Greenwave Technology Solutions, Inc. 10-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31 , 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to _________ Commission File Number: 001-41452 GREENWAVE TECHNOLOGY SOLUTIONS, INC. (Exact name of registrant as specified in its charter) Delaware 46-2612944 (State or jurisdiction of Incorporation or organization) I.R.S Employer Identification No. 4016 Raintree Rd , Ste 300 , Chesapeake , VA 23321 (Address of principal executive offices) (Zip code) (800) 490-5020 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.001 GWAV The Nasdaq Stock Market, LLC Indicate by check mark whether the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒ Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒ Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition 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 13(a) of the Exchange Act. ☐ Indicate by check mark whether the Registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐ If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the fi ling reflect the correction of an error to previously issued financial statements. ☐ Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐ Indicate by check mark whether the Registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act) Yes ☐ No ☒ The aggregate market value of voting and non-voting common equity held by non-affiliates of the Registrant was $ 6,590,157 as of June 30, 2023. The number of shares of Registrant’s common stock outstanding was 44,065,475 as of April 15, 2024. DOCUMENTS INCORPORATED BY REFERENCE Portions of the Company’s Proxy Statement for our 2024 Annual Meeting of Shareholders are incorporated by reference into Part III of this report. GREENWAVE TECHNOLOGY SOLUTIONS, INC. FORM 10-K ANNUAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 TABLE OF CONTENTS Page PART I 1 Item 1. Business 1 Item 1A. Risk Factors 5 Item 1B. Unresolved Staff Comments 17 Item 1C. Cybersecurity 17 Item 2. Properties 17 Item 3. Legal Proceedings 18 Item 4. Mine Safety Disclosures 18 PART II 18 Item 5. Market for the Registrant’s Common Stock, Related Stockholder Matters and Issuer Purchases of Equity Securities 18 Item 6. Reserved 20 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 20 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 26 Item 8. Financial Statements and Supplementary Data 26 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 26 Item 9A. Controls and Procedures 2 6 Item 9B. Other Information 28 Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 28 PART III 28 Item 10. Directors, Executive Officers and Corporate Governance 28 Item 11. Executive Compensation 28 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 28 Item 13. Certain Relationships and Related Transactions and Director Independence 28 Item 14. Principal Accountant Fees and Services 28 PART IV 29 Item 15. Exhibits and Financial Statement Schedules 29 I SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS Statements in this Annual Report on Form 10-K (“Annual Report”) may be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are often, but not always, made through the use of words or phrases such as “believe,” “will,” “may,” “could,” “continue,” “should,” “contemplate,” “expect,” “anticipate,” “estimate,” “intend,” “target,” “forecast,” “outlook,” “guidance,” “project,” “potential,” “plan” and “would,” and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements. These statements are based on current expectations, estimates and projections about our business based in part on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including those set forth in “Item 1A. Risk Factors” and elsewhere in this Annual Report on Form 10-K. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Annual Report on Form 10-K. Any forward-looking statements speak only as of the date on which they are made, and we disclaim any obligation to publicly update or release any revisions to these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this Annual Report on Form 10-K or to reflect the occurrence of unanticipated events, except as required by law. You should read this Annual Report with the understanding that our actual future results, levels of activity, performance, and events and circumstances may be materially different from what we expect. PART I On October 19, 2021, we changed our corporate name from MassRoots, Inc. to Greenwave Technology Solutions, Inc. We will not distinguish between our prior and current corporate name and will refer to our current corporate name throughout this Annual Report on Form 10-K. As such, unless expressly indicated or the content indicates otherwise, as used in this Annual Report on Form 10-K, the terms “Registrant,” “Company,” “Greenwave,” “we,” “us,” and “our” refers to Greenwave Technology Solutions, Inc., a Delaware corporation, and its subsidiaries taken as a whole, unless otherwise noted. This Annual Report contains additional trade names, trademarks, and service marks of other companies, which are the property of their respective owners. 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, these other companies. ITEM 1. BUSINESS Overview We were formed in April 26, 2013 as a technology platform developer under the name MassRoots, Inc. In October 2021, we changed our corporate name from “MassRoots, Inc.” to “Greenwave Technology Solutions, Inc.” We sold all of our social media assets on October 28, 2021 for cash consideration equal to $10,000 and has discontinued all operations related to our social media business. On September 30, 2021, we closed our acquisition of Empire Services, Inc. (“Empire”), which operates 14 metal recycling facilities in Virginia, North Carolina, and Ohio. The acquisition was effective October 1, 2021 upon the effectiveness of the Certificate of Merger in Virginia. Upon the acquisition of Empire, we transitioned into the scrap metal industry which involves collecting, classifying and processing appliances, construction material, end-of-life vehicles, boats, and industrial machinery. We process these items by crushing, shearing, shredding, separating, and sorting, into smaller pieces and categorize these recycled ferrous, nonferrous, and mixed metal pieces based on density and metal prior to sale. In cases of scrap cars, we remove the catalytic converters, aluminum wheels, and batteries for separate processing and sale prior to shredding the vehicle. We have designed our systems to maximize the value of metals produced from this process. We operate an automotive shredder at our Kelford, North Carolina location and a second automotive shredder at our Carrollton, Virginia location is expected to come online in the second quarter of 2024. Our shredders are designed to produce a denser product and, in concert with advanced separation equipment, more refined recycled ferrous metals, which are more valuable as they require less processing to produce recycled steel products. In totality, this process reduces large metal objects like auto bodies into baseball-sized pieces of shredded recycled metal. The shredded pieces are then placed on a conveyor belt under magnetized drums to separate the ferrous metal from the mixed nonferrous metal and residue, producing consistent and high-quality ferrous scrap metal. The nonferrous metals and other materials then go through a number of additional mechanical systems which separate the nonferrous metal from any residue. The remaining nonferrous metal is further processed to sort the metal by type, grade, and quality prior to being sold as products, such as zorba (mainly aluminum), zurik (mainly stainless steel), and shredded insulated wire (mainly copper and aluminum). One of our main corporate priorities is to open a facility with rail or deep-water port access to enable us to efficiently transport our products to domestic steel mills and overseas foundries. Because this would greatly expand the number of potential buyers of our processed scrap products, we believe opening a facility with port or rail access could result in an increase in both the revenue and profitability of our existing operations. Empire is headquartered in Chesapeake, Virginia and employs 131 people as of April 15, 2024. 1 Background We were incorporated in the state of Delaware on April 26, 2013 as a technology platform. Our principal executive office is located at 4016 Raintree Rd, Ste 300, Chesapeake, VA 23321, and our telephone number is (800) 490-5020. On October 1, 2021, we consummated a reverse triangular merger (the “Empire Merger”) pursuant to which we acquired all of the outstanding common stock of Empire Services, Inc. (“Empire”), a Virginia corporation. Upon closing of the Empire Merger, all of the shares of Empire’s common stock was exchanged for 1,650,000 shares of our common stock. At the closing of the Empire Merger, all shares of common stock of our newly-formed merger subsidiary formed for the sole purpose of effectuating the Empire Merger, were converted into and exchanged for one share of common stock of Empire, and all shares of Empire’s common stock that were outstanding immediately prior to the closing of the Empire Merger automatically cancelled and retired. Upon the closing of the Empire Merger, Empire continued as our surviving wholly-owned subsidiary, and the merger subsidiary ceased to exist. Products and Services Our main product is selling ferrous metal, which is used in the recycling and production of finished steel. It is categorized into heavy melting steel, plate and structural, and shredded scrap, with various grades of each of those categorizations based on the content, size and consistency of the metal. All of these attributes affect the metal’s value. We also process nonferrous metals such as aluminum, copper, stainless steel, nickel, brass, titanium, lead, alloys and mixed metal products. Additionally, we sell the catalytic converters recovered from end-of-life vehicles to processors which extract the nonferrous precious metals such as platinum, palladium and rhodium. We provide metal recycling services to a wide range of suppliers, including large corporations, industrial manufacturers, retail customers, and government organizations. Pricing and Customers Prices for our ferrous and nonferrous products are based on prevailing market rates and are subject to market cycles, worldwide steel demand, government regulations and policy, and supply of products that can be processed into recycled steel. Our main buyers adjust the prices they pay for scrap metal products based on market rates usually on a monthly or bi-weekly basis. We are usually paid for the scrap metal we deliver to customers within 14 days of delivery. Based on any price changes from our customers or our other buyers, we in turn adjust the price for unprocessed scrap we pay suppliers in order to manage the impact on our operating income and cashflows. The spread we are able to realize between the sales prices and the cost of purchasing scrap metal is determined by a number of factors, including transportation and processing costs. Historically, we have experienced sustained periods of stable or rising metal selling prices, which allow us to manage or increase our operating income. When selling prices decline, we adjust the prices we pay customers to minimize the impact to our operating income. Sources of Unprocessed Metal Our main sources of unprocessed metal we purchase are end-of-life vehicles, old equipment, appliances and other consumer goods, and scrap metal from construction or manufacturing operations. We acquire this unprocessed metal from a wide base of suppliers including large corporations, industrial manufacturers, retail customers, and government organizations who unload their metal at our facilities or we pick it up and transport it from the supplier’s location. Currently, our operations and main suppliers are located in the Hampton Roads and northeastern North Carolina markets. In the second quarter of 2023, we are expanding our operations by opening a metal recycling facility in Cleveland, Ohio. Our supply of scrap metal is influenced by overall health of economic activity in the United States, changes in prices for recycled metal, and, to a lesser extent, seasonal factors such as severe weather conditions, which may prohibit or inhibit scrap metal collection. 2 Technology In May 2021, we launched our new website. For the first time, Empire’s customers can see the current prices for each type of scrap metal. Our website is also integrated with Google’s Business Profiles, listing many of Empire’s locations on Google for the first time. In late May 2021, the Empire launched a junk car buying platform, where people looking to sell their scrap cars can get a quote within minutes, and integrated Google Ads, enabling Empire to micro-target their advertising based on location, age, income, and other factors. Additionally, during 2021, the Company moved the operations of each of their yards to WeighPay, a cloud-based Enterprise Resource Planning “ERP” system, which enables management to track sales, inventory, and operations at each facility in real time, while also establishing stronger internal controls and systems. Additionally, in 2021, the Company moved Empire’s accounting systems over to a cloud-based QuickBooks to facilitate collaboration and further growth. The technology systems and improvements Empire implemented have resulted in a significant increase in new customers, hundreds of quotes and dozens of purchases of junk cars, and we believe a material increase in Empire’s revenues as a result of these improvements. These systems have also streamlined Empire’s accounting and internal operations to enable any future acquisitions to be closed quickly and efficiently. Lastly, through the data-driven decision processes that have been introduced, Empire’s strategy on future locations and pricing is being informed by accurate and relevant data. Now that strong foundational systems are in place, management has begun to repurpose Greenwave’s technology platform that was developed from 2013 to 2020 into a marketing and CRM platform for scrap metal yards. This system will enable each facility to: ● Send text and email updates and special deals to their customers; ● Implement a points-based rewards system; ● Enable consumers to view scrap metal yards in their local area along with prices; ● Receive quotes for junk cars in real-time; ● Leave and respond to reviews of scrap yards; and ● View analytics and conversion data. Over the past ten years, Greenwave has invested approximately $10 million developing these technologies which we believe we can re-purpose for a fraction of the cost of development, give our metal recycling facilities and those who pay to use our platform a significant competitive advantage, and grow our revenues and profits as a result. There are few companies developing technology solutions for the scrap metal industry and we believe that by utilizing our experience and assets on this highly-profitable but often overlooked industry, we can create significant value for our shareholders. Competition We compete with several large, well-financed recyclers of scrap metal, steel mills which own their own scrap metal processing operations, and with smaller metal recycling companies. Demand for metal products is sensitive to global economic conditions, the relative value of the U.S. dollar, and availability of material alternatives, including recycled metal substitutes. Prices for recycled metal are also influenced by tariffs, quotas, and other import restrictions, and by licensing and government requirements. We aim to create a competitive advantage through our ability to process significant volumes of metal products and utilize the technology solutions, our use of processing and separation equipment, the number and location of our facilities, and the operating synergies we have been able to develop based on our experience. 3 Recent Developments On March 29, 2024, the Company entered into an exchange agreement with DWM Properties LLC (the “Holder”), whereby the Company and Holder agreed to exchange $10,000,000 of that certain Secured Promissory Note, dated July 31, 2023, issued by the Company to the Holder for shares of the Company’s newly created Series D Convertible Preferred Stock (the “Preferred Stock”). The Preferred Stock is convertible into the Company’s common stock at $0.204 per share, subject to adjustment as set forth therein, except the Preferred Stock is not convertible until such time as the currently outstanding senior secured indebtedness of the Company has been satisfied in full. In addition, the Company has the right to redeem the Preferred Stock in cash or shares of its Common Stock. The Preferred Stock has a stated value of $10,000 per share, has no voting rights, and does not bear dividends. On March 18, 2024, the Company extended warrant exercise inducement offer letters (the “Inducement Letters”) to the holders (the “Holders”) of its existing warrants to purchase shares of the Company’s common stock (the “Existing Warrants”), pursuant to which the Holders can exercise for cash their Existing Warrants to purchase an aggregate of up to 16,147,852 shares of the Company’s common stock, in the aggregate, at an exercise price of $0.204 per share, in exchange for the Company’s agreement to issue new warrants (the “Inducement Warrants”) on the terms described below, to purchase up to 32,295,704 shares of the Company’s common stock (the “Inducement Warrant Shares”). If Holders exercise all their Existing Warrants for cash, the Company would receive aggregate gross proceeds of approximately $3,294,161. Holders of Existing Warrants must return the Inducement Letter along with exercising all or part of the Existing Warrants on or before 5:00 p.m. Eastern Time on March 26, 2024 (the “Final Closing Date”) to receive the Inducement Warrants. From March 18 to March 26, 2024, the Company issued 13,772,394 shares for the exercise of warrants for proceeds of $2,809,568. The Company issued 27,544,788 Inducement Warrants to the existing warrant holders who exercised during the inducement period. For more information, see the Company’s current report on Form 8-K filed on March 18, 2024. From January 1 to March 20, 2024, the Company issued 10,864,690 shares for the conversion of convertible debt in the principal amount of $2,066,740. The shares underlying the debt were covered by a registration statement on Form S-3 (File No. 333-274293) declared effective by the U.S. Securities Exchange Commission on September 12, 2023. From January 1 to March 17, 2024, the Company issued 2,258,088 shares for the exercise of warrants for proceeds of $22,581. On March 15, 2024, the Company entered into leasing agreements for a scrap yard located at 3030 E 55th Street, Cleveland, OH 44127. Under the terms of the lease, the Company is required to pay $17,000 from March 1, 2024 to February 28, 2025; $23,000 from March 1, 2025 to February 28, 2026; $23,000 from March 1, 2026 to February 28, 2027; $23,000 from March 1, 2027 to February 28, 2028; and increasing by the greater of 3% and the CPI every 12 months thereafter until the expiration of the lease. The lease is for a period of five years, include two options to extend for five years each, and the Company was required to make a security deposit of $17,000. The Company has the option to purchase the property for $3,277,000 until February 28, 2024. Intellectual Property None. Employees and Human Capital Resources Greenwave has 131 full-time employees as of April 15, 2024. We view our diverse employee population and our culture as key to our success. Our company culture prioritizes learning, supports growth and empowers us to reach new heights. We recruit employees with the skills and training relevant to succeed and thrive in their functional responsibilities. We assess the likelihood that a particular candidate will contribute to the Company’s overall goals, and beyond their specifically assigned tasks. Depending on the position, our recruitment reach can be local as well as national. We provide competitive compensation and best in class benefits that are tailored specifically to the needs and requests of our employees. During 2021 and 2022, we worked to manage through the effects of the COVID-19 pandemic and entered 2023 stronger than ever. As appropriate, others were provided the option of working remotely or at our facilities with appropriate safeguards. We uphold our commitment to shareholders by working hard and being thoughtful and deliberate in how we use resources. Available Information We file Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other information with the Securities and Exchange Commission (SEC). Our filings with the SEC are available free of charge on the SEC’s website at www.sec.gov and on our website under the “Investors” tab as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. 4 ITEM 1A. RISK FACTORS An investment in our securities involves a high degree of risk. This Annual Report on Form 10-K contains the risks applicable to an investment in our securities. The risks and uncertainties we have described are not the only ones we face. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our operations. The occurrence of any of these known or unknown risks might cause you to lose all or part of your investment in the offered securities. Risk Factors Summary Risks Relating to Our Business and Industry ● We operate in industries that are cyclical and sensitive to general economic conditions, which could have a material adverse effect on our operating results, financial condition and cash flows. ● Changing conditions in global markets including the impact of sanctions and tariffs, quotas and other trade actions and import restrictions may adversely affect our operating results, financial condition and cash flows. ● Changes in the availability or price of inputs such as raw materials and end-of-life vehicles could reduce our sales. ● Significant decreases in scrap metal prices may adversely impact our operating results. ● Imbalances in supply and demand conditions in the global steel industry may reduce demand for our products. ● Impairment of long-lived assets and equity investments may adversely affect our operating results. ● We may be unable to renew facility leases, thus restricting our ability to operate. ● Increases in the value of the U.S. dollar relative to other currencies may reduce the demand for our products. ● Equipment upgrades, equipment failures and facility damage may lead to production curtailments or shutdowns. ● We are subject to legal proceedings and legal compliance risks that may adversely impact our financial condition, results of operations and liquidity. ● Climate change may adversely impact our facilities and our ongoing operations. ● Catastrophic events may disrupt our business and impair our ability to provide our platform to clients and consumers, resulting in costs for remediation, client and consumer dissatisfaction, and other business or financial losses. ● We depend on a small number of suppliers for the materials necessary to run our business. The loss of these suppliers, or their failure to supply us with these materials, would materially and adversely affect our business. ● We have substantial customer concentration, with a limited number of customers accounting for a substantial portion of our 2023 and 2022 revenues. ● We have a limited history upon which an evaluation of our prospects and future performance can be made and have no history of profitable operations. ● We are highly dependent on the services of key executives, the loss of whom could materially harm our business and our strategic direction. If we lose key management or significant personnel, cannot recruit qualified employees, directors, officers, or other personnel or experience increases in our compensation costs, our business may materially suffer. ● We may need to obtain additional financing to fund our operations. ● Our independent registered accounting firm has expressed concerns about our ability to continue as a going concern. ● In the past we have experienced material weaknesses in our internal control over financial reporting, which if continued, could impair our financial condition. Risks Relating to Government Laws and Regulations ● Tax increases and changes in tax rules may adversely affect our financial results. ● We may not realize our deferred tax assets in the future. ● Environmental compliance costs and potential environmental liabilities may have a material adverse effect on our financial condition and results of operations. ● Governmental agencies may refuse to grant or renew our licenses and permits, thus restricting our ability to operate. ● Compliance with existing and future climate change and greenhouse gas emission laws and regulations may adversely impact our operating results. 5 Risks Relating to Intellectual Property ● We may not be able to protect our intellectual property rights throughout the world. ● We may be involved in lawsuits to protect or enforce our intellectual property, which could be expensive, time-consuming and unsuccessful and the outcome might have an adverse effect on the success of our business. ● We may be subject to claims by third parties asserting that our employees or we have misappropriated their intellectual property or claiming ownership of what we regard as our own intellectual property. Risks Related to our Common Stock ● The market price of our common stock may be volatile and adversely affected by several factors. ● If our shares of common stock become subject to the penny stock rules, it would become more difficult to trade our shares. ● We are a “smaller reporting company” within the meaning of the Securities Act, and if we decide to take advantage of certain exemptions from various reporting requirements applicable to smaller reporting companies, our common stock could be less attractive to investors. ● We do not anticipate paying dividends on our common stock, and investors may lose the entire amount of their investment. ● You could lose some or all of your investment. ● Our management controls a large block of our common stock that will allow them to control us. ● Because we can issue additional shares of Common Stock, purchasers of our Common Stock may incur immediate dilution and experience further dilution. ● Provisions in our Second Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws and Delaware law might discourage, delay or prevent a change in control of our Company or changes in our management and, therefore, depress the market price of our Common Stock. ● If securities or industry research analysts do not publish research or reports about our business, or if they issue unfavorable or misleading opinions regarding common stock, the market price and trading volume of our Common Stock could decline. ● Future sales and issuances of our Common Stock or rights to purchase our Common Stock, including pursuant to our equity incentive plans, could result in additional dilution of the percentage ownership of our stockholders and could cause our stock price to fall. ● We have broad discretion in the use of the net proceeds from our public offerings and may not use them effectively. ● Our disclosure controls and procedures may not prevent or detect all errors or acts of fraud. ● As a newly Nasdaq-listed company, we will incur material increased costs and become subject to additional regulations and requirements. Risks Relating to Our Business and Industry We operate in industries that are cyclical and sensitive to general economic conditions, which could have a material adverse effect on our operating results, financial condition and cash flows. Demand for most of our products is cyclical in nature and sensitive to general economic conditions. The timing and magnitude of the cycles in the industries in which our products are used, including global steel manufacturing and nonresidential and infrastructure construction in the U.S., are difficult to predict. The cyclical nature of our operations tends to reflect and be amplified by changes in economic conditions, both domestically and internationally, and foreign currency exchange fluctuations. Economic downturns or a prolonged period of slow growth in the U.S. and foreign markets or any of the industries in which we operate could have a material adverse effect on our results of operations, financial condition and cash flows. Changing conditions in global markets including the impact of sanctions and tariffs, quotas and other trade actions and import restrictions may adversely affect our operating results, financial condition and cash flows. A significant portion of the metal we process is sold to end customers located outside the U.S., including countries in Asia, the Mediterranean region and North, Central and South America. Our ability to sell our products profitably, or at all, is subject to a number of risks including adverse impacts of political, economic, military, terrorist or major pandemic events; labor and social issues; legal and regulatory requirements or limitations imposed by foreign governments including quotas, tariffs or other protectionist trade barriers, sanctions, adverse tax law changes, nationalization, currency restrictions, or import restrictions for certain types of products we export; and disruptions or delays in shipments caused by customs compliance or other actions of government agencies. The occurrence of such events and conditions may adversely affect our operating results, financial condition and cash flows. 6 For example, in fiscal 2017, regulators in China began implementing the National Sword Initiative involving inspections of Chinese industrial enterprises, including recyclers, in order to identify rules violations with respect to discharge of pollutants or illegally transferred scrap imports. Restrictions resulting from the National Sword Initiative include a ban on certain imported recycled products, lower contamination limits for permitted recycled materials, and more comprehensive pre- and post-shipment inspection requirements. Disruptions in pre-inspection certifications and stringent inspection procedures at certain Chinese destination ports have limited access to these destinations and resulted in the renegotiation or cancellation of certain nonferrous customer contracts in connection with the redirection of such shipments to alternate destinations. Commencing July 1, 2019, China imposed further restrictions in the form of import license requirements and quotas on certain scrap products, including certain nonferrous products we sell. Chinese import licenses and quotas are issued to Chinese scrap consumers on a quarterly basis for the importation of scrap products. Since the implementation of this program, the size of import quotas has been steadily reduced on a quarter-over-quarter basis. We have continued to sell our recycled metal products into China; however, additional or modified license requirements and quotas, as well as additional product quality requirements, may be issued in the future. We believe that the potential impact on our recycling operations of the Chinese regulatory actions described above could include requirements that would necessitate additional processing and packaging of certain nonferrous recycled scrap metal products, increased inspection and certification activities with respect to exports to China, or a change in the use of our sales channels in the event of delays in the issuance of licenses, restrictive quotas or an outright ban on certain or all of our recycled metals products by China. As regulatory developments progress, we may need to make further investments in nonferrous processing equipment beyond existing planned investments where economically justified, incur additional costs in order to comply with new inspection requirements, or seek alternative markets for the impacted products, which may result in lower sales prices or higher costs and may adversely impact our business or results of operations. In March 2018, the U.S. imposed a 25% tariff on certain imported steel products and a 10% tariff on certain imported aluminum products under Section 232 of the Trade Expansion Act of 1962. These new tariffs, along with other U.S. trade actions, have triggered retaliatory actions by certain affected countries, and other foreign governments have initiated or are considering imposing trade measures on other U.S. goods. For example, China has imposed a series of retaliatory tariffs on certain U.S. products, including a 25 percent tariff on all grades of U.S. scrap and an additional 25 percent tariff on U.S. aluminum scrap. These tariffs and other trade actions could result in a decrease in international steel demand beyond that already experienced and further negatively impact demand for our products, which would adversely impact our business. Given the uncertainty regarding the scope and duration of these trade actions by the U.S. or other countries, the impact of the trade actions on our operations or results remains uncertain, but this impact could be material. Changes in the availability or price of inputs such as raw materials and end-of-life vehicles could reduce our sales. Our businesses require certain materials that are sourced from third party suppliers. Industry supply conditions generally involve risks, including the possibility of shortages of raw materials, increases in raw material and other input costs, and reduced control over delivery schedules. We procure our scrap inventory from numerous sources. These suppliers generally are not bound by long-term contracts and have no obligation to sell scrap metal to us. In periods of declining or lower scrap metal prices suppliers may elect to hold scrap metal to wait for higher prices or intentionally slow their metal collection activities, tightening supply. If a substantial number of suppliers cease selling scrap metal to us, we will be unable to recycle metal at desired levels, and our results of operations and financial condition could be materially adversely affected. For instance, in the second quarter of fiscal 2020 a lower price environment for recycled metals in combination with economic and other restrictions on suppliers relating to COVID-19 severely constricted the supply of scrap metal including end-of-life vehicles, which resulted in significantly reduced processed volumes. A slowdown of industrial production in the U.S. may also reduce the supply of industrial grades of metal to the metals recycling industry, resulting in less recyclable metal available to process and market. Increased competition for domestic scrap metal, including as a result of overcapacity in the scrap recycling industry in the U.S. and Canada, may also reduce the supply of scrap metal available to us. Failure to obtain a steady supply of scrap material could both adversely impact our ability to meet sales commitments and reduce our operating margins. Failure to obtain an adequate supply of end-of-life vehicles could adversely impact our ability to attract customers and charge admission fees and reduce our parts sales. Failure to obtain raw materials and other inputs to steel production such as graphite electrodes, alloys and other required consumables, could adversely impact our ability to make steel to the specifications of our customers. 7 Significant decreases in scrap metal prices may adversely impact our operating results. The timing and magnitude of the cycles in the industries in which we operate are difficult to predict and are influenced by different economic conditions in the domestic market, where we typically acquire our raw materials, and foreign markets, where we typically sell the majority of our products. Purchase prices for scrap metal including end-of-life vehicles and selling prices for recycled scrap metal are subject to market forces beyond our control. While we attempt to respond to changing recycled scrap metal selling prices through adjustments to our metal purchase prices, our ability to do so is limited by competitive and other market factors. As a result, we may not be able to reduce our metal purchase prices to fully offset a sharp reduction in recycled scrap metal sales prices, which may adversely impact our operating income and cash flows. In addition, a rapid decrease in selling prices may compress our operating margins due to the impact of average inventory cost accounting, which causes cost of goods sold recognized in the Consolidated Statements of Operations to decrease at a slower rate than metal purchase prices. For instance, in fiscal 2020, weaker market conditions for recycled metals, including as a result of the sharp decline in global economic conditions during the third quarter of fiscal 2020 in large part due to the impacts of the COVID-19 pandemic, and structural changes to the market for certain recycled nonferrous products primarily from Chinese import restrictions and tariffs, resulted in periods of sharply declining commodity prices and lower average net selling prices for our ferrous and nonferrous recycled metal products compared to fiscal 2019. As a result, operating margins in fiscal 2020 compressed as the decline in average net selling prices for our recycled metal products outpaced the reduction in purchase costs for raw materials. In fiscal 2021, prices for our ferrous and non-ferrous metals increased significantly, resulting in an increase in revenue and purchasing costs for raw materials. In fiscal 2022, prices for our ferrous and non-ferrous metals declined during the second half of the year, but remained historically strong, resulting in a decrease in revenue and purchasing costs for raw materials. Imbalances in supply and demand conditions in the global steel industry may reduce demand for our products. Economic expansions and contractions in global economies can result in supply and demand imbalances in the global steel industry that can significantly affect the price of commodities used and sold by our business, as well as the price of and demand for finished steel products. In a number of foreign countries, such as China, steel producers are generally government-owned and may therefore make production decisions based on political or other factors that do not reflect free market conditions. In the past, overcapacity and excess steel production in these foreign countries resulted in the export of aggressively priced semi-finished and finished steel products. This led to disruptions in steel-making operations within other countries, negatively impacting demand for our recycled scrap metal. Existing or new trade laws and regulations may cause or be inadequate to prevent disadvantageous trade practices, which could have a material adverse effect on our financial condition and results of operations. Although trade regulations restrict or impose duties on the importation of certain products, if foreign steel production significantly exceeds consumption in those countries, global demand for our recycled scrap metal products could decline and imports of steel products into the U.S. could increase, resulting in lower volumes and selling prices for our recycled metal products and finished steel products. Impairment of long-lived assets and equity investments may adversely affect our operating results. Our long-lived asset groups are subject to an impairment assessment when certain triggering events or circumstances indicate that their carrying value may be impaired. If the carrying value exceeds our estimate of future undiscounted cash flows of the operations related to the asset group, an impairment is recorded for the difference between the carrying amount and the fair value of the asset group. The results of these tests for potential impairment may be adversely affected by unfavorable market conditions, our financial performance trends, or an increase in interest rates, among other factors. If, as a result of the impairment test, we determine that the fair value of any of our long-lived asset groups is less than its carrying amount, we may incur an impairment charge that could have a material adverse effect on our financial condition and results of operations. 8 We may be unable to renew facility leases, thus restricting our ability to operate. We lease a significant portion of our facilities. The cost to renew such leases may increase significantly, and we may not be able to renew such leases on same or commercially reasonable terms, if not at all. Failure to renew these leases or timely find suitable alternative locations for our facilities may impact our ability to continue operations within certain geographic areas, which could have a material adverse effect on our financial condition, results of operations and cash flows. Increases in the value of the U.S. dollar relative to other currencies may reduce the demand for our products. A significant portion of our recycled scrap metal revenues is generated from sales to foreign customers, which are denominated in U.S. dollars, including customers located in Asia, the Mediterranean region and North, Central and South America. A strengthening U.S. dollar, as experienced during recent years including fiscal 2020, makes our products more expensive for non-U.S. customers, which may negatively impact export sales. A strengthening U.S. dollar also makes imported metal products less expensive, which may result in an increase in imports of steel products into the U.S. As a result, our finished steel products, which are made in the U.S., may become more expensive for our U.S. customers relative to imported steel products thereby reducing demand for our products. Equipment upgrades, equipment failures and facility damage may lead to production curtailments or shutdowns. Our business operations and recycling and manufacturing processes depend on critical pieces of equipment, including information technology equipment, shredders, nonferrous sorting technology, furnaces and a rolling mill, which may be out of service occasionally for scheduled upgrades or maintenance or as a result of unanticipated failures. Our facilities are subject to equipment failures and the risk of catastrophic loss due to unanticipated events such as fires, earthquakes, accidents or violent weather conditions. Interruptions in our processing and production capabilities and shutdowns resulting from unanticipated events could have a material adverse effect on our financial condition, results of operations and cash flows. We are subject to legal proceedings and legal compliance risks that may adversely impact our financial condition, results of operations and liquidity. We spend substantial resources ensuring that we comply with domestic and foreign regulations, contractual obligations and other legal standards. Notwithstanding this, we are subject to a variety of legal proceedings and compliance risks in respect of various matters, including regulatory, safety, environmental, employment, transportation, intellectual property, contractual, import/export, international trade and governmental matters that arise in the course of our business and in our industry. An outcome in an unusual or significant legal proceeding or compliance investigation in excess of insurance recoveries could adversely affect our financial condition and results of operations. For information regarding our current significant legal proceedings and contingencies, see “Legal Proceedings” in Part I, Item 3 and “Contingencies – Other” within Note 11 – Commitments and Contingencies in the notes to the financial statements. Climate change may adversely impact our facilities and our ongoing operations. The potential physical impacts of climate change on our operations are highly uncertain and depend upon the unique geographic and environmental factors present, for example rising sea levels at deep water port facilities, changing storm patterns and intensities, and changing temperature levels. As many of our recycling facilities are located near deep water ports, rising sea levels may disrupt our ability to receive scrap metal, process the scrap metal through our shredders and ship products to our customers. Extreme weather events and conditions, such as hurricanes, thunderstorms, tornadoes, wildfires and snow or ice storms, may increase our costs or cause damage to our facilities, and any damage resulting from extreme weather may not be fully insured. Increased frequency and duration of adverse weather events and conditions may also inhibit construction activity utilizing our products, scrap metal inflows to our recycling facilities, and retail admissions and parts sales at our auto parts stores. Potential adverse impacts from climate change, including rising temperatures and extreme weather events and conditions, may create health and safety issues for employees operating at our facilities and may lead to an inability to maintain standard operating hours. 9 Catastrophic events may disrupt our business and impair our ability to provide our platform to clients and consumers, resulting in costs for remediation, client and consumer dissatisfaction, and other business or financial losses. Our operations depend, in part, on our ability to protect our facilities against damage or interruption from natural disasters, power or telecommunications failures, criminal acts and similar events. Despite precautions taken at our facilities, the occurrence of a natural disaster, an act of terrorism, vandalism or sabotage, spikes in usage volume or other unanticipated problems at a facility could result in lengthy interruptions in the availability of our platform. Even with current and planned disaster recovery arrangements, our business could be harmed. Also, in the event of damage or interruption, our insurance policies may not adequately compensate us for any losses that we may incur. These factors in turn could further reduce revenue, subject us to liability and lead to decreased usage of our platform and decrease sales of our advertising placements, any of which could harm our business. We depend on a small number of suppliers for the materials necessary to run our business. The loss of these suppliers, or their failure to supply us with these materials, would materially and adversely affect our business. We depend on the availability of key materials for our business from a small number of third-party suppliers. Because there are a limited number of suppliers for these materials, we may need to engage alternate suppliers to prevent a possible disruption. We do not have any control over the availability of materials. If we or our manufacturers are unable to purchase these materials on acceptable terms, at sufficient quality levels, or in adequate quantities, if at all, the successful operation of our business would be delayed or there would be a shortage in supply, which would impair our ability to generate revenues from our business. We have substantial customer concentration, with a limited number of customers accounting for a substantial portion of our 2023 and 2022 revenues. We currently derive a significant portion of our revenues from three large corporate customers. For the fiscal year ended December 31, 2023, two certain large customers individually accounted for $20,716,044 and $2,001,847 or approximately 58.08% and 5.61% of our revenues, respectively. For the fiscal year ended December 31, 2022, three certain large customers individually accounted for $17,962,176, $5,332,834, and $4,301,328, or approximately 53%, 16%, and 13% of our revenues, respectively. There are inherent risks whenever a large percentage of total revenues are concentrated with a limited number of customers. It is not possible for us to predict the future level of demand for our services that will be generated by this customer or the future demand for the products and services of this customer in the end-user marketplace. In addition, revenues from larger customers, especially our largest customer may fluctuate from time to time based on the commencement and completion of projects, the timing of which may be affected by market conditions or other facts, some of which may be outside of our control. Further, some of our contracts with larger customers permit them to terminate our relationship at any time (subject to notice and certain other provisions). If any of these customers experience declining or delayed sales due to market, economic or competitive conditions, we could be pressured to reduce the prices we charge for our services which could have an adverse effect on our margins and financial position and could negatively affect our revenues and results of operations and/or trading price of our common stock. If our largest customer terminates our services, such termination would negatively affect our revenues and results of operations and/or trading price of our common stock. We have a limited history upon which an evaluation of our prospects and future performance can be made and have no history of profitable operations. We were incorporated in April 2013 and have a limited operating history and our business is subject to all of the risks inherent in the establishment of a new business enterprise. Our likelihood of success must be considered in light of the problems, expenses, difficulties, complications and delays frequently encountered in connection with development and expansion of a new business enterprise. We may sustain losses in the future as we implement our business plan. There can be no assurance that we will operate profitably. 10 We are highly dependent on the services of key executives, the loss of whom could materially harm our business and our strategic direction. If we lose key management or significant personnel, cannot recruit qualified employees, directors, officers, or other personnel or experience increases in our compensation costs, our business may materially suffer. We are highly dependent on our management team, specifically our Chief Executive Officer, Danny Meeks. While we have an employment agreement with Danny Meeks, such employment agreement permits Mr. Meeks to terminate such agreement upon notice. If we lose key employees, our business may suffer. Furthermore, our future success will also depend in part on the continued service of our key management personnel and our ability to identify, hire, and retain additional personnel. We carry “key-man” life insurance on the life of our executive officer. We experience intense competition for qualified personnel and may be unable to attract and retain the personnel necessary for the development of our business. Because of this competition, our compensation costs may increase significantly. We may need to obtain additional financing to fund our operations. We may need additional capital in the future to continue to execute our business plan. Therefore, we may be dependent upon additional capital in the form of either debt or equity to continue our operations. At the present time, we do not have arrangements to raise additional capital, and we may need to identify potential investors and negotiate appropriate arrangements with them. We may not be able to arrange enough investment within the time the investment is required or that if it is arranged, that it will be on favorable terms. If we cannot obtain the needed capital, we may not be able to become profitable and may have to curtail or cease our operations. Additional equity financing, if available, may be dilutive to the holders of our capital stock. Debt financing may involve significant cash payment obligations, covenants and financial ratios that may restrict our ability to operate and grow our business. Our independent registered accounting firm has expressed concerns about our ability to continue as a going concern. The report of our independent registered accounting firm expresses concern about our ability to continue as a going concern based on our historical losses from operations and the potential need for additional financing to fund our operations. It is not possible at this time for us to predict with assurance the potential success of our business. If we cannot continue as a viable entity, we may be unable to continue our operations and you may lose some or all of your investment in our securities. In the past we have experienced material weaknesses in our internal control over financial reporting, which if continued, could impair our financial condition. As reported in Item 9A of this Annual Report on Form 10-K, our management concluded that our internal control over financial reporting was not effective as of December 31, 2023 and 2022 due to material weaknesses regarding our controls and procedures. The Company did not have sufficient segregation of duties to support its internal control over financial reporting. Due to our small size and limited resources, segregation of all conflicting duties has not always been possible and may not be economically feasible in the near term; however, we do expect to hire additional accounting personnel in the near future. We have and do endeavor to take appropriate and reasonable steps to make improvements to remediate these deficiencies. If we have continued material weaknesses in our internal financial reporting, our financial condition could be impaired or we may have to restate our financials, which could cause us to expend additional funds that would have a material impact on our ability to generate profits and on the success of our business. Risks Relating to Government Laws and Regulations Tax increases and changes in tax rules may adversely affect our financial results. As a company conducting business on a global basis with physical operations throughout North America, we are exposed, both directly and indirectly, to the effects of changes in U.S., state, local and foreign tax rules. Taxes for financial reporting purposes and cash tax liabilities in the future may be adversely affected by changes in such tax rules. In many cases, such changes put us at a competitive disadvantage compared to some of our major competitors, to the extent we are unable to pass the tax costs through to our customers. 11 We may not realize our deferred tax assets in the future. The assessment of recoverability of our deferred tax assets is based on an evaluation of existing positive and negative evidence as to whether it is more-likely-than-not that they will be realized. If negative evidence outweighs positive evidence, a valuation allowance is required. Impairment of deferred tax assets may result from significant negative industry or economic trends, a decrease in earnings performance and projections of future taxable income, adverse changes in laws or regulations, and a variety of other factors. Impairment of deferred tax assets could have a material adverse impact on our results of operations and financial condition and could result in not realizing the deferred tax assets. Deferred tax assets may require further valuation allowances if it is not more-likely-than-not that the deferred tax assets will be realized. Environmental compliance costs and potential environmental liabilities may have a material adverse effect on our financial condition and results of operations. Compliance with environmental laws and regulations is a significant factor in our business. We are subject to local, state and federal environmental laws and regulations in the U.S. and other countries relating to, among other matters: ● Waste disposal; ● Air emissions; ● Waste water and storm water management, treatment and discharge; ● The use and treatment of groundwater; ● Soil and groundwater contamination and remediation; ● Climate change; ● Generation, discharge, storage, handling and disposal of hazardous materials and secondary materials; and ● Employee health and safety. We are also required to obtain environmental permits from governmental authorities for certain operations. Violation of or failure to obtain permits or comply with these laws or regulations could result in our business being fined or otherwise sanctioned by regulators or becoming subject to litigation by private parties. Future environmental compliance costs, including capital expenditures for environmental projects, may increase because of new laws and regulations, changing interpretations and stricter enforcement of current laws and regulations by regulatory authorities, expanding emissions, groundwater and other testing requirements and new information on emission or contaminant levels, uncertainty regarding adequate pollution control levels, the future costs of pollution control technology and issues related to climate change. We have seen an increased focus by federal, state and local regulators on metals recycling and auto dismantling facilities and new or expanding regulatory requirements. Our operations use, handle and generate hazardous substances. In addition, previous operations by others at facilities that we currently or formerly owned, operated or otherwise used may have caused contamination from hazardous substances. As a result, we are exposed to possible claims, including government fines and penalties, costs for investigation and clean-up activities, claims for natural resources damages and claims by third parties for personal injury and property damage, under environmental laws and regulations, especially for the remediation of waterways and soil or groundwater contamination. These laws can impose liability for the cleanup of hazardous substances even if the owner or operator was neither aware of nor responsible for the release of the hazardous substances. We have, in the past, been found not to be in compliance with certain of these laws and regulations, and have incurred liabilities, expenditures, fines and penalties associated with such violations. Environmental compliance costs and potential environmental liabilities could have a material adverse effect on our financial condition, results of operations and cash flows. See “Contingencies – Environmental” in Note 11 – Commitments and Contingencies in the Notes to the Consolidated Financial Statements. 12 Governmental agencies may refuse to grant or renew our licenses and permits, thus restricting our ability to operate. We conduct certain of our operations subject to licenses, permits and approvals from state and local governments. Governmental agencies often resist the establishment of certain types of facilities in their communities, including auto parts facilities. Changes in zoning and increased residential and mixed-use development near our facilities are reducing the buffer zones and creating land use conflicts with heavy industrial uses such as ours. This could result in increased complaints, increased inspections and enforcement including fines and penalties, operating restrictions, the need for additional capital expenditures and increased opposition to maintaining or renewing required approvals, licenses and permits. In addition, from time to time, both the U.S. and foreign governments impose regulations and restrictions on trade in the markets in which we operate. In some countries, governments require us to apply for certificates or registration before allowing shipment of recycled metal to customers in those countries. There can be no assurance that future approvals, licenses and permits will be granted or that we will be able to maintain and renew the approvals, licenses and permits we currently hold. Failure to obtain these approvals could cause us to limit or discontinue operations in these locations or prevent us from developing or acquiring new facilities, which could have a material adverse effect on our financial condition and results of operations. Compliance with existing and future climate change and greenhouse gas emission laws and regulations may adversely impact our operating results. Future legislation or increased regulation regarding climate change and greenhouse gas “GHG” emissions could impose significant costs on our business and our customers and suppliers, including increased energy, capital equipment, emissions controls, environmental monitoring and reporting and other costs in order to comply with laws and regulations concerning and limitations imposed on climate change and GHG emissions. The potential costs of allowances, taxes, fees, offsets or credits that may be part of “cap and trade” programs or similar future legislative or regulatory measures are still uncertain and the future of these programs or measures is unknown. Future climate change and GHG laws or regulations could negatively impact our ability (and that of our customers and suppliers) to compete with companies situated in areas not subject to such requirements. Until the timing, scope and extent of any future laws or regulations becomes known, we cannot predict the effect on our financial condition, operating performance or ability to compete. Furthermore, even without such laws or regulations, increased awareness and any adverse publicity in the global marketplace about the GHGs emitted by companies in the metals recycling and steel manufacturing industries could harm our reputation and reduce customer demand for our products. See “Business – Environmental Matters” in Part I, Item 1 of this Annual Report for further detail. Risks Relating to Intellectual Property We may not be able to protect our intellectual property rights throughout the world. The success of our business depends on our continued ability to use our existing tradename in order to increase our brand awareness. The unauthorized use or other misappropriation of any our brand names could diminish the value of our business which would have a material adverse effect on our financial condition and results of operation. We may be involved in lawsuits to protect or enforce our intellectual property, which could be expensive, time-consuming and unsuccessful and the outcome might have an adverse effect on the success of our business. Competitors may infringe our trademarks or other intellectual property. Moreover, it may be difficult or impossible to obtain evidence of infringement by a competitor. To counter infringement or unauthorized use, we may be required to file infringement claims on an individual basis, which can be expensive and time-consuming and divert the time and attention of our management. There can be no assurance that we will have sufficient financial or other resources to file and pursue such infringement claims, which typically last for years before they are concluded. We may be subject to claims by third parties asserting that our employees or we have misappropriated their intellectual property or claiming ownership of what we regard as our own intellectual property. Some of our employees may have executed non-disclosure and non-competition agreements in connection with their previous employment. Although we try to ensure that our employees 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 these employees have used or disclosed confidential information or intellectual property, including trade secrets or other proprietary information, of any such employee’s former employer. Litigation may be necessary to defend against these claims. We may also face claims that our use of technology licensed or otherwise obtained from a third party infringes the rights of others, under such case we may not be allowed to continue using such technology and selling our inventories containing such technology. In such cases, we may seek indemnification from our licensors/suppliers under our contracts with them. However, indemnification may be unavailable or insufficient to cover our costs and losses, depending on our use of the technology, whether we choose to retain control over conduct of the litigation, and other factors. In addition, we may have to find substitute to keep using similar technology to our products, which may be time-consuming and costly, if not impossible, upon such period our sales or manufacture of certain products may be negatively influenced. 13 Risks Relating to Ownership of our Common Stock The market price of our Common Stock may be volatile and adversely affected by several factors. The market price of our Common Stock could fluctuate significantly in response to various factors and events, including, but not limited to: our ability to execute our business plan; operating results below expectations; our issuance of additional securities, including debt or equity or a combination thereof, necessary to fund our operating expenses; announcements of technological innovations or new products by us or our competitors; and period-to-period fluctuations in our financial results. In addition, the securities markets have from time-to-time experienced significant price and volume fluctuations that are unrelated to the operating performance of particular companies. These market fluctuations may also materially and adversely affect the market price of our Common Stock. If our shares of common stock become subject to the penny stock rules, it would become more difficult to trade our shares. The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges or authorized for quotation on certain automated quotation systems, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system. If we do not obtain a listing on a national securities exchange and if the price of our common stock is less than $5.00, our common stock could be deemed a penny stock. The penny stock rules require a broker-dealer, before a transaction in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document containing specified information. In addition, the penny stock rules require that before effecting any transaction in a penny stock not otherwise exempt from those rules, a broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive (i) the purchaser’s written acknowledgment of the receipt of a risk disclosure statement; (ii) a written agreement to transactions involving penny stocks; and (iii) a signed and dated copy of a written suitability statement. These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our common stock, and therefore stockholders may have difficulty selling their shares. We are a “smaller reporting company” within the meaning of Rule 12b-2 of the Exchange Act, and if we decide to take advantage of certain exemptions from various reporting requirements applicable to smaller reporting companies, our Common Stock could be less attractive to investors. We qualify as a “smaller reporting company,” meaning that we are not an investment company, an asset-backed issuer, or a majority-owned subsidiary of a parent company that is not a “smaller reporting company,” and have either: (i) a public float of less than $250 million or (ii) annual revenues of less than $100 million during the most recently completed fiscal year and (A) no public float or (B) a public float of less than $700 million. As a “smaller reporting company,” we are entitled to rely on certain reduced disclosure requirements, such as an exemption from providing executive compensation information in our periodic reports and proxy statements. We are also exempt from the auditor attestation requirements provided in Section 404(b) of the Sarbanes-Oxley Act. These exemptions and reduced disclosures in our SEC filings due to our status as a smaller reporting company may make it harder for investors to analyze our results of operations and financial prospects. We cannot predict if investors will find our Common Stock less attractive because we may rely on these exemptions. If some investors find our Common Stock or warrants less attractive as a result, there may be a less active trading market for our Common Stock and our stock prices may be more volatile. 14 We do not anticipate paying dividends on our Common Stock, and investors may lose the entire amount of their investment. Cash dividends have never been declared or paid on our Common Stock, and we do not anticipate such a declaration or payment for the foreseeable future. We expect to use future earnings, if any, to fund business growth. Therefore, stockholders will not receive any funds absent a sale of their shares of common stock. If we do not pay dividends, our Common Stock may be less valuable because a return on your investment will only occur if our stock price appreciates. We cannot assure stockholders of a positive return on their investment when they sell their shares, nor can we assure that stockholders will not lose the entire amount of their investment. You could lose some or all of your investment. An investment in our securities is speculative and involves a high degree of risk. Potential investors should be aware that the value of an investment in the Company may go down as well as up. In addition, there can be no certainty that the market value of an investment in the Company will fully reflect its underlying value. You could lose some or all of your investment. Our management controls a large block of our Common Stock that will allow them to control us. As of April 12, 2024, members of our management team beneficially own approximately 8.18% of our outstanding common stock. As a result, management may have the ability to control substantially all matters submitted to our stockholders for approval including: ● Election and removal of our directors; ● Amendment of our Second Amended and Restated Certificate of Incorporation or Amended and Restated Bylaws; and ● Adoption of measures that could delay or prevent a change in control or impede a merger, takeover or other business combination involving us. In addition, management’s stock ownership may discourage a potential acquirer from making a tender offer or otherwise attempting to obtain control of us, which in turn could reduce our stock price or prevent our stockholders from realizing a premium over our stock price. Any additional investors will own a minority percentage of our common stock and will have minority voting rights. Because we can issue additional shares of Common Stock, purchasers of our Common Stock may incur immediate dilution and experience further dilution. We are authorized to issue up to 1,200,000,000 shares of Common Stock, of which 44,000,718 shares of Common Stock are issued and outstanding as of April 9, 2024. Our Board of Directors has the authority to cause us to issue additional shares of Common Stock without consent of any of stockholders. Consequently, our stockholders may experience further dilution in their ownership of our stock in the future, which could have an adverse effect on the trading market for our Common Stock. Provisions in our Second Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws and Delaware law might discourage, delay or prevent a change in control of our Company or changes in our management and, therefore, depress the market price of our Common Stock. Our Second Amended and Restated Certificate of Incorporation provides that all Internal Corporate Claims must be brought solely and exclusively in the Court of Chancery of the State of Delaware (or, if such court does not have jurisdiction, the Superior Court of the State of Delaware, or, if such other court does not have jurisdiction, the United States District Court for the District of Delaware). The exclusive forum provision may limit a stockholders’ ability to bring a claim in a judicial forum that it finds favorable for disputes based upon Internal Corporate Claims, which may discourage lawsuits against us or our current or former directors or officers and/or stockholders in such capacity. In addition, if a court were to find this exclusive forum provision to be inapplicable or unenforceable in an action, we may incur costs associated with resolving the dispute in other jurisdictions, which could have a material adverse effect on our business and operations. 15 If securities or industry research analysts do not publish research or reports about our business, or if they issue an unfavorable or misleading opinion regarding our common stock, the market price and trading volume of our Common Stock could decline. The trading market for our Common Stock will rely in part on the research and reports that securities or industry research analysts, over whom we have no control, publish about us and our business. If any of the analysts who cover us issue an adverse or misleading opinion regarding us, our business model, our intellectual property or our stock performance, our stock price would likely decline. If one or more of these analysts cease coverage of us or fail to publish reports on us regularly, we could lose visibility in the financial markets, which in turn could cause our stock price or trading volume to decline. Future sales and issuances of our Common Stock or rights to purchase our Common Stock, including pursuant to our equity incentive plans, could result in additional dilution of the percentage ownership of our stockholders and could cause our stock price to fall. We expect that significant additional capital may be needed in the future to continue our planned operations, including expanded research and development activities and costs associated with operating a public company. To raise capital, we may sell Common Stock, convertible securities or other equity securities in one or more transactions at prices and in a manner we determine from time to time. If we sell common stock, convertible securities or other equity securities, investors may be materially diluted by subsequent sales. Such sales may also result in material dilution to our existing stockholders, and new investors could gain rights, preferences and privileges senior to the holders of our common stock. We have broad discretion in the use of the net proceeds from our public offerings and may not use them effectively. Our management has broad discretion in the application of the net proceeds from our public offerings, and you will be relying on the judgment of our management regarding the application of these proceeds. Our management might not apply the net proceeds from our public offerings in ways that ultimately increase the value of your investment. If we do not invest or apply the net proceeds from our public offerings in ways that enhance stockholder value, we may fail to achieve expected financial results, which could cause our stock price to decline. Our disclosure controls and procedures may not prevent or detect all errors or acts of fraud. We are subject to the periodic reporting requirements of the Exchange Act. We designed our disclosure controls and procedures to reasonably assure that information we must disclose in reports we file or submit under the Exchange Act is accumulated and communicated to management and recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. We believe that any disclosure controls and procedures or internal controls and procedures, no matter how well-conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by an unauthorized override of the controls. Accordingly, because of the inherent limitations in our control system, misstatements due to error or fraud may occur and not be detected. As a newly Nasdaq-listed company, we will incur material increased costs and become subject to additional regulations and requirements. As a newly Nasdaq-listed public company, we will incur material additional legal, accounting and other expenses including recruiting and retaining qualified independent directors, payment of annual Nasdaq fees, and satisfying Nasdaq’s standards for companies listed with it. Because our common stock is listed on the Nasdaq, we must meet certain financial and liquidity criteria to maintain such listing. If we violate Nasdaq’s listing requirements, our common stock may be delisted. If we fail to meet any of the Nasdaq’s listing standards, our common stock may be delisted. In addition, our Board may determine that the cost of maintaining our listing on a national securities exchange outweighs the benefits of such listing. A delisting of our common stock from Nasdaq may materially impair our stockholders’ ability to buy and sell our common stock and could have an adverse effect on the market price of, and the efficiency of the trading market for, our common stock. The delisting of our common stock could significantly impair our ability to raise capital and the value of your investment. 16 ITEM 1B. UNRESOLVED STAFF COMMENTS. None. ITEM 1C. CYBERSECURITY Cybersecurity risks are a growing threat to us and other businesses, including our ERP and other third-party providers, which are vulnerable to cyberattacks, malware, and other system failures that may result in unauthorized access, damage, and other harms to our business or reputation. Protecting the confidentiality, integrity, and availability of our business information, intellectual property, customer, patient and employee data, and technology systems is critical to our business and operations, ability to comply with regulatory requirements, and reputation. Accordingly, Cybersecurity is an important and integrated part of the Company’s enterprise risk management function that identifies, monitors, and mitigates business, operational, and legal risks. Accordingly, we have established Cybersecurity standards, policies, and operating procedures, for the purpose of implementing information protection processes and technologies; carrying out Cybersecurity risk detection, identification, assessment, response, and monitoring; assigning responsibility within our organization for risk detection and oversight; implementing Cybersecurity training; governing internal communications regarding Cybersecurity risks; and making required public and regulatory disclosures regarding Cybersecurity threats and incidents. We oversee risks from Cybersecurity threats associated with our use of third-party service providers by requiring our vendors to agree that they have and will maintain appropriate Cybersecurity controls, such as through standard contractual provisions, and by coordinating with key vendors with respect to integration with our systems. Our Cybersecurity risk management program is based on the National Institute of Standards and Technology (“NIST”) framework. Key components of our Cybersecurity risk management program include the use of third-party service providers, as appropriate, to assess, test, or otherwise assist with aspects of our security processes. For example, we employed a third-party cyber risk consultant to assess our overall Cybersecurity risk framework against NIST standards. We have also engaged third-party experts to perform penetration testing of our IT systems, and we have considered the results of such tests to enhance our Cybersecurity systems and controls, as appropriate. Our management, including leaders from our IT, information security, legal, and compliance teams, is responsible for implementing our Cybersecurity standards, policies, and operating procedures, under the ultimate oversight of our Chief Financial Officer. We regularly discuss and assess Cybersecurity risks. Our Audit Committee assists our Board in overseeing Cybersecurity risk management and the integrity of our information technology systems, processes, and data. Periodically, the Audit Committee reviews and discusses with management, and, in its discretion, third party vendors or other external experts, the adequacy of security for our information technology systems, processes, and data; our incident response and contingency plans in the event of a breakdown or security breach affecting the security of our information technology systems or data or the information technology systems, processes, and data of our clients; and any new threats or incidents that have or may impact us. The Audit Committee receives reports on the operation of such programs from the Chief Financial Officer as appropriate. The Audit Committee also reviews management reports regarding the evolving threat environment, vulnerability assessments, and specific Cybersecurity incidents. Periodically, the Audit Committee reports on Cybersecurity matters, incidents, and risk oversight to the Board. Although we have not experienced a cyberattack or other Cybersecurity incident that has materially affected us, we cannot guarantee that we will not experience Cybersecurity incidents that may have a material effect on us in the future. We may not be able to protect our systems and networks, or the confidentiality of our confidential or other information (including personal information), from cyberattacks and other unauthorizedaccess, disclosure, and disruption. ITEM 2. PROPERTIES We lease our scrap yards located at: 22097 Brewers Neck Blvd., Carrollton, VA 23314; 1576 Millpond Rd., Elizabeth City, NC 27909, 130 Courtland Rd., Emporia, VA 23847; 623 Highway 903 N., Greenville, NC 27834; 8952 Richmond Rd., Toano, VA 23168; 945 NC 11N, Kelford, NC 27805; 1100 E Princess Anne Rd, Norfolk, VA 23504; 277 Suburban Drive, Suffolk, VA 23434; 9922 Hwy 17 S., Vanceboro, NC 28586;1040 Oceana Blvd, Virginia Beach, VA 23454; 406 Sandy Street, Fairmont, NC 28340, from DWM Properties, LLC, which is controlled by the Company’s Chief Executive Officer, on a month-to-month basis for an aggregate of $54,970 per month. We lease office space at 505 Crawford Street, Portsmouth, VA 23704 for $1,185 per month. The lease expired on March 31, 2024. On January 24, 2022, the Company entered into leasing agreements for 3,521 square feet of office space commencing upon the completion of tenant improvements which is expected to be on April 1, 2022 but shall be no later than May 1, 2022 (“Commencement Date”). Under the terms of the lease, the Company is required to pay $3,668 for the first twelve months of the lease and increasing by approximately 3% every 12 months thereafter until the expiration of the lease. The lease is for a period of five years from the Commencement Date and the Company was required to make a security deposit of $3,668. The Company does not have an option to extend the lease. We own the property underlying our scrap yard located at 4091 Portsmouth Blvd., Portsmouth, VA 23701. Further, we own properties located at 278 and 276 Suburban Drive, Suffolk, VA 23434 and 4087, 4089, 4091, 4103, 4105 and 4117 Portsmouth Blvd, Portsmouth, VA 23701. We lea se the property located at 101 Freeman Ave, Chesapeake, VA 23324 a s a yard for our truck fleet from DWM Properties, LLC, which is controlled by the Company’s Chief Executive Officer, on a month-to-month basis for $9,000 per month. The lease expires on January 1, 2025 and the Company has two options to extend the lease by 5 years per option. The Company also has the option to extend the term of the lease for an additional year for the next 5 years upon the same terms and conditions. In the event the Company does not exercise the options, the lease will continue on a month-to-month basis. The Company cannot sublease the property under the lease agreement. On March 15, 2024, the Company entered into leasing agreements for a scrap yard located at 3030 E 55th Street, Cleveland, OH 44127. Under the terms of the lease, the Company is required to pay $17,000 from March 1, 2024 to February 28, 2025; $23,000 from March 1, 2025 to February 28, 2026; $23,000 from March 1, 2026 to February 28, 2027; $23,000 from March 1, 2027 to February 28, 2028; and increasing by the greater of 3% and the CPI every 12 months thereafter until the expiration of the lease. The lease is for a period of five years, include two options to extend for five years each, and the Company was required to make a security deposit of $17,000. The Company has the option to purchase the property for $3,277,000 until February 28, 2024. We believe that our facilities are adequate for our current needs and that, if required, we will be able to expand our current space or locate suitable new office space and obtain a suitable replacement for our executive and administrative headquarters. 17 ITEM 3. LEGAL PROCEEDINGS On December 1, 2020, Sheppard, Mullin, Richter & Hampton LLP (“Sheppard Mullin”), the Company’s former securities counsel, filed a demand for arbitration at JAMS in New York, New York against the Company, alleging the Company’s breach of an engagement agreement dated January 4, 2018, and a failure of the Company to pay $487,390.73 of outstanding legal fees to Sheppard Mullin. Sheppard Mullin was awarded $459,250.88 in unpaid legal fees, disbursements and interest on June 25, 2021. A judgement confirming the arbitration award was entered on September 8, 2021 in the Federal District Court located in Denver, Colorado. On September 23, 2021, the Company entered into a Resolution Agreement and Release (the “Resolution Agreement”) with Sheppard Mullin concerning the $459,250.88 judgement entered against the Company. Under the terms of the Resolution Agreement, the Company was required to make a $25,000 initial payment by September 30, 2021 and is required to make $15,000 monthly payments from October 2021 to January 2023 with a final $10,000 payment due in February 2023. The Company has made all of its required payments under the Resolution Agreement. We are unable to estimate a reasonably possible loss or range of loss, if any, that may result from these matters. From time to time, we may be involved in legal proceedings arising in the ordinary course of our business. We investigate these claims as they arise and accrue estimates for resolution of legal and other contingencies when losses are probable and estimable. Regardless of outcome, litigation can have an adverse impact on us due to defense and settlement costs, diversion of management resources, negative publicity and reputational harm, and other factors. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. PART II ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Trading Symbol From April 9, 2015 to October 16, 2019, our common stock was quoted on the OTCQB under the symbol “MSRT.” From October 17, 2019 to February 25, 2022, our common stock was quoted on the OTC Pink Tier of the OTC Markets under the symbol “MSRT.” From February 28 to March 24, 2022, our common stock was quoted on the OTC Pink Tier of the OTC Markets under the symbol “MSRTD.” From March 25, 2022 to July 21, 2022, our common stock was quoted on the OTC Pink Tier of the OTC Markets under the symbol “GWAV.” Since July 22, 2022, our common stock has been traded on Nasdaq under the symbol “GWAV.” The following table presents, for the periods indicated, the high and low sales prices of Common Stock, and is based upon information provided by the OTC Marketplace and Nasdaq, as applicable. These quotations below reflect inter-dealer prices, without retail mark-up, mark-down, or commission, and may not necessarily represent actual transactions. 2024 High Low First Quarter $ 1.03 $ 0.115 Second Quarter $ 0.17 $ 0.119 2023 High Low First Quarter $ 1.54 $ 0.77 Second Quarter $ 1.04 $ 0.75 Third Quarter $ 1.12 $ 0.58 Fourth Quarter $ 0.69 $ 0.391 2022 High Low First Quarter $ 14.40 $ 3.2 Second Quarter $ 8.25 $ 3.92 Third Quarter $ 8.05 $ 1.59 Fourth Quarter $ 1.80 $ 0.78 The last reported sale price of Common Stock as of April 15, 2024 on Nasdaq was $0.1177 per share. 18 Holders As of April 15, 2024, there were 131 stockholders of record. The number of record holders was determined from the records of our transfer agent and does not include beneficial owners of Common Stock whose shares are held in the names of various security brokers, dealers, and registered clearing agencies. The transfer agent of our Common Stock is Equity Stock Transfer, located at 237 W. 37 th St. #602, New York, NY 10018. Dividend Policy We have never declared or paid cash or stock dividends on our common stock and do not anticipate paying any dividends on the shares of our common stock in the foreseeable future. Our current policy is to retain earnings, if any, for use in our operations and in the development of our business. Any future determination to declare dividends on common stock will be made at the discretion of our Board of Directors and will depend on our financial condition, operating results, capital requirements, general business conditions and other factors that our Board of Directors may deem relevant. Recent Sales of Unregistered Securities From March 18 to March 26, 2024, the Company issued 13,772,394 shares for the exercise of warrants for proceeds of $2,809,568. The Company issued 27,544,788 Inducement Warrants to the existing warrant holders who exercised during the inducement period. On March 29, 2024, the Company entered into an exchange agreement with DWM Properties LLC (the “Holder”), whereby the Company and Holder agreed to exchange $10,000,000 of that certain Secured Promissory Note, dated July 31, 2023, issued by the Company to the Holder for shares of the Company’s newly created Series D Convertible Preferred Stock (the “Preferred Stock”). The Preferred Stock is convertible into the Company’s common stock at $0.204 per share, subject to adjustment as set forth therein, except the Preferred Stock is not convertible until such time as the currently outstanding senior secured indebtedness of the Company has been satisfied in full. In addition, the Company has the right to redeem the Preferred Stock in cash or shares of its Common Stock. Securities Authorized for Issuance Under Equity Compensation Plans Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) Weighted- average exercise price of outstanding options, warrants and rights (b) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a) (c) Equity compensation plans approved by security holders (1) 92,166 $ 148.11 891,371 Equity compensation plans not approved by security holders — — — Total 92,166 $ 148.11 891,371 (1) Includes the 2014 Stock Incentive Plan, 2015 Stock Incentive Plan, 2016 Stock Incentive Plan, 2017 Equity Incentive Plan, 2018 Equity Incentive Plan, 2021 Equity Incentive Plan, 2022 Equity Incentive Plan, and the 2023 Equity Incentive Plan. 19 ITEM 6. RESERVED. ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS You should read the following discussion and analysis of our financial condition and results of operations in conjunction with the consolidated financial statements and the notes thereto included elsewhere in this Annual Report on Form 10-K. The following discussion and other sections of this Annual Report contain forward-looking statements that involve risks and uncertainties, such as our plans, objectives, expectations, intentions, estimates and beliefs. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those identified below and those discussed in the section titled “Risk Factors.” You should also carefully read “Special Note Regarding Forward-Looking Statements”. Overview We were formed on April 26, 2013 as a technology platform developer under the name MassRoots, Inc. In October 2021, we changed our corporate name from “MassRoots, Inc.” to “Greenwave Technology Solutions, Inc.” We sold all of our social media assets on October 28, 2021 for cash consideration equal to $10,000 and discontinued all operations related to our social media business. On September 30, 2021, we closed our acquisition of Empire Services, Inc. (“Empire”), which operates 13 metal recycling facilities and 1 metal processing facility in Virginia, North Carolina, and Ohio. The acquisition was deemed effective October 1, 2021 on the effective date of the Certificate of Merger in Virginia. Upon the acquisition of Empire, we transitioned into the scrap metal industry which involves collecting, classifying and processing appliances, construction material, end-of-life vehicles, boats, and industrial machinery. We process these items by crushing, shearing, shredding, separating, and sorting, into smaller pieces and categorize these recycled ferrous, nonferrous, and mixed metal pieces based on density and metal prior to sale. In cases of scrap cars, we remove the catalytic converters, aluminum wheels, and batteries for separate processing and sale prior to shredding the vehicle. We have designed our systems to maximize the value of metals produced from this process. We operate an automotive shredder at our Kelford, North Carolina location and a second automotive shredder at our Carrollton, Virginia is expected to come online in the second quarter of 2023. Our shredders are designed to produce a denser product and, in concert with advanced separation equipment, more refined recycled ferrous metals, which are more valuable as they require less processing to produce recycled steel products. In totality, this process reduces large metal objects like auto bodies into baseball-sized pieces of shredded recycled metal. The shredded pieces are then placed on a conveyor belt under magnetized drums to separate the ferrous metal from the mixed nonferrous metal and residue, producing consistent and high-quality ferrous scrap metal. The nonferrous metals and other materials then go through a number of additional mechanical systems which separate the nonferrous metal from any residue. The remaining nonferrous metal is further processed to sort the metal by type, grade, and quality prior to being sold as products, such as zorba (mainly aluminum), zurik (mainly stainless steel), and shredded insulated wire (mainly copper and aluminum). Empire is headquartered in Chesapeake, Virginia and has 131 full-time employees as of April 15, 2024. 20 Competitors We compete with other metal recycling facility operators, such as Radius Recycling (f/k/a Schnitzer Steel Industries), and are focused on utilizing technology to create operating efficiencies and competitive advantages over our peers. Results of Operations For the Year Ended December 31, 2023 Compared to the Year Ended December 31, 2022 For the Fiscal Year ended 31-Dec-23 31-Dec-22 $ Change %Change Revenues $ 35,667,982 $ 33,978,425 $ 1,689,557 4.97 % Gross Profit 14,483,403 12,440,853 2,042,550 16.42 % Operating Expenses 33,998,165 23,323,774 10,674,391 45.77 % Loss from Operations (19,514,762 ) (10,882,92 1) (8,631,841 ) 79.32 % Other Income (Expense) (7,421,228 ) (24,160,368 ) 16,739,140 (69.28 )% Net Income (Loss) Available to Common Stockholders $ (33,597,142 ) $ (63,859,328 ) $ 30,262,186 (47.39 )% Revenues For the year ended December 31, 2023, we generated $35,667,982 in revenues, as compared to $33,978,425 for the year ended December 31, 2022, an increase of $1,689,557. This increase was driven by hauling revenues growing to $10,156,938 for the year ended December 31, 2023 from $338,687 for the year ended December 31, 2022, an increase of $9,818,251 attributable to an increase in the number of clients as well as an increase in the number of trucks operated by the Company. Metal revenues decreased from $33,386,586 for the year ended December 31, 2022 to $25,350,883 for the year ended December 31, 2023, a decrease of $8,035,703 due to a decline in commodity prices. There was other revenue, compromised rental income for the Portsmouth Blvd property, of $132,640 and other income for $27,522 for the year ended December 31, 2023, as compared to $48,813 and $204,339 for the same period in 2022, a decline of $92,990. Cost of revenues Our cost of revenues decreased to $21,184,579 for the year ended December 31, 2023 from $21,537,572 during the same period in 2022, a decline of $352,993 due to lower metal prices, offset by an increase in hauling costs. Hauling costs increased to $4,996,871 for the year ended December 31, 2023 from $77,437 during the same period in 2022, an increase of $4,919,434, due to an increased truck fleet. Metal costs declined from $20,936,102 during the year ended December 31, 2022 to $16,154,529 during the same period in 2022, a decrease of $4,781,573 due to a decline in commodity prices. There was cost of revenue of $33,179 for the year ended December 31, 2023, comprised mostly of sand, compared to $524,033 during the same period in 2022, a decrease of $490,854. Gross pro fit Our gross profit was $14,483,403 during the year ended December 31, 2023 as compared to $12,440,853 during the same period in 2022, an increase of $2,042,550, due to healthier margins in both hauling and scrap metal. Our gross margins increased to 41% during the year ended December 31, 2023 from 37% during the same period in 2022 due to more an emphasis on operational efficiency. Gross profit on hauling grew from $261,250 during the year ended December 31, 2022, a margin of 77.14% to $5,160,067 during the same period in 2023, a margin of 50.80%, an increase of $4,898,817. Gross profit on metal fell to $9,196,354 during the year ended December 31, 2023, or 36.28%, from $12,450,484 during the same period in 2022, or 37.29%, a decline of $3,254,130 21 Operating Expenses For the years ended December 31, 2023 and 2022, our operating expenses were $33,998,165 and $23,323,774, respectively, an increase of $10,674,391. This increase was mainly attributed to the increase in our hauling fleet, which significantly expanded our operations, number of employees, and internal systems, along with a one-time loss on asset charge. There was a decrease in payroll and related expenses of $356,295 as payroll and related expenses were $6,634,800 for 2023 as compared to $6,991,095 for the same period in 2022, which was the result of the Company’s Chief Executive Officer waiving his quarterly bonuses. Advertising expense increased by $330,201 to $414,194 for 2023 as compared to $83,993 for 2022 as the Company focused its resources on its scrap metal operations. Depreciation and amortization of intangible assets increased by $1,753,476 to $5,814,880 for 2023 from $4,061,404 in 2022 as a result of the Company acquiring additional fixed assets. There were hauling and equipment maintenance costs of $2,898,202 in 2023, as compared to $3,378,452 in 2022, a decrease of $480,250, due to the Company recognizing more of these expenses as cost of revenue. Consulting, accounting, and legal expenses increased to $1,713,613 during the year ended December 31, 2023 from $897,981 during the same period in 2022, an increase of $815,632 due to the Company conducting capital raises. There was a loss on asset of $10,048,308 during the year ended December 31, 2023 as compared to $0 during the same period in 2022, an increase of $10,048,308. There was a decrease in rent expenses as a result of new leases and termination of existing leases, declining $362,032 from $3,464,516 during the year ended December 31, 2022 to $3,102,484 during the same period in 2023. There was common stock issued for services of $171,239 during the year ended December 31, 2023 as compared to $0 during the same period in 2022, an increase of $171,239. There were impairments of goodwill of $0 during the year ended December 31, 2023, as compared to $2,499,753 during the same period in 2022, a decrease of $2,499,753. Our other general and administrative expenses increased to $3,200,445 for the year ended December 31, 2023 from $1,946,580 for the year ended December 31, 2022, an increase of $1,253,865, as a result of the Company’s operations expanding. The increase of these expenditures resulted in our total operating expenses increasing to $33,998,165 during the year ended December 31, 2023 compared to $23,323,774 during the year ended December 31, 2022, an increase of $10,674,391. Loss from Operations Our loss from operations increased $8,631,841 to $19,514,762 during the year ended December 31, 2023, from $10,882,921 during the year ended December 31, 2022. Other Income (Expense) During the year ended December 31, 2023, we incurred other expenses of $7,421,228, as compared to $24,160,368 for the year ended December 31, 2022, a decrease of $16,739,140. There was a gain on settlement of convertible notes payable and accrued interest, warrants and accounts payable and cancelation of common shares in exchange for Series Y and Series Z preferred shares and cash of $632,540 and $516,920 for the years ended December 31, 2023 and 2022, respectively. We did not realize any gain or loss on the conversion of convertible Notes during the year ended December 31, 2023 while we realized a $2,625,378 gain on the conversion of convertible notes during in the same period in 2022. In addition, interest expense increased to $(8,897,267) during fiscal year 2023 as compared to $(34,079,230) during fiscal year 2022. We did not have a warrant expense for a liquidated damages settlement during the year ended December 31, 2023, while we incurred an expense of $7,408,681 for the same during the year ended December 31, 2022. There was neither a gain nor loss in the fair value of derivative liabilities during the year ended December 31, 2023, as compared to a gain of $14,264,476 during the same period in 2022. There was other gain of $17,572 during the year ended December 31, 2023, as compared to other loss of $(79,231) during the year ended December 31, 2022. There was gain on lease termination of $108,863 during the year ended December 31, 2023 as compared to $0 during the same period in 2022. Lastly, there was a gain on tax credit of $717,064 during the year ended December 31, 2023 as compared to $0 during the same period in 2022. 22 Net Loss available to common stockholders Our net loss available to shareholders decreased by $30,262,186 to $33,597,142 during the year ended December 31, 2023, from $63,859,328 during the year ended December 31, 2022. Liquidity and Capital Resources Net cash used in operating activities for the years ended December 31, 2023 and 2022 was $1,833,310 and $2,609,173, respectively. Cash flows used in operations in 2023 were impacted by depreciation of $2,856,380, amortization of intangible assets of $2,958,500, loss on asset – related party of $9,850,850, loss on assets of $197,458 amortization of right of use assets net of $392,050, amortization of right of use assets-related party net of $1,250,218, interest and amortization of debt discount of $8,897,267, a gain on the settlement of notes payable and factoring advances of $632,540, an increase in due to a related party of $1,824,318, an increase in accounts receivable of $431,155, stock compensation of $171,239, a decrease in inventories of $10,782, a decrease in prepaid expenses of $200,590, an decrease in security deposit of $25,000, gain on deferred revenue of $25,000, gain on lease termination of $108,863 an increase in accounts payable of $856,151 an decrease in payroll wages payable of $614,271, and a decrease in lease liability of $1,619,790. Cash flows used in operations in 2022 were impacted by depreciation of $875,809, amortization of intangible assets of $2,958,500, amortization of right of use assets of $227,185, amortization of right of use assets (related-party) of $2,390,991, impairments on goodwill of $2,499,753, a gain in the fair value of derivative liabilities of $14,264,476, interest and amortization of debt discount of $32,340,565, a gain on the settlement of notes payable and factoring advances of $516,920, a warrant expense for liquidated damages settlement of $7,408,681, an increase in rent due to a related party of $194,916, an increase in accounts receivable of $215,256, a decrease in inventories of $191,356, a decrease in prepaid expenses of $12,838, an increase in security deposits of $3,306, an increase in payroll wages payable of $1,702,145, an decrease in accounts payable of $1,738,665, a decrease in lease liability of $65,030, a decrease in lease liability (related-party) of $2,369,038, gain on settlement of convertible and non-convertible notes payable and accrued interest for cash for $2,625,378, and a decrease in environmental remediation liabilities of $22,207. Net cash used by investing activities was $1,678,176 and $5,936,027 for the years ended December 31, 2023 and 2022, respectively. For the year ended December 31, 2023, there was cash used in the purchase of equipment of $1,760,945 and cash received for the advance of asset of $82,769. For the year ended December 31, 2022, there was cash used in the purchase of equipment of $5,936,027. Net cash provided by financing activities for the year ended December 31, 2023 and 2022 was $4,235,841 and $6,408,711, respectively. During the year ended December 31, 2023, there were proceeds from non-convertible notes of $1,000,000, proceeds from convertible notes of $13,118,750, proceeds from the sale of common stock of $2,841,181, proceeds from warrant exercises of $15,511 proceeds from bridge financing of $825,000, proceeds from bank overdrafts of $118,763, and proceeds of $3,746,109 from factoring advances, offset by repayments of $4,858,587 towards non-convertible notes and repayments of $12,570,886 towards factoring advances. During the year ended December 31, 2022, there were proceeds from non-convertible notes of $2,725,000 and proceeds of $6,518,310 from factoring advances, offset by repayments of $220,000 towards non-convertible notes, repayments of $221,500 towards notes, repayments of advances of $12,000 and $2,381,099 towards factoring advances. Capital Resources As of December 31, 2023, we had cash on hand of $1,546,159. We currently have no external sources of liquidity such as arrangements with credit institutions that will have or are reasonably likely to have a current or future effect on our financial condition or immediate access to capital. Fundraising During the year ended December 31, 2023, the Company received proceeds of $825,000, $3,746,109, $13,118,750, $2,841,181 and $1,000,000 from the issuance of bridge notes, factoring advances, convertible notes, sale of common stock, and non-convertible notes, respectively. 23 Required Capital over the Next Fiscal Year We may need additional capital in the future to continue to execute our business plan. Therefore, we may be dependent upon additional capital in the form of either debt or equity to continue our operations. At the present time, we do not have arrangements to raise additional capital, and we may need to identify potential investors and negotiate appropriate arrangements with them. We may not be able to arrange enough investment within the time the investment is required or that if it is arranged, that it will be on favorable terms. If we cannot obtain the needed capital, we may not be able to become profitable and may have to curtail or cease our operations. Additional equity financing, if available, may be dilutive to the holders of our capital stock. Debt financing may involve significant cash payment obligations, covenants and financial ratios that may restrict our ability to operate and grow our business. Going Concern and Management’s Liquidity Plans As of December 31, 2023, the Company had cash of $1,546,159 and a working capital deficit (current liabilities in excess of current assets) of $(20,579,715). During the year ended December 31, 2023, the net cash used in operating activities was $(1,833,310). The accumulated deficit as of December 31, 2023 was $(395,866,157). These conditions raise substantial doubt about the Company’s ability to continue as a going concern for one year from the issuance of the consolidated financial statements. During the year ended December 31, 2023, the Company received proceeds of $825,000, $1,000,000, $13,118,750, $2,841,181, and $3,746,109 from the issuance of bridge notes, non-convertible notes, convertible notes, sale of common stock, and factoring advances, respectively. Until the Company’s consummation of the Empire acquisition, the Company had experienced net losses and negative cash flows from operations. The Company believes it could generate positive cashflows from operations going forward but in the event the market for recycled metals experiences a sharp downturn or if it experiences delays in its growth plans, the Company may need to raise additional capital. The Company’s failure to raise capital as and when needed could have a negative impact on its financial condition and its ability to pursue its business strategy. Accordingly, the accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business for one year from the date the consolidated financial statements are issued. The carrying amounts of assets and liabilities presented in the consolidated financial statements do not necessarily purport to represent realizable or settlement values. The consolidated financial statements do not include any adjustments that might result should the Company be unable to continue as a going concern. Off-Balance Sheet Arrangements We do not have any off-balance sheet arrangements. Recent Accounting Pronouncements On January 1, 2020, The Company adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held to maturity debt securities. It also applies to Off-Balance Sheet (“OBS”) credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments and leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326 made changes to the accounting for available for sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write down on available for sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell. The adoption of this update did not have a material impact on the Company’s consolidated financial statements and related disclosures. There are other various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. Critical Accounting Policies Management’s Discussion and Analysis of Financial Condition and Results of Operations discuss our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosures of contingent assets and liabilities. On an on-going basis, management evaluates its estimates and judgments, including estimates used in the calculation of stock-based compensation, fair values relating to derivative liabilities, payroll tax liabilities with interest and penalties, deemed dividends, assumptions used in right-of-use and lease liability calculations, valuations and impairments of goodwill and intangible assets acquired in business combination, estimated useful life of long-lived assets and finite life tangible assets, determination of environmental remediation liabilities, and the valuation allowance related to deferred tax assets. Management bases its estimates and judgments on historical experience and on 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 and conditions. 24 Management believes the following critical accounting policies, among others, affect its more significant judgments and estimates used in the preparation of its consolidated financial statements. Goodwill: Goodwill is the excess of the purchase price paid over the fair value of the net assets of the acquired business. Goodwill is tested annually at December 31 for impairment. The annual qualitative or quantitative assessments involve determining an estimate of the fair value of reporting units in order to evaluate whether an impairment of the current carrying amount of goodwill exists. A qualitative assessment evaluates whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step quantitative goodwill impairment test. The first step of a quantitative goodwill impairment test compares the fair value of the reporting unit to its carrying amount including goodwill. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss may be recognized. The amount of impairment loss is determined by comparing the implied fair value of the reporting unit’s goodwill with the carrying amount. If the carrying amount exceeds the implied fair value, then an impairment loss is recognized equal to that excess. The Company has adopted the provisions of ASU 2017-04—Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 requires goodwill impairments to be measured on the basis of the fair value of a reporting unit relative to the reporting unit’s carrying amount rather than on the basis of the implied amount of goodwill relative to the goodwill balance of the reporting unit. Thus, ASU 2017-04 permits an entity to record a goodwill impairment that is entirely or partly due to a decline in the fair value of other assets that, under existing GAAP, would not be impaired or have a reduced carrying amount. Furthermore, the ASU removes “the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test.” Instead, all reporting units, even those with a zero or negative carrying amount will apply the same impairment test. Accordingly, the goodwill of reporting unit or entity with zero or negative carrying values will not be impaired, even when conditions underlying the reporting unit/entity may indicate that goodwill is impaired. We test our goodwill for impairment annually, or, under certain circumstances, more frequently, such as when events or circumstances indicate there may be impairment. We are required to write down the value of goodwill only when our testing determines the recorded amount of goodwill exceeds the fair value. Our annual measurement date for testing goodwill impairment is December 31. None of the goodwill is deductible for income tax purposes. During the fiscal years ended December 31, 2023 and 2022, the Company recorded $0 and $2,499,753 in impairment expense related to goodwill, respectively. As of December 31, 2023 and 2022, the carrying value of goodwill was $0 and $0, respectively. Intangible: Intangible assets with finite useful lives consist of tradenames, licenses and customer relationships and are amortized on a straight-line basis over their estimated useful lives, which range from three to ten years. The estimated useful lives associated with finite-lived intangible assets are consistent with the estimated lives of the associated products and may be modified when circumstances warrant. Such assets are reviewed for impairment when events or circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset and its eventual disposition are less than its carrying amount. The amount of any impairment is measured as the difference between the carrying amount and the fair value of the impaired asset. During the fiscal years ended December 31, 2023 and 2022, the Company recorded $0 and $2,499,753 in impairment expense related to intangibles and goodwill and $2,958,500 and $2,958,500 in amortization of intangible assets, respectively. 25 Income Taxes: The Company accounts for its income taxes in accordance with Income Taxes Topic of the FASB ASC 740, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. Income tax expense is based on reported earnings before income taxes. Deferred income taxes reflect the impact of temporary differences between assets and liabilities recognized for consolidated financial reporting purposes and such amounts recognized for tax purposes and are measured by applying enacted tax rates in effect in years in which the differences are expected to reverse. The Company also follows the guidance related to accounting for income tax uncertainties. In accounting for uncertainty in income taxes, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. Greenwave has also experienced impacts of inflation to its operations, mainly the significant increases in the prices of recycled metal, which in turn, has resulted in increases to the Company’s revenue and profit margin. The Company has also experienced increases to its wages and salaries, hauling, and towing expenses caused by inflation, but is taking steps to minimize impacts to the Company’s financial position. Greenwave does not experience material changes to its business due to seasonality. ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK We are a “smaller reporting company” as defined in Rule 12b-2 of the Exchange Act and are not required to provide the information required by this Item. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The consolidated financial statements required to be included in this Annual Report appear as indexed in the appendix to this Annual Report beginning on page F-1. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. ITEM 9A. CONTROLS AND PROCEDURES. Evaluation of Disclosure Controls and Procedures Pursuant to Rules 13a-15(b) and 15-d-15(b) under the Exchange Act, we carried out an evaluation, with the participation of our management, including our Chief Executive Officer (“CEO”) and Interim Chief Financial Officer (“CFO”) of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Annual Report. The term “disclosure controls and procedures,” as defined under Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Based upon such evaluation, our CEO and CFO concluded that our disclosure controls and procedures as of December 31, 2023 were not effective (at a reasonable assurance level) due to identified control deficiencies regarding the lack of segregation of duties and the need for a stronger internal control environment. 26 To address the material weaknesses, we performed additional analysis and other post-closing procedures in an effort to ensure our financial statements included in this Annual Report on Form 10-K have been prepared in accordance with generally accepted accounting principles in the U.S. Accordingly, management believes that the financial statements included in this Annual Report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented. Our principal executive officer and principal financial officer do not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Management’s Report on Internal Control over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act. Our management, including our principal executive officer and principal financial officer, assessed the effectiveness of our internal control over financial reporting as of December 31, 2023. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control-Integrated Framework (issued in 2013). A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. Based upon the assessments, management has concluded that as of December 31, 2023, there was a material weakness in our internal control over financial reporting due to the fact that we did not have an adequate process established to ensure appropriate levels of review of accounting and financial reporting matters, which resulted in our closing process not identifying all required adjustments and disclosures in a timely fashion. We plan to take steps to enhance and improve the design of our internal control over financial reporting. To remediate our material weaknesses, we plan to appoint additional qualified personnel with the requisite knowledge to improve the levels of review of accounting and financial reporting matters; however, such remediation efforts are largely dependent upon our securing additional financing or generating significant revenue to cover the costs of implementing the changes required. Until we remediate our material weakness in internal control over financial reporting such weaknesses could result in material misstatements in our financial statements not being prevented or detected. Inherent Limitations on Effectiveness of Controls and Procedures The Company’s management, including the Company’s CEO and CFO, does not expect that the Company’s internal control over financial reporting will prevent or detect all errors and all fraud. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objective and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree or compliance with the policies or procedures may deteriorate. The Company’s CEO and CFO has identified control deficiencies regarding the lack of segregation of duties and the need for a stronger internal control environment. The small size of the Company’s accounting staff may prevent adequate controls in the future, such as segregation of duties, due to the cost/benefit of such remediation. Because of the above material weakness, management has concluded that we did not maintain effective internal control over financial reporting as of December 31, 2023, based on the criteria established in “Internal Control-Integrated Framework” issued by the COSO. 27 This Annual Report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our independent registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit us to provide only management’s report in this Annual Report. Changes in Internal Control over Financial Reporting During the most recent fiscal quarter, the Company began hiring additional accounting personnel to enhance its segregation of duties and establishment of procedures in an effort to ensure appropriate levels of review of accounting and financial reporting matters. ITEM 9B. OTHER INFORMATION Rule 10b5-1 Trading Arrangement During the three months ended December 31, 2023, no director or officer of the Company adopted or terminated any “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K. ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS None. PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE Information required by this item is incorporated by reference to our proxy statement for our 2024 Annual Meeting of Stockholders. ITEM 11. EXECUTIVE COMPENSATION Information required by this item is incorporated by reference to our proxy statement for our 2024 Annual Meeting of Stockholders. Pay Versus Performance In August 2022, the SEC adopted final rules to require companies to disclose information about the relationship between executive compensation actually paid and certain financial performance of the company. The information below is provided pursuant to Item 402(v) of SEC Regulation S-K with respect to “smaller reporting companies” as that term is defined in Item 10(f)(1) of SEC Regulation S-K. (a) Year (b) Summary Comp Table Total for PEO ($)(1) (c) Comp. Actually Paid to PEO ($)(2) (d) Average Summary Comp. Table for Non-PEO NEOs ($)(3) (e) Average Comp. Actually Paid to Non-PEO NEOs ($)(4) (f) Value of Initial Fixed $100 Investment Based On Total Shareholder Return ($)(5) (g) Net Income ($)(6) 2021 $ 650,605 $ 650,605 $ 24,167 $ 24,167 $ 783.33 $ 2,776,027 2022 $ 1,950,000 $ 1,950,000 $ 62,942 $ 62,942 $ 48.94 $ (63,859,328 ) 2023 $ 750,000 $ 750,000 $ 136,633 $ 136,633 $ 31.39 $ (33,597,142 ) (1) The dollar amounts reported in column (b) are the amounts of total compensation reported for Mr. Meeks (Chief Executive Officer) from October 2021 to December 2023, along with Mr. Dietrich from January to September 2021, for each corresponding year, in the “Total” column of the Summary Compensation Table. See “Executive Compensation - Summary Compensation Table. (2) The dollar amounts reported in column (c) represent the amount of “compensation actually paid” to Mr. Meeks and Mr. Dietrich as computed in accordance with Item 402(v)(2)(iii) of SEC Regulation S-K, which prescribes certain specified additions and subtractions from the amount in column (b). In accordance with the requirements of Item 401(v)(2)(iii) of Regulation S-K, there were no adjustments required to be made to Mr. Meeks’ and Mr. Dietrich total compensation for each year to determine the compensation actually paid. As of December 31, 2023 and 2022, Mr. Meeks was owed $1,200,000 and $950,000 in accrued bonuses, respectively. (3) The dollar amounts reported in column (d) represent the average amounts reported for the Company’s named executive officers as a group (excluding Mr. Meeks and Mr. Dietrich except from October to November 2021 and after April 2023) in the “Total” column of the Summary Compensation Table in each applicable year. The names of each of the named executive officers (excluding Mr. Meeks and Mr. Dietrich except from October to November 2021 and after April 2023) included for purposes of calculating the average amounts in each applicable year are as follows: (a) Mr. Dietrich from October to November 2021 and April to December 2023; (b) Mr. Jordan from April to September 2022; and (c) Mrs. Sickles from September 2022 to April 2023 (4) The dollar amounts reported in column (e) represent the average amount of “compensation actually paid” to the named executive officers as a group (excluding Mr. Meeks and Mr. Dietrich except from October to November 2021 and after April 2023) as computed in accordance with Item 402(v)(2)(iii) of SEC Regulation S-K, which prescribes certain specified additions and subtractions from the amount in column (d). In accordance with the requirements of Item 401(v) of Regulation S-K, the following adjustments were made to average total compensation for the named executive officers as a group (excluding Mr. Meeks and Mr. Dietrich except from October to November 2021 and after April 2023) for each year to determine the compensation actually paid: (5) Total Shareholder Return is determined based on the value of an initial fixed investment in the Company’s common stock of $100 on December 31, 2020 and calculated in accordance with Item 201(e) of SEC Regulation S-K. (6) The dollar amounts reported in column (g) represent the amount of net income reflected in our consolidated audited financial statements for the applicable year. Analysis of the Information Presented in the Pay Versus Performance Table The Compensation Committee of the Board of Directors of the Company does not have a policy or practice regarding evaluating Total Shareholder Return as part of its determination of compensation decisions for the named executive officers. The Compensation Committee takes various factors into account in determining the competitiveness of its executive compensation. Over the past three fiscal years the Compensation Committee has recognized the significant time and effort required by the executive officers and others to manage the Company’s liquidity by raising capital while reducing operating expenses and cash used in operations, secure and maintain the Company’s listing on the Nasdaq Capital Market, and to source and evaluate merger and acquisition opportunities. To retain qualified executive management, the Board, from 2021 to 2023, paid bonuses to Mr. Meeks that were earned during fiscal year 2021 through 2023. Mr. Meeks last received equity awards in 2021. All information provided above under the “Pay Versus Performance Information” heading will not be deemed to be incorporated by reference in any filing of our company under the Securities Act of 1933, as amended, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. Information required by this item is incorporated by reference to our proxy statement for our 2024 Annual Meeting of Stockholders. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE. Information required by this item is incorporated by reference to our proxy statement for our 2024 Annual Meeting of Stockholders. ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES Information required by this item is incorporated by reference to our proxy statement for our 2024 Annual Meeting of Stockholders. 28 PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES (a) Documents filed as part of this Annual Report: (1) Financial Statements The following documents are included on pages F-1 through F-6 attached hereto and are filed as part of this Annual Report on Form 10-K. Report of Independent Registered Public Accounting Firm (PCAOB ID: 587 ) F-1 Consolidated Balance Sheets as of December 31, 2023 and 2022 F-3 Consolidated Statements of Operations for the Years Ended December 31, 2023 and 2022 F-4 Consolidated Statements of Stockholders’ Equity (Deficit) for the Years Ended December 31, 2023 and 2022 F-5 Consolidated Statements of Cash Flows for the Years Ended December 31, 2023 and 2022 F- 7 Notes to Consolidated Financial Statements F-8 (2) Financial Statement Schedules. No financial statement schedules have been submitted because they are not required or are not applicable or because the information required is included in the financial statements or the notes thereto. (3) List of Exhibits. Incorporated by Reference No. Description Form File No. Exhibit Filing Date 2.1 Plan of Reorganization, dated March 18, 2014. S-1 333-196735 2.1 June 13, 2014 2.2 Agreement and Plan of Merger between MassRoots, Inc. and Whaxy Inc. and DDDigtal Inc. and Zachary Marburger and the Stockholders of DDDigtal Inc., dated December 15, 2016. 8-K 000-55431 10.1 December 16, 2016 2.3 Agreement and Plan of Merger between MassRoots, Inc. and MassRoots Compliance Technology, Inc. and Odava, Inc. and Scott Kveton and the Stockholders of Odava, Inc. 8-K 000-55431 10.1 July 5, 2017 2.4 Agreement and Plan of Merger between MassRoots, Inc., MassRoots Supply Chain, Inc., COWA Science Corporation and Christopher Alameddin, as the representative of the Stockholders of COWA Science Corporation, dated February 11, 2019. 8-K 000-55431 2.1 February 12, 2019 2.5 Agreement and Plan of Merger between MassRoots, Inc., Empire Merger Corp., Empire Services, Inc. and Danny Meeks, as the sole shareholder, dated September 30, 2021 8-K 000-55431 10.1 October 6, 2021 3.1 Second Amended and Restated Certificate of Incorporation of the Registrant 8-K/A 000-55431 3.1 June 19, 2018 3.2 Certificate of Amendment to Second Amended and Restated Certificate of Incorporation of the Registrant 8-K 000-55431 3.1 February 25, 2022 3.3 Amended and Restated Bylaws of the Registrant. 8-K 001-41452 3.1 November 29, 2022 3.4 State of Delaware Certificate of Merger of Domestic Corporation Into Domestic Corporation, for MassRoots Compliance Technology, Inc. and Odava Inc., effective as of July 13, 2017. 8-K 000-55431 3.1 July 14, 2017 29 3.5 Certificate of Designations, Preferences and Rights of the Series A Convertible Preferred Stock. 8-K 000-55431 3.1 July 12, 2019 3.6 Certificate of Designations, Preferences and Rights of the Series B Convertible Preferred Stock. 8-K 000-55431 3.2 July 12, 2019 3.7 Certificate of Correction to the Certificate of Designations, Preferences and Rights of the Series C Convertible Preferred Stock. 10-K 000-55431 3.7 July 16, 2020 3.8 Certificate of Designations, Preferences and Rights of the Series X Convertible Preferred Stock. 10-Q 000-55431 3.1 December 18, 2020 3.9 Certificate of Designations, Preferences and Rights of the Series Y Convertible Preferred Stock. 10-K 000-55431 3.9 April 16, 2021 3.10 Certificate of amendment of the certificate of incorporation of the Company effective May 24, 2021, amending Certificate of Designations, Preferences, and Rights of the Series X Convertible Preferred Stock filed with the Secretary of State on May 24, 2021 8-K 000-55431 3.1 May 25, 2021 3.11 Certificate of amendment of the certificate of incorporation of the Company effective May 24, 2021, amending Certificate of Designations, Preferences, and Rights of the Series Y Convertible Preferred Stock filed with the Secretary of State on December 30, 2020 8-K 000-55431 3.2 May 25, 2021 3.12 Certificate of Amendment to Second Amended and Restated Certificate of Incorporation of MassRoots, Inc. effective September 30, 2021, field with the Secretary of State on September 30, 2021 8-K 000-55431 3.1 October 6, 2021 3.13 Certificate of Elimination of Series C Convertible Preferred Stock of Greenwave Technology Solutions, Inc. 8-K 000-55431 3.1 December 17, 2021 3.14 Certificate of Amendment to Certificate of Incorporation of MassRoots, Inc. 8-K 000-55431 3.1 February 25, 2022 3.15 Certificate of Amendment to Certificate of Incorporation of Greenwave Technology Solutions, Inc. 8-K 000-55431 3.2 February 25, 2022 3.16 Certificate of Elimination relating to the Series Z Preferred Stock 8-K 000-55431 3.1 August 3, 2023 3.17 Certificate of Designations, Preferences and Rights of the Series D Convertible Preferred Stock. 8-K 000-55431 3.1 April 2, 2024 4.1 Form of Common Stock Certificate. S-1 333-196735 4.1 June 13, 2014 4.2 Description of Registrant’s Securities 10-K 001-41452 4.2 March 31, 2023 4.4 Form of Warrant utilized by Service Providers. S-1 333-210672 10.25 April 11, 2016 4.3 Form of Warrant utilized by Service Providers. S-1 333-210672 10.25 April 11, 2016 4.4 Form of Warrant dated July 2023 8-K 000-55431 4.1 August 3, 2023 4.5 Form of Senior Note dated July 2023 8-K 000-55431 4.2 August 3, 2023 4.6 Form of Secured Promissory Note dated July 31, 2023. Issued to DWM Properties LLC 8-K 000-55431 4.3 August 3, 2023 4.7 Form of Warrant issued to Purchasers, dated August 2023 8-K 000-55431 4.1 August 21, 2023 4.8 Form of Placement Agent Warrant, dated August 2023 8-K 000-55431 4.2 August 21, 2023 10.1+ 2014 Stock Incentive Plan and form of agreements thereunder. S-1 333-196735 10.12 June 13, 2014 30 10.2+ 2015 Stock Incentive Plan and form of agreements thereunder. 10-K 333-196735 10.12 March 30, 2016 10.3+ 2016 Stock Incentive Plan and form of agreements thereunder. 8-K 000-55431 4.1 September 23, 2016 10.4+ 2017 Equity Incentive Plan and form of agreements thereunder. DEF 14C 000-55431 Appendix A December 9, 2016 10.5+ 2018 Equity Incentive Plan and form of agreements thereunder. DEF 14A 000-55431 Appendix B May 11, 2018 10.6 2021 Equity Incentive Plan and form of agreements thereunder. DEF 14A 000-55431 Appendix C July 12, 2021 10.7 Form of Securities Purchase Agreement dated March 2016. 8-K 000-55431 10.1 March 18, 2016 10.8 Form of Securities Purchase Agreement dated August 2017. 8-K 000-55431 10.1 August 18, 2017 10.9 Securities Purchase Agreement dated May 16, 2019. 8-K 000-55431 2.1 May 24, 2019 10.10 Form of Securities Purchase Agreement dated January 2018. 8-K 000-55431 10.1 January 31, 2018 10.11 Form of Series X Securities Purchase Agreement. 10-Q 000-55431 10.1 December 18, 2020 10.12 Form of Securities Purchase Agreement dated December 17, 2018. 8-K 000-55431 99.1 December 20, 2018 10.13 Form of Joinder Agreement to Agreement and Plan of Merger made by each stockholder of Odava, Inc. and agreed to and acknowledged by MassRoots, Inc. and MassRoots Compliance Technology, Inc. 8-K 000-55431 10.2 July 5, 2017 10.14 Form of Subscription Agreement dated July 2017. 8-K 000-55431 10.1 July 24, 2017 10.15 Form of Subscription Agreement dated December 2017. 8-K 000-55431 10.1 December 29, 2017 10.16 Form of Subscription Agreement. 8-K 000-55431 10.1 July 12, 2019 10.17 Form of Security Agreement dated August 2017. 8-K 000-55431 10.2 August 18, 2017 10.18 Form of Security Agreement dated December 17, 2018. 8-K 000-55431 99.3 December 20, 2018 10.19 Form of Amended and Restated Simple Agreement for Future Tokens. S-1 333-223038 10.27 February 14, 2018 10.20 Form of Director Separation Agreement. 8-K 000-55431 10.1 December 14, 2017 10.21 Form of Separation Agreement. 8-K 000-55431 10.4 December 14, 2017 10.22 Form of Separation Agreement. 8-K 000-55431 10.1 July 22, 2019 10.23 Form of Mutual Release and Non-Disparagement Agreement. 8-K 000-55431 10.3 December 14, 2017 10.24 Form of Secured Convertible Promissory Note. 8-K 000-55431 99.2 December 20, 2018 10.25 Convertible Promissory Note dated May 16, 2019. 8-K 000-55431 99.1 May 24, 2019 10.26 Form of Exchange Agreement. 8-K 000-55431 10.3 July 12, 2019 10.37 Form of Convertible Note. 8-K 000-55431 10.1 November 26, 2019 10.28 Form of Series A Exchange Agreement. 8-K 000-55431 10.1 April 21, 2020 10.29 Form of Series A Convertible Note. 8-K 000-55431 10.2 April 21, 2020 31 10.30 Form of Series B Exchange Agreement. 8-K 000-55431 10.3 April 21, 2020 10.31 Form of Series B Convertible Note. 8-K 000-55431 10.4 April 21, 2020 10.32 Form of December Note. 8-K 000-55431 10.5 April 21, 2020 10.33 Form of January Note. 8-K 000-55431 10.6 April 21, 2020 10.34 Form of First March Note. 8-K 000-55431 10.7 April 21, 2020 10.35 Form of Second March Note. 8-K 000-55431 10.8 April 21, 2020 10.36 Form of April Note. 8-K 000-55431 10.9 April 21, 2020 10.37 Form of Notes. 8-K 000-55431 10.1 September 4, 2020 10.38 Form of September Note. 8-K 000-55431 10.2 September 4, 2020 10.39 Form of Securities Exchange Agreement. 10-K 000-55431 10.49 April 15, 2021 10.40+ 2021 Equity Incentive Plan 14A 000-55431 Appendix C July 12, 2021 10.41+ Employment Agreement by and between the Company and Danny Meeks 8-K 000-55431 10.2 October 6, 2021 10.42 Form of Warrant 8-K 000-55431 4.1 December 6, 2021 10.43 Form of Senior Note 8-K 000-55431 4.2 December 6, 2021 10.44 Securities Purchase Agreement, dated November 29, 2021, by and between MassRoots, Inc. and the parties thereto 8-K 000-55431 10.1 December 6, 2021 10.45 Pledge and Security Agreement, dated November 30, 2021, by and between MassRoots, Inc. and the parties thereto 8-K 000-55431 10.2 December 6, 2021 10.46 Registration Rights Agreement, dated November 29, 2021, by and between MassRoots, Inc. and the parties thereto 8-K 000-55431 10.3 December 6, 2021 10.47 Form of Exchange Agreement 8-K/A 000-55431 10.1 April 2, 2024 10.48 Purchase Agreement, dated July 31, 2023, by and between Greenwave Technology Solutions, Inc. and the parties thereto. 8-K 000-55431 10.1 August 3, 2023 10.49 Security Agreement, dated July 31, 2023, by and between Greenwave Technology Solutions, Inc. and the parties thereto. 8-K 000-55431 10.2 August 3, 2023 10.50 Registration Rights Agreement, dated July 31, 2023, by and between Greenwave Technology Solutions, Inc. and the parties thereto. 8-K 000-55431 10.3 August 3, 2023 10.51 Bill of Sale, dated July 31, 2023, by and between Greenwave Technology Solutions, Inc. and DWM Properties LLC 8-K 000-55431 10.4 August 3, 2023 10.52 Form of Securities Purchase Agreement between Greenwave Technology Solutions, Inc. and the Purchasers signatory thereto. 8-K 000-55431 10.1 August 21, 2023 10.53 Form of Inducement Letter 8-K 000-55431 10.1 March 18, 2024 10.54* Compensation Recovery Policy 101.INS Inline XBRL Instance Document 101.SCH Inline XBRL Taxonomy Extension Schema Document 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) * filed herewith. + Denotes a management contract or compensatory plan. 32 SIGNATURES Pursuant to the requirements of Section 13 and 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized on this 16th day of April, 2024. GREENWAVE TECHNOLOGY SOLUTIONS, INC. By: /s/ Danny Meeks Danny Meeks Chief Executive Officer (Principal Executive Officer) By: /s/ Isaac Dietrich Isaac Dietrich Chief Financial Officer (Principal Financial and Accounting Officer) Pursuant to the requirements of the Securities Act of 1934, this Annual Report on Form 10-K has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signatures Title Date /s/ Danny Meeks Chief Executive Officer (Principal Executive Officer) and April 16, 2024 Danny Meeks Chairman of the Board of Directors /s/ Isaac Dietrich Chief Financial Officer April 16, 2024 Isaac Dietrich (Principal Financial and Accounting Officer) /s/ Henry S icignano Director April 16, 2024 Henry Sicignano /s/ Cheryl Lanthorn Director April 16, 2024 Cheryl Lanthorn /s/ John Wood Director April 16, 2024 John Wood /s/ Jason Adelman Director April 16, 2024 Jason Adelman 33 New York Office: 805 Third Avenue New York, NY 10022 212.838-5100 Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of Greenwave Technology Solutions, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Greenwave Technology Solutions, Inc., and its subsidiaries (the “Company”) as of December 31, 2023 and 2022, the related consolidated statements of operations, changes in stockholders’ equity (deficit) and cash flows for each of the years in the two-year period ended December 31, 2023, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2023 in conformity with accounting principles generally accepted in the United States of America. The Company’s Ability to Continue as a Going Concern The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 2 to the accompanying consolidated financial statements, the Company has net loss, has generated negative cash flows from operating activities, has an accumulated deficit and has stated that substantial doubt exists about Company’s ability to continue as a going concern. Management’s evaluation of the events and conditions and management’s plans regarding these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which they relate. F- 1 Impairment of Intangibles – Refer Note 3 and 7 Description of the Matter: As discussed in Note 3 and 7, to the consolidated financial statements, the Company’s long-lived intangibles assets consisted of Licenses of $16.5 million, Intellectual property of $1.7 million and Customer list of $1.7 million. Management tests definite live intangible whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. Long-lived intangibles are tested as one group of assets for impairment by conducting a Step 1 analysis to assess the recoverability using undiscounted cash flows. The key assumptions and estimates utilized in the approaches primarily include future levels of revenue growth, gross profit margin, EBITDA as percentage of revenue, capital expenditure as a percentage of revenue and debt free cash free working capital. The principal considerations for our determination that performing procedures relating to the impairment of long-lived intangibles is a critical audit matter because (i) the assumptions as described above involve high levels of management judgment; (ii) the high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating the significant assumptions used in management’s valuation methods; and (iii) the audit effort involved in the use of professionals with specialized skill and knowledge. How we addressed the Matter in our Audit: Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements. These procedures included the following: ● Testing management’s process for determining the fair value estimates; ● Evaluating the appropriateness of the undiscounted Cash Flow approach used; ● Testing the completeness and accuracy of the underlying data used; ● We evaluated the reasonableness of significant assumptions used by management related to future levels of revenue growth, gross profit margin, EBITDA as percentage of revenue, capital expenditure as a percentage of revenue and debt free cash free working capital; ● Evaluating management’s assumptions related to the future levels of revenue growth, gross profit margin, EBITDA as percentage of revenue, capital expenditure as a percentage of revenue and debt free cash free working capital involved evaluating whether the assumptions were reasonable considering (i) current and past performance; (ii) the consistency with external market and industry data; and (iii) whether these assumptions were consistent with evidence obtained in other areas of the audit; and ● Professionals with specialized skill and knowledge were used to assist in evaluating (i) the appropriateness of the undiscounted cash flow approach; (ii) the reasonableness of significant assumptions; and (iii) assessment of the Company specialist’s competence, capabilities and objectivity as it relates to the preparation of the valuation analysis. PCAOB ID 587 /s/ RBSM LLP We have served as the Company’s auditor since 2017. New York, NY April 16, 2024 F- 2 GREENWAVE TECHNOLOGY SOLUTIONS, INC. CONSOLIDATED BALANCE SHEETS December 31, December 31, 2023 2022 ASSETS Current assets: Cash $ 1,546,159 $ 821,804 Inventories 200,428 189,646 Accounts receivable 646,413 215,256 Prepaid expenses 296,761 12,838 Total current assets 2,689,761 1,239,544 Property and equipment, net 23,495,440 13,167,535 Advance for asset - 1,193,380 Operating lease right of use assets, net - related party 103,822 2,419,338 Operating lease right of use assets, net 198,558 590,608 Licenses, net 16,487,350 18,614,750 Intellectual property, net 1,669,800 2,277,000 Customer list, net 1,735,225 1,959,125 Finite lived intangible assets, net 1,735,225 1,959,125 Security deposit 31,893 6,893 Total assets $ 46,411,849 $ 41,468,173 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Current liabilities: Bank overdraft $ 118,763 $ - Accounts payable and accrued expenses 6,100,449 5,035,330 Accrued payroll and related expenses 4,089,836 3,946,411 Contract liabilities - 25,000 Factoring, net of unamortized debt discount of $- and $ 1,221,022 , respectively - 4,893,207 Non-convertible notes payable, current portion, net of unamortized debt discount of $ 774,308 and $ 500,250 , respectively 2,623,561 1,820,819 Convertible notes payable, current portion, net of unamortized debt discount of $ 3,934,506 and $-, respectively 8,065,494 - Due to related parties 2,070,402 317,781 Operating lease obligations, current portion - related party 111,240 2,742,140 Operating lease obligations, current portion 89,731 232,236 Total current liabilities 23,269,476 19,012,924 Operating lease obligations, less current portion 94,943 116,262 Related party note payable 17,218,350 - Convertible notes payable, net of unamortized debt discount of $ 1,967,253 and $-, respectively 4,032,747 - Non-convertible notes payable, net of unamortized debt discount of $ 1,739,260 and $ 1,965,113 , respectively 6,250,481 7,001,422 Total liabilities 50,865,997 26,130,608 Commitments and contingencies (See Note 11) - - Stockholders’ equity (deficit): Preferred stock - 10,000,000 shares authorized: Preferred stock - Series Z, $ 0.001 par value, $ 20,000 stated value, 0 and 500 shares authorized; 0 and 322 shares issued and outstanding, respectively - - Preferred stock, value - - Common stock, $ 0.001 par value, 1,200,000,000 and 500,000,000 shares authorized; 16,964,336 and 10,962,319 shares issued and outstanding, respectively 16,964 10,962 Additional paid in capital 391,395,045 377,595,618 Accumulated deficit ( 395,866,157 ) ( 362,269,015 ) Total stockholders’ equity (deficit) ( 4,454,148 ) 15,337,565 Total liabilities and stockholders’ equity (deficit) $ 46,411,849 $ 41,468,173 The accompanying notes are an integral part of these consolidated financial statements. F- 3 GREENWAVE TECHNOLOGY SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS 2023 2022 For the Year Ended December 31, 2023 2022 Revenues $ 35,667,982 $ 33,978,425 Cost of Revenues 21,184,579 21,537,572 Gross Profit 14,483,403 12,440,853 Operating Expenses: Advertising 414,194 83,993 Payroll and related expense 6,634,800 6,991,095 Rent, utilities and property maintenance 3,102,484 3,464,516 Hauling and equipment maintenance 2,898,202 3,378,452 Impairment of intangible assets - 2,499,753 Depreciation and amortization expense 5,814,880 4,061,404 Consulting, accounting and legal 1,713,613 897,981 Loss on asset (related-party and other of $ 9,850,850 and $ 197,458 , respectively) 10,048,308 - Common stock issued for services 171,239 - Other general and administrative expenses 3,200,445 1,946,580 Total Operating Expenses 33,998,165 23,323,774 Loss From Operations ( 19,514,762 ) ( 10,882,921 ) Other Income (Expense): Interest expense and amortization of debt discount ( 8,897,267 ) ( 34,079,230 ) Other gain (loss) 17,572 ( 79,231 ) Gain on tax credit 717,064 - Gain on lease termination 108,863 - Change in fair value of derivative liabilities - 14,264,476 Warrant expense for liquidated damages settlements - ( 7,408,681 ) Gain on conversion of convertible notes - 2,625,378 Gain (loss) on settlement of convertible notes payable and accrued interest, warrants and accounts payable and cancelation of common shares in exchange for Series Y and Series Z preferred shares and cash 632,540 516,920 Total Other Income (Expense) ( 7,421,228 ) ( 24,160,368 ) Net Loss Before Income Taxes ( 26,935,990 ) ( 35,043,290 ) Provision for Income Taxes (Benefit) - - Net Loss ( 26,935,990 ) ( 35,043,290 ) Deemed dividend for the reduction of exercise price of warrants ( 1,638,952 ) - Deemed dividend for the reduction of the conversion price of a debt note ( 5,022,200 ) - Deemed dividend for Series Z price protection trigger upon uplisting - ( 7,237,572 ) Deemed dividend for triggering of warrant price protection upon uplisting - ( 21,115,910 ) Deemed dividend for repricing of certain warrants for liquidated damages waiver - ( 462,556 ) Net Loss Available to Common Stockholders $ ( 33,597,142 ) $ ( 63,859,328 ) Net Loss Per Common Share: Basic $ ( 2.57 ) $ ( 9.71 ) Diluted $ ( 2.57 ) $ ( 9.71 ) Weighted Average Common Shares Outstanding: Basic 13,062,290 6,577,303 Diluted 13,062,290 6,577,303 The accompanying notes are an integral part of these consolidated financial statements. F- 4 GREENWAVE TECHNOLOGY SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) FOR THE YEAR ENDED DECEMBER 31, 2023 Shares Amount Shares Amount In Capital Deficit Total Preferred Stock Additional Series Z Common Stock Paid Accumulated Shares Amount Shares Amount In Capital Deficit Total Balance at December 31, 2022 322 $ - 10,962,319 $ 10,962 - $ 377,595,618 $ ( 362,269,015 ) $ 15,337,565 Issuance of common stock upon conversion of Series Z Preferred ( 322 ) - 1,301,994 $ 1,303 $ ( 1,303 ) - - Common stock issued for cash, net issuance costs - - 2,511,166 $ 2,511 - $ 2,838,670 - $ 2,841,181 Common stock issued for services rendered and to be rendered - - 275,929 $ 276 $ 254,172 - $ 254,448 Common stock issued for the exercise of warrants for cash - - 1,551,441 $ 1,551 $ 13,960 - $ 15,511 Issuance of common stock upon cashless exercise of warrants - - 361,487 $ 360 $ ( 361 ) - - Debt discount for warrants issued in senior secured debt placement - - - - $ 3,279,570 - $ 3,279,570 Debt discount for warrants issued as commission for senior secured debt placement - - - - $ 753,567 - $ 753,567 Deemed dividend for the reduction of the conversion price of a debt note - - - - $ 5,022,200 $ ( 5,022,200 ) $ - Deemed dividend for the reduction of the exercise price of warrants - - - - $ 1,638,952 $ ( 1,638,952 ) - Net loss - - - - - $ ( 26,935,990 ) $ ( 26,935,990 ) Balance at December 31, 2023 - $ - 16,964,336 $ 16,964 - $ 391,395,045 $ ( 395,866,157 ) $ ( 4,454,148 ) The accompanying notes are an integral part of these consolidated financial statements. F- 5 GREENWAVE TECHNOLOGY SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) FOR THE YEAR ENDED DECEMBER 31, 2022 Shares Amount Shares Amount Shares Amount In Capital Deficit Total Series Z Common Stock Common Stock to be Issued Additional Paid Accumulated Shares Amount Shares Amount Shares Amount In Capital Deficit Total Balance at December 31, 2021 500 $ 1 3,331,916 $ 3,332 8,500 $ 8 $ 275,058,283 $ ( 298,409,687 ) $ ( 23,348,062 ) Balance 500 $ 1 3,331,916 $ 3,332 8,500 $ 8 $ 275,058,283 $ ( 298,409,687 ) $ ( 23,348,062 ) Issuance of common stock previously recorded as to be issued - - 8,500 $ 8 ( 8,500 ) ( 8 ) - - - Elimination of derivative liabilities due to resolution of authorized share shortfall - - - - - - $ 29,759,766 - $ 29,759,766 Issuance of common stock upon conversion of convertible debt at uplisting - - 6,896,903 $ 6,897 - - $ 36,553,575 - $ 36,560,472 Issuance of common stock upon conversion of Series Z Preferred ( 178 ) ( 1 ) 725,000 $ 725 - - $ ( 725 ) $ - - Warrant expense for liquidated damages waiver - - - - - - $ 7,408,681 - $ 7,408,681 Deemed dividend for Series Z price protection trigger upon uplisting - - - - - - $ 7,237,572 $ ( 7,237,572 ) - Deemed dividend for repricing & issuance of additional warrants upon uplisting - - - - - - $ 21,115,910 $ ( 21,115,910 ) - Deemed dividend for repricing of certain warrants for liquidated damages waiver - - - - - - $ 462,556 $ ( 462,556 ) - Net loss - - - - - - - $ ( 35,043,290 ) $ ( 35,043,290 ) Balance at December 31, 2022 322 $ - 10,962,319 $ 10,962 - $ - $ 377,595,618 $ ( 362,269,015 ) $ 15,337,565 Balance 322 $ - 10,962,319 $ 10,962 - $ - $ 377,595,618 $ ( 362,269,015 ) $ 15,337,565 The accompanying notes are an integral part of these consolidated financial statements. F- 6 GREENWAVE TECHNOLOGY SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF CASHFLOWS 2023 2022 For the Year Ended December 31 , 2023 2022 Cash flows from operating activities: Net loss $ ( 26,935,990 ) $ ( 35,043,290 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization of intangible assets 5,814,880 3,834,309 Amortization of right of use assets, net - related-party 1,250,218 2,390,991 Amortization of right of use assets, net 392,050 227,185 Interest and amortization of debt discount 8,897,267 32,340,565 Warrant expense for liquidated damages settlement - 7,408,681 Loss on assets 197,458 - Loss on assets – related-party 9,850,850 - Loss on assets 9,850,850 - Impairments of goodwill - 2,499,753 Gain on settlement of convertible notes payable and accrued interest, warrants and accounts payable and cancelation of common shares in exchange for Series Y and Series Z preferred shares and cash - ( 2,625,378 ) Gain on termination of lease ( 108,863 ) - Gain on settlement of non-convertible notes payable and accrued interest ( 632,540 ) ( 516,920 ) Stock based compensation 171,239 - Gain on deferred revenue ( 25,000 ) - Change in fair value of derivative liabilities - ( 14,264,476 ) Changes in operating assets and liabilities: Due to related party 1,824,318 194,916 Inventories ( 10,782 ) 191,356 Accounts receivable ( 431,155 ) ( 215,256 ) Prepaid expenses ( 200,590 ) ( 12,838 ) Security deposit ( 25,000 ) ( 3,306 ) Accounts payable and accrued expenses ( 856,151 ) 1,738,665 Accrued payroll and related expenses 614,271 1,702,145 Environmental remediation - ( 22,207 ) Principal payments made on operating lease liability - related-party ( 1,477,285 ) ( 2,434,068 ) Principal payments made on operating lease liability ( 142,505 ) - Net cash used in operating activities ( 1,833,310 ) ( 2,609,173 ) Cash flows from investing activities: Purchases of property and equipment ( 1,760,945 ) ( 5,936,027 ) Cash received for the advance given for asset 82,769 - Net cash used in investing activities ( 1,678,176 ) ( 5,936,027 ) Cash flows from financing activities: Proceeds from sale of common stock 2,841,181 - Proceeds from warrant exercises 15,511 - Proceeds from issuance of convertible notes 13,118,750 - Proceeds from bridge financing 825,000 - Bank overdrafts 118,763 - Repayment of advances - ( 12,000 ) Proceeds from issuance of non-convertible notes payable 1,000,000 2,725,000 Repayment of a non-convertible notes payable ( 4,858,587 ) ( 220,000 ) Repayment of notes - ( 221,500 ) Proceeds from factoring 3,746,109 6,518,310 Repayments of factoring ( 12,570,886 ) ( 2,381,099 ) Net cash provided by financing activities 4,235,841 6,408,711 Net increase (decrease) in cash 724,355 ( 2,136,489 ) Cash, beginning of year 821,804 2,958,293 Cash, end of year $ 1,546,159 $ 821,804 Supplemental disclosures of cash flow information: Cash paid during period for interest $ 593,072 $ 216,763 Cash paid during period for taxes $ - $ - Supplemental disclosure of non-cash investing and financing activities: Equipment purchases from issuance of related-party note payable $ 17,218,350 $ - Deemed dividend for conversion price reduction of note $ 5,022,200 $ - Factoring proceeds utilized for payoff of factoring liabilities $ 5,004,393 $ 1,834,167 Debt discount for warrants issued in senior secured debt placement $ 4,033,036 $ - Equipment purchased by issuance of non-convertible notes payable $ 3,221,634 $ 3,930,745 Deemed dividend for exercise price reduction of warrants $ 1,638,952 $ - Exchange of bridge notes to convertible notes $ 990,000 $ - Assets taken over by related party $ 582,063 $ - Increase in right of use assets and operating lease liabilities $ 199,466 $ 1,778,209 Common shares issued upon conversion of Series Z Preferred $ 1,303 $ 725 Cashless exercise of warrants $ 360 $ - Common shares issued upon conversion of convertible notes and accrued interest $ - $ 36,560,472 Reclassification of derivative liability to additional paid in capital due to elimination of authorized share shortfall $ - $ 29,759,766 Deemed dividend for warrant repricing at uplisting $ - $ 21,115,910 Deemed dividend for price protection trigger in Series Z Preferred at uplisting $ - $ 7,237,572 Land purchased with deed of trust notes $ - $ 1,200,000 Advance for asset by issuance of notes payable $ - $ 1,193,380 Deemed dividend for repricing of certain warrants for liquidated damages waiver $ - $ 462,556 Issuance of common shares previously to be issued $ - $ 8 The accompanying notes are an integral part of these consolidated financial statements. F- 7 GREENWAVE TECHNOLOGY SOLUTIONS, INC. Notes to Consolidated Financial Statements December 31, 2023 and 2022 NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION Greenwave Technology Solutions, Inc. (“Greenwave” or the “Company”) was incorporated in the State of Delaware on April 26, 2013 as a technology platform developer under the name MassRoots, Inc. The Company sold its social media assets in October 2021 and has discontinued all operations related to this business. On September 30, 2021, we closed our acquisition of Empire Services, Inc. (“Empire”), which operates 11 metal recycling facilities in Virginia and North Carolina. The acquisition was effective October 1, 2021 upon the effectiveness of the Certificate of Merger in Virginia. In December 2022, we began offering hauling services to corporate clients. We haul sand, dirt, asphalt, metal, and other materials in a fleet of approximately 50 trucks which we own, manage, and maintain. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Our consolidated financial statements include the accounts of Empire Services, Inc., Liverman Metal Recycling, Inc., Empire Staffing, LLC, Scrap App, Inc., and Greenwave Elite Sports Facility, Inc., our wholly owned subsidiaries. NOTE 2 – GOING CONCERN AND MANAGEMENT’S LIQUIDITY PLANS As of December 31, 2023, the Company had cash of $ 1,546,159 and a working capital deficit (current liabilities in excess of current assets) of $( 20,579,715 ). During the year ended December 31, 2023, the net cash used in operating activities was $( 1,833,310 ). The accumulated deficit as of December 31, 2023 was $ ( 395,866,157 ) . These conditions raise substantial doubt about the Company’s ability to continue as a going concern for one year from the issuance of the consolidated financial statements. During the year ended December 31, 2023, the Company received proceeds of $ 825,000 , $ 1,000,000 , $ 13,118,750 , $ 2,841,181 , and $ 3,746,109 from the issuance of bridge notes, non-convertible notes, convertible notes, sale of common stock, and factoring advances, respectively. Until the Company’s consummation of the Empire acquisition, the Company had experienced net losses and negative cash flows from operations. The Company believes it could generate positive cashflows from operations going forward but in the event the market for recycled metals experiences a sharp downturn or if it experiences delays in its growth plans, the Company may need to raise additional capital. The Company’s failure to raise capital as and when needed could have a negative impact on its financial condition and its ability to pursue its business strategy. Accordingly, the accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business for one year from the date the consolidated financial statements are issued. The carrying amounts of assets and liabilities presented in the consolidated financial statements do not necessarily purport to represent realizable or settlement values. The consolidated financial statements do not include any adjustments that might result should the Company be unable to continue as a going concern. NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of Greenwave Technology Solutions, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include estimates used in the calculation of stock-based compensation, fair values relating to derivative liabilities, payroll tax liabilities with interest and penalties, deemed dividends, allowance for doubtful accounts, assumptions used in right-of-use and lease liability calculations, valuations and impairments of goodwill and intangible assets acquired in business combination, estimated useful life of long-lived assets and finite life tangible assets, and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates. F- 8 Fair Value of Financial Instruments The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 825-10, “Financial Instruments” (“ASC 825-10”) requires disclosure of the fair value of certain financial instruments. The estimated fair value of certain financial instruments, including cash, accounts payable and accrued liabilities are carried at historical cost basis, which approximates their fair value because of the short-term maturity of these instruments. All other significant financial assets, financial liabilities and equity instruments of the Company are either recognized or disclosed in the consolidated financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. The Company follows ASC 825-10, which permits entities to choose to measure many financial instruments and certain other items at fair value. Cash For purposes of the consolidated statements of cash flows, the Company considers highly liquid investments with an original maturity of three months or less to be cash equivalents. As of December 31, 2023 and 2022, the Company had no cash equivalents. The Company maintains its cash in banks insured by the Federal Deposit Insurance Corporation in accounts that at times may be in excess of the federally insured limit of $ 250,000 per bank. The Company minimizes this risk by placing its cash deposits with multiple major financial institutions. At December 31, 2023 and 2022, the uninsured balances amounted to $ 1,267,659 and $ 434,399 , respectively. Property and Equipment, net We state property and equipment at cost or, if acquired through a business combination, fair value at the date of acquisition. We calculate depreciation and amortization using the straight-line method over the estimated useful lives of the assets, except for our leasehold improvements, which are depreciated over the shorter of their estimated useful lives or their related lease term. Upon the sale or retirement of assets, the cost and related accumulated depreciation are removed from our accounts and the resulting gain or loss is credited or charged to income. We expense costs for repairs and maintenance when incurred. Our property and equipment is pledged as collateral for certain non-convertible notes, see “Note 8 – Advances and Non-Convertible Notes Payable.” Cost of Revenue The Company’s cost of revenue consists primarily of the costs of purchasing metal from its suppliers, direct costs of providing hauling costs to customers, and cost of other revenue, including sand. Related Party Transactions Parties are considered related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions. See Note 19 – Related Party Transactions. F- 9 Leases The Company accounts for its leases under ASC 842, Leases. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the consolidated balance sheet as both a right of use asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company’s incremental borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and the right of use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right of use asset result in straight-line rent expense over the lease term. Variable lease expenses, if any, are recorded when incurred. In calculating the right of use asset and lease liability, the Company elected to combine lease and non-lease components. The Company excluded short-term leases having initial terms of 12 months or less from the new guidance as an accounting policy election and recognizes rent expense on a straight-line basis over the lease term. See Note 12 – Leases. Commitments and Contingencies From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. Except as set forth below, we are currently not aware of any such legal proceedings or claims that will have, individually or in the aggregate, a material adverse effect on our business, financial condition or operating results. See Note 11 – Commitments and Contingencies. Revenue Recognition The Company’s revenues are accounted for under ASC Topic 606, “Revenue From Contracts With Customers” (“ASC 606”) and generally do not require significant estimates or judgments based on the nature of the Company’s revenue streams. The sales prices are generally fixed at the point of sale and all consideration from contracts is included in the transaction price. The Company’s contracts do not include multiple performance obligations or material variable consideration. In accordance with ASC 606, the Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company recognizes revenue in accordance with that core principle by applying the following: (i) Identify the contract(s) with a customer; (ii) Identify the performance obligation in the contract; (iii) Determine the transaction price; (iv) Allocate the transaction price to the performance obligations in the contract; and (v) Recognize revenue when (or as) the Company satisfies a performance obligation. The Company primarily generates revenue by purchasing scrap metal from businesses and retail suppliers, processing it, and selling the ferrous and non-ferrous metals to customers. The Company also provides hauling services to certain corporate clients. The Company realizes revenue upon the fulfillment of its performance obligations to customers. As of December 31, 2023 and 2022, the Company had a contract liability of $ 0 and $ 25,000 , respectively, for contracts under which the customer had paid for and the Company had not yet delivered. F- 10 The following table details our contract liability activity for the years ended December 31, 2023 and 2022: SCHEDULE OF CONTRACT LIABILITY Balance, December 31, 2021 $ - Net transfers in due to new contract liabilities 25,000 Net transfers out to revenue - Balance, December 31, 2022 $ 25,000 Net transfers in due to new contract liabilities - Net transfers out to other gain ( 25,000 ) Balance, December 31, 2023 $ - Accounts Receivable Accounts receivable represent amounts primarily due from customers on products and services rendered. These accounts receivable, which are reduced by an allowance for credit losses, are recorded at the invoiced amount and do not bear interest. The Company extends credit to customers under contracts containing customary and explicit payment terms, and payment is generally required within 1 to 30 days of shipment or the services being rendered. The Company evaluates the collectability of its accounts receivable based on a combination of factors, including whether sales, the aging of customer receivable balances, historical collection rates, and economic trends. Management uses this evaluation to estimate the amount of customer receivables that may not be collected in the future and records a provision for expected credit losses. Accounts are written off when all efforts to collect have been exhausted. Inventories Although we ship the ferrous and non-ferrous metals we purchase from suppliers multiple times per day, we do maintain inventories. We calculate the value of the inventories on hand, which consist of processed and unprocessed scrap metal (ferrous and nonferrous), used and salvaged vehicles, and supplies, based on the net realizable value or the cost of the inventories, whichever is less. We calculate the cost of the inventory based on the first-in-first-out (FIFO) methodology. We calculate the value of finished products based on their net realizable value as their cost basis is not readily available. The value of our inventories was $ 200,428 and $ 189,646 , respectively, as of December 31, 2023 and 2022. See “Note 5 – Inventories.” Advertising The Company charges the costs of advertising to expense as incurred. Advertising costs were $ 414,194 and $ 83,993 for the year ended December 31, 2023 and 2022, respectively. Stock-Based Compensation Stock-based compensation expense is measured at the grant date fair value of the award and is expensed over the requisite service period. For stock-based awards to employees, non-employees and directors, the Company calculates the fair value of the award on the date of grant using the Black-Scholes option pricing model. Determining the fair value of stock-based awards at the grant date under this model requires judgment, including estimating volatility, employee stock option exercise behaviors and forfeiture rates. The assumptions used in calculating the fair value of stock-based awards represent the Company’s best estimates, but these estimates involve inherent uncertainties and the application of management’s judgment. Income Taxes The Company follows ASC Subtopic 740-10, “Income Taxes” (“ASC 740-10”) for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability during each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. See “Note 18 – Income Taxes.” F- 11 Convertible Instruments U.S. GAAP requires companies to bifurcate conversion options from their host instruments and account for them as freestanding derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur, and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. An exception to this rule is when the host instrument is deemed to be conventional, as that term is described under ASC 480, “Distinguishing Liabilities From Equity.” Deemed Dividends The Company records, when necessary, deemed dividends for: (i) warrant price protection, based on the difference between the fair value of the warrants immediately before and after the repricing (inclusive of any full ratchet provisions); (ii) the exchange of preferred shares for convertible notes, based on the amount of the face value of the convertible notes in excess of the carrying value of the preferred shares; (iii) the settlement of warrant provisions, based on the fair value of the common shares issued; and (iv) amortization of discount on preferred stock resulting from recognition of a beneficial conversion feature. Derivative Financial Instruments The Company classifies as equity any contracts that: (i) require physical settlement or net-share settlement; or (ii) provide the Company with a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement) providing that such contracts are indexed to the Company’s own stock. The Company classifies as assets or liabilities any contracts that: (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company’s control); or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). The Company assesses classification of its common stock purchase warrants and other freestanding derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. The Company’s freestanding derivatives consisted of warrants to purchase common stock that were issued in connection with the issuance of debt and the sale of common shares, and of embedded conversion options within convertible notes. The Company evaluated these derivatives to assess their proper classification in the balance sheet as of December 31, 2023 and 2022 using the applicable classification criteria enumerated under ASC 815, “Derivatives and Hedging.” The Company determined that certain embedded conversion and/or exercise features did not contain fixed settlement provisions. The convertible notes contained a conversion feature such that the Company could not ensure it would have adequate authorized shares to meet all possible conversion demands. As such, the Company was required to record the derivatives which do not have fixed settlement provisions as liabilities and mark to market all such derivatives to fair value at the end of each reporting period. The Company also records derivative liabilities for instruments, including convertible notes, preferred stock, and warrants, in which the Company does not have sufficient authorized shares to cover the conversion of these instruments into shares of common stock. Environmental Remediation Liability The operations of the Company, like those of other companies in its industry, are subject to various domestic and foreign environmental laws and regulations. These laws and regulations not only govern current operations and products, but also impose potential liability on the Company for past operations. Management expects environmental laws and regulations to impose increasingly stringent requirements upon the Company and the industry in the future. Management believes that the Company conducts its operations in compliance with applicable environmental laws and regulations and has implemented various programs designed to protect the environment and promote continued compliance. F- 12 The Company continuously assesses its potential liability for remediation-related activities and adjusts its environmental-related accruals as information becomes available upon which more accurate costs can be reasonably estimated and as additional accounting guidelines are issued. At December 31, 2023 and 2022, the Company had accruals reported on the balance sheet as current liabilities of $ 0 and $ 0 , respectively. Actual costs incurred may vary from the accrued estimates due to the inherent uncertainties involved including, among others, the nature and magnitude of the wastes involved, the various technologies that can be used for remediation and the determination of acceptable remediation with respect to a particular site. Additionally, costs for environmental-related activities may not be reasonably estimable and therefore would not be included in our current liabilities. Management believes its environmental remediation liabilities were resolved in fiscal year 2022. Long-Lived Assets The Company reviews its property and equipment and any identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The test for impairment is required to be performed by management at least annually. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted operating cash flow expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. Intangible assets are stated at cost and reviewed annually to examine any impairments, usually assuming an estimated useful life of five to ten years . When retired or otherwise disposed, the related carrying value and accumulated depreciation are removed from the respective accounts and the net difference less any amount realized from disposition, is reflected in earnings. The estimated useful lives of the Intellectual Property, Customer List, and Licenses assumed in the Empire acquisition is 5 years, 10 years, and 10 years, respectively. See Note 7 – Amortization of Intangible Assets. Indefinite Lived Intangibles and Goodwill The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, “Business Combinations,” where the total purchase price is allocated to the tangible and identified intangible assets acquired and liabilities assumed based on their estimated fair values. The purchase price is allocated using the information currently available, and may be adjusted, up to one year from acquisition date, after obtaining more information regarding, among other things, asset valuations, liabilities assumed and revisions to preliminary estimates. The purchase price in excess of the fair value of the tangible and identified intangible assets acquired less liabilities assumed is recognized as goodwill. The Company tests indefinite lived intangibles and goodwill for impairment in the fourth quarter of each year and whenever events or circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable. During the fiscal years ended December 31, 2023 and 2022, the Company recorded $ 0 and $ 2,499,753 in impairment expense related to goodwill and $ 2,958,500 and $ 2,958,500 in amortization of intangible assets, respectively. F- 13 Goodwill Goodwill is the excess of the purchase price paid over the fair value of the net assets of the acquired business. Goodwill is tested annually at December 31 for impairment. The annual qualitative or quantitative assessments involve determining an estimate of the fair value of reporting units in order to evaluate whether an impairment of the current carrying amount of goodwill exists. A qualitative assessment evaluates whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step quantitative goodwill impairment test. The first step of a quantitative goodwill impairment test compares the fair value of the reporting unit to its carrying amount including goodwill. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss may be recognized. The amount of impairment loss is determined by comparing the implied fair value of the reporting unit’s goodwill with the carrying amount. If the carrying amount exceeds the implied fair value, then an impairment loss is recognized equal to that excess. The Company has adopted the provisions of ASU 2017-04—Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 requires goodwill impairments to be measured on the basis of the fair value of a reporting unit relative to the reporting unit’s carrying amount rather than on the basis of the implied amount of goodwill relative to the goodwill balance of the reporting unit. Thus, ASU 2017-04 permits an entity to record a goodwill impairment that is entirely or partly due to a decline in the fair value of other assets that, under existing GAAP, would not be impaired or have a reduced carrying amount. Furthermore, the ASU removes “the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test.” Instead, all reporting units, even those with a zero or negative carrying amount will apply the same impairment test. Accordingly, the goodwill of reporting unit or entity with zero or negative carrying values will not be impaired, even when conditions underlying the reporting unit/entity may indicate that goodwill is impaired. We test our goodwill for impairment annually, or, under certain circumstances, more frequently, such as when events or circumstances indicate there may be impairment. We are required to write down the value of goodwill only when our testing determines the recorded amount of goodwill exceeds the fair value. Our annual measurement date for testing goodwill impairment is December 31. None of the goodwill is deductible for income tax purposes. During the fiscal years ended December 31, 2023 and 2022, the Company recorded $ 0 and $ 2,499,753 in impairment expense related to goodwill, respectively. As of December 31, 2023 and 2022, the carrying value of goodwill was $ 0 and $ 0 , respectively. Factoring Agreements We have entered into factoring agreements with various financial institutions to receive cash for our future revenues. These transactions are treated as a debt instrument and are accounted for as a liability because the Company makes weekly payments towards the balance and fees. We utilize factoring arrangements as an integral part of our financing for working capital. Any change in the availability of these factoring arrangements could have a material adverse effect on our financial condition. As of December 31, 2023 and 2022, the Company owed $ 0 and $ 4,893,207 , net of debt discounts of $ 0 and $ 1,221,022 , respectively for factoring advances. See “Note 8 – Advances and Non-Convertible Notes Payable.” Segment Reporting Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the Chief Executive Officer, or decision-making group, in deciding the method to allocate resources and assess performance. The Company currently has one reportable segment for financial reporting purposes, which represents the Company’s core business. Net Earnings (Loss) Per Common Share The Company computes earnings (loss) per share under ASC subtopic 260-10, Earnings Per Share. Net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods, as applicable. The computation of basic and diluted income (loss) per share, for the year ended December 31, 2023 and 2022 excludes potentially dilutive securities when their inclusion would be anti-dilutive, or if their exercise prices were greater than the average market price of the common stock during the period. F- 14 Potentially dilutive securities excluded from the computation of basic and diluted net loss per share are as follows: SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES EXCLUDED FROM THE COMPUTATION OF BASIC AND DILUTED NET LOSS PER SHARE December 31, 2023 December 31, 2022 Common shares issuable upon conversion of convertible notes 22,058,824 - Options to purchase common shares 92,166 92,166 Warrants to purchase common shares 18,649,802 9,757,710 Common shares issuable upon conversion of preferred stock - 1,301,988 Total potentially dilutive shares 40,800,792 11,151,864 Recent Accounting Pronouncements On January 1, 2020, The Company adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held to maturity debt securities. It also applies to Off-Balance Sheet (“OBS”) credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments and leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326 made changes to the accounting for available for sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write down on available for sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell. The adoption of this update did not have a material impact on the Company’s consolidated financial statements and related disclosures. There are other various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. NOTE 4 – CONCENTRATIONS OF RISK Supplier Concentrations The Company has a concentration of suppliers. During the year ended December 31, 2023, two suppliers accounted for $ 609,119 and $ 374,800 , or 2.88 % and 1.77 %. During the year ended December 31, 2022, two suppliers accounted for $ 1,114,265 and $ 639,676 , or 5.3 % and 3.0 %, respectively of the scrap metal purchases made by the Company. Accounts Receivable The Company has a concentration of credit risk with its accounts receivable balance. At December 31, 2023, six certain large customers individually accounted for $ 154,090 , $ 95,510 , $ 95,219 , $ 62,057 , $ 59,932 , and $ 54,007 , or 23.84 %, 14.78 %, 14.74 %, 9.60 %, 9.27 %, and 8.35 %, re spectively. At December 31, 2022, one customer accounted for $ 164,932 , or 77 %, of our accounts receivable. Customer Concentrations The Company has a concentration of customers. For the fiscal year ended December 31, 2023, two large customers individually accounted for $ 20,716,044 and $ 2,001,847 , or approximately 58.08 % and 5.61 % of our revenues, respectively. For the fiscal year ended December 31, 2022, certain large customers individually accounted for $ 17,962,176 , $ 5,332,834 , and $ 4,301,328 , or approximately 53 %, 16 %, and 13 % of our revenues, respectively. The Company’s sales are concentrated in the Virginia and northeastern North Carolina markets. F- 15 NOTE 5 – INVENTORIES Inventories consisted of the following as of: SCHEDULE OF INVENTORIES December 31, 2023 December 31, 2022 Processed and unprocessed scrap metal $ 200,428 $ 189,646 Finished products - - Inventories $ 200,428 $ 189,646 NOTE 6 – PROPERTY AND EQUIPMENT Property and equipment as of December 31, 2023 and 2022 is summarized as follows: SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2023 December 31, 2022 Machinery & Equipment $ 18,028,893 $ 12,995,494 Furniture & Fixtures 6,128 6,128 Vehicles 7,149,919 20,000 Leaseholder Improvement 1,862,593 988,100 Land 980,129 980,129 Buildings 724,170 724,170 Subtotal 28,751,832 15,714,021 Less accumulated depreciation ( 5,256,392 ) ( 2,546,486 ) Property and equipment, net $ 23,495,440 $ 13,167,535 Depreciation expense for the years ended December 31, 2023 and 2022 was $ 2,856,380 and $ 875,809 , respectively. Impairment of equipment for the years ended December 31, 2023 and 2022 was $ 197,458 and $ 227,185 , respectively. Loss on assets for the years ended December 31, 2023 and 2022 was $ 9,850,850 and $ 0 , respectively due to loss on a related-party asset purchase. As of December 31, 2023 and 2022, the Company’s lenders had advanced $ 0 and $ 1,193,380 , respectively, for equipment which had not yet been delivered to the Company. NOTE 7 – AMORTIZATION OF INTANGIBLE ASSETS All of the Company’s current identified intangible assets were assumed upon consummation of the Empire acquisition on October 1, 2021. Identified intangible assets consisted of the following at the dates indicated below: SCHEDULE OF INTANGIBLE ASSETS December 31, 2023 Remaining Gross carrying amount Accumulated amortization Carrying value estimated useful life Intellectual Property $ 3,036,000 $ ( 1,366,200 ) $ 1,669,800 3 years Customer List 2,239,000 ( 503,775 ) 1,735,225 8 years Licenses 21,274,000 ( 4,786,650 ) 16,487,350 8 years Total intangible assets, net $ 26,549,000 $ ( 6,656,625 ) $ 19,892,375 December 31, 2022 Remaining Gross carrying amount Accumulated amortization Carrying value estimated useful life Intellectual Property $ 3,036,000 $ ( 759,000 ) $ 2,277,000 4 years Customer List 2,239,000 ( 279,875 ) 1,959,125 9 years Licenses 21,274,000 ( 2,659,250 ) 18,614,750 9 years Total intangible assets, net $ 26,549,000 $ ( 3,698,125 ) $ 22,850,875 F- 16 There were no intangible assets acquired during the years ended December 31, 2023 and 2022. Amortization expense for intangible assets was $ 2,958,500 and $ 2,958,500 for the years ended December 31, 2023 and 2022, respectively. Total estimated amortization expense for our intangible assets for the years 2024 through 2028 is as follows: SCHEDULE OF AMORTIZATION EXPENSES FOR INTANGIBLE ASSETS Year ended December 31, 2024 $ 2,958,500 2025 2,958,500 2026 2,806,700 2027 2,351,300 2028 2,351,300 Thereafter 6,466,075 NOTE 8 – ADVANCES, NON-CONVERTIBLE NOTES PAYABLE, AND PPP NOTE PAYABLE Factoring Advances Upon effectiveness of the Company’s acquisition of Empire on October 1, 2021, the Company became liable for merchant cash advances Empire had obtained in the amount of $ 4,975,940 with a carrying value of $ 4,072,799 as of the acquisition date. The advances had final payment dates ranging from November 19, 2020 to March 11, 2022. The advances were secured against the assets of Empire. The Company made payments of $ 4,104,334 towards these advances during the year ended December 31, 2021. There was amortization of debt discount of $ 903,141 from October 1, 2021 to December 8, 2021. The Company realized an aggregate gain on the settlement of these advances of $ 871,606 from November 30 to December 8, 2021. On August 2, 2022, the Company entered into a revenue factoring advance in the principal amount of $ 1,587,500 for a purchase price of $ 1,225,000 . The Company’s Chief Executive Officer was personally liable for this factoring advance. The Company was required to make weekly payments in the amount $ 37,798 through June 2023. The revenue factoring advance had a maturity date of June 4, 2023 . There was amortization of debt discount of $ 362,500 and a gain on settlement of debt of $ 187,505 , respectively, during the year ended December 31, 2022. The Company made repayments of $ 1,399,995 during the year ended December 31, 2022. As of December 31, 2022, the revenue factoring advance had a balance of $ 0 net an unamortized debt discount of $ 0 . On August 3, 2022, the Company entered into a revenue factoring advance in the principal amount of $ 952,500 for a purchase price of $ 735,000 . The Company’s Chief Executive Officer was personally liable for this factoring advance. The Company was required to make weekly payments in the amount $ 22,679 through June 2023. The advance had a maturity of June 4, 2023 . There was amortization of debt discount of $ 217,500 during the year ended December 31, 2022. The Company made repayments of $ 952,500 during the year ended December 31, 2022. As of December 31, 2022, the revenue factoring advance had a balance of $ 0 net an unamortized debt discount of $ 0 . On September 28, 2022, the Company entered into a revenue factoring advance in the principal amount of $ 1,815,000 for a purchase price of $ 1,477,500 . The Company’s Chief Executive Officer was personally liable for this factoring advance. The Company was required to make weekly payments in the amount $ 36,012 through September 2023. The advance had a maturity of October 18, 2023 . There was amortization of debt discount of $ 337,500 and a gain of settlement of debt of $ 165,000 during the year ended December 31, 2022. The Company made repayments of $ 1,650,000 during the year ended December 31, 2022. As of December 31, 2022, the revenue factoring advance had a balance of $ 0 net an unamortized debt discount of $ 0 . F- 17 On December 8, 2022, the Company entered into a revenue factoring advance in the principal amount of $ 3,025,000 for a purchase price of $ 2,500,000 . The Company’s Chief Executive Officer was personally liable for this factoring advance. The Company was required to make weekly payments in the amount $ 60,020 through December 2023. The advance matured on December 15, 2023 . There was amortization of debt discount of $ 492,540 and $ 32,460 during the years ended December 31, 2023 and 2022, respectively. The Company made repayments of $ 180,060 during the year ended December 31, 2022. The Company made cash repayments of $ 695,198 and the remaining $ 2,149,742 balance was repaid out of the proceeds of another advance during the year ended December 31, 2023. As of December 31, 2023 and 2022, the revenue factoring advance had a balance of $ 0 and $ 2,352,000 , net an unamortized debt discount of $ 0 and $ 492,540 , respectively. On December 8, 2022, the Company entered into a revenue factoring advance in the principal amount of $ 1,815,000 for a purchase price of $ 1,470,000 . The Company’s Chief Executive Officer was personally liable for this factoring advance. The Company was required to make weekly payments in the amount $ 34,904 through December 2023. The advance matured on December 15, 2023. There was amortization of debt discount of $ 323,669 and $ 21,330 during the years ended December 31, 2023 and 2022, respectively. The Company made repayments of $ 104,712 during the year ended December 31, 2022. The Company made cash repayments of $ 408,136 and the remaining $ 1,302,152 balance was repaid out of the proceeds of another advance during the year ended December 31, 2023. As of December 31, 2023 and 2022, the revenue factoring advance had a balance of $ 0 and $ 1,386,619 net an unamortized debt discount of $ 0 and $ 323,670 , respectively. On December 29, 2022, the Company entered into a revenue factoring advance in the principal amount of $ 1,474,000 for a purchase price of $ 1,067,000 . The Company’s Chief Executive Officer is personally liable for this factoring advance. The Company is required to make weekly payments in the amount $ 28,346 through January 2024. The advance matures on January 4, 2024. There was amortization of debt discount of $ 404,812 and $ 2,188 during the years ended December 31, 2023 and 2022, respectively. The Company made cash repayments of $ 1,474,000 and $ 0 during the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, the revenue factoring advance had a balance of $ 0 and $ 1,069,188 net an unamortized debt discount of $ 0 and $ 404,812 , respectively. On January 17, 2023, the Company entered into a revenue factoring advance in the principal amount of $ 770,000 for a purchase price of $ 550,000 . There was an origination fee of $ 50,000 . The Company’s Chief Executive Officer was personally liable for this factoring advance. The Company was required to make weekly payments in the amount $ 24,062 through June 2023. The advance matured on June 17, 2023. There was amortization of debt discount of $ 270,000 during the year ended December 31, 2023. The Company made cash repayments of $ 192,500 and the remaining balance of $ 548,625 was repaid out of the proceeds of another advance during the year ended December 31, 2023. There was a $ 28,875 gain on settlement of the advance during the year ended December 31, 2023. As of December 31, 2023, the revenue factoring advance had a balance of $ 0 . On January 17, 2023, the Company entered into a revenue factoring advance in the principal amount of $ 1,400,000 for a purchase price of $ 1,000,000 . There was an origination fee of $ 100,000 . The Company’s Chief Executive Officer was personally liable for this factoring advance. The Company was required to make weekly payments in the amount $ 43,750 through June 2023. The advance matured on June 17, 2023. There was amortization of debt discount of $ 500,000 during the year ended December 31, 2023. The Company made cash repayments of $ 350,000 and the remaining balance of $ 1,003,870 was repaid out of the proceeds of another advance during the year ended December 31, 2023. There was a $ 46,130 gain on settlement of the advance during the year ended December 31, 2023. As of December 31, 2023, the revenue factoring advance had a balance of $ 0 . On March 29, 2023, the Company entered into a revenue factoring advance in the principal amount of $ 2,902,500 for a purchase price of $ 2,250,000 . There was an origination fee of $ 67,500 . The proceeds of $ 2,182,500 were used to pay off other advances and there were no cash proceeds. The Company’s Chief Executive Officer was personally liable for this factoring advance. The Company was required to make weekly payments in the amount $ 54,764 through April 2024. The advance matured on April 24, 2024. There was amortization of debt discount of $ 652,500 during the year ended December 31, 2023. The Company made cash repayments of $ 2,744,950 during the year ended December 30, 2023. There was a gain of settlement of $ 157,550 during the year ended December 31, 2023. As of December 31, 2023, the revenue factoring advance had a balance of $ 0 , net an unamortized debt discount of $ 0 . F- 18 On March 29, 2023, the Company entered into a revenue factoring advance in the principal amount of $ 4,386,000 for a purchase price of $ 3,400,000 . There was an origination fee of $ 102,000 . There were cash proceeds of $ 476,109 and the remaining proceeds of $ 2,821,891 were used to pay off other advances. The Company’s Chief Executive Officer was personally liable for this factoring advance. The Company was required to make weekly payments in the amount $ 82,755 through April 2024. The advance matured on April 24, 2024. There was amortization of debt discount of $ 986,000 during the year ended December 31, 2023, respectively. The Company made cash repayments of $ 4,080,105 during the year ended December 31, 2023. There was a gain of settlement of $ 305,895 during the year ended December 31, 2023. As of December 31, 2023, the revenue factoring advance had a balance of $ 0 , net an unamortized debt discount of $ 0 . On May 26, 2023, the Company entered into a revenue factoring advance in the principal amount of $ 917,000 for a purchase price of $ 700,000 . There was an origination fee of $ 21,000 . There were cash proceeds of $ 679,000 . The Company’s Chief Executive Officer was personally liable for this factoring advance. The Company was required to make weekly payments in the amount $ 17,635 through May 2024. The advance matured on May 26, 2024. There was amortization of debt discount of $ 238,000 during the year ended December 31, 2023. The Company made cash repayments of $ 861,000 during the year ended December 31, 2023. There was a gain of settlement of $ 56,000 during the year ended December 31, 2023. As of December 31, 2023, the revenue factoring advance had a balance of $ 0 . net an unamortized debt discount of $ 0 . On May 26, 2023, the Company entered into a revenue factoring advance in the principal amount of $ 393,000 for a purchase price of $ 300,000 . There was an origination fee of $ 9,000 . There were cash proceeds of $ 291,000 . The Company’s Chief Executive Officer was personally liable for this factoring advance. The Company was required to make weekly payments in the amount $ 7,558 through May 2024. The advance matures on May 26, 2024. There was amortization of debt discount of $ 102,000 during the year ended December 31, 2023. The Company made cash repayments of $ 375,000 during the year ended December 31, 2023. There was a gain of settlement of $ 18,000 during the year ended December 31, 2023. As of December 31, 2023, the revenue factoring advance had a balance of $ 0 net an unamortized debt discount of $ 0 . On June 7, 2023, the Company entered into a revenue factoring advance in the principal amount of $ 1,400,000 for a purchase price of $ 910,000 . There was an origination fee of $ 90,000 . There were cash proceeds of $ 910,000 during the nine months ended September 30, 2023. The Company’s Chief Executive Officer was personally liable for this factoring advance. The Company was required to make weekly payments in the amount $ 51,785 through March 2024. The advance matured on March 7, 2024. There was amortization of debt discount of $ 490,000 during the year ended December 31, 2023, respectively. The Company made cash repayments of $ 1,379,910 during the year ended December 31, 2023. There was a gain of settlement of $ 20,090 during the year ended December 31, 2023. As of December 31, 2023, the revenue factoring advance had a balance of $ 0 , net an unamortized debt discount of $ 0 . The remaining advances are for Simple Agreements for Future Tokens, entered into with accredited investors issued pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended, by virtue of Section 4(a)(2) thereof and/or Regulation D thereunder in 2018. As of December 31, 2023 and 2022, the Company owed $ 85,000 for Simple Agreements for Future Tokens. Non-Convertible Notes Payable On September 23, 2021, the Company entered into a Resolution Agreement with Sheppard, Mullin, Richter & Hampton concerning the $ 459,250.88 judgement entered against the Company (See Note 11 – Commitments and Contingencies ). Under the terms of the Resolution Agreement, which the Company has classified as a non-convertible note, the Company was required to make a $25,000 initial payment by September 30, 2021 and is required to make $15,000 monthly payments from October 2021 to January 2023 with a final $10,000 payment due in February 2023 . There was amortization of the debt discount of $ 3,182 and $ 10,297 during the year s ended December 31, 2023 and 2022, re spectively . During the year s ended December 31, 2023 and 2022, the Company made $ 40,000 and $ 165,000 in payments towards the Resolution Agreement, re spectively . As of December 31, 2023 and 2022, the Resolution Agreement had a balance of $ 0 and $ 38,284 , net an unamortized debt discount of $ 0 and $ 3,182 , respectively. F- 19 On April 11, 2022, the Company entered into a vehicle financing agreement with GM Financial for the purchase of a vehicle for use by the Company’s Chief Executive Officer in the principal amount of $ 74,186 . GM Financial financed $ 65,000 of the purchase price of the vehicle and the Company was required to make a $ 10,000 down payment. There was a $ 2,400 rebate applied to the purchase price. The Company is required to make 60 monthly payments of $ 1,236 . During the years ended December 31, 2023 and 2022, the Company made $ 27,393 and $ 6,182 in payments towards the financing agreement, respectively. There was amortization of debt discount of $ 1,592 and $ 1,296 during the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, the financing agreement had a balance of $ 34,312 and $ 60,114 , net an unamortized debt discount of $ 6,298 and $ 7,890 , respectively. On April 21, 2022, the Company entered into a secured promissory note in the principal amount of $ 964,470 for the financing and installation of a piece of equipment in the amount $ 750,000 . The Company is required to make monthly payments in the amount $ 6,665 through October 2022 and monthly payments of $ 19,260 until October 2026. The note bears an interest rate of 10.6 %, is secured by certain assets of the Company, and matures on October 21, 2026. During the years ended December 31, 2023 and 2022, the Company made $ 354,789 and $ 46,655 in payments towards the note, respectively. There was amortization of debt discount of $ 72,932 and $ 34,440 during the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, the note had a balance of $ 455,929 and $ 732,550 net an unamortized debt discount of $ 107,097 and $ 180,030 , respectively. On September 1, 2022, the Company entered into a Deed of Trust note for the purchase of land and buildings. The note has a principal amount of $ 600,000 , bears an interest rate of 6.5 %, and matures on September 1, 2032. The Company is required to make monthly payments of $ 4,476 until September 1, 2032, when the remaining principal and accrued interest becomes due. The Company made principal payments of $ 16,727 and $ 4,046 during the years ended December 31, 2023 and 2022, respectively. The Company made interest payments of $ 36,985 and $ 9,382 during the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, the note had a principal balance of $ 579,227 and $ 595,954 and accrued interest of $ 2,991 and $ 3,184 , respectively. On September 1, 2022, the Company entered into an additional Deed of Trust note for the purchase of land and buildings. The note has a principal amount of $ 600,000 , bears an interest rate of 6.5 %, and matures on September 1, 2032. The Company is required to make monthly payments of $ 4,476 until September 1, 2032, when the remaining principal and accrued interest becomes due. The Company made principal payments of $ 16,727 and $ 4,046 during the years ended December 31, 2023 and 2022, respectively. The Company made interest payments of $ 36,985 and $ 9,382 during the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, the note had a principal balance of $ 579,227 and $ 595,954 and accrued interest of $ 2,991 and $ 3,184 , respectively. On September 14, 2022, the Company entered into a secured promissory note in the principal amount of $ 2,980,692 for a purchase price of $ 2,505,000 . The note is secured by certain assets of the Company. The Company is required to make monthly payments in the amount $ 82,797 through September 2025. The note bears an interest rate of 10.6 %, is secured by certain assets of the Company, and matures on September 14, 2025. There was amortization of debt discount of $ 256,797 and $ 47,411 during the years ended December 31, 2023 and 2022, respectively. There were payments of $ 1,374,821 and $ 165,594 towards the note during the year ended December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, the note had a balance of $ 1,268,792 , and $ 2,386,817 net an unamortized debt discount of $ 171,484 and $ 428,281 , respectively. On November 28, 2022, the Company entered into a secured promissory note in the principal amount of $ 1,539,630 for a purchase price of $ 1,078,502 . The note is secured by certain assets of the Company. The Company is required to make monthly payments in the amount of $ 10,410 through March 2023 and then monthly payments in the amount of $ 20,950 through March 2029. The note bears an interest rate of 10.6 %, is secured by certain assets of the Company, and matures on March 5, 2029. There was amortization of debt discount of $ 102,505 and $ 6,618 during the years ended December 31, 2023 and 2022, respectively. There were payments of $ 390,198 and $ 0 during the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, the note had a balance of $ 797,427 and $ 1,085,120 net an unamortized debt discount of $ 352,005 and $ 454,510 , respectively. On November 28, 2022, the Company entered into a secured promissory note in the principal amount of $ 1,560,090 for a purchase price of $ 1,092,910 . The note is secured by certain assets of the Company. The Company is required to make monthly payments in the amount of $ 10,630 through March 2023 and then monthly payments in the amount of $ 21,225 through March 2029. The note bears an interest rate of 10.6 %, is secured by certain assets of the Company, and matures on March 5, 2029. There was amortization of debt discount of $ 103,312 and $ 6,867 during the years ended December 31, 2023 and 2022. respectively. There were payments of $ 396,977 during the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, the note had a balance of $ 805,949 and $ 1,099,614 net an unamortized debt discount of $ 357,164 and $ 460,476 , respectively. F- 20 On November 28, 2022, the Company entered into a secured promissory note in the principal amount of $ 1,597,860 for a purchase price of $ 1,119,334 . The note is secured by certain assets of the Company. The Company is required to make monthly payments in the amount of $ 10,860 through March 2023 and then monthly payments in the amount of $ 21,740 through March 2029. The note bears an interest rate of 10.6 %, is secured by certain assets of the Company, and matures on March 5, 2029. There was amortization of debt discount of $ 107,589 and $ 6,867 during the years ended December 31, 2023 and 2022, respectively. There were payments of $ 406,295 and $ 0 during the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, the note had a balance of $ 827,495 and $ 1,126,201 net an unamortized debt discount of $ 364,069 and $ 471,659 , respectively. On December 15, 2022, the Company entered into a secured promissory note in the principal amount of $ 1,557,435 for a purchase price of $ 1,093,380 . The note is secured by certain assets of the Company. The Company is required to make monthly payments in the amount of $ 10,585 through March 2023 and then monthly payments in the amount of $ 21,190 through March 2029. The note bears an interest rate of 10.6 %, is secured by certain assets of the Company, and matures on March 15, 2029. There was amortization of debt discount of $ 107,434 and $ 3,254 during the year ended December 31, 2023 and 2022, respectively. There were payments of $ 396,167 and $ 0 during the year ended December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, the note had a balance of $ 807,900 and $ 1,096,634 net an unamortized debt discount of $ 353,367 and $ 460,801 , respectively. On January 10, 2023, the Company entered into a secured promissory note in the principal amount of $ 1,245,018 for a purchase price of $ 1,021,500 . The note is secured by certain assets of the Company. There were cash proceeds of $ 1,000,000 . The Company is required to make monthly payments in the amount of $ 10,365 through March 2023 and then monthly payments in the amount of $ 34,008 through March 2026. The note bears an interest rate of 10.6 %, is secured by certain assets of the Company, and matures on March 10, 2026. There was addition of debt discount of $ 223,518 and amortization of $ 80,564 during the year ended December 31, 2023. There were payments of $ 453,820 during the year ended December 31, 2023. As of December 31, 2023, the note had a balance of $ 648,244 net an unamortized debt discount of $ 142,954 . On January 12, 2023, the Company entered into a secured promissory note in the principal amount of $ 1,185,810 for a purchase price of $ 832,605 . The note is secured by certain assets of the Company. There were non-cash proceeds of $ 832,605 used to purchase equipment. The Company is required to make monthly payments in the amount of $ 8,030 through April 2023 and then monthly payments in the amount of $ 16,135 through April 2028. The note bears an interest rate of 10.6 %, is secured by certain assets of the Company, and matures on April 12, 2028. There was amortization of debt discount of $ 75,253 during year ended December 31, 2023. There were payments of $ 286,983 during the year ended December 31, 2023. As of December 31, 2023, the note had a balance of $ 620,876 net an unamortized debt discount of $ 277,951 . On February 23, 2023, the Company entered into a secured promissory note in the principal amount of $ 822,040 for a purchase price of $ 628,353 . The note is secured by certain assets of the Company. There were non-cash proceeds of $ 628,253 used to purchase equipment. The Company is required to make monthly payments in the amount of $ 6,370 through June 2023 and then monthly payments in the amount of $ 16,595 through June 2027. The note bears an interest rate of 10.6 %, is secured by certain assets of the Company, and matures on June 23, 2027. There was amortization of debt discount of $ 182,908 during year ended December 31, 2023. There were payments of $ 297,020 during the year ended December 31, 2023. As of December 31, 2023, the note had a balance of $ 514,241 net an unamortized debt discount of $ 10,779 . On February 24, 2023, the Company entered into a secured promissory note in the principal amount of $ 1,186,580 for a purchase price of $ 832,605 . The note is secured by certain assets of the Company. There were non-cash proceeds of $ 832,605 used to purchase equipment.The Company is required to make monthly payments in the amount of $ 9,185 through June 2023 and then monthly payments in the amount of $ 23,955 through June 2027. The note bears an interest rate of 10.6 %, is secured by certain assets of the Company, and matures on June 24, 2027. There were additional fees incurred of $ 21,380 during the year ended December 31, 2023. There were payments of $ 224,859 during the year ended December 31, 2023. As of December 31, 2023, the note had a balance of $ 660,761 net an unamortized debt discount of $ 300,960 . F- 21 On March 1, 2023, the Company entered into a secured promissory note in the principal amount of $ 635,000 . The note is secured by certain assets of the Company. There were non-cash proceeds of $ 635,000 used to purchase equipment. The Company is required to make a payment in the amount of $ 63,500 on March 15, 2023 and then commencing on April 15, 2023, monthly payments in the amount of $ 14,138 through March 2027. The note bears an interest rate of 8.5 %, is secured by certain assets of the Company, and matures on March 15, 2027. There were payments of $ 111,697 and $ 20,478 to principal and interest, respectively, during the year ended December 31, 2023. The Company assigned the remaining balance due under the note to DWM Properties, LLC, which is controlled by the Company’s Chief Executive Officer, in July 2023. As of December 31, 2023, the note had a balance of $ 0 and accrued interest of $ 0 . On April 12, 2023, the Company entered into a secured promissory note in the principal amount of $ 317,415 for a purchase price of $ 219,676 . The note is secured by certain assets of the Company. There were non-cash proceeds of $ 219,676 used to purchase equipment.The Company is required to make monthly payments in the amount of $ 2,245 through August 2023 and then monthly payments in the amount of $ 4,315 through July 2027. The note bears an interest rate of 10.6 %, is secured by certain assets of the Company, and matures on July 12, 2029. There were payments of $ 64,114 during the year ended December 31, 2023. There was amortization of debt discount of $ 28,101 during the year ended December 31, 2023, respectively. As of December 31, 2023, the note had a balance of $ 183,663 net an unamortized debt discount of $ 69,638 . On July 31, 2023, the Company entered into a secured promissory note with an entity controlled by the Company’s Chief Executive Officer in the principal amount of $ 17,218,350 . The note was for the purchase of certain equipment from an entity controlled by the Company’s Chief Executive Officer and is secured by such equipment. There were non-cash proceeds of $ 17,218,350 used to purchase equipment. The note is junior to the senior secured debt entered into by the Company on the same date. The note matures on July 31, 2043 and accrues interest at 7 % per annum. The note requires interest-only payments until the senior secured debt is fully satisfied. The Company made payments of $ 0 and $ 498,625 towards the principal and interest, respectively, during the year ended December 31, 2023. As of December 31, 2023, the note had a balance of $ 17,218,350 . The following table details the current and long-term principal due under non-convertible notes as of December 31, 2023. SCHEDULE OF CURRENT AND LONG TERM PRINCIPAL DUE UNDER NONCONVERTIBLE NOTE Principal (Current) Principal (Long Term) GM Financial (Issued April 11, 2022) $ 18,546 $ 22,063 Non-Convertible Note (Issued March 8, 2019) 5,000 - Deed of Trust Note (Issued September 1, 2022) 53,712 525,515 Deed of Trust Note (Issued September 1, 2022) 53,712 525,515 Equipment Finance Note (Issued April 21, 2022) 231,120 331,906 Equipment Finance Note (Issued September 14, 2022) 993,564 446,713 Equipment Finance Note (Issued November 28, 2022) 251,400 898,032 Equipment Finance Note (Issued November 28, 2022) 254,700 908,413 Equipment Finance Note (Issued November 28, 2022) 260,880 930,685 Equipment Finance Note (Issued December 15, 2022) 254,280 906,988 Equipment Finance Note (Issued January 10, 2023) 408,096 383,102 Equipment Finance Note (Issued January 12, 2023) 193,620 705,207 Equipment Finance Note (Issued February 23, 2023) 193,620 331,400 Equipment Finance Note (Issued February 24, 2023) 287,460 674,261 Equipment Finance Note (Issued April 12, 2023) 51,780 201,521 Related Party Promissory Note (Issued July 31, 2023) - 17,218,350 Simple Agreements for Future Tokens (Issued February 2018) - 85,000 Debt Discount ( 774,308 ) ( 1,739,461 ) Total Principal of Non-Convertible Notes $ 2,737,182 $ 23,355,210 F- 22 Total principal payments due on non-convertible notes 2024 through 2028 and thereafter is as follows: SCHEDULE OF PRINCIPAL PAYMENTS DUE ON NON-CONVERTIBLE NOTES Year ended December 31, 2024 $ 3,511,490 2025 3,258,100 2026 1,529,119 2027 809,342 2028 785,128 Thereafter 18,712,982 NOTE 9 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES As of December 31, 2023 and 2022, the Company owed accounts payable and accrued expenses of $ 6,100,449 and $ 5,035,330 , respectively. These are primarily comprised of payments to vendors, accrued interest on debt, and accrued legal bills. SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES December 31, 2023 December 31, 2022 Accounts Payable $ 1,884,973 $ 1,548,847 Credit Cards 1,756 206,669 Accrued Interest 2,074,016 1,708,965 Accrued Expenses 2,139,704 1,570,849 Total Accounts Payable and Accrued Expenses $ 6,100,449 $ 5,035,330 NOTE 10 – ACCRUED PAYROLL AND RELATED EXPENSES The Company is delinquent in filing its payroll taxes, primarily related to stock compensation awards in 2016 and 2017, but also including payroll for 2018, 2019, 2020, and 2021. As of December 31, 2023 and 2022, the Company owed payroll tax liabilities, including penalties, of $ 4,089,836 and $ 3,946,411 , respectively, to federal and state taxing authorities. The actual liability may be higher or lower due to interest or penalties assessed by federal and state taxing authorities. NOTE 11 – COMMITMENTS AND CONTINGENCES From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. Except as set forth below, we are currently not aware of any such legal proceedings or claims that will have, individually or in the aggregate, a material adverse effect on our business, financial condition or operating results. On December 1, 2020, Sheppard, Mullin, Richter & Hampton LLP (“Sheppard Mullin”), the Company’s former securities counsel, filed a demand for arbitration at JAMS in New York, New York against the Company, alleging the Company’s breach of an engagement agreement dated January 4, 2018, and a failure of the Company to pay $ 487,390.73 of outstanding legal fees to Sheppard Mullin. Sheppard Mullin was awarded $ 459,250.88 in unpaid legal fees, disbursements and interest on June 25, 2021. A judgement confirming the arbitration award was entered on September 8, 2021 in the Federal District Court located in Denver, Colorado. On September 23, 2021, the Company entered into a Resolution Agreement and Release (the “Resolution Agreement”) with Sheppard Mullin concerning the $ 459,250.88 judgement entered against the Company. Under the terms of the Resolution Agreement, the Company was required to make a $25,000 initial payment by September 30, 2021 and is required to make $15,000 monthly payments from October 2021 to January 2023 with a final $10,000 payment due in February 2023. The Company has made all of its required payments under the Resolution Agreement. F- 23 NOTE 12 – LEASES Property Leases (Operating Leases) The Company leases its facilities and certain automobiles under operating leases which expire on various dates through 2025. The Company determines if an arrangement is a lease at inception and whether it is a finance or operating leases. Right of Use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. When readily determinable, the Company uses the implicit rate in determining the present value of lease payments. The ROU asset also includes any fixed lease payments, including in-substance fixed lease payments and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease term is determined at lease commencement and includes any non-cancellable period for which the Company has the right to use the underlying asset, together with any options to extend that the Company is reasonably certain to exercise. Upon effectiveness of the acquisition of Empire on October 1, 2021, the Company assumed $ 3,492,531 in ROU assets and $ 3,650,358 in lease liabilities for the leasing of scrap metal yards from an entity controlled by the Company’s Chief Executive Officer. Under the terms of the leases, Empire was required to pay an aggregate of $ 145,821 per month from January to March 2022. On April 1, 2022, the Company entered into amendments to the leases for its Kelford and Carrolton yards, increasing the monthly rent payments by an aggregate of $ 50,000 per month for use of an automotive shredder and downstream processing system, respectively, being installed on those properties. The Company is required to pay $199,821 per month in rent for these facilities from April to December 2022 and increasing by 3% on January 1st of every year thereafter . On September 1, 2022, the Company terminated the lease for its Portsmouth yard on account of the Company purchasing the land underlying the lease, reducing the lease payment by $ 11,200 per month. The leases expire on January 1, 2024 and the Company has two options to extend the leases by 5 years per option. In the event the Company does not exercise the options, the leases will continue on a month-to-month basis. The Company cannot sublease any of the properties under the lease agreements. Upon effectiveness of the acquisition of Empire on October 1, 2021, the Company assumed $ 30,699 in ROU assets and $ 31,061 in lease liabilities for an office lease. Under the terms of the lease, Empire is required to pay $1,150 per month and increasing by 3% on April 1st of every year beginning on April 1, 2022 . The lease had an expiration date of March 31, 2024 and Empire was required to make a security deposit of $ 1,150 . The Company does not have an option to extend the lease. The Company cannot sublease the office under the lease agreements. The Company did not renew the lease. On October 11, 2021, Empire entered into leasing agreements with a company owned by the Chief Executive Officer of Empire for the leasing of the Company’s Virginia Beach metal recycling location. Under the terms of the leases, Empire is required to pay $9,677 for the prorated first month and $15,000 per month for the facilities beginning November 1, 2021 and increasing by 3% on January 1st of every year thereafter. The lease had an expiration date of January 1, 2024 and the Company has two options to extend the leases by 5 years per option. In the event the Company does not exercise the options, the leases will continue on a month-to-month basis. The Company cannot sublease any of the properties under the lease agreements. The Company terminated the lease on August 1, 2023. On January 24, 2022, the Company entered into leasing agreements for 3,521 square feet of office space commencing upon the completion of tenant improvements which was expected to be on April 1, 2022 but shall be no later than May 1, 2022 (“Commencement Date”). Under the terms of the leases, the Company is required to pay $ 3,668 for the first twelve months of the lease and increasing by approximately 3% every 12 months thereafter until the expiration of the lease. The lease is for a period of five years from the Commencement Date and the Company was required to make a security deposit of $ 3,668 . The Company does not have an option to extend the lease. The Company cannot sublease any of the office space under the lease agreement. Effective February 1, 2022, the Company entered into an office space/land lease agreement with an entity owned by the Chief Executive Officer of Greenwave for the leasing of the Company’s Fairmont metal scrap yard located at 406 Sandy Street, Fairmont, NC 28340. Under the terms of the lease, the Company is required to pay $ 8,000 per month for the facility beginning February 1, 2022 and increasing by 3% on January 1, 2023. The lease had an expiration of January 1, 2024 and the Company has two options to extend the lease by 5 years per option. The Company also has the option to extend the term of the lease for an additional year for the next 5 years upon the same terms and conditions. In the event the Company does not exercise the options, the lease will continue on a month-to-month basis. The Company cannot sublease the property under the lease agreement. The Company terminated the lease on August 1, 2023. F- 24 Effective October 13, 2022, the Company entered into an office space/land lease agreement for the leasing of 900 Broad Street, Suite C, Portsmouth, VA 23707. Under the terms of the lease, the Company is required to pay $ 4,300 per month for the facility beginning November 1, 2022 and increasing by 3% on January 1, 2023. The lease expires on December 31, 2027 and the Company has two options to extend the lease by 5 years per option. The Company also has the option to extend the term of the lease for an additional year for the next 5 years upon the same terms and conditions. In the event the Company does not exercise the options, the lease will continue a month-to-month basis. The Company cannot sublease the property under the lease agreement. Effective January 1, 2023, the Company entered into an office space/land lease agreement with an entity owned by the Chief Executive Officer of Greenwave for the leasing of the Company’s Chesapeake facility located at 101 Freeman Ave, Chesapeake, VA 23324. Under the terms of the lease, the Company is required to pay $ 9,000 per month for the facility beginning January 1, 2023 and increasing by 3% on January 1, 2024. The lease expires on January 1, 2025 and the Company has two options to extend the lease by 5 years per option. The Company also has the option to extend the term of the lease for an additional year for the next 5 years upon the same terms and conditions. In the event the Company does not exercise the options, the lease will continue on a month-to-month basis. The Company cannot sublease the property under the lease agreement. On July 31, 2023, the Company terminated the leases for 12 scrap yards . There was a gain on termination of lease of $ 108,863 during the year ended December 31, 2023. Since August 1, 2023, the Company has been renting the land underlying 13 scrap yards from an entity controlled by the Company’s Chief Executive Officer, including the lease for the Chesapeake location described above, for an aggregate rent of $ 54,970 per month. Automobile Leases (Operating Leases) Upon effectiveness of the acquisition of Empire on October 1, 2021, the Company assumed $ 26,804 in ROU assets and $ 18,661 in lease liabilities for an automobile lease. Under the terms of the lease, Empire is required to pay $ 750 per month until the lease expires on February 18, 2025 and the Company does not have an option to renew or extend. The Company is responsible for any damage to the automobile under the terms of the lease. Upon effectiveness of the acquisition of Empire on October 1, 2021, the Company assumed $ 34,261 in ROU assets and $ 27,757 in lease liabilities for an automobile lease. Under the terms of the lease, Empire is required to pay $ 650 per month until the lease expires on February 15, 2026 and the Company does not have an option to renew or extend . The Company is responsible for any damage to the automobile under the terms of the lease. On April 1, 2021, Empire entered into a lease agreement for the leasing of certain equipment. Under the terms of the lease, Empire is required to pay $ 2,700 per month thereafter for a period of 24 months. The lease expired on March 31, 2023 and the Company does not have an option to renew or extend. The Company is responsible to any damage to the equipment under the terms of the lease. On December 23, 2021, Empire entered into a lease agreement for the leasing of an automobile. Under the terms of the lease, Empire was required to pay $ 18,000 for the first month and $1,000 per month thereafter for 60 months. The lease expires on December 23, 2025 and the Company does not have an option to renew or extend. The Company is responsible to any damage to the automobile under the terms of the lease. On July 1, 2022, Empire entered into a lease agreement for the leasing of certain equipment. Under the terms of the lease, Empire was required to pay $2,930 per month thereafter for a period of 24 months. The lease expires on July 31, 2024 and the Company does not have an option to renew or extend. The Company is responsible to any damage to the equipment under the terms of the lease. F- 25 ROU assets and liabilities consist of the following: SCHEDULE OF ASSETS AND LIABILITIES December 31, 2023 December 31, 2022 ROU assets – related party $ 103,822 $ 2,419,338 ROU assets 198,558 590,608 Total ROU assets $ 302,380 $ 3,009,946 Current portion of lease liabilities – related party $ 111,240 $ 2,742,140 Current portion of lease liabilities 89,731 232,236 Long term lease liabilities, net of current portion 94,943 116,262 Total lease liabilities $ 295,914 $ 3,090,638 Aggregate minimum future commitments under non-cancelable operating leases and other obligations at December 31, 2023 were as follows: SCHEDULE OF NON CANCELABLE OPERATING LEASES AND OTHER OBLIGATIONS Year ended December 31, 2024 $ 200,971 2025 67,545 2026 50,476 2027 14,430 Total Minimum Lease Payments $ 333,422 Less: Imputed Interest $ ( 37,508 ) Present Value of Lease Payments $ 295,914 Less: Current Portion $ ( 200,971 ) Long Term Portion $ - 94,943 The Company leases its facilities, automobiles, and offices under operating leases which expire on various dates through 2024. Rent expense related to these leases is recognized based on the payment amount charged under the lease. Rent expense for the years ended December 31, 2023 and 2022 was $ 2,263,374 and $ 2,619,300 , respectively. At December 31, 2023, the leases had a weighted average remaining lease term of 3 years and a weighted average discount rate of 10 %. NOTE 13 – CONVERTIBLE NOTES PAYABLE On November 29, 2021, the Company entered into a securities purchase agreement with certain institutional investors (“Investors”). Pursuant to the securities purchase agreement, the Company sold, and the Investors purchased, approximately $ 37,714,966 , which consisted of approximately $ 27,585,450 in cash and $ 4,762,838 of existing debt of the Company which was exchanged for the notes and warrants issued in this offering principal amount of senior secured convertible notes and 2,514,331 warrants valued at $ 36,516,852 . The senior notes were issued with an original issue discount of 6 %, bear interest at the rate of 6 % per annum, and mature after 6 months, on May 30, 2022 . The senior notes are convertible into shares of the Company’s common stock, par value $ 0.001 per share at a conversion price per share of $ 15.00 , subject to adjustment under certain circumstances described in the senior notes. To secure its obligations thereunder and under the securities purchase agreement, the Company has granted a security interest over substantially all of its assets to the collateral agent for the benefit of the Investors, pursuant to a pledge and security agreement. Upon the listing of the common stock on a national exchange and certain other conditions being met, the senior notes issued in this offering will automatically convert into common stock at the conversion price set forth in the senior notes. The Company paid $ 2,200,000 and a warrant to purchase 200,000 shares of common stock valued at $ 2,904,697 as commission for the offering. The maturity date of the senior notes was extended by the Company on May 27, 2022 from May 30, 2022 to November 30, 2022, which was accounted for as a debt modification. The maturity date of the senior notes may be extended by the holders under other circumstances specified therein. If the Company is unable to extend the senior notes or elects not to do so, the Company will be required to repay the senior notes through equity issuances, additional borrowings, cash flows from operations and/or other sources of liquidity. The warrants are exercisable for five ( 5 ) years to purchase an aggregate of 2,514,331 shares of common stock at an exercise price per share of $ 19.50 , subject to adjustment under certain circumstances described in the warrants. F- 26 Upon the issuance of certain convertible notes, the Company determined that the features associated with the embedded conversion option embedded in the notes, should be accounted for at fair value, as a derivative liability, as the Company cannot determine if a sufficient number of shares would be available to settle all potential future conversion transactions. Upon the consummation of a 1:300 reverse split on February 17, 2022, the Company determined it had a sufficient number of authorized and unissued shares to cover all potential future conversion transactions and the derivative liabilities were eliminated. On July 22, 2022, simultaneously with the listing of the Company’s common stock on Nasdaq, the Company issued 6,896,903 shares of common stock for the conversion of its senior secured convertible notes in the principal amount of $ 37,714,966 together with accrued interest in the amount of $ 1,470,884 . The Company realized a gain on conversion of $ 2,625,378 . On September 12, 2022, in exchange for the waiver of liquidated damages in the amount of $ 2,726,022 due under the Registration Rights Agreement dated November 29, 2021, by and among the Company and certain of its convertible note and warrant holders party thereto, the Company reduced the exercise price of warrants to purchase 6,512,773 shares of common stock from $ 7.52 per share to $ 5.50 per share, in addition to issuing additional warrants to purchase 2,726,022 shares of common stock at $5.50 per share. The Company realized a deemed dividend of $ 462,556 as result of the repricing of certain warrants. The Company recorded an expense of $ 7,408,681 for the issuance of new warrants for the waiver of liquidated damages. On July 3, 2023, the Company closed a bridge financing in the principal amount of $ 1,031,250 for a purchase price of $ 825,000 with certain accredited investors. The bridge notes matured on July 31, 2023 and were personally guaranteed by the Company’s Chief Executive Officer. The bridge notes were exchanged into the senior secured offering which closed on July 31, 2023 and are retired. On July 31, 2023, the Company entered into a Purchase Agreement with certain institutional investors as purchasers whereby, the Company sold, and the investors purchased, approximately $ 15,000,000 , which consisted of approximately $ 13,188,750 in cash and $ 1,031,250 of existing debt of the Company which was exchanged for the notes and warrants issued in this offering in principal amount of senior secured convertible notes and warrants and $ 500,000 in notes issued as commission. The transaction closed on August 1, 2023. The Senior Notes were issued with an original issue discount of 16.67 %, do not bear interest, unless in the event of an event of default, in which case the notes bear interest at the rate of 18 % per annum until such default has been cured, and mature after 24 months, on July 31, 2025 . The aggregate principal amount of the notes is $ 18,000,000 . The Company will pay to the Investors an aggregate of $ 1,000,000 per month beginning on the last business day of the sixth (6th) full calendar month following the issuance thereof. The Senior Notes are convertible into shares of the Company’s common stock, par value $ 0.001 per share (“Common Stock”), at a conversion price per share of $ 1.50 , subject to adjustment under certain circumstances described in the Senior Notes. There is a 125 % conversion premium for any principal converted to shares of common stock. In occurrence of an event of default, until such event of default has been cured, the Holder may, at the Holder’s option, convert all, or any part of, the Conversion Amount (into shares of Common Stock at a conversion rate equal to the quotient of (x) the Redemption Premium of the Conversion Amount, divided by (y) the greater of (A) 90% of the lowest VWAP of the Common Stock for the three (3) Trading Days immediately preceding the delivery or deemed delivery of the applicable Conversion Notice, and (B) the lesser of (1) 80% of the VWAP of the Common Stock as of the Trading Day immediately preceding the delivery or deemed delivery of the applicable Conversion Notice, and (2) 80% of the price computed as the quotient of (x) the sum of the VWAPs of the Common Stock for each of the three (3) Trading Days with the lowest VWAP of the Common Stock during the fifteen (15) consecutive Trading Day period ending and including the Trading Day immediately preceding the delivery or deemed delivery of the applicable Conversion Notice, divided by (y) three (3) and (II) the floor price of $0.196 . To secure its obligations thereunder and under the Purchase Agreement, the Company has granted a security interest over substantially all of its assets to the collateral agent for the benefit of the Investors, pursuant to a security agreement and a related trademark security agreement. The Company has the option to redeem the Senior Notes at a 10 % redemption premium. There is a 125 % change in control redemption premium. The maturity date of the Senior Notes also may be extended by the holders under circumstances specified therein. Danny Meeks, the Company’s Chief Executive Officer, and the Company’s subsidiaries each guaranteed the Company’s obligations under the Senior Notes. In the event of default, the Company shall immediately pay to the Holder an amount in cash representing (i) all outstanding Principal and accrued and unpaid late charges on such principal, multiplied by (ii) the Redemption Premium, in addition to any and all other amounts due hereunder, without the requirement for any notice or demand or other action by the holder or any other person or entity, provided that the Holder may, in its sole discretion, waive such right to receive payment upon a bankruptcy event of default. The Warrants are exercisable for five years to purchase an aggregate of 4,420,460 shares of Common Stock at an exercise price of $ 0.01 , subject to adjustment under certain circumstances described in the Warrants. There were an additional 866,441 warrants issued at an exercise price of $ 1.50 per share for a period of five years as commission for the offering, the Company credited additional paid in capital $ 3,279,570 and $ 753,567 for a debt discount for the fair value of warrants issued in its senior secured debt offering and the warrants issued as commission for its senior secured debt offering, respectively. Further, there was a $ 3,850,000 debt discount created for the offering costs and original issuance discount on the Senior Notes. F- 27 The Company estimated the fair value of the warrants using the Black-Scholes Pricing Model based on the following assumptions: (1) dividend yield of 0 %, (2) expected volatility of 148.60 % to 149.08 %, (3) risk-free interest rate of 4.18 % - 4.70 %, and (4) expected life of 5.01 years. On August 21, 2023, as a result of the Company’s registered direct offering, the conversion price of the Senior Notes was reduced from $ 1.50 to $ 1.02 per share. The Company credited additional paid in capital $ 5,022,200 for a deemed dividend for the triggering of certain price protection provisions in its senior secured debt. During the nine months ended September 30, 2023, the Company credited additional paid in capital $ 5,022,200 for a deemed dividend for the triggering of certain price protection provisions in its senior secured debt. The Company estimated the fair value of the deemed dividend using the Black-Scholes Pricing Model based on the following assumptions: (1) dividend yield of 0 %, (2) expected volatility of 148.60 %, (3) risk-free interest rate of 4.70 %, and (4) expected life of 2.95 years. During the year ended December 31, 2023, there was amortization of debt discount of $ 2,219,221 . As of December 31, 2023, the carrying value of the convertible notes was $ 12,098,241 , net of unamortized debt discount of $ 5,901,759 . As of December 31, 2023, the current and non-current portions of the note are $ 8,065,494 and $ 4,032,747 , net unamortized debt discounts of $ 3,394,506 and $ 1,967,253 , respectively. The maturity date of the convertible notes outstanding at December 31, 2023 is: SCHEDULE OF MATURITY DATES OF CONVERTIBLE NOTES Maturity Date Principal Balance Due 2024 $ 12,000,000 2025 $ 6,000,000 Total Principal Outstanding $ 18,000,000 NOTE 14 – DERIVATIVE LIABILITIES AND FAIR VALUE MEASUREMENTS As of December 31, 2021 the Company did not have sufficient authorized but unissued shares to satisfy the conversion or exercise of its convertible notes, warrants, preferred shares, and options. As such, the Company recorded a derivative liability for these instruments. Upon the consummation of a 1:300 reverse stock split on February 17, 2022, the Company rectified this authorized share shortfall and reclassified the carrying value of its derivative liabilities as of that date to additional paid in capital. During the year ended December 31, 2021, upon issuance of convertible debt and warrants, the Company estimated the fair value of the embedded derivatives using the Black-Scholes Pricing Model based on the following assumptions: (1) dividend yield of 0 %, (2) expected volatility of 110.59 % to 138.73 %, (3) risk-free interest rate of 0.07 % to 1.14 %, and (4) expected life of 0.50 to 5.0 years. F- 28 On December 31, 2021, the Company estimated the fair value of the embedded derivatives of $ 44,024,242 using the Black-Scholes Pricing Model based on the following assumptions: (1) dividend yield of 0 %, (2) expected volatility of 136.12 %, (3) risk-free interest rate of 0.19 % to 1.15 %, and (4) expected life of 0.41 to 5.0 years. On February 17, 2022, the Company estimated the fair value of the embedded derivatives of $ 29,759,766 using the Black-Scholes Pricing Model based on the following assumptions: (1) dividend yield of 0 %, (2) expected volatility of 155.45 %, (3) risk-free interest rate of 0.06 % to 1.85 %, and (4) expected life of 0.28 to 4.79 years. The Company adopted the provisions of ASC 825-10. ASC 825-10 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of non-performance. ASC 825-10 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 825-10 establishes three levels of inputs that may be used to measure fair value: ● Level 1 – Quoted prices in active markets for identical assets or liabilities. ● Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 – Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. All items required to be recorded or measured on a recurring basis are based upon Level 3 inputs. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed and is determined based on the lowest level input that is significant to the fair value measurement. The Company recognizes its derivative liabilities as Level 3 and values its derivatives using the methods discussed below. While the Company believes that its valuation methods are appropriate and consistent with other market participants, it recognizes that the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The primary assumptions that would significantly affect the fair values using the methods discussed are that of volatility and market price of the underlying common stock of the Company. As of December 31, 2023, the Company did not have any derivative instruments that were designated as hedges. Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of December 31, 2023 and 2022: SCHEDULE OF FAIR VALUE ON A RECURRING BASIS IN THE ACCOMPANYING FINANCIAL STATEMENTS December 31, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative liability $ - $ - $ - $ - December 31, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative liability $ - $ - $ - $ - F- 29 The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities for the two years ended December 31, 2023: SCHEDULE OF CHANGES IN FAIR VALUE OF THE COMPANY’S LEVEL 3 FINANCIAL LIABILITIES Balance, December 31, 2021 $ 44,024,242 Transfers out due to elimination of authorized share shortfall (reclassified to additional paid in capital) ( 29,759,766 ) Mark to market to February 17, 2022 ( 14,264,476 ) Mark to market to December 31, 2022 - Balance, December 31, 2022 $ - Mark to market to December 31, 2023 - Balance, December 31, 2023 $ - Gain on change in derivative liabilities for the year ended December 31, 2023 $ - Fluctuations in the Company’s stock price are a primary driver for the changes in the derivative valuations during each reporting period. As the stock price increases/(decreases) for each of the related derivative instruments, the value to the holder of the instrument generally increases/(decreases), therefore increasing/(decreasing) the liability on the Company’s balance sheet. Decreases in the conversion price of the Company’s convertible notes are another driver for the changes in the derivative valuations during each reporting period. As the conversion price decreases for each of the related derivative instruments, the value to the holder of the instrument (especially those with full ratchet price protection) generally increases, therefore increasing the liability on the Company’s balance sheet. Additionally, stock price volatility is one of the significant unobservable inputs used in the fair value measurement of each of the Company’s derivative instruments. The simulated fair value of these liabilities is sensitive to changes in the Company’s expected volatility. Increases in expected volatility would generally result in higher fair value measurements. A 10% change in pricing inputs and changes in volatilities and correlation factors would not result in a material change in our Level 3 fair value. NOTE 15 – STOCKHOLDERS’ EQUITY Preferred Stock The Company is authorized to issue 10,000,000 shares of blank check preferred stock, par value $ 0.001 per share. Series Z On September 30, 2021, the Company authorized the issuance of 500 shares of Series Z Preferred Stock, par value $ 0.001 per share. The Series Z Preferred Stock has a $ 20,000 stated value per share and all 500 Series Z preferred shares, in aggregate, are convertible into 19.98 % of the issued and outstanding common shares of the Company (post conversion). The conversion rate is applicable on a pro rata basis to each share of Series Z Preferred Stock upon conversion. This anti-dilutive conversion feature is in effect until such time an S-1 Registration Statement is declared effective by the SEC in conjunction with a NASDAQ listing. F- 30 On September 30, 2021, the Company entered into a Series Z Preferred Stock Issuance Agreement with the Company’s Chief Executive Officer whereby the Company entered into a non–convertible note payable agreement for $ 1,000,000 in exchange for: (i) a $ 1,000,000 cash payment directly paid to the warrant holder; and (ii) the issuance of 250 Series Z Preferred Shares having a fair value of $ 6,530,867 . The note bears interest of 8 % per annum and is due within three days of the Company’s next closing of equity financing of $ 3,000,000 or more. The proceeds received were allocated to the debt and equity on a relative fair value basis. Accordingly, debt discount of $ 867,213 was recognized with a corresponding increase in additional paid-in capital. Since the due date is contingent upon a future event, the entire debt discount was amortized to interest expense immediately. On September 30, 2021, an investor owning warrants to purchase 520,834 common shares at $ 0.12 per share entered into an agreement to cancel the aforementioned warrants in exchange for: (i) a cash payment of $ 1,000,000 received directly from the Chief Executive Officer; and (ii) 250 Series Z Preferred Shares having a fair value of $ 6,530,867 . The settlement resulted in a reduction in the derivative liability of $ 5,750,067 , an increase in non-convertible notes payable of $ 1,000,000 , an increase in additional paid-in capital of $ 6,530,867 and a loss on settlement of debt of $ 1,780,800 . The Series Z Preferred Shares are not convertible into shares of common stock until there is sufficient authorized but unissued shares of common stock to satisfy the conversions, thus a derivative liability was not recorded for the shares of common stock underlying the Series Z Preferred Shares. On September 9, 2022, 117 shares of Series Z Preferred Stock were converted into 475,000 shares of common stock. On November 16, 2022, 61 shares of Series Z Preferred Stock were converted into 250,000 shares of common stock. On January 23, 2023, 72 shares of Series Z Preferred Stock were converted into 288,494 shares of common stock. On July 28, 2023, the Company issued 1,013,500 shares of common stock to the Company’s Chief Executive Officer for the exchange of 250 shares of Series Z preferred stock. On August 1, 2023, the Company filed a Certificate of Elimination to retire the class of Series Z preferred stock. As of December 31, 2023 and 2022, there were 0 and 322 shares of Series Z Preferred Stock issued and outstanding. Common Stock The Company is authorized to issue 1,200,000,000 shares of common stock, par value $ 0.001 per share. During the year ended December 31, 2022, the Company issued 8,500 shares of the Company’s common stock previously recorded as to be issued as of December 31, 2021. During the year ended December 31, 2022, the Company issued 6,896,903 shares of the Company’s common stock for the conversion of convertible debt in the principal amount of $ 37,714,966 , together with accrued interest in the amount of $ 1,470,884 . The Company recorded $ 2,625,378 gain on conversion and credited $ 36,553,575 to additional paid in capital for this conversion. During the year ended December 31, 2022, the Company issued 725,000 shares of common stock for the conversion of 178 shares of Series Z Preferred Stock. The Company credited additional paid in capital $ 725 for the par value of the common shares issued in this conversion. During the year ended December 31, 2023, the Company issued 1,301,994 shares of common stock for the conversion and exchange of 322 shares of Series Z Preferred Stock. F- 31 During the year ended December 31, 2023, the Company issued 275,929 shares of common stock with a fair market value of $ 254,448 for services rendered and to be rendered under the Company’s employee stock option plan. During the year ended December 31, 2023, the Company issued 1,551,428 shares of common stock for the exercise of warrants for cash proceeds of $ 15,511 . During the year ended December 31, 2023, the Company issued 361,487 shares of common stock for the cashless exercise of 367,079 warrants. During the year ended December 31, 2023, the Company issued 2,511,166 shares of common stock for the sale of common stock for proceeds of $ 2,841,181 , net offering costs of $ 348,000 . As of December 31, 2023 and 2022, there were 16,964,336 and 10,962,319 shares, respectively, of common stock issued and outstanding. Additional Paid in Capital During the year ended December 31, 2022, the Company credited additional paid in capital $ 21,115,910 for a deemed dividend for the trigger of certain price protection provisions in certain warrants upon uplisting to Nasdaq and issuance of additional warrants upon uplisting. See Note 16 – Warrants . During the year ended December 31, 2022, the Company credited additional paid in capital $ 7,237,572 for a deemed dividend for the trigger of certain price protection provisions in its Series Z Preferred Stock upon uplisting to Nasdaq. During the year ended December 31, 2022, the Company credited additional paid in capital $ 7,408,681 for the fair value of warrants issued for the waiver of certain liquidated damages. See Note 16 – Warrants . During the year ended December 31, 2022, the Company credited additional paid in capital $ 462,556 for a deemed dividend for the voluntary repricing of certain warrants for the waiver of certain liquidated damages. See Note 16 – Warrants . During the year ended December 31, 2023, the Company credited additional paid in capital $ 3,279,570 for a debt discount for the fair value of warrants issued in its senior secured debt offering. The Company estimated the fair value of the warrants using the Black-Scholes Pricing Model based on the following assumptions: (1) dividend yield of 0 %, (2) expected volatility of 149.08 %, (3) risk-free interest rate of 4.18 %, and (4) expected life of 5.01 years. During the year ended December 31, 2023, the Company credited additional paid in capital $ 753,567 for a debt discount for the fair value of warrants issued as commission for its senior secured debt offering. The Company estimated the fair value of the warrants using the Black-Scholes Pricing Model based on the following assumptions: (1) dividend yield of 0 %, (2) expected volatility of 149.08 %, (3) risk-free interest rate of 4.70 %, and (4) expected life of 5.01 years. During the year ended December 31, 2023, the Company credited additional paid in capital $ 5,022,200 for a deemed dividend for the triggering of certain price protection provisions in its senior secured debt. The Company estimated the fair value of the deemed dividend using the Black-Scholes Pricing Model based on the following assumptions: (1) dividend yield of 0 %, (2) expected volatility of 150.05 %, (3) risk-free interest rate of 4.70 %, and (4) expected life of 2.95 years. During the year ended December 31, 2023, the Company credited additional paid in capital $ 1,638,952 for a deemed dividend for the reduction in the exercise price of certain warrants. The Company estimated the fair value of the warrants using the Black-Scholes Pricing Model based on the following assumptions: (1) dividend yield of 0 %, (2) expected volatility of 148.60 % to 149.08 %, (3) risk-free interest rate of 4.18 % to 4.70 % to 1.15 %, and (4) expected life of 3.34 to 5.01 years. F- 32 NOTE 16 – WARRANTS On July 22, 2022, simultaneously with the listing of the Company’s common stock on Nasdaq, the price protection provision in certain warrants were triggered, resulting in the purchase price per share of warrants to purchase 2,714,351 shares of common stock being reduced from $ 19.50 per share to $ 7.52 per share, in addition to the issuance of additional warrants to purchase 4,316,474 shares of common stock at $ 7.52 per share. The Company realized a deemed dividend of $ 21,115,910 as result of the repricing of certain warrants and the issuance of additional warrants. The price protection provision in the warrants expired as a result of the Nasdaq listing. On September 12, 2022, in exchange for the waiver of certain liquidated damages due under the Registration Rights Agreement dated November 29, 2022, by and among the Company and certain of its convertible note and warrant holders party thereto, the Company reduced the exercise price of warrants to purchase 6,572,773 shares of common stock from $ 7.52 per share to $ 5.50 per share, in addition to issuing additional warrants to purchase 2,726,022 shares of common stock at $ 5.50 per share. The Company realized a deemed dividend of $ 462,556 as result of the repricing of certain warrants and a warrant expense for liquidated damages waiver for $ 7,408,681 for the issuance of new warrants. On July 31, 2023, the Company entered into a letter agreement with the holders of common stock purchase warrants to purchase an aggregate of 9,756,876 shares of Common Stock (the “2021 and 2022 Warrants”) issued to the Holders pursuant to that certain Securities Purchase Agreement, dated as of November 29, 2021, by and among the Company and the Holders, and issued to the Holders pursuant to that certain Waiver Agreement, dated as of September 13, 2022, pursuant to which the Company agreed, subject to receipt of approval from the Company’s stockholders, to reduce the exercise price of the 2021 and 2022 Warrants from $ 7.52 and $ 5.50 per share to $ 1.50 per share, subject to adjustment as set forth in the Warrant Repricing Agreement. Holders of a majority of the shares of common stock approved the repricing on October 13, 2023. The Company recorded a deemed divided of $ 1,307,574 for the reduction in the exercise price of the 2021 and 2022 Warrants. On July 31, 2023, the Company realized a debt discount of $ 3,279,570 for the fair value of warrants issued in its senior secured debt offering. During the year ended December 31, 2023, the Company credited additional paid in capital $ 753,567 for a debt discount for the fair value of warrants issued as commission for its senior secured debt offering. On August 21, 2023, upon the closing of a registered direct offering, the exercise price of the 2021 and 2022 Warrants and warrants issued as commission for the Company’s July 2023 senior secured debt offering was reduced to $ 1.02 , subject to receipt of approval from the Company’s stockholders. Holders of a majority of the shares of common stock approved the repricing on October 13, 2023. The Company realized a deemed divided of $ 331,018 for the reduction in the exercise price of the 2021 and 2022 Warrants as well as the July 2023 Commission Warrants. A summary of the warrant activity for the years ended December 31, 2023 and 2022 is as follows: SCHEDULE OF WARRANT ACTIVITY Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2021 2,752,941 $ 19.77 4.86 $ 11,650 Granted 7,042,525 $ 5.50 Exercised - - Expired/Canceled/Exchanged ( 37,756 ) $ 40.00 Outstanding at December 31, 2022 9,757,710 $ 5.61 4.14 $ 635 Granted 10,811,43 3 $ 0.62 Exercised ( 1,918,507 ) $ 0.01 Expired/Canceled/Exchanged ( 834 ) $ 0.12 Outstanding at December 31, 2023 18,649,802 $ 0.89 3.99 $ 1,388,582 Exercisable at December 31, 2023 18,649,802 $ 0.89 3.99 $ 1,388,582 F- 33 SCHEDULE OF WARRANT EXERCISABLE Exercise Price Warrants Outstanding Weighted Avg. Remaining Life Warrants Exercisable $ 0.01 2,501,950 4.59 2,501,950 1.02 15,645,619 3.87 15,645,619 1.28 502,233 4.64 502,233 18,649,802 3.99 18,649,802 The aggregate intrinsic value of outstanding stock warrants was $ 1,388,582 , based on warrants with an exercise price less than the Company’s stock price of $ 0.57 as of December 31, 2023 which would have been received by the warrant holders had those holders exercised the warrants as of that date. NOTE 17 – STOCK OPTIONS Our stockholders approved our 2014 Equity Incentive Plan in June 2014 (the “2014 Plan”), our 2015 Equity Incentive Plan in December 2015 (the “2015 Plan”), our 2016 Equity Incentive Plan in October 2016 (“2016 Plan”), our 2017 Equity Incentive Plan in December 2016 (“2017 Plan”), our 2018 Equity Incentive Plan in June 2018 (the “2018 Plan”), our 2021 Equity Incentive Plan in September 2021 (“2021 Plan”), our 2022 Equity Incentive Plan in November 2022, and our 2023 Equity Incentive Plan in October 2023 (“2023 Plan”, and together with the 2014 Plan, 2015 Plan, 2016 Plan, 2017 Plan, 2018 Plan, 2021 Plan, and 2022 Plan, the “Plans”). The Plans are identical, except for the number of shares reserved for issuance under each. As of December 31, 2023, the Company had granted an aggregate of 490,296 securities under the Plans since inception, with 891,371 shares available for future issuances. The Plans provide for the grant of incentive stock options to our employees and our subsidiaries’ employees, and for the grant of stock options, stock bonus awards, restricted stock awards, performance stock awards and other forms of stock compensation to our employees, including officers, consultants and directors. The Plans also provide that the grant of performance stock awards may be paid out in cash as determined by the committee administering the Plans. Option valuation models require the input of highly subjective assumptions. The fair value of stock-based payment awards was estimated using the Black-Scholes option pricing model with a volatility figure derived from historical data. The Company accounts for the expected life of options based on the contractual life of the options. There were no options issued during the years ended December 31, 2023 and 2022. A summary of the stock option activity for the years ended December 31, 2023 and 2022 is as follows: SCHEDULE OF STOCK OPTION ACTIVITY Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2021 92,166 $ 148.11 5.49 $ - Granted - Exercised - Forfeiture/Cancelled - Outstanding at December 31, 2022 92,166 $ 148.11 4.49 $ - Granted - Exercised - Forfeiture/Cancelled - Outstanding at December 31, 2023 92,166 $ 148.11 3.49 $ - Exercisable at December 31, 2023 92,166 $ 148.11 3.49 $ - F- 34 SCHEDULE OF STOCK OUTSTANDING AND EXERCISABLE Exercise Price Number of Options Remaining Life In Years Number of Options Exercisable $ 23.00 - 75.00 44,368 4.26 44,368 75.01 - 150.00 6,476 3.26 6,476 150.01 - 225.00 6,079 2.68 6,079 225.01 - 300.00 33,133 2.70 33,133 300.01 - 600.00 2,110 2.60 2,110 92,166 92,166 The aggregate intrinsic value of outstanding stock options was $ 0 , based on options with an exercise price greater than the Company’s stock price of $ 0.57 as of December 31, 2023, which would have been received by the option holders had those option holders exercised their options as of that date. The fair value of all options that were vested as of the year ended December 31, 2023 and 2022 was $ 0 and $ 0 , respectively. Unrecognized compensation expense of $ 0 as of December 31, 2023 will be expensed in future periods NOTE 18 – INCOME TAXES The Tax Cuts and Jobs Acts (the “Act”) was enacted on December 22, 2017. The Act reduces the U.S. federal corporate income tax rate from 35 % to 21 %. ASC 740, “Income Taxes,” requires that effects of changes in tax rates to be recognized in the period enacted. Recognizing the late enactment of the Act and complexity of accurately accounting for its impact, the Securities and Exchange Commission in Staff Accounting Bulletin 118 provides guidance that allows registrants to provide a reasonable estimate of the Act in their financial statements and adjust the reported impact in a measurement period not to exceed one year. At December 31, 2023, the Company has available for income tax purposes of approximately $ 47,264,135 and $ 34,856,380 in federal net operating loss (NOL) carry forward which begin expiring in the year 2033 and with no expiration, respectively, that may be used to offset future taxable income. Further, the Company has available for income tax purposes of approximately $ 61,608,152 and $ 20,512,363 in Colorado and Virginia, respectively, state net operating loss (NOL) carry forward which begin expiring in the year 2033, that may be used to offset future taxable income. The Company has provided a valuation reserve against the full amount of the net operating loss benefit, since in the opinion of management based upon the earnings history of the Company; it is more likely than not that the benefits will not be realized. Due to possible significant changes in the Company’s ownership, the future use of its existing net operating losses may be limited. All or portion of the remaining valuation allowance may be reduced in future years based on an assessment of earnings sufficient to fully utilize these potential tax benefits. During the year ended December 31, 2023, the Company has decreased the valuation allowance from $ 32,743,435 to $ 24,097,749 . The Company has adopted the provisions of ASC 740-10-25, which provides recognition criteria and a related measurement model for uncertain tax positions taken or expected to be taken in income tax returns. ASC 740-10-25 requires that a position taken or expected to be taken in a tax return be recognized in the financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. Tax position that meet the more likely than not threshold are then measured using a probability weighted approach recognizing the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company had no tax positions relating to open income tax returns that were considered to be uncertain. Sections 382 and 383 of the Internal Revenue Code of 1986, as amended (the “Code”), provide for annual limitations on the utilization of net operating loss and credit carryforwards if the Company were to undergo an ownership change, as defined in Section 382 of the Code. In general, an ownership change occurs whenever the percentage of the shares of a corporation owned, directly or indirectly, by 5-percent shareholders, as defined in Section 382 of the Code, increases by more than 50 percentage points over the lowest percentage of the shares of such corporation owned, directly or indirectly, by such 5-percent shareholders at any time over the preceding three years. In the event such ownership change occurs, the annual limitation may result in the expiration of the net operating losses prior to full utilization. F- 35 The Company is required to file income tax returns in the U.S. Federal jurisdiction and the state of Virginia. The Company is no longer subject to income tax examinations by tax authorities for tax years ending before December 31, 2015. The Company’s deferred taxes as of December 31, 2023 and 2022 consist of the following: SCHEDULE OF DEFERRED TAX ASSETS 2023 2022 Deferred Tax Assets/(Liability) Detail Stock Compensation $ - $ 52,313 Amortization - 156,072 Depreciation 3,556,478 1,180 Interest - 1,213,854 Change in Fair Market Value of Derivative Liabilities - 14,264,476 Accrued bonus 67,500 - NOL Deferred Tax Asset 20,473,771 17,055,540 Valuation allowance ( 24,097,749 ) ( 32,743,435 ) Total gross deferred tax assets - - The Company follows ASC 740-10 for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability during each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. SCHEDULE OF EFFECTIVE RECONCILIATION INCOME TAX NOTE 19 – RELATED PARTY TRANSACTIONS Agreements with Danny Meeks and Affiliates of Danny Meeks From January 1 to August 31, 2022, the Company leased 13 scrap yard facilities by an entity controlled by the Company’s Chief Executive Officer. On April 1, 2022, the Company entered into amendments to the leases for its Kelford and Carrolton yards, increasing the monthly rent payments by an aggregate of $ 50,000 per month for use of an automotive shredder and downstream processing system, respectively, being installed on those properties, increasing by 3% on January 1st of every year for the duration of the leases . On September 1, 2022, the Company terminated the lease for its Portsmouth yard on account of the Company purchasing the land underlying the lease, reducing the lease payment by $ 11,200 per month. During the year ended December 31, 2022, the Company paid rents of $ 2,483,217 to an entity controlled by the Company’s Chief Executive Officer. Additionally, during the year ended December 31, 2022, the Company paid $ 122,866 in accrued rents owed to an entity controlled by the Company’s Chief Executive Officer at December 31, 2021. As of December 31, 2022, the Company owed $ 317,781 in accrued rent to an entity controlled by the Company’s Chief Executive Officer. F- 36 During the year ended December 31, 2022, the Company purchased equipment for $ 152,500 from an entity controlled by the spouse of the Chief Executive Officer. During the year ended December 31, 2022, the Company purchased equipment for $ 20,000 from an entity controlled by the Chief Executive Officer. On January 1, 2023, the Company entered into a lease agreement for the Company’s Chesapeake location with an entity controlled by the Company’s Chief Executive Officer. Under the terms of the lease agreement, the Company pays $ 9,000 per month in rent, increasing 3 % on January 1 st of each year. The lease expires on January 1, 2025 and the Company has two options to extend the lease by a term of five years per option. From January 1 to July 31, 2023, the Company leased 13 scrap yard facilities and equipment from an entity controlled by the Company’s Chief Executive Officer, including the lease for the Chesapeake location described above. During the year ended December 31, 2023, the Company had a rent expense of $ 1,640,912 , to an entity controlled by the Company’s Chief Executive Officer. Further, during the year ended December 31, 2023, an entity controlled by the Company’s Chief Executive Officer made an insurance down payment of $ 105,000 and debt payments of $ 189,615 on behalf of the Company. As of December 31, 2023 and December 31, 2022, the Company owed $ 2,070,402 and $ 317,781 , respectively, in accrued rent and reimbursements to an entity controlled by the Company’s Chief Executive Officer. Since August 1, 2023, the Company has been renting the land underlying 13 scrap yards from an entity controlled by the Company’s Chief Executive Officer, including the lease for the Chesapeake location described above, for an aggregate rent of $ 54,970 per month. On July 28, 2023, the Company issued 1,013,500 shares of common stock to the Company’s Chief Executive Officer for the exchange of 250 shares of Series Z preferred stock. On July 31, 2023, the Company entered into a Bill of Sale (the “Bill of Sale”) with DWM Properties LLC (“DWM”), an entity wholly-owned by Danny Meeks, the Company’s Chief Executive Officer, pursuant to which the Company agreed to purchase certain assets held by DWM in exchange for the issuance of a secured promissory note to DWM (the “DWM Note”) in an aggregate principal amount equal to $ 17,218,350 . The assets included two automotive shredders and a downstream processing system with a cost basis of $ 7,367,500 and a fair value of $ 17,218,350 . The Company has recorded the equipment on its financial statements at its cost basis and recognized a $ 9,850,850 loss on asset during the year ended December 31, 2023. The equipment was purchased in 2022. The transaction was negotiated at arms-length. The DWM Note bears interest at a rate of 7 % per annum and matures on the twentieth (20 th ) anniversary of the issuance thereof. Interest on the DWM Note is payable on the first business day of each calendar month, provided that commencing on the first business day of the calendar month following the date on which no Senior Notes remain outstanding, the Company shall pay to DWM equal payments of interest and principal until the DWM Note is repaid in its entirety. The Company made payments of $ 0 and $ 498,625 towards the principal and interest, respectively, during the year ended December 31, 2023. As of December 31, 2023, the note had a balance of $ 17,218,350 . On July 31, 2023, the Company assigned the remaining balance of $ 523,303 of a secured promissory note to DWM Properties, LLC, which is controlled by the Company’s Chief Executive Officer. During the year ended December 31, 2023, the Company provided $ 68,485 in hauling services to an entity controlled by the Company’s Chief Executive Officer, for which the Company received payment in full. During the year ended December 31, 2023, the Company paid an entity controlled by the Company’s Chief Executive Officer $ 409,556 for hauling services rendered to the Company. During the year ended December 31, 2023, the Company paid an entity controlled by the Company’s Chief Executive Officer $ 29,635 for materials sold to the Company. F- 37 NOTE 20 – SUBSEQUENT EVENTS From January 1 to March 20, 2024, the Company issued 10,864,690 shares for the conversion of convertible debt in the principal amount of $ 2,066,740 . From January 1 to March 17, 2024, the Company issued 2,258,088 shares for the exercise of warrants for proceeds of $ 22,581 . On March 18, 2024, the Company extended warrant exercise inducement offer letters (the “Inducement Letters”) to the holders (the “Holders”) of its existing warrants to purchase shares of the Company’s common stock (the “Existing Warrants”), pursuant to which the Holders can exercise for cash their Existing Warrants to purchase an aggregate of up to 16,147,852 shares of the Company’s common stock, in the aggregate, at an exercise price of $ 0.204 per share, in exchange for the Company’s agreement to issue new warrants (the “Inducement Warrants”) on the terms described below, to purchase up to 32,295,704 shares of the Company’s common stock (the “Inducement Warrant Shares”). If Holders exercise all their Existing Warrants for cash, the Company would receive aggregate gross proceeds of approximately $ 3,294,161 . Holders of Existing Warrants must return the Inducement Letter along with exercising all or part of the Existing Warrants on or before 5:00 p.m. Eastern Time on March 26, 2024 (the “Final Closing Date”) to receive the Inducement Warrants. From March 18 to March 26, 2024, the Company issued 13,978,361 shares with an additional 40,758 shares to be issued for the exercise of warrants for proceeds of $ 2,809,568 . The Company issued 27,544,788 Inducement Warrants to the existing warrant holders who exercised during the inducement period. On March 29, 2024, the Company entered into an exchange agreement with DWM Properties LLC (the “Holder”), whereby the Company and Holder agreed to exchange $ 10,000,000 of that certain Secured Promissory Note, dated July 31, 2023, issued by the Company to the Holder for 1,000 shares of the Company’s newly created Series D Convertible Preferred Stock (the “Preferred Stock”). The Preferred Stock is convertible into the Company’s common stock at $ 0.204 per share, subject to adjustment as set forth therein, except the Preferred Stock is not convertible until such time as the currently outstanding senior secured indebtedness of the Company has been satisfied in full. In addition, the Company has the right to redeem the Preferred Stock in cash or shares of its Common Stock. The Preferred Stock has a stated value of $ 10,000 per share, has no voting rights, and does not bear dividends. On March 15, 2024, the Company entered into leasing agreements for a scrap yard located at 3030 E 55th Street, Cleveland, OH 44127. Under the terms of the lease, the Company is required to pay $17,000 from March 1, 2024 to February 28, 2025; $23,000 from March 1, 2025 to February 28, 2026; $23,000 from March 1, 2026 to February 28, 2027; $23,000 from March 1, 2027 to February 28, 2028; and increasing by the greater of 3% and the CPI every 12 months thereafter until the expiration of the lease. The lease is for a period of five years, include two options to extend for five years each, and the Company was required to make a security deposit of $ 17,000 . The Company has the option to purchase the property for $ 3,277,000 until February 28, 2024. F- 38