Greenwave Technology Solutions, Inc. 10-K

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, 2024 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. 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. 30 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, 2024. 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, 2024, based on the criteria established in “Internal Control-Integrated Framework” issued by the COSO. 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. 31 ITEM 9B. OTHER INFORMATION Form 8-K Disclosures We are providing the following disclosures in lieu of filing a Current Report on Form 8-K relating to Item 5.02 (“Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers”). Jason Adelman Resignation On April 10, 2025, Jason Adelman provided the Board with his formal resignation from the Board and all committees thereof, effective immediately. Mr. Adelman was a member of the Board’s Compensation, Audit, and Nomination and Corporate Governance Committees. Mr. Adelman’s decision to resign was not due to any disagreement with our Company on any matter relating to our operations, policies or practices (financial or otherwise). Isaac Dietrich Termination On April 12, 2025, we terminated the employment of Isaac Dietrich, our Chief Financial Officer, effective April 12, 2025. Rule 10b5-1 Trading Arrangement During the three months ended December 31, 2024, 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 The information required by Item 10 is incorporated by reference to our proxy statement for our 2025 Annual Meeting of Stockholders. Item 405 of Regulation S-K calls for disclosure of any known late filing or failure by an insider to file a report required by Section 16(a) of the Exchange Act. To the extent disclosure for delinquent reports is being made, it can be found under the caption “Delinquent Section 16(a) Reports” in our proxy statement for our 2025 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the year covered by this Annual Report on Form 10-K and is incorporated herein by reference. We have an insider trading policy that governs the purchase, sale, and other disposition of our securities by our directors, officers, employees and other individuals associated with us, as well as by the Company itself, that we believe is reasonably designed to promote compliance with insider trading laws, rules and regulations, and listing standards applicable to us. A copy of our insider trading policy is filed as Exhibit 19.1 to this Annual Report on Form 10-K. ITEM 11. EXECUTIVE COMPENSATION The information required by Item 11 is incorporated by reference to our proxy statement for our 2025 Annual Meeting of Stockholders. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. The information required by Item 12 is incorporated by reference to our proxy statement for our 2025 Annual Meeting of Stockholders. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE. The information required by Item 13 is incorporated by reference to our proxy statement for our 2025 Annual Meeting of Stockholders. ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES Our independent registered public accounting firm is RBSM LLP, New York, NY, Auditor ID: 587. The information required by Item 14 is incorporated by reference to our proxy statement for our 2025 Annual Meeting of Stockholders. 32 PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES (a) Documents filed as part of this Annual Report: (1) Financial Statements See “Index to Consolidated Financial Statements” on Page F-1. (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., 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 effective September 30, 2021, field with the Secretary of State on September 30, 2021 8-K 000-55431 3.1 October 6, 2021 3.3 Certificate of Amendment to Second Amended and Restated Certificate of Incorporation of the Registrant 8-K 000-55431 3.1 February 25, 2022 3.4 Certificate of Amendment to Second Amended and Restated Certificate of Incorporation of the Registrant 8-K 000-55431 3.2 February 25, 2022 3.5 Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of the Registrant 8-K 001-41452 3.1 June 3, 2024 33 3.6 Certificate of Designations, Preferences and Rights of the Series D Convertible Preferred Stock . 8-K 000-55431 3.1 April 2, 2024 3.7 Certificate of Elimination relating to the Series D Preferred Stock, dated May 29, 2024 8-K 001-41452 3.1 June 3, 2024 3.8 Certificate of Designations, Preferences and Rights of Series A-1 Preferred Stock of Greenwave Technology Solutions, Inc., dated November 13, 2024 8-K 001-41452 3.1 November 18, 2024 3.9 Amended and Restated Bylaws of the Registrant . 8-K 001-41452 3.1 November 29, 2022 3.10 Amendment No. 1 to the Amended and Restated Bylaws of the Registrant DEF 14A 001-41452 Appendix A June 3, 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 4.3 Form of Warrant dated July 2023 8-K 000-55431 4.1 August 3, 2023 4.4 Form of Senior Note dated July 2023 8-K 000-55431 4.2 August 3, 2023 4.5 Form of Secured Promissory Note dated July 31, 2023. Issued to DWM Properties LLC 8-K 000-55431 4.3 August 3, 2023 4.6 Form of Warrant issued to Purchasers, dated August 2023 8-K 000-55431 4.1 August 21, 2023 4.7 Form of Placement Agent Warrant, dated August 2023 8-K 000-55431 4.2 August 21, 2023 4.8 Form of Warrant 8-K 000-55431 4.1 December 6, 2021 4.9 Form of Senior Note 8-K 000-55431 4.2 December 6, 2021 4.10 Form of Inducement Warrant 8-K 001-41452 4.1 March 18, 2024 4.11 Form of Warrant issued to Purchasers 8-K 001-41452 4.1 April 22, 2024 4.12 Form of Financial Advisor Warrant 8-K 001-41452 4.2 April 22, 2024 4.13 Amendment to Senior Secured Convertible Promissory Note, dated as of May 3, 2024, by and among Greenwave Technology Solutions, Inc. and the Holders party thereto . 8-K 001-41452 4.1 May 3, 2024 4.14 Waiver Agreement, dated as of May 9, 2024, by and among Greenwave Technology Solutions, Inc. and the Purchasers party thereto . 8-K 001-41452 4.1 May 9, 2024 4.15 Form of Warrant issued to Purchasers 10-Q 001-41452 4.1 May 20, 2024 4.16 Form of Financial Advisor Warrant 10-Q 001-41452 4.2 May 20, 2024 4.17 Form of Warrant issued to Purchasers 8-K 001-41452 4.1 June 11, 2024 4.18 Form of Placement Agent Warrant 8-K 001-41452 4.2 June 11, 2024 4.19 Form of Warrant issued to Purchasers 8-K 001-41452 4.1 January 13, 2025 4.20 Form of Placement Agent Warrant 8-K 001-41452 4.2 January 13, 2025 4.21 Form of Warrant Amendment entered into with Existing Holders 8-K 001-41452 4.3 January 13, 2025 4.22 Form of Warrant issued to Purchasers 8-K 001-41452 4.1 February 11, 2025 4.23 Form of Placement Agent Warrant 8-K 001-41452 4.2 February 11, 2025 4.24 Promissory Note, dated as of December 2, 2024, issued to DWM Properties LLC 8-K 001-41452 4.1 December 2, 2024 34 10.1+ 2014 Stock Incentive Plan and form of agreements thereunder . S-1 333-196735 10.12 June 13, 2014 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+ 2022 Equity Incentive Plan and form of agreements thereunder DEF 14A 001-41452 Appendix A October 11, 2022 10.8+ 2023 Equity Inventive Plan and form of agreements thereunder DEF 14A 001-41452 Appendix A August 31, 2023 10.9+ 2024 Equity Inventive Plan and form of agreements thereunder . DEF 14A 001-41452 Appendix A April 11, 2024 10.10+ Amendment No. 1 to the 2024 Equity Inventive Plan DEF 14A 001-41452 Appendix B June 3, 2024 10.11 Form of Amended and Restated Simple Agreement for Future Tokens . S-1 333-223038 10.27 February 14, 2018 10.12+ Employment Agreement by and between the Company and Danny Meeks 8-K 000-55431 10.2 October 6, 2021 10.13 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 10.14 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 10.15 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 10.16 Form of Exchange Agreement 8-K/A 000-55431 10.1 April 2, 2024 10.17 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 10.18 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 10.19 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 10.20 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 10.21 Form of Securities Purchase Agreement between Greenwave Technology Solutions, Inc. and the Purchasers signatory thereto . 8-K 000-55431 10.1 August 21, 2023 10.22 Form of Inducement Letter 8-K 000-55431 10.1 March 18, 2024 10.23 Form of Securities Purchase Agreement between Greenwave Technology Solutions, Inc. and the Purchasers signatory thereto 8-K 001-41452 10.1 April 22, 2024 10.24 Form of Exchange Agreement 8-K 001-41452 10.2 April 22, 2024 10.25 Form of Voting Agreement 8-K 001-41452 10.3 April 22, 2024 10.26 Form of Exchange Agreement 8-K 001-41452 10.1 May 16, 2024 35 10.27 Form of Securities Purchase Agreement between Greenwave Technology Solutions, Inc. and the Purchasers signatory thereto 10-Q 001-41452 10.1 May 20, 2024 10.28 Form of Securities Purchase Agreement, dated as of June 10, 2024, by and between Greenwave Technology Solutions, Inc. and the Purchasers signatory thereto 8-K 001-41452 10.1 June 11, 2024 10.29 Contract of Sale, dated as of December 2, 2024, by and among, DWM Properties LLC, KPAJ, LLC, Oceana Salvage Properties, L.L.C., as Sellers, and Greenwave Technology Solutions, Inc . 8-K 001-41452 10.1 December 2, 2024 10.30 Form of Securities Purchase Agreement, dated as of January 10, 2025, by and between Greenwave Technology Solutions, Inc. and the Purchasers signatory thereto 8-K 001-41452 10.1 January 13, 2025 10.31 Form of Exchange Agreement, dated as of January 10, 2025, by and between Greenwave Technology Solutions, Inc. and the June Holders signatory thereto 8-K 001-41452 10.2 January 13, 2025 10.32 Form of Voting Agreement, dated as of January 10, 2025, by and between Greenwave Technology Solutions, Inc. and the signatory thereto 8-K 001-41452 10.3 January 13, 2025 10.33 Form of Securities Purchase Agreement, dated as of February 10, 2025, by and between Greenwave Technology Solutions, Inc. and the Purchasers signatory thereto 8-K 001-41452 10.1 February 11, 2025 19.1* Insider Trading Policy 21.1* Subsidiaries of the Registrant 23.1* Consent of Independent Registered Public Accounting Firm RBSM LLP 31.1* Chief Executive Officer Certification pursuant to Rule 13a-14(a)/15d-14(a). 31.2* Chief Financial Officer Certification pursuant to Rule 13a-14(a)/15d-14(a). 32.1* Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 32.2 Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 97.1 Compensation Recovery Policy 10-K 001-41452 10.54 April 16, 2024 * filed herewith. ** Exhibits 32.1 and 32.2 are being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall such exhibits be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise specifically stated in such filing. + Denotes a management contract or compensatory plan. ITEM 16. FORM 10-K SUMMARY Not applicable. 36 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 15th day of April, 2025. GREENWAVE TECHNOLOGY SOLUTIONS, INC. By: /s/ Danny Meeks Danny Meeks Chief Executive Officer and Acting Chief Financial Officer (Principal Executive, 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 and Acting Chief Financial Officer (Principal Executive, Financial and Accounting Officer) and April 15, 2025 Danny Meeks Chairman of the Board of Directors /s/ Cheryl Lanthorn Director April 15, 2025 Cheryl Lanthorn /s/ Lisa Lucas-Burke Director April 15, 2025 Lisa Lucas-Burke 37 GREENWAVE TECHNOLOGY SOLUTIONS, INC. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Report of Independent Registered Public Accounting Firm (PCAOB ID: 587 ) F-2 Consolidated Balance Sheets as of December 31, 2024 and 2023 F-3 Consolidated Statements of Operations for the Years Ended December 31, 2024 and 2023 F-4 Consolidated Statements of Stockholders’ Equity (Deficit) for the Years Ended December 31, 2024 and 2023 F-5 Consolidated Statements of Cash Flows for the Years Ended December 31, 2024 and 2023 F-7 Notes to Consolidated Financial Statements F-8 F- 1 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, 2024 and 2023, 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, 2024, 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, 2024 and 2023, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2024 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 Critical audit matters 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. We determined that there were no critical audit matters. PCAOB ID 587 /s/ RBSM LLP We have served as the Company’s auditor since 2017. New York, NY April 15, 2025 F- 2 GREENWAVE TECHNOLOGY SOLUTIONS, INC. CONSOLIDATED BALANCE SHEETS December 31, December 31, 2024 2023 ASSETS Current assets: Cash $ 2,576,464 $ 1,546,159 Inventories, net 2,889,682 200,428 Accounts receivable, net of allowance for doubtful accounts 1,254,390 646,413 Prepaid expenses 921,580 296,761 Total current assets 7,642,116 2,689,761 Property and equipment, net 25,596,856 16,569,125 Property and equipment, net - Purchased from Related Party 11,834,807 6,926,315 Property and equipment, net 11,834,807 6,926,315 Operating lease right of use assets, net - related party - 103,822 Operating lease right of use assets, net 1,048,070 198,558 Licenses, net 14,359,950 16,487,350 Customer list, net 1,511,325 1,735,225 Intellectual property, net 1,062,600 1,669,800 Intangible assets, net 1,062,600 1,669,800 Security deposit 31,893 31,893 Total assets $ 63,087,617 $ 46,411,849 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Current liabilities: Bank overdraft $ 231,696 $ 118,763 Accounts payable and accrued expenses 5,893,351 6,100,449 Accrued payroll and related expenses 3,946,410 4,089,836 Factoring, net of unamortized debt discount of $- and $ 0 , respectively 0 0 Non-convertible notes payable, current portion, net of unamortized debt discount of $ 633,396 and $ 774,308 , respectively 2,505,360 2,623,561 Convertible notes payable, current portion, net of unamortized debt discount of $ - and $ 3,934,506 , respectively 0 8,065,494 Related party note payable 7,691,859 17,218,350 Due to related parties 495,354 2,070,402 Operating lease obligations, current portion - related party - 111,240 Operating lease obligations, current portion 331,545 89,731 Total current liabilities 21,095,575 40,487,826 Operating lease obligations, less current portion 773,820 94,943 Convertible notes payable, net of unamortized debt discount of $ - and $ 1,967,253 , respectively 0 4,032,747 Non-convertible notes payable, net of unamortized debt discount of $ 1,076,554 and $ 1,739,260 , respectively 4,263,239 6,250,481 Total liabilities 26,132,634 50,865,997 Commitments and contingencies (See Note 11) - - Stockholders’ equity (deficit): Preferred stock - 10,000,000 shares authorized: Preferred stock - Series A-1, $ 0.001 par value, $ 100,000 stated value, 450,000 and 0 shares authorized; 450,000 and 0 shares issued and outstanding, respectively 450 0 Preferred stock, value 450 0 Common stock, $ 0.001 par value, 1,200,000,000 shares authorized; 26,091,027 and 113,096 shares issued and outstanding, respectively 26,091 113 Additional paid in capital 533,240,788 391,411,896 Accumulated deficit ( 496,312,346 ) ( 395,866,157 ) Total stockholders’ equity (deficit) 36,954,983 ( 4,454,148 ) Total liabilities and stockholders’ equity (deficit) $ 63,087,617 $ 46,411,849 The accompanying notes are an integral part of these consolidated financial statements. F- 3 GREENWAVE TECHNOLOGY SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS 2024 2023 For the Year Ended December 31, 2024 2023 Revenues $ 33,315,859 $ 35,667,982 Cost of Revenues 20,326,381 21,184,579 Gross Profit 12,989,478 14,483,403 Operating Expenses: Advertising 53,147 414,194 Payroll and related expense 8,181,701 6,634,800 Rent, utilities and property maintenance 2,680,454 3,102,484 Hauling and equipment maintenance 5,296,630 2,898,202 Depreciation and amortization expense 7,337,893 5,814,880 Impairment of tangible assets 439,086 0 Consulting, accounting and legal 3,179,812 1,713,613 Loss on asset 0 197,458 Loss on asset - related-party 12,338,550 9,850,850 Loss on asset 12,338,550 9,850,850 Warrants issued for services 3,004,909 171,239 Stock compensation 823,500 0 Other general and administrative expenses 3,915,729 3,200,445 Total Operating Expenses 47,251,411 33,998,165 Loss From Operations ( 34,261,933 ) ( 19,514,762 ) Other Income (Expense): Interest expense and amortization of debt discount ( 5,364,703 ) ( 8,897,267 ) Shares issued for financing ( 52,182 ) 0 Other gain (loss) ( 15,212 ) 17,572 Gain on tax credit 0 717,064 Gain on lease termination 0 108,863 Change in fair value of derivative liabilities 48,314,949 0 Loss on extinguishment of debt ( 16,351,827 ) 0 Equity issued for warrant inducement ( 3,029,927 ) 0 Loss on conversion of convertible notes ( 14,213,480 ) 0 Gain on settlement of non-convertible notes payable, accrued interest, and advances 1,056,962 632,540 Total Other Income (Expense) 10,344,580 ( 7,421,228 ) Net Loss Before Income Taxes ( 23,917,353 ) ( 26,935,990 ) Provision for Income Taxes (Benefit) 0 0 Net Loss ( 23,917,353 ) ( 26,935,990 ) Deemed dividend for the reduction of exercise price of warrants ( 52,574,896 ) ( 1,638,952 ) Deemed dividend for the reduction of the conversion price of a debt note ( 23,953,940 ) ( 5,022,200 ) Net Loss Available to Common Stockholders $ ( 100,446,189 ) $ ( 33,597,142 ) Net Loss Per Common Share: Basic $ ( 8.47 ) $ ( 385.81 ) Diluted $ ( 8.47 ) $ ( 385.81 ) Weighted Average Common Shares Outstanding: Basic 11,853,520 87,082 Diluted 11,853,520 87,082 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, 2024 Shares Amount Shares Amount Shares Amount In Capital Deficit Total Preferred Stock Series D Preferred Stock Additional to be Issued Series A-1 Common Stock Paid Accumulated Shares Amount Shares Amount Shares Amount In Capital Deficit Total Balance at December 31, 2023 - $ - - - $ - 113,096 $ 113 $ 391,411,896 $ ( 395,866,157 ) $ ( 4,454,148 ) Exchange of non-convertible note of related party into shares of Series D Preferred 1,000 $ 1 - - - - $ 9,999,999 - $ 10,000,000 Issuance of Series A-1 Preferred to related party as consideration for purchase of land and permits - - 450,000 $ 450 - - $ 3,299,634 - $ 3,300,084 Common stock issued for the cashless exchange of warrants - - - - 11,807,064 $ 11,807 $ ( 11,807 ) - - Common stock and warrants issued for cash, net of fees - - - - 8,149,250 $ 8,149 $ 40,360,966 - $ 40,369,115 Common stock issued for services rendered and to be rendered - - - - 1,533,333 $ 1,533 $ 759,591 - $ 761,124 Common stock issued for the conversion of convertible debt notes - - - - 2,478,459 $ 2,479 $ 30,713,920 - $ 30,716,399 Common stock issued for the conversion of convertible debt notes (Related Party) - - - - 412,359 $ 412 $ 7,236,493 - $ 7,236,905 Common stock issued for the exercise of warrants for cash, net of fees - - - - 108,515 $ 109 $ 2,834,632 - $ 2,834,741 Warrants issued for services - - - - - - $ 3,004,909 - $ 3,004,909 Equity issued for warrant inducement - - - - - - $ 3,029,927 - $ 3,029,927 Modification of conversion feature on convertible debt - - - - - - $ 12,388,229 - $ 12,388,229 Deemed dividend for the reduction of the conversion price of a debt note - - - - - - $ 23,953,940 $ ( 23,953,940 ) - Deemed dividend for the reduction of the exercise price of warrants - - - - - - $ 52,574,896 $ ( 52,574,896 ) - Exchange of Series D Preferred into Common ( 1,000 ) $ ( 1 ) - - 1,333,333 $ 1,333 $ ( 1,332 ) - - Establishment of derivative liabilities due to authorized share shortfall - - - - - - $ ( 64,951,789 ) - $ ( 64,951,789 ) Settlement of derivative liabilities upon stock split - - - - - - $ 16,636,840 - $ 16,636,840 Rounding for share adjusted in reverse split - - - - 155,616 $ 156 $ ( 156 ) - - Net loss - - - - - - - - $ ( 23,917,353 ) $ ( 23,917,353 ) Balance at December 31, 2024 - $ - - 450,000 $ 450 26,091,025 $ 26,091 $ 533,240,788 $ ( 496,312,346 ) $ 36,954,983 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, 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 $ - 73,082 $ 73 $ 377,606,507 $ ( 362,269,015 ) $ 15,337,565 Balance 322 $ - 73,082 $ 73 $ 377,606,507 $ ( 362,269,015 ) $ 15,337,565 Issuance of common stock upon conversion of Series Z Preferred ( 322 ) - 8,680 $ 9 $ ( 9 ) - - Common stock issued for cash, net issuance costs - - 16,741 $ 17 $ 2,841,164 - $ 2,841,181 Common stock issued for services rendered and to be rendered - - 1,840 $ 2 $ 254,446 - $ 254,448 Common stock issued for the exercise of warrants for cash - - 10,343 $ 10 $ 15,501 - $ 15,511 Issuance of common stock upon cashless exercise of warrants - - 2,410 $ 2 $ ( 2 ) - - 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 - $ - 113,096 $ 113 $ 391,411,896 $ ( 395,866,157 ) $ ( 4,454,148 ) Balance - $ - 113,096 $ 113 $ 391,411,896 $ ( 395,866,157 ) $ ( 4,454,148 ) The accompanying notes are an integral part of these consolidated financial statements. F- 6 GREENWAVE TECHNOLOGY SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF CASHFLOWS 2024 2023 For the Year Ended December 31 , 2024 2023 Cash flows from operating activities: Net loss $ ( 23,917,353 ) $ ( 26,935,990 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization of intangible assets 7,337,893 5,814,880 Amortization of right of use assets, net - related-party 324,608 1,250,218 Amortization of right of use assets, net - 392,050 Interest and amortization of debt discount 5,364,703 8,897,267 Loss on conversion of debt 14,213,480 Loss on assets - 197,458 Loss on assets - related-party 12,338,550 9,850,850 Loss on assets 12,338,550 9,850,850 Impairments on equipment 439,086 - Gain on termination of lease - ( 108,863 ) Gain on settlement of non-convertible notes payable, accrued interest, and advances ( 1,056,962 ) ( 632,540 ) Stock based compensation 823,500 0 Warrants issued for services 3,004,909 171,239 Loss on extinguishment 16,351,827 - Equity issued for warrant inducement 3,029,927 - Gain on deferred revenue - ( 25,000 ) Change in fair value of derivative liabilities ( 48,314,949 ) - Changes in operating assets and liabilities: Due to related party ( 1,685,205 ) 1,824,318 Inventories ( 2,689,254 ) ( 10,782 ) Accounts receivable ( 745,477 ) ( 431,155 ) Prepaid expenses ( 687,194 ) ( 200,590 ) Security deposit - ( 25,000 ) Accounts payable and accrued expenses ( 969,383 ) ( 856,151 ) Accrued payroll and related expenses ( 156,582 ) 614,271 Principal payments made on operating lease liability - related-party ( 83,430 ) ( 1,477,285 ) Principal payments made on operating lease liability ( 177,417 ) ( 142,505 ) Net cash used in operating activities ( 17,254,723 ) ( 1,833,310 ) Cash flows from investing activities: Purchases of property and equipment - related party ( 3,582,181 ) ( 1,760,945 ) Cash received for the advance given for asset - 82,769 Purchases of property and equipment ( 12,339,809 ) - Net cash used in investing activities ( 15,921,990 ) ( 1,678,176 ) Cash flows from financing activities: Bank overdrafts 112,933 118,763 Proceeds from sale of common stock and warrants 40,369,115 2,841,181 Proceeds from warrant exercises 2,834,741 15,511 Proceeds from issuance of convertible notes - 13,118,750 Repayments of convertible notes ( 1,497,083 ) - Proceeds from bridge financing - 825,000 Proceeds from issuance of non-convertible notes payable - 1,000,000 Repayment of non-convertible notes payable - Related party ( 4,008,057 ) - Repayment of non-convertible notes payable ( 2,910,193 ) ( 4,858,587 ) Proceeds from factoring 2,843,950 3,746,109 Repayments of factoring ( 3,538,388 ) ( 12,570,886 ) Net cash provided by financing activities 34,207,018 4,235,841 Net increase (decrease) in cash 1,030,305 724,355 Cash, beginning of year 1,546,159 821,804 Cash, end of year $ 2,576,464 $ 1,546,159 Supplemental disclosures of cash flow information: Cash paid during period for interest $ 365,000 $ 593,072 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 $ 23,953,940 $ 5,022,200 Factoring proceeds utilized for payoff of factoring liabilities $ - $ 5,004,393 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 Deemed dividend for exercise price reduction of warrants $ 52,574,896 $ 1,638,952 Exchange of related party notes to Series D Preferred $ 10,000,000 $ - 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 $ 1,070,298 $ 199,466 Common shares issued upon conversion of Series Z Preferred $ 1,333 $ 1,303 Common shares issued for cashless exchange of warrants $ 11,807 $ 360 Rounding for reverse split $ 156 $ - Legal fees paid out of warrant exercise $ 139,955 $ - Assets purchased adjusted from accounts receivables $ 137,500 $ - Common shares issued upon conversion of convertible notes and accrued interest $ 2,890,818 $ - Land purchased with deed of trust notes $ 11,699,916 $ - Land purchase with issuance of Series A-1 Preferred $ 3,300,084 $ - 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, 2024 and 2023 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 13 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. 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 75 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, 2024, the Company had cash of $ 2,576,464 and a working capital deficit (current liabilities in excess of current assets) of $ ( 13,453,459 ) . During the year ended December 31, 2024, the net cash used in operating activities was $ ( 17,254,723 ) . The accumulated deficit as of December 31, 2024 was $ ( 496,312,346 ) . 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, 2024, there were proceeds from warrant exercises of $ 2,834,741 , proceeds from the sale of common stock and warrants of $ 40,369,115 , proceeds from bank overdrafts of $ 112,933 , and proceeds from factoring advances of $ 2,843,950 . If the Company raises additional funds by issuing equity securities, its stockholders would experience dilution. Additional debt financing, if available, may involve covenants restricting its operations or its ability to incur additional debt. Any additional debt financing or additional equity that the Company raises may contain terms that are not favorable to it or its stockholders and require significant debt service payments, which diverts resources from other activities. The Company’s ability to raise additional capital will be impacted by market conditions and the price of the Company’s common stock. 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. F- 8 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, derivative liability, extinguishment & modification of debt and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates. 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, 2024 and 2023, 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, 2024 and 2023, the uninsured balances amounted to $ 2,363,785 and $ 1,267,659 , 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 fulfilment of its performance obligations to customers. 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. F- 10 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. As of December 31, 2024 and 2023, the accounts receivable balances amounted to $ 1,254,390 and $ 646,413 , respectively. 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 $ 2,889,682 and $ 200,428 , respectively, as of December 31, 2024 and 2023. See “Note 5 – Inventories.” Advertising The Company charges the costs of advertising to expense as incurred. Advertising costs were $ 53,147 and $ 414,194 for the year ended December 31, 2024 and 2023, 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.” 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. F- 11 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. Issuance of Debt Instruments With Detachable Stock Purchase Warrants Proceeds from the issuance of a debt instrument with stock purchase warrants (detachable call options) are allocated to the two elements based on the relative fair values of the debt instrument without the warrants and of the warrants themselves at time of issuance. The portion of the proceeds allocated to the warrants are recorded as additional paid-in capital. The remainder of the proceeds are allocated to the debt instrument portion of the transaction. Such issuances generally result in a discount (or, occasionally, a reduced premium) relative to the debt instrument, which is amortized to interest expense using the effective interest rate method. 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, 2024 and 2023 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, 2024 and 2023, 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. 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 5 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. 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, 2024 and 2023, the Company owed $ 0 and $ 0 , net of debt discounts of $ 0 and $ 0 , 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. The Company adopted ASU 2023-07 for the year ended December 31, 2024. See Note 20 – Segment Reporting. 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. F- 13 The computation of basic and diluted income (loss) per share, for the year ended December 31, 2024 and 2023 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. 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 COMPUTATION OF BASIC AND DILUTED NET LOSS PER SHARE December 31, 2024 December 31, 2023 Common shares issuable upon conversion of convertible notes - 147,059 Options to purchase common shares 729 754 Warrants to purchase common shares 11,473,885 124,332 Common shares issuable upon conversion of preferred stock 11,740,962 - Total potentially dilutive shares 23,215,576 272,145 On May 31, 2024, the Company completed 1-for-150 reverse stock split. Pursuant to GAAP, the Company retrospectively recasted and restated the weighted-average shares included within its consolidated statements of operations for the years ended December 31, 2024 and 2023. The basic and diluted weighted-average common shares are retroactively converted to shares of the Company’s common stock to conform to the recasted consolidated statements of stockholders’ equity. Recent Accounting Pronouncements Income Taxes In December 2023, the FASB issued Accounting Standards Update No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires enhanced disclosures surrounding income taxes, particularly related to rate reconciliation and income taxes paid information. In particular, on an annual basis, companies will be required to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. Companies will also be required to disclose, on an annual basis, the amount of income taxes paid, disaggregated by federal, state, and foreign taxes, and also disaggregated by individual jurisdictions above a quantitative threshold. The standard is effective for the Company for annual periods beginning January 1, 2025 on a prospective basis, with retrospective application permitted for all prior periods presented. The Company will adopt ASU 2023-09 for the annual period ending December 31, 2025 and is currently evaluating the impact of this guidance on its disclosures. Segment Reporting In November 2023, the FASB issued Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 requires enhanced disclosures surrounding reportable segments, particularly (i) significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included in the reported measure(s) of a segment’s profit and loss and (ii) other segment items that reconcile segment revenue and significant expenses to the reported measure(s) of a segment’s profit and loss, both on an annual and interim basis. Companies are also required to provide all annual disclosures currently required under Topic 280 in interim periods, in addition to disclosing the title and position of the CODM and how the CODM uses the reported measure(s) of segment profit and loss in assessing segment performance and allocating resources. The Company adopted ASU 2023-07 for the year ended December 31, 2024. F- 14 Disaggregation of Income Statement Expenses In November 2024, the FASB issued Accounting Standards Update No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) (“ASU 2024-03”). ASU 2024-03 requires specified information about certain costs and expenses be disclosed in the notes to the financial statements, including the expense caption on the face of the income statement in which they are disclosed, in addition to a qualitative description of remaining amounts not separately disaggregated. Entities will also be required to disclose their definition of “selling expenses” and the total amount in each annual period. The standard is effective for the Company for annual periods beginning January 1, 2027 and for interim periods beginning January 1, 2028, with updates applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its 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 The Company had a concentration of suppliers during fiscal year 2023. During the year ended December 31, 2023, two suppliers accounted for $ 609,119 and $ 374,800 , or 2.88 % and 1.77 % of our cost of goods sold. During the year ended December 31, 2024, no supplier accounted for more than 5 % of the Company’s cost of revenues. Accounts Receivable The Company has a concentration of credit risk with its accounts receivable balance. At December 31, 2024, six certain large customers individually accounted for $ 156,535 , $ 145,703 , $ 140,978 , $ 130,518 , $ 109,900 , $ 83,387 , and $ 67,214 , or 12.48 %, 11.62 %, 11.24 %, 10.40 %, 8.76 %, 6.65 %, and 5.36 %, respectively. 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. Customer Concentrations The Company has a concentration of customers. For the fiscal year ended December 31, 2024, two large customers individually accounted for $ 18,654,928 and $ 1,683,325 , or approximately 55.99 % and 5.05 % of our revenues, respectively. 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. The Company’s sales are concentrated in the Virginia and northeastern North Carolina markets. NOTE 5 – INVENTORIES Inventories consisted of the following as of: SCHEDULE OF INVENTORIES December 31, 2024 December 31, 2023 Processed and unprocessed scrap metal $ 2,889,682 $ 200,428 Finished products - - Inventories $ 2,889,682 $ 200,428 NOTE 6 – PROPERTY AND EQUIPMENT On December 2, 2024, the Company entered into a Contract of Sale (the “Contract of Sale”) with DWM Properties LLC (“DWM”), KPAJ, LLC and Oceana Salvage Properties, L.L.C. (collectively, the “Sellers”), in each case, an entity affiliated with Danny Meeks, the Company’s Chief Executive Officer, pursuant to which the Company agreed to purchase the Premises (as defined in the Contract of Sale) held by the Sellers for an aggregate purchase price of $ 15,000,000 , to be allocated among the seven parcels comprising the Premises and the Licenses and Permits (as defined in the Contract of Sale), as more fully described in the Contract of Sale. The transaction closed on December 2, 2024. F- 15 The purchase price is paid by (i) the issuance of an aggregate of 450,000 shares of Series A-1 Preferred Stock of the Company, par value $ 0.001 per share (the “Preferred Stock”), to the Sellers at an aggregate valuation of $ 3,300,084 and (ii) the issuance of a promissory note payable to DWM (the “DWM Note”) in the aggregate principal amount of $ 11,699,916 . The DWM Note bears interest at a rate of 10 % per annum, and is payable in equal installments of $ 2,983,309 on each of December 31, 2024, January 31, 2025, February 28, 2025 and March 31, 2025 (each, a “Payment Date”); provided, that if payment on a Payment Date would cause the Company’s cash balance to be less than $ 3,000,000 , then such Payment Date and each subsequent Payment Date shall be extended by 30 days. The Company shall make all payments owed under the DWM Note within 12 months from the date of issuance. In addition, if the Company exercises a 30 day extension of any payment, the Company is required to furnish to DWM such financial information and data as DWM may reasonably request to confirm the Company’s cash balance. Property and equipment as of December 31, 2024 and 2023 is summarized as follows: SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2024 December 31, 2023 Machinery & Equipment $ 18,467,955 $ 18,028,893 Furniture & Fixtures 6,128 6,128 Vehicles 20,679,716 7,149,919 Leaseholder Improvement 1,886,384 1,862,593 Land 3,641,579 980,129 Buildings 724,170 724,170 Subtotal 45,405,932 28,751,832 Property and equipment, gross 45,405,932 28,751,832 Less accumulated depreciation ( 7,974,269 ) ( 5,256,392 ) Property and equipment, net $ 37,431,663 $ 23,495,440 Depreciation expense for the years ended December 31, 2024 and 2023 was $ 4,379,393 and $ 2,856,380 , respectively. Impairment of equipment for the years ended December 31, 2024 and 2023 was $ 439,086 and $ 0 , respectively. Loss on assets for the years ended December 31, 2024 and 2023 was $ 12,338,550 and $ 9,850,850 , respectively due to loss on a related-party asset purchase. Loss on assets for the years ended December 31, 2024 and 2023 was $ 0 and $ 197,458 , respectively due to loss on a non related-party asset purchase. For the year ended December 31, 2024, the Company wrote off its fully depreciated equipment in the amount of $ 1,474,750 . Also company fully wrote off impaired equipment in the amount of $ 624,462 . 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, 2024 Remaining Gross carrying amount Accumulated amortization Carrying value estimated useful life Intellectual Property $ 3,036,000 $ ( 1,973,400 ) $ 1,062,600 2 years Customer List 2,239,000 ( 727,675 ) 1,511,325 7 years Licenses 21,274,000 ( 6,914,050 ) 14,359,950 7 years Total intangible assets, net $ 26,549,000 $ ( 9,615,125 ) $ 16,933,875 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 F- 16 There were no intangible assets acquired during the years ended December 31, 2024 and 2023. Amortization expense for intangible assets was $ 2,958,500 and $ 2,958,500 for the years ended December 31, 2024 and 2023, respectively. Total estimated amortization expense for our intangible assets for the years 2025 through 2029 is as follows: SCHEDULE OF AMORTIZATION EXPENSES FOR INTANGIBLE ASSETS Year ended December 31, 2025 $ 2,958,500 2026 2,806,700 2027 2,351,300 2028 2,351,300 2029 2,351,300 Thereafter 4,114,775 NOTE 8 – ADVANCES AND NON-CONVERTIBLE NOTES PAYABLE Factoring Advances 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 $ 0 and $ 492,540 during the years ended December 31, 2024 and 2023, respectively. The Company made cash repayments of $ 0 and $ 695,198 during the years ended December 31, 2024 and 2023, respectively. 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, 2024 and 2023, the revenue factoring advance had a balance of $ 0 and $ 0 , net an unamortized debt discount of $ 0 and $ 0 , 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 $ 0 and $ 323,669 during the years ended December 31, 2024 and 2023, respectively . The Company made cash repayments of $ 0 and $ 408,136 during the years ended December 31, 2024 and 2023, respectively. 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, 2024 and 2023, the revenue factoring advance had a balance of $ 0 and $ 0 , net an unamortized debt discount of $ 0 and $ 0 , 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 $ 0 and $ 404,812 during the years ended December 31, 2024 and 2023, respectively. The Company made cash repayments of $ 0 and $ 1,474,000 during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the revenue factoring advance had a balance of $ 0 and $ 0 , net an unamortized debt discount of $ 0 and $ 0 , 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 $ 0 and $ 270,000 during the years ended December 31, 2023 and 2024, respectively. The Company made cash repayments of $ 0 and $ 192,500 and the remaining balance of $ 0 and $ 548,625 was repaid out of the proceeds of another advance during the years ended December 31, 2024 and 2023, respectively. There was a $ 0 and $ 28,875 gain on settlement of the advance during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the revenue factoring advance had a balance of $ 0 and $ 0 , net an unamortized debt discount of $ 0 and $ 0 , respectively. F- 17 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 $ 0 and $ 500,000 during the years ended December 31, 2024 and 2023, respectively. The Company made cash repayments of $ 0 and $ 350,000 during the years ended December 31, 2024 and 2023, respectively. 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 $ 0 and $ 46,130 gain on settlement of the advance during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the revenue factoring advance had a balance of $ 0 and $ 0 , net an unamortized debt discount of $ 0 and $ 0 , respectively. 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 $ 0 and $ 652,500 during the years ended December 31, 2024 and 2023, respectively. The Company made cash repayments of $ 0 and $ 2,744,950 during the years ended December 31, 2024 and 2023, respectively. There was a gain of settlement of $ 0 and $ 157,550 during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the revenue factoring advance had a balance of $ 0 and $ 0 , net an unamortized debt discount of $ 0 and $ 0 , respectively. 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 $ 0 and $ 986,000 during the years ended December 31, 2024 and 2023, respectively. The Company made cash repayments of $ 0 and $ 4,080,105 during the years ended December 31, 2024 and 2023, respectively. There was a gain of settlement of $ 0 and $ 305,895 during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the revenue factoring advance had a balance of $ 0 and $ 0 , net an unamortized debt discount of $ 0 and $ 0 , respectively. 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 $ 0 and $ 238,000 during the years ended December 31, 2024 and 2023, respectively. The Company made cash repayments of $ 0 and $ 861,000 during the years ended December 31, 2024 and 2023, respectively. There was a gain of settlement of $ 0 and $ 56,000 during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the revenue factoring advance had a balance of $ 0 and $ 0 , net an unamortized debt discount of $ 0 and $ 0 , respectively. 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 $ 0 and $ 102,000 during the years ended December 31, 2024 and 2023, respectively. The Company made cash repayments of $ 0 and $ 375,000 during the years ended December 31, 2024 and 2023, respectively. There was a gain of settlement of $ 0 and $ 18,000 during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the revenue factoring advance had a balance of $ 0 and $ 0 , net an unamortized debt discount of $ 0 and $ 0 , respectively. F- 18 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 $ 820,000 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 $ 0 and $ 490,000 during the years ended December 31, 2024 and 2023, respectively. The Company made cash repayments of $ 0 and $ 1,379,910 during the years ended December 31, 2024 and 2023, respectively. There was a gain of settlement of $ 0 and $ 20,090 during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the revenue factoring advance had a balance of $ 0 and $ 0 , net an unamortized debt discount of $ 0 and $ 0 , respectively. On February 1, 2024, the Company entered into a revenue factoring advance in the principal amount of $ 1,340,000 for a purchase price of $ 970,000 . There was an origination fee of $ 30,000 . There were cash proceeds of $ 970,000 during the year ended December 31, 2024. The Company’s Chief Executive Officer was personally liable for this factoring advance. The Company was required to make weekly payments in the amount $ 25,800 through January 2025. The advance matured on January 23, 2025. There was amortization of debt discount of $ 370,000 during the year ended December 31, 2024. The Company made cash repayments of $ 606,400 during the year ended December 31, 2024. The Company realized a $ 733,600 gain on settlement during the year ended December 31, 2024. As of December 31, 2024, the revenue factoring advance had a balance of $ 0 , net an unamortized debt discount of $ 0 . The advance is retired. On February 7, 2024, the Company entered into a revenue factoring advance in the principal amount of $ 822,000 for a purchase price of $ 572,950 . There was an origination fee of $ 27,050 . There were cash proceeds of $ 572,950 during the year ended December 31, 2024. The Company’s Chief Executive Officer was personally liable for this factoring advance. The Company was required to make weekly payments in the amount $ 30,444 through August 2024. The advance matured on August 31, 2024. There was amortization of debt discount of $ 249,050 during the year ended December 31, 2024. The Company made cash repayments of $ 668,556 during the year ended December 31, 2024. There was a gain on settlement $ 153,444 during the year ended December 31, 2024. As of December 31, 2024, the revenue factoring advance had a balance of $ 0 , net an unamortized debt discount of $ 0 . The advance is retired. On February 29, 2024, the Company entered into a revenue factoring advance in the principal amount of $ 559,600 for a purchase price of $ 376,000 . There was an origination fee of $ 24,000 . There were cash proceeds of $ 376,000 during the year ended December 31, 2024. The Company’s Chief Executive Officer was personally liable for this factoring advance. The Company was required to make weekly payments in the amount $ 25,436 through July 2024. The advance matured on July 15, 2024. There was amortization of debt discount of $ 183,600 during the year ended December 31, 2024. The Company made cash repayments of $ 544,745 during the year ended December 31, 2024. There was a gain on settlement $ 14,855 during the year ended December 31, 2024. As of December 31, 2024, the revenue factoring advance had a balance of $ 0 , net an unamortized debt discount of $ 0 . The advance is retired. On March 7, 2024, the Company entered into a revenue factoring advance in the principal amount of $ 1,499,000 for a purchase price of $ 700,000 . There was an origination fee of $ 300,000 . There were cash proceeds of $ 700,000 during the year ended December 31, 2024. The Company’s Chief Executive Officer was personally liable for this factoring advance. The Company was required to make weekly payments in the amount $ 125,000 through June 2024. The advance matured on June 6, 2024. There was amortization of debt discount of $ 799,000 during the year ended December 31, 2024. The Company made cash repayments of $ 1,375,000 during the year ended December 31, 2024. There was a gain on settlement $ 124,000 during the year ended December 31, 2024. As of December 31, 2024, the revenue factoring advance had a balance of $ 0 , net an unamortized debt discount of $ 0 . The advance is retired. On March 7, 2024, the Company entered into a revenue factoring advance in the principal amount of $ 374,750 for a purchase price of $ 225,000 . There was an origination fee of $ 25,000 . There were cash proceeds of $ 225,000 during the year ended December 31, 2024. The Company’s Chief Executive Officer was personally liable for this factoring advance. The Company was required to make weekly payments in the amount $ 23,422 through July 2024. The advance matured on July 7, 2024. There was amortization of debt discount of $ 149,750 during the year ended December 31, 2024. The Company made cash repayments of $ 343,688 during the year ended December 31, 2024. There was a gain on settlement $ 31,062 during the year ended December 31, 2024. As of December 31, 2024, the revenue factoring advance had a balance of $ 0 , net an unamortized debt discount of $ 0 . The advance is retired. 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, 2024and 2023, the Company owed $ 85,000 for Simple Agreements for Future Tokens. F- 19 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 $ 0 and $ 3,182 during the year s ended December 31, 2024 and 2023, re spectively . During the year s ended December 31, 2024 and 2023, the Company made $ 0 and $ 40,000 in payments towards the Resolution Agreement, re spectively . As of December 31, 2024 and 2023, the Resolution Agreement had a balance of $ 0 and $ 0 , net an unamortized debt discount of $ 0 and $ 0 , respectively. 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, 2024 and 2023, the Company made $ 31,330 and $ 27,393 in payments towards the financing agreement, respectively. There was amortization of debt discount of $ 1,792 and $ 1,592 during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the financing agreement had a balance of $ 4,975 and $ 34,312 , net an unamortized debt discount of $ 4,306 and $ 6,298 , 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, 2024 and 2023, the Company made $ 202,747 and $ 354,789 in payments towards the note, respectively. There was amortization of debt discount of 57,294 and $ 72,932 during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the note had a balance of $ 310,476 and $ 455,929 net an unamortized debt discount of $ 49,802 and $ 107,097 , 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 $ 17,903 and $ 16,727 during the years ended December 31, 2024 and 2023, respectively. The Company made interest payments of $ 35,809 and $ 36,985 during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the note had a principal balance of $ 561,324 and $ 579,227 and accrued interest of $ 2,999 and $ 2,991 , 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 $ 17,903 and $ 16,727 during the years ended December 31, 2024 and 2023, respectively. The Company made interest payments of $ 35,809 and $ 36,985 during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the note had a principal balance of $ 561,324 and $ 579,227 and accrued interest of $ 2,999 and $ 2,991 , 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 $ 112,006 and $ 256,797 during the years ended December 31, 2024 and 2023, respectively. There were payments of $ 805,182 and $ 1,374,821 towards the note during the year ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the note had a balance of $ 575,616 , and $ 1,268,792 net an unamortized debt discount of $ 59,478 and $ 171,484 , respectively. F- 20 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 $ 104,107 and $ 102,505 during the years ended December 31, 2024 and 2023, respectively. There were payments of $ 220,860 and $ 390,198 during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the note had a balance of $ 680,674 and $ 797,427 net an unamortized debt discount of $ 247,897 and $ 352,005 , 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 $ 107,423 and $ 103,312 during the years ended December 31, 2024 and 2022, respectively. There were payments of $ 223,759 and $ 396,977 during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the note had a balance of $ 689,613 and $ 805,949 net an unamortized debt discount of $ 249,740 and $ 357,164 , respectively. 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 108,233 and $ 107,589 during the years ended December 31, 2024 and 2023, respectively. There were payments of $ 229,388 and $ 406,295 during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the note had a balance of $ 706,341 and $ 827,495 net an unamortized debt discount of $ 255,835 and $ 364,069 , 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 $ 103,266 and $ 107,434 during the year ended December 31, 2024 and 2023, respectively. There were payments of $ 223,818 and $ 396,167 during the year ended December 31, 2024, and 2023, respectively. As of December 31, 2024 and 2023, the note had a balance of $ 687,948 and $ 1,096,634 net an unamortized debt discount of $ 250101 and $ 353,367 , 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 amortization of debt discount of $ 64,534 and $ 223,518 during the years ended December 31, 2024 and 2023, respectively. There were payments of $ 330,875 and $ 453,820 during the year ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the note had a balance of $ 381,903 and $ 648,244 net an unamortized debt discount of $ 78,419 and $ 142,954 , respectively. 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 $ 67,928 and $ 75,253 during years ended December 31, 2024 and 2023, respectively. There were payments of $ 156,933 and $ 286,983 during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the note had a balance of $ 531,871 and $ 620,876 net an unamortized debt discount of $ 185,515 and $ 277,951 , respectively. F- 21 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 $ 64,812 and $ 182,908 during years ended December 31, 2024 and 2023, respectively. There were payments of $ 232,826 and $ 297,020 during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the note had a balance of $ 346,227 and $ 514,241 net an unamortized debt discount of $ 54,034 and $ 10,779 , respectively. 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 $ 8,733 and $ 21,380 during the years ended December 31, 2024 and 2023, respectively. There were payments of $ 174,746 and $ 224,859 during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the note had a balance of $ 494,748 and $ 660,761 net an unamortized debt discount of 292,226 and $ 300,960 , respectively. 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 $ 41,589 and $ 64,114 during the years ended December 31, 2024 and 2023, respectively. There was amortization of debt discount of $ 3,480 and $ 28,101 during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the note had a balance of $ 145,554 and $ 183,663 net an unamortized debt discount of $ 66,158 and $ 69,638 , respectively. 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 years ended December 31, 2024 and 2023, respectively. On March 29, 2024, the holder of the note exchanged $ 10,000,000 in principal for 1,000 shares of Series D Preferred Stock (see Note 14 – Stockholders’ Equity ). On April 21, 2024, the holder of the note exchanged $ 7,218,350 in principal for 412,360 shares of common stock (see Note 14 – Stockholders’ Equity ). As of December 31, 2024 and 2023, the note had a balance of $ 0 and $ 17,218,350 , respectively. F- 22 On December 2, 2024, the Company entered into a secured promissory note with an entity controlled by the Company’s Chief Executive Officer in the principal amount of $ 11,699,916 . The note was for the purchase of certain land and permits from an entity controlled by the Company’s Chief Executive Officer and is secured by such property. There were non-cash proceeds of $ 11,699,916 used to purchase the land and equipment. The note matures on March 31, 2025 and accrues interest at 10 % per annum. The note requires monthly payments of $ 2,983,309 , however in the event such payment would result in the Company having less than $ 3 million cash on hand, such payment is delayed without penalty until the following month and the maturity date of the note extended. The Company made payments of $ 4,008,057 towards the principal of the note during the year ended December 31, 2024. As of December 31, 2024 and 2023, the note had a principal balance and accrued interest of $ 7,691,859 and $ 0 , respectively. The following table details the current and long-term principal due under non-convertible notes as of December 31, 2024. SCHEDULE OF CURRENT AND LONG TERM PRINCIPAL DUE UNDER NONCONVERTIBLE NOTE Principal (Current) Principal (Long Term) GM Financial (Issued April 11, 2022) $ 9,281 $ - Non-Convertible Note (Issued March 8, 2019) - 5,000 Deed of Trust Note (Issued September 1, 2022) 53,712 507,610 Deed of Trust Note (Issued September 1, 2022) 53,712 507,610 Equipment Finance Note (Issued April 21, 2022) 231,120 129,159 Equipment Finance Note (Issued September 14, 2022) 635,095 - Equipment Finance Note (Issued November 28, 2022) 251,400 677,172 Equipment Finance Note (Issued November 28, 2022) 254,700 684,654 Equipment Finance Note (Issued November 28, 2022) 260,880 701,297 Equipment Finance Note (Issued December 15, 2022) 254,280 683,769 Equipment Finance Note (Issued January 10, 2023) 408,096 52,227 Equipment Finance Note (Issued January 12, 2023) 193,620 548,274 Equipment Finance Note (Issued February 24, 2023) 287,460 499,515 Equipment Finance Note (Issued February 23, 2023) 193,620 98,573 Equipment Finance Note (Issued April 12, 2023) 51,780 159,933 SAFTs - 85,000 DWM Property Note 7,691,859 - Debt Discount ( 633,396 ) ( 1,076,554 ) Total Principal of Non-Convertible Notes $ 10,197,219 $ 4,263,239 Total principal payments due on non-convertible notes for 2025 through 2028 and thereafter is as follows: SCHEDULE OF PRINCIPAL PAYMENTS DUE ON NON-CONVERTIBLE NOTES Year ended December 31, 2025 $ 10,587,781 2026 1,525,409 2027 1,167,811 2028 785,128 Thereafter 2,104,283 F- 23 NOTE 9 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES As of December 31, 2024 and 2023, the Company owed accounts payable and accrued expenses of $ 5,893,351 and $ 6,100,449 , 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, 2024 December 31, 2023 Accounts Payable $ 2,364,398 $ 1,884,973 Credit Cards 25,118 1,756 Accrued Interest 2,439,466 2,074,016 Accrued Expenses 1,064,369 2,139,704 Total Accounts Payable and Accrued Expenses $ 5,893,351 $ 6,100,449 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, 2024 and 2023, the Company owed payroll tax liabilities, including penalties, of $ 3,946,410 and $ 4,089,836 , 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 October 25, 2024, Arena Special Opportunities Fund, LP and other related entities (“Arena”) filed a lawsuit in New York State Court (the “Action”). The complaint for the lawsuit alleges, among other things, a purported breach of contract based on an alleged equity conditions failure. The Company believes that the Action lacks merit. In the event this Action is not summarily dismissed, the Company intends to vigorously defend against it. As previously reported by (‘‘the Company’’), on September 13, 2024, the Company received written notice (the “Notice”) from The Nasdaq Listing Qualification Department (“Nasdaq”) notifying the Company that it was not in compliance with the $ 1.00 minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on the Nasdaq Capital Market (the “Minimum Bid Price Requirement”), as the closing bid price of the Company’s common stock had been below $ 1.00 per share for 30 consecutive business days. The Notice indicated that the Company has 180 calendar days, or until March 12, 2025, to regain compliance with the Minimum Bid Price Requirement. On March 13, 2025, Nasdaq notified the Company that although the Company has not regained compliance with the Minimum Bid Price Requirement, the Company is eligible to receive an additional 180 calendar day period or until September 8, 2025, to regain compliance with the Minimum Bid Price Requirement, pursuant to Nasdaq Listing Rule 5810(a)(3)(A). Nasdaq’s determination to grant the Company an additional 180 calendar day period was based on the Company’s satisfaction of the continued listing requirements for the market value of publicly held shares and all other applicable requirements for initial listing on the Nasdaq Capital Market, with the exception of the Minimum Bid Price Requirement. Additionally, the Company has provided Nasdaq with written notice of its intention to cure the deficiency during the second compliance period, potentially by implementing a reverse stock split, if necessary. If, at any time during this additional compliance period, the closing bid price of the Company’s common stock is at least $1.00 per share for a minimum of 10 consecutive business days, Nasdaq will provide written confirmation of compliance, and this matter will be closed. If compliance cannot be demonstrated by September 8, 2025, Nasdaq will provide written notification that the Company’s securities will be delisted. At that time, the Company may appeal Nasdaq’s determination to a Nasdaq Hearings Panel. F- 24 The Company is currently monitoring the closing bid price of its common stock and will consider available options, including a reverse stock split, if appropriate, to regain compliance with the Minimum Bid Price Requirement by September 8, 2025. There can be no assurance that the Company will be able to regain compliance with the Minimum Bid Price Requirement, even if it maintains compliance with other listing requirements of the Nasdaq Capital Market. NOTE 12 – LEASES Property Leases (Operating Leases) The Company leases its facilities and certain automobiles under operating leases which expire on various dates through 2027. 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. 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. 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, 2030 and the Company has an option to extend the lease by 5 years. 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. Effective April 1, 2024, the aggregate rent was increased to $ 124,970 per month with an additional one-time payment of $ 210,000 . F- 25 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. 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 expired 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 expired 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, 2026 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 expired 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. ROU assets and liabilities consist of the following: SCHEDULE OF ASSETS AND LIABILITIES December 31, 2024 December 31, 2023 ROU assets – related party $ - $ 103,822 ROU assets 1,048,070 198,558 Total ROU assets $ 1,048,070 $ 302,380 Current portion of lease liabilities – related party $ - $ 111,240 Current portion of lease liabilities 331,545 89,731 Long term lease liabilities, net of current portion 773,820 94,943 Total lease liabilities $ 1,105,365 $ 295,914 F- 26 Aggregate minimum future commitments under non-cancelable operating leases and other obligations at December 31, 2024 were as follows: SCHEDULE OF NON CANCELABLE OPERATING LEASES AND OTHER OBLIGATIONS Year ended December 31, 2025 $ 331,545 2026 336,476 2027 312,430 2028 307,482 2029 77,232 Total Minimum Lease Payments $ 1365165 Less: Imputed Interest $ ( 259,800 ) Present Value of Lease Payments $ 1,105,365 Less: Current Portion $ ( 331,545 ) Long Term Portion $ 773,820 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, 2024 and 2023 was $ 1,998,428 and $ 2,263,374 , respectively. At December 31, 2024, the leases had a weighted average remaining lease term of 4 years and a weighted average discount rate of 10 %. NOTE 13 – CONVERTIBLE NOTES PAYABLE 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 $ 225.0 , 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 $29.40. 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. During the year ended December 31, 2023, there was amortization of debt discount of $ 2,219,221 . On August 21, 2023, as a result of the Company’s registered direct offering, the conversion price of the Senior Notes was reduced from $ 225.00 to $ 153.00 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. On March 18, 2024, the Company obtained the waiver of the following covenants from holders of the notes: (i) until September 30, 2024, the Available Cash Test covenant contained in Section 14(t)(i) of the Notes; (ii) the right to receive the Amortization Amount for the next four (4) consecutive Amortization Dates immediately following the date of the waiver, with the aggregate of such Amortization Amounts now instead being due on the Maturity Date; and (iii) notwithstanding anything to the contrary set forth in the Notes, through and including the sixtieth (60) calendar day following the date of the waiver, (A) if the average closing price on the Eligible Market of the Common Stock on the three (3) most recent Trading Days is less than $ 37.50 , the Holder cannot convert the Note into Common Stock and (B) if the average closing price on the Eligible Market of the Common Stock on the three (3) most recent Trading Days is $ 37.50 or greater, there shall be no limitations as to the amount of the Note that may be converted into Common Stock. On March 18, 2024, as a result of the Company’s warrant inducement, the conversion price of the Senior Notes was reduced from $ 153.0 to $ 29.40 per share. During the three and nine months ended September 30, 2024, the Company credited additional paid in capital $ 0 and $ 23,953,940 , respectively, 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 93 %, (3) risk-free interest rate of 5.06 %, and (4) expected life of 1.37 years. On May 3, 2024, the Company entered into an amendment to its senior secured convertible promissory note originally signed July 31, 2023. The amendment, among other things, changed the conversion price of the senior notes to $ 7.50 , subject to certain circumstances described in the Senior Notes along with certain conversion price adjustment mechanism. As a result of the modification, the Company recorded a loss on debt extinguishment for the change in fair value of the conversion option in the amount of $ 16,333,271 On May 9, 2024, the Company and the Investors entered into a Waiver Agreement (the “Waiver Agreement”), pursuant to which the Company and the Investors decided to waive the Conversion Prohibition in the March Consent and Waiver. During the year ended December 31, 2024, there was amortization of debt discount $ 5,901,759 and $ 2,219,221 , respectively. During the year ended December 31, 2024, the Company made cash payments of $ 1,497,083 on the principal of the convertible notes. During the year ended December 31, 2024, holders converted $ 16,502,905 of principal into 2,478,459 shares of common stock with a fair value of $ 30,716,938 (See Note 14 – Stockholder’s Equity ). The Company realized a loss from the conversion premium of $ 14,213,480 on conversion of notes during the year ended December 31, 2024 F- 28 As of December 31, 2024 and 2023, the carrying value of the convertible notes was $ 0 and $ 12,098,241 , net of unamortized debt discount of $ 0 and $ 5,901,759 , respectively. As of December 31, 2024, the current and non-current portions of the note were $ 0 and $ 0 , net unamortized debt discounts of $ 0 and $ 0 , respectively. As of December 31, 2023, the current and non-current portions of the note were $ 8,065,494 and $ 4,032,747 net unamortized debt discounts of $ 3,934,506 and $ 1,967,253 , respectively. NOTE 14 – DERIVATIVE LIABILITIES AND FAIR VALUE MEASUREMENTS On May 16, 2024 as a result of the issuance of additional warrants under the security purchase agreements, the Company no longer had sufficient authorized shares in the event that all potentially dilutive instruments were exercised. As a result, the Company evaluated the warrants issued under ASC 480 and determined that certain warrants no longer qualified as equity instruments and qualify for derivative liability treatment. The Company elected to use a first-in, first-out sequencing method to determine which dilutive instruments met the definition of a derivative liability. The Company estimated the fair value of the initial derivative liability using the Black-Scholes Pricing Model based on the following assumptions: (1) dividend yield of 0 %, (2) expected volatility of 141.83 %, (3) risk-free interest rate of 4.46 %, and (4) expected life of 5 years. The Company estimated the fair value of the derivative liability upon the settlement date using the Black-Scholes Pricing Model based on the following assumptions: (1) dividend yield of 0 %, (2) expected volatility of 159.02 %, (3) risk-free interest rate of 4.52 %, and (4) expected life of 5 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. F- 29 As of December 31, 2024, 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, 2024 and 2023: SCHEDULE OF FAIR VALUE ON A RECURRING BASIS IN THE ACCOMPANYING FINANCIAL STATEMENTS December 31, 2024 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, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative liability $ - $ - $ - $ - 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, 2024: SCHEDULE OF CHANGES IN FAIR VALUE ON THE COMPANY’S LEVEL 3 FINANCIAL LIABILITIES Balance, December 31, 2022 $ - Mark to market to December 31, 2023 - Balance, December 31, 2023 $ - Establishment of derivative liability upon authorized share shortfall 64,951,789 Gain on change in fair value of derivative liability ( 48,314,949 ) Settlement of derivative liability upon correction of authorized share shortfall ( 16,636,840 ) Mark to market to December 31, 2024 - Balance, December 31, 2024 $ - Gain on change in derivative liabilities for the year ended December 31, 2024 $ 48,314,949 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. F- 30 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 D On March 29, 2024, the Company authorized the issuance of 1,000 shares of Series D Preferred Stock, par value $ 0.001 per share (the “Series D”). The Series D has a $ 10,000 stated value per share. The Series D is convertible into the Company’s common stock at $ 30.60 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 Series D in cash or shares of its Common Stock. On March 29, 2024, the Company entered into an exchange agreement with DWM Properties LLC (“DWM”), whereby the Company and DWM agreed to exchange $ 10,000,000 of that certain Secured Promissory Note, dated July 31, 2023, to be issued by the Company to the DWM for shares of the Company’s newly created Series D. On May 10, 2024, the Company entered into an exchange agreement with DWM, whereby the Company and DWM agreed to exchange 1,000 shares of the Company’s Series D issued by the Company to DWM, for 1,333,333 shares of the Company’s common stock. As a result of the transaction, the Series D stock were extinguished. The resulting gain on the transaction of $ 1,224,400 for the difference between the fair value of the common stock and the carrying value of the Series D was recorded as a contribution of capital as the transaction was between related parties. On May 28, 2024, the Company filed a Certificate of Elimination to retire the class of Series D preferred stock. As of December 31, 2024, there were 0 shares of Series D issued and outstanding. 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. 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 . F- 31 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 3,167 shares of common stock. On November 16, 2022, 61 shares of Series Z Preferred Stock were converted into 1,667 shares of common stock. On January 23, 2023, 72 shares of Series Z Preferred Stock were converted into 1,924 shares of common stock. On July 28, 2023, the Company issued 6,757 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, 2024 and 2023, there were 0 and 0 shares of Series Z Preferred Stock issued and outstanding. Series A-1 On November 15, 2024, the Company authorized the issuance of 450,000 shares of Series A-1 Preferred Stock, par value $ 0.001 per share. The Series A-1 Preferred Stock has a $ 1,000 stated value per share and each share is convertible into common stock at 0.0001 % of the then-outstanding shares of common stock at the election of the holder. The Series A-1 have a liquidation preference senior to common, do not bear dividends, and are entitled to vote on an as-converted basis. On December 2, 2024, the Company issued 450,000 shares of Series A-1 Preferred Stock as consideration for land and permits purchased from DWM Properties, LLC, controlled by the Company’s Chief Executive Officer. The value of the shares of Series A-1 was calculated on an as-converted basis at $ 3,300,048 . As of December 31, 2024 and 2023, there were 450,000 and 0 shares of Series A-1 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, 2023, the Company issued 8,680 shares of common stock for the conversion and exchange of 322 shares of Series Z Preferred Stock. During the year ended December 31, 2023, the Company issued 1,840 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 10,343 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 2,410 shares of common stock for the cashless exercise of 2,447 warrants. During the year ended December 31, 2023, the Company issued 16,741 shares of common stock for the sale of common stock for proceeds of $ 2,841,181 , net offering costs of $ 348,000 . During the year ended December 31, 2024, the Company issued 8,149,250 shares of common stock pursuant to purchase agreements for cash proceeds of $ 40,369,115 , net of legal fees and commissions of $ 2,071,451 . During the year ended December 31, 2024, the Company issued 108,515 shares pursuant to the exercise of warrants for cash proceeds of $ 2,834,741 , net of legal fees $ 139,955 . The Company issued extra shares with a value of $ 52,183 . F- 32 During the year ended December 31, 2024, the Company issued 11,807,064 shares pursuant to the cashless exercise of warrants. During the year ended December 31, 2024, the Company issued 155,616 shares as an adjustment to round-up fractional shares for the reverse-split. During the year ended December 31, 2024, the Company issued 1,333,333 shares for the exchange of Series D Preferred Stock. During the year ended December 31, 2024, the Company issued 412,359 shares for the exchange and retirement of a related-party debt note in the principal amount of $ 7,218,350 . During the year ended December 31, 2024, the Company issued 2,890,818 shares of common stock for the conversion of debt in the principal amount of $ 16,502,917 with a fair value of $ 37,953,304 . The Company realized a $ 14,213,480 loss from the conversion premiums on the conversion of the notes. During the year ended December 31, 2024, the Company issued 1,533,333 shares with a value of $ 761,124 , of which $ 761,124 vested and services were performed during the year ended December 31, 2024 and $ 76,875 vested and services will be performed in 2025. As of December 31, 2024 and 2023, there were 26,091,027 and 113,096 shares, respectively, of common stock issued and outstanding. Additional Paid in Capital 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. During the year ended December 31, 2024, the Company credited additional paid in capital $ 3,004,909 for the fair value of warrants issued as commission for its warrant inducement and common stock purchase agreements. 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 122.93 – 162.12 %, (3) risk-free interest rate of 4.21 – 4.66 %, and (4) expected life of 5 years. F- 33 During the year ended December 31, 2024, the Company credited additional paid in capital $ 3,029,927 for the fair value of warrants issued for its warrant inducement. 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 123.05 %, (3) risk-free interest rate of 4.22 %, and (4) expected life of 5 years. During the year ended December 31, 2024, the Company credited additional paid in capital $ 23,943,940 for a deemed dividend for the triggering of certain price protection provisions in the conversion feature of 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 93 %, (3) risk-free interest rate of 5.06 %, and (4) expected life of 1.37 years. During the year ended December 31, 2024, the Company credited additional paid in capital $ 52,574,896 for deemed dividends for the reduction in the exercise price of certain warrants. The Company estimated the fair value of the deemed dividends using the Black-Scholes Pricing Model based on the following assumptions: (1) dividend yield of 0 %, (2) expected volatility of 108.49 – 162.12 %, (3) risk-free interest rate of 4.36 – 4.64 %, and (4) expected life of 5 years. During the year ended December 31, 2024, the Company credited additional paid in capital $ 12,388,229 for the modification of the conversion feature related to then outstanding convertible notes payable. The Company estimated the change in fair value of the conversion feature using the Black-Scholes Pricing Model based on the following assumptions: (1) dividend yield of 0 %, (2) expected volatility of 130.66 %, (3) risk-free interest rate of 5.12 %, and (4) expected life of 1.24 years. On May 16, 2024 as a result of the issuance of additional warrants under the security purchase agreements, the Company no longer had sufficient authorized shares in the event that all potentially dilutive instruments were exercised. The Company accounted for the warrants affected under a sequencing approach as a derivative liability under ASC 815 due to the lack of net share settlement. The Company debited additional paid in capital $ 64,951,789 to establish the derivative liability. Upon the Company enacting the Reverse Stock Split on May 31, 2024, the authorized share shortfall was alleviated and the Company credited additional paid in capital $ 16,636,840 , after the reclassification into equity. See Note 18 for further details NOTE 16 – 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 65,046 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 $ 1,128 and $ 825 per share to $ 225 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 $ 153 , 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. F- 34 During the year ended December 31, 2024, the Company entered into warrant exercise inducement offer letters with the holders of its existing warrants, pursuant to which it issued 106,906 shares of common stock and recorded an additional 1,609 shares to be issued for cash proceeds of $ 2,834,632 , payment of legal fees $ 139,955 , and were issued new warrants to purchase 183,632 shares of common stock at an exercise price of $ 30.6 per share. On March 18, 2024, the Company realized a deemed dividend of $ 1,444,324 for a deemed dividend for the reduction in the exercise price. On March 18, 2024, the Company realized an expense for the issuance of new warrants for the inducement of $ 3,029,927 . During the year ended December 31, 2024, the Company issued 92,442 warrants to purchase common stock to its financial advisor, for which it recognized an expense of $ 3,004,909 for the fair value of the warrants. During the year ended December 31, 2024, and prior to the Reverse Stock Split, the Company issued 3,287,997 warrants to purchase common stock in connection with the security purchase agreements described above. The warrants have a term of 5 years and were granted with exercise prices between $ 30 and $ 45 . As a result of the Reverse Stock Split on May 31, 2024, the Company issued 18,270,405 additional warrants to purchase shares of common stock pursuant to the reverse-split price protection clauses contained within the warrants, such that the exercise price of the warrant would be reset to the volume weighted average price following a reverse-split and the number of shares issuable under the warrant would also increase. . During the year ended December 31, 2024, 15,742,613 warrants were exercised on a cashless basis for 11,807,064 shares of common stock. A summary of the warrant activity for the years ended December 31, 2024 and 2023 is as follows: SCHEDULE OF WARRANT ACTIVITY Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2022 64,774 $ 841.50 4.14 $ 635 Granted 72,076 $ 93.00 Exercised ( 12,790 ) $ 1.50 Cancelled/Exchanged ( 6 ) $ 18.00 Outstanding at December 31, 2023 124,054 $ 133.50 3.99 $ 1,388,582 Granted 27,200,252 $ 2.92 Exercised ( 15,850,421 ) $ 3.10 Cancelled/Exchanged - - Outstanding at December 31, 2024 11,473,885 $ 2.94 4.40 $ - Exercisable at December 31, 2024 11,473,885 $ 2.94 4.40 $ - SCHEDULE OF WARRANT EXERCISABLE Exercise Price Warrants Outstanding Weighted Avg. Remaining Life Warrants Exercisable $ 1.50 688 3.58 688 2.910 10,968,708 4.40 10,968,708 3.64 504,489 4.45 504,489 11,473,885 4.40 11,473,885 The aggregate intrinsic value of outstanding stock warrants was $ 0 based on warrants with an exercise price less than the Company’s stock price of $ 0.7030 as of December 31, 2024 which would have been received by the warrant holders had those holders exercised the warrants as of that date. F- 35 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, our 2023 Equity Incentive Plan in October 2023 (“2023 Plan”), and our 2024 Equity Incentive Plan in May 2024 (“2024 Plan”, and together with the 2014 Plan, 2015 Plan, 2016 Plan, 2017 Plan, 2018 Plan, 2021 Plan, 2022 Plan, and 2023 Plan, the “Plans”). The Plans are identical, except for the number of shares reserved for issuance under each. In July 2024, shareholders amended our 2024 Plan to increase the number of shares reserved for issuance thereunder by 2,980,000 to a total of 3,000,000 shares. As of December 31, 2024, the Company had granted an aggregate of 1,536,602 securities under the Plans since inception, with 1,472,609 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 Prior Plans also provide that the grant of performance stock awards may be paid out in cash as determined by the committee administering the Prior 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 year ended December 31, 2024. A summary of the stock option activity for the years ended December 31, 2024 and 2023 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, 2022 754 $ 23,941.11 4.49 $ - Granted - Exercised - Forfeiture/Cancelled - Outstanding at December 31, 2023 754 $ 23,941.11 3.49 $ - Granted - Exercised - Forfeiture/Cancelled ( 25 ) $ 30.00 Outstanding at December 31, 2024 729 $ 24,761.11 2.47 $ - Exercisable at December 31, 2024 729 $ 24,761.11 2.47 $ - SCHEDULE OF STOCK OUTSTANDING AND EXERCISABLE Exercise Price Number of Options Remaining Life In Years Number of Options Exercisable $ 3,450 – 11,250 288 3.58 288 11,251 – 22,500 58 1.91 58 22,501 – 33,750 64 1.64 64 33,751 – 45,000 288 1.73 288 45,001 – 48,150 31 1.74 31 729 2.47 729 F- 36 The aggregate intrinsic value of outstanding stock options was $ 0 , based on options with an exercise price less than the Company’s stock price of $ 0.7030 as of December 31, 2024, 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 vested during the year ended December 31, 2024 and 2023 was $ 0 and $ 0 , respectively. Unrecognized compensation expense was $ 0 as of December 31, 2024. 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, 2024, the Company has available for income tax purposes of approximately $ 47,264,135 and $ 44,451,544 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 $ 52,204,703 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, 2024, the Company has decreased the valuation allowance from $ 24,097,749 to $ 22,215,116 . 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 stockholders, 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 stockholders 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. 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, 2016. F- 37 The Company’s deferred taxes as of December 31, 2024 and 2023 consist of the following: SCHEDULE OF DEFERRED TAX ASSETS 2024 2023 Deferred Tax Assets/(Liability) Detail Stock Compensation $ 211,969 $ - Amortization - - Depreciation ( 1,332,399 ) 3,556,478 Interest - - Change in Fair Market Value of Derivative Liabilities - - Accrued bonus - 67,500 NOL Deferred Tax Asset 23,144,421 20,473,771 Other 191,125 Valuation allowance ( 22,215,116 ) ( 24,097,749 ) 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. NOTE 19 – RELATED PARTY TRANSACTIONS Agreements with Danny Meeks and Affiliates of Danny Meeks Leases for Properties Underlying Scrap Yards 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. During the years ended December 31, 2024 and 2023, the Company leased 12 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 for $ 1,502,830 and $ 1,640,912 , respectively. As of December 31, 2024 and December 31, 2023, the Company owed $ 495,354 and $ 2,070,402 , respectively, in accrued rent and reimbursements to an entity controlled by the Company’s Chief Executive Officer. Retirement of Series Z Preferred On July 28, 2023, the Company issued 6,757 shares of common stock to the Company’s Chief Executive Officer for the exchange of 250 shares of Series Z preferred stock. Assignment of Note Concurrent with Senior Secured Debt Placement 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. F- 38 Sale of Shredders and Downstream System to the Company 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 years ended December 31, 2024 and 2023, respectively. On March 29, 2024, the holder of the note exchanged $ 10,000,000 in principal for 1,000 shares of Series D Preferred Stock (see Note 14 – Stockholders’ Equity ). On April 21, 2024, the holder of the note exchanged $ 7,218,350 in principal for 412,360 shares of common stock (see Note 14 – Stockholders’ Equity ). As of December 31, 2024 and 2023, the note had a balance of $ 0 and $ 17,218,350 , respectively. On May 10, 2024, the Company entered into an exchange agreement with DWM, whereby the Company and DWM agreed to exchange 1,000 shares of the Company’s Series D issued by the Company to DWM, for 1,333,333 shares of the Company’s common stock. As a result of the transaction, the Series D stock was extinguished. The resulting gain on the transaction of $ 1,224,400 for the difference between the fair value of the common stock and the carrying value of the Series D was recorded as a contribution of capital as the transaction was between related parties. Sale of Equipment to the Company On June 5, 2024, the Company entered into a Bill of Sale with DWM Properties LLC, an entity wholly-owned by Danny Meeks, the Company’s Chief Executive Officer, pursuant to which the Company agreed to purchase certain vehicles held by DWM in exchange for $ 3,582,181 . The equipment included 27 trucks which enabled the Company to rapidly expand its fleet of trucks offering hauling services to clients, as well as transporting its scrap metal products to customers. The Company has recorded the equipment on its financial statements at its cost basis. Sale of Properties Underlying Scrap Yards to the Company On December 2, 2024, the Company entered into a Contract of Sale (the “Contract of Sale”) with DWM Properties LLC (“DWM”), KPAJ, LLC and Oceana Salvage Properties, L.L.C. (collectively, the “Sellers”), in each case, an entity affiliated with Danny Meeks, the Company’s Chief Executive Officer, pursuant to which the Company agreed to purchase the Premises (as defined in the Contract of Sale) held by the Sellers for an aggregate purchase price of $ 15,000,000 , to be allocated among the seven parcels comprising the Premises and the Licenses and Permits (as defined in the Contract of Sale), as more fully described in the Contract of Sale. The transaction closed on December 2, 2024. The purchase price is payable by (i) the issuance of an aggregate of 450,000 shares of Series A-1 Preferred Stock of the Company, par value $ 0.001 per share (the “Preferred Stock”), to the Sellers at an aggregate valuation of $ 3,300,084 and (ii) the issuance of a promissory note payable to DWM (the “DWM Note”) in the aggregate principal amount of $ 11,699,916 . The DWM Note bears interest at a rate of 10 % per annum, and is payable in equal installments of $ 2,983,309 on each of December 31, 2024, January 31, 2025, February 28, 2025 and March 31, 2025 (each, a “Payment Date”); provided, that if payment on a Payment Date would cause the Company’s cash balance to be less than $ 3,000,000 , then such Payment Date and each subsequent Payment Date shall be extended by 30 days. The Company shall make all payments owed under the DWM Note within 12 months from the date of issuance. In addition, if the Company exercises a 30 day extension of any payment, the Company is required to furnish to DWM such financial information and data as DWM may reasonably request to confirm the Company’s cash balance. T he Company made payments of $ 4,008,057 towards the principal, during the year ended December 31, 2024. As of December 31, 2024 and 2023, the note had a principal balance and accrued interest of $ 7,691,859 and $ 0 , respectively. Related-Party Hauling, Mechanic, Equipment Rental, and Miscellaneous Services During the years ended December 31, 2024 and 2023, the Company provided $ 850,737 and $ 68,485 , respectively, in hauling services to an entity controlled by the Company’s Chief Executive Officer. During the years ended December 31, 2024 and 2023, the Company paid an entity controlled by the Company’s Chief Executive Officer $ 1,396,330 and $ 409,556 , respectively, for hauling services rendered to the Company. During the year ended December 31, 2024, the Company paid entities controlled by the Company’s Chief Executive Officer $ 147,401 for scrap metal provided to the Company. During the year ended December 31, 2024, the Company paid an entity controlled by the Company’s Chief Executive Officer $ 847,326 for mechanic and repair services provided to the Company. F- 39 During the year ended December 31, 2024, the Company paid an entity controlled by the Company’s Chief Executive Officer $ 506,358 for equipment rentals provided 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. Insurance Payment Made on Behalf of the Company 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. NOTE 20 – SEGMENT REPORTING Greenwave is organized into three operating segments based on our differentiated products – Scrap Metal Recycling, Hauling, and Other (primarily comprised of rental income). We have one reportable geographic segment: the United States of America as all of our scrap metal is sourced domestically. Our CODM, Danny Meeks, Chairman and CEO, evaluates performance on an operating segment basis, as well as a consolidated basis, based on revenues and operating cashflows. This measure is used by our CODM, management, investors, lenders and other external users of our financial statements to assess our operating performance and to compare operating performance to other companies in the metal recycling industry. Our CODM utilizes segment profit and loss in assessing segment performance and allocating resources. The following tables provide our results by segment: SCHEDULE OF SEGMENT REPORTING Scrap Metal Recycling Hauling Other Total Year Ended December 31, 2024 Scrap Metal Recycling Hauling Other Total Revenues $ 23,296,239 $ 9,881,820 $ 137,800 $ 33,315,859 Cost of revenues ( 14,508,923 ) ( 5,817,458 ) - ( 20,326,381 ) Gross Profit: $ 8,787,316 $ 4,064,362 $ 137,800 $ 12,989,478 Operating Expenses $ ( 47,251,411 ) Other Income 10,344,580 Deemed Dividends ( 76,528,836 ) Net loss available to common shareholders $ ( 100,446,189 ) Scrap Metal Recycling Hauling Other Total Year Ended December 31, 2023 Scrap Metal Recycling Hauling Other Total Revenues $ 25,350,883 $ 10,156,938 $ 160,161 $ 35,667,982 Cost of revenues ( 16,154,529 ) ( 4,996,871 ) ( 33,179 ) ( 21,184,579 ) Gross Profit: $ 9,196,354 $ 5,160,067 $ 126,982 $ 14,483,403 Operating Expenses $ ( 33,998,165 ) Other Loss ( 7,421,228 ) Deemed Dividends ( 6,661,152 ) Net loss available to common shareholders $ ( 33,597,142 ) F- 40 NOTE 21 – SUBSEQUENT EVENTS On January 8, 2025, the Company issued 729,826 shares of common stock for the cashless exchange of warrants. On January 10, 2025, the Company and certain institutional and accredited investors entered into a securities purchase agreement, pursuant to which the Company agreed to sell to such Purchasers an aggregate of 7,544,323 shares of common stock, par value $ 0.001 per share, of the Company, in a registered direct offering, and accompanying warrants to purchase up to 7,544,323 shares of Common Stock in a concurrent private placement for gross proceeds of approximately $ 4 million, before deducting the placement agent’s fees and other estimated offering expenses. The purchase price per Share and the accompanying Warrant to purchase one share of Common Stock is $ 0.5302 . Concurrently with the January Offering, on January 10, 2025, the Company entered into exchange agreements (collectively, the “Exchange Agreements”) with holders (the “June Holders”) of certain warrants issued on or about June 12, 2024 to purchase the Company’s Common Stock (the “June Warrants”) whereby the Company and the June Holders agreed to exchange the June Warrants for shares of common stock equivalent to 96% of the shares of common stock issuable upon exercise of the June Warrants (the “Exchange”). Pursuant to the Exchange, the Company issued 5,327,401 shares of common stock (the “Exchange Shares”) in exchange for the surrender and termination of certain June Warrants to purchase up to 5,549,374 shares of common stock. Concurrently with the January Offering, on January 10, 2025, the Company and the holders (the “Existing Holders”) of certain warrants issued on or about (a) March 18, 2024 (the “March Warrants”), (b) April 22, 2024 (the “April Warrants”), and (c) May 16, 2024 (the “May Warrants” and together with the March Warrants and the April Warrants, the “Existing Warrants”), agreed to amend the Existing Warrants (collectively, the “Warrant Amendment”). The Warrant Amendment amended the Existing Warrants to (i) reduce the exercise price of the Existing Warrants from $ 2.91 to $ 1.50 per share, (ii) increase the number of shares issuable upon exercise of the Existing Warrants by 250% (the “Quantity Adjustment”), and (iii) to remove certain adjustment provisions in the Existing Warrants in the event of certain dilutive issuances or share combinations. Following the Warrant Amendment, the Existing Warrants are exercisable for 11,346,743 shares of common stock. The shares of common stock issuable upon exercise of the Existing Warrants pursuant to the Quantity Adjustment and the alternative cashless exercise provision pursuant to Section 2(c) of the Existing Warrants are subject to stockholder approval. On January 28, 2025, the Company increased the number of directors comprising its Board of Directors from four to five members and appointed Lisa Lucas-Burke as a member of the Board and as a member of the Audit Committee, Compensation Committee, and Nomination and Corporate Governance Committee, effective immediately. On February 10, 2025, the Company and certain institutional and accredited investors entered into a securities purchase agreement Purchase Agreement pursuant to which the Company agreed to sell to such Purchasers an aggregate of 21,100,000 shares of common stock, par value $ 0.001 per share, of the Company, in a registered direct offering, and accompanying warrants to purchase up to 21,100,000 shares of Common Stock in a concurrent private placement, for gross proceeds of approximately $ 7 million, before deducting the placement agent’s fees and other estimated offering expenses. The purchase price per Share and the accompanying Warrant to purchase one share of Common Stock is $ 0.3337 . A stockholder elected to hold 4,000,000 shares of common shares purchased under the Purchase Agreement in abeyance. Effective February 14, 2025, Henry Sicignano III, a Director of the Company, notified the Company that he will resign from the Company’s Board of Directors (the “Board”). Mr. Sicignano’s resignation is not the result of a dispute or disagreement with the Company. Mr. Sicignano served as Chairman of the Company’s Audit Committee and as a member of the Company’s Compensation Committee and Nominating and Corporate Governance Committee. On March 11, 2025, the Company issued 376,932 shares of common stock for services rendered to the Company. As previously reported by (the Company), on September 13, 2024, the Company received written notice (the “Notice”) from The Nasdaq Listing Qualification Department (“Nasdaq”) notifying the Company that it was not in compliance with the $ 1.00 minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on the Nasdaq Capital Market (the “Minimum Bid Price Requirement”), as the closing bid price of the Company’s common stock had been below $ 1.00 per share for 30 consecutive business days. The Notice indicated that the Company has 180 calendar days, or until March 12, 2025, to regain compliance with the Minimum Bid Price Requirement. On March 13, 2025, Nasdaq notified the Company that although the Company has not regained compliance with the Minimum Bid Price Requirement, the Company is eligible to receive an additional 180 calendar day period or until September 8, 2025, to regain compliance with the Minimum Bid Price Requirement, pursuant to Nasdaq Listing Rule 5810(a)(3)(A). From January 1 to April 15, 2025, the Company made $ 2,604,000 payments on the related-party non-convertible note issued to an entity controlled by Greenwave’s Chairman and Chief Executive Officer for the December 2024 land and permit purchase. On April 10, 2025, Jason Adelman provided the Board with his formal resignation from the Board and all committees thereof, effective immediately. Mr. Adelman was a member of the Board’s Compensation, Audit, and Nomination and Corporate Governance Committees. Mr. Adelman’s decision to resign was not due to any disagreement with the Company on any matter relating to the Company’s operations, policies or practices (financial or otherwise). On April 12, 2025, the Company terminated the employment of Isaac Dietrich, the Company’s Chief Financial Officer, effective April 11, 2025. F- 41