dietary ingredient” if the dietary supplement product was produced using manufacturing processes different from those used in 1994.

DSHEA also empowered the FDA to establish binding Good Manufacturing Practice regulations governing key aspects of the production of dietary supplements. DSHEA expressly permits dietary supplements to bear statements describing how a product affects the structure, function, and/or general well-being of the body. Although manufacturers must be able to substantiate any such statement, no premarket approval authorization is required for such statements and manufacturers need only notify FDA that they are employing a given claim. No statement may expressly or implicitly represent that a dietary supplement will diagnose, cure, mitigate, treat, or prevent a disease. DSHEA does, however, authorize supplement sellers to provide third-party literature in connection with the sale of a dietary supplement to consumers. This provision is an exception to the FDA’s broad powers over the promotion of regulated products. Accordingly, the authorization is limited and applies only if the publication is printed in its entirety, is not false or misleading, presents a balanced view of the available scientific information and does not promote a particular manufacturer or brand of dietary supplement, and is displayed in an area physically separate from the dietary supplements.

Environmental Regulations

We are also subject to various U.S. federal, state, and local environmental regulations. Some of the key environmental regulations in the United States include, but are not limited to, the following:

● air quality regulations;

● waste treatment/disposal regulations;

● sewer regulations;

● hazardous chemicals regulations; and

● storm water regulations.

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Consumer Protection Regulations

The FTC has the authority to regulate traditional and digital advertising for most types of consumer products, including our product offerings. The FTC has interpreted the Federal Trade Commission Act (the “FTC Act”) to prohibit unfair or deceptive acts or practices in commerce and oversees express and implied claims in advertising as well as certain promotional activities such as the use of social media influencers by advertising companies.

The FTC revised its Guides Concerning the Use of Endorsements and Testimonials in Advertising (the “Guides”), which became effective on December 1, 2009. Although the Guides are not binding, they explain how the FTC interprets Section 5 of the FTC Act’s prohibition on unfair or deceptive acts or practices. Consequently, the FTC could bring a Section 5 enforcement action based on practices that are inconsistent with the Guides. Under the revised Guides, advertisements that feature a consumer and convey his or her atypical experience with a product or service are required to clearly disclose the results that consumers can generally expect. In contrast to the 1980 version of the Guides, which allowed advertisers to describe atypical results in a testimonial as long as they included a disclaimer such as “results not typical,” the revised Guides no longer contain such a safe harbor. The revised Guides also add new examples to illustrate the long-standing principle that “material connections” between advertisers and endorsers (such as payments or free products), connections that consumers might not expect, must be disclosed.

To the extent we may rely on endorsements or testimonials, we will review any relevant relationships for compliance with the Guides and we will otherwise endeavor to follow legal standards applicable to advertising. Our marketing, advertising, and promotional activities for our consumer products must adhere to the FTC Act’s requirement for truthful, non-misleading, and adequately substantiated claims. If our advertising does not comply with FTC and similar state requirements, we could become subject to an investigation by the FTC or a consent decree, which could have a material adverse impact on our business and reputation.

Employee Safety Regulations

We are subject to certain safety regulations, including OSHA regulations. These regulations require us to comply with certain manufacturing safety standards to protect our employees from accidents. We believe that we are in material compliance with all employee safety regulations applicable to our business.

Controlled Substances

The CSA and its implementing regulations establish a “closed system” of regulations for controlled substances. The CSA imposes registration, security, recordkeeping and reporting, storage, manufacturing, distribution, importation, and other requirements under the oversight of the DEA. The DEA is the federal agency responsible for regulating controlled substances, and requires those individuals or entities that manufacture, import, export, distribute, research, or dispense controlled substances to comply with the regulatory requirements in order to prevent the diversion of controlled substances to illicit channels of commerce.

The DEA categorizes controlled substances into one of five schedules—Schedule I, II, III, IV, or V—with varying qualifications for listing in each schedule. Schedule I substances by definition have a high potential for abuse, have no currently accepted medical use in treatment in the United States, and lack accepted safety for use under medical supervision. Pharmaceutical products with a currently accepted medical use that are otherwise approved for marketing may be listed as Schedule II, III, IV, or V substances, with Schedule II substances presenting the highest potential for abuse and physical or psychological dependence, and Schedule V substances presenting the lowest relative potential for abuse and dependence.

Facilities that manufacture, distribute, import, or export any controlled substance must register annually with the DEA. The DEA registration is specific to the particular location, activity(ies), and controlled substance schedule(s).

The DEA inspects all manufacturing facilities to review security, recordkeeping, reporting, and handling prior to issuing a controlled substance registration. The specific security requirements vary by the type of business activity and the schedule and quantity of controlled substances handled. The most stringent requirements apply to manufacturers of Schedule I and Schedule II substances. Required security measures commonly include background checks on employees and physical control of controlled substances through storage in approved vaults, safes, and cages, and through use of alarm systems and surveillance cameras. Once registered, manufacturing facilities must maintain records documenting the manufacture, receipt, and distribution of all controlled substances. Manufacturers must submit periodic reports to the DEA of the distribution of Schedule I and II controlled substances, Schedule III narcotic substances, and other designated substances. Registrants must also report any controlled substance thefts or significant losses, and must obtain authorization to destroy or dispose of controlled substances. Imports of Schedule I and II controlled substances for commercial purposes are generally restricted to substances not already available from a domestic supplier or where there is not adequate competition among domestic suppliers. In addition to an importer or exporter registration, importers and exporters must obtain a permit for every import or export of a Schedule I and II substance or Schedule III, IV, and V narcotic, and submit import or export declarations for Schedule III, IV, and V non-narcotics. In some cases, Schedule III non-narcotic substances may be subject to the import/export permit requirement, if necessary, to ensure that the United States complies with its obligations under international drug control treaties.

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For drugs manufactured in the United States, the DEA establishes annually an aggregate quota for the amount of substances within Schedules I and II that may be manufactured or produced in the United States based on the DEA’s estimate of the quantity needed to meet legitimate medical, scientific, research, and industrial needs. The DEA also has individual quotas assigned to controlled substances research and manufacturing registrants.

In addition to federal laws, U.S. states also maintain separate controlled substance laws and regulations, including licensing, recordkeeping, security, distribution, and dispensing requirements. State authorities, including boards of pharmacy, regulate use of controlled substances in each state. Most states, including Washington, allow for research activities using controlled substances pursuant to state authorization and DEA registration. Failure to maintain compliance with applicable requirements, particularly as manifested in the loss or diversion of controlled substances, can result in enforcement action that could have a material adverse effect on our business, operations, and financial condition. Chris L. Claussen, our Chief Innovation Officer, submitted a controlled substance researcher application with the WDOH in order for FP, Inc. to conduct psilocybin research, with such application listing FP, Inc.’s Olympia, Washington facility as the research lab location. The application was submitted on July 12, 2021, and remains under review. If the WDOH registration is granted, then FP, Inc. intends to utilize such registration to apply for licensure with the DEA to make our current facility in Olympia, Washington a licensed psilocybin research and production facility. If there is rescheduling of psylocibin under the CSA from Schedule I to a lower Schedule (II-V) and we receive the necessary approvals from the WDOH and the DEA in order to legally produce and research psilocybin in the State of Washington in the United States, then we intend to expand domestic U.S. production to include psychedelic mushrooms and conduct research and development.

The DEA may seek civil penalties, refuse to renew necessary registrations, or initiate proceedings to revoke those registrations. In certain circumstances, violations could lead to criminal prosecution.

Unlike in the United States, psilocybin mushrooms are not an illegal drug under the Jamaica Drug Act. As psilocybin is not included in the Jamaica Drug Act, it is not a controlled or restricted substance in Jamaica and therefore no other specific controls, permits, licenses, or authorizations are required to conduct research involving psilocybin.

Psilocybin Production and Research

Federally legal psilocybin research was stalled for many years, but has recently experienced a resurgence while, at the same time, psilocybin continues to become more popular in mainstream culture and consciousness. In 2018, journalist Michael Pollan’s book How to Change Your Mind: What the New Science of Psychedelics Teaches Us About Consciousness, Dying, Addiction, Depression and Transcendence became a New York Times bestseller; in 2022, Pollan published a follow-on book, This Is Your Mind on Plants, which he describes as a “radical challenge to how we think about drugs.” Clinical trials using psilocybin are being conducted at the Johns Hopkins Center for Psychedelic & Consciousness Research, the University of California, New York University, the University of Michigan, Yale University, and the Usona Institute, among others, and in May 2023, Ohio State was awarded the first-ever license by the DEA to an American university to grow whole psilocybin mushrooms for mental health research. In June 2023, the FDA published a new draft guidance, Psychedelic Drugs: Considerations for Clinical Investigations, that presents considerations to industry for designing clinical trials for psychedelic drugs. In July 2023, the American Medical Association (“AMA”) published language for new Current Procedural Terminology (“CPT”) III codes for psychedelic therapies. The codes are expected to go into effect on January 1, 2024. Once effective, the CPT code will facilitate reimbursement and access to FDA-approved psychedelic therapies in the U.S. While no psychedelic-assisted therapy has been approved by the FDA as of the date of this prospectus, several potential new drugs are in various phases of clinical trials with the potential for at least one approval by 2024. Separately, the DEA has released its final 2023 production quotas for drugs to be used in research—and the agency is now calling for even more manufacturing of psychedelic compounds, including 12,000 grams each of psilocin and MDMA, significant increases from 2022.  In July 2023, a bipartisan group of U.S. lawmakers included two separate psychedelic research-related provisions as part of the annual defense bill. Most recently, a Republican presidential candidate announced his support for allowing veterans with PTSD to use certain psychedelics.

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In addition to the federally legal process for producing and researching psilocybin, a number of states have recently considered legalizing the substance for medical patients, and in some cases, for all adults. As of late 2022, Oregon and Colorado have legalized the use of psychedelic mushrooms (in Oregon, such use is limited to therapeutic use in supervised environments, whereas Colorado more broadly decriminalized possession and use by adults in addition to laying the groundwork for a mental health framework), and cities such as Denver, Berkeley, Detroit, Minneapolis, Seattle and Oakland have decriminalized or deprioritized enforcement for possession of psilocybin. Many additional states currently allow for psilocybin research, pilot programs and related activities under state law (with or without the authorizations from the DEA or FDA). We view the increased efforts of state legislatures to study, legalize, or decriminalize psilocybin as evidence that there is an increased interest in the populace of those states for psilocybin use or research. The following legislative discussion focuses on current laws and bills that expand the use of psilocybin beyond the exemption that exists for controlled substances research and DEA-permitted controlled substances registration activities. This summary of recent and pending state legislation provided below illustrates the types of legislation currently being passed and considered by state legislatures, but does not purport to report all filed legislation. There is no guarantee that any legislation legalizing or decriminalizing psilocybin will be enacted; moreover, these state laws would not remove or alter the current federal constraints on psilocybin.

● Arizona – In January 2023, a bipartisan group led by Rep. Payne (R) introduced H.B. 2486, which would appropriate $30,000,000 from the State General Fund to the Department of Health Services (“DHS”) for competitive research grants to study whole mushroom psilocybin in phase one, two and three clinical trials, and would create a Psilocybin Research Advisory Council within DHS to oversee the grants. Although the bill as filed did not pass, in May 2023, Gov. Katie Hobbs (D) signed into law budget legislation that includes provisions to fund research into the medical potential of psilocybin mushrooms for a variety of conditions. Under the enacted budget legislation, DHS will distribute $5 million for fiscal year 2023-2024 for “whole mushroom psilocybin phase one, phase two and phase three clinical trials that are capable of being approved” by the FDA for the treatment of any of 13 listed conditions. A Psilocybin Research Advisory Council will be established under DHS, tasked with establishing eligibility criteria for grant recipients, overseeing applications and making “recommendations to the governor, the speaker of the House of Representatives, the president of the Senate and the department on psychedelic-assisted therapy based on current federal and state research policy.”

● California – In December 2022, Sen. Scott Weiner reintroduced a bill, S.B. 58, to allow for the personal possession of five psychedelic substances: psilocybin, psilocyn, dimethyltryptamine (“DMT”), ibogaine and mescaline for adults aged 21 and over. The bill passed in the Senate in June 2023 but its future in the House is unclear after it was placed on the Suspense File, which could mean the bill is dead for this session.

● Colorado – In November 2022, voters approved Proposition 122, known as the Natural Medicine Health Act, which decriminalizes the personal use and cultivation of psilocybin and psilocin (and other natural psychedelic drugs, including DMT, ibogaine, and mescaline not derived from peyote) and creates a framework for regulating the cultivation, manufacturing, testing, and transportation of these psychedelic plants and fungi through state regulated “healing centers.”   On January 31, 2023, Gov. Jared Polis (D) appointed members to the Natural Medicine Advisory Board, which will advise Colorado’s Department of Regulatory Agencies (“DORA”). In May 2023, Colorado Governor Jared Polis signed S.B. 23-290, the Natural Medicine Regulation And Legalization Act, into law, which clarifies and sets forth the regulatory framework for a regulated natural medicine program in Colorado. The Division of Professions and Occupations will begin taking applications for natural medicine facilitators no later than December 31, 2024.

● Connecticut – Governor Ned Lamont signed legislation in 2021 requiring the Department of Mental Health (“DMHAS”) to convene a working group to study the health benefits of psilocybin. The bill specified that the study shall include an examination of whether the use of psilocybin by a person under the direction of a health care provider may be beneficial to the person’s health. In February 2022, DMHAS issued its final report, recommending that the state legalize the medically supervised use of psilocybin in licensed health settings under the supervision of health professionals.   In May 2022, the Governor signed H.B. 5506, which creates a Pilot Program for psylocibin and MDMA therapies. Under the bill, psychedelic treatment centers will be established in the state where people can receive psilocybin-assisted or MDMA-assisted therapy as part of an expanded access program for investigational new drugs through the FDA.   Multiple bills relating to psychedelics were introduced, but did not pass, in the 2023 session. H.B. 5102, which provided that “the general statutes be amended to allow” the use of psilocybin for medicinal and therapeutic purposes did not make it to a vote prior to the legislative session ending. H.B. No. 6734, which would decriminalize the possession of small amounts of psylocibin, passed in the House but did not make it to a vote in the Senate.

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● Hawai`i – Several Democratic representatives have filed H.B. 1340, a bill that would require the Director of Health to establish a Temporary Breakthrough Therapy Designation Advisory Council within three months of certain breakthrough therapy designation approvals by the FDA. The bill specifically references recent advances relating to MDMA and psilocybin. The bill failed to move out of committee before the legislature adjourned.

● Illinois – Rep. La Shawn Ford pre-filed the Compassionate Use and Research of Entheogens Act, H.B. 1. The Act would establish the Illinois Psilocybin Advisory Board within the Department of Public Health for the purpose of advising and making recommendations to the Department regarding the provision of psilocybin and psilocybin services. The Department would license persons to manufacture or test psilocybin products, operate service centers, or facilitate psilocybin services. The Act also provides for the expungement of records concerning the possession of psilocybin and psilocin, and amends the Illinois Controlled Substances Act to remove psilocybin and psilocin from the state’s list of Schedule I controlled substances. It has been referred to the Rules Committee.

● Iowa – In February 2023, Rep. Jeff Shipley (R) introduced H.F. 240, which would remove psilocybin and psilocyn from the list of substances classified as schedule I controlled substances under Iowa’s Uniform Controlled Substances Act. The bill failed to move out of committee before the legislature adjourned.

● Kansas – Rep. Aaron Coleman (D) introduced a bill, H.B. 2465, to reduce the criminal penalties for possessing, cultivating and distributing psilocyn or psilocybin; however, this bill died in committee.

● Kentucky – On May 31 2023, Kentucky Attorney General Daniel Cameron (R) announced that the state would take $42 million from their portion of the Opioid Settlement Fund and invest it into researching addiction treatment with ibogaine.

● Maine – On May 9, 2023, Sen. Bailey (D) introduced L.D. 1914, which would direct the Maine Department of Health and Human Services to create regulations that would allow physicians to recommend psilocybin use at designated facilities for those who are 21 and older. Despite a positive hearing in May 2023, the bill was tabled prior to the legislative session adjourning and will be carried over to the next term.

● Maryland – H.B. 0927, introduced by Delegates Sheila Ruth (D) and David Moon (D) in February 2023, would lower penalties for “de minimis” possession of specified levels of certain controlled substances, including psylocibin, LSD, and MDMA. If passed, penalties would be reduced from criminal misdemeanors to civil fines of $100 and, in cases of people under 21, include a referral to a state-approved drug education program. The bill failed to move out of committee before the legislature adjourned.

● Massachusetts – Several bills have been introduced related to psilocybin. Rep. Lindsay Sabadosa (D) introduced H.1754 and Sen. Patricia Jehlen (D) introduced S.1009 which would remove penalties for people over 18 years old to possess, ingest, obtain, grow, and give away, “without financial gain,” no more than two grams of psilocybin, psilocyn, DMT, ibogaine, and mescaline. Sen. Susan Moran (D) introduced a bill to establish a Psilocybin Treatment and Advisory Board and a psilocybin-assisted therapy pilot program to provide qualified patients with the funding necessary to receive psilocybin-assisted therapy as part of any expanded access program approved by the FDA. Rep. Nicholas Boldyga (R) filed a bill, H.3605, that would direct the Department of Public Health to establish procedures for the granting of psilocybin facilitators licenses and allow such facilitators to administer treatments to individuals 18 years of age and older.

● Michigan – On June 8, 2023, the Michigan State House introduced concurrent resolution No. 5. The resolution urges Congress, the DoD and the VA to invest in “non-technology treatment options for servicemembers and veterans who have psychological trauma as a result of military service.” It expands on this statement and mentions utilizing psychedelics in clinical settings as a treatment option.

● Minnesota – On February 16, 2023, Rep. Andy Smith (D) introduced H.F. 1884 which would establish a “Psychedelic Medicine Task Force” to study and advise on legalizing certain psychedelic substances, such as psilocybin, MDMA, and ibogaine. A companion bill, S.F. 1954, was introduced by Sen. Kelly Morrison (D) on February 20, 2023. The bill failed to move out of committee before the legislature adjourned.

● Missouri – Two bills have been introduced in the House. H.B. 869, introduced by Rep. Tony Lovasco (R), would allow psilocybin to be used by eligible patients, including those with treatment-resistant depression, PTSD, or a terminal illness. Psilocybin would not be legal but the bill would create an affirmative defense against criminal prosecution. H.B. 1154, filed by Rep. Dan Houx (R), requires the Department of Health and Senior Services to collaborate with a U.S. Department of Veterans Affairs medical center to conduct a study on the efficacy of using MDMA, psilocybin, and ketamine for the treatment of PTSD, treatment-resistant depression, substance abuse disorders, or for end-of-life care. The bills failed to get to a vote before the legislature adjourned.

● Montana – Rep. Jill Cohenour (D) introduced a bill (L.C. 1208) that would have legalized psilocybin use for PTSD and other mental illness treatment. The bill died in Committee.

● New Hampshire – A bill that would have legalize the possession and use by adults of psychedelics, H.B. 328, did not make it out of the House Committee.

● New Jersey – The Psilocybin Behavioral Health Access and Services Act, introduced in the state Assembly in December (as A.B. 4911) and the Senate last summer (as S.B. 2934), would develop a regulatory scheme for the Department of Health to administer psilocybin treatment centers to patients age 21 and over. The bills prescribe an eighteen-month development program for the new regulations (during which a governor-appointed twelve-person board would advise regulators on best practices and on balancing public health and safety concerns), and expressly forbid any county or municipality from levying taxes or fees on the manufacture or sale of psilocybin or the provision of psilocybin services. The bill has been referred to the Senate Health, Human Services and Senior Citizens Committee.

● New Mexico – H.B. 393 was introduced Reps. Christine Trujillo (D) Kristina Ortez (D), Joy Garratt (D), and Willie D. Madrid (D). The bill would create a Psilocybin Advisory Group to study and report on the feasibility of establishing a program that would establish a regulatory framework to use psilocybin-derived products to treat patients with certain mental health or substance use disorders in a clinical setting. The bill failed to move out of committee before the legislature adjourned.

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● New York – Before the start of the 2023-2024 legislative term, Rep. Linda B. Rosenthal pre-filed A.B. 114, which would legalize the possession of five psychedelic substances including: psilocybin; psilocyn; DMT; ibogaine; and mescaline not derived from peyote. The bill includes provisions barring state and local law enforcement from assisting federal drug enforcers pursuing activity protected by the legislation and provides that someone with a professional or occupational license should not have their status threatened for personal use and possession of these substances. The bill would also allow local municipalities to implement their own policies “in furtherance of this law,” while protecting employees from adverse action if they use the substances on their own time and off their employers’ premises. The bill has been referred to the health committee, but has had no movement since January 2023. A psychedelics bill filed in the Senate, S 3520, was referred to the Finance Committee with no further action taken.

● Nevada – In June, 2023, Gov. Joe Lombardo (R) approved S.B. 242 which establishes the Psychedelic Medicines Working Group to study the use of entheogens for therapeutic purposes and submit a written report describing its activities, findings, conclusions and recommendations.

● North Carolina – H.B. 727, introduced by Reps. Wayne Sasser (R), John Autry (D) and Allen Chesser (R), would establish a grant program for the study of MDMA and psilocybin to treat mental health disorders. It would also create a board in the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services to administer the grant program. The bill failed to move out of committee before the legislature adjourned.

● Oklahoma – In February 2023, Rep. Daniel Pae (R) introduced a bill, H.B. 2107, that would promote scientific research into psilocybin-assisted therapy by establishing a pilot program, the Oklahoma Psilocybin Research Pilot Program. This bill has passed in the House and is now with the Senate. The bill failed to move out of committee before the legislature adjourned.

● Oregon – In November 2020, Oregon became the first state to legalize psychedelic mushrooms for therapeutic use in supervised environments. Measure 109, now codified in Oregon Statute as ORS 475A: Psilocybin Regulation, directs the Oregon Health Authority (“OHA”) to license and regulate psilocybin products and the provision of psilocybin services. The measure directed the OHA to develop regulations for the manufacturing, transport, delivery, sale, and purchase of psilocybin products over a two-year development period, from January 1, 2021, to December 31, 2022. Measure 109 allows people who are aged 21 and over to access psychedelic mushrooms for personal development upon passing a screening conducted by a qualified therapist. People who use the drug are expected to be able to do so at a psilocybin service center, with the supervision of a designated service facilitator. The OHA concluded its two-year rulemaking period as of December 2022, and began accepting applications for licensure on January 2, 2023 through its new subdivision, Oregon Psilocybin Services (“OPS”). To date, OPS has issued three manufacturer licenses, two laboratory licenses, seven service centers, seventy-nine facilitator licenses, and two hundred and thirty-seven worker permits, with at least one service center currently offering services.   OPS rules indicate that only one species of fungi, Psilocybe cubensis, will be authorized for cultivation or possession, that manufacturers will not be allowed to use manure or woodchips to cultivate the mushrooms, that synthetic psilocybin will not be permitted, and that all products can only be designed for oral consumption or another enteral method.   Oregon also passed Measure 110, effective as of February 2021, which greatly reduced the penalties for the personal possession of small amounts of psilocybin, and other controlled substances (such violations are now subject to a maximum fine of $100).

● Rhode Island – In June 2023, the House passed a bill that permits a person to possess one ounce of psilocybin and permits psilocybin to be securely cultivated within a person’s residence for personal use. The bill also directs the Rhode Island Department of Health to establish rules to regulate psilocybin in the event that FDA reschedules the substance. The bill has been referred to the Senate Judiciary Committee.

● Texas – Three bills were filed this session relating to studying the potential therapeutic use of psychedelics; however, none of the bills made it out of committee.

● Utah – In February 2023, Sen. Escamilla Luz (D) introduced S.B. 200. The bill would allow for the medical production and use of psilocybin. However, this bill did not advance this session after the Senate’s Health and Human Services Committee tabled the measure, stating more time was needed to examine the issue.

● Vermont – A bill filed by Reps. Chip Troiano (D) and Brian Cina (D) to decriminalize psilocybin, H.B. 439, failed to progress this legislative session, however, lawmakers hope to revisit the proposal in the next legislative session. As drafted, the bill would have established a Psychedelic Therapy Advisory Working Group that would be required to examine the use of psychedelics to improve physical and mental health and to make recommendations regarding the establishment of a State program. An additional three bills were filed relating to the decriminalization, regulation, or study of psychedelics, however, none of the bills made it out of committee.

● Virginia – As of January 2023, there were three bills affecting psylocibin. H.B. 898 (which was a carryover from the prior year and filed by Rep. Dawn Adams (D)) would decriminalize a broad array of psychedelics. Rep. Adams also filed H.B. 1315, which would legalize psilocybin possession for people who have an “order” from a health care professional to treat “refractory depression or post-traumatic stress disorder or to ameliorate end-of-life anxiety.” The bill would also reduce the penalty for nonmedical possession of psilocybin to a Class 2 misdemeanor punishable by no more than thirty days in jail. Meanwhile, Sen. Ghazala Hashmi pre-filed S.B. 932, which would down-schedule psilocybin from Schedule I to Schedule III and create a Virginia Psilocybin Advisory Board to “develop a long-term strategic plan for establishing therapeutic access to psilocybin services and monitor and study federal laws, regulations, and policies regarding psilocybin.” In February 2023, S.B. 932 passed in the Senate, but was tabled in the House shortly thereafter. None of the remaining bills advanced out of committees prior to the end of Virginia’s current legislative session and will also need to be reintroduced in the next session.

● Washington – Sens. Jesse Salomon (D) and Liz Lovelett (D) filed S.B. 5263, a bill that would direct the Department of Health to administer a regulatory system for supported adult-use of psilocybin, beginning January 1, 2024. The bill passed with significant changes. As passed, the amended bill establishes a task force and authorizes the University of Washington School of Medicine to study the potential therapeutic value of the psychedelic compound found in mushrooms. The study is expected to commence in January 2025 and run for one year.

● West Virginia – H.B. 2951, introduced by state delegate Kayla Young (D) would remove psilocybin from Schedule I under the state’s controlled substances list, but the bill died in the legislative session.

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Employees and Human Capital Resources

As of the date of this prospectus, we had one full-time Canadian employee at First Person Ltd., nine full-time and three part-time U.S. employees at FP, Inc., and no employees at TruMed.

Properties

Calgary, Alberta Headquarters

First Person is headquartered at 1840, 444 – 5^th Ave., SW, Calgary, Alberta, Canada, pursuant to a lease agreement that the Company assumed from the prior tenant effective January 1, 2022. The lease is for 2,885 sq. ft. of office space, and the rent amount is CAD$4,568 per month. This lease expires on August 31, 2024. The lease does not provide for renewal options.

Olympia, Washington Facility

First Person leases a 15,000 sq. ft. facility in Olympia, Washington, which is currently utilized by FP, Inc. to grow functional mushrooms. The initial term of this lease expired April 14, 2023, subject to two renewal options for two years each. The Company exercised the first renewal option, thereby extending the lease until April 14, 2025. The base rent until April 14, 2023, was $3,178 per month. The base rent after April 14, 2023, and for additional renewal periods, if exercised by the Company, is calculated by multiplying the base rent by the annual change in the Consumer Price Index, published by the Bureau of Labor Statistics, as provided in the most recent publication to the start of the renewal period.

WeWork Office

First Person leases a fifteen-person office space in a WeWork building in Glendale, California, pursuant to a Membership Agreement with WeWork, dated October 11, 2022 (the “Membership Agreement”). The leased office space is currently utilized by certain of the Company’s officers. The lease term is for six months (the “Commitment Term”), beginning on October 20, 2022. The rent is $7,450 per month, prorated for the month of October 2022; however, First Person receives discounts of $1,374 per month for October 20, 2022 through October 31, 2022, $5,500 per month for November 1, 2022 through November 30, 2022, and $3,550 per month for December 1, 2022 through March 31, 2023. The rent amount is subject to annual 3.5 percent increases. In addition, First Person paid WeWork a service retainer fee of $18,625. After the Commitment Term, the Membership Agreement is automatically extended for successive one-month terms unless First Person provides at least one-month prior notice of its intent to terminate the Membership Agreement at the end of the then-current term. WeWork may terminate the Membership Agreement immediately at any time in its sole discretion. 

On March 31, 2023, First Person amended the Membership Agreement to provide for a new commitment term commencing May 1, 2023 and ending January 31, 2024. The rent during the new commitment term is $7,450 per month; however, First Person receives discounts of $3,050 per month.

Legal Proceedings

We are currently involved in, and may in the future be involved in, litigation relating to claims arising out of our operations in the normal course of business. These matters include the following:

● On June 26, 2023, the TruMed Sellers (Pratik Ruparell and Gaston Wagstaff) filed a statement of claim against First Person Ltd. and TruMed Limited in the Court of King’s Bench of Alberta. The statement of claim relates to the Share Purchase Agreement entered into with TruMed and the TruMed Sellers, and alleges that we breached the Share Purchase Agreement by not providing certain support in furtherance of achieving the milestones. See “Business—Overview” beginning on page 54 of this prospectus for additional information regarding the milestones and corresponding Milestone Payments. In addition, the statement of claim alleges that we breached the Share Purchase Agreement by terminating Mr. Ruparell’s employment agreement with unpaid wages and no severance and by not providing a consulting agreement to Mr. Wagstaff or retaining him to do any work for TruMed. The TruMed Sellers claim as damages (i) payment of the first Milestone Payment ($125,000) and (ii) payment in relation to the employment and consulting agreements. In addition, the TruMed Sellers are seeking interest, costs, and further and other relief as the court may permit and see fit. Based on our initial internal review, we believe the claims lack merit and we intend to vigorously defend same. The statement of claim has not had any material impact on TruMed’s business, including TruMed’s research and development operations in Jamaica. TruMed does not have any employees or currently active business operations.

The outcomes of legal proceedings and claims are inherently unpredictable and subject to significant judgment to determine the likelihood and amount of loss related to such matters. While it is not possible to determine the outcomes, we believe based on our current knowledge that the resolution of all such pending matters will not, individually or in the aggregate, have a material adverse effect on the results of our operations or financial position. There are no material proceedings in which any of our directors, officers, or affiliates or any registered or beneficial holder of more than 5 percent of our Common Shares is an adverse party or has a material interest adverse to our interest.

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MANAGEMENT

Directors, Executive Officers, and Key Employees

Set forth below is certain information with respect to the individuals who are our directors, executive officers, and key employees as of the date of this prospectus:

Name	Age	Position
Cory J. Rosenberg	43	Chairman, Chief Executive Officer, and President
Darcy A. Campbell	54	Chief Financial Officer
Chris L. Claussen	52	Director and Chief Innovation Officer
Ariel Fainsod	42	Director
Gail D. Hamilton Azodo	39	Director
Rosema J. Nemorin	41	Director
Robert C. Kaelin	50	Head of Mycology & Psychedelics

Executive Officers

Cory J. Rosenberg, has been our Chairman, Chief Executive Officer, and President since January 2021. Prior thereto, Mr. Rosenberg co-founded and led a high-growth premium international fashion and consumer brand, Hook & Albert, in January 2011. He successfully sold the business to a private equity fund in August 2016. Following the sale, Mr. Rosenberg continued as Co-Chief Executive Officer of Hook & Albert and joined the acquiring fund as a Managing Partner, a position he held from August 2016 until September 2019, advising on acquisition and integration strategy and helping build the foundation for an in-house shared services platform, unlocking value for high-growth portfolio brands. In September 2019, Mr. Rosenberg exited to build the framework for First Person. Mr. Rosenberg is a senior executive and seasoned entrepreneur with more than fourteen years of experience building, leading, and growing omni-channel retail and consumer-packaged-goods brands. As a former investment banker, Mr. Rosenberg advised on corporate strategy, mergers and acquisitions, and capital market activities. He received a Bachelor of Arts degree from Union College and a Master of Business Administration degree from the Darden School at the University of Virginia.

Key Attributes, Experience and Skills:

As founder of the Company and Chairman of the Board of Directors since inception, Mr. Rosenberg brings to the Board of Directors significant knowledge of all aspects of our Company and each of the industries in which it operates. In addition, having Mr. Rosenberg on the Board of Directors provides our Company with effective leadership.

Darcy A. Campbell, has been our Chief Financial Officer since January 2021. Mr. Campbell was also our Secretary and a member of our Board of Directors from January 2021 until December 2021. Mr. Campbell brings over twenty-five years of experience in finance and accounting for public and private companies operating in Canada and internationally. From July 1, 2015 until April 1, 2016, Mr. Campbell was the Chief Financial Officer of ATK Oilfield Transportation Inc. (“ATK”), a private oilfield services company. ATK was placed into receivership following an application by its creditors on April 1, 2016. Following the application, the bank called the outstanding loans, closed the company, and sent all the assets to auction. From April 2018 to October 2019, Mr. Campbell served as the Vice President of Finance for Hydrera Water Services, a water services company. From October 2019 to September 2020, he worked as a consultant in his own company, Private Consulting. From September 2020 to May 2021, he served as the Chief Financial Officer for INDVR Brands, a Canadian cannabis company. He is experienced in mergers and acquisitions, dispositions, equity raises, and debt restructuring, and is focused on building highly effective teams within organizations. He received a Bachelor of Commerce degree from the University of Calgary.

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Chris L. Claussen, has been our Chief Innovation Officer since January 2021 and a member of our Company’s Board of Directors since December 2021. Prior thereto, Mr. Claussen was a partner and project manager of Three Point Group LLC, a company that assists companies with strategic planning, profit improvement, valuation services, and business exit strategies, from February 2016 until January 2021. Mr. Claussen was the co-founder and Director of Operations for Memento Group LLC, a consumer product innovation business, from January 2018 until December 2020. Mr. Claussen has over twenty years of experience in product and business development. During the five years prior to joining the Company, Mr. Claussen focused on innovative product development in the functional foods and medicinal mushrooms space at Cognitive Performance Consultants. He received a Bachelor of Business Administration degree from Oklahoma State University.

Key Attributes, Experience and Skills:

Mr. Claussen’s qualifications to serve on our Board of Directors include his twenty years of experience in product and business development, including five years during which he focused exclusively on the functional foods and medicinal mushrooms space. In addition, Mr. Claussen brings experience in exploring, experimenting, and conducting extensive research on the relationship between functional foods/ mushrooms and metabolic, brain, and mental health.

Board of Directors

Ariel Fainsod, has been a member of our Board of Directors since December 2021. Mr. Fainsod co-founded Lease for U in September 2016, and is Lease for U’s Chief Executive Officer. Lease for U provides a comprehensive strategy for its clients with business activity looking for a viable alternative for the acquisition of their assets and financing of working capital. Prior to founding Lease for U, Mr. Fainsod was the Chief Financial Officer of AN Global in Mexico from 2013 to September 2016. Mr. Fainsod received a Master of Business Administration degree from the Darden School at the University of Virginia and a Bachelor of Science and Master of Science in Electronic Engineering from Universidad Iberomericana, Mexico City.

Key Attributes, Experience and Skills:

Mr. Fainsod’s qualifications to serve on our Board of Directors include over five years of business experience as a co-founder of his successful business, which provides practical experience in corporate growth, acquisition strategies, and financial management. Mr. Fainsod also brings financial expertise from his time as the Chief Financial Officer of AN Global in Mexico. This experience, coupled with his educational background, qualifies Mr. Fainsod to serve as a director for the Company.

Gail D. Hamilton Azodo, has been a member of our Board of Directors since December 2021. Ms. Hamilton Azodo co-founded Sips Coffee Roasters in July 2019. Ms. Hamilton Azodo has been an Adjunct Professor at Florida International University since January 2019. Prior thereto, Ms. Hamilton Azodo was the North America whisky Marketing Manager for Bacardi, USA, from July 2014 until August 2016. Prior to that, Ms. Hamilton Azodo was a Brand Manager at Proctor & Gamble, from July 2011 until July 2014. Ms. Hamilton Azodo received a Master of Business Administration degree from the Darden School at the University of Virginia and her Bachelor of Science and Economics from the University of Florida.

Key Attributes, Experience and Skills:

Ms. Hamilton Azodo’s qualifications to serve on our Board of Directors include over two years of business experience as a co-founder of her successful business, which provides practical experience in corporate growth, acquisition strategies, and financial management. This experience, coupled with her educational background, qualifies Ms. Hamilton Azodo to serve as a director for the Company.

Rosema J. Nemorin, has been a member of our Board of Directors since December 2021. Mr. Nemorin co-founded Lendstreet Financial in June 2010, and is Lendstreet Financial’s Chief Executive Officer. Lendstreet Financial is a marketplace lending platform which helps borrowers reduce debt and rebuild their credit. Mr. Nemorin received a Master of Business Administration degree from the Darden School at the University of Virginia and his Bachelor of Science and Sports Management from the University of Florida.

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Key Attributes, Experience and Skills:

Mr. Nemorin’s qualifications to serve on our Board of Directors include over ten years of business experience as a co-founder of his successful business, which provides practical experience in corporate growth, acquisition strategies, and financial management. This experience, coupled with his educational background, qualifies Mr. Nemorin to serve as a director for the Company.

Key Employees

Robert C. Kaelin, has been our Head of Mycology & Psychedelics since April 2021. Mr. Kaelin is a mycologist with over twenty years of experience in propagation, cultivation, and processing. He has extensive knowledge in the handling of good-manufacturing-practice certified mushrooms and mycelium products for use in the nutraceutical and whole foods industry. Mr. Kaelin started his career at Fungi Perfecti, managing a large scale mushroom production facility while working under Paul Stamets, an industry leader in fungi. Since January 2006, Mr. Kaelin has been the operator of Provisions Mushroom Farm, a Community Supported Agriculture mushroom farm. Mr. Kaelin has been adjunct faculty at Bastyr University since 2010, teaching mycology, remediation, and the integration of food landscapes with waste material. He received his Bachelor degree from the University of Utah.

Advisory Board

We also have an advisory board consisting of the following seven individuals: Dr. Dominic D’Agostino (a principal of Ketone Technologies LLC), Dr. Mauro Zappaterra, Dr. Bruce Patsner, Dr. Julia Hoffman, Gregory Elliott, Emily Hofstetter, and Kenn Israel (a principal of Innovation Nutrition Consulting LLC). The members of our advisory board were selected based on leadership in their respective fields, and each member of the advisory board provides direction, knowledge, and leadership based on their professional experiences in order to help guide the Company.

Each member of the advisory board, other than Dr. Julia Hoffman, has entered into a services agreement containing non-disclosure and non-solicitation provisions along with an assignment of intellectual property rights. Each services agreement provides that it continues until terminated by either party thereto upon thirty days’ written notice. The advisory board members are reimbursed for any expenses incurred in the course of providing services, but only if such expenses are incurred with the Company’s prior written approval. Each services agreement provides that, if the agreement has not been terminated, then, upon the listing of our Common Shares on a recognized stock exchange, the Company shall seek the approval of our Board of Directors to (i) create an equity-based incentive compensation plan for the benefit of our directors, officers, employees, consultants, and advisors and (ii) grant rights to the advisor under such plan, in amounts and on terms to be determined by the Board of Directors in its sole discretion.

No members of the advisory board have received any compensation other than equity grants. During fiscal year 2022, the Company made the following equity grants to its advisory board members:

● On April 14, 2022, we granted to Kenn Israel, options to purchase 5,000 Common Shares, with a five-year term and an exercise price of $5.00 per Common Share, under the Incentive Plan, with the options becoming vested as follows: one-third on April 14, 2023, one-third on April 14, 2024, and one-third on April 14, 2025.

Family Relationships

There are no family relationships between any of our executive officers and directors.

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CORPORATE GOVERNANCE

Director Independence

The Corporate Governance Guidelines adopted by the Board of Directors provide that a majority of the members of the Board of Directors, and each member of the Audit, Compensation, and Nominating and Governance Committees, must meet the independence requirements set forth therein. The full text of the Corporate Governance Guidelines, including the independence requirements, will be available in the Governance section of our website at https://www.firstpersongroup.com. In determining who qualifies as an “independent director,” the Board of Directors will consider the independence criteria established by applicable U.S. and Canadian laws and regulations and Nasdaq listing standards, as well as other factors that will contribute to effective oversight and decision-making by the Board of Directors. Our Board has affirmatively determined that each of Ariel Fainsod, Gail D. Hamilton Azodo, and Rosema J. Nemorin qualify as an independent director, as defined under the applicable corporate governance standards of Nasdaq. The Board of Directors shall review and determine annually the independence of all non-management directors, including an evaluation of all relationships between the Company and each director for the purposes of determining whether a material relationship exists that could interfere with such director’s ability to satisfy his or her responsibilities as an independent director. In addition, all Committee members will be evaluated for compliance with any additional Nasdaq or SEC independence requirements applicable to members of each Committee and the Board of Directors may adopt more stringent requirements to determine the independence of directors serving on various Committees.

Director Selection Process

The Nominating and Governance Committee considers candidates suggested by its members, other directors, senior management, and shareholders in anticipation of upcoming elections and actual or expected board vacancies. The Nominating and Governance Committee has not adopted a formal diversity policy or established specific minimum criteria or qualifications because from time to time the needs of the Board of Directors and the Company may change. All candidates, including those recommended by shareholders, are evaluated on the same basis in light of the entirety of their credentials and the needs of the Board of Directors and the Company, and to ensure the Board of Directors as a whole contains a range of talent, skill and expertise sufficient to provide sound and prudent guidance with respect to all of the Company’s operations and interests. Of particular importance is the candidate’s integrity, commitment and independence of thought and judgment, the candidate’s confidence and a willingness to express ideas and engage in constructive discussion with other Board members, Company management and all relevant persons, the candidate’s willingness and ability to devote sufficient time, energy and attention to the affairs of the Company, and the candidate’s willingness to make difficult decisions in the best interest of the Company and its shareholders, and demonstrate diligence and faithfulness in attending Board and Committee meetings. The Nominating and Governance Committee will consider director candidates recommended by the Company’s shareholders. Shareholders may recommend director candidates by contacting the Chairman of the Board as provided under “Communications with the Board of Directors” beginning on page 77 of this prospectus.

Board Leadership Structure

Our Board of Directors has no formal policy with respect to separation of the positions of Chairman of the Board and Chief Executive Officer or with respect to whether the Chairman should be a member of management or an independent director, and believes that these are matters that should be discussed and determined by the Board of Directors from time to time based on the position and direction of the Company and the membership of the Board of Directors. The Board of Directors has determined that having Cory J. Rosenberg, although not considered independent, serve as Chief Executive Officer and Chairman is in the best interest of the Company’s shareholders at this time due to his extensive knowledge of the Company and its industries.

Risk Management

Our Board of Directors believes that risk management is an important component of the Company’s corporate strategy. The Board of Directors and the appropriate Committees consider and periodically discuss with management the Company’s policies and procedures with respect to risk oversight, assessment, and management.

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Committees of the Board of Directors

Our Board of Directors has established an Audit Committee, a Nominating and Governance Committee, and a Compensation Committee. The Board of Directors has established written charters for each of the Committees, which will be available on our website in the Corporate Governance section located at https://www.firstpersongroup.com and which are also available in print to any shareholder upon request to the Corporate Secretary. Any changes to the charters will be promptly reflected on our website.

Audit Committee

Ariel Fainsod, Gail D. Hamilton Azodo, and Rosema J. Nemorin have been designated as members of our Audit Committee. The principal duties of the Audit Committee under its written charter include monitoring: (i) the integrity of the financial statements of the Company; (ii) the independent auditor’s qualifications and independence; (iii) the performance of the Company’s internal audit function and independent auditors; and (iv) the compliance by the Company with legal and regulatory requirements.

The Audit Committee charter requires that the Audit Committee be comprised of at least three directors, each of whom must be independent under our Corporate Governance Guidelines and as defined by Nasdaq Rule 5605(a)(2) and meet the criteria for independence set forth in Rule 10A-3(b)(1) under the Exchange Act. The Board has determined that each member of the Audit Committee is independent under our Corporate Governance Guidelines and as defined by Nasdaq Rule 5605(a)(2) and meets the criteria for independence set forth in Rule 10A-3(b)(1) under the Exchange Act. In addition, each member of the Audit Committee is financially literate within the meaning of our Corporate Governance Guidelines, and our Board of Directors has determined that Ariel Fainsod has sufficient accounting or financial management expertise to qualify as an “audit committee financial expert,” in accordance with SEC rules.

Compensation Committee

Ariel Fainsod, Gail D. Hamilton Azodo, and Rosema J. Nemorin have been designated as members of our Compensation Committee. The principal duties of the Compensation Committee under its charter include: (i) overseeing and discharging the responsibilities of the Board of Directors relating to compensation of the Company’s executive officers and directors; and (ii) ensuring that the Company structures its compensation plans, policies, and programs as to attract and retain the best available personnel for positions of substantial responsibility with the Company, to provide incentives for such persons to perform to the best of their abilities for the Company, and to promote the success of the Company’s business. In reviewing and approving the Company’s overall executive compensation program, if applicable, the Compensation Committee shall consider the results of the most recent shareholder advisory vote on executive compensation required by Section 14A of the Exchange Act. The Compensation Committee confers with our executive officers when making the above determinations.

The Compensation Committee charter requires that the Compensation Committee be comprised of at least three directors, each of whom must be independent under our Corporate Governance Guidelines and as defined by Nasdaq Rule 5605(a)(2). In addition, in affirmatively determining the independence of any director who will serve on the Compensation Committee, the Board of Directors shall consider all factors specifically relevant to determining whether a director has a relationship with the Company which is material to that director’s ability to be independent from management in connection with the duties of a Compensation Committee member, including, but not limited to: (i) the source of compensation of the director, including any director, consulting, advisory or other compensatory fee paid by the Company to the director; and (ii) whether the director is affiliated with the Company, a subsidiary of the Company or an affiliate of a subsidiary of the Company. At least two members of the Committee also shall qualify as “outside directors” within the meaning of Section 162(m) of the Code, and as “non-employee directors” within the meaning of Rule 16b-3 under the Exchange Act. The Board has determined that each member of the Compensation Committee is independent as defined under the general independence standards of the Nasdaq listing standards and our Corporate Governance Guidelines. Additionally, the Board has determined that Ariel Fainsod, Gail D. Hamilton Azodo, and Rosema J. Nemorin are “non-employee directors” within the meaning of Rule 16b-3 under the Exchange Act.

Nominating and Governance Committee

Ariel Fainsod, Gail D. Hamilton Azodo, and Rosema J. Nemorin have been designated as members of our Nominating and Governance Committee. The principal duties of the Nominating and Governance Committee under its charter include: (i) identifying qualified individuals for membership on the Board of Directors; (ii) recommending to the Board of Directors the persons to be nominated for election as directors at any meeting of shareholders of the Company, and the persons (if any) to be elected by the Board of Directors to fill any vacancies on the Board of Directors; (iii) recommending to the Board of Directors the directors to be appointed to each Committee of the Board of Directors; (iv) developing and recommending to the Board of Directors a set of Corporate Governance Guidelines applicable to the Company; (v) providing general oversight of the corporate governance affairs of the Company; and (vi) performing such other matters as directed by the Board of Directors or the Committee’s charter. The Nominating and Governance Committee oversees the annual evaluation of succession planning for the Chief Executive Officer and other senior executive positions. The Nominating and Governance Committee charter requires that the Nominating and Governance Committee be comprised of at least three directors, each of whom must be independent under our Corporate Governance Guidelines and as defined by Nasdaq Rule 5605(a)(2). The Board has determined that each of Ariel Fainsod, Gail D. Hamilton Azodo, and Rosema J. Nemorin are independent under our Corporate Governance Guidelines and as defined by Nasdaq Rule 5605(a)(2).

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Governance Practices

We observe corporate governance practices and have adopted principal governance documents which are designed to ensure that we maximize shareholder value in a manner that is consistent with both the legal requirements applicable to us and a business model that requires our employees to conduct business with the highest standards of integrity. Our Board of Directors has adopted and adheres to corporate governance principles which the Board of Directors and senior management believe promote this purpose, are sound and represent best practices, and will review these governance practices, the applicable corporate and securities laws and regulations of Alberta, Canada, where we are incorporated and the regulations of the SEC, as well as best practices recognized by governance authorities to benchmark the standards under which it operates. Our principal governance documents are as follows:

● Corporate Governance Guidelines;

● Board of Directors committee charters, including:

● Audit Committee charter;

● Compensation Committee charter; and

● Nominating and Governance Committee charter.

● Code of Business Conduct and Ethics; and

● Related Party Transactions Policy.

Our governance documents will be available on our website at https://www.firstpersongroup.com.

Executive Director Sessions

Under our Corporate Governance Guidelines, the independent directors will meet in regular executive sessions to, among other matters, review the performance of the Chief Executive Officer. The Chairman (if independent), or the lead independent director, if applicable, or in the absence of a lead independent director, the chairperson of the Nominating and Governance Committee, will lead regularly scheduled meetings of independent directors following Board meetings to discuss matters as such independent directors consider appropriate.

Communications with the Board of Directors

Shareholders and other interested persons seeking to communicate directly with the Board of Directors, the independent directors as a group, or any of the Audit, Compensation, or Nominating and Governance Committees of the Board of Directors should submit their written comments c/o Corporate Secretary, Jan Campbell, Shareholder Communications at our principal executive offices at 1840, 444 – 5^th Ave., SW, Calgary, AB, T2P 2T8 and should indicate in the address whether the communication is intended for the Chairman of the Board, the Independent Directors, or a Committee Chair. The Chairman of the Board will review any such communication at the next regularly scheduled Board of Directors meeting unless, in his or her judgment, earlier communication to the Board of Directors is warranted.

If a shareholder communication raises concerns about our ethical conduct or the ethical conduct of our management, it should be sent directly to our Corporate Secretary at our principal executive offices. The Corporate Secretary will promptly forward a copy of any such communication to the Chairman of the Audit Committee and, if appropriate, our Chairman of the Board, and take such actions as they authorize to ensure that the subject matter is addressed by the appropriate committee of the Board of Directors, by management and/or by the full Board of Directors.

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At the direction of the Board of Directors, we reserve the right to screen all materials sent to its directors for potential security risks, harassment purposes, or routine solicitations.

Board Observers

On July 14, 2021, in connection with the Company’s private placement offering, the Company entered into a Board Observer Agreement with Samuel Tullman and Glen Tullman (the “Board Observer Agreement”), pursuant to which Samuel Tullman and Glen Tullman may appoint one observer (the “Observer”) to attend, receive notice of, and observe all of the formal meetings of the Company’s Board of Directors in a nonvoting capacity. The Observer may participate in discussions at meetings of the Board of Directors, but in no event shall the Observer (i) be deemed to be a member of the Board of Directors in any way whatsoever, (ii) have or be deemed to have, or otherwise be subject to, any duties (fiduciary or otherwise) to the Company or its shareholders, or (iii) have the right to vote on, propose, or offer any motions or resolutions to the Board of Directors. Samuel Tullman and Glen Tullman appointed Samuel Tullman as the Observer. The Board Observer Agreement terminates upon the later of (i) July 14, 2022 and (ii) the day that Samuel Tullman and Glen Tullman collectively cease to own or exercise control or direction over 4 percent or more of the Company’s outstanding Common Shares. The Board Observer Agreement contains confidentiality provisions with respect to information obtained by the Observer from the Company that extend for two years following the termination of the Board Observer Agreement.

Code of Business Conduct and Ethics

Our Board of Directors has adopted a Code of Business Conduct and Ethics, which applies to our directors, officers, employees, and third-party representatives. Our code of ethics will be available on our website at: https://www.firstpersongroup.com.

Related Party Transactions Policy

On December 16, 2021, our Board of Directors adopted a Related Party Transactions Policy which is administered by our Audit Committee. This policy applies to any transaction or series of transactions in which (i) the Company or any of its subsidiaries is or will be a participant, (ii) the aggregate amount involved, in any fiscal year, will or may be expected to exceed the lesser of (A) $120,000 or (B) 1 percent of the average of the Company’s total assets at year-end for the last two completed fiscal years, and (iii) any related party (as defined in the policy) has or will have a direct or indirect material interest. This also includes any material amendment or modification to an existing transaction with a related party. Under the Related Party Transactions Policy, the Company’s compliance officer will determine whether a transaction meets the requirements of a related party transaction requiring review by the Audit Committee. Transactions that fall within this definition will be referred to the Audit Committee for approval, ratification, or other action. Based on its consideration of all of the relevant facts and circumstances, the Audit Committee will decide whether or not to approve such transaction. If the Company becomes aware of an existing related party transaction that has not been approved under this Policy, the matter will be referred to the Audit Committee. The Audit Committee will evaluate all options available, including ratification, revision, or discontinuation or rescission of such transaction, and shall examine the facts and circumstances regarding the failure to report such related party transaction for approval and shall take any action it deems appropriate as a result. Please review the information under “Certain Relationships and Related Party Transactions” on page 85 of this prospectus.

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EXECUTIVE COMPENSATION

Summary Compensation Table

The following table sets forth information concerning the total compensation received by, or earned by, our named executive officers for fiscal year ended December 31, 2022, and for the period from January 21, 2021 (date of inception), through December 31, 2021: Cory J. Rosenberg, our Chief Executive Officer, President and Chairman of the Board, Darcy A. Campbell, our Chief Financial Officer, and Adam J. Schoenberg, our former Chief Marketing Officer (collectively, the “Named Executive Officers”).

Name and Principal Position	Fiscal Year		Salary ($)(2)		Bonus ($)(2)		Share Awards ($)(3)		Option Awards ($)(4)		All other Compensation ($)		Total ($)
Cory J. Rosenberg		2022		150,000		-		-		-		-		150,000
Chairman, Chief Executive Officer, and President		2021		137,500		-		-		92,321		-		229,821
Darcy A. Campbell		2022		150,000		-		-		45,859		-		195,859
Chief Financial Officer and Director		2021		129,500		-		-		126,241		-		255,741
Adam J. Schoenberg (1)		2022		150,000		-		-		91,718		-		241,718
Former Chief Marketing Officer		2021		137,500		-		-		172,402		-		309,902

(1)	Mr. Schoenberg voluntarily terminated his employment with the Company effective April 30, 2023.
(2)	The amounts shown in this column reflect salary during the relevant period irrespective of when such salary was paid.
(3)	The amounts shown in this column reflect the aggregate grant date fair value of restricted share awards computed off the average Common Shares price on the grant date in accordance with FASB ASC Topic 718.
(4)	The amounts shown in this column reflect the aggregate grant date fair value of option awards computed off the average Common Shares price on the grant date in accordance with FASB ASC Topic 718. Assumptions used in the calculation of these amounts are included in Note 12 to our audited consolidated financial statements for the fiscal year ended December 31, 2022, included elsewhere in this prospectus.

Narrative Disclosure Regarding Summary Compensation Table

Employment Arrangements

We have entered into employment agreements with each of our Named Executive Officers. The employment agreements generally provide for at-will employment and six weeks of paid vacation per year (up to one week of which may be carried forward to a succeeding year). The key terms of employment with our Named Executive Officers are further described below. Copies of the employment agreements are attached as exhibits to this registration statement of which this prospectus forms a part.

Cory J. Rosenberg

Cory J. Rosenberg, our Chairman, Chief Executive Officer, and President, entered into an employment agreement with FP, Inc., effective as of January 1, 2022. Mr. Rosenberg’s base salary is currently $150,000 per year, and is reviewed annually for the purpose of determining increases, if any, based on his performance, the performance of FP, Inc., the then-prevailing salary scales for comparable positions, inflation, and other relevant factors.

Mr. Rosenberg is eligible for an annual cash bonus in accordance with the terms of any annual cash bonus incentive plan maintained for FP, Inc.’s key executive officers, as amended from time to time (the “Cash Bonus Plan”). During the first quarter of each fiscal year, our Compensation Committee, in consultation with our Board of Directors, establishes threshold, target, and maximum performance goals for such fiscal year in accordance with the terms of the Cash Bonus Plan. If the target performance goals for a fiscal year are attained, then the annual cash bonus for such fiscal year is not less than 20 percent of the executive’s base salary and if the maximum performance goals for a fiscal year are attained, the annual cash bonus for such fiscal year is equal to 100 percent of the executive’s base salary, unless our Compensation Committee (with approval from our Board of Directors) determines extraordinary circumstances justify a larger annual cash bonus.

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Mr. Rosenberg is eligible to receive grants of equity awards each year pursuant to the Incentive Plan. The type of equity awards, vesting conditions, and the number of Common Shares subject to such annual grant of equity awards are determined by our Compensation Committee in its sole discretion.

Mr. Rosenberg is entitled to participate in all employee benefit plans, programs, and arrangements made available generally to FP, Inc.’s senior executives or to other full-time employees on substantially the same basis that such benefits are provided to such senior executives of a similar level or to other full-time employees (including, without limitation profit-sharing, savings, and other retirement plans or programs (e.g., a 401(k) plan), long-term cash incentive plan, program, or arrangement, medical, dental, hospitalization, vision, short-term and long-term disability, and life insurance plans or programs, accidental death and dismemberment protection, travel accident insurance, and any other fringe benefit or employee welfare benefit plans or programs that may be sponsored by FP, Inc. from time-to-time, including any plans or programs that supplement the above-listed types of plans or programs, whether funded or unfunded); provided, however, that Mr. Rosenberg is not eligible to participate in any generally available severance benefit plan, program, or arrangement sponsored or maintained by FP, Inc.

Mr. Rosenberg’s employment agreement provides for termination of his employment by either party for any reason upon thirty days’ prior written notice.

Mr. Rosenberg’s employment terminates immediately upon his death. If Mr. Rosenberg becomes disabled (as defined in his employment agreement) then FP, Inc. may terminate his employment upon written notice.

Mr. Rosenberg may terminate his employment for good reason (as defined in his employment agreement) if (i) not later than ninety days after the occurrence of any act or omission that constitutes good reason, he provides FP, Inc. with a written notice setting forth in reasonable detail the acts or omissions that constitute good reason, (ii) FP, Inc. fails to correct or cure the acts or omissions within thirty days after it receives such written notice, and (iii) Mr. Rosenberg terminates his employment after the expiration of such cure period but not later than sixty days after the expiration of such cure period.

Mr. Rosenberg’s employment agreement provides that, upon the occurrence of any act or omission that constitutes cause (as defined in his employment agreement), FP, Inc. may terminate his employment if (i) no fewer than fifteen days prior to the termination date, FP, Inc. provides him with written notice of its intent to consider termination of his employment for cause, including a reasonably detailed description of the acts or omissions that our Board of Directors believes constitute cause; and (ii) Mr. Rosenberg fails to cure the acts or omissions that constitute cause within fifteen days after receiving such notice.

For information regarding the compensation owed to Mr. Rosenberg upon termination of his employment, see “Potential Payments upon Termination or Change-in-Control” beginning on page 82 of this prospectus.

Adam J. Schoenberg

Adam J. Schoenberg, our former Chief Marketing Officer, entered into an employment agreement with FP, Inc., effective as of January 1, 2022. Mr. Schoenberg voluntarily terminated his employment with the Company effective April 30, 2023. Mr. Schoenberg’s base salary was $150,000 per year, and was reviewed annually for the purposes of determining increases, if any, based on his performance, the performance of FP, Inc., the then-prevailing salary scales for comparable positions, inflation, and other relevant factors.

Mr. Schoenberg was eligible for an annual cash bonus in accordance with the terms of the Cash Bonus Plan. During the first quarter of each fiscal year, our Compensation Committee, in consultation with our Board of Directors, establishes threshold, target, and maximum performance goals for such fiscal year in accordance with the terms of the Cash Bonus Plan. If the target performance goals for a fiscal year are attained, then the annual cash bonus for such fiscal year is not less than 20 percent of the executive’s base salary and if the maximum performance goals for a fiscal year are attained, the annual cash bonus for such fiscal year is equal to 100 percent of the executive’s base salary, unless our Compensation Committee (with approval from our Board of Directors) determines extraordinary circumstances justify a larger annual cash bonus.

Mr. Schoenberg was eligible to receive grants of equity awards each year pursuant to the Incentive Plan. The type of equity awards, vesting conditions, and the number of Common Shares subject to such annual grant of equity awards are determined by our Compensation Committee in its sole discretion.

Mr. Schoenberg was entitled to participate in all employee benefit plans, programs, and arrangements made available generally to FP, Inc.’s senior executives or to other full-time employees on substantially the same basis that such benefits are provided to such senior executives of a similar level or to other full-time employees (including, without limitation profit-sharing, savings, and other retirement plans or programs (e.g., a 401(k) plan), long-term cash incentive plan, program, or arrangement, medical, dental, hospitalization, vision, short- term and long-term disability, and life insurance plans or programs, accidental death and dismemberment protection, travel accident insurance, and any other fringe benefit or employee welfare benefit plans or programs that may be sponsored by FP, Inc. from time-to-time, including any plans or programs that supplement the above-listed types of plans or programs, whether funded or unfunded); provided, however, that Mr. Schoenberg was not eligible to participate in any generally available severance benefit plan, program, or arrangement sponsored or maintained by FP, Inc.

Mr. Schoenberg’s employment agreement provided for termination of his employment by either party for any reason upon thirty days’ prior written notice. Mr. Schoenberg voluntarily terminated his employment with the Company effective April 30, 2023.

Mr. Schoenberg’s employment agreement provided for termination of his employment immediately upon his death, and termination of his employment upon written notice by FP, Inc. if Mr. Schoenberg became disabled (as defined in his employment agreement).

Mr. Schoenberg’s employment agreement provided for termination of his employment by Mr. Schoenberg for good reason (as defined in his employment agreement) if (i) not later than ninety days after the occurrence of any act or omission that constituted good reason, he provided FP, Inc. with a written notice setting forth in reasonable detail the acts or omissions that constituted good reason, (ii) FP, Inc. failed to correct or cure the acts or omissions within thirty days after it received such written notice, and (iii) Mr. Schoenberg terminated his employment after the expiration of such cure period but not later than sixty days after the expiration of such cure period.

Mr. Schoenberg’s employment agreement provided that, upon the occurrence of any act or omission that constituted cause (as defined in his employment agreement), FP, Inc. could terminate his employment if (i) no fewer than fifteen days prior to the termination date, FP, Inc. provided him with written notice of its intent to consider termination of his employment for cause, including a reasonably detailed description of the acts or omissions that our Board of Directors believed constituted cause; and (ii) Mr. Schoenberg failed to cure the acts or omissions that constituted cause within fifteen days after receiving such notice.

For information regarding the compensation owed to Mr. Schoenberg upon termination of his employment, see “Potential Payments upon Termination or Change-in-Control” beginning on page 82 of this prospectus.

Darcy A. Campbell

We entered into an employment agreement with Darcy A. Campbell, our Chief Financial Officer, effective as of January 1, 2022. Mr. Campbell’s annual salary is currently $150,000 per year (paid in CAD equivalent, adjusted for exchange rate differences on January 1, April 1, July 1, and October 1 annually. The annual salary is reviewed on an annual basis, and may, in the sole discretion of our Board of Directors, be increased.

Mr. Campbell is eligible to participate in our (i) bonus program, as established or amended from time to time, at our sole discretion, (ii) benefit plan that may be adopted for our senior executive employees, as may be amended from time to time, at our sole discretion, subject to the terms of the applicable plan documents provided by the relevant carrier, and (iii) long-term incentive plan or plans that may be adopted for our senior executive employees, as may be amended from time to time, at our sole discretion, subject to terms and conditions of such plan.

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We may terminate Mr. Campbell’s employment for just cause (as defined in his employment agreement) at any time and without notice. We may terminate his employment without just cause at any time by providing written notice.

Mr. Campbell may terminate his employment at any time and for any reason by providing thirty days’ prior written notice. Mr. Campbell’s employment automatically terminates upon his death.

For information regarding the compensation owed to Mr. Campbell upon termination of his employment, see “Potential Payments upon Termination or Change-in-Control” beginning on page 82 of this prospectus.

Long Term Incentive Plan

The Incentive Plan, initially adopted on March 31, 2021, was amended and restated on March 22, 2022. The purpose of the Incentive Plan is to (i) enhance the Company’s ability to attract, retain, and motivate persons who make (or are expected to make) important contributions to the Company by providing these individuals with equity ownership opportunities, (ii) align the interests of such individuals with the Company’s shareholders, and (iii) promote ownership of the Company’s equity. The Company has reserved a maximum number of Common Shares for the grant of awards under the Incentive Plan of not more than 10 percent of the aggregate number of issued and outstanding Common Shares from time to time. Incentives available under the Incentive Plan may include options, restricted share units, performance share units, deferred share units, and restricted shares. As of the date of this prospectus, 152,635 Common Shares remain available to be awarded under the Incentive Plan.

During the fiscal year ended December 31, 2022, the Company made the following equity grants to its Named Executive Officers:

● On April 14, 2022, we granted to Darcy A. Campbell options to purchase 10,000 Common Shares, with a five-year term and an exercise price of $5.00 per Common Share, under the Incentive Plan, with the options becoming vested as follows: one-third on April 14, 2023, one-third on April 14, 2024, and one-third on April 14, 2025.

● On April 14, 2022, we granted to Adam Schoenberg options to purchase 20,000 Common Shares, with a five-year term and an exercise price of $5.00 per Common Share, under the Incentive Plan, with the options becoming vested as follows: one-third on April 14, 2023, one-third on April 14, 2024, and one-third on April 14, 2025. Mr. Schoenberg voluntarily terminated his employment with the Company effective April 30, 2023. As a result, Mr. Schoenberg’s unvested options were immediately forfeited and cancelled as of April 30, 2023.

The following table presents certain data for the Incentive Plan as of December 31, 2022:

Plan	Total Common Shares reserved under plan(1)		Shares available for future grants under plan(1)		Aggregate number of options exercised(1)		Aggregate number of options outstanding(1)		Weighted average exercise price of options outstanding(1)(2)
Incentive Plan		635,135		20,135		0		615,000

(1)	Common Shares, share data, and per share data have been retroactively adjusted to reflect the Consolidation.
(2)	As of December 31, 2022, the Company had options to purchase 615,000 Common Shares outstanding pursuant to the Incentive Plan, of which 365,000 had an exercise price of CAD$2.00 per Common Share, 110,000 had an exercise price of CAD$3.50 per Common Share, and 140,000 had an exercise price of $5.00 per Common Share.

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Outstanding Equity Awards at 2022 Fiscal Year-End

The following table provides information on the current holdings of stock options and unvested Restricted Stock by our Named Executive Officers at December 31, 2022.

		Option Awards					Stock Awards
Name	Option Grant Date	Number of Securities Underlying Unexercised Options (#) Exercisable(1)	Number of Securities Underlying Unexercised Options (#) Unexercisable(1)		Option Exercise Price (1)	Option Expiration Date	Number of Shares or Units of Stock That Have Not Vested (#)	Market Value of Shares or Units of Stock That Have Not Vested ($)
Cory J. Rosenberg	4/26/2021	33,333	16,667		CAD$2.00	4/26/2026	-	-
Darcy A. Campbell	4/14/2022	0	10,000	$	5.00	4/14/2027	-	-
	9/27/2021	25,000	0		CAD$3.50	9/27/2026
	4/26/2021	33,333	16,667		CAD$2.00	4/26/2026
Adam J. Schoenberg	4/14/2022	0	20,000	$	5.00	4/14/2027	-	-
	9/27/2021	25,000	0		CAD$3.50	9/27/2026
	4/26/2021	50,000	25,000		CAD$2.00	4/26/2026

(1) Common Shares, share data, and per share data have been retroactively adjusted to reflect the Consolidation.

Potential Payments upon Termination or Change-in-Control

Cory J. Rosenberg

Cory J. Rosenberg’s employment agreement provides for the following if his employment is terminated for any reason: (i) a lump sum payment in an amount equal to the sum of the earned but unpaid base salary through the termination date plus the accrued but unused vacation days at the base salary in effect as of the termination date; plus (ii) any other benefits or rights accrued or earned through the termination date in accordance with the terms of the applicable fringe or employee benefit plans and programs (including any vested rights to outstanding equity awards pursuant to the terms of such equity awards).

If Mr. Rosenberg’s employment is terminated as a result of death or disability (as defined in his employment agreement), then, in addition to the renumeration owed to him if his employment is terminated for any reason, he (or his estate) shall receive the accrued but unpaid annual bonus, if any, for the fiscal year ended prior to the termination date.

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If Mr. Rosenberg’s employment is terminated without cause (as defined in his employment agreement), or if Mr. Rosenberg terminates his employment for good reason (as defined in his employment agreement), then, in addition to the renumeration owed to him if his employment is terminated for any reason, he (or his estate) shall receive (i) the accrued but unpaid annual bonus, if any, for the fiscal year ended prior to the termination date, (ii) the annual bonus, if any, payable for the fiscal year in which his employment is terminated, based on actual fiscal year performance (pro-rated for the period of employment during such fiscal year through the termination date), (iii) if the termination date does not occur within twenty-four months following a change of control, then (a) a lump sum payment upon termination in an amount equal to the sum of (I) twenty-four months of the base salary in effect as of the termination date (without regard to any reduction in base salary that constitutes good reason), and (II) the amount equal to the product of two times the average annual bonus earned for the three most recent complete fiscal years preceding the termination date; provided, however, if the termination date occurs prior to the completion of three full fiscal years in which he was eligible for an annual bonus, then the amount shall be determined on the basis of the number of fiscal years completed at that time; and (b) reimbursement of the COBRA premiums, if any, paid by him for continuation coverage for him, his spouse, and his eligible dependents under the Company’s group health, dental, and vision plans for the lesser of twelve months or the maximum COBRA continuation period, and (iv) if the termination date occurs within twenty-four months following a change of control, then (a) a lump sum payment upon termination in an amount equal to the sum of (I) twenty-four months of the base salary in effect as of the termination date (without regard to any reduction in base salary that constitutes good reason), and (II) the amount equal to the product of two times the average annual bonus earned by him for the three most recent complete fiscal years preceding the termination date; provided, however, if the termination date occurs prior to the completion of three full fiscal years in which he was eligible for an annual bonus, then the amount shall be determined on the basis of the number of fiscal years completed at that time; (b) reimbursement of the COBRA premiums, if any, paid by him for continuation coverage for him, his spouse, and his eligible dependents under the Company’s group health, dental, and vision plans for the lesser of eighteen months or the maximum COBRA continuation period; and (c) the status of his outstanding equity awards will be determined in accordance with the provisions of the long-term incentive plan in effect on the termination date.

Adam J. Schoenberg

Adam J. Schoenberg voluntarily terminated his employment with the Company effective April 30, 2023. Adam J. Schoenberg’s employment agreement provided for the following if his employment was terminated for any reason: (i) a lump sum payment in an amount equal to the sum of the earned but unpaid base salary through the termination date plus the accrued but unused vacation days at the base salary in effect as of the termination date; plus (ii) any other benefits or rights accrued or earned through the termination date in accordance with the terms of the applicable fringe or employee benefit plans and programs (including any vested rights to outstanding equity awards pursuant to the terms of such equity awards).

Darcy A. Campbell

Darcy A. Campbell’s employment agreement provides that if his employment is terminated for just cause (as defined in his employment agreement), then Mr. Campbell shall receive any remuneration and benefits that have accrued and are unpaid up to and including the termination date and, any other minimum entitlements under the Employment Standards Code (Alberta), as amended.

If Mr. Campbell’s employment is terminated (i) without just cause, or (ii) at the election of Mr. Campbell within ninety days following a change of control (as defined in his employment agreement), then Mr. Campbell shall receive (a) payment of any remuneration that has accrued and is unpaid up to and including the termination date, (b) payment of earned but unpaid bonus amounts, (c) all accrued and unused vacation pay and reimbursable expenses owing up to and including the termination date, and (d) a lump sum payment representing the following: (I) twenty-four months of his salary at the time of the termination, and (II) an additional amount equal to two multiplied by the amount that is the average of the total annual bonus amount paid to Mr. Campbell over the three most recently completed financial years, provided however that if, at the time of termination, three financial years have not been completed, the amount shall be determined on the basis of the number of financial years completed at that time.

If Mr. Campbell’s employment terminates as a result of his death, then Mr. Campbell’s estate will be entitled to (i) payment of any portion of his annual salary due and owing up to the termination date, (ii) reimbursement of all expenses properly incurred up to such date, (iii) payment for any vacation pay, accrued but unpaid as of such date, and (iv) any other minimum entitlements under the Employment Standards Code (Alberta), as amended.

Director Compensation

Until December 15, 2021, there were no nonemployee directors of the Company and there was no compensation paid to directors. On April 14, 2022, each of the current nonemployee directors of the Company was issued options to purchase 20,000 Common Shares, with a five-year term and an exercise price of $5.00 per Common Share. The options will vest as follows: one-third on the first anniversary of the date of grant, one-third on the second anniversary of the date of grant, and one-third on the third anniversary of the date of grant. The Compensation Committee periodically reviews our director compensation practices.

The Compensation Committee believes that our director compensation is fair and appropriate in light of the responsibilities and obligations of our directors.

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Fiscal Year 2022 Director Compensation Table

The following table lists the fiscal year 2022 compensation for each person who served as a nonemployee director during fiscal year 2022. This table does not include compensation paid to Cory J. Rosenberg and Chris L. Claussen, who serve as directors now and served as directors during fiscal year 2022. Neither Mr. Rosenberg nor Mr. Claussen received compensation for their services as directors during fiscal year 2022. Mr. Rosenberg is a Named Executive Officer and his compensation is set forth in “Executive Compensation” beginning on page 79 of this prospectus.

Name	Fees Earned or Paid in Cash ($)		Stock Awards ($)		Option Awards ($)		Non-Equity Incentive Plan Compensation ($)		Nonqualified Deferred Compensation Earnings ($)		All Other Compensation ($)		Total ($)
Ariel Fainsod		0		0		91,718		0		0		0		91,718
Gail D. Hamilton Azodo		0		0		91,718		0		0		0		91,718
Rosema J. Nemorin		0		0		91,718		0		0		0		91,718

Compensation Committee Interlocks and Insider Participation

None of the members of the Compensation Committee has served as an officer or employee of the Company or has any relationship with the Company that is required to be disclosed under the heading “Certain Relationships and Related Party Transactions”. No executive officer of the Company served or serves on the compensation committee (or other board committee performing equivalent functions) of any company that employed or employs as an executive officer any member of the Company’s Compensation Committee.

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CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

Transactions with Related Persons, Promoters, and Certain Control Persons

On April 21, 2021, the Company provided a $25,000 advance to Chris L. Claussen, the Company’s Chief Innovation Officer, for capital expenses related to the Company’s facility in Olympia, Washington. Chris L. Claussen has submitted expense reports for the purchase of the capital expenses, and receipts for the full amount of the advance were submitted by December 8, 2021.

On August 12, 2021, the Company provided a $10,500 advance to Joseph Claussen, the Company’s Director of Business Development, for travel related expenses. On October 1, 2021, the Company provided an additional $5,000 advance. Joseph Claussen has submitted expense reports for incurred expenses, and receipts for the full amount of the advance were submitted by November 23, 2021.

On September 29, 2021, the Company assumed that certain WeWork Membership Agreement, as amended, between 3900 W Alameda Ave Tenant LLC and Cory J. Rosenberg, the Company’s Chairman, Chief Executive Officer, and President (the “Initial Membership Agreement”). Mr. Rosenberg entered into the Initial Membership Agreement on February 25, 2021, for a five-person office, with a term of six months commencing on March 1, 2021, and expiring on August 31, 2021. The Initial Membership Agreement was subsequently amended to extend the expiration date until February 28, 2022, and to move to a ten-person office beginning September 1, 2021, with the rent increasing to $5,450 per month beginning September 1, 2021, with a discount of $1,908 per month from September 1, 2021, until February 28, 2022. On September 29, 2021, First Person assumed the Initial Membership Agreement. In connection with the Company’s assumption of the Membership Agreement, the Membership Agreement was amended to move from a ten-person office to a thirteen-person office, with the term for the new office space commencing on October 1, 2021, and expiring on October 31, 2021, with the rent increasing from $5,450 per month to $6,750 per month beginning October 1, 2021, with a discount of $3,208 per month from October 1, 2021, until June 30, 2022. The Initial Membership Agreement was subsequently amended further to provide for a new lease term with a start date of August 1, 2022, and an end date of April 30, 2023. The rent was $5,950 per month for the duration of the term; however, First Person received a discount of $2,050 per month for the duration of the term. In early October 2022, WeWork announced it was closing the office in which First Person rented office space, and therefore WeWork terminated the Initial Membership Agreement. See “Properties” on page 71 of this prospectus for information regarding the Company’s current leases.

During the year ended December 31, 2022, Cory J. Rosenberg, the Company’s Chairman, Chief Executive Officer, and President, incurred digital advertising expenditures on behalf of the Company, subject to expense reporting and reimbursement. As of December 31, 2022, there was $643,407 due to Cory J. Rosenberg for digital advertising expenses including Meta, Google, and TikTok, of which $229,545 remained outstanding and due to Mr. Rosenberg as of September 12, 2023. The Company will pay such amounts out of the net proceeds from this offering that are allocated for general corporate purposes, further research and development and product innovation, marketing spend and brand development, capital expenditures, and working capital. See “Use of Proceeds” on page 42 of this prospectus.

On January 3, 2023, the Company issued to Cory J. Rosenberg, the Company’s Chairman, Chief Executive Officer, and President, a convertible secured promissory note in the principal amount of $271,739 and 271,739 Series 1 Shares in exchange for $250,000. Interest on the principal amount outstanding and remaining from time to time on the convertible secured promissory note accrues at the rate of 8 percent per annum. Interest is payable in cash on a quarterly basis on the last day of each quarter, commencing with the first quarter ending March 31, 2023. Interest is calculated on the basis of a 360-day year consisting of twelve, 30-day months. See “Description of Share Capital – Convertible Secured Promissory Notes” beginning on page 93 of this prospectus for additional information regarding the terms of the convertible secured promissory note. The convertible secured promissory note, including the outstanding principal amount together with all applicable accrued and unpaid interest thereunder, is convertible, in whole or in part, into Common Shares at the option of Mr. Rosenberg (subject to certain limitations set forth in the convertible secured promissory note) at a conversion price equal to $6.00 per Common Share (subject to certain adjustments set forth in the convertible secured promissory note). The convertible secured promissory note is payable in accordance with the following schedule: (i) if a Qualifying Transaction occurs 30 days or more before the date that is one year after the date of such convertible secured promissory note, then (a) 50 percent of the principal amount is payable on the thirtieth calendar day after the date of the first Qualifying Transaction occurring after the date of such convertible secured promissory note; and (b) the remaining 50 percent of the principal amount is payable on the earlier to occur of (1) the ninetieth calendar day after the date of the first Qualifying Transaction occurring after the date of such convertible secured promissory note, or (2) the date that is one year after the date of such convertible secured promissory note, and (ii) if a Qualifying Transaction does not occur, or occurs less than 30 days, before the date that is one year after the date of such convertible secured promissory note, then 100 percent of the principal amount is payable on the date that is one year after the date of such convertible secured promissory note. The Primary Offering is expected to qualify as a Qualifying Transaction under the terms of the convertible secured promissory notes. Therefore, to the extent Mr. Rosenberg does not elect to convert the outstanding principal and accrued and unpaid interest into Common Shares such amounts will become payable in accordance with the schedule set forth above and the Company will pay such amounts out of the net proceeds from this offering that are allocated for general corporate purposes, further research and development and product innovation, marketing spend and brand development, capital expenditures, and working capital. See “Use of Proceeds” on page 42 of this prospectus.

On January 9, 2023, the Company issued to Darcy A. Campbell, the Company’s Chief Financial Officer, a convertible secured promissory note in the principal amount of $100,000 and 100,000 Series 1 Shares in exchange for $92,000. Interest on the principal amount outstanding and remaining from time to time on the convertible secured promissory note accrues at the rate of 8 percent per annum. Interest is payable in cash on a quarterly basis on the last day of each quarter, commencing with the first quarter ending March 31, 2023. Interest is calculated on the basis of a 360-day year consisting of twelve, 30-day months. See “Description of Share Capital – Convertible Secured Promissory Notes” beginning on page 93 of this prospectus for additional information regarding the terms of the convertible secured promissory note. The convertible secured promissory note, including the outstanding principal amount together with all applicable accrued and unpaid interest thereunder, is convertible, in whole or in part, into Common Shares at the option of Mr. Campbell (subject to certain limitations set forth in the convertible secured promissory note) at a conversion price equal to $6.00 per Common Share (subject to certain adjustments set forth in the convertible secured promissory note). The convertible secured promissory note is payable in accordance with the following schedule: (i) if a Qualifying Transaction occurs 30 days or more before the date that is one year after the date of such convertible secured promissory note, then (a) 50 percent of the principal amount is payable on the thirtieth calendar day after the date of the first Qualifying Transaction occurring after the date of such convertible secured promissory note; and (b) the remaining 50 percent of the principal amount is payable on the earlier to occur of (1) the ninetieth calendar day after the date of the first Qualifying Transaction occurring after the date of such convertible secured promissory note, or (2) the date that is one year after the date of such convertible secured promissory note, and (ii) if a Qualifying Transaction does not occur, or occurs less than 30 days, before the date that is one year after the date of such convertible secured promissory note, then 100 percent of the principal amount is payable on the date that is one year after the date of such convertible secured promissory note. The Primary Offering is expected to qualify as a Qualifying Transaction under the terms of the convertible secured promissory notes. Therefore, to the extent Mr. Campbell does not elect to convert the outstanding principal and accrued and unpaid interest into Common Shares such amounts will become payable in accordance with the schedule set forth above and the Company will pay such amounts out of the net proceeds from this offering that are allocated for general corporate purposes, further research and development and product innovation, marketing spend and brand development, capital expenditures, and working capital. See “Use of Proceeds” on page 42 of this prospectus.

On September 7, 2023, the Company issued to Cory J. Rosenberg, the Company’s Chairman, Chief Executive Officer, and President, a convertible secured promissory note in the principal amount of $108,696 and 108,695 Series 1 Shares in exchange for $100,000. Interest on the principal amount outstanding and remaining from time to time on the convertible secured promissory note accrues at the rate of 8 percent per annum. Interest is payable in cash on a quarterly basis on the last day of each quarter, commencing with the quarter ending September 30, 2023. Interest is calculated on the basis of a 360-day year consisting of twelve, 30-day months. See “Description of Share Capital – Convertible Secured Promissory Notes” beginning on page 93 of this prospectus for additional information regarding the terms of the convertible secured promissory note. The convertible secured promissory note, including the outstanding principal amount together with all applicable accrued and unpaid interest thereunder, is convertible, in whole or in part, into Common Shares at the option of Mr. Rosenberg (subject to certain limitations set forth in the convertible secured promissory note) at a conversion price equal to $6.00 per Common Share (subject to certain adjustments set forth in the convertible secured promissory note). The convertible secured promissory note is payable in accordance with the following schedule: (i) if a Qualifying Transaction occurs 30 days or more before the date that is one year after the date of such convertible secured promissory note, then (a) 50 percent of the principal amount is payable on the thirtieth calendar day after the date of the first Qualifying Transaction occurring after the date of such convertible secured promissory note; and (b) the remaining 50 percent of the principal amount is payable on the earlier to occur of (1) the ninetieth calendar day after the date of the first Qualifying Transaction occurring after the date of such convertible secured promissory note, or (2) the date that is one year after the date of such convertible secured promissory note, and (ii) if a Qualifying Transaction does not occur, or occurs less than 30 days, before the date that is one year after the date of such convertible secured promissory note, then 100 percent of the principal amount is payable on the date that is one year after the date of such convertible secured promissory note. The Primary Offering is expected to qualify as a Qualifying Transaction under the terms of the convertible secured promissory notes. Therefore, to the extent Mr. Rosenberg does not elect to convert the outstanding principal and accrued and unpaid interest into Common Shares such amounts will become payable in accordance with the schedule set forth above and the Company will pay such amounts out of the net proceeds from this offering that are allocated for general corporate purposes, further research and development and product innovation, marketing spend and brand development, capital expenditures, and working capital. See “Use of Proceeds” on page 42 of this prospectus.

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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED SHAREHOLDER MATTERS

The following table sets forth certain information regarding the beneficial ownership of Common Shares by (i) each person known by the Company to be the beneficial owner of more than 5 percent of the outstanding Common Shares, (ii) each of the Company’s directors and Named Executive Officers, and (iii) all directors and executive officers of the Company as a group. Unless otherwise noted in the footnotes to the table, to the best of the Company’s knowledge, the persons named in the table have sole voting and investing power with respect to all Common Shares indicated as being beneficially owned by them and except as otherwise noted, the address of the referenced individual is c/o First Person Ltd., 1840, 444 – 5^th Ave., SW, Calgary, AB, T2P 2T8.

Unless otherwise noted, the security ownership information provided below is given as of September 12, 2023, and all securities are owned directly.

			Percentage Common Shares beneficially owned
Name	Common Shares (1)		Before Offering (2)			After Offering (3)
5% or greater shareholders
Cory J. Rosenberg (4)		908,599		12.7	%		9.0	%
Chris L. Claussen		750,000		10.5	%		7.5	%
Joseph Claussen		730,000		10.2	%		7.3	%
Stephen Leider		706,400		9.9	%		7.1	%
Luminous Capital Inc. (5)		600,000		8.4	%		6.0	%
Fishing Pole Partners 5.14, LP (6)		446,874		6.2	%		4.4	%
Directors and Named Executive Officers
Cory J. Rosenberg (4)		908,599		12.7	%		9.0	%
Chris L. Claussen		750,000		10.5	%		7.5	%
Darcy A. Campbell		261,111		3.6	%		2.6	%
Adam J. Schoenberg		30,000		*			*
Ariel Fainsod		6,667		*			*
Gail D. Hamilton Azodo		6,667		*			*
Rosema J. Nemorin		6,667		*			*
All directors and executive officers as a group (seven persons)		1,969,711		27.0	%		19.3	%

*

Indicates percentage of less than 1%.

(1)

Includes Common Shares subject to convertible securities, stock options, or warrants that are or become convertible or exercisable within sixty days of September 12, 2023, as set forth in the table below. The number of Common Shares issuable upon conversion of the Series 1 Shares is calculated as of the date of this prospectus as follows: (i) with respect to the 1,748,970 Series 1 Shares issued on January 3, 2023, January 9, 2023, and February 6, 2023, (a) the aggregate number of Series 1 Shares outstanding, divided by (b) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus; and (ii) with respect to the 1,589,130 Series 1 Shares issued on March 31, 2023, and September 7, 2023, (a) the aggregate number of Series 1 Shares outstanding, multiplied by (b) 0.6, divided by (c) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus. The actual number of Common Shares issuable upon conversion of the outstanding Series 1 Shares may increase or decrease on a future date based on when the closing of the Primary Offering occurs and the actual offering price per Common Share. See “Description of Share Capital – Preferred Shares” on page 93 of this prospectus for more information regarding the conversion of the Series 1 Shares.

	Common Shares issuable upon conversion or exercise of
	Series 1 Shares		Stock Options		Warrants
Cory J. Rosenberg		93,599		50,000		-
Chris L. Claussen		-		50,000		-
Joseph Claussen		-		40,000		-
Fishing Pole Partners 5.14, LP		181,160		-		88,571
Darcy A. Campbell		27,778		78,333		-
Ariel Fainsod		-		6,667		-
Gail D. Hamilton Azodo		-		6,667		-
Rosema J. Nemorin		-		6,667		-

(2)	Percentage ownership information is based on 7,102,033 Common Shares issued and outstanding, which gives effect to the conversion of all outstanding Series 1 Shares into 750,679 Common Shares. Any holder of Series 1 Shares may, at any time, elect to convert all or any portion of the outstanding Series 1 Shares held by such holder into Common Shares. The Series 1 Shares will automatically convert into Common Shares on the date that is 12 months after the closing of the Primary Offering. The number of Common Shares issuable upon conversion of the Series 1 Shares is calculated as of the date of this prospectus as follows: (i) with respect to the 1,748,970 Series 1 Shares issued on January 3, 2023, January 9, 2023, and February 6, 2023, (a) the aggregate number of Series 1 Shares outstanding, divided by (b) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus; and (ii) with respect to the 1,589,130 Series 1 Shares issued on March 31, 2023, and September 7, 2023, (a) the aggregate number of Series 1 Shares outstanding, multiplied by (b) 0.6, divided by (c) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus. The actual number of Common Shares issuable upon conversion of the outstanding Series 1 Shares may increase or decrease on a future date based on when the closing of the Primary Offering occurs and the actual offering price per Common Share. See “Description of Share Capital – Preferred Shares” on page 93 of this prospectus for more information regarding the conversion of the Series 1 Shares. Common Shares that a person has the right to acquire within sixty days of September 12, 2023, are deemed outstanding for purposes of computing the percentage ownership of the person holding such rights, but are not deemed outstanding for purposes of computing the percentage ownership of any other person, except with respect to the percentage ownership of all directors and executive officers of the Company as a group.
(3)	Percentage ownership information is based on 10,002,033 Common Shares issued and outstanding assuming completion of this offering, based on the assumed Primary Offering price of $4.50 per share. Common Shares that a person has the right to acquire within sixty days of September 12, 2023, are deemed outstanding for purposes of computing the percentage ownership of the person holding such rights, but are not deemed outstanding for purposes of computing the percentage ownership of any other person, except with respect to the percentage ownership of all directors and executive officers of the Company as a group.
(4)	Includes 15,000 Common Shares held jointly with Mr. Rosenberg’s spouse.
(5)	The following natural persons have shared voting and investment power over the shares held by Luminous Capital Inc.: (i) Joshua Mann, (ii) John Darwin, and (iii) Mac McDonald. The address for Luminous Capital Inc. is 207 9 Ave. SW FL 10, Calgary, Alberta, T2P 1K3.
(6)	The following natural person has sole voting and investment power over the shares held by Fishing Pole Partners 5.14, LP: Jeffrey A. Keswin. The address for Fishing Pole Partners 5.14, LP is 250 W. 55th St., Floor 37, New York, NY 10019.

86

SELLING SHAREHOLDERS

Selling Shareholder Shares

This prospectus includes the possible resale by the selling shareholders of up to 2,330,364 Common Shares.

The selling shareholders may sell some, all, or none of their selling shareholder shares. We do not know how long the selling shareholders will hold the selling shareholder shares before selling them, and we currently have no agreements, arrangements, or understandings with the selling shareholders regarding the sale of any of the selling shareholder shares. Unless otherwise indicated in the footnotes to the below table, no selling shareholder has had any material relationship with us or any of our affiliates within the past three years other than as a securityholder of our company.

Unless otherwise indicated in the footnotes below, we believe that: (i) none of the selling shareholders are broker-dealers or affiliates of broker-dealers, and (ii) no selling shareholder has direct or indirect agreements or understandings with any person to distribute their selling shareholder shares. To the extent any selling shareholder is, or is affiliated with, a broker-dealer, it could be deemed to be an “underwriter” within the meaning of the Securities Act. Information about the selling shareholders may change over time.

The following table presents information regarding the selling shareholders and the selling shareholder shares that each may offer and sell from time to time under this prospectus. The table reflects the holdings of the selling shareholders as of September 12, 2023. Beneficial ownership is determined in accordance with the rules of the SEC, and thus represents voting or investment power with respect to our securities. Under such rules, beneficial ownership includes any shares over which the individual has sole or shared voting power or investment power as well as any shares that the individual has the right to acquire within sixty days after the date of this prospectus. To our knowledge and subject to applicable community property rules, the selling shareholders have sole voting and sole investment power with respect to all equity interests beneficially owned.

Selling Shareholder	Number of Common Shares Owned (1)		Number of Common Shares Being Registered		Number of Common Shares Owned After Offering (1)(2)		Percentage Owned After Offering (2)(3)
Fishing Pole Partners 5.14, LP (4)		446,874		177,143		269,731		3.4	%
Glen E. Tullman Revocable Trust (5)		258,214		172,143		86,071		1.1	%
Samuel Tullman		258,214		172,143		86,071		1.1	%
Nadir Nathoo		100,000		100,000		-		-
Dean M. Rottermond		92,250		61,500		30,750		*
Nathan Learner		60,000		60,000		-		-
New Bullet LLC (6)		55,000		55,000		-		-
LE Fund I, a series of Big Cocoon Investment 33, LP (7)		50,400		50,400		-		-
Vinergy Capital Inc . (8)		75,000		50,000		25,000		*
Hugh Porter		50,000		50,000		-		-
Sybil Garry		50,000		50,000		-		-
Benjamin Tullman		50,000		50,000		-		-
Haywood Securities Trust (9)		40,000		40,000		-		-
The Morrison Investment Trust (10)		100,386		40,000		60,386		*
The Leibovic Living Trust dated January 13, 1992 (11)		77,596		45,000		32,596		*
Sandler Living Trust (12)		35,000		35,000		-
David Jackson		51,645		34,430		17,215		*
William Musselman		51,471		34,314		17,157		*
Michael James Sawyer		32,000		32,000		-		-
Adam Schoenberg (13)		30,000		30,000		-		-
Money Tree Investors, LLC (14)		42,857		28,571		14,286		*
Danny Hall		41,274		27,516		13,758		*
Opulencia, LLC (15)		40,116		26,744		13,372		*
Darryl Campbell		25,000		25,000		-		-
J2 Investment Partners (16)		25,000		25,000		-		-
Matthew K. Singer		25,000		25,000		-		-
Solidaire Investments Inc. (17)		25,000		25,000		-		-
The Sydney Davis Trust u/a dated November 6, 2017 (18)		25,000		25,000		-		-
Aidan Doyle		22,400		22,400		-		-
Terrence M. Garrigan		31,371		20,914		10,457		*
Red Antler Ventures 3 LLC (19)		30,986		20,657		10,329		*
Amanda Gold		20,000		20,000		-		-
Justin Wolf		20,000		20,000		-		-
Samantha Ciapponi		36,667		20,000		16,667		*
Mountaintop Investment Partnership (20)		17,500		17,500		-		-
Chrysalis Angel Fund LLC (21)		16,000		16,000		-		-
Henry Baskerville		16,000		16,000		-		-
Peter Cheung		22,500		15,000		7,500		*
Brelaur Services Inc. (22)		15,000		15,000		-		-
Waymore, LLC (23)		15,000		15,000		-		-
Sea to Summit Trading Corp. (24)		21,429		14,286		7,143		*
Gareth Randall		14,500		13,000		1,500		*
Andrew Kenny		12,800		12,800		-		-
Angelica Belle Sinito		12,800		12,800		-		-
Cecily Kenny		12,800		12,800		-		-
David G. McDonald Jr.		12,800		12,800		-		-
Dixon McDonald		12,800		12,800		-		-
Forrest Ackerman		51,447		12,800		38,647		*
David G. McDonald		12,700		12,700		-		-
Ilie Onulov		12,500		12,500		-		-
John Ver Bockel		12,500		12,500		-		-
Jose Martin Desmaras Luzuriaga		12,500		12,500		-		-
Geoffrey S. Bradshaw-Mack (25)		12,000		12,000		-		-
Azim Lakhoo		15,000		10,000		5,000		*
Rishi A. Dani (26)		15,000		10,000		5,000		*
Dorothy Mann		10,000		10,000		-		-
Joe Brennan Professional Corporation (27)		10,000		10,000		-		-
John C. Darwin III		10,000		10,000		-		-
Thomas A. Waltermire Revocable Trust (28)		10,000		10,000		-		-
Chris Bonds		10,000		10,000		-		-
Albright Abstract & Title Guaranty Co. (29)		10,000		10,000		-		-
Titan Title & Closing, LLC (30)		10,000		10,000		-		-
Dirk Erich Michael Schwager		10,000		10,000		-		-
Lutetia, LLC (31)		10,000		10,000		-		-
Pelorus Equity Group Inc. (32)		10,000		10,000		-		-
Travis Goad Special Trust (33)		10,000		10,000		-		-
James O’Connor		9,600		9,600		-		-
Mana Capital Group (34)		9,443		9,443		-		-
William Young & Kristen Young Jt Ten		9,246		9,246		-		-
Daniel J. Sutera		13,050		8,700		4,350		*
Litsa Perperidis		8,000		8,000		-		-
Cole Collins		7,500		7,500		-		-
Eric Clarke		7,500		7,500		-		-
Hobie Higgins		7,500		7,500		-		-
Samir Ghai		7,500		7,500		-		-
Independent Trading Group Inc. (35)		10,725		7,150		3,575		*
Jodi Beswetherick		10,715		7,143		3,572		*
Bruce Walter		10,714		7,143		3,571		*
Stephanie Hannagan		28,830		7,143		21,687		*
Mauro Zappaterra (36)		26,400		6,400		20,000		*
Chris Kenny		6,400		6,400		-		-
Colby Zeka		6,400		6,400		-		-
John Pettersson		6,400		6,400		-		-
Tanner Caldwell		6,400		6,400		-		-
William Michels		6,400		6,400		-		-
Schwar Account (37)		6,300		6,300		-		-
Arielle Chesler		6,000		6,000		-		-
Not Anonymous AZN, LLC (38)		6,000		6,000		-		-
Cindy Gibson		8,571		5,714		2,857		*
Margo Landskron		8,571		5,714		2,857		*
Eugene Chen		7,500		5,000		2,500		*
Ben Garrigan		5,000		5,000		-		-
Bradley Hatfield		5,000		5,000		-		-
Zack Lister		5,000		5,000		-		-
JRS Capital Holdings, LLC (39)		5,000		5,000		-		-
Tyler Kowalske		5,000		5,000		-		-
Matthew Schwarmann		5,000		5,000		-		-
Thomas Ryan Beckham		5,000		5,000		-		-
Stephen A. Roth		4,800		4,800		-		-
Jaye Pye		6,450		4,300		2,150		*
John Purdy		4,000		4,000		-		-
Phalanx Advisory Ltd. (40)		3,750		3,750		-		-
Alexander C Garry		5,250		3,500		1,750		*
Gordon Andre Breault		3,500		3,500		-		-
Michael Strauss		3,200		3,200		-		-
Gordon Rumohr		4,500		3,000		1,500		*
Gerado J. Portela and Amy Williams Navarro Jt Ten		3,000		3,000		-		-
Brandon Clay Brown & Heather Nicole Brown Jt Ten		3,000		3,000		-		-
Erin Flaherty		4,286		2,857		1,429		*
Deanna Selent		2,500		2,500		-		-
Eric Landskron		2,500		2,500		-		-
Mark Selent		2,500		2,500		-		-
Michael Garrett Brafford		2,500		2,500		-		-
Michael Duffy		5,519		2,500		3,019		*
Matthew Lindauer		3,000		2,000		1,000		*
Carleton Thomas Vangsness Jr		2,000		2,000		-		-
Mandy Belkin		1,600		1,600		-		-
All selling shareholders as a group		3,174,817		2,330,364		844,453		8.6	%

*

Indicates percentage of less than 1%.

(1)

Includes Common Shares subject to convertible securities, stock options, or warrants that are or become convertible or exercisable within sixty days of September 12, 2023, as set forth in the table below. The number of Common Shares issuable upon conversion of the Series 1 Shares is calculated as of the date of this prospectus as follows: (i) with respect to the 1,748,970 Series 1 Shares issued on January 3, 2023, January 9, 2023, and February 6, 2023, (a) the aggregate number of Series 1 Shares outstanding, divided by (b) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus; and (ii) with respect to the 1,589,130 Series 1 Shares issued on March 31, 2023, and September 7, 2023, (a) the aggregate number of Series 1 Shares outstanding, multiplied by (b) 0.6, divided by (c) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus. The actual number of Common Shares issuable upon conversion of the outstanding Series 1 Shares may increase or decrease  on a future date based on when the closing of the Primary Offering occurs and the actual offering price per Common Share. See “Description of Share Capital – Preferred Shares” on page 93 of this prospectus for more information regarding the conversion of the Series 1 Shares.

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	Common Shares issuable upon conversion or exercise of
	Series 1 Shares		Stock Options		Warrants
Fishing Pole Partners 5.14, LP		181,160		-		88,571
Glen E. Tullman Revocable Trust		-		-		86,071
Samuel Tullman		-		-		86,071
Dean M. Rottermond		-		-		30,750
Vinergy Capital Inc.		-		-		25,000
The Morrison Investment Trust		60,386		-		-
The Leibovic Living Trust dated January 13, 1992		15,096		-		17,500
David Jackson		-		-		17,215
William Musselman		-		-		17,157
Money Tree Investors, LLC		-		-		14,286
Danny Hall		-		-		13,758
Opulencia, LLC		-		-		13,372
Terrence M. Garrigan		-		-		10,457
Red Antler Ventures 3 LLC		-		-		10,329
Samantha Ciapponi		16,667		-		-
Peter Cheung		-		-		7,500
Sea to Summit Trading Corp.		-		-		7,143
Gareth Randall		-		-		1,500
Forrest Ackerman		38,647		-		-
Azim Lakhoo		-		-		5,000
Rishi A. Dani		-		-		5,000
Daniel J. Sutera		-		-		4,350
Independent Trading Group Inc.		-		-		3,575
Jodi Beswetherick		-		-		3,572
Bruce Walter		-		-		3,571
Stephanie Hannagan		18,116		-		3,571
Mauro Zappaterra		-		20,000		-
Cindy Gibson		-		-		2,857
Margo Landskron		-		-		2,857
Eugene Chen		-		-		2,500
Jaye Pye		-		-		2,150
Alexander C Garry		-		-		1,750
Gordon Rumohr		-		-		1,500
Erin Flaherty		-		-		1,429
Michael Duffy		3,019		-		-
Matthew Lindauer		-		-		1,000
Total Selling Shareholders		333,091		20,000		491,362

(2)

Assumes all Common Shares offered by the selling shareholders hereby are sold and that the selling shareholders buy or sell no additional Common Shares prior to the completion of this offering. The registration of these Common Shares does not necessarily mean that the selling shareholders will sell all or any portion of the Common Shares covered by this prospectus.

(3)

Percentage ownership information is based on 10,002,033 Common Shares issued and outstanding, assuming completion of the Primary Offering, based on the assumed Primary Offering price of $4.50 per share, and giving effect to the conversion of all outstanding Series 1 Shares into 750,679 Common Shares. Any holder of Series 1 Shares may, at any time, elect to convert all or any portion of the outstanding Series 1 Shares held by such holder into Common Shares. The Series 1 Shares will automatically convert into Common Shares on the date that is 12 months after the closing of the Primary Offering. The number of Common Shares issuable upon conversion of the Series 1 Shares is calculated as of the date of this prospectus as follows: (i) with respect to the 1,748,970 Series 1 Shares issued on January 3, 2023, January 9, 2023, and February 6, 2023, (a) the aggregate number of Series 1 Shares outstanding, divided by (b) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus; and (ii) with respect to the 1,589,130 Series 1 Shares issued on March 31, 2023, and September 7, 2023, (a) the aggregate number of Series 1 Shares outstanding, multiplied by (b) 0.6, divided by (c) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus. The actual number of Common Shares issuable upon conversion of the outstanding Series 1 Shares may increase or decrease on a future date based on when the closing of the Primary Offering occurs and the actual offering price per Common Share. See “Description of Share Capital – Preferred Shares” on page 93 of this prospectus for more information regarding the conversion of the Series 1 Shares. In addition, Common Shares that a person has the right to acquire within sixty days of September 12, 2023, are deemed outstanding for purposes of computing the percentage ownership of the person holding such rights, but are not deemed outstanding for purposes of computing the percentage ownership of any other person, except with respect to the percentage ownership of all selling shareholders as a group.

88

(4)	The following natural person has sole voting and investment power over the shares held by Fishing Pole Partners 5.14, LP: Jeffrey A. Keswin. The address for Fishing Pole Partners 5.14, LP is 250 W. 55th St., Floor 37, New York, NY 10019.
(5)	The following natural person has sole voting and investment power over the shares held by the Glen E. Tullman Revocable Trust: Glenn E. Tullman. The address for the Glen E. Tullman Revocable Trust is 250 E. Pearson St., Apt. 1205, Chicago, IL 60611.
(6)	The following natural person has sole voting and investment power over the shares held by New Bullet LLC: Ruben Margolis. The address for New Bullet LLC is 112 E. Pecan St., Suite 525, San Antonio, TX 78205.
(7)	The following natural person has sole voting and investment power over the shares held by LE Fund I, a series of Big Cocoon Investment 33, LP: Brett Sagan. The address for LE Fund I is 119 S. Main St., Suite 200, Seattle, WA 98104.
(8)	The following natural person has sole voting and investment power over the shares held by Vinergy Capital Inc: Alnoor Nathoo. The address for Vinergy Capital Inc is 1000 – 409 Granville St., Vancouver, British Columbia, V6C 1T2.
(9)	The following natural person has sole voting and investment power over the shares held by Haywood Securities Trust: Jonathan W. Summers. The address for Haywood Securities Trust is 700 – 200 Buddard St., Vancouver, British Columbia, V6C 3L6.
(10)	The following natural person has sole voting and investment power over the shares held by The Morrison Investment Trust: Troy Morrison. The address for The Morrison Investment Trust is 170 Burswood Rd., Unit 1, Western Australia, 6100.
(11)	The following natural persons have shared voting and investment power over the shares held by The Leibovic Living Trust dated January 13, 1992: (i) Aaron J. Leibovic and (ii) Sheila Leibovic. The address for The Leibovic Living Trust dated January 13, 1992 is 12828 Marlboro St., Los Angeles, CA 90049.
(12)	The following natural person has sole voting and investment power over the shares held by the Sandler Living Trust: Nathan B. Sandler. The address for the Sandler Living Trust is 6427 E. Lude Ave., Paradise Valley, AZ 85253.
(13)	Mr. Schoenberg is our former Chief Marketing Officer and one of our Named Executive Officers. Mr. Schoenberg voluntarily terminated his employment with the Company effective April 30, 2023.
(14)	The following natural person has sole voting and investment power over the shares held by Money Tree Investors, LLC: Eric Speidell. The address for Money Tree Investors, LLC is 6421 N. Florida Ave., Suite D, Unit #303, Tampa, FL 33604.
(15)	The following natural person has sole voting and investment power over the shares held by Opulencia, LLC: Kyle Speidell. The address for Opulencia, LLC is 777 Brickell Ave., Suite 500, Miami, FL 33131.
(16)	The following natural person has sole voting and investment power over the shares held by J2 Investment Partners: Jason A. Presley. The address for J2 Investment Partners is 17 Latham Park, Elkins Park, PA 19027.
(17)	The following natural person has sole voting and investment power over the shares held by Solidaire Investments Inc.: Mohamed Elsaghir. The address for Solidaire Investments Inc. is 141 Aspen Ridge Pl. SW, Calgary, Alberta, T3J 3T8.
(18)	The following natural person has sole voting and investment power over the shares held by The Sydney Davis Trust u/a dated November 6, 2017: Sydney Davis. The address for The Sydney Davis Trust u/a dated November 6, 2017 is 547A Congress St., Unit 602, Portland, ME 04101.
(19)	The following natural persons have shared voting and investment power over the shares held by Red Antler Ventures 3 LLC: (i) JB Osborne and (ii) Emily Heywood. The address for Red Antler Ventures 3 LLC is 20 Jay St., Suite 402, Brooklyn, NY 11201.
(20)	The following natural person has sole voting and investment power over the shares held by Mountaintop Investment Partnership: Gregory Lindsay. The address for Mountaintop Investment Partnership is 2728 5 Ave. NW, Calgary, Alberta, T2N 0T8.
(21)	The following natural persons have shared voting and investment power over the shares held by Chrysalis Angel Fund LLC: (i) Julie Herzog and (ii) Henry Baskerville. The address for Chrysalis Angel Fund LLC is 1900 Wazee St., Suite 300, Denver, CO 80202.
(22)	The following natural persons have shared voting and investment power over the shares held by Brelaur Services Inc.: (i) Darryl Campbell and (ii) Lynn Campbell. The address for Brelaur Services Inc. is 77 Hidden Ranch Ct. NW, Calgary, Alberta, T3A 5W4.

89

(23)	The following natural person has sole voting and investment power over the shares held by Waymore, LLC: Wilbur N. Gregory. The address for Waymore, LLC is 221 W 15th St., Willington, KS 67152.
(24)	The following natural person has sole voting and investment power over the shares held by Sea to Summit Trading Corp.: Gregory Lindsay. The address for Sea to Summit Trading Corp. is 1400 – 350 7 Ave. SW., Calgary, Alberta, T2P 3N9.
(25)	Mr. Bradshaw-Mack is a partner in Far Hills Group, LLC, a FINRA registered broker-dealer, and is therefore an affiliate of a broker-dealer, but Mr. Bradshaw-Mack does not have any direct or indirect agreement or understanding with any person to distribute the shares to be registered in this offering.
(26)	Mr. Dani works for Canadian Imperial Bank of Commerce (CIBC), which is a FINRA registered broker-dealer, and is therefore an affiliate of a broker-dealer, but Mr. Dani does not have any direct or indirect agreement or understanding with any person to distribute the shares to be registered in this offering.
(27)	The following natural person has sole voting and investment power over the shares held by Joe Brennan Professional Corporation: Joe Brennan. The address for Joe Brennan Professional Corporation is 28 Tuscany Ridge Green NW, Calgary, Alberta, T3L 2J4.
(28)	The following natural person has sole voting and investment power over the shares held by Thomas A. Waltermire Revocable Trust: Thomas A. Waltermire. The address for Thomas A. Waltermire Revocable Trust is 6 Lake Front Dr., Akron, OH 44319.
(29)	The following natural person has sole voting and investment power over the shares held by Albright Abstract & Title Guaranty Co.: Jason Hadrava. The address for Albright Abstract & Title Guaranty Co. is 102 N. Main St., Newkirk, OK 74647.
(30)	The following natural person has sole voting and investment power over the shares held by Titan Title & Closing, LLC: Jason Hadrava. The address for Titan Title & Closing, LLC is 110 E. A St., Jenks, OK 74037.
(31)	The following natural person has sole voting and investment power over the shares held by Lutetia, LLC: David W. Agostine. The address for Lutetia, LLC is 40 Sedgwick Dr., Englewood, CO 80113.
(32)	The following natural person has sole voting and investment power over the shares held by Pelorus Equity Group Inc.: Daniel A. Leimel, Jr. The address for Pelorus Equity Group Inc. is 124 Tustin Ave., Suite 200, Newport Beach, CA 92663.
(33)	The following natural person have sole voting and investment power over the shares held by the Travis Goad Special Trust: Travis Goad. The address for the Travis Goad Special Trust is 2500 Weston Rd., Suite 311, Weston, FL 33331.
(34)	The following natural person has sole voting and investment power over the shares held by Mana Capital Group: Brian Brick. The address for Mana Capital Group is 11901 Santa Monica Blvd., Suite 573, Los Angeles, CA 90025.
(35)	The following natural person has sole voting and investment power over the shares held by Independent Trading Group Inc.: Dave Houlding. The address for Independent Trading Group Inc. is 200 – 483 Bay St., South Tower, Toronto, Ontario, M5G 2N7.
(36)	Ms. Zappaterra is a member of our advisory board.
(37)	The following natural person has sole voting and investment power over the shares held by Schwar Account: Andrew David Shapiro. The address for Schwar Account is 285A Halsey St., Brooklyn, NY 11216.
(38)	The following natural persons have shared voting and investment power over the shares held by Not Anonymous AZN, LLC: (i) Brian Kim, (ii) Alice Woo, and (iii) Arielle Jessel. The address for Not Anonymous AZN, LLC is 2104 Ridgemont Dr., Los Angeles, CA 90046.
(39)	The following natural person has sole voting and investment power over the shares held by JRS Capital Holdings, LLC: James Robert Sechrist. The address for JRS Capital Holdings, LLC is 124 Tustin Ave., Suite 200, Newport Beach, CA 92663.
(40)	The following natural person has sole voting and investment power over the shares held by Phalanx Advisory Ltd.: Bradley Meadows. The address for Phalanx Advisory Ltd. is 1246 Eldon Rd., North Vancouver, British Columbia, V7R 1T6.

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Plan of Distribution

We are registering the selling shareholder shares to permit the resale of the selling shareholder shares by the selling shareholders from time to time after the date of this prospectus. We will not receive any of the proceeds from the sale of the selling shareholder shares. However, upon any exercise, other than a net exercise, of warrants or stock options held by the selling shareholders, we will receive cash proceeds per share equal to the exercise price of such warrants or stock options. We will bear all fees and expenses incident to the registration of the selling shareholder shares in the registration statement of which this prospectus forms a part. The selling shareholder shares will not be sold through EF Hutton in the resale offering.

The selling shareholders may sell all or a portion of the selling shareholder shares beneficially owned by them and offered hereby from time to time directly or through one or more underwriters, broker-dealers, or agents. If the selling shareholder shares are sold through underwriters or broker-dealers, the selling shareholders will be responsible for underwriting discounts or commissions or agent’s commissions. The selling shareholder shares may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may involve crosses or block transactions, pursuant to one or more of the following methods:

● on any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale;

● in the over-the-counter market;

● in transactions otherwise than on these exchanges or systems or in the over-the-counter market;

● ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

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

● purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

● an exchange distribution in accordance with the rules of the applicable exchange;

● privately negotiated transactions;

● short sales;

● in transactions through broker-dealers that agree with the selling shareholders to sell a specified number of such securities at a stipulated price per security;

● through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

● a combination of any such methods of sale; or

● any other method permitted pursuant to applicable law.

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The selling shareholders may also sell securities under Rule 144 or any other exemption from registration under the Securities Act, if available, rather than under this prospectus. However, the selling shareholders will not sell any selling shareholder shares until after the closing of the Primary Offering.

If the selling shareholders effect such transactions by selling shares to or through underwriters, broker-dealers, or agents, such underwriters, broker-dealers, or agents may receive commissions in the form of discounts, concessions, or commissions from the selling shareholders or commissions from purchasers of the selling shareholder shares for whom they may act as agent or to whom they may sell as principal (which discounts, concessions, or commissions as to particular underwriters, broker-dealers, or agents may be in excess of those customary in the types of transactions involved). In connection with sales of the selling shareholder shares or otherwise, the selling shareholders may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the selling shareholder shares in the course of hedging in positions they assume. The selling shareholders may also sell selling shareholder shares short and deliver selling shareholder shares covered by this prospectus to close out short positions and to return borrowed shares in connection with such short sales. The selling shareholders may also loan or pledge selling shareholder shares to broker-dealers that in turn may sell such shares.

The selling shareholders may pledge or grant a security interest in some or all of the warrants or selling shareholder shares owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the selling shareholder shares from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act, amending, if necessary, the list of selling shareholders to include the pledgee, transferee, or other successors in interest as selling shareholders under this prospectus. The selling shareholders also may transfer the selling shareholder shares in other circumstances, in which case the transferees, pledgees, or other successors in interest will be the selling beneficial owners for purposes of this prospectus and may sell the selling shareholder shares from time to time under this prospectus after we have filed an amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending the list of selling shareholders to include the pledgees, transferees, or other successors in interest as selling shareholders under this prospectus. The selling shareholders also may transfer and donate the selling shareholder shares in other circumstances in which case the transferees, donees, pledgees, or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

The selling shareholders and any broker-dealer participating in the distribution of the selling shareholder shares may be deemed to be “underwriters” within the meaning of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of the selling shareholder shares is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of selling shareholder shares being offered and the terms of the offering, including the name or names of any broker-dealers or agents, any discounts, commissions, and other terms constituting compensation from the selling shareholders and any discounts, commissions, or concessions allowed or reallowed or paid to broker-dealers.

Because the selling shareholders may be deemed to be an “underwriter” within the meaning of the Securities Act, they will be subject to the prospectus delivery requirements of the Securities Act, including Rule 172 thereunder. In addition, any securities covered by this prospectus which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than under this prospectus. We are requesting that each selling shareholder confirm that there is no underwriter or coordinating broker acting in connection with the proposed sale of the selling shareholder shares by the selling shareholders.

To the extent the selling shareholders engage underwriters, broker-dealers, or agents for the sale of their securities pursuant to the resale offering, the Common Shares to be sold, the names of the selling shareholders, the respective purchase prices and public offering prices, the names of any agents, broker-dealer, or underwriter, and any applicable commissions or discounts with respect to a particular offer will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration statement that includes this prospectus.

We intend to keep this prospectus effective until the earlier of (i) the date on which the securities may be resold by the selling shareholders without registration and without regard to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement for us to be in compliance with the current public information requirement under Rule 144 under the Securities Act or any other rule of similar effect or (ii) all of the securities have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of similar effect. Under the securities laws of some states, the selling shareholder shares may be sold in such states only through registered or licensed brokers or dealers. In addition, in some states the selling shareholder shares may not be sold unless such shares have been registered or qualified for sale in such state or an exemption from registration or qualification is available and is complied with.

There can be no assurance that any selling shareholder will sell any or all of the selling shareholder shares registered pursuant to the registration statement of which this prospectus forms a part.

The selling shareholders and any other persons participating in the sale or distribution of the selling shareholder shares will be subject to applicable provisions of the Exchange Act and the rules and regulations under the Exchange Act, including, without limitation, Regulation M. These provisions may restrict certain activities of and limit the timing of purchases and sales of any of the selling shareholder shares by the selling shareholders or any other such person. In the event that any of the selling shareholders are deemed an affiliated purchaser or distribution participant within the meaning of Regulation M, then the selling shareholders will not be permitted to engage in short sales of Common Shares. Furthermore, under Regulation M, persons engaged in a distribution of securities are prohibited from simultaneously engaging in market making and certain other activities with respect to such securities for a specified period of time prior to the commencement of such distributions, subject to specified exceptions or exemptions. In addition, if a short sale is deemed to be a stabilizing activity, then the selling shareholders will not be permitted to engage in a short sale of our Common Shares. All of these limitations may affect the marketability of the Common Shares.

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

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DESCRIPTION OF SHARE CAPITAL

The Company’s authorized share capital consists of an unlimited number of Common Shares and an unlimited number of preferred shares, issuable in series. As of September 12, 2023, there were 6,351,354 Common Shares issued and outstanding and 3,338,100 preferred shares issued and outstanding.

Common Shares

Holders of Common Shares are entitled to one vote per Common Share held on all matters to be voted on by the shareholders. Holders of Common Shares are entitled to share ratably in dividends, if any, as may be declared from time to time by the Board of Directors in its discretion from funds legally available therefor. There are no conversion or redemption rights or sinking fund provisions with respect to the Common Shares.

Preferred Shares

As of September 12, 2023, all preferred shares issued and outstanding were designated as Preferred Shares, Series 1 shares. Holders of Series 1 Shares are not entitled to any voting rights or to receive notice of or to attend any meetings of the shareholders of the Company. Any holder of Series 1 Shares may, at any time, elect to convert all or any portion of the outstanding Series 1 Shares held by such holder into Common Shares. Each Series 1 Share will automatically convert into Common Shares upon the date that is twelve months after the closing of a public offering pursuant to either a registration statement which is declared effective under the Securities Act or a prospectus filed under the securities legislation of any province of Canada in respect of which final receipt is obtained involving the offering and sale of Common Shares (or securities convertible into, exchangeable for, or otherwise exercisable to acquire, directly or indirectly, Common Shares). The Primary Offering is expected to qualify as a transaction that will trigger an automatic conversion of the outstanding Series 1 Shares into Common Shares. Any conversion of Series 1 Shares will result in the issuance of the number of Common Shares that results from dividing (i) the aggregate number of Series 1 Shares being converted by (ii) the lesser of (a) $6.00 and (b) the price per Common Share equal to the price that is 20 percent less than the price per Common Share offered in an offering that triggers an automatic conversion, provided that such discounted price shall not be less than $3.00. In the event our Common Shares are listed on a U.S. national or regional securities exchange within six months after, with respect to any Series 1 Shares, the date on which we initially issued such Series 1 Shares, then the conversion of Series 1 Shares will result in the issuance of the number of Common Shares that results from dividing (i) the aggregate number of Series 1 Shares being converted, multiplied by 0.6, by (ii) the lesser of (a) $6.00 and (b) the price per Common Share equal to the price that is 20 percent less than the price per Common Share offered in an offering that triggers an automatic conversion, provided that such discounted price shall not be less than $3.00.

We are authorized to issue, without shareholder approval, an unlimited number of preferred shares, issuable in one or more series, and, subject to the provisions of the ABCA, having such designations, rights, privileges, restrictions, and conditions, including dividend and voting rights, as our Board of Directors may determine, and such rights and privileges, including dividend and voting rights, may be superior to those of the Common Shares. The rights of holders of our Common Shares will be subject to the rights of the holders of any preferred shares that may be issued in the future. Although we have no present intention to issue any additional preferred shares, any further issuances could have the effect of making it more difficult for a third party to acquire a majority of our outstanding voting shares. The issuance of additional preferred shares may also have the effect of decreasing the market price of our Common Shares.

Convertible Secured Promissory Notes

As of September 12, 2023, the Company has convertible secured promissory notes in the aggregate principal amount of $3,338,109 outstanding. All convertible secured promissory notes were issued between January 3, 2023, and September 7, 2023. Each convertible secured promissory note is payable in accordance with the following schedule: (i) if a Qualifying Transaction occurs 30 days or more before the date that is one year after the date of such convertible secured promissory note, then (a) 50 percent of the principal amount is payable on the thirtieth calendar day after the date of the first Qualifying Transaction occurring after the date of such convertible secured promissory note; and (b) the remaining 50 percent of the principal amount is payable on the earlier to occur of (1) the ninetieth calendar day after the date of the first Qualifying Transaction occurring after the date of such convertible secured promissory note, or (2) the date that is one year after the date of such convertible secured promissory note, and (ii) if a Qualifying Transaction does not occur, or occurs less than 30 days, before the date that is one year after the date of such convertible secured promissory note, then 100 percent of the principal amount is payable on the date that is one year after the date of such convertible secured promissory note. All of the convertible secured promissory notes were issued between January 3, 2023, and September 7, 2023. For purposes of the convertible secured promissory notes, the term “Qualifying Transaction” means a transaction pursuant to which the Company: (i) merges, amalgamates, or consolidates with or into any other company or business entity pursuant to which the Company is not the surviving entity and as a result of which the holders of the Company’s outstanding voting securities as constituted immediately prior to such merger, amalgamation, or consolidation hold less than 50 percent of the outstanding voting securities of the surviving entity immediately after such amalgamation, merger, or consolidation; (ii) sells all or substantially all of its issued and outstanding Common Shares; (iii) completes an initial public offering of Common Shares or other going public transaction such as a reverse takeover transaction resulting in the listing of Common Shares of the Company or of successor of the Company being listed on a recognizable stock exchange in Canada, the United States, or the United Kingdom; or (iv) in the course of which the Company issues and sells equity securities of the Company to bona fide investors for capital raising purposes for aggregate gross proceeds to the Company of at least $3,000,000. The Primary Offering is expected to qualify as a Qualifying Transaction under the terms of the convertible secured promissory notes.

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The principal amount of each convertible secured promissory note may be prepaid at any time at the Company’s sole election without penalty. Interest on the principal amount outstanding and remaining from time to time on each convertible secured promissory note accrues at the rate of 8 percent per annum. Interest is payable in cash on a quarterly basis on the last day of each quarter, which commenced with the first quarter ending March 31, 2023. Interest is calculated on the basis of a 360-day year consisting of twelve, 30-day months. Each holder of a convertible secured promissory note may elect, in such holder’s sole discretion, to have the interest payable on the principal amount to be paid-in-kind. In the event of such election, the interest is calculated at a rate of 10 percent per annum, and such interest is added to the outstanding principal amount on the applicable interest payment date. Any such paid-in-kind interest is added to and increases the principal amount for all purposes under the convertible secured promissory note.

If an event of default shall occur and be continuing, lenders holding greater than 50 percent of the aggregate principal amount of the convertible notes outstanding at such time may declare all the convertible notes to be in default, at which point the principal amount outstanding on the date of such written notice shall increase to 125 percent of the principal amount then outstanding, and the interest rate shall increase to 15 percent or the maximum rate permitted under applicable law until such event of default is cured, if capable of being cured. Additionally, if an event of default has occurred and is continuing without cure, at the end of each calendar month thereafter until the event of default has been cured, the lenders shall be entitled to sweep the cash received in the bank accounts of the Company and its subsidiaries in an aggregate amount equal to 20 percent of the consolidated revenue of the Company and its subsidiaries during such calendar month

The convertible secured promissory notes are secured by all of the Company’s right, title, and interest in all property and assets of the Company, now owned or hereafter acquired, including, without limitation, accounts, chattel paper, inventory, equipment, instruments, general intangibles, investment property, documents, deposit accounts, letter of credit rights, copyrights, marks, patents, cash collateral, and any and all additions and accessions to any of the foregoing, all improvements thereto, all substitutions and replacements thereof, and all products and proceeds thereof.

Each convertible secured promissory note, including the outstanding principal amount together with all applicable accrued and unpaid interest thereunder, is convertible, in whole or in part, into Common Shares at the option of the holder of such convertible secured promissory note (subject to certain limitations set forth in the convertible secured promissory note) at a conversion price equal to $6.00 per Common Share (subject to certain adjustments set forth in the convertible secured promissory note).

Options

As of September 12, 2023, the Company had options to purchase 482,500 Common Shares outstanding pursuant to the Incentive Plan, of which 290,000 have an exercise price of CAD$2.00 per Common Share, 72,500 have an exercise price of CAD$3.50 per Common Share, and 120,000 have an exercise price of $5.00 per Common Share.

Warrants

As of September 12, 2023, the Company had outstanding warrants to purchase up to 500,620 Common Shares at a price of CAD$5.00 per Common Share. All outstanding warrants were issued on July 14, 2021, and have a term of two years and six months from the date of issuance.

Anti-Takeover Effects of Provisions of Our Amended and Restated Articles of Incorporation, our Amended and Restated Bylaws, and Alberta Law

Our amended and restated articles of incorporation and our amended and restated bylaws described below contain provisions that could make the following transactions more difficult: (i) acquisitions of us by means of a tender offer, a proxy contest, or otherwise; or (ii) removal of our incumbent officers and directors. These provisions may also have the effect of preventing changes in our management. It is possible that these provisions could make it more difficult to accomplish or could deter transactions that shareholders may otherwise consider to be in their best interest or in our best interests, including transactions that might result in a premium over the market price for our shares.

These provisions, summarized below, are expected to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with us. We believe that the benefits of increased protection and our potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us outweigh the disadvantages of discouraging these proposals because, among other things, negotiation of these proposals could result in an improvement of their terms.

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In addition, we are subject to the laws of Alberta, Canada, which laws contain certain provisions that could make it more difficult for a third party to acquire us. The summary of these laws, set forth below, is not a comprehensive description of relevant or applicable considerations regarding such requirements and, accordingly, is not intended to be, and should not be interpreted as, legal advice to any prospective purchaser and no representation with respect to such requirements to any prospective purchaser is made. Prospective investors should consult their own Canadian legal advisors with respect to any questions regarding applicable law in Alberta, Canada.

Directors

Power to vote on matters in which a director is materially interested. The ABCA states that a director must disclose to us, in accordance with the provisions of the ABCA, the nature and extent of an interest that the director has in a material contract or material transaction, whether made or proposed, with us, if the director is a party to the contract or transaction, is a director or an officer or an individual acting in a similar capacity of a party to the contract or transaction, or has a material interest in a party to the contract or transaction.

A director who holds an interest in respect of any material contract or transaction into which we have entered or propose to enter is not entitled to vote on any directors’ resolution to approve that contract or transaction, unless the contract or transaction:

● is an arrangement by way of security for money lent to or obligations undertaken by the director, or by a body corporate in which the director has an interest, for the benefit of us or an affiliate of ours;

● relates primarily to the director’s remuneration as a director, officer, employee, or agent of us or an affiliate of ours;

● is for indemnity or insurance otherwise permitted under the ABCA; or

● is with an affiliate of ours.

Directors’ power to determine the remuneration of directors. The ABCA provides that the remuneration of our directors, if any, may be determined by our directors subject to our articles of incorporation and bylaws. That remuneration may be in addition to any salary or other remuneration paid to any of our employees who are also directors.

Vacancies on the Board of Directors. Our amended and restated bylaws provide that a quorum of directors may fill a vacancy on the Board of Directors, except for a vacancy resulting from (i) an increase in the number or minimum number of directors set out in the articles of incorporation or (ii) a failure to elect the number or minimum number of directors required by the articles of incorporation.

Retirement or non-retirement of directors under an age limit requirement. Neither our amended and restated articles of incorporation nor the ABCA imposes any mandatory age-related retirement or non-retirement requirement for our directors.

Number of shares required to be owned by a director. Neither our amended and restated articles of incorporation nor the ABCA provides that a director is required to hold any of our shares as a qualification for holding his or her office. Our Board of Directors has discretion to prescribe minimum share ownership requirements for directors.

Action Necessary to Change the Rights of Holders of Our Shares

Our shareholders can authorize the alteration of our amended and restated articles of incorporation to create or vary the special rights or restrictions attached to any of our shares by passing a special resolution. However, a right or special right attached to any class or series of shares may not be prejudiced or interfered with unless the shareholders holding shares of that class or series to which the right or special right is attached consent by a separate special resolution. A special resolution means a resolution passed by: (i) a majority of not less than two-thirds of the votes cast by the applicable class or series of shareholders who vote in person or by proxy at a meeting, or (ii) a resolution consented to in writing by all of the shareholders entitled to vote holding the applicable class or series of shares.

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Shareholder Meetings

Under the ABCA, we must hold an annual meeting of our shareholders within fifteen months of the last annual meeting at a time and place determined by our Board of Directors. Pursuant to our amended and restated articles of incorporation, a meeting of our shareholders may be held anywhere within Canada or the United States, as our Board of Directors so determines.

Under the ABCA and our amended and restated bylaws, a notice to convene a meeting, specifying the date, time, and location of the meeting, and the general nature of any special business, must be sent to shareholders, to each director, and to the auditor not less than twenty-one and no more than fifty days prior to the meeting. The accidental omission to send notice of any meeting of shareholders to, or the non-receipt of any notice by, any person entitled to notice does not invalidate any proceedings at that meeting.

A quorum for meetings is one or more persons present in person or by means of a telephonic, electronic, or other communication facility that permits all participants to communicate adequately with each other during the meeting and each entitled to vote at the meeting and holding or representing by proxy not less than 33.33 percent of the votes entitled to be cast at the meeting.

Holders of our Common Shares will be entitled to attend meetings of our shareholders. Except as otherwise provided with respect to any particular series of preferred shares, and except as otherwise required by law, the holders of our preferred shares are not entitled as a class to receive notice of, or to attend or vote at any meetings of our shareholders. Our directors, our secretary (if any), our auditor, and any other persons invited by our chairman or directors or with the consent of those at the meeting will be entitled to attend any meeting of our shareholders but will not be counted in the quorum or be entitled to vote at the meeting unless he or she is a shareholder or proxyholder entitled to vote at the meeting.

Change of Control

Our amended and restated articles of incorporation do not contain any change of control limitations with respect to a merger, acquisition, or corporate restructuring that involves us.

Shareholder Ownership Disclosure

Although applicable securities laws regarding shareholder ownership by certain persons require disclosure, our amended and restated articles of incorporation do not provide for any ownership threshold above which shareholder ownership must be disclosed.

Other Anti-Takeover Provisions

Among other things, our amended and restated articles of incorporation and our amended and restated bylaws, as applicable, contain certain provisions that are intended to enhance the likelihood of continuity and stability in the composition of our Board of Directors but which may have the effect of delaying, deferring, or preventing a future takeover or change in control of us unless such takeover or change in control is approved by our Board of Directors. Such anti-takeover provisions:

● establish advance notice procedures with regard to shareholder proposals relating to the nomination of candidates for election as directors or new business to be brought before meetings of our shareholders, which procedures: (i) provide that notice of shareholder proposals must be timely given in writing to our corporate secretary prior to the meeting at which the action is to be taken; (ii) provide that generally, to be timely, such notice must be received at our principal executive offices not less than ninety days nor more than 120 days prior to the first anniversary date of the annual meeting for the preceding year; (iii) provide for specific requirements as to form and content of all shareholders’ notices; and (iv) may preclude shareholders from bringing matters before the shareholders at an annual or special meeting;

● provide our Board of Directors the ability to authorize undesignated preferred shares, making it possible for our Board of Directors to issue, without shareholder approval, preferred shares with voting or other rights or preferences that could impede the success of any attempt to change control of us, which may have the effect of deferring hostile takeovers or delaying changes in control or management of our company;

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● provide that the authorized number of directors may be changed only by resolution of our Board of Directors, subject to the rights of the holders of any series of our preferred shares to elect directors under specified circumstances; and

● provide that all vacancies of directors, except for a vacancy resulting from (i) an increase in the number or minimum number of directors set out in the articles of incorporation or (ii) a failure to elect the number or minimum number of directors required by the articles of incorporation, may, subject to the rights of the holders of any series of our preferred shares, be filled by the affirmative vote of a majority of directors then in office constituting a quorum.

In addition, certain provisions of the ABCA have the effect of discouraging coercive takeover practices and inadequate takeover bids, including the following:

● any action required or permitted to be taken by our shareholders must be effected at a duly called annual or special meeting of shareholders and may not be effected by any consent in writing in lieu of a meeting of shareholders, unless consented to in writing by all of our shareholders entitled to vote;

● generally, an amendment to our amended and restated articles of incorporation will require a special resolution of the shareholders; and

● our Board of Directors is expressly authorized to adopt, or to alter or repeal, our amended and restated bylaws, subject to a shareholder ratification requirement by ordinary resolution at the next meeting of shareholders.

Forum Selection

Our amended and restated bylaws provide that, unless we consent in writing to the selection of an alternative forum, the Court of King’s Bench of the Province of Alberta, Canada, and the appellate courts therefrom (or, failing such court, any other court having jurisdiction, and the appellate courts therefrom), will be the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf, (ii) any action or proceeding asserting a claim of breach of a fiduciary duty owed by any of our directors, officers, or other employees to us, (iii) any action or proceeding asserting a claim arising pursuant to any provision of the ABCA or our amended and restated articles of incorporation, or (iv) any action or proceeding asserting a claim otherwise related to the relationships among us, our affiliates and their respective shareholders, directors, and/or officers, but excluding claims related to our business or such affiliates. The forum selection provision also provides that our shareholders are deemed to have consented to personal jurisdiction in the Province of Alberta and to service of process on their counsel in any foreign action initiated in violation of the foregoing provisions. Although we believe these provisions will benefit us by providing increased consistency in the application of the ABCA for the specified types of actions and proceedings, the provisions may have the effect of increasing the costs to investors to bring a claim against us, limiting investors’ ability to bring a claim in a judicial forum that they find favorable, and discouraging lawsuits against our directors, officers, employees, and agents. However, our amended and restated bylaws provide that, unless the Company consents in writing to the selection of an alternative forum, the federal district courts of the United States of America shall be the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act, and that the exclusive forum provision applicable to non-Exchange Act-related complaints shall not apply to actions brought to enforce any liability or duty created by the Exchange Act. In addition, the enforceability of similar exclusive forum provisions in other companies’ certificates of incorporation or bylaws has been challenged in legal proceedings in other jurisdictions, and it is possible that, in connection with one or more such actions or proceedings, a court could rule that this provision in our bylaws is inapplicable or unenforceable.

Limitations on Liability and Indemnification of Directors and Officers

Under the ABCA, we may indemnify our current or former directors or officers or another individual who acts or acted at our request as a director or officer, or an individual acting in a similar capacity, of another entity, against all costs, charges, and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative, or other proceeding in which the individual is involved because of his or her association with us or another entity. The ABCA also provides that we may also advance moneys to a director, officer, or other individual for costs, charges, and expenses reasonably incurred in connection with such a proceeding; provided that such individual shall repay the moneys if the individual does not fulfill the conditions described below.

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Indemnification is prohibited under the ABCA unless the individual:

● acted honestly and in good faith with a view to our best interests, or the best interests of the other entity for which the individual acted as director or officer or in a similar capacity at our request; and

● in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, the individual had reasonable grounds for believing that his or her conduct was lawful.

Our amended and restated bylaws require us to indemnify each of our current or former directors or officers and each individual who acts or acted at our request as a director or officer, or in a similar capacity, of another entity, as well as their respective heirs and legal representatives to the full extent permitted by the ABCA.

Our amended and restated bylaws authorize us to purchase and maintain insurance for the benefit of each of our current or former directors or officers and each person who acts or acted at our request as a director or officer, or an individual acting in a similar capacity, of another entity.

We intend to enter into indemnity agreements with our directors and our executive officers which provide, among other things, that we will indemnify him or her to the fullest extent permitted by law from and against all liabilities, claims, damages, costs, charges, or expenses reasonably incurred in any proceeding in which the indemnified party is involved in or made a party to, or that arises because the indemnified party is or was a director or officer of the Company; provided that, we shall not indemnify such individual if, among other things, he or she did not act honestly and in good faith with a view to our best interests and, in the case of a criminal or penal action, the individual did not have reasonable grounds for believing that his or her conduct was lawful.

At present, we are not aware of any pending or threatened litigation or proceeding involving any of our directors, officers, employees, or agents in which indemnification would be required or permitted.

Registration Rights Agreements

The Company is not a party to any registration rights agreements.

Listing

Our Common Shares are not presently quoted on any exchange. We have applied to list our Common Shares on The Nasdaq Capital Market under the symbol “FP”.

Transfer Agent

Odyssey Trust Company will serve as our transfer agent and registrar. Its address is Stock Exchange Tower, 1230 – 300 5th Avenue SW, Calgary, Alberta, T2P 3CR, and its telephone number is (587) 885-0960.

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SHARES ELIGIBLE FOR FUTURE SALE

Prior to this offering, our Common Shares were not quoted on any exchange. Future sales of substantial amounts of our Common Shares in the public market, including Common Shares issued upon the exercise of outstanding options or warrants, or upon debt conversion, or the anticipation of these sales, could adversely affect market prices prevailing from time to time and could impair our ability to raise capital through sales of equity securities.

Upon completion of this offering, we estimate that we will have 10,002,033 Common Shares outstanding, based on 7,102,033 Common Shares outstanding as of September 12, 2023, assuming all outstanding Series 1 Shares are converted into 750,679 Common Shares immediately prior to the closing of the Primary Offering, and assuming no exercise of outstanding options or warrants, and no exercise of the underwriter’s over-allotment option. Any holder of Series 1 Shares may, at any time, elect to convert all or any portion of the outstanding Series 1 Shares held by such holder into Common Shares. The Series 1 Shares will automatically convert into Common Shares on the date that is 12 months after the closing of the Primary Offering. The number of Common Shares issuable upon conversion of the Series 1 Shares is calculated as of the date of this prospectus as follows: (i) with respect to the 1,748,970 Series 1 Shares issued on January 3, 2023, January 9, 2023, and February 6, 2023, (a) the aggregate number of Series 1 Shares outstanding, divided by (b) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus; and (ii) with respect to the 1,589,130 Series 1 Shares issued on March 31, 2023, and September 7, 2023, (a) the aggregate number of Series 1 Shares outstanding, multiplied by (b) 0.6, divided by (c) $3.60, which is 80 percent of the midpoint of the price range set forth on the cover of this prospectus. The actual number of Common Shares issuable upon conversion of the outstanding Series 1 Shares may increase or decrease on a future date based on when the closing of the Primary Offering occurs and the actual offering price per Common Share. See “Description of Share Capital – Preferred Shares” on page 93 of this prospectus for more information regarding the conversion of the Series 1 Shares. All of the Common Shares sold in the Primary Offering or by the selling shareholders in the resale offering will be freely tradable without restriction immediately following this offering, except that any Common Shares purchased by our affiliates, as that term is defined in Rule 144 under the Securities Act, may only be sold in compliance with the limitations described below. All remaining Common Shares held by existing shareholders immediately prior to the completion of this offering will be “restricted securities” as such term is defined in Rule 144. These restricted securities were issued and sold by us in private transactions and are eligible for public sale only if registered under the Securities Act or if they qualify for an exemption from registration under the Securities Act, including the exemptions provided by Rule 144 or Rule 701, summarized below.

Sale of Restricted Securities

Our Common Shares sold pursuant to this offering will be registered under the Securities Act, and therefore freely transferable, except for securities owned by our affiliates. Our affiliates will be deemed to own “control” securities that are not registered for resale under the registration statement covering this prospectus. Individuals who may be considered our affiliates after this offering include individuals who control, are controlled by, or are under common control with us, as those terms generally are interpreted for U.S. federal securities law purposes. These individuals may include some or all of our directors and executive officers. Individuals who are our affiliates are not permitted to resell their securities unless such securities are separately registered under an effective registration statement under the Securities Act or an exemption from the registration requirements of the Securities Act is available, such as Rule 144.

Rule 144

In general, under Rule 144 as currently in effect, a person (or persons whose shares are aggregated), including an affiliate, who beneficially owns “restricted securities” (i.e., securities that are not registered by an effective registration statement) of a “reporting company” may not sell these securities until the person has beneficially owned them for at least six months. Thereafter, affiliates may not sell within any three-month period a number of shares in excess of the greater of: (i) 1 percent of the then outstanding shares as shown by the most recent report or statement published by the issuer; and (ii) the average weekly reported trading volume in such securities during the four preceding calendar weeks.

Sales under Rule 144 by our affiliates will also be subject to restrictions relating to manner of sale, notice, and the availability of current public information about us and may be affected only through unsolicited brokers’ transactions.

Persons not deemed to be affiliates who have beneficially owned “restricted securities” for at least six months but for less than one year may sell these securities, provided that current public information about the Company is “available,” which means that, on the date of sale, we have been subject to the reporting requirements of the Exchange Act for at least ninety days and are current in our Exchange Act filings. After beneficially owning “restricted securities” for one year, our non-affiliates may engage in unlimited resales of such securities.

Shares received by our affiliates in this offering or upon exercise of stock options or upon vesting of other equity-linked awards may be “control securities” rather than “restricted securities.” “Control securities” are subject to the same volume limitations as “restricted securities” but are not subject to holding period requirements.

Rule 701

Rule 701 generally allows a shareholder who purchased our Common Shares pursuant to a written compensatory plan or contract and who is not deemed to have been our affiliate during the immediately preceding ninety 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. Rule 701 also permits our affiliates to sell their Rule 701 shares under Rule 144 without complying with the holding period requirements of Rule 144. All holders of Rule 701 shares, however, are required to wait until ninety days after the date of this prospectus before selling such shares pursuant to Rule 701 and until expiration of the lock-up period described below.

Lock-Up Agreements

The Company, certain of our directors and executive officers, certain of our shareholders affiliated with our directors and executive officers, and Luminous Capital Inc. have agreed not to, subject to certain limited exceptions, offer, pledge, sell, contract to sell, grant any option to purchase, or otherwise dispose of our Common Shares or any securities convertible into or exchangeable or exercisable for Common Shares, or to enter into any hedge or other arrangement or any transaction that transfers, directly or indirectly, the economic consequence of ownership of our Common Shares, for a period of 180 days after the date of the effective date of an underwriting agreement between us and the underwriter, without the prior written consent of the underwriter. Each such holder’s Common Shares will thereafter be incrementally released from this lock-up arrangement as follows: (i) 25 percent of each such holder’s Common Shares will be released from the lock-up arrangement on the date that is 180 days after the effective date of the underwriting agreement; (ii) 25 percent of each such holder’s Common Shares will be released from the lock-up arrangement on the date that is 360 days after the effective date of the underwriting agreement; (iii) 25 percent of each such holder’s Common Shares will be released from the lock-up arrangement on the date that is 540 days after the effective date of the underwriting agreement; and (iv) 25 percent of each such holder’s Common Shares will be released from the lock-up arrangement on the date that is 720 days after the effective date of the underwriting agreement.

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MATERIAL DIFFERENCES BETWEEN THE ALBERTA BUSINESS CORPORATIONS ACT AND

THE DELAWARE GENERAL CORPORATION LAW

We are a corporation incorporated under the laws of the Province of Alberta, Canada. The following discussion summarizes material differences between the rights of holders of our Common Shares and the rights of holders of the common shares of a typical corporation incorporated under the laws of the state of Delaware, which result from differences in governing documents and the laws of Alberta, Canada, and Delaware. This summary is qualified in its entirety by reference to the Delaware General Corporation Law (the “DGCL”), the ABCA, and our governing corporate documents.

	DGCL	ABCA
Capital Structure	Under the DGCL, a corporation’s certificate of incorporation must specify the number of shares of each class of stock and their par value, or include a statement that such shares are without par value. The certificate of incorporation must also set forth the designations, powers, preferences, rights, qualifications, limitations and restrictions of each class of shares, if any. Under the DGCL, a corporation’s certificate of incorporation may give the Board of Directors the authority to issue preferred stock in one or more series, with such designations and special rights and restrictions as determined by the Board of Directors.	Under our current Alberta articles of incorporation, we have the authority to issue an unlimited number of Common Shares and an unlimited number of preferred shares. Under Alberta law, there is no franchise tax on our authorized share capital. Under our amended and restated articles of incorporation, we have the authority to issue an unlimited number of Common Shares, with no par value, and an unlimited number of preferred shares, with no par value, issuable in series.
Dividends	The DGCL generally provides that, subject to certain restrictions, the directors of a corporation may declare and pay dividends upon the shares of its capital stock either out of the corporation’s surplus or, if there is no such surplus, out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. Further, the holders of preferred or special stock of any class or series may be entitled to receive dividends at such rates, on such conditions and at such times as stated in the certificate of incorporation.	Under the ABCA and our amended and restated articles, dividends may be declared on the shares at the discretion of our Board of Directors. Any dividends declared shall be subject to the rights, if any, of shareholders holding shares with special rights as to dividends. Our directors shall not declare dividends if there are reasonable grounds for believing that we are, or would after the payment be, unable to pay our liabilities as they become due or the realizable value of our assets would thereby be less than the aggregate of our liabilities and stated capital of all classes.

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Vote Required for Certain Transactions Under the DGCL, the affirmative vote of the holders of a majority of the outstanding shares entitled to vote thereon (or the affirmative vote of the holders of a supermajority of such outstanding shares, if a statement to that effect was included in the articles at the time they were initially filed or is included in an amendment to the articles) is required to authorize any merger, share exchange, consolidation, dissolution, or sale of all or substantially all of the assets of the corporation, except that, unless required by its certificate of incorporation, no authorizing shareholder vote is required to approve a plan of merger or share exchange if (i) the articles of incorporation of the surviving corporation will not differ from the corporation’s articles (other than certain inconsequential differences), (ii) each shareholder of the surviving corporation whose shares were outstanding immediately before the effective date of the transaction will hold the same number of shares, with identical designations, preferences, limitations and relative rights, immediately after the transaction, (iii) the number of voting shares outstanding immediately after the transaction plus the number of voting shares issuable as a result of the transaction, either by conversion or upon the exercise of rights and warrants issued pursuant to the transaction, will not exceed by more than 20 percent the total number of voting shares of the surviving corporation outstanding immediately before the transaction, and (iv) the number of participating shares (defined to mean shares that entitled their shareholders to participate without limitation in dividends) outstanding immediately after the transaction plus the number of participating shares issuable as a result of the transaction, either by the conversion or upon the exercise of rights and warrants issued pursuant to the transaction, will not exceed by more than 20 percent the total number of participating shares outstanding immediately before the transaction. In certain cases, a plan of merger or share exchange is also required to be approved separately by the holders of a class or series of shares. Under the ABCA, certain extraordinary corporate actions, including, without limitation, continuances, certain amalgamations and sales, leases or exchanges of all, or substantially all, of our property (other than in the ordinary course of business), liquidations, and dissolutions, are required to be approved by special resolution of our shareholders.   A special resolution is a resolution passed by a majority of not less than two-thirds of the votes cast by the shareholders who voted in respect of the resolution or signed by all shareholders entitled to vote on that resolution.   In specified cases, a special resolution to approve an extraordinary corporate action is also required to be approved separately by the holders of a class or series of shares, including in certain cases a class or series of shares not otherwise carrying voting rights.

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Amendments to Organizing Documents	The DGCL provides that a corporation may amend its certificate of incorporation if its Board of Directors has adopted such amendment, followed by the affirmative vote of a majority of the outstanding voting stock and a majority of the outstanding shares of each class entitled to vote on the amendment as a class. In the event the amendment would alter the aggregate number of authorized shares of a class of stock, their par value, or the powers, preferences, or special rights of the shares of a class so as to affect them adversely, the holders of the outstanding shares of the class are entitled to vote as a class upon a proposed amendment, whether or not entitled to vote thereon by the certificate of incorporation.	Under the ABCA, an amendment to our articles generally requires approval by special resolution of holders of our voting shares. Specified amendments may also require the approval of other classes of our shares. In the event that an amendment to our articles would prejudice or interfere with a right or special right attached to our issued shares of a class or series of our shares, such amendment must be approved separately by the holders of the class or series of shares being affected.
Amendments to Bylaws	The DGCL also provides that a corporation’s Board of Directors may amend or repeal a corporation’s bylaws unless the certificate of incorporation reserves the power exclusively to the shareholders, in whole or in part, or unless the shareholders, in amending, adding or repealing a particular bylaw, provide expressly that the Board of Directors may not amend or repeal that bylaw. The foregoing notwithstanding, the shareholders may amend or repeal a corporation’s bylaws even though the bylaws may also be amended or repealed by the Board of Directors.	Under the ABCA, our Board of Directors may, by resolution, make, amend or repeal any bylaw that regulates our business or affairs. Where our Board of Directors makes, amends or repeals a bylaw, they are required under the ABCA to submit that action to our shareholders at the next meeting of shareholders and our shareholders may confirm, reject or amend that action by ordinary resolution. If the action is rejected by our shareholders, or our Board of Directors does not submit the action to our shareholders at the next meeting of shareholders, the action will cease to be effective and no subsequent resolution of our directors to make, amend or repeal a bylaw having substantially the same purpose or effect will be effective until it is confirmed.
Quorum of Shareholders	Under the DGCL, the certificate of incorporation or bylaws may specify the required quorum, but generally a quorum may consist of not less than one third of the total voting power.	The ABCA provides that, unless the bylaws provide otherwise, a quorum of shareholders is present at a meeting of shareholders (irrespective of the number of persons actually present at the meeting) if holders of a majority of the shares entitled to vote at the meeting are present in person or represented by proxy. Our amended and restated bylaws provide that one or more persons holding not less than 33.33 percent of the voting power of the outstanding shares entitled to vote at the meeting shall constitute a quorum at a meeting of shareholders.
Annual Meetings of Shareholders	Under the DGCL, a corporation must hold an annual meeting of shareholders in a place designated by the certificate of incorporation or bylaws, whether inside or outside of Delaware or by means of remote communication, or, if not so designated, as determined by the Board of Directors and on a date and at a time designated in the bylaws, except as otherwise provided by law. Written notice of every meeting of shareholders must be given to each shareholder of record at least ten and no more than sixty days before the date of the meeting.	Under the ABCA, we must hold an annual meeting of our shareholders not later than eighteen months after the date of incorporation and subsequently not later than fifteen months after holding our last preceding annual meeting at a time and place determined by our Board of Directors. Pursuant to the ABCA, if the articles of the corporation so provide, meetings of shareholders may be held outside of Alberta, Canada. Under our amended and restated articles of incorporation, meetings of shareholders may be held at any place within Canada or the United States, as our Board of Directors so determines. Under our bylaws, we must provide notice of an annual meeting to each shareholder entitled to vote thereat, to each director, and to our auditor at least twenty-one, and no more than fifty, days in advance of the meeting.

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Special Meetings of Shareholders	Under the DGCL, special meetings of shareholders may be called by the Board of Directors or by such person or persons as may be authorized by the certificate of incorporation or the bylaws.		Under the ABCA and our bylaws, our Board of Directors has the power at any time to call a special meeting of shareholders. Under the ABCA, the holders of not less than 5 percent of our issued shares that carry the right to vote at a meeting sought to be held can also requisition our directors to call a meeting of shareholders for the purposes stated in the requisition.
Shareholder Consent in Lieu of Meeting	Under the DGCL, unless otherwise limited by the certificate of incorporation, shareholders may act by written consent without a meeting if holders of outstanding shares representing not less than the minimum number of votes that would be necessary to take the action at an annual or special meeting execute a written consent providing for the action.		Under the ABCA, a resolution in writing signed by all of the shareholders entitled to vote on that resolution is as valid as if it had been passed at a meeting of shareholders.
Anti-takeover Provisions and Interested Shareholder Transactions	Some powers granted to companies under Delaware law may allow a Delaware corporation to make itself potentially less vulnerable to hostile takeover attempts. These powers include the ability to:		The ABCA provides for certain anti-takeover provisions, some of which will be implemented by us.
	●	implement a staggered Board of Directors, which prevents an immediate change in control of the Board of Directors;	As permitted by the ABCA, our amended and restated bylaws will require that notice of nominations for directors be given to us prior to a meeting where our directors will be elected.
	●	require that notice of nominations for directors be given to the corporation prior to a meeting where directors will be elected, which may give management an opportunity to make a greater effort to solicit its own proxies;	As required by the ABCA, a shareholder resolution in writing is only valid if it is signed by all of the shareholders entitled to vote on that resolution at a meeting of shareholders.
	●	only allow the Board of Directors to call a special meeting of shareholders, which may deny a raider the ability to call a meeting to make disruptive changes;	As permitted by the ABCA, our amended and restated articles provide that our Board of Directors may fix the number of preferred shares in, and determine the designation of the shares of, each series and create, define and attach rights, restrictions and conditions to the preferred shares without shareholder approval.

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	●	eliminate shareholders’ action by written consent, which would require a raider to attend a meeting of shareholders to approve any proposed action by the corporation;	Neither the ABCA nor our amended and restated articles restrict us from adopting a shareholder rights plan. The ABCA does not restrict related party transactions; however, in Canada takeovers and other related party transactions are addressed in provincial securities legislation and policies, some of which will apply to us.
	●	remove a director from a staggered board only for cause, which gives some protection to directors on a staggered board from arbitrary removal;
	●	provide that the power to determine the number of directors and to fill vacancies be vested solely in the Board of Directors, so that the incumbent board, not a raider, would control vacant board positions;
	●	provide for supermajority voting in some circumstances, including mergers and certificate of incorporation amendments; and
	●	issue “blank check” preferred shares, which may be used to make a corporation less attractive to a raider.
Interested Director Transactions	Under the DGCL, a transaction in which a director of the corporation has a conflict of interest is not void or voidable solely because of the director’s conflict, solely because the director is present at or participates in the meeting of the Board of Directors or committee which authorizes the transaction or solely because any such director’s vote is counted for such purpose, if (i) the material facts of the conflict of interest are known to or disclosed to the Board of Directors or the committee and the Board of Directors or committee in good faith authorizes the transaction by a majority of the votes of the disinterested directors, (ii) the material facts of the conflict of interest are known or disclosed to the shareholders of the corporation and the transaction is approved in good faith by the shareholders, or (iii) the Board of Directors can demonstrate that the transaction is fair as to the corporation as of the time it is approved by the Board of Directors, committee or shareholders.		Under the ABCA, a director who holds a disclosable interest in a material contract or transaction into which we have entered or propose to enter is generally not permitted to vote on any directors’ resolution to approve the contract or transaction. A director or officer has a disclosable interest in a material contract or transaction if the director or officer is: ●  a party to the contract or transaction; ●  is a director or officer, or an individual acting in a similar capacity, of a party to the contract or transaction; or ●  has a material interest in a party to the contract or transaction. Under the ABCA, directors do not have to abstain from voting on matters related to director compensation.

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Fiduciary Duty of Directors	The fiduciary obligations of directors of corporations incorporated or organized under the DGCL are more expansive and run not just to the corporation, but to the corporation’s shareholders. These obligations fall into two broad categories: a duty of care and a duty of loyalty. The duty of care requires a director to act in good faith, with the care an ordinarily prudent person in a like position would exercise under similar circumstances, and in a manner he or she believes to be in the best interests of the corporation. It is qualified by the business judgment rule, which protects a disinterested director from personal liability to the corporation and its shareholders if the director acted in good faith, was reasonably informed and rationally believed the action taken was in the best interests of the corporation. The duty of loyalty requires directors to exercise their powers in the interests of the corporation and not in the directors’ own interests or in the interest of another person (including a family member) or organization. Stated more simply, the duty of loyalty precludes directors from using their corporate position to make a personal profit or gain, or for other personal advantage. The personal liability of a director under the DGCL for breach of his or her fiduciary duty is expansive and can be established by the corporation, through a derivative action brought on behalf of the shareholders, or by an aggrieved shareholder, in a separate action. Under the DGCL, a corporation may limit such personal liability; however, these limitations are not effective with respect to the following proscribed conduct under the DGCL:		Directors of a corporation incorporated under the ABCA have fiduciary obligations to the corporation. The ABCA requires directors and officers of an Alberta corporation, in exercising their powers and discharging their duties, to act honestly and in good faith with a view to the best interests of the corporation and exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.
	●	any breach of the director’s duty of loyalty to the corporation or its shareholders;
	●	acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law;
	●	an unlawful payment of a dividend or an unlawful share purchase or redemption; and
	●	any transaction from which the director derived an improper personal benefit.

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Directors’ and Officers’ Liability and Indemnification	Delaware law permits a corporation to indemnify its present or former directors and officers, employees, and agents made a party, or threatened to be made a party, to any third-party proceeding by reason of the fact that such person is or was a director, officer, employee, or agent of the corporation, against expenses (including attorney’s fees), judgments, fines, and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit, or proceeding, if such person:			Under the ABCA and pursuant to our amended and restated bylaws, we will indemnify present or former directors or officers against all costs, charges, and expenses, including an amount paid to settle an action or satisfy a judgment that is reasonably incurred by the individual in relation to any civil, criminal, administrative, investigative, or other proceeding in which the individual is involved because of his or her association with us. In order to qualify for indemnification such directors or officers must:
		●	acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation; and		●	have acted honestly and in good faith with a view to the best interests of the corporation; and
		●	with respect to any criminal action or proceeding, had no reasonable cause to believe such conduct was unlawful.		●	in the case of a criminal or administrative action or proceeding enforced by a monetary penalty, have had reasonable grounds for believing that his or her conduct was lawful.
	In a derivative action, or an action by or in the right of the corporation, the corporation is permitted to indemnify directors, officers, employees, and agents against expenses actually and reasonably incurred by them in connection with the defense or settlement of an action or suit if they acted in good faith and in a manner that they reasonably believed to be in or not opposed to the best interests of the corporation. However, in such a case, no indemnification shall be made if the person is adjudged liable to the corporation, unless and only to the extent that, the court in which the action or suit was brought or the Chancery Court of the State of Delaware shall determine upon application that such person is fairly and reasonably entitled to indemnity for such expenses despite such adjudication of liability to the corporation. The DGCL allows the corporation to advance expenses before the resolution of an action, if in the case of current directors and officers, such persons agree to repay any such amount advanced if they are later determined not to be entitled to indemnification.			We currently carry liability insurance for the corporation and its subsidiaries’ officers and directors. We expect that this will continue following the closing of this offering. The ABCA also provides that such persons are entitled to indemnity from the corporation in respect of all costs, charges and expenses reasonably incurred in connection with the defense of any such proceeding if the person was not judged by a court of competent authority to have committed any fault or omitted to do anything that the person ought to have done and otherwise meets the qualifications for indemnity described above.

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Dissent or Dissenters’ Appraisal Rights The DGCL grants the holder of any class or series of shares to dissent from and obtain payment of the fair value of his shares with respect to:   ● any plan of merger to which the corporation is a party (other than mergers with certain subsidiary corporations) requiring shareholder approval;   ● any plan of share exchange to which the corporation is a party as the corporation whose shares will be acquired, if the shareholder is entitled to vote on the plan;   ● the sale or exchange of all or substantially all of the property of the corporation other than in the normal course of business, if the shareholder is entitled to vote on the sale or exchange, including a sale in dissolution, but not including a sale pursuant to court order or a sale for cash pursuant to a plan through which all of the net proceeds of sale will be distributed to the shareholders within one year;   ● an amendment to the articles that materially and adversely affects the dissenting shareholder because it (i) alters or abolishes a preferential right, (ii) creates, alters, or abolishes a right in respect of redemption, (iii) alters or abolishes a preemptive right, (iv) excludes or limits the right of shares to be voted on any matter or to accumulate votes, or (v) reduces the number of shares owned by a shareholder to a fractional share if the fractional share so created is to be acquired for cash; and   ● any corporate action taken pursuant to a shareholder vote to the extent the articles of incorporation, bylaws or a resolution of the Board of Directors provides that voting or nonvoting shareholders are entitled to dissent and obtain payment for their shares. The ABCA provides that shareholders of a corporation entitled to vote on certain matters are entitled to exercise dissent rights and demand payment for the fair value of their shares in connection with specified matters, including, among others:   ● an amendment to our articles of incorporation to add, change or remove any provisions restricting the issue or transfer of shares;   ● amend our articles of incorporation to add, change, or remove any restrictions on the business or businesses that the corporation may carry on;   ● any amalgamation with another corporation (other than with certain affiliated corporations);   ● a continuance under the laws of another jurisdiction; and   ● a sale, lease, or exchange of all or substantially all the property of the corporation other than in the ordinary course of business.   However, a shareholder is not entitled to dissent if an amendment to the articles of incorporation is effected by a court order approving a reorganization or by a court order made in connection with an action for an oppression remedy.

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Oppression Remedy	The DGCL does not contain an oppression remedy, although causes of action seeking to obtain comparable remedies can be asserted against a corporation and its affiliates under any of several common law theories.	The ABCA provides an oppression remedy that enables a court to make any order, whether interim or final, to rectify matters that are oppressive or unfairly prejudicial to or that unfairly disregard the interests of any security holder, creditor, director, or officer of the corporation if an application is made to a court by a “complainant.”
		A “complainant” with respect to a corporation means any of the following: ● a present or former registered holder or beneficial owner of a security of the corporation or any of its affiliates; ● a present or former director or officer of the corporation or of any of its affiliates; ● a creditor in respect of an application under a derivative action; or ● any other person who, in the discretion of the court, is a proper person to make the application. The oppression remedy provides the court with very broad and flexible powers to intervene in corporate affairs to protect shareholders and other complainants.
Shareholder Derivative Actions	Under Delaware law, a shareholder may bring a derivative action on behalf of the corporation to enforce a corporate right, including the breach of a director’s duty to the corporation. Delaware law requires that the plaintiff in a derivative suit be (i) a shareholder of the corporation at the time of the wrong complained of and remain so throughout the duration of the suit, (ii) that the plaintiff make a demand on the directors of the corporation to assert the corporate claim unless the demand would be futile, and (iii) that the plaintiff is an adequate representative of the other shareholders.	Under the ABCA, a complainant may also apply to the court for permission to bring an action in the name of, and on behalf of, the corporation or any of its subsidiaries, or to intervene in an existing action to which the corporation or any of its subsidiaries is a party, for the purpose of prosecuting, defending or discontinuing an action on the corporation’s behalf or on behalf of its subsidiary. Under the ABCA, no action may be brought and no intervention in an action may be made unless a court is satisfied that (i) the complainant has given reasonable notice to the directors of the corporation or its subsidiary of the complainant’s intention to apply to the court if the directors of the corporation or its subsidiary do not bring, diligently prosecute, defend, or discontinue the action, (ii) the complainant is acting in good faith, and (iii) it appears to be in the interests of the corporation or its subsidiary that the action be brought, prosecuted, defended, or discontinued.
		Under the ABCA, the court in a derivative action may make any order it sees fit including orders pertaining to the control or conduct of the lawsuit by the complainant or the making of payments to former and present shareholders and payment of reasonable legal fees incurred by the complainant.

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	DGCL	ABCA
Business Combinations	Section 203 of the DGCL provides, with some exceptions, that a Delaware corporation may not engage in any business combination with a person, or an affiliate or associate of such person, who is an interested shareholder for three years from the time that person became an interested shareholder unless: ● the Board of Directors approved the transaction before the “interested shareholder” obtained such status; ● upon consummation of the transaction that resulted in the shareholder becoming an “interested shareholder,” the “interested shareholder” owned at least 85 percent of a Delaware corporation’s outstanding voting shares at the time the transaction commenced, excluding for purposes of determining the number of shares outstanding those shares owned (i) by persons who are directors and are also officers and (ii) employee share plans in which the participants do not have the right to determine confidentially whether shares held subject to the plans will be tendered in the tender or exchange offer; or ● on or subsequent to such date, the business combination or merger is approved by the Board of Directors and authorized at an annual or special meeting of shareholders, and not by written consent, by two-thirds of the holders of the outstanding common shares not owned by the “interested shareholder.” A “business combination” is defined to include mergers, asset sales and other transactions resulting in financial benefit to a shareholder. In general, an “interested shareholder” is a person who, together with affiliates and associates, owns 15 percent or more of a corporation’s voting shares or within three years did own 15 percent or more of a corporation’s voting shares. A corporation may, at its option, exclude itself from the coverage of Section 203 by an appropriate provision in its certificate of incorporation.	There is no comparable provision relating to business combinations under the ABCA. In Canada, business combinations (as defined in provincial securities legislation) and other related party transactions are addressed in provincial securities legislation and policies, some of which will apply to us.

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Election and Removal of Directors	Delaware law provides that a vacancy or a newly created directorship may be filled by a majority of the directors then in office, although less than a quorum, or by the sole remaining director, unless otherwise provided in the certificate of incorporation or bylaws. Any newly elected director usually holds office for the remainder of the full term expiring at the annual meeting of shareholders at which the term of the class of directors to which the newly elected director has been elected expires. Delaware law provides that, except in the case of a corporation with a classified board or with cumulative voting, any director or the entire board may be removed, with or without cause, by the holders of a majority of the shares entitled to vote at an election of directors.	The ABCA provides for the election of directors by a majority of votes cast at an annual meeting of shareholders. Under the ABCA, provided that the articles of a corporation do not provide for cumulative voting, shareholders of a corporation may, by ordinary resolution passed at a special meeting, remove any director or directors from office. If holders of a class or series of shares have the exclusive right to elect one or more directors, a director elected by them may only be removed by an “ordinary resolution” at a meeting of the shareholders of that class or series. An “ordinary resolution” means a resolution (i) passed by a majority of the votes cast by the shareholders who voted in respect of that resolution, or (ii) signed by all the shareholders entitled to vote on that resolution. Under the ABCA, a vacancy among the directors created by the removal of a director may be filled at a meeting of shareholders at which the director is removed. The ABCA also allows a vacancy on the Board of Directors to be filled by a quorum of directors, except when the vacancy is a result of a failure to elect the number or minimum number of directors required by the articles. In addition, as permitted by the ABCA and pursuant to our amended and restated articles, between annual general meetings, our directors will be authorized to appoint one or more additional directors of the corporation to serve until the next annual general meeting, so long as the number of additional directors shall not at any time exceed one third of the number of directors who held office at the expiration of the last annual meeting of the corporation.
Director Independence	The DGCL does not have director residency requirements although a corporation may prescribe qualifications for directors under its certificate of incorporation or bylaws. However, the Nasdaq’s governance standards require a majority of a listed company’s directors to be independent.	Both the ABCA and certain applicable provincial securities legislation and policies, prescribe director independence requirements.

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MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS

The following is a summary of the material U.S. federal income tax considerations relating to the purchase, ownership, and disposition of our Common Shares purchased in this offering, but does not purport to be a complete analysis of all the potential tax considerations. This summary is based upon the provisions of the Code, final, temporary, and proposed U.S. Treasury regulations promulgated thereunder, administrative rulings and pronouncements, and judicial decisions, all as of the date hereof. These authorities may change, possibly retroactively, resulting in U.S. federal income and estate tax consequences different from those set forth below. There can be no assurance that the Internal Revenue Service (the “IRS”) will not challenge one or more of the tax consequences described herein, and we have not obtained, and do not intend to obtain, an opinion of counsel or ruling from the IRS with respect to the U.S. federal income tax considerations relating to the purchase, ownership, or disposition of our securities.

This summary does not address any alternative minimum tax considerations, any considerations regarding the Medicare tax, any considerations regarding the tax on net investment income, or the tax considerations arising under the laws of any state, local, or non-U.S. jurisdiction, or under any non-income tax laws, including U.S. federal gift and estate tax laws, except to the limited extent set forth below. In addition, this summary does not address all of the tax consequences that may be relevant to investors, nor does it address tax considerations applicable to an investor’s particular circumstances or to investors that may be subject to special tax rules, including, without limitation:

● banks, insurance companies, or other financial institutions;

● tax-exempt entities or governmental organizations, including agencies or instrumentalities thereof;

● regulated investment companies and real estate investment trusts;

● controlled foreign corporations, PFICs, and corporations that accumulate earnings to avoid U.S. federal income tax;

● brokers or dealers in securities or currencies;

● traders in securities that elect to use a mark-to-market method of accounting for their securities holdings;

● persons that own, or are deemed to own, more than 5 percent of our capital stock (except to the extent specifically set forth below);

● tax-qualified retirement plans;

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

● partnerships or entities or arrangements classified as partnerships for U.S. federal income tax purposes and other pass-through entities including S corporations and trusts (and any investors therein);

● persons who hold our securities as a position in a hedging transaction, “straddle,” “conversion transaction,” integrated investment transaction, or other similar transaction;

● persons who do not hold our securities as a capital asset within the meaning of Section 1221 of the Code; or

● persons deemed to sell our securities under the constructive sale provisions of the Code.

In addition, if a partnership (or entity or arrangement classified as a partnership for U.S. federal income tax purposes) holds our securities, the tax treatment of a partner generally will depend on the status of the partner and upon the activities of the partnership. Accordingly, partnerships that hold our securities, and partners in such partnerships, should consult their tax advisors.

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Holders are urged to consult their own tax advisors with respect to the application of the U.S. federal income tax laws to their particular situations, as well as any tax consequences of the purchase, ownership, and disposition of our securities arising under the U.S. federal estate or gift tax laws or under the laws of any state, local, non-U.S., or other taxing jurisdiction or under any applicable tax treaty.

Tax Residence of the Company for U.S. Federal Income Tax Purposes

Under current U.S. federal income tax law, a corporation generally will be considered to be resident for U.S. federal income tax purposes in its place of organization or incorporation. Accordingly, under the generally applicable U.S. federal income tax rules, the Company, which is a Canadian-incorporated entity, would generally be classified as a non-U.S. corporation. Section 7874 of the Code and the Treasury Regulations promulgated thereunder, however, contain specific rules that may cause a non-U.S. corporation to be treated as a U.S. corporation for U.S. federal income tax purposes. If it were determined that the Company should be taxed as a U.S. corporation for U.S. federal income tax purposes under Section 7874 of the Code, then certain distributions made by the Company to non-U.S. holders of our Common Shares would be subject to U.S. withholding tax. The rules under Section 7874 of the Code are complex and require analysis of all relevant facts, and there is limited guidance as to their application.

Pursuant to the Plan of Merger, the Company indirectly acquired all of LEIIO’s assets through the acquisition of all of LEIIO’s outstanding shares of stock on February 17, 2021. Although this acquisition satisfies one of the conditions for application of Section 7874 of the Code (i.e., the acquisition of all of the stock of a U.S. corporation by a non-U.S. corporation), we do not expect the Company to be treated as a U.S. corporation for U.S. federal income tax purposes. However, interpretations of the Treasury Regulations describing the tests for determining the application of Section 7874 of the Code are subject to uncertainty and there is limited guidance regarding their application. In addition, changes to the rules in Section 7874 of the Code or the Treasury Regulations promulgated thereunder, or other changes in law, could adversely affect the Company’s status as a non-U.S. entity for U.S. federal income tax purposes. Accordingly, there can be no assurance that the IRS will not take a contrary position to those described above or that a court will not agree with a contrary position of the IRS in the event of litigation. The remainder of this discussion assumes that the Company will not be treated as a U.S. corporation for U.S. federal income tax purposes under Section 7874 of the Code.

We are, and expect to continue to be, a Canadian corporation as of the date of this registration statement. We are treated as a Canadian resident company under the Income Tax Act (Canada), as amended, and are subject to Canadian income taxes.

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, a U.S. holder means a beneficial owner of our securities, other than a partnership, that for U.S. federal income tax purposes 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 (i) 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 (ii) which has made a valid election to be treated as a “United States person.”

Passive Foreign Investment Company Rules

A non-U.S. corporation is considered a PFIC, as defined in Section 1297(a) of the Code, for any taxable year if either:

● at least 75 percent of its gross income for such taxable year is passive income (the “income test”); or

● at least 50 percent of the value of its assets (based on an average of the quarterly values of the assets during a taxable year) is attributable to assets that produce or are held for the production of passive income (the “asset test”).

Passive income generally includes dividends, interest, rents, and royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains from the disposition of passive assets. We will be treated as owning our proportionate share of the assets and earning our proportionate share of the income of any other corporation in which we own, directly or indirectly, at least 25 percent (by value) of the stock. In determining the value and composition of our assets for purposes of the PFIC asset test, (i) the cash we raise in this offering will generally be considered to be held for the production of passive income and (ii) the value of our assets must be determined based on the market value of our Common Shares from time to time, which could cause the value of our non-passive assets to be less than 50 percent of the value of all of our assets (including the cash raised in this offering) on any particular quarterly testing date for purposes of the asset test.

Based on the expected nature and composition of our income and assets for our taxable year ending December 31, 2023, we anticipate that we will not be classified as a PFIC for our taxable year ending December 31, 2023. The application of the PFIC rules is subject to uncertainty in several respects, and therefore, no assurances can be provided with respect to our PFIC status for our taxable year ending December 31, 2023, or with regard to our PFIC status in the future.

A separate determination must be made after the close of each taxable year as to whether we are a PFIC for that year. As a result, our PFIC status may change from year to year. The total value of our assets for purposes of the asset test generally may be determined in part by reference to the market price of our Common Shares, which may fluctuate considerably. Fluctuations in the market price of our Common Shares may result in our being a PFIC for any taxable year. Because of the uncertainties involved in establishing our PFIC status, our U.S. counsel expresses no opinion regarding our PFIC status.

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If we are classified as a PFIC in any year with respect to which a U.S. holder owns Common Shares, we will continue to be treated as a PFIC with respect to such U.S. holder in all succeeding years during which the U.S. holder owns our Common Shares, regardless of whether we continue to meet the tests described above unless (i) we cease to be a PFIC and the U.S. holder has made a valid “deemed sale” election under the PFIC rules, (ii) we cease to be a PFIC and the U.S. holder has a valid mark-to-market election in effect (as described below) or (iii) the U.S. holder makes a valid QEF Election with respect to all taxable years during such U.S. holder’s holding period in which we are a PFIC. However, a U.S. holder may make a QEF Election with respect to our Common Shares only if we annually provide such U.S. holder with certain tax information.

If we are a PFIC for our taxable year ending December 31, 2023, or any subsequent taxable years, then we expect to provide U.S. holders, upon request, a “PFIC Annual Information Statement,” with the information required to allow U.S. holders to make a QEF Election for U.S. federal income tax purposes.

If a U.S. holder makes a QEF Election with respect to a PFIC, in lieu of the tax consequences described below, the U.S. holder will be subject to current taxation on its pro rata share of the PFIC’s ordinary earnings and net capital gain for each taxable year that the entity is classified as a PFIC. If a U.S. holder makes a QEF Election with respect to us, any distributions paid by us out of our earnings and profits that were previously included in the U.S. holder’s income under the QEF Election would not be taxable to the holder. A U.S. holder will increase its tax basis in its Common Shares by an amount equal to any income included under the QEF Election and will decrease its tax basis by any amount distributed on our Common Shares that is not included in the holder’s income. In addition, a U.S. holder will recognize capital gain or loss on the disposition of Common Shares in an amount equal to the difference between the amount realized and the holder’s adjusted tax basis in our Common Shares. U.S. holders should note that if they make QEF Elections with respect to us and lower-tier PFICs, they may be required to pay U.S. federal income tax with respect to their Common Shares for any taxable year significantly in excess of any cash distributions (which are expected to be zero) received on our Common Shares for such taxable year. U.S. holders should consult their tax advisors regarding making QEF Elections in their particular circumstances. If a U.S. holder does not make and maintain a QEF election for the U.S. holder’s entire holding period for our Common Shares by making the election for the first year in which the U.S. holder owns such Common Shares pursuant to this offering, the U.S. holder will be subject to the adverse PFIC rules discussed above unless the U.S. holder can properly make a “purging election” with respect to our Common Shares in connection with the U.S. holder’s QEF Election. A purging election may require the U.S. holder to recognize taxable gain on the U.S. holder’s shares. No purging election is necessary for a U.S. holder that timely makes a QEF election for the first year in which the U.S. holder acquired our Common Shares.

If the “deemed sale” election is made, a U.S. holder will be deemed to have sold our Common Shares the U.S. holder holds at their fair market value and any gain from such deemed sale would be subject to the rules described below. After the deemed sale election, so long as we do not become a PFIC in a subsequent taxable year, the U.S. holder’s Common Shares with respect to which such election was made will not be treated as shares in a PFIC and the U.S. holder will not be subject to the rules described below with respect to any “excess distribution” the U.S. holder receives from us or any gain from an actual sale or other disposition of our Common Shares. U.S. holders should consult their tax advisors as to the possibility and consequences of making a deemed sale election if we cease to be a PFIC and such election becomes available.

For each taxable year we are treated as a PFIC with respect to U.S. holders, U.S. holders will be subject to special tax rules with respect to any “excess distribution” such U.S. holder receives and any gain such U.S. holder recognizes from a sale or other disposition (including a pledge) of Common Shares, unless (i) such U.S. holder makes a QEF Election with respect to all taxable years of a U.S. holder’s holding period during which we are a PFIC or makes a purging election to cause a deemed sale of our Common Shares at their fair market value in conjunction with a QEF election or (ii) our Common Shares constitute “marketable” securities, and such U.S. holder makes a mark-to-market election as discussed below. Distributions a U.S. holder receives in a taxable year that are greater than 125 percent of the average annual distributions a U.S. holder received during the shorter of the three preceding taxable years or the U.S. holder’s holding period for our Common Shares will be treated as excess distributions; in addition, any gain recognized from the disposition of our Common Shares will constitute an excess distribution. Under these special tax rules:

● an excess distribution will be allocated ratably over a U.S. holder’s holding period for our Common Shares;

● the amount allocated to the current taxable year, and any taxable year prior to the first taxable year in which we became a PFIC, will be treated as ordinary income; and

● the amount allocated to each other year will be subject to the highest tax rate in effect for that year and the interest charge generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year.

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The tax liability for amounts allocated to years prior to the year of disposition or the year of an “excess distribution” cannot be offset by any net operating losses for such years, and gains (but not losses) realized on the sale of our Common Shares cannot be treated as capital, even if a U.S. holder holds our Common Shares as capital assets.

If we are a PFIC, a U.S. holder will generally be subject to similar rules with respect to distributions we receive from, and our dispositions of the shares of, any of our direct or indirect subsidiaries that also are PFICs, as if such distributions were indirectly received by, and/or dispositions were indirectly carried out by, such U.S. holder.

If we are a PFIC, U.S. holders can avoid the interest charge on excess distributions or gain relating to our Common Shares by making a mark-to-market election with respect to our Common Shares, provided that our Common Shares are “marketable.” Common Shares will be marketable if they are “regularly traded” on certain U.S. stock exchanges or on a foreign stock exchange that meets certain conditions. For these purposes, our Common Shares will be considered regularly traded during any calendar year during which they are traded, other than in de minimis quantities, on at least fifteen days during each calendar quarter. Any trades that have as their principal purpose meeting this requirement will be disregarded. Our Common Shares will be listed on The Nasdaq Capital Market, which is a qualified exchange for these purposes. Consequently, if we are a PFIC and our Common Shares remain listed on The Nasdaq Capital Market and are regularly traded, then we would expect the mark-to-market election to be available to U.S. holders with respect to our Common Shares. Each U.S. holder should consult its tax advisors as to whether a mark-to-market election is available or advisable with respect to our Common Shares.

A U.S. holder that makes a mark-to-market election must include as ordinary income for each year an amount equal to the excess, if any, of the fair market value of our Common Shares at the close of the taxable year over the U.S. holder’s adjusted tax basis in our Common Shares. Accordingly, such mark-to-market election may accelerate the recognition of income without a corresponding receipt of cash. An electing holder may also claim an ordinary loss deduction for the excess, if any, of the U.S. holder’s adjusted basis in our Common Shares over the fair market value of our Common Shares at the close of the taxable year, but this deduction is allowable only to the extent of any net mark-to-market gains for prior years. Gains from an actual sale or other disposition of our Common Shares will be treated as ordinary income, and any losses incurred on a sale or other disposition of our Common Shares will be treated as an ordinary loss to the extent of any net mark-to-market gains for prior years. Once made, the election cannot be revoked without the consent of the IRS, unless our Common Shares cease to be marketable. However, a mark-to-market election generally cannot be made for equity interests in any lower-tier PFICs that we own, unless shares of such lower-tier PFIC are themselves “marketable.” As a result, even if a U.S. holder validly makes a mark-to-market election with respect to our Common Shares, the U.S. holder may continue to be subject to the PFIC rules with respect to its indirect interest in any of our investments that are treated as an equity interest in a PFIC for U.S. federal income tax purposes. U.S. holders should consult their tax advisors as to the availability and desirability of a mark-to-market election, as well as the impact of such election on interests in any lower-tier PFICs.

Unless otherwise provided by the U.S. Treasury, each U.S. holder of a PFIC is required to file an annual report containing such information as the U.S. Treasury may require. A U.S. holder’s failure to file the annual report will cause the statute of limitations for such U.S. holder’s U.S. federal income tax return to remain open with regard to the items required to be included in such report until three years after the U.S. holder files the annual report, and, unless such failure is due to reasonable cause and not willful neglect, the statute of limitations for the U.S. holder’s entire U.S. federal income tax return will remain open during such period.

WE STRONGLY URGE INVESTORS TO CONSULT THEIR TAX ADVISORS REGARDING THE IMPACT OF OUR PFIC STATUS ON AN INVESTMENT IN OUR SECURITIES AS WELL AS THE APPLICATION OF THE PFIC RULES TO THEIR INVESTMENT IN OUR SECURITIES.

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Controlled Foreign Corporation Rules

If a U.S. holder owns directly, indirectly or constructively (under Section 318 of the Code) at least 10 percent of the voting power or value of shares of a foreign corporation, such U.S. person is considered a “U.S. Shareholder” with respect to the foreign corporation. If U.S. Shareholders, in the aggregate, own more than 50 percent of the voting power or value of the shares of such corporation, the foreign corporation will be classified as a CFC. Additionally, even absent U.S. Shareholders with direct or indirect interests in a foreign corporation, a U.S. subsidiary of the Company alone may cause certain related foreign corporations to be treated as CFCs by reason of certain “downward attribution” rules.

We believe that we were not a CFC in the 2022 taxable year, and we do not expect to become a CFC in the 2023 taxable year or in a subsequent taxable year. However, given that the Company’s Common Shares are widely held, the constructive ownership rules under Section 318 of the U.S. Tax Code may make it difficult to determine whether any U.S. person is a U.S. Shareholder as to the Company and its non-U.S. subsidiaries and whether the Company or any of its non-U.S. subsidiaries is a CFC.

Because the Company group will include one or more U.S. subsidiaries, the Company’s non-U.S. subsidiaries could be treated as CFCs (regardless of whether the Company is treated as a CFC), depending on the structure of the Company group at any given time. If the Company, or any non-U.S. subsidiary of the Company, is treated as a CFC, any U.S. Shareholder must report annually and include in its U.S. taxable income its pro rata share of “Subpart F income,” “global intangible low-taxed income” and investments in U.S. property held by CFCs, regardless of whether any distributions are made to such U.S. Shareholder. In addition, gain on the sale of the CFC shares by a U.S. Shareholder (during the period that the corporation is a CFC and thereafter for a five-year period) would be classified in whole or in part as a dividend, to the extent of certain of the CFC’s earnings and profits. An individual that is a U.S. Shareholder with respect to a CFC generally would not be allowed certain tax deductions or foreign tax credits that would be allowed to a U.S. Shareholder that is a U.S. corporation. Failure to comply with these reporting and tax paying obligations may subject a U.S. Shareholder to significant monetary penalties and may prevent the statute of limitations with respect to such shareholder’s U.S. federal income tax return for the year for which reporting was due from starting. The Company cannot provide any assurances that it will assist investors in determining whether it or any of its non-U.S. subsidiaries is treated as a CFC or whether any investor is treated as a U.S. Shareholder with respect to any such CFC or furnish to any U.S. Shareholders information that may be necessary to comply with the aforementioned reporting and tax paying obligations. A U.S. holder should consult its advisors regarding the potential application of these rules to an investment in our Common Shares.

Distributions

As described in “Dividend Policy” on page 43 of this prospectus, we do not pay cash dividends on our Common Shares and do not anticipate paying any dividends on our Common Shares in the foreseeable future. However, if we do make distributions of cash or property on our Common Shares, those payments generally will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles, and will be includible in a U.S. holder’s income when received. If a distribution exceeds our current and accumulated earnings and profits, the excess will be treated as a tax-free return of the U.S. holder’s investment, up to such holder’s tax basis in the Common Shares. Any remaining excess will be treated as capital gain, subject to the tax treatment described in “Sale, Exchange, or Other Taxable Disposition of our Common Shares” below.

For non-corporate U.S. holders, dividends with respect to our Common Shares would generally be taxed as ordinary income, however, certain dividends received from a qualified foreign corporation may be subject to reduced rates of taxation. A qualified foreign corporation includes a foreign corporation that is eligible for the benefits of a comprehensive income tax treaty with the U.S. which the U.S. Treasury Department determines to be satisfactory for these purposes and which includes an exchange of information provision. The U.S. Treasury Department has determined that the current income tax treaty between the United States and Canada meets these requirements. A foreign corporation is also treated as a qualified foreign corporation with respect to dividends paid by that corporation on shares that are readily tradable on an established securities market in the United States. Once listed, our Common Shares will be considered readily tradable on an established securities market in the United States. There can be no assurance, however, that our Common Shares will be considered readily tradable on an established securities market in later years. Furthermore, non-corporate U.S. holders will not be eligible for the reduced rates of taxation on any dividends received from the Company if the Company is a “surrogate foreign corporation” as defined under Section 7874 of the Code or if the Company is characterized as a PFIC in the taxable year in which such dividend is paid or in a preceding taxable year (see “Material U.S. Federal Income Tax Considerations—Passive Foreign Investment Company Rules” beginning on page 111 of this prospectus). 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.

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Dividends will generally be treated as income from foreign sources for U.S. foreign tax credit purposes and will generally constitute passive category income. The rules governing the foreign tax credit are complex and the outcome of their application depends in large part on the U.S. holder’s individual facts and circumstances. Accordingly, U.S. holders are urged to consult their tax advisors regarding the availability of the foreign tax credit under their particular circumstances.

Sale, Exchange, or Other Taxable Disposition of our Common Shares

A U.S. holder will generally recognize capital gain or loss on the sale, exchange, or other taxable disposition of our Common Shares. 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 Common 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 Common Shares. A U.S. holder’s adjusted tax basis in the Common Shares 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 transferred Common Shares 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.

Foreign Tax Credit Limitation

Although we don’t anticipate being subject to tax both as a U.S. domestic corporation and as a Canadian corporation, if that position proves incorrect, then a U.S. holder may pay, through withholding, Canadian tax, as well as U.S. federal income tax, with respect to dividends paid on the Common Shares. For U.S. federal income tax purposes, a U.S. holder may elect for any taxable year to receive either a credit or a deduction for all foreign income taxes paid by the holder during the year. Complex limitations apply to the foreign tax credit, including a general limitation that the credit cannot exceed the proportionate share of a taxpayer’s U.S. federal income tax that the taxpayer’s foreign source taxable income bears to the taxpayer’s worldwide taxable income. In applying this limitation, items of income and deduction must be classified, under complex rules, as either foreign source or U.S. source. Our status as a U.S. domestic corporation for U.S. federal income tax purposes will cause dividends paid by us to be treated as U.S. source rather than foreign source income for this purpose. As a result, a foreign tax credit may be unavailable for any Canadian tax paid on dividends received from us. Similarly, to the extent a sale or disposition of our Common Shares by a U.S. holder results in Canadian tax payable by the U.S. holder (for example, because the Common Shares constitute taxable Canadian property within the meaning of the Income Tax Act (Canada), as amended), a U.S. foreign tax credit may be unavailable to the U.S. holder for such Canadian tax. In each case, however, the U.S. holder should be able to claim a deduction for the U.S. holder’s Canadian tax paid, provided that the U.S. holder has not elected to credit other foreign taxes during the same taxable year, although such deductions may be significantly limited for non-corporate holders. The foreign tax credit rules are complex, and each U.S. holder should consult its own tax advisors regarding these rules.

Foreign Currency

The amount of any distribution paid to a U.S. holder in foreign currency, or the amount of proceeds paid in foreign currency on the sale, exchange or other taxable disposition of the Common Shares, generally will be equal to the U.S. dollar value of such foreign currency based on the exchange rate applicable on the date of receipt (regardless of whether such foreign currency is converted into U.S. dollars at that time). A U.S. holder will have a basis in the foreign currency equal to its U.S. dollar value on the date of receipt. Any U.S. holder who converts or otherwise disposes of the foreign currency after the date of receipt may have a foreign currency exchange gain or loss that would be treated as ordinary income or loss, and generally will be U.S. source income or loss for foreign tax credit purposes. Different rules apply to U.S. holders who use the accrual method of tax accounting. Each U.S. holder should consult its own U.S. tax advisors.

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 Shares, 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.

Unearned Income Medicare Tax

Certain U.S. holders that are individuals, estates, or trusts and whose income exceeds certain thresholds generally are subject to a 3.8 percent tax on all or a portion of their net investment income, which may include their gross dividend income and net gains from the disposition of our Common Shares. A U.S. holder that is an individual, estate, or trust, is encouraged to consult its tax advisors regarding the applicability of this Medicare tax to its income and gains in respect of such holder’s investment in our Common Shares.

EACH PROSPECTIVE INVESTOR SHOULD CONSULT ITS OWN TAX ADVISORS 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.

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MATERIAL CANADIAN FEDERAL INCOME TAX CONSIDERATIONS

The following is, as of the date hereof, a summary of the principal Canadian federal income tax considerations generally applicable under the Income Tax Act (Canada), as amended, and the regulations promulgated thereunder (collectively, the “Tax Act”) to a purchaser of the Common Shares pursuant to this offering, and who, for purposes of the Tax Act and at all relevant times (i) is not, and is not deemed to be, resident in Canada, (ii) acquires Common Shares as purchaser and beneficial owner pursuant to this offering and acquires and holds such Common Shares as capital property, (iii) deals at arm’s length with, and is not affiliated with, the Company or the underwriter, and (iv) does not use or hold and will not be deemed to use or hold, the Common Shares in a business carried on in Canada (hereinafter, a “Non-Resident Holder”). Special rules, which are not discussed in this summary, may apply to a Non-Resident Holder that is an “authorized foreign bank” within the meaning of the Tax Act or an insurer carrying on an insurance business in Canada and elsewhere. Any such Non-Resident Holder should consult its own tax advisor.

This summary is based upon the provisions of the Tax Act in force as of the date hereof, all specific proposals to amend the Tax Act that have been publicly announced by or on behalf of the Minister of Finance (Canada) prior to the date hereof (the “Proposed Amendments”), the Canada-U.S. Tax Treaty (the “Treaty”), and an understanding of the current administrative policies and assessing practices of the Canada Revenue Agency (the “CRA”) published in writing by it prior to the date hereof. This summary assumes the Proposed Amendments will be enacted in the form proposed. However, no assurance can be given that the Proposed Amendments will be enacted in their current form, or at all. This summary is not exhaustive of all possible Canadian federal income tax considerations and, except for the Proposed Amendments, does not take into account or anticipate any changes in the law or any changes in the CRA’s administrative policies or assessing practices, whether by legislative, governmental, or judicial action or decision, nor does it take into account or anticipate any other federal or any provincial, territorial, or foreign tax considerations, which may differ significantly from those discussed herein.

This summary is not applicable to a Non-Resident Holder who makes or has made a “functional currency” reporting election; or that has entered or enters into a “derivative forward agreement” with respect to the Common Shares (each as defined in the Tax Act). Any such Non-Resident Holder should consult its own tax advisors with respect to an investment in the Common Shares.

Generally, for purposes of the Tax Act, all amounts relating to the acquisition, holding, or disposition of our Common Shares must be converted into Canadian dollars based on the exchange rates as determined in accordance with the Tax Act. The amounts subject to withholding tax and any capital gains or capital losses realized by a Non-Resident Holder may be affected by fluctuations in the Canadian-U.S. dollar exchange rate.

THIS SUMMARY IS OF A GENERAL NATURE ONLY AND IS NOT INTENDED TO BE, NOR SHOULD IT BE CONSTRUED TO BE, LEGAL OR TAX ADVICE TO ANY PROSPECTIVE PURCHASER OR HOLDER OF OUR SECURITIES, AND NO REPRESENTATIONS WITH RESPECT TO THE INCOME TAX CONSEQUENCES TO ANY PROSPECTIVE PURCHASER OR HOLDER ARE MADE. CONSEQUENTLY, PROSPECTIVE PURCHASERS OR HOLDERS OF THE COMMON SHARES SHOULD CONSULT THEIR OWN TAX ADVISORS WITH RESPECT TO THEIR PARTICULAR CIRCUMSTANCES.

Tax Cost

The adjusted cost base to a Non-Resident Holder of each Common Share acquired pursuant to this offering will be determined by averaging the cost of such Common Share with the adjusted cost base to such Non-Resident Holder of all other Common Shares (if any) held by the Non-Resident Holder as capital property immediately prior to the acquisition.

Dispositions

A Non-Resident Holder generally will not be subject to tax under the Tax Act in respect of a capital gain realized on the disposition or deemed disposition of Common Shares, unless such Common Shares constitute “taxable Canadian property” (as defined in the Tax Act) of the Non-Resident Holder at the time of disposition and the Non-Resident Holder is not entitled to relief under an applicable income tax treaty or convention. In addition, capital losses arising on the disposition or deemed disposition of Common Shares will not be recognized under the Tax Act, unless the Common Shares constitute “taxable Canadian property” to the Non-Resident Holder thereof for purposes of the Tax Act.

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Provided the Common Shares are listed on a “designated stock exchange,” as defined in the Tax Act (which currently includes The Nasdaq Capital Market), at the time of disposition, the Common Shares will generally not constitute taxable Canadian property of a Non-Resident Holder at that time, unless at any time during the sixty-month period immediately preceding the disposition the following two conditions are satisfied concurrently: (i) (a) the Non-Resident Holder; (b) persons with whom the Non-Resident Holder did not deal at arm’s length; (c) partnerships in which the Non-Resident Holder or a person described in (b) holds a membership interest directly or indirectly through one or more partnerships; or (d) any combination of the persons and partnerships described in (a) through (c), owned 25 percent or more of the issued shares of any class or series of the shares of the Company; and (ii) more than 50 percent of the fair market value of the shares of the Company was derived directly or indirectly from one or any combination of: real or immovable property situated in Canada, “Canadian resource properties,” “timber resource properties” (each as defined in the Tax Act), and options in respect of, or interests in or for civil law rights in, such properties, whether or not such properties exist. Notwithstanding the foregoing, in certain circumstances set out in the Tax Act, the Common Shares could be deemed to be “taxable Canadian property.” Even if the Common Shares are “taxable Canadian property” to a Non-Resident Holder, such Non-Resident Holder may be exempt from tax under the Tax Act on the disposition of such Common Shares by virtue of an applicable income tax treaty or convention. A Non-Resident Holder contemplating a disposition of Common Shares that may constitute “taxable Canadian property” should consult its own tax advisors prior to such disposition.

Dividends

Dividends paid or credited on the Common Shares or deemed to be paid or credited on the Common Shares to a Non-Resident Holder by the Company are subject to Canadian withholding tax under the Tax Act at the rate of 25 percent of the gross amount of such dividends, although such rate may be reduced under the provisions of an applicable income tax convention between Canada and the Non-Resident Holder’s country of residence. For example, under the Treaty, the rate of withholding tax on dividends paid or credited or deemed to be paid or credited to a beneficially entitled Non-Resident Holder who is resident in the United States for purposes of the Treaty and who is fully entitled to the benefits of the Treaty (a “U.S. holder”) is generally limited to 15 percent of the gross amount of the dividend (or 5 percent in the case of a U.S. holder that is a corporation beneficially owning at least 10 percent of the Company’s voting shares). Non-Resident Holders are urged to consult their own tax advisors to determine their entitlement to relief under an applicable income tax treaty.

Certain entities (including most limited liability companies) that are treated as being fiscally transparent for U.S. federal income tax purposes will not qualify as residents of the United States and therefore will not be entitled to relief from Canadian tax under the provisions of the Treaty. However, the Treaty allows certain U.S. resident owners of transparent entities to enjoy benefits of the Treaty under certain circumstances. Non-Resident Holders should consult their own tax advisors to determine their entitlement to relief from Canadian withholding tax under the provisions of the Treaty based on their particular circumstances.

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UNDERWRITING

Subject to the terms and conditions of an underwriting agreement between us and the underwriter, EF Hutton, division of Benchmark Investments, LLC (“EF Hutton”), EF Hutton has agreed to purchase, and we have agreed to sell to EF Hutton, 2,900,000 Common Shares. Subject to the terms and conditions set forth in the underwriting agreement, EF Hutton has agreed to purchase all of the Common Shares sold under the underwriting agreement if any of these securities are purchased. The underwriting agreement also provides that if EF Hutton defaults, the offering may be terminated. EF Hutton is not obligated to purchase the Common Shares covered by the underwriter’s over-allotment option described below. EF Hutton is offering the Common Shares, subject to prior sale, when, as, and if issued to and accepted by EF Hutton, subject to approval of legal matters by its counsel, and other conditions contained in the underwriting agreement, such as the receipt by EF Hutton of officer’s certificates and legal opinions. EF Hutton reserves the right to withdraw, cancel, or modify offers to the public and to reject orders in whole or in part. EF Hutton has not committed to purchase and is not involved in the sale of the selling shareholder shares.

Option to Purchase Additional Shares

We have granted an option to EF Hutton, exercisable one or more times in whole or in part for forty-five days after the date of this prospectus, to purchase up to an additional 435,000 Common Shares, at the Primary Offering price per Common Share, less, in each case, the underwriting discounts payable by us. This option equals 15 percent of the Common Shares in the Primary Offering. The securities issuable upon exercise of this option are identical to those offered by this prospectus and have been registered under the registration statement of which this prospectus forms a part.

Underwriting Commissions and Discounts

Common Shares sold by EF Hutton to the public will initially be offered at the initial offering price set forth on the cover of this prospectus. Any Common Shares sold by EF Hutton to securities dealers may be sold at a discount of up to $      per Common Share from the Primary Offering price. EF Hutton may offer the Common Shares through one or more of its affiliates or selling agents. After the Primary Offering, the public offering price, concession, or any other term of the offering may be changed.

The underwriting discount is equal to the Primary Offering price per Common Share, less the amount paid by EF Hutton to us per Common Share. The underwriting discount was determined through an arms’ length negotiation between us and EF Hutton.

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The following table shows the per Common Share and total underwriting discount we will pay to EF Hutton assuming both no exercise and full exercise of the underwriter’s over-allotment option:

	No Exercise	Full Exercise
Per Common Share Underwriting Discount	$	$
Total Underwriting Discount	$	$

We estimate that the total expenses of the offering payable by us, including certain expenses of EF Hutton which we have agreed to reimburse but not including the underwriting discount, will be approximately $1,465,250. We have agreed to reimburse EF Hutton for certain of their expenses in an amount not to exceed $150,000 in the aggregate. Additionally, 0.5 percent of the gross proceeds of the Primary Offering will be provided to EF Hutton for non-accountable expenses.

Right of First Refusal

Subject to certain conditions, we granted to EF Hutton, for a period of twelve months after closing of the offering, a right of first refusal to act as sole investment banker, book runner, and/or sole placement agent, at EF Hutton’s sole discretion, for each and every future public and private equity and debt offering, including all equity linked financings for us or any of our successors or subsidiaries. In accordance with FINRA Rule 5110(g)(6)(A), such right of first refusal shall not have a duration of more than three years from the effective date of the registration statement of which this prospectus forms a part.

Lock-up Agreements

The Company, certain of our directors and executive officers, certain of our shareholders affiliated with our directors and executive officers, and Luminous Capital Inc. have agreed not to, subject to certain limited exceptions, offer, pledge, sell, contract to sell, grant any option to purchase, or otherwise dispose of our Common Shares or any securities convertible into or exchangeable or exercisable for Common Shares, or to enter into any hedge or other arrangement or any transaction that transfers, directly or indirectly, the economic consequence of ownership of our Common Shares, for a period of 180 days after the effective date of the underwriting agreement between us and EF Hutton, without the prior written consent of EF Hutton. Each such holder’s Common Shares will thereafter be incrementally released from this lock-up arrangement as follows: (i) 25 percent of each such holder’s Common Shares will be released from the lock-up arrangement on the date that is 180 days after the effective date of the underwriting agreement; (ii) 25 percent of each such holder’s Common Shares will be released from the lock-up arrangement on the date that is 360 days after the effective date of the underwriting agreement; (iii) 25 percent of each such holder’s Common Shares will be released from the lock-up arrangement on the date that is 540 days after the effective date of the underwriting agreement; and (iv) 25 percent of each such holder’s Common Shares will be released from the lock-up arrangement on the date that is 720 days after the effective date of the underwriting agreement.

Indemnification

We have agreed to indemnify EF Hutton against certain liabilities, including certain liabilities under the Securities Act. If we are unable to provide this indemnification, we have agreed to contribute to payments EF Hutton may be required to make in respect of those liabilities.

Stock Exchange

Prior to this offering, there has been no public market for our Common Shares. We have applied to list our Common Shares on The Nasdaq Capital Market under the symbol “FP”.

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Price Stabilization, Short Positions

In connection with this offering, EF Hutton may engage in activities that stabilize, maintain, or otherwise affect the price of our Common Shares during and after this offering, including:

● stabilizing transactions;

● short sales;

● purchases to cover positions created by short sales; and

● syndicate covering transactions.

Stabilizing transactions consist of bids or purchases made for the purpose of preventing or retarding a decline in the market price of our Common Shares while this offering is in progress. Stabilization transactions permit bids to purchase the underlying security so long as the stabilizing bids do not exceed a specified maximum. These transactions may also include making short sales of our Common Shares, which involve the sale by EF Hutton of a greater number of Common Shares than it is required to purchase in this offering and purchasing Common Shares on the open market to cover short positions created by short sales. Short sales may be “covered short sales,” which are short positions in an amount not greater than the underwriter’s over-allotment option to purchase additional shares referred to above, or may be “naked short sales,” which are short positions in excess of that amount.

EF Hutton may close out any covered short position by either exercising its option, in whole or in part, or by purchasing shares in the open market. In making this determination, EF Hutton will consider, among other things, the price of shares available for purchase in the open market as compared to the price at which it may purchase shares through the underwriter’s over-allotment option.

Naked short sales are short sales made in excess of the underwriter’s over-allotment option. EF Hutton must close out any naked short position by purchasing shares in the open market. A naked short position is more likely to be created if EF Hutton is concerned that there may be downward pressure on the price of the Common Shares in the open market that could adversely affect investors who purchased Common Shares in this offering.

These stabilizing transactions, short sales, purchases to cover positions created by short sales, and syndicate covering transactions may have the effect of raising or maintaining the market price of our Common Shares or preventing or retarding a decline in the market price of our Common Shares. As a result of these activities, the price of our Common Shares may be higher than the price that otherwise might exist in the open market. EF Hutton may carry out these transactions on The Nasdaq Capital Market, in the over-the-counter market, or otherwise. Neither we nor EF Hutton make any representation or prediction as to the effect that the transactions described above may have on the price of the Common Shares. Neither we nor EF Hutton make any representation that EF Hutton will engage in these stabilization transactions or that any transaction, once commenced, will not be discontinued without notice.

Determination of Offering Price

The principal factors to be considered in determining the public offering price of our Common Shares in the Primary Offering include:

● the information set forth in this prospectus and otherwise available to the underwriter;

● our history and prospects and the history and prospects for the industry in which we compete;

● our past and present financial performance;

● our prospects for future earnings and the present state of our development;

● the general condition of the securities market at the time of this offering;

● the recent market prices of, and demand for, publicly traded shares of generally comparable companies; and

● other factors deemed relevant by the underwriter and us.

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The assumed Primary 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 EF Hutton can assure investors that an active trading market will develop for our Common Shares or that the Common Shares will trade in the public market at or above the Primary Offering price.

Other Relationships

EF Hutton and its affiliates are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment, hedging, financing, and brokerage activities. EF Hutton and its affiliates have in the past, and may from time to time in the future, engage with us and perform services for us or in the ordinary course of their business for which they have in the past, and may in the future, receive customary fees and expenses. In the ordinary course of their various business activities, EF Hutton and its affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers, and such investment and securities activities may involve securities and/or instruments of us. EF Hutton and its affiliates may also make investment recommendations and/or publish or express independent research views in respect of these securities or instruments and may at any time hold, or recommend to clients that they acquire, long and/or short positions in these securities and instruments.

Electronic Distribution

A prospectus in electronic format may be made available on the Internet sites or through other online services maintained by EF Hutton or by its affiliates. In those cases, prospective investors may view offering terms online and prospective investors may be allowed to place orders online. EF Hutton may agree with us to allocate a specific number of shares for sale to online brokerage account holders. Any such allocation for online distributions will be made by EF Hutton on the same basis as other allocations. Other than the prospectus in electronic format, the information on EF Hutton’s website and any information contained in any other website maintained by EF Hutton has not been approved and/or endorsed by us or EF Hutton in their capacity as underwriter and should not be relied upon by investors.

Selling Restrictions

European Economic Area

In relation to each Member State of the European Economic Area which has implemented the Prospectus Regulation (each, a “Relevant Member State”), an offer to the public of the securities may not be made in that Relevant Member State, except that an offer to the public in that Relevant Member State of the securities may be made at any time under the following exemptions under the Prospectus Regulation, if they have been implemented in that Relevant Member State:

(i)	to any legal entity which is a qualified investor as defined in the Prospectus Regulation;
(ii)	to fewer than 150 natural or legal persons (other than qualified investors as defined in the Prospectus Regulation), subject to obtaining the prior consent of the representatives for any such offer; or
(iii)	in any other circumstances falling within Article 1(4) of the Prospectus Regulation, provided that no such offer of the securities shall result in a requirement for the publication by us or any underwriter of a prospectus pursuant to Article 3 of the Prospectus Regulation.

For the purposes of this provision, the expression an “offer to the public” in relation to 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 the securities to be offered so as to enable an investor to decide to purchase the securities, and the expression “Prospectus Regulation” means Regulation (EU) 2017/1129.

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United Kingdom

The underwriter has represented and agreed that:

(i)

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) received by it in connection with the issue or sale of the securities in circumstances in which Section 21(1) of the Financial Services and Markets Act 2000 does not apply to us; and

(ii)

it has complied and will comply with all applicable provisions of the Financial Services and Markets Act 2000 with respect to anything done by it in relation to the securities in, from, or otherwise involving the United Kingdom.

Hong Kong

The securities may not be offered or sold by means of any document other than (i) in circumstances which do not constitute an offer to the public within the meaning of the Companies Ordinance (Cap.32, Laws of Hong Kong), (ii) to “professional investors” within the meaning of the Securities and Futures Ordinance (Cap.571, Laws of Hong Kong) and any rules made thereunder, or (iii) in other circumstances which do not result in the document being a “prospectus” within the meaning of the Companies Ordinance (Cap.32, Laws of Hong Kong), and no advertisement, invitation, or document relating to the securities may be issued or may be in the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere), which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the laws of Hong Kong) other than with respect to the securities which are or are intended to be disposed of only to persons outside Hong Kong or only to “professional investors” within the meaning of the Securities and Futures Ordinance (Cap.571, Laws of Hong Kong) and any rules made thereunder.

Japan

No registration pursuant to Article 4, paragraph 1 of the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948, as amended) (the “FIEL”) has been made or will be made with respect to the solicitation of the application for the acquisition of the securities.

Accordingly, the securities have not been, directly or indirectly, offered or sold and will not be, directly or indirectly, offered or sold in Japan or to, or for the benefit of, any resident of Japan (which term as used herein means any person resident in Japan, including any corporation or other entity organized under the laws of Japan) or to others for re-offering or re-sale, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan except pursuant to an exemption from the registration requirements, and otherwise in compliance with, the FIEL and the other applicable laws and regulations of Japan.

For Qualified Institutional Investors (“QII”)

Please note that the solicitation for newly-issued or secondary securities (each as described in Paragraph 2, Article 4 of the FIEL) in relation to the securities constitutes either a “QII only private placement” or a “QII only secondary distribution” (each as described in Paragraph 1, Article 23-13 of the FIEL). Disclosure regarding any such solicitation, as is otherwise prescribed in Paragraph 1, Article 4 of the FIEL, has not been made in relation to the securities. The securities may only be transferred to QIIs.

For Non-QII Investors

Please note that the solicitation for newly-issued or secondary securities (each as described in Paragraph 2, Article 4 of the FIEL) in relation to the securities constitutes either a “small number private placement” or a “small number private secondary distribution” (each as is described in Paragraph 4, Article 23-13 of the FIEL). Disclosure regarding any such solicitation, as is otherwise prescribed in Paragraph 1, Article 4 of the FIEL, has not been made in relation to the securities. The securities may only be transferred en bloc without subdivision to a single investor.

Singapore

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this prospectus and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the securities may not be circulated or distributed, nor may the securities be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor under Section 274 of the Securities and Futures Act, Chapter 289 of Singapore (the “SFA”), (ii) to a relevant person, or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section 275 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.

Where the securities are subscribed or purchased under Section 275 of the SFA by a relevant person which is: (i) a corporation (which is not an accredited investor) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or (ii) a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary is an accredited investor, shares, debentures, and units of shares and debentures of that corporation or the beneficiaries’ rights and interest in that trust shall not be transferable for six months after that corporation or that trust has acquired securities under Section 275 of the SFA except: (a) to an institutional investor under Section 274 of the SFA or to a relevant person, or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section 275 of the SFA; (b) where no consideration is given for the transfer; or (c) by operation of law.

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LEGAL MATTERS

Certain legal matters in connection with this offering will be passed upon for us by Dentons US LLP, New York, New York, with respect to U.S. law, and by Dentons Canada LLP, Calgary, Alberta, with respect to Canadian law. Certain legal matters will be passed upon on behalf of the underwriter by Hogan Lovells US LLP, Denver, Colorado.

EXPERTS

Our financial statements as of December 31, 2022 and 2021 (covering the period from January 21, 2021 (inception) through December 31, 2021) and for the years then ended, have been audited by Marcum LLP, an independent registered public accounting firm as set forth in its report and are included in reliance upon such report given on the authority of such firm as experts in accounting.

WHERE YOU CAN FIND ADDITIONAL INFORMATION

We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the Common Shares we are offering to sell. This prospectus, which constitutes part of the registration statement, does not include all of the information contained in the registration statement and the exhibits, schedules, and amendments to the registration statement. For further information with respect to us and our Common Shares, we refer you to the registration statement and to the exhibits and schedules to the registration statement. Statements contained in this prospectus about the contents of any contract, agreement, or other document are not necessarily complete, and, in each instance, we refer you to the copy of the contract, agreement, or other document filed as an exhibit to the registration statement. Each of these statements is qualified in all respects by this reference.

You may access our filings with the SEC, including the registration statement of which this prospectus is a part, at the SEC’s website at www.sec.gov. In addition, the Canadian regulatory authorities maintain a website that contains reports, proxy, and information statements and other information at www.sedar.com.

Upon effectiveness of this registration statement, we will be subject to the information reporting requirements of the Exchange Act, and we will file reports, proxy statements, and other information with the SEC. All documents filed with the SEC are available for inspection and copying at the public reference room and website of the SEC referred to above. We maintain a website at https://www.firstpersongroup.com. You may access our reports, proxy statements, and other information free of charge at this website as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC.

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FIRST PERSON LTD.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Financial Statements as of December 31, 2022, and December 31, 2021, and for the Year Ended December 31, 2022, and the Period from January 21, 2021 (Inception) through December 31, 2021

Report of Independent Registered Public Accounting Firm	F-2
Consolidated Balance Sheets	F-3
Consolidated Statements of Operations and Comprehensive Loss	F-4
Consolidated Statements of Changes in Shareholders’ Equity	F-5 – F-6
Consolidated Statements of Cash Flows	F-7
Notes to Consolidated Financial Statements	F-8 – F-21

Unaudited Interim Condensed Consolidated Financial Statements as of June 30, 2023 and December 31, 2022 and for the Six-Months Ended June 30, 2023 and June 30, 2022

Unaudited Interim Condensed Consolidated Balance Sheets	F-22
Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Loss	F-23
Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity	F-24 – F-25
Unaudited Interim Condensed Consolidated Statements of Cash Flows	F-26
Notes to Unaudited Interim Condensed Consolidated Financial Statements	F-27 – F-32

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors of

First Person Ltd.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of First Person Ltd. (the “Company”) as of December 31, 2022 and 2021, the related consolidated statements of operations and comprehensive loss, changes in shareholders’ equity and cash flows for the year ended December 31, 2022 and the period from January 21, 2021 (inception) to December 31, 2021, 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 the year ended December 31, 2022 and the period from January 21, 2021 (inception) to December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

Explanatory Paragraph – Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As more fully described in Note 2, the Company has incurred significant losses and expects that its operating expenses will continue to increase and that it will continue to incur cash outflows from operations. These conditions 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 consolidated 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 audits 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.

/s/ Marcum LLP

Marcum LLP

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

Costa Mesa, CA
May 1, 2023, except as to Note 10, for which the date is September 12, 2023

F-2

FIRST PERSON LTD.

CONSOLIDATED BALANCE SHEETS

	DECEMBER 31,			DECEMBER 31,
AS OF	2022			2021
ASSETS
Current assets:
Cash	$	64,865		$	559,158
Accounts receivable, net		55,063			-
Inventory		1,012,799			97,636
Prepaid expenses and other current assets		238,467			539,592
Deferred offering cost		889,189			297,437
Total current assets		2,260,383			1,493,823
Property and equipment, net		988,382			9,595
Construction-in-progress		-			452,405
Deposits		16,803			3,178
Intangible assets		131,576			189,956
Operating lease right-of-use asset		196,580			158,451
Total assets	$	3,593,724		$	2,307,408
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable (includes related party balances of $686,476 as of December 31, 2022)	$	2,532,690		$	436,011
Accrued expenses and other current liabilities		278,088			116,825
Lease liability, current portion		78,626			36,449
Loans and note payable		1,097,742			-
Total current liabilities		3,987,145			589,285
Lease liability, net of current portion		117,954			122,002
Total liabilities		4,105,099			711,287
Commitments and contingencies (see Note 10)
Shareholders’ equity
Common shares, no par value – unlimited authorized, 6,351,354 and 5,804,254 shares issued and outstanding as of December 31, 2022, and December 31, 2021, respectively		7,081,261			4,357,943
Additional paid-in capital		693,951			195,501
Accumulated deficit		(8,314,421	)		(2,921,325	)
Accumulated other comprehensive loss		27,834			(35,998	)
Total shareholders’ equity		(511,375	)		1,596,121
Total liabilities and shareholders’ equity	$	3,593,724		$	2,307,408

See accompanying notes to consolidated financial statements.

F-3

FIRST PERSON LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

	Year Ended			January 21, 2021 (Inception) through
	December 31, 2022			December 31, 2021
Revenues, net	$	4,334,020		$	-
Cost of Goods Sold		1,406,371			-
Gross Profit		2,927,649			-
Operating expenses:
Selling, general and administrative		8,080,594			2,948,245
Depreciation and amortization		51,592			1,378
Foreign currency transaction losses (gains)		100,851			(28,146	)
Total operating expenses		8,233,037			2,921,477
Loss from operations		(5,305,388	)		(2,921,477	)
Other income (expense):
Net interest income (expense)		(87,708	)		152
Total other income (expense)		(87,708	)		152
Loss before provision for income taxes		(5,393,096	)		(2,921,325	)
Provision for income taxes		-			-
Net loss		(5,393,096	)		(2,921,325	)
Other comprehensive loss, net of provision for income taxes:
Foreign currency translation gain (loss)		63,832			(35,998	)
Comprehensive loss	$	(5,329,264	)	$	(2,957,323	)
Net Loss per Common Share
Basic and diluted		(0.86	)		(0.59	)
Weighted Average Number of Common Shares Outstanding
Basic and diluted		6,252,128			4,917,792

See accompanying notes to consolidated financial statements.

F-4

FIRST PERSON LTD.

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE YEAR ENDED DECEMBER 31, 2022

	Common Shares				Additional Paid-In		Accumulated			Accumulated Other Comprehensive			Total Shareholders’
	Shares		Amount		Capital		Deficit			Loss			Equity
Balance, December 31, 2021		5,804,254	$	4,357,943	$	195,501	$	(2,921,325	)	$	(35,998	)	$	1,596,121
Issuance of Common Shares, net of issuance costs of $7,565		196,400		974,435		-		-			-			974,435
Issuance of Common Shares, net of issuance costs of $70		178,100		890,430		-		-			-			890,430
Issuance of Common Shares – accounts payable conversion		10,000		50,000										50,000
Issuance of Common Shares, net of issuance costs of $4,547		162,600		808,453		-		-			-			808,453
Foreign currency translation adjustment gain, net of provision for income taxes		-		-		-		-			63,832			63,832
Share-based compensation related to grants of stock options		-		-		498,450		-			-			498,450
Net loss		-		-		-		(5,393,096	)		-			(5,393,096	)
Balance, December 31, 2022		6,351,354	$	7,081,261	$	693,951	$	(8,314,421	)	$	27,834		$	(511,375	)

See accompanying notes to consolidated financial statements.

F-5

FIRST PERSON LTD.

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE PERIOD FROM JANUARY 21, 2021 (DATE OF INCEPTION) THROUGH DECEMBER 31, 2021

	Common Shares				Additional Paid-In			Accumulated			Accumulated Other Comprehensive			Total Shareholders’
	Shares		Amount		Capital			Deficit			Loss			Equity
Balance, January 21, 2021 (date of inception)		-	$	-	$	-		$	-		$	-		$	-
Issuance of Common Shares in exchange for cash (Note 1)		2,800,000		90		-			-			-			90
Issuance of Common Shares as part of the Plan of Merger (Note 1)		1,000,000		359,505		(359,505	)		-			-			-
Issuance of Common Shares, net of issuance costs of $138,256		1,003,012		1,478,582		-			-			-			1,478,582
Issuance of Common Shares, net of issuance costs of $62,155		1,001,242		2,519,766		199,672			-			-			2,719,438
Share-based compensation related to grants of stock options		-		-		355,334			-			-			355,334
Foreign currency translation adjustment loss, net of provision for income taxes		-		-		-			-			(35,998	)		(35,998	)
Net loss		-		-		-			(2,921,325	)		-			(2,921,325	)
Balance, December 31, 2021		5,804,254	$	4,357,943	$	195,501		$	(2,921,325	)	$	(35,998	)	$	1,596,121

See accompanying notes to consolidated financial statements.

F-6

FIRST PERSON LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year Ended			January 21, 2021 (Inception) through
	December 31, 2022			December 31, 2021
Cash flows from operating activities:
Net loss	$	(5,393,096	)	$	(2,921,325	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		51,592			1,378
Amortization of right-of-use asset		57,762			14,523
Amortization of debt discount and issuance costs		77,071			-
Share based compensation		498,450			355,334
Change in operating assets and liabilities:
Accounts receivable		(55,063	)		-
Inventories		(915,163	)		(97,636	)
Prepaid expenses and other current assets		471,686			(539,592	)
Deferred offering cost		(591,752	)		(297,437	)
Deposits		(13,625	)		(3,178	)
Accounts payable		2,146,678			436,011
Accrued expenses and other current liabilities		161,263			116,825
Operating lease liability		(57,762	)		(14,523	)
Net cash used in operating activities		(3,561,959	)		(2,949,620	)
Cash flows from (used in) investing activities:
Purchases of property and equipment		(281,156	)		(11,024	)
Purchases of intangibles		-			(193,668	)
Purchases of construction-in-progress		-			(452,405	)
Asset acquisition of TruMed		(114,000	)		-
Cash used in investing activities		(395,156	)		(657,097	)
Cash flows from financing activities:
Proceeds from loans issued		1,230,200			-
Repayments of loans payable		(504,529	)		-
Issuance of 1,003,012 Common Shares, net of issuance costs of $138,256		-			1,478,582
Issuance of 1,001,242 Units, net of issuance costs of $62,155		-			2,719,438
Issuance of 196,400 Common Shares, net of issuance costs of $7,565		974,435			-
Issuance of 178,100 Common Shares, net of issuance costs of $70		890,430			-
Issuance of 162,600 Common Shares, net of issuance costs of $4,547		808,453			-
Net cash from financing activities		3,398,989			4,198,020
Effect of foreign currency exchange rate changes on cash		63,833			(32,145	)
Net change in cash		(494,293	)		559,158
Cash, beginning of period		559,158			-
Cash, end of period	$	64,865		$	559,158
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest	$	77,974		$	-
State income taxes	$	-		$	-
Supplemental disclosures of noncash financing activities:
Acquisition of plant, property, and equipment in exchange for prepaid expenses	$	60,000		$	-
Transfers from construction-in-progress to plant, property, and equipment	$	452,405		$	-
Financing of insurance premiums	$	225,000		$	-
Issuance of notes payable in exchange for acquisition of TruMed	$	70,000		$	-
Issuance of 2,800,000 Common Shares as part of the Plan of Merger (Note 1)	$	-		$	359,505
Right-of-use asset acquired through operating lease	$	109,365		$	172,974

See accompanying notes to consolidated financial statements

F-7

1. ORGANIZATION

Nature of Business LEIIO Wellness Ltd., First Person Ltd.’s (“First Person”) predecessor by name change, was incorporated on January 21, 2021 (date of inception) under the laws of the province of Alberta, Canada. First Person’s wholly owned subsidiary, LEIIO Inc., First Person, Inc.’s (“INC”) predecessor by name change, was incorporated the next day, on January 22, 2021, in the state of Delaware, United States. First Person and INC are hereby collectively referred to as the “Company.” The Company, headquartered in Alberta, Canada, is engaged in the business of formulation and distribution of wholesale food grade functional mushrooms as well as cognitive performance products focusing on the mental performance and wellness markets in the United States.

Since its inception, the Company has devoted substantially all of its efforts to business and product developments relating to the operations of the functional mushroom farm in Olympia, Washington, and to the development of its own proprietary formulations of cognitive performance products containing functional mushrooms. The Company’s activities are subject to significant risks and uncertainties.

First Person Formation On January 21, 2021, First Person issued 0.2 Common Shares at a purchase price of $0.05 each in Canadian Dollars (“CAD”). On February 3, 2021, First Person issued a total of 1,000,000 Common Shares of First Person to four individuals in exchange for consulting services whose total consideration amounted to CAD$162,500.

INC Formation On January 22, 2021, INC entered into share purchase agreements with four purchasers (collectively, “INC Purchasers”) to transfer a total of 9,000,000 common shares of INC (collectively, the “Purchased Shares”) to INC Purchasers. Each purchaser received an equal number of common shares and each common share was issued at a purchase price of $0.00001 per common share. The consideration paid for the Purchased Shares per purchaser was a combination of $22.50 in cash and the assignment to INC of certain intellectual property rights, pursuant to a technology assignment agreement. Immediately after, INC became wholly owned by INC Purchasers.

Plan of Merger On February 17, 2021, First Person entered into an agreement and plan of merger (the “Plan of Merger”). Pursuant to the Plan of Merger, a merger between INC and LEIIO Merger Sub, Inc., a Delaware corporation (“Merger Sub”) occurred. Immediately after the merger, INC became a wholly owned subsidiary of First Person and INC Purchasers obtained control of First Person, resulting in a reverse acquisition.

Pursuant to the Plan of Merger entered into between First Person, INC, and Merger Sub, the merger was completed in a series of transactions as follows:

● On February 17, 2021, Merger Sub was formed.

● On February 17, 2021, First Person subscribed for 100 common shares of Merger Sub for total consideration of $1. Immediately after, Merger Sub became a wholly owned subsidiary of First Person.

● Pursuant to the Plan of Merger, Merger Sub merged with and into INC, with INC continuing as the surviving corporation. The merger became effective upon filing of the certificate of merger with the Delaware Secretary of State (the “Effective Time”).

● Immediately prior to the Effective Time and by virtue of the merger, each share of INC issued and outstanding converted into 0.31111112 Common Shares of First Person (each, a “First Person Share”). The consideration in the merger consisted of 2,800,000 First Person Shares, with the first 700,000 First Person Shares and the next 2,100,000 First Person Shares issued at a price of CAD$0.05 and CAD$0.20 per First Person Share, respectively. The total consideration in the merger amounted to CAD$455,000 ($359,505 USD).

● By virtue of the merger, each share of Merger Sub issued and outstanding immediately prior to the Effective Time converted into one share of INC.

● Immediately after, INC became a wholly owned subsidiary of First Person.

F-8

Pursuant to the Plan of Merger, INC Purchasers, the accounting acquirer, became the majority shareholders of First Person. The transaction was accounted for as a reverse acquisition under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805-40, Reverse Acquisitions, since INC Purchasers obtained control of First Person. The transaction was not treated as a business combination.

Legal Entity Name On December 15, 2021, LEIIO Wellness Ltd. amended its articles under the laws of the province of Alberta, Canada, to change its legal entity name to “First Person Ltd.” On October 4, 2021, LEIIO Inc. amended its articles under the laws of the state of Delaware, United States, to change its legal entity name to “First Person, Inc.”

Acquisition of TruMed On February 15, 2022, the Company completed the acquisition of 100 percent of all outstanding shares of TruMed Limited (“TruMed”) in exchange for the aggregate consideration of $750,000, which consists of $130,000 of cash consideration, $70,000 payable pursuant to the terms of a promissory note, and $550,000 of contingent consideration payable upon TruMed achieving certain milestones. In conjunction with the acquisition of TruMed, the Company capitalized $197,562 to the acquired asset. Subsequent to December 31, 2022, the Company paid $35,000 as partial payment of the amount owed under the promissory note issued in connection with its acquisition of TruMed. The amended promissory note is due April 30, 2023, and has an interest rate of Bank of Canada prime rate plus two percent.

The determination of whether an acquisition qualifies as a business combination or an asset acquisition requires management’s use of judgment. An acquisition not meeting the accounting criteria to be accounted for as a business combination is accounted for as an asset acquisition. The acquisition of TruMed was accounted for as an asset acquisition at its purchase price, inclusive of acquisition costs, which was allocated to the acquired assets based upon its fair value at the date of acquisition. There was no liability assumed as a result of the acquisition. In accordance with ASC 450, Contingencies, contingent consideration is generally recognized when the contingency is resolved. As of December 31, 2022, management has determined the contingent consideration is not both probable and reasonably estimable.

2. GOING CONCERN AND MANAGEMENT’S PLAN

The Company has not yet achieved profitability and expects to continue to incur cash outflows from operations. It is expected that its operating expenses will continue to increase and, as a result, the Company will eventually need to generate significant revenues to achieve profitability. These conditions indicate that there is substantial doubt about the Company’s ability to continue as a going concern.

Although the Company’s management believes that it has access to capital resources, there are currently no commitments in place for new financing at this time and there is no assurance that the Company will be able to obtain funds on commercially acceptable terms, if at all. If the Company is unable to obtain adequate funds on reasonable terms, it may be required to significantly curtail or discontinue operations or obtain funds by entering into financing agreements on unattractive terms. The Company’s operating needs include the planned costs to operate its business, including amounts required to fund working capital and capital expenditures.

These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) for the year ended December 31, 2022, and the period from January 21, 2021 (date of inception), through December 31, 2021 (“the period ended December 31, 2021”), which contemplate continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustment that might become necessary should the Company be unable to continue as a going concern.

F-9

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Method of Accounting The Company maintains its accounting records under the accrual method of accounting in conformity with US GAAP, where revenues and expenses are recorded as earned and incurred, respectively.

Principles of Consolidation The accompanying consolidated financial statements include the accounts of First Person and INC. All significant intercompany balances and transactions have been eliminated upon consolidation.

Foreign Currency In accordance with FASB ASC Topic 830, Foreign Currency Matters, the Company has determined the functional currency of First Person is the Canadian dollar. The Company translates the financial statements of First Person to U.S. dollars using month-end exchange rates for assets and liabilities, and average exchange rates for revenues and expenses. Translation gains and losses are recorded in accumulated other comprehensive loss as a component of shareholders’ equity.

Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, certain disclosures at the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates affecting the consolidated financial statements have been prepared on the basis of the most current and best available information. Significant items subject to such estimates and assumptions include grant date fair values of equity awards and valuation allowance for deferred income taxes. However, actual results from the resolution of such estimates and assumptions may vary from those used in the preparation of the consolidated financial statements.

Cash and Cash Equivalents The Company considers all short-term, highly liquid, unrestricted investments with original maturities of three months or less, to be cash equivalents.

Inventory Inventory consists of raw materials such as inputs for functional mushroom, packaging materials, and finished goods inventory, which were the Company’s three direct-to-consumer products: Sunbeam^TM, Golden Hour^TM, and Moonlight^TM that are stated at the lower of cost or net realizable value. Net realizable value is determined based on the estimated selling price less reasonably predictable cost of completion, disposal, and transportation. The Company values inventory on a FIFO basis depleting inventory in the order in which it was received. The Company evaluates the need for inventory reserves associated with obsolete, slow-moving, and non-sellable inventory by reviewing estimated net realized values on a periodic basis. As of December 31, 2022, the Company did not have a reserve for obsolescence.

Financial Instruments and Concentrations of Business and Credit Risk Financial instruments that potentially subject the Company to concentrations of business and credit risks consist of cash and cash equivalents.

The Company maintains cash balances that can, at times, exceed amounts insured by the Federal Deposit Insurance Corporation. The Company has not experienced any losses in these accounts and believes it is not exposed to any significant credit risk in this area.

Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization expense is calculated using the straight-line method over the estimated useful lives of the related assets, which is approximately five years for computer equipment.

Betterments, renewals, and extraordinary repairs that materially extend the useful life of the asset are capitalized; other repairs and maintenance charges are expensed as incurred. The cost and related accumulated depreciation or amortization applicable to assets retired are removed from the accounts and the gain or loss on disposition, if any, is recognized in the accompanying consolidated statement of operations and comprehensive loss.

Impairment of Long-Lived Assets In accordance with FASB ASC Topic 360, Property, Plant, and Equipment, long-lived assets such as property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is recognized on long-lived assets when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of the assets. In such cases, the carrying value of these assets are adjusted to their estimated fair value and assets held for sale are adjusted to their estimated fair value less estimated selling expenses.

F-10

No impairment losses of long-lived assets were recognized for the period ended December 31, 2021, and the year ended December 31, 2022.

Website Development Costs The Company recognizes website development costs in accordance with ASC 350-50, Accounting for Website Development Costs. As such, the Company expenses all costs incurred that relate to the planning and post implementation phases of development of its website. Direct costs incurred in the development phase are capitalized and recognized over the estimated useful life (see Note 8). Costs associated with operating the website are expensed as incurred.

Advertising Advertising costs are expensed as incurred. Advertising expenses for the year ended December 31, 2022, and the period ended December 31, 2021, amounted to $2,312,451 and $24,337, respectively, and are included in selling, general and administrative expenses on the accompanying consolidated statement of operations and comprehensive loss.

Income Taxes The Company accounts for income taxes under FASB ASC Topic 740, Accounting for Income Taxes. As part of the process of preparing the consolidated financial statements, the Company is required to estimate an income tax provision (benefit) in each of the jurisdictions in which it operates. This process involves estimating the current income tax provision (benefit) together with assessing temporary differences resulting from differing items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within the consolidated balance sheets. The Company provides a valuation allowance against its deferred tax assets when circumstances indicate that it will, more likely than not, no longer be realized.

INC accounts for income taxes in accordance with FASB ASC 740-10, Accounting for Uncertainty in Income Taxes (“ASC 740-10”). The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain tax position will not be recognized if it has less than 50 percent likelihood of being sustained.

INC is a Delaware C corporation and is subject to taxation and files income tax returns in the United States. Since inception, INC tax returns are subject to examination by taxing authorities, and no examinations are currently pending.

As of December 31, 2021, INC does not have any unrecognized tax benefits. INC does not anticipate any material changes to its unrecognized tax benefits within the next twelve months.

On December 27, 2020, the United States enacted the Consolidated Appropriations Act which extended many of the benefits of the CARES Act that were scheduled to expire. The Company is evaluating the impact of the Consolidated Appropriations Act on its consolidated financial statements and related disclosures.

Lease Accounting In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02” or “ASC 842”). ASC 842 establishes a right-of-use (ROU) model that requires a lessee to record an ROU asset and a lease liability, measured on a discounted basis, on the balance sheets for all leases with terms greater than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statements of income. Effective January 21, 2021 (date of inception), the Company adopted ASC 842 for all leases existing at the date of adoption. The Company has made an accounting policy election to not recognize right of use assets or lease liabilities for leases with an initial term of twelve months or less, and recognizes the related expense in the accompanying consolidated statement of operations and comprehensive loss on a straight-line basis over the lease term.

F-11

Under ASC 842, the Company determines if an arrangement is a lease at inception. If an arrangement contains a lease, an operating or finance ROU asset and obligation are recognized at the commencement date based on the present value of lease payments over the lease term. That ROU asset and obligation represent the Company’s right to use an underlying asset for the lease term and the Company’s obligation to make lease payments arising from the lease, respectively. The ROU asset recorded includes any prepaid lease payments made and excludes lease incentives received. The Company’s lease terms include options to extend the lease for a total of two renewal periods with each term being two years which may be exercised by giving written notice to lessor no less than sixty days prior to the expiration of the current lease or renewal period. The lease renewal terms were recognized as part of the Company’s ROU assets and lease liabilities.

Lease expense for lease payments and amortization expense for the ROU assets are recognized on a straight-line basis over the lease term and are included in selling, general and administrative expenses in the accompanying statement of operations and comprehensive loss.

There was no impact of adopting FASB ASC 842 on the accompanying statements of changes in shareholders’ equity as of January 21, 2021 (date of inception).

Share-based Compensation In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) – Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). The amendments in ASU 2018-07 expand the scope of FASB ASC 718, Compensation – Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. Upon adoption, entities shall be required to apply FASB ASC 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. FASB ASU 2018-07 is effective for private entities for fiscal years beginning after December 15, 2019, with early adoption permitted, but no earlier than an entity’s adoption date of FASB ASC 606, Revenue from Contracts with Customers (“ASC 606”). The Company adopted FASB ASC 2018-07 effective January 21, 2021 (date of inception). In accordance with ASU 2018-07, the Company records its share-based payments at the estimated grant date fair value over the service period for equity-classified awards granted to nonemployees in the same period and in the same manner as if the Company paid cash for the goods or services. In addition, the Company has elected to account for forfeitures when they occur in accordance with FASB ASC 718-10-35-3. The calculation of expected term is based on the “simplified” method described in Staff Accounting Bulletin (“SAB”) Topic 14, Share-Based Payment. SAB Topic 14 provides a simplified method for estimating the expected term for “plain vanilla” options if a company does not have sufficient appropriate exercise data on which to base its own estimate or exercise data relating to employees of comparable companies is not easily obtainable. The risk-free interest rate is based on the U.S. Treasury yield at the date of grant for an instrument with a maturity that is commensurate with the expected term of the stock options. The dividend yield is zero since the Company has never paid cash dividends on its common shares and has no present intention to pay cash dividends. Options granted under the Company’s Equity Incentive Plan generally vest generally vest based on three years of continuous service and have five-year contractual terms (see Note 12).

Revenue Recognition The Company recognizes revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company’s revenue consists exclusively of its direct-to-consumer sales of cognitive supplements sold primarily throughout the United States.

In order to recognize revenue under FASB ASU 2014-09, the Company applies the following five steps:

● Identification of customer contracts;

● Identification of the performance obligation(s) in the contract to transfer goods or provide services to a customer;

● Determination of the transaction price the Company expects to be entitled to in exchange for transferring promised goods or services to a customer;

● Allocation of the transaction price to the performance obligation(s) in the contract; and

● Recognition of revenue when or as the Company satisfies the performance obligation(s).

F-12

The Company’s contracts with customers for the cognitive supplements and other related products consist of single performance obligations. The performance obligation in a contract is determined based on each individual order and the respective quantities shipped, with revenue being recognized at a point in time when obligations under the terms of the agreement are satisfied. This generally occurs with the transfer of control when the product is shipped to the customer.

The amount of revenue recognized is reduced for estimated returns and other customer credits, such as discounts and rebates, based on the expected value to be realized. Payment terms are consistent with terms standard to the markets the Company serves.

The Company recognizes revenue when our inventory is shipped to our customers. We recognize revenue gross of amounts payable to our third-party co-packers and other third-party suppliers for the following reasons. First, we bear primary responsibility for fulfilling our performance obligations and for the acceptability of our product. Our customers purchase goods from our website, which bears the Company’s name, and agree to our terms and conditions. Our customers do not enter into separate contracts with any of our third-party suppliers. Second, we bear inventory risk, as we purchase and store our inventory prior to shipping it to customers, and are subject to risk of loss if the inventory is damaged or becomes obsolete. Third, we have discretion in establishing prices charged to our customers, as we determine the price at which our products are offered to customers on our website, independently of prices charged by our third-party suppliers.

Revenue received from shipping and handling fees is reflected in net sales. The Company has elected to classify shipping and handling costs in selling, general and administrative expenses and recognizes them at the time revenue is recognized for the related goods. The Company has also elected to recognize revenue net of sales taxes and similar taxes that are imposed on and concurrent with revenue producing activities. The Company has elected to use the practical expedient for significant financing components allowed under ASU 2014-09, such that if the period between revenue recognition and cash receipt for a particular contract is expected to be a year or less, no interest income is recognized and the full amount of revenue appropriate under the contract is recognized at the time the performance obligation is met.

Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13 Topic 326, Financial Instruments - Credit Losses (“ASU 2016-13”), which in conjunction with subsequent amendments issued by FASB amends the FASB’s guidance on the impairment of financial instruments. The ASU adds to US GAAP an impairment model (known as the “current expected credit loss model”) that is based on expected losses rather than incurred losses. For public companies, ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2021. In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326): Effective Date for Certain Entities (“ASU 2019-10”). The amendments of ASU 2019-10 defer the effective date of ASU 2016-13 for certain entities by one year. Private companies should apply the guidance in ASU 2016-13 to annual reporting periods beginning after December 15, 2022. Early adoption is permitted. The Company is currently in the process of evaluating the potential impact of this new accounting guidance, which is effective for the Company beginning on January 1, 2023, although early adoption is permitted.

4. INVENTORIES

A summary of inventories is as follows:

As of:	December 31, 2022		December 31, 2021
Raw materials	$	176,440	$	97,636
Work in process		-		-
Finished goods		836,359		-
Inventory	$	1,012,799	$	97,636

As of December 31, 2022 and 2021, inventory consisted of raw materials, which were functional mushrooms produced from the Company’s farm operations, located in Olympia, Washington, to be used in the production of its cognitive performance products. In addition, as of December 31, 2022, inventory consisted of finished goods inventory, which were the Company’s three direct-to-consumer products: Sunbeam^TM, Golden Hour^TM, and Moonlight^TM as well as packaging materials. Inventory is recognized at the lower of cost or net realizable value. Net realizable value is determined based on the estimated selling price less reasonably predictable cost of completion, disposal, and transportation.

F-13

5. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist of the following:

As of:	December 31, 2022		December 31, 2021
Prepaid expenses and deposits	$	238,467	$	304,127
Prepaid expenses, other		-		2,569
Prepaid expenses, production deposit		-		188,385
Prepaid expenses, rent deposit		-		15,125
Other current assets		-		29,386
Prepaid expenses and other current assets	$	238,467	$	539,592

As of December 31, 2022 and 2021, prepaid expenses and other current assets primarily consist of prepayments related to insurance premiums, office space rent, and other miscellaneous items.

6. PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

As of:	December 31, 2022			December 31, 2021
Facility	$	576,309		$	-
Equipment		404,789			-
Computer equipment		10,776			10,962
Less: accumulated depreciation		(3,492	)		(1,367	)
Property and equipment, net	$	988,382		$	9,595

Depreciation expense related to property and equipment amounted to $2,182 (2021 - $1,367) for the year ended December 31, 2022.

The Company used its greenhouses in Olympia, Washington in a limited capacity during the year ended December 31, 2022, but they were not ready for full-scale production until approximately December 31, 2022. As such, the Company reclassified the facility from construction-in-progress to property and equipment as of December 31, 2022, but did not recognize any depreciation expense related to the facility during the year ended December 31, 2022, and period ended December 31, 2021.

7. CONSTRUCTION-IN-PROGRESS

Construction-in-progress consist of the following:

As of:	December 31, 2022		December 31, 2021
Greenhouse costs	$	-	$	452,405

The Company’s greenhouses in Olympia, Washington that will be used to grow functional mushrooms were substantially finished as of December 31, 2022. As such, the associated costs were transferred to property and equipment at the end of 2022.

F-14

8. INTANGIBLE ASSETS

Intangible assets consist of the following:

As of:	December 31, 2022			December 31, 2021
Website development costs	$	178,918		$	189,956
Less: accumulated amortization		(47,342	)		-
Intangible assets, net	$	131,576		$	189,956

As of December 31, 2022, the Company has completed the development and design of its website. As such, the Company recognized amortization expense of $49,411 related to its website development costs for the year ended December 31, 2022. There was no amortization expense recognized during the period ended December 31, 2021.

9. LOANS AND NOTE PAYABLE

Loans and notes payable consist of the following:

As of:	December 31, 2022		December 31, 2021
Line of credit	$	134,210	$	-
Merchant loan		319,742		-
Revenue purchase agreement		164,636		-
Bridge loan		184,154		-
Insurance financing		225,000		-
TruMed acquisition note payable (Note 1)		70,000		-
Loans and note payable, net	$	1,097,742	$	-

On August 8, 2022, the Company entered into a line of credit agreement (“line of credit”) for a maximum draw amount of $200,000 with Celtic Bank Corporation (“Celtic”). The Company has drawn an initial $200,000, which is subject to a draw fee of 3%, an interest rate of 1.93% per month, and will be repaid over twelve monthly installments. In connection with the Company entering into the line of credit agreement, Cory J. Rosenberg, the Company’s Chairman, Chief Executive Officer, and President, entered into a Guaranty, dated August 8, 2022, pursuant to which he guarantees to Celtic the performance of all of the Company’s obligations to Celtic. As of December 31, 2022, the carrying value of the line of credit was $134,210.

On August 8, 2022, the Company entered into a merchant loan agreement with WebBank (“merchant loan”), on behalf of Shopify Inc., for proceeds of $250,000 and a repayment amount of $282,500 (cost of borrowing of $32,500). The repayments are made to Shopify Inc. at a rate of 12% of the Company’s daily sales amounts until the repayment amount has been fully settled. On November 8, 2022, the Company received additional proceeds of $355,000, for which the repayment amount is $401,150 (cost of borrowing of $46,150). The repayments for the additional proceeds are made to Shopify Inc. at a rate of 15% of the Company’s daily sales amounts until the repayment amount has fully been settled. As of December 31, 2022, the carrying value of the merchant loan was $319,742.

On October 8, 2022, the Company entered into a revenue purchase agreement whereby Pearl Beta Funding, LLC (“Pearl”) provided the Company with cash proceeds of $245,000. The terms require that the Company make weekly payments of $8,208 (which amount may be periodically adjusted to approximate 10% of sales) until a total of $328,300 has been repaid. In connection with the Company entering into the revenue purchase agreement, Cory J. Rosenberg, the Company’s Chairman, Chief Executive Officer, and President, entered into a Guaranty of Performance, pursuant to which he guarantees to Pearl the performance of all of the representations, warranties, and covenants made by the Company in the revenue purchase agreement. As of December 31, 2022, the carrying value of the revenue purchase agreement was $164,636.

F-15

On December 20, 2022, the Company entered into a bridge loan with Cloudfund LLC for cash proceeds of $200,000. The repayments will be made through daily payments of $2,092 until the total $272,000 loan is repaid. As of December 31, 2022, the carrying value of the bridge loan was $184,154.

On December 31, 2022, the Company entered into a loan agreement with Imperial PFS Canada for financing of its insurance policy. The repayments will be made through nine monthly payments of $20,736. As of December 31, 2022, the carrying value of the insurance financing was $225,000.

10. COMMITMENTS AND CONTINGENCIES

Leases The Company leases certain office facilities. Certain leases provide the Company with the option to renew for additional periods. The exercise of lease renewal options is at the Company’s sole discretion, and the Company has only included renewal options in the lease term when the Company can be reasonably certain that it will exercise the renewal options.

For the year ended December 31, 2022, and the period ended December 31, 2021, the components of lease expenses were recognized as selling, general and administrative expenses in the consolidated statement of operations and comprehensive loss. The lease payments were paid in cash.

	Year Ended December 31, 2022		Period Ended December 31, 2021
Operating lease costs	$	128,983	$	25,424

The weighted-average remaining lease term for the Company’s operating leases ranges from approximately three to four years as of December 31, 2022. The weighted-average discount rate for the Company’s operating lease was 10% as of December 31, 2022.

As of December 31, 2022, the Company has no operating or financing leases that have not yet commenced.

The future maturities of the contractual lease payments included in the operating lease liabilities as of December 31, 2022, are as follows:

For the Year Ended December 31, 2022:	Total
2023	$	80,313
2024		66,254
2025		38,136
2026		38,136
2027		9,534
Total		232,373
Less: amount representing interest		(35,793	)
Total	$	196,580

Litigation The Company is subject to certain legal proceedings and claims that arise in the normal course of business. The Company does not believe that the amount of liability, if any, as a result of these proceedings and claims will have a materially adverse effect on the Company’s financial position, results of operations, and cash flows.

In the past 24 months several of the Company’s representatives have been part of interviews that were recorded on podcasts or in articles discussing their own experiences and the Company. The interviews were directed at persons interested in health, wellness, spirituality and the potential benefits of products the Company sells or expects to sell. The interviews were not directed at prospective investors and made no mention of a possible initial public offering by the Company.

To the extent that certain statements in the podcasts and articles may have violated Section 5 and were inaccurate, unsubstantiated, misleading, or contradicted disclosures in the prospectus, those statements have now been specifically set forth in Exhibit 99.1 to the registration statement, the problem with each of those statements has been identified and such statements have been specifically and thoroughly corrected, refuted or contradicted, as applicable. The prospectus now sets forth the correct information for any investor who might have otherwise relied on statements contained in the podcasts or articles. Likewise, misstatements contained in an online article were identified and clarified in the prospectus and in the Company’s Free Writing Prospectus, which was filed with the SEC on September 26, 2022. Courts have held that, in general, buyers are charged as a matter of law with having reviewed the prospectus. Furthermore, the Company intends to vigorously defend any rescission claims by purchasers.

In view of the foregoing factors and analysis, the Company concluded that the likelihood of experiencing a material loss in connection with potential rescission claims is not probable. The Company acknowledges, however, that a contingent liability arising from the rescission rights of investors who purchase shares in this offering (including investors who purchase shares from the selling shareholders), is reasonably possible. Therefore, pursuant to ASC 450-20, the Company is required to disclose the nature of the contingency and an estimate of the possible range of loss (or state the fact that an estimate cannot be made), but is not required to accrue a contingent liability in connection with such potential rescission claims. An estimated range of loss from this contingent liability cannot be reasonably made given that the offering has not yet occurred and there’s been no indication that any of the potential purchasers would in fact file suit claiming rescission and succeed.

F-16

11. SHAREHOLDERS’ EQUITY

Preferred Shares The Company’s certificate of incorporation authorizes the issuance of an unlimited number of Preferred Shares, without nominal or par value. Holders of Preferred Shares are entitled to receive dividends, if and when declared by the Company, and to share ratably in the Company’s assets legally available for distribution to shareholders in the event of liquidation. As of December 31, 2022, there were no Preferred Shares issued and outstanding.

Preferred Share Dividends The holders of Preferred Shares are entitled to receive dividends when and if declared by the Company. The dividends are cumulative and as of December 31, 2022, there were no undeclared accumulated preferred share dividends.

Preferred Share Liquidation In the event of any liquidation, dissolution or winding-up of the Company, the holders of Preferred Shares are entitled to preference over holders of Common Share or any other shares of the Company ranking by their terms junior to the Preferred Shares with respect to payment of dividends and the distribution of assets or return of capital.

Preferred Share Voting Rights No holder of Preferred Shares shall be entitled to vote on any matter submitted to a vote of shareholders.

Common Shares The Company’s certificate of incorporation authorizes the issuance of an unlimited number of Common Shares, without nominal or par value. As of December 31, 2022, there were 6,351,354 Common Shares issued and outstanding.

Common Voting Rights Each shareholder of Common Shares shall be entitled to one vote for each share of Common Shares held at all meetings of the Company’s shareholders. Holders of Common Shares are entitled to receive dividends, if and when declared by the Company, and to receive the remaining property of the Company upon dissolution.

On March 4, 2021, the Company issued 1,003,012 Common Shares of First Person at a price of CAD$2.00 per share for aggregate gross proceeds of CAD$2,006,022 ($1,616,838 USD).

On July 14, 2021, the Company issued 1,001,242 Units of First Person at a price of CAD$3.50 per Unit for aggregate gross proceeds of CAD$3,504,346 ($2,781,593 USD). Each Unit consists of one Common Share and one half of one warrant (“Warrant”). The issuance resulted in 500,620 Warrants. Each Warrant entitles the holder to acquire one Common Share upon payment of the exercise price prior to the expiration time.

On February 2, 2022, the Company issued 196,400 Common Shares of First Person at a price of $5.00 per share for aggregate gross proceeds of $982,000.

On March 4, 2022, the Company issued 178,100 Common Shares of First Person at a price of $5.00 per share for aggregate gross proceeds of $890,500. In addition, the Company issued 10,000 Common Shares of First Person for the conversion of accounts payable in the amount of $50,000.

On April 20, 2022, the Company issued 162,600 Common Shares for gross proceeds of $813,000.

On April 21, 2022, the Company effected a consolidation (the “Consolidation”) of all outstanding Common Shares, as approved by the Company’s shareholders at a meeting of the shareholders held on December 15, 2021, with a consolidation ratio of one post-Consolidation Common Share for every ten pre-Consolidation Common Shares outstanding prior to the effective date of the Consolidation. As a result of the Consolidation, each ten pre-Consolidation Common Shares outstanding prior to the effective date of the Consolidation were automatically consolidated into one post-Consolidation Common Share without any action on the part of the holders, and the number of outstanding Common Shares was reduced from 63,513,530 Common Shares to 6,351,354 Common Shares.

F-17

Equity Incentive Plan On March 31, 2021, the Company adopted an equity compensation plan (the “Plan”) pursuant to which the Company’s Board of Directors may grant awards, including stock options, restricted stock, restricted stock units, stock appreciation rights, performance awards, and other stock-based awards, to certain directors, officers, employees, or consultants of the Company. The Plan authorizes grants consisting of the Company’s authorized but unissued Common Shares.

The maximum number of Common Shares reserved for issuance under the Plan shall not exceed 10% of the then issued and outstanding Common Shares on a rolling basis. Common Shares available under the Plan may be used for options or any other awards. The terms and conditions of an award granted would be set forth in an award agreement on an individual basis approved by the Company’s Board of Directors. Vesting and exercise of awards would be conditioned upon reasonable conditions such as term of employment (“Time Options”). Time Options generally vest based on three years of continuous service and have five-year contractual terms.

For grants for which vesting is deemed probable, the Company recognizes stock-based compensation expense pro-rata over the vesting period for each non-employee option agreement.

The Company accounts for any forfeitures of options when they occur. In addition, previously recognized stock-based compensation expense for a non-vested award is reversed in the period that the award is forfeited.

On March 22, 2022, the Company adopted a long term incentive plan (“LTIP”), pursuant to which the Board of Directors may, from time to time, create and issue incentive stock options to directors, officers, employees, and consultants of the Company.

Time Options

As of December 31, 2022, 350,883 Time Options had vested under the Plan.

The Company estimated the fair value of each stock option award on the date of grant using a Black-Scholes option-pricing model based on the following weighted average assumptions applied:

	Year ended December 31, 2022			Period ended December 31, 2021
Risk-free interest rate		2.67	%		0.09% - 0.56	%
Expected term		3.5 years			2.5 - 3.5 years
Expected average stock price volatility		183.1	%		106.8% -120.9	%
Expected dividend yield		0.00	%		0.00	%
Weighted average grant-date fair value of stock options	$	4.58		$	1.36 - $1.87

A summary of option activity for the year ended December 31, 2022 is presented below. There was no option activity for the period ended December 31, 2021.

					Weighted
					Average
			Weighted		Remaining
			Average		Contractual
	Number of		Exercise		Term		Intrinsic
	Options		Price		(in Years)		Value
Balance, December 31, 2021		475,000	$	1.90		4.41	$	288,788
Granted		140,000		5.00				-
Exercised		-		-		-		-
Forfeited		-		-		-		-
Expired		-		-
Balance, December 31, 2022		615,000	$	2.59		3.61	$	1,480,457

F-18

A summary of unvested options for the year ended December 31, 2022, is presented below:

				Weighted
				Average Grant
	Number of			Date Fair Value
	Options			Per Share
Unvested balance, December 31, 2021		292,500		$	1.80
Granted		140,000			5.00
Vested		(155,000	)		1.76
Forfeited or expired		-			-
Exercised		-			-
Unvested balance, December 31, 2022		277,500		$	3.44

The Company recognized $498,450 (2021 - $355,334) of share-based compensation expense for the year ended December 31, 2022, which is included in selling, general and administrative expenses in the consolidated statement of operations and comprehensive loss. As of December 31, 2022, $583,913 of unrecognized compensation expense remained under the Plan related to unvested Time Options.

Warrants On July 14, 2021, the Company issued 1,001,242 Units of First Person at a price of CAD $3.50 per Unit for aggregate gross proceeds of up to CAD$3,504,346. Each Unit consists of one Common Share and one half of one (“Warrant”). The issuance resulted in 500,620 Warrants. Each Warrant entitles the holder to acquire one Common Share upon payment of the exercise price prior to the expiration time.

The Company used the following approximate assumptions in connection with its estimation of fair value of Warrants:

For the Year Ended December 31, 2021:
Expected term (years)	2.00
Expected volatility	91.05	%
Risk free interest rate	0.23	%
Expected dividends	0.00	%

A summary of the warrant activity during the period from January 21, 2021 (date of inception) through December 31, 2022 is presented below:

					Weighted
			Weighted		Average
			Average		Remaining
	Number of		Exercise		Life
	Warrants		Price		(in Years)
Balance, January 21, 2021		-	$	-		-
Issued		500,620		4.00		-
Exercised		-		-		-
Forfeited or expired		-		-		-
Balance, December 31, 2021		500,620	$	4.00		0.7
Issued		-		-		-
Exercised		-		-		-
Forfeited or expired		-		-		-
Balance, December 31, 2022		500,620	$	4.00		0.7

The following table presents information related to warrants as of December 31, 2022:

	Warrants Outstanding				Warrants Exercisable
					Weighted
					Average
			Outstanding		Remaining		Exercisable
	Exercise		Number of		Life in		Number of
	Price		Warrants		Years		Warrants
Balance, December 31, 2022	$	4.00		5,006,204		0.7		5,006,204

F-19

12. INCOME TAXES

Pre-tax book losses for domestic (Canada) and foreign (the U.S.) jurisdictions are as follows:

	Year ended		Period ended
	December 31, 2022		December 31, 2021
Domestic	$	1,991,286	$	1,295,736
Foreign	$	3,401,146	$	1,625,589

The provision for income taxes is as follows:

	Year ended		Period ended
	December 31, 2022		December 31, 2021
Current:
US Federal	$	-	$	-
Canada		-		-
Total current		-		-
Deferred:
US Federal		-		-
Canada		-		-
Total deferred		-		-
Provision for income taxes	$	-	$	-

Deferred income taxes are to be recognized on the expected future tax consequences of temporary differences between book and tax bases of assets and liabilities.

The reconciliation of the expected federal statutory income tax rate to the effective income tax rate is as follows:

	Year ended			Period ended
	December 31, 2022			December 31, 2021
Canadian statutory income tax rate		23.00	%		23.00	%
US state income taxes		3.15	%		-
Prior period adjustments		(0.16	)%		-
Entertainment		(0.01	)%		(0.03	)%
US federal rate differential		(1.26	)%		(1.11	)%
Valuation allowance		(22.60	)%		(19.06	)%
Stock-based compensation		(2.12	)%		(2.80	)%
Total		0.00	%		0.00	%

In 2022 and 2021, the Canadian corporate statutory rate of 23% is being used due to the reporting entity being domiciled in Canada.  In 2022 and 2021, the difference between the statutory and effective tax rate is due primarily to the application of a full valuation allowance against the deferred tax assets, Canadian stock-based compensation treatment, and income tax rate differences between Canadian and US jurisdictions.   

F-20

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows:

As of December 31,	2022			2021
Deferred tax assets:
Start-up costs	$	149,746		$	228,309
Net operating loss		1,734,528			329,133
Total deferred tax assets		1,884,274			557,443
Deferred tax liabilities:
Acquisition costs		(7,961	)		-
Depreciation expense		(26,181	)		-
Total deferred tax liabilities:		(34,142	)		-
Less: valuation allowance		(1,850,132	)		(557,443	)
Net deferred taxes	$	-		$	-

As of December 31, 2022, $4,429,438 (2021 - $534,091) of U.S. federal net operating losses, $4,429,438 of U.S. state net operating losses, and $2,534,234 (2021 - $943,365) of Canadian net operating losses were available to the Company to offset future taxable income. The U.S. federal net operating losses will carryforward indefinitely and the Canadian net operating losses shall begin to expire in 2041. The U.S. state net operating losses generally start expiring in 20 years.

The Company may recognize the tax benefits from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of December 31, 2022 and 2021, the Company did not identify any uncertain tax positions that have a more likely than not chance of not being sustained upon examination by the tax authorities.

The Company has a December 31 tax year-end. The U.S. federal, U.S. state and Canadian income tax returns of the Company are subject to examination by various tax authorities, generally for three years after they are filed.

13. RELATED PARTIES

During the year and period ended December 31, 2022, the Company incurred approximately $1.6 million of expenses related to digital advertising and other business expenses that were paid by employees on the Company’s behalf and subject to expense reporting and reimbursement. As of December 31, 2022, related party balances owed for such arrangements totaled $686,476. Primary items included the following:

● $643,407 due to Cory Rosenberg for digital advertising expenses including Meta, Google, and TikTok;

● $29,435 due to Andrew Roda for digital advertising expenses including Meta, Google, and TikTok;

● $1,278 due to the remaining First Person, Inc employees for regular course of business expenses incurred by the employees and invoiced for reimbursement during monthly expense reporting; and

● $12,356 due to Darcy Campbell for regular business expenses and company costs incurred by employee to be reimbursed during monthly expense reporting.

During the year ended December 31, 2021, the Company loaned $50,500 to related parties, all of which had been repaid as of December 31, 2021. The related parties were two of the four INC Purchasers (see Note 1).

14. SUBSEQUENT EVENTS

The Company has evaluated subsequent events that have occurred from December 31, 2022, through the date that these consolidated financial statements were issued, and determined that there were no subsequent events or transactions that required recognition or disclosure in the consolidated financial statements, except as described below.

On January 3, 2023, the Company closed a non-brokered private placement of convertible secured promissory notes in the aggregate principal amount of $764,130 and 764,124 Preferred Shares, Series 1 to accredited investors for gross proceeds of approximately $703,000. This private placement included the issuance of a convertible secured promissory note in the principal amount of $271,739 and 271,739 Series 1 Shares to Cory J. Rosenberg, the Company’s Chairman, Chief Executive Officer, and President, in exchange for $250,000.

On January 9, 2023, the Company closed a non-brokered private placement of convertible secured promissory notes in the aggregate principal amount of $616,304 and 616,303 Preferred Shares, Series 1 to accredited investors for gross proceeds of approximately $567,000. This private placement included the issuance of a convertible secured promissory note in the principal amount of $100,000 and 100,000 Series 1 Shares to Darcy A. Campbell, the Company’s Chief Financial Officer, in exchange for $92,000.

On January 10, 2023, the Company paid $35,000 as partial payment of the amount owed under the promissory note issued in connection with its acquisition of TruMed (Note 1) from its shareholders (the “TruMed Sellers”), and the Company and the TruMed Sellers amended the promissory note to provide for a new principal amount of $37,868, which shall be payable on or before the earlier of (i) April 30, 2023 and (ii) the date on which the Company completes an initial public offering of securities on a “designated exchange” within the meaning of Canadian securities legislation.

On February 6, 2023, the Company closed a non-brokered private placement of convertible secured promissory notes in the aggregate principal amount of $368,543 and 368,543 Preferred Shares, Series 1 to accredited investors for gross proceeds of approximately $339,060.

On March 31, 2023, the Company closed a non-brokered private placement of convertible secured promissory notes in the aggregate principal amount of $1,350,000 and 1,350,001 Preferred Shares, Series 1 to accredited investors for gross proceeds of approximately $1,242,000.

On April 28, 2023, the Company paid to the TruMed Sellers the remaining $37,868, plus accrued interest, of the promissory note related to the TruMed acquisition.

(Unaudited)

On May 18, 2023, the Company entered into a merchant loan agreement with WebBank, on behalf of Shopify Inc., for proceeds of $410,000 and a repayment amount of $451,000 (cost of borrowing $41,000). The repayments are made to Shopify Inc. at a rate of 17% of the Company’s daily sales amounts until the repayment amount has been fully settled.

On June 8, 2023, the Company entered into a merchant loan agreement with Fundonatic, for proceeds of $225,000 and a repayment amount of $292,500 (cost of borrowing $67,500). Daily repayments in the amount of $1,950 are made to Fundonatic.

On June 8, 2023, the Company entered into a merchant loan agreement with Click Capital Group LLC, for proceeds of $225,000 and a repayment amount of $292,500 (cost of borrowing $67,500). Daily repayments in the amount of $1,950 are made to Click Capital Group LLC.

On June 28, 2023 the Company extended the expiry date on the 500,620 warrants from July 14, 2023 to January 14, 2024.

On July 19, 2023, the Company entered into a merchant loan agreement with Cloudfund LLC, for proceeds of $199,774 and a repayment amount of $276,040 (cost of borrowing $76,266). The repayments are made to Cloudfund LLC at a rate of 4% of the Company’s daily receipts for the sale of goods and services until the repayment amount has been fully settled.

On July 21, 2023, the Company entered into a merchant loan agreement with WebBank, on behalf of Shopify Inc., for proceeds of $260,000 and a repayment amount of $283,400 (cost of borrowing $23,400). The repayments are made to Shopify Inc. at a rate of 17% of the Company’s daily sales amounts until the repayment amount has been fully settled.

On August 31, 2023, the Company entered into a merchant loan agreement with Curve Capital LLC, for proceeds of $225,000 and a repayment amount of $306,000 (cost of borrowing $81,000). The repayments are made to Curve Capital LLC at a rate of 6.12% of the Company’s daily receivables until the repayment amount has been fully settled.

On September 7, 2023, the Company closed a non-brokered private placement of convertible secured promissory notes in the aggregate principal amount of $239,130 and 239,129 Preferred Shares, Series 1 to accredited investors for gross proceeds of approximately $220,000.

F-21

FIRST PERSON LTD.

CONSOLIDATED BALANCE SHEETS

	JUNE 30,			DECEMBER 31,
AS OF	2023			2022
	(Unaudited)
Current assets:
Cash	$	199,945		$	64,865
Accounts receivable, net		46,994			55,063
Inventory		1,284,830			1,012,799
Prepaid expenses and other current assets		213,888			238,467
Deferred offering cost		1,370,826			889,189
Total current assets		3,116,483			2,260,383
Property and equipment, net		948,323			988,382
Deposits		16,804			16,803
Intangible assets, net		101,753			131,576
Operating lease right-of-use asset		169,426			196,580
Total assets	$	4,352,789		$	3,593,724
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable (includes related party balances of $408,893 as of June 30, 2023, and $686,476 as of December 31, 2022)	$	2,314,215		$	2,532,690
Accrued expenses and other current liabilities		472,589			278,088
Lease liability, current portion		70,910			78,626
Convertible debentures		2,099,174			-
Loans and note payable		780,131			1,097,742
Total current liabilities		5,737,019			3,987,145
Lease liability, net of current portion		98,516			117,954
Total liabilities		5,835,535			4,105,099
Commitments and contingencies (see Note 10)
Shareholders’ equity (deficit)
Preferred shares, no par value - unlimited authorized, 3,098,971 and 0 shares issued and outstanding as of June 30, 2023, and December 31, 2022, respectively		969,136			-
Common shares, no par value - unlimited authorized, 6,351,354 shares issued and outstanding as of June 30, 2023, and December 31, 2022		7,081,261			7,081,261
Additional paid-in capital		903,250			693,951
Accumulated deficit		(10,456,225	)		(8,314,421	)
Accumulated other comprehensive loss		19,833			27,834
Total shareholders’ equity (deficit)		(1,482,746	)		(511,375	)
Total liabilities and shareholders’ equity (deficit)	$	4,352,789			3,593,724

See accompanying notes to the unaudited interim condensed financial statements.

F-22

FIRST PERSON LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

	Six Months Ended June 30,
	2023			2022
	(Unaudited)			(Unaudited)
Revenues, net	$	3,894,500		$	1,079,624
Cost of Goods Sold		1,128,364			364,736
Gross Profit		2,766,136			714,888
Operating expenses:
Selling, general and administrative		4,254,493			3,631,012
Depreciation and amortization		86,153			17,451
Foreign currency transaction losses (gains)		-			(6,245	)
Total operating expenses		4,340,646			3,642,218
Loss from operations		(1,574,510	)		(2,927,330	)
Other income (expense):
Net interest (expense)		(568,712	)		-
Net interest income		1,418			178
Total other income (expense)		(567,294	)		178
Loss before provision for income taxes		(2,141,804	)		(2,927,152	)
Provision for income taxes		-			-
Net loss		(2,141,804	)		(2,927,152	)
Other comprehensive loss, net of provision for income taxes:
Foreign currency translation gain (loss)		(8,001	)		(10,856	)
Comprehensive loss	$	(2,149,805	)	$	(2,938,008	)
Net Loss per Common Share
Basic and diluted		(0.34	)		(0.50	)
Weighted Average Number of Common Shares Outstanding
Basic and diluted		6,351,354			5,838,301

See accompanying notes to the unaudited interim condensed financial statements.

F-23

FIRST PERSON LTD.

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT)

FOR THE SIX MONTHS ENDED JUNE 30, 2023 (Unaudited)

	Preferred Shares				Common Shares									Accumulated
	Shares		Amount		Shares		Amount		Additional Paid-In Capital		Accumulated Deficit			Other Comprehensive Income (Loss)			Total Shareholders’ Equity (Deficit)
Balance, December 31, 2022		-	$	-		6,351,354	$	7,081,261	$	693,951	$	(8,314,421	)	$	27,834		$	(511,375	)
Issuance of Preferred Shares, net of issuance costs of $7,815		3,098,971		969,136		-		-		-		-			-			969,136
Foreign currency translation adjustment gain (loss), net of provision for income taxes		-		-		-		-		-		-			(8,001	)		(8,001	)
Share-based compensation related to grants of stock options		-		-		-		-		209,299		-			-			209,299
Net loss		-		-		-		-		-		(2,141,804	)		-			(2,141,804	)
Balance, June 30, 2023		3,098,971	$	969,136		6,351,354	$	7,081,261	$	903,250	$	(10,456,225	)	$	19,833		$	(1,482,746	)

See accompanying notes to the unaudited interim condensed financial statements.

F-24

FIRST PERSON LTD.

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT)

FOR THE SIX MONTHS ENDED JUNE 30, 2022 (Unaudited)

	Preferred Shares				Common Shares									Accumulated
	Shares		Amount		Shares		Amount		Additional Paid-In Capital		Accumulated Deficit			Other Comprehensive Income (Loss)			Total Shareholders’ Equity (Deficit)
Balance, December 31, 2021		-	$	-		5,804,254	$	4,357,943	$	195,501	$	(2,921,325	)	$	(35,998	)	$	1,596,121
Issuance of 196,400 Common Shares, net of issuance costs of $7,565		-		-		196,400		974,435		-		-			-			974,435
Issuance of 178,100 Common Shares, net of issuance costs of $70		-		-		178,100		890,430		-		-			-			890,430
Issuance of 10,000 Common Shares – Accounts payable conversion		-		-		10,000		50,000		-		-			-			50,000
Issuance of 162,600 Common Shares, net of issuance costs of $4,547		-		-		162,600		808,453		-		-			-			808,453
Foreign currency translation adjustment gain (loss), net of provision for income taxes		-		-		-		-		-		-			(10,856	)		(10,856	)
Share-based compensation related to grants of stock options		-		-		-		-		262,034		-			-			262,034
Net loss		-		-		-		-		-		(2,927,152	)		-			(2,927,152	)
Balance, June 30, 2022		-	$	-		6,351,354	$	7,081,261	$	457,535	$	(5,848,477	)	$	(46,854	)	$	1,643,465

See accompanying notes to the unaudited interim condensed financial statements.

F-25

FIRST PERSON LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended June 30,
	2023			2022
	(Unaudited)			(Unaudited)
Cash flows from operating activities:
Net loss	$	(2,141,804	)	$	(2,927,152	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		86,153			17,451
Amortization of right-of-use asset		27,154			11,542
Amortization of debt discount and issuance costs		449,490			-
Share-based compensation		209,299			262,034
Change in operating assets and liabilities:
Accounts receivable		8,069			(51,735	)
Inventories		(272,031	)		(547,936	)
Prepaid expenses and other current assets		24,579			355,553
Deferred offering cost		(481,637	)		(326,767	)
Deposits		-			(19,525	)
Accounts payable		(218,474	)		802,631
Accrued expenses and other current liabilities		209,976			25,291
Operating lease liability		(27,154	)		(11,542	)
Net cash used in operating activities		(2,126,380	)		(2,410,155	)
Cash flows from (used in) investing activities:
Purchases of property and equipment		(7,931	)		(287,750	)
Asset acquisition of TruMed		-			(114,000	)
Cash used in investing activities		(7,931	)		(401,750	)
Cash flows from financing activities:
Proceeds from loans issued		860,070			-
Repayments of loans payable		(1,409,925	)		-
Proceeds from convertible debentures		1,863,945			-
Issuance of Preferred Shares		969,136			-
Issuance of 196,400 Common Shares, net of issuance costs of $7,565		-			974,435
Issuance of 188,100 Common Shares, net of issuance costs of $70		-			890,430
Issuance of 162,600 Common Shares, net of issuance costs of $4,547		-			808,453
Net cash provided by financing activities		2,283,226			2,673,318
Effect of foreign currency exchange rate changes on cash		(13,835	)		(10,857	)
Net change in cash		135,080			(149,444	)
Cash, beginning of period		64,865			559,158
Cash, end of period	$	199,945		$	409,714
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest	$	334,119		$	-
State income taxes	$	-		$	-
Supplemental disclosures of noncash financing activities:
Issuance of notes payable in exchange for acquisition of TruMed	$	-		$	70,000

See accompanying notes to the unaudited interim condensed financial statements.

F-26

1. ORGANIZATION

Nature of Business LEIIO Wellness Ltd., First Person Ltd.’s (“First Person”) predecessor by name change, was incorporated on January 21, 2021 (date of inception) under the laws of the province of Alberta, Canada. First Person’s wholly owned subsidiary, LEIIO Inc., First Person, Inc.’s (“INC”) predecessor by name change, was incorporated the next day, on January 22, 2021, in the state of Delaware, United States. First Person and INC are hereby collectively referred to as the “Company.” The Company, headquartered in Alberta, Canada, is engaged in the business of formulation and distribution of wholesale food grade functional mushrooms as well as cognitive performance products focusing on the mental performance and wellness markets in the United States.

Since its inception, the Company has devoted substantially all of its efforts to business and product developments relating to the operations of the functional mushroom farm in Olympia, Washington, and to the development of its own proprietary formulations of cognitive performance products containing functional mushrooms. The Company’s activities are subject to significant risks and uncertainties.

2. GOING CONCERN AND MANAGEMENT’S PLAN

The Company has not yet achieved profitability and expects to continue to incur cash outflows from operations. It is expected that its operating expenses will continue to increase and, as a result, the Company will eventually need to generate significant revenues to achieve profitability. These conditions indicate that there is substantial doubt about the Company’s ability to continue as a going concern.

Although the Company’s management believes that it has access to capital resources, there are currently no commitments in place for new financing at this time and there is no assurance that the Company will be able to obtain funds on commercially acceptable terms, if at all. If the Company is unable to obtain adequate funds on reasonable terms, it may be required to significantly curtail or discontinue operations or obtain funds by entering into financing agreements on unattractive terms. The Company’s operating needs include the planned costs to operate its business, including amounts required to fund working capital and capital expenditures.

These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) for the six months ended June 30, 2023 and 2022, which contemplate continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustment that might become necessary should the Company be unable to continue as a going concern.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Unaudited Interim Financial Statements The consolidated balance sheet as of June 30, 2023, the consolidated statements of operations and comprehensive loss, the consolidated statements of changes in shareholders’ equity (deficit), and the consolidated statements of cash flows for the six months ended June 30, 2023 and 2022, as well as other information disclosed in the accompanying notes, are unaudited. The consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements as of that date. The interim consolidated financial statements and the accompanying notes should be read in conjunction with the annual consolidated financial statements and the accompanying notes for the year ended December 31, 2022.

The interim consolidated financial statements and the accompanying notes have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the results of operations for the periods presented. The consolidated results of operations for any interim period are not necessarily indicative of the results to be expected for the full year or for any other future years or interim periods.

The Company’s significant accounting policies are described in Note 2 to the Company’s consolidated financial statements as of December 31, 2022. There have been no material changes to the Company’s significant accounting policies.

F-27

Recently Issued Accounting Pronouncements There is no anticipated impact from recently issued accounting pronouncements to the Company’s interim consolidated financial statements.

4. INVENTORIES

A summary of inventories is as follows:

As of:	June 30, 2023		December 31, 2022
Raw materials	$	263,800	$	176,440
Work in process		-		-
Finished goods		1,021,030		836,359
Inventory	$	1,284,830	$	1,012,799

As of June 30, 2023, inventory included raw materials, which were functional mushrooms produced from the Company’s farm operations, located in Olympia, Washington, to be used in the production of its cognitive performance products. In addition, as of June 30, 2023, inventory included finished goods inventory, which were the Company’s three direct-to-consumer products: Sunbeam^TM, Golden Hour^TM, and Moonlight^TM as well as packaging materials. Inventory is recognized at the lower of cost or net realizable value. Net realizable value is determined based on the estimated selling price less reasonably predictable cost of completion, disposal, and transportation.

F-28

5. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist of the following:

As of:	June 30, 2023		December 31, 2022
Prepaid expenses and deposits	$	213,888	$	238,467

Prepaid expenses and other current assets primarily consist of prepayments related to insurance premiums, product development, office space rent, security deposit for office space, deposit for acquisition and other miscellaneous items.

6. PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

As of:	June 30, 2023			December 31, 2022
Facility	$	576,309		$	576,309
Equipment		415,405			404,789
Computer equipment		13,841			10,776
Less: accumulated depreciation		(57,232	)		(3,492	)
Property and equipment, net	$	948,323		$	988,382

Depreciation expense related to property and equipment amounted to $53,611 for the six months ended June 30, 2023 (and depreciation expense of $1,098 for the six months ended June 30, 2022).

7. INTANGIBLE ASSETS

Intangible assets consist of the following:

As of:	June 30, 2023			December 31, 2022
Website development costs	$	183,317		$	178,918
Less: accumulated amortization		(81,564	)		(47,342	)
Intangible assets	$	101,753		$	131,576

The Company recognized amortization expense of $32,542 related to its website development costs for the six months ended June 30, 2023 (and amortization expense of $16,353 for the six months ended June 30, 2022).

8. LOANS AND NOTE PAYABLE

Loans and notes payable consist of the following:

As of:	June 30, 2023		December 31, 2022
Line of credit	$	35,501	$	134,210
Merchant loan		248,066		319,742
Revenue purchase agreement		403,141		164,636
Bridge loan		4,384		184,154
Insurance financing		89,039		225,000
TruMed acquisition note payable		-		70,000
Loans and note payable, net	$	780,131	$	1,097,742

On January 10, 2023, the Company paid $35,000 as partial payment of the amount owed under the promissory note issued in connection with its acquisition of TruMed from its shareholders (the “TruMed Sellers”), and the Company and the TruMed Sellers amended the promissory note to provide for a new principal amount of $37,868, which shall be payable on or before the earlier of (i) April 30, 2023 and (ii) the date on which the Company completes an initial public offering of securities on a “designated exchange” within the meaning of Canadian securities legislation. The balance of $37,868 was paid to TruMed in full on April 28, 2023.

On May 18, 2023, the Company entered into a merchant loan agreement with WebBank, on behalf of Shopify Inc., for proceeds of $410,000 and a repayment amount of $451,000 (cost of borrowing $41,000). The repayments are made to Shopify Inc. at a rate of 17% of the Company’s daily sales amounts until the repayment amount has been fully settled.

On June 8, 2023, the Company entered into a merchant loan agreement with Fundonatic, for proceeds of $225,000 and a repayment amount of $292,500 (cost of borrowing $67,500). Daily repayments in the amount of $1,950 are made to Fundonatic.

On June 8, 2023, the Company entered into a merchant loan agreement with Click Capital Group LLC, for proceeds of $225,000 and a repayment amount of $292,500 (cost of borrowing $67,500). Daily repayments in the amount of $1,950 are made to Click Capital Group LLC.

On June 28, 2023 the Company extended the expiry date on the 500,620 warrants from July 14, 2023 to January 14, 2024.

F-29

9. CONVERTIBLE DEBENTURES

As of:	June 30, 2023		December 31, 2022
Convertible Debenture	$	2,099,174	$	-

During the six months ended June 30, 2023, the Company closed a non-brokered private placement of convertible secured promissory notes with a principal amount of $3,098,971, and 3,098,971 Series 1 Shares. The Company received net proceeds of approximately $2,833,081. Of the $2,833,081 net proceeds, $1,863,945 was allocated to the convertible notes, and $969,136 was allocated to the Series 1 Shares, based on their relative fair values at issuance.

The convertible notes are due as follows: 50% is due 30 days after a Qualifying Transaction (that is, a merger, sale of the Company, initial public offering, or sale of equity instruments with gross proceeds of at least $3,000,000), and 50% is due the earlier of 90 days after a Qualifying Transaction or one year after issuance. The convertible notes bear interest at 8%, or 10% if the lender elects to receive interest payments in kind. The lenders may convert the convertible notes to Common Shares at any time at a conversion price of $6.00.

If an event of default shall occur and be continuing, lenders holding greater than 50% of the aggregate principal amount of the convertible notes outstanding at such time may declare all the convertible notes to be in default, at which point the principal amount outstanding on the date of such written notice shall increase to 125% of the principal amount then outstanding, and the interest rate shall increase to 15% or the maximum rate permitted under applicable law until such event of default is cured, if capable of being cured. Additionally, if an event of default has occurred and is continuing without cure, at the end of each calendar month thereafter until the event of default has been cured, the lenders shall be entitled to sweep the cash received in the bank accounts of the Company and its subsidiaries in an aggregate amount equal to 20% of the consolidated revenue of the Company and its subsidiaries during such calendar month.

10. COMMITMENTS AND CONTINGENCIES

Leases The Company leases certain office facilities. Certain leases provide the Company with the option to renew for additional periods. The exercise of lease renewal options is at the Company’s sole discretion, and the Company has only included renewal options in the lease term when the Company can be reasonably certain that it will exercise the renewal options.

For the six months ended June 30, 2023 and 2022, the components of lease expenses were recognized as selling, general and administrative expenses in the consolidated statement of operations and comprehensive loss. The lease payments were paid in cash.

	Six Months Ended June 30,
	2023		2022
Operating lease costs	$	40,459	$	19,068

As of June 30, 2023, the Company has no operating or financing leases that have not yet commenced.

The future maturities of the contractual lease payments included in the operating lease liabilities as of June 30, 2023 are as follows:

As of June 30, 2023:	Total
Remainder of 2023	$	40,675
2024		70,546
2025		38,136
2026		38,136
Thereafter		12,712
Total		200,205
Less: amount representing interest		(30,779	)
Total	$	169,426

Litigation The Company is subject to certain legal proceedings and claims that arise in the normal course of business. The Company does not believe that the amount of liability, if any, as a result of these proceedings and claims will have a materially adverse effect on the Company’s financial position, results of operations, and cash flows. On June 26, 2023, the Company received a statement of claim from the sellers of TruMed. This claim seeks payment of the milestone payments as set out in the purchase and sale agreement in advance of meeting the milestones. The total of the milestone payments as set out in the purchase and sale agreement is $550,000.

In the past 24 months several of the Company’s representatives have been part of interviews that were recorded on podcasts or in articles discussing their own experiences and the Company. The interviews were directed at persons interested in health, wellness, spirituality and the potential benefits of products the Company sells or expects to sell. The interviews were not directed at prospective investors and made no mention of a possible initial public offering by the Company.

To the extent that certain statements in the podcasts and articles may have violated Section 5 and were inaccurate, unsubstantiated, misleading, or contradicted disclosures in the prospectus, those statements have now been specifically set forth in Exhibit 99.1 to the registration statement, the problem with each of those statements has been identified and such statements have been specifically and thoroughly corrected, refuted or contradicted, as applicable. The prospectus now sets forth the correct information for any investor who might have otherwise relied on statements contained in the podcasts or articles. Likewise, misstatements contained in an online article were identified and clarified in the prospectus and in the Company’s Free Writing Prospectus, which was filed with the SEC on September 26, 2022. Courts have held that, in general, buyers are charged as a matter of law with having reviewed the prospectus. Furthermore, the Company intends to vigorously defend any rescission claims by purchasers.

F-30

In view of the foregoing factors and analysis, the Company concluded that the likelihood of experiencing a material loss in connection with potential rescission claims is not probable. The Company acknowledges, however, that a contingent liability arising from the rescission rights of investors who purchase shares in this offering (including investors who purchase shares from the selling shareholders), is reasonably possible. Therefore, pursuant to ASC 450-20, the Company is required to disclose the nature of the contingency and an estimate of the possible range of loss (or state the fact that an estimate cannot be made), but is not required to accrue a contingent liability in connection with such potential rescission claims. An estimated range of loss from this contingent liability cannot be reasonably made given that the offering has not yet occurred and there’s been no indication that any of the potential purchasers would in fact file suit claiming rescission and succeed.

11. SHAREHOLDERS’ EQUITY

As discussed in Note 9, during the six months ended June 30, 2023, the Company closed a non-brokered private placement of convertible secured promissory notes with a principal amount of $3,098,971, and 3,098,971 Series 1 Shares. The holders of Series 1 Shares may convert the Series 1 Shares to Common Shares at any time, and the Series 1 Shares will automatically be converted to Common Shares upon an initial public offering. The number of Common Shares issued upon conversion will be equal to (1) the number of Series 1 Shares converted (multiplied by 60% if the initial public offering occurs within six months of the issuance of the Series 1 Shares), divided by (2) the conversion price. The conversion price is the lesser of (1) $6.00, and (2) (if applicable) the greater of (a) 80% of the initial public offering price and (b) $3.00.

12. SHARE-BASED PAYMENTS

As of June 30, 2023, 492,492 Time Options had vested under the Plan. During the six months ended June 30, 2023, there were no options or other share awards granted.

A summary of option activity for the six months ended June 30, 2023 is presented below.

					Weighted
					Average
			Weighted		Remaining
			Average		Contractual
	Number of		Exercise		Term		Intrinsic
	Options		Price		(in Years)		Value
Balance, December 31, 2022		615,000	$	2.59		3.61	$	1,480,457
Granted		-		-		-		-
Exercised		-		-		-		-
Forfeited		25,833		3.92		-		-
Expired		-		-		-		-
Balance, June 30, 2023		589,167	$	2.53		3.10	$	1,747,194

A summary of unvested options for the six months ended June 30, 2023 is presented below:

			Weighted
			Average Grant
	Number of		Date Fair Value
	Options		Per Share
Unvested as of December 31, 2022		290,834	$	3.13
Granted		-		-
Vested		168,333		2.61
Forfeited or expired		21,666		3.43
Exercised		-		-
Unvested as of June 30, 2023		100,835	$	3.95

F-31

The Company recognized $212,609 and $262,034 of non-employee share-based compensation expense for the six months ended June 30, 2023 and 2022, respectively, which is included in selling, general and administrative expenses in the consolidated statement of operations and comprehensive loss.

As of June 30, 2023, $324,574 of unrecognized compensation expense remained under the Plan related to unvested non-employee Time Options.

Warrants On July 14, 2021, the Company issued 1,001,242 Units of First Person at a price of CAD$3.50 per Unit for aggregate gross proceeds of CAD$3,504,346. Each Unit consists of one Common Share and one half of one Warrant. The issuance resulted in 500,620 Warrants. Each Warrant entitles the holder to acquire one Common Share upon payment of the exercise price prior to the expiration time.

The Company used the following approximate assumptions in connection with its estimation of fair value of Warrants:

	Assumptions
Expected term (years)	2.00
Expected volatility	91.05	%
Risk free interest rate	0.23	%
Expected dividends	0.00	%

A summary of the warrant activity during the six months as of June 30, 2023 is presented below. There was no warrant activity for the six months ended June 30, 2022:

					Weighted
			Weighted		Average
			Average		Remaining
	Number of		Exercise		Life
	Warrants		Price		(in Years)
Balance, December 31, 2022		500,620	$	4.00		0.54
Issued		-		-		-
Exercised		-		-		-
Forfeited or expired		-		-		-
Balance, June 30, 2023		500,620	$	4.00		0.58

13. SUBSEQUENT EVENTS

The Company has evaluated subsequent events that have occurred from July 1, 2023 through the date that these consolidated financial statements were issued, and determined that there were no subsequent events or transactions that required recognition or disclosure in the consolidated financial statements, except as described below.

On July 19, 2023, the Company entered into a merchant loan agreement with Cloudfund LLC, for proceeds of $199,774 and a repayment amount of $276,040 (cost of borrowing $76,266). The repayments are made to Cloudfund LLC at a rate of 4% of the Company’s daily receipts for the sale of goods and services until the repayment amount has been fully settled.

On July 21, 2023, the Company entered into a merchant loan agreement with WebBank, on behalf of Shopify Inc., for proceeds of $260,000 and a repayment amount of $283,400 (cost of borrowing $23,400). The repayments are made to Shopify Inc. at a rate of 17% of the Company’s daily sales amounts until the repayment amount has been fully settled.

On August 31, 2023, the Company entered into a merchant loan agreement with Curve Capital LLC, for proceeds of $225,000 and a repayment amount of $306,000 (cost of borrowing $81,000). The repayments are made to Curve Capital LLC at a rate of 6.12% of the Company’s daily receivables until the repayment amount has been fully settled.

On September 7, 2023, the Company closed a non-brokered private placement of convertible secured promissory notes in the aggregate principal amount of $239,130 and 239,129 Preferred Shares, Series 1 to accredited investors for gross proceeds of approximately $220,000.

F-32

Common Shares

PROSPECTUS

Sole Bookrunner

EF Hutton

division of Benchmark Investments, LLC

     , 2023

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

PART II

INFORMATION NOT REQUIRED IN PROSPECTUS

ITEM 13. Other Expenses of Issuance and Distribution

The following table sets forth the costs and expenses payable by us in connection with the issuance and distribution of the securities being registered, with are inclusive of the fees and expenses incidental to the registration of the selling shareholder shares. All of the amounts shown are estimates, except for the SEC registration fee.

Securities and Exchange Commission Registration Fee	$	3,122
FINRA filing fee	$	6,322
Nasdaq listing fees	$	10,000
Accountants’ fees and expenses	$	330,000
Legal fees and expenses	$	900,000
Miscellaneous	$	556
Total	$	1,250,000

ITEM 14. Indemnification of Directors and Officers

Under the ABCA, we may indemnify our current or former directors or officers or another individual who acts or acted at our request as a director or officer, or an individual acting in a similar capacity, of another entity, against all costs, charges, and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative, or other proceeding in which the individual is involved because of his or her association with us or another entity. The ABCA also provides that we may advance moneys to a director, officer, or other individual for costs, charges, and expenses reasonably incurred in connection with such a proceeding; provided that such individual shall repay the moneys if the individual does not fulfill the conditions described below.

However, indemnification is prohibited under the ABCA unless the individual:

● acted honestly and in good faith with a view to our best interests, or the best interests of the other entity for which the individual acted as director or officer or in a similar capacity at our request; and

● in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, the individual had reasonable grounds for believing that his or her conduct was lawful.

Our bylaws require us to indemnify each of our current or former directors or officers and each individual who acts or acted at our request as a director or officer, or an individual acting in a similar capacity, of another entity, against all costs, charges, and expenses, including, without limitation, an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative, or other proceeding in which the individual is involved because of his or her association with us or another entity.

Our bylaws authorize us to purchase and maintain insurance for the benefit of each of our current or former directors or officers and each person who acts or acted at our request as a director or officer, or an individual acting in a similar capacity, of another entity.

We intend to enter into indemnity agreements with our directors and certain officers which provide, among other things, that we will indemnify him or her to the fullest extent permitted by law from and against all liabilities, costs, charges and expenses incurred as a result of his or her actions in the exercise of his or her duties as a director or officer.

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At present, we are not aware of any pending or threatened litigation or proceeding involving any of our directors, officers, employees, or agents in which indemnification would be required or permitted.

We have directors’ and officers’ liability insurance providing coverage to our directors and officers within the limits and subject to the limitations of the policies, against certain expenses in connection with the defense of, and certain liabilities which might be imposed as a result of, actions, suits, or proceedings to which they are parties by reason of being or having been such directors or officers.

ITEM 15. Recent Sales of Unregistered Securities

On January 21, 2021, we issued two pre-Consolidation Common Shares to two members of management for CAD$0.05 per Common Share, for aggregate gross proceeds of CAD$0.10.

On February 3, 2021, we issued 1,000,000 Common Shares to accredited investors in exchange for consulting services, whose total consideration amounted to CAD$162,500, consisting of (i) 250,000 Common Shares for CAD$0.05 per Common Share and (ii) 750,000 Common Shares for CAD$0.20 per Common Share.

On February 17, 2021, in connection with the Plan of Merger, each share of LEIIO issued and outstanding converted into 0.31111112 Common Shares of Wellness Share. The consideration in the merger consisted of 2,800,000 Wellness Shares, with 700,000 Wellness Shares issued to each of the Wellness Share Recipients. The first 175,000 Wellness Shares issued to each of the Wellness Share Recipients were issued at a price of CAD$0.05 per share and the remaining Wellness Shares were issued at a price of CAD$0.20 per share. The total consideration in the merger amounted to CAD$455,000. By virtue of the merger, each share of Merger Sub issued and outstanding immediately prior to the effective time of the merger converted into one share of LEIIO. Immediately after the merger, the surviving corporation, LEIIO became a wholly-owned subsidiary of Wellness and the owners of LEIIO obtained control of Wellness, resulting in a reverse acquisition.

On March 4, 2021, we closed a non-brokered private placement of Common Shares at CAD$2.00 per Common Share, pursuant to which we issued 1,003,012 Common Shares to accredited investors for gross proceeds of approximately CAD$2,006,022. The shares issued were subject to a contractual restriction on transfer subject to the consent of the Company’s management and other restrictions under applicable law.

On March 31, 2021, we adopted the Incentive Plan, which was amended and restated on March 22, 2022. The purpose of the Incentive Plan is to (i) enhance the Company’s ability to attract, retain, and motivate persons who make (or are expected to make) important contributions to the Company by providing these individuals with equity ownership opportunities, (ii) align the interests of such individuals with the Company’s shareholders, and (iii) promote ownership of the Company’s equity. The Company has reserved a maximum number of Common Shares for the grant of awards under the Incentive Plan of not more than 10 percent of the aggregate number of issued and outstanding Common Shares from time to time. Incentives available under the Incentive Plan may include options, restricted share units, performance share units, deferred share units, and restricted shares.

On April 26, 2021, we granted options to purchase a total of 395,000 Common Shares, with a five-year term and an exercise price of CAD$2.00 per Common Share, under the Incentive Plan, to eleven employees, advisory board members, and members of management, with the options becoming vested as follows: one-third upon grant, one-third on April 26, 2022, and one-third on April 26, 2023. On September 28, 2021, we terminated our relationship with one of the options recipients. Pursuant to the terms of the Incentive Plan, the options recipient has three months from the date of his termination to exercise the 13,333 options granted to him that were vested on the date of his termination, after which time such options will expire, and the 26,667 options granted to him but not yet vested as of the date of his termination have been cancelled.

On May 24, 2021, we granted options to purchase 10,000 Common Shares, with a five-year term and an exercise price of CAD$2.00 per Common Share, under the Incentive Plan, to an advisory board member, with the options becoming vested as follows: one-third upon grant, one-third on May 24, 2022, and one-third on May 24, 2023.

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On July 14, 2021, we closed a non-brokered private placement of units (“Units”) at CAD$3.50 per Unit, pursuant to which we issued 1,001,242 Units to accredited investors for gross proceeds of approximately CAD$3,504,346. This amount includes the issuance of 20,657 Units to Red Antler Ventures 3 LLC, an affiliate of Red Antler, LLC, as payment for certain amounts owed to Red Antler, LLC. Each Unit consisted of one Common Share and one-half of one warrant (“Warrant”). Each whole Warrant entitles the holder thereof to acquire one Common Share at an exercise price of CAD$5.00 per Common Share, for a period of two years following the date of issuance. The securities issued were subject to a contractual restriction on transfer subject to our management’s consent and other restrictions under applicable law.

On July 28, 2021, we granted options to purchase 10,000 Common Shares, with a five-year term and an exercise price of CAD$3.50 per Common Share, under the Incentive Plan, to an advisory board member, with the options becoming vested as follows: one-third upon grant, one-third on July 28, 2022, and one-third on July 28, 2023.

On September 27, 2021, we granted options to purchase a total of 22,500 Common Shares, with a five-year term and an exercise price of CAD$3.50 per Common Share, under the Incentive Plan, to two employees, with the options becoming vested as follows: one-third upon grant, one-third on September 27, 2022, and one-third on September 27, 2023.

On September 27, 2021, we granted options to purchase a total of 27,500 Common Shares, with a five-year term and an exercise price of CAD$3.50 per Common Share, under the Incentive Plan, to two employees, with the options becoming vested as follows: one-third on September 27, 2022, one-third on September 27, 2023, and one-third on September 27, 2024.

On September 27, 2021, we granted options to purchase a total of 50,000 Common Shares, with a five-year term and an exercise price of CAD$3.50 per Common Share, under the Incentive Plan, to two members of management, with the options immediately becoming vested upon grant.

On February 2, 2022, we closed a private placement of Common Shares at $5.00 per Common Share, pursuant to which we issued 196,400 Common Shares to accredited investors for gross proceeds of approximately $982,000. EF Hutton served as broker for the sale of Common Shares in the United States, while the sales of Common Shares in foreign jurisdictions was non-brokered.

On March 4, 2022, we closed a private placement of Common Shares at $5.00 per Common Share, pursuant to which we issued 188,100 Common Shares to accredited investors for gross proceeds of approximately $940,500. This amount includes the issuance of 10,000 Common Shares to Chris Bonds as payment for certain amounts owed to Chris Bonds Construction. EF Hutton served as broker for the sale of Common Shares in the United States, while the sales of Common Shares in foreign jurisdictions was non-brokered.

On April 14, 2022, we granted options to purchase a total of 140,000 Common Shares, with a five-year term and an exercise price of $5.00 per Common Share, under the Incentive Plan, to ten employees, advisory board member, board members, and members of management, with the options becoming vested as follows: one-third on April 14, 2023 grant, one-third on April 14, 2024, and one-third on April 14, 2025.

On April 20, 2022, we closed a private placement of Common Shares at $5.00 per Common Share, pursuant to which we issued 162,600 Common Shares to accredited investors for gross proceeds of approximately $813,000. This amount includes the issuance of 1,600 Common Shares to Mandy Belkin as payment for certain amounts owed to Chris Bonds Construction. EF Hutton served as broker for the sale of Common Shares in the United States, while the sales of Common Shares in foreign jurisdictions was non-brokered.

On January 3, 2023, we closed a non-brokered private placement of convertible secured promissory notes in the aggregate principal amount of $764,130 and 764,124 Series 1 Shares to accredited investors for gross proceeds of approximately $703,000.

On January 9, 2023, we closed a non-brokered private placement of convertible secured promissory notes in the aggregate principal amount of $616,304 and 616,303 Series 1 Shares to accredited investors for gross proceeds of approximately $567,000.

On February 6, 2023, we closed a non-brokered private placement of convertible secured promissory notes in the aggregate principal amount of $368,543 and 368,543 Series 1 Shares to accredited investors for gross proceeds of approximately $339,060.

On March 31, 2023, the Company closed a non-brokered private placement of convertible secured promissory notes in the aggregate principal amount of $1,350,000 and 1,350,001 Series 1 Shares to accredited investors for gross proceeds of approximately $1,242,000.

On September 7, 2023, the Company closed a non-brokered private placement of convertible secured promissory notes in the aggregate principal amount of $239,130 and 239,129 Preferred Shares, Series 1 to accredited investors for gross proceeds of approximately $220,000.

Exemptions

The sales of the above-described securities were deemed to be exempt from registration under the Securities Act because they were made in reliance upon the exemption from registration provided under Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder.

The grants of options described above were made in reliance upon the exemption from registration under the Securities Act under Regulation S or Section 4(a)(2), or under Rule 701 of the Securities Act as transactions pursuant to written compensatory plans or pursuant to a written contract relating to compensation.

No underwriter was employed in connection with the securities issuances set forth in this Item 15.

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ITEM 16. Exhibits and Financial Statement Schedules.

(a) Exhibits.

The exhibits to the registration statement are listed in the Exhibit Index to this registration statement and are incorporated by reference herein.

(b) Financial Statement Schedules.

All financial statement schedules have been omitted, since the required information is not applicable or is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the financial statements and notes thereto.

EXHIBIT INDEX

Exhibit No.	Description of Exhibit
1.1***	Form of Underwriting Agreement.
2.1***	Agreement and Plan of Merger by and among LEIIO Wellness Ltd., LEIIO Merger Sub, Inc., and LEIIO Inc., dated February 17, 2021.
2.2***	Share Purchase Agreement amount First Person Ltd., each of the shareholders of TruMed Limited, and TruMed Limited, dated as of February 15, 2022.
3.1***	Articles of Incorporation of First Person Ltd., as amended.
3.2***	Amended and Restated By-Law No. 1 of First Person Ltd.
4.1***	Form of Certificate for Common Shares of LEIIO Wellness Ltd.
4.2***	Form of Warrant of LEIIO Wellness Ltd.
4.3***	Warrant Indenture between LEIIO Wellness Ltd. and Odyssey Trust Company, dated July 14, 2021.
4.4***	First Supplemental Warrant Indenture between First Person Ltd. and Odyssey Trust Company, dated May 4, 2022.
4.5***	Second Supplemental Warrant Indenture between First Person Ltd. and Odyssey Trust Company, dated June 26, 2023.
4.6***	Form of Convertible Secured Promissory Note Purchase Agreement
4.7***	Form of Convertible Secured Promissory Note
5.1**	Legal Opinion of Dentons Canada LLP.
10.1#***	First Person Ltd. Long Term Incentive Plan, dated March 22, 2022.
10.2***	Form of Option Agreement of LEIIO Wellness Ltd.
10.3***	Assignment of Lease between INDVR Brands, Inc. and First Person Ltd., dated as of December 21, 2021.
10.4***	Commercial Lease Agreement between LEIIO Wellness Ltd. and Provisions Mushroom Farm LLC, dated April 19, 2021.
10.5***	WeWork Membership Agreement between Cory Rosenberg and 3900 W Alameda Ave Tenant LLC, dated February 25, 2021.
10.6***	WeWork Membership Agreement between Cory Rosenberg and 3900 W Alameda Ave Tenant LLC, dated June 30, 2021.
10.7***	Amendment to WeWork Membership Agreement between Cory Rosenberg and 3900 W Alameda Ave Tenant LLC, dated August 10, 2021.
10.8***	Amendment to WeWork Membership Agreement between First Person and 3900 W Alameda Ave Tenant LLC, dated September 29, 2021.
10.9***	Amendment to WeWork Membership Agreement between First Person and 3900 W Alameda Ave Tenant LLC, dated July 8, 2022.
10.10***	WeWork Membership Agreement between First Person and 611 North Brand Boulevard Tenant LLC, dated October 11, 2022.
10.11***	Amendment to WeWork Membership Agreement between First Person and 611 North Brand Boulevard Tenant LLC, dated March 31, 2023.
10.12***	Board Observer Agreement between LEIIO Wellness Ltd., Samuel Tullman, and Glen Tullman, dated July 14, 2021.
10.13#***	Employment Agreement between First Person Inc. and Cory J. Rosenberg, effective as of January 1, 2022.
10.14#***	Employment Agreement between First Person Inc. and Chris L. Claussen, effective as of January 1, 2022.
10.15#***	Employment Agreement between First Person Inc. and Adam J. Schoenberg, effective as of January 1, 2022.
10.16#***	Employment Agreement between First Person Ltd. and Darcy A. Campbell, effective as of January 1, 2022.
10.17±***	Statement of Work between LEIIO Inc. and Charles River Laboratories Montreal ULC, dated September 14, 2021.
10.18***	Merchant Loan Agreement between Leiio Inc. and WebBank, dated August 8, 2022.
10.19***	Financing and Security Agreement between First Person, Inc. and Celtic Bank Corporation, dated August 8, 2022.
10.20***	Guaranty by Cory J. Rosenberg to Celtic Bank Corporation, dated August 8, 2022.
10.21***	Revenue Purchase Agreement between First Person Inc. / First Person Ltd. and Pearl Beta Funding, LLC, dated October 6, 2022.
10.22**	Merchant Loan Agreement between First Person, Inc. and WebBank, dated November 8, 2022.
10.23**	Future Receipts Sale and Purchase Agreement between First Person, Inc. and Cloudfund LLC, dated December 20, 2022.
10.24**	Payment Agreement between First Person, Inc. and PFS Canada, dated December 31, 2022.
10.25**	Merchant Loan Agreement between First Person, Inc. and WebBank, dated May 18, 2023.
10.26**	Future Receivables Sale and Purchase Agreement between First Person, Inc. and Fundonatic, dated June 9, 2023.
10.27**	Standard Merchant Cash Advance Agreement between First Person, Inc. and Click Capital Group LLC, dated June 8, 2023.
10.28**	Future Receipts Sale and Purchase Agreement between First Person, Inc. and Cloudfund LLC, dated July 19, 2023.
10.29**	Merchant Loan Agreement between First Person, Inc. and WebBank dated July 21, 2023.
10.30**	Standard Merchant Cash Advance Agreement between First Person, Inc. and Curve Capital LLC, dated August 31, 2023.
21.1***	Subsidiaries of First Person Ltd.
23.1**	Consent of Marcum LLP.
23.2**	Consent of Dentons Canada LLP (included in Exhibit 5.1).
24.1***	Power of Attorney (included on signature page).
99.1***	First Person Ltd.’s Responses to Interview Statements.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
107**	Calculation of Filing Fee Tables.

*	To be filed by amendment.
**	Filed herewith.
***	Previously filed.

±	Denotes that fees, payment terms, and other business terms have been redacted in accordance with Item 601(b)(10)(iv) of Regulation S-K.
#	Denotes management contract or compensatory plan or arrangement.

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ITEM 17. Undertakings.

The undersigned registrant 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.

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.

The undersigned registrant hereby undertakes that:

(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.

(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.

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:

(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;

(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and

(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 liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

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SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Burbank, California, on September 12, 2023.

FIRST PERSON LTD.
By:	/s/ Cory J. Rosenberg
Name:	Cory J. Rosenberg
Title:	Chairman, Chief Executive Officer, and President

Pursuant to the requirements of the Securities Act of 1933, as amended, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

Signature	Title	Date
/s/ Cory J. Rosenberg	Chairman, Chief Executive Officer, and President	September 12, 2023
Cory J. Rosenberg	(principal executive officer)
/s/ Darcy A. Campbell	Chief Financial Officer	September 12, 2023
Darcy A. Campbell	(principal financial and accounting officer)
/s/ Chris L. Claussen	Chief Innovation Officer and Director	September 12, 2023
Chris L. Claussen
/s/ Ariel Fainsod	Director	September 12, 2023
Ariel Fainsod
/s/ Gail D. Hamilton Azodo	Director	September 12, 2023
Gail D. Hamilton Azodo
/s/ Rosema J. Nemorin	Director	September 12, 2023
Rosema J. Nemorin

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EX-5.1

Exhibit 5.1

Dentons Canada LLP 15^th Floor, Bankers Court 850-2^nd Street SW
Calgary, AB, Canada T2P 0R8 dentons.com

September 12, 2023

First Person Ltd.
1840, 444 – 5th Avenue SW
Calgary, Alberta, Canada T2P 2T8

Ladies and Gentlemen:

In connection with: (i) the issuance by First Person Ltd., a company existing under the laws of Alberta, Canada (the “Company”), of an aggregate of up to 2,900,000 common shares in the capital of the Company without par value, which includes up to 435,000 common shares issuable upon exercise of the underwriters’ option to purchase additional shares (the “Issuable Shares”); and (ii) the registration for resale of 2,330,364 common shares in the capital of the Company (the “Resale Shares”, and collectively with the Issuable Shares, the “Shares”), pursuant to its Registration Statement on Form S-1 (File No. 333-264707) (as amended through the date hereof, the “Registration Statement”), which was filed by the Company with the United States Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Act”), certain legal matters with respect to the Shares are being passed upon for the Company by us.

The opinions set forth herein relate only to certain matters regarding the Shares. In our capacity as your Canadian counsel in the connection referred to above, as a basis for the opinions hereinafter expressed, we have examined the articles of incorporation of the Company, as amended to date, the underwriting agreement to be entered into between the Company and EF Hutton, division of Benchmark Investments LLC, as sole representative of the several underwriters named in Schedule A thereto, relating to the sale of the Shares, which has been filed as Exhibit 1.1 to the Registration Statement (the “Underwriting Agreement”), the originals, or copies certified or otherwise identified, of corporate records of the Company, and certificates of public officials and of representatives of the Company, statutes and other instruments and documents and have made such other investigations as we have deemed relevant and necessary in connection with the opinions hereinafter set forth.

In giving this opinion, we have relied, without independent investigation, on certificates of officers of the Company and of public officials with respect to the accuracy of the factual matters contained in such certificates, and we have assumed, without independent investigation, that all signatures on documents we have examined are genuine, all documents submitted to us as originals are authentic, all documents submitted to us as certified or photostatic copies of original documents conform to the original documents and all these original documents are authentic, and all information submitted to us is accurate and complete. We have also assumed that all Shares will be offered and sold in the manner described in the Registration Statement and in accordance with the terms of the Underwriting Agreement.

First Person Ltd. Page 2     dentons.com

On the basis of the foregoing, and subject to the assumptions, limitations and qualifications set forth herein, we are of the opinion that: (i) the Issuable Shares have been duly authorized by all necessary corporate action on the part of the Company and, when issued and delivered against payment of the purchase price therefor in accordance with the Underwriting Agreement will be validly issued, fully paid and non-assessable; and (ii) the Resale Shares are validly issued, fully paid and non-assessable.

This opinion is limited in all respects to the laws of the Province of Alberta and the federal laws of Canada applicable therein.

We hereby consent to the filing of this opinion of counsel as Exhibit 5.1 to the Registration Statement. We also consent to the reference to our firm under the heading “Legal Matters” in the Registration Statement. In giving this consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Act or the rules and regulations of the Commission thereunder.

Yours truly,

(signed) “Dentons Canada LLP”

Dentons Canada LLP

EX-10.22

Exhibit 10.22

Merchant Loan Agreement

Total Payment Amount:	Loan Amount:	Cost of Funds:	Repayment rate:
$401,150.00	$355,000.00	$46,150.00	15% of daily
USD	USD	USD	sales

This Merchant Loan Agreement (“Agreement”), dated as of the Effective Date (as defined below) is between WebBank, a Utah-chartered industrial bank (“Lender,” “We”, “Us” or “Our”), and First Person Inc. (“Borrower,” “You”, or “Your”). The parties agree to the following terms and conditions, which create a binding legal relationship:

1.       Definitions

As used in this Agreement, the following words have the meanings as specified below:

Account	has the meaning set forth in Section 4.2.1.
Arbitration Provision	has the meaning set forth in Section 12.1.
Authorized Representative	means any individual who has been authorized by Borrower to obtain the Loan and has authority to accept this Agreement on behalf of Borrower.
Claims	has the meaning set forth in Section 12.1.
Collateral	has the meaning set forth in Section 5.1.
Confidential Information	means any and all information associated with a party's business and not publicly known, including specific business information, technical processes and formulas, software, customer lists, prospective customer lists, names, addresses and other information regarding customers and prospective customers, product designs, sales, costs (including any relevant processing fees), price lists, and other unpublished financial information, business plans and marketing data, and any other confidential and proprietary information, whether or not marked as confidential or proprietary. Lender's Confidential Information includes all information that Borrower receives relating to Lender, or to the terms of this Loan, that is not known to the general public.
Daily Payment	means the daily payment due to Lender, which shall be an amount equal to the Shopify Account Credits attributed to Borrower's Shopify Services Account for such day multiplied by the Daily Payment Percentage. If Borrower does not have any Shopify Account Credits for any given day, then there shall be no Daily Payment for such day.
Daily Payment Percentage	means 15%
Effective Date	means the date on which we deliver the funding to You.
Event of Default	means the occurrence of an event described in Section 8.
Lender Information	has the meaning set forth in Section 10.15.2.
Loan	means the closed-end business purpose loan made by Lender to Borrower under this Agreement.
Loan Amount	means the total amount of funding provided by Lender to the Borrower pursuant to this Agreement.
Make-up Payments	means deductions from Your Account, as applicable, initiated by Lender or Processor or any Other Processor for the benefit of Lender if any of Lender, Processor or Other Processor, as applicable, was unable to effect a transfer for any payment due hereunder on a particular day because of insufficient funds in Your Account or any other reason.
Manual Payment	has the meaning set forth in Section 4.1.2.
Obligations	means, collectively, Borrower's obligations under this Agreement, including Your obligation to pay the Total Payment Amount, and any other fees or expenses due hereunder (including, without limitation, the reasonable attorney's fees and expenses that arise upon an Event of Default, including after the filing of a bankruptcy or other insolvency proceeding, regardless of whether allowed or allowable in whole or in part as a claim in such bankruptcy or other insolvency proceeding); and Borrower's obligation to pay all other obligations and liabilities owed to Lender under any other document or agreement now or hereafter entered into between Lender and Borrower.
Other Business Account	means, collectively, all bank accounts associated with Shopify Services accounts of Borrower, or Owners, subsidiaries or affiliates of Borrower, and into which funds related to Other Business Credits are deposited.
Other Business Credits	means any funds of a business owned or operated by Borrower or the Owners, subsidiaries or affiliates of Borrower, other than the Shopify Store, including any funds that are credited to one or more Accounts or Shopify Services accounts of Borrower or the Owner, subsidiaries or affiliates of Borrower (other than the Shopify Services Account), regardless of source.
Other Processor	means, collectively and individually, any processor, acquirer, service provider or financial institution taking custody of, holding, possessing, or issuing payment instructions with respect to any Other Business Accounts.
Outstanding Total Payment Amount	means the Total Payment Amount, less the aggregate amounts of Payments received by Lender.
Owner	means any parent company, any individual who, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, owns 25 percent or more of the equity interests of a legal entity, sole proprietor, principal, or member of Borrower.
Payments	means, collectively, the Daily Payments and any Manual Payments.
Processor	means, collectively and individually, any processor, acquirer, service provider or financial institution taking custody of, holding, possessing, or issuing payment instructions with respect to the Shopify Account Credits.
Processor Terms of Service	means the agreement, as it may be amended from time to time, under which Processor or Other Processor (along with other applicable third parties) provides Borrower with payment services.
Register	has the meaning set forth in Section 13.1.

Shopify Account Credits	means all funds from transactions associated with Your Shopify Services Account while You have a Loan with Us, regardless of source, whether those funds are credited through cash, bank checks, credit cards, debit cards, and other types of payment cards, electronic money transfers, such as Automated Clearing House or “ACH” debits and PayPal® money transfers or other forms of payment, excluding only the Loan.
Shopify Admin	means the administrative dashboard associated with Borrower's Shopify Services Account.
Shopify Merchant Business Account or SMBA	means the bank account or other business stored-value account of Borrower set out in the Shopify Admin and into which: (a) the Shopify Account Credits settle (less any transaction or other related fees); and (b) the Loan would be funded.
Shopify Services	means the ecommerce software and services provided to Borrower by Shopify Inc.
Shopify Services Account	means the account provisioned by Shopify Inc. to Borrower in respect of the Shopify Services.
Shopify Store	means First Person Inc..
Shopify Terms of Service	means the agreement, including the Shopify Acceptable Use Policy and any other documents incorporated by reference, as may be amended from time to time, under which Shopify Inc. provides Borrower with the Shopify Services.
Total Payment Amount	means $401,150.00 USD, which is the total amount that Borrower promises to pay Lender as consideration for the Loan. For the avoidance of doubt, Borrower in addition to the Total Payment Amount may also be liable to Lender herein for any costs, fees, or other damages payable upon an Event of Default or any amounts due under Borrower's indemnification obligations under this Agreement

2.       Loan Funding

2.1.       By clicking on “Submit Application,” You accept this Agreement and are making a request for Lender to complete its review of Your application and make a Loan to You. For this review, We may obtain and review any information on the Borrower, an Owner, or the Authorized Representative that We are permitted by applicable law to obtain and review for this purpose, including: (a) Your Shopify Services Account history; (b) information about any financial accounts Borrower has with third-party institutions, including transaction data with respect to such accounts, which We may obtain directly or through third-party services; and (c) name, address, date of birth, other information that allows Us to verify Your identity, together with any necessary identification documents, collected and verified in accordance with federal anti-money laundering, terrorist financing, and other financial regulations.

2.2.       As provided above, You authorize Us to obtain account information from third-party services for the purpose of authenticating or obtaining information about accounts You have with financial institutions. You acknowledge that You may be required to provide such authorization directly to such third parties. If You do not provide the required authorization to the third-party services described above, We may decline to proceed with Your request for funding. We also may decline to proceed with Your request for funding if a financial institution prevents us or our service provider to access Your account, even if you did not instruct the financial institution to do so.

2.3.       If Lender approves Your application, in its sole and absolute discretion, Lender shall accept the Agreement and make the Loan to Borrower by making a single disbursement to the SMBA in the amount of $355,000.00 USD on a date determined by Lender. This Agreement will not take effect unless We accept it by funding the Loan. THE LOAN SHALL BE MADE BY LENDER IN ITS SOLE AND ABSOLUTE DISCRETION, AND BORROWER'S ACCEPTANCE OF THIS AGREEMENT SHALL NOT BE CONSTRUED TO OBLIGATE LENDER TO MAKE THE LOAN.

3.       Business Purpose; Business Account

3.1.       Business Purpose. You agree that You are obtaining this Loan and will use the funds received in connection with this Loan for business purposes only. You will not use this Loan for personal, family, or household purposes. You understand that You are not receiving a consumer loan and that statutory and regulatory protections for consumers will not apply to Your Loan. You also understand that We may, but are not obligated to, verify whether the use of any funds provided conforms to this section. You agree that Your breach of this section will not affect Lender's right to: (a) enforce Your promise to pay all Obligations and amounts owed under this Agreement, regardless of the purpose for which the funds are in fact obtained; or (b) use any remedy legally available to Lender, even if that remedy would not have been available had the funds been provided for consumer purposes.

3.2.       Business Account. You agree that the SMBA, any substitute Account, and the Shopify Services Account are each business accounts used solely for business purposes only and that the Account(s) named above are not and will not be used for personal, family, consumer, or household purposes.

4.       Repayment of the Loan; Authorizations

4.1.       Repayment Terms.

4.1.1.       Borrower promises to pay Lender the Total Payment Amount. In furtherance of this promise, the Borrower promises to make Daily Payments to Lender, starting on the Effective Date until the Total Payment Amount is received by Lender.

4.1.2.       In addition to the Daily Payments, You may make one or more additional payments for any amount, up to and including the then-remaining Outstanding Total Payment Amount (“Manual Payments”). Manual Payments may be made only by ACH, or such other method that Lender permits, in its sole discretion. Lender may refuse any attempted Manual Payment or impose limits on the frequency or amounts of Manual Payments at any time. If You successfully make a Manual Payment that is less than the Outstanding Total Payment Amount, the Outstanding Total Payment Amount will be adjusted by the amount of such Manual Payment. If You successfully pay the entire Outstanding Total Payment Amount, You will have no further payment obligations to Us under the Agreement. If the Manual Payment is reversed or disputed, then any credit to the Outstanding Total Payment Amount applied as a result of the Manual Payment will be reversed as of the date it was applied and You will continue to be obligated to repay Your Loan under this Agreement until the Total Payment Amount has been repaid.

4.2.       Fund Transfers. To the extent that Processor or Other Processor, if applicable, is not acting on behalf of Lender pursuant to Section 4.2.1 below or as Lender may otherwise determine, Lender may act in accordance with Section 4.2.2 below.

4.2.1.       Processing Arrangement. Borrower explicitly authorizes and directs Processor or Other Processor to transfer to Lender from the SMBA, any Other Business Account and/or any other account containing Your Shopify Account Credits or Other Business Credits (collectively, the “Account”): (a) Daily Payments due on business days, will be transferred on a daily basis and Daily Payments due on a non-business day will be transferred on the following business day until the Total Payment Amount has been paid to Lender; and (b) in the event that the Lender declare the entire Outstanding Total Payment Amount (plus any other amounts due under this Agreement) to be immediately due and payable upon an Event of Default, the then Outstanding Total Payment Amount plus the amount of any other outstanding Obligations. Upon an Event of Default, You irrevocably authorize Processor and any Other Processor to deliver all funds on deposit in any Account to Us until We have received the Outstanding Total Payment Amount (plus any other amounts due under this Agreement). You agree that any Processor and Other Processor may rely on any instructions issued by Us with respect to the delivery of funds on deposit in any Account, including, but not limited to, an instruction to deliver to Us all Shopify Account Credits, Other Business Credits, and funds on deposit in any such Accounts to Us until the then Outstanding Total Payment Amount (plus any other amounts due under this Agreement) are delivered to Us after an Event of Default. You agree that You do not have the right to revoke or otherwise seek to override the authorization set forth herein and that this authorization may only be revoked by Us. If there has been no Event of Default, no Processor or Other Processor will deliver to Us any particular payment owed hereunder if such payment has already been delivered to Us by Processor or Other Processor, as applicable, or We have taken such amount via Section 4.2.2 below.

4.2.2.       Lender Electronic Fund Transfer Authorization. You irrevocably authorize Us (which includes, for the purposes of this authorization, Our agents, service providers, successors, and assigns) to initiate an electronic fund transfer via the ACH network from any Account in the amount of any Payment due or other amount due under this Agreement. You authorize Us, to initiate a single ACH for the combined amounts of different Payments owed hereunder (e.g., initiate a single ACH on Monday for Daily Payments that were created on Friday, Saturday, and Sunday) or to initiate individual ACHs for any such Payments. We will not initiate an ACH for any Payments delivered to Us via Section 4.2.1. After the occurrence of an Event of Default, You irrevocably authorize Us to initiate an ACH or ACHs from any Account until We have received the Outstanding Total Payment Amount (plus any other Obligations or amounts due under this Agreement). You also authorize Us to initiate ACH credits or debits to any Account to correct any errors We may make in processing a payment. In the event that an ACH is returned unpaid, You authorize Us to re-initiate the ACH until it is paid. You agree that You will not cancel this authorization or instruct any depository holding Shopify Account Credits (or, after an Event of Default, any other depository holding Other Business Credits) to reject Our ACHs. You promise that the Account is used for business purposes and not for personal, family, consumer or household purposes and that You are an authorized signor on the Accounts. You agree to be bound by the rules and regulations of the National Automated Clearing House Association (“NACHA”).

4.3.       Make-up Payments; Transfer Size/Timing. If any of Lender, Processor or Other Processor is unable to effect a transfer or debit for any payment due hereunder, You authorize and direct Lender, Processor or Other Processor, as applicable, on any subsequent day to deduct any available funds from Your Account, as applicable, to make up for the failed transfer or debit until the full amount of the failed transfer or debit has been paid in full. You authorize and direct any of Lender, Processor or Other Processor to initiate transfers or debits for Make-up Payments in combination with any other payments due or as separate transfers or debits. You agree that any transfer or debit may be split into multiple, smaller transfers or debits and/or initiated the moment funds are credited to the Account, as applicable.

5.       Security Interest; Collateral

5.1.       As security for all Obligations, Borrower hereby grants, assigns, and pledges to Lender a continuing and unconditional lien on and security interest in and to the following, whether now owned, or hereafter acquired, or arising and wherever located (collectively, the Collateral): (a) all Accounts and all balances in such Accounts; (b) all general intangibles (as that term is defined in Article 9 of the Uniform Commercial Code), all payment intangibles, all rights to payment, all accounts receivable (including the Other Business Credits), and all other rights (whether arising under common law, statutes, regulations, or otherwise) of Borrower in each case arising with respect to or in connection with the Accounts; (c) all money, cash equivalents, and other similar assets of Borrower that now or hereafter come into the possession, custody, or control of Lender, Processor or Other Processor (or any of their respective agents or designees); and (d) all of the proceeds (as such term is defined in the applicable UCC) and products, whether tangible or intangible, of any of the foregoing.

5.2.       In furtherance of the intentions of the parties hereto, this Agreement shall constitute written notice to all interested parties of Lender's security interest in the Collateral. Borrower acknowledges and agrees that so long as any of the Obligations remain outstanding, all Accounts and any funds on deposit from time to time therein shall be under the sole dominion and control of Lender. Neither Borrower nor any other person or entity, acting by, through, or under Borrower, shall have any control over the use of, or any right to withdraw any amount from such Accounts without the consent of Lender, provided that Lender shall be deemed to have granted such consent until such time as the occurrence of an Event of Default. In addition, Lender shall have the exclusive rights: (a) to require that any bank or securities intermediary at which any Collateral may be located acknowledge Lender's security interest in and control of the Collateral for purposes of perfecting Lender's security interest therein; and (b) to direct and provide instructions to such bank or securities intermediary as to the disposition of the Collateral to fulfill Borrower's Obligations herein. Borrower agrees that Borrower shall execute and deliver any document requested by Lender to perfect and continue its security interest in the Collateral, including, but not limited to, any account control agreements and take any other action to perfect and maintain Lender's security interest. Borrower further agrees not to create, grant, or permit any other lien, pledge, or security interest to exist on any of the Collateral, except for the security interest granted to the Lender under this Agreement.

5.3.       You authorize Us to file one or more UCC-1 financing statements to memorialize and perfect on the security interest granted to Us hereunder. Any financing statements may include notice that You have given a negative pledge of the Collateral.

6.       Representations and Warranties

Borrower represents and warrants that, as of the date of this Agreement and during the term of this Agreement:

6.1.       Your form of organization is correctly set forth in the Shopify Admin. Unless You are an individual or sole proprietorship, You were duly incorporated or formed, are validly existing, and are in good standing under the laws of the state where your business is registered. You further represent and warrant that: (a) You are duly qualified, licensed, and in good standing in every state in which You are doing business; (b) Your principal office and the location where You keep Your records concerning Your accounts, contract rights, and other property, are accurately reflected in Your Shopify Admin; (c) Your exact legal name is accurately set forth in the Your Shopify Admin and in this Agreement; (d) You have the requisite power and authority, and the legal right to own, lease, and operate Your properties and assets and to conduct Your business as it is now being conducted and to enter into this Agreement; (e) You are complying and will comply with all laws, statutes, regulations, and ordinances pertaining to the conduct of Your business; (f) all of Your organization papers and all amendments thereto have been duly filed and are in proper order, and any capital stock, member interest, or other equity issued by You and outstanding was and is properly issued; and (g) all Your books and records are accurate and up to date and will be so maintained.

6.2.       No consent or authorization of, filing with, notice to, or other act by, or in respect of, any governmental authority or any other individual or entity is required in order for You to execute, deliver, or perform any of Your obligations under this Agreement. The execution, delivery, and performance of the Agreement and any other document executed in connection therewith are within Your powers, have been duly authorized, and are not in contravention of law or the terms of Your charter, by-laws, or other organization papers, if any, or of any indenture, contract, agreement, or undertaking to which You are a party. You are not subject to any charter, corporate, or other legal restriction, or any judgment, award, decree, order, governmental rule, regulation, or contractual restriction that could have a material adverse effect on Your financial condition, business or prospects. You are in compliance with Your organization documents and by-laws, if any, and all contractual requirements by which You may be bound and where the failure to comply might materially adversely affect Your financial condition, business or prospects, or Your ability to perform Your obligations under this Agreement.

6.3.       There is no action, suit, proceeding, or investigation pending or, to Your knowledge, threatened against or affecting You, Your Shopify Store, or any of Your assets that, if determined adversely, could have a material adverse effect on Your financial condition, business or prospects or Your ability to perform Your obligations under this Agreement.

6.4.       This Agreement is Borrower's valid, legal, and binding obligation, enforceable against Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditors' rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

6.5.       You have not sold nor are subject to any other contract or agreement that provides for the sale, assignment, or any other transfer of any interest in the Collateral as of the date of this Agreement. You have good, complete, and marketable title to the Collateral, free and clear of any claims, charges, liens, restrictions, encumbrances, or security interests of any nature whatsoever, other than in favor of Lender. The Shopify Account Credits are and will be the proceeds of bona fide transactions with Borrower's customers.

6.6.       Borrower does not presently intend to cease to operate the business, either permanently or temporarily. Borrower is solvent and does not contemplate bankruptcy or insolvency proceedings. Borrower has not filed any petition for bankruptcy protection and there has been no involuntary petition threatened or filed against Borrower. Borrower does not anticipate the voluntary or involuntary filing of any such bankruptcy petition.

6.7.       All federal, state, local, and foreign tax returns and tax reports, and all taxes due and payable that are required to be filed by Borrower have been or will be filed and paid, on a timely basis (including any extensions). All such returns and reports are and will be true, correct, and complete. Borrower has no material liabilities and, to the best of its knowledge, knows of no material contingent liabilities, except current liabilities incurred in the ordinary course of business.

6.8.       You are entering into this Agreement for business purposes and not as a consumer or for personal, family, consumer, or household purposes. Any credit extended under this Agreement is solely for business purposes and not for personal, family, consumer, or household use.

6.9.       Any attempt to receive the Loan or pay Your Daily Payment, Make-Up Payment, Manual Payment, or Outstanding Total Payment Amount through any account other than the SMBA will entitle Lender, Processor, and any Other Processor to consider any such account as part of Your SMBA for purposes of this Agreement.

6.10.       Each Authorized Representative is at least eighteen (18) years of age and has the legal capacity and all necessary authority to bind You to this Agreement.

7.       Covenants

Borrower agrees to comply with the covenants in this Agreement and to be bound by the terms and conditions of this Agreement. In this regard, Borrower irrevocably agrees that, during the term of this Agreement, Borrower shall:

7.1.       cause the SMBA and any substitute Accounts to remain in good standing;

7.2.       comply with the Processor or Other Processor Terms of Service in connection with all payments Borrower accepts and processes during the term of this Agreement;

7.3.       provide account statements for any account into which Shopify Account Credits are deposited or transferred, any bank account reflected in Borrower's Shopify Admin, and, on request of the Lender, for any account opened at any time during the performance of this Agreement (including, but not limited to, any other bank accounts associated with other Shopify Services account(s) of Borrower), no later than five (5) business days after Our request. You agree that if You own or operate any other business other than the Shopify Store, You will keep separate accounting records for each business;

7.4.       not take any action that would discourage those making payments to Borrower from paying via a method that settles into the SMBA or permit any event to occur that could have an adverse effect on the making of such payments into the SMBA;

7.5.       not withdraw funds from the SMBA prior to Lender receiving the Daily Payment for such day;

7.6.       not, without Our prior written consent: (a) change Your name (including any d/b/a name), place of business, chief executive office (if applicable), or organizational identification number, if any; (b) change Your type of organization, jurisdiction of organization, or other legal structure; (c) materially change the goods or services sold by the Shopify Store; (d) materially change the nature of the Shopify Store; (e) change the methods by which You accept or process payments; or (f) close the Shopify Store or cease operations (either permanently or temporarily);

7.7.       (a) preserve, renew, and maintain, in full force and effect, Your corporate or organizational existence; (b) take all reasonable action to maintain all rights, privilege,s and franchises necessary or desirable for the normal conduct of Your business; and (c) remain duly qualified, licensed, and in good standing in Your state of organization (if any) and every other state in which You are doing business;

7.8.       not create, incur, or assume any indebtedness or borrow money, except for the Loan and trade debt incurred in the ordinary course of Borrower's business;

7.9.       not create or permit any lien or other encumbrance to be placed on the Collateral, other than in favor of Lender;

7.10.       not permit any event to occur that could cause diversion of: (a) any amounts payable to or from any Account; or (b) the Shopify Account Credits from Lender;

7.11.       maintain all of Your contact information current, including primary electronic mail, Your phone number, and physical address, and notify Lender promptly of any change to Your phone number or physical, electronic mail and/or website address(es);

7.12.       cooperate fully with Lender to take all necessary actions required to effectuate Borrower's obligations hereunder, including, but not limited to, signing any and all documents Lender deems necessary or appropriate;

7.13.       only use the Loan, the SMBA, any substitute Account, and the Shopify Services Account for commercial or business purposes, in the ordinary course of business, and not for personal, family, consumer, or household purposes;

7.14.       not, without Our prior written consent, merge or consolidate with or into any other business entity or enter into any joint venture or partnership with any person, firm, or corporation;

7.15.       be solely responsible for the payment of any fees and charges imposed on Lender with respect to the Accounts or any processing agreement with the Processor or Other Processor;

7.16.       provide promptly to Lender, from time to time at Lender's request, purchase transaction files maintained by Borrower and any other information related to past purchases, Shopify Account Credits, or the transactions contemplated by this Agreement, whether created for the purpose of audit or otherwise, and such information about Your financial condition and operations as We may from time to time reasonably request;

7.17.       maintain on Your property insurance from responsible and reputable companies in such amounts and covering such risks as is prudent and is usually carried by companies engaged in businesses similar to that of Borrower; Borrower shall furnish Lender, on request, with certified copies of insurance policies or other appropriate evidence of compliance with the foregoing covenant;

7.18.       promptly provide notice to Us in writing upon becoming aware of any Event of Default, the occurrence or existence of an event which, with the passage of time or the giving of notice or both, would constitute an Event of Default, or any material adverse change in Your cash flow, business operation, or business ownership;

7.19.       provide to Lender, upon request, documentation confirming the authority of any Authorized Representative;

7.20.       settle or “batch out” Your receipts with Processor or Other Processor on a daily basis; and

7.21.       not make any changes to the SMBA, any other Account, or the Shopify Services Account that would adversely affect Lender.

8.       Events of Default

In addition to the events of default identified elsewhere in this Agreement, You will be in default under this Agreement and an “Event of Default” will be deemed to have occurred if:

8.1.       you fail to pay any of the Total Payment Amount when due;

8.2.       during the term of the Loan, Processor, Other Processor, or Lender initiates transfers for Make-up Payments in connection with more than three separate Daily Payments;

8.3.       you breach any of the representations or warranties made in this Agreement or any other term of this Agreement;

8.4.       you fail to perform or complete any covenant in this Agreement;

8.5.       you make a misrepresentation or omission in connection with your application for a Loan or the servicing of your Loan;

8.6.       you seek to close or terminate Your Shopify Services Account, SMBA, or any substitute Account while there is an Outstanding Total Payment Amount;

8.7.       you become insolvent, file for bankruptcy protection, dissolve, die, or become incapacitated;

8.8.       you attempt to terminate this Agreement while there is an Outstanding Total Payment Amount;

8.9.       you authorize any third party, without Our prior written consent, to divert payments away from Your SMBA or substitute Account;

8.10.       you sell, transfer, or otherwise encumber or attempt to sell, transfer, or otherwise encumber Collateral without Our prior written consent;

8.11.       you sell all or substantially all of Your assets used in the operation of Your business to a third party without Our prior written consent;

8.12.       you become a party to or the subject of any agreement, pursuant to or as a result of, which any person or group of persons acquires, controls, directly or indirectly, Your business, without Our prior written consent;

8.13.       you materially change the operation of Your business (including, without limitation, shutting down or ceasing operations or changing industry, concept, size, etc.) without Our prior written consent;

8.14.       you stop accepting a particular method of payment while You remain open for business;

8.15.       you change Your legal name or jurisdiction of formation or carry-on business through a different business entity without Our prior written consent;

8.16.       a default or other similar event occurs under any other loan agreement or merchant cash advance agreement You have with Lender or an affiliate of Lender;

8.17.       you breach any other agreement you have with Us, the Processor, or Other Processor, including, but not limited to, the Processor Terms of Service, the Shopify Terms of Service, and the Shopify Acceptable Use Policy;

8.18.       you close or suspend your Shopify Services Account;

8.19.       you decide, for whatever reason, to cease doing business; or

8.20.       you take or fail to take an action that hinders Our taking delivery of the Daily Payments or Make-Up Payments.

9.       Consequences of Event of Default

Upon an Event of Default, Lender in its sole and absolute discretion may, in addition to exercising all rights and remedies available under applicable law, and as otherwise set forth in this Agreement, and without waiver of any such rights and remedies:

9.1.       declare the Outstanding Total Payment Amount and any other Obligations or liabilities of Borrower to Lender to be forthwith due and payable immediately. At Our option (subject to any applicable law to the contrary), You agree to pay Lender any and all damages Lender incurs, including, without limitation, reasonable attorney's fees and court costs if permitted by applicable law, in any way relating to the Loan, this Agreement, any Account, any substitute account, or an Event of Default, and agree to hold Lender harmless from any liability it may have to any other person(s) as a result of the Event of Default, the Loan or any Obligation.

9.2.       take any of the following actions, or direct Processor or any Other Processor to take any or all of the following actions on Lender's behalf, in order to enforce Lender's rights to collect from Borrower any amount due and owing as a result of such Event of Default:

9.2.1.       place limitations on and/or deduct funds owed to Lender from any Account; and/or

9.2.2.       offset any amounts You owe under this Agreement against amounts to which You may be entitled under any agreement You have entered into with Us or an affiliate; and/or

9.2.3.       freeze, suspend, halt, terminate, or otherwise cease in any manner, any services We or an affiliate of Ours may provide You or Your affiliates.

10.       Miscellaneous

10.1.       Modifications; Amendments. No modification, amendment, waiver, or consent of any provision of this Agreement will be effective unless it is in writing and signed by the Lender

10.2.       Assignment. We may assign, transfer, or sell Our right to receive the Total Payment Amount or any other rights hereunder or delegate Our duties hereunder, either in whole or in part, without prior notice to You, and without Your consent. Borrower may not assign or transfer its rights and obligations hereunder, either in whole or in part, without prior written consent from Us, which consent We may withhold in Our sole and absolute discretion.

10.3.       Governing Law/Forum. Except as set forth in the Arbitration Provision: (a) this Agreement, any transactions it contemplates, the construction of the terms of the Agreement, and all transactions, and the interpretation, performance, and enforcement of the rights and duties of You and Us, will be governed by and construed in accordance with federal law and, to the extent state law applies, the laws of the State of Utah without regard to conflicts of law principles; and (b) the parties agree that federal law and, to the extent state law applies, the laws of Utah govern the entire relationship between the parties, including, without limitation, all issues or claims arising out of, relating to, in connection with, or incident to this Agreement and any transaction it contemplates, whether such claims are based in tort or contract, or arise under statute or in equity. The parties acknowledge and agree that this Agreement is made and performed in Utah.

10.4.       Survival. Except as set forth in the Arbitration provisions, all provisions of this Agreement, including Section 12, that by their nature are intended to survive Your performance of all obligations hereunder will survive and remain in full force and effect.

10.5.       Waiver; Remedies. We reserve the right, at any time and in Our sole and absolute discretion, not to exercise any of Our other rights under this Agreement and, should We do so, We will not waive Our right to exercise the right as set forth in this Agreement in the future. Without limiting the foregoing, We may, at Our option, accept partial payments without notifying You and without releasing You from Your obligation to pay all amounts owing under this Agreement in full or to otherwise perform the terms and conditions of this Agreement. You understand and agree that Your obligation to pay all amounts owing under this Agreement and otherwise to perform the terms and conditions of this Agreement are absolute and unconditional. No failure on Our part to exercise, and no delay in exercising, any right under this Agreement constitutes a waiver of such right, nor will any single or partial exercise of any right under this Agreement preclude any other or further exercise of that right or the exercise of any other right. The remedies provided in this Agreement are cumulative and not exclusive of any remedies provided by law or equity.

10.6.       Severability. In case any of the provisions in this Agreement are found to be invalid, illegal, or unenforceable in any respect by a court of competent jurisdiction, the validity, legality, and enforceability of any other provision contained herein will not in any way be affected or impaired, and that court will have the power to rewrite that provision to the maximum extent enforceable and the remainder of this Agreement will continue in full force and effect.

10.7.       Counterparts; Electronic Signatures. This Agreement may be signed in one or more counterparts, each of which constitutes an original and all of which when taken together constitute the same agreement. Electronic signatures will be deemed manual signatures, and each party to this Agreement may rely on an electronic signature as an original for purposes of enforcing this Agreement. For the avoidance of doubt, Borrower's acceptance of the Agreement by clicking “Submit Application” will be deemed to constitute such party's electronic signature and effective as a manual signature of each such party.

10.8.       Entire Agreement. This Agreement constitutes the entire agreement between Borrower and Lender relating to this Loan and supersedes any other prior or contemporaneous agreement between You and Us relating to this Loan.

10.9.       Inspection of Place of Borrower. We or Our designated representatives and agents have the right during Your normal business hours and at other reasonable times to examine Your business where located, including the interior and exterior. Any such examination may include, among other things, whether You have a place of business that is separate from any personal residence, are open for business, have sufficient inventory to conduct Your business, and have one or more point-of-sale terminals to process payment transactions. When performing an examination, We or Our designated representatives and agents may photograph the interior and exterior of any of Your places of business, including any signage and may photograph any principals.

10.10.       Publicity. You and each Owner authorize Us to use Your name in a listing of clients and in advertising and marketing materials.

10.11.       Binding Effect. This Agreement is binding upon and inures to the benefit of You and Us and Our respective successors and permitted assigns.

10.12.       Maximum Interest Rate. Regardless of any provisions contained in this Agreement or in any of the other Loan documents, Lender shall never be deemed to have contracted for or be entitled to receive, collect, or apply as interest (whether explicit or deemed to be interest by judicial determination or operation of law) on the Loan, any amount in excess of the maximum rate of interest permitted to be charged by applicable law, and, in the event Lender receives, collects, or applies as interest any such excess, such amount that would be excessive interest shall be deemed to be a partial prepayment of principal and treated hereunder as such, and if the principal balance of the Loan is paid in full, any remaining excess shall forthwith be paid to Borrower. In determining whether or not the interest paid or payable under any specific contingency exceeds the highest lawful rate, Borrower and Lender shall, to the maximum extent permitted under applicable law: (a) characterize any non-principal payment (other than payments that are expressly designated as interest payments hereunder) as an expense, fee, or premium, rather than as interest; (b) exclude voluntary prepayments and the effect thereof; and (c) spread the total amount of interest throughout the entire contemplated term of the Loan so that the interest rate is uniform throughout such term.

10.13.       Headings. Section headings are for convenience of reference only and shall in no way affect the interpretation of this Agreement.

10.14. Information Sharing between Lender, Processor, and Other Processor. You authorize Lender to share with its affiliates, Processor, and Other Processor any information in Lender's records related to this Loan, including information about Your payment history. You also authorize Lender's Processor or Other Processor to share with Lender any information in their records related to Your Shopify Services Account or any Account and any services Borrower obtains pursuant to the Processor or Other Processor. You also authorize Other Processor to share with Lender any information in its records related to any Other Business Credits, any Shopify Services account, and any Other Business Account. You agree that there is no limitation on the purpose for which Lender may share such information with its affiliates, Processor, or Other Processor or for which Lender's affiliates, Processor, or Other Processor may share such information with Lender. You further agree that Lender, Processor, and Other Processor may use such information in their sole and absolute discretion.

10.15. Disclosure.

10.15.1.       Neither party will disclose the other's Confidential Information to any third parties, except that Lender may make any disclosures: (a) contemplated by this Agreement; (b) that are reasonably necessary for consummation of this Agreement; (c) to its affiliates, members, managers, investors, prospective investors, financing sources, and equity holders and any external accountants, agents, attorneys, and other advisors; (d) to Processor or Other Processor; (e) as required or requested by any regulatory authority or examiner; (f) any insurance association; (g) as required by any applicable law, court decree, subpoena, or legal or administrative order or process; (h) in connection with the exercise of any remedy hereunder; or (i) as agreed by Borrower.

10.15.2.       Borrower understands and agrees that the terms and conditions of the products and services offered hereunder, including this Agreement and any other agreement related hereto (“Lender Information”), are proprietary and Confidential Information of Lender. Accordingly, unless disclosure is required by law or court order, Borrower shall not disclose any Lender Information to any other person other than an attorney, accountant or financial advisor who needs to know such information for purposes of advising Borrower; provided such person uses such Lender Information solely for the purposes of advising Borrower and first agrees not to disclose any Lender Information to any person.

10.16.       Credit Reports. Borrower acknowledges that We may report information about Borrower's obligation under this Agreement to credit bureaus. A default under this Agreement may be reflected in Borrower's credit report.

10.17.       Right To Cancel. Within three (3) business days of the Effective Date, You may cancel this Agreement by notifying Us in writing and returning to Lender the full amount advanced by Lender to Your SMBA on the Effective Date. Such notice and return of the amount of the Loan must be received by Us prior to midnight on the third business day after the Effective Date. Instructions for the return of the amount of the Loan will be provided by Lender upon receipt of notice of cancellation.

10.18.       Processor Waiver. You waive and release any and all claims You may have against Processor or Other Processor that are in any way related to its respective duties as a processor.

10.19.       Indemnity; Limitation of Liability. YOU, YOUR SUCCESSORS AND PERMITTED ASSIGNEES AND AFFILIATES, AGREE TO FOREVER PROTECT, INDEMNIFY, AND “HOLD HARMLESS” US, PROCESSOR, OTHER PROCESSOR(S), AND THEIR AND OUR RESPECTIVE SUCCESSORS, ASSIGNS, OFFICERS, DIRECTORS, EMPLOYEES, MANAGERS, MEMBERS, AGENTS, AND AFFILIATES, AGAINST ALL DAMAGES, EXPENSES, CLAIMS, SUITS, DEMANDS, COSTS, ATTORNEYS' FEES OR LOSSES, ARISING OUT OF OR ALLEGED TO HAVE ARISEN OUT OF OR IN CONNECTION WITH YOUR CONDUCT OF YOUR BUSINESS, YOUR PERFORMANCE, OR NON-PERFORMANCE UNDER THIS AGREEMENT, THE DELIVERING OF ANY PAYMENTS TO US AS DESCRIBED IN THIS AGREEMENT AND THE EXERCISE OF ANY OF OUR RIGHTS AS DESCRIBED IN THIS AGREEMENT. IN NO EVENT WILL WE, OUR AFFILIATES, PROCESSOR, OR OTHER PROCESSOR(S) BE LIABLE TO YOU OR TO ANY THIRD PARTY FOR ANY LOSS OF USE, REVENUE OR PROFIT OR LOSS OF DATA OR FOR ANY DIRECT, CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, OR PUNITIVE DAMAGES, WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, REGARDLESS OF WHETHER SUCH DAMAGE WAS FORESEEABLE AND WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

10.20.       Power of Attorney. You grant to Us an irrevocable power of attorney, coupled with an interest, and appoint Us and Our designees as Your attorney-in-fact to take any and all actions necessary or appropriate to direct new or additional processors to make payment to Us as contemplated by this Agreement.

11.       Communications Between You and Lender.

11.1.       Notices. All notices, requests, consents, demands, and other communications hereunder must be in writing and delivered by electronic mail or certified mail, return receipt requested, to the respective parties to this Agreement, in the case of the Borrower, at the Borrower's addresses set forth in the Shopify Admin, and in the case of the Lender to 100 Shockoe Slip, 2nd Floor, Richmond, VA 23219 or capital-support@shopify.com.

11.2.       Consent to Electronic Disclosures. You consent to receive electronically any disclosure, notice, or communication that is required by law to be provided in writing at any email address you provide to Us. You agree to maintain up to date hardware and software that is capable of receiving and retaining such materials, and You also agree to promptly notify Us of any change to your email address so that you can continue to receive such materials from Us.

11.3. Telephone, Text, and Email Servicing Communications. We may use automated telephone dialling, text messaging systems, and electronic mail to provide messages to You about the Loan. The telephone messages may be played by a machine automatically when the telephone is answered, whether answered by You or another party. These messages may also be recorded by Your answering machine or voicemail. You give Us permission to call or send a text message to any telephone number that You or Your Authorized Representative have given Us and to play pre-recorded or artificial messages or send text messages with information about this Agreement, the SMBA or Your Loan over the phone. You also give Us permission to communicate such information to You via electronic mail. You agree that We will not be liable to You for any such calls or electronic communications, even if information is communicated to an unintended recipient. You understand that, when You receive such calls or electronic communications, You may incur a charge from the company that provides You with telecommunications, wireless, and/or Internet services. You agree that We have no liability for such charges. You agree to immediately notify Us if You change telephone numbers or are otherwise no longer the subscriber or customary user of a telephone number You have previously provided to Us.

11.4. Monitoring and Recording. We, Processor, or Other Processor may monitor, tape, or electronically record Our telephone calls with You.

12.       Arbitration Provision with Class Action Waiver.

12.1.       You and We (which for the purposes of this Section 12 includes Shopify Inc. and Shopify Capital Inc.) agree to resolve any and all claims and disputes relating in any way to this Agreement or Our dealings with You (“Claims”), except for Claims concerning the validity, scope, or enforceability of this Section 12 (“Arbitration Provision”), through BINDING INDIVIDUAL ARBITRATION. Notwithstanding the foregoing, You or We may bring an individualized action in small claims court for Claims within the jurisdiction of that court. This Arbitration Provision is made with respect to transactions involving interstate commerce and shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16 (the “FAA”), and not by state law.

12.2.       Individual Arbitration. By entering into this Arbitration Provision, neither You nor We will be able to have the dispute settled by a court or jury trial or to participate in a class action, collective action, class arbitration, or other representative action or proceeding. Other rights that You and We would have if You or We went to court will not be available or will be more limited in arbitration, including the right to appeal. You and We each understand that by agreeing to resolve any dispute through individual arbitration, WE ARE EACH WAIVING THE RIGHT TO A COURT OR JURY TRIAL. YOU AND WE AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN YOUR OR OUR INDIVIDUAL CAPACITY AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING. The arbitrator(s) may not consolidate more than one party's claims and may not otherwise preside over any form of a representative or class proceeding. Further, the arbitrator may award declaratory or injunctive relief only in favor of the individual party seeking relief and only to the extent necessary to provide relief warranted by that party's individual claim. If applicable law precludes enforcement of any of this paragraph's limitations as to a particular claim for relief, then that claim (and only that claim) must be severed from arbitration and may be brought in court. If any portion of this Arbitration Provision other than this paragraph's limitations is deemed invalid or unenforceable, it shall not invalidate the remaining portions of this Arbitration Provision.

12.3.       Arbitration Rules. Arbitration of any dispute under this Arbitration Provision shall be administered by JAMS pursuant to the applicable rules of JAMS in effect at the time the arbitration is initiated. You may contact JAMS to obtain information about arbitration, by calling 800-352-5267 or visiting www.jamsadr.com. If JAMS is unable or unwilling to administer the arbitration of a dispute, then a dispute may be referred to any other arbitration organization You and We agree upon or to an arbitration organization or arbitrator appointed pursuant to section 5 of the FAA. Arbitrations shall be conducted before a single arbitrator. Any in-person arbitration shall take place in the federal judicial district in which Your physical address is located unless otherwise agreed by You and Us in writing. If Your claim is for $10,000 or less, We agree that You may choose whether the arbitration will be conducted solely on the basis of documents submitted to the arbitrator, through a telephonic hearing, or by an in-person hearing as established by the JAMS rules. If Your claim exceeds $10,000, the right to a hearing will be determined by the JAMS rules.

12.4.       Regardless of the manner in which the arbitration is conducted, the arbitrator shall issue a reasoned written decision sufficient to explain the essential findings and conclusions on which the award is based. The arbitrator shall apply applicable substantive law consistent with the FAA and applicable statutes of limitations and shall be authorized to award any relief that would have been available in court, provided that the arbitrator's authority to resolve claims and make awards is limited to You and Us alone, except as otherwise specifically stated herein. The decision by the arbitrator shall be final and binding. You and We agree that this Arbitration Provision extends to any other parties involved in any Claims, including but not limited to Your and Our employees, affiliated companies, and vendors. In the event of any conflict between this Arbitration Provision and the JAMS arbitration rules or the rules of any other arbitration organization or arbitrator, this Arbitration Provision shall govern.

12.5.       Arbitration Fees and Costs. Except as otherwise provided for herein, We will pay all JAMS filing, administration, and arbitrator fees. If, however, the arbitrator finds that either the substance of Your claim or the relief sought in Your arbitration demand is frivolous or brought for an improper purpose (as measured by the standards set forth in Federal Rule of Civil Procedure 11(b)), then the payment of such fees will be governed by the JAMS rules. In such case, You agree to reimburse Us for all monies previously disbursed by Us that are otherwise Your obligation to pay under the JAMS rules. In addition, if You initiate an arbitration in which You seek more than $75,000 in damages, the payment of these fees will be governed by the JAMS rules.

12.6.       Arbitration Provision Is Optional. YOU HAVE THE RIGHT TO REJECT THIS ARBITRATION PROVISION, BUT YOU MUST EXERCISE THIS RIGHT PROMPTLY. If You do not wish to be bound by this agreement to arbitrate, You must notify Us in writing within sixty (60) days after the date of this Agreement. You must send Your request to: 100 Shockoe Slip, 2nd Floor Richmond, VA 23219, or to contract_notices@shopify.com. The request must include Your full name, address, Shopify Store name, d/b/a name (if applicable), and the statement “I reject the Arbitration Provision contained in my Shopify Loan Agreement.” If You exercise Your right under this Section 12.6 to reject arbitration, the other terms of this Agreement shall remain in full force and effect as if You had not rejected arbitration. Opting out of this Arbitration Provision has no effect on any other or future arbitration agreements that You may have with Us.

13.       Register.

13.1.       You agree that Lender, on Your behalf, may maintain a register in order to record the amount of Your Loan and the current or future owner of Your Loan (including any assignee, participant or transferee, if any, who becomes the subsequent owner of any portion of Your Loan) (the “Register”). The parties hereto agree that the entity whose name is recorded in the Register as the current owner of Your Loan is treated as the owner of Your Loan. The Register must be updated for any transfer of ownership of Your Loan to occur.

13.2.       By clicking on “Submit Application” You are signing this Agreement electronically. You agree that your electronic signature is the equivalent of a physical signature. You further agree, on behalf of Your business First Person Inc., as Borrower, to the terms of this Agreement, which includes an arbitration and waiver of class action provision, and You agree that You are an Authorized Representative of Borrower and acknowledge that You received a copy of this Agreement.

EX-10.23

Exhibit 10.23

CLOUDFUND LLC

400 Rella Blvd. Suite 165-101, Suffern, NY 10901

FUTURE RECEIPTS SALE AND PURCHASE AGREEMENT

This agreement (this “Agreement”), dated 12/19/2022, between CLOUDFUND LLC (“Buyer”) and the seller(s) listed herein (collectively, the “Seller”) (all capitalized terms shall have the meanings ascribed to them below):

Business Legal Name: FIRST PERSON INC

D/B/A: FIRST PERSON d/b/a FIRST PERSON LTD

Form of Business Entity: Corporation EIN #: [***]

Physical Address: 3900 W ALAMEDA AVE, BURBANK, CA 91505

Mailing Address: 3900 W ALAMEDA AVE, BURBANK, CA 91505

PURCHASE PRICE:	PURCHASED AMOUNT:	SPECIFIED PERCENTAGE:
$200,000.00	$272,000.00	5%

REMITTANCE AMOUNT:*	REMITTANCE PERIOD:
$2,092.31	DAILY

LESS CLOSING COSTS :

DUE DILIGENCE FEE:	ORIGINATION FEE:	UCC FEE:
$0.00	$10,000.00	$0.00

LEss PRIOR BALANCE(s) (IF APPLICABLE)

$0.00

NET AMOUNT FUNDED TO SELLER:

$190,000.00

FOR THE SELLER #1		FOR THE SELLER #2
By:	/s/ CORY ROSENBERG	By:
Name:	CORY ROSENBERG	Name:	N/A
Title:	Owner/Agent/Manager	Title:	N/A
Email:	CORY.ROSENBERG@FIRSTPERSONGROUP.COM	Email:	N/A
Business Phone:	[***]	Business Phone:	N/A

*Please refer to Section 13 of this Agreement to learn how the Remittance Amount can be changed.

Concurrently with the execution of this Agreement by seller, and as condition to the effectiveness hereof, seller has caused the Personal Guarantee of Performance in the form attached hereto as “Exhibit A” (the “Guaranty”) to be signed and delivered to Buyer by the following Owner(s)/Guarantor(s) of seller.

OWNER/GUARANTOR #1		OWNER/GUARANTOR #2
By:	/s/ CORY ROSENBERG	By:
Name:	CORY ROSENBERG	Name:	N/A
SSN:	[***]	SSN:	N/A
Phone:	[***]	Phone:	N/A
Address:	[***]	Address:	N/A

Furthermore, in the event the seller and/or Guarantor are comprised of more than one entity and/or individuals, then ALL such entities and/or individuals, respectively, shall sign the Addendum to this Agreement in the form attached hereto as Exhibit B (the “Addendum”).

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WHEREAS, Seller is desirous to sell to Buyer, and Buyer is desirous to purchase from Seller a Specified Percentage of the Seller’s Future Receipts, but only on the terms and conditions set forth in this Agreement.

NOW, THEREFORE, for good and valuable consideration, the mutual receipts and sufficiency of which is hereby acknowledged by both parties, Buyer and Seller hereby agree to the foregoing and as follows:

1. Basic Terms and Definitions.

a. “Effective Date” shall mean the later of: (i) the date set forth in the preamble to this Agreement, and (ii) the date when Buyer paid the Net Amount Funded to Seller.

b. “Specified Percentage” is the percentage identified above and refers to a percentage of each and every sale made by Seller until the Purchased Amount is delivered to Seller.

c. “Future Receipts” shall mean, collectively, all of Seller’s receipts for the sale of goods and services after the Effective Date of this Agreement; which payments or deliveries of monies can be made in the form of cash, check, credit, charge, or debit card, Automated Clearing House (“ACH”) or other electronic transfer or any other form of monetary payment and/or pecuniary benefit received by Seller.

d. “Periodic Receipts” shall mean the amount of Future Receipts received by Seller during each Remittance Period.

e. “Purchased Amount” is the amount identified above and refers to the total amount of Future Receipts that Seller shall be under obligation to deliver to Buyer pursuant to this Agreement.

f. “Purchase Price” is the amount identified above and refers to the total amount that Buyer agrees to pay for the Purchased Amount. Seller acknowledges that the amount that Seller will actually receive from Buyer pursuant to this Agreement will be the Net Amount Funded to Seller.

g. “Closing Costs” shall mean, collectively, all initial costs and fees that identified above and in Section 16 that Seller agrees to pay to Buyer as consideration for agreeing to enter into this Agreement.

h. “Net Amount Funded to Seller” is the amount identified above and refers to the Purchase Price less the total Closing Costs identified above and in Section 16 and less Prior Balance identified above and in Section 17.

i. “Remittance Amount” shall mean the amount that Seller shall deliver to Buyer at the end of each Remittance Period as part of the Purchased Amount. The initial Remittance Amount is the amount first described above. The parties agree that the initial Remittance Amount is a good faith approximation of the Specified Percentage of Seller’s Future Receipts during the first Remittance Period, based upon the information provided by Seller to Buyer concerning Seller’s most recent accounts receivables, including representations by the Seller to Buyer regarding the Seller’s estimated Future Receipts. The Remittance Amount is subject to Seller’s right of adjustment/reconciliation set forth in this Agreement.

j. “Remittance Period” shall mean the daily or weekly period by the end of which a Remittance Amount shall be delivered by Seller to Buyer.

k. “Workday” shall mean Monday through Friday except on days when banking institutions are closed for the holidays and do not process ACH payments.

l. “Prior Balance” shall mean the sum of all amounts that Seller may owe to Buyer and/or third party(s) as of the Effective Date of this Agreement. Seller agrees that: (i) the Prior Balance, if any, as described in Section 17 of this Agreement, will be deducted from the Purchase Price prior to delivering it to Seller pursuant to Seller’s authorization set forth in Rider 1 to this Agreement; and (ii) such deduction of the Prior Balance shall not be deemed to reduce the agreed upon Purchase Price.

m “Origination Fee” shall mean the fee that Seller and a Broker have agreed to in conjunction with brokering this Agreement, which amount Seller authorizes Buyer to withhold from the Purchase Price and pay to said Broker. The Origination Fee, if any, is described in Section 17 of this Agreement and will be deducted from the Purchase Price prior to delivering it to Seller pursuant to Seller’s authorization set forth in Section 19.

n. In the event “Seller” is comprised of more than one entity, then:

i. The term “Seller” shall mean, individually and collectively, interchangeably, all such entities; and

ii. Each Seller is an “Affiliate” of all other Seller(s). The term “Affiliate” shall mean an entity or an individual that (1) controls, (2) is under the “Control”, or (3) is under common Control with the entity or individual in question. The term “Control” shall mean direct or indirect ownership of more than 50% of the outstanding voting stock of a corporation or other majority equity interest if not a corporation and the possession of power to direct or cause the direction of the management and policy of such corporation or other entity, whether through ownership of voting securities, by stature, or by contract; and

iii. The representations, warranties, covenants, obligations and liabilities of each Seller shall be joint and several under this Agreement; and

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iv. The liability of each Seller under this Agreement shall be direct and immediate and shall not be conditional or contingent upon the pursuance of any remedies against any other person or entity; and

v. The terms “Specified Percentage”, “Future Receipts”, “Periodic Receipts”, “Remittance Amount” shall mean the Specified Percentage, the Future Receipts and the Periodic Receipts of each Seller individually; and

vi. Buyer may pursue its rights and remedies under this Agreement against any one or any number of entities that constitute Seller without obligation to assert, prosecute or exhaust any remedy or claim against any other Seller or any Guarantor.

o. In the event “Guarantor” is comprised of more than one individual, then:

i. The term “Guarantor” shall mean, individually and collectively, all such individuals; and

ii. Each Guarantor is an Affiliate of all other Guarantor(s); and

iii. The representations, warranties, covenants, obligations and liabilities of each Guarantor shall be joint and several under this Agreement and the Guaranty; and

iv. The liability of each Guarantor under this Agreement and the Guaranty shall be direct and immediate and shall not be conditional or contingent upon the pursuance of any remedies against any other person or entity; and

v. Buyer may pursue its rights and remedies under this Agreement and/or Guaranty against any one or any number of individuals that constitute Guarantor without obligation to assert, prosecute or exhaust any remedy or claim against any other Guarantor or any Seller.

2. The Term. This Agreement for the purchase and sale of Future Receipts does not have a fixed duration or term, which is indefinite. Subject to the provisions of Sections 10-13 hereof, the term of this Agreement shall commence on the Effective Date and terminate on the earlier of: (i) the date (the “Termination Date”) when the Purchased Amount and all other sums due to Buyer pursuant to this Agreement are received by Buyer in full; and (ii) when Seller’s performance has been excused pursuant to Section 16(b).

3. Non-Recourse Sale of Purchased Future Receipts. Seller hereby sells, assigns, transfers and conveys (hereinafter, the “Sale”) unto Buyer all of Seller’s right, title and interest in to the Specified Percentage of the Future Receipts until the Purchased Amount shall have been delivered by Seller to Buyer (hereinafter, the portion of the Future Receipts sold by Seller to Buyer pursuant to this Agreement, the “Purchased Future Receipts”); to have and hold the same unto Buyer, its successors and assigns, forever. This Sale of the Purchased Future Receipts is made without express or implied warranty to Buyer of collectability of the Purchased Future Receipts by Buyer and without recourse against Seller and/or Guarantor(s), except as specifically set forth in this Agreement. By virtue of this Agreement, Seller transfers to Buyer full and complete ownership of the Purchased Future Receipts and Seller retains no legal or equitable interest therein.

4. Payment of Purchase Price. In consideration of the sale by Seller to Buyer of the Purchased Future Receipts pursuant to this Agreement, Buyer agrees to pay to Seller the Purchase Price by delivering the Net Funded Amount to Seller after execution of this Agreement.

5. Use of Purchase Price. Seller hereby acknowledges that it fully understands that: (i) Buyer’s ability to collect the Purchased Amount (or any portion thereof) is contingent upon Seller’s continued operation of its business and successful generation of the Future Receipts until the Purchased Amount is delivered to Buyer in full; and (ii) that in the event of decreased efficiency or total failure of Seller’s business, Buyer’s receipt of the full or any portion of the Purchased Amount may be delayed indefinitely. Based upon the forgoing, Seller agrees to use the Purchase Price exclusively for the benefit and advancement of Seller’s business operations and for no other purpose.

6. Delivery of Purchased Amount. The Purchased Amount shall be delivered by Seller to Buyer in the amount of the Remittance Amount (subject adjustment as described below) at the end of each Remittance Period, commencing on the Effective Date and ending on the Termination Date. Buyer reserves the right to apply amounts received by it under this Agreement to any fees or other charges due to Buyer from Seller prior to applying such amounts to reduce the outstanding undelivered balance of the Purchased Amount.

7. Approved Bank Account and Credit Card Processor. During the term of this Agreement, Seller shall: (i) deposit all Future Receipts into one (and only one) bank account which bank account shall be acceptable and preapproved by Buyer (the “Approved Bank Account”), (ii) use one (and only one) credit card processor which processor shall be acceptable and preapproved by Buyer (the “Approved Processor”) and (iii) deposit all credit card receipts into the Approved Bank Account. In the event the Approved Bank Account or Approved Processor shall become unavailable or shall cease providing services to Seller during the term of this Agreement, prior to the first date of such unavailability or cessation of services, Seller shall arrange for another Approved Bank Account or Approved Processor, as the case may be.

8. Authorization to Debit Approved Bank Account. Seller hereby authorizes Buyer, and/or Delta Bridge Funding LLC

(as servicing agent for this Agreement) to initiate electronic checks or ACH debits from the Approved Bank Account (which as of the Effective Date of this Agreement shall be the account listed on Appendix A hereto) in the amount of the Remittance Amount at the end of each Remittance Period commencing on the Effective Date until Buyer receives the full Purchased Amount (the “ACH Authorization”). This ACH Authorization shall be irrevocable until such time when Seller shall have performed its obligations under this Agreement in full. Seller acknowledges that the origination of ACH entries to and from the Approved Bank Account must comply with applicable law and applicable network rules. Seller agrees to be bound by the Rules and Operating Guidelines of NACHA . Seller will not dispute any ACH entry initiated pursuant to this ACH Authorization, provided the transaction corresponds to the terms of this authorization. Seller requests the financial institution that holds the Approved Bank Account to honor all ACH entries initiated in accordance with this ACH Authorization. If requested by Buyer, Seller shall execute a separate authorization for Buyer and/or Delta Bridge Funding LLC to arrange for electronic fund transfers (including ACH payments) in the amount of any Remittance Amount from the Approved Bank Account. Seller shall provide Buyer and/or its authorized agent with all information, authorizations and passwords necessary to verify Seller’s receivables, receipts and deposits into the Approved Bank Account.

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9. Shortage of Funds and Fees Associated with Debiting Approved Bank Account. It shall be Seller’s exclusive responsibility to pay to its banking institution and/or Buyer’s banking institution directly (or to compensate Buyer, in case it is charged) all fees, charges and expenses incurred by either Seller or Buyer due to rejected electronic checks or ACH debit attempts, overdrafts or rejections by Seller’s banking institution of the transactions contemplated by this Agreement, including without limitation a $35.00 charge per bounced or rejected ACH debit.

10. Seller’s Right for Reconciliation. Seller and Buyer each acknowledges and agrees that:

a. If at any time during the term of this Agreement Seller will experience unforeseen decrease or increase in its Periodic Receipts, then so long as Seller is not then in default under the terms of this Agreement, Seller shall have the right, at its sole and absolute discretion, but subject to the provisions of Section 11 below, to request retroactive reconciliation of the Remittance Amounts paid during one (1) or more full calendar month(s) immediately preceding the day when such request for reconciliation is received by Buyer (each such calendar month for which a reconciliation is requested, a “Reconciliation Month”).

b. Such reconciliation (the “Reconciliation”) of the Seller’s Remittance Amounts for one or more Reconciliation Month(s) shall be performed by Buyer within five (5) Workdays following its receipt of the Seller’s request for Reconciliation by either crediting or debiting the difference back to, or from, the Approved Bank Account so that the total amount debited by Buyer from the Approved Bank Account during the Reconciliation Month(s) at issue is equal to the Specific Percentage of the Future Receipts that Seller collected during the Reconciliation Month(s) at issue.

c. One or more Reconciliation procedures performed by Buyer may reduce or increase the effective Remittance Amount during the Reconciliation Month in comparison to the initial Remittance Amount first described in this Agreement, and, as the result of such reduction, the term of this Agreement during which Buyer will be debiting the Approved Bank Account may be shortened or extended indefinitely.

11. Request for Reconciliation Procedure.

a. It shall be Seller’s sole responsibility and the right hereunder to initiate Reconciliation of Seller’s actual Remittance Amounts during any Reconciliation Month by sending a request for Reconciliation to Buyer.

b. Any such request for Reconciliation of the Seller’s Remittance Amounts for specific Reconciliation Month(s) shall be in writing, shall state the Reconciliation Month(s) for which Reconciliation is requested, and shall include copies of Seller’s bank statement(s) and credit card processing statements for each Reconciliation Month at issue, and shall be received by Buyer via email to customerservice@approvalandreconciliation.com, with the subject line “REQUEST FOR RECONCILIATION” or by other means (to be provided to Seller by Buyer upon request).

c. Reconciliation cannot be made two or more times for the same Reconciliation Month.

d. Commencing in the calendar month immediately following the Effective Date of this Agreement, Seller shall have the right to request Reconciliation as many times during the term of this Agreement as it deems proper, and Buyer shall comply with each such request, provided that each such request is made in accordance with the terms of this Section 11.

e. Nothing set forth in Sections 10 or 11 of this Agreement shall be deemed to: (i) provide Seller with the right to interfere with Buyer’s right and ability to debit the Approved Bank Account while the request for Reconciliation of Seller’s receipts is pending or until the Purchased Amount is collected by Buyer in full, or (ii) modify the Remittance Amount for any calendar month during the term of this Agreement other than during the Reconciliation Month(s) as the result of the Reconciliation.

12. Adjustment of the Remittance Amount. Seller and Buyer each acknowledge and agree that:

a. If at any time during the term of this Agreement Seller experiences a steady decrease in its Periodic Receipts, and so long as Seller is not in default under the terms of this Agreement, Seller shall have the right, at its sole and absolute discretion, but subject to the provisions of Section 13 below, to request modification (“Adjustment”) of the amount of the Remittance Amount that Seller is obligated to deliver to Buyer at the end of each Remittance Period to more closely reflect the Seller’s actual Periodic Receipts multiplied by the Specified Percentage (the “Adjusted Remittance Amount”). Buyer shall provide such Adjustment within five (5) Workdays following its receipt of the Seller’s request for Adjustment. The Adjustment shall become effective as of the date it is performed and the Adjusted Remittance Amount shall replace and supersede the amount of the initial Remittance Amount first described above for thirty (30) days from and including the date it is granted. Upon the expiration of such 30-day period the amount of the Remittance Amount shall automatically revert back to the amount of the initial Remittance Amount, absent an additional request for Adjustment at the expiry of the 30-day period pursuant to this Section 12.

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b. The parties acknowledge that any Adjustment that reduces the initial Remittance Amount may have the effect of extending the period of time needed for Seller to deliver the entire Purchased Amount to Buyer.

13. Request for Adjustment Procedure.

a. It shall be Seller’s sole responsibility and the right to initiate the Adjustment by sending a request for Adjustment to Buyer.

b. A request for Adjustment (an “Adjustment Request”) shall be in writing, and shall include copies of Seller’s last three (3) consecutive bank statements of the Approved Bank Account and credit card processing statements immediately preceding the date of Buyer’s receipt of the Adjustment Request. The Adjustment Request must be received by Buyer by email at customerservice@approvalandreconciliation.com, with the subject line “REQUEST FOR ADJUSTMENT” within thirty (30) days after the date that is the later of (i) the last day of the latest bank statement enclosed with the Adjustment Request and (ii) the last date of the latest credit card processing statement enclosed with the Adjustment Request.

c. Buyer’s receipt of a Seller’s Adjustment Request after the expiration of the above referenced thirty (30) day period nullifies and makes obsolete such Adjustment Request.

d. Seller shall have the right to request Adjustment of the initial Remittance Amount (or any Adjusted Remittance Amount, as the case may be) as many times during the term of this Agreement as it deems proper, and Buyer shall comply in good faith with such request, provided that:

i. Each such request for Adjustment is made in accordance with the terms of this Section 13; and

ii. No Adjustment shall be made after the Termination Date.

e. Nothing set forth in Sections 12 or 13 of this Agreement shall be deemed to provide Seller with the right to (i) interfere with Buyer’s right and ability to debit the Approved Bank Account while the request for Adjustment is pending or until the Purchased Amount is collected by Buyer in full or (ii) request Adjustment retroactively for the portion of the term of this Agreement preceding the date of an Adjustment Request.

14. Buyer’s Assumption of Risk.

a. Nonrecourse Sale of Future Receipts. Seller is selling a portion of a future revenue stream to Buyer at a discount, not borrowing money from Buyer. There is no interest rate or payment schedule and no time period during which the Purchased Amount must be collected by Buyer. Seller acknowledges that it has no right to repurchase the Purchased Amount from Buyer. Buyer assumes the risk that Future Receipts may be remitted more slowly than Buyer may have anticipated or projected because Seller’s business has slowed down, and the risk that the full Purchased Amount may never be remitted because Seller’s business went bankrupt or Seller otherwise ceased operations in the ordinary course of business, to the extent not cause by Seller’s breach of this Agreement. Buyer is buying the Purchased Amount of Future Receipts knowing the risks that Seller’s business may slow down or fail, and Buyer assumes these risks based on Seller’s representations, warranties and covenants in this Agreement that are designed to give Buyer a reasonable and fair opportunity to receive the benefit of its bargain. By this Agreement, Seller transfers to Buyer full and complete ownership of the Purchased Amount of Future Receipts and Seller retains no legal or equitable interest therein. Seller agrees that it will treat the Purchase Price and Purchased Amount in a manner consistent with a sale in its accounting records and tax returns. Seller agrees that Buyer is entitled to audit Seller’s accounting records upon reasonable Notice in order to verify compliance. Seller waives any rights of privacy, confidentiality or taxpayer privilege in any such litigation or arbitration in which Seller asserts that this transaction is anything other than a sale of future receipts.

b. Excused Performance. Buyer agrees to purchase the Purchased Future Receipts knowing the risks that Seller’s business may slow down or fail, and Buyer assumes this risk based exclusively upon the information provided to it by Seller and related to the business operations of Seller’s business prior to the date hereof, and upon Seller’s representations, warranties and covenants contained in this Agreement that are designed to give Buyer a reasonable and fair opportunity to receive the benefit of its bargain. Furthermore, Buyer hereby acknowledges and agrees that Seller shall be excused from performing its obligations under this Agreement in the event Seller’s business ceases its operations exclusively due to the following reasons:

i. adverse business conditions or other circumstances that occurred for reasons outside Seller’s control;

ii. loss of the premises where the business operates (but not due to Seller’s breach of its obligations to its landlord), provided however that Seller does not continue and/or resume business operations at another location;

iii. bankruptcy of Seller; and/or

iv. natural disasters or similar occurrences beyond Seller’s control.

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15. Fees and Charges to Buyer (“Closing Costs). Seller acknowledges that any Due Diligence fee, or UCC fees and described above as “Closing Costs” were agreed upon between Seller and Buyer prior to Seller entering into this Agreement, and were subject to arms-length negotiation between Buyer and Seller.

16. Origination Fee. Seller acknowledges that any Origination Fee disclosed above as a “Closing Cost” was agreed upon between Seller and a third-party broker for services related to this Seller’s transaction with Buyer. Buyer is not a party to any agreement between Seller and its broker. Seller hereby requests and authorizes Buyer to withhold the Origination Fee from the Purchase Price, and to remit the Origination Fee to such broker.

17. Prior Balance of Purchased Amounts. Seller represents and warrants that Rider 1, which is attached hereto and made a part hereof, contains true and correct information as to the name(s) of Seller’s creditors and the amounts that Seller owes each of those creditors as of the Effective Date (and these amounts being a portion of the Prior Balance of Purchased Amounts), and that as of the date hereof there are no creditors of Seller which may otherwise encumber the Purchased Future Receipts other than those listed in Rider 1. Seller indemnifies and holds harmless Buyer for any and all damages and losses (including without limitation legal fees and expenses) incurred by Buyer as the result of such representation being untrue, incorrect or incomplete.

18. No Reduction of Purchase Price. Seller agrees that deduction of the Closing Costs, the Prior Balance and the Origination Fee from the Purchase Price shall not be deemed to be a reduction of the Purchase Price.

REPRESENTATIONS, WARRANTIES AND COVENANTS

19. Seller represents, warrants and covenants that as of this date and unless expressly stated otherwise during the term of this Agreement:

a. Financial Condition and Financial Information. Seller’s bank and financial statements, copies of which have been furnished to Buyer, and future statements which may be furnished hereafter pursuant to this Agreement or upon Buyer’s request, fairly represent the financial condition of Seller as of the dates such statements were issued, and prior to execution of the Agreement there has been no material adverse changes, financial or otherwise, in such condition, operation or ownership of Seller. Seller shall advise Buyer of any material adverse change in its financial condition, operation or ownership, and/or online banking log-in credentials. Buyer may request Seller’s bank statements at any time during the term of this Agreement and Seller shall provide them to Buyer within five (5) Workdays.

b. Governmental Approvals. Seller is in compliance and, during the term of this Agreement, shall be in compliance with all laws and has valid permits, authorizations and licenses to own, operate and lease its properties and to conduct the business in which it is presently engaged.

c. Good Standing. Seller is a corporation/limited liability company/limited partnership/other type of entity that is in good standing and duly incorporated or otherwise organized and validly existing under the laws of its jurisdiction of incorporation or organization, and has full power and authority necessary to carry its business as it is now being conducted.

d. Authorization. Seller has all requisite power to execute, deliver and perform this Agreement and consummate the transactions contemplated hereunder; entering into this Agreement will not result in breach or violation of, or default under, any agreement or instrument by which Seller is bound or any statute, rule, regulation, order or other law to which Seller is subject, nor require the obtaining of any consent, approval, permit or license from any governmental authority having jurisdiction over Seller. All organizational and other proceedings required to be taken by Seller to authorize the execution, delivery and performance of this Agreement have been taken. The person signing this Agreement on behalf of Seller has full power and authority to bind Seller to perform its obligations under this Agreement.

e. Accounting Records and Tax Returns. Seller will treat receipt of the Net Amount Funded to Seller and payment of the Purchased Amount in a manner evidencing sale of its Future Receipts in its accounting records and tax returns and further agrees that Buyer is entitled to audit Seller’s accounting records upon reasonable notice in order to verify compliance. Seller hereby waives any rights of privacy, confidentiality or taxpayer privilege in any litigation or arbitration arising out of this Agreement in which Seller asserts that this transaction is anything other than a sale of Future Receipts.

f. Taxes; Workers Compensation Insurance. Seller has paid and will promptly pay, when due, all taxes, including without limitation, income, employment, sales and use taxes, imposed upon Seller’s business by law, and will maintain workers compensation insurance required by applicable governmental authorities.

g. Business Insurance. Seller maintains and will maintain general liability and business-interruption insurance naming Buyer as loss payee and additional insured in the amounts and against risks as are satisfactory to Buyer and shall provide Buyer with proof of such insurance upon request.

h. Approved Processor and Bank. Seller shall not change its Approved Processor, add terminals, change its Approved Bank Account(s) or take any other action that could have any adverse effect upon Seller’s obligations or impede Buyer’s rights under this Agreement, without Buyer’s prior written consent.

i. No Diversion of Future Receipts. Seller shall not allow any event to occur that would cause a diversion of any portion of Seller’s Future Receipts from the Approved Bank Account or Approved Processor without Buyer’s written consent.

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j. Change of Name or Location. Seller, any successor-in-interest of Seller, and Guarantor shall not conduct Seller’s businesses under any name other than as disclosed to the Approved Processor and Buyer, shall not change and/or transfer ownership in/of the Seller and will not change any of its places of business without first obtaining Buyer’s written consent.

k. Prohibited Business Transactions. Seller shall not: (i) transfer or sell all or substantially all of its assets without first obtaining Buyer’s consent; or (ii) make or send notice of its intended bulk sale or transfer.

l. No Closing of Business. Seller will not sell, dispose, transfer or otherwise convey all or substantially all of its business or assets without first: (i) obtaining the express written consent of Buyer, and (ii) providing Buyer with a written agreement of a purchaser or transferee of Seller’s business or assets to assume all of Seller’s obligations under this Agreement pursuant to documentation satisfactory to Buyer. Seller represents that as of the date of Seller’s execution of this Agreement it has no current plans to close its business either temporarily (for renovations, repairs or any other purpose), or permanently. Seller agrees that until Buyer shall have received the Purchased Amount in full, Seller will not voluntarily close its business on a permanent or temporarily basis for renovations, repairs, or any other purposes. Notwithstanding the foregoing, Seller shall have the right to close its business temporarily if such closing is necessitated by a requirement to conduct renovations or repairs imposed upon Seller’s business by legal authorities having jurisdiction over Seller’s business (such as from a health department or fire department), or if such closing is necessitated by circumstances outside Seller’s reasonable control. Prior to any such temporary closure of its business, Seller shall provide Buyer ten (10) business days advance notice to the extent practicable.

m. No Pending Bankruptcy. As of the date of Seller’s execution of this Agreement, Seller has not filed, and does not contemplate filing, any petition for bankruptcy protection under Title 11 of the United States Code and there has been no involuntary bankruptcy petition brought or pending against Seller. Seller represents that it has not consulted with a bankruptcy attorney on the issue of filing bankruptcy or some other insolvency proceeding within six months immediately preceding the date of this Agreement.

n. Estoppel Certificate. Seller will at any time, and from time to time, upon at least one (1) day’s prior notice from Buyer to Seller, execute, acknowledge and deliver to Buyer and/or to any other person or entity specified by Buyer, a statement certifying that this Agreement is unmodified and in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified and stating the modification(s) and stating the date(s) on which the Purchased Amount or any portion thereof has been repaid.

o. Unencumbered Future Receipts. Seller has and will continue to have good, complete and marketable title to all Future Receipts, free and clear of any and all liabilities, liens, claims, changes, restrictions, conditions, options, rights, mortgages, security interests, equities, pledges and encumbrances of any kind or nature whatsoever or any other rights or interests other than by virtue or entering into this Agreement. Seller specifically warrants and represents that it is not currently bound by the terms of any future receivables and/or factoring agreement which may encumber in any way the Future Receipts.

p. No Stacking. Seller shall not further encumber the Future Receipts, without first obtaining written consent of Buyer.

q. Business Purpose. Seller is entering into this Agreement solely for business purposes and not as a consumer for personal, family or household purposes.

r. No Default Under Contracts with Third Parties. Seller’s execution of and/or performance of its obligations under this Agreement will not cause or create an event of default by Seller under any contract, which Seller is or may become a party to.

s. Right of Access. In order to ensure Seller’s compliance with the terms of this Agreement, Seller hereby grants Buyer the right to enter, without notice, the premises of Seller’s business for the purpose of inspecting and checking Seller’s transaction processing terminals to ensure the terminals are properly programmed to submit and/or batch Seller’s Periodic Receipts to the Approved Processor and to ensure that Seller has not violated any other provision of this Agreement. Furthermore, Seller hereby grants Buyer and its employees and consultants access to Seller’s employees and records and all other items of property located at the Seller’s place of business during the term of this Agreement. Seller hereby agrees to provide Buyer, upon request, all and any information concerning Seller’s business operations, banking relationships, names and contact information of Seller’s suppliers, vendors and landlord(s), to allow Buyer to interview any of those parties.

t. Phone Recordings and Contact. Seller agrees that any call between Seller and Buyer, and their respective owners, managers, employees and agents may be recorded and/or monitored. Furthermore, Seller acknowledges and agrees that: (i) it has an established business relationship with Buyer, its managers, employees and agents (collectively, the “Buyer Parties”) and that Seller may be contacted by any of the Buyer Parties from time-to-time regarding Seller’s performance of its obligations under this Agreement or regarding other business transactions; (ii) it will not claim that such communications and contacts are unsolicited or inconvenient; and (iii) any such contact may be made by any of the Buyer Parties in person or at any phone number (including mobile phone number), email addresses, or facsimile number belonging to Seller’s office, or its owners, managers, officers, or employees.

u. Knowledge and Experience of Decision Makers. The persons authorized to make management and financial decisions on behalf Seller with respect to this Agreement have such knowledge, experience and skill in financial and business matters in general and with respect to transactions of a nature similar to the one contemplated by this Agreement so as to be capable of evaluating the merits and risks of, and making an informed business decision with regard to, Seller entering into this Agreement.

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v. Seller’s Due Diligence. The person authorized to sign this Agreement on behalf of Seller: (i) has received all information that such person deemed necessary to make an informed decision with respect to a transaction contemplated by this Agreement; and (ii) has had unrestricted opportunity to make such investigation as such person desired pertaining to the transaction contemplated by this Agreement and verify any such information furnished to him or her by Buyer.

w. Consultation with Counsel. The person(s) signing this Agreement of behalf of Seller: (a) has read and fully understands the content of this Agreement; (b) has consulted to the extent he/she wished with Seller’s own counsel in connection with the entering into this Agreement; (c) has made sufficient investigation and inquiry to determine whether this Agreement is fair and reasonable to Seller, and whether this Agreement adequately reflects his or her understanding of its terms.

x. No Reliance on Oral Representations. No course of performance or other conduct subsequently pursued or acquiesced in, and no oral agreement or representation subsequently made, by the Buyer Parties, whether or not relied or acted upon, and no usage of trade, whether or not relied or acted upon, shall amend this Agreement or impair or otherwise affect Seller’s obligations pursuant to this Agreement or any rights and remedies of the parties to this Agreement.

y. No Additional Fees Charged. Seller hereby acknowledges and agrees that: (i) other than the Closing Costs first described above, if any, Buyer is NOT CHARGING ANY ADDITIONAL FEES OR CLOSING COSTS to Seller; and (ii) if Seller is charged with any fee and/or cost not described in the Closing Costs hereof, such fee is not charged by Buyer.

20. Acknowledgment of Security Interest and Security Agreement. The Future Receipts sold by Seller to Buyer pursuant to this Agreement shall constitute and shall be construed and treated for all purposes as a true and complete sale, conveying good title to the Future Receipts free and clear of any liens and encumbrances, from Seller to Buyer. To the extent the Future Receipts are “accounts” or “payment intangibles” as those terms are defined in the Uniform Commercial Code as in effect in the state in which the Seller is located (“UCC”) then: (i) the sale of the Future Receipts creates a security interest as defined in the UCC; (ii) this Agreement constitutes a “security agreement” under the UCC; and (iii) Buyer has all the rights of a secured party under the UCC with respect to such Future Receipts. Seller further agrees that, with or without an Event of Default, Buyer may notify account debtors, or other persons obligated on the Future Receipts, or holding the Future Receipts, of Seller’s sale of the Future Receipts and may instruct them to make payment or otherwise render performance to or for the benefit of Buyer.

21. Pledge. As security for the prompt and complete payment and performance of any and all liabilities, obligations, covenants or agreements of Seller under this Agreement (and any future amendments of this Agreement, if any) (hereinafter referred to collectively as the “Obligations”), Seller hereby pledges, assigns and hypothecates to Buyer (collectively, “Pledge”) and grants to Buyer a continuing, perfected and first priority lien upon and security interest in, to and under all of Seller’s right, title and interest in and to the following (collectively, the “Collateral”), whether now existing or hereafter from time to time acquired:

i. all accounts, including without limitation, all deposit accounts, accounts-receivable, and other receivables, chattel paper, documents, equipment, general intangibles, instruments, and inventory, as those terms are defined by Article 9 of the Uniform Commercial Code (the “UCC”), now or hereafter owned or acquired by Seller; and

ii. all Seller’s proceeds, as such term is defined by Article 9 of the UCC.

22. Termination of Pledge. Upon the payment and performance by Seller in full of the Obligations, the security interest in the Collateral pursuant to this Pledge shall automatically terminate without any further act of either party being required, and all rights to the Collateral shall revert to Seller. Upon any such termination, Buyer will execute, acknowledge (where applicable) and deliver such satisfactions, releases and termination statements, as Seller shall reasonably request.

23. Financing Statements. Seller authorizes Buyer to file one or more UCC-1 forms consistent with the UCC to give notice that the Purchased Amount of Future Receipts is the sole property of Buyer. The UCC filing may state that such sale is intended to be a sale and not an assignment for security and may state that the Seller is prohibited from obtaining any financing that impairs the value of the Future Receipts or Buyer’s right to collect same. Seller authorizes Buyer to debit the Account for all costs incurred by Buyer associated with the filing, amendment or termination of any UCC filings.

24. Further Assurances. At Buyer’s request, Seller, at Seller’s sole cost and expense, shall execute and deliver all such further UCC-1s, continuation statements, assurances, assignments, and consents with respect to the sale of the Purchased Amount, and shall execute and deliver such further instruments, agreements and other documents and do such further acts and things, as Buyer may request in order to more fully effectuate the purposes of this Agreement.

EVENTS OF DEFAULT AND REMEDIES

25. Events of Default. The occurrence of any of the following events shall constitute an “Event of Default”: (a) Seller interferes with Buyer’s right to collect the Remittance Amount; (b) Seller violates any term or covenant in this Agreement; (c) Seller uses multiple depository accounts without the prior written consent of Buyer; (d) Seller revokes the ACH Authorization; (e) Seller changes its depositing account or its payment card processor without the prior written consent of Buyer; (f) Seller defaults under any other agreement with Buyer, or breaches any of the terms, covenants and conditions of any other agreement with Buyer, or (g) Seller causes four (4) or more ACH transactions attempted by Buyer during any thirty-day period during the term of this Agreement to be rejected by Seller’s bank.

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26. Remedies. If any Event of Default occurs, Buyer may proceed to protect and enforce its rights including, but not limited to, the following:

a. The Specified Percentage shall equal 100%. The full undelivered Purchased Amount plus all fees and charges (including legal fees) assessed under this Agreement will become due and payable in full immediately.

b. The Remittance Amount shall equal 100% of all Future Receipts.

c. Buyer may enforce the provisions of any Guaranty against each Guarantor.

d. Seller shall pay to Buyer all reasonable costs associated with the Event of Default. Buyer may proceed to protect and enforce its rights and remedies by arbitration or lawsuit. In any such arbitration or lawsuit, under which Buyer shall recover Judgment against Seller, Seller shall be liable for all of Buyer’s costs, including but not limited to all reasonable attorneys’ fees and court costs. However, the rights of Buyer under this provision shall be limited as provided in the arbitration provision set forth on arbitration below.

e. This Agreement shall be deemed Seller’s Assignment of Seller’s Lease of Seller’s business premises to Buyer. Upon an Event of Default, Buyer may exercise its rights under this Assignment of Lease without prior notice to Seller.

f. Buyer may debit Seller’s depository accounts wherever situated by means of ACH debit or facsimile signature on a computer-generated check drawn on any of Seller’s bank accounts for all sums due to Buyer.

g. Subject to arbitration as provided in Section 44 of this Agreement, all rights, powers and remedies of Buyer in connection with this Agreement may be exercised at any time by Buyer after the occurrence of an Event of Default, are cumulative and not exclusive, and shall be in addition to any other rights, powers or remedies provided by law or equity.

27. Remedies are not Exclusive. All rights, powers and remedies of Buyer in connection with this Agreement set forth herein may be exercised at any time after the occurrence of any Event of Default, are cumulative and not exclusive and shall be in addition to any other rights, powers or remedies provided to Buyer by law or equity.

28. Power of Attorney. Seller irrevocably appoints Buyer and its representatives as its agents and attorneys-in-fact with full authority to take any action or execute any instrument or document to do the following: (A) to settle all obligations due to Buyer from any credit card processor and/or account debtor(s) of Seller; (B) upon occurrence of an Event of Default to perform any and all obligations of Seller under this Agreement, including without limitation (i) to obtain required insurance; (ii) to collect monies due or to become due under or in respect of any of the Collateral; (iii) to receive, endorse and collect any checks, notes, drafts, instruments, documents or chattel paper in connection with clause (i) or clause (ii) above; (iv) to sign Seller’s name on any invoice, bill of lading, or assignment directing customers or account debtors, as that term is defined by Article 9 of the UCC (“Account Debtors”), to make payment directly to Buyer (including providing information necessary to identify Seller); and (v) to file any claims or take any action or institute any proceeding which Buyer may deem necessary for the collection of any of the undelivered Purchased Amount, or otherwise to enforce its rights with respect to collection of the Purchased Amount.

ADDITIONAL TERMS

29. Financial Condition. Seller and its Guarantor(s) authorize Buyer and its agents to investigate their financial status and history, and will provide to Buyer any bank or financial statements, tax returns, etc., as Buyer deems necessary prior to or at any time after execution of this Agreement. A photocopy of this authorization will be deemed as acceptable for release of financial information. Buyer Seller hereby authorizes Buyer to receive from time to time updates on such information and financial status.

30. Transactional History. Seller shall execute written authorization(s) to their bank(s) to provide Buyer with Seller’s banking and/or credit-card processing history.

31. Indemnification. Seller and its Guarantor(s) jointly and severally, indemnify and hold harmless to the fullest extent permitted by law Approved Processor, any ACH processor, customer and/or Account Debtors of the Seller, its/their officers, directors and shareholders against all losses, damages, claims, liabilities and expenses (including reasonable attorney’s fees) incurred by any ACH processor, customer and/or Account Debtors of the Seller resulting from (a) claims asserted by Buyer for monies owed to Buyer from Seller and (b) actions taken by any ACH processor, customer and/or Account Debtor of the Seller in reliance upon information or instructions provided by Buyer.

32. No Liability. In no event shall Buyer be liable for any claims asserted by Seller or any Guarantor under any legal theory for lost profits, lost revenues, lost business opportunities, exemplary, punitive, special, incidental, indirect or consequential damages, each of which is hereby knowingly and voluntarily waived by Seller each Guarantor.

MISCELLANEOUS

33. Modifications; Agreements. No modification, amendment, waiver or consent of any provision of this Agreement shall be effective unless the same shall be in writing and signed by both parties.

34. Assignment. Buyer may assign, transfer or sell its rights or delegate its duties hereunder, either in whole or in part without prior notice to the Seller. Seller shall not assign its rights or obligations under this Agreement without first obtaining Buyer’s written consent.

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35. Notices. Unless different means of delivering notices are set forth elsewhere in this Agreement, all notices, requests, consent, demands and other communications hereunder shall be delivered by certified mail, return receipt requested, to the respective parties to this Agreement at the addresses set forth in this Agreement and shall become effective as of the date of receipt or declined receipt.

36. Waiver Remedies. No failure on the part of Buyer to exercise, and no delay in exercising, any right under this Agreement, shall operate as a waiver thereof, nor shall any single or partial exercise of any right under this Agreement preclude any other or further exercise thereof or the exercise of any other right. The remedies provided hereunder are cumulative and not exclusive of any remedies provided by law or equity.

37. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.

38. Governing Law, Venue and Jurisdiction. This Agreement shall be governed by and construed exclusively in accordance with the laws of the State of New York, without regards to any applicable principles of conflicts of law. Any lawsuit, action or proceeding arising out of or in connection with this Agreement shall be instituted exclusively in any court sitting in New York, (the “Acceptable Forums”). The parties agree that the Acceptable Forums are convenient, and submit to the jurisdiction of the Acceptable Forums and waive any and all objections to inconvenience of the jurisdiction or venue. Should a proceeding be initiated in any other forum, each of the parties to this Agreement irrevocably waives any right to oppose any motion or application made by any other party to transfer such proceeding to an Acceptable Forum. Seller and each Guarantor acknowledge and agree that the Purchase Price is being paid and received by Seller in New York, that the Specified Percentage of the Future Receipts are being delivered to Buyer in New York, and that the transaction contemplated in this Agreement was negotiated, and is being carried out, in New York. Seller and each Guarantor acknowledge and agree that New York has a reasonable relationship to this transaction.

39. Survival of Representation, etc. All representations, warranties and covenants herein shall survive the execution and delivery of this Agreement and shall continue in full force until all obligations under this Agreement shall have been satisfied in full and this Agreement shall have expired.

40. Severability. In case any of the provisions in this Agreement are found to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of any other provision contained herein shall not in any way be affected or impaired. Any provision of this Agreement that may be found by a court having jurisdiction to be prohibited by law shall be ineffective only to the extent of such prohibition without invalidating the remaining provisions hereof.

41. Entire Agreement. This Agreement (including any exhibits, riders, or addenda) embodies the entire agreement between Seller, each Guarantor and Buyer and supersedes all prior agreements and understandings relating to the subject matter hereof.

42. JURY TRIAL WAIVER. THE PARTIES HERETO WAIVE TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION OR PROCEEDING ON ANY MATTER ARISING IN CONNECTION WITH OR IN ANY WAY RELATED TO THE TRANSACTIONS OF WHICH THIS AGREEMENT IS A PART OR THE ENFORCEMENT HEREOF. EACH PARTY HERETO ACKNOWLEDGES THAT IT MAKES THIS WAIVER KNOWINGLY, WILLINGLY AND VOLUNTARILY AND WITHOUT DURESS, AND ONLY AFTER EXTENSIVE CONSIDERATION AND DISCUSSIONS OF THE RAMIFICATIONS OF THIS WAIVER WITH ITS ATTORNEYS.

43. CLASS ACTION WAIVER. EACH PARTY HERETO WAIVES ANY RIGHT TO ASSERT ANY CLAIMS AGAINST THE OTHER PARTY, AS A REPRESENTATIVE OR MEMBER IN ANY CLASS OR REPRESENTATIVE ACTION, EXCEPT WHERE SUCH WAIVER IS PROHIBITED BY LAW OR IS AGAINST PUBLIC POLICY. TO THE EXTENT EITHER PARTY IS PERMITTED BY LAW OR COURT OF LAW TO PROCEED WITH A CLASS OR REPRESENTATIVE ACTION AGAINST THE OTHER, THE PARTIES HEREBY AGREE THAT: (1) THE PREVAILING PARTY SHALL NOT BE ENTITLED TO RECOVER ATTORNEYS’ FEES OR COSTS ASSOCIATED WITH PURSUING THE CLASS OR REPRESENTATIVE ACTION (NOTWITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT TO THE CONTRARY); AND (2) THE PARTY WHO INITIATES OR PARTICIPATES AS A MEMBER OF THE CLASS WILL NOT SUBMIT A CLAIM OR OTHERWISE PARTICIPATE IN ANY RECOVERY SECURED THROUGH THE CLASS OR REPRESENTATIVE ACTION.

44. ARBITRATION. THE PARTIES ACKNOWLEDGE AND AGREE THAT, PROVIDED THAT NO SUIT, ACTION OR PROCEEDING HAS BEEN ALREADY COMMENCED IN CONNECTION WITH ANY MATTER ARISING OUT OF OR RELATED TO THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT, EACH BUYER SELLER, AND ANY GUARANTOR OF SELLER SHALL HAVE THE RIGHT TO REQUEST THAT ALL DISPUTES AND CLAIMS ARISING OUT OF OR RELATING TO THE CONSTRUCTION AND INTERPRETATION OF THIS AGREEMENT, ARE SUBMITTED TO ARBITRATION. THE PARTY SEEKING ARBITRATION SHALL FIRST SEND A WRITTEN NOTICE OF INTENT TO ARBITRATE TO ALL OTHER PARTIES, BY CERTIFIED MAIL UPON SENDING OF SUCH NOTICE, A PARTY REQUESTING ARBITRATION MAY COMMENCE AN ARBITRATION PROCEEDING WITH THE AMERICAN ARBITRATION ASSOCIATION (“AAA”) OR NATIONAL ARBITRATION FORUM (“NAF”). EACH SELLER, GUARANTOR AND BUYER SHALL PAY THEIR OWN ATTORNEYS’ FEES INCURRED DURING THE ARBITRATION PROCEEDING. THE PARTY INITIATING THE ARBITRATION SHALL PAY ANY ARBITRATION FILING FEE, ADMINISTRATION FEE AND ARBITRATOR’S FEE. FURTHER, BUYER, SELLER AND ANY GUARANTOR AGREE THAT IN THE EVENT THE ARBITRATION HAS COMMENCED, THE ARBITRATOR MAY NOT CONSOLIDATE PROCEEDINGS FOR MORE THAN ONE PERSON’S CLAIMS, AND MAY NOT OTHERWISE PRESIDE OVER ANY FORM OF A REPRESENTATIVE OR CLASS PROCEEDING, AND THAT IF THIS SPECIFIC PROVISION DEALING WITH THE PROHIBITION ON CONSOLIDATED, CLASS OR AGGREGATED CLAIMS IS FOUND UNENFORCEABLE, THEN THE ENTIRETY OF THIS ARBITRATION CLAUSE SHALL BE NULL AND VOID. THIS AGREEMENT TO ARBITRATE IS GOVERNED BY THE FEDERAL ARBITRATION ACT AND NOT BY ANY STATE LAW REGULATING THE ARBITRATION OF DISPUTES. THIS AGREEMENT IS FINAL AND BINDING EXCEPT TO THE EXTENT THAT AN APPEAL MAY BE MADE UNDER THE FAA. ANY ARBITRATION DECISION RENDERED PURSUANT TO THIS ARBITRATION AGREEMENT MAY BE ENFORCED IN ANY COURT WITH JURISDICTION. THE TERMS “DISPUTES” AND “CLAIMS” SHALL HAVE THE BROADEST POSSIBLE MEANING.

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45. SERVICE OF PROCESS. IN ADDITION TO THE METHODS OF SERVICE ALLOWED BY THE NEW YORK STATE CIVIL PRACTICE LAW & RULES (“CPLR”), SELLER HEREBY CONSENTS, IN THE EVENT OF DEFAULT HEREUNDER, TO SERVICE OF PROCESS UPON IT BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED. SERVICE HEREUNDER SHALL BE DEEMED COMPLETED UPON SELLER’S ACTUAL RECEIPT OF THE SERVICE OF PROCESS OR UPON BUYER’S RECEIPT OF THE RETURN THEREOF BY THE UNITED STATES POSTAL SERVICE AS REFUSED OR UNDELIVERABLE. SELLER MUST PROMPTLY NOTIFY BUYER, IN WRITING, OF EACH AND EVERY CHANGE OF ADDRESS TO WHICH SERVICE OF PROCESS SHALL BE MADE. SERVICE OF PROCESS BY BUYER TO THE LAST KNOWN SELLER’S ADDRESS SHALL BE SUFFICIENT. SELLER WILL HAVE THIRTY (30) CALENDAR DAYS FROM THE DATE OF DELIVERY (OR ATTEMPTED DELIVERY) OF THE SERVICE OF PROCESS HEREUNDER IN WHICH TO RESPOND. FURTHERMORE, SELLER EXPRESSLY CONSENTS THAT ANY AND ALL NOTICE(S), DEMAND(S), REQUEST(S) OR OTHER COMMUNICATION(S) UNDER AND PURSUANT TO THIS AGREEMENT SHALL BE DELIVERED IN ACCORDANCE WITH THE PROVISIONS OF THIS AGREEMENT.

46. Counterparts and Facsimile Signatures. This Agreement can be signed in one or more counterparts, each of which shall constitute an original and all of which when taken together, shall constitute one and the same agreement. Signatures delivered via facsimile and/or via Portable Digital Format (PDF) shall be deemed acceptable for all purposes, including without limitation the evidentially purposes. Furthermore, this Agreement may be signed electronically and a copy this Agreement with e-signatures of the parties shall have the same force and effect as the original.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written.

FOR THE SELLER		FOR THE SELLER
By:	/s/ CORY ROSENBERG	By:
Name:	CORY ROSENBERG	Name:	N/A
Title:	Owner/Agent/Manager	Title:	N/A
EIN:	[***]	EIN:	N/A

AGREE TO BE BOUND BY THE PROVIONS OF THIS AGREEMENT APPLICABLE TO AND CONCERNING GUARANTOR

OWNER/GUARANTOR #1		OWNER/GUARANTOR #2
By:	/s/ CORY ROSENBERG	By:
Name:	CORY ROSENBERG	Name:	N/A
SSN:	[***]	SSN:	N/A

CLOUDFUND LLC

By:

Name:

Title:

Page 11 of 15

EXHIBIT A

PERSONAL GUARANTY OF PERFORMANCE

This Personal Guaranty of Performance (this “Guaranty”) is executed as of 12/19/2022, by the undersigned individual(s) whose name(s) and signature(s) appear in the signature box of this Guaranty (individually and collectively, jointly and severally, “Guarantor”) for the benefit of CLOUDFUND LLC (“Buyer”).

WHEREAS:

A. Pursuant to that Future Receipts Sale and Purchase Agreement (the “Agreement”), dated as of 12/19/2022, between Buyer and the Seller(s) listed below (collectively and individually, “Seller”), Buyer has purchased a portion of Future Receipts of Seller.

THE SELLER:

Legal Business Name: FIRST PERSON INC

D/B/A: FIRST PERSON d/b/a FIRST PERSON LTD

B. Each Guarantor is an owner, officer, or manager of Seller and will directly benefit from Buyer and Seller entering into the Agreement.

C. Buyer is not willing to enter into the Agreement unless Guarantor irrevocably, absolutely and unconditionally guarantees to Buyer prompt and complete performance of all of the obligations of Seller under the Agreement (each such obligation, individually, an “Obligation” and all such obligations, collectively, the “Obligations”).

NOW, THEREFORE, as an inducement for Buyer to enter into the Agreement, and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, Guarantor does hereby agree as follows:

1. Defined Terms. All capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in the Agreement.

2. Guaranty of Obligations. Guarantor hereby irrevocably, absolutely and unconditionally guarantees to Buyer prompt, full, faithful and complete performance and observance of the following obligations of Seller (the “Guaranteed Obligations”);

a. Seller’s obligation to provide bank statements and other financial information within five Workdays after request from Buyer;

b. Seller’s obligation to not change its payment card processor, change the Approved Bank Account, or add bank accounts;

c. Seller’s obligation to not conduct Seller’s businesses under any name other than as disclosed to Buyer;

d. Seller’s obligation to not change any of its places of business without prior written consent by Buyer;

e. Seller’s obligation to not voluntarily sell, dispose, transfer or otherwise convey its business or substantially all business assets without (i) the express prior written consent of Buyer, and (ii) the written agreement of any purchaser or transferee assuming all of Seller’s obligations under this Agreement pursuant to documentation satisfactory to Buyer;

f. Seller’s obligation to not enter into any merchant cash advance or any loan agreement that relates to or encumbers its Future Receipts with any party other than Buyer for the duration of this Agreement without Buyer’s prior written consent;

g. Seller’s obligation not to interfere with Buyer’s right to withdraw the Remittance Amount from Seller’s bank account;

h. Seller’s obligation not to cause rejection by Seller’s bank of the ACH transactions attempted by Buyer; and

i. Seller’s obligation to provide truthful, accurate, and complete information as required by this Agreement.

Furthermore, Guarantor unconditionally covenants to Buyer that if default or breach shall at any time be made by Seller in the Guaranteed Obligations, Guarantor shall well and truly perform (or cause to be performed) the Guaranteed Obligations and pay all damages and other amounts stipulated in the Agreement with respect to the non-performance of the Guaranteed Obligations, or any of them.

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3. Guarantor’s Additional Covenants. The liability of Guarantor hereunder shall not be impaired, abated, deferred, diminished, modified, released, terminated or discharged, in whole or in part, or otherwise affected, by any event, condition, occurrence, circumstance, proceeding, action or failure to act, with or without notice to, or the knowledge or consent of, Guarantor, including, without limitation:

a. any amendment, modification or extension of the Agreement or any Guaranteed Obligation;

b. any extension of time for performance, whether in whole or in part, of any Guaranteed Obligation given prior to or after default thereunder;

c. any exchange, surrender or release, in whole or in part, of any security that may be held by Buyer at any time under the Agreement;

d. any other guaranty now or hereafter executed by Guarantor or anyone else;

e. any waiver of or assertion or enforcement or failure or refusal to assert or enforce, in whole or in part, any Guaranteed Obligation, claim, cause of action, right or remedy which Buyer may, at any time, have under the Agreement or with respect to any guaranty or any security which may be held by Buyer at any time for or under the Agreement or with respect to the Seller;

f. .. any act or omission or delay to do any act by Buyer which may in any manner or to any extent vary the risk of Guarantor or which would otherwise operate as a discharge of Guarantor as a matter of law;

g. .. the release of any other guarantor from liability for the performance or observance of any Guaranteed Obligation, whether by operation of law or otherwise;

h. the failure to give Guarantor any notice whatsoever;

i. any right, power or privilege that Buyer may now or hereafter have against any person, entity or collateral.

4. Guarantor’s Other Agreements. Guarantor will not dispose, convey, sell or otherwise transfer, or cause Seller to dispose, convey, sell or otherwise transfer, any material business assets of Seller outside of the ordinary course of Seller’s business without the prior written consent of Buyer, which consent may be withheld for any reason, until receipt of the entire Purchased Amount. Guarantor shall pay to Buyer upon demand all expenses (including, without limitation, reasonable attorneys’ fees and disbursements) of, or incidental to, or relating to the enforcement or protection of Buyer’s rights hereunder or Buyer’s rights under the Agreement. This Guaranty is binding upon Guarantor and Guarantor’s heirs, legal representatives, successors and assigns and shall inure to the benefit of and may be enforced by the successors and assigns of Buyer. If there is more than one Guarantor, the Guaranteed Obligations shall be joint and several. The obligation of Guarantor shall be unconditional and absolute, regardless of the unenforceability of any provision of any agreement between Seller and Buyer, or the existence of any defense, setoff or counterclaim, which Seller may assert. Buyer is hereby authorized, without notice or demand and without affecting the liability of Guarantor hereunder, to at any time renew or extend Seller’s obligations under the Agreement or otherwise modify, amend or change the terms of the Agreement. Guarantor is hereby notified and consents that a negative credit report reflecting on his/her credit record may be submitted to a credit-reporting agency if the Guarantor does not honor the terms of this Guaranty. Guarantor additionally consents to the ordering of a credit report for Guarantor (a) as a condition precedent to Buyer entering into this Agreement, (b) from time to time during the entire Term of the Agreement, and (c) in the event of default pursuant to the Agreement.

5. Waiver; Remedies. No failure on the part of Buyer to exercise, and no delay in exercising, any right under this Guaranty shall operate as a waiver, nor shall any single or partial exercise of any right under this Guaranty preclude any other or further exercise of any other right. Subject to arbitration, the remedies provided in this Guaranty are cumulative and not exclusive of any remedies provided by law or equity. In the event that Seller fails to perform any obligation under the Agreement, Buyer may enforce its rights under this Guaranty without first seeking to obtain performance for such default from Seller or any other guarantor.

6. Acknowledgment of Purchase. Guarantor acknowledges and agrees that the Purchase Price paid by Buyer to Seller in exchange for the Purchased Amount of Future Receipts is a payment for an adequate consideration and is not intended to be treated as a loan or financial accommodation from Buyer to Seller. Guarantor specifically acknowledges that Buyer is not a lender, bank or credit card processor, and that Buyer has not offered any loans to Seller, and Guarantor waives any claims or defenses of usury in any action arising out of this Guaranty. Guarantor acknowledges that the Purchase Price paid to Seller is good and valuable consideration for the sale of the Purchased Amount.

7. Governing Law and Jurisdiction. This Guaranty shall be governed by, and constructed in accordance with, the internal laws of the State of New York without regard to principles of conflicts of law. Except as provided in Section 10 of this Guaranty, Guarantor submits to the nonexclusive jurisdiction and venue of any state or federal court sitting in New York or otherwise having jurisdiction over this Guaranty and Guarantor, for resolution of any claim or action arising, directly or indirectly, out of or related to this Guaranty. The parties stipulate that the venues referenced in this Agreement are convenient. The parties further agree that the mailing by certified or registered mail, return receipt requested, of any process required by any such court will constitute valid and lawful service of process against them, without the necessity for service by any other means provided by statute or rule of court, but without invalidating service performed in accordance with such other provisions. Guarantor acknowledges and agrees that the Purchase Price is being paid and received by Seller in New York, that the Specified Percentage of the Future Receipts are being delivered to Buyer in New York, and that the transaction contemplated in this Guaranty was negotiated, and is being carried out, in New York. Guarantor acknowledges and agrees that it is guaranteeing a New York agreement and transaction. Guarantor acknowledges and agrees that New York has a reasonable relationship to this transaction.

Page 13 of 15

8. JURY WAIVER. THE PARTIES WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION OR PROCEEDING ON ANY MATTER ARISING IN CONNECTION WITH OR IN ANY WAY RELATED TO THE TRANSACTIONS OF WHICH THIS GUARANTY IS A PART OR ITS ENFORCEMENT, EXCEPT WHERE SUCH WAIVER IS PROHIBITED BY LAW OR DEEMED BY A COURT OF LAW TO BE AGAINST PUBLIC POLICY. THE PARTIES ACKNOWLEDGE THAT EACH MAKES THIS WAIVER KNOWINGLY, WILLINGLY AND VOLUNTARILY AND WITHOUT DURESS, AND ONLY AFTER EXTENSIVE CONSIDERATION OF THE RAMIFICATIONS OF THIS WAIVER WITH THEIR ATTORNEYS.

9. CLASS ACTION WAIVER. THE PARTIES WAIVE ANY RIGHT TO ASSERT ANY CLAIMS AGAINST THE OTHER PARTY AS A REPRESENTATIVE OR MEMBER IN ANY CLASS OR REPRESENTATIVE ACTION, EXCEPT WHERE SUCH WAIVER IS PROHIBITED BY LAW OR DEEMED BY A COURT OF LAW TO BE AGAINST PUBLIC POLICY. TO THE EXTENT EITHER PARTY IS PERMITTED BY LAW OR COURT OF LAW TO PROCEED WITH A CLASS OR REPRESENTATIVE ACTION AGAINST THE OTHER, THE PARTIES AGREE THAT: (I) THE PREVAILING PARTY SHALL NOT BE ENTITLED TO RECOVER ATTORNEYS’ FEES OR COSTS ASSOCIATED WITH PURSUING THE CLASS OR REPRESENTATIVE ACTION (NOT WITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT); AND (II) THE PARTY WHO INITIATES OR PARTICIPATES AS A MEMBER OF THE CLASS WILL NOT SUBMIT A CLAIM OR OTHERWISE PARTICIPATE IN ANY RECOVERY SECURED THROUGH THE CLASS OR REPRESENTATIVE ACTION.

10. ARBITRATION. THE PARTIES ACKNOWLEDGE AND AGREE THAT, PROVIDED THAT NO SUIT, ACTION OR PROCEEDING HAS BEEN ALREADY COMMENCED IN CONNECTION WITH ANY MATTER ARISING OUT OF OR RELATED TO THIS GUARANTY AND/OR THE TRANSACTION CONTEMPLATED BY THE AGREEMENT, EACH BUYER, SELLER AND GUARANTOR SHALL HAVE THE RIGHT TO REQUEST THAT ALL DISPUTES AND CLAIMS ARISING OUT OF OR RELATING TO THE CONSTRUCTION AND/OR INTERPRETATION OF THIS GUARANTY ARE SUBMITTED TO ARBITRATION. THE PARTY SEEKING ARBITRATION SHALL FIRST SEND A WRITTEN NOTICE OF INTENT TO ARBITRATE TO ALL OTHER PARTIES, BY CERTIFIED MAIL. UPON SENDING OF SUCH NOTICE, A PARTY REQUESTING ARBITRATION MAY COMMENCE AN ARBITRATION PROCEEDING WITH THE AMERICAN ARBITRATION ASSOCIATION (“AAA”) OR NATIONAL ARBITRATION FORUM (“NAF”). EACH SELLER, GUARANTOR AND BUYER SHALL PAY THEIR OWN ATTORNEYS’ FEES INCURRED DURING THE ARBITRATION PROCEEDING. THE PARTY INITIATING THE ARBITRATION SHALL PAY ANY ARBITRATION FILING FEE, ADMINISTRATION FEE AND ARBITRATOR’S FEE.

11. SERVICE OF PROCESS. IN ADDITION TO THE METHODS OF SERVICE ALLOWED BY THE NEW YORK STATE CIVIL PRACTICE LAW & RULES (“CPLR”), GUARANTOR HEREBY CONSENTS, IN THE EVENT OF DEFAULT HEREUNDER, TO SERVICE OF PROCESS UPON HIM/HER/THEM BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED. SERVICE HEREUNDER SHALL BE DEEMED COMPLETED UPON GUARANTOR’S ACTUAL RECEIPT OF THE SERVICE OF PROCESS OR UPON BUYER’S RECEIPT OF THE RETURN THEREOF BY THE UNITED STATES POSTAL SERVICE AS REFUSED OR UNDELIVERABLE. GUARANTOR SHALL PROMPTLY NOTIFY BUYER, IN WRITING, OF EACH AND EVERY CHANGE OF ADDRESS TO WHICH SERVICE OF PROCESS SHALL BE MADE. SERVICE OF PROCESS BY BUYER TO THE LAST KNOWN GUARANTOR’S ADDRESS SHALL BE SUFFICIENT. GUARANTOR WILL HAVE THIRTY (30) CALENDAR DAYS FROM THE DATE OF DELIVERY (OR ATTEMPTED DELIVERY) OF THE SERVICE OF PROCESS HEREUNDER IN WHICH TO RESPOND. FURTHERMORE, GUARANTOR EXPRESSLY CONSENTS THAT ANY AND ALL NOTICE(S), DEMAND(S), REQUEST(S) OR OTHER COMMUNICATION(S) UNDER AND PURSUANT TO THIS AGREEMENT SHALL BE DELIVERED IN ACCORDANCE WITH THE PROVISIONS OF THIS AGREEMENT.

12. Severability. If for any reason any court of competent jurisdiction finds any provisions of this Guaranty to be void or voidable, the parties agree that the court may reform such provision(s) to render the provision(s) enforceable ensuring that the restrictions and prohibitions contained in this Guaranty shall be effective to the fullest extent allowed under applicable law.

13. Opportunity for Attorney Review. The Guarantor represents that he/she has carefully read this Guaranty and has had had a reasonable opportunity to, - and to the extent he or she wishes did, - consult with his or her attorney. Guarantor understands the contents of this Guaranty, and signs this Guaranty as his or her free act and deed.

Page 14 of 15

14. Counterparts and Facsimile Signatures. This Guaranty may be signed in one or more counterparts, each of which shall constitute an original and all of which when taken together shall constitute one and the same agreement. Facsimile or scanned documents shall have the same legal force and effect as an original and shall be treated as an original document for evidentiary purposes. Furthermore, this Guaranty may be signed electronically and a copy this Guaranty with e-signature of the Guarantor shall have the same force and effect as the original.

AGREED AND ACCEPTED:

OWNER/GUARANTOR #1:		OWNER/GUARANTOR #2:
By:	/s/ CORY ROSENBERG	By:
Name:	CORY ROSENBERG	Name:	N/A
SSN:	[***]	SSN:	N/A

OWNER/GUARANTOR #3:
By:
Name:	N/A
SSN:	N/A

CLOUDFUND LLC

By:

Name:

Title:

Page 15 of 15

APPENDIX A

ACH Authorization Form

All information on this form is required unless otherwise noted.

Business Authorized to Debit/Credit Account (the “Buyer”)

Authorized Business Name: CLOUDFUND LLC

Authorized Business Phone Number: 1-800-770-9525

Authorized Business Address: 400 Rella Blvd. Suite 165-101, Suffern, NY 10901

Business Information (the “Seller”):

Business Name: FIRST PERSON INC

Business DBA: FIRST PERSON d/b/a FIRST PERSON LTD

Business Phone: [***]

Account Holder Address: 3900 W ALAMEDA AVE, BURBANK, CA 91505

Account Holder’s Bank Information:

Name of Bank: TORREY PINES BK, A DIV OF W ALLIANCE
Bank Routing Number: [***]
Bank Account Number: [***]

Transaction Information:

Amount of Transaction: $2,092.31

Effective Date: 12/19/2022

Rate of collection: Daily

Authorization:

Pursuant to that certain Future Receipts Sale and Purchase Agreement dated 12/19/2022 between Buyer and Seller (the “Agreement”), Seller authorizes Buyer and/or Delta Bridge Funding LLC, its authorized agent, to electronically draft via the Automated Clearing House system up to the amount(s) indicated above from the account(s) identified above (the “Approved Bank Account”) on or after the Effective Date, and agrees to be bound by the ACH Rules as set forth by NACHA (The Electronic Payments Association). The Undersigned hereby certifies that they are duly authorized to execute this form on behalf of the above listed account holder.

NOTE that this authorization is to remain in full force and effect until Buyer and/or Delta Bridge Funding LLC, its authorized agent, receives written notification from Seller of its termination in such time and in such manner to afford Buyer a reasonable opportunity to act on it; provided, however, that revocation of this authorization prior to remittance of the balance under the Agreement may constitute a breach of the Agreement.

FOR THE SELLER
By:	/s/ CORY ROSENBERG
Date: Dec 19, 2022
Name of Account Holder: CORY ROSENBERG
Title of Account Holder: OWNER

EX-10.24

Exhibit 10.24

POLICY INFORMATION

Definitions: Wherever the word “Policy” or “Policies” is used in this Payment Agreement, “PA”, unless otherwise defined herein, it means the policy(ies) listed on the SCHEDULE OF POLICIES within the Notice of Acceptance. Wherever the word “we” or “us” or “our” is used in this Agreement, it means the undersigned Insured/Borrower or, if there is more than one Insured/Borrower, the undersigned Insureds/Borrowers, jointly and severally. “Imperial PFS Canada” means Imperial PFS Payments Canada, ULC and its successors and assigns. Wherever the words “Insurance Company” or “Insurance Companies” are used in this Agreement, they mean the insurance companies listed on the SCHEDULE OF POLICIES within the Notice of Acceptance. Interpretation: In this PA, words indicating the singular shall include the plural and vice versa, and words indicating one gender shall include all genders.

AGREEMENTS OF INSURED/BORROWER

In consideration of Imperial PFS Canada’s commitment to finance and the premium payments being financed by Imperial PFS Canada to the Insurance Companies on our behalf and with our authority, we, THE INSURED/BORROWER, HEREBY:

1. Promise to pay to Imperial PFS Canada the Balance plus Plan Cost to be made in accordance with the Payment Details, subject to the provisions set forth in this PA, whether or not any or all of the Policies are terminated for any reason and acknowledge that included in the Balance may be amounts of applicable taxes and fees and if so included, the word “premium” when used in this PA shall be interpreted to include any such amounts.

2. Assign by way of security to Imperial PFS Canada all unearned premiums, all dividends and all loss payments, which reduce the unearned premiums under the Policies and all provincial or federal sales tax or other refunds, and agree that if we receive any such amounts, we shall receive them in trust for Imperial PFS Canada and shall immediately pay them over to Imperial PFS Canada.

3. Irrevocably appoint Imperial PFS Canada our attorney with full authority, coupled with an interest, to cancel the Policies financed herein for nonpayment of payments as set forth in this PA or as otherwise contemplated in this PA, to direct the Insurance Companies to make payment of all sums assigned, to Imperial PFS Canada, to receive all sums assigned and to endorse on our behalf in favour of Imperial PFS Canada any cheque made payable to us and to Imperial PFS Canada jointly.

4. Understand that the Plan Cost begins to accrue on the earlier of the earliest effective date of any of the Policies and the date of funding by Imperial PFS Canada hereunder.

5. Late Payment: Upon default of any payment for five (5) days, agree to pay a late charge of five percent (5%) of the Defaulted Payment. In addition, we agree Imperial PFS Canada may at its own discretion impose a charge in the amount of CAD $50.00 plus applicable taxes for each defaulted/returned payment. This section does not apply to section 32.

6. Continuous Agreement: Acknowledge this PA to be an ongoing contract providing for continuous insurance premium financing in accordance with its terms which may, at Imperial PFS Canada’s sole discretion, be renewed or extended annually upon our request subject to the receipt and approval by Imperial PFS Canada of a renewal notice executed by us or our authorized Agent or Broker. Each renewal shall be effective only following approval by Imperial PFS Canada by means of a written notice of acceptance as of the Policy Effective Date stated in such renewal notice and shall be for the Policy Term specified and for the Balance also specified therein. We appoint the Insurance Agent or Broker identified on Page 1 as our attorney, who has accepted such mandate, with full authority, coupled with an interest, to execute for and on our behalf any renewal notice or renewal payment agreement in order to modify the terms and provisions of this PA, request successive one year extensions of this PA or otherwise. We understand that we may revoke this appointment at any time upon written notice to the Insurance Agent or Broker and to Imperial PFS Canada. We agree that an Initial Payment, equal in proportion to that in the initial PA, is due to Imperial PFS Canada on any renewal of this PA, and in order to maintain that Initial Payment we authorize Imperial PFS Canada to continue pre-authorized withdrawals until written notice of cancellation or a renewal notice is received by Imperial PFS Canada. Imperial PFS Canada shall credit any excess to or collect any shortfall of Initial Payment from us at time of renewal of this PA. We agree that following each such approval by Imperial PFS Canada each and every one of the terms and conditions of the original PA other than the particulars of the Payment Agreement, which shall be amended to reflect the amended Policies and payments, shall remain in full force and effect during the relevant term, notwithstanding any change of Insurance Companies, Policy coverage types, premium amount or Payment Agreement Details. We further agree that financing provided by Imperial PFS Canada for each renewal term shall be at current rates being charged by Imperial PFS Canada at the relevant renewal date, and that Imperial PFS Canada has the right to decline any renewal of this PA at its sole discretion.

7. Copy of Policy: Irrevocably direct our authorized Agent or Broker to provide Imperial PFS Canada upon Imperial PFS Canada’s request with a complete copy of the Policies and any other requested information concerning return premium, cancellation and minimum earned/retained amount.

8. Updated Information: Agree to provide to Imperial PFS Canada not less than thirty (30) days’ prior written notice of any change in our name, address, bank account, credit card account or any change related to the Policies or this PA.

9. Cancellation after Policy is in Force: Agree that if we do not make a payment when it is due or we are otherwise in default under this PA or any other PA which we at any time enter into with Imperial PFS Canada or its affiliates, Imperial PFS Canada may exercise its power of attorney, cancel the Policies in accordance with the provisions contained in this PA, direct the Insurance Companies as to payment of all sums assigned, to Imperial PFS Canada, and act in our place with regard to the Policies. We understand that before Imperial PFS Canada cancels the Policies, Imperial PFS Canada will mail a written Notice of Intent to Cancel to us at our last address as shown on Imperial PFS Canada’s records, and that Imperial PFS Canada will send a Notice of Cancellation to the Insurance Companies and us canceling the Policies if we do not make the payment that is overdue or otherwise cure the default within ten (10) days of the default. In addition, we agree to pay Imperial PFS Canada an administration fee of $100.00 plus applicable taxes should Imperial PFS Canada have to cancel this PA.

10. Money Received after Cancellation: Agree that if Imperial PFS Canada receives a payment after Imperial PFS Canada sends the Notice of Cancellation, Imperial PFS Canada may apply to it what we owe, if anything, without changing Imperial PFS Canada’s rights under this PA. After the Policies are cancelled (whether by Imperial PFS Canada or by us or anyone else), Imperial PFS Canada has the right to receive all refunds of unearned premiums and apply them against the unpaid portion of the Balance plus Plan Cost as amended from time to time together with all other amounts owing under this PA, if any. If the refund is more than we owe, Imperial PFS Canada will return to us only what is left after all amounts due under this PA have been paid in full. If the refund is less than we owe, we will pay Imperial PFS Canada the difference forthwith on demand. Imperial PFS Canada may act in our place to do whatever is necessary to collect such refunds. The Insurance Companies may rely on whatever Imperial PFS Canada tells them regarding the Policies and the refunds; they do not have to get proof from us or anyone else as to any matter.

11. Default: Agree that we will be in default if any of the following happens: a payment is not made when it is due (if the Initial Payment is not made, it shall give rise to a repudiation or in the case of Quebec, a resolution according to section 32); a proceeding in bankruptcy, receivership, insolvency or similar proceeding is instituted by or against us; any one of the Policies is cancelled by us or the Insurance Companies or any other person for any reason; or we fail to keep a promise we make in this PA.

12. Right to Demand Payment in Full: Agree that at any time after we are in default, Imperial PFS Canada can demand and has the right to receive immediately payment of the total unpaid portion due under this PA. All remedies hereunder are cumulative. Imperial PFS Canada need not exhaust its remedies before claiming the total unpaid amount due under this PA from us. The provision hereto is a clause of forfeiture of benefit of the term. Any amount forfeited by us will not constitute a penalty but rather constitute a genuine pre-estimate of damages. This remedy does not affect Imperial PFS Canada’s remedy under section 32.

13. Cross Collateralization: Agree that if we are in default under this PA or any other PA which we at any time enter into with Imperial PFS Canada or any of its affiliates, we shall be in default under all agreements at any time entered into by us with Imperial PFS Canada or any of its affiliates, and Imperial PFS Canada shall be entitled to exercise all remedies available to Imperial PFS Canada when we are in default under this PA or any other PA between us and Imperial PFS Canada or any of its affiliates. Notwithstanding any other provision of this PA or any other PA, we agree that any amount received by Imperial PFS Canada on account of unearned premiums, all dividends, and all loss payments which reduce the unearned premiums under the Policies or under any other Policies financed by Imperial PFS Canada on our request under any other PA with Imperial PFS Canada or any of its affiliates may be applied against the total amount due under this PA and all other amounts due to Imperial PFS Canada by us. We hereby appoint Imperial PFS Canada our attorney with full authority to cancel policies financed by Imperial PFS Canada under other agreements with Imperial PFS Canada by reason of default under this PA or any other agreement between us and Imperial PFS Canada. We agree and confirm that every agreement between us with respect to premium is hereby deemed to be amended as required to give effect to the foregoing.

14. Security Interests: To secure the performance of our obligations hereunder we grant Imperial PFS Canada a continuing security interest in any interest we have in all unearned premiums, all dividends and all loss payments which reduce the unearned premiums under the Policies and all provincial or federal sales tax or other refunds. We agree that Imperial PFS Canada has all the rights of a secured party under any applicable personal property security interest (as the terms “security interest” and “purchase money security interest” are used in the Personal Property Security Act (Ontario) and shall be interpreted with similar effect under analogous legislation in force in any other relevant jurisdiction). Where applicable by law, we hereby waive our right of notification of Personal Property Security Act registration.

15. Early Payment: Acknowledge that at any time, we may pay the whole amount still unpaid. If we pay the full amount before it is due, we will be given a refund of the unearned Plan Cost less any fees deemed appropriate by Imperial PFS Canada at its sole discretion.

16. Assignments: Agree that we may not assign the Policies or permit endorsement of any of the Policies to additional insureds without Imperial PFS Canada’s written consent prior to the assignment or endorsement. However, we do not need Imperial PFS Canada’s written consent to add mortgagees or other persons as loss payees. Imperial PFS Canada may transfer its rights under this PA to anyone without our consent and we agree to pay this transferee without any right to abatement, deduction, set-off, withholding or any other counterclaim. All of Imperial PFS Canada’s rights shall endure to the benefit of Imperial PFS Canada’s successors and assigns. The obligations of the Insured/Borrower are binding upon our heirs, executors, successors, administrators and assigns.

17. Indemnity: Agree that we will indemnify, defend and hold harmless Imperial PFS Canada and its agents, officers, attorneys, directors, assigns, and employees from and against any and all liabilities, losses, expenses, damages, demands, and claims, including attorneys’ fees, arising out of injury or alleged injury to any persons, including death, damage or alleged damage to any property, if due to our failure to pay Imperial PFS Canada monies owing under this PA when such amounts are due, and such default in payment causes Imperial PFS Canada to cancel the Policy(ies) or otherwise affect our Policy(ies) due to the default in payment.

18. Collection Costs: Agree to pay any costs, fees and expenses incurred to collect any monies we owe under this PA including without limitation, legal fees on a solicitor and his own client basis, and all such amounts shall be deemed to be included in the Balance and shall be secured by the security granted under this PA.

19. Agent or Broker: Acknowledge while the Agent or Broker submitting this PA may be accepting the Initial Payment on Imperial PFS Canada’s behalf, that such Agent or Broker is not Imperial PFS Canada’s agent and cannot legally bind Imperial PFS Canada in any way.

20. Amendments: Agree if the Policies or any of them have not been issued at the time of signing of this PA, Imperial PFS Canada may insert the names of the Insurance Companies issuing the Policies, the Policy numbers, and the due date of any Payments, if they are not known when we sign the PA. We agree that during the term of this PA, the Balance, Plan Cost, Balance plus Plan Cost, and Payment Agreement Details may be amended by Imperial PFS Canada (1) to reflect any changes in the principal portion, or otherwise resulting from any Policy renewal or any other cause whatsoever, (2) to ensure that this PA conforms to the original or renewal finance quotation provided to the Agent or Broker and correctly sets forth the details of the Policies. We agree that all such amendments shall be binding upon us. Imperial PFS Canada agrees to advise us in writing of any such changes.

21. Effective Date: The Effective Date of this PA will be when this PA is accepted by Imperial PFS Canada in writing. This acceptance will be communicated with a notice of acceptance to us and/or our authorized Agent or Broker. However, we agree that funding by Imperial PFS Canada hereunder will not occur until Initial Payment is made.

22. Audit Policies: If any Policy financed by Imperial PFS Canada is an audit or reporting form Policy, we agree to pay to Imperial PFS Canada, and hereby direct the Insurance Companies to pay to Imperial PFS Canada, the amount of any return premium, to be applied against the Balance plus Plan Cost together with all other amounts owing hereunder as provided by law and further agree to provide Imperial PFS Canada with particulars as to the amount of any increase in premium payments required by the Insurance Companies.

23. Signature and Acknowledgement: Acknowledge we have signed this PA and have received an executed copy of it. If the Insured/Borrower is a corporation, limited liability company, partnership or other entity, we warrant we are authorized to sign this PA on its behalf, acting alone, and to bind such entity. If there is more than one Insured/Borrower listed on any Policies, we warrant we are, acting alone, authorized to sign for and to bind all Insureds/Borrowers.

24. Waiver of Rights/Enforceability: Acknowledge that time shall be of the essence of this PA and any waiver of or delay in enforcing any rights by Imperial PFS Canada does not constitute any waiver of such rights thereafter. The invalidity or unenforceability of any clause will not affect the remainder of the PA.

25. Facsimile Transmission: Agree that Imperial PFS Canada shall be entitled but not obligated to rely on delivery by facsimile transmission of an executed copy of this PA and acceptance by Imperial PFS Canada of such facsimile copy shall be effective to create a valid and binding agreement between us, Imperial PFS Canada, and the Agent or Broker in accordance with the terms hereof.

26. Dispute Resolution: The parties agree to resolve any and all disputes or claims arising out of or relating to this PA in the following manner: (1) for any and all disputes or claims within the monetary jurisdictional limit of the small claims court in the province or territory of the Borrower (“Small Claims”), the dispute or claim shall be resolved in either small claims court in the province or territory of the Borrower or by private arbitration pursuant to the Arbitration Act, 1991, S.O. 1991, c. 17 as am., or such successor act, in Toronto, Ontario, at the discretion of the filing party; and (2) for all claims and disputes exceeding the jurisdictional limit of the small claims court in the province or territory of the Borrower (“Large Claims”), the dispute or claim shall be resolved through private arbitration pursuant to the Arbitration Act, 1991, S.O. 1991, c. 17 as am., or such successor act, in Toronto, Ontario. The language of the arbitration shall be English. In the event that the dispute or claim is resolved through private arbitration, the final arbitral award will be binding upon the parties and there will be no appeal from the award of the arbitrator on questions of law or on questions of fact or mixed fact and law.

27. Governing Law: Agree that this PA shall be governed by the law of the province where the Insured/Borrower is located as indicated on the front page hereof, and the federal laws of Canada applicable in that jurisdiction.

28. Province of Quebec: For all purposes pursuant to which the interpretation or construction of this PA may be subject to the laws of the Province of Quebec or a court or tribunal exercising jurisdiction in the Province of Quebec, (1) “security” shall include “hypothec” and “security interest” shall include a “movable hypothec without delivery”, (2) all references to filing, registering or recording under the Personal Property Security Act (Ontario) shall include publication under the Civil Code of Quebec, (3) any “apply to it what we owe”, “apply them against the unpaid portion”, “set-off” or similar expression shall include a “right of compensation”, (4) an “attorney” shall include a “mandatary”, (5) “receivership” shall include “sequestration” and “seizure”, (6) “loss payments” shall include “indemnities”, (7) “loss payee” shall include “beneficiary” and “hypothecary creditor”, (8) “collection fees” shall include “recovery fees”, (9) “joint and several” shall include “solidary”, (10) “right to demand payment in full” shall include “the loss of the benefit of the term”. For the purposes of section 14 (Security Interest), to secure the performance of our obligations hereunder, we grant Imperial PFS Canada a movable hypothec without delivery in any interest we have in all unearned premiums, all dividends and all loss payments which reduce the unearned premiums under the Policies and all provincial or federal sales tax or other refunds, the whole up to an amount equal to the Balance plus Plan Cost multiplied by 1.25, with interest thereon at the rate of 25% par annum as of the date hereof. We and our authorized Agent or Broker, hereby represent and warrant that the Insurance Companies have not received any notice of assignment or hypothec under Article 2479.1 of the Civil Code of Quebec from any person (other than Imperial PFS Canada), prior to the Effective Date of this PA, in respect of the Policies hereunder, and we hereby further agree to cause such Insurance Companies to so confirm in writing to Imperial PFS Canada.

29. Language: Les parties ont expressément convenu que cette convention ainsi que tous documents y afferents soient redigés en langue anglaise seulement. The parties have expressly agreed that this PA and all related documents be drafted in the English language only.

30. Pre-Authorized Payment Agreement: Imperial PFS Canada is hereby authorized to draw payment under its Payment Agreement from the bank account and/or the credit card account included within Payment Details. This authorization shall extend to include any revised payment amounts, late charges, NSF charges or other amounts due to Imperial PFS Canada under the terms of this Payment Agreement. We understand that the debits may occur prior to receiving prior written notice. We also understand that if we wish to change the amount of our PAD (Pre-Authorized Debit) we should contact Imperial PFS Canada by phone or in writing. This authorization is a Business PAD (where the Insured is a corporation, person or entity acting for business purposes). We can obtain a sample cancellation form or get further information on our right to cancel a PAD agreement by contacting our financial institution or by visiting www.payments.ca. We acknowledge that we have certain recourse rights if any debit does not comply with this agreement. For example, we have the right to receive reimbursement for any debit that is not authorized or is not consistent with this PAD agreement. To obtain more information on our rights, we should contact our financial institution or visit www.payments.ca.

31. Notice of Acceptance and Amendments: we agree that because some of the Policy(ies) may not have been issued at the time of signing of this PA, Imperial PFS Canada will provide a Schedule of Policies, including(where available) the names of the Insurance Companies issuing the Policy(ies), the Policy numbers, the Premiums and the due date of any payments, and send that information to us and the Broker in a Notice of Acceptance to be sent to us within 10 days of Imperial PFS Canada’s acceptance of the revised policy details. We agree that during the term of this PA, Imperial PFS Canada may amend the PA (1) to reflect any changes in the Total Premiums, or otherwise resulting from any Policy renewal or any other cause whatsoever, (2) to ensure that this PA conforms to the original or renewal quotation provided to the Broker and correctly sets forth the details of the Policy(ies). We agree that all such amendments shall be binding upon us.

Imperial PFS Payments Canada, ULC
1011-1 Toronto Street, Toronto, ON M5C 2V6
Phone: (866) 815-9454 | Web: www.ipfscanada.com

Payment Agreement #: 3558

C.56.E.210924 Page (2)

32. Right not to Fund where no Payment has been Made: If we fail to make any required Initial Payment prior to the time Imperial PFS Canada pays the Total Premiums, any individual premium listed on the Schedule of Policies, or any additional premium on the policies listed in the Schedule of Policies, Imperial PFS Canada may in its sole discretion accept the repudiation, or in the case of Quebec, resolution, of this PA with respect to all policies or additional premiums to which such missed down payment or installment payment relates. Such repudiation, or in the case of Quebec, resolution, will alleviate Imperial PFS Canada of any future obligation under this PA, and we will have no remedy if Imperial PFS Canada accepts such repudiation, or in the case of Quebec, resolution. This section does not apply where a default occurs after an Initial Payment has been made. We understand that if Imperial PFS Canada chooses not to pay such premiums, we may not have insurance coverage and it is our responsibility to make all premium payments to our agent, broker, or insurance carrier, as the case may be.

33. Remedies, Waiver, and Severability: All rights and remedies of the parties, pursuant to this PA, in law or at equity, are cumulative and may be exercised concurrently or separately. The exercise of one remedy will not be an election of that remedy to the exclusion of other remedies. The waiver of a breach of any term or condition of this PA or the failure to enforce a right pursuant to this PA will not act as a waiver of any other breach of the same or any other term or condition or as a waiver of any future right. If any provision of this PA is held to be unenforceable, the remaining provisions will remain in effect and the parties will negotiate in good faith a substantively comparable enforceable provision to replace the unenforceable provision.

Imperial PFS Payments Canada, ULC
1011-1 Toronto Street, Toronto, ON M5C 2V6
Phone: (866) 815-9454 | Web: www.ipfscanada.com

Payment Agreement #: 3558

C.56.E.210924 Page (3)

EX-10.25

Exhibit 10.25

OFFER SUMMARY FOR MERCHANT LOAN AGREEMENT

Funding Provided	$410,000.00 USD	This is how much funding WebBank will provide.
Estimated Annual Percentage Rate (APR)	25.89%	APR is the estimated cost of your financing expressed as a yearly rate. APR incorporates the amount and timing of the funding you receive, fees you pay, and the periodic payments you make. This calculation assumes your estimated average monthly income through your Shopify Store will be $566,314.47 USD. Since your actual income may vary from our estimate, your effective APR may also vary. APR is not an interest rate. The cost of this financing is based upon fees charged by WebBank rather than interest that accrues over time.
Finance Charge	$41,000.00 USD	This is the dollar cost of your financing. Your finance charge will not increase if you take longer to pay off what you owe.
Estimated Total Payment Amount	$451,000.00 USD	This is the total dollar amount of payments we estimate you will make under the contract.
Estimated Monthly Cost	$95,957.45 USD/month	Although you do not make payments on a monthly basis, this is our calculation of your average monthly cost based upon estimated daily sales.
Estimated Payment	$3,198.58 USD/day
Payment Terms	For each calendar day that you make sales, 17% of the gross dollar amount of your sales will be remitted to WebBank. You'll continue to make remittances until WebBank has received the full agreed amount of your future sales revenue. This financing does not have a fixed payment schedule or a minimum payment amount.
Estimated Term	141 days	This is our estimate of how long it will take to collect amounts due to us under the contract based upon the assumption that you will receive $566,314.47 USD in monthly income through your Shopify store.
Prepayment	If you pay off the financing faster than required, you still must pay all or a portion of the finance charge, up to $41,000.00 USD based upon our estimates.
	If you pay off the financing faster than required, you will not be required to pay additional fees.

Declared by the Borrower:

First Person Inc. Applicable law requires this information to be provided to you to help you make an informed decision. By clicking Accept Terms in the Review and accept terms dialog, you are confirming that you received this information. Signed and agreed by an Authorized Representative of Borrower on 17 May 2023

Merchant Loan Agreement

Total Payment Amount:	Loan Amount:	Cost of Funds:	Repayment rate:
$451,000.00 USD	$410,000.00 USD	$41,000.00 USD	17% of daily sales

This Merchant Loan Agreement (“Agreement”), dated as of the Effective Date (as defined below) is between WebBank, a Utah-chartered industrial bank (“Lender,” “We”, “Us” or “Our”), and First Person Inc. (“Borrower,” “You”, or “Your”). The parties agree to the following terms and conditions, which create a binding legal relationship:

1. Definitions

As used in this Agreement, the following words have the meanings as specified below:

Account	has the meaning set forth in Section 4.2.1.
Arbitration Provision	has the meaning set forth in Section 12.1.
Authorized Representative	means any individual who has been authorized by Borrower to obtain the Loan and has authority to accept this Agreement on behalf of Borrower.
Claims	has the meaning set forth in Section 12.1.
Collateral	has the meaning set forth in Section 5.1.
Confidential Information	means any and all information associated with a party's business and not publicly known, including specific business information, technical processes and formulas, software, customer lists, prospective customer lists, names, addresses and other information regarding customers and prospective customers, product designs, sales, costs (including any relevant processing fees), price lists, and other unpublished financial information, business plans and marketing data, and any other confidential and proprietary information, whether or not marked as confidential or proprietary. Lender's Confidential Information includes all information that Borrower receives relating to Lender, or to the terms of this Loan, that is not known to the general public.
Daily Payment	means the daily payment due to Lender, which shall be an amount equal to the Shopify Account Credits attributed to Borrower's Shopify Services Account for such day multiplied by the Daily Payment Percentage. If Borrower does not have any Shopify Account Credits for any given day, then there shall be no Daily Payment for such day.
Daily Payment Percentage	means 17%
Effective Date	means the date on which we deliver the funding to You.
Event of Default	means the occurrence of an event described in Section 8.
Lender Information	has the meaning set forth in Section 10.15.2.
Loan	means the closed-end business purpose loan made by Lender to Borrower under this Agreement.
Loan Amount	means the total amount of funding provided by Lender to the Borrower pursuant to this Agreement.
Make-up Payments	means deductions from Your Account, as applicable, initiated by Lender or Processor or any Other Processor for the benefit of Lender if any of Lender, Processor or Other Processor, as applicable, was unable to effect a transfer for any payment due hereunder on a particular day because of insufficient funds in Your Account or any other reason.
Manual Payment	has the meaning set forth in Section 4.1.2.
Obligations	means, collectively, Borrower's obligations under this Agreement, including Your obligation to pay the Total Payment Amount, and any other fees or expenses due hereunder (including, without limitation, the reasonable attorney's fees and expenses that arise upon an Event of Default, including after the filing of a bankruptcy or other insolvency proceeding, regardless of whether allowed or allowable in whole or in part as a claim in such bankruptcy or other insolvency proceeding); and Borrower's obligation to pay all other obligations and liabilities owed to Lender under any other document or agreement now or hereafter entered into between Lender and Borrower.
Other Business Account	means, collectively, all bank accounts associated with Shopify Services accounts of Borrower, or Owners, subsidiaries or affiliates of Borrower, and into which funds related to Other Business Credits are deposited.
Other Business Credits	means any funds of a business owned or operated by Borrower or the Owners, subsidiaries or affiliates of Borrower, other than the Shopify Store, including any funds that are credited to one or more Accounts or Shopify Services accounts of Borrower or the Owner, subsidiaries or affiliates of Borrower (other than the Shopify Services Account), regardless of source.
Other Processor	means, collectively and individually, any processor, acquirer, service provider or financial institution taking custody of, holding, possessing, or issuing payment instructions with respect to any Other Business Accounts.
Outstanding Total Payment Amount	means the Total Payment Amount, less the aggregate amounts of Payments received by Lender.
Owner	means any parent company, any individual who, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, owns 25 percent or more of the equity interests of a legal entity, sole proprietor, principal, or member of Borrower.
Payments	means, collectively, the Daily Payments and any Manual Payments.

Processor	means, collectively and individually, any processor, acquirer, service provider or financial institution taking custody of, holding, possessing, or issuing payment instructions with respect to the Shopify Account Credits.
Processor Terms of Service	means the agreement, as it may be amended from time to time, under which Processor or Other Processor (along with other applicable third parties) provides Borrower with payment services.
Register	has the meaning set forth in Section 13.1.
Shopify Account Credits	means all funds from transactions associated with Your Shopify Services Account while You have a Loan with Us, regardless of source, whether those funds are credited through cash, bank checks, credit cards, debit cards, and other types of payment cards, electronic money transfers, such as Automated Clearing House or “ACH” debits and PayPal® money transfers or other forms of payment, excluding only the Loan.
Shopify Admin	means the administrative dashboard associated with Borrower's Shopify Services Account.
Shopify Merchant Business Account or SMBA	means the bank account or other business stored-value account of Borrower set out in the Shopify Admin and into which: (a) the Shopify Account Credits settle (less any transaction or other related fees); and (b) the Loan would be funded.
Shopify Services	means the ecommerce software and services provided to Borrower by Shopify Inc.
Shopify Services Account	means the account provisioned by Shopify Inc. to Borrower in respect of the Shopify Services.
Shopify Store	means First Person Inc..
Shopify Terms of Service	means the agreement, including the Shopify Acceptable Use Policy and any other documents incorporated by reference, as may be amended from time to time, under which Shopify Inc. provides Borrower with the Shopify Services.
Total Payment Amount	means $451,000.00 USD, which is the total amount that Borrower promises to pay Lender as consideration for the Loan. For the avoidance of doubt, Borrower in addition to the Total Payment Amount may also be liable to Lender herein for any costs, fees, or other damages payable upon an Event of Default or any amounts due under Borrower's indemnification obligations under this Agreement

2. Loan Funding

2.1.       By clicking on “Submit Application,” You accept this Agreement and are making a request for Lender to complete its review of Your application and make a Loan to You. For this review, We may obtain and review any information on the Borrower, an Owner, or the Authorized Representative that We are permitted by applicable law to obtain and review for this purpose, including: (a) Your Shopify Services Account history; (b) information about any financial accounts Borrower has with third-party institutions, including transaction data with respect to such accounts, which We may obtain directly or through third-party services; and (c) name, address, date of birth, other information that allows Us to verify Your identity, together with any necessary identification documents, collected and verified in accordance with federal anti-money laundering, terrorist financing, and other financial regulations.

2.2.       As provided above, You authorize Us to obtain account information from third-party services for the purpose of authenticating or obtaining information about accounts You have with financial institutions. You acknowledge that You may be required to provide such authorization directly to such third parties. If You do not provide the required authorization to the third-party services described above, We may decline to proceed with Your request for funding. We also may decline to proceed with Your request for funding if a financial institution prevents us or our service provider to access Your account, even if you did not instruct the financial institution to do so.

2.3.       If Lender approves Your application, in its sole and absolute discretion, Lender shall accept the Agreement and make the Loan to Borrower by making a single disbursement to the SMBA in the amount of $410,000.00 USD on a date determined by Lender. This Agreement will not take effect unless We accept it by funding the Loan. THE LOAN SHALL BE MADE BY LENDER IN ITS SOLE AND ABSOLUTE DISCRETION, AND BORROWER'S ACCEPTANCE OF THIS AGREEMENT SHALL NOT BE CONSTRUED TO OBLIGATE LENDER TO MAKE THE LOAN.

3.       Business Purpose; Business Account

3.1.       Business Purpose. You agree that You are obtaining this Loan and will use the funds received in connection with this Loan for business purposes only. You will not use this Loan for personal, family, or household purposes. You understand that You are not receiving a consumer loan and that statutory and regulatory protections for consumers will not apply to Your Loan. You also understand that We may, but are not obligated to, verify whether the use of any funds provided conforms to this section. You agree that Your breach of this section will not affect Lender's right to: (a) enforce Your promise to pay all Obligations and amounts owed under this Agreement, regardless of the purpose for which the funds are in fact obtained; or (b) use any remedy legally available to Lender, even if that remedy would not have been available had the funds been provided for consumer purposes.

3.2.       Business Account. You agree that the SMBA, any substitute Account, and the Shopify Services Account are each business accounts used solely for business purposes only and that the Account(s) named above are not and will not be used for personal, family, consumer, or household purposes.

4.       Repayment of the Loan; Authorizations

4.1.       Repayment Terms.

4.1.1.       Borrower promises to pay Lender the Total Payment Amount. In furtherance of this promise, the Borrower promises to make Daily Payments to Lender, starting on the Effective Date until the Total Payment Amount is received by Lender.

4.1.2.       In addition to the Daily Payments, You may make one or more additional payments for any amount, up to and including the then-remaining Outstanding Total Payment Amount (“Manual Payments”). Manual Payments may be made only by ACH, or such other method that Lender permits, in its sole discretion. Lender may refuse any attempted Manual Payment or impose limits on the frequency or amounts of Manual Payments at any time. If You successfully make a Manual Payment that is less than the Outstanding Total Payment Amount, the Outstanding Total Payment Amount will be adjusted by the amount of such Manual Payment. If You successfully pay the entire Outstanding Total Payment Amount, You will have no further payment obligations to Us under the Agreement. If the Manual Payment is reversed or disputed, then any credit to the Outstanding Total Payment Amount applied as a result of the Manual Payment will be reversed as of the date it was applied and You will continue to be obligated to repay Your Loan under this Agreement until the Total Payment Amount has been repaid.

4.2.       Fund Transfers. To the extent that Processor or Other Processor, if applicable, is not acting on behalf of Lender pursuant to Section 4.2.1 below or as Lender may otherwise determine, Lender may act in accordance with Section 4.2.2 below.

4.2.1.       Processing Arrangement. Borrower explicitly authorizes and directs Processor or Other Processor to transfer to Lender from the SMBA, any Other Business Account and/or any other account containing Your Shopify Account Credits or Other Business Credits (collectively, the “Account”): (a) Daily Payments due on business days, will be transferred on a daily basis and Daily Payments due on a non-business day will be transferred on the following business day until the Total Payment Amount has been paid to Lender; and (b) in the event that the Lender declare the entire Outstanding Total Payment Amount (plus any other amounts due under this Agreement) to be immediately due and payable upon an Event of Default, the then Outstanding Total Payment Amount plus the amount of any other outstanding Obligations. Upon an Event of Default, You irrevocably authorize Processor and any Other Processor to deliver all funds on deposit in any Account to Us until We have received the Outstanding Total Payment Amount (plus any other amounts due under this Agreement). You agree that any Processor and Other Processor may rely on any instructions issued by Us with respect to the delivery of funds on deposit in any Account, including, but not limited to, an instruction to deliver to Us all Shopify Account Credits, Other Business Credits, and funds on deposit in any such Accounts to Us until the then Outstanding Total Payment Amount (plus any other amounts due under this Agreement) are delivered to Us after an Event of Default. You agree that You do not have the right to revoke or otherwise seek to override the authorization set forth herein and that this authorization may only be revoked by Us. If there has been no Event of Default, no Processor or Other Processor will deliver to Us any particular payment owed hereunder if such payment has already been delivered to Us by Processor or Other Processor, as applicable, or We have taken such amount via Section 4.2.2 below.

4.2.2.       Lender Electronic Fund Transfer Authorization. You irrevocably authorize Us (which includes, for the purposes of this authorization, Our agents, service providers, successors, and assigns) to initiate an electronic fund transfer via the ACH network from any Account in the amount of any Payment due or other amount due under this Agreement. You authorize Us, to initiate a single ACH for the combined amounts of different Payments owed hereunder (e.g., initiate a single ACH on Monday for Daily Payments that were created on Friday, Saturday, and Sunday) or to initiate individual ACHs for any such Payments. We will not initiate an ACH for any Payments delivered to Us via Section 4.2.1. After the occurrence of an Event of Default, You irrevocably authorize Us to initiate an ACH or ACHs from any Account until We have received the Outstanding Total Payment Amount (plus any other Obligations or amounts due under this Agreement). You also authorize Us to initiate ACH credits or debits to any Account to correct any errors We may make in processing a payment. In the event that an ACH is returned unpaid, You authorize Us to re-initiate the ACH until it is paid. You agree that You will not cancel this authorization or instruct any depository holding Shopify Account Credits (or, after an Event of Default, any other depository holding Other Business Credits) to reject Our ACHs. You promise that the Account is used for business purposes and not for personal, family, consumer or household purposes and that You are an authorized signor on the Accounts. You agree to be bound by the rules and regulations of the National Automated Clearing House Association (“NACHA”).

4.3.       Make-up Payments; Transfer Size/Timing. If any of Lender, Processor or Other Processor is unable to effect a transfer or debit for any payment due hereunder, You authorize and direct Lender, Processor or Other Processor, as applicable, on any subsequent day to deduct any available funds from Your Account, as applicable, to make up for the failed transfer or debit until the full amount of the failed transfer or debit has been paid in full. You authorize and direct any of Lender, Processor or Other Processor to initiate transfers or debits for Make-up Payments in combination with any other payments due or as separate transfers or debits. You agree that any transfer or debit may be split into multiple, smaller transfers or debits and/or initiated the moment funds are credited to the Account, as applicable.

5.       Security Interest; Collateral

5.1.       As security for all Obligations, Borrower hereby grants, assigns, and pledges to Lender a continuing and unconditional lien on and security interest in and to the following, whether now owned, or hereafter acquired, or arising and wherever located (collectively, the Collateral): (a) all Accounts and all balances in such Accounts; (b) all general intangibles (as that term is defined in Article 9 of the Uniform Commercial Code), all payment intangibles, all rights to payment, all accounts receivable (including the Other Business Credits), and all other rights (whether arising under common law, statutes, regulations, or otherwise) of Borrower in each case arising with respect to or in connection with the Accounts; (c) all money, cash equivalents, and other similar assets of Borrower that now or hereafter come into the possession, custody, or control of Lender, Processor or Other Processor (or any of their respective agents or designees); and (d) all of the proceeds (as such term is defined in the applicable UCC) and products, whether tangible or intangible, of any of the foregoing.

5.2.       In furtherance of the intentions of the parties hereto, this Agreement shall constitute written notice to all interested parties of Lender's security interest in the Collateral. Borrower acknowledges and agrees that so long as any of the Obligations remain outstanding, all Accounts and any funds on deposit from time to time therein shall be under the sole dominion and control of Lender. Neither Borrower nor any other person or entity, acting by, through, or under Borrower, shall have any control over the use of, or any right to withdraw any amount from such Accounts without the consent of Lender, provided that Lender shall be deemed to have granted such consent until such time as the occurrence of an Event of Default. In addition, Lender shall have the exclusive rights: (a) to require that any bank or securities intermediary at which any Collateral may be located acknowledge Lender's security interest in and control of the Collateral for purposes of perfecting Lender's security interest therein; and (b) to direct and provide instructions to such bank or securities intermediary as to the disposition of the Collateral to fulfill Borrower's Obligations herein. Borrower agrees that Borrower shall execute and deliver any document requested by Lender to perfect and continue its security interest in the Collateral, including, but not limited to, any account control agreements and take any other action to perfect and maintain Lender's security interest. Borrower further agrees not to create, grant, or permit any other lien, pledge, or security interest to exist on any of the Collateral, except for the security interest granted to the Lender under this Agreement.

5.3.       You authorize Us to file one or more UCC-1 financing statements to memorialize and perfect on the security interest granted to Us hereunder. Any financing statements may include notice that You have given a negative pledge of the Collateral.

6.       Representations and Warranties

Borrower represents and warrants that, as of the date of this Agreement and during the term of this Agreement:

6.1.       Your form of organization is correctly set forth in the Shopify Admin. Unless You are an individual or sole proprietorship, You were duly incorporated or formed, are validly existing, and are in good standing under the laws of the state where your business is registered. You further represent and warrant that: (a) You are duly qualified, licensed, and in good standing in every state in which You are doing business; (b) Your principal office and the location where You keep Your records concerning Your accounts, contract rights, and other property, are accurately reflected in Your Shopify Admin; (c) Your exact legal name is accurately set forth in the Your Shopify Admin and in this Agreement; (d) You have the requisite power and authority, and the legal right to own, lease, and operate Your properties and assets and to conduct Your business as it is now being conducted and to enter into this Agreement; (e) You are complying and will comply with all laws, statutes, regulations, and ordinances pertaining to the conduct of Your business; (f) all of Your organization papers and all amendments thereto have been duly filed and are in proper order, and any capital stock, member interest, or other equity issued by You and outstanding was and is properly issued; and (g) all Your books and records are accurate and up to date and will be so maintained.

6.2.       No consent or authorization of, filing with, notice to, or other act by, or in respect of, any governmental authority or any other individual or entity is required in order for You to execute, deliver, or perform any of Your obligations under this Agreement. The execution, delivery, and performance of the Agreement and any other document executed in connection therewith are within Your powers, have been duly authorized, and are not in contravention of law or the terms of Your charter, by-laws, or other organization papers, if any, or of any indenture, contract, agreement, or undertaking to which You are a party. You are not subject to any charter, corporate, or other legal restriction, or any judgment, award, decree, order, governmental rule, regulation, or contractual restriction that could have a material adverse effect on Your financial condition, business or prospects. You are in compliance with Your organization documents and by-laws, if any, and all contractual requirements by which You may be bound and where the failure to comply might materially adversely affect Your financial condition, business or prospects, or Your ability to perform Your obligations under this Agreement.

6.3.       There is no action, suit, proceeding, or investigation pending or, to Your knowledge, threatened against or affecting You, Your Shopify Store, or any of Your assets that, if determined adversely, could have a material adverse effect on Your financial condition, business or prospects or Your ability to perform Your obligations under this Agreement.

6.4.       This Agreement is Borrower's valid, legal, and binding obligation, enforceable against Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditors' rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

6.5.       You have not sold nor are subject to any other contract or agreement that provides for the sale, assignment, or any other transfer of any interest in the Collateral as of the date of this Agreement. You have good, complete, and marketable title to the Collateral, free and clear of any claims, charges, liens, restrictions, encumbrances, or security interests of any nature whatsoever, other than in favor of Lender. The Shopify Account Credits are and will be the proceeds of bona fide transactions with Borrower's customers.

6.6.       Borrower does not presently intend to cease to operate the business, either permanently or temporarily. Borrower is solvent and does not contemplate bankruptcy or insolvency proceedings. Borrower has not filed any petition for bankruptcy protection and there has been no involuntary petition threatened or filed against Borrower. Borrower does not anticipate the voluntary or involuntary filing of any such bankruptcy petition.

6.7.       All federal, state, local, and foreign tax returns and tax reports, and all taxes due and payable that are required to be filed by Borrower have been or will be filed and paid, on a timely basis (including any extensions). All such returns and reports are and will be true, correct, and complete. Borrower has no material liabilities and, to the best of its knowledge, knows of no material contingent liabilities, except current liabilities incurred in the ordinary course of business.

6.8.       You are entering into this Agreement for business purposes and not as a consumer or for personal, family, consumer, or household purposes. Any credit extended under this Agreement is solely for business purposes and not for personal, family, consumer, or household use.

6.9.       Any attempt to receive the Loan or pay Your Daily Payment, Make-Up Payment, Manual Payment, or Outstanding Total Payment Amount through any account other than the SMBA will entitle Lender, Processor, and any Other Processor to consider any such account as part of Your SMBA for purposes of this Agreement.

6.10.       Each Authorized Representative is at least eighteen (18) years of age and has the legal capacity and all necessary authority to bind You to this Agreement.

7.       Covenants

Borrower agrees to comply with the covenants in this Agreement and to be bound by the terms and conditions of this Agreement. In this regard, Borrower irrevocably agrees that, during the term of this Agreement, Borrower shall:

7.1.       cause the SMBA and any substitute Accounts to remain in good standing;

7.2.       comply with the Processor or Other Processor Terms of Service in connection with all payments Borrower accepts and processes during the term of this Agreement;

7.3.       provide account statements for any account into which Shopify Account Credits are deposited or transferred, any bank account reflected in Borrower's Shopify Admin, and, on request of the Lender, for any account opened at any time during the performance of this Agreement (including, but not limited to, any other bank accounts associated with other Shopify Services account(s) of Borrower), no later than five (5) business days after Our request. You agree that if You own or operate any other business other than the Shopify Store, You will keep separate accounting records for each business;

7.4.       not take any action that would discourage those making payments to Borrower from paying via a method that settles into the SMBA or permit any event to occur that could have an adverse effect on the making of such payments into the SMBA;

7.5.       not withdraw funds from the SMBA prior to Lender receiving the Daily Payment for such day;

7.6.       not, without Our prior written consent: (a) change Your name (including any d/b/a name), place of business, chief executive office (if applicable), or organizational identification number, if any; (b) change Your type of organization, jurisdiction of organization, or other legal structure; (c) materially change the goods or services sold by the Shopify Store; (d) materially change the nature of the Shopify Store; (e) change the methods by which You accept or process payments; or (f) close the Shopify Store or cease operations (either permanently or temporarily);

7.7.       (a) preserve, renew, and maintain, in full force and effect, Your corporate or organizational existence; (b) take all reasonable action to maintain all rights, privilege,s and franchises necessary or desirable for the normal conduct of Your business; and (c) remain duly qualified, licensed, and in good standing in Your state of organization (if any) and every other state in which You are doing business;

7.8.       not create, incur, or assume any indebtedness or borrow money, except for the Loan and trade debt incurred in the ordinary course of Borrower's business;

7.9.       not create or permit any lien or other encumbrance to be placed on the Collateral, other than in favor of Lender;

7.10.       not permit any event to occur that could cause diversion of: (a) any amounts payable to or from any Account; or (b) the Shopify Account Credits from Lender;

7.11.       maintain all of Your contact information current, including primary electronic mail, Your phone number, and physical address, and notify Lender promptly of any change to Your phone number or physical, electronic mail and/or website address(es);

7.12.       cooperate fully with Lender to take all necessary actions required to effectuate Borrower's obligations hereunder, including, but not limited to, signing any and all documents Lender deems necessary or appropriate;

7.13.       only use the Loan, the SMBA, any substitute Account, and the Shopify Services Account for commercial or business purposes, in the ordinary course of business, and not for personal, family, consumer, or household purposes;

7.14.       not, without Our prior written consent, merge or consolidate with or into any other business entity or enter into any joint venture or partnership with any person, firm, or corporation;

7.15.       be solely responsible for the payment of any fees and charges imposed on Lender with respect to the Accounts or any processing agreement with the Processor or Other Processor;

7.16.       provide promptly to Lender, from time to time at Lender's request, purchase transaction files maintained by Borrower and any other information related to past purchases, Shopify Account Credits, or the transactions contemplated by this Agreement, whether created for the purpose of audit or otherwise, and such information about Your financial condition and operations as We may from time to time reasonably request;

7.17.       maintain on Your property insurance from responsible and reputable companies in such amounts and covering such risks as is prudent and is usually carried by companies engaged in businesses similar to that of Borrower; Borrower shall furnish Lender, on request, with certified copies of insurance policies or other appropriate evidence of compliance with the foregoing covenant;

7.18.       promptly provide notice to Us in writing upon becoming aware of any Event of Default, the occurrence or existence of an event which, with the passage of time or the giving of notice or both, would constitute an Event of Default, or any material adverse change in Your cash flow, business operation, or business ownership;

7.19.       provide to Lender, upon request, documentation confirming the authority of any Authorized Representative;

7.20.       settle or “batch out” Your receipts with Processor or Other Processor on a daily basis; and

7.21.       not make any changes to the SMBA, any other Account, or the Shopify Services Account that would adversely affect Lender.

8.       Events of Default

In addition to the events of default identified elsewhere in this Agreement, You will be in default under this Agreement and an “Event of Default” will be deemed to have occurred if:

8.1.       you fail to pay any of the Total Payment Amount when due;

8.2.       during the term of the Loan, Processor, Other Processor, or Lender initiates transfers for Make-up Payments in connection with more than three separate Daily Payments;

8.3.       you breach any of the representations or warranties made in this Agreement or any other term of this Agreement;

8.4.       you fail to perform or complete any covenant in this Agreement;

8.5.       you make a misrepresentation or omission in connection with your application for a Loan or the servicing of your Loan;

8.6.       you seek to close or terminate Your Shopify Services Account, SMBA, or any substitute Account while there is an Outstanding Total Payment Amount;

8.7.       you become insolvent, file for bankruptcy protection, dissolve, die, or become incapacitated;

8.8.       you attempt to terminate this Agreement while there is an Outstanding Total Payment Amount;

8.9.       you authorize any third party, without Our prior written consent, to divert payments away from Your SMBA or substitute Account;

8.10.       you sell, transfer, or otherwise encumber or attempt to sell, transfer, or otherwise encumber Collateral without Our prior written consent;

8.11.       you sell all or substantially all of Your assets used in the operation of Your business to a third party without Our prior written consent;

8.12.       you become a party to or the subject of any agreement, pursuant to or as a result of, which any person or group of persons acquires, controls, directly or indirectly, Your business, without Our prior written consent;

8.13.       you materially change the operation of Your business (including, without limitation, shutting down or ceasing operations or changing industry, concept, size, etc.) without Our prior written consent;

8.14.       you stop accepting a particular method of payment while You remain open for business;

8.15.       you change Your legal name or jurisdiction of formation or carry-on business through a different business entity without Our prior written consent;

8.16.       a default or other similar event occurs under any other loan agreement or merchant cash advance agreement You have with Lender or an affiliate of Lender;

8.17.       you breach any other agreement you have with Us, the Processor, or Other Processor, including, but not limited to, the Processor Terms of Service, the Shopify Terms of Service, and the Shopify Acceptable Use Policy;

8.18.       you close or suspend your Shopify Services Account;

8.19.       you decide, for whatever reason, to cease doing business; or

8.20.       you take or fail to take an action that hinders Our taking delivery of the Daily Payments or Make-Up Payments.

9.       Consequences of Event of Default

Upon an Event of Default, Lender in its sole and absolute discretion may, in addition to exercising all rights and remedies available under applicable law, and as otherwise set forth in this Agreement, and without waiver of any such rights and remedies:

9.1.       declare the Outstanding Total Payment Amount and any other Obligations or liabilities of Borrower to Lender to be forthwith due and payable immediately. At Our option (subject to any applicable law to the contrary), You agree to pay Lender any and all damages Lender incurs, including, without limitation, reasonable attorney's fees and court costs if permitted by applicable law, in any way relating to the Loan, this Agreement, any Account, any substitute account, or an Event of Default, and agree to hold Lender harmless from any liability it may have to any other person(s) as a result of the Event of Default, the Loan or any Obligation.

9.2.       take any of the following actions, or direct Processor or any Other Processor to take any or all of the following actions on Lender's behalf, in order to enforce Lender's rights to collect from Borrower any amount due and owing as a result of such Event of Default:

9.2.1.       place limitations on and/or deduct funds owed to Lender from any Account; and/or

9.2.2.       offset any amounts You owe under this Agreement against amounts to which You may be entitled under any agreement You have entered into with Us or an affiliate; and/or

9.2.3.       freeze, suspend, halt, terminate, or otherwise cease in any manner, any services We or an affiliate of Ours may provide You or Your affiliates.

10.       Miscellaneous

10.1.       Modifications; Amendments. No modification, amendment, waiver, or consent of any provision of this Agreement will be effective unless it is in writing and signed by the Lender

10.2.       Assignment. We may assign, transfer, or sell Our right to receive the Total Payment Amount or any other rights hereunder or delegate Our duties hereunder, either in whole or in part, without prior notice to You, and without Your consent. Borrower may not assign or transfer its rights and obligations hereunder, either in whole or in part, without prior written consent from Us, which consent We may withhold in Our sole and absolute discretion.

10.3.       Governing Law/Forum. Except as set forth in the Arbitration Provision: (a) this Agreement, any transactions it contemplates, the construction of the terms of the Agreement, and all transactions, and the interpretation, performance, and enforcement of the rights and duties of You and Us, will be governed by and construed in accordance with federal law and, to the extent state law applies, the laws of the State of Utah without regard to conflicts of law principles; and (b) the parties agree that federal law and, to the extent state law applies, the laws of Utah govern the entire relationship between the parties, including, without limitation, all issues or claims arising out of, relating to, in connection with, or incident to this Agreement and any transaction it contemplates, whether such claims are based in tort or contract, or arise under statute or in equity. The parties acknowledge and agree that this Agreement is made and performed in Utah.

10.4.       Survival. Except as set forth in the Arbitration provisions, all provisions of this Agreement, including Section 12, that by their nature are intended to survive Your performance of all obligations hereunder will survive and remain in full force and effect.

10.5.       Waiver; Remedies. We reserve the right, at any time and in Our sole and absolute discretion, not to exercise any of Our other rights under this Agreement and, should We do so, We will not waive Our right to exercise the right as set forth in this Agreement in the future. Without limiting the foregoing, We may, at Our option, accept partial payments without notifying You and without releasing You from Your obligation to pay all amounts owing under this Agreement in full or to otherwise perform the terms and conditions of this Agreement. You understand and agree that Your obligation to pay all amounts owing under this Agreement and otherwise to perform the terms and conditions of this Agreement are absolute and unconditional. No failure on Our part to exercise, and no delay in exercising, any right under this Agreement constitutes a waiver of such right, nor will any single or partial exercise of any right under this Agreement preclude any other or further exercise of that right or the exercise of any other right. The remedies provided in this Agreement are cumulative and not exclusive of any remedies provided by law or equity.

10.6.       Severability. In case any of the provisions in this Agreement are found to be invalid, illegal, or unenforceable in any respect by a court of competent jurisdiction, the validity, legality, and enforceability of any other provision contained herein will not in any way be affected or impaired, and that court will have the power to rewrite that provision to the maximum extent enforceable and the remainder of this Agreement will continue in full force and effect.

10.7.       Counterparts; Electronic Signatures. This Agreement may be signed in one or more counterparts, each of which constitutes an original and all of which when taken together constitute the same agreement. Electronic signatures will be deemed manual signatures, and each party to this Agreement may rely on an electronic signature as an original for purposes of enforcing this Agreement. For the avoidance of doubt, Borrower's acceptance of the Agreement by clicking “Submit Application” will be deemed to constitute such party's electronic signature and effective as a manual signature of each such party.

10.8.       Entire Agreement. This Agreement constitutes the entire agreement between Borrower and Lender relating to this Loan and supersedes any other prior or contemporaneous agreement between You and Us relating to this Loan.

10.9.       Inspection of Place of Borrower. We or Our designated representatives and agents have the right during Your normal business hours and at other reasonable times to examine Your business where located, including the interior and exterior. Any such examination may include, among other things, whether You have a place of business that is separate from any personal residence, are open for business, have sufficient inventory to conduct Your business, and have one or more point-of-sale terminals to process payment transactions. When performing an examination, We or Our designated representatives and agents may photograph the interior and exterior of any of Your places of business, including any signage and may photograph any principals.

10.10.       Publicity. You and each Owner authorize Us to use Your name in a listing of clients and in advertising and marketing materials.

10.11.       Binding Effect. This Agreement is binding upon and inures to the benefit of You and Us and Our respective successors and permitted assigns.

10.12.       Maximum Interest Rate. Regardless of any provisions contained in this Agreement or in any of the other Loan documents, Lender shall never be deemed to have contracted for or be entitled to receive, collect, or apply as interest (whether explicit or deemed to be interest by judicial determination or operation of law) on the Loan, any amount in excess of the maximum rate of interest permitted to be charged by applicable law, and, in the event Lender receives, collects, or applies as interest any such excess, such amount that would be excessive interest shall be deemed to be a partial prepayment of principal and treated hereunder as such, and if the principal balance of the Loan is paid in full, any remaining excess shall forthwith be paid to Borrower. In determining whether or not the interest paid or payable under any specific contingency exceeds the highest lawful rate, Borrower and Lender shall, to the maximum extent permitted under applicable law: (a) characterize any non-principal payment (other than payments that are expressly designated as interest payments hereunder) as an expense, fee, or premium, rather than as interest; (b) exclude voluntary prepayments and the effect thereof; and (c) spread the total amount of interest throughout the entire contemplated term of the Loan so that the interest rate is uniform throughout such term.

10.13.       Headings. Section headings are for convenience of reference only and shall in no way affect the interpretation of this Agreement.

10.14. Information Sharing between Lender, Processor, and Other Processor. You authorize Lender to share with its affiliates, Processor, and Other Processor any information in Lender's records related to this Loan, including information about Your payment history. You also authorize Lender's Processor or Other Processor to share with Lender any information in their records related to Your Shopify Services Account or any Account and any services Borrower obtains pursuant to the Processor or Other Processor. You also authorize Other Processor to share with Lender any information in its records related to any Other Business Credits, any Shopify Services account, and any Other Business Account. You agree that there is no limitation on the purpose for which Lender may share such information with its affiliates, Processor, or Other Processor or for which Lender's affiliates, Processor, or Other Processor may share such information with Lender. You further agree that Lender, Processor, and Other Processor may use such information in their sole and absolute discretion.

10.15. Disclosure.

10.15.1.       Neither party will disclose the other's Confidential Information to any third parties, except that Lender may make any disclosures: (a) contemplated by this Agreement; (b) that are reasonably necessary for consummation of this Agreement; (c) to its affiliates, members, managers, investors, prospective investors, financing sources, and equity holders and any external accountants, agents, attorneys, and other advisors; (d) to Processor or Other Processor; (e) as required or requested by any regulatory authority or examiner; (f) any insurance association; (g) as required by any applicable law, court decree, subpoena, or legal or administrative order or process; (h) in connection with the exercise of any remedy hereunder; or (i) as agreed by Borrower.

10.15.2.       Borrower understands and agrees that the terms and conditions of the products and services offered hereunder, including this Agreement and any other agreement related hereto (“Lender Information”), are proprietary and Confidential Information of Lender. Accordingly, unless disclosure is required by law or court order, Borrower shall not disclose any Lender Information to any other person other than an attorney, accountant or financial advisor who needs to know such information for purposes of advising Borrower; provided such person uses such Lender Information solely for the purposes of advising Borrower and first agrees not to disclose any Lender Information to any person.

10.16.       Credit Reports. Borrower acknowledges that We may report information about Borrower's obligation under this Agreement to credit bureaus. A default under this Agreement may be reflected in Borrower's credit report.

10.17.       Right To Cancel. Within three (3) business days of the Effective Date, You may cancel this Agreement by notifying Us in writing and returning to Lender the full amount advanced by Lender to Your SMBA on the Effective Date. Such notice and return of the amount of the Loan must be received by Us prior to midnight on the third business day after the Effective Date. Instructions for the return of the amount of the Loan will be provided by Lender upon receipt of notice of cancellation.

10.18.       Processor Waiver. You waive and release any and all claims You may have against Processor or Other Processor that are in any way related to its respective duties as a processor.

10.19.       Indemnity; Limitation of Liability. YOU, YOUR SUCCESSORS AND PERMITTED ASSIGNEES AND AFFILIATES, AGREE TO FOREVER PROTECT, INDEMNIFY, AND “HOLD HARMLESS” US, PROCESSOR, OTHER PROCESSOR(S), AND THEIR AND OUR RESPECTIVE SUCCESSORS, ASSIGNS, OFFICERS, DIRECTORS, EMPLOYEES, MANAGERS, MEMBERS, AGENTS, AND AFFILIATES, AGAINST ALL DAMAGES, EXPENSES, CLAIMS, SUITS, DEMANDS, COSTS, ATTORNEYS' FEES OR LOSSES, ARISING OUT OF OR ALLEGED TO HAVE ARISEN OUT OF OR IN CONNECTION WITH YOUR CONDUCT OF YOUR BUSINESS, YOUR PERFORMANCE, OR NON-PERFORMANCE UNDER THIS AGREEMENT, THE DELIVERING OF ANY PAYMENTS TO US AS DESCRIBED IN THIS AGREEMENT AND THE EXERCISE OF ANY OF OUR RIGHTS AS DESCRIBED IN THIS AGREEMENT. IN NO EVENT WILL WE, OUR AFFILIATES, PROCESSOR, OR OTHER PROCESSOR(S) BE LIABLE TO YOU OR TO ANY THIRD PARTY FOR ANY LOSS OF USE, REVENUE OR PROFIT OR LOSS OF DATA OR FOR ANY DIRECT, CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, OR PUNITIVE DAMAGES, WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, REGARDLESS OF WHETHER SUCH DAMAGE WAS FORESEEABLE AND WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

10.20.       Power of Attorney. You grant to Us an irrevocable power of attorney, coupled with an interest, and appoint Us and Our designees as Your attorney-in-fact to take any and all actions necessary or appropriate to direct new or additional processors to make payment to Us as contemplated by this Agreement.

11.       Communications Between You and Lender.

11.1.       Notices. All notices, requests, consents, demands, and other communications hereunder must be in writing and delivered by electronic mail or certified mail, return receipt requested, to the respective parties to this Agreement, in the case of the Borrower, at the Borrower's addresses set forth in the Shopify Admin, and in the case of the Lender to 100 Shockoe Slip, 2nd Floor, Richmond, VA 23219 or capital-support@shopify.com.

11.2.       Consent to Electronic Disclosures. You consent to receive electronically any disclosure, notice, or communication that is required by law to be provided in writing at any email address you provide to Us. You agree to maintain up to date hardware and software that is capable of receiving and retaining such materials, and You also agree to promptly notify Us of any change to your email address so that you can continue to receive such materials from Us.

11.3. Telephone, Text, and Email Servicing Communications. We may use automated telephone dialling, text messaging systems, and electronic mail to provide messages to You about the Loan. The telephone messages may be played by a machine automatically when the telephone is answered, whether answered by You or another party. These messages may also be recorded by Your answering machine or voicemail. You give Us permission to call or send a text message to any telephone number that You or Your Authorized Representative have given Us and to play pre-recorded or artificial messages or send text messages with information about this Agreement, the SMBA or Your Loan over the phone. You also give Us permission to communicate such information to You via electronic mail. You agree that We will not be liable to You for any such calls or electronic communications, even if information is communicated to an unintended recipient. You understand that, when You receive such calls or electronic communications, You may incur a charge from the company that provides You with telecommunications, wireless, and/or Internet services. You agree that We have no liability for such charges. You agree to immediately notify Us if You change telephone numbers or are otherwise no longer the subscriber or customary user of a telephone number You have previously provided to Us.

11.4. Monitoring and Recording. We, Processor, or Other Processor may monitor, tape, or electronically record Our telephone calls with You.

12.       Arbitration Provision with Class Action Waiver.

12.1.       You and We (which for the purposes of this Section 12 includes Shopify Inc. and Shopify Capital Inc.) agree to resolve any and all claims and disputes relating in any way to this Agreement or Our dealings with You (“Claims”), except for Claims concerning the validity, scope, or enforceability of this Section 12 (“Arbitration Provision”), through BINDING INDIVIDUAL ARBITRATION. Notwithstanding the foregoing, You or We may bring an individualized action in small claims court for Claims within the jurisdiction of that court. This Arbitration Provision is made with respect to transactions involving interstate commerce and shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16 (the “FAA”), and not by state law.

12.2.       Individual Arbitration. By entering into this Arbitration Provision, neither You nor We will be able to have the dispute settled by a court or jury trial or to participate in a class action, collective action, class arbitration, or other representative action or proceeding. Other rights that You and We would have if You or We went to court will not be available or will be more limited in arbitration, including the right to appeal. You and We each understand that by agreeing to resolve any dispute through individual arbitration, WE ARE EACH WAIVING THE RIGHT TO A COURT OR JURY TRIAL. YOU AND WE AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN YOUR OR OUR INDIVIDUAL CAPACITY AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING. The arbitrator(s) may not consolidate more than one party's claims and may not otherwise preside over any form of a representative or class proceeding. Further, the arbitrator may award declaratory or injunctive relief only in favor of the individual party seeking relief and only to the extent necessary to provide relief warranted by that party's individual claim. If applicable law precludes enforcement of any of this paragraph's limitations as to a particular claim for relief, then that claim (and only that claim) must be severed from arbitration and may be brought in court. If any portion of this Arbitration Provision other than this paragraph's limitations is deemed invalid or unenforceable, it shall not invalidate the remaining portions of this Arbitration Provision.

12.3.       Arbitration Rules. Arbitration of any dispute under this Arbitration Provision shall be administered by JAMS pursuant to the applicable rules of JAMS in effect at the time the arbitration is initiated. You may contact JAMS to obtain information about arbitration, by calling 800-352-5267 or visiting www.jamsadr.com. If JAMS is unable or unwilling to administer the arbitration of a dispute, then a dispute may be referred to any other arbitration organization You and We agree upon or to an arbitration organization or arbitrator appointed pursuant to section 5 of the FAA. Arbitrations shall be conducted before a single arbitrator. Any in-person arbitration shall take place in the federal judicial district in which Your physical address is located unless otherwise agreed by You and Us in writing. If Your claim is for $10,000 or less, We agree that You may choose whether the arbitration will be conducted solely on the basis of documents submitted to the arbitrator, through a telephonic hearing, or by an in-person hearing as established by the JAMS rules. If Your claim exceeds $10,000, the right to a hearing will be determined by the JAMS rules.

12.4.       Regardless of the manner in which the arbitration is conducted, the arbitrator shall issue a reasoned written decision sufficient to explain the essential findings and conclusions on which the award is based. The arbitrator shall apply applicable substantive law consistent with the FAA and applicable statutes of limitations and shall be authorized to award any relief that would have been available in court, provided that the arbitrator's authority to resolve claims and make awards is limited to You and Us alone, except as otherwise specifically stated herein. The decision by the arbitrator shall be final and binding. You and We agree that this Arbitration Provision extends to any other parties involved in any Claims, including but not limited to Your and Our employees, affiliated companies, and vendors. In the event of any conflict between this Arbitration Provision and the JAMS arbitration rules or the rules of any other arbitration organization or arbitrator, this Arbitration Provision shall govern.

12.5.       Arbitration Fees and Costs. Except as otherwise provided for herein, We will pay all JAMS filing, administration, and arbitrator fees. If, however, the arbitrator finds that either the substance of Your claim or the relief sought in Your arbitration demand is frivolous or brought for an improper purpose (as measured by the standards set forth in Federal Rule of Civil Procedure 11(b)), then the payment of such fees will be governed by the JAMS rules. In such case, You agree to reimburse Us for all monies previously disbursed by Us that are otherwise Your obligation to pay under the JAMS rules. In addition, if You initiate an arbitration in which You seek more than $75,000 in damages, the payment of these fees will be governed by the JAMS rules.

12.6.       Arbitration Provision Is Optional. YOU HAVE THE RIGHT TO REJECT THIS ARBITRATION PROVISION, BUT YOU MUST EXERCISE THIS RIGHT PROMPTLY. If You do not wish to be bound by this agreement to arbitrate, You must notify Us in writing within sixty (60) days after the date of this Agreement. You must send Your request to: 100 Shockoe Slip, 2nd Floor Richmond, VA 23219, or to contract_notices@shopify.com. The request must include Your full name, address, Shopify Store name, d/b/a name (if applicable), and the statement “I reject the Arbitration Provision contained in my Shopify Loan Agreement.” If You exercise Your right under this Section 12.6 to reject arbitration, the other terms of this Agreement shall remain in full force and effect as if You had not rejected arbitration. Opting out of this Arbitration Provision has no effect on any other or future arbitration agreements that You may have with Us.

13.       Register.

13.1.       You agree that Lender, on Your behalf, may maintain a register in order to record the amount of Your Loan and the current or future owner of Your Loan (including any assignee, participant or transferee, if any, who becomes the subsequent owner of any portion of Your Loan) (the “Register”). The parties hereto agree that the entity whose name is recorded in the Register as the current owner of Your Loan is treated as the owner of Your Loan. The Register must be updated for any transfer of ownership of Your Loan to occur.

13.2.       By clicking on “Submit Application” You are signing this Agreement electronically. You agree that your electronic signature is the equivalent of a physical signature. You further agree, on behalf of Your business First Person Inc., as Borrower, to the terms of this Agreement, which includes an arbitration and waiver of class action provision, and

You agree that You are an Authorized Representative of Borrower and acknowledge that You received a copy of this Agreement.

EX-10.26

Exhibit 10.26

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FUTURE RECEIVABLES SALE AND PURCHASE AGREEMENT

This agreement (“Agreement”), dated 06/08/2023, between Fundonatic (“Purchaser”) and the seller(s) listed herein (collectively, the “Seller”) (all capitalized terms shall have the meanings ascribed to them below):

Merchant’s Legal Name: FIRST PERSON and all entities listed on Exhibit F

D/B/A: FIRST PERSON

Business Entity: CORPORATION Business EIN Number: [***]

Physical Address: 611 N BRAND BLVD STE 1300 Merchant S.S. Number: [***]

City: GLENDALE State: CA Zip: 913203

Mailing Address: 611 N BRAND BLVD STE 1300

City: GLENDALE State: CA Zip: 91203

Purchase Price		Receipts Purchased		Specified %			Scheduled Remit
$	225,000.00	$	292,500.00		4.68	%	$	1,950.00

*Accurate contact information is required to provide the Seller with important information regarding the Agreement. Concurrently with the execution of this Agreement by Seller, and as condition to the effectiveness hereof, Seller has caused the Personal Guarantee of Performance in the form attached hereto as “Exhibit B” (Exhibit B - Personal Guaranty of Performance) to be signed and delivered to PURCHASER by the following Owner(s)/Guarantor(s) of Seller.

**Furthermore, in the event the Seller and/or Guarantor are comprised of more than one entity and/or individuals, then ALL such entities and/or individuals, respectively, shall sign the Addendum to this Agreement in the form attached hereto as “Exhibit F” (Exhibit F - Multiple Entities). All such entities on Exhibit F shall be treated as additional Sellers or Guarantors and, therefore, the terms of this Agreement shall be fully enforceable against all such entities and individuals.

***WHEREAS Seller is desirous to sell to PURCHASER, and PURCHASER is desirous to purchase from Seller a Specified Percentage of the Seller’s Future Receipts, but only on the terms and conditions set forth in this Agreement.

****This Agreement shall be owned and serviced by Fundersapp, LLC.

SELLER # 1 (Print)
By (First Name):	CORY	(Last Name):	ROSENBERG
Email:	cory.rosenberg@firstpersongroup.com	Business Phone:	[***]
(Title):	OWNER
SELLER # 2 (Print)
By (First Name):		(Last Name):
Email:		Business Phone:
(Title):
OWNER/GUARANTOR # 1 (Print)
By (First Name):	CORY	(Last Name):	ROSENBERG
Email:	cory.rosenberg@firstpersongroup.com	Business Phone:	[***]
(Title):	OWNER
OWNER/GUARANTOR # 2 (Print)
By (First Name):		(Last Name):
Email:		Business Phone:
(Title):

Owner(s)/Guarantor(s) Initials []

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This Future Receivables Sale and Purchase Agreement (the “Agreement”) by and between Fundonatic (the “Purchaser”), FIRST PERSON INC , with its primary place of business located at 611 N BRAND BLVD STE 1300 GLENDALE CA 91203 (the “Merchant”) and CORY ROSENBERG with their personal residence at [***] (the “Guarantor”) (collectively, the “Seller”), is entered into on the 8th of June , 20 23 (the “Effective Date”).

WHEREAS, the purpose of this Agreement is to set forth the terms and conditions in relation to the purchase of future receivables from the Seller;

WHEREAS, the Seller is entering into this Agreement voluntarily and has had ample opportunity to review this Agreement prior to executing it;

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein and for other valuable consideration, the sufficiency of which is agreed to by the parties hereto, the Purchaser and the Seller (collectively, the Parties”), hereby agree as follows:

I.	BASIC TERMS AND DEFINITIONS.
	a.	“Applicable Fees”: all initial costs and fees that Seller agrees to pay to the Purchaser as consideration. The total sum of the Applicable Fees shall be deducted from the Purchase Price prior to Seller receiving the funds from the Purchase Price (as defined below);
	b.	“Bank Holiday”: Business Days (as defined below) in which major banks are closed for business;
	c.	“Business Day”: Monday through Friday, with the exception of bank holidays;
	d.	“Daily Receipts”: the amount of Future Receipts (as defined below) received by Seller on a daily basis;
	e.	“Effective Date”: the date set forth in the preamble of this Agreement;
	f.	“Future Receipts”: all of the Seller’s receipts of monies for the sale of its goods and services after the Effective Date of this Agreement;
	g.	“Net Funding”: the consideration transferred to Seller after the Applicable Fees and Origination Fees (as defined below) are deducted;
	h.	“Obligations”: the terms and conditions the Purchaser is bound to under this Agreement;
	i.	“Origination Fee”: the agreed upon fee between the Seller and a third-party Broker, which shall be deducted from the Net Funding (as defined below);
	j.	“Parties”: collectively, the Purchaser, Merchant, Personal Guarantor and Seller;
	k.	“Prior Balance”: Outstanding balance on a previous executed Agreement between the Parties;
	l.	“Purchased Amount”: the total amount of the Specified Percentage of the Future Receipts that the Seller shall be under obligated to deliver and pay to the Purchaser;
	m.	“Purchase Price”: the total amount that the Purchase has agreed to pay for the Purchased Amount;
	n.	“Scheduled Remittance”: the fixed amount that the Parties agree to be a good faith approximation of the Specified Percentage (as defined below) of the Seller’s Daily Receipts. Scheduled Remittance shall begin on 06/08/2023 and be processed daily. In the event a Scheduled Remittance is due on a banking holiday, Purchaser shall schedule an additional payment on the previous business day prior to said banking holiday; In the event the Parties agree to a weekly payment frequency, Purchaser shall have authority to adjust the weekly payment frequency to a daily payment frequency so long as the daily Scheduled Remittances is reduced so that aggregate amount of daily remittances is equal to the amount of the weekly Scheduled Remittances. (e.g. $500/week = $100/day).
	o.	“Specified Percentage”: 4.68% of each and every sum from sales made by the Seller of Future Receipts.

II.

TERM. This Agreement does not have a fixed duration and shall expire upon the date when the Purchased Amount and all other sums due to the Purchaser are paid in full (“Expiration Date”).

III.

SALE OF PURCHASED FUTURE RECEIPTS. Seller hereby irrevocably assigns, transfers and conveys onto Purchaser all of the Seller’s right, title and interest in the Specified Percentage of the Future Receipts until the Purchased Amount shall have been delivered by Seller to Purchaser (“Purchased Future Receipts”). This sale of the Purchased Future Receipts is made without express or implied warranty to Purchaser of collectability of the Purchased Future Receipts by Purchaser and without recourse against Seller and/or Guarantor(s), except as specifically set forth in this Agreement. By virtue of this Agreement, Seller transfers to Purchaser full and complete ownership of the Purchased Future Receipts and Seller retains no legal or equitable interest therein.

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IV.	PAYMENT OF PURCHASE PRICE. As good faith consideration, Purchaser agrees to pay to Seller the Purchase Price, less any Applicable Fees, Prior Balance (if applicable) and Origination Fees, upon execution of this Agreement.
V.	USE OF PURCHASE PRICE. Seller hereby acknowledges and understands that: (i) Purchaser’s ability to collect the Purchased Amount (or any portion thereof) shall be contingent upon Seller’s continued operation of its business and successful generation of the Future Receipts until the Purchased Amount is delivered to Purchaser in full; and (ii) in the event of decreased efficiency or total failure of Seller’s business, Purchaser’s receipt of the full or any portion of the Purchased Amount may be delayed indefinitely. Based upon the forgoing, Seller agrees to use the Purchase Price exclusively for the benefit and advancement of Seller’s business operations and for no other purpose.
VI.	SCHEDULED REMITTANCE OF PURCHASED AMOUNTS. The Purchased Amount shall be delivered by the Seller to the Purchaser in the amount of the Scheduled Remittance on each Business Day commencing on the Effective Date. In the event a Scheduled Remittance is due on a Bank Holiday in which Purchaser’s ACH processor does not process payments, Purchaser shall schedule an additional ACH payment on the Business Day immediately preceding said Bank Holiday. The Scheduled Remittance amount on page one of this Agreement shall be the “Initial Scheduled Remittance” and shall be fixed unless such remittance is adjusted pursuant to the reconciliation procedure stated herein.
VII.	APPROVED BANK ACCOUNT AND CREDIT CARD PROCESSOR(S). During the term of this Agreement, the Seller shall: (i) deposit all Future Receipts into one (and only one) bank account, which shall be preapproved by the Purchaser (the “Approved Bank Account”); (ii) use one (and only one) credit card processor, which shall be preapproved by the Purchaser (the “Approved Processor”); and (iii) deposit all credit card receipts into the Approved Bank Account. In the event the Approved Bank Account or Approved Processor shall become unavailable or shall cease to operate during the term of this Agreement, Seller shall arrange for another Approved Bank Account or Approved Processor within twenty- four (24) hours.
VIII.	AUTHORIZATION TO DEBIT APPROVED BANK ACCOUNT. The Seller hereby authorizes the Purchaser to initiate electronic payments or ACH debits from the Approved Bank Account in the amount of the Scheduled Remittance on each Business Day commencing on the Effective Date until the Purchaser receives the full Purchased Amount. The Parties agree that the Seller shall provide Purchaser with all access code(s) for the Approved Bank Account.
IX.	FEES ASSOCIATED WITH DEBITING APPROVED BANK ACCOUNT. All fees, charges and expenses incurred by either Party due to rejected electronic checks, failed ACH debit attempts, overdrafts or rejections by Seller’s banking institution shall be the sole responsibility of the Seller.
X.	RECONCILIATION.

a. Seller’s Right for Reconciliation. The Parties each acknowledge and agree that:

i.	If at any time during the term of this Agreement Seller shall experience unforeseen decreases to their Daily Receipts, the Seller shall have the right, at its sole and absolute discretion, to request a modification to their Scheduled Remittance.
ii.	Such modification to their Scheduled Remittance (the “Reconciliation”) shall be performed by the Purchaser within five (5) Business Days following the written request by Seller for said Reconciliation.

b. Reconciliation Procedure.

i.	Seller shall submit a written request for Reconciliation via email to rec@fundersapp.com with the subject line, “REQUEST FOR RECONCILIATION”;
ii.	Said written request shall include a copy of the Seller’s most recent bank statement and credit card processing statement from the accounts previously provided by Seller to Purchaser based upon which the Initial Scheduled Remittance set forth in Section 1 above (or the then current Adjusted Scheduled Remittance, as the case may be) was determined.
iii.	The Purchaser shall have five (5) Business Days to review the Request for Reconciliation.
iv.	Any Request for Reconciliation must be initiated prior to the Expiration Date and Seller must not be in default as defined by this Agreement.

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c.

Warranties. The Seller shall have the right and sole responsibility to request Reconciliation as many times during the term of this Agreement as it deems proper so long as each such request is made in accordance with the terms of Reconciliation Procedure. Nothing set forth in this Agreement shall be deemed to provide the Seller with the right to interfere with the Purchaser’s right and ability to debit the Approved Bank Account while the request for Reconciliation is pending or until the Purchased Amount is collected by the Purchaser in full; or modify the amount of the Scheduled Remittance for any calendar month without prior approval of all Parties.

d.

Adjustment of the Initial Scheduled Remittance. Seller and Purchaser each acknowledge and agree that:

i.	Seller shall have the right, at its sole and absolute discretion, but subject to the provisions of this Section, to request modification (“Adjustment”) of the amount of the Initial Scheduled Remittance that Seller is obligated to deliver to Purchaser in accordance with the provisions of this Agreement. Such Adjustment shall become effective as of the date it is granted, and the new adjusted amount of the Initial Scheduled Remittance (the “Adjusted Scheduled Remittance”) shall replace and supersede the amount of the Initial Scheduled Remittances set forth in Section 1 above.
ii.	The Adjustment Scheduled Remittance that shall be debited from the Approved Bank Account until the Purchased Amount is paid in full.
iii.	One or more Adjustments performed by PURCHASER may substantially extend the term of this Agreement.
iv.	Purchaser may request a Reconciliation of Seller’s receivables at any time. Within 2 days of Purchaser’s request for Reconciliation, Seller must deliver its most recent bank statement and/or credit card processing statement previously provided by Seller to Purchaser based upon which statements the amount of the Initial Scheduled Remittance set forth in Section 1 above (or the then current Adjusted Scheduled Remittance, as the case may be) was determined. Purchaser may then make an Adjustment pursuant to its Reconciliation and make an Adjustment Scheduled Remittance or Adjusted Scheduled Remittance which shall take effect immediately. Seller’s refusal to deliver bank statements and/or credit card processing statements pursuant to Purchaser’s Reconciliation request may be considered interference with Purchaser’s rights under this Agreement and, therefore, deemed a default of this Agreement.

XI. SELLER’S RIGHT TO ACCELERATE REMITTANCE OF THE OUTSTANDING PORTION OF THE PURCHASED AMOUNT OF FUTURE RECEIPTS (“OUTSTANDING PAFR”).

a. Seller shall have the right, at any time after receipt of the Purchase Price and upon obtaining Purchaser’s prior written consent to accelerate the delivery of the undelivered portion of the Purchased Amount of Future Receipts (the “Outstanding PAFR”) so long as:

i.	the Outstanding PAFR is paid in full;
ii.	such notice shall be in writing stating the exact amount due and delivery date of payment; and
iii.	Scheduled Remittances continue as schedule until the Outstanding PAFR is paid to the Purchaser.

b. Upon proper delivery of the Outstanding PAFR to Purchaser and written confirmation by Purchaser, Seller’s obligations to the Purchaser shall be deemed completed and fulfilled.

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XII. PURCHASER’S RIGHTS AND OBLIGATIONS UPON RECEIPT OF OUTSTANDING PAFR.

a.	Purchaser shall notify the Approved Bank Account and cease Scheduled Remittances or Adjusted Scheduled Remittances payments to Purchaser’s bank account within three (3) business days.
b.	In the event Purchaser shall receive Scheduled Remittances or Adjusted Scheduled Remittance after the Accelerated Delivery Date, Purchaser shall immediately:

i.	Return to Seller the total sum of the Scheduled Remittances or Adjusted Scheduled Remittance payments received after the delivery of the Outstanding PAFR to Purchaser; or
ii.	Apply the total sum of the Scheduled Remittances or Adjusted Scheduled Remittance received by Purchaser after the Accelerated Delivery Date toward Seller’s outstanding financial obligations to Purchaser existing as of the Accelerated Delivery Date.

c. Seller acknowledges and agrees that the Purchaser shall have the right to apply the total sum of the Scheduled Remittances or Adjusted Scheduled Remittance received by the Purchaser after the Accelerated Delivery Date toward Seller’s outstanding financial obligations between the Parties.

XIII. RISK SHARING ACKNOWLEDGMENTS AND ARRANGEMENTS. The Parties each hereby acknowledge and agree that:

a.	The Purchased Future Receipts represent a portion of Seller’s Future Receipts.
b.	This Agreement consummates the sale of the Purchased Future Receipts at a discount, not the borrowing of funds by the Seller from Purchaser. Purchaser does not charge the Seller and will not collect from the Seller any interest on the monies used by the Purchaser for the purchase of the Purchased Future Receipts.
c.	The period of time that it will take the Purchaser to collect the Purchased Amount is not fixed, is unknown to both Parties at this time and will depend on the success of the Seller’s business.
d.	The amount of the Scheduled Remittance is calculated based upon the information concerning an average amount of Daily Receipts collected by the Seller’s business immediately prior to the Effective Date of this Agreement, as well as representations regarding the Seller’s estimated Future Receipts provided by the Seller to the Purchaser.
e.	The amount of Seller’s future Daily Receipts may increase or decrease over time.
f.	Seller may not be in breach or in default of this Agreement in the event the full Purchased Amount is not remitted because the Seller’s business went bankrupt or otherwise ceased operations in the ordinary course of business.

i. EXCEPTION: Seller will be deemed in breach or in default if the Seller’s business goes bankrupt or ceases operations due to the Seller’s willful or negligent mishandling of its business or Seller purposefully failing to comply with the obligations or this Agreement.

g.	The Purchaser agrees to purchase the Purchased Future Receipts knowing the Seller’s business may slow down or fail.
h.	The Purchasers assumes the risk based exclusively upon the information provided to it by the Seller and is detrimentally relying on the Seller’s representations, warranties and covenants contained in this Agreement.
i.	The Purchaser hereby acknowledges and agrees that Seller may be excused from performing its obligations under this Agreement in the event Seller’s business ceases its operations exclusively due to the following (collectively, the “Valid Excuses”):

i.	Adverse business conditions that occurred for reasons outside of Seller’s control and are not due to Seller’s willful or negligent mishandling of its business;
ii.	Loss of the premises where the business operates due to force majeure, provided that the Seller does not continue or resume business operations in another location;
iii.	Seller’s bankruptcy, so long as the Seller did not fraudulently, willfully or negligently refuse to disclose proper documentation to the Purchaser prior to the execution of this Agreement; or
iv.	Force majeure.

j. The Purchaser reserves the right to apply monies received pursuant to this Agreement first toward any fees and then toward the Purchased Amount.

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k.

The Parties agree that the Purchase Price is paid to the Seller in consideration for the acquisition of the Purchased Future Receipts and that payment of the Purchase Price by the Purchaser is not intended to be, nor shall it be construed as a loan from the Purchaser to the Seller that requires absolute and unconditional repayment on a specified maturity date. The Purchaser’s ability to receive the Purchased Amount is conditional upon the performance of the Seller’s business.

l.

In the event a court shall determine that the Purchaser has charged or received interest hereunder in excess of the highest rate allowed by law, the rate of such interest received by the Purchaser shall automatically be reduced to the maximum rate permitted by applicable law and the Purchaser shall promptly refund to the Seller any excess interest remitted.

XIV. APPLICABLE FEES. The Parties acknowledge the Applicable Fees were agreed upon prior to the Seller entering into this Agreement, were subject to arms-length negotiations between the Parties and a detailed list of the Applicable Fees is set forth in Exhibit A of this Agreement.

XV. ORIGINATION FEE. To the extent that the Seller has agreed to a Broker Fee with a third-party broker, the Seller hereby requests and agrees for the Purchaser to withhold the Broker Fee from the Purchase Price and for the Purchaser to pay the third-party broker directly.

XVI. NO OTHER REDUCTIONS OF PURCHASE PRICE. The Seller hereby:

a.	Agrees to pay the Applicable Fee, the Prior Balance and the Origination Fee (collectively, the “Closing Costs”) in full;
b.	Authorizes the Purchaser to apply a portion of the Purchase Price due to the Seller toward satisfaction of the Seller’s obligation to pay the Closing Costs by deducting them from the Purchase Price prior to delivering it to the Seller;
c.	Agrees that deduction of the Closing Costs from the Purchase Price shall not be deemed a reduction of the Purchase Price.

XVII. REPRESENTATIONS, WARRANTIES & COVENANTS. The Seller represents and warrants that as of the Effective Date and during the term of this Agreement:

a.	Financial Condition and Financial Information. The Seller’s bank and financial statements furnished to the Purchaser, along with any future statements which may be furnished hereafter, fairly represent the financial condition of the Seller on the date the statements are issued. Prior to the execution of this Agreement, there has been no material adverse changes, financial or otherwise, in the operation or ownership of the Seller. The Seller has a continuing, affirmative obligation to advise the Purchaser of any material adverse change in its financial condition, operation or ownership and/or banking log-in credentials. The Purchaser may request the Seller’s bank statements at any time until the Purchased Future Receipts are remitted to the Purchaser and the Seller shall provide such information to the Purchaser within five (5) business days. The Seller’s failure to provide such information or blocking access to the Approved Bank Account is deemed a material breach of this Agreement.
b.	Governmental Approvals. The Seller is in compliance and shall remain in compliance with all applicable laws and has the proper valid permits, authorizations and licenses to own, operate and lease its properties and to conduct the business in which its presently engaged.
c.	Good Standing. The Seller is a corporation/limited liability company/limited partnership/or other type of entity (“business entity”) that is in good standing and duly incorporated or otherwise organized and validly existing under the laws of its jurisdiction of incorporation or organization, and has the full power and authority necessary to carry its business as it is now being conducted. In the event the business entity is dissolved for any reason, the Seller shall advise the Purchaser within five (5) business days prior to the dissolution for any reason. This Agreement shall remain in full effect despite the dissolution of the business entity and any subsequent business entities formed by the Seller(s) may be responsible for the Purchased Future Receipts.

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d.	Authorization. The Seller represents has all requisite power to execute, delivery and perform this Agreement and consummate the transactions contemplated hereunder. The Seller also represents and warrants that entering into this Agreement will not result in the breach, violation or default under any other agreement or instrument by which the Seller is bound; nor are any statutes, rules, regulations, orders or other laws to which the Seller is subject to. The Seller further represents and warrants that entering into this Agreement does not require the obtaining of any consent, approval, permit or license from any governmental authority having jurisdiction over the Seller. All organization and other proceedings required to be taken by the Seller to authorize the execution, delivery and performance of this Agreement have already been taken. The Personal Guarantor signing this Agreement on behalf of the Sellers has full power and authority to bind the Seller to perform its obligations under this Agreement.
e.	Accounting Records and Tax Returns. The Seller will treat the receipt of the Purchase Price and payment of the Purchased Amount in a manner evidencing sale of its future receipts in its accounting records and tax returns and further agrees that the Purchaser is entitled to audit the Seller’s accounting records and tax returns upon reasonable notice in order to verify compliance. The Seller hereby waives any rights of privacy, confidentiality or taxpayer privilege in any litigation or arbitration arising out of this Agreement in which the Seller asserts that this transaction is anything other than a sale of future receipts.
f.	Taxes; Workers Compensation Insurance. The Seller has paid and will continue to promptly pay, when due, all taxes, including, without limitation, income, employment, sales and use taxes imposed upon the Seller’s business by law. The Seller further asserts they will maintain workers compensation insurance required by applicable governmental authorities.
g.	No Diversion of Future Receipts. The Seller shall not allow any event to occur that would cause a diversion of any portion of the Seller’s Future Receipts from the Approved Bank Account or Approved Processor without the Purchaser’s written permission.
h.	Change of Name of Location. The Seller, any successor-in-interest of the Seller and the Guarantor shall not conduct Seller’s business under any name other than those disclosed to the Approved Processor and the Purchaser. The Seller shall not change or transfer ownership or change its place of business without obtaining prior written consent of the Purchaser. This Agreement shall be enforceable against any successors-in-interest of the Seller or alter ego entities.
i.	Prohibited Business Transactions. The Seller shall not: transfer or sell all or substantially all of its assets without first obtaining prior written consent of the Purchaser.
j.	No Closing of the Business. The Seller will not sell, dispose, transfer or otherwise convey all or substantially all of its business or assets without first: (i) obtaining the express prior written consent of the Purchaser; and (ii) upon obtaining written consent, providing the Purchaser with a copy of the executed Agreement between the Seller and the third-party. The Seller agrees that until the Purchaser shall receive the Purchased Amount in full, the Seller will not voluntarily close its business either temporarily for repairs, renovations or any other purpose; or permanently. In the event repairs or renovations are required as per legal authorities having jurisdiction over the Seller’s business or such closing is necessitated by circumstances outside of the Seller’s reasonable control, the Seller shall provide the Purchaser with written notice as soon as the Seller is aware.
k.	No Pending Bankruptcy. As of the Effective Date, the Seller is not insolvent, has not filed, does not contemplate filing any petition for bankruptcy protection. There has been no involuntary bankruptcy petition brought or pending against the Seller. The Seller represents hat it has not consulted with a bankruptcy attorney on the issue of filing bankruptcy or some other insolvency proceeding within six months immediately preceding the Effective Date of this Agreement.
l.	Unencumbered Future Receipts. The Seller has and will continue to have good, complete and marketable title to all Future Receipts, free and clear of any and all liabilities, liens, claims, changes, restrictions, conditions, options, rights, mortgages, security interests, equities, pledges and encumbrances of any kind or nature whatsoever or any other rights or interests other than by virtue of entering into this Agreement. Seller specifically warrants and represents that it is not currently bound by the terms of any future receivables or factoring agreement which may encumber in any way the Future Receipts.

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m.	No Stacking. The Seller shall not enter into any third-party agreement which may encumber on the Future Receipts purchased by the Purchaser.
n.	Business Purpose. The Seller is entering into this Agreement solely for business purposes and not as a consumer for personal, family or household purposes.
o.	No Default Under Contracts with Third-Parties. The Seller’s execution and/or performance of its obligations under this Agreement will not cause or create an event of default by the Seller under any contract in which Seller is or may be a party to.
p.	Right of Access. The Seller hereby grants the Purchaser the right to enter, without prior notice, the premises of the Seller’s business for the purpose of inspecting or checking the Seller’s transaction processing terminals to ensure the terminals are properly programmed to submit and/or batch Seller’s daily receipts to the Approved Processor and to ensure that the Seller has not violated any provisions of this Agreement. The Seller hereby grants the Purchaser access to the Seller’s employees, records and all other items located at the Seller’s place of business during the term of this Agreement. Seller hereby agrees to provide the Purchaser any and all information concerning the Seller’s business operations, banking relationships, names and contact information of the Seller’s suppliers, vendors and landlord(s) and allows the Purchaser to contact said third-parties at any time.
q.	Phone Recordings. The Parties agree that any call between the Parties and its owners, managers, employees, and agents may be recorded and/or monitored. The Seller acknowledges and agrees that the Seller may be contacted by the Purchaser or any of their authorized representatives at any time regarding the performance of the Seller’s obligations pursuant to this Agreement. The Seller further acknowledges and agrees they will not claim that such communications are unsolicited or inconvenient.
r.	Authorized Representative. The Parties agree and acknowledge the signatories to this Agreement are authorized to make managerial and financial decisions on behalf of the Seller with respect to this Agreement and have such knowledge, experience and skill in financial and business matters, thus having the capability of evaluating the merits and risks of this Agreement.
s.	Attorney Representation. The Sellers acknowledge and agree that they had read and fully understand the content of this Agreement; had the opportunity to consult with Seller’s own counsel in connection with entering into this Agreement; and had made sufficient inquiries to determine this Agreement is fair and reasonable to the Seller.
t.	No Additional Fees Charged. The Parties agree other than the Closing Costs, if any, the Purchaser is not charging any additional fees to the Seller.

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XVIII. PLEDGE OF SECURITY

a.	Pledge. As security for the prompt and complete payment and performance of any and all liabilities, obligations, covenants or agreements of the Seller pursuant to this Agreement (collectively, the “Obligations”), the Seller hereby pledges, assigns and hypothecates to the Purchaser (the “Pledge”) and grants to the Purchaser a continuing, perfected and first priority lien upon and security interest in all of the Seller’s rights, titles and interest in all accounts, including, but not limited to: deposit accounts, accounts receivables, other receivables, chattel paper, documents, equipment, general intangibles, instruments and inventory (collectively, the “Collateral”), whether now existing or hereinafter acquired. The Purchaser reserves the right to file a UCC-1 lien at any time during the course of this Agreement.
b.	Termination of the Pledge. Upon the payment in full of the Obligations by the Seller, the security interest in the Collateral pursuant to this Pledge shall automatically terminate without any further act of either Party and all rights to the Collateral shall revert back to the Seller. Upon Seller’s request, the Purchaser will execute, acknowledge and deliver such satisfactions, releases and termination statements, in writing.
c.	Representations. The Seller hereby represents and warrants to the Purchaser that the execution, delivery and performance by the Seller of this Pledge, and the remedies in respect to the Collateral under this Pledge:

i.	Are duly authorized;
ii.	Do not require the approval of any governmental authority or any other third-party;
iii.	Do not and shall not violate or result in the breach of any provision of law or regulation, any order or decree of any court or other governmental authority; or
iv.	Do not violate, result in the breach of or constitute a default under, or conflict with any indenture, mortgage, deed of trust, agreement or any other instrument to which the Seller is a party or by which any of the Seller’s assets are bound.

d.  Further Assurances. Upon the request of the Purchaser, the Seller, at its sole cost and expense, shall execute and deliver all such further UCC-1s, continuation statements, assurances and assignments of the Collateral and any other documents the Purchaser may request in order to more fully effectuate the purposes of this Pledge and the assignment of the Collateral to obtain the full benefits of this Pledge and the rights and powers herein created.

XIX. DEFAULTS AND REMEDIES.

a. Events of Default. The Seller is deemed to have constituted an “Event of Default” if:

i.	The Seller shall violate any term, condition or covenant in this Agreement governing the Seller’s obligations of timely delivery of the Scheduled Remittances or Adjusted Scheduled Remittance to the Purchaser;
ii.	The Seller shall violate any term, condition, or covenant in this Agreement in regard to any other sums due for any reason whatsoever other than as the result of the Seller’s business ceasing its operations exclusively due to any of the Valid Excuses;
iii.	Seller knowingly or willfully provides incorrect, false or misleading information to the Purchaser at any time;
iv.	The Seller’s violation any term, condition or covenant in this Agreement;
v.	The Seller uses multiple depository accounts without obtaining prior written consent of the Purchaser;
vi.	The Seller fails to deposit any portion of its Future Receipts into the Approved Bank Account;
vii.	The Seller changes the Approved Bank Account or Approved Processor without obtaining prior written consent of the Purchaser;
viii.	The Seller interferes with the Purchaser’s collection of the Scheduled Remittance or Adjusted Scheduled Remittance, including, but not limited to the Seller interfering with ACH Payments;
ix.	Two (2) or more ACH transactions attempted by the Purchaser are rejected by the Seller’s Bank;

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x.	The Seller takes on additional financing (known as “Stacking”) at any times after the Effective Date and prior to the final payment pursuant to this Agreement; or
xi.	The Guaranty shall for any reason cease to be in full force and effect.
xii.	Seller notifies Purchaser that it is unilaterally terminating the Agreement or Seller notifies Purchaser of Seller’s intent to breach the Agreement.
xiii.	Seller transfers or sells all or substantially all of its assets without the prior written consent of Purchaser.
xiv.	Seller transports, moves, interrupts, suspends, dissolves, or terminates its business without the prior written consent of Purchaser other than (a) a bankruptcy filing which shall not be an event of default or (b) if Seller goes out of business in ordinary course, which shall also not be an event of default.
xv.	Seller its username and/or password credentials to Approved Bank Account or removes Purchaser’s online access to the Approved Bank Account without giving Purchaser at least twenty-four-hour advance written notice of said change with the updated username and password.
xvi.	On three or more Scheduled Remittances, Seller fails to give Purchaser advance notice that there will be insufficient funds in the Approved Bank Account such that the ACH of the Scheduled Remittance will not be honored by Seller’s bank, and has not requested a reconciliation in accordance with the Reconciliation Procedure provided in this Agreement, and fails to reasonably respond to Purchaser’s communications seeking to ascertain the circumstances of the insufficient funds.
xvii.	Seller causes its account to stop allowing Purchaser to withdraw the Scheduled Remittance from the Approved Bank Account and (a) Seller does not notify Purchaser, within two business days of a valid reason for causing the account to stop clearing payments, and (b) Seller has not requested a Reconciliation as provided herein.
xviii.	Seller refuses to participate in a reconciliation to adjust the Scheduled Remittances pursuant to the Reconciliation Procedure.
xix.	Seller notifies Purchaser that it is unable or unwilling to collect all or some of Seller’s receivables that have been sold to Purchaser pursuant to this Agreement and Seller Refuses to provide to Purchaser a list of Seller’s Account Debtors to Purchaser or interferes with Purchaser’s ability to collect the Estimated Purchased Percentage from the Account Debtors.

b.

Seller’s Obligations Upon Default. Upon occurrence of an Event of Default due to the Seller’s breach of its obligations under this Agreement, the Seller shall immediately deliver to the Purchaser the entire unpaid portion of the Purchased Amount. The Seller shall also pay to the Purchaser any reasonable expenses incurred by the Purchaser in connection with recovering the monies due to the Purchaser pursuant to this Agreement, including, without limitation, the cost of retaining collection firms and reasonable attorneys’ fees which shall include a 33% contingency fee of the amount demanded and disbursements (collectively, “Reasonable Damages”). The Parties agree the Reasonable Damages are either Twenty-Five Percent (25%) of the undelivered portion of the Purchased Amount upon the occurrence of an event of default, or Twenty-Five Hundred Dollars ($2,500.00), whichever is greater. The entire sum due shall bear simple interest from the Default Date until it is paid in full, at a rate of Nine Percent (9%) per annum, with interest accruing daily.

c.

Remedies. Upon the Seller’s default, the Purchaser may immediately proceed to protect and enforce its rights under this Agreement by:

i.	Enforcing its rights as a creditor, including, but not limited to, notifying any account debtor(s) of the Seller’s of the Purchaser’s security interest;
ii.	Enforcing the provisions of the Personal Guarantee of Performance against the Guarantor(s) without first seeking recourse from the Seller for the full balance owed at the time of default, plus applicable fees and costs;
iii.	Notifying the Seller’s credit card processor of this Agreement and to direct such credit card processor to make payments directly to the Purchaser of any and all amounts received by said credit card processor on behalf of the Seller;
iv.	Commencing a law suit, whether for specific performance of any covenant, agreement or other provision contained herein, or to enforce the discharge of the Seller’s obligations hereunder, or any other legal or equitable right or remedy;

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v.	In case any Event of Default occurs and it is not waived, the Purchaser will be entitled to the issuance of an injunction, restraining order, or any other equitable relief in Purchaser’s favor, subject to court approval, restraining the Seller’s accounts and/or receivables up to the amount due to the Purchaser as a result of the Event of Default and the Seller will be deemed to have consented to the granting of an application for the same to any court of competent jurisdiction without any prior notice to the Sellers and without the Purchaser being required to furnish a bond or other undertaking in connection with the application;
vi.	In case the Guarantor’s obligations become due hereunder and are not waived, the Purchaser will be entitled to the issuance of an injunction, restraining order, or other equitable relief in the Purchaser’s favor, subject to court approval, restraining the Seller and Guarantor’s accounts and/or receivables up to the amount due to the Purchaser as a result of the Event of Default, and the Seller and Guarantor, each, in their individual capacities, will be deemed to have consented to the granting of an application for the same to any court of competent jurisdiction, without any prior notice to the Seller or Guarantor and without the Purchaser being required to furnish a bond or other undertaking in connection with the application.
vii.	Purchaser may debit any of Seller’s depository accounts wherever situated by means of ACH debit or facsimile signature on a computer-generated check drawn on Seller’s bank account or otherwise for all sums due to Purchaser.

d. Power-of-Attorney. The Seller irrevocably appoints the Purchaser and its representatives as its agents and attorneys-in-fact with the full authority to take any action or execute any instrument or document: (i) to settle all obligations due to the Purchaser from any credit card processor and/or account debtor(s) of the Seller; (ii) upon occurrence of an Event of Default, to perform any and all obligations of the Seller under this Agreement to protect the value of the Collateral by obtaining the required insurance; (iii) to collect monies due or to become due under or in respect of any of the Collateral; (iv) to receive, endorse and collect any checks, notes, drafts, instruments, documents or chattel paper in connection with this Agreement; (v) to sign the Seller’s name on any invoice, bill of lading, or assignment directing customers or account debtors (collectively, “Account Debtors”) to make payment directly to the Purchaser; and (vi) to file any claims or take any action or institute any proceeding which the Purchaser may deem necessary for the collection of any of the unpaid Purchased Amount from the Collateral, or otherwise enforce its rights with respect to the collection of the Purchased Amount.

XX. MISCELLANEOUS

a.	Seller Deposit Agreement. The Seller shall execute an agreement with the Purchaser that shall authorize the Purchaser to arrange for electric fund transfers and/or ACH Payments of the Scheduled Remittances or Adjusted Scheduled Remittance from the Approved Bank Account. The Seller shall provide the Purchaser and/or its authorized agent with all the information, authorizations and passwords necessary to verify the Seller’s receivables, receipts and deposits in the Approved Bank Account. The Seller shall authorize the Purchaser and/or its agent to deduct the payments to Purchaser. The authorization shall be irrevocable until such time when the Seller shall has satisfied its obligations under this Agreement.
b.	Indemnification. The Seller and its Guarantor(s) jointly and severally indemnify and hold harmless to the fullest extent permitted by law the Approved Processor, any ACH processor, customer and/or Account Debtors of the Seller, their officers, directors and shareholders against any and all losses, damages, claims, liabilities and expenses incurred by the ACH processor, customer, and/or Account Debtors of the Seller resulting from claims asserted by the Purchaser for monies owed to the Purchaser from the Seller and actions taken by any ACH Processor, customer and/or Account Debtor of the Seller in reliance upon the information or instructions provided by the Purchaser.
c.	No Liability. In no event shall the Purchaser be liable for any claims asserted by the Seller or its Guarantor under any legal theory for lost profits, lost revenues, lost business opportunities, exemplary, punitive, special, incidental, indirect or consequential damages, each of which is hereby knowingly and voluntarily waived by the Seller and Guarantor.

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d.	Modifications; Agreements. No modification, amendment, waiver or consent of any provision of this Agreement shall be effective unless the same shall be in writing and signed by both Parties.
e.	Assignments. The Purchaser may assign, transfer or sell its rights or delegate its duties hereunder, either in whole or in part, without prior notice to the Seller. The Seller may not assign its rights or obligations under this Agreement without obtaining Purchaser’s prior written consent. The Purchaser reserves the right to deny such consent.
f.	Notices. Unless different means of delivering notices are set forth, all notices, requests, consent, demands and other communications hereunder shall be delivered via certified mail, return receipt requested, to the respective Parties at the addresses listed in the preamble of this Agreement.
g.	Waiver Remedies. The Parties agree and acknowledge the Purchaser reserves any rights pursuant to this Agreement.
h.	Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns.
i.	Governing Law, Venue and Jurisdiction. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, except that Merchant shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of Purchaser which consent may be withheld in Purchaser’s sole discretion. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, Connecticut, or Texas. Any suit, action or proceeding arising hereunder, or the interpretation, performance, or breach hereof, shall be, if Purchaser so elects, instituted in a state court sitting in the State of New York, Texas, Connecticut, County of New Haven, without regard to conflict of law provisions (the “Acceptable Forum”). The parties agree that the Acceptable Forum shall be the sole and exclusive forum for any and all disputes arising out of or relating to this Agreement and the Parties agree that the Acceptable Forum is convenient and submit to the jurisdiction of the Acceptable Forum and waive any and all objections to jurisdiction or venue. Should a proceeding be initiated in any other forum, the parties waive any right to oppose any motion or application made by either party to transfer such proceeding to an Acceptable Forum.
j.	PREJUDGMENT REMEDY WAIVER. EACH AND EVERY MERCHANT AND GUARANTOR OF THIS AGREEMENT, AND EACH OTHER PERSON OR ENTITY WHO MAY BECOME LIABLE FOR ALL OR ANY PART OF THIS OBLIGATION, HEREBY ACKNOWLEDGE THAT THE TRANSACTION OF WHICH THIS AGREEMENT IS A PART IS A COMMERCIAL TRANSACTION, AND TO THE EXTENT ALLOWED UNDER CONNECTICUT GENERAL STATUTES SECTIONS 52-278a TO 52-278m, INCLUSIVE, OR BY OTHER APPLICABLE LAW EACH AND EVERY MERCHANT AND GUARANTOR OF THIS AGREEMENT HEREBY WAIVE (A) ALL RIGHTS TO NOTICE AND PRIOR COURT HEARING OR COURT ORDER IN CONNECTION WITH ANY AND ALL PREJUDGMENT REMEDIES TO WHICH PURCHASER MAY BECOME ENTITLED BY VIRTUE OF ANY DEFAULT OR PROVISION OF THIS AGREEMENT OR SECURITY AGREEMENT SECURING THIS AGREEMENTAND (B) ALL RIGHTS TO REQUEST THAT PURCHASER POST A BOND, WITH OR WITHOUT SURETY, TO PROTECT SAID MERCHANT OR GUARANTOR AGAINST DAMAGES THAT MAY BE CAUSED BY ANY PREJUDGMENT REMEDY SOUGHT OR OBTAINED BY PURCHASER BY VIRTUE OF ANY DEFAULT OR PROVISION OF THIS AGREEMENT OR SECURITY AGREEMENT SECURING THIS AGREEMENT.

AS PART OF THE SAID PREJUDGMENT REMEDY WAIVER ABOVE, EACH AND EVERY MERCHANT AND GUARANTOR OF THIS AGREEMENT, AND EACH OTHER PERSON OR ENTITY WHO MAY BECOME LIABLE FOR ALL OR ANY PART OF THIS OBLIGATION HEREBY ACKNOWLEDGE, UNDERSTAND, AGREE AND CONSENT THAT PURCHASER MAY ATTACH OR GARNISH ANY AND ALL OF MERCHANT AND GUARANTOR’S MONEY HELD IN ANY BANK ACCOUNT AT A BANKING INSTITUTION IF THAT BANKING INSTITUTION HAS A BRANCH, ATM OR OFFICE PHYSICALLY LOCATED IN CONNECTICUT AND/OR IS REGISTERED TO CONDUCT BUSINESS IN CONNECTICUT.

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k.	Survival of Representation. All representations, warranties and covenants herein shall survive the execution and delivery of this Agreement shall continue in full force until all the obligations under this Agreement have been satisfied in full and this Agreement shall have expired.
l.	Severability. In case any of the provisions of this Agreement are found to be invalid, illegal, or unenforceable in any respect, the validity, legality and enforceability of any other provisions contained herein shall not in any way be affected or impaired. Any provision of this Agreement that may be found by a court having jurisdiction to be prohibited by law shall be ineffective only to the extent of such prohibition without invalidating the remaining provisions hereof.
m.	Entire Agreement. This Agreement embodies the entire agreement between the Parties and supersedes all prior agreements and understandings relating to the subject matter hereof. Each Party hereto has had the opportunity to consult with legal counsel of their choosing regarding the terms and condition of this Agreement, before executing this Agreement.
n.	Jury Trial Waiver. THE PARTIES HERETO WAIVE TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION OR PROCEEDING ON ANY MATTER ARISING IN CONNECTION WITH OR IN ANY WAY RELATED TO THE TRANSACTIONS OF WHICH THIS AGREEMENT IS A PART OR THE ENFORCEMENT HEREOF. EACH PARTY HERETO ACKNOWLEDGES THAT IT MAKES THIS WAIVER KNOWINGLY, WILLINGLY AND VOLUNTARILY AND WITHOUT DURESS, AND ONLY AFTER EXTENSIVE CONSIDERATION AND DISCUSSIONS OF THE RAMIFICATIONS OF THIS WAIVER WITH ITS ATTORNEYS.
o.	Class Action Waiver. EACH PARTY HERETO WAIVES ANY RIGHT TO ASSERT ANY CLAIMS AGAINST THE OTHER PARTY, AS A REPRESENTATIVE OR MEMBER IN ANY CLASS OR REPRESENTATIVE ACTION, EXCEPT WHERE SUCH WAIVER IS PROHIBITED BY LAW OR IS AGAINST PUBLIC POLICY. TO THE EXTENT EITHER PARTY IS PERMITTED BY LAW OR COURT OF LAW TO PROCEED WITH A CLASS OR REPRESENTATIVE ACTION AGAINST THE OTHER, THE PARTIES HEREBY AGREE THAT: (I) THE PREVAILING PARTY SHALL NOT BE ENTITLED TO RECOVER ATTORNEYS’ FEES OR COSTS ASSOCIATED WITH PURSUING THE CLASS OR REPRESENTATIVE ACTIONS; AND (II) THE PARTY WHO INITATETS OR PARTICIPATES AS A MEMBER OF THE CLASS WILL NOT SUBMIT A CLAIM OR OTHERWISE PARTICIPATE IN ANY RECOVERY THROUGH THE CLASS OR REPRESENTATION ACTION.
p.	Counterparts and Facsimile Signatures. This Agreement may be signed in one or more counterparts, each of which shall constitute an original and all of which, when taken together, shall constitute one and the same agreement.
q.	Attorney Review. The Parties acknowledge that they are commercial entities and/or sophisticated parties and have had the opportunity to consult with their respective legal counsel regarding this Agreement. Parties further acknowledge the terms of this Agreement are not to be construed against any Party because that Party drafted the Agreement or construed in favor of any Party because that Party failed to understand the legal effect of the provisions of this Agreement.

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r. Service of Process. Each Merchant and each Guarantor consent to service of process and legal notices made by First Class or Priority Mail delivered by the United States Postal Service and addressed to the address(es) set forth on the first page of this Agreement or any other address(es) provided in writing to the Purchaser by any Merchant or Guarantor, and unless applicable law or rules provide otherwise, any such service will be deemed complete upon dispatch. Each Merchant and each Guarantor agrees that it will be precluded from asserting that it did not receive service of process or any other notice mailed to the address(es) set forth on the first page of this Agreement if it does not furnish a certified mail receipt signed by the Purchaser that the Purchaser was provided with notice of a change in the contact address(es).

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the Effective Date.

SELLER # 1 (Print)
By (First Name):	CORY	(Last Name):	ROSENBERG
Email:	cory.rosenberg@firstpersongroup.com	Business Phone:	[***]
(Title):	OWNER
SELLER # 2 (Print)
By (First Name):		(Last Name):
Email:		Business Phone:
(Title):
OWNER/GUARANTOR # 1 (Print)
By (First Name):	CORY	(Last Name):	ROSENBERG
Email:	cory.rosenberg@firstpersongroup.com	Business Phone:	[***]
(Title):	OWNER
OWNER/GUARANTOR # 2 (Print)
By (First Name):		(Last Name):
Email:		Business Phone:
(Title):

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EXHIBIT A – APPLICABLE FEES

The Parties hereby acknowledge and agree to the following:

1.	Possible Conflicts. If there is any conflict or inconsistency between any of the provisions of this Addendum and any provisions of the Agreement to which this Appendix is attached, all such conflicts and inconsistencies shall follow the terms and conditions set forth in this Appendix.
2.	Additional Funding/”Stacking Fee”. In the event the Seller or Guarantor take on additional funding (“stacking”) at any point after being funded by the Purchaser, without prior written notice by the Purchaser, the Seller agrees to pay the Purchaser a $25,000 penalty or Ten Percent (10%) of the calculated payback amount, whichever is higher. The Purchaser reserves the right to declare the account in default at any point after receiving notice of unauthorized stacking, regardless of the payments made by the Seller or Guarantor.
3.	Additional Fees. The Purchaser does not permit unauthorized outside fees not previously disclosed. The fee amount for this agreement is contingent upon closing papers and will be held back from the funded amount.
4.	Authorization. The Seller hereby authorizes the Purchaser to apply a portion of the Purchase Price due to the Seller to satisfy the applicable fees as per this Agreement.
5.	No Reduction of Purchase Price. The Parties hereby agree that the deduction of the applicable fees from the Purchase Price shall not be deemed a reduction to the Purchase Price.
6.	Applicable Fees.

a.	Origination/Underwriting Fee (k.5) This fee is to cover the expenses associated with origination, underwriting and related expenses pursuant to this Agreement. If for any reason the Purchaser, in their sole capacity, decides to cancel the deal, the Parties agree the Seller is still responsible for this fee.
b.	Non-Sufficient Funds Fee (“NSF Fee”). $35.00 for each NSF
c.	Default Fee. In the event the Seller breaches this Agreement for any reason, a default fee of the greater of $2,500 or Twenty-Five Percent (25%) of the outstanding balance shall be added.
d.	Blocked Account Fee. In the event the Seller places a Stop-Payment on the Purchaser’s ACH or closes their bank account, a blocked account fee of $5,000 or Twenty-Five Percent (25%) of the outstanding balance shall be added. Purchaser may apply reasonable attorneys’ fees and up to 33% contingency fee of the amount demanded at the time of default.
e.	Bank Change Fee. In the event the Seller requests a change in bank accounts for the ACH payments, a $50.00 bank change fee shall be added.
f.	Wire Fee. In the event a Seller shall request a Fed Wire, a $50.00 wire fee shall be added.
g.	ACH Program Fee. $199.00 per month for the duration of the Agreement.
h.	Third-Party Intermediary Fee. In the event the Seller retains a third-party debt relief/re-negotiator entity or individual and contacts the Purchaser seeking to redirect communication regarding this Agreement, a $10,000 fee or Twenty-Five Percent (25%) of the outstanding balance shall be added. This fee shall be used to cover the additional expenses added in modifying the terms of this Agreement. Any portion of this fee that remains unused shall be returned to the Seller at the conclusion of this Agreement or related legal action.
i.	UCC Fee. $195.00

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j.	Collection Fees and Costs. In the event the Seller or Guarantor breaches the terms of this Agreement, the Seller and/or Guarantor shall be liable for Purchaser’s reasonable attorney’s fees, including Purchaser’s contingency fee equal to 33% of the outstanding balance and costs of collection and/or to enforce any term in the Agreement, in addition to any other damages awarded by a court.
k.	Additional Financing. The Seller agrees that if further financing from any other finance/factoring company is taken after the funding of this contract (also known as “stacking”), this will constitute an event of default of the Agreement and all balances, plus any applicable fees, become immediately due. The Seller agrees to pay a $25,000 penalty or Ten Percent (10%) of the calculated payback amount, whichever is higher, if additional financing is obtained.
l.	Third-Party Tax Verification Fee (TaxGuard 8821). When applicable, seller agrees to the cost ($199) of verifying the accuracy of current and past tax filings by a third party.

SELLER # 1 (Print)
By (First Name):	CORY	(Last Name):	ROSENBERG
Email:	cory.rosenberg@firstpersongroup.com	Business Phone:	[***]
(Title):	OWNER
SELLER # 2 (Print)
By (First Name):		(Last Name):
Email:		Business Phone:
(Title):
OWNER/GUARANTOR # 1 (Print)
By (First Name):	CORY	(Last Name):	ROSENBERG
Email:	cory.rosenberg@firstpersongroup.com	Business Phone:	[***]
(Title):	OWNER
OWNER/GUARANTOR # 2 (Print)
By (First Name):		(Last Name):
Email:		Business Phone:
(Title):

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EXHIBIT B – PERSONAL GUARANTY OF PERFORMANCE

This Personal Guaranty of Performance (the “Guaranty”) is entered into as of the 8th of June , 2023, by and between FIRST PERSON INC (the “Guarantor”) on behalf of CORY ROSENBERG (the “Seller”) and Purchaser, (the “Purchaser”)(collectively, the “Parties”).

WHEREAS, pursuant to the Agreement, the Purchaser has agreed to purchase a portion of Future Receipts of the Seller;

WHEREAS, the Guarantor is an owner, officer, director, or manager of the Seller, will directly benefit from entering into this Agreement;

WHEREAS, the Purchaser is not willing to enter into this Agreement unless Guarantor irrevocably, absolutely and unconditionally guarantees to the Purchaser prompt and complete performance of all obligations of the Seller under the Agreement;

NOW, THEREFORE, pursuant to the Parties desire to proceed with this Agreement and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, Guarantor hereby agrees as follows:

1.

Guaranty of Obligations. The Guarantor hereby irrevocably, absolutely and unconditionally guarantees to the Purchaser prompt, full, faithful and complete performance and observance of all of Seller’s Obligations under the Agreement. The Guarantor unconditionally covenants to the Purchaser in the event of a default or breach at any time by the Seller, the Guarantor shall be responsible for the Obligations and pay all damages and other amounts stipulated in the Agreement with respect to non-performance of the Obligations.

2.

Guarantor’s Covenants. The liability of the Guarantor shall not be impaired, abated, deferred, diminished, modified, released, terminated or discharged, in whole or in part, or otherwise affected, by any event, condition, occurrence, circumstance, proceeding, action or failure to act, with or without notice to, or the knowledge or consent of the Guarantor, including, without limitation:

a.	any amendment, modification or extension of the Agreement or any Obligation;
b.	any extension of time for performance, whether in whole or in part, of any Obligation given prior to or after default thereunder;
c.	any exchange, surrender or release, in whole or in part, of any security that may be held by the Purchaser at any time under the Agreement;
d.	any other guaranty in existence now or which may be executed by the Guarantor or any other third-party affiliated to the Seller;
e.	any waiver of or assertion or enforcement or failure or refusal to assert or enforce, in whole or in part, any Obligation, claim, cause of action, right or remedy which the Purchaser may, at any time, have under the Agreement or with respect to any guaranty or any security which may be held by the Purchaser at any time for or under this Agreement or with respect to the Seller;
f.	any act, omission or delay by the Purchaser which may in any manner or to any extent vary the risk of the Guarantor or which would otherwise operate as a discharge the Guarantor as a matter of law;
g.	the release of any other guarantor from liability for the performance or observance of any Obligation, whether by operation of law or otherwise;
h.	the failure to give the Guarantor any notice whatsoever; or
i.	any right, power or privilege that the Purchaser may now or hereafter have against any person, entity or collateral in relation to this Agreement.

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3.	Guarantor’s Additional Covenants. The Guarantor will not dispose, convey, sell or otherwise transfer, or call the Seller to dispose, convey, sell or otherwise transfer, any material business assets of the Seller outside of the ordinary course of the Seller’s business without the prior written consent of the Purchaser, which may be withheld by the Purchaser for any reason, until receipt of the entire Purchased Amount has been remitted to the Purchaser. The Guarantor shall pay to the Purchaser, upon demand, all expenses (including, without limitation, reasonable attorneys’ fees and disbursements) of, or incidental to, or relating to the enforcement or protection of the Purchaser’s rights hereunder or the Purchaser’s rights under this Agreement. This Guaranty is binding upon the Guarantor and the Guarantor’s heirs, legal representatives, successors and assigns and shall inure to the benefit of and may be enforced by the successors and assigns of the Purchaser. If there is more than one Guarantor, the obligations of the Guarantors hereunder shall be joint and several. The obligation of the Guarantor shall be unconditional and absolute, regardless of the unenforceability of any provision of any agreement between the Seller and the Purchaser, or the existence of any defense, setoff or counterclaim, which the Seller may assert. The Purchaser is hereby authorized, without notice or demand and without affecting the liability of the Guarantor hereunder, to at any time renew or extend the Seller’s obligations under this Agreement or otherwise modify, amend or change the terms of the Agreement. Additionally, the Guarantor is hereby notified and consents that a negative credit report reflecting their credit record may be submitted to a credit-reporting agency if the Guarantor does not honor the terms of this Guaranty.
4.	Waiver; Remedies. No failure on the part of the Purchaser to exercise, and no delay in exercising any right under this Guaranty shall constitute a waiver, nor shall any single or partial exercise of any right under this Guaranty preclude any other or further exercise any other rights. The remedies provided in this Guaranty are cumulative and not exclusive of any remedies provided by law or equity. In the event the Seller fails to perform any obligation under this Agreement, the Purchaser may enforce its rights under this Guaranty without first seeking to obtain performance for such default from the Seller or any other Guarantors.
5.	Acknowledge of Purchase. The Guarantor acknowledges and agrees that the Purchase Price paid by the Purchaser to the Seller in exchange for the Purchased Amount of Future Receipts is a payment for an adequate consideration and is not intended to be treated as a loan or financial accommodation from the Purchaser to the Seller. The Guarantor specifically acknowledges that the Purchaser is not a lender, bank or credit card processor, and the Purchaser has not offered any loans to the Seller. The Guarantor waives any claims or defenses of usury in any action arising out of this Guaranty. The Guarantor acknowledges that the Purchase Price paid to the Seller is good and valuable consideration for the sale of the Purchased Amount.
6.	Governing Law and Jurisdiction. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, except that Guarantor shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of Purchaser which consent may be withheld in Purchaser’s sole discretion. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, Connecticut, or Texas. Any suit, action or proceeding arising hereunder, or the interpretation, performance or breach hereof, shall be, if Purchaser so elects, instituted in a state court sitting in the State of New York, Texas, or Connecticut, County of New Haven, without regard to conflict of law provisions (the “Acceptable Forum”). The parties agree that the Acceptable Forum shall be the sole and exclusive forum for any and all disputes arising out of or relating to this Agreement and the Parties agree that the Acceptable Forum is convenient and submit to the jurisdiction of the Acceptable Forum and waive any and all objections to jurisdiction or venue. Should a proceeding be initiated in any other forum, the parties waive any right to oppose any motion or application made by either party to transfer such proceeding to an Acceptable Forum.
7.	Jury Waiver. The Parties waive the right to a trial by jury in any court in any suit, action or proceeding on any matter arising in connection with or in any way related to the transactions of which this Guaranty is a part of or its enforcement, except where such waiver is prohibited by law or deemed by a court of law to be against public policy. The Parties acknowledge that each Party makes this waiver knowingly, willingly and voluntarily and without duress, and only after extensive consideration of the ramifications of this waiver with their attorneys.

Owner(s)/Guarantor(s) Initials []

19

8.	Class Action Waiver. The Parties waive any right to assert any claims against the other Party as a representative or member in any class or representative action, except where such waiver is prohibited by law or deemed by a court of law to be against public policy to the extent either Party is permitted by law or court of law to proceed with a class or representative action against the other. The Parties further acknowledge and agree that in the event a class action does occur: (i) the prevailing party shall not be entitled to recover attorneys’ fees or costs associated with pursuing the class or representative action (not withstanding any other provision in this Agreement); and (ii) the Party who initiates or participates as a member of the class will not submit a claim or otherwise participate in any recovery secured through the class or representative action.
9.	Severability. In case any of the provisions of this Guaranty are found to be invalid, illegal, or unenforceable in any respect, the validity, legality and enforceability of any other provisions contained herein shall not in any way be affected or impaired. Any provision of this Guaranty that may be found by a court having competent jurisdiction to be prohibited by law shall be ineffective only to the extent of such prohibition without invalidating the remaining provisions hereof.
10.	Opportunity for Attorney Review. The Guarantor represents that they have carefully read this Guaranty and have had a reasonable opportunity to consult with their attorney. Guarantor understand the contents of this Guaranty and agrees to the terms and conditions of this Guaranty willfully and on their own accord.
11.	Counterparts and Facsimile Signatures. This Guaranty may be signed in one or more counterparts, each of which shall constitute an original and all of which, when taken together, shall constitute one and the same agreement.
12.	Service of Process. Each Merchant and each Guarantor consent to service of process and legal notices made by First Class or Priority Mail delivered by the United States Postal Service and addressed to the address(es) set forth on the first page of this Agreement or any other address(es) provided in writing to the Purchaser by any Merchant or Guarantor, and unless applicable law or rules provide otherwise, any such service will be deemed complete upon dispatch. Each Merchant and each Guarantor agrees that it will be precluded from asserting that it did not receive service of process or any other notice mailed to the address(es) set forth on the first page of this Agreement if it does not furnish a certified mail receipt signed by the Purchaser that the Purchaser was provided with notice of a change in the contact address(es).
13.	PREJUDGMENT REMEDY WAIVER. EACH AND EVERY GUARANTOR OF THIS AGREEMENT, AND EACH OTHER PERSON OR ENTITY WHO MAY BECOME LIABLE FOR ALL OR ANY PART OF THIS OBLIGATION, HEREBY ACKNOWLEDGE THAT THE TRANSACTION OF WHICH THIS AGREEMENT IS A PART IS A COMMERCIAL TRANSACTION, AND TO THE EXTENT ALLOWED UNDER CONNECTICUT GENERAL STATUTES SECTIONS 52-278a TO 52-278m, INCLUSIVE, OR BY OTHER APPLICABLE LAW EACH AND EVERY GUARANTOR OF THIS AGREEMENT HEREBY WAIVE (A) ALL RIGHTS TO NOTICE AND PRIOR COURT HEARING OR COURT ORDER IN CONNECTION WITH ANY AND ALL PREJUDGMENT REMEDIES TO WHICH PURCHASER MAY BECOME ENTITLED BY VIRTUE OF ANY DEFAULT OR PROVISION OF THIS AGREEMENT OR SECURITY AGREEMENT SECURING THIS AGREEMENTAND (B) ALL RIGHTS TO REQUEST THAT PURCHASER POST A BOND, WITH OR WITHOUT SURETY, TO PROTECT SAID GUARANTOR AGAINST DAMAGES THAT MAY BE CAUSED BY ANY PREJUDGMENT REMEDY SOUGHT OR OBTAINED BY PURCHASER BY VIRTUE OF ANY DEFAULT OR PROVISION OF THIS AGREEMENT OR SECURITY AGREEMENT SECURING THIS AGREEMENT.

Owner(s)/Guarantor(s) Initials []

20

AS PART OF THE SAID PREJUDGMENT REMEDY WAIVER ABOVE, EACH AND EVERY GUARANTOR OF THIS AGREEMENT, AND EACH OTHER PERSON OR ENTITY WHO MAY BECOME LIABLE FOR ALL OR ANY PART OF THIS OBLIGATION HEREBY ACKNOWLEDGE, UNDERSTAND, AGREE AND CONSENT THAT PURCHASER MAY ATTACH OR GARNISH ANY AND ALL OF GUARANTOR’S MONEY HELD IN ANY BANK ACCOUNT AT A BANKING INSTITUTION IF THAT BANKING INSTITUTION HAS A BRANCH, ATM OR OFFICE PHYSICALLY LOCATED IN CONNECTICUT AND/OR IS REGISTERED TO CONDUCT BUSINESS IN CONNECTICUT.

SELLER # 1 (Print)
By (First Name):	CORY	(Last Name):	ROSENBERG
Email:	cory.rosenberg@firstpersongroup.com	Business Phone:	[***]
(Title):	OWNER
SELLER # 2 (Print)
By (First Name):		(Last Name):
Email:		Business Phone:
(Title):
OWNER/GUARANTOR # 1 (Print)
By (First Name):	CORY	(Last Name):	ROSENBERG
Email:	cory.rosenberg@firstpersongroup.com	Business Phone:	[***]
(Title):	OWNER
OWNER/GUARANTOR # 2 (Print)
By (First Name):		(Last Name):
Email:		Business Phone:
(Title):

Owner(s)/Guarantor(s) Initials []

21

EXHIBIT C – ACH AUTHORIZATION

This ACH Authorization (the “ACH”) is entered into on _06/08/2023 , by and between Fundonatic (“Purchaser”), FIRST PERSON INC_d/b/a FIRST PERSON (the “Merchant”) and CORY ROSENBERG (the “Guarantor”) (collectively, the “Parties”).

1.	Bank Account Access. Prior to entering into this Agreement, as part of the underwriting process, Purchaser will require access to the Merchant’s bank accounts via online bank access. Once the Agreement is executed, Purchaser requires daily viewing access to the Merchant’s bank account(s) to confirm the appropriate processing of the Scheduled Remittances. This information is strictly confidential.
2.	Bank Login Authorization. Upon execution of the ACH, the Merchant and Guarantor(s) understand that they are authorizing Purchaser and its agents unlimited “view only” access into any and all bank accounts, credit unions or financial institutions linked directly or indirectly to the businesses or entities listed as parties of this Agreement for the duration of the Agreement. Access is limited to viewing accounts and does not permit Purchaser to make any changes other than saving electronic transactional history. If at any time the Merchant or Guarantor changes their account credentials, they are required to provide Purchaser updated credentials. Refusal to provide access to accounts shall be deemed a default of this Agreement.
3.	Account Holder Information.

● Account Holder Name: FIRST PERSON INC

● Account Holder DBA: FIRST PERSON

● Account Holder Business Address: 611 N BRAND BLVD STE 1300 GLENDALE CA 91203

4. Account Holder’s Bank Information. If there are multiple bank accounts, please provide the following information for each bank account on a separate page and annex hereto.

● Account Holder Bank Name(s): na

● Bank Portal Website: na

● Bank Account Number: na

● Bank Routing Number: na

● Bank Account Username: na

● Bank Account Password: na

● Security Question / Answer 1: na

● Security Question / Answer 2: na

Owner(s)/Guarantor(s) Initials []

22

5. Transaction Information:

● Amount of Transaction: $ 1,950.00

● Effective Date: 06/08/2023

● Rate of Collection: Daily

6. Complete ACH Authorization. As per the ACH, the undersigned hereby authorizes Purchaser to electronically draft via the Automated Clearing House system the amounts indicated above from the account identified above. This authority will continue until withdraw in writing by the undersigned account holder. The undersigned hereby certifies that they are duly authorized to execute this form on behalf of the above listed account holder. The Merchant acknowledges they are responsible for $35 rejection fee if items are returned for insufficient funds.

I, the undersigned, acknowledge and agree with these items, which are described in detail within the pages of this ACH.

AUTHORIZED ACCOUNT HOLDER (MERCHANT)

SELLER # 1 (Print)
By (First Name):	CORY	(Last Name):	ROSENBERG
Email:	cory.rosenberg@firstpersongroup.com	Business Phone:	[***]
(Title):	OWNER
SELLER # 2 (Print)
By (First Name):		(Last Name):
Email:		Business Phone:
(Title):
OWNER/GUARANTOR # 1 (Print)
By (First Name):	CORY	(Last Name):	ROSENBERG
Email:	cory.rosenberg@firstpersongroup.com	Business Phone:	[***]
(Title):	OWNER
OWNER/GUARANTOR # 2 (Print)
By (First Name):		(Last Name):
Email:		Business Phone:
(Title):

Owner(s)/Guarantor(s) Initials []

23

EXHIBIT D - WAIVER OF PERSONAL SERVICE

This Addendum (“Addendum”) is to be made a part of the purchase and sale of future receivables agreement (the “Contract”) between Fundonatic (“Purchaser”) and FIRST PERSON INC (“Merchant”) and CORY ROSENBERG (“Guarantor”) (collectively the “Parties”) dated 06/08/2023.

1.	Merchant hereby irrevocably and unconditionally waives personal service of any summons, complaint, or other process, which may be made by any other means permitted by New York law. Merchant understands and agrees that an action, lawsuit, or controversy may be taken up and considered by a court without any further notice. Merchant further agrees to waive any objection to the absence of formal service of process.
2.	Guarantor hereby irrevocably and unconditionally waives personal service of any summons, complaint, or other process, which may be made by any other means permitted by New York law. Guarantor understands and agrees that an action, lawsuit, or controversy may be taken up and considered by a court without any further notice. Guarantor further agrees to waive any objection to the absence of formal service of process.
3.	MERCHANT HEREBY AGREES TO ACCEPT SERVICE OF ANY SUMMONS, COMPLAINT, OR OTHER PROCESS BY ELECTRONIC MAIL (“EMAIL”) OR BY UNITED STATES POSTAL SERVICE (“USPS”) AT THE ADDRESSES LISTED BELOW OR BY ANY OTHER MEANS PERMITTED BY NEW YORK LAW.
4.	GUARANTOR HEREBY AGREES TO ACCEPT SERVICE OF ANY SUMMONS, COMPLAINT, OR OTHER PROCESS BY ELECTRONIC MAIL (“EMAIL”) OR BY UNITED STATES POSTAL SERVICE (“USPS”) AT THE ADDRESSES LISTED BELOW OR BY ANY OTHER MEANS PERMITTED BY NEW YORK LAW.
5.	Service shall be effective upon sending the electronic mail or depositing the summons and complaint in a USPS mailbox. Merchants’ or Guarantors’ email address or physical address provided shall be presumed to be valid and current unless Merchants or Guarantors provide a new email or physical address for service of process.
6.	Merchant or Guarantor shall notify Purchaser of any changes to its physical address or email address for service. Unless Seller is notified of a change in address, all addresses shall be presumed to be accurate.
7.	This Addendum shall supersede any inconsistent notice requirements in the Contract with respect to service of process.
8.	Any parties, including additional guarantors shall agree to waive service of process and accept service at the email address provided or last known address.

SELLER # 1 (Print)
By (First Name):	CORY	(Last Name):	ROSENBERG
Email:	cory.rosenberg@firstpersongroup.com	Business Phone:	[***]
(Title):	OWNER
SELLER # 2 (Print)
By (First Name):		(Last Name):
Email:		Business Phone:
(Title):
OWNER/GUARANTOR # 1 (Print)
By (First Name):	CORY	(Last Name):	ROSENBERG
Email:	cory.rosenberg@firstpersongroup.com	Business Phone:	[***]
(Title):	OWNER
OWNER/GUARANTOR # 2 (Print)
By (First Name):		(Last Name):
Email:		Business Phone:
(Title):

Owner(s)/Guarantor(s) Initials []

24

EXHIBIT E - REFERENCE FORM

Reference Form Must be Completed Prior to Funding

Contact Information:
	Guarantor Name:	CORY ROSENBERG
	Phone Number:	[***]
	Email:	cory.rosenberg@firstpersongroup.com
Personal Reference #1:
	Name:	na
	Phone Number:	na
Personal Reference #2:
	Name:	na
	Phone Number:	na
Business Reference #1:
	Company Name:	na
	Contact Name:	na
	Business Phone:	na
Business Reference #2:
	Company Name:	na
	Contact Name:	na
	Business Number:	na
Landlord Contact:
	Company Name:	na
	Contact Name:	na
	Business Number:	na
Emergency Contact:
	Name:	na
	Relationship:	na
	Phone Number:	na
	Email:	na

Owner(s)/Guarantor(s) Initials []

25

EXHIBIT F - MULTIPLE ENTITIES

This Addendum is entered on 06/08/2023, by and between Fundonatic LLC and FIRST PERSON INC (the “Merchant”), and all the entities listed on this Addendum (understood as additional sellers/guarantors to the contract), and Funders App, LLC.

Business Legal Name: ______________________________________________ EIN: ___________________________

D/B/A: _________________________________________________________________________________________

Address: ________________________________________________________________________________________

Form of Business Entity: ____________________________________________________________________________

(“Seller #2”); and

Business Legal Name: ______________________________________________ EIN: ___________________________

D/B/A: _________________________________________________________________________________________

Address: ________________________________________________________________________________________

Form of Business Entity: ___________________________________________________________________________

(“Seller #3”); and

Business Legal Name: ______________________________________________ EIN: ___________________________

D/B/A: _________________________________________________________________________________________

Address: ________________________________________________________________________________________

Form of Business Entity: __________________________________________________________________________

(“Seller #4”); and

SELLER # 1 (Print)
By (First Name):	CORY	(Last Name):	ROSENBERG
Email:	cory.rosenberg@firstpersongroup.com	Business Phone:	[***]
(Title):	OWNER
SELLER # 2 (Print)
By (First Name):		(Last Name):
Email:		Business Phone:
(Title):
OWNER/GUARANTOR # 1 (Print)
By (First Name):	CORY	(Last Name):	ROSENBERG
Email:	cory.rosenberg@firstpersongroup.com	Business Phone:	[***]
(Title):	OWNER
OWNER/GUARANTOR # 2 (Print)
By (First Name):		(Last Name):
Email:		Business Phone:
(Title):

Owner(s)/Guarantor(s) Initials []

26

EXHIBIT G - BALANCE TRANSFER FORM

This Addendum is entered on _06/08/2023 , by and between Fundonatic and _FIRST PERSON INC (the “Merchant”), and all the entities listed on this Addendum (understood as additional sellers/guarantors to the contract) and Funders App, LLC.

Merchant’s Legal Name:_FIRSTPERSON INC____________________________________________________________

D/B/A: FIRST PERSON _____________________________________________________________________________

Business Entity: CORPORATION________________________________ Business EIN Number: [***]

Physical Address: 611 N BRAND BLVD STE 1300 ______________________________________________

City: GLENDALE__________________ State: CA Zip: 91203

BALANCE TRANSFER DETAILS:

Date of new secured agreement: 06/08/2023________________________________________________________

Date of previous secured agreement: ____________________________________________________________

Remaining RTR balance: $ 0.00_________________________________________________________________

I, Merchant, on behalf of Business, hereby authorize Fundonatic to debit the remaining RTR balance which is currently due and owing to Fundonatic pursuant to the previous secured merchant agreement, entered into by and between Fundonatic and business.

I acknowledge that as a result of the above-referenced debit, the amount paid to business by Fundonatic pursuant to the new secured agreement will be reduced by the amount of the remaining RTR.

SELLER # 1 (Print)
By (First Name):	CORY	(Last Name):	ROSENBERG
Email:	cory.rosenberg@firstpersongroup.com	Business Phone:	[***]
(Title):	OWNER
SELLER # 2 (Print)
By (First Name):		(Last Name):
Email:		Business Phone:
(Title):
OWNER/GUARANTOR # 1 (Print)
By (First Name):	CORY	(Last Name):	ROSENBERG
Email:	cory.rosenberg@firstpersongroup.com	Business Phone:	[***]
(Title):	OWNER
OWNER/GUARANTOR # 2 (Print)
By (First Name):		(Last Name):
Email:		Business Phone:
(Title):

Owner(s)/Guarantor(s) Initials []

27

EXHIBIT H - Prepayment Addendum

For the sale and purchase of receivables in the contract stated between _FIRST PERSON INC _____________________and Fundonatic. The following prepayment addendum will be granted upon early repayment:

● If the full balance is paid within 30 days from the merchant receiving the capital, a 10 _% discount of the remaining balance will be subtracted from merchants’ balance owed.

● If the full balance is paid within 60 days from the merchant receiving the capital, a 5 _% discount of the remaining balance will be subtracted from merchants’ balance owed.

This contract pertains to the sale of receivable for a total amount of $ 292,500.00 and is dated 06/08/2023.

SELLER # 1 (Print)
By (First Name):	CORY	(Last Name):	ROSENBERG
Email:	cory.rosenberg@firstpersongroup.com	Business Phone:	[***]
(Title):	OWNER
SELLER # 2 (Print)
By (First Name):		(Last Name):
Email:		Business Phone:
(Title):
OWNER/GUARANTOR # 1 (Print)
By (First Name):	CORY	(Last Name):	ROSENBERG
Email:	cory.rosenberg@firstpersongroup.com	Business Phone:	[***]
(Title):	OWNER
OWNER/GUARANTOR # 2 (Print)
By (First Name):		(Last Name):
Email:		Business Phone:
(Title):

FUNDER
(Fundomatic):	(Company Officer)
(Title)

Owner(s)/Guarantor(s) Initials []

EX-10.27

Exhibit 10.27

Page 1 of 16 ver. 1/1/23 FL

CLICK CAPITAL GROUP LLC
7901 4th St N Ste 300, St. Petersburg, FL 33702
ron@clickcapitalgroupllc.com

STANDARD MERCHANT CASH ADVANCE AGREEMENT

This is an Agreement dated 06/08/2023 by and between CLICK CAPITAL GROUP LLC (“CCG”), inclusive of its successors and assigns, and each merchant listed below (“Merchant”).

Merchant’s Legal Name: FIRST PERSON INC, and all entities listed on the “Merchant List”

D/B/A/: FIRST PERSON Fed ID #: [***]

Type of Entity:

☐ Corporation ☐ Limited Liability Company ☐ Limited Partnership ☐ Limited Liability Partnership ☐ Sole Proprietor

Business Address: 611 N BRAND BLVD SUITE 1300	City: GLENDALE	State: CA	Zip: 91203
Contact Address: 611 N BRAND BLVD SUITE 1300	City: GLENDALE	State: CA	Zip: 91203

E-mail Address: cory.rosenberg@firstpersongroup.com Phone Number: [***]

Purchase Price This is the amount being paid to Merchant(s) for the Receivables Purchased Amount (defined below). This amount may be paid in installments if there is an Addendum stating that it will be paid in installments.	$	225,000.00
Receivables Purchased Amount This is the amount of Receivables (defined in Section 1 below) being sold. This amount may be sold in installments if there is an Addendum stating that it will be sold in installments.	$	292,500.00
Specified Percentage This is the percentage of Receivables (defined below) to be delivered until the Receivables Purchased Amount is paid in full.		18.35	%
Net Funds Provided This is the net amount being paid to or on behalf of Merchant(s) after deduction of applicable fees listed in Section 2 below. This amount may be paid in installments if there is an Addendum stating that it will be paid in installments.	$	218,250.00
Net Amount to Be Received Directly by Merchant(s) This is the net amount being received directly by Merchant(s) after deduction of applicable fees listed in Section 2 below and the payment of any part of the Purchase Price elsewhere pursuant to any Addendum to this Agreement. This amount may be paid in installments if there is an Addendum stating that it will be paid in installments. If any deduction is being made from the Purchase Price to pay off another obligation by Merchant(s), then the Net Amount to be Received Directly by Merchant(s) is subject to change based on any change in the amount of the other obligation(s) to be paid off.	$	218,250.00
Initial Estimated Payment This is the initial amount of periodic payments collected from Merchant(s) as an approximation of no more than the Specified Percentage of the Receivables and is subject to reconciliation as set forth in Section 4 below.	$	1,950.00 per day

I have read and agree to the terms and conditions set forth above:

Name: CORY ROSENBERG Title: OWNER Date 06/08/2023

Page 2 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

TERMS AND CONDITIONS

1.  Sale of Future Receipts. Merchant(s) hereby sell, assign, and transfer to CCG (making CCG the absolute owner) in consideration of the funds provided (“Purchase Price”) specified above, all of each Merchant’s future accounts, contract rights, and other obligations arising from or relating to the payment of monies from each Merchant’s customers and/or other third party payors (the “Receivables”, defined as all payments made by cash, check, credit or debit card, electronic transfer, or other form of monetary payment in the ordinary course of each merchant’s business), for the payment of each Merchant’s sale of goods or services until the amount specified above (the “Receivables Purchased Amount”) has been delivered by Merchant(s) to CCG. Each Merchant hereby acknowledges that until the Receivables Purchased Amount has been received in full by CCG, each Merchant’s Receivables, up to the balance of the Receivables Purchased Amount, are the property of CCG and not the property of any Merchant. Each Merchant agrees that it is a fiduciary for CCG and that each Merchant will hold Receivables in trust for CCG in its capacity as a fiduciary for CCG.

The Receivables Purchased Amount shall be paid to CCG by each Merchant irrevocably authorizing only one depositing account acceptable to CCG (the “Account”) to remit the percentage specified above (the “Specified Percentage”) of each Merchant’s settlement amounts due from each transaction, until such time as CCG receives payment in full of the Receivables Purchased Amount. Each Merchant hereby authorizes CCG to ACH debit the specified remittances and any applicable fees listed in Section 2 from the Account on a daily basis as of the next business day after the date of this Agreement and will provide CCG with all required access codes and monthly bank statements. Each Merchant understands that it will be held responsible for any fees resulting from a rejected ACH attempt or an Event of Default (see Section 2). CCG is not responsible for any overdrafts or rejected transactions that may result from CCG’s ACH debiting the Specified Percentage amounts under the terms of this Agreement. Each Merchant acknowledges and agrees that until the amount of the Receivables collected by CCG exceeds the amount of the Purchase Price, CCG will be permitted not treat any amount collected under this Agreement as profit for taxation and accounting purposes.

2.  Additional Fees. In addition to the Receivables Purchased Amount, each Merchant will be held responsible to CCG for the following fees, where applicable:

A.  $6,750.00 - to cover underwriting, the ACH debit program, and expenses related to the procurement and initiation of the transactions encompassed by this Agreement. This will be deducted from payment of the Purchase Price.

B.  Wire Fee - Merchant(s) shall receive funding electronically to the Account and will be charged $50.00 for a Fed Wire or $0.00 for a bank ACH. This will be deducted from payment of the Purchase Price.

C.  NSF/Rejected ACH Fee - $50.00 for each time an ACH debit to the Account by CCG is returned or otherwise rejected. No Merchant will be held responsible for such a fee if any Merchant gives CCG notice no more than one business day in advance that the Account will have insufficient funds to be debited by CCG and no Merchant is otherwise in default of the terms of the Agreement. Each such fee may be deducted from any payment collected by CCG or may be collected in addition to any other payment collected by CCG under this Agreement.

D.  Blocked Account/Default - $2,500.00 - If an Event of Default has taken place under Section 30.

E.  UCC Fee - $195.00 - to cover CCG filing a UCC-1 financing statement to secure its interest in the Receivables Purchased Amount. A $195.00 UCC termination fee will be charged if a UCC filing is terminated.

F.  $0.00 - legal compliance with applicable disclosure laws and regulations. This will be deducted from payment of the Purchase Price.

G.  Court costs, arbitration fees, collection agency fees, attorney fees, expert fees, and any other expenses incurred in litigation, arbitration, or the enforcement of any of CCG’s legal or contractual rights against each Merchant and/or each Guarantor, if required, as explained in other Sections of this Agreement.

3.  Estimated Payments. Instead of debiting the Specified Percentage of Merchant’s Receivables, CCG may instead debit an “Estimated Payment” from the Account every day. The Estimated Payment is intended to be an approximation of no more than the Specified Percentage. The initial amount of the Estimated Payment is $1,950.00, subject to reconciliation as set forth in Section 4. Notwithstanding any provision herein to the contrary, CCG is permitted to debit the Account to make up for a previous Estimated Payment that was not debited because CCG was closed that day, to make up for any previous Estimated Payment that was not collected because the debit did not clear for any reason, to collect any amount due resulting from a reconciliation as set forth in Section 4, to collect any of the fees listed in Section 2, or to collect any amount due as a result of an Event of Default defined in Section 30.

I have read and agree to the terms and conditions set forth above:

Name: CORY ROSENBERG Title: OWNER Date 06/08/2023

Page 3 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

4.  Reconciliations. Any Merchant may contact CCG’s Reconciliation Department to request that CCG conduct a reconciliation in order to ensure that the amount that CCG has collected equals the Specified Percentage of Merchant(s)’s Receivables under this Agreement. A request for a reconciliation by any Merchant must be made by giving written notice of the request to CCG or by sending an e-mail to ron@clickcapitalgroupllc.com stating that a reconciliation is being requested. In order to effectuate the reconciliation, any Merchant must produce with its request any and all statements covering the period from the date of this Agreement through the date of the request for a reconciliation and, if available, the login and password for the Account. CCG will complete each reconciliation requested by any Merchant within two business days after receipt of proper notice of a request for one accompanied by the information and documents required for it. CCG may also conduct a reconciliation on its own at any time by reviewing Merchant(s)’s Receivables covering the period from the date of this Agreement until the date of initiation of the reconciliation, each such reconciliation will be completed within two business days after its initiation, and CCG will give each Merchant written notice of the determination made based on the reconciliation within one business day after its completion. If a reconciliation determines that CCG collected more than it was entitled to, then CCG will credit to the Account all amounts to which CCG was not entitled and, if there is an Estimated Payment, decrease the amount of the Estimated Payment so that it is consistent with the Specified Percentage of Merchant(s)’s Receivables from the date of the Agreement through the date of the reconciliation. If a reconciliation determines that CCG collected less than it was entitled to, then CCG will debit from the Account all additional amounts to which CCG was entitled and, if there is an Estimated Payment, increase the amount of the Estimated Payment so that it is consistent with the Specified Percentage of Merchant(s)’s Receivables from the date of the Agreement through the date of the reconciliation. Nothing herein limits the amount of times that a reconciliation may be requested or conducted.

5.  Merchant Deposit Agreement. Merchant(s) shall appoint a bank acceptable to CCG, to obtain electronic fund transfer services and/or “ACH” payments. Merchant(s) shall provide CCG and/or its authorized agent with all of the information, authorizations, and passwords necessary to verify each Merchant’s Receivables. Merchant(s) shall authorize CCG and/or its agent(s) to deduct the amounts owed to CCG for the Receivables as specified herein from settlement amounts which would otherwise be due to each Merchant and to pay such amounts to CCG by permitting CCG to withdraw the Specified Percentage by ACH debiting of the account. The authorization shall be irrevocable as to each Merchant absent CCG’s written consent until the Receivables Purchased Amount has been paid in full or the Merchant becomes bankrupt or goes out of business without any prior default under this Agreement.

6.  Term of Agreement. The term of this Agreement is indefinite and shall continue until CCG receives the full Receivables Purchased Amount, or earlier if terminated pursuant to any provision of this Agreement. The provisions of Sections 1, 2, 3, 4, 5, 6, 7, 9, 10, 12, 13, 14, 15, 16, 17, 18, 22, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, and 51 shall survive any termination of this Agreement.

7.  Ordinary Course of Business. Each Merchant acknowledges that it is entering into this Agreement in the ordinary course of its business and that the payments to be made from each Merchant to CCG under this Agreement are being made in the ordinary course of each Merchant’s business.

8.  Financial Condition. Each Merchant and each Guarantor (Guarantor being defined as each signatory to the Guarantee of this Agreement) authorizes CCG and its agent(s) to investigate each Merchant’s financial responsibility and history, and will provide to CCG any bank or financial statements, tax returns, and other documents and records, as CCG deems necessary prior to or at any time after execution of this Agreement. A photocopy of this authorization will be deemed as acceptable for release of financial information. CCG is authorized to update such information and financial profiles from time to time as it deems appropriate.

I have read and agree to the terms and conditions set forth above:

Name: CORY ROSENBERG Title: OWNER Date 06/08/2023

Page 4 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

9.  Monitoring. Recording, and Electronic Communications. CCG may choose to monitor and/or record telephone calls with any Merchant and its owners, employees, and agents. By signing this Agreement, each Merchant agrees that any call between CCG and any Merchant or its representatives may be monitored and/or recorded. Each Merchant and each Guarantor grants access for CCG to enter any Merchant’s premises and to observe any Merchant’s premises without any prior notice to any Merchant at any time after execution of this Agreement.

CCG may use automated telephone dialing, text messaging systems, and e-mail to provide messages to Merchant(s), Owner(s) (Owner being defined as each person who signs this Agreement on behalf of a Merchant), and Guarantor(s) about Merchant(s)’s account. Telephone messages may be played by a machine automatically when the telephone is answered, whether answered by an Owner, a Guarantor, or someone else. These messages may also be recorded by the recipient’s answering machine or voice mail. Each Merchant, each Owner, and each Guarantor gives CCG permission to call or send a text message to any telephone number given to CCG in connection with this Agreement and to play pre-recorded messages and/or send text messages with information about this Agreement and/or any Merchant’s account over the phone. Each Merchant, each Owner, and each Guarantor also gives CCG permission to communicate such information to them by e-mail. Each Merchant, each Owner, and each Guarantor agree that CCG will not be liable to any of them for any such calls or electronic communications, even if information is communicated to an unintended recipient. Each Merchant, each Owner, and each Guarantor acknowledge that when they receive such calls or electronic communications, they may incur a charge from the company that provides them with telecommunications, wireless, and/or Internet services, and that CCG has no liability for any such charges.

10.  Accuracy of Information Furnished by Merchant and Investigation Thereof. To the extent set forth herein, each of the parties is obligated upon his, her, or its execution of the Agreement to all terms of the Agreement. Each Merchant and each Owner signing this Agreement represent that he or she is authorized to sign this Agreement for each Merchant, legally binding said Merchant to its obligations under this Agreement and that the information provided herein and in all of CCG’s documents, forms, and recorded interview(s) is true, accurate, and complete in all respects. CCG may produce a monthly statement reflecting the delivery of the Specified Percentage of Receivables from Merchant(s) to CCG. An investigative report may be made in connection with the Agreement. Each Merchant and each Owner signing this Agreement authorize CCG, its agents and representatives, and any credit-reporting agency engaged by CCG, to (i) investigate any references given or any other statements obtained from or about each Merchant or any of its Owners for the purpose of this Agreement, and (ii) pull credit report at any time now or for so long as any Merchant and/or Owners(s) continue to have any obligation to CCG under this Agreement or for CCG’s ability to determine any Merchant’s eligibility to enter into any future agreement with CCG. Any misrepresentation made by any Merchant or Owner in connection with this Agreement may constitute a separate claim for fraud or intentional misrepresentation.

Authorization for soft pulls: Each Merchant and each Owner understands that by signing this Agreement, they are providing ‘written instructions’ to CCG under the Fair Credit Reporting Act, authorizing CCG to obtain information from their personal credit profile or other information from Experian, TransUnion, and Equifax. Each Merchant and each Guarantor authorizes CCG to obtain such information solely to conduct a pre-qualification for credit.

Authorization for hard pulls: Each Merchant and each Owner understands that by signing this Agreement, they are providing ‘written instructions’ to CCG under the Fair Credit Reporting Act, authorizing CCG to obtain information from their personal credit profile or other information from Experian, TransUnion, and Equifax. Each Merchant and each Guarantor authorizes CCG to obtain such information in accordance with a merchant cash advance application.

11.  Transactional History. Each Merchant authorizes its bank to provide CCG with its banking and/or credit card processing history.

12.  Indemnification. Each Merchant and each Guarantor jointly and severally indemnify and hold harmless each Merchant’s credit card and check processors (collectively, “Processor”) and Processor’s officers, directors, and shareholders against all losses, damages, claims, liabilities, and expenses (including reasonable attorney and expert fees) incurred by Processor resulting from (a) claims asserted by CCG for monies owed to CCG from any Merchant and (b) actions taken by any Processor in reliance upon information or instructions provided by CCG.

13.  No Liability. In no event will CCG be liable for any claims asserted by any Merchant under any legal theory for lost profits, lost revenues, lost business opportunities, exemplary, punitive, special, incidental, indirect, or consequential damages, each of which is waived by each Merchant and each Guarantor.

I have read and agree to the terms and conditions set forth above:

Name: CORY ROSENBERG Title: OWNER Date 06/08/2023

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STANDARD MERCHANT CASH ADVANCE AGREEMENT

14.  Sale of Receivables. Each Merchant and CCG agree that the Purchase Price under this Agreement is in exchange for the Receivables Purchased Amount and that such Purchase Price is not intended to be, nor shall it be construed as a loan from CCG to any Merchant. CCG is entering into this Agreement knowing the risks that each Merchant’s business may decline or fail, resulting in CCG not receiving the Receivables Purchased Amount. Any Merchant going bankrupt, going out of business, or experiencing a slowdown in business or a delay in collecting Receivables will not on its own without anything more be considered a breach of this Agreement. Each Merchant agrees that the Purchase Price in exchange for the Receivables pursuant to this Agreement equals the fair market value of such Receivables. CCG has purchased and shall own all the Receivables described in this Agreement up to the full Receivables Purchased Amount as the Receivables are created. Payments made to CCG in respect to the full amount of the Receivables shall be conditioned upon each Merchant’s sale of products and services and the payment therefor by each Merchant’s customers in the manner provided in this Agreement. Each Merchant and each Guarantor acknowledges that CCG does not purchase, sell, or offer to purchase or sell securities and that this Agreement is not a security, an offer to sell any security, or a solicitation of an offer to buy any security. Although certain jurisdictions require the disclosure of an Annual Percentage Rate or APR in connection with this Agreement, those disclosures do not change the fact that the transaction encompassed by this Agreement is not a loan and does not have an interest rate.

15.  Power of Attorney. Each Merchant irrevocably appoints CCG as its agent and attorney-in-fact with full authority to take any action or execute any instrument or document to settle all obligations due to CCG for the benefit of each Merchant and only in order to prevent the occurrence of an Event of Default (as described in Section 30). If an Event of Default takes place under Section 30, then each Merchant irrevocably appoints CCG as its agent and attorney-in-fact with full authority to take any action or execute any instrument or document to settle all obligations due to CCG from each Merchant, including without limitation (i) to collect monies due or to become due under or in respect of any of the Collateral (which is defined in Section 29); (ii) to receive, endorse and collect any checks, notes, drafts, instruments, documents, or chattel paper in connection with clause (i); (iii) to sign each Merchant’s name on any invoice, bill of lading, or assignment directing customers or account debtors to make payment directly to CCG; and (iv) to file any claims or take any action or institute any proceeding which CCG may deem necessary for the collection of any of the unpaid Receivables Purchased Amount from the Collateral, or otherwise to enforce its rights with respect to payment of the Receivables Purchased Amount.

16.  Protections Against Default. The following Protections 1 through 6 may be invoked by CCG, immediately and without notice to any Merchant if any Event of Default listed in Section 30 has occurred.

Protection 1: The full uncollected Receivables Purchased Amount plus all fees due under this Agreement may become due and payable in full immediately.

Protection 2. CCG may enforce the provisions of the Guarantee against Guarantor.

Protection 3. CCG may enforce its security interest in the Collateral identified in Section 29.

Protection 4. CCG may proceed to protect and enforce its rights and remedies by litigation or arbitration.

Protection 5. CCG may debit any Merchant’s depository accounts wherever situated by means of ACH debit or electronic or facsimile signature on a computer-generated check drawn on any Merchant’s bank account or otherwise, in an amount consistent with the terms of this Agreement.

Protection 6. CCG will have the right, without waiving any of its rights and remedies and without notice to any Merchant and/or Guarantor, to notify each Merchant’s credit card and/or check processor and account debtor(s) of the sale of Receivables hereunder and to direct such credit card processor and account debtor(s) to make payment to CCG of all or any portion of the amounts received by such credit card processor and account debtor(s) on behalf of each Merchant. Each Merchant hereby grants to CCG an irrevocable power-of-attorney, which power-of-attorney will be coupled with an interest, and hereby appoints CCG and its representatives as each Merchant’s attorney-in-fact to take any and all action necessary to direct such new or additional credit card and/or check processor and account debtor(s) to make payment to CCG as contemplated by this Section.

17.  Protection of Information. Each Merchant and each person signing this Agreement on behalf of each Merchant and/or as Owner, in respect of himself or herself personally, authorizes CCG to disclose information concerning each Merchant, Owner and/or Guarantor’s credit standing and business conduct to agents, affiliates, subsidiaries, and credit reporting bureaus. Each Merchant, Guarantor, and Owner hereby waives to the maximum extent permitted by law any claim for damages against CCG or any of its affiliates relating to any (i) investigation undertaken by or on behalf of CCG as permitted by this Agreement or (ii) disclosure of information as permitted by this Agreement.

I have read and agree to the terms and conditions set forth above:

Name: CORY ROSENBERG Title: OWNER Date 06/08/2023

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STANDARD MERCHANT CASH ADVANCE AGREEMENT

18.  Confidentiality. Each Merchant understands and agrees that the terms and conditions of the products and services offered by CCG, including this Agreement and any other CCG documents (collectively, “Confidential Information”) are proprietary and confidential information of CCG. Accordingly, unless disclosure is required by law or court order, Merchant(s) shall not disclose Confidential Information of CCG to any person other than an attorney, accountant, financial advisor, or employee of any Merchant who needs to know such information for the purpose of advising any Merchant (“Advisor”), provided such Advisor uses such information solely for the purpose of advising any Merchant and first agrees in writing to be bound by the terms of this Section 18.

19.  D/B/As. Each Merchant hereby acknowledges and agrees that CCG may be using “doing business as” or “d/b/a” names in connection with various matters relating to the transaction between CCG and each Merchant, including the filing of UCC-1 financing statements and other notices or filings.

20.  Financial Condition and Financial Information. Each Merchant represents, warrants, and covenants that its bank and financial statements, copies of which have been furnished to CCG, and future statements which will be furnished hereafter at the request of CCG, fairly represent the financial condition of each Merchant at such dates, and that since those dates there have been no material adverse changes, financial or otherwise, in such condition, operation, or ownership of any Merchant. Each Merchant has a continuing affirmative obligation to advise CCG of any material adverse change in its financial condition, operation, or ownership that may have an effect on any Merchant’s ability to generate Receivables or perform its obligations under this Agreement.

21.  Governmental Approvals. Each Merchant represents, warrants, and covenants that it is in compliance and shall comply with all laws and has valid permits, authorizations, and licenses to own, operate, and lease its properties and to conduct the business in which it is presently engaged.

22.  Authorization. Each Merchant represents, warrants, and covenants that it and each person signing this Agreement on behalf of each Merchant has full power and authority to incur and perform the obligations under this Agreement, all of which have been duly authorized.

23.  Electronic Check Processing Agreement. Each Merchant represents, warrants, and covenants that it will not, without CCG’s prior written consent, change its Processor, add terminals, change its financial institution or bank account, or take any other action that could have any adverse effect upon any Merchant’s obligations under this Agreement.

24.  Change of Name or Location. Each Merchant represents, warrants, and covenants that it will not conduct its business under any name other than as disclosed to CCG or change any place(s) of its business without giving prior written notice to CCG.

25.  No Bankruptcy. Each Merchant represents, warrants, and covenants that as of the date of this Agreement, it does not contemplate and has not filed any petition for bankruptcy protection under Title 11 of the United States Code and there has been no involuntary petition brought or pending against any Merchant. Each Merchant further warrants that it does not anticipate filing any such bankruptcy petition and it does not anticipate that an involuntary petition will be filed against it.

26.  Unencumbered Receivables. Each Merchant represents, warrants, and covenants that it has good, complete, and marketable title to all Receivables, free and clear of any and all liabilities, liens, claims, changes, restrictions, conditions, options, rights, mortgages, security interests, equities, pledges, and encumbrances of any kind or nature whatsoever or any other rights or interests that may be inconsistent with this Agreement or adverse to the interests of CCG, other than any for which CCG has actual or constructive knowledge or inquiry notice as of the date of this Agreement.

I have read and agree to the terms and conditions set forth above:

Name: CORY ROSENBERG Title: OWNER Date 06/08/2023

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STANDARD MERCHANT CASH ADVANCE AGREEMENT

27.  Stacking. Each Merchant represents, warrants, and covenants that it will not enter into with any party other than CCG any arrangement, agreement, or commitment that relates to or involves the Receivables, whether in the form of a purchase of, a loan against, collateral against, or the sale or purchase of credits against Receivables without the prior written consent of CCG.

28.  Business Purpose. Each Merchant represents, warrants, and covenants that it is a valid business in good standing under the laws of the jurisdictions in which it is organized and/or operates, and each Merchant is entering into this Agreement for business purposes and not as a consumer for personal, family, or household purposes.

29.  Security Interest. To secure each Merchant’s performance obligations to CCG under this Agreement and any future agreement with CCG, each Merchant hereby grants to CCG a security interest in collateral (the “Collateral”), that is defined as collectively: (a) all accounts, including without limitation, all deposit accounts, accounts-receivable, and other receivables, as those terms are defined by Article 9 of the Uniform Commercial Code (the “UCC”), now or hereafter owned or acquired by any Merchant; and (b) all proceeds, as that term is defined by Article 9 of the UCC. The parties acknowledge and agree that any security interest granted to CCG under any other agreement between any Merchant or Guarantor and CCG (the “Cross-Collateral”) will secure the obligations hereunder and under this Agreement. Negative Pledge: Each Merchant agrees not to create, incur, assume, or permit to exist, directly or indirectly, any lien on or with respect to any of the Collateral or the Cross-Collateral, as applicable.

Each Merchant agrees to execute any documents or take any action in connection with this Agreement as CCG deems necessary to perfect or maintain CCG’s first priority security interest in the Collateral and the Cross-Collateral, including the execution of any account control agreements. Each Merchant hereby authorizes CCG to file any financing statements deemed necessary by CCG to perfect or maintain CCG’s security interest, which financing statements may contain notification that each Merchant has granted a negative pledge to CCG with respect to the Collateral and the Cross-Collateral, and that any subsequent lienor may be tortiously interfering with CCG’s rights. Each Merchant shall be liable for and CCG may charge and collect all costs and expenses, including but not limited to attorney fees, which may be incurred by CCG in protecting, preserving, and enforcing CCG’s security interest and rights. Each Merchant further acknowledges that CCG may use another legal name and/or D/B/A or an agent when designating the Secured Party when CCG files the above-referenced financing statement(s).

30.  Events of Default. An “Event of Default” may be considered to have taken place if any of the following occur:

(1)  Any representation or warranty by any Merchant to CCG proves to have been made intentionally false or misleading in any material respect when made;

(2)  Any Merchant causes any ACH debit to the Account by CCG to be blocked or stopped without providing any advance written notice to CCG with an alternative method for CCG to collect the blocked or stopped payment, which notice may be given by e-mail to ron@clickcapitalgroupllc.com ;

(3)  Any Merchant intentionally prevents CCG from collecting any part of the Receivables Purchased Amount; or

(4)  Any Merchant causes any ACH debit to the Account by any person or entity other than CCG to be stopped or otherwise returned that would result in an ACH Return Code of R08, R10, or R29 and that Merchant does not within two business days thereafter provide CCG with written notice thereof explaining why that Merchant caused the ACH debit to be stopped or otherwise returned, which notice may be given by e-mail to ron@clickcapitalgroupllc.com.

31.  Remedies. In case any Event of Default occurs and is not waived, CCG may proceed to protect and enforce its rights or remedies by suit in equity or by action at law, or both, whether for the specific performance of any covenant, agreement, or other provision contained herein, or to enforce the discharge of each Merchant’s obligations hereunder, or any other legal or equitable right or remedy. All rights, powers, and remedies of CCG in connection with this Agreement, including each Protection listed in Section 16, may be exercised at any time by CCG after the occurrence of an Event of Default, are cumulative and not exclusive, and will be in addition to any other rights, powers, or remedies provided by law or equity. In case any Event of Default occurs and is not waived, CCG may elect that Merchant(s) be required to pay to CCG 25% of the unpaid balance of the Receivables Purchased Amount as liquidated damages for any reasonable expenses incurred by CCG in connection with recovering the unpaid balance of the Receivables Purchased Amount (“Reasonable Expenses”), and all Merchant(s) and all Guarantor(s) agree that the Reasonable Expenses bear a reasonable relationship to CCG’s actual expenses incurred in connection with recovering the unpaid balance of the Receivables Purchased Amount.

I have read and agree to the terms and conditions set forth above:

Name: CORY ROSENBERG Title: OWNER Date 06/08/2023

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STANDARD MERCHANT CASH ADVANCE AGREEMENT

32.  Assignment. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, except that Merchant(s) shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of CCG, which consent may be withheld in CCG’s sole discretion. CCG may assign, transfer, or sell its rights under this Agreement, including, without limitation, its rights to receive the Receivables Purchased Amount, and its rights under Section 29 of this Agreement, the Guarantee, and any other agreement, instrument, or document executed in connection with the transactions contemplated by this Agreement (a “Related Agreement”), or delegate its duties hereunder or thereunder, either in whole or in part. From and after the effective date of any such assignment or transfer by CCG, whether or not any Merchant has actual notice thereof, this Agreement and each Related Agreement shall be deemed amended and modified (without the need for any further action on the part of any Merchant or CCG) such that the assignee shall be deemed a party to this Agreement and any such Related Agreement and, to the extent provided in the assignment document between CCG and such assignee (the “Assignment Agreement”), have the rights and obligations of CCG under this Agreement and such Related Agreements with respect to the portion of the Receivables Purchased Amount set forth in such Assignment Agreement, including but not limited to rights in the Receivables, Collateral and Additional Collateral, the benefit of each Guarantor’s guaranty regarding the full and prompt performance of every obligation that is a subject of the Guarantee, CCG’s rights under Section 16 of this Agreement (Protections Against Default), and to receive damages from any Merchant following a breach of this Agreement by any Merchant. In connection with such assignment, CCG may disclose all information that CCG has relating to any Merchant or its business. Each Merchant agrees to acknowledge any such assignment in writing upon CCG’s request.

33.  Notices. All notices, requests, consents, demands, and other communications hereunder shall be delivered by certified mail, return receipt requested, or by overnight delivery with signature confirmation to the respective parties to this Agreement at their addresses set forth in this Agreement and shall become effective only upon receipt. Written notice may also be given to any Merchant or Guarantor by e-mail to the E-mail Address listed on the first page of this Agreement or by text message to the Phone Number listed on the first page of this Agreement if that phone number is for a mobile phone. Each Merchant and each Guarantor must set its spam or junk mail filter to accept e-mails sent by ron@clickcapitalgroupllc.com and its domain. This Section is not applicable to service of process or notices in any legal proceedings.

34.  Choice of Law. Each Merchant acknowledges and agrees that this Agreement was made in the State of Florida, that the Purchase Price is being paid by CCG in the State of Florida, that the Receivables Purchased Amount is being delivered to CCG in the State of Florida, and that the State of Florida has a reasonable relationship to the transactions encompassed by this Agreement. This Agreement, any dispute or claim relating hereto, whether sounding in contract, tort, law, equity, or otherwise, the relationship between CCG and each Merchant, and the relationship between CCG and each Guarantor will be governed by and construed in accordance with the laws of the State of Florida, without regard to any applicable principles of conflict of laws. Each Merchant agrees that the provisions of Chapter 22.1 of Title 6.2 of the Virginia Code are not applicable to this Agreement unless a merchant has a principal place of business located in the Commonwealth of Virginia and there is no applicable exemption to the statute. Each Merchant agrees that the provisions of Division 9.5 of the California Financial Code are not applicable to this Agreement if no Business Address listed on the first page of this Agreement or in any addendum hereto is located in the State of California or if there is any applicable exemption to the statute. Each Merchant agrees that the provisions of Chapter 27 of Title 7 of the Utah Code are not applicable to this Agreement if the transactions contemplated by this Agreement are not consummated in the State of Utah.

35.  Venue and Forum Selection. Any litigation, whether sounding in contract, tort, law, equity, or otherwise, relating to this Agreement or involving CCG on one side and any Merchant or any Guarantor on the other must be commenced and maintained in any court located in the Counties of Broward or Miami-Dade in the State of Florida (the “Acceptable Forums”). The parties agree that the Acceptable Forums are convenient, submit to the jurisdiction of the Acceptable Forums, and waive any and all objections to the jurisdiction or venue of the Acceptable Forums. If any litigation is initiated in any other venue or forum, the parties waive any right to oppose any motion or application made by any party to transfer such litigation to an Acceptable Forum. Notwithstanding any provision in this Agreement to the contrary, in addition to the Acceptable Forums, any application to obtain injunctive relief in aid of arbitration or to confirm an arbitration award for an arbitration conducted in the State of New York may be made in the Supreme Court of New York for Nassau County or the Civil Court of the City of New York for New York County and any action or proceeding to enforce a judgment or arbitration award against any Merchant or Guarantor or to restrain or collect any amount due to CCG may be commenced and maintained in any other court that would otherwise be of competent jurisdiction, and each Merchant and each Guarantor agree that those courts are convenient, submit to the jurisdiction of those courts, waive to transfer any such litigation to an Acceptable Forum.

I have read and agree to the terms and conditions set forth above:

Name: CORY ROSENBERG Title: OWNER Date 06/08/2023

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STANDARD MERCHANT CASH ADVANCE AGREEMENT

36. Jury Waiver. The parties agree to waive trial by jury in any dispute between them.

37.  Counterclaim Waiver. In any litigation or arbitration commenced by CCG, each Merchant and each Guarantor will not be permitted to interpose any counterclaim.

38.  Costs and Legal Fees. If an Event of Default occurs or CCG prevails in any litigation or arbitration with any Merchant or any Guarantor, then each Merchant and each Guarantor must pay CCG’s reasonable attorney fees, which may include a contingency fee, as well as administrative or filing fees and arbitrator compensation in any arbitration, expert witness fees, and costs of suit.

39.  Prejudgment and Postjudgment Interest. If CCG becomes entitled to the entry of a judgment against any Merchant or any Guarantor, then CCG will be entitled to the recovery of prejudgment interest at a rate of 18% per annum, or the maximum rate permitted by applicable law if less, and upon entry of any such judgment, it will accrue interest at a postjudgment rate of 18% per annum, or the maximum rate permitted by applicable law if less, which rate will govern over the statutory rate of interest up until actual satisfaction of the judgment.

40.  Class Action Waiver. CCG, each Merchant, and each Guarantor agree that they may bring claims against each other relating to this Agreement only in their individual capacities, and not as a plaintiff or class action member in any purported class or representative proceedings.

41.  Arbitration. Any action or dispute, whether sounding in contract, tort, law, equity, or otherwise, relating to this Agreement or involving CCG on one side and any Merchant or any Guarantor on the other, including, but not limited to issues of arbitrability, will, at the option of any party to such action or dispute, be determined by arbitration in the State of New York. A judgment of the court shall be entered upon the award made pursuant to the arbitration. The arbitration will be administered either by the American Arbitration Association under its Commercial Arbitration Rules as are in effect at that time, which rules are available at www.adr.org, by Arbitration Services, Inc. under its Commercial Arbitration Rules as are in effect at that time, which rules are available at www.arbitrationservicesinc.com, by JAMS under its Streamlined Arbitration Rules & Procedures as are in effect at that time, which rules are available at www.jamsadr.com, by Mediation And Civil Arbitration, Inc. under its Commercial Arbitration Rules as are in effect at that time, which rules are available at www.mcarbitration.org, or by Resolute Systems, LLC under its Commercial Arbitration Rules as are in effect at that time, which rules are available at www.resolutesystems.com. Once an arbitration is initiated with one of these arbitral forums, it must be maintained exclusively before that arbitral forum and no other arbitral forum specified herein may be used. As a prerequisite to making a motion to compel arbitration in any litigation, the party making the motion must first file a demand for arbitration with the chosen arbitral tribunal and pay all required filing and/or administrative fees. If the American Arbitration Association is selected, then notwithstanding any provision to the contrary in its Commercial Arbitration Rules, the Expedited Procedures will always apply and its Procedures for Large, Complex Commercial Disputes will not apply. Notwithstanding any provision to the contrary in the arbitration rules of the arbitral forum selected, the arbitration will be heard by one arbitrator and not by a panel of arbitrators, any arbitration hearing relating to this Agreement must be held in the Counties of Nassau, New York, Queens, or Kings in the State of New York, any party, representative, or witness in an arbitration hearing will be permitted to attend, participate, and testify remotely by telephone or video conferencing, and the arbitrator appointed will not be required to be a national of a country other than that of the parties to the arbitration.

Each Merchant acknowledges and agrees that this Agreement is the product of communications conducted by telephone and the Internet, which are instrumentalities of interstate commerce, that the transactions contemplated under this Agreement will be made by wire transfer and ACH, which are also instrumentalities of interstate commerce, and that this Agreement therefore evidences a transaction affecting interstate commerce. Accordingly, notwithstanding any provision in this Agreement to the contrary, all matters of arbitration relating to this Agreement will be governed by and construed in accordance with the provisions of the Federal Arbitration Act, codified as Title 9 of the United States Code, however any application for injunctive relief in aid of arbitration or to confirm an arbitration award may be made under the arbitration laws of the State in which the arbitration is being conducted, the laws of the State of Florida, or the laws of the jurisdiction in which the application is made, and the application will be governed by and construed in accordance with the laws under which the application is made, without regard to any applicable principles of conflict of laws. The arbitration agreement contained in this Section may also be enforced by any employee, agent, attorney, member, manager, officer, subsidiary, affiliate entity, successor, or assign of CCG and by any party to a lawsuit in which CCG and any Merchant or any Guarantor are parties.

I have read and agree to the terms and conditions set forth above:

Name: CORY ROSENBERG Title: OWNER Date 06/08/2023

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STANDARD MERCHANT CASH ADVANCE AGREEMENT

42.  Service of Process. Each Merchant and each Guarantor consent to service of process and legal notices made by First Class or Priority Mail delivered by the United States Postal Service and addressed to the Contact Address set forth on the first page of this Agreement or any other address(es) provided in writing to CCG by any Merchant or any Guarantor, and unless applicable law or rules provide otherwise, any such service will be deemed complete upon dispatch. Each Merchant and each Guarantor agrees that it will be precluded from asserting that it did not receive service of process or any other notice mailed to the Contact Address set forth on the first page of this Agreement if it does not furnish a certified mail return receipt signed by CCG demonstrating that CCG was provided with notice of a change in the Contact Address.

43.  Survival of Representations, etc. All representations, warranties, and covenants herein shall survive the execution and delivery of this Agreement and shall continue in full force until all obligations under this Agreement shall have been satisfied in full and this Agreement shall have terminated unless specified otherwise in this Agreement.

44.  Waiver. No failure on the part of CCG to exercise, and no delay in exercising, any right under this Agreement, shall operate as a waiver thereof, nor shall any single or partial exercise of any right under this Agreement preclude any other or further exercise thereof or the exercise of any other right. The remedies provided hereunder are cumulative and not exclusive of any remedies provided by law or equity.

45.  Independent Sales Organizations/Brokers. Each Merchant and each Guarantor acknowledge that it may have been introduced to CCG by or received assistance in entering into this Agreement or its Guarantee from an independent sales organization or broker (“ISO”). Each Merchant and each Guarantor agree that any ISO is separate from and is not an agent or representative of CCG. Each Merchant and each Guarantor acknowledge that CCG is not bound by any promises or agreements made by any ISO that are not contained within this Agreement. Each Merchant and each Guarantor exculpate from liability and agree to hold harmless and indemnify CCG and its officers, directors, members, shareholders, employees, and agents from and against all losses, damages, claims, liabilities, and expenses (including reasonable attorney and expert fees) incurred by any Merchant or any Guarantor resulting from any act or omission by any ISO. Each Merchant and each Guarantor acknowledge that any fee that they paid to any ISO for its services is separate and apart from any payment under this Agreement. Each Merchant and each Guarantor acknowledge that CCG does not in any way require the use of an ISO and that any fees charged by any ISO are not required as a condition or incident to this Agreement.

46.  Modifications; Agreements. No modification, amendment, waiver, or consent of any provision of this Agreement shall be effective unless the same shall be in writing and signed by all parties.

47.  Severability. If any provision of this Agreement is deemed invalid or unenforceable as written, it will be construed, to the greatest extent possible, in a manner which will render it valid and enforceable, and any limitation on the scope or duration of any such provision necessary to make it valid and enforceable will be deemed to be part thereof. If any provision of this Agreement is deemed void, all other provisions will remain in effect.

48.  Headings. Headings of the various articles and/or sections of this Agreement are for convenience only and do not necessarily define, limit, describe, or construe the contents of such articles or sections.

I have read and agree to the terms and conditions set forth above:

Name: CORY ROSENBERG Title: OWNER Date 06/08/2023

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STANDARD MERCHANT CASH ADVANCE AGREEMENT

49.  Attorney Review. Each Merchant acknowledges that it has had an opportunity to review this Agreement and all addenda with counsel of its choosing before signing the documents or has chosen not to avail itself of the opportunity to do so.

50.  Entire Agreement. This Agreement, inclusive of all addenda, if any, executed simultaneously herewith constitutes the full understanding of the parties to the transaction herein and may not be amended, modified, or canceled except in writing signed by all parties. Should there arise any conflict between this Agreement and any other document preceding it, this Agreement will govern. This Agreement does not affect any previous agreement between the parties unless such an agreement is specifically referenced herein. This Agreement will not be affected by any subsequent agreement between the parties unless this Agreement is specifically referenced therein.

51.  Counterparts; Fax and Electronic Signatures. This Agreement may be executed electronically and in counterparts. Facsimile and electronic copies of this Agreement will have the full force and effect of an original.

EACH UNDERSIGNED HEREBY ACCEPTS THE TERMS OF THIS AGREEMENT

FOR THE MERCHANT/OWNER (#1)

By:	CORY ROSENBERG	OWNER
	(Print Name)	(Print Title)	(Signature)

SS# [***] Driver License Number  [***]

FOR THE MERCHANT/OWNER (#2)

By:
	(Print Name)	(Print Title)	(Signature)

SS# Driver License Number 

Approved for CLICK CAPITAL GROUP LLC by: _________________________

Page 12 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

GUARANTEE

G1. Personal Guarantee of Performance. This is a personal guaranty of performance, dated 06/08/2023, of the Standard Merchant Cash Advance Agreement, dated 06/08/2023 (“Agreement”), inclusive of all addenda, if any, executed simultaneously therewith, by and between CLICK CAPITAL GROUP LLC (“CCG”) and FIRST PERSON INC, and all entities listed on the “Merchant List” (“Merchant”). Each undersigned Guarantor hereby guarantees each Merchant’s performance of all of the representations, warranties, and covenants made by each Merchant to CCG in the Agreement, inclusive of all addenda, if any, executed simultaneously herewith, as the Agreement may be renewed, amended, extended, or otherwise modified (the “Guaranteed Obligations”). Each Guarantor’s obligations are due at the time of any breach by any Merchant of any representation, warranty, or covenant made by any Merchant in the Agreement.

G2. Communications. CCG may use automated telephone dialing, text messaging systems, and e-mail to provide messages to Guarantor(s) about Merchant(s)’s account. Telephone messages may be played by a machine automatically when the telephone is answered, whether answered by an Owner, a Guarantor, or someone else. These messages may also be recorded by the recipient’s answering machine or voice mail. Each Guarantor gives CCG permission to call or send a text message to any telephone number given to CCG in connection with this Agreement and to play pre-recorded messages and/or send text messages with information about this Agreement and/or any Merchant’s account over the phone. Each Guarantor also gives CCG permission to communicate such information to them by e-mail. Each Guarantor agrees that CCG will not be liable to any of them for any such calls or electronic communications, even if information is communicated to an unintended recipient. Each Guarantor acknowledges that when they receive such calls or electronic communications, they may incur a charge from the company that provides them with telecommunications, wireless, and/or Internet services, and that CCG has no liability for any such charges.

G3. Guarantor Waivers. If any Event of Default takes place under the Agreement, then CCG may enforce its rights under this Guarantee without first seeking to obtain payment from any Merchant, any other guarantor, or any Collateral or CrossCollateral CCG may hold pursuant to this Guarantee or any other agreement or guarantee. CCG does not have to notify any Guarantor of any of the following events and Guarantor(s) will not be released from its obligations under this Guarantee even if it is not notified of: (i) any Merchant’s failure to pay timely any amount owed under the Agreement; (ii) any adverse change in any Merchant’s financial condition or business; (iii) any sale or other disposition of any collateral securing the Guaranteed Obligations or any other guarantee of the Guaranteed Obligations; (iv) CCG’s acceptance of the Agreement with any Merchant; and (v) any renewal, extension, or other modification of the Agreement or any Merchant’s other obligations to CCG. In addition, CCG may take any of the following actions without releasing any Guarantor from any obligations under this Guarantee: (i) renew, extend, or otherwise modify the Agreement or any Merchant’s other obligations to CCG; (ii) if there is more than one Merchant, release a Merchant from its obligations to CCG such that at least one Merchant remains obligated to CCG; (iii) sell, release, impair, waive, or otherwise fail to realize upon any collateral securing the Guaranteed Obligations or any other guarantee of the Guaranteed Obligations; and (iv) foreclose on any collateral securing the Guaranteed Obligations or any other guarantee of the Guaranteed Obligations in a manner that impairs or precludes the right of Guarantor to obtain reimbursement for payment under the Agreement. Until the Receivables Purchased Amount and each Merchant’s other obligations to CCG under the Agreement and this Guarantee are paid in full, each Guarantor shall not seek reimbursement from any Merchant or any other guarantor for any amounts paid by it under the Agreement. Each Guarantor permanently waives and shall not seek to exercise any of the following rights that it may have against any Merchant, any other guarantor, or any collateral provided by any Merchant or any other guarantor, for any amounts paid by it or acts performed by it under this Guarantee: (i) subrogation; (ii) reimbursement; (iii) performance; (iv) indemnification; or (v) contribution.

G4. Joint and Several Liability. The obligations hereunder of the persons or entities constituting each Guarantor under this Guarantee are joint and several.

I have read and agree to the terms and conditions set forth above:

Name: CORY ROSENBERG Title: OWNER Date 06/08/2023

Page 13 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

G5. Choice of Law. Each Guarantor acknowledges and agrees that the Agreement and this Guarantee were made in the State of Florida, that the Purchase Price is being paid by CCG in the State of Florida, that the Receivables Purchased Amount is being delivered to CCG in the State of Florida, and that the State of Florida has a reasonable relationship to the transactions encompassed by the Agreement and this Guarantee. The Agreement, this Guarantee, any dispute or claim relating to the Agreement or this Guarantee, whether sounding in contract, tort, law, equity, or otherwise, the relationship between CCG and each Merchant, and the relationship between CCG and each Guarantor will be governed by and construed in accordance with the laws of the State of Florida, without regard to any applicable principles of conflict of laws.

G6. Venue and Forum Selection. Any litigation, whether sounding in contract, tort, law, equity, or otherwise, relating to this Agreement or this Guarantee or involving CCG on one side and any Merchant or any Guarantor on the other must be commenced and maintained in any court located in the Counties of Broward or Miami-Dade in the State of Florida (the “Acceptable Forums”). The parties agree that the Acceptable Forums are convenient, submit to the jurisdiction of the Acceptable Forums, and waive any and all objections to the jurisdiction or venue of the Acceptable Forums. If any litigation is initiated in any other venue or forum, the parties waive any right to oppose any motion or application made by any party to transfer such litigation to an Acceptable Forum. Notwithstanding any provision in the Agreement or this Guarantee to the contrary, in addition to the Acceptable Forums, any application to obtain injunctive relief in aid of arbitration or to confirm an arbitration award for an arbitration conducted in the State of New York may be made in the Supreme Court of New York for Nassau County or the Civil Court of the City of New York for New York County and any action or proceeding to enforce a judgment or arbitration award against any Merchant or Guarantor or to restrain or collect any amount due to CCG may be commenced and maintained in any other court that would otherwise be of competent jurisdiction, and each Merchant and each Guarantor agree that those courts are convenient, submit to the jurisdiction of those courts, waive any and all objections to the jurisdiction or venue of those courts, and may oppose any motion or application made by any party to transfer any such litigation to an Acceptable Forum.

G7. Jury Waiver. Each Guarantor agrees to waive trial by jury in any dispute with CCG.

G8. Counterclaim Waiver. In any litigation or arbitration commenced by CCG, each Merchant and each Guarantor will not be permitted to interpose any counterclaim.

G9. Costs and Legal Fees. If an Event of Default occurs or CCG prevails in any litigation or arbitration with any Merchant or any Guarantor, then each Merchant and/or Guarantor must pay CCG’s reasonable attorney fees, which may include a contingency fee, as well as administrative or filing fees and arbitrator compensation in any arbitration, expert witness fees, and costs of suit.

G10. Prejudgment and Postjudgment Interest. If CCG becomes entitled to the entry of a judgment against any Merchant or any Guarantor, then CCG will be entitled to the recovery of prejudgment interest at a rate of 18% per annum, or the maximum rate permitted by applicable law if less, and upon entry of any such judgment, it will accrue interest at a postjudgment rate of 18% per annum, or the maximum rate permitted by applicable law if less, which rate will govern over the statutory rate of interest up until actual satisfaction of the judgment.

G11. Class Action Waiver. CCG, each Merchant, and each Guarantor agree that they may bring claims against each other relating to this Agreement only in their individual capacities, and not as a plaintiff or class action member in any purported class or representative proceedings.

I have read and agree to the terms and conditions set forth above:

Name: CORY ROSENBERG Title: OWNER Date 06/08/2023

Page 14 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

G12. Arbitration. Any action or dispute, whether sounding in contract, tort, law, equity, or otherwise, relating to the Agreement, this Guarantee, or involving CCG on one side and any Merchant or any Guarantor on the other, including, but not limited to issues of arbitrability, will, at the option of any party to such action or dispute, be determined by arbitration in the State of New York. A judgment of the court shall be entered upon the award made pursuant to the arbitration. The arbitration will be administered either by the American Arbitration Association under its Commercial Arbitration Rules as are in effect at that time, which rules are available at www.adr.org, by Arbitration Services, Inc. under its Commercial Arbitration Rules as are in effect at that time, which rules are available at www.arbitrationservicesinc.com, by JAMS under its Streamlined Arbitration Rules & Procedures as are in effect at that time, which rules are available at www.jamsadr.com, by Mediation And Civil Arbitration, Inc. under its Commercial Arbitration Rules as are in effect at that time, which rules are available at www.mcarbitration.org, or by Resolute Systems, LLC under its Commercial Arbitration Rules as are in effect at that time, which rules are available at www.resolutesystems.com. Once an arbitration is initiated with one of these arbitral forums, it must be maintained exclusively before that arbitral forum and no other arbitral forum specified herein may be used. As a prerequisite to making a motion to compel arbitration in any litigation, the party making the motion must first file a demand for arbitration with the chosen arbitral tribunal and pay all required filing and/or administrative fees. If the American Arbitration association is selected, then notwithstanding any provision to the contrary in its Commercial Arbitration Rules, the Expedited Procedures will always apply and its Procedures for Large, Complex Commercial Disputes will never apply. Notwithstanding any provision to the contrary in the arbitration rules of the arbitral forum selected, the arbitration will be heard by one arbitrator and not by a panel of arbitrators, any arbitration relating to the Agreement or this Guarantee must be held in the Counties of Nassau, New York, Queens, or Kings in the State of New York, any party, representative, or witness in an arbitration hearing will be permitted to attend, participate, and testify remotely by telephone or video conferencing, and the arbitrator appointed will not be required to be a national of a country other than that of the parties to the arbitration.

Each Guarantor acknowledges and agrees that the Agreement and this Guarantee are the products of communications conducted by telephone and the Internet, which are instrumentalities of interstate commerce, that the transactions contemplated under the Agreement will be made by wire transfer and ACH, which are also instrumentalities of interstate commerce, and that the Agreement and this Guarantee therefore evidence a transaction affecting interstate commerce. Accordingly, notwithstanding any provision in the Agreement or this Guarantee to the contrary, all matters of arbitration relating to the Agreement or this Guarantee will be governed by and construed in accordance with the provisions of the Federal Arbitration Act, codified as Title 9 of the United States Code, however any application for injunctive relief in aid of arbitration or to confirm an arbitration award may be made under the arbitration laws of the State in which the arbitration is being conducted, the laws of the State of Florida, or the laws of the jurisdiction in which the application is made, and the application will be governed by and construed in accordance with the laws under which the application is made, without regard to any applicable principles of conflict of laws. The arbitration agreement contained herein may also be enforced by any employee, agent, attorney, member, manager, officer, subsidiary, affiliate entity, successor, or assign of CCG and by any party to a lawsuit in which CCG and any Merchant or any Guarantor are parties.

G13. Service of Process. Each Merchant and each Guarantor consent to service of process and legal notices made by First Class or Priority Mail delivered by the United States Postal Service and addressed to the Contact Address set forth on the first page of the Agreement or any other address(es) provided in writing to CCG by any Merchant or any Guarantor, and unless applicable law or rules provide otherwise, any such service will be deemed complete upon dispatch. Each Merchant and each Guarantor agrees that it will be precluded from asserting that it did not receive service of process or any other notice mailed to the Contact Address set forth on the first page of the Agreement if it does not furnish a certified mail return receipt signed by CCG demonstrating that CCG was provided with notice of a change in the Contact Address.

G14. Severability. If any provision of this Guarantee is deemed invalid or unenforceable as written, it will be construed, to the greatest extent possible, in a manner which will render it valid and enforceable, and any limitation on the scope or duration of any such provision necessary to make it valid and enforceable will be deemed to be part thereof. If any provision of this Guarantee is deemed void, all other provisions will remain in effect.

G15. Survival. The provisions of Sections G2, G3, G4, G5, G6, G7, G8, G9, G10, G11, G12, G13, G14, G15, G16, G17, G18, and G19 shall survive any termination of this Guarantee.

G16. Headings. Headings of the various articles and/or sections of this Guarantee are for convenience only and do not necessarily define, limit, describe, or construe the contents of such articles or sections.

G17. Attorney Review. Each Guarantor acknowledges that it has had an opportunity to review this Guarantee, the Agreement, and all addenda with counsel of its choosing before signing the documents or has chosen not to avail itself of the opportunity to do so.

I have read and agree to the terms and conditions set forth above:

Name: CORY ROSENBERG Title: OWNER Date 06/08/2023

Page 15 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

G18. Entire Agreement. This Guarantee, inclusive of all addenda, if any, executed simultaneously herewith may not be amended, modified, or canceled except in writing signed by all parties. Should there arise any conflict between this Guarantee and any other document preceding it, this Guarantee will govern. This Guarantee does not affect any previous agreement between the parties unless such an agreement is specifically referenced in the Agreement or herein. This Guarantee will not be affected by any subsequent agreement between the parties unless this Guarantee is specifically referenced therein.

G19. Counterparts; Fax and Electronic Signatures. This Guarantee may be executed electronically and in counterparts. Facsimile and electronic copies of this Guarantee will have the full force and effect of an original.

THE TERMS, DEFINITIONS, CONDITIONS AND INFORMATION SET FORTH IN THE “STANDARD MERCHANT CASH ADVANCE AGREEMENT”, INCLUDING THE “TERMS AND CONDITIONS”, ARE HEREBY INCORPORATED IN AND MADE A PART OF THIS GUARANTEE. CAPITALIZED TERMS NOT DEFINED IN THIS GUARANTEE SHALL HAVE THE MEANING SET FORTH IN THE STANDARD MERCHANT CASH ADVANCE AGREEMENT, INCLUDING THE TERMS AND CONDITIONS.

EACH UNDERSIGNED HEREBY ACCEPTS THE TERMS OF THIS GUARANTEE

GUARANTOR (#1)

By:	CORY ROSENBERG
	(Print Name)	(Signature)

SS# [***] Driver License Number  [***]

GUARANTOR (#2)

By:
	(Print Name)	(Signature)

SS# Driver License Number 

Page 16 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

BANK INFORMATION

Dear Merchant,

We look forward to being your funding partner.

You authorize CLICK CAPITAL GROUP LLC to collect the Receivables Purchased Amount under this Agreement by ACH debiting your bank account with the bank listed below.

CLICK CAPITAL GROUP LLC will require viewing access to your bank account each business day.

CLICK CAPITAL GROUP LLC will also require viewing access to your bank account, prior to funding, as part of our underwriting process.

Please fill out the form below with the information necessary to access your account.

*Be sure to indicate capital or lower case letters.

Name of bank: TORREY PINES BANK

Name of account: FIRST PERSON INC.

Account number: [***] Routing number: [***]

Bank portal website: _______________________________________________________________________

Username: na

Password: na

Security Question/Answer 1: na

Security Question/Answer 2: na

Security Question/Answer 3: na

Any other information necessary to access your account: ____________________________________________

If you have any questions please feel free to contact us directly.

I have read and agree to the terms and conditions set forth above:

Name: CORY ROSENBERG Title: OWNER Date 06/08/2023

DECLARATION OF ORDINARY COURSE OF BUSINESS

Each undersigned hereby declares the following:

1.  I am duly authorized to sign the Standard Merchant Cash Advance Agreement (“Agreement”), dated 06/08/2023, between Click Capital Group LLC and FIRST PERSON INC, and all entities listed on the “Merchant List” (“Merchant”) on behalf of Merchant.

2.  This Declaration incorporates by reference the Agreement and every addendum to it.

3.  I acknowledge that I am authorized to sign the Agreement and every addendum to it on behalf of each Merchant.

4.  I acknowledge that I had sufficient time to review the Agreement and every addendum to it before signing it.

5.  I acknowledge that I had an opportunity to seek legal advice from counsel of my choosing before signing the Agreement and every addendum to it.

6.  I acknowledge that each Merchant is entering into the Agreement voluntarily and without any coercion.

7.  I acknowledge that each Merchant is entering into the Agreement in the ordinary course of its business.

8.  I acknowledge that the payments to be made from any Merchant to Click Capital Group LLC under the Agreement are being made in the ordinary course of each Merchant’s business.

Page 1 of 2

9.  I am aware of each Merchant’s right to request a reconciliation of the payments made under the Agreement at any time.

10.  I DECLARE UNDER PENALTY OF PERJURY THAT THE FOREGOING IS TRUE AND CORRECT.

Executed on	06/08/2023
	(Date)

FOR THE MERCHANT/OWNER (#1)

By:	CORY ROSENBERG	OWNER
	(Print Name)	(Print Title)	(Signature)

FOR THE MERCHANT/OWNER (#2)

By:
	(Print Name)	(Print Title)	(Signature)

Page 2 of 2

ver. 12/5/22

STANDARD MERCHANT CASH ADVANCE AGREEMENT

ADDENDUM M

MERCHANT LIST

This is an Addendum, dated 06/08/2023, to the Standard Merchant Cash Advance Agreement (“Agreement”) of CLICK CAPITAL GROUP LLC (“CCG”), dated 06/08/2023. This Addendum incorporates the Agreement by reference. Each Contact Address set forth in this Addendum will be treated as if it is set forth as a Contact Address on Page 1 of the Agreement. The terms of this Addendum will control to the extent they conflict with any of the terms in the Agreement.

The following entities and/or sole proprietorships will be a Merchant under the Agreement in addition to any Merchant listed on Page 1 of the Agreement:

Merchant #1’s Legal Name: FKA LEIIO INC.

D/B/A/: FKA LEIIO Fed ID #: ___________________________

Type of Entity: ☐ Corporation ☐ Limited Liability Company ☐ Partnership ☐ Sole Proprietor

Business Address: __________________________	City: _____________	State: ______	Zip: ________
Contact Address: ___________________________	City: _____________	State: ______	Zip: ________

FOR MERCHANT #1

By:	CORY ROSENBERG                   OWNER
	(Print Name and Title)	(Signature)

Merchant #2’s Legal Name: FIRST PERSON GROUP, INC.

D/B/A/: FIRST PERSON GROUP Fed ID #: ___________________________

Type of Entity: ☐ Corporation ☐ Limited Liability Company ☐ Partnership ☐ Sole Proprietor

Business Address: __________________________	City: _____________	State: ______	Zip: ________
Contact Address: ___________________________	City: _____________	State: ______	Zip: ________

FOR MERCHANT #2

By:	CORY ROSENBERG                   OWNER
	(Print Name and Title)	(Signature)

Merchant #3’s Legal Name: FIRST PERSON, INC.

D/B/A/: FIRST PERSON Fed ID #: ___________________________

Type of Entity: ☐ Corporation ☐ Limited Liability Company ☐ Partnership ☐ Sole Proprietor

Business Address: __________________________	City: _____________	State: ______	Zip: ________
Contact Address: ___________________________	City: _____________	State: ______	Zip: ________

FOR MERCHANT #3

By:	CORY ROSENBERG                   OWNER
	(Print Name and Title)	(Signature)

- 1 -

STANDARD MERCHANT CASH ADVANCE AGREEMENT

ADDENDUM M

MERCHANT LIST

Merchant #4’s Legal Name: FIRST PERSON INC.

D/B/A/: FIRST PERSON Fed ID #: ___________________________

Type of Entity: ☐ Corporation ☐ Limited Liability Company ☐ Partnership ☐ Sole Proprietor

Business Address: __________________________	City: _____________	State: ______	Zip: ________
Contact Address: ___________________________	City: _____________	State: ______	Zip: ________

FOR MERCHANT #4

By:	CORY ROSENBERG                   OWNER
	(Print Name and Title)	(Signature)

Merchant #5’s Legal Name: _____________________________________________________________________

D/B/A/: ____________________________________________ Fed ID #: ___________________________

Type of Entity: ☐ Corporation ☐ Limited Liability Company ☐ Partnership ☐ Sole Proprietor

Business Address: __________________________	City: _____________	State: ______	Zip: ________
Contact Address: ___________________________	City: _____________	State: ______	Zip: ________

FOR MERCHANT #5

By:	CORY ROSENBERG                   OWNER
	(Print Name and Title)	(Signature)

Merchant #6’s Legal Name: ______________________________________________________________________

D/B/A/: ____________________________________________ Fed ID #: ___________________________

Type of Entity: ☐ Corporation ☐ Limited Liability Company ☐ Partnership ☐ Sole Proprietor

Business Address: __________________________	City: _____________	State: ______	Zip: ________
Contact Address: ___________________________	City: _____________	State: ______	Zip: ________

FOR MERCHANT #6

By:	CORY ROSENBERG                   OWNER
	(Print Name and Title)	(Signature)

- 2 -

EX-10.28

Exhibit 10.28

OFFER SUMMARY - REVENUE BASED FINANCING

Funding Provided	$199,774.00	This is how much funding CLOUDFUND LLC will provide. Due to deductions or payments to others, the total funds that will be provided to you directly is $199,774.00. For more information on what amounts will be deducted, please review the attached document “Itemization of Amount Financed.” The total funds provided to you directly may change if the amounts needed to pay toward or satisfy other obligations changes between when we prepared this disclosure and funding.
Estimated Annual Percentage Rate (APR)	136.60 %	APR is the estimated cost of your financing expressed as a yearly rate. APR incorporates the amount and timing of the funding you receive, fees you pay, and the periodic payments you make. This calculation assumes your estimated average monthly income through sales of goods and services will be $1,144,428.93. Since your actual income may vary from our estimate, your effective APR may also vary. APR is not an interest rate. The cost of this financing is based upon fees charged by CLOUDFUND LLC rather than interest that accrues over time.
Finance Charge	$76,266.00	This is the dollar cost of your financing.
Estimated Total Payment Amount	$276,040.00	This is the total dollar amount of payments we estimate you will make under the contract.
Estimated Monthly Cost	$45,855.83	Although you do not make payments on a monthly basis, this is our calculation of your average monthly cost based upon the payment amounts disclosed below.
Estimated Payment	$2,123.38/business day
Payment Terms	Each business day, the Estimated Payment will be debited from your business bank account. The Estimated Payment is based on 4 % of your estimated daily business receipts. There is not a fixed payment schedule and there is no minimum payment amount. You have the right to obtain a refund if you demonstrate that your payments exceed 4% of your actual business receipts during any given month. For more details on your rights, see Section 10 and 11 of your contract.
Estimated Term	183 lays	Based on assumptions we male about your income, this is our estimate of how long it will take to collect amounts due to us under your contract.
Prepayment	If you pay off the financing faster than required, you still must pay all or a portion of the finance charge, up to $76,266.99 based upon our estimates.
	If you pay off the financing faster than required, you will not be required to pay additional fees.

Applicable law requires this information to be provided to you to help you make an informed decision. By signing below, you are confirming that you received this information.

CORY ROSENBERG	Jul 19, 2023
Recipient Signature	Date

ITEMIZATION OF AMOUNT FINANCED
1. Amount Given Directly to You	$	199,774.00
2. Origination, Due Diligence, and UCC Fees (includes a $0.00 broker fee paid to [RUNIT, LLC])	$	6,226.00
3. Amount paid on your behalf to third parties (3a + 3b + 3c)	$	0.00
3a.
3b.
3c.
4. Amount Paid on Your Account with Us (# )
5. Amount Provided to You or on Your Behalf (1+2+3+4)	$	206,000.00
6. Prepaid Finance Charges: Origination, Due Diligence, and UCC Fees	$	6,226.00
7. Amount Financed (5 minus 6)	$	199,774.00

CLOUDFUND LLC

400 Rella Blvd. Suite 165-101, Suffern, NY 10901

FUTURE RECEIPTS SALE AND PURCHASE AGREEMENT

This agreement (this “Agreement”), dated 7/19/2023, between CLOUDFUND LLC (“Buyer”) and the seller(s) listed herein (collectively, the “Seller”) (all capitalized terms shall have the meanings ascribed to them below):

Business Legal Name: FIRST PERSON INC

D/B/A: FIRST PERSON

Form of Business Entity: Corporation EIN #: [***]

Physical Address: 3900 W ALAMEDA AVE, BURBANK, CA 91505

Mailing Address: 3900 W ALAMEDA AVE, BURBANK, CA 91505

PURCHASE PRICE:	PURCHASED AMOUNT:	SPECIFIED PERCENTAGE:
$206,000.00	$276,040.00	4 %

REMITTANCE AMOUNT:*	REMITTANCE PERIOD:
$2,123.38	DAILY

LESS CLOSING COSTS :

DUE DILIGENCE FEE:	ORIGINATION FEE:	UCC FEE:
$6,180.00	$0.00	$46.00

LEss PRIOR BALANCE(s) (IF APPLICABLE)

$0.00

NET AMOUNT FUNDED TO SELLER:

$199,774.00

FOR THE SELLER #1		FOR THE SELLER #2
By:	/s/ CORY ROSENBERG	By:
Name:	CORY ROSENBERG	Name:	N/A
Title:	Owner/Agent/Manager	Title:	N/A
Email:	CORY.ROSENBERG@FIRSTPERSONGROUP.COM	Email:	N/A
Business Phone:	[***]	Business Phone:	N/A

*Please refer to Section 13 of this Agreement to learn how the Remittance Amount can be changed.

Concurrently with the execution of this Agreement by seller, and as condition to the effectiveness hereof, seller has caused the Personal Guarantee of Performance in the form attached hereto as “Exhibit A” (the “Guaranty”) to be signed and delivered to Buyer by the following Owner(s)/Guarantor(s) of seller.

OWNER/GUARANTOR #1		OWNER/GUARANTOR #2
By:	/s/ CORY ROSENBERG	By:
Name:	CORY ROSENBERG	Name:	N/A
SSN:	[***]	SSN:	N/A
Phone:	[***]	Phone:	N/A
Address:	[***]	Address:	N/A

Furthermore, in the event the seller and/or Guarantor are comprised of more than one entity and/or individuals, then ALL such entities and/or individuals, respectively, shall sign the Addendum to this Agreement in the form attached hereto as Exhibit B (the “Addendum”).

Page 1 of 15

WHEREAS, Seller is desirous to sell to Buyer, and Buyer is desirous to purchase from Seller a Specified Percentage of the Seller’s Future Receipts, but only on the terms and conditions set forth in this Agreement.

NOW, THEREFORE, for good and valuable consideration, the mutual receipts and sufficiency of which is hereby acknowledged by both parties, Buyer and Seller hereby agree to the foregoing and as follows:

1. Basic Terms and Definitions.

a. “Effective Date” shall mean the later of: (i) the date set forth in the preamble to this Agreement, and (ii) the date when Buyer paid the Net Amount Funded to Seller.

b. “Specified Percentage” is the percentage identified above and refers to a percentage of each and every sale made by Seller until the Purchased Amount is delivered to Seller.

c. “Future Receipts” shall mean, collectively, all of Seller’s receipts for the sale of goods and services after the Effective Date of this Agreement; which payments or deliveries of monies can be made in the form of cash, check, credit, charge, or debit card, Automated Clearing House (“ACH”) or other electronic transfer or any other form of monetary payment and/or pecuniary benefit received by Seller.

d. “Periodic Receipts” shall mean the amount of Future Receipts received by Seller during each Remittance Period.

e. “Purchased Amount” is the amount identified above and refers to the total amount of Future Receipts that Seller shall be under obligation to deliver to Buyer pursuant to this Agreement.

f. “Purchase Price” is the amount identified above and refers to the total amount that Buyer agrees to pay for the Purchased Amount. Seller acknowledges that the amount that Seller will actually receive from Buyer pursuant to this Agreement will be the Net Amount Funded to Seller.

g. “Closing Costs” shall mean, collectively, all initial costs and fees that identified above and in Section 16 that Seller agrees to pay to Buyer as consideration for agreeing to enter into this Agreement.

h. “Net Amount Funded to Seller” is the amount identified above and refers to the Purchase Price less the total Closing Costs identified above and in Section 16 and less Prior Balance identified above and in Section 17.

i. “Remittance Amount” shall mean the amount that Seller shall deliver to Buyer at the end of each Remittance Period as part of the Purchased Amount. The initial Remittance Amount is the amount first described above. The parties agree that the initial Remittance Amount is a good faith approximation of the Specified Percentage of Seller’s Future Receipts during the first Remittance Period, based upon the information provided by Seller to Buyer concerning Seller’s most recent accounts receivables, including representations by the Seller to Buyer regarding the Seller’s estimated Future Receipts. The Remittance Amount is subject to Seller’s right of adjustment/reconciliation set forth in this Agreement.

j. “Remittance Period” shall mean the daily or weekly period by the end of which a Remittance Amount shall be delivered by Seller to Buyer.

k. “Workday” shall mean Monday through Friday except on days when banking institutions are closed for the holidays and do not process ACH payments.

l. “Prior Balance” shall mean the sum of all amounts that Seller may owe to Buyer and/or third party(s) as of the Effective Date of this Agreement. Seller agrees that: (i) the Prior Balance, if any, as described in Section 17 of this Agreement, will be deducted from the Purchase Price prior to delivering it to Seller pursuant to Seller’s authorization set forth in Rider 1 to this Agreement; and (ii) such deduction of the Prior Balance shall not be deemed to reduce the agreed upon Purchase Price.

m “Origination Fee” shall mean the fee that Seller and a Broker have agreed to in conjunction with brokering this Agreement, which amount Seller authorizes Buyer to withhold from the Purchase Price and pay to said Broker. The Origination Fee, if any, is described in Section 17 of this Agreement and will be deducted from the Purchase Price prior to delivering it to Seller pursuant to Seller’s authorization set forth in Section 19.

n. In the event “Seller” is comprised of more than one entity, then:

i. The term “Seller” shall mean, individually and collectively, interchangeably, all such entities; and

ii. Each Seller is an “Affiliate” of all other Seller(s). The term “Affiliate” shall mean an entity or an individual that (1) controls, (2) is under the “Control”, or (3) is under common Control with the entity or individual in question. The term “Control” shall mean direct or indirect ownership of more than 50% of the outstanding voting stock of a corporation or other majority equity interest if not a corporation and the possession of power to direct or cause the direction of the management and policy of such corporation or other entity, whether through ownership of voting securities, by stature, or by contract; and

iii. The representations, warranties, covenants, obligations and liabilities of each Seller shall be joint and several under this Agreement; and

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iv. The liability of each Seller under this Agreement shall be direct and immediate and shall not be conditional or contingent upon the pursuance of any remedies against any other person or entity; and

v. The terms “Specified Percentage”, “Future Receipts”, “Periodic Receipts”, “Remittance Amount” shall mean the Specified Percentage, the Future Receipts and the Periodic Receipts of each Seller individually; and

vi. Buyer may pursue its rights and remedies under this Agreement against any one or any number of entities that constitute Seller without obligation to assert, prosecute or exhaust any remedy or claim against any other Seller or any Guarantor.

o. In the event “Guarantor” is comprised of more than one individual, then:

i. The term “Guarantor” shall mean, individually and collectively, all such individuals; and

ii. Each Guarantor is an Affiliate of all other Guarantor(s); and

iii. The representations, warranties, covenants, obligations and liabilities of each Guarantor shall be joint and several under this Agreement and the Guaranty; and

iv. The liability of each Guarantor under this Agreement and the Guaranty shall be direct and immediate and shall not be conditional or contingent upon the pursuance of any remedies against any other person or entity; and

v. Buyer may pursue its rights and remedies under this Agreement and/or Guaranty against any one or any number of individuals that constitute Guarantor without obligation to assert, prosecute or exhaust any remedy or claim against any other Guarantor or any Seller.

2. The Term. This Agreement for the purchase and sale of Future Receipts does not have a fixed duration or term, which is indefinite. Subject to the provisions of Sections 10-13 hereof, the term of this Agreement shall commence on the Effective Date and terminate on the earlier of: (i) the date (the “Termination Date”) when the Purchased Amount and all other sums due to Buyer pursuant to this Agreement are received by Buyer in full; and (ii) when Seller’s performance has been excused pursuant to Section 16(b).

3. Non-Recourse Sale of Purchased Future Receipts. Seller hereby sells, assigns, transfers and conveys (hereinafter, the “Sale”) unto Buyer all of Seller’s right, title and interest in to the Specified Percentage of the Future Receipts until the Purchased Amount shall have been delivered by Seller to Buyer (hereinafter, the portion of the Future Receipts sold by Seller to Buyer pursuant to this Agreement, the “Purchased Future Receipts”); to have and hold the same unto Buyer, its successors and assigns, forever. This Sale of the Purchased Future Receipts is made without express or implied warranty to Buyer of collectability of the Purchased Future Receipts by Buyer and without recourse against Seller and/or Guarantor(s), except as specifically set forth in this Agreement. By virtue of this Agreement, Seller transfers to Buyer full and complete ownership of the Purchased Future Receipts and Seller retains no legal or equitable interest therein.

4. Payment of Purchase Price. In consideration of the sale by Seller to Buyer of the Purchased Future Receipts pursuant to this Agreement, Buyer agrees to pay to Seller the Purchase Price by delivering the Net Funded Amount to Seller after execution of this Agreement.

5. Use of Purchase Price. Seller hereby acknowledges that it fully understands that: (i) Buyer’s ability to collect the Purchased Amount (or any portion thereof) is contingent upon Seller’s continued operation of its business and successful generation of the Future Receipts until the Purchased Amount is delivered to Buyer in full; and (ii) that in the event of decreased efficiency or total failure of Seller’s business, Buyer’s receipt of the full or any portion of the Purchased Amount may be delayed indefinitely. Based upon the forgoing, Seller agrees to use the Purchase Price exclusively for the benefit and advancement of Seller’s business operations and for no other purpose.

6. Delivery of Purchased Amount. The Purchased Amount shall be delivered by Seller to Buyer in the amount of the Remittance Amount (subject adjustment as described below) at the end of each Remittance Period, commencing on the Effective Date and ending on the Termination Date. Buyer reserves the right to apply amounts received by it under this Agreement to any fees or other charges due to Buyer from Seller prior to applying such amounts to reduce the outstanding undelivered balance of the Purchased Amount.

7. Approved Bank Account and Credit Card Processor. During the term of this Agreement, Seller shall: (i) deposit all Future Receipts into one (and only one) bank account which bank account shall be acceptable and preapproved by Buyer (the “Approved Bank Account”), (ii) use one (and only one) credit card processor which processor shall be acceptable and preapproved by Buyer (the “Approved Processor”) and (iii) deposit all credit card receipts into the Approved Bank Account. In the event the Approved Bank Account or Approved Processor shall become unavailable or shall cease providing services to Seller during the term of this Agreement, prior to the first date of such unavailability or cessation of services, Seller shall arrange for another Approved Bank Account or Approved Processor, as the case may be.

8. Authorization to Debit Approved Bank Account. Seller hereby authorizes Buyer, and/or Delta Bridge Funding LLC

(as servicing agent for this Agreement) to initiate electronic checks or ACH debits from the Approved Bank Account (which as of the Effective Date of this Agreement shall be the account listed on Appendix A hereto) in the amount of the Remittance Amount at the end of each Remittance Period commencing on the Effective Date until Buyer receives the full Purchased Amount (the “ACH Authorization”). This ACH Authorization shall be irrevocable until such time when Seller shall have performed its obligations under this Agreement in full. Seller acknowledges that the origination of ACH entries to and from the Approved Bank Account must comply with applicable law and applicable network rules. Seller agrees to be bound by the Rules and Operating Guidelines of NACHA . Seller will not dispute any ACH entry initiated pursuant to this ACH Authorization, provided the transaction corresponds to the terms of this authorization. Seller requests the financial institution that holds the Approved Bank Account to honor all ACH entries initiated in accordance with this ACH Authorization. If requested by Buyer, Seller shall execute a separate authorization for Buyer and/or Delta Bridge Funding LLC to arrange for electronic fund transfers (including ACH payments) in the amount of any Remittance Amount from the Approved Bank Account. Seller shall provide Buyer and/or its authorized agent with all information, authorizations and passwords necessary to verify Seller’s receivables, receipts and deposits into the Approved Bank Account.

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9. Shortage of Funds and Fees Associated with Debiting Approved Bank Account. It shall be Seller’s exclusive responsibility to pay to its banking institution and/or Buyer’s banking institution directly (or to compensate Buyer, in case it is charged) all fees, charges and expenses incurred by either Seller or Buyer due to rejected electronic checks or ACH debit attempts, overdrafts or rejections by Seller’s banking institution of the transactions contemplated by this Agreement, including without limitation a $35.00 charge per bounced or rejected ACH debit.

10. Seller’s Right for Reconciliation. Seller and Buyer each acknowledges and agrees that:

a. If at any time during the term of this Agreement Seller will experience unforeseen decrease or increase in its Periodic Receipts, then so long as Seller is not then in default under the terms of this Agreement, Seller shall have the right, at its sole and absolute discretion, but subject to the provisions of Section 11 below, to request retroactive reconciliation of the Remittance Amounts paid during one (1) or more full calendar month(s) immediately preceding the day when such request for reconciliation is received by Buyer (each such calendar month for which a reconciliation is requested, a “Reconciliation Month”).

b. Such reconciliation (the “Reconciliation”) of the Seller’s Remittance Amounts for one or more Reconciliation Month(s) shall be performed by Buyer within five (5) Workdays following its receipt of the Seller’s request for Reconciliation by either crediting or debiting the difference back to, or from, the Approved Bank Account so that the total amount debited by Buyer from the Approved Bank Account during the Reconciliation Month(s) at issue is equal to the Specific Percentage of the Future Receipts that Seller collected during the Reconciliation Month(s) at issue.

c. One or more Reconciliation procedures performed by Buyer may reduce or increase the effective Remittance Amount during the Reconciliation Month in comparison to the initial Remittance Amount first described in this Agreement, and, as the result of such reduction, the term of this Agreement during which Buyer will be debiting the Approved Bank Account may be shortened or extended indefinitely.

11. Request for Reconciliation Procedure.

a. It shall be Seller’s sole responsibility and the right hereunder to initiate Reconciliation of Seller’s actual Remittance Amounts during any Reconciliation Month by sending a request for Reconciliation to Buyer.

b. Any such request for Reconciliation of the Seller’s Remittance Amounts for specific Reconciliation Month(s) shall be in writing, shall state the Reconciliation Month(s) for which Reconciliation is requested, and shall include copies of Seller’s bank statement(s) and credit card processing statements for each Reconciliation Month at issue, and shall be received by Buyer via email to customerservice@approvalandreconciliation.com, with the subject line “REQUEST FOR RECONCILIATION” or by other means (to be provided to Seller by Buyer upon request).

c. Reconciliation cannot be made two or more times for the same Reconciliation Month.

d. Commencing in the calendar month immediately following the Effective Date of this Agreement, Seller shall have the right to request Reconciliation as many times during the term of this Agreement as it deems proper, and Buyer shall comply with each such request, provided that each such request is made in accordance with the terms of this Section 11.

e. Nothing set forth in Sections 10 or 11 of this Agreement shall be deemed to: (i) provide Seller with the right to interfere with Buyer’s right and ability to debit the Approved Bank Account while the request for Reconciliation of Seller’s receipts is pending or until the Purchased Amount is collected by Buyer in full, or (ii) modify the Remittance Amount for any calendar month during the term of this Agreement other than during the Reconciliation Month(s) as the result of the Reconciliation.

12. Adjustment of the Remittance Amount. Seller and Buyer each acknowledge and agree that:

a. If at any time during the term of this Agreement Seller experiences a steady decrease in its Periodic Receipts, and so long as Seller is not in default under the terms of this Agreement, Seller shall have the right, at its sole and absolute discretion, but subject to the provisions of Section 13 below, to request modification (“Adjustment”) of the amount of the Remittance Amount that Seller is obligated to deliver to Buyer at the end of each Remittance Period to more closely reflect the Seller’s actual Periodic Receipts multiplied by the Specified Percentage (the “Adjusted Remittance Amount”). Buyer shall provide such Adjustment within five (5) Workdays following its receipt of the Seller’s request for Adjustment. The Adjustment shall become effective as of the date it is performed and the Adjusted Remittance Amount shall replace and supersede the amount of the initial Remittance Amount first described above for thirty (30) days from and including the date it is granted. Upon the expiration of such 30-day period the amount of the Remittance Amount shall automatically revert back to the amount of the initial Remittance Amount, absent an additional request for Adjustment at the expiry of the 30-day period pursuant to this Section 12.

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b. The parties acknowledge that any Adjustment that reduces the initial Remittance Amount may have the effect of extending the period of time needed for Seller to deliver the entire Purchased Amount to Buyer.

13. Request for Adjustment Procedure.

a. It shall be Seller’s sole responsibility and the right to initiate the Adjustment by sending a request for Adjustment to Buyer.

b. A request for Adjustment (an “Adjustment Request”) shall be in writing, and shall include copies of Seller’s last three (3) consecutive bank statements of the Approved Bank Account and credit card processing statements immediately preceding the date of Buyer’s receipt of the Adjustment Request. The Adjustment Request must be received by Buyer by email at customerservice@approvalandreconciliation.com, with the subject line “REQUEST FOR ADJUSTMENT” within thirty (30) days after the date that is the later of (i) the last day of the latest bank statement enclosed with the Adjustment Request and (ii) the last date of the latest credit card processing statement enclosed with the Adjustment Request.

c. Buyer’s receipt of a Seller’s Adjustment Request after the expiration of the above referenced thirty (30) day period nullifies and makes obsolete such Adjustment Request.

d. Seller shall have the right to request Adjustment of the initial Remittance Amount (or any Adjusted Remittance Amount, as the case may be) as many times during the term of this Agreement as it deems proper, and Buyer shall comply in good faith with such request, provided that:

i. Each such request for Adjustment is made in accordance with the terms of this Section 13; and

ii. No Adjustment shall be made after the Termination Date.

e. Nothing set forth in Sections 12 or 13 of this Agreement shall be deemed to provide Seller with the right to (i) interfere with Buyer’s right and ability to debit the Approved Bank Account while the request for Adjustment is pending or until the Purchased Amount is collected by Buyer in full or (ii) request Adjustment retroactively for the portion of the term of this Agreement preceding the date of an Adjustment Request.

14. Buyer’s Assumption of Risk.

a. Nonrecourse Sale of Future Receipts. Seller is selling a portion of a future revenue stream to Buyer at a discount, not borrowing money from Buyer. There is no interest rate or payment schedule and no time period during which the Purchased Amount must be collected by Buyer. Seller acknowledges that it has no right to repurchase the Purchased Amount from Buyer. Buyer assumes the risk that Future Receipts may be remitted more slowly than Buyer may have anticipated or projected because Seller’s business has slowed down, and the risk that the full Purchased Amount may never be remitted because Seller’s business went bankrupt or Seller otherwise ceased operations in the ordinary course of business, to the extent not cause by Seller’s breach of this Agreement. Buyer is buying the Purchased Amount of Future Receipts knowing the risks that Seller’s business may slow down or fail, and Buyer assumes these risks based on Seller’s representations, warranties and covenants in this Agreement that are designed to give Buyer a reasonable and fair opportunity to receive the benefit of its bargain. By this Agreement, Seller transfers to Buyer full and complete ownership of the Purchased Amount of Future Receipts and Seller retains no legal or equitable interest therein. Seller agrees that it will treat the Purchase Price and Purchased Amount in a manner consistent with a sale in its accounting records and tax returns. Seller agrees that Buyer is entitled to audit Seller’s accounting records upon reasonable Notice in order to verify compliance. Seller waives any rights of privacy, confidentiality or taxpayer privilege in any such litigation or arbitration in which Seller asserts that this transaction is anything other than a sale of future receipts.

b. Excused Performance. Buyer agrees to purchase the Purchased Future Receipts knowing the risks that Seller’s business may slow down or fail, and Buyer assumes this risk based exclusively upon the information provided to it by Seller and related to the business operations of Seller’s business prior to the date hereof, and upon Seller’s representations, warranties and covenants contained in this Agreement that are designed to give Buyer a reasonable and fair opportunity to receive the benefit of its bargain. Furthermore, Buyer hereby acknowledges and agrees that Seller shall be excused from performing its obligations under this Agreement in the event Seller’s business ceases its operations exclusively due to the following reasons:

i. adverse business conditions or other circumstances that occurred for reasons outside Seller’s control;

ii. loss of the premises where the business operates (but not due to Seller’s breach of its obligations to its landlord), provided however that Seller does not continue and/or resume business operations at another location;

iii. bankruptcy of Seller; and/or

iv. natural disasters or similar occurrences beyond Seller’s control.

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15. Fees and Charges to Buyer (“Closing Costs). Seller acknowledges that any Due Diligence fee, or UCC fees and described above as “Closing Costs” were agreed upon between Seller and Buyer prior to Seller entering into this Agreement, and were subject to arms-length negotiation between Buyer and Seller.

16. Origination Fee. Seller acknowledges that any Origination Fee disclosed above as a “Closing Cost” was agreed upon between Seller and a third-party broker for services related to this Seller’s transaction with Buyer. Buyer is not a party to any agreement between Seller and its broker. Seller hereby requests and authorizes Buyer to withhold the Origination Fee from the Purchase Price, and to remit the Origination Fee to such broker.

17. Prior Balance of Purchased Amounts. Seller represents and warrants that Rider 1, which is attached hereto and made a part hereof, contains true and correct information as to the name(s) of Seller’s creditors and the amounts that Seller owes each of those creditors as of the Effective Date (and these amounts being a portion of the Prior Balance of Purchased Amounts), and that as of the date hereof there are no creditors of Seller which may otherwise encumber the Purchased Future Receipts other than those listed in Rider 1. Seller indemnifies and holds harmless Buyer for any and all damages and losses (including without limitation legal fees and expenses) incurred by Buyer as the result of such representation being untrue, incorrect or incomplete.

18. No Reduction of Purchase Price. Seller agrees that deduction of the Closing Costs, the Prior Balance and the Origination Fee from the Purchase Price shall not be deemed to be a reduction of the Purchase Price.

REPRESENTATIONS, WARRANTIES AND COVENANTS

19. Seller represents, warrants and covenants that as of this date and unless expressly stated otherwise during the term of this Agreement:

a. Financial Condition and Financial Information. Seller’s bank and financial statements, copies of which have been furnished to Buyer, and future statements which may be furnished hereafter pursuant to this Agreement or upon Buyer’s request, fairly represent the financial condition of Seller as of the dates such statements were issued, and prior to execution of the Agreement there has been no material adverse changes, financial or otherwise, in such condition, operation or ownership of Seller. Seller shall advise Buyer of any material adverse change in its financial condition, operation or ownership, and/or online banking log-in credentials. Buyer may request Seller’s bank statements at any time during the term of this Agreement and Seller shall provide them to Buyer within five (5) Workdays.

b. Governmental Approvals. Seller is in compliance and, during the term of this Agreement, shall be in compliance with all laws and has valid permits, authorizations and licenses to own, operate and lease its properties and to conduct the business in which it is presently engaged.

c. Good Standing. Seller is a corporation/limited liability company/limited partnership/other type of entity that is in good standing and duly incorporated or otherwise organized and validly existing under the laws of its jurisdiction of incorporation or organization, and has full power and authority necessary to carry its business as it is now being conducted.

d. Authorization. Seller has all requisite power to execute, deliver and perform this Agreement and consummate the transactions contemplated hereunder; entering into this Agreement will not result in breach or violation of, or default under, any agreement or instrument by which Seller is bound or any statute, rule, regulation, order or other law to which Seller is subject, nor require the obtaining of any consent, approval, permit or license from any governmental authority having jurisdiction over Seller. All organizational and other proceedings required to be taken by Seller to authorize the execution, delivery and performance of this Agreement have been taken. The person signing this Agreement on behalf of Seller has full power and authority to bind Seller to perform its obligations under this Agreement.

e. Accounting Records and Tax Returns. Seller will treat receipt of the Net Amount Funded to Seller and payment of the Purchased Amount in a manner evidencing sale of its Future Receipts in its accounting records and tax returns and further agrees that Buyer is entitled to audit Seller’s accounting records upon reasonable notice in order to verify compliance. Seller hereby waives any rights of privacy, confidentiality or taxpayer privilege in any litigation or arbitration arising out of this Agreement in which Seller asserts that this transaction is anything other than a sale of Future Receipts.

f. Taxes; Workers Compensation Insurance. Seller has paid and will promptly pay, when due, all taxes, including without limitation, income, employment, sales and use taxes, imposed upon Seller’s business by law, and will maintain workers compensation insurance required by applicable governmental authorities.

g. Business Insurance. Seller maintains and will maintain general liability and business-interruption insurance naming Buyer as loss payee and additional insured in the amounts and against risks as are satisfactory to Buyer and shall provide Buyer with proof of such insurance upon request.

h. Approved Processor and Bank. Seller shall not change its Approved Processor, add terminals, change its Approved Bank Account(s) or take any other action that could have any adverse effect upon Seller’s obligations or impede Buyer’s rights under this Agreement, without Buyer’s prior written consent.

i. No Diversion of Future Receipts. Seller shall not allow any event to occur that would cause a diversion of any portion of Seller’s Future Receipts from the Approved Bank Account or Approved Processor without Buyer’s written consent.

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j. Change of Name or Location. Seller, any successor-in-interest of Seller, and Guarantor shall not conduct Seller’s businesses under any name other than as disclosed to the Approved Processor and Buyer, shall not change and/or transfer ownership in/of the Seller and will not change any of its places of business without first obtaining Buyer’s written consent.

k. Prohibited Business Transactions. Seller shall not: (i) transfer or sell all or substantially all of its assets without first obtaining Buyer’s consent; or (ii) make or send notice of its intended bulk sale or transfer.

l. No Closing of Business. Seller will not sell, dispose, transfer or otherwise convey all or substantially all of its business or assets without first: (i) obtaining the express written consent of Buyer, and (ii) providing Buyer with a written agreement of a purchaser or transferee of Seller’s business or assets to assume all of Seller’s obligations under this Agreement pursuant to documentation satisfactory to Buyer. Seller represents that as of the date of Seller’s execution of this Agreement it has no current plans to close its business either temporarily (for renovations, repairs or any other purpose), or permanently. Seller agrees that until Buyer shall have received the Purchased Amount in full, Seller will not voluntarily close its business on a permanent or temporarily basis for renovations, repairs, or any other purposes. Notwithstanding the foregoing, Seller shall have the right to close its business temporarily if such closing is necessitated by a requirement to conduct renovations or repairs imposed upon Seller’s business by legal authorities having jurisdiction over Seller’s business (such as from a health department or fire department), or if such closing is necessitated by circumstances outside Seller’s reasonable control. Prior to any such temporary closure of its business, Seller shall provide Buyer ten (10) business days advance notice to the extent practicable.

m. No Pending Bankruptcy. As of the date of Seller’s execution of this Agreement, Seller has not filed, and does not contemplate filing, any petition for bankruptcy protection under Title 11 of the United States Code and there has been no involuntary bankruptcy petition brought or pending against Seller. Seller represents that it has not consulted with a bankruptcy attorney on the issue of filing bankruptcy or some other insolvency proceeding within six months immediately preceding the date of this Agreement.

n. Estoppel Certificate. Seller will at any time, and from time to time, upon at least one (1) day’s prior notice from Buyer to Seller, execute, acknowledge and deliver to Buyer and/or to any other person or entity specified by Buyer, a statement certifying that this Agreement is unmodified and in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified and stating the modification(s) and stating the date(s) on which the Purchased Amount or any portion thereof has been repaid.

o. Unencumbered Future Receipts. Seller has and will continue to have good, complete and marketable title to all Future Receipts, free and clear of any and all liabilities, liens, claims, changes, restrictions, conditions, options, rights, mortgages, security interests, equities, pledges and encumbrances of any kind or nature whatsoever or any other rights or interests other than by virtue or entering into this Agreement. Seller specifically warrants and represents that it is not currently bound by the terms of any future receivables and/or factoring agreement which may encumber in any way the Future Receipts.

p. No Stacking. Seller shall not further encumber the Future Receipts, without first obtaining written consent of Buyer.

q. Business Purpose. Seller is entering into this Agreement solely for business purposes and not as a consumer for personal, family or household purposes.

r. No Default Under Contracts with Third Parties. Seller’s execution of and/or performance of its obligations under this Agreement will not cause or create an event of default by Seller under any contract, which Seller is or may become a party to.

s. Right of Access. In order to ensure Seller’s compliance with the terms of this Agreement, Seller hereby grants Buyer the right to enter, without notice, the premises of Seller’s business for the purpose of inspecting and checking Seller’s transaction processing terminals to ensure the terminals are properly programmed to submit and/or batch Seller’s Periodic Receipts to the Approved Processor and to ensure that Seller has not violated any other provision of this Agreement. Furthermore, Seller hereby grants Buyer and its employees and consultants access to Seller’s employees and records and all other items of property located at the Seller’s place of business during the term of this Agreement. Seller hereby agrees to provide Buyer, upon request, all and any information concerning Seller’s business operations, banking relationships, names and contact information of Seller’s suppliers, vendors and landlord(s), to allow Buyer to interview any of those parties.

t. Phone Recordings and Contact. Seller agrees that any call between Seller and Buyer, and their respective owners, managers, employees and agents may be recorded and/or monitored. Furthermore, Seller acknowledges and agrees that: (i) it has an established business relationship with Buyer, its managers, employees and agents (collectively, the “Buyer Parties”) and that Seller may be contacted by any of the Buyer Parties from time-to-time regarding Seller’s performance of its obligations under this Agreement or regarding other business transactions; (ii) it will not claim that such communications and contacts are unsolicited or inconvenient; and (iii) any such contact may be made by any of the Buyer Parties in person or at any phone number (including mobile phone number), email addresses, or facsimile number belonging to Seller’s office, or its owners, managers, officers, or employees.

u. Knowledge and Experience of Decision Makers. The persons authorized to make management and financial decisions on behalf Seller with respect to this Agreement have such knowledge, experience and skill in financial and business matters in general and with respect to transactions of a nature similar to the one contemplated by this Agreement so as to be capable of evaluating the merits and risks of, and making an informed business decision with regard to, Seller entering into this Agreement.

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v. Seller’s Due Diligence. The person authorized to sign this Agreement on behalf of Seller: (i) has received all information that such person deemed necessary to make an informed decision with respect to a transaction contemplated by this Agreement; and (ii) has had unrestricted opportunity to make such investigation as such person desired pertaining to the transaction contemplated by this Agreement and verify any such information furnished to him or her by Buyer.

w. Consultation with Counsel. The person(s) signing this Agreement of behalf of Seller: (a) has read and fully understands the content of this Agreement; (b) has consulted to the extent he/she wished with Seller’s own counsel in connection with the entering into this Agreement; (c) has made sufficient investigation and inquiry to determine whether this Agreement is fair and reasonable to Seller, and whether this Agreement adequately reflects his or her understanding of its terms.

x. No Reliance on Oral Representations. No course of performance or other conduct subsequently pursued or acquiesced in, and no oral agreement or representation subsequently made, by the Buyer Parties, whether or not relied or acted upon, and no usage of trade, whether or not relied or acted upon, shall amend this Agreement or impair or otherwise affect Seller’s obligations pursuant to this Agreement or any rights and remedies of the parties to this Agreement.

y. No Additional Fees Charged. Seller hereby acknowledges and agrees that: (i) other than the Closing Costs first described above, if any, Buyer is NOT CHARGING ANY ADDITIONAL FEES OR CLOSING COSTS to Seller; and (ii) if Seller is charged with any fee and/or cost not described in the Closing Costs hereof, such fee is not charged by Buyer.

20. Acknowledgment of Security Interest and Security Agreement. The Future Receipts sold by Seller to Buyer pursuant to this Agreement shall constitute and shall be construed and treated for all purposes as a true and complete sale, conveying good title to the Future Receipts free and clear of any liens and encumbrances, from Seller to Buyer. To the extent the Future Receipts are “accounts” or “payment intangibles” as those terms are defined in the Uniform Commercial Code as in effect in the state in which the Seller is located (“UCC”) then: (i) the sale of the Future Receipts creates a security interest as defined in the UCC; (ii) this Agreement constitutes a “security agreement” under the UCC; and (iii) Buyer has all the rights of a secured party under the UCC with respect to such Future Receipts. Seller further agrees that, with or without an Event of Default, Buyer may notify account debtors, or other persons obligated on the Future Receipts, or holding the Future Receipts, of Seller’s sale of the Future Receipts and may instruct them to make payment or otherwise render performance to or for the benefit of Buyer.

21. Pledge. As security for the prompt and complete payment and performance of any and all liabilities, obligations, covenants or agreements of Seller under this Agreement (and any future amendments of this Agreement, if any) (hereinafter referred to collectively as the “Obligations”), Seller hereby pledges, assigns and hypothecates to Buyer (collectively, “Pledge”) and grants to Buyer a continuing, perfected and first priority lien upon and security interest in, to and under all of Seller’s right, title and interest in and to the following (collectively, the “Collateral”), whether now existing or hereafter from time to time acquired:

i. all accounts, including without limitation, all deposit accounts, accounts-receivable, and other receivables, chattel paper, documents, equipment, general intangibles, instruments, and inventory, as those terms are defined by Article 9 of the Uniform Commercial Code (the “UCC”), now or hereafter owned or acquired by Seller; and

ii. all Seller’s proceeds, as such term is defined by Article 9 of the UCC.

22. Termination of Pledge. Upon the payment and performance by Seller in full of the Obligations, the security interest in the Collateral pursuant to this Pledge shall automatically terminate without any further act of either party being required, and all rights to the Collateral shall revert to Seller. Upon any such termination, Buyer will execute, acknowledge (where applicable) and deliver such satisfactions, releases and termination statements, as Seller shall reasonably request.

23. Financing Statements. Seller authorizes Buyer to file one or more UCC-1 forms consistent with the UCC to give notice that the Purchased Amount of Future Receipts is the sole property of Buyer. The UCC filing may state that such sale is intended to be a sale and not an assignment for security and may state that the Seller is prohibited from obtaining any financing that impairs the value of the Future Receipts or Buyer’s right to collect same. Seller authorizes Buyer to debit the Account for all costs incurred by Buyer associated with the filing, amendment or termination of any UCC filings.

24. Further Assurances. At Buyer’s request, Seller, at Seller’s sole cost and expense, shall execute and deliver all such further UCC-1s, continuation statements, assurances, assignments, and consents with respect to the sale of the Purchased Amount, and shall execute and deliver such further instruments, agreements and other documents and do such further acts and things, as Buyer may request in order to more fully effectuate the purposes of this Agreement.

EVENTS OF DEFAULT AND REMEDIES

25. Events of Default. The occurrence of any of the following events shall constitute an “Event of Default”: (a) Seller interferes with Buyer’s right to collect the Remittance Amount; (b) Seller violates any term or covenant in this Agreement; (c) Seller uses multiple depository accounts without the prior written consent of Buyer; (d) Seller revokes the ACH Authorization; (e) Seller changes its depositing account or its payment card processor without the prior written consent of Buyer; (f) Seller defaults under any other agreement with Buyer, or breaches any of the terms, covenants and conditions of any other agreement with Buyer, or (g) Seller causes four (4) or more ACH transactions attempted by Buyer during any thirty-day period during the term of this Agreement to be rejected by Seller’s bank.

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26. Remedies. If any Event of Default occurs, Buyer may proceed to protect and enforce its rights including, but not limited to, the following:

a. The Specified Percentage shall equal 100%. The full undelivered Purchased Amount plus all fees and charges (including legal fees) assessed under this Agreement will become due and payable in full immediately.

b. The Remittance Amount shall equal 100% of all Future Receipts.

c. Buyer may enforce the provisions of any Guaranty against each Guarantor.

d. Seller shall pay to Buyer all reasonable costs associated with the Event of Default. Buyer may proceed to protect and enforce its rights and remedies by arbitration or lawsuit. In any such arbitration or lawsuit, under which Buyer shall recover Judgment against Seller, Seller shall be liable for all of Buyer’s costs, including but not limited to all reasonable attorneys’ fees and court costs. However, the rights of Buyer under this provision shall be limited as provided in the arbitration provision set forth on arbitration below.

e. This Agreement shall be deemed Seller’s Assignment of Seller’s Lease of Seller’s business premises to Buyer. Upon an Event of Default, Buyer may exercise its rights under this Assignment of Lease without prior notice to Seller.

f. Buyer may debit Seller’s depository accounts wherever situated by means of ACH debit or facsimile signature on a computer-generated check drawn on any of Seller’s bank accounts for all sums due to Buyer.

g. Subject to arbitration as provided in Section 44 of this Agreement, all rights, powers and remedies of Buyer in connection with this Agreement may be exercised at any time by Buyer after the occurrence of an Event of Default, are cumulative and not exclusive, and shall be in addition to any other rights, powers or remedies provided by law or equity.

27. Remedies are not Exclusive. All rights, powers and remedies of Buyer in connection with this Agreement set forth herein may be exercised at any time after the occurrence of any Event of Default, are cumulative and not exclusive and shall be in addition to any other rights, powers or remedies provided to Buyer by law or equity.

28. Power of Attorney. Seller irrevocably appoints Buyer and its representatives as its agents and attorneys-in-fact with full authority to take any action or execute any instrument or document to do the following: (A) to settle all obligations due to Buyer from any credit card processor and/or account debtor(s) of Seller; (B) upon occurrence of an Event of Default to perform any and all obligations of Seller under this Agreement, including without limitation (i) to obtain required insurance; (ii) to collect monies due or to become due under or in respect of any of the Collateral; (iii) to receive, endorse and collect any checks, notes, drafts, instruments, documents or chattel paper in connection with clause (i) or clause (ii) above; (iv) to sign Seller’s name on any invoice, bill of lading, or assignment directing customers or account debtors, as that term is defined by Article 9 of the UCC (“Account Debtors”), to make payment directly to Buyer (including providing information necessary to identify Seller); and (v) to file any claims or take any action or institute any proceeding which Buyer may deem necessary for the collection of any of the undelivered Purchased Amount, or otherwise to enforce its rights with respect to collection of the Purchased Amount.

ADDITIONAL TERMS

29. Financial Condition. Seller and its Guarantor(s) authorize Buyer and its agents to investigate their financial status and history, and will provide to Buyer any bank or financial statements, tax returns, etc., as Buyer deems necessary prior to or at any time after execution of this Agreement. A photocopy of this authorization will be deemed as acceptable for release of financial information. Buyer Seller hereby authorizes Buyer to receive from time to time updates on such information and financial status.

30. Transactional History. Seller shall execute written authorization(s) to their bank(s) to provide Buyer with Seller’s banking and/or credit-card processing history.

31. Indemnification. Seller and its Guarantor(s) jointly and severally, indemnify and hold harmless to the fullest extent permitted by law Approved Processor, any ACH processor, customer and/or Account Debtors of the Seller, its/their officers, directors and shareholders against all losses, damages, claims, liabilities and expenses (including reasonable attorney’s fees) incurred by any ACH processor, customer and/or Account Debtors of the Seller resulting from (a) claims asserted by Buyer for monies owed to Buyer from Seller and (b) actions taken by any ACH processor, customer and/or Account Debtor of the Seller in reliance upon information or instructions provided by Buyer.

32. No Liability. In no event shall Buyer be liable for any claims asserted by Seller or any Guarantor under any legal theory for lost profits, lost revenues, lost business opportunities, exemplary, punitive, special, incidental, indirect or consequential damages, each of which is hereby knowingly and voluntarily waived by Seller each Guarantor.

MISCELLANEOUS

33. Modifications; Agreements. No modification, amendment, waiver or consent of any provision of this Agreement shall be effective unless the same shall be in writing and signed by both parties.

34. Assignment. Buyer may assign, transfer or sell its rights or delegate its duties hereunder, either in whole or in part without prior notice to the Seller. Seller shall not assign its rights or obligations under this Agreement without first obtaining Buyer’s written consent.

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35. Notices. Unless different means of delivering notices are set forth elsewhere in this Agreement, all notices, requests, consent, demands and other communications hereunder shall be delivered by certified mail, return receipt requested, to the respective parties to this Agreement at the addresses set forth in this Agreement and shall become effective as of the date of receipt or declined receipt.

36. Waiver Remedies. No failure on the part of Buyer to exercise, and no delay in exercising, any right under this Agreement, shall operate as a waiver thereof, nor shall any single or partial exercise of any right under this Agreement preclude any other or further exercise thereof or the exercise of any other right. The remedies provided hereunder are cumulative and not exclusive of any remedies provided by law or equity.

37. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.

38. Governing Law, Venue and Jurisdiction. This Agreement shall be governed by and construed exclusively in accordance with the laws of the State of New York, without regards to any applicable principles of conflicts of law. Any lawsuit, action or proceeding arising out of or in connection with this Agreement shall be instituted exclusively in any court sitting in New York, (the “Acceptable Forums”). The parties agree that the Acceptable Forums are convenient, and submit to the jurisdiction of the Acceptable Forums and waive any and all objections to inconvenience of the jurisdiction or venue. Should a proceeding be initiated in any other forum, each of the parties to this Agreement irrevocably waives any right to oppose any motion or application made by any other party to transfer such proceeding to an Acceptable Forum. Seller and each Guarantor acknowledge and agree that the Purchase Price is being paid and received by Seller in New York, that the Specified Percentage of the Future Receipts are being delivered to Buyer in New York, and that the transaction contemplated in this Agreement was negotiated, and is being carried out, in New York. Seller and each Guarantor acknowledge and agree that New York has a reasonable relationship to this transaction.

39. Survival of Representation, etc. All representations, warranties and covenants herein shall survive the execution and delivery of this Agreement and shall continue in full force until all obligations under this Agreement shall have been satisfied in full and this Agreement shall have expired.

40. Severability. In case any of the provisions in this Agreement are found to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of any other provision contained herein shall not in any way be affected or impaired. Any provision of this Agreement that may be found by a court having jurisdiction to be prohibited by law shall be ineffective only to the extent of such prohibition without invalidating the remaining provisions hereof.

41. Entire Agreement. This Agreement (including any exhibits, riders, or addenda) embodies the entire agreement between Seller, each Guarantor and Buyer and supersedes all prior agreements and understandings relating to the subject matter hereof.

42. JURY TRIAL WAIVER. THE PARTIES HERETO WAIVE TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION OR PROCEEDING ON ANY MATTER ARISING IN CONNECTION WITH OR IN ANY WAY RELATED TO THE TRANSACTIONS OF WHICH THIS AGREEMENT IS A PART OR THE ENFORCEMENT HEREOF. EACH PARTY HERETO ACKNOWLEDGES THAT IT MAKES THIS WAIVER KNOWINGLY, WILLINGLY AND VOLUNTARILY AND WITHOUT DURESS, AND ONLY AFTER EXTENSIVE CONSIDERATION AND DISCUSSIONS OF THE RAMIFICATIONS OF THIS WAIVER WITH ITS ATTORNEYS.

43. CLASS ACTION WAIVER. EACH PARTY HERETO WAIVES ANY RIGHT TO ASSERT ANY CLAIMS AGAINST THE OTHER PARTY, AS A REPRESENTATIVE OR MEMBER IN ANY CLASS OR REPRESENTATIVE ACTION, EXCEPT WHERE SUCH WAIVER IS PROHIBITED BY LAW OR IS AGAINST PUBLIC POLICY. TO THE EXTENT EITHER PARTY IS PERMITTED BY LAW OR COURT OF LAW TO PROCEED WITH A CLASS OR REPRESENTATIVE ACTION AGAINST THE OTHER, THE PARTIES HEREBY AGREE THAT: (1) THE PREVAILING PARTY SHALL NOT BE ENTITLED TO RECOVER ATTORNEYS’ FEES OR COSTS ASSOCIATED WITH PURSUING THE CLASS OR REPRESENTATIVE ACTION (NOTWITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT TO THE CONTRARY); AND (2) THE PARTY WHO INITIATES OR PARTICIPATES AS A MEMBER OF THE CLASS WILL NOT SUBMIT A CLAIM OR OTHERWISE PARTICIPATE IN ANY RECOVERY SECURED THROUGH THE CLASS OR REPRESENTATIVE ACTION.

44. ARBITRATION. THE PARTIES ACKNOWLEDGE AND AGREE THAT, PROVIDED THAT NO SUIT, ACTION OR PROCEEDING HAS BEEN ALREADY COMMENCED IN CONNECTION WITH ANY MATTER ARISING OUT OF OR RELATED TO THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT, EACH BUYER SELLER, AND ANY GUARANTOR OF SELLER SHALL HAVE THE RIGHT TO REQUEST THAT ALL DISPUTES AND CLAIMS ARISING OUT OF OR RELATING TO THE CONSTRUCTION AND INTERPRETATION OF THIS AGREEMENT, ARE SUBMITTED TO ARBITRATION. THE PARTY SEEKING ARBITRATION SHALL FIRST SEND A WRITTEN NOTICE OF INTENT TO ARBITRATE TO ALL OTHER PARTIES, BY CERTIFIED MAIL UPON SENDING OF SUCH NOTICE, A PARTY REQUESTING ARBITRATION MAY COMMENCE AN ARBITRATION PROCEEDING WITH THE AMERICAN ARBITRATION ASSOCIATION (“AAA”) OR NATIONAL ARBITRATION FORUM (“NAF”). EACH SELLER, GUARANTOR AND BUYER SHALL PAY THEIR OWN ATTORNEYS’ FEES INCURRED DURING THE ARBITRATION PROCEEDING. THE PARTY INITIATING THE ARBITRATION SHALL PAY ANY ARBITRATION FILING FEE, ADMINISTRATION FEE AND ARBITRATOR’S FEE. FURTHER, BUYER, SELLER AND ANY GUARANTOR AGREE THAT IN THE EVENT THE ARBITRATION HAS COMMENCED, THE ARBITRATOR MAY NOT CONSOLIDATE PROCEEDINGS FOR MORE THAN ONE PERSON’S CLAIMS, AND MAY NOT OTHERWISE PRESIDE OVER ANY FORM OF A REPRESENTATIVE OR CLASS PROCEEDING, AND THAT IF THIS SPECIFIC PROVISION DEALING WITH THE PROHIBITION ON CONSOLIDATED, CLASS OR AGGREGATED CLAIMS IS FOUND UNENFORCEABLE, THEN THE ENTIRETY OF THIS ARBITRATION CLAUSE SHALL BE NULL AND VOID. THIS AGREEMENT TO ARBITRATE IS GOVERNED BY THE FEDERAL ARBITRATION ACT AND NOT BY ANY STATE LAW REGULATING THE ARBITRATION OF DISPUTES. THIS AGREEMENT IS FINAL AND BINDING EXCEPT TO THE EXTENT THAT AN APPEAL MAY BE MADE UNDER THE FAA. ANY ARBITRATION DECISION RENDERED PURSUANT TO THIS ARBITRATION AGREEMENT MAY BE ENFORCED IN ANY COURT WITH JURISDICTION. THE TERMS “DISPUTES” AND “CLAIMS” SHALL HAVE THE BROADEST POSSIBLE MEANING.

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45. SERVICE OF PROCESS. IN ADDITION TO THE METHODS OF SERVICE ALLOWED BY THE NEW YORK STATE CIVIL PRACTICE LAW & RULES (“CPLR”), SELLER HEREBY CONSENTS, IN THE EVENT OF DEFAULT HEREUNDER, TO SERVICE OF PROCESS UPON IT BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED. SERVICE HEREUNDER SHALL BE DEEMED COMPLETED UPON SELLER’S ACTUAL RECEIPT OF THE SERVICE OF PROCESS OR UPON BUYER’S RECEIPT OF THE RETURN THEREOF BY THE UNITED STATES POSTAL SERVICE AS REFUSED OR UNDELIVERABLE. SELLER MUST PROMPTLY NOTIFY BUYER, IN WRITING, OF EACH AND EVERY CHANGE OF ADDRESS TO WHICH SERVICE OF PROCESS SHALL BE MADE. SERVICE OF PROCESS BY BUYER TO THE LAST KNOWN SELLER’S ADDRESS SHALL BE SUFFICIENT. SELLER WILL HAVE THIRTY (30) CALENDAR DAYS FROM THE DATE OF DELIVERY (OR ATTEMPTED DELIVERY) OF THE SERVICE OF PROCESS HEREUNDER IN WHICH TO RESPOND. FURTHERMORE, SELLER EXPRESSLY CONSENTS THAT ANY AND ALL NOTICE(S), DEMAND(S), REQUEST(S) OR OTHER COMMUNICATION(S) UNDER AND PURSUANT TO THIS AGREEMENT SHALL BE DELIVERED IN ACCORDANCE WITH THE PROVISIONS OF THIS AGREEMENT.

46. Counterparts and Facsimile Signatures. This Agreement can be signed in one or more counterparts, each of which shall constitute an original and all of which when taken together, shall constitute one and the same agreement. Signatures delivered via facsimile and/or via Portable Digital Format (PDF) shall be deemed acceptable for all purposes, including without limitation the evidentially purposes. Furthermore, this Agreement may be signed electronically and a copy this Agreement with e-signatures of the parties shall have the same force and effect as the original.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written.

FOR THE SELLER		FOR THE SELLER
By:	/s/ CORY ROSENBERG	By:
Name:	CORY ROSENBERG	Name:	N/A
Title:	Owner/Agent/Manager	Title:	N/A
EIN:	[***]	EIN:	N/A

AGREE TO BE BOUND BY THE PROVIONS OF THIS AGREEMENT APPLICABLE TO AND CONCERNING GUARANTOR

OWNER/GUARANTOR #1		OWNER/GUARANTOR #2
By:	/s/ CORY ROSENBERG	By:
Name:	CORY ROSENBERG	Name:	N/A
SSN:	[***]	SSN:	N/A

CLOUDFUND LLC

By:

Name:

Title:

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EXHIBIT A

PERSONAL GUARANTY OF PERFORMANCE

This Personal Guaranty of Performance (this “Guaranty”) is executed as of 7/19/2023, by the undersigned individual(s) whose name(s) and signature(s) appear in the signature box of this Guaranty (individually and collectively, jointly and severally, “Guarantor”) for the benefit of CLOUDFUND LLC (“Buyer”).

WHEREAS:

A. Pursuant to that Future Receipts Sale and Purchase Agreement (the “Agreement”), dated as of 7/19/2023, between Buyer and the Seller(s) listed below (collectively and individually, “Seller”), Buyer has purchased a portion of Future Receipts of Seller.

THE SELLER:

Legal Business Name: FIRST PERSON INC

D/B/A: FIRST PERSON

B. Each Guarantor is an owner, officer, or manager of Seller and will directly benefit from Buyer and Seller entering into the Agreement.

C. Buyer is not willing to enter into the Agreement unless Guarantor irrevocably, absolutely and unconditionally guarantees to Buyer prompt and complete performance of all of the obligations of Seller under the Agreement (each such obligation, individually, an “Obligation” and all such obligations, collectively, the “Obligations”).

NOW, THEREFORE, as an inducement for Buyer to enter into the Agreement, and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, Guarantor does hereby agree as follows:

1. Defined Terms. All capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in the Agreement.

2. Guaranty of Obligations. Guarantor hereby irrevocably, absolutely and unconditionally guarantees to Buyer prompt, full, faithful and complete performance and observance of the following obligations of Seller (the “Guaranteed Obligations”);

a. Seller’s obligation to provide bank statements and other financial information within five Workdays after request from Buyer;

b. Seller’s obligation to not change its payment card processor, change the Approved Bank Account, or add bank accounts;

c. Seller’s obligation to not conduct Seller’s businesses under any name other than as disclosed to Buyer;

d. Seller’s obligation to not change any of its places of business without prior written consent by Buyer;

e. Seller’s obligation to not voluntarily sell, dispose, transfer or otherwise convey its business or substantially all business assets without (i) the express prior written consent of Buyer, and (ii) the written agreement of any purchaser or transferee assuming all of Seller’s obligations under this Agreement pursuant to documentation satisfactory to Buyer;

f. Seller’s obligation to not enter into any merchant cash advance or any loan agreement that relates to or encumbers its Future Receipts with any party other than Buyer for the duration of this Agreement without Buyer’s prior written consent;

g. Seller’s obligation not to interfere with Buyer’s right to withdraw the Remittance Amount from Seller’s bank account;

h. Seller’s obligation not to cause rejection by Seller’s bank of the ACH transactions attempted by Buyer; and

i. Seller’s obligation to provide truthful, accurate, and complete information as required by this Agreement.

Furthermore, Guarantor unconditionally covenants to Buyer that if default or breach shall at any time be made by Seller in the Guaranteed Obligations, Guarantor shall well and truly perform (or cause to be performed) the Guaranteed Obligations and pay all damages and other amounts stipulated in the Agreement with respect to the non-performance of the Guaranteed Obligations, or any of them.

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3. Guarantor’s Additional Covenants. The liability of Guarantor hereunder shall not be impaired, abated, deferred, diminished, modified, released, terminated or discharged, in whole or in part, or otherwise affected, by any event, condition, occurrence, circumstance, proceeding, action or failure to act, with or without notice to, or the knowledge or consent of, Guarantor, including, without limitation:

a. any amendment, modification or extension of the Agreement or any Guaranteed Obligation;

b. any extension of time for performance, whether in whole or in part, of any Guaranteed Obligation given prior to or after default thereunder;

c. any exchange, surrender or release, in whole or in part, of any security that may be held by Buyer at any time under the Agreement;

d. any other guaranty now or hereafter executed by Guarantor or anyone else;

e. any waiver of or assertion or enforcement or failure or refusal to assert or enforce, in whole or in part, any Guaranteed Obligation, claim, cause of action, right or remedy which Buyer may, at any time, have under the Agreement or with respect to any guaranty or any security which may be held by Buyer at any time for or under the Agreement or with respect to the Seller;

f. .. any act or omission or delay to do any act by Buyer which may in any manner or to any extent vary the risk of Guarantor or which would otherwise operate as a discharge of Guarantor as a matter of law;

g. .. the release of any other guarantor from liability for the performance or observance of any Guaranteed Obligation, whether by operation of law or otherwise;

h. the failure to give Guarantor any notice whatsoever;

i. any right, power or privilege that Buyer may now or hereafter have against any person, entity or collateral.

4. Guarantor’s Other Agreements. Guarantor will not dispose, convey, sell or otherwise transfer, or cause Seller to dispose, convey, sell or otherwise transfer, any material business assets of Seller outside of the ordinary course of Seller’s business without the prior written consent of Buyer, which consent may be withheld for any reason, until receipt of the entire Purchased Amount. Guarantor shall pay to Buyer upon demand all expenses (including, without limitation, reasonable attorneys’ fees and disbursements) of, or incidental to, or relating to the enforcement or protection of Buyer’s rights hereunder or Buyer’s rights under the Agreement. This Guaranty is binding upon Guarantor and Guarantor’s heirs, legal representatives, successors and assigns and shall inure to the benefit of and may be enforced by the successors and assigns of Buyer. If there is more than one Guarantor, the Guaranteed Obligations shall be joint and several. The obligation of Guarantor shall be unconditional and absolute, regardless of the unenforceability of any provision of any agreement between Seller and Buyer, or the existence of any defense, setoff or counterclaim, which Seller may assert. Buyer is hereby authorized, without notice or demand and without affecting the liability of Guarantor hereunder, to at any time renew or extend Seller’s obligations under the Agreement or otherwise modify, amend or change the terms of the Agreement. Guarantor is hereby notified and consents that a negative credit report reflecting on his/her credit record may be submitted to a credit-reporting agency if the Guarantor does not honor the terms of this Guaranty. Guarantor additionally consents to the ordering of a credit report for Guarantor (a) as a condition precedent to Buyer entering into this Agreement, (b) from time to time during the entire Term of the Agreement, and (c) in the event of default pursuant to the Agreement.

5. Waiver; Remedies. No failure on the part of Buyer to exercise, and no delay in exercising, any right under this Guaranty shall operate as a waiver, nor shall any single or partial exercise of any right under this Guaranty preclude any other or further exercise of any other right. Subject to arbitration, the remedies provided in this Guaranty are cumulative and not exclusive of any remedies provided by law or equity. In the event that Seller fails to perform any obligation under the Agreement, Buyer may enforce its rights under this Guaranty without first seeking to obtain performance for such default from Seller or any other guarantor.

6. Acknowledgment of Purchase. Guarantor acknowledges and agrees that the Purchase Price paid by Buyer to Seller in exchange for the Purchased Amount of Future Receipts is a payment for an adequate consideration and is not intended to be treated as a loan or financial accommodation from Buyer to Seller. Guarantor specifically acknowledges that Buyer is not a lender, bank or credit card processor, and that Buyer has not offered any loans to Seller, and Guarantor waives any claims or defenses of usury in any action arising out of this Guaranty. Guarantor acknowledges that the Purchase Price paid to Seller is good and valuable consideration for the sale of the Purchased Amount.

7. Governing Law and Jurisdiction. This Guaranty shall be governed by, and constructed in accordance with, the internal laws of the State of New York without regard to principles of conflicts of law. Except as provided in Section 10 of this Guaranty, Guarantor submits to the nonexclusive jurisdiction and venue of any state or federal court sitting in New York or otherwise having jurisdiction over this Guaranty and Guarantor, for resolution of any claim or action arising, directly or indirectly, out of or related to this Guaranty. The parties stipulate that the venues referenced in this Agreement are convenient. The parties further agree that the mailing by certified or registered mail, return receipt requested, of any process required by any such court will constitute valid and lawful service of process against them, without the necessity for service by any other means provided by statute or rule of court, but without invalidating service performed in accordance with such other provisions. Guarantor acknowledges and agrees that the Purchase Price is being paid and received by Seller in New York, that the Specified Percentage of the Future Receipts are being delivered to Buyer in New York, and that the transaction contemplated in this Guaranty was negotiated, and is being carried out, in New York. Guarantor acknowledges and agrees that it is guaranteeing a New York agreement and transaction. Guarantor acknowledges and agrees that New York has a reasonable relationship to this transaction.

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8. JURY WAIVER. THE PARTIES WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION OR PROCEEDING ON ANY MATTER ARISING IN CONNECTION WITH OR IN ANY WAY RELATED TO THE TRANSACTIONS OF WHICH THIS GUARANTY IS A PART OR ITS ENFORCEMENT, EXCEPT WHERE SUCH WAIVER IS PROHIBITED BY LAW OR DEEMED BY A COURT OF LAW TO BE AGAINST PUBLIC POLICY. THE PARTIES ACKNOWLEDGE THAT EACH MAKES THIS WAIVER KNOWINGLY, WILLINGLY AND VOLUNTARILY AND WITHOUT DURESS, AND ONLY AFTER EXTENSIVE CONSIDERATION OF THE RAMIFICATIONS OF THIS WAIVER WITH THEIR ATTORNEYS.

9. CLASS ACTION WAIVER. THE PARTIES WAIVE ANY RIGHT TO ASSERT ANY CLAIMS AGAINST THE OTHER PARTY AS A REPRESENTATIVE OR MEMBER IN ANY CLASS OR REPRESENTATIVE ACTION, EXCEPT WHERE SUCH WAIVER IS PROHIBITED BY LAW OR DEEMED BY A COURT OF LAW TO BE AGAINST PUBLIC POLICY. TO THE EXTENT EITHER PARTY IS PERMITTED BY LAW OR COURT OF LAW TO PROCEED WITH A CLASS OR REPRESENTATIVE ACTION AGAINST THE OTHER, THE PARTIES AGREE THAT: (I) THE PREVAILING PARTY SHALL NOT BE ENTITLED TO RECOVER ATTORNEYS’ FEES OR COSTS ASSOCIATED WITH PURSUING THE CLASS OR REPRESENTATIVE ACTION (NOT WITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT); AND (II) THE PARTY WHO INITIATES OR PARTICIPATES AS A MEMBER OF THE CLASS WILL NOT SUBMIT A CLAIM OR OTHERWISE PARTICIPATE IN ANY RECOVERY SECURED THROUGH THE CLASS OR REPRESENTATIVE ACTION.

10. ARBITRATION. THE PARTIES ACKNOWLEDGE AND AGREE THAT, PROVIDED THAT NO SUIT, ACTION OR PROCEEDING HAS BEEN ALREADY COMMENCED IN CONNECTION WITH ANY MATTER ARISING OUT OF OR RELATED TO THIS GUARANTY AND/OR THE TRANSACTION CONTEMPLATED BY THE AGREEMENT, EACH BUYER, SELLER AND GUARANTOR SHALL HAVE THE RIGHT TO REQUEST THAT ALL DISPUTES AND CLAIMS ARISING OUT OF OR RELATING TO THE CONSTRUCTION AND/OR INTERPRETATION OF THIS GUARANTY ARE SUBMITTED TO ARBITRATION. THE PARTY SEEKING ARBITRATION SHALL FIRST SEND A WRITTEN NOTICE OF INTENT TO ARBITRATE TO ALL OTHER PARTIES, BY CERTIFIED MAIL. UPON SENDING OF SUCH NOTICE, A PARTY REQUESTING ARBITRATION MAY COMMENCE AN ARBITRATION PROCEEDING WITH THE AMERICAN ARBITRATION ASSOCIATION (“AAA”) OR NATIONAL ARBITRATION FORUM (“NAF”). EACH SELLER, GUARANTOR AND BUYER SHALL PAY THEIR OWN ATTORNEYS’ FEES INCURRED DURING THE ARBITRATION PROCEEDING. THE PARTY INITIATING THE ARBITRATION SHALL PAY ANY ARBITRATION FILING FEE, ADMINISTRATION FEE AND ARBITRATOR’S FEE.

11. SERVICE OF PROCESS. IN ADDITION TO THE METHODS OF SERVICE ALLOWED BY THE NEW YORK STATE CIVIL PRACTICE LAW & RULES (“CPLR”), GUARANTOR HEREBY CONSENTS, IN THE EVENT OF DEFAULT HEREUNDER, TO SERVICE OF PROCESS UPON HIM/HER/THEM BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED. SERVICE HEREUNDER SHALL BE DEEMED COMPLETED UPON GUARANTOR’S ACTUAL RECEIPT OF THE SERVICE OF PROCESS OR UPON BUYER’S RECEIPT OF THE RETURN THEREOF BY THE UNITED STATES POSTAL SERVICE AS REFUSED OR UNDELIVERABLE. GUARANTOR SHALL PROMPTLY NOTIFY BUYER, IN WRITING, OF EACH AND EVERY CHANGE OF ADDRESS TO WHICH SERVICE OF PROCESS SHALL BE MADE. SERVICE OF PROCESS BY BUYER TO THE LAST KNOWN GUARANTOR’S ADDRESS SHALL BE SUFFICIENT. GUARANTOR WILL HAVE THIRTY (30) CALENDAR DAYS FROM THE DATE OF DELIVERY (OR ATTEMPTED DELIVERY) OF THE SERVICE OF PROCESS HEREUNDER IN WHICH TO RESPOND. FURTHERMORE, GUARANTOR EXPRESSLY CONSENTS THAT ANY AND ALL NOTICE(S), DEMAND(S), REQUEST(S) OR OTHER COMMUNICATION(S) UNDER AND PURSUANT TO THIS AGREEMENT SHALL BE DELIVERED IN ACCORDANCE WITH THE PROVISIONS OF THIS AGREEMENT.

12. Severability. If for any reason any court of competent jurisdiction finds any provisions of this Guaranty to be void or voidable, the parties agree that the court may reform such provision(s) to render the provision(s) enforceable ensuring that the restrictions and prohibitions contained in this Guaranty shall be effective to the fullest extent allowed under applicable law.

13. Opportunity for Attorney Review. The Guarantor represents that he/she has carefully read this Guaranty and has had had a reasonable opportunity to, - and to the extent he or she wishes did, - consult with his or her attorney. Guarantor understands the contents of this Guaranty, and signs this Guaranty as his or her free act and deed.

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14. Counterparts and Facsimile Signatures. This Guaranty may be signed in one or more counterparts, each of which shall constitute an original and all of which when taken together shall constitute one and the same agreement. Facsimile or scanned documents shall have the same legal force and effect as an original and shall be treated as an original document for evidentiary purposes. Furthermore, this Guaranty may be signed electronically and a copy this Guaranty with e-signature of the Guarantor shall have the same force and effect as the original.

AGREED AND ACCEPTED:

OWNER/GUARANTOR #1:		OWNER/GUARANTOR #2:
By:	/s/ CORY ROSENBERG	By:
Name:	CORY ROSENBERG	Name:	N/A
SSN:	[***]	SSN:	N/A

OWNER/GUARANTOR #3:
By:
Name:	N/A
SSN:	N/A

CLOUDFUND LLC

By:

Name:

Title:

Page 15 of 15

APPENDIX A

ACH Authorization Form

All information on this form is required unless otherwise noted.

Business Authorized to Debit/Credit Account (the “Buyer”)

Authorized Business Name: CLOUDFUND LLC

Authorized Business Phone Number: 1-800-770-9525

Authorized Business Address: 400 Rella Blvd. Suite 165-101, Suffern, NY 10901

Business Information (the “Seller”):

Business Name: FIRST PERSON INC

Business DBA: FIRST PERSON

Business Phone: [***]

Account Holder Address: 3900 W ALAMEDA AVE, BURBANK, CA 91505

Account Holder’s Bank Information:

Name of Bank: TORREY PINES BK, A DIV OF W ALLIANCE
Bank Routing Number: [***]
Bank Account Number: [***]

Transaction Information:

Amount of Transaction: $2,123.38

Effective Date: 7/19/2023

Rate of collection: Daily

Authorization:

Pursuant to that certain Future Receipts Sale and Purchase Agreement dated 7/19/2023 between Buyer and Seller (the “Agreement”), Seller authorizes Buyer and/or Delta Bridge Funding LLC, its authorized agent, to electronically draft via the Automated Clearing House system up to the amount(s) indicated above from the account(s) identified above (the “Approved Bank Account”) on or after the Effective Date, and agrees to be bound by the ACH Rules as set forth by NACHA (The Electronic Payments Association). The Undersigned hereby certifies that they are duly authorized to execute this form on behalf of the above listed account holder.

NOTE that this authorization is to remain in full force and effect until Buyer and/or Delta Bridge Funding LLC, its authorized agent, receives written notification from Seller of its termination in such time and in such manner to afford Buyer a reasonable opportunity to act on it; provided, however, that revocation of this authorization prior to remittance of the balance under the Agreement may constitute a breach of the Agreement.

FOR THE SELLER
By:	/s/ CORY ROSENBERG
Date: Jul 19, 2023
Name of Account Holder: CORY ROSENBERG
Title of Account Holder: OWNER

EX-10.29

Exhibit 10.29

OFFER SUMMARY FOR MERCHANT LOAN AGREEMENT

Funding Provided	$260,000.00 USD	This is how much funding WebBank will provide.
Estimated Annual Percentage Rate (APR)	23.30%	APR is the estimated cost of your financing expressed as a yearly rate. APR incorporates the amount and timing of the funding you receive, fees you pay, and the periodic payments you make. This calculation assumes your estimated average monthly income through your Shopify Store will be $585,479.30 USD. Since your actual income may vary from our estimate, your effective APR may also vary. APR is not an interest rate. The cost of this financing is based upon fees charged by WebBank rather than interest that accrues over time.
Finance Charge	$23,400.00 USD	This is the dollar cost of your financing. Your finance charge will not increase if you take longer to pay off what you owe.
Estimated Total Payment Amount	$283,400.00 USD	This is the total dollar amount of payments we estimate you will make under the contract.
Estimated Monthly Cost	$60,297.87 USD/month	Although you do not make payments on a monthly basis, this is our calculation of your average monthly cost based upon estimated daily sales.
Estimated Payment	$2,009.93 USD/day
Payment Terms	For each calendar day that you make sales, 17% of the gross dollar amount of your sales will be remitted to WebBank. You'll continue to make remittances until WebBank has received the full agreed amount of your future sales revenue. This financing does not have a fixed payment schedule or a minimum payment amount.
Estimated Term	141 days	This is our estimate of how long it will take to collect amounts due to us under the contract based upon the assumption that you will receive $585,479.30 USD in monthly income through your Shopify store.
Prepayment	If you pay off the financing faster than required, you still must pay all or a portion of the finance charge, up to $23,400.00 USD based upon our estimates.
	If you pay off the financing faster than required, you will not be required to pay additional fees.

Declared by the Borrower:

First Person Inc. Applicable law requires this information to be provided to you to help you make an informed decision. By clicking Accept Terms in the Review and accept terms dialog, you are confirming that you received this information. Signed and agreed by an Authorized Representative of Borrower on 19 July 2023

Merchant Loan Agreement

Total Payment Amount:	Loan Amount:	Cost of Funds:	Repayment rate:
$283,400.00 USD	$260,000.00 USD	$23,400.00 USD	17% of daily sales

This Merchant Loan Agreement (“Agreement”), dated as of the Effective Date (as defined below) is between WebBank, a Utah-chartered industrial bank (“Lender,” “We”, “Us” or “Our”), and First Person Inc. (“Borrower,” “You”, or “Your”). The parties agree to the following terms and conditions, which create a binding legal relationship:

1. Definitions

As used in this Agreement, the following words have the meanings as specified below:

Account	has the meaning set forth in Section 4.2.1.
Arbitration Provision	has the meaning set forth in Section 12.1.
Authorized Representative	means any individual who has been authorized by Borrower to obtain the Loan and has authority to accept this Agreement on behalf of Borrower.
Claims	has the meaning set forth in Section 12.1.
Collateral	has the meaning set forth in Section 5.1.
Confidential Information	means any and all information associated with a party's business and not publicly known, including specific business information, technical processes and formulas, software, customer lists, prospective customer lists, names, addresses and other information regarding customers and prospective customers, product designs, sales, costs (including any relevant processing fees), price lists, and other unpublished financial information, business plans and marketing data, and any other confidential and proprietary information, whether or not marked as confidential or proprietary. Lender's Confidential Information includes all information that Borrower receives relating to Lender, or to the terms of this Loan, that is not known to the general public.
Daily Payment	means the daily payment due to Lender, which shall be an amount equal to the Shopify Account Credits attributed to Borrower's Shopify Services Account for such day multiplied by the Daily Payment Percentage. If Borrower does not have any Shopify Account Credits for any given day, then there shall be no Daily Payment for such day.
Daily Payment Percentage	means 17%
Effective Date	means the date on which we deliver the funding to You.
Event of Default	means the occurrence of an event described in Section 8.
Lender Information	has the meaning set forth in Section 10.15.2.
Loan	means the closed-end business purpose loan made by Lender to Borrower under this Agreement.
Loan Amount	means the total amount of funding provided by Lender to the Borrower pursuant to this Agreement.
Make-up Payments	means deductions from Your Account, as applicable, initiated by Lender or Processor or any Other Processor for the benefit of Lender if any of Lender, Processor or Other Processor, as applicable, was unable to effect a transfer for any payment due hereunder on a particular day because of insufficient funds in Your Account or any other reason.
Manual Payment	has the meaning set forth in Section 4.1.2.
Obligations	means, collectively, Borrower's obligations under this Agreement, including Your obligation to pay the Total Payment Amount, and any other fees or expenses due hereunder (including, without limitation, the reasonable attorney's fees and expenses that arise upon an Event of Default, including after the filing of a bankruptcy or other insolvency proceeding, regardless of whether allowed or allowable in whole or in part as a claim in such bankruptcy or other insolvency proceeding); and Borrower's obligation to pay all other obligations and liabilities owed to Lender under any other document or agreement now or hereafter entered into between Lender and Borrower.
Other Business Account	means, collectively, all bank accounts associated with Shopify Services accounts of Borrower, or Owners, subsidiaries or affiliates of Borrower, and into which funds related to Other Business Credits are deposited.

Other Business Credits	means any funds of a business owned or operated by Borrower or the Owners, subsidiaries or affiliates of Borrower, other than the Shopify Store, including any funds that are credited to one or more Accounts or Shopify Services accounts of Borrower or the Owner, subsidiaries or affiliates of Borrower (other than the Shopify Services Account), regardless of source.
Other Processor	means, collectively and individually, any processor, acquirer, service provider or financial institution taking custody of, holding, possessing, or issuing payment instructions with respect to any Other Business Accounts.
Outstanding Total Payment Amount	means the Total Payment Amount, less the aggregate amounts of Payments received by Lender.
Owner	means any parent company, any individual who, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, owns 25 percent or more of the equity interests of a legal entity, sole proprietor, principal, or member of Borrower.
Payments	means, collectively, the Daily Payments and any Manual Payments.

Processor	means, collectively and individually, any processor, acquirer, service provider or financial institution taking custody of, holding, possessing, or issuing payment instructions with respect to the Shopify Account Credits.
Processor Terms of Service	means the agreement, as it may be amended from time to time, under which Processor or Other Processor (along with other applicable third parties) provides Borrower with payment services.
Register	has the meaning set forth in Section 13.1.
Shopify Account Credits	means all funds from transactions associated with Your Shopify Services Account while You have a Loan with Us, regardless of source, whether those funds are credited through cash, bank checks, credit cards, debit cards, and other types of payment cards, electronic money transfers, such as Automated Clearing House or “ACH” debits and PayPal® money transfers or other forms of payment, excluding only the Loan.

Shopify Admin	means the administrative dashboard associated with Borrower's Shopify Services Account.
Shopify Merchant Business Account or SMBA	means the bank account or other business stored-value account of Borrower set out in the Shopify Admin and into which: (a) the Shopify Account Credits settle (less any transaction or other related fees); and (b) the Loan would be funded.
Shopify Services	means the ecommerce software and services provided to Borrower by Shopify Inc.
Shopify Services Account	means the account provisioned by Shopify Inc. to Borrower in respect of the Shopify Services.
Shopify Store	means First Person Inc..
Shopify Terms of Service	means the agreement, including the Shopify Acceptable Use Policy and any other documents incorporated by reference, as may be amended from time to time, under which Shopify Inc. provides Borrower with the Shopify Services.
Total Payment Amount	means $283,400.00 USD, which is the total amount that Borrower promises to pay Lender as consideration for the Loan. For the avoidance of doubt, Borrower in addition to the Total Payment Amount may also be liable to Lender herein for any costs, fees, or other damages payable upon an Event of Default or any amounts due under Borrower's indemnification obligations under this Agreement

2. Loan Funding

2.1. By clicking on “Submit Application,” You accept this Agreement and are making a request for Lender to complete its review of Your application and make a Loan to You. For this review, We may obtain and review any information on the Borrower, an Owner, or the Authorized Representative that We are permitted by applicable law to obtain and review for this purpose, including: (a) Your Shopify Services Account history; (b) information about any financial accounts Borrower has with third-party institutions, including transaction data with respect to such accounts, which We may obtain directly or through third-party services; and (c) name, address, date of birth, other information that allows Us to verify Your identity, together with any necessary identification documents, collected and verified in accordance with federal anti-money laundering, terrorist financing, and other financial regulations.

2.2. As provided above, You authorize Us to obtain account information from third-party services for the purpose of authenticating or obtaining information about accounts You have with financial institutions. You acknowledge that You may be required to provide such authorization directly to such third parties. If You do not provide the required authorization to the third-party services described above, We may decline to proceed with Your request for funding. We also may decline to proceed with Your request for funding if a financial institution prevents us or our service provider to access Your account, even if you did not instruct the financial institution to do so.

2.3. If Lender approves Your application, in its sole and absolute discretion, Lender shall accept the Agreement and make the Loan to Borrower by making a single disbursement to the SMBA in the amount of $260,000.00 USD on a date determined by Lender. This Agreement will not take effect unless We accept it by funding the Loan. THE LOAN SHALL BE MADE BY LENDER IN ITS SOLE AND ABSOLUTE DISCRETION, AND BORROWER'S ACCEPTANCE OF THIS AGREEMENT SHALL NOT BE CONSTRUED TO OBLIGATE LENDER TO MAKE THE LOAN.

3. Business Purpose; Business Account

3.1. Business Purpose. You agree that You are obtaining this Loan and will use the funds received in connection with this Loan for business purposes only. You will not use this Loan for personal, family, or household purposes. You understand that You are not receiving a consumer loan and that statutory and regulatory protections for consumers will not apply to Your Loan. You also understand that We may, but are not obligated to, verify whether the use of any funds provided conforms to this section. You agree that Your breach of this section will not affect Lender's right to: (a) enforce Your promise to pay all Obligations and amounts owed under this Agreement, regardless of the purpose for which the funds are in fact obtained; or (b) use any remedy legally available to Lender, even if that remedy would not have been available had the funds been provided for consumer purposes.

3.2. Business Account. You agree that the SMBA, any substitute Account, and the Shopify Services Account are each business accounts used solely for business purposes only and that the Account(s) named above are not and will not be used for personal, family, consumer, or household purposes.

4. Repayment of the Loan; Authorizations

4.1. Repayment Terms.

4.1.1.  Borrower promises to pay Lender the Total Payment Amount. In furtherance of this promise, the Borrower promises to make Daily Payments to Lender, starting on the Effective Date until the Total Payment Amount is received by Lender.

4.1.2. In addition to the Daily Payments, You may make one or more additional payments for any amount, up to and including the then-remaining Outstanding Total Payment Amount (“Manual Payments”). Manual Payments may be made only by ACH, or such other method that Lender permits, in its sole discretion. Lender may refuse any attempted Manual Payment or impose limits on the frequency or amounts of Manual Payments at any time. If You successfully make a Manual Payment that is less than the Outstanding Total Payment Amount, the Outstanding Total Payment Amount will be adjusted by the amount of such Manual Payment. If You successfully pay the entire Outstanding Total Payment Amount, You will have no further payment obligations to Us under the Agreement. If the Manual Payment is reversed or disputed, then any credit to the Outstanding Total Payment Amount applied as a result of the Manual Payment will be reversed as of the date it was applied and You will continue to be obligated to repay Your Loan under this Agreement until the Total Payment Amount has been repaid.

4.2. Fund Transfers. To the extent that Processor or Other Processor, if applicable, is not acting on behalf of Lender pursuant to Section 4.2.1 below or as Lender may otherwise determine, Lender may act in accordance with Section 4.2.2 below.

4.2.1. Processing Arrangement. Borrower explicitly authorizes and directs Processor or Other Processor to transfer to Lender from the SMBA, any Other Business Account and/or any other account containing Your Shopify Account Credits or Other Business Credits (collectively, the “Account”): (a) Daily Payments due on business days, will be transferred on a daily basis and Daily Payments due on a non-business day will be transferred on the following business day until the Total Payment Amount has been paid to Lender; and (b) in the event that the Lender declare the entire Outstanding Total Payment Amount (plus any other amounts due under this Agreement) to be immediately due and payable upon an Event of Default, the then Outstanding Total Payment Amount plus the amount of any other outstanding Obligations. Upon an Event of Default, You irrevocably authorize Processor and any Other Processor to deliver all funds on deposit in any Account to Us until We have received the Outstanding Total Payment Amount (plus any other amounts due under this Agreement). You agree that any Processor and Other Processor may rely on any instructions issued by Us with respect to the delivery of funds on deposit in any Account, including, but not limited to, an instruction to deliver to Us all Shopify Account Credits, Other Business Credits, and funds on deposit in any such Accounts to Us until the then Outstanding Total Payment Amount (plus any other amounts due under this Agreement) are delivered to Us after an Event of Default. You agree that You do not have the right to revoke or otherwise seek to override the authorization set forth herein and that this authorization may only be revoked by Us. If there has been no Event of Default, no Processor or Other Processor will deliver to Us any particular payment owed hereunder if such payment has already been delivered to Us by Processor or Other Processor, as applicable, or We have taken such amount via Section 4.2.2 below.

4.2.2. Lender Electronic Fund Transfer Authorization. You irrevocably authorize Us (which includes, for the purposes of this authorization, Our agents, service providers, successors, and assigns) to initiate an electronic fund transfer via the ACH network from any Account in the amount of any Payment due or other amount due under this Agreement. You authorize Us, to initiate a single ACH for the combined amounts of different Payments owed hereunder (e.g., initiate a single ACH on Monday for Daily Payments that were created on Friday, Saturday, and Sunday) or to initiate individual ACHs for any such Payments. We will not initiate an ACH for any Payments delivered to Us via Section 4.2.1. After the occurrence of an Event of Default, You irrevocably authorize Us to initiate an ACH or ACHs from any Account until We have received the Outstanding Total Payment Amount (plus any other Obligations or amounts due under this Agreement). You also authorize Us to initiate ACH credits or debits to any Account to correct any errors We may make in processing a payment. In the event that an ACH is returned unpaid, You authorize Us to re-initiate the ACH until it is paid. You agree that You will not cancel this authorization or instruct any depository holding Shopify Account Credits (or, after an Event of Default, any other depository holding Other Business Credits) to reject Our ACHs. You promise that the Account is used for business purposes and not for personal, family, consumer or household purposes and that You are an authorized signor on the Accounts. You agree to be bound by the rules and regulations of the National Automated Clearing House Association (“NACHA”).

4.3. Make-up Payments; Transfer Size/Timing. If any of Lender, Processor or Other Processor is unable to effect a transfer or debit for any payment due hereunder, You authorize and direct Lender, Processor or Other Processor, as applicable, on any subsequent day to deduct any available funds from Your Account, as applicable, to make up for the failed transfer or debit until the full amount of the failed transfer or debit has been paid in full. You authorize and direct any of Lender, Processor or Other Processor to initiate transfers or debits for Make-up Payments in combination with any other payments due or as separate transfers or debits. You agree that any transfer or debit may be split into multiple, smaller transfers or debits and/or initiated the moment funds are credited to the Account, as applicable.

5. Security Interest; Collateral

5.1. As security for all Obligations, Borrower hereby grants, assigns, and pledges to Lender a continuing and unconditional lien on and security interest in and to the following, whether now owned, or hereafter acquired, or arising and wherever located (collectively, the Collateral): (a) all Accounts and all balances in such Accounts; (b) all general intangibles (as that term is defined in Article 9 of the Uniform Commercial Code), all payment intangibles, all rights to payment, all accounts receivable (including the Other Business Credits), and all other rights (whether arising under common law, statutes, regulations, or otherwise) of Borrower in each case arising with respect to or in connection with the Accounts; (c) all money, cash equivalents, and other similar assets of Borrower that now or hereafter come into the possession, custody, or control of Lender, Processor or Other Processor (or any of their respective agents or designees); and (d) all of the proceeds (as such term is defined in the applicable UCC) and products, whether tangible or intangible, of any of the foregoing.

5.2. In furtherance of the intentions of the parties hereto, this Agreement shall constitute written notice to all interested parties of Lender's security interest in the Collateral. Borrower acknowledges and agrees that so long as any of the Obligations remain outstanding, all Accounts and any funds on deposit from time to time therein shall be under the sole dominion and control of Lender. Neither Borrower nor any other person or entity, acting by, through, or under Borrower, shall have any control over the use of, or any right to withdraw any amount from such Accounts without the consent of Lender, provided that Lender shall be deemed to have granted such consent until such time as the occurrence of an Event of Default. In addition, Lender shall have the exclusive rights: (a) to require that any bank or securities intermediary at which any Collateral may be located acknowledge Lender's security interest in and control of the Collateral for purposes of perfecting Lender's security interest therein; and (b) to direct and provide instructions to such bank or securities intermediary as to the disposition of the Collateral to fulfill Borrower's Obligations herein. Borrower agrees that Borrower shall execute and deliver any document requested by Lender to perfect and continue its security interest in the Collateral, including, but not limited to, any account control agreements and take any other action to perfect and maintain Lender's security interest. Borrower further agrees not to create, grant, or permit any other lien, pledge, or security interest to exist on any of the Collateral, except for the security interest granted to the Lender under this Agreement.

5.3. You authorize Us to file one or more UCC-1 financing statements to memorialize and perfect on the security interest granted to Us hereunder. Any financing statements may include notice that You have given a negative pledge of the Collateral.

6. Representations and Warranties

Borrower represents and warrants that, as of the date of this Agreement and during the term of this Agreement:

6.1. Your form of organization is correctly set forth in the Shopify Admin. Unless You are an individual or sole proprietorship, You were duly incorporated or formed, are validly existing, and are in good standing under the laws of the state where your business is registered. You further represent and warrant that: (a) You are duly qualified, licensed, and in good standing in every state in which You are doing business; (b) Your principal office and the location where You keep Your records concerning Your accounts, contract rights, and other property, are accurately reflected in Your Shopify Admin; (c) Your exact legal name is accurately set forth in the Your Shopify Admin and in this Agreement; (d) You have the requisite power and authority, and the legal right to own, lease, and operate Your properties and assets and to conduct Your business as it is now being conducted and to enter into this Agreement; (e) You are complying and will comply with all laws, statutes, regulations, and ordinances pertaining to the conduct of Your business; (f) all of Your organization papers and all amendments thereto have been duly filed and are in proper order, and any capital stock, member interest, or other equity issued by You and outstanding was and is properly issued; and (g) all Your books and records are accurate and up to date and will be so maintained.

6.2. No consent or authorization of, filing with, notice to, or other act by, or in respect of, any governmental authority or any other individual or entity is required in order for You to execute, deliver, or perform any of Your obligations under this Agreement. The execution, delivery, and performance of the Agreement and any other document executed in connection therewith are within Your powers, have been duly authorized, and are not in contravention of law or the terms of Your charter, by-laws, or other organization papers, if any, or of any indenture, contract, agreement, or undertaking to which You are a party. You are not subject to any charter, corporate, or other legal restriction, or any judgment, award, decree, order, governmental rule, regulation, or contractual restriction that could have a material adverse effect on Your financial condition, business or prospects. You are in compliance with Your organization documents and by-laws, if any, and all contractual requirements by which You may be bound and where the failure to comply might materially adversely affect Your financial condition, business or prospects, or Your ability to perform Your obligations under this Agreement.

6.3. There is no action, suit, proceeding, or investigation pending or, to Your knowledge, threatened against or affecting You, Your Shopify Store, or any of Your assets that, if determined adversely, could have a material adverse effect on Your financial condition, business or prospects or Your ability to perform Your obligations under this Agreement.

6.4. This Agreement is Borrower's valid, legal, and binding obligation, enforceable against Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditors' rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

6.5. You have not sold nor are subject to any other contract or agreement that provides for the sale, assignment, or any other transfer of any interest in the Collateral as of the date of this Agreement. You have good, complete, and marketable title to the Collateral, free and clear of any claims, charges, liens, restrictions, encumbrances, or security interests of any nature whatsoever, other than in favor of Lender. The Shopify Account Credits are and will be the proceeds of bona fide transactions with Borrower's customers.

6.6. Borrower does not presently intend to cease to operate the business, either permanently or temporarily. Borrower is solvent and does not contemplate bankruptcy or insolvency proceedings. Borrower has not filed any petition for bankruptcy protection and there has been no involuntary petition threatened or filed against Borrower. Borrower does not anticipate the voluntary or involuntary filing of any such bankruptcy petition.

6.7. All federal, state, local, and foreign tax returns and tax reports, and all taxes due and payable that are required to be filed by Borrower have been or will be filed and paid, on a timely basis (including any extensions). All such returns and reports are and will be true, correct, and complete. Borrower has no material liabilities and, to the best of its knowledge, knows of no material contingent liabilities, except current liabilities incurred in the ordinary course of business.

6.8. You are entering into this Agreement for business purposes and not as a consumer or for personal, family, consumer, or household purposes. Any credit extended under this Agreement is solely for business purposes and not for personal, family, consumer, or household use.

6.9. Any attempt to receive the Loan or pay Your Daily Payment, Make-Up Payment, Manual Payment, or Outstanding Total Payment Amount through any account other than the SMBA will entitle Lender, Processor, and any Other Processor to consider any such account as part of Your SMBA for purposes of this Agreement.

6.10. Each Authorized Representative is at least eighteen (18) years of age and has the legal capacity and all necessary authority to bind You to this Agreement.

7. Covenants

Borrower agrees to comply with the covenants in this Agreement and to be bound by the terms and conditions of this Agreement. In this regard, Borrower irrevocably agrees that, during the term of this Agreement, Borrower shall:

7.1. cause the SMBA and any substitute Accounts to remain in good standing;

7.2. comply with the Processor or Other Processor Terms of Service in connection with all payments Borrower accepts and processes during the term of this Agreement;

7.3. provide account statements for any account into which Shopify Account Credits are deposited or transferred, any bank account reflected in Borrower's Shopify Admin, and, on request of the Lender, for any account opened at any time during the performance of this Agreement (including, but not limited to, any other bank accounts associated with other Shopify Services account(s) of Borrower), no later than five (5) business days after Our request. You agree that if You own or operate any other business other than the Shopify Store, You will keep separate accounting records for each business;

7.4. not take any action that would discourage those making payments to Borrower from paying via a method that settles into the SMBA or permit any event to occur that could have an adverse effect on the making of such payments into the SMBA;

7.5. not withdraw funds from the SMBA prior to Lender receiving the Daily Payment for such day;

7.6. not, without Our prior written consent: (a) change Your name (including any d/b/a name), place of business, chief executive office (if applicable), or organizational identification number, if any; (b) change Your type of organization, jurisdiction of organization, or other legal structure; (c) materially change the goods or services sold by the Shopify Store; (d) materially change the nature of the Shopify Store; (e) change the methods by which You accept or process payments; or (f) close the Shopify Store or cease operations (either permanently or temporarily);

7.7. (a) preserve, renew, and maintain, in full force and effect, Your corporate or organizational existence; (b) take all reasonable action to maintain all rights, privilege,s and franchises necessary or desirable for the normal conduct of Your business; and (c) remain duly qualified, licensed, and in good standing in Your state of organization (if any) and every other state in which You are doing business;

7.8. not create, incur, or assume any indebtedness or borrow money, except for the Loan and trade debt incurred in the ordinary course of Borrower's business;

7.9. not create or permit any lien or other encumbrance to be placed on the Collateral, other than in favor of Lender;

7.10. not permit any event to occur that could cause diversion of: (a) any amounts payable to or from any Account; or (b) the Shopify Account Credits from Lender;

7.11. maintain all of Your contact information current, including primary electronic mail, Your phone number, and physical address, and notify Lender promptly of any change to Your phone number or physical, electronic mail and/or website address(es);

7.12. cooperate fully with Lender to take all necessary actions required to effectuate Borrower's obligations hereunder, including, but not limited to, signing any and all documents Lender deems necessary or appropriate;

7.13. only use the Loan, the SMBA, any substitute Account, and the Shopify Services Account for commercial or business purposes, in the ordinary course of business, and not for personal, family, consumer, or household purposes;

7.14. not, without Our prior written consent, merge or consolidate with or into any other business entity or enter into any joint venture or partnership with any person, firm, or corporation;

7.15. be solely responsible for the payment of any fees and charges imposed on Lender with respect to the Accounts or any processing agreement with the Processor or Other Processor;

7.16. provide promptly to Lender, from time to time at Lender's request, purchase transaction files maintained by Borrower and any other information related to past purchases, Shopify Account Credits, or the transactions contemplated by this Agreement, whether created for the purpose of audit or otherwise, and such information about Your financial condition and operations as We may from time to time reasonably request;

7.17. maintain on Your property insurance from responsible and reputable companies in such amounts and covering such risks as is prudent and is usually carried by companies engaged in businesses similar to that of Borrower; Borrower shall furnish Lender, on request, with certified copies of insurance policies or other appropriate evidence of compliance with the foregoing covenant;

7.18. promptly provide notice to Us in writing upon becoming aware of any Event of Default, the occurrence or existence of an event which, with the passage of time or the giving of notice or both, would constitute an Event of Default, or any material adverse change in Your cash flow, business operation, or business ownership;

7.19. provide to Lender, upon request, documentation confirming the authority of any Authorized Representative;

7.20. settle or “batch out” Your receipts with Processor or Other Processor on a daily basis; and

7.21. not make any changes to the SMBA, any other Account, or the Shopify Services Account that would adversely affect Lender.

8. Events of Default

In addition to the events of default identified elsewhere in this Agreement, You will be in default under this Agreement and an “Event of Default” will be deemed to have occurred if:

8.1. you fail to pay any of the Total Payment Amount when due;

8.2. during the term of the Loan, Processor, Other Processor, or Lender initiates transfers for Make-up Payments in connection with more than three separate Daily Payments;

8.3. you breach any of the representations or warranties made in this Agreement or any other term of this Agreement;

8.4. you fail to perform or complete any covenant in this Agreement;

8.5. you make a misrepresentation or omission in connection with your application for a Loan or the servicing of your Loan;

8.6. you seek to close or terminate Your Shopify Services Account, SMBA, or any substitute Account while there is an Outstanding Total Payment Amount;

8.7. you become insolvent, file for bankruptcy protection, dissolve, die, or become incapacitated;

8.8. you attempt to terminate this Agreement while there is an Outstanding Total Payment Amount;

8.9. you authorize any third party, without Our prior written consent, to divert payments away from Your SMBA or substitute Account;

8.10. you sell, transfer, or otherwise encumber or attempt to sell, transfer, or otherwise encumber Collateral without Our prior written consent;

8.11. you sell all or substantially all of Your assets used in the operation of Your business to a third party without Our prior written consent;

8.12. you become a party to or the subject of any agreement, pursuant to or as a result of, which any person or group of persons acquires, controls, directly or indirectly, Your business, without Our prior written consent;

8.13. you materially change the operation of Your business (including, without limitation, shutting down or ceasing operations or changing industry, concept, size, etc.) without Our prior written consent;

8.14. you stop accepting a particular method of payment while You remain open for business;

8.15. you change Your legal name or jurisdiction of formation or carry-on business through a different business entity without Our prior written consent;

8.16. a default or other similar event occurs under any other loan agreement or merchant cash advance agreement You have with Lender or an affiliate of Lender;

8.17. you breach any other agreement you have with Us, the Processor, or Other Processor, including, but not limited to, the Processor Terms of Service, the Shopify Terms of Service, and the Shopify Acceptable Use Policy;

8.18. you close or suspend your Shopify Services Account;

8.19. you decide, for whatever reason, to cease doing business; or

8.20. you take or fail to take an action that hinders Our taking delivery of the Daily Payments or Make-Up Payments.

9. Consequences of Event of Default

Upon an Event of Default, Lender in its sole and absolute discretion may, in addition to exercising all rights and remedies available under applicable law, and as otherwise set forth in this Agreement, and without waiver of any such rights and remedies:

9.1. declare the Outstanding Total Payment Amount and any other Obligations or liabilities of Borrower to Lender to be forthwith due and payable immediately. At Our option (subject to any applicable law to the contrary), You agree to pay Lender any and all damages Lender incurs, including, without limitation, reasonable attorney's fees and court costs if permitted by applicable law, in any way relating to the Loan, this Agreement, any Account, any substitute account, or an Event of Default, and agree to hold Lender harmless from any liability it may have to any other person(s) as a result of the Event of Default, the Loan or any Obligation.

9.2. take any of the following actions, or direct Processor or any Other Processor to take any or all of the following actions on Lender's behalf, in order to enforce Lender's rights to collect from Borrower any amount due and owing as a result of such Event of Default:

9.2.1. place limitations on and/or deduct funds owed to Lender from any Account; and/or

9.2.2. offset any amounts You owe under this Agreement against amounts to which You may be entitled under any agreement You have entered into with Us or an affiliate; and/or

9.2.3. freeze, suspend, halt, terminate, or otherwise cease in any manner, any services We or an affiliate of Ours may provide You or Your affiliates.

10. Miscellaneous

10.1. Modifications; Amendments. No modification, amendment, waiver, or consent of any provision of this Agreement will be effective unless it is in writing and signed by the Lender

10.2. Assignment. We may assign, transfer, or sell Our right to receive the Total Payment Amount or any other rights hereunder or delegate Our duties hereunder, either in whole or in part, without prior notice to You, and without Your consent. Borrower may not assign or transfer its rights and obligations hereunder, either in whole or in part, without prior written consent from Us, which consent We may withhold in Our sole and absolute discretion.

10.3. Governing Law/Forum. Except as set forth in the Arbitration Provision: (a) this Agreement, any transactions it contemplates, the construction of the terms of the Agreement, and all transactions, and the interpretation, performance, and enforcement of the rights and duties of You and Us, will be governed by and construed in accordance with federal law and, to the extent state law applies, the laws of the State of Utah without regard to conflicts of law principles; and (b) the parties agree that federal law and, to the extent state law applies, the laws of Utah govern the entire relationship between the parties, including, without limitation, all issues or claims arising out of, relating to, in connection with, or incident to this Agreement and any transaction it contemplates, whether such claims are based in tort or contract, or arise under statute or in equity. The parties acknowledge and agree that this Agreement is made and performed in Utah.

10.4. Survival. Except as set forth in the Arbitration provisions, all provisions of this Agreement, including Section 12, that by their nature are intended to survive Your performance of all obligations hereunder will survive and remain in full force and effect.

10.5. Waiver; Remedies. We reserve the right, at any time and in Our sole and absolute discretion, not to exercise any of Our other rights under this Agreement and, should We do so, We will not waive Our right to exercise the right as set forth in this Agreement in the future. Without limiting the foregoing, We may, at Our option, accept partial payments without notifying You and without releasing You from Your obligation to pay all amounts owing under this Agreement in full or to otherwise perform the terms and conditions of this Agreement. You understand and agree that Your obligation to pay all amounts owing under this Agreement and otherwise to perform the terms and conditions of this Agreement are absolute and unconditional. No failure on Our part to exercise, and no delay in exercising, any right under this Agreement constitutes a waiver of such right, nor will any single or partial exercise of any right under this Agreement preclude any other or further exercise of that right or the exercise of any other right. The remedies provided in this Agreement are cumulative and not exclusive of any remedies provided by law or equity.

10.6. Severability. In case any of the provisions in this Agreement are found to be invalid, illegal, or unenforceable in any respect by a court of competent jurisdiction, the validity, legality, and enforceability of any other provision contained herein will not in any way be affected or impaired, and that court will have the power to rewrite that provision to the maximum extent enforceable and the remainder of this Agreement will continue in full force and effect.

10.7. Counterparts; Electronic Signatures. This Agreement may be signed in one or more counterparts, each of which constitutes an original and all of which when taken together constitute the same agreement. Electronic signatures will be deemed manual signatures, and each party to this Agreement may rely on an electronic signature as an original for purposes of enforcing this Agreement. For the avoidance of doubt, Borrower's acceptance of the Agreement by clicking “Submit Application” will be deemed to constitute such party's electronic signature and effective as a manual signature of each such party.

10.8. Entire Agreement. This Agreement constitutes the entire agreement between Borrower and Lender relating to this Loan and supersedes any other prior or contemporaneous agreement between You and Us relating to this Loan.

10.9. Inspection of Place of Borrower. We or Our designated representatives and agents have the right during Your normal business hours and at other reasonable times to examine Your business where located, including the interior and exterior. Any such examination may include, among other things, whether You have a place of business that is separate from any personal residence, are open for business, have sufficient inventory to conduct Your business, and have one or more point-of-sale terminals to process payment transactions. When performing an examination, We or Our designated representatives and agents may photograph the interior and exterior of any of Your places of business, including any signage and may photograph any principals.

10.10. Publicity. You and each Owner authorize Us to use Your name in a listing of clients and in advertising and marketing materials.

10.11. Binding Effect. This Agreement is binding upon and inures to the benefit of You and Us and Our respective successors and permitted assigns.

10.12. Maximum Interest Rate. Regardless of any provisions contained in this Agreement or in any of the other Loan documents, Lender shall never be deemed to have contracted for or be entitled to receive, collect, or apply as interest (whether explicit or deemed to be interest by judicial determination or operation of law) on the Loan, any amount in excess of the maximum rate of interest permitted to be charged by applicable law, and, in the event Lender receives, collects, or applies as interest any such excess, such amount that would be excessive interest shall be deemed to be a partial prepayment of principal and treated hereunder as such, and if the principal balance of the Loan is paid in full, any remaining excess shall forthwith be paid to Borrower. In determining whether or not the interest paid or payable under any specific contingency exceeds the highest lawful rate, Borrower and Lender shall, to the maximum extent permitted under applicable law: (a) characterize any non-principal payment (other than payments that are expressly designated as interest payments hereunder) as an expense, fee, or premium, rather than as interest; (b) exclude voluntary prepayments and the effect thereof; and (c) spread the total amount of interest throughout the entire contemplated term of the Loan so that the interest rate is uniform throughout such term.

10.13. Headings. Section headings are for convenience of reference only and shall in no way affect the interpretation of this Agreement.

10.14. Information Sharing between Lender, Processor, and Other Processor. You authorize Lender to share with its affiliates, Processor, and Other Processor any information in Lender's records related to this Loan, including information about Your payment history. You also authorize Lender's Processor or Other Processor to share with Lender any information in their records related to Your Shopify Services Account or any Account and any services Borrower obtains pursuant to the Processor or Other Processor. You also authorize Other Processor to share with Lender any information in its records related to any Other Business Credits, any Shopify Services account, and any Other Business Account. You agree that there is no limitation on the purpose for which Lender may share such information with its affiliates, Processor, or Other Processor or for which Lender's affiliates, Processor, or Other Processor may share such information with Lender. You further agree that Lender, Processor, and Other Processor may use such information in their sole and absolute discretion.

10.15. Disclosure.

10.15.1. Neither party will disclose the other's Confidential Information to any third parties, except that Lender may make any disclosures: (a) contemplated by this Agreement; (b) that are reasonably necessary for consummation of this Agreement; (c) to its affiliates, members, managers, investors, prospective investors, financing sources, and equity holders and any external accountants, agents, attorneys, and other advisors; (d) to Processor or Other Processor; (e) as required or requested by any regulatory authority or examiner; (f) any insurance association; (g) as required by any applicable law, court decree, subpoena, or legal or administrative order or process; (h) in connection with the exercise of any remedy hereunder; or (i) as agreed by Borrower.

10.15.2. Borrower understands and agrees that the terms and conditions of the products and services offered hereunder, including this Agreement and any other agreement related hereto (“Lender Information”), are proprietary and Confidential Information of Lender. Accordingly, unless disclosure is required by law or court order, Borrower shall not disclose any Lender Information to any other person other than an attorney, accountant or financial advisor who needs to know such information for purposes of advising Borrower; provided such person uses such Lender Information solely for the purposes of advising Borrower and first agrees not to disclose any Lender Information to any person.

10.16. Credit Reports. Borrower acknowledges that We may report information about Borrower's obligation under this Agreement to credit bureaus. A default under this Agreement may be reflected in Borrower's credit report.

10.17. Right To Cancel. Within three (3) business days of the Effective Date, You may cancel this Agreement by notifying Us in writing and returning to Lender the full amount advanced by Lender to Your SMBA on the Effective Date. Such notice and return of the amount of the Loan must be received by Us prior to midnight on the third business day after the Effective Date. Instructions for the return of the amount of the Loan will be provided by Lender upon receipt of notice of cancellation.

10.18. Processor Waiver. You waive and release any and all claims You may have against Processor or Other Processor that are in any way related to its respective duties as a processor.

10.19. Indemnity; Limitation of Liability. YOU, YOUR SUCCESSORS AND PERMITTED ASSIGNEES AND AFFILIATES, AGREE TO FOREVER PROTECT, INDEMNIFY, AND “HOLD HARMLESS” US, PROCESSOR, OTHER PROCESSOR(S), AND THEIR AND OUR RESPECTIVE SUCCESSORS, ASSIGNS, OFFICERS, DIRECTORS, EMPLOYEES, MANAGERS, MEMBERS, AGENTS, AND AFFILIATES, AGAINST ALL DAMAGES, EXPENSES, CLAIMS, SUITS, DEMANDS, COSTS, ATTORNEYS' FEES OR LOSSES, ARISING OUT OF OR ALLEGED TO HAVE ARISEN OUT OF OR IN CONNECTION WITH YOUR CONDUCT OF YOUR BUSINESS, YOUR PERFORMANCE, OR NON-PERFORMANCE UNDER THIS AGREEMENT, THE DELIVERING OF ANY PAYMENTS TO US AS DESCRIBED IN THIS AGREEMENT AND THE EXERCISE OF ANY OF OUR RIGHTS AS DESCRIBED IN THIS AGREEMENT. IN NO EVENT WILL WE, OUR AFFILIATES, PROCESSOR, OR OTHER PROCESSOR(S) BE LIABLE TO YOU OR TO ANY THIRD PARTY FOR ANY LOSS OF USE, REVENUE OR PROFIT OR LOSS OF DATA OR FOR ANY DIRECT, CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, OR PUNITIVE DAMAGES, WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, REGARDLESS OF WHETHER SUCH DAMAGE WAS FORESEEABLE AND WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

10.20. Power of Attorney. You grant to Us an irrevocable power of attorney, coupled with an interest, and appoint Us and Our designees as Your attorney-in-fact to take any and all actions necessary or appropriate to direct new or additional processors to make payment to Us as contemplated by this Agreement.

11. Communications Between You and Lender.

11.1. Notices. All notices, requests, consents, demands, and other communications hereunder must be in writing and delivered by electronic mail or certified mail, return receipt requested, to the respective parties to this Agreement, in the case of the Borrower, at the Borrower's addresses set forth in the Shopify Admin, and in the case of the Lender to 100 Shockoe Slip, 2nd Floor, Richmond, VA 23219 or capital-support@shopify.com.

11.2. Consent to Electronic Disclosures. You consent to receive electronically any disclosure, notice, or communication that is required by law to be provided in writing at any email address you provide to Us. You agree to maintain up to date hardware and software that is capable of receiving and retaining such materials, and You also agree to promptly notify Us of any change to your email address so that you can continue to receive such materials from Us.

11.3. Telephone, Text, and Email Servicing Communications. We may use automated telephone dialling, text messaging systems, and electronic mail to provide messages to You about the Loan. The telephone messages may be played by a machine automatically when the telephone is answered, whether answered by You or another party. These messages may also be recorded by Your answering machine or voicemail. You give Us permission to call or send a text message to any telephone number that You or Your Authorized Representative have given Us and to play pre-recorded or artificial messages or send text messages with information about this Agreement, the SMBA or Your Loan over the phone. You also give Us permission to communicate such information to You via electronic mail. You agree that We will not be liable to You for any such calls or electronic communications, even if information is communicated to an unintended recipient. You understand that, when You receive such calls or electronic communications, You may incur a charge from the company that provides You with telecommunications, wireless, and/or Internet services. You agree that We have no liability for such charges. You agree to immediately notify Us if You change telephone numbers or are otherwise no longer the subscriber or customary user of a telephone number You have previously provided to Us.

11.4. Monitoring and Recording. We, Processor, or Other Processor may monitor, tape, or electronically record Our telephone calls with You.

12. Arbitration Provision with Class Action Waiver.

12.1. You and We (which for the purposes of this Section 12 includes Shopify Inc. and Shopify Capital Inc.) agree to resolve any and all claims and disputes relating in any way to this Agreement or Our dealings with You (“Claims”), except for Claims concerning the validity, scope, or enforceability of this Section 12 (“Arbitration Provision”), through BINDING INDIVIDUAL ARBITRATION. Notwithstanding the foregoing, You or We may bring an individualized action in small claims court for Claims within the jurisdiction of that court. This Arbitration Provision is made with respect to transactions involving interstate commerce and shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16 (the “FAA”), and not by state law.

12.2. Individual Arbitration. By entering into this Arbitration Provision, neither You nor We will be able to have the dispute settled by a court or jury trial or to participate in a class action, collective action, class arbitration, or other representative action or proceeding. Other rights that You and We would have if You or We went to court will not be available or will be more limited in arbitration, including the right to appeal. You and We each understand that by agreeing to resolve any dispute through individual arbitration, WE ARE EACH WAIVING THE RIGHT TO A COURT OR JURY TRIAL. YOU AND WE AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN YOUR OR OUR INDIVIDUAL CAPACITY AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING. The arbitrator(s) may not consolidate more than one party's claims and may not otherwise preside over any form of a representative or class proceeding. Further, the arbitrator may award declaratory or injunctive relief only in favor of the individual party seeking relief and only to the extent necessary to provide relief warranted by that party's individual claim. If applicable law precludes enforcement of any of this paragraph's limitations as to a particular claim for relief, then that claim (and only that claim) must be severed from arbitration and may be brought in court. If any portion of this Arbitration Provision other than this paragraph's limitations is deemed invalid or unenforceable, it shall not invalidate the remaining portions of this Arbitration Provision.

12.3. Arbitration Rules. Arbitration of any dispute under this Arbitration Provision shall be administered by JAMS pursuant to the applicable rules of JAMS in effect at the time the arbitration is initiated. You may contact JAMS to obtain information about arbitration, by calling 800-352-5267 or visiting www.jamsadr.com. If JAMS is unable or unwilling to administer the arbitration of a dispute, then a dispute may be referred to any other arbitration organization You and We agree upon or to an arbitration organization or arbitrator appointed pursuant to section 5 of the FAA. Arbitrations shall be conducted before a single arbitrator. Any in-person arbitration shall take place in the federal judicial district in which Your physical address is located unless otherwise agreed by You and Us in writing. If Your claim is for $10,000 or less, We agree that You may choose whether the arbitration will be conducted solely on the basis of documents submitted to the arbitrator, through a telephonic hearing, or by an in-person hearing as established by the JAMS rules. If Your claim exceeds $10,000, the right to a hearing will be determined by the JAMS rules.

12.4. Regardless of the manner in which the arbitration is conducted, the arbitrator shall issue a reasoned written decision sufficient to explain the essential findings and conclusions on which the award is based. The arbitrator shall apply applicable substantive law consistent with the FAA and applicable statutes of limitations and shall be authorized to award any relief that would have been available in court, provided that the arbitrator's authority to resolve claims and make awards is limited to You and Us alone, except as otherwise specifically stated herein. The decision by the arbitrator shall be final and binding. You and We agree that this Arbitration Provision extends to any other parties involved in any Claims, including but not limited to Your and Our employees, affiliated companies, and vendors. In the event of any conflict between this Arbitration Provision and the JAMS arbitration rules or the rules of any other arbitration organization or arbitrator, this Arbitration Provision shall govern.

12.5. Arbitration Fees and Costs. Except as otherwise provided for herein, We will pay all JAMS filing, administration, and arbitrator fees. If, however, the arbitrator finds that either the substance of Your claim or the relief sought in Your arbitration demand is frivolous or brought for an improper purpose (as measured by the standards set forth in Federal Rule of Civil Procedure 11(b)), then the payment of such fees will be governed by the JAMS rules. In such case, You agree to reimburse Us for all monies previously disbursed by Us that are otherwise Your obligation to pay under the JAMS rules. In addition, if You initiate an arbitration in which You seek more than $75,000 in damages, the payment of these fees will be governed by the JAMS rules.

12.6. Arbitration Provision Is Optional. YOU HAVE THE RIGHT TO REJECT THIS ARBITRATION PROVISION, BUT YOU MUST EXERCISE THIS RIGHT PROMPTLY. If You do not wish to be bound by this agreement to arbitrate, You must notify Us in writing within sixty (60) days after the date of this Agreement. You must send Your request to: 100 Shockoe Slip, 2nd Floor Richmond, VA 23219, or to contract_notices@shopify.com. The request must include Your full name, address, Shopify Store name, d/b/a name (if applicable), and the statement “I reject the Arbitration Provision contained in my Shopify Loan Agreement.” If You exercise Your right under this Section 12.6 to reject arbitration, the other terms of this Agreement shall remain in full force and effect as if You had not rejected arbitration. Opting out of this Arbitration Provision has no effect on any other or future arbitration agreements that You may have with Us.

13. Register.

13.1. You agree that Lender, on Your behalf, may maintain a register in order to record the amount of Your Loan and the current or future owner of Your Loan (including any assignee, participant or transferee, if any, who becomes the subsequent owner of any portion of Your Loan) (the “Register”). The parties hereto agree that the entity whose name is recorded in the Register as the current owner of Your Loan is treated as the owner of Your Loan. The Register must be updated for any transfer of ownership of Your Loan to occur.

13.2. By clicking on “Submit Application” You are signing this Agreement electronically. You agree that your electronic signature is the equivalent of a physical signature. You further agree, on behalf of Your business First Person Inc., as Borrower, to the terms of this Agreement, which includes an arbitration and waiver of class action provision, and

You agree that You are an Authorized Representative of Borrower and acknowledge that You received a copy of this Agreement.

EX-10.30

Exhibit 10.30

CURVE CAPITAL LLC

5401 Collins Avenue CU-9A

Miami Beach, FL 33140 (786) 490-7809

reconciliations@curvecapitalllc.com

STANDARD MERCHANT CASH ADVANCE AGREEMENT

This is an Agreement dated 8/31/2023 by and between CURVE CAPITAL LLC (“CURVE”), inclusive of its successors and assigns, and each merchant listed below (“Merchant”).

Merchant’s Legal Name: FIRST PERSON INC

D/B/A/: FIRST PERSON Fed ID #: [***]

Type of Entity: CORPORATION

Business Address: 611 N BRAND BLVD STE 1300	City: GLENDALE	State: CA	Zip: 91203
Contact Address: 611 N BRAND BLVD STE 1300	City: GLENDALE	State: CA	Zip: 91203

E-mail Address: Phone Number:

Purchase Price This is the amount being paid to Merchant(s) for the Receivables Purchased Amount (defined below). This amount may be paid in installments if there is an Addendum stating that it will be paid in installments.	$	225,000.00
Receivables Purchased Amount This is the amount of Receivables (defined in Section 1 below) being sold. This amount may be sold in installments if there is an Addendum stating that it will be sold in installments.	$	306,000.00
Specified Percentage This is the percentage of Receivables (defined below) to be delivered until the Receivables Purchased Amount is paid in full.		6.12	%
Net Funds Provided This is the net amount being paid to or on behalf of Merchant(s) after deduction of applicable fees listed in Section 2 below. This amount may be paid in installments if there is an Addendum stating that it will be paid in installments.	$	218,250.00
Net Amount to Be Received Directly by Merchant(s) This is the net amount being received directly by Merchant(s) after deduction of applicable fees listed in Section 2 below and the payment of any part of the Purchase Price elsewhere pursuant to any Addendum to this Agreement. This amount may be paid in installments if there is an Addendum stating that it will be paid in installments. If any deduction is being made from the Purchase Price to pay off another obligation by Merchant(s), then the Net Amount to be Received Directly by Merchant(s) is subject to change based on any change in the amount of the other obligation(s) to be paid off.	$	218,250.00
Initial Estimated Payment This is the initial amount of periodic payments collected from Merchant(s) as an approximation of no more than the Specified Percentage of the Receivables and is subject to reconciliation as set forth in Section 4 below.		$ 2,550.00 per DAY_

I have read and agree to the terms and conditions set forth above:
Name:	Cory Rosenberg	Title:	Date:	8/31/2023

Page 2 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

TERMS AND CONDITIONS

1. Sale of Future Receipts. Merchant(s) hereby sell, assign, and transfer to CURVE (making CURVE the absolute owner) in consideration of the funds provided (“Purchase Price”) specified above, all of each Merchant’s future accounts, contract rights, and other obligations arising from or relating to the payment of monies from each Merchant’s customers and/or other third party payors (the “Receivables”, defined as all payments made by cash, check, credit or debit card, electronic transfer, or other form of monetary payment in the ordinary course of each merchant’s business), for the payment of each Merchant’s sale of goods or services until the amount specified above (the “Receivables Purchased Amount”) has been delivered by Merchant(s) to CURVE. Each Merchant hereby acknowledges that until the Receivables Purchased Amount has been received in full by CURVE, each Merchant’s Receivables, up to the balance of the Receivables Purchased Amount, are the property of CURVE and not the property of any Merchant. Each Merchant agrees that it is a fiduciary for CURVE and that each Merchant will hold Receivables in trust for CURVE in its capacity as a fiduciary for CURVE.

The Receivables Purchased Amount shall be paid to CURVE by each Merchant irrevocably authorizing only one depositing account acceptable to CURVE (the “Account”) to remit the percentage specified above (the “Specified Percentage”) of each Merchant’s settlement amounts due from each transaction, until such time as CURVE receives payment in full of the Receivables Purchased Amount. Each Merchant hereby authorizes CURVE to ACH debit the specified remittances and any applicable fees listed in Section 2 from the Account on a daily basis as of the next business day after the date of this Agreement and will provide CURVE with all required access codes and monthly bank statements. Each Merchant understands that it will be held responsible for any fees resulting from a rejected ACH attempt or an Event of Default (see Section 2). CURVE is not responsible for any overdrafts or rejected transactions that may result from CURVE’S ACH debiting the Specified Percentage amounts under the terms of this Agreement. Each Merchant acknowledges and agrees that until the amount of the Receivables collected by CURVE exceeds the amount of the Purchase Price, CURVE will be permitted not treat any amount collected under this Agreement as profit for taxation and accounting purposes.

2. Additional Fees. In addition to the Receivables Purchased Amount, each Merchant will be held responsible to CURVE for the following fees, where applicable:

A. $6.750.00 - to cover underwriting, the ACH debit program, and expenses related to the procurement and initiation of the transactions encompassed by this Agreement. This will be deducted from payment of the Purchase Price.

B. Wire Fee - Merchant(s) shall receive funding electronically to the Account and will be charged $50.00 for a Fed Wire or $0.00 for a bank ACH. This will be deducted from payment of the Purchase Price.

C. NSF/Rejected ACH Fee - $50.00 for each time an ACH debit to the Account by CURVE is returned or otherwise rejected. No Merchant will be held responsible for such a fee if any Merchant gives CURVE notice no more than one business day in advance that the Account will have insufficient funds to be debited by CURVE and no Merchant is otherwise in default of the terms of the Agreement. Each such fee may be deducted from any payment collected by CURVE or may be collected in addition to any other payment collected by CURVE under this Agreement.

D. Blocked Account/Default - $2,500.00 - If an Event of Default has taken place under Section 30.

E. UCC Fee - $195.00 – to cover CURVE filing a UCC-1 financing statement to secure its interest in the Receivables Purchased Amount. A $195.00 UCC termination fee will be charged if a UCC filing is terminated.

F. $_________ - legal compliance with applicable disclosure laws and regulations. This will be deducted from payment of the Purchase Price.

G. Court costs, arbitration fees, collection agency fees, attorney fees, expert fees, and any other expenses incurred in litigation, arbitration, or the enforcement of any of CURVE’S legal or contractual rights against each Merchant and/or each Guarantor, if required, as explained in other Sections of this Agreement.

3. Estimated Payments. Instead of debiting the Specified Percentage of Merchant’s Receivables, CURVE may instead debit $2,550.00 (“Estimated Payment”) from the Account every DAY. The Estimated Payment is intended to be an approximation of no more than the Specified Percentage, subject to reconciliation.

I have read and agree to the terms and conditions set forth above:
Name:	Cory Rosenberg	Title:	Date:	8/31/2023

Page 3 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

4. Reconciliations. Any Merchant may contact CURVE’S Reconciliation Department to request that CURVE conduct a reconciliation in order to ensure that the amount that CURVE has collected equals the Specified Percentage of Merchant(s)’s Receivables under this Agreement. A request for a reconciliation by any Merchant must be made by giving written notice of the request to CURVE or by sending an e-mail to reconciliations@curvecapitalllc.com stating that a reconciliation is being requested. In order to effectuate the reconciliation, any Merchant must produce with its request any and all bank statements covering the period from the date of this Agreement through the date of the request for a reconciliation as well as Merchant’s account reports showing transactions in the month to date, or other documents or reports available to Merchant for verification of its revenues, or, if available, the login and password for the Account. Once, notified of a request for reconciliation, CURVE will instruct it’s ACH processor to pause ACH debits from Merchant’s account until the reconciliation process is complete. CURVE will complete each reconciliation requested by any Merchant within two business days after receipt of proper notice of a request for one accompanied by the information and documents required for it. CURVE may also conduct a reconciliation on its own at any time by reviewing Merchant(s)’s Receivables covering the period from the date of this Agreement until the date of initiation of the reconciliation, each such reconciliation will be completed within two business days after its initiation, and CURVE will give each Merchant written notice of the determination made based on the reconciliation within one business day after its completion. If a reconciliation determines that CURVE collected more than it was entitled to, then CURVE will credit to the Account all amounts to which CURVE was not entitled and, if there is an Estimated Payment, decrease the amount of the Estimated Payment so that it is consistent with the Specified Percentage of Merchant(s)’s Receivables from the date of the Agreement through the date of the reconciliation. If a reconciliation determines that CURVE collected less than it was entitled to, then CURVE will debit from the Account all additional amounts to which CURVE was entitled and, if there is an Estimated Payment, increase the amount of the Estimated Payment so that it is consistent with the Specified Percentage of Merchant(s)’s Receivables from the date of the Agreement through the date of the reconciliation. For the avoidance of doubt, in the event Merchant desires reconciliation it shall be Merchant’s sole responsibility to initiate the reconciliation process in this Section 4. Nothing herein limits the amount of times that a reconciliation may be requested or conducted.

5. Merchant Deposit Agreement. Merchant(s) shall appoint a bank acceptable to CURVE, to obtain electronic fund transfer services and/or “ACH” payments. Merchant(s) shall provide CURVE and/or its authorized agent with all of the information, authorizations, and passwords necessary to verify each Merchant’s Receivables. Merchant(s) shall authorize CURVE and/or its agent(s) to deduct the amounts owed to CURVE for the Receivables as specified herein from settlement amounts which would otherwise be due to each Merchant and to pay such amounts to CURVE by permitting CURVE to withdraw the Specified Percentage by ACH debiting of the account. The authorization shall be irrevocable as to each Merchant absent CURVE’S written consent until the Receivables Purchased Amount has been paid in full or the Merchant becomes bankrupt or goes out of business without any prior default under this Agreement.

6. Term of Agreement. The term of this Agreement is indefinite and shall continue until CURVE receives the full Receivables Purchased Amount, or earlier if terminated pursuant to any provision of this Agreement. The provisions of Sections 1, 2, 3, 4, 5, 6, 7, 9, 10, 12, 13, 14, 15, 16, 17, 18, 22, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, and 52 shall survive any termination of this Agreement.

7. Ordinary Course of Business. Each Merchant acknowledges that it is entering into this Agreement in the ordinary course of its business and that the payments to be made from each Merchant to CURVE under this Agreement are being made in the ordinary course of each Merchant’s business.

8. Financial Condition. Each Merchant and each Guarantor (Guarantor being defined as each signatory to the Guarantee of this Agreement) authorizes CURVE and its agent(s) to investigate each Merchant’s financial responsibility and history, and will provide to CURVE any bank or financial statements, tax returns, and other documents and records, as CURVE deems necessary prior to or at any time after execution of this Agreement. A photocopy of this authorization will be deemed as acceptable for release of financial information. CURVE is authorized to update such information and financial profiles from time to time as it deems appropriate.

9. Monitoring, Recording, and Electronic Communications. CURVE may choose to monitor and/or record telephone calls with any Merchant and its owners, employees, and agents. By signing this Agreement, each Merchant agrees that any call between CURVE and any Merchant or its representatives may be monitored and/or recorded. Each Merchant and each Guarantor grants access for CURVE to enter any Merchant’s premises and to observe any Merchant’s premises without any prior notice to any Merchant at any time after execution of this Agreement.

I have read and agree to the terms and conditions set forth above:
Name:	Cory Rosenberg	Title:	Date:	8/31/2023

Page 4 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

CURVE may use automated telephone dialing, text messaging systems, and e-mail to provide messages to Merchant(s), Owner(s) (Owner being defined as each person who signs this Agreement on behalf of a Merchant), and Guarantor(s) about Merchant(s)’s account. Telephone messages may be played by a machine automatically when the telephone is answered, whether answered by an Owner, a Guarantor, or someone else. These messages may also be recorded by the recipient’s answering machine or voice mail. Each Merchant, each Owner, and each Guarantor gives CURVE permission to call or send a text message to any telephone number given to CURVE in connection with this Agreement and to play pre-recorded messages and/or send text messages with information about this Agreement and/or any Merchant’s account over the phone. Each Merchant, each Owner, and each Guarantor also gives CURVE permission to communicate such information to them by e-mail. Each Merchant, each Owner, and each Guarantor agree that CURVE will not be liable to any of them for any such calls or electronic communications, even if information is communicated to an unintended recipient. Each Merchant, each Owner, and each Guarantor acknowledge that when they receive such calls or electronic communications, they may incur a charge from the company that provides them with telecommunications, wireless, and/or Internet services, and that CURVE has no liability for any such charges.

10. Accuracy of Information Furnished by Merchant and Investigation Thereof. To the extent set forth herein, each of the parties is obligated upon his, her, or its execution of the Agreement to all terms of the Agreement. Each Merchant and each Owner signing this Agreement represent that he or she is authorized to sign this Agreement for each Merchant, legally binding said Merchant to its obligations under this Agreement and that the information provided herein and in all of CURVE’S documents, forms, and recorded interview(s) is true, accurate, and complete in all respects. CURVE may produce a monthly statement reflecting the delivery of the Specified Percentage of Receivables from Merchant(s) to CURVE. An investigative report may be made in connection with the Agreement. Each Merchant and each Owner signing this Agreement authorize CURVE, its agents and representatives, and any credit-reporting agency engaged by CURVE, to (i) investigate any references given or any other statements obtained from or about each Merchant or any of its Owners for the purpose of this Agreement, and (ii) pull credit report at any time now or for so long as any Merchant and/or Owners(s) continue to have any obligation to CURVE under this Agreement or for CURVE’S ability to determine any Merchant’s eligibility to enter into any future agreement with CURVE. Any misrepresentation made by any Merchant or Owner in connection with this Agreement may constitute a separate claim for fraud or intentional misrepresentation.

Authorization for soft pulls: Each Merchant and each Owner understands that by signing this Agreement, they are providing ‘written instructions’ to CURVE under the Fair Credit Reporting Act, authorizing CURVE to obtain information from their personal credit profile or other information from Experian, TransUnion, and Equifax. Each Merchant and each Guarantor authorizes CURVE to obtain such information solely to conduct a pre-qualification for credit.

Authorization for hard pulls: Each Merchant and each Owner understands that by signing this Agreement, they are providing ‘written instructions’ to CURVE under the Fair Credit Reporting Act, authorizing CURVE to obtain information from their personal credit profile or other information from Experian, TransUnion, and Equifax. Each Merchant and each Guarantor authorizes CURVE to obtain such information in accordance with a merchant cash advance application.

11. Transactional History. Each Merchant authorizes its bank to provide CURVE with its banking and/or credit card processing history.

12. Indemnification. Each Merchant and each Guarantor jointly and severally indemnify and hold harmless each Merchant’s credit card and check processors (collectively, “Processor”) and Processor’s officers, directors, and shareholders against all losses, damages, claims, liabilities, and expenses (including reasonable attorney and expert fees) incurred by Processor resulting from (a) claims asserted by CURVE for monies owed to CURVE from any Merchant and (b) actions taken by any Processor in reliance upon information or instructions provided by CURVE.

13. No Liability. In no event will CURVE be liable for any claims asserted by any Merchant under any legal theory for lost profits, lost revenues, lost business opportunities, exemplary, punitive, special, incidental, indirect, or consequential damages, each of which is waived by each Merchant and each Guarantor.

14. Sale of Receivables. Each Merchant and CURVE agree that the Purchase Price under this Agreement is in exchange for the Receivables Purchased Amount and that such Purchase Price is not intended to be, nor shall it be construed as a loan from CURVE to any Merchant. CURVE is entering into this Agreement knowing the risks that each Merchant’s business may decline or fail, resulting in CURVE not receiving the Receivables Purchased Amount. Any Merchant going bankrupt, going out of business, or experiencing a slowdown in business or a delay in collecting Receivables will not on its own without anything more be considered a breach of this Agreement. Each Merchant agrees that the Purchase Price in exchange for the Receivables pursuant to this Agreement equals the fair market value of such Receivables. CURVE has purchased and shall own all the Receivables described in this Agreement up to the full Receivables Purchased Amount as the Receivables are created. Payments made to CURVE in respect to the full amount of the Receivables shall be conditioned upon each Merchant’s sale of products and services and the payment therefor by each Merchant’s customers in the manner provided in this Agreement. Each Merchant and each Guarantor acknowledges that CURVE does not purchase, sell, or offer to purchase or sell securities and that this Agreement is not a security, an offer to sell any security, or a solicitation of an offer to buy any security. Although certain jurisdictions require the disclosure of an Annual Percentage Rate or APR in connection with this Agreement, those disclosures do not change the fact that the transaction encompassed by this Agreement is not a loan and does not have an interest rate.

I have read and agree to the terms and conditions set forth above:
Name:	Cory Rosenberg	Title:	Date:	8/31/2023

Page 5 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

15. Power of Attorney. Each Merchant irrevocably appoints CURVE as its agent and attorney-in-fact with full authority to take any action or execute any instrument or document to settle all obligations due to CURVE for the benefit of each Merchant and only in order to prevent the occurrence of an Event of Default (as described in Section 30). If an Event of Default takes place under Section 30, then each Merchant irrevocably appoints CURVE as its agent and attorney-in-fact with full authority to take any action or execute any instrument or document to settle all obligations due to CURVE from each Merchant, including without limitation (i) to collect monies due or to become due under or in respect of any of the Collateral (which is defined in Section 29); (ii) to receive, endorse and collect any checks, notes, drafts, instruments, documents, or chattel paper in connection with clause (i) above; (iii) to sign each Merchant’s name on any invoice, bill of lading, or assignment directing customers or account debtors to make payment directly to CURVE; and (iv) to file any claims or take any action or institute any proceeding which CURVE may deem necessary for the collection of any of the unpaid Receivables Purchased Amount from the Collateral, or otherwise to enforce its rights with respect to payment of the Receivables Purchased Amount.

16. Protections Against Default. The following Protections 1 through 6 may be invoked by CURVE, immediately and without notice to any Merchant if any Event of Default listed in Section 30 has occurred.

Protection 1: The full uncollected Receivables Purchased Amount plus all fees due under this Agreement may become due and payable in full immediately.

Protection 2. CURVE may enforce the provisions of the Guarantee against Guarantor.

Protection 3. CURVE may enforce its security interest in the Collateral identified in Section 29.

Protection 4. CURVE may proceed to protect and enforce its rights and remedies by litigation or arbitration.

Protection 5. CURVE may debit any Merchant’s depository accounts wherever situated by means of ACH debit or electronic or facsimile signature on a computer-generated check drawn on any Merchant’s bank account or otherwise, in an amount consistent with the terms of this Agreement.

Protection 6. CURVE will have the right, without waiving any of its rights and remedies and without notice to any Merchant and/or Guarantor, to notify each Merchant’s credit card and/or check processor and account debtor(s) of the sale of Receivables hereunder and to direct such credit card processor and account debtor(s) to make payment to CURVE of all or any portion of the amounts received by such credit card processor and account debtor(s) on behalf of each Merchant. Each Merchant hereby grants to CURVE an irrevocable power-of-attorney, which power-of-attorney will be coupled with an interest, and hereby appoints CURVE and its representatives as each Merchant’s attorney-in-fact to take any and all action necessary to direct such new or additional credit card and/or check processor and account debtor(s) to make payment to CURVE as contemplated by this Section.

17. Protection of Information. Each Merchant and each person signing this Agreement on behalf of each Merchant and/or as Owner, in respect of himself or herself personally, authorizes CURVE to disclose information concerning each Merchant, Owner and/or Guarantor’s credit standing and business conduct to agents, affiliates, subsidiaries, and credit reporting bureaus. Each Merchant, Guarantor, and Owner hereby waives to the maximum extent permitted by law any claim for damages against CURVE or any of its affiliates relating to any (i) investigation undertaken by or on behalf of CURVE as permitted by this Agreement or (ii) disclosure of information as permitted by this Agreement.

18. Confidentiality. Each Merchant understands and agrees that the terms and conditions of the products and services offered by CURVE, including this Agreement and any other CURVE documents (collectively, “Confidential Information”) are proprietary and confidential information of CURVE. Accordingly, unless disclosure is required by law or court order, Merchant(s) shall not disclose Confidential Information of CURVE to any person other than an attorney, accountant, financial advisor, or employee of any Merchant who needs to know such information for the purpose of advising any Merchant (“Advisor”), provided such Advisor uses such information solely for the purpose of advising any Merchant and first agrees in writing to be bound by the terms of this Section 18.

I have read and agree to the terms and conditions set forth above:
Name:	Cory Rosenberg	Title:	Date:	8/31/2023

Page 6 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

19. D/B/As. Each Merchant hereby acknowledges and agrees that CURVE may be using “doing business as” or “d/b/a” names in connection with various matters relating to the transaction between CURVE and each Merchant, including the filing of UCC-1 financing statements and other notices or filings.

20. Financial Condition and Financial Information. Each Merchant represents, warrants, and covenants that its bank and financial statements, copies of which have been furnished to CURVE, and future statements which will be furnished hereafter at the request of CURVE, fairly represent the financial condition of each Merchant at such dates, and that since those dates there have been no material adverse changes, financial or otherwise, in such condition, operation, or ownership of any Merchant. Each Merchant has a continuing affirmative obligation to advise CURVE of any material adverse change in its financial condition, operation, or ownership that may have an effect on any Merchant’s ability to generate Receivables or perform its obligations under this Agreement.

21. Governmental Approvals. Each Merchant represents, warrants, and covenants that it is in compliance and shall comply with all laws and has valid permits, authorizations, and licenses to own, operate, and lease its properties and to conduct the business in which it is presently engaged.

22. Authorization. Each Merchant represents, warrants, and covenants that it and each person signing this Agreement on behalf of each Merchant has full power and authority to incur and perform the obligations under this Agreement, all of which have been duly authorized.

23. Electronic Check Processing Agreement. Each Merchant represents, warrants, and covenants that it will not, without CURVE’S prior written consent, change its Processor, add terminals, change its financial institution or bank account, or take any other action that could have any adverse effect upon any Merchant’s obligations under this Agreement.

24. Change of Name or Location. Each Merchant represents, warrants, and covenants that it will not conduct its business under any name other than as disclosed to CURVE or change any place(s) of its business without giving prior written notice to CURVE.

25. No Bankruptcy. Each Merchant represents, warrants, and covenants that as of the date of this Agreement, it does not contemplate and has not filed any petition for bankruptcy protection under Title 11 of the United States Code and there has been no involuntary petition brought or pending against any Merchant. Each Merchant further warrants that it does not anticipate filing any such bankruptcy petition and it does not anticipate that an involuntary petition will be filed against it.

26. Unencumbered Receivables. Each Merchant represents, warrants, and covenants that it has good, complete, and marketable title to all Receivables, free and clear of any and all liabilities, liens, claims, changes, restrictions, conditions, options, rights, mortgages, security interests, equities, pledges, and encumbrances of any kind or nature whatsoever or any other rights or interests that may be inconsistent with this Agreement or adverse to the interests of CURVE, other than any for which CURVE has actual or constructive knowledge or inquiry notice as of the date of this Agreement.

27. Stacking. Each Merchant represents, warrants, and covenants that it will not enter into with any party other than CURVE any arrangement, agreement, or commitment that relates to or involves the Receivables, whether in the form of a purchase of, a loan against, collateral against, or the sale or purchase of credits against Receivables without the prior written consent of CURVE.

28. Business Purpose. Each Merchant represents, warrants, and covenants that it is a valid business in good standing under the laws of the jurisdictions in which it is organized and/or operates, and each Merchant is entering into this Agreement for business purposes and not as a consumer for personal, family, or household purposes.

I have read and agree to the terms and conditions set forth above:
Name:	Cory Rosenberg	Title:	Date:	8/31/2023

Page 7 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

29. Security Interest. To secure each Merchant’s performance obligations to CURVE under this Agreement and any future agreement with CURVE, each Merchant hereby grants to CURVE a security interest in collateral (the “Collateral”), that is defined as collectively: (a) all accounts, including without limitation, all deposit accounts, accounts-receivable, and other receivables, as those terms are defined by Article 9 of the Uniform Commercial Code (the “UCC”), now or hereafter owned or acquired by any Merchant; and (b) all proceeds, as that term is defined by Article 9 of the UCC. The parties acknowledge and agree that any security interest granted to CURVE under any other agreement between any Merchant or Guarantor and CURVE (the “Cross-Collateral”) will secure the obligations hereunder and under this Agreement. Negative Pledge: Each Merchant agrees not to create, incur, assume, or permit to exist, directly or indirectly, any lien on or with respect to any of the Collateral or the Cross-Collateral, as applicable.

Each Merchant agrees to execute any documents or take any action in connection with this Agreement as CURVE deems necessary to perfect or maintain CURVE’S first priority security interest in the Collateral and the Cross-Collateral, including the execution of any account control agreements. Each Merchant hereby authorizes CURVE to file any financing statements deemed necessary by CURVE to perfect or maintain CURVE’S security interest, which financing statements may contain notification that each Merchant has granted a negative pledge to CURVE with respect to the Collateral and the Cross-Collateral, and that any subsequent lienor may be tortiously interfering with CURVE’S rights. Each Merchant shall be liable for and CURVE may charge and collect all costs and expenses, including but not limited to attorney fees, which may be incurred by CURVE in protecting, preserving, and enforcing CURVE’S security interest and rights. Each Merchant further acknowledges that CURVE may use another legal name and/or D/B/A or an agent when designating the Secured Party when CURVE files the above-referenced financing statement(s).

30. Events of Default. An “Event of Default” may be considered to have taken place if any of the following occur:

(1) Any representation or warranty by any Merchant to CURVE proves to have been made intentionally false or misleading in any material respect when made;

(2) Any Merchant causes any ACH debit to the Account by CURVE to be blocked or stopped without providing any advance written notice to CURVE with an alternative method for CURVE to collect the blocked or stopped payment, which notice may be given by e-mail to reconciliations@curvecapitalllc.com;

(3) Any Merchant intentionally prevents CURVE from collecting any part of the Receivables Purchased Amount; or

(4) Any Merchant causes any ACH debit to the Account by any person or entity other than CURVE to be stopped or otherwise returned that would result in an ACH Return Code of R08, R10, or R29 and that Merchant does not within two business days thereafter provide CURVE with written notice thereof explaining why that Merchant caused the ACH debit to be stopped or otherwise returned, which notice may be given by e-mail to reconciliations@curvecapitalllc.com.

31. Remedies. In case any Event of Default occurs and is not waived, CURVE may proceed to protect and enforce its rights or remedies by suit in equity or by action at law, or both, whether for the specific performance of any covenant, agreement, or other provision contained herein, or to enforce the discharge of each Merchant’s obligations hereunder, or any other legal or equitable right or remedy. All rights, powers, and remedies of CURVE in connection with this Agreement, including each Protection listed in Section 16, may be exercised at any time by CURVE after the occurrence of an Event of Default, are cumulative and not exclusive, and will be in addition to any other rights, powers, or remedies provided by law or equity. In case any Event of Default occurs and is not waived, CURVE may elect that Merchant(s) be required to pay to CURVE 25% of the unpaid balance of the Receivables Purchased Amount as liquidated damages for any reasonable expenses incurred by CURVE in connection with recovering the unpaid balance of the Receivables Purchased Amount (“Reasonable Expenses”) and all Merchant(s) and all Guarantor(s) agree that the Reasonable Expenses bear a reasonable relationship to CURVE’S actual expenses incurred in connection with recovering the unpaid balance of the Receivables Purchased Amount.

32. Assignment. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, except that Merchant(s) shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of CURVE, which consent may be withheld in CURVE’S sole discretion. CURVE may assign, transfer, or sell its rights under this Agreement, including, without limitation, its rights to receive the Receivables Purchased Amount, and its rights under Section 29 of this Agreement, the Guarantee, and any other agreement, instrument, or document executed in connection with the transactions contemplated by this Agreement (a “Related Agreement”), or delegate its duties hereunder or thereunder, either in whole or in part. From and after the effective date of any such assignment or transfer by CURVE, whether or not any Merchant has actual notice thereof, this Agreement and each Related Agreement shall be deemed amended and modified (without the need for any further action on the part of any Merchant or CURVE) such that the assignee shall be deemed a party to this Agreement and any such Related Agreement and, to the extent provided in the assignment document between CURVE and such assignee (the “Assignment Agreement”), have the rights and obligations of CURVE under this Agreement and such Related Agreements with respect to the portion of the Receivables Purchased Amount set forth in such Assignment Agreement, including but not limited to rights in the Receivables, Collateral and Additional Collateral, the benefit of each Guarantor’s guaranty regarding the full and prompt performance of every obligation that is a subject of the Guarantee, CURVE’S rights under Section 16 of this Agreement (Protections Against Default), and to receive damages from any Merchant following a breach of this Agreement by any Merchant. In connection with such assignment, CURVE may disclose all information that CURVE has relating to any Merchant or its business. Each Merchant agrees to acknowledge any such assignment in writing upon CURVE’S request.

I have read and agree to the terms and conditions set forth above:
Name:	Cory Rosenberg	Title:	Date:	8/31/2023

Page 8 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

33. Notices. All notices, requests, consents, demands, and other communications hereunder shall be delivered by certified mail, return receipt requested, or by overnight delivery with signature confirmation to the respective parties to this Agreement at their addresses set forth in this Agreement and shall become effective only upon receipt. Written notice may also be given to any Merchant or Guarantor by e-mail to the E-mail Address listed on the first page of this Agreement or by text message to the Phone Number listed on the first page of this Agreement if that phone number is for a mobile phone. Each Merchant and each Guarantor must set its spam or junk mail filter to accept e-mails sent by reconciliations@curvecapitalllc.com and its domain. This Section is not applicable to service of process or notices in any legal proceedings.

34. Choice of Law. Each Merchant acknowledges and agrees that this Agreement was made in the State of Florida, that the Purchase Price is being paid by CURVE in the State of Florida, that the Receivables Purchased Amount is being delivered to CURVE in the State of Florida, and that the State of Florida has a reasonable relationship to the transactions encompassed by this Agreement. This Agreement, any dispute or claim relating hereto, whether sounding in contract, tort, law, equity, or otherwise, the relationship between CURVE and each Merchant, and the relationship between CURVE and each Guarantor will be governed by and construed in accordance with the laws of the State of Florida, without regard to any applicable principles of conflict of laws. Each Merchant represents that it does not have a principal place of business located in the Commonwealth of Virginia and that therefore the provisions of Chapter 22.1 of Title 6.2 of the Virginia Code are not applicable to this Agreement. Each Merchant agrees that the provisions of Division 9.5 of the California Financial Code are not applicable to this Agreement if no Business Address listed on the first page of this Agreement or in any addendum hereto is located in the State of California.

35. Venue and Forum Selection. This Agreement, and any dispute arising out of or relating to this Agreement or the parties’ relationship, shall be governed by and construed in accordance with the laws of the State of Florida, without regard to any applicable principles of conflicts of law. Any suit, action, or proceeding arising out of or relating to this Agreement or the transaction contemplated herein or the interpretation, performance, or breach hereof, shall be instituted in any state court sitting in the State of Florida (the “Acceptable Forums”), provided that CURVE may institute suit in another forum. Merchant, each Guarantor and each Owner agree that the Acceptable Forums are convenient to them, and submit to the personal jurisdiction of the Acceptable Forums and waive any and all objections to jurisdiction or venue in the Acceptable Forums. Should a proceeding be initiated by Merchant, any Guarantor or any Owner in any other forum, Merchant, each Guarantor and each Owner waives any right to oppose any motion or application made by CURVE to dismiss such proceeding, to remove and/or transfer the proceeding to an Acceptable Forum, and for an anti-suit injunction against such proceeding (which CURVE may make in the Acceptable Forums). ADDITIONALLY, MERCHANT, EACH OWNER AND EACH GUARANTOR WAIVE PERSONAL SERVICE OF ANY SUMMONS AND/OR COMPLAINT OR OTHER PROCESS TO COMMENCE ANY LITIGATION AND AGREE THAT SERVICE OF SUCH DOCUMENTS SHALL BE EFFECTIVE AND COMPLETE IF SENT BY PRIORITY MAIL OR FIRST CLASS MAIL TO THE MAILING ADDRESS(ES) SET FORTH FOR MERCHANT ABOVE, AND EMAILED TO THE EMAIL ADDRESS, LISTED ON PAGE 1 OF THIS AGREEMENT OR THE UPDATED MAILING AND EMAIL ADDRESS IN ACCORDANCE WITH PARAGRAPH 33. SERVICE SHALL BE EFFECTIVE AND COMPLETE 5 DAYS AFTER THE MAILING. MERCHANT WILL THEN HAVE 30 CALENDAR DAYS AFTER SERVICE IS COMPLETE IN WHICH TO APPEAR IN THE ACTION OR PROCEEDING.

36. Jury Waiver. The parties agree to waive trial by jury in any dispute between them.

37. Counterclaim Waiver. In any litigation or arbitration commenced by CURVE, each Merchant and each

I have read and agree to the terms and conditions set forth above:
Name:	Cory Rosenberg	Title:	Date:	8/31/2023

Page 9 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

Guarantor will not be permitted to interpose any counterclaim.

38. Statutes of Limitations. Each Merchant and each Guarantor agree that any claim, whether sounding in contract, tort, law, equity, or otherwise, that is not asserted against CURVE within one year after its accrual will be time barred. Notwithstanding any provision in this Agreement to the contrary, each Merchant and each Guarantor agree that any objection by any of them to the jurisdiction of an arbitrator or to the arbitrability of the dispute and any application made by any of them to stay an arbitration initiated against any of them by CURVE will be time barred if made more than 20 days after receipt of the demand for arbitration.

39. Costs and Legal Fees. If an Event of Default occurs or CURVE prevails in any litigation or arbitration with any Merchant or any Guarantor, then each Merchant and each Guarantor must pay CURVE’S reasonable attorney fees, which may include a contingency fee of up to 40% of the amount claimed, as well as administrative or filing fees and arbitrator compensation in any arbitration, expert witness fees, and costs of suit.

40. Prejudgment and Postjudgment Interest. If CURVE becomes entitled to the entry of a judgment against any Merchant or any Guarantor, then CURVE will be entitled to the recovery of prejudgment interest at a rate of 24% per annum (or 16% per annum if any Merchant is a sole proprietorship), or the maximum rate permitted by applicable law if less, and upon entry of any such judgment, it will accrue interest at a postjudgment rate of 24% per annum (or 16% per annum if any Merchant is a sole proprietorship), or the maximum rate permitted by applicable law if less, which rate will govern over the statutory rate of interest up until actual satisfaction of the judgment.

41. Class Action Waiver. CURVE, each Merchant, and each Guarantor agree that they may bring claims against each other relating to this Agreement only in their individual capacities, and not as a plaintiff or class action member in any purported class or representative proceedings.

42. Arbitration. CURVE HAS THE RIGHT TO REQUEST THAT ANY DISPUTE, CONTROVERSY OR CLAIM BETWEEN CURVE AND MERCHANT, ANY GUARANTOR OR ANY OWNER, WHETHER ARISING OUT OF OR RELATING TO THE CONSTRUCTION AND INTERPRETATION OF THIS AGREEMENT OR OTHERWISE (INCLUDING WITHOUT LIMITATION CLAIMS FOR FRAUD, MISREPRESENTATION, INTENTIONAL TORT, NEGLIGENT TORT OR UNDER ANY LOCAL, STATE OR FEDERAL STATUTE OR RULE), BE SUBMITTED TO ARBITRATION BEFORE EITHER (I) THE AMERICAN ARBITRATION ASSOCIATION IN ACCORDANCE WITH ITS COMMERCIAL RULES, OR (II) MEDIATION AND CIVIL ARBITRATION INC. D/B/A RAPIDRULING (WWW.RAPIDRULING.COM) IN ACCORDANCE WITH ITS COMMERCIAL ARBITRATION RULES. THE ARBITRATION SHALL BE GOVERNED BY THE FEDERAL ARBITRATION ACT. THE ARBITRATION SHALL BE DEEMED TO BE LOCATED IN BROWARD COUNTY, FLORIDA, REGARDLESS OF THE LOCATION OF THE PARTIES OR ARBITRATOR. TO THE EXTENT PERMITTED BY THE ARBITRATOR RULES, THE ARBITRATION PROCEEDINGS SHALL PROCEED VIRTUALLY OR REMOTELY AND SHALL NOT REQUIRE THE PARTIES TO APPEAR IN-PERSON. ALL QUESTIONS CONCERNING ARBITRATRABILITY OF ANY DISPUTE SHALL BE DECIDED BY THE ARBITRATOR. CURVE MAY DEMAND THAT SUCH DISPUTE BE SUBMITTED TO ARBITRATION EITHER BY (I) SENDING A WRITTEN NOTICE OF INTENT TO ARBITRATE TO ALL OTHER PARTIES IN ACCORDANCE WITH THE NOTICE PROVISION IN PARAGRAPH 6.5 OF THIS AGREEMENT, OR (II) SENDING A WRITTEN NOTICE OF INTENT TO ARBITRATE TO THE ATTORNEY OF RECORD FOR MERCHANT, ANY GUARANTOR OR ANY OWNER WHO HAS BROUGHT ANY ACTION OR PROCEEDING BEFORE ANY COURT OR TRIBUNAL AGAINST CURVE. INITIALLY, THE PARTIES WILL SPLIT THE ARBITRATION FILING FEE, ADMINISTRATION FEE AND ARBITRATOR FEE. IF CURVE PREVAILS IN ARBITRATION, THE ARBITRATOR MAY AWARD TO CURVE ITS ATTORNEYS’ FEES (IN ACCORDANCE WITH PARAGRAPH 4.4 OF THIS AGREEMENT) AND SHARE OF THE ARBITRATION FILING FEE, ADMINISTRATION FEE AND ARBITRATOR FEE. MERCHANT, ANY GUARANTOR AND ANY OWNER MAY OPT OUT OF THIS ARBITRATION PROVISION BY SENDING CURVE A NOTICE THAT HE, SHE OR IT DOES NOT WANT THIS PROVISION TO APPLY IN ACCORDANCE WITH PARAGRAPH 6.3 WITHIN 14 DAYS AFTER THE EFFECTIVE DATE OF THIS AGREEMENT.

I have read and agree to the terms and conditions set forth above:
Name:	Cory Rosenberg	Title:	Date:	8/31/2023

Page 10 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

43. Service of Process. Each Merchant and each Guarantor consent to service of process and legal notices made by First Class or Priority Mail delivered by the United States Postal Service and addressed to the Contact Address set forth on the first page of this Agreement or any other address(es) provided in writing to CURVE by any Merchant or any Guarantor, and unless applicable law or rules provide otherwise, any such service will be deemed complete upon dispatch. Each Merchant and each Guarantor agrees that it will be precluded from asserting that it did not receive service of process or any other notice mailed to the Contact Address set forth on the first page of this Agreement if it does not furnish a certified mail return receipt signed by CURVE demonstrating that CURVE was provided with notice of a change in the Contact Address.

44. Survival of Representations, etc. All representations, warranties, and covenants herein shall survive the execution and delivery of this Agreement and shall continue in full force until all obligations under this Agreement shall have been satisfied in full and this Agreement shall have terminated unless specified otherwise in this Agreement.

45. Waiver. No failure on the part of CURVE to exercise, and no delay in exercising, any right under this Agreement, shall operate as a waiver thereof, nor shall any single or partial exercise of any right under this Agreement preclude any other or further exercise thereof or the exercise of any other right. The remedies provided hereunder are cumulative and not exclusive of any remedies provided by law or equity.

46. Independent Sales Organizations/Brokers. Each Merchant and each Guarantor acknowledge that it may have been introduced to CURVE by or received assistance in entering into this Agreement or its Guarantee from an independent sales organization or broker (“ISO”). Each Merchant and each Guarantor agree that any ISO is separate from and is not an agent or representative of CURVE. Each Merchant and each Guarantor acknowledge that CURVE is not bound by any promises or agreements made by any ISO that are not contained within this Agreement. Each Merchant and each Guarantor exculpate from liability and agree to hold harmless and indemnify CURVE and its officers, directors, members, shareholders, employees, and agents from and against all losses, damages, claims, liabilities, and expenses (including reasonable attorney and expert fees) incurred by any Merchant or any Guarantor resulting from any act or omission by any ISO. Each Merchant and each Guarantor acknowledge that any fee that they paid to any ISO for its services is separate and apart from any payment under this Agreement. Each Merchant and each Guarantor acknowledge that CURVE does not in any way require the use of an ISO and that any fees charged by any ISO are not required as a condition or incident to this Agreement.

47. Modifications; Agreements. No modification, amendment, waiver, or consent of any provision of this Agreement shall be effective unless the same shall be in writing and signed by all parties.

48. Severability. If any provision of this Agreement is deemed invalid or unenforceable as written, it will be construed, to the greatest extent possible, in a manner which will render it valid and enforceable, and any limitation on the scope or duration of any such provision necessary to make it valid and enforceable will be deemed to be part thereof. If any provision of this Agreement is deemed void, all other provisions will remain in effect.

49. Headings. Headings of the various articles and/or sections of this Agreement are for convenience only and do not necessarily define, limit, describe, or construe the contents of such articles or sections.

50. Attorney Review. Each Merchant acknowledges that it has had an opportunity to review this Agreement and all addenda with counsel of its choosing before signing the documents or has chosen not to avail itself of the opportunity to do so.

51. Entire Agreement. This Agreement, inclusive of all addenda, if any, executed simultaneously herewith constitutes the full understanding of the parties to the transaction herein and may not be amended, modified, or canceled except in writing signed by all parties. Should there arise any conflict between this Agreement and any other document preceding it, this Agreement will govern. This Agreement does not affect any previous agreement between the parties unless such an agreement is specifically referenced herein. This Agreement will not be affected by any subsequent agreement between the parties unless this Agreement is specifically referenced therein.

I have read and agree to the terms and conditions set forth above:
Name:	Cory Rosenberg	Title:	Date:	8/31/2023

Page 11 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

52. Counterparts; Fax and Electronic Signatures. This Agreement may be executed electronically and in counterparts. Facsimile and electronic copies of this Agreement will have the full force and effect of an original.

EACH UNDERSIGNED HEREBY ACCEPTS THE TERMS OF THIS AGREEMENT

FOR THE MERCHANT/OWNER (#1)

By: CORY ROSENBERG
(Print Name)	(Print Title)	(Signature)

`

SS# [***] Driver License Number_______________________________

FOR THE MERCHANT/OWNER (#2)

By:
	(Print Name)	(Print Name)	(Signature)

SS# Driver License Number

Approved for CURVE CAPITAL LLC by:

Page 12 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

GUARANTEE

G1. Personal Guarantee of Performance. This is a personal guaranty of performance, dated 8/31/2023, of the Standard Merchant Cash Advance Agreement, dated 8/31/2023 (“Agreement”), inclusive of all addenda, if any, executed simultaneously therewith, by and between CURVE CAPITAL LLC (CURVE) and FIRST PERSON INC (“Merchant”). Each undersigned Guarantor hereby guarantees each Merchant’s performance of all of the representations, warranties, and covenants made by each Merchant to CURVE in the Agreement, inclusive of all addenda, if any, executed simultaneously herewith, as the Agreement may be renewed, amended, extended, or otherwise modified (the “Guaranteed Obligations”). Each Guarantor’s obligations are due at the time of any breach by any Merchant of any representation, warranty, or covenant made by any Merchant in the Agreement.

G2. Communications. CURVE may use automated telephone dialing, text messaging systems, and e-mail to provide messages to Guarantor(s) about Merchant(s)’s account. Telephone messages may be played by a machine automatically when the telephone is answered, whether answered by an Owner, a Guarantor, or someone else. These messages may also be recorded by the recipient’s answering machine or voice mail. Each Guarantor gives CURVE permission to call or send a text message to any telephone number given to CURVE in connection with this Agreement and to play pre-recorded messages and/or send text messages with information about this Agreement and/or any Merchant’s account over the phone. Each Guarantor also gives CURVE permission to communicate such information to them by e-mail. Each Guarantor agrees that CURVE will not be liable to any of them for any such calls or electronic communications, even if information is communicated to an unintended recipient. Each Guarantor acknowledges that when they receive such calls or electronic communications, they may incur a charge from the company that provides them with telecommunications, wireless, and/or Internet services, and that CURVE has no liability for any such charges.

G3. Guarantor Waivers. If any Event of Default takes place under the Agreement, then CURVE may enforce its rights under this Guarantee without first seeking to obtain payment from any Merchant, any other guarantor, or any Collateral or Cross‐Collateral CURVE may hold pursuant to this Guarantee or any other agreement or guarantee. CURVE does not have to notify any Guarantor of any of the following events and Guarantor(s) will not be released from its obligations under this Guarantee even if it is not notified of: (i) any Merchant’s failure to pay timely any amount owed under the Agreement; (ii) any adverse change in any Merchant’s financial condition or business; (iii) any sale or other disposition of any collateral securing the Guaranteed Obligations or any other guarantee of the Guaranteed Obligations; (iv) CURVE’S acceptance of the Agreement with any Merchant; and (v) any renewal, extension, or other modification of the Agreement or any Merchant’s other obligations to CURVE. In addition, CURVE may take any of the following actions without releasing any Guarantor from any obligations under this Guarantee: (i) renew, extend, or otherwise modify the Agreement or any Merchant’s other obligations to C; (ii) if there is more than one Merchant, release a Merchant from its obligations to CURVE such that at least one Merchant remains obligated to CURVE; (iii) sell, release, impair, waive, or otherwise fail to realize upon any collateral securing the Guaranteed Obligations or any other guarantee of the Guaranteed Obligations; and (iv) foreclose on any collateral securing the Guaranteed Obligations or any other guarantee of the Guaranteed Obligations in a manner that impairs or precludes the right of Guarantor to obtain reimbursement for payment under the Agreement. Until the Receivables Purchased Amount and each Merchant’s other obligations to CURVE under the Agreement and this Guarantee are paid in full, each Guarantor shall not seek reimbursement from any Merchant or any other guarantor for any amounts paid by it under the Agreement. Each Guarantor permanently waives and shall not seek to exercise any of the following rights that it may have against any Merchant, any other guarantor, or any collateral provided by any Merchant or any other guarantor, for any amounts paid by it or acts performed by it under this Guarantee: (i) subrogation; (ii) reimbursement; (iii) performance; (iv) indemnification; or (v) contribution.

G4. Joint and Several Liability. The obligations hereunder of the persons or entities constituting each Guarantor under this Guarantee are joint and several.

G5. Choice of Law. Each Guarantor acknowledges and agrees that the Agreement and this Guarantee were made in the State of Florida, that the Purchase Price is being paid by CURVE in the State of Florida, that the Receivables Purchased Amount is being delivered to CURVE in the State of Florida, and that the State of Florida has a reasonable relationship to the transactions encompassed by the Agreement and this Guarantee. The Agreement, this Guarantee, any dispute or claim relating to the Agreement or this Guarantee, whether sounding in contract, tort, law, equity, or otherwise, the relationship between CURVE and each Merchant, and the relationship between CURVE and each Guarantor will be governed by and co

I have read and agree to the terms and conditions set forth above:
Name:	Cory Rosenberg	Title:	Date:	8/31/2023

Page 13 of 16

G6. Venue and Forum Selection. This Agreement, and any dispute arising out of or relating to this Agreement or the parties’ relationship, shall be governed by and construed in accordance with the laws of the State of Florida, without regard to any applicable principles of conflicts of law. Any suit, action, or proceeding arising out of or relating to this Agreement or the transaction contemplated herein or the interpretation, performance, or breach hereof, shall be instituted in any state court sitting in the State of Florida (the “Acceptable Forums”), provided that CURVE may institute suit in another forum. Merchant, each Guarantor and each Owner agree that the Acceptable Forums are convenient to them, and submit to the personal jurisdiction of the Acceptable Forums and waive any and all objections to jurisdiction or venue in the Acceptable Forums. Should a proceeding be initiated by Merchant, any Guarantor or any Owner in any other forum, Merchant, each Guarantor and each Owner waives any right to oppose any motion or application made by CURVE to dismiss such proceeding, to remove and/or transfer the proceeding to an Acceptable Forum, and for an anti-suit injunction against such proceeding (which CURVE may make in the Acceptable Forums). ADDITIONALLY, MERCHANT, EACH OWNER AND EACH GUARANTOR WAIVE PERSONAL SERVICE OF ANY SUMMONS AND/OR COMPLAINT OR OTHER PROCESS TO COMMENCE ANY LITIGATION AND AGREE THAT SERVICE OF SUCH DOCUMENTS SHALL BE EFFECTIVE AND COMPLETE IF SENT BY PRIORITY MAIL OR FIRST CLASS MAIL TO THE MAILING ADDRESS(ES) SET FORTH FOR MERCHANT ABOVE, AND EMAILED TO THE EMAIL ADDRESS, LISTED ON PAGE 1 OF THIS AGREEMENT OR THE UPDATED MAILING AND EMAIL ADDRESS IN ACCORDANCE WITH PARAGRAPH 33. SERVICE SHALL BE EFFECTIVE AND COMPLETE 5 DAYS AFTER THE MAILING. MERCHANT WILL THEN HAVE 30 CALENDAR DAYS AFTER SERVICE IS COMPLETE IN WHICH TO APPEAR IN THE ACTION OR PROCEEDING.

G7. Jury Waiver. Each Guarantor agrees to waive trial by jury in any dispute with CURVE.

G8. Counterclaim Waiver. In any litigation or arbitration commenced by CURVE, each Merchant and each Guarantor will not be permitted to interpose any counterclaim.

G9. Statutes of Limitations. Each Merchant and each Guarantor agree that any claim, whether sounding in contract, tort, law, equity, or otherwise, that is not asserted against CURVE within one year of its accrual will be time barred. Notwithstanding any provision in the Agreement or this Guarantee to the contrary, each Merchant and each Guarantor agree that any application made by any of them to stay an arbitration initiated against any of them by CURVE will be time barred if made more than 20 days after receipt of the demand for arbitration.

G10. Costs and Legal Fees. If an Event of Default occurs or CURVE prevails in any litigation or arbitration with any Merchant or any Guarantor, then each Merchant and/or Guarantor must pay CURVE’S reasonable attorney fees, which may include a contingency fee of up to 40% of the amount claimed, as well as administrative or filing fees and arbitrator compensation in any arbitration, expert witness fees, and costs of suit.

G11. Prejudgment and Postjudgment Interest. If CURVE becomes entitled to the entry of a judgment against any Merchant or any Guarantor, then CURVE will be entitled to the recovery of prejudgment interest at a rate of 24% per annum (or 16% per annum if any Merchant is a sole proprietorship), or the maximum rate permitted by applicable law if less, and upon entry of any such judgment, it will accrue interest at a postjudgment rate of 24% per annum (or 16% per annum if any Merchant is a sole proprietorship), or the maximum rate permitted by applicable law if less, which rate will govern over the statutory rate of interest up until actual satisfaction of the judgment.

G12. Class Action Waiver. CURVE, each Merchant, and each Guarantor agree that they may bring claims against each other relating to this Agreement only in their individual capacities, and not as a plaintiff or class action member in any purported class or representative proceedings.

I have read and agree to the terms and conditions set forth above:
Name:	Cory Rosenberg	Title:	Date:	8/31/2023

Page 14 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

G13. Arbitration. CURVE HAS THE RIGHT TO REQUEST THAT ANY DISPUTE, CONTROVERSY OR CLAIM BETWEEN CURVE AND MERCHANT, ANY GUARANTOR OR ANY OWNER, WHETHER ARISING OUT OF OR RELATING TO THE CONSTRUCTION AND INTERPRETATION OF THIS AGREEMENT OR OTHERWISE (INCLUDING WITHOUT LIMITATION CLAIMS FOR FRAUD, MISREPRESENTATION, INTENTIONAL TORT, NEGLIGENT TORT OR UNDER ANY LOCAL, STATE OR FEDERAL STATUTE OR RULE), BE SUBMITTED TO ARBITRATION BEFORE EITHER (I) THE AMERICAN ARBITRATION ASSOCIATION IN ACCORDANCE WITH ITS COMMERCIAL RULES, OR (II) MEDIATION AND CIVIL ARBITRATION INC. D/B/A RAPIDRULING (WWW.RAPIDRULING.COM) IN ACCORDANCE WITH ITS COMMERCIAL ARBITRATION RULES. THE ARBITRATION SHALL BE GOVERNED BY THE FEDERAL ARBITRATION ACT. THE ARBITRATION SHALL BE DEEMED TO BE LOCATED IN BROWARD COUNTY, FLORIDA, REGARDLESS OF THE LOCATION OF THE PARTIES OR ARBITRATOR. TO THE EXTENT PERMITTED BY THE ARBITRATOR RULES, THE ARBITRATION PROCEEDINGS SHALL PROCEED VIRTUALLY OR REMOTELY AND SHALL NOT REQUIRE THE PARTIES TO APPEAR IN-PERSON. ALL QUESTIONS CONCERNING ARBITRATRABILITY OF ANY DISPUTE SHALL BE DECIDED BY THE ARBITRATOR. CURVE MAY DEMAND THAT SUCH DISPUTE BE SUBMITTED TO ARBITRATION EITHER BY (I) SENDING A WRITTEN NOTICE OF INTENT TO ARBITRATE TO ALL OTHER PARTIES IN ACCORDANCE WITH THE NOTICE PROVISION IN PARAGRAPH 6.5 OF THIS AGREEMENT, OR (II) SENDING A WRITTEN NOTICE OF INTENT TO ARBITRATE TO THE ATTORNEY OF RECORD FOR MERCHANT, ANY GUARANTOR OR ANY OWNER WHO HAS BROUGHT ANY ACTION OR PROCEEDING BEFORE ANY COURT OR TRIBUNAL AGAINST CURVE. INITIALLY, THE PARTIES WILL SPLIT THE ARBITRATION FILING FEE, ADMINISTRATION FEE AND ARBITRATOR FEE. IF CURVE PREVAILS IN ARBITRATION, THE ARBITRATOR MAY AWARD TO CURVE ITS ATTORNEYS’ FEES (IN ACCORDANCE WITH PARAGRAPH 4.4 OF THIS AGREEMENT) AND SHARE OF THE ARBITRATION FILING FEE, ADMINISTRATION FEE AND ARBITRATOR FEE. MERCHANT, ANY GUARANTOR AND ANY OWNER MAY OPT OUT OF THIS ARBITRATION PROVISION BY SENDING CURVE A NOTICE THAT HE, SHE OR IT DOES NOT WANT THIS PROVISION TO APPLY IN ACCORDANCE WITH PARAGRAPH 6.3 WITHIN 14 DAYS AFTER THE EFFECTIVE DATE OF THIS AGREEMENT.

G14. Service of Process. Each Merchant and each Guarantor consent to service of process and legal notices made by First Class or Priority Mail delivered by the United States Postal Service and addressed to the Contact Address set forth on the first page of the Agreement or any other address(es) provided in writing to CURVE by any Merchant or any Guarantor, and unless applicable law or rules provide otherwise, any such service will be deemed complete upon dispatch. Each Merchant and each Guarantor agrees that it will be precluded from asserting that it did not receive service of process or any other notice mailed to the Contact Address set forth on the first page of the Agreement if it does not furnish a certified mail return receipt signed by CURVE demonstrating that CURVE was provided with notice of a change in the Contact Address.

G15. Severability. If any provision of this Guarantee is deemed invalid or unenforceable as written, it will be construed, to the greatest extent possible, in a manner which will render it valid and enforceable, and any limitation on the scope or duration of any such provision necessary to make it valid and enforceable will be deemed to be part thereof. If any provision of this Guarantee is deemed void, all other provisions will remain in effect.

G16. Survival. The provisions of Sections G2, G3, G4, G5, G6, G7, G8, G9, G10, G11, G12, G13, G14, G15, G16, G17, G18, G19, and G20 shall survive any termination of this Guarantee.

I have read and agree to the terms and conditions set forth above:
Name:	Cory Rosenberg	Title:	Date:	8/31/2023

Page 15 of 16

G17. Headings. Headings of the various articles and/or sections of this Guarantee are for convenience only and do not necessarily define, limit, describe, or construe the contents of such articles or sections.

G18. Attorney Review. Each Guarantor acknowledges that it has had an opportunity to review this Guarantee, the Agreement, and all addenda with counsel of its choosing before signing the documents or has chosen not to avail itself of the opportunity to do so.

G19. Entire Agreement. This Guarantee, inclusive of all addenda, if any, executed simultaneously herewith may not be amended, modified, or canceled except in writing signed by all parties. Should there arise any conflict between this Guarantee and any other document preceding it, this Guarantee will govern. This Guarantee does not affect any previous agreement between the parties unless such an agreement is specifically referenced in the Agreement or herein. This Guarantee will not be affected by any subsequent agreement between the parties unless this Guarantee is specifically referenced therein.

G20. Counterparts; Fax and Electronic Signatures. This Guarantee may be executed electronically and in counterparts. Facsimile and electronic copies of this Guarantee will have the full force and effect of an original.

THE TERMS, DEFINITIONS, CONDITIONS AND INFORMATION SET FORTH IN THE “STANDARD MERCHANT CASH ADVANCE AGREEMENT”, INCLUDING THE “TERMS AND CONDITIONS”, ARE HEREBY INCORPORATED IN AND MADE A PART OF THIS GUARANTEE. CAPITALIZED TERMS NOT DEFINED IN THIS GUARANTEE SHALL HAVE THE MEANING SET FORTH IN THE STANDARD MERCHANT CASH ADVANCE AGREEMENT, INCLUDING THE TERMS AND CONDITIONS.

EACH UNDERSIGNED HEREBY ACCEPTS THE TERMS OF THIS GUARANTEE

GUARANTOR (#1)

By: CORY ROSENBERG
(Print Name)	(Signature)

SS# [***] Driver License Number ________________________

GUARANTOR (#2)

BY:
	(Print Name)	(Signature)

SS# Driver License Number

Page 16 of 16

STANDARD MERCHANT CASH ADVANCE AGREEMENT

BANK INFORMATION

Dear Merchant,

We look forward to being your funding partner.

You authorize CURVE CAPITAL LLC to collect the Receivables Purchased Amount under this Agreement by ACH debiting your bank account with the bank listed below.

CURVE CAPITAL LLC will require viewing access to your bank account each business day. CURVE CAPITAL LLC will also require viewing access to your bank account, prior to funding, as part of our underwriting process.

Please fill out the form below with the information necessary to access your account.

* Be sure to indicate capital or lower case letters.

Name of bank:	[***]
Name of account:	[***]

Account number: [***] Routing number: [***]

Bank portal website:	[***]
Username:	[***]
Password:	[***]

Security Question/Answer 1:	NA
Security Question/Answer 2:	NA
Security Question/Answer 2:	NA

Any other information necessary to access your account: [***]

If you have any questions please feel free to contact us directly at (718) 400-9030.

I have read and agree to the terms and conditions set forth above:
Name:	Cory Rosenberg	Title:	Date:	8/31/2023

EX-23.1

Exhibit 23.1

Independent Registered Public Accounting Firm’s Consent

We consent to the inclusion in this Registration Statement of First Person Ltd. on Form S-1, Amendment No. 8, File No. 333-264707 of our report dated May 1, 2023, except as to Note 10, for which the date is September 12, 2023, which includes an explanatory paragraph as to the Company’s ability to continue as a going concern, with respect to our audits of the consolidated financial statements of First Person Ltd. as of December 31, 2022 and 2021 and for the year ended December 31, 2022 and the period from January 21, 2021 (inception) to December 31, 2021, which report appears in the Prospectus, which is part of this Registration Statement. We also consent to the reference to our Firm under the heading “Experts” in such Prospectus.

/s/ Marcum LLP

Marcum LLP

Costa Mesa, CA

September 12, 2023

EX-FILING FEES

Exhibit 107

Calculation of Filing Fee Tables

FORM S-1

(Form Type)

FIRST PERSON LTD.

(Exact Name of Registrant as Specified in its Charter)

Table 1: Newly Registered and Carry Forward Securities

	Security Type	Security Class Title	Fee Calculation Rule			Amount Registered		Proposed Maximum Offering Price Per Unit		Maximum Aggregate Offering Price		Fee Rate		Amount of Registration Fee
Newly Registered Securities
Fees to Be Paid	Equity	Common Shares, no par value(1)		457	(a)		3,335,000(2)	$	5.00(3)	$	16,675,000	$	0.00011020	$	1,837.59
Fees to Be Paid	Equity	Common Shares, no par value(1)		457	(a)		2,330,364	$	5.00(3)	$	11,651,820	$	0.00011020	$	1,284.03
	Total Offering Amounts													$	3,121.62
	Total Fees Previously Paid													$	3,128.63
	Total Fee Offsets													$	-
	Net Fee Due													$	0

(1)	In addition to the Common Shares set forth in this table, pursuant to Rule 416 under the Securities Act of 1933, as amended (the “Securities Act”), this registration statement also registers such indeterminate number of Common Shares as may become issuable after the date hereof as a result of stock splits, stock dividends, stock distributions, or similar transactions.
(2)	Includes 337,500 Common Shares the underwriters have the option to purchase to cover over-allotments, if any.
(3)	Estimated solely for the purpose of calculating the registration fee in accordance with Rule 457(a) under the Securities Act of 1933.

XML

Cover	6 Months Ended
	Jun. 30, 2023
Entity Addresses [Line Items]
Document Type	S-1/A
Amendment Flag	true
Amendment Description	Amendment No. 8
Entity Registrant Name	FIRST PERSON LTD.
Entity Central Index Key	0001900035
Entity Primary SIC Number	2833
Entity Incorporation, State or Country Code	A0
Entity Address, Address Line One	1840, 444 – 5th Ave
Entity Address, Address Line Two	SW
Entity Address, City or Town	Calgary
Entity Address, State or Province	AB
Entity Address, Postal Zip Code	T2P 2T8
City Area Code	(587)
Local Phone Number	577-9261
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Business Contact [Member]
Entity Addresses [Line Items]
Entity Address, Address Line One	1840, 444 – 5th Ave.
Entity Address, Address Line Two	SW
Entity Address, State or Province	AB
Entity Address, Postal Zip Code	T2P 2T8
City Area Code	403
Local Phone Number	225-3003
Contact Personnel Name	Jan Campbell

XML

Consolidated Balance Sheets - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash	$ 199,945	$ 64,865	$ 559,158
Accounts receivable, net	46,994	55,063
Other Receivables – Funds Held in Trust
Inventory	1,284,830	1,012,799	97,636
Prepaid expenses and other current assets	213,888	238,467	539,592
Deferred offering cost	1,370,826	889,189	297,437
Total current assets	3,116,483	2,260,383	1,493,823
Property and equipment, net	948,323	988,382	9,595
Construction-in-progress			452,405
Deposits	16,804	16,803	3,178
Intangible assets, net	101,753	131,576	189,956
Operating lease right-of-use asset	169,426	196,580	158,451
Total assets	4,352,789	3,593,724	2,307,408
Current liabilities:
Related party	2,314,215	2,532,690	436,011
Accrued expenses and other current liabilities	472,589	278,088	116,825
Lease liability, current portion	70,910	78,626	36,449
Convertible debentures	2,099,174
Loans and note payable	780,131	1,097,742
Total current liabilities	5,737,019	3,987,145	589,285
Lease liability, net of current portion	98,516	117,954	122,002
Total liabilities	5,835,535	4,105,099	711,287
Commitments and contingencies (see Note 10)
Shareholders’ equity (deficit)
Preferred shares, no par value - unlimited authorized, 3,098,971 and 0 shares issued and outstanding as of June 30, 2023, and December 31, 2022, respectively	969,136
Common shares, no par value - unlimited authorized, 6,351,354 shares issued and outstanding as of June 30, 2023, and December 31, 2022	7,081,261	7,081,261	4,357,943
Additional paid-in capital	903,250	693,951	195,501
Accumulated deficit	(10,456,225)	(8,314,421)	(2,921,325)
Accumulated other comprehensive loss	19,833	27,834	(35,998)
Total shareholders’ equity (deficit)	(1,482,746)	(511,375)	1,596,121
Total liabilities and shareholders’ equity (deficit)	4,352,789	3,593,724	$ 2,307,408
Related Party [Member]
Current liabilities:
Related party	$ 408,893	$ 686,476

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Common stock, par value	$ 0	$ 0	$ 0
Common stock, shares authorized	Unlimited	Unlimited	Unlimited
Common stock, shares outstanding	6,351,354	6,351,354	5,804,254
Common stock, shares issued	6,351,354	6,351,354	5,804,254
Preferred stock, par value	$ 0	$ 0
Preferred stock, shares authorized	Unlimited	Unlimited
Preferred stock, shares issued	3,098,971	0
Preferred stock, shares outstanding	3,098,971	0

XML

Consolidated Statements of Operations and Comprehensive Loss - USD ($)	6 Months Ended		11 Months Ended	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2022
Income Statement [Abstract]
Revenues, net	$ 3,894,500	$ 1,079,624		$ 4,334,020
Cost of Goods Sold	1,128,364	364,736		1,406,371
Gross Profit	2,766,136	714,888		2,927,649
Operating expenses:
Selling, general and administrative	4,254,493	3,631,012	2,948,245	8,080,594
Depreciation and amortization	86,153	17,451	1,378	51,592
Foreign currency transaction losses (gains)		(6,245)	(28,146)	100,851
Total operating expenses	4,340,646	3,642,218	2,921,477	8,233,037
Loss from operations	(1,574,510)	(2,927,330)	(2,921,477)	(5,305,388)
Other income (expense):
Net interest (expense)	(568,712)
Net interest income	1,418	178
Net interest income (expense)			152	(87,708)
Total other income (expense)	(567,294)	178	152	(87,708)
Loss before provision for income taxes	(2,141,804)	(2,927,152)	(2,921,325)	(5,393,096)
Provision for income taxes
Net loss	(2,141,804)	(2,927,152)	(2,921,325)	(5,393,096)
Other comprehensive loss, net of provision for income taxes:
Foreign currency translation gain (loss)	(8,001)	(10,856)	(35,998)	63,832
Comprehensive loss	$ (2,149,805)	$ (2,938,008)	$ (2,957,323)	$ (5,329,264)
Net Loss per Common Share
Net loss per common share - basic	$ (0.34)	$ (0.50)	$ (0.59)	$ (0.86)
Net loss per common share - diluted	$ (0.34)	$ (0.50)	$ (0.59)	$ (0.86)
Weighted Average Number of Common Shares Outstanding
Weighted average number of common shares outstanding - basic	6,351,354	5,838,301	4,917,792	6,252,128
Weighted average number of common shares outstanding - diluted	6,351,354	5,838,301	4,917,792	6,252,128

XML

Consolidated Statement of Changes in Shareholders' Equity (Deficit) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance at Jan. 20, 2021
Balance, shares at Jan. 20, 2021
Issuance of Common Shares, net of issuance costs		$ 1,478,582				1,478,582
Issuance of Common Shares, net of issuance costs, shares		1,003,012
Foreign currency translation adjustment gain (loss), net of provision for income taxes					(35,998)	(35,998)
Share-based compensation related to grants of stock options			355,334			355,334
Net loss				(2,921,325)		(2,921,325)
Issuance of Common Shares, net of issuance costs		$ 90				90
Issuance of Common Shares, net of issuance costs, shares		2,800,000
Issuance of Common Shares as part of the Plan of Merger (Note 1)		$ 359,505	(359,505)
Issuance of Common Shares as part of the Plan of Merger (Note 1), shares		1,000,000
Issuance of Common Shares, net of issuance costs		$ 2,519,766	199,672			2,719,438
Issuance of Common Shares, net of issuance costs, shares		1,001,242
Balance at Dec. 31, 2021		$ 4,357,943	195,501	(2,921,325)	(35,998)	1,596,121
Balance, shares at Dec. 31, 2021		5,804,254
Issuance of Common Shares, net of issuance costs		$ 974,435				974,435
Issuance of Common Shares, net of issuance costs, shares		196,400
Foreign currency translation adjustment gain (loss), net of provision for income taxes					(10,856)	(10,856)
Share-based compensation related to grants of stock options			262,034			262,034
Net loss				(2,927,152)		(2,927,152)
Issuance of Common Shares, net of issuance costs		$ 808,453				808,453
Issuance of Common Shares, net of issuance costs, shares		162,600
Issuance of Common Shares, net of issuance costs		$ 890,430				890,430
Issuance of Common Shares, net of issuance costs, shares		178,100
Issuance of Common Shares Accounts payable conversion		$ 50,000				50,000
Issuance of Common Shares Accounts payable conversion, shares		10,000
Balance at Jun. 30, 2022		$ 7,081,261	457,535	(5,848,477)	(46,854)	1,643,465
Balance, shares at Jun. 30, 2022		6,351,354
Balance at Dec. 31, 2021		$ 4,357,943	195,501	(2,921,325)	(35,998)	1,596,121
Balance, shares at Dec. 31, 2021		5,804,254
Issuance of Common Shares, net of issuance costs		$ 974,435				974,435
Issuance of Common Shares, net of issuance costs, shares		196,400
Issuance of Common Shares, net of issuance costs		$ 890,430				890,430
Issuance of Common Shares, net of issuance costs, shares		178,100
Issuance of Common Shares Accounts payable conversion		$ 50,000				50,000
Issuance of Common Shares Accounts payable conversion, shares		10,000
Issuance of Common Shares, net of issuance costs		$ 808,453				808,453
Issuance of Common Shares, net of issuance costs, shares		162,600
Foreign currency translation adjustment gain (loss), net of provision for income taxes					63,832	63,832
Share-based compensation related to grants of stock options			498,450			498,450
Net loss				(5,393,096)		(5,393,096)
Balance at Dec. 31, 2022		$ 7,081,261	693,951	(8,314,421)	27,834	(511,375)
Balance, shares at Dec. 31, 2022		6,351,354
Foreign currency translation adjustment gain (loss), net of provision for income taxes					(8,001)	(8,001)
Share-based compensation related to grants of stock options			209,299			209,299
Net loss				(2,141,804)		(2,141,804)
Issuance of Preferred Shares, net of issuance costs	$ 969,136					969,136
Issuance of Preferred Shares, net of issuance costs, shares	3,098,971
Balance at Jun. 30, 2023	$ 969,136	$ 7,081,261	$ 903,250	$ (10,456,225)	$ 19,833	$ (1,482,746)
Balance, shares at Jun. 30, 2023	3,098,971	6,351,354

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Consolidated Statement of Changes in Shareholders' Equity (Deficit) (Parenthetical) - USD ($)	6 Months Ended		11 Months Ended	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2022
Payments of stock issuance costs			$ 138,256	$ 7,565
Payments of stock issuance costs one		$ 70		70
Payments of stock issuance costs, Two		$ 4,547		$ 4,547
Unit issuance costs			$ 62,155
Shares issued		162,600
Shares issues		178,100
Accounts payable conversion - shares issued		10,000
Preferred Stock [Member]
Payments of stock issuance costs	$ 7,815
Common Stock [Member]
Payments of stock issuance costs		$ 7,565
Shares issued		196,400

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Consolidated Statements of Cash Flows - USD ($)	6 Months Ended		11 Months Ended	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2022
Cash flows from operating activities:
Net loss	$ (2,141,804)	$ (2,927,152)	$ (2,921,325)	$ (5,393,096)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	86,153	17,451	1,378	51,592
Amortization of right-of-use asset	27,154	11,542	14,523	57,762
Amortization of debt discount and issuance costs	449,490			77,071
Share-based compensation	209,299	262,034	355,334	498,450
Change in operating assets and liabilities:
Accounts receivable	8,069	(51,735)		(55,063)
Inventories	(272,031)	(547,936)	(97,636)	(915,163)
Prepaid expenses and other current assets	24,579	355,553	(539,592)	471,686
Deferred offering cost	(481,637)	(326,767)	(297,437)	(591,752)
Deposits		(19,525)	(3,178)	(13,625)
Accounts payable	(218,474)	802,631	436,011	2,146,678
Accrued expenses and other current liabilities	209,976	25,291	116,825	161,263
Operating lease liability	(27,154)	(11,542)	(14,523)	(57,762)
Net cash used in operating activities	(2,126,380)	(2,410,155)	(2,949,620)	(3,561,959)
Cash flows from (used in) investing activities:
Purchases of property and equipment	(7,931)	(287,750)	(11,024)	(281,156)
Purchases of intangibles			(193,668)
Purchases of construction-in-progress			(452,405)
Asset acquisition of TruMed		(114,000)		(114,000)
Cash used in investing activities	(7,931)	(401,750)	(657,097)	(395,156)
Cash flows from financing activities:
Proceeds from loans issued	860,070			1,230,200
Repayments of loans payable	(1,409,925)			(504,529)
Proceeds from convertible debentures	1,863,945
Issuance of Preferred Shares	969,136
Issuance of 1,003,012 Common Shares, net of issuance costs of $138,256			1,478,582
Issuance of 1,001,242 Units, net of issuance costs of $62,155			2,719,438
Issuance of 196,400 Common Shares, net of issuance costs of $7,565		974,435		974,435
Issuance of 188,100 Common Shares, net of issuance costs of $70		890,430		890,430
Issuance of Common Shares, net of issuance costs		808,453		808,453
Net cash provided by financing activities	2,283,226	2,673,318	4,198,020	3,398,989
Effect of foreign currency exchange rate changes on cash	(13,835)	(10,857)	(32,145)	63,833
Net change in cash	135,080	(149,444)	559,158	(494,293)
Cash, beginning of period	64,865	559,158		559,158
Cash, end of period	199,945	409,714	559,158	64,865
Supplemental disclosures of cash flow information:
Interest	334,119			77,974
State income taxes
Supplemental disclosures of noncash financing activities:
Acquisition of plant, property, and equipment in exchange for prepaid expenses				60,000
Transfers from construction-in-progress to plant, property, and equipment				452,405
Financing of insurance premiums				225,000
Issuance of notes payable in exchange for acquisition of TruMed		$ 70,000		70,000
Issuance of 2,800,000 Common Shares as part of the Plan of Merger (Note 1)			359,505
Right-of-use asset acquired through operating lease			$ 172,974	$ 109,365

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Consolidated Statements of Cash Flows (Parenthetical) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Common stock issued in plan of merger		2,800,000
Common Stock 1 [Member]
Shares issued	196,400	1,003,012
Payments of stock issuance costs	$ 7,565	$ 138,256
Number of units issued		1,001,242
Unit issuance costs		$ 62,155
Common Stock 2 [Member]
Shares issued	188,100	196,400
Payments of stock issuance costs	$ 70	$ 7,565
Common Stock 3 [Member]
Shares issued	162,600	178,100
Payments of stock issuance costs	$ 4,547	$ 70
Common Stock 4 [Member]
Shares issued		162,600
Payments of stock issuance costs		$ 4,547

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ORGANIZATION

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION

1. ORGANIZATION

Nature of Business LEIIO Wellness Ltd., First Person Ltd.’s (“First Person”) predecessor by name change, was incorporated on January 21, 2021 (date of inception) under the laws of the province of Alberta, Canada. First Person’s wholly owned subsidiary, LEIIO Inc., First Person, Inc.’s (“INC”) predecessor by name change, was incorporated the next day, on January 22, 2021, in the state of Delaware, United States. First Person and INC are hereby collectively referred to as the “Company.” The Company, headquartered in Alberta, Canada, is engaged in the business of formulation and distribution of wholesale food grade functional mushrooms as well as cognitive performance products focusing on the mental performance and wellness markets in the United States.

Since its inception, the Company has devoted substantially all of its efforts to business and product developments relating to the operations of the functional mushroom farm in Olympia, Washington, and to the development of its own proprietary formulations of cognitive performance products containing functional mushrooms. The Company’s activities are subject to significant risks and uncertainties.

1. ORGANIZATION

Nature of Business LEIIO Wellness Ltd., First Person Ltd.’s (“First Person”) predecessor by name change, was incorporated on January 21, 2021 (date of inception) under the laws of the province of Alberta, Canada. First Person’s wholly owned subsidiary, LEIIO Inc., First Person, Inc.’s (“INC”) predecessor by name change, was incorporated the next day, on January 22, 2021, in the state of Delaware, United States. First Person and INC are hereby collectively referred to as the “Company.” The Company, headquartered in Alberta, Canada, is engaged in the business of formulation and distribution of wholesale food grade functional mushrooms as well as cognitive performance products focusing on the mental performance and wellness markets in the United States.

Since its inception, the Company has devoted substantially all of its efforts to business and product developments relating to the operations of the functional mushroom farm in Olympia, Washington, and to the development of its own proprietary formulations of cognitive performance products containing functional mushrooms. The Company’s activities are subject to significant risks and uncertainties.

First Person Formation On January 21, 2021, First Person issued 0.2 Common Shares at a purchase price of $0.05 each in Canadian Dollars (“CAD”). On February 3, 2021, First Person issued a total of 1,000,000 Common Shares of First Person to four individuals in exchange for consulting services whose total consideration amounted to CAD$162,500.

INC Formation On January 22, 2021, INC entered into share purchase agreements with four purchasers (collectively, “INC Purchasers”) to transfer a total of 9,000,000 common shares of INC (collectively, the “Purchased Shares”) to INC Purchasers. Each purchaser received an equal number of common shares and each common share was issued at a purchase price of $0.00001 per common share. The consideration paid for the Purchased Shares per purchaser was a combination of $22.50 in cash and the assignment to INC of certain intellectual property rights, pursuant to a technology assignment agreement. Immediately after, INC became wholly owned by INC Purchasers.

Plan of Merger On February 17, 2021, First Person entered into an agreement and plan of merger (the “Plan of Merger”). Pursuant to the Plan of Merger, a merger between INC and LEIIO Merger Sub, Inc., a Delaware corporation (“Merger Sub”) occurred. Immediately after the merger, INC became a wholly owned subsidiary of First Person and INC Purchasers obtained control of First Person, resulting in a reverse acquisition.

Pursuant to the Plan of Merger entered into between First Person, INC, and Merger Sub, the merger was completed in a series of transactions as follows:

● On February 17, 2021, Merger Sub was formed.

● On February 17, 2021, First Person subscribed for 100 common shares of Merger Sub for total consideration of $1. Immediately after, Merger Sub became a wholly owned subsidiary of First Person.

● Pursuant to the Plan of Merger, Merger Sub merged with and into INC, with INC continuing as the surviving corporation. The merger became effective upon filing of the certificate of merger with the Delaware Secretary of State (the “Effective Time”).

● Immediately prior to the Effective Time and by virtue of the merger, each share of INC issued and outstanding converted into 0.31111112 Common Shares of First Person (each, a “First Person Share”). The consideration in the merger consisted of 2,800,000 First Person Shares, with the first 700,000 First Person Shares and the next 2,100,000 First Person Shares issued at a price of CAD$0.05 and CAD$0.20 per First Person Share, respectively. The total consideration in the merger amounted to CAD$455,000 ($359,505 USD).

● By virtue of the merger, each share of Merger Sub issued and outstanding immediately prior to the Effective Time converted into one share of INC.

● Immediately after, INC became a wholly owned subsidiary of First Person.

Pursuant to the Plan of Merger, INC Purchasers, the accounting acquirer, became the majority shareholders of First Person. The transaction was accounted for as a reverse acquisition under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805-40, Reverse Acquisitions, since INC Purchasers obtained control of First Person. The transaction was not treated as a business combination.

Legal Entity Name On December 15, 2021, LEIIO Wellness Ltd. amended its articles under the laws of the province of Alberta, Canada, to change its legal entity name to “First Person Ltd.” On October 4, 2021, LEIIO Inc. amended its articles under the laws of the state of Delaware, United States, to change its legal entity name to “First Person, Inc.”

Acquisition of TruMed On February 15, 2022, the Company completed the acquisition of 100 percent of all outstanding shares of TruMed Limited (“TruMed”) in exchange for the aggregate consideration of $750,000, which consists of $130,000 of cash consideration, $70,000 payable pursuant to the terms of a promissory note, and $550,000 of contingent consideration payable upon TruMed achieving certain milestones. In conjunction with the acquisition of TruMed, the Company capitalized $197,562 to the acquired asset. Subsequent to December 31, 2022, the Company paid $35,000 as partial payment of the amount owed under the promissory note issued in connection with its acquisition of TruMed. The amended promissory note is due April 30, 2023, and has an interest rate of Bank of Canada prime rate plus two percent.

The determination of whether an acquisition qualifies as a business combination or an asset acquisition requires management’s use of judgment. An acquisition not meeting the accounting criteria to be accounted for as a business combination is accounted for as an asset acquisition. The acquisition of TruMed was accounted for as an asset acquisition at its purchase price, inclusive of acquisition costs, which was allocated to the acquired assets based upon its fair value at the date of acquisition. There was no liability assumed as a result of the acquisition. In accordance with ASC 450, Contingencies, contingent consideration is generally recognized when the contingency is resolved. As of December 31, 2022, management has determined the contingent consideration is not both probable and reasonably estimable.

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GOING CONCERN AND MANAGEMENT’S PLAN

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GOING CONCERN AND MANAGEMENT’S PLAN

2. GOING CONCERN AND MANAGEMENT’S PLAN

The Company has not yet achieved profitability and expects to continue to incur cash outflows from operations. It is expected that its operating expenses will continue to increase and, as a result, the Company will eventually need to generate significant revenues to achieve profitability. These conditions indicate that there is substantial doubt about the Company’s ability to continue as a going concern.

Although the Company’s management believes that it has access to capital resources, there are currently no commitments in place for new financing at this time and there is no assurance that the Company will be able to obtain funds on commercially acceptable terms, if at all. If the Company is unable to obtain adequate funds on reasonable terms, it may be required to significantly curtail or discontinue operations or obtain funds by entering into financing agreements on unattractive terms. The Company’s operating needs include the planned costs to operate its business, including amounts required to fund working capital and capital expenditures.

These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) for the six months ended June 30, 2023 and 2022, which contemplate continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustment that might become necessary should the Company be unable to continue as a going concern.

2. GOING CONCERN AND MANAGEMENT’S PLAN

The Company has not yet achieved profitability and expects to continue to incur cash outflows from operations. It is expected that its operating expenses will continue to increase and, as a result, the Company will eventually need to generate significant revenues to achieve profitability. These conditions indicate that there is substantial doubt about the Company’s ability to continue as a going concern.

Although the Company’s management believes that it has access to capital resources, there are currently no commitments in place for new financing at this time and there is no assurance that the Company will be able to obtain funds on commercially acceptable terms, if at all. If the Company is unable to obtain adequate funds on reasonable terms, it may be required to significantly curtail or discontinue operations or obtain funds by entering into financing agreements on unattractive terms. The Company’s operating needs include the planned costs to operate its business, including amounts required to fund working capital and capital expenditures.

These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) for the year ended December 31, 2022, and the period from January 21, 2021 (date of inception), through December 31, 2021 (“the period ended December 31, 2021”), which contemplate continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustment that might become necessary should the Company be unable to continue as a going concern.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Unaudited Interim Financial Statements The consolidated balance sheet as of June 30, 2023, the consolidated statements of operations and comprehensive loss, the consolidated statements of changes in shareholders’ equity (deficit), and the consolidated statements of cash flows for the six months ended June 30, 2023 and 2022, as well as other information disclosed in the accompanying notes, are unaudited. The consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements as of that date. The interim consolidated financial statements and the accompanying notes should be read in conjunction with the annual consolidated financial statements and the accompanying notes for the year ended December 31, 2022.

The interim consolidated financial statements and the accompanying notes have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the results of operations for the periods presented. The consolidated results of operations for any interim period are not necessarily indicative of the results to be expected for the full year or for any other future years or interim periods.

The Company’s significant accounting policies are described in Note 2 to the Company’s consolidated financial statements as of December 31, 2022. There have been no material changes to the Company’s significant accounting policies.

Recently Issued Accounting Pronouncements There is no anticipated impact from recently issued accounting pronouncements to the Company’s interim consolidated financial statements.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Method of Accounting The Company maintains its accounting records under the accrual method of accounting in conformity with US GAAP, where revenues and expenses are recorded as earned and incurred, respectively.

Principles of Consolidation The accompanying consolidated financial statements include the accounts of First Person and INC. All significant intercompany balances and transactions have been eliminated upon consolidation.

Foreign Currency In accordance with FASB ASC Topic 830, Foreign Currency Matters, the Company has determined the functional currency of First Person is the Canadian dollar. The Company translates the financial statements of First Person to U.S. dollars using month-end exchange rates for assets and liabilities, and average exchange rates for revenues and expenses. Translation gains and losses are recorded in accumulated other comprehensive loss as a component of shareholders’ equity.

Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, certain disclosures at the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates affecting the consolidated financial statements have been prepared on the basis of the most current and best available information. Significant items subject to such estimates and assumptions include grant date fair values of equity awards and valuation allowance for deferred income taxes. However, actual results from the resolution of such estimates and assumptions may vary from those used in the preparation of the consolidated financial statements.

Cash and Cash Equivalents The Company considers all short-term, highly liquid, unrestricted investments with original maturities of three months or less, to be cash equivalents.

Inventory Inventory consists of raw materials such as inputs for functional mushroom, packaging materials, and finished goods inventory, which were the Company’s three direct-to-consumer products: Sunbeam^TM, Golden Hour^TM, and Moonlight^TM that are stated at the lower of cost or net realizable value. Net realizable value is determined based on the estimated selling price less reasonably predictable cost of completion, disposal, and transportation. The Company values inventory on a FIFO basis depleting inventory in the order in which it was received. The Company evaluates the need for inventory reserves associated with obsolete, slow-moving, and non-sellable inventory by reviewing estimated net realized values on a periodic basis. As of December 31, 2022, the Company did not have a reserve for obsolescence.

Financial Instruments and Concentrations of Business and Credit Risk Financial instruments that potentially subject the Company to concentrations of business and credit risks consist of cash and cash equivalents.

The Company maintains cash balances that can, at times, exceed amounts insured by the Federal Deposit Insurance Corporation. The Company has not experienced any losses in these accounts and believes it is not exposed to any significant credit risk in this area.

Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization expense is calculated using the straight-line method over the estimated useful lives of the related assets, which is approximately five years for computer equipment.

Betterments, renewals, and extraordinary repairs that materially extend the useful life of the asset are capitalized; other repairs and maintenance charges are expensed as incurred. The cost and related accumulated depreciation or amortization applicable to assets retired are removed from the accounts and the gain or loss on disposition, if any, is recognized in the accompanying consolidated statement of operations and comprehensive loss.

Impairment of Long-Lived Assets In accordance with FASB ASC Topic 360, Property, Plant, and Equipment, long-lived assets such as property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is recognized on long-lived assets when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of the assets. In such cases, the carrying value of these assets are adjusted to their estimated fair value and assets held for sale are adjusted to their estimated fair value less estimated selling expenses.

No impairment losses of long-lived assets were recognized for the period ended December 31, 2021, and the year ended December 31, 2022.

Website Development Costs The Company recognizes website development costs in accordance with ASC 350-50, Accounting for Website Development Costs. As such, the Company expenses all costs incurred that relate to the planning and post implementation phases of development of its website. Direct costs incurred in the development phase are capitalized and recognized over the estimated useful life (see Note 8). Costs associated with operating the website are expensed as incurred.

Advertising Advertising costs are expensed as incurred. Advertising expenses for the year ended December 31, 2022, and the period ended December 31, 2021, amounted to $2,312,451 and $24,337, respectively, and are included in selling, general and administrative expenses on the accompanying consolidated statement of operations and comprehensive loss.

Income Taxes The Company accounts for income taxes under FASB ASC Topic 740, Accounting for Income Taxes. As part of the process of preparing the consolidated financial statements, the Company is required to estimate an income tax provision (benefit) in each of the jurisdictions in which it operates. This process involves estimating the current income tax provision (benefit) together with assessing temporary differences resulting from differing items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within the consolidated balance sheets. The Company provides a valuation allowance against its deferred tax assets when circumstances indicate that it will, more likely than not, no longer be realized.

INC accounts for income taxes in accordance with FASB ASC 740-10, Accounting for Uncertainty in Income Taxes (“ASC 740-10”). The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain tax position will not be recognized if it has less than 50 percent likelihood of being sustained.

INC is a Delaware C corporation and is subject to taxation and files income tax returns in the United States. Since inception, INC tax returns are subject to examination by taxing authorities, and no examinations are currently pending.

As of December 31, 2021, INC does not have any unrecognized tax benefits. INC does not anticipate any material changes to its unrecognized tax benefits within the next twelve months.

On December 27, 2020, the United States enacted the Consolidated Appropriations Act which extended many of the benefits of the CARES Act that were scheduled to expire. The Company is evaluating the impact of the Consolidated Appropriations Act on its consolidated financial statements and related disclosures.

Lease Accounting In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02” or “ASC 842”). ASC 842 establishes a right-of-use (ROU) model that requires a lessee to record an ROU asset and a lease liability, measured on a discounted basis, on the balance sheets for all leases with terms greater than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statements of income. Effective January 21, 2021 (date of inception), the Company adopted ASC 842 for all leases existing at the date of adoption. The Company has made an accounting policy election to not recognize right of use assets or lease liabilities for leases with an initial term of twelve months or less, and recognizes the related expense in the accompanying consolidated statement of operations and comprehensive loss on a straight-line basis over the lease term.

Under ASC 842, the Company determines if an arrangement is a lease at inception. If an arrangement contains a lease, an operating or finance ROU asset and obligation are recognized at the commencement date based on the present value of lease payments over the lease term. That ROU asset and obligation represent the Company’s right to use an underlying asset for the lease term and the Company’s obligation to make lease payments arising from the lease, respectively. The ROU asset recorded includes any prepaid lease payments made and excludes lease incentives received. The Company’s lease terms include options to extend the lease for a total of two renewal periods with each term being two years which may be exercised by giving written notice to lessor no less than sixty days prior to the expiration of the current lease or renewal period. The lease renewal terms were recognized as part of the Company’s ROU assets and lease liabilities.

Lease expense for lease payments and amortization expense for the ROU assets are recognized on a straight-line basis over the lease term and are included in selling, general and administrative expenses in the accompanying statement of operations and comprehensive loss.

There was no impact of adopting FASB ASC 842 on the accompanying statements of changes in shareholders’ equity as of January 21, 2021 (date of inception).

Share-based Compensation In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) – Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). The amendments in ASU 2018-07 expand the scope of FASB ASC 718, Compensation – Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. Upon adoption, entities shall be required to apply FASB ASC 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. FASB ASU 2018-07 is effective for private entities for fiscal years beginning after December 15, 2019, with early adoption permitted, but no earlier than an entity’s adoption date of FASB ASC 606, Revenue from Contracts with Customers (“ASC 606”). The Company adopted FASB ASC 2018-07 effective January 21, 2021 (date of inception). In accordance with ASU 2018-07, the Company records its share-based payments at the estimated grant date fair value over the service period for equity-classified awards granted to nonemployees in the same period and in the same manner as if the Company paid cash for the goods or services. In addition, the Company has elected to account for forfeitures when they occur in accordance with FASB ASC 718-10-35-3. The calculation of expected term is based on the “simplified” method described in Staff Accounting Bulletin (“SAB”) Topic 14, Share-Based Payment. SAB Topic 14 provides a simplified method for estimating the expected term for “plain vanilla” options if a company does not have sufficient appropriate exercise data on which to base its own estimate or exercise data relating to employees of comparable companies is not easily obtainable. The risk-free interest rate is based on the U.S. Treasury yield at the date of grant for an instrument with a maturity that is commensurate with the expected term of the stock options. The dividend yield is zero since the Company has never paid cash dividends on its common shares and has no present intention to pay cash dividends. Options granted under the Company’s Equity Incentive Plan generally vest generally vest based on three years of continuous service and have five-year contractual terms (see Note 12).

Revenue Recognition The Company recognizes revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company’s revenue consists exclusively of its direct-to-consumer sales of cognitive supplements sold primarily throughout the United States.

In order to recognize revenue under FASB ASU 2014-09, the Company applies the following five steps:

● Identification of customer contracts;

● Identification of the performance obligation(s) in the contract to transfer goods or provide services to a customer;

● Determination of the transaction price the Company expects to be entitled to in exchange for transferring promised goods or services to a customer;

● Allocation of the transaction price to the performance obligation(s) in the contract; and

● Recognition of revenue when or as the Company satisfies the performance obligation(s).

The Company’s contracts with customers for the cognitive supplements and other related products consist of single performance obligations. The performance obligation in a contract is determined based on each individual order and the respective quantities shipped, with revenue being recognized at a point in time when obligations under the terms of the agreement are satisfied. This generally occurs with the transfer of control when the product is shipped to the customer.

The amount of revenue recognized is reduced for estimated returns and other customer credits, such as discounts and rebates, based on the expected value to be realized. Payment terms are consistent with terms standard to the markets the Company serves.

The Company recognizes revenue when our inventory is shipped to our customers. We recognize revenue gross of amounts payable to our third-party co-packers and other third-party suppliers for the following reasons. First, we bear primary responsibility for fulfilling our performance obligations and for the acceptability of our product. Our customers purchase goods from our website, which bears the Company’s name, and agree to our terms and conditions. Our customers do not enter into separate contracts with any of our third-party suppliers. Second, we bear inventory risk, as we purchase and store our inventory prior to shipping it to customers, and are subject to risk of loss if the inventory is damaged or becomes obsolete. Third, we have discretion in establishing prices charged to our customers, as we determine the price at which our products are offered to customers on our website, independently of prices charged by our third-party suppliers.

Revenue received from shipping and handling fees is reflected in net sales. The Company has elected to classify shipping and handling costs in selling, general and administrative expenses and recognizes them at the time revenue is recognized for the related goods. The Company has also elected to recognize revenue net of sales taxes and similar taxes that are imposed on and concurrent with revenue producing activities. The Company has elected to use the practical expedient for significant financing components allowed under ASU 2014-09, such that if the period between revenue recognition and cash receipt for a particular contract is expected to be a year or less, no interest income is recognized and the full amount of revenue appropriate under the contract is recognized at the time the performance obligation is met.

Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13 Topic 326, Financial Instruments - Credit Losses (“ASU 2016-13”), which in conjunction with subsequent amendments issued by FASB amends the FASB’s guidance on the impairment of financial instruments. The ASU adds to US GAAP an impairment model (known as the “current expected credit loss model”) that is based on expected losses rather than incurred losses. For public companies, ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2021. In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326): Effective Date for Certain Entities (“ASU 2019-10”). The amendments of ASU 2019-10 defer the effective date of ASU 2016-13 for certain entities by one year. Private companies should apply the guidance in ASU 2016-13 to annual reporting periods beginning after December 15, 2022. Early adoption is permitted. The Company is currently in the process of evaluating the potential impact of this new accounting guidance, which is effective for the Company beginning on January 1, 2023, although early adoption is permitted.

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INVENTORIES

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Inventory Disclosure [Abstract]

INVENTORIES

4. INVENTORIES

A summary of inventories is as follows:

As of:	June 30, 2023		December 31, 2022
Raw materials	$	263,800	$	176,440
Work in process		-		-
Finished goods		1,021,030		836,359
Inventory	$	1,284,830	$	1,012,799

As of June 30, 2023, inventory included raw materials, which were functional mushrooms produced from the Company’s farm operations, located in Olympia, Washington, to be used in the production of its cognitive performance products. In addition, as of June 30, 2023, inventory included finished goods inventory, which were the Company’s three direct-to-consumer products: Sunbeam^TM, Golden Hour^TM, and Moonlight^TM as well as packaging materials. Inventory is recognized at the lower of cost or net realizable value. Net realizable value is determined based on the estimated selling price less reasonably predictable cost of completion, disposal, and transportation.

4. INVENTORIES

A summary of inventories is as follows:

As of:	December 31, 2022		December 31, 2021
Raw materials	$	176,440	$	97,636
Work in process		-		-
Finished goods		836,359		-
Inventory	$	1,012,799	$	97,636

As of December 31, 2022 and 2021, inventory consisted of raw materials, which were functional mushrooms produced from the Company’s farm operations, located in Olympia, Washington, to be used in the production of its cognitive performance products. In addition, as of December 31, 2022, inventory consisted of finished goods inventory, which were the Company’s three direct-to-consumer products: Sunbeam^TM, Golden Hour^TM, and Moonlight^TM as well as packaging materials. Inventory is recognized at the lower of cost or net realizable value. Net realizable value is determined based on the estimated selling price less reasonably predictable cost of completion, disposal, and transportation.

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PREPAID EXPENSES AND OTHER CURRENT ASSETS

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Prepaid Expenses And Other Current Assets

PREPAID EXPENSES AND OTHER CURRENT ASSETS

5. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist of the following:

As of:	June 30, 2023		December 31, 2022
Prepaid expenses and deposits	$	213,888	$	238,467

Prepaid expenses and other current assets primarily consist of prepayments related to insurance premiums, product development, office space rent, security deposit for office space, deposit for acquisition and other miscellaneous items.

5. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist of the following:

As of:	December 31, 2022		December 31, 2021
Prepaid expenses and deposits	$	238,467	$	304,127
Prepaid expenses, other		-		2,569
Prepaid expenses, production deposit		-		188,385
Prepaid expenses, rent deposit		-		15,125
Other current assets		-		29,386
Prepaid expenses and other current assets	$	238,467	$	539,592

As of December 31, 2022 and 2021, prepaid expenses and other current assets primarily consist of prepayments related to insurance premiums, office space rent, and other miscellaneous items.

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PROPERTY AND EQUIPMENT

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

6. PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

As of:	June 30, 2023			December 31, 2022
Facility	$	576,309		$	576,309
Equipment		415,405			404,789
Computer equipment		13,841			10,776
Less: accumulated depreciation		(57,232	)		(3,492	)
Property and equipment, net	$	948,323		$	988,382

Depreciation expense related to property and equipment amounted to $53,611 for the six months ended June 30, 2023 (and depreciation expense of $1,098 for the six months ended June 30, 2022).

6. PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

As of:	December 31, 2022			December 31, 2021
Facility	$	576,309		$	-
Equipment		404,789			-
Computer equipment		10,776			10,962
Less: accumulated depreciation		(3,492	)		(1,367	)
Property and equipment, net	$	988,382		$	9,595

Depreciation expense related to property and equipment amounted to $2,182 (2021 - $1,367) for the year ended December 31, 2022.

The Company used its greenhouses in Olympia, Washington in a limited capacity during the year ended December 31, 2022, but they were not ready for full-scale production until approximately December 31, 2022. As such, the Company reclassified the facility from construction-in-progress to property and equipment as of December 31, 2022, but did not recognize any depreciation expense related to the facility during the year ended December 31, 2022, and period ended December 31, 2021.

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CONSTRUCTION-IN-PROGRESS

12 Months Ended

Dec. 31, 2022

Schedule Of Construction In Progress

CONSTRUCTION-IN-PROGRESS

7. CONSTRUCTION-IN-PROGRESS

Construction-in-progress consist of the following:

As of:	December 31, 2022		December 31, 2021
Greenhouse costs	$	-	$	452,405

The Company’s greenhouses in Olympia, Washington that will be used to grow functional mushrooms were substantially finished as of December 31, 2022. As such, the associated costs were transferred to property and equipment at the end of 2022.

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INTANGIBLE ASSETS

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

7. INTANGIBLE ASSETS

Intangible assets consist of the following:

As of:	June 30, 2023			December 31, 2022
Website development costs	$	183,317		$	178,918
Less: accumulated amortization		(81,564	)		(47,342	)
Intangible assets	$	101,753		$	131,576

The Company recognized amortization expense of $32,542 related to its website development costs for the six months ended June 30, 2023 (and amortization expense of $16,353 for the six months ended June 30, 2022).

8. INTANGIBLE ASSETS

Intangible assets consist of the following:

As of:	December 31, 2022			December 31, 2021
Website development costs	$	178,918		$	189,956
Less: accumulated amortization		(47,342	)		-
Intangible assets, net	$	131,576		$	189,956

As of December 31, 2022, the Company has completed the development and design of its website. As such, the Company recognized amortization expense of $49,411 related to its website development costs for the year ended December 31, 2022. There was no amortization expense recognized during the period ended December 31, 2021.

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LOANS AND NOTE PAYABLE

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Debt Disclosure [Abstract]

LOANS AND NOTE PAYABLE

8. LOANS AND NOTE PAYABLE

Loans and notes payable consist of the following:

As of:	June 30, 2023		December 31, 2022
Line of credit	$	35,501	$	134,210
Merchant loan		248,066		319,742
Revenue purchase agreement		403,141		164,636
Bridge loan		4,384		184,154
Insurance financing		89,039		225,000
TruMed acquisition note payable		-		70,000
Loans and note payable, net	$	780,131	$	1,097,742

On January 10, 2023, the Company paid $35,000 as partial payment of the amount owed under the promissory note issued in connection with its acquisition of TruMed from its shareholders (the “TruMed Sellers”), and the Company and the TruMed Sellers amended the promissory note to provide for a new principal amount of $37,868, which shall be payable on or before the earlier of (i) April 30, 2023 and (ii) the date on which the Company completes an initial public offering of securities on a “designated exchange” within the meaning of Canadian securities legislation. The balance of $37,868 was paid to TruMed in full on April 28, 2023.

On May 18, 2023, the Company entered into a merchant loan agreement with WebBank, on behalf of Shopify Inc., for proceeds of $410,000 and a repayment amount of $451,000 (cost of borrowing $41,000). The repayments are made to Shopify Inc. at a rate of 17% of the Company’s daily sales amounts until the repayment amount has been fully settled.

On June 8, 2023, the Company entered into a merchant loan agreement with Fundonatic, for proceeds of $225,000 and a repayment amount of $292,500 (cost of borrowing $67,500). Daily repayments in the amount of $1,950 are made to Fundonatic.

On June 8, 2023, the Company entered into a merchant loan agreement with Click Capital Group LLC, for proceeds of $225,000 and a repayment amount of $292,500 (cost of borrowing $67,500). Daily repayments in the amount of $1,950 are made to Click Capital Group LLC.

On June 28, 2023 the Company extended the expiry date on the 500,620 warrants from July 14, 2023 to January 14, 2024.

9. LOANS AND NOTE PAYABLE

Loans and notes payable consist of the following:

As of:	December 31, 2022		December 31, 2021
Line of credit	$	134,210	$	-
Merchant loan		319,742		-
Revenue purchase agreement		164,636		-
Bridge loan		184,154		-
Insurance financing		225,000		-
TruMed acquisition note payable (Note 1)		70,000		-
Loans and note payable, net	$	1,097,742	$	-

On August 8, 2022, the Company entered into a line of credit agreement (“line of credit”) for a maximum draw amount of $200,000 with Celtic Bank Corporation (“Celtic”). The Company has drawn an initial $200,000, which is subject to a draw fee of 3%, an interest rate of 1.93% per month, and will be repaid over twelve monthly installments. In connection with the Company entering into the line of credit agreement, Cory J. Rosenberg, the Company’s Chairman, Chief Executive Officer, and President, entered into a Guaranty, dated August 8, 2022, pursuant to which he guarantees to Celtic the performance of all of the Company’s obligations to Celtic. As of December 31, 2022, the carrying value of the line of credit was $134,210.

On August 8, 2022, the Company entered into a merchant loan agreement with WebBank (“merchant loan”), on behalf of Shopify Inc., for proceeds of $250,000 and a repayment amount of $282,500 (cost of borrowing of $32,500). The repayments are made to Shopify Inc. at a rate of 12% of the Company’s daily sales amounts until the repayment amount has been fully settled. On November 8, 2022, the Company received additional proceeds of $355,000, for which the repayment amount is $401,150 (cost of borrowing of $46,150). The repayments for the additional proceeds are made to Shopify Inc. at a rate of 15% of the Company’s daily sales amounts until the repayment amount has fully been settled. As of December 31, 2022, the carrying value of the merchant loan was $319,742.

On October 8, 2022, the Company entered into a revenue purchase agreement whereby Pearl Beta Funding, LLC (“Pearl”) provided the Company with cash proceeds of $245,000. The terms require that the Company make weekly payments of $8,208 (which amount may be periodically adjusted to approximate 10% of sales) until a total of $328,300 has been repaid. In connection with the Company entering into the revenue purchase agreement, Cory J. Rosenberg, the Company’s Chairman, Chief Executive Officer, and President, entered into a Guaranty of Performance, pursuant to which he guarantees to Pearl the performance of all of the representations, warranties, and covenants made by the Company in the revenue purchase agreement. As of December 31, 2022, the carrying value of the revenue purchase agreement was $164,636.

On December 20, 2022, the Company entered into a bridge loan with Cloudfund LLC for cash proceeds of $200,000. The repayments will be made through daily payments of $2,092 until the total $272,000 loan is repaid. As of December 31, 2022, the carrying value of the bridge loan was $184,154.

On December 31, 2022, the Company entered into a loan agreement with Imperial PFS Canada for financing of its insurance policy. The repayments will be made through nine monthly payments of $20,736. As of December 31, 2022, the carrying value of the insurance financing was $225,000.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

10. COMMITMENTS AND CONTINGENCIES

Leases The Company leases certain office facilities. Certain leases provide the Company with the option to renew for additional periods. The exercise of lease renewal options is at the Company’s sole discretion, and the Company has only included renewal options in the lease term when the Company can be reasonably certain that it will exercise the renewal options.

For the six months ended June 30, 2023 and 2022, the components of lease expenses were recognized as selling, general and administrative expenses in the consolidated statement of operations and comprehensive loss. The lease payments were paid in cash.

	Six Months Ended June 30,
	2023		2022
Operating lease costs	$	40,459	$	19,068

As of June 30, 2023, the Company has no operating or financing leases that have not yet commenced.

The future maturities of the contractual lease payments included in the operating lease liabilities as of June 30, 2023 are as follows:

As of June 30, 2023:	Total
Remainder of 2023	$	40,675
2024		70,546
2025		38,136
2026		38,136
Thereafter		12,712
Total		200,205
Less: amount representing interest		(30,779	)
Total	$	169,426

Litigation The Company is subject to certain legal proceedings and claims that arise in the normal course of business. The Company does not believe that the amount of liability, if any, as a result of these proceedings and claims will have a materially adverse effect on the Company’s financial position, results of operations, and cash flows. On June 26, 2023, the Company received a statement of claim from the sellers of TruMed. This claim seeks payment of the milestone payments as set out in the purchase and sale agreement in advance of meeting the milestones. The total of the milestone payments as set out in the purchase and sale agreement is $550,000.

In the past 24 months several of the Company’s representatives have been part of interviews that were recorded on podcasts or in articles discussing their own experiences and the Company. The interviews were directed at persons interested in health, wellness, spirituality and the potential benefits of products the Company sells or expects to sell. The interviews were not directed at prospective investors and made no mention of a possible initial public offering by the Company.

To the extent that certain statements in the podcasts and articles may have violated Section 5 and were inaccurate, unsubstantiated, misleading, or contradicted disclosures in the prospectus, those statements have now been specifically set forth in Exhibit 99.1 to the registration statement, the problem with each of those statements has been identified and such statements have been specifically and thoroughly corrected, refuted or contradicted, as applicable. The prospectus now sets forth the correct information for any investor who might have otherwise relied on statements contained in the podcasts or articles. Likewise, misstatements contained in an online article were identified and clarified in the prospectus and in the Company’s Free Writing Prospectus, which was filed with the SEC on September 26, 2022. Courts have held that, in general, buyers are charged as a matter of law with having reviewed the prospectus. Furthermore, the Company intends to vigorously defend any rescission claims by purchasers.

In view of the foregoing factors and analysis, the Company concluded that the likelihood of experiencing a material loss in connection with potential rescission claims is not probable. The Company acknowledges, however, that a contingent liability arising from the rescission rights of investors who purchase shares in this offering (including investors who purchase shares from the selling shareholders), is reasonably possible. Therefore, pursuant to ASC 450-20, the Company is required to disclose the nature of the contingency and an estimate of the possible range of loss (or state the fact that an estimate cannot be made), but is not required to accrue a contingent liability in connection with such potential rescission claims. An estimated range of loss from this contingent liability cannot be reasonably made given that the offering has not yet occurred and there’s been no indication that any of the potential purchasers would in fact file suit claiming rescission and succeed.

10. COMMITMENTS AND CONTINGENCIES

Leases The Company leases certain office facilities. Certain leases provide the Company with the option to renew for additional periods. The exercise of lease renewal options is at the Company’s sole discretion, and the Company has only included renewal options in the lease term when the Company can be reasonably certain that it will exercise the renewal options.

For the year ended December 31, 2022, and the period ended December 31, 2021, the components of lease expenses were recognized as selling, general and administrative expenses in the consolidated statement of operations and comprehensive loss. The lease payments were paid in cash.

	Year Ended December 31, 2022		Period Ended December 31, 2021
Operating lease costs	$	128,983	$	25,424

The weighted-average remaining lease term for the Company’s operating leases ranges from approximately three to four years as of December 31, 2022. The weighted-average discount rate for the Company’s operating lease was 10% as of December 31, 2022.

As of December 31, 2022, the Company has no operating or financing leases that have not yet commenced.

The future maturities of the contractual lease payments included in the operating lease liabilities as of December 31, 2022, are as follows:

For the Year Ended December 31, 2022:	Total
2023	$	80,313
2024		66,254
2025		38,136
2026		38,136
2027		9,534
Total		232,373
Less: amount representing interest		(35,793	)
Total	$	196,580

Litigation The Company is subject to certain legal proceedings and claims that arise in the normal course of business. The Company does not believe that the amount of liability, if any, as a result of these proceedings and claims will have a materially adverse effect on the Company’s financial position, results of operations, and cash flows.

In the past 24 months several of the Company’s representatives have been part of interviews that were recorded on podcasts or in articles discussing their own experiences and the Company. The interviews were directed at persons interested in health, wellness, spirituality and the potential benefits of products the Company sells or expects to sell. The interviews were not directed at prospective investors and made no mention of a possible initial public offering by the Company.

To the extent that certain statements in the podcasts and articles may have violated Section 5 and were inaccurate, unsubstantiated, misleading, or contradicted disclosures in the prospectus, those statements have now been specifically set forth in Exhibit 99.1 to the registration statement, the problem with each of those statements has been identified and such statements have been specifically and thoroughly corrected, refuted or contradicted, as applicable. The prospectus now sets forth the correct information for any investor who might have otherwise relied on statements contained in the podcasts or articles. Likewise, misstatements contained in an online article were identified and clarified in the prospectus and in the Company’s Free Writing Prospectus, which was filed with the SEC on September 26, 2022. Courts have held that, in general, buyers are charged as a matter of law with having reviewed the prospectus. Furthermore, the Company intends to vigorously defend any rescission claims by purchasers.

In view of the foregoing factors and analysis, the Company concluded that the likelihood of experiencing a material loss in connection with potential rescission claims is not probable. The Company acknowledges, however, that a contingent liability arising from the rescission rights of investors who purchase shares in this offering (including investors who purchase shares from the selling shareholders), is reasonably possible. Therefore, pursuant to ASC 450-20, the Company is required to disclose the nature of the contingency and an estimate of the possible range of loss (or state the fact that an estimate cannot be made), but is not required to accrue a contingent liability in connection with such potential rescission claims. An estimated range of loss from this contingent liability cannot be reasonably made given that the offering has not yet occurred and there’s been no indication that any of the potential purchasers would in fact file suit claiming rescission and succeed.

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SHAREHOLDERS’ EQUITY

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

SHAREHOLDERS’ EQUITY

11. SHAREHOLDERS’ EQUITY

As discussed in Note 9, during the six months ended June 30, 2023, the Company closed a non-brokered private placement of convertible secured promissory notes with a principal amount of $3,098,971, and 3,098,971 Series 1 Shares. The holders of Series 1 Shares may convert the Series 1 Shares to Common Shares at any time, and the Series 1 Shares will automatically be converted to Common Shares upon an initial public offering. The number of Common Shares issued upon conversion will be equal to (1) the number of Series 1 Shares converted (multiplied by 60% if the initial public offering occurs within six months of the issuance of the Series 1 Shares), divided by (2) the conversion price. The conversion price is the lesser of (1) $6.00, and (2) (if applicable) the greater of (a) 80% of the initial public offering price and (b) $3.00.

11. SHAREHOLDERS’ EQUITY

Preferred Shares The Company’s certificate of incorporation authorizes the issuance of an unlimited number of Preferred Shares, without nominal or par value. Holders of Preferred Shares are entitled to receive dividends, if and when declared by the Company, and to share ratably in the Company’s assets legally available for distribution to shareholders in the event of liquidation. As of December 31, 2022, there were no Preferred Shares issued and outstanding.

Preferred Share Dividends The holders of Preferred Shares are entitled to receive dividends when and if declared by the Company. The dividends are cumulative and as of December 31, 2022, there were no undeclared accumulated preferred share dividends.

Preferred Share Liquidation In the event of any liquidation, dissolution or winding-up of the Company, the holders of Preferred Shares are entitled to preference over holders of Common Share or any other shares of the Company ranking by their terms junior to the Preferred Shares with respect to payment of dividends and the distribution of assets or return of capital.

Preferred Share Voting Rights No holder of Preferred Shares shall be entitled to vote on any matter submitted to a vote of shareholders.

Common Shares The Company’s certificate of incorporation authorizes the issuance of an unlimited number of Common Shares, without nominal or par value. As of December 31, 2022, there were 6,351,354 Common Shares issued and outstanding.

Common Voting Rights Each shareholder of Common Shares shall be entitled to one vote for each share of Common Shares held at all meetings of the Company’s shareholders. Holders of Common Shares are entitled to receive dividends, if and when declared by the Company, and to receive the remaining property of the Company upon dissolution.

On March 4, 2021, the Company issued 1,003,012 Common Shares of First Person at a price of CAD$2.00 per share for aggregate gross proceeds of CAD$2,006,022 ($1,616,838 USD).

On July 14, 2021, the Company issued 1,001,242 Units of First Person at a price of CAD$3.50 per Unit for aggregate gross proceeds of CAD$3,504,346 ($2,781,593 USD). Each Unit consists of one Common Share and one half of one warrant (“Warrant”). The issuance resulted in 500,620 Warrants. Each Warrant entitles the holder to acquire one Common Share upon payment of the exercise price prior to the expiration time.

On February 2, 2022, the Company issued 196,400 Common Shares of First Person at a price of $5.00 per share for aggregate gross proceeds of $982,000.

On March 4, 2022, the Company issued 178,100 Common Shares of First Person at a price of $5.00 per share for aggregate gross proceeds of $890,500. In addition, the Company issued 10,000 Common Shares of First Person for the conversion of accounts payable in the amount of $50,000.

On April 20, 2022, the Company issued 162,600 Common Shares for gross proceeds of $813,000.

On April 21, 2022, the Company effected a consolidation (the “Consolidation”) of all outstanding Common Shares, as approved by the Company’s shareholders at a meeting of the shareholders held on December 15, 2021, with a consolidation ratio of one post-Consolidation Common Share for every ten pre-Consolidation Common Shares outstanding prior to the effective date of the Consolidation. As a result of the Consolidation, each ten pre-Consolidation Common Shares outstanding prior to the effective date of the Consolidation were automatically consolidated into one post-Consolidation Common Share without any action on the part of the holders, and the number of outstanding Common Shares was reduced from 63,513,530 Common Shares to 6,351,354 Common Shares.

Equity Incentive Plan On March 31, 2021, the Company adopted an equity compensation plan (the “Plan”) pursuant to which the Company’s Board of Directors may grant awards, including stock options, restricted stock, restricted stock units, stock appreciation rights, performance awards, and other stock-based awards, to certain directors, officers, employees, or consultants of the Company. The Plan authorizes grants consisting of the Company’s authorized but unissued Common Shares.

The maximum number of Common Shares reserved for issuance under the Plan shall not exceed 10% of the then issued and outstanding Common Shares on a rolling basis. Common Shares available under the Plan may be used for options or any other awards. The terms and conditions of an award granted would be set forth in an award agreement on an individual basis approved by the Company’s Board of Directors. Vesting and exercise of awards would be conditioned upon reasonable conditions such as term of employment (“Time Options”). Time Options generally vest based on three years of continuous service and have five-year contractual terms.

For grants for which vesting is deemed probable, the Company recognizes stock-based compensation expense pro-rata over the vesting period for each non-employee option agreement.

The Company accounts for any forfeitures of options when they occur. In addition, previously recognized stock-based compensation expense for a non-vested award is reversed in the period that the award is forfeited.

On March 22, 2022, the Company adopted a long term incentive plan (“LTIP”), pursuant to which the Board of Directors may, from time to time, create and issue incentive stock options to directors, officers, employees, and consultants of the Company.

Time Options

As of December 31, 2022, 350,883 Time Options had vested under the Plan.

The Company estimated the fair value of each stock option award on the date of grant using a Black-Scholes option-pricing model based on the following weighted average assumptions applied:

	Year ended December 31, 2022			Period ended December 31, 2021
Risk-free interest rate		2.67	%		0.09% - 0.56	%
Expected term		3.5 years			2.5 - 3.5 years
Expected average stock price volatility		183.1	%		106.8% -120.9	%
Expected dividend yield		0.00	%		0.00	%
Weighted average grant-date fair value of stock options	$	4.58		$	1.36 - $1.87

A summary of option activity for the year ended December 31, 2022 is presented below. There was no option activity for the period ended December 31, 2021.

					Weighted
					Average
			Weighted		Remaining
			Average		Contractual
	Number of		Exercise		Term		Intrinsic
	Options		Price		(in Years)		Value
Balance, December 31, 2021		475,000	$	1.90		4.41	$	288,788
Granted		140,000		5.00				-
Exercised		-		-		-		-
Forfeited		-		-		-		-
Expired		-		-
Balance, December 31, 2022		615,000	$	2.59		3.61	$	1,480,457

A summary of unvested options for the year ended December 31, 2022, is presented below:

				Weighted
				Average Grant
	Number of			Date Fair Value
	Options			Per Share
Unvested balance, December 31, 2021		292,500		$	1.80
Granted		140,000			5.00
Vested		(155,000	)		1.76
Forfeited or expired		-			-
Exercised		-			-
Unvested balance, December 31, 2022		277,500		$	3.44

The Company recognized $498,450 (2021 - $355,334) of share-based compensation expense for the year ended December 31, 2022, which is included in selling, general and administrative expenses in the consolidated statement of operations and comprehensive loss. As of December 31, 2022, $583,913 of unrecognized compensation expense remained under the Plan related to unvested Time Options.

Warrants On July 14, 2021, the Company issued 1,001,242 Units of First Person at a price of CAD $3.50 per Unit for aggregate gross proceeds of up to CAD$3,504,346. Each Unit consists of one Common Share and one half of one (“Warrant”). The issuance resulted in 500,620 Warrants. Each Warrant entitles the holder to acquire one Common Share upon payment of the exercise price prior to the expiration time.

The Company used the following approximate assumptions in connection with its estimation of fair value of Warrants:

For the Year Ended December 31, 2021:
Expected term (years)	2.00
Expected volatility	91.05	%
Risk free interest rate	0.23	%
Expected dividends	0.00	%

A summary of the warrant activity during the period from January 21, 2021 (date of inception) through December 31, 2022 is presented below:

					Weighted
			Weighted		Average
			Average		Remaining
	Number of		Exercise		Life
	Warrants		Price		(in Years)
Balance, January 21, 2021		-	$	-		-
Issued		500,620		4.00		-
Exercised		-		-		-
Forfeited or expired		-		-		-
Balance, December 31, 2021		500,620	$	4.00		0.7
Issued		-		-		-
Exercised		-		-		-
Forfeited or expired		-		-		-
Balance, December 31, 2022		500,620	$	4.00		0.7

The following table presents information related to warrants as of December 31, 2022:

	Warrants Outstanding				Warrants Exercisable
					Weighted
					Average
			Outstanding		Remaining		Exercisable
	Exercise		Number of		Life in		Number of
	Price		Warrants		Years		Warrants
Balance, December 31, 2022	$	4.00		5,006,204		0.7		5,006,204

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INCOME TAXES

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

12. INCOME TAXES

Pre-tax book losses for domestic (Canada) and foreign (the U.S.) jurisdictions are as follows:

	Year ended		Period ended
	December 31, 2022		December 31, 2021
Domestic	$	1,991,286	$	1,295,736
Foreign	$	3,401,146	$	1,625,589

The provision for income taxes is as follows:

	Year ended		Period ended
	December 31, 2022		December 31, 2021
Current:
US Federal	$	-	$	-
Canada		-		-
Total current		-		-
Deferred:
US Federal		-		-
Canada		-		-
Total deferred		-		-
Provision for income taxes	$	-	$	-

Deferred income taxes are to be recognized on the expected future tax consequences of temporary differences between book and tax bases of assets and liabilities.

The reconciliation of the expected federal statutory income tax rate to the effective income tax rate is as follows:

	Year ended			Period ended
	December 31, 2022			December 31, 2021
Canadian statutory income tax rate		23.00	%		23.00	%
US state income taxes		3.15	%		-
Prior period adjustments		(0.16	)%		-
Entertainment		(0.01	)%		(0.03	)%
US federal rate differential		(1.26	)%		(1.11	)%
Valuation allowance		(22.60	)%		(19.06	)%
Stock-based compensation		(2.12	)%		(2.80	)%
Total		0.00	%		0.00	%

In 2022 and 2021, the Canadian corporate statutory rate of 23% is being used due to the reporting entity being domiciled in Canada.  In 2022 and 2021, the difference between the statutory and effective tax rate is due primarily to the application of a full valuation allowance against the deferred tax assets, Canadian stock-based compensation treatment, and income tax rate differences between Canadian and US jurisdictions.   

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows:

As of December 31,	2022			2021
Deferred tax assets:
Start-up costs	$	149,746		$	228,309
Net operating loss		1,734,528			329,133
Total deferred tax assets		1,884,274			557,443
Deferred tax liabilities:
Acquisition costs		(7,961	)		-
Depreciation expense		(26,181	)		-
Total deferred tax liabilities:		(34,142	)		-
Less: valuation allowance		(1,850,132	)		(557,443	)
Net deferred taxes	$	-		$	-

As of December 31, 2022, $4,429,438 (2021 - $534,091) of U.S. federal net operating losses, $4,429,438 of U.S. state net operating losses, and $2,534,234 (2021 - $943,365) of Canadian net operating losses were available to the Company to offset future taxable income. The U.S. federal net operating losses will carryforward indefinitely and the Canadian net operating losses shall begin to expire in 2041. The U.S. state net operating losses generally start expiring in 20 years.

The Company may recognize the tax benefits from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of December 31, 2022 and 2021, the Company did not identify any uncertain tax positions that have a more likely than not chance of not being sustained upon examination by the tax authorities.

The Company has a December 31 tax year-end. The U.S. federal, U.S. state and Canadian income tax returns of the Company are subject to examination by various tax authorities, generally for three years after they are filed.

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RELATED PARTIES

12 Months Ended

Dec. 31, 2022

Related Party Transactions [Abstract]

RELATED PARTIES

13. RELATED PARTIES

During the year and period ended December 31, 2022, the Company incurred approximately $1.6 million of expenses related to digital advertising and other business expenses that were paid by employees on the Company’s behalf and subject to expense reporting and reimbursement. As of December 31, 2022, related party balances owed for such arrangements totaled $686,476. Primary items included the following:

● $643,407 due to Cory Rosenberg for digital advertising expenses including Meta, Google, and TikTok;

● $29,435 due to Andrew Roda for digital advertising expenses including Meta, Google, and TikTok;

● $1,278 due to the remaining First Person, Inc employees for regular course of business expenses incurred by the employees and invoiced for reimbursement during monthly expense reporting; and

● $12,356 due to Darcy Campbell for regular business expenses and company costs incurred by employee to be reimbursed during monthly expense reporting.

During the year ended December 31, 2021, the Company loaned $50,500 to related parties, all of which had been repaid as of December 31, 2021. The related parties were two of the four INC Purchasers (see Note 1).

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SUBSEQUENT EVENTS

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

13. SUBSEQUENT EVENTS

The Company has evaluated subsequent events that have occurred from July 1, 2023 through the date that these consolidated financial statements were issued, and determined that there were no subsequent events or transactions that required recognition or disclosure in the consolidated financial statements, except as described below.

On July 19, 2023, the Company entered into a merchant loan agreement with Cloudfund LLC, for proceeds of $199,774 and a repayment amount of $276,040 (cost of borrowing $76,266). The repayments are made to Cloudfund LLC at a rate of 4% of the Company’s daily receipts for the sale of goods and services until the repayment amount has been fully settled.

On July 21, 2023, the Company entered into a merchant loan agreement with WebBank, on behalf of Shopify Inc., for proceeds of $260,000 and a repayment amount of $283,400 (cost of borrowing $23,400). The repayments are made to Shopify Inc. at a rate of 17% of the Company’s daily sales amounts until the repayment amount has been fully settled.

On August 31, 2023, the Company entered into a merchant loan agreement with Curve Capital LLC, for proceeds of $225,000 and a repayment amount of $306,000 (cost of borrowing $81,000). The repayments are made to Curve Capital LLC at a rate of 6.12% of the Company’s daily receivables until the repayment amount has been fully settled.

On September 7, 2023, the Company closed a non-brokered private placement of convertible secured promissory notes in the aggregate principal amount of $239,130 and 239,129 Preferred Shares, Series 1 to accredited investors for gross proceeds of approximately $220,000.

14. SUBSEQUENT EVENTS

The Company has evaluated subsequent events that have occurred from December 31, 2022, through the date that these consolidated financial statements were issued, and determined that there were no subsequent events or transactions that required recognition or disclosure in the consolidated financial statements, except as described below.

On January 3, 2023, the Company closed a non-brokered private placement of convertible secured promissory notes in the aggregate principal amount of $764,130 and 764,124 Preferred Shares, Series 1 to accredited investors for gross proceeds of approximately $703,000. This private placement included the issuance of a convertible secured promissory note in the principal amount of $271,739 and 271,739 Series 1 Shares to Cory J. Rosenberg, the Company’s Chairman, Chief Executive Officer, and President, in exchange for $250,000.

On January 9, 2023, the Company closed a non-brokered private placement of convertible secured promissory notes in the aggregate principal amount of $616,304 and 616,303 Preferred Shares, Series 1 to accredited investors for gross proceeds of approximately $567,000. This private placement included the issuance of a convertible secured promissory note in the principal amount of $100,000 and 100,000 Series 1 Shares to Darcy A. Campbell, the Company’s Chief Financial Officer, in exchange for $92,000.

On January 10, 2023, the Company paid $35,000 as partial payment of the amount owed under the promissory note issued in connection with its acquisition of TruMed (Note 1) from its shareholders (the “TruMed Sellers”), and the Company and the TruMed Sellers amended the promissory note to provide for a new principal amount of $37,868, which shall be payable on or before the earlier of (i) April 30, 2023 and (ii) the date on which the Company completes an initial public offering of securities on a “designated exchange” within the meaning of Canadian securities legislation.

On February 6, 2023, the Company closed a non-brokered private placement of convertible secured promissory notes in the aggregate principal amount of $368,543 and 368,543 Preferred Shares, Series 1 to accredited investors for gross proceeds of approximately $339,060.

On March 31, 2023, the Company closed a non-brokered private placement of convertible secured promissory notes in the aggregate principal amount of $1,350,000 and 1,350,001 Preferred Shares, Series 1 to accredited investors for gross proceeds of approximately $1,242,000.

On April 28, 2023, the Company paid to the TruMed Sellers the remaining $37,868, plus accrued interest, of the promissory note related to the TruMed acquisition.

(Unaudited)

On May 18, 2023, the Company entered into a merchant loan agreement with WebBank, on behalf of Shopify Inc., for proceeds of $410,000 and a repayment amount of $451,000 (cost of borrowing $41,000). The repayments are made to Shopify Inc. at a rate of 17% of the Company’s daily sales amounts until the repayment amount has been fully settled.

On June 8, 2023, the Company entered into a merchant loan agreement with Fundonatic, for proceeds of $225,000 and a repayment amount of $292,500 (cost of borrowing $67,500). Daily repayments in the amount of $1,950 are made to Fundonatic.

On June 8, 2023, the Company entered into a merchant loan agreement with Click Capital Group LLC, for proceeds of $225,000 and a repayment amount of $292,500 (cost of borrowing $67,500). Daily repayments in the amount of $1,950 are made to Click Capital Group LLC.

On June 28, 2023 the Company extended the expiry date on the 500,620 warrants from July 14, 2023 to January 14, 2024.

On July 19, 2023, the Company entered into a merchant loan agreement with Cloudfund LLC, for proceeds of $199,774 and a repayment amount of $276,040 (cost of borrowing $76,266). The repayments are made to Cloudfund LLC at a rate of 4% of the Company’s daily receipts for the sale of goods and services until the repayment amount has been fully settled.

On July 21, 2023, the Company entered into a merchant loan agreement with WebBank, on behalf of Shopify Inc., for proceeds of $260,000 and a repayment amount of $283,400 (cost of borrowing $23,400). The repayments are made to Shopify Inc. at a rate of 17% of the Company’s daily sales amounts until the repayment amount has been fully settled.

On August 31, 2023, the Company entered into a merchant loan agreement with Curve Capital LLC, for proceeds of $225,000 and a repayment amount of $306,000 (cost of borrowing $81,000). The repayments are made to Curve Capital LLC at a rate of 6.12% of the Company’s daily receivables until the repayment amount has been fully settled.

On September 7, 2023, the Company closed a non-brokered private placement of convertible secured promissory notes in the aggregate principal amount of $239,130 and 239,129 Preferred Shares, Series 1 to accredited investors for gross proceeds of approximately $220,000.

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CONVERTIBLE DEBENTURES

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

CONVERTIBLE DEBENTURES

9. CONVERTIBLE DEBENTURES

As of:	June 30, 2023		December 31, 2022
Convertible Debenture	$	2,099,174	$	-

During the six months ended June 30, 2023, the Company closed a non-brokered private placement of convertible secured promissory notes with a principal amount of $3,098,971, and 3,098,971 Series 1 Shares. The Company received net proceeds of approximately $2,833,081. Of the $2,833,081 net proceeds, $1,863,945 was allocated to the convertible notes, and $969,136 was allocated to the Series 1 Shares, based on their relative fair values at issuance.

The convertible notes are due as follows: 50% is due 30 days after a Qualifying Transaction (that is, a merger, sale of the Company, initial public offering, or sale of equity instruments with gross proceeds of at least $3,000,000), and 50% is due the earlier of 90 days after a Qualifying Transaction or one year after issuance. The convertible notes bear interest at 8%, or 10% if the lender elects to receive interest payments in kind. The lenders may convert the convertible notes to Common Shares at any time at a conversion price of $6.00.

If an event of default shall occur and be continuing, lenders holding greater than 50% of the aggregate principal amount of the convertible notes outstanding at such time may declare all the convertible notes to be in default, at which point the principal amount outstanding on the date of such written notice shall increase to 125% of the principal amount then outstanding, and the interest rate shall increase to 15% or the maximum rate permitted under applicable law until such event of default is cured, if capable of being cured. Additionally, if an event of default has occurred and is continuing without cure, at the end of each calendar month thereafter until the event of default has been cured, the lenders shall be entitled to sweep the cash received in the bank accounts of the Company and its subsidiaries in an aggregate amount equal to 20% of the consolidated revenue of the Company and its subsidiaries during such calendar month.

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SHARE-BASED PAYMENTS

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

SHARE-BASED PAYMENTS

12. SHARE-BASED PAYMENTS

As of June 30, 2023, 492,492 Time Options had vested under the Plan. During the six months ended June 30, 2023, there were no options or other share awards granted.

A summary of option activity for the six months ended June 30, 2023 is presented below.

					Weighted
					Average
			Weighted		Remaining
			Average		Contractual
	Number of		Exercise		Term		Intrinsic
	Options		Price		(in Years)		Value
Balance, December 31, 2022		615,000	$	2.59		3.61	$	1,480,457
Granted		-		-		-		-
Exercised		-		-		-		-
Forfeited		25,833		3.92		-		-
Expired		-		-		-		-
Balance, June 30, 2023		589,167	$	2.53		3.10	$	1,747,194

A summary of unvested options for the six months ended June 30, 2023 is presented below:

			Weighted
			Average Grant
	Number of		Date Fair Value
	Options		Per Share
Unvested as of December 31, 2022		290,834	$	3.13
Granted		-		-
Vested		168,333		2.61
Forfeited or expired		21,666		3.43
Exercised		-		-
Unvested as of June 30, 2023		100,835	$	3.95

The Company recognized $212,609 and $262,034 of non-employee share-based compensation expense for the six months ended June 30, 2023 and 2022, respectively, which is included in selling, general and administrative expenses in the consolidated statement of operations and comprehensive loss.

As of June 30, 2023, $324,574 of unrecognized compensation expense remained under the Plan related to unvested non-employee Time Options.

Warrants On July 14, 2021, the Company issued 1,001,242 Units of First Person at a price of CAD$3.50 per Unit for aggregate gross proceeds of CAD$3,504,346. Each Unit consists of one Common Share and one half of one Warrant. The issuance resulted in 500,620 Warrants. Each Warrant entitles the holder to acquire one Common Share upon payment of the exercise price prior to the expiration time.

The Company used the following approximate assumptions in connection with its estimation of fair value of Warrants:

	Assumptions
Expected term (years)	2.00
Expected volatility	91.05	%
Risk free interest rate	0.23	%
Expected dividends	0.00	%

A summary of the warrant activity during the six months as of June 30, 2023 is presented below. There was no warrant activity for the six months ended June 30, 2022:

					Weighted
			Weighted		Average
			Average		Remaining
	Number of		Exercise		Life
	Warrants		Price		(in Years)
Balance, December 31, 2022		500,620	$	4.00		0.54
Issued		-		-		-
Exercised		-		-		-
Forfeited or expired		-		-		-
Balance, June 30, 2023		500,620	$	4.00		0.58

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Accounting Policies [Abstract]

Method of Accounting

Method of Accounting The Company maintains its accounting records under the accrual method of accounting in conformity with US GAAP, where revenues and expenses are recorded as earned and incurred, respectively.

Principles of Consolidation

Principles of Consolidation The accompanying consolidated financial statements include the accounts of First Person and INC. All significant intercompany balances and transactions have been eliminated upon consolidation.

Foreign Currency

Foreign Currency In accordance with FASB ASC Topic 830, Foreign Currency Matters, the Company has determined the functional currency of First Person is the Canadian dollar. The Company translates the financial statements of First Person to U.S. dollars using month-end exchange rates for assets and liabilities, and average exchange rates for revenues and expenses. Translation gains and losses are recorded in accumulated other comprehensive loss as a component of shareholders’ equity.

Use of Estimates

Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, certain disclosures at the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates affecting the consolidated financial statements have been prepared on the basis of the most current and best available information. Significant items subject to such estimates and assumptions include grant date fair values of equity awards and valuation allowance for deferred income taxes. However, actual results from the resolution of such estimates and assumptions may vary from those used in the preparation of the consolidated financial statements.

Cash and Cash Equivalents

Cash and Cash Equivalents The Company considers all short-term, highly liquid, unrestricted investments with original maturities of three months or less, to be cash equivalents.

Inventory

Inventory Inventory consists of raw materials such as inputs for functional mushroom, packaging materials, and finished goods inventory, which were the Company’s three direct-to-consumer products: Sunbeam^TM, Golden Hour^TM, and Moonlight^TM that are stated at the lower of cost or net realizable value. Net realizable value is determined based on the estimated selling price less reasonably predictable cost of completion, disposal, and transportation. The Company values inventory on a FIFO basis depleting inventory in the order in which it was received. The Company evaluates the need for inventory reserves associated with obsolete, slow-moving, and non-sellable inventory by reviewing estimated net realized values on a periodic basis. As of December 31, 2022, the Company did not have a reserve for obsolescence.

Financial Instruments and Concentrations of Business and Credit Risk

Financial Instruments and Concentrations of Business and Credit Risk Financial instruments that potentially subject the Company to concentrations of business and credit risks consist of cash and cash equivalents.

The Company maintains cash balances that can, at times, exceed amounts insured by the Federal Deposit Insurance Corporation. The Company has not experienced any losses in these accounts and believes it is not exposed to any significant credit risk in this area.

Property and Equipment

Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization expense is calculated using the straight-line method over the estimated useful lives of the related assets, which is approximately five years for computer equipment.

Betterments, renewals, and extraordinary repairs that materially extend the useful life of the asset are capitalized; other repairs and maintenance charges are expensed as incurred. The cost and related accumulated depreciation or amortization applicable to assets retired are removed from the accounts and the gain or loss on disposition, if any, is recognized in the accompanying consolidated statement of operations and comprehensive loss.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets In accordance with FASB ASC Topic 360, Property, Plant, and Equipment, long-lived assets such as property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is recognized on long-lived assets when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of the assets. In such cases, the carrying value of these assets are adjusted to their estimated fair value and assets held for sale are adjusted to their estimated fair value less estimated selling expenses.

No impairment losses of long-lived assets were recognized for the period ended December 31, 2021, and the year ended December 31, 2022.

Website Development Costs

Website Development Costs The Company recognizes website development costs in accordance with ASC 350-50, Accounting for Website Development Costs. As such, the Company expenses all costs incurred that relate to the planning and post implementation phases of development of its website. Direct costs incurred in the development phase are capitalized and recognized over the estimated useful life (see Note 8). Costs associated with operating the website are expensed as incurred.

Advertising

Advertising Advertising costs are expensed as incurred. Advertising expenses for the year ended December 31, 2022, and the period ended December 31, 2021, amounted to $2,312,451 and $24,337, respectively, and are included in selling, general and administrative expenses on the accompanying consolidated statement of operations and comprehensive loss.

Income Taxes

Income Taxes The Company accounts for income taxes under FASB ASC Topic 740, Accounting for Income Taxes. As part of the process of preparing the consolidated financial statements, the Company is required to estimate an income tax provision (benefit) in each of the jurisdictions in which it operates. This process involves estimating the current income tax provision (benefit) together with assessing temporary differences resulting from differing items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within the consolidated balance sheets. The Company provides a valuation allowance against its deferred tax assets when circumstances indicate that it will, more likely than not, no longer be realized.

INC accounts for income taxes in accordance with FASB ASC 740-10, Accounting for Uncertainty in Income Taxes (“ASC 740-10”). The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain tax position will not be recognized if it has less than 50 percent likelihood of being sustained.

INC is a Delaware C corporation and is subject to taxation and files income tax returns in the United States. Since inception, INC tax returns are subject to examination by taxing authorities, and no examinations are currently pending.

As of December 31, 2021, INC does not have any unrecognized tax benefits. INC does not anticipate any material changes to its unrecognized tax benefits within the next twelve months.

On December 27, 2020, the United States enacted the Consolidated Appropriations Act which extended many of the benefits of the CARES Act that were scheduled to expire. The Company is evaluating the impact of the Consolidated Appropriations Act on its consolidated financial statements and related disclosures.

Lease Accounting

Lease Accounting In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02” or “ASC 842”). ASC 842 establishes a right-of-use (ROU) model that requires a lessee to record an ROU asset and a lease liability, measured on a discounted basis, on the balance sheets for all leases with terms greater than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statements of income. Effective January 21, 2021 (date of inception), the Company adopted ASC 842 for all leases existing at the date of adoption. The Company has made an accounting policy election to not recognize right of use assets or lease liabilities for leases with an initial term of twelve months or less, and recognizes the related expense in the accompanying consolidated statement of operations and comprehensive loss on a straight-line basis over the lease term.

Under ASC 842, the Company determines if an arrangement is a lease at inception. If an arrangement contains a lease, an operating or finance ROU asset and obligation are recognized at the commencement date based on the present value of lease payments over the lease term. That ROU asset and obligation represent the Company’s right to use an underlying asset for the lease term and the Company’s obligation to make lease payments arising from the lease, respectively. The ROU asset recorded includes any prepaid lease payments made and excludes lease incentives received. The Company’s lease terms include options to extend the lease for a total of two renewal periods with each term being two years which may be exercised by giving written notice to lessor no less than sixty days prior to the expiration of the current lease or renewal period. The lease renewal terms were recognized as part of the Company’s ROU assets and lease liabilities.

Lease expense for lease payments and amortization expense for the ROU assets are recognized on a straight-line basis over the lease term and are included in selling, general and administrative expenses in the accompanying statement of operations and comprehensive loss.

There was no impact of adopting FASB ASC 842 on the accompanying statements of changes in shareholders’ equity as of January 21, 2021 (date of inception).

Share-based Compensation

Share-based Compensation In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) – Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). The amendments in ASU 2018-07 expand the scope of FASB ASC 718, Compensation – Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. Upon adoption, entities shall be required to apply FASB ASC 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. FASB ASU 2018-07 is effective for private entities for fiscal years beginning after December 15, 2019, with early adoption permitted, but no earlier than an entity’s adoption date of FASB ASC 606, Revenue from Contracts with Customers (“ASC 606”). The Company adopted FASB ASC 2018-07 effective January 21, 2021 (date of inception). In accordance with ASU 2018-07, the Company records its share-based payments at the estimated grant date fair value over the service period for equity-classified awards granted to nonemployees in the same period and in the same manner as if the Company paid cash for the goods or services. In addition, the Company has elected to account for forfeitures when they occur in accordance with FASB ASC 718-10-35-3. The calculation of expected term is based on the “simplified” method described in Staff Accounting Bulletin (“SAB”) Topic 14, Share-Based Payment. SAB Topic 14 provides a simplified method for estimating the expected term for “plain vanilla” options if a company does not have sufficient appropriate exercise data on which to base its own estimate or exercise data relating to employees of comparable companies is not easily obtainable. The risk-free interest rate is based on the U.S. Treasury yield at the date of grant for an instrument with a maturity that is commensurate with the expected term of the stock options. The dividend yield is zero since the Company has never paid cash dividends on its common shares and has no present intention to pay cash dividends. Options granted under the Company’s Equity Incentive Plan generally vest generally vest based on three years of continuous service and have five-year contractual terms (see Note 12).

Revenue Recognition

Revenue Recognition The Company recognizes revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company’s revenue consists exclusively of its direct-to-consumer sales of cognitive supplements sold primarily throughout the United States.

In order to recognize revenue under FASB ASU 2014-09, the Company applies the following five steps:

● Identification of customer contracts;

● Identification of the performance obligation(s) in the contract to transfer goods or provide services to a customer;

● Determination of the transaction price the Company expects to be entitled to in exchange for transferring promised goods or services to a customer;

● Allocation of the transaction price to the performance obligation(s) in the contract; and

● Recognition of revenue when or as the Company satisfies the performance obligation(s).

The Company’s contracts with customers for the cognitive supplements and other related products consist of single performance obligations. The performance obligation in a contract is determined based on each individual order and the respective quantities shipped, with revenue being recognized at a point in time when obligations under the terms of the agreement are satisfied. This generally occurs with the transfer of control when the product is shipped to the customer.

The amount of revenue recognized is reduced for estimated returns and other customer credits, such as discounts and rebates, based on the expected value to be realized. Payment terms are consistent with terms standard to the markets the Company serves.

The Company recognizes revenue when our inventory is shipped to our customers. We recognize revenue gross of amounts payable to our third-party co-packers and other third-party suppliers for the following reasons. First, we bear primary responsibility for fulfilling our performance obligations and for the acceptability of our product. Our customers purchase goods from our website, which bears the Company’s name, and agree to our terms and conditions. Our customers do not enter into separate contracts with any of our third-party suppliers. Second, we bear inventory risk, as we purchase and store our inventory prior to shipping it to customers, and are subject to risk of loss if the inventory is damaged or becomes obsolete. Third, we have discretion in establishing prices charged to our customers, as we determine the price at which our products are offered to customers on our website, independently of prices charged by our third-party suppliers.

Revenue received from shipping and handling fees is reflected in net sales. The Company has elected to classify shipping and handling costs in selling, general and administrative expenses and recognizes them at the time revenue is recognized for the related goods. The Company has also elected to recognize revenue net of sales taxes and similar taxes that are imposed on and concurrent with revenue producing activities. The Company has elected to use the practical expedient for significant financing components allowed under ASU 2014-09, such that if the period between revenue recognition and cash receipt for a particular contract is expected to be a year or less, no interest income is recognized and the full amount of revenue appropriate under the contract is recognized at the time the performance obligation is met.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements There is no anticipated impact from recently issued accounting pronouncements to the Company’s interim consolidated financial statements.

Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13 Topic 326, Financial Instruments - Credit Losses (“ASU 2016-13”), which in conjunction with subsequent amendments issued by FASB amends the FASB’s guidance on the impairment of financial instruments. The ASU adds to US GAAP an impairment model (known as the “current expected credit loss model”) that is based on expected losses rather than incurred losses. For public companies, ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2021. In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326): Effective Date for Certain Entities (“ASU 2019-10”). The amendments of ASU 2019-10 defer the effective date of ASU 2016-13 for certain entities by one year. Private companies should apply the guidance in ASU 2016-13 to annual reporting periods beginning after December 15, 2022. Early adoption is permitted. The Company is currently in the process of evaluating the potential impact of this new accounting guidance, which is effective for the Company beginning on January 1, 2023, although early adoption is permitted.

Unaudited Interim Financial Statements

Unaudited Interim Financial Statements The consolidated balance sheet as of June 30, 2023, the consolidated statements of operations and comprehensive loss, the consolidated statements of changes in shareholders’ equity (deficit), and the consolidated statements of cash flows for the six months ended June 30, 2023 and 2022, as well as other information disclosed in the accompanying notes, are unaudited. The consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements as of that date. The interim consolidated financial statements and the accompanying notes should be read in conjunction with the annual consolidated financial statements and the accompanying notes for the year ended December 31, 2022.

The interim consolidated financial statements and the accompanying notes have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the results of operations for the periods presented. The consolidated results of operations for any interim period are not necessarily indicative of the results to be expected for the full year or for any other future years or interim periods.

The Company’s significant accounting policies are described in Note 2 to the Company’s consolidated financial statements as of December 31, 2022. There have been no material changes to the Company’s significant accounting policies.

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INVENTORIES (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Inventory Disclosure [Abstract]

SCHEDULE OF INVENTORY

A summary of inventories is as follows:

As of:	June 30, 2023		December 31, 2022
Raw materials	$	263,800	$	176,440
Work in process		-		-
Finished goods		1,021,030		836,359
Inventory	$	1,284,830	$	1,012,799

A summary of inventories is as follows:

As of:	December 31, 2022		December 31, 2021
Raw materials	$	176,440	$	97,636
Work in process		-		-
Finished goods		836,359		-
Inventory	$	1,012,799	$	97,636

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PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Prepaid Expenses And Other Current Assets

SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist of the following:

As of:	June 30, 2023		December 31, 2022
Prepaid expenses and deposits	$	213,888	$	238,467

Prepaid expenses and other current assets consist of the following:

As of:	December 31, 2022		December 31, 2021
Prepaid expenses and deposits	$	238,467	$	304,127
Prepaid expenses, other		-		2,569
Prepaid expenses, production deposit		-		188,385
Prepaid expenses, rent deposit		-		15,125
Other current assets		-		29,386
Prepaid expenses and other current assets	$	238,467	$	539,592

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PROPERTY AND EQUIPMENT (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

SCHEDULE OF PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

As of:	June 30, 2023			December 31, 2022
Facility	$	576,309		$	576,309
Equipment		415,405			404,789
Computer equipment		13,841			10,776
Less: accumulated depreciation		(57,232	)		(3,492	)
Property and equipment, net	$	948,323		$	988,382

Property and equipment consist of the following:

As of:	December 31, 2022			December 31, 2021
Facility	$	576,309		$	-
Equipment		404,789			-
Computer equipment		10,776			10,962
Less: accumulated depreciation		(3,492	)		(1,367	)
Property and equipment, net	$	988,382		$	9,595

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CONSTRUCTION-IN-PROGRESS (Tables)

12 Months Ended

Dec. 31, 2022

Schedule Of Construction In Progress

SCHEDULE OF CONSTRUCTION IN PROGRESS

Construction-in-progress consist of the following:

As of:	December 31, 2022		December 31, 2021
Greenhouse costs	$	-	$	452,405

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INTANGIBLE ASSETS (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

SCHEDULE OF INTANGIBLE ASSETS

Intangible assets consist of the following:

As of:	June 30, 2023			December 31, 2022
Website development costs	$	183,317		$	178,918
Less: accumulated amortization		(81,564	)		(47,342	)
Intangible assets	$	101,753		$	131,576

Intangible assets consist of the following:

As of:	December 31, 2022			December 31, 2021
Website development costs	$	178,918		$	189,956
Less: accumulated amortization		(47,342	)		-
Intangible assets, net	$	131,576		$	189,956

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LOANS AND NOTE PAYABLE (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Debt Disclosure [Abstract]

SCHEDULE OF LOANS AND NOTES PAYABLE

Loans and notes payable consist of the following:

As of:	June 30, 2023		December 31, 2022
Line of credit	$	35,501	$	134,210
Merchant loan		248,066		319,742
Revenue purchase agreement		403,141		164,636
Bridge loan		4,384		184,154
Insurance financing		89,039		225,000
TruMed acquisition note payable		-		70,000
Loans and note payable, net	$	780,131	$	1,097,742

Loans and notes payable consist of the following:

As of:	December 31, 2022		December 31, 2021
Line of credit	$	134,210	$	-
Merchant loan		319,742		-
Revenue purchase agreement		164,636		-
Bridge loan		184,154		-
Insurance financing		225,000		-
TruMed acquisition note payable (Note 1)		70,000		-
Loans and note payable, net	$	1,097,742	$	-

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COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

COMPONENTS OF LEASE EXPENSE

For the six months ended June 30, 2023 and 2022, the components of lease expenses were recognized as selling, general and administrative expenses in the consolidated statement of operations and comprehensive loss. The lease payments were paid in cash.

	Six Months Ended June 30,
	2023		2022
Operating lease costs	$	40,459	$	19,068

For the year ended December 31, 2022, and the period ended December 31, 2021, the components of lease expenses were recognized as selling, general and administrative expenses in the consolidated statement of operations and comprehensive loss. The lease payments were paid in cash.

	Year Ended December 31, 2022		Period Ended December 31, 2021
Operating lease costs	$	128,983	$	25,424

SCHEDULE OF FUTURE MATURITIES OF CONTRACTUAL LEASE PAYMENTS

The future maturities of the contractual lease payments included in the operating lease liabilities as of June 30, 2023 are as follows:

As of June 30, 2023:	Total
Remainder of 2023	$	40,675
2024		70,546
2025		38,136
2026		38,136
Thereafter		12,712
Total		200,205
Less: amount representing interest		(30,779	)
Total	$	169,426

The future maturities of the contractual lease payments included in the operating lease liabilities as of December 31, 2022, are as follows:

For the Year Ended December 31, 2022:	Total
2023	$	80,313
2024		66,254
2025		38,136
2026		38,136
2027		9,534
Total		232,373
Less: amount representing interest		(35,793	)
Total	$	196,580

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SHAREHOLDERS’ EQUITY (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

SCHEDULE OF VALUATION ASSUMPTIONS

The Company estimated the fair value of each stock option award on the date of grant using a Black-Scholes option-pricing model based on the following weighted average assumptions applied:

	Year ended December 31, 2022			Period ended December 31, 2021
Risk-free interest rate		2.67	%		0.09% - 0.56	%
Expected term		3.5 years			2.5 - 3.5 years
Expected average stock price volatility		183.1	%		106.8% -120.9	%
Expected dividend yield		0.00	%		0.00	%
Weighted average grant-date fair value of stock options	$	4.58		$	1.36 - $1.87

SUMMARY OF NON-EMPLOYEE OPTION ACTIVITY

A summary of option activity for the six months ended June 30, 2023 is presented below.

					Weighted
					Average
			Weighted		Remaining
			Average		Contractual
	Number of		Exercise		Term		Intrinsic
	Options		Price		(in Years)		Value
Balance, December 31, 2022		615,000	$	2.59		3.61	$	1,480,457
Granted		-		-		-		-
Exercised		-		-		-		-
Forfeited		25,833		3.92		-		-
Expired		-		-		-		-
Balance, June 30, 2023		589,167	$	2.53		3.10	$	1,747,194

A summary of option activity for the year ended December 31, 2022 is presented below. There was no option activity for the period ended December 31, 2021.

					Weighted
					Average
			Weighted		Remaining
			Average		Contractual
	Number of		Exercise		Term		Intrinsic
	Options		Price		(in Years)		Value
Balance, December 31, 2021		475,000	$	1.90		4.41	$	288,788
Granted		140,000		5.00				-
Exercised		-		-		-		-
Forfeited		-		-		-		-
Expired		-		-
Balance, December 31, 2022		615,000	$	2.59		3.61	$	1,480,457

SUMMARY OF UNVESTED NON EMPLOYEE OPTIONS

A summary of unvested options for the six months ended June 30, 2023 is presented below:

			Weighted
			Average Grant
	Number of		Date Fair Value
	Options		Per Share
Unvested as of December 31, 2022		290,834	$	3.13
Granted		-		-
Vested		168,333		2.61
Forfeited or expired		21,666		3.43
Exercised		-		-
Unvested as of June 30, 2023		100,835	$	3.95

A summary of unvested options for the year ended December 31, 2022, is presented below:

				Weighted
				Average Grant
	Number of			Date Fair Value
	Options			Per Share
Unvested balance, December 31, 2021		292,500		$	1.80
Granted		140,000			5.00
Vested		(155,000	)		1.76
Forfeited or expired		-			-
Exercised		-			-
Unvested balance, December 31, 2022		277,500		$	3.44

SUMMARY OF WARRANT ACTIVITY

A summary of the warrant activity during the six months as of June 30, 2023 is presented below. There was no warrant activity for the six months ended June 30, 2022:

					Weighted
			Weighted		Average
			Average		Remaining
	Number of		Exercise		Life
	Warrants		Price		(in Years)
Balance, December 31, 2022		500,620	$	4.00		0.54
Issued		-		-		-
Exercised		-		-		-
Forfeited or expired		-		-		-
Balance, June 30, 2023		500,620	$	4.00		0.58

A summary of the warrant activity during the period from January 21, 2021 (date of inception) through December 31, 2022 is presented below:

					Weighted
			Weighted		Average
			Average		Remaining
	Number of		Exercise		Life
	Warrants		Price		(in Years)
Balance, January 21, 2021		-	$	-		-
Issued		500,620		4.00		-
Exercised		-		-		-
Forfeited or expired		-		-		-
Balance, December 31, 2021		500,620	$	4.00		0.7
Issued		-		-		-
Exercised		-		-		-
Forfeited or expired		-		-		-
Balance, December 31, 2022		500,620	$	4.00		0.7

SUMMARY OF WARRANT INFORMATION

The following table presents information related to warrants as of December 31, 2022:

	Warrants Outstanding				Warrants Exercisable
					Weighted
					Average
			Outstanding		Remaining		Exercisable
	Exercise		Number of		Life in		Number of
	Price		Warrants		Years		Warrants
Balance, December 31, 2022	$	4.00		5,006,204		0.7		5,006,204

Warrant [Member]

SCHEDULE OF VALUATION ASSUMPTIONS

The Company used the following approximate assumptions in connection with its estimation of fair value of Warrants:

	Assumptions
Expected term (years)	2.00
Expected volatility	91.05	%
Risk free interest rate	0.23	%
Expected dividends	0.00	%

The Company used the following approximate assumptions in connection with its estimation of fair value of Warrants:

For the Year Ended December 31, 2021:
Expected term (years)	2.00
Expected volatility	91.05	%
Risk free interest rate	0.23	%
Expected dividends	0.00	%

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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

SCHEDULE OF PRE-TAX BOOK LOSSES FROM FOREIGN AND DOMESTIC JURISDICTIONS

Pre-tax book losses for domestic (Canada) and foreign (the U.S.) jurisdictions are as follows:

	Year ended		Period ended
	December 31, 2022		December 31, 2021
Domestic	$	1,991,286	$	1,295,736
Foreign	$	3,401,146	$	1,625,589

SCHEDULE OF PROVISION FOR INCOME TAXES

The provision for income taxes is as follows:

	Year ended		Period ended
	December 31, 2022		December 31, 2021
Current:
US Federal	$	-	$	-
Canada		-		-
Total current		-		-
Deferred:
US Federal		-		-
Canada		-		-
Total deferred		-		-
Provision for income taxes	$	-	$	-

SCHEDULE OF RECONCILIATION OF EXPECTED FEDERAL STATUTORY INCOME TAX RATE TO EFFECTIVE INCOME TAX RATE

The reconciliation of the expected federal statutory income tax rate to the effective income tax rate is as follows:

	Year ended			Period ended
	December 31, 2022			December 31, 2021
Canadian statutory income tax rate		23.00	%		23.00	%
US state income taxes		3.15	%		-
Prior period adjustments		(0.16	)%		-
Entertainment		(0.01	)%		(0.03	)%
US federal rate differential		(1.26	)%		(1.11	)%
Valuation allowance		(22.60	)%		(19.06	)%
Stock-based compensation		(2.12	)%		(2.80	)%
Total		0.00	%		0.00	%

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows:

As of December 31,	2022			2021
Deferred tax assets:
Start-up costs	$	149,746		$	228,309
Net operating loss		1,734,528			329,133
Total deferred tax assets		1,884,274			557,443
Deferred tax liabilities:
Acquisition costs		(7,961	)		-
Depreciation expense		(26,181	)		-
Total deferred tax liabilities:		(34,142	)		-
Less: valuation allowance		(1,850,132	)		(557,443	)
Net deferred taxes	$	-		$	-

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CONVERTIBLE DEBENTURES (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

SCHEDULE OF CONVERTIBLE DEBENTURES

As of:	June 30, 2023		December 31, 2022
Convertible Debenture	$	2,099,174	$	-

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SHARE-BASED PAYMENTS (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Accumulated Other Comprehensive Income (Loss) [Line Items]

SUMMARY OF NON-EMPLOYEE OPTION ACTIVITY

A summary of option activity for the six months ended June 30, 2023 is presented below.

					Weighted
					Average
			Weighted		Remaining
			Average		Contractual
	Number of		Exercise		Term		Intrinsic
	Options		Price		(in Years)		Value
Balance, December 31, 2022		615,000	$	2.59		3.61	$	1,480,457
Granted		-		-		-		-
Exercised		-		-		-		-
Forfeited		25,833		3.92		-		-
Expired		-		-		-		-
Balance, June 30, 2023		589,167	$	2.53		3.10	$	1,747,194

A summary of option activity for the year ended December 31, 2022 is presented below. There was no option activity for the period ended December 31, 2021.

					Weighted
					Average
			Weighted		Remaining
			Average		Contractual
	Number of		Exercise		Term		Intrinsic
	Options		Price		(in Years)		Value
Balance, December 31, 2021		475,000	$	1.90		4.41	$	288,788
Granted		140,000		5.00				-
Exercised		-		-		-		-
Forfeited		-		-		-		-
Expired		-		-
Balance, December 31, 2022		615,000	$	2.59		3.61	$	1,480,457

SUMMARY OF UNVESTED NON EMPLOYEE OPTIONS

A summary of unvested options for the six months ended June 30, 2023 is presented below:

			Weighted
			Average Grant
	Number of		Date Fair Value
	Options		Per Share
Unvested as of December 31, 2022		290,834	$	3.13
Granted		-		-
Vested		168,333		2.61
Forfeited or expired		21,666		3.43
Exercised		-		-
Unvested as of June 30, 2023		100,835	$	3.95

A summary of unvested options for the year ended December 31, 2022, is presented below:

				Weighted
				Average Grant
	Number of			Date Fair Value
	Options			Per Share
Unvested balance, December 31, 2021		292,500		$	1.80
Granted		140,000			5.00
Vested		(155,000	)		1.76
Forfeited or expired		-			-
Exercised		-			-
Unvested balance, December 31, 2022		277,500		$	3.44

SCHEDULE OF VALUATION ASSUMPTIONS

The Company estimated the fair value of each stock option award on the date of grant using a Black-Scholes option-pricing model based on the following weighted average assumptions applied:

	Year ended December 31, 2022			Period ended December 31, 2021
Risk-free interest rate		2.67	%		0.09% - 0.56	%
Expected term		3.5 years			2.5 - 3.5 years
Expected average stock price volatility		183.1	%		106.8% -120.9	%
Expected dividend yield		0.00	%		0.00	%
Weighted average grant-date fair value of stock options	$	4.58		$	1.36 - $1.87

SUMMARY OF WARRANT ACTIVITY

A summary of the warrant activity during the six months as of June 30, 2023 is presented below. There was no warrant activity for the six months ended June 30, 2022:

					Weighted
			Weighted		Average
			Average		Remaining
	Number of		Exercise		Life
	Warrants		Price		(in Years)
Balance, December 31, 2022		500,620	$	4.00		0.54
Issued		-		-		-
Exercised		-		-		-
Forfeited or expired		-		-		-
Balance, June 30, 2023		500,620	$	4.00		0.58

A summary of the warrant activity during the period from January 21, 2021 (date of inception) through December 31, 2022 is presented below:

					Weighted
			Weighted		Average
			Average		Remaining
	Number of		Exercise		Life
	Warrants		Price		(in Years)
Balance, January 21, 2021		-	$	-		-
Issued		500,620		4.00		-
Exercised		-		-		-
Forfeited or expired		-		-		-
Balance, December 31, 2021		500,620	$	4.00		0.7
Issued		-		-		-
Exercised		-		-		-
Forfeited or expired		-		-		-
Balance, December 31, 2022		500,620	$	4.00		0.7

Warrant [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

SCHEDULE OF VALUATION ASSUMPTIONS

The Company used the following approximate assumptions in connection with its estimation of fair value of Warrants:

	Assumptions
Expected term (years)	2.00
Expected volatility	91.05	%
Risk free interest rate	0.23	%
Expected dividends	0.00	%

The Company used the following approximate assumptions in connection with its estimation of fair value of Warrants:

For the Year Ended December 31, 2021:
Expected term (years)	2.00
Expected volatility	91.05	%
Risk free interest rate	0.23	%
Expected dividends	0.00	%

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ORGANIZATION (Details Narrative)						6 Months Ended		11 Months Ended	12 Months Ended
	Feb. 15, 2022 USD ($)	Feb. 17, 2021 USD ($) shares	Feb. 17, 2021 CAD ($) $ / shares shares	Feb. 03, 2021 CAD ($) shares	Jan. 22, 2021 $ / shares shares	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2022 USD ($) shares	Apr. 20, 2022 shares	Mar. 04, 2022 $ / shares shares	Feb. 02, 2022 $ / shares shares	Jul. 14, 2021 $ / shares shares	Mar. 04, 2021 $ / shares shares	Jan. 21, 2021 $ / shares shares
Date of incorporation									Jan. 22, 2021
Number of shares issued							162,600			162,600	178,100	196,400	1,001,242
Share price | (per share)											$ 5.00	$ 5.00	$ 3.50		$ 0.05
Business acquisition, total consideration		$ 359,505	$ 455,000
Cash consideration | $							$ 114,000		$ 114,000
TruMed Limited [Member]
Business acquisition, total consideration | $	$ 750,000
Ownership percentage	100.00%
Cash consideration | $	$ 130,000
Business acquisition contingent liabilities | $	550,000
Acquired asset | $	197,562
TruMed Limited [Member] | Promissory Note [Member]
Busienss acquisition liabilities incurred | $	$ 70,000								$ 35,000
Common Stock [Member]
Number of shares issued				1,000,000			196,400							1,003,012	0.2
Share price | $ / shares														$ 2.00
Business acquisition, total consideration | $				$ 162,500
Shares, new issues							196,400	1,003,012	196,400
Common Stock [Member] | Purchase Agreements [Member]
Number of shares for common stock					9,000,000
Purchase price per share | $ / shares					$ 0.00001
Cash price | $ / shares					$ 22.50
Common Stock [Member] | Plan of Merger [Member]
Common stock shares subscribed			100
Shares, conversion of units		0.31111112	0.31111112
Shares, new issues		2,800,000	2,800,000
Common Stock [Member] | Plan of Merger [Member] | First Shares [Member]
Share price | $ / shares			$ 0.05
Shares, new issues		700,000	700,000
Common Stock [Member] | Plan of Merger [Member] | Next Shares [Member]
Share price | $ / shares			$ 0.20
Shares, new issues		2,100,000	2,100,000

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	11 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Jan. 31, 2022
Property and equipment estimated useful life			5 years
Impairment of long-lived assets	$ 0	$ 0
Lease option to extend	The Company’s lease terms include options to extend the lease for a total of two renewal periods with each term being two years which may be exercised by giving written notice to lessor no less than sixty days prior to the expiration of the current lease or renewal period. The lease renewal terms were recognized as part of the Company’s ROU assets and lease liabilities
Selling, General and Administrative Expenses [Member]
Advertising expenses	$ 2,312,451	$ 24,337

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SCHEDULE OF INVENTORY (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 263,800	$ 176,440	$ 97,636
Work in process
Finished goods	1,021,030	836,359
Inventory	$ 1,284,830	$ 1,012,799	$ 97,636

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SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Prepaid Expenses And Other Current Assets
Prepaid expenses and deposits	$ 213,888	$ 238,467	$ 304,127
Prepaid expenses, other			2,569
Prepaid expenses, production deposit			188,385
Prepaid expenses, rent deposit			15,125
Other current assets			29,386
Prepaid expenses and other current assets	$ 213,888	$ 238,467	$ 539,592

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SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Less: accumulated depreciation	$ (57,232)	$ (3,492)	$ (1,367)
Property and equipment, net	948,323	988,382	9,595
Facility [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	576,309	576,309
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	415,405	404,789
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 13,841	$ 10,776	$ 10,962

XML

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 53,611	$ 2,182	$ 1,098	$ 1,367

XML

SCHEDULE OF CONSTRUCTION IN PROGRESS (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Schedule Of Construction In Progress
Greenhouse costs		$ 452,405

XML

SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Website development costs	$ 183,317	$ 178,918	$ 189,956
Less: accumulated amortization	(81,564)	(47,342)
Intangible assets	$ 101,753	$ 131,576	$ 189,956

XML

INTANGIBLE ASSETS (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 32,542	$ 16,353	$ 49,411	$ 0

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SCHEDULE OF LOANS AND NOTES PAYABLE (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Loans and note payable, net	$ 780,131	$ 1,097,742
Line of Credit [Member]
Debt Instrument [Line Items]
Loans and note payable, net	35,501	134,210
Merchant Loan [Member]
Debt Instrument [Line Items]
Loans and note payable, net	248,066	319,742
Revenue Purchase Agreement [Member]
Debt Instrument [Line Items]
Loans and note payable, net	403,141	164,636
Bridge Loan [Member]
Debt Instrument [Line Items]
Loans and note payable, net	4,384	184,154
Insurance Financing [Member]
Debt Instrument [Line Items]
Loans and note payable, net	89,039	225,000
TruMed Acquisition Note Payable [Member]
Debt Instrument [Line Items]
Loans and note payable, net		$ 70,000

XML

LOANS AND NOTE PAYABLE (Details Narrative)												6 Months Ended	11 Months Ended	12 Months Ended
	Jun. 08, 2023 USD ($)	Jun. 08, 2023 USD ($)	May 18, 2023 USD ($)	Jan. 10, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 20, 2022 USD ($)	Nov. 08, 2022 USD ($)	Oct. 08, 2022 USD ($)	Aug. 08, 2022 USD ($)	Jul. 14, 2021 USD ($)	Jul. 14, 2021 CAD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 28, 2023 USD ($)
Debt Instrument [Line Items]
Line of credit initial drawn amount									$ 200,000
Line of credit fee percentange									3.00%
Line of credit interest rate									1.93%
Line of credit					$ 134,210									$ 134,210
Carrying value of merchant loan					1,097,742									1,097,742	$ 780,131
Cash proceeds										$ 2,781,593	$ 3,504,346
Number shares issues, value												$ 974,435	1,478,582	974,435
Warrant [Member]
Debt Instrument [Line Items]
Warrants and rights outstanding										$ 500,620						$ 500,620
Revenue Purchase Agreements [Member]
Debt Instrument [Line Items]
Carrying value of merchant loan					164,636									164,636
Cash proceeds								$ 245,000
Daily repayments								$ 8,208
Percentage of sales adjusted								10.00%
Repayments of debt								$ 328,300
Loan Agreement [Member]
Debt Instrument [Line Items]
Daily repayments					20,736
Promissory Note [Member]
Debt Instrument [Line Items]
Paid partial payment of promissory note				$ 35,000
Promissory note new principal amount				37,868
Number shares issues, value				$ 37,868
Merchant Loan [Member]
Debt Instrument [Line Items]
Proceeds from loans							$ 355,000		$ 250,000
Repayments of loans							401,150		282,500
Cost of borrowing							$ 46,150		32,500
Carrying value of merchant loan					319,742									319,742	248,066
Bridge Loan [Member]
Debt Instrument [Line Items]
Carrying value of merchant loan					184,154									184,154	4,384
Cash proceeds						$ 200,000
Daily repayments						2,092
Repayments of debt						$ 272,000
Insurance Financing [Member]
Debt Instrument [Line Items]
Carrying value of merchant loan					$ 225,000									$ 225,000	$ 89,039
Celtic Bank Corporation [Member]
Debt Instrument [Line Items]
Line of credit maximum draw amount									$ 200,000
Web Bank [Member] | Merchant Loan Agreement [Member]
Debt Instrument [Line Items]
Repayments of debt			$ 451,000
Proceeds from other debt			410,000
Borrowing			$ 41,000
Debt instrument, interest rate, stated percentage			17.00%
Fundonatic [Member] | Merchant Loan Agreement [Member]
Debt Instrument [Line Items]
Daily repayments	$ 1,950
Repayments of debt	292,500
Proceeds from other debt	225,000
Borrowing	67,500
Proceeds from loans payable		$ 225,000
Click Capital Group LLC [Member] | Merchant Loan Agreement [Member]
Debt Instrument [Line Items]
Daily repayments	1,950
Repayments of debt	292,500
Borrowing	$ 67,500

XML

COMPONENTS OF LEASE EXPENSE (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Operating lease costs	$ 40,459	$ 19,068	$ 128,983	$ 25,424

XML

SCHEDULE OF FUTURE MATURITIES OF CONTRACTUAL LEASE PAYMENTS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2023	$ 40,675	$ 60,330
Year One	70,546	80,313
Year Two	38,136	66,254
Year Three	38,136	38,136
Year Four		38,136
Year Five		9,534
Thereafter	12,712
Total	200,205	232,373
Less: amount representing interest	(30,779)	(35,793)
Total	$ 169,426	$ 196,580

XML

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	Jun. 26, 2023	Dec. 31, 2022
Loss Contingencies [Line Items]
Weighted average discounting rate		10.00%
Milestone payment	$ 550,000
Minimum [Member]
Loss Contingencies [Line Items]
Weighted average remaining lease term		3 years
Maximum [Member]
Loss Contingencies [Line Items]
Weighted average remaining lease term		4 years

XML

SCHEDULE OF VALUATION ASSUMPTIONS (Details) - $ / shares	6 Months Ended	11 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2021	Dec. 31, 2022
Warrant [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk free interest rate	0.23%	0.23%
Expected term (years)	2 years	2 years
Expected volatility	91.05%	91.05%
Expected dividends	0.00%	0.00%
Non-Employee [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk free interest rate			2.67%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum		0.09%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum		0.56%
Expected term (years)			3 years 6 months
Expected volatility			183.10%
Expected dividends		0.00%	0.00%
Weighted average grant-date fair value of stock options			$ 4.58
Non-Employee [Member] | Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected term (years)		2 years 6 months
Expected volatility		106.80%
Weighted average grant-date fair value of stock options		$ 1.36
Non-Employee [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected term (years)		3 years 6 months
Expected volatility		120.90%
Weighted average grant-date fair value of stock options		$ 1.87

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SUMMARY OF NON-EMPLOYEE OPTION ACTIVITY (Details) - Non-Employee [Member] - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Number of Options, Beginning balance	615,000	475,000
Weighted Average Exercise Price, Beginning balance	$ 2.59	$ 1.90
Weighted Average Remaining Contractual Term (in Years), Beginning	3 years 1 month 6 days	3 years 7 months 9 days	4 years 4 months 28 days
Intrinsic Value, Beginning balance	$ 1,480,457	$ 288,788
Number of Options, Granted		140,000
Weighted Average Exercise Price, Granted		$ 5.00
Intrinsic Value, Granted
Number of Options, Exercised
Weighted Average Exercise Price, Exercised
Intrinsic Value, Exercised
Number of Options, Forfeited	(25,833)
Weighted Average Exercise Price, Forfeited	$ 3.92
Intrinsic Value, Forfeited
Number of Options, Expired
Weighted Average Exercise Price, Expired
Number of Options, Ending balance	589,167	615,000	475,000
Weighted Average Exercise Price, Ending balance	$ 2.53	$ 2.59	$ 1.90
Intrinsic Value, Ending balance	$ 1,747,194	$ 1,480,457	$ 288,788
Number of Options, Forfeited	25,833
Intrinsic Value, Expired

XML

SUMMARY OF UNVESTED NON EMPLOYEE OPTIONS (Details) - Unvested Non Employee [Member] - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Number of Options Unvested, Beginning balance	290,834	292,500
Weighted Average Grant Date Fair Value, Beginning balance	$ 3.13	$ 1.80
Number of Options Unvested, Granted		140,000
Weighted Average Grant Date Fair Value, Granted		$ 5.00
Number of Options Unvested, Vested	(168,333)	(155,000)
Weighted Average Grant Date Fair Value, Vested	$ 2.61	$ 1.76
Number of Options Unvested, Forfeited or expired	(21,666)
Weighted Average Grant Date Fair Value, Forfeited or expired	$ 3.43
Number of Options Unvested, Exercised
Weighted Average Grant Date Fair Value, Exercised
Number of Options Unvested, Ending balance		277,500
Weighted Average Grant Date Fair Value, Ending balance		$ 3.44
Number of Options Unvested, Vested	168,333	155,000
Number of Options Unvested, Forfeited or expired	21,666
Number of Options Unvested, Ending balance	100,835	290,834
Weighted Average Grant Date Fair Value, Ending balance	$ 3.95	$ 3.13

XML

SUMMARY OF WARRANT ACTIVITY (Details) - Warrant [Member] - $ / shares	6 Months Ended	11 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Number of Warrants, Beginning balance	500,620
Weighted Average Exercise Price, Ending balance	$ 4.00		$ 4.00
Number of Warrants, Issued		500,620
Weighted Average Exercise Price, Issued		$ 4.00	$ 4.00
Number of Warrants, Exercised
Weighted Average Exercise Price, Exercised
Number of Warrants, Forfeited or expired
Weighted Average Exercise Price, Forfeited or expired
Number of Warrants, Ending balance	500,620		500,620
Weighted Average Remaining Life (in Years)	6 months 29 days		6 months 14 days	8 months 12 days
Number of Warrants, Ending balance			500,620
Weighted Average Exercise Price, Ending balance	$ 4.00	$ 4.00	$ 4.00	$ 4.00
Weighted Average Exercise Price, Forfeited or expired
Number of Warrants, Ending balance	500,620	500,620	500,620	500,620

XML

SUMMARY OF WARRANT INFORMATION (Details) - Warrant [Member] - $ / shares	6 Months Ended	11 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2021	Dec. 31, 2022
Weighted Average Exercise Price		$ 4.00	$ 4.00
Number of Warrants			5,006,204
Weighted Average Remaining Life (in Years)			8 months 12 days
Number of Warrants, Exercisable			5,006,204

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SHAREHOLDERS’ EQUITY (Details Narrative)									6 Months Ended		11 Months Ended	12 Months Ended
	Apr. 20, 2022 USD ($) shares	Mar. 04, 2022 USD ($) $ / shares shares	Feb. 02, 2022 USD ($) $ / shares shares	Jul. 14, 2021 USD ($) shares	Jul. 14, 2021 USD ($) shares	Jul. 14, 2021 CAD ($) shares	Mar. 04, 2021 USD ($)	Mar. 04, 2021 CAD ($) $ / shares shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) shares	Jun. 28, 2023 USD ($)	Apr. 21, 2022 shares	Jul. 14, 2021 $ / shares	Feb. 03, 2021 shares	Jan. 21, 2021 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Preferred Stock, Shares Issued									3,098,971			0
Preferred Stock, Shares Outstanding									3,098,971			0
Dividends Payable, Amount Per Share | $ / shares												$ 0
Preferred stock voting rights												No
Common stock, shares outstanding	63,513,530								6,351,354		5,804,254	6,351,354	5,804,254		6,351,354
Common stock voting rights												Each shareholder of Common Shares shall be entitled to one vote for each share of Common Shares held at all meetings of the Company’s shareholders.
Shares issued	162,600	178,100	196,400	1,001,242	1,001,242					162,600
Share price | (per share)		$ 5.00	$ 5.00													$ 3.50		$ 0.05
Proceeds from issuance of debt					$ 2,781,593	$ 3,504,346
Proceeds from issuance of common stock | $	$ 813,000	$ 890,500	$ 982,000								$ 1,478,582
Debt conversion, shares issued		10,000								10,000
Debt conversion, shares issued, amount | $		$ 50,000
Maximum percentage of issued and outstanding shares												10.00%
Nonbrokered Private Placement [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Proceeds from issuance of debt | $									$ 2,833,081
Debt instrument, face amount | $									$ 3,098,971
Debt conversion, converted instrument, shares issued									3,098,971
Debt conversion, description									(1) the number of Series 1 Shares converted (multiplied by 60% if the initial public offering occurs within six months of the issuance of the Series 1 Shares), divided by (2) the conversion price. The conversion price is the lesser of (1) $6.00, and (2) (if applicable) the greater of (a) 80% of the initial public offering price and (b) $3.00.
Non-Employee [Member] | Selling, General and Administrative Expenses [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation expense | $									$ 212,609	$ 262,034		$ 498,450	$ 355,334
Time Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting description												Time Options generally vest based on three years of continuous service and have five-year contractual terms.
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested, Number of Shares									492,492			350,883
Time Options [Member] | Non-Employee [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation expense | $									$ 324,574			$ 583,913
Common Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares issued								1,003,012		196,400							1,000,000	0.2
Share price | $ / shares								$ 2.00
Proceeds from issuance of debt							$ 1,616,838	$ 2,006,022
Warrant [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares issued				500,620	500,620
Share price | $ / shares																$ 3.50
Issued in period				1,001,242	1,001,242	1,001,242
Proceeds from issuance of warrants | $						$ 3,504,346
Warrants and rights outstanding | $				$ 500,620	$ 500,620									$ 500,620

XML

SCHEDULE OF PRE-TAX BOOK LOSSES FROM FOREIGN AND DOMESTIC JURISDICTIONS (Details) - USD ($)	11 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Domestic	$ 1,991,286	$ 1,295,736
Foreign	$ 3,401,146	$ 1,625,589

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SCHEDULE OF PROVISION FOR INCOME TAXES (Details) - USD ($)	6 Months Ended		11 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022
Current:
US Federal
Canada
Total current
Deferred:
US Federal
Canada
Total deferred
Provision for income taxes

XML

SCHEDULE OF RECONCILIATION OF EXPECTED FEDERAL STATUTORY INCOME TAX RATE TO EFFECTIVE INCOME TAX RATE (Details)	11 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Canadian statutory income tax rate	23.00%	23.00%
US state income taxes	3.15%
Prior period adjustments	(0.16%)
Entertainment	(0.01%)	(0.03%)
US federal rate differential	(1.26%)	(1.11%)
Valuation allowance	(22.60%)	(19.06%)
Stock-based compensation	(2.12%)	(2.80%)
Total	0.00%	0.00%

XML

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Start-up costs	$ 149,746	$ 228,309
Net operating loss	1,734,528	329,133
Total deferred tax assets	1,884,274	557,443
Deferred tax liabilities:
Acquisition costs	(7,961)
Depreciation expense	(26,181)
Total deferred tax liabilities:	(34,142)
Less: valuation allowance	(1,850,132)	(557,443)
Net deferred taxes

XML

INCOME TAXES (Details Narrative) - USD ($)	11 Months Ended		12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Operating Loss Carryforwards [Line Items]
Corporate statutory rate	3.15%
Foreign Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 4,429,438	$ 534,091	$ 4,429,438	$ 534,091
Operating Loss Carryforwards, Limitations on Use		The U.S. state net operating losses generally start expiring in 20 years.
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards		$ 4,429,438		4,429,438
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 2,534,234	$ 943,365	$ 2,534,234	$ 943,365
Operating Loss Carryforwards, Limitations on Use		the Canadian net operating losses shall begin to expire in 2041
CANADA
Operating Loss Carryforwards [Line Items]
Corporate statutory rate			23.00%	23.00%

XML

RELATED PARTIES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Jun. 30, 2023	Dec. 31, 2021
Related Party Transaction [Line Items]
Related party, expenses	$ 1,600,000
Related party balance	2,532,690	$ 2,314,215	$ 436,011
Related party debt	50,500
Cory Rosenberg [Member]
Related Party Transaction [Line Items]
Advertising Expense	643,407
Andrew Roda [Member]
Related Party Transaction [Line Items]
Advertising Expense	29,435
Employee [Member]
Related Party Transaction [Line Items]
Business expenses	1,278
Darcy Campbell [Member]
Related Party Transaction [Line Items]
Business expenses	12,356
Related Party [Member]
Related Party Transaction [Line Items]
Related party balance	$ 686,476	$ 408,893

XML

SUBSEQUENT EVENTS (Details Narrative) - USD ($)																		6 Months Ended	11 Months Ended	12 Months Ended
	Sep. 07, 2023	Sep. 07, 2023	Aug. 31, 2023	Aug. 31, 2023	Jul. 21, 2023	Jul. 21, 2023	Jul. 19, 2023	Jul. 19, 2023	Jun. 08, 2023	May 18, 2023	Apr. 28, 2023	Jan. 10, 2023	Jan. 09, 2023	Jan. 03, 2023	Apr. 20, 2022	Mar. 04, 2022	Feb. 02, 2022	Jun. 30, 2023	Dec. 31, 2021	Dec. 31, 2022	Jun. 28, 2023	Mar. 31, 2023	Feb. 06, 2023
Subsequent Event [Line Items]
Preferred stock, shares issued																		3,098,971		0
Proceeds from investors															$ 813,000	$ 890,500	$ 982,000		$ 1,478,582
Convertible Secured Promissory Notes [Member] | Forecast [Member]
Subsequent Event [Line Items]
Debt instrument face amount	$ 239,130	$ 239,130
Preferred stock, shares issued	239,129	239,129
Proceeds from investors		$ 220,000
Promissory Note [Member]
Subsequent Event [Line Items]
Debt instrument face amount												$ 37,868
Paid partial payment of promissory note												35,000
Merchant Loan Agreement [Member] | Web Bank [Member]
Subsequent Event [Line Items]
Repayments of debt										$ 451,000
Proceeds from other debt										410,000
Borrowing										$ 41,000
Debt instrument, interest rate, stated percentage										17.00%
Nonbrokered Private Placement [Member]
Subsequent Event [Line Items]
Debt instrument face amount																		$ 3,098,971
Debt conversion, converted instrument, shares issued																		3,098,971
Subsequent Event [Member]
Subsequent Event [Line Items]
Proceeds from other debt									$ 225,000	$ 410,000
Repayments of Other Debt									292,500	451,000
Borrowing									67,500	$ 41,000
Daily repayments									1,950
Class of Warrant or Right, Outstanding																					500,620
Subsequent Event [Member] | Convertible Secured Promissory Notes [Member]
Subsequent Event [Line Items]
Debt instrument face amount	$ 239,130	$ 239,130
Preferred stock, shares issued	239,129	239,129
Proceeds from investors	$ 220,000
Subsequent Event [Member] | Click Captial Group LLC [Member]
Subsequent Event [Line Items]
Proceeds from other debt									225,000
Repayments of Other Debt									292,500
Borrowing									67,500
Daily repayments									$ 1,950
Subsequent Event [Member] | Promissory Note [Member]
Subsequent Event [Line Items]
Debt instrument face amount												37,868
Paid partial payment of promissory note												$ 35,000
Repayments of debt											$ 37,868
Subsequent Event [Member] | Merchant Loan Agreement [Member] | Web Bank [Member]
Subsequent Event [Line Items]
Repayments of debt					$ 283,400	$ 283,400
Proceeds from other debt						260,000
Borrowing					$ 23,400	$ 23,400
Debt instrument, interest rate, stated percentage					17.00%	17.00%
Proceeds from Bank Debt					$ 260,000
Subsequent Event [Member] | Merchant Loan Agreement [Member] | Cloudfund LLC [Member]
Subsequent Event [Line Items]
Repayments of debt							$ 276,040	$ 276,040
Proceeds from other debt								199,774
Borrowing							$ 76,266	$ 76,266
Debt instrument, interest rate, stated percentage							4.00%	4.00%
Proceeds from Bank Debt							$ 199,774
Subsequent Event [Member] | Merchant Loan Agreement [Member] | Curve Capital LLC [Member]
Subsequent Event [Line Items]
Repayments of debt			$ 306,000	$ 306,000
Proceeds from other debt				225,000
Borrowing			$ 81,000	$ 81,000
Debt instrument, interest rate, stated percentage			6.12%	6.12%
Proceeds from Bank Debt			$ 225,000
Subsequent Event [Member] | Cory J Rosenberg [Member]
Subsequent Event [Line Items]
Debt instrument face amount														$ 271,739
Debt conversion, converted instrument, shares issued														271,739
Gross proceeds														$ 250,000
Subsequent Event [Member] | Darcy A Campbell [Member]
Subsequent Event [Line Items]
Debt instrument face amount													$ 100,000
Debt conversion, converted instrument, shares issued													100,000
Gross proceeds													$ 92,000
Subsequent Event [Member] | Nonbrokered Private Placement [Member]
Subsequent Event [Line Items]
Debt instrument face amount													$ 616,304	$ 764,130								$ 1,350,000	$ 368,543
Debt conversion, converted instrument, shares issued													616,303	764,124
Gross proceeds													$ 567,000	$ 703,000								$ 1,242,000	$ 339,060
Convertible preferred stock, shares																						1,350,001	368,543

XML

SCHEDULE OF CONVERTIBLE DEBENTURES (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
Convertible Debenture	$ 2,099,174

XML

CONVERTIBLE DEBENTURES (Details Narrative)			6 Months Ended
	Jul. 14, 2021 USD ($)	Jul. 14, 2021 CAD ($)	Jun. 30, 2023 USD ($) $ / shares shares
Debt Instrument [Line Items]
Proceeds from Issuance of Debt	$ 2,781,593	$ 3,504,346
Conversion price per share | $ / shares			$ 6.00
Debt instrument description			If an event of default shall occur and be continuing, lenders holding greater than 50% of the aggregate principal amount of the convertible notes outstanding at such time may declare all the convertible notes to be in default, at which point the principal amount outstanding on the date of such written notice shall increase to 125% of the principal amount then outstanding, and the interest rate shall increase to 15% or the maximum rate permitted under applicable law until such event of default is cured, if capable of being cured. Additionally, if an event of default has occurred and is continuing without cure, at the end of each calendar month thereafter until the event of default has been cured, the lenders shall be entitled to sweep the cash received in the bank accounts of the Company and its subsidiaries in an aggregate amount equal to 20% of the consolidated revenue of the Company and its subsidiaries during such calendar month.
Minimum [Member]
Debt Instrument [Line Items]
Debt instrument interest rate			8.00%
Maximum [Member]
Debt Instrument [Line Items]
Debt instrument interest rate			10.00%
Nonbrokered Private Placement [Member]
Debt Instrument [Line Items]
Promissory note new principal amount			$ 3,098,971
Debt Conversion, Converted Instrument, Shares Issued | shares			3,098,971
Proceeds from Issuance of Debt			$ 2,833,081
Convertible Notes Payable, Noncurrent			1,863,945
Convertible Notes Payable			969,136
IPO [Member]
Debt Instrument [Line Items]
Gross proceeds form sale of equity instruments			$ 3,000,000

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SHARE-BASED PAYMENTS (Details Narrative)			6 Months Ended		12 Months Ended
	Jul. 14, 2021 USD ($) shares	Jul. 14, 2021 CAD ($) shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($)	Jun. 28, 2023 USD ($)	Mar. 04, 2022 $ / shares	Feb. 02, 2022 $ / shares	Jul. 14, 2021 $ / shares	Jan. 21, 2021 $ / shares
Accumulated Other Comprehensive Income (Loss) [Line Items]
Share price | (per share)								$ 5.00	$ 5.00	$ 3.50	$ 0.05
Warrant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Share based compensation number of shares issued | shares	1,001,242	1,001,242
Share price | $ / shares										$ 3.50
Proceeds from issuance of warrants		$ 3,504,346
Warrants and rights outstanding	$ 500,620						$ 500,620
Non-Employee [Member] | Selling, General and Administrative Expenses [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Share-based compensation expense			$ 212,609	$ 262,034	$ 498,450	$ 355,334
Time Options [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of vested shares | shares			492,492		350,883
Time Options [Member] | Non-Employee [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrecognized compensation expense			$ 324,574		$ 583,913