What changed in this filing

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Item 1A. Risk Factors

2021-02-16 compared with 2020-03-09 · 299 added, 152 removed, 8 unchanged (98% of the section changed)

HAVE A LIMITED HISTORY OF LOSSES AND HAVE NEVER REALIZED REVENUES TO DATE.

inception, we have incurred losses and have negative cash flows from operations and have realized only minimal revenues.

From inception through December 31, 2019, we have an accumulated deficit of $24,530,841.

These factors, among others discussed

in Note (1) to the financial statements included in this Annual Report, raise substantial doubt about our ability to continue

as a going concern.

Risks Related to Our Business and

operating history does not afford investors a sufficient history on which to base an investment decision.

were formed in April 2006 and are currently developing a new technology that has not yet gained market acceptance.

no assurance that at this time we will operate profitably or that we will have adequate working capital to meet our obligations

as they become due.

must consider the risks and difficulties frequently encountered by early stage companies, particularly in rapidly evolving markets.

Such risks include the following:

need for acceptance of products;

ability to continue to develop and extend brand identity;

ability to anticipate and adapt to a competitive market;

ability to effectively manage rapidly expanding operations;

amount and timing of operating costs and capital expenditures relating to expansion of our business, operations, and infrastructure;

dependence upon key personnel.

cannot be certain that our business strategy will be successful or that we will successfully address these risks.

that we do not successfully address these risks, our business, prospects, financial condition, and results of operations could

be materially and adversely affected and we may have to curtail our business.

a history of losses and have never realized revenues to date.

We expect to continue to incur losses and no assurance can be given

that we will realize revenues.

Accordingly, we may never achieve and sustain profitability.

of December 31, 2020, we have an accumulated deficit, of $151,914,888.

For the year ended December 3,2020, we incurred a net loss

of 140,544,660.

We expect to continue to incur net losses until we are able to realize revenues to fund our continuing operations.

2 unchanged sentences

assurance of when, if ever, we will be profitable or be able to maintain profitability.

ARE A DEVELOPMENT STAGE COMPANY AND MAY BE UNABLE TO MANAGE OUR GROWTH OR IMPLEMENT OUR EXPANSION STRATEGY IF WE ARE ABLE TO LAUNCH

OUR PRODUCT AND SERVICE OFFERINGS.

are a development stage company that was formed on April 24, 2006 and may not be able to launch our product and service offerings

or implement the other features of our business strategy at the rate or to the extent presently planned.

If we are able to launch

our product and service offerings, our projected growth will place a significant strain on our administrative, operational and

financial resources.

If we are unable to successfully manage our future growth, establish and upgrade our operating and financial

control systems, recruit and hire necessary personnel or effectively manage unexpected expansion difficulties, our financial condition

and results of operations could be materially and adversely affected.

MAY NOT BE ABLE TO SUCCESSFULLY DEVELOP AND COMMERCIALIZE OUR TECHNOLOGIES WHICH WOULD RESULT IN CONTINUED LOSSES.

we have made progress in the development of our products, we have generated only minimal revenues and are unable to project when

we will achieve profitability, if at all.

As is the case with any new technology, we are a development stage company and expect

the development process to continue.

We may not be able to develop our product offering, develop a customer base and markets,

or implement the other features of our business strategy at the rate or to the extent presently planned.

Growth beyond the product

development stage will place a significant strain on our administrative, operational and financial resources.

In addition, our

operations will not be able to move out of the development stage without additional funding.

REVENUES ARE DEPENDENT UPON ACCEPTANCE OF OUR PRODUCTS BY THE MARKET;

THE FAILURE OF WHICH WOULD CAUSE TO CURTAIL OR CEASE OPERATIONS.

have historically raised funds through various capital raising transactions.

We will require additional funds in the future to

fund our business plans, either through additional equity or debt financings or collaborative agreements or from other sources.

We have no commitments to obtain such additional financing, and we may not be able to obtain any such additional financing on terms

favorable to us, or at all.

In the event we are unable to obtain additional financing, we may be unable to implement our business

Even with such financing, we have a history of operating losses and there can be no assurance that we will ever become profitable.

unable to manage our growth or implement our expansion strategy.

We may not be able

to develop our product or implement the other features of our business strategy at the rate or to the extent presently planned.

Our projected growth will place a significant strain on our administrative, operational and financial resources.

If we are unable

to successfully manage our future growth, establish and continue to upgrade our operating and financial control systems, recruit

and hire necessary personnel or effectively manage unexpected expansion difficulties, our financial condition and results of operations

could be materially and adversely affected.

will be dependent upon acceptance of our products by the market;

the failure of which would cause us to curtail or cease operations.

believe that virtually all of our revenues will come from the sale or license of our products.

As a result, we will continue to

incur substantial operating losses until such time as we are able to sell and license our products and generate revenue.

can be no assurance that businesses and customers will adopt our technology and products, or that businesses and prospective customers

will agree to pay for or license our products.

In the event that we are not able to significantly increase the number of customers

that purchase or license our products, or if we are unable to charge the necessary prices or license fees, our financial condition

and results of operations will be materially and adversely affected.

DO NOT MAINTAIN THEFT OR CASUALTY INSURANCE, AND ONLY MAINTAIN MODEST LIABILITY AND PROPERTY INSURANCE COVERAGE AND THEREFORE

WE COULD INCUR LOSSES AS A RESULT OF AN UNINSURED LOSS.

do not maintain theft or casualty insurance and we have modest liability and property insurance coverage.

We cannot assure you

that we will not incur uninsured liabilities and losses as a result of the conduct of our business.

Any such uninsured loss or

liability could have a material adverse effect on our results of operations.

WE LOSE KEY EMPLOYEES AND CONSULTANTS OR ARE UNABLE TO ATTRACT OR RETAIN QUALIFIED PERSONNEL, OUR BUSINESS COULD SUFFER.

success is highly dependent on our ability to attract and retain qualified scientific, engineering and management personnel.

are highly dependent on our sole officer, Dr.

David Lee, who has been critical to the development of our technologies and business.

The loss of the services of Dr.

Lee could have a material adverse effect on our operations.

We do not have an employment agreement

Lee and do not maintain key man insurance with respect to Dr.

Accordingly, there can be no assurance that he

will remain associated with us.

His efforts will be critical to us as we continue to develop our technology and as we attempt

to transition from a development stage company to a company with commercialized products and services.

If we were to lose Dr.

Lee, or any other key employees or consultants, we may experience difficulties in competing effectively, developing our technology

and implementing our business strategies.

LOSS OF STRATEGIC RELATIONSHIPS USED IN THE DEVELOPMENT OF OUR PRODUCTS AND TECHNOLOGY COULD IMPEDE OUR ABILITY TO COMPLETE OUR

may rely on strategic relationships with technology development partners to provide personnel, and expertise in the research and

development of our technology and manufacturing process underlying our product.

A loss of these relationships for any reason could

cause us to experience difficulties in completing the development of our product and implementing our business strategy.

can be no assurance that we could establish other relationships of adequate expertise in a timely manner or at all.

CURRENT AND POTENTIAL COMPETITORS, SOME OF WHOM HAVE GREATER RESOURCES THAN WE DO, MAY DEVELOP PRODUCTS AND TECHNOLOGIES THAT

MAY CAUSE DEMAND FOR, AND THE PRICES OF, OUR PRODUCTS TO DECLINE.

there are a number of companies manufacturing components for PV devices and electrical energy storage devices, we do not know

of any employing the use of bio-based materials or polymer-based supercapacitor designs.

We may face competition from these companies

as they may expand or combine with other combines to extend their product offering to incorporate bio-based materials.

other companies may enter our markets by acquiring or entering into strategic relationships with our competitors.

potential competitors have established, or may establish, cooperative relationships among themselves or with third parties to

increase the abilities of their PV components to address the needs of our prospective customers.

of our current and potential competitors have longer operating histories, significantly greater financial, technical, product

development and marketing resources, greater name recognition and larger customer bases than we do.

Our present or future competitors

may be able to develop products comparable or superior to those we offer, adapt more quickly than we do to new technologies, evolving

industry trends and standards or customer requirements, or devote greater resources to the development, promotion and sale of

their products than we do.

Accordingly, we may not be able to compete effectively in our markets, competition may intensify and

future competition may harm our business.

ARE CONTROLLED BY CURRENT OFFICERS, DIRECTORS AND PRINCIPAL STOCKHOLDERS.

directors, executive officers and principal stockholders and their affiliates beneficially own approximately 15.6% of the outstanding

shares of our common stock as of December 31, 2019.

Accordingly, our executive officers, directors, principal stockholders and

certain of their affiliates will have the ability to control the election of our Board of Directors and the outcome of matters

submitted to a vote of our stockholders.

Related to Our Common Stock

THERE IS A LIMITED MARKET IN OUR COMMON STOCK, STOCKHOLDERS MAY HAVE DIFFICULTY IN SELLING OUR COMMON STOCK AND OUR COMMON STOCK

MAY BE SUBJECT TO SIGNIFICANT PRICE SWINGS.

is a very limited market for our common stock.

Since trading commenced in February 2007, there has been little activity in our

common stock and on some days, there is no trading in our common stock.

Because of the limited market for our common stock, the

purchase or sale of a relatively small number of shares may have an exaggerated effect on the market price for our common stock.

We cannot assure stockholders that they will be able to sell common stock or, that if they are able to sell their shares, that

they will be able to sell the shares in any significant quantity at the quoted price.

WE FAIL TO REMAIN CURRENT ON OUR REPORTING REQUIREMENTS, WE COULD BE REMOVED FROM THE OTC BULLETIN BOARD WHICH WOULD LIMIT THE

ABILITY OF BROKER-DEALERS TO SELL OUR SECURITIES AND THE ABILITY OF STOCKHOLDERS TO SELL THEIR SECURITIES IN THE SECONDARY MARKET.

traded on the OTCQB must be registered with the Securities and Exchange Commission and the issuer must be current with its filings

pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1933, as amended in order to maintain price quotation privileges

on the OTCQB.

If we fail to remain current in our reporting requirements, we could be removed from the OTCQB.

As a result, the

market liquidity for our securities could be severely adversely affected by limiting the ability of broker-dealers to sell our

securities and the ability of stockholders to sell their securities in the secondary market.

In addition, we may be unable to

get re-listed on the OTCQB, which may have an adverse material effect on our Company.

COMMON STOCK IS SUBJECT TO THE “PENNY STOCK”

RULES OF THE SEC AND THE TRADING MARKET IN OUR SECURITIES IS LIMITED,

WHICH MAKES TRANSACTIONS IN OUR STOCK CUMBERSOME AND MAY REDUCE THE VALUE OF AN INVESTMENT IN OUR STOCK.

Securities and Exchange Commission has adopted Rule 15g-9 which establishes the definition of a “penny stock,”

the purposes relevant to us, as any equity security that has a market price of less than $5.00 per share or with an exercise price

of less than $5.00 per share, subject to certain exceptions.

For any transaction involving a penny stock, unless exempt, the rules

a broker or dealer approve a person’s account for transactions in penny stocks;

broker or dealer receives from the investor a written agreement to the transaction, setting forth the identity and quantity

of the penny stock to be purchased.

order to approve a person’s account for transactions in penny stocks, the broker or dealer must:

financial information and investment experience objectives of the person;

a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient

knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks.

broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the Commission

relating to the penny stock market, which, in highlight form:

forth the basis on which the broker or dealer made the suitability determination;

the broker or dealer received a signed, written agreement from the investor prior to the transaction.

brokers may be less willing to execute transactions in securities subject to the “penny stock”

This may make

it more difficult for investors to dispose of our common stock and cause a decline in the market value of our stock.

also has to be made about the risks of investing in penny stocks in both public offerings and in secondary trading and about the

commissions payable to both the broker-dealer and the registered representative, current quotations for the securities and the

rights and remedies available to an investor in cases of fraud in penny stock transactions.

Finally, monthly statements have to

be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny

DO NOT EXPECT TO PAY DIVIDENDS IN THE FUTURE;

ANY RETURN ON INVESTMENT MAY BE LIMITED TO THE VALUE OF OUR COMMON STOCK.

do not currently anticipate paying cash dividends in the foreseeable future.

The payment of dividends on our Common Stock will

depend on earnings, financial condition and other business and economic factors affecting it at such time as the board of directors

may consider relevant.

Our current intention is to apply net earnings, if any, in the foreseeable future to increasing our capital

base and development and marketing efforts.

There can be no assurance that the Company will ever have sufficient earnings to declare

and pay dividends to the holders of our Common Stock, and in any event, a decision to declare and pay dividends is at the sole

discretion of the our Board of Directors.

If we do not pay dividends, our Common Stock may be less valuable because a return on

your investment will only occur if its stock price appreciates.

headquarters are located at 27936 Lost Canyon Road, Suite 202, Santa Clarita, California 91387.

We lease our facility under a

month to month lease without an expiration date.

incur substantial operating losses until such time as we are able to develop our product and generate revenues from the sale or

license of our products.

There can be no assurance that businesses and customers will adopt our technology and products, or that

businesses and prospective customers will agree to pay for or license our products.

Our technology and product, when fully developed,

may not gain market acceptance due to various factors such as not enough cost savings between our method of producing hydrogen

and other more conventional methods.

In the event that we are not able to significantly increase the number of customers that purchase

or license our products, or if we are unable to charge the necessary prices or license fees, our financial condition and results

of operations will be materially and adversely affected.

We may not be able to successfully develop

and commercialize our technologies which would result in continued losses.

While we have made progress

in the development of our products, we have generated only minimal revenues and are unable to project when we will achieve profitability,

As is the case with any new technology, we are a development stage company and expect the development process to continue.

We may not be able to develop our product offering, develop a customer base and markets, or implement the other features of our

business strategy at the rate or to the extent presently planned.

Growth beyond the product development stage will place a significant

strain on our administrative, operational and financial resources.

In addition, our operations will not be able to move out

of the development stage without additional funding.

intense competition, and many of our competitors have substantially greater resources than we do.

operate in a competitive environment that is characterized by price fluctuation and technological change.

We will compete with

major international and domestic companies.

Some of our current and future potential competitors may have greater market recognition

and customer bases, longer operating histories and substantially greater financial, technical, marketing, distribution, purchasing,

manufacturing, personnel and other resources than we do.

In addition, competitors may be developing similar technologies with a

cost similar to, or lower than, our projected costs.

As a result, they may be able to respond more quickly to changing customer

demands or to devote greater resources to the development, promotion and sales of solar and solar-related products than we can.

business plan relies on sales of our products based on either a demand for truly renewable clean hydrogen or economically produced

clean hydrogen.

If we fail to compete successfully, our business would suffer and we may lose or be unable to gain market share.

Neither the demand for our product nor our ability to manufacture have yet been proven.

believe that our ability to compete depends in part on a number of factors outside of our control, including:

the ability of our competitors to hire, retain and motivate qualified personnel;

the ownership by competitors of proprietary tools to customize systems to the needs of a particular customer;

the price at which others offer comparable services and equipment;

the extent of our competitors’

responsiveness to customer needs;

installation technology.

There can be no assurance

that we will be able to compete successfully against current and future competitors.

If we are unable to compete effectively, or

if competition results in a deterioration of market conditions, our business and results of operations would be adversely affected.

depends on proprietary technology that we may not be able to protect and may infringe on the intellectual property rights of others.

Our success will depend,

in part, on our technology’s commercial viability and on the strength of our intellectual property rights.

We currently hold

a patent in the US, but still have a patent pending in the US.

There is no guarantee the pending patent will be granted.

any agreements we enter into with our employees, consultants, advisors, customers and strategic partners will contain restrictions

on the disclosure and use of trade secrets, inventions and confidential information relating to our technology may not provide

meaningful protection in the event of unauthorized use or disclosure.

parties may assert that our technology, or the products we, our customers or partners commercialize using our technology, infringes

upon their proprietary rights.

We have yet to complete an infringement analysis and, even if such an analysis were available at

the current time, it is virtually impossible for us to be certain that no infringement exists, particularly in our case where our

products have not yet been fully developed.

may need to acquire licenses from third parties in order to avoid infringement.

Any required license may not be available to us

on acceptable terms, or at all.

could incur substantial costs in defending ourselves in suits brought against us for alleged infringement of another party’s

intellectual property rights as well as in enforcing our rights against others, and if we are found to infringe, the manufacture,

sale and use of our or our customers’

or partners’

products could be enjoined.

Any claims against us, with or without

merit, would likely be time-consuming, requiring our management team to dedicate substantial time to addressing the issues presented.

Furthermore, the parties bringing claims may have greater resources than we do.

maintain theft or casualty insurance and only maintain modest liability and property insurance coverage and therefore, we could

incur losses as a result of an uninsured loss.

do not maintain theft, casualty insurance, or property insurance coverage.

We cannot assure that we will not incur uninsured liabilities

and losses as a result of the conduct of our business.

Any such uninsured or insured loss or liability could have a material adverse

effect on our results of operations.

key employees and consultants or are unable to attract or retain qualified personnel, our business could suffer.

Our success is highly

dependent on our ability to attract and retain qualified scientific, engineering and management personnel.

We are highly dependent

on our CEO, David Lee.

The loss of Mr.

Lee’s service could have a material adverse effect on our operations.

is employed on “at will”

Accordingly, there can be no assurance that he will remain associated with us.

management’s efforts will be critical to us as we continue to develop our technology and as we attempt to transition from

a development stage company to a company with commercialized products and services.

If we were to lose Mr.

Lee’s or the services

of the development team at UCLA, or the services of the consultants, we may experience difficulties in competing effectively, developing

our technology and implementing our business strategies.

The loss of strategic alliances used

in the development of our products and technology could impede our ability to complete our product and result in a material adverse

effect causing the business to suffer.

pursue strategic alliances with other companies in areas where collaboration can produce technological and industry advancement.

have entered into the sponsored research agreement with The Regents of the University of California

on Behalf of its Los Angeles Campus which is set to terminate December 31, 2021.

If we are unable to extend the terms of the agreements,

we could suffer delays in product development or other operational difficulties which could have a material adverse effect on our

results of operations.

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

independent public accounting firm in their report dated February 16, 2021 included an explanatory paragraph expressing

substantial doubt in our ability to continue as a going concern without additional capital becoming available.

Going concern

contemplates the realization of assets and the satisfaction of liabilities in the normal course of business over a reasonable

length of time.

Our ability to continue as a going concern ultimately is dependent on our ability to generate a profit which

is dependent upon our ability to obtain additional equity or debt financing, attain further operating efficiencies and,

ultimately, to achieve profitable operations.

As a result, our financial statements do not reflect any adjustment which would

result from our failure to continue to operate as a going concern.

Any such adjustment, if necessary, would materially affect

the value of our assets.

The Covid-19 pandemic may negatively

affect our operations.

The COVID-19 pandemic

is having widespread, rapidly evolving, and unpredictable impacts on global society, economies, financial markets, and business

The continuing impacts of COVID-19 are highly unpredictable and could be significant, and may have an adverse effect

on our business, operations and our future financial performance.

The impact of the pandemic

on our business, operations and future financial performance could include, but is not limited to, that:

We may experience delays in our product development;

The rapid and broad-based shift to a remote working environment creates inherent productivity, connectivity, and oversight challenges.

Volatility in the equity markets could affect the value of our equity to shareholders and have an impact on our ability to raise capital.

Risks Related to Our Common

a limited trading market for our common stock.

Our common stock is

not listed on any national securities exchange.

Accordingly, investors may find it more difficult to buy and sell our shares than

if our common stock was traded on an exchange.

Although our common stock is quoted on the OTC Pink, it is an unorganized, inter-dealer,

over-the-counter market which provides significantly less liquidity than the Nasdaq Capital Market or other national securities

Further, there is limited trading in our common stock.

These factors may have an adverse impact on the trading and price

of our common stock.

stock could be subject to extreme volatility.

trading price of our common stock may be affected by a number of factors, including events described in the risk factors set forth

in this prospectus, as well as our operating results, financial condition and other events or factors.

In addition to the uncertainties

relating to future operating performance and the profitability of operations, factors such as variations in interim financial results

or various, as yet unpredictable, factors, many of which are beyond our control, may have a negative effect on the market price

of our common stock.

In recent years, broad stock market indices, in general, and smaller capitalization companies, in particular,

have experienced substantial price fluctuations.

In a volatile market, we may experience wide fluctuations in the market price

of our common stock and wide bid-ask spreads.

These fluctuations may have a negative effect on the market price of our common stock.

In addition, the securities market has, from time to time, experienced significant price and volume fluctuations that are not related to

the operating performance of particular companies.

These market fluctuations may also materially and adversely affect the market

price of our common stock.

There is a large number of authorized

but unissued shares of capital stock available for issuance, which may result in substantial dilution to existing shareholders.

articles of Incorporation authorized the issuance of up to 3,000,000,000 shares of common stock, and 10,000,000 shares of preferred

stock, par value $0.0001, of which 474,286,424 shares of common stock and 1,000 shares of Series B Preferred Stock are stock are

outstanding as of January 22, 2021 (excluding shares issuable upon conversion or exercise of outstanding convertible notes, options

and warrants).

Subject to our total authorized shares, our Board of Directors has the ability to authorize the issuance of additional

shares of common stock and preferred stock without shareholder approval.

Such issuances will result in substantial dilution to

existing shareholders.

In addition, the availability of such a large number of capital stock could be utilized, under certain circumstances,

as a method of discouraging, delaying or preventing a change in control of the Company.

Further, our issuance of common stock upon

conversion or exercise of outstanding convertible notes, warrants, and options may result in substantial dilution to our stockholders,

which may have a negative effect on the price of our common stock.

never paid common stock dividends and have no plans to pay dividends in the future, as a result our common stock may be less valuable

because a return on an investor’s investment will only occur if our stock price appreciates.

of shares of our common stock are entitled to receive such dividends as may be declared by our Board of Directors.

have paid no cash dividends on our shares of common stock and we do not expect to pay cash dividends on our common stock in the

foreseeable future.

We intend to retain future earnings, if any, to provide funds for operations of our business.

Therefore, any

return investors in our common stock will be in the form of appreciation, if any, in the market value of our shares of common stock.

There can be no assurance that shares of our common stock will appreciate in value or even maintain the price at which our stockholders

have purchased their shares.

Our common stock is subject to the SEC’s penny stock rules.

our common stock is listed on a national securities exchange, including the Nasdaq Capital Market, or we have stockholders’

equity of $5,000,000 or less and our common stock has a market price per share of less than $5.00, transactions in our common stock

will be subject to the SEC’s “penny stock”

If our common stock remains subject to the “penny stock”

rules promulgated under the Securities Exchange Act of 1934, broker-dealers may find it difficult to effectuate customer transactions

and trading activity in our securities may be adversely affected.

accordance with these rules, broker-dealers participating in transactions in low-priced securities must first deliver a risk disclosure

document that describes the risks associated with such stocks, the broker-dealer’s duties in selling the stock, the customer’s

rights and remedies and certain market and other information.

Furthermore, the broker-dealer must make a suitability determination

approving the customer for low-priced stock transactions based on the customer’s financial situation, investment experience

and objectives.

Broker-dealers must also disclose these restrictions in writing to the customer, obtain specific written consent

from the customer, and provide monthly account statements to the customer.

The effect of these restrictions will probably decrease

the willingness of broker-dealers to make a market in our common stock, decrease liquidity of our common stock and increase transaction

costs for sales and purchases of our common stock as compared to other securities.

Our management is aware of the abuses that have

occurred historically in the penny stock market.

may make it more difficult for investors to dispose of our common stock and cause a decline in the market value of our stock.

Our articles of incorporation allow

for our board to create new series of preferred stock without further approval by our stockholders, which could adversely affect

the rights of the holders of our common stock.

Our board of directors

has the authority to fix and determine the relative rights and preferences of preferred stock.

Our board of directors has the authority

to issue up to 10,000,000 shares of our preferred stock without further stockholder approval.

As a result, our board of directors

could authorize the issuance of a series of preferred stock that would grant to holders of preferred stock the right to our assets

upon liquidation, or the right to receive dividend payments before dividends are distributed to the holders of common stock.

addition, our board of directors could authorize the issuance of a series of preferred stock that has greater voting power than

our common stock or that is convertible into our common stock, which could decrease the relative voting power of our common stock

or result in dilution to our existing stockholders.

On January 15, 2021,

as approved by the Board, the Company filed the Certificate of Designation (the “Certificate of Designation”) for its

newly-created Series B Preferred Stock with the Secretary of State of Nevada designating 1,000 shares of its authorized preferred

stock as Series B Preferred Stock.

The shares of Series B Preferred Stock have a par value of $0.0001 per share.

The Series B Preferred

Stock does not have a dividend rate or liquidation preference and are not convertible into shares of our common stock.

shares of Series Be Preferred have been issued to David Lee, our Chief Executive Officer.

For so long as any shares

of the Series B Preferred Stock remain issued and outstanding, the holders thereof, voting separately as a class, shall have voting

power equal to 51% of the total vote (representing a super majority voting power) on all shareholder matters of the Company.

vote shall be determined by the holder(s) of a majority of the then issued and outstanding shares of Series B Preferred Stock.

The shares of the Series

B Preferred Stock shall be automatically redeemed by us at their par value on the first to occur of the following triggering

(i) a date forty five (45) days after the effective date of the Certificate of Designation, (ii) on the date that Mr.

ceases, for any reason, to serve as officer, director or consultant of the Company, or (ii) on the date that the Company’s

shares of common stock first trade on any national securities exchange and such listing is conditioned upon the elimination of

the preferential voting rights of the Series B Preferred Stock set forth in the Certificate of Designation.

Additionally, we are

prohibited from adopting any amendments to our Bylaws, Articles of Incorporation, as amended, as set forth in the Certificate of

Designation, without the affirmative vote of at least 66-2/3% of the outstanding shares of Series B Preferred Stock.

may, by any means authorized by law and without any vote of the holders of shares of Series B Preferred Stock, make technical,

corrective, administrative or similar changes to such Certificate of Designation that do not, individually or in the aggregate,

adversely affect the rights or preferences of the holders of shares of Series B Preferred Stock

The issuance of the

Series B Preferred Stock may prevent or frustrate attempts by stockholders to change the board of directors or current management

and could make a third-party acquisition of the Company difficult which could limit the price that investors might be willing to

pay in the future for shares of the Company’s common stock.

Additional stock offerings in the

future may dilute then-existing shareholders’

percentage ownership of the Company.

Given our plans and

expectations that we will need additional capital and personnel, we anticipate that we will need to issue additional shares of

common stock or securities convertible or exercisable for shares of common stock, including convertible preferred stock, convertible

notes, stock options or warrants.

The issuance of additional securities in the future will dilute the percentage ownership of then

current stockholders.

Our headquarters are

located at 27936 Lost Canyon Road, Suite 202, Santa Clarita, California 91387.

We lease our facility under a month-to-month lease

without an expiration date.

Our monthly lease payment is $550.

The size of our office is 144 square feet.

are not currently a party to, nor are any of our property currently the subject of, any pending legal proceeding that will have

a material adverse effect on our business.

SAFETY DISCLOSURES

LEGAL PROCEEDINGS.

We are not currently

a party to, nor are any of our property currently the subject of, any pending legal proceeding that will have a material adverse

effect on our business.

MINE SAFETY DISCLOSURES

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1A. Risk Factors