What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-03-31 compared with 2024-04-02 · 895 added, 1029 removed, 73 unchanged (96% of the section changed)

Entities is a technology company providing social media marketing and content delivery services across Discord, TikTok, and other social

media platforms.

We also design, develop and manage servers for communities on Discord.

Based on the rapid growth of our Discord servers

and social media following, we have developed three categories of services.

First, we have established and developed large communities

with subscription upgrades to premium content on our investment education and entertainment servers on Discord.

Second, we develop, codevelop

and execute influencer social media and marketing campaigns for clients.

Third, we design, develop and manage Discord servers for clients

under our “AE.360.DDM” brand.

All of these services – our Discord investment education and entertainment, social media

and marketing, and AE.360.DDM services – are therefore based on our effective use of Discord as well as other social media including

TikTok, X, Instagram, and YouTube.

Arshia Sarkhani, our Chief Executive Officer and President, and Mr.

Kyle Fairbanks, our Executive Vice-Chairman and Chief Marketing

Officer, had been actively investing and developing social influencer followings on their own when they had a vision:

Bring Wall Street

trading education and entertainment to the Generation Z masses through social media through the community-based platform known as Discord.

Asset Entities is a technology company

providing social media marketing and content delivery services across Discord, TikTok, and other social media platforms.

We also design,

develop and manage servers for communities on Discord.

Based on the growth of our Discord servers and social media following, we have

developed three categories of services:

(1) our Discord investment education and entertainment services, (2) social media and marketing

services, and (3) our “AE.360.DDM” brand services.

We also offer Ternary v2, a cloud-based subscription management and payment

processing solution for Discord communities, which includes a suite of customer relations management tools and Stripe-verified payment

All of our services are based on our effective use of Discord as well as other social media including TikTok, X, Instagram,

Our Background

Arshia Sarkhani, our Chief

Executive Officer and President, and Mr.

Kyle Fairbanks, our Executive Vice-Chairman and Chief Marketing Officer, had been actively investing

and developing social influencer followings on their own when they had a vision:

Bring Wall Street trading education and entertainment

to the Generation Z masses through social media through the community-based platform known as Discord.

Sarkhani and Mr.

Fairbanks sensed that social media could empower retail investors, as later demonstrated in the extreme by recent

developments such as the GameStop meme stock phenomenon.

sensed that social media could empower retail investors, as later demonstrated in the extreme by recent developments such as the GameStop

meme stock phenomenon.

Based on their vision and personal investing experience, Mr.

Sarkhani and Mr.

Fairbanks founded our company with fellow investors and social influencers Jackson Fairbanks, our Director of Socials, and Arman Sarkhani,

our Chief Operating Officer.

Our company initially focused on providing social media and marketing campaigns and consulting services

October 2020, we had determined that the social media platform Discord, which focuses on users’ shared interests and features premium

content instead of advertisements, would be the most effective forum for our vision.

We formed a stock investing education and entertainment

Discord server, with the server name “STOCKS”.

Subsequently, in 2021, we formed similar servers focusing on cryptocurrencies

and nonfungible tokens, or NFTs, with the server names “CRYPTOS” and “NFTS”, respectively.

We also recently launched

a real estate Discord server in May 2022, with the server name “REALTY”, to provide similar content on various aspects of

residential and commercial real estate investing.

We believe it is significant, and shows the pioneering vision of our founders, that

we were able to obtain the Discord domain names of “STOCKS”, “CRYPTOS”, “NFTS”, and “REALTY”

for their four main Discord communities.

We believe that each of our servers is one of the first of its kind on Discord.

As of March 2024, our Discord servers had approximately

210,000 members combined, consisting of approximately 150,000, 48,000, and 11,500 members on our STOCKS, REALTY, and CRYPTOS servers,

respectively.

We plan to launch servers with other popular investment themes in the future.

Through the consistent release of relevant

content, cross-marketing, and strategic subscription pricing, we anticipate that our various Discord communities will continue to grow.

Our record of growth on Discord has also depended

and will continue to depend on a massive social media following.

Since deciding to form our Discord communities, our social influencers’

effective use of TikTok and other social media has fueled their rapid growth.

Since August 2020, as a result of social media campaigns

helping to promote our Discord servers in the financial education and entertainment space, our social media presence has grown organically

from fewer than 50,000 members and followers, to 2 million by March 2024.

Our social media reach across all platforms has accumulated

well over 1 billion interactions.

Current Business

Discord investment education and entertainment service is designed primarily by and for enthusiastic Generation Z, or Gen Z, retail investors,

creators and influencers.

Fairbanks founded our company with

fellow investors and social influencers Jackson Fairbanks, our Director of Socials, and Arman Sarkhani, our Chief Operating Officer.

company initially focused on providing social media and marketing campaigns and consulting services for clients.

By October 2020, we had determined that

the social media platform Discord, which focuses on users’ shared interests and features premium content instead of advertisements,

would be the most effective forum for our vision.

We formed a stock investing education and entertainment Discord server, with the server

name “STOCKS”.

Subsequently, in 2021, we formed similar servers focusing on cryptocurrencies and nonfungible tokens, or NFTs,

with the server names “CRYPTOS” and “NFTS”, respectively.

We also launched a real estate Discord server in May

2022, with the server name “REALTY”, to provide similar content on various aspects of residential and commercial real estate

We believe it is significant, and shows the pioneering vision of our founders, that we were able to obtain the Discord domain

names of “STOCKS”, “CRYPTOS”, “NFTS”, and “REALTY” for their four main Discord communities.

We believe that each of these servers is one of the first of its kind on Discord.

As of December 31, 2024, we had launched

or acquired a total of ten Discord servers, and our Discord servers had approximately 206,899 members combined.

We plan to launch or acquire

servers with other popular investment themes in the future.

Through the consistent release of relevant content, cross-marketing, strategic

subscription pricing, and strategic acquisitions, we anticipate that our various Discord communities will continue to grow.

Our record of growth on Discord has

also depended and will continue to depend on a massive social media following.

Since deciding to form our Discord communities, our social

influencers’ effective use of TikTok and other social media has fueled their growth.

Since August 2020, as a result of social media

campaigns helping to promote our Discord servers in the financial education and entertainment space, our social media presence has grown

from fewer than 50,000 members and followers, to over 2 million by December 31, 2024.

Our social media reach across all platforms has

accumulated well over 1 billion interactions.

Our Current Business

Our Discord investment education and

entertainment service is designed primarily by and for enthusiastic Generation Z, or Gen Z, retail investors, creators and influencers.

Gen Z is commonly considered to be people born between 1997 and 2012.

Our investment education and entertainment

service focuses on stock, real estate, cryptocurrency, and NFT community learning programs designed for the next generation.

believe that Gen Z will continue to be our primary market, our recently-expanded Discord server offering also features education and

entertainment content covering real estate investments, which is expected to appeal strongly to older generations as well.

initially developed our Discord community and other social media following for our company through the talents, insights and efforts

of our executive social influencers, Messrs.

Our investment education and entertainment service focuses on stock,

real estate, cryptocurrency, and NFT community learning programs designed for the next generation.

While we believe that Gen Z will continue

to be our primary market, our expanded Discord server offering also features education and entertainment content covering real estate

investments, which is expected to appeal strongly to older generations as well.

We initially developed our Discord community

and other social media following for our company through the talents, insights and efforts of our executive social influencers, Messrs.

Arshia and Arman Sarkhani and Messrs.

Kyle and Jackson Fairbanks.

Our executive team has

also offered social media and marketing campaign services to business clients.

To the end of further capitalizing on our management’s

social influencer backgrounds, we developed our “SiN” or “Social Influencer Network,” our team of social influencer

independent contractors.

Our SiN social influencer independent contractors can perform social media and marketing campaign services to

expand our clients’ Discord server bases and drive traffic to their businesses, as well as increase membership in our own servers.

forming thriving community groups on Discord, we designed and developed four Asset Entities server communities and manage a combined

server user membership of approximately 260,000 as of March 2023.

As a result, we have developed a high level of expertise in designing,

developing, and managing Discord servers.

Having developed multiple Discord servers in a variety of fields, we have positioned ourselves

as experts in the Discord space.

Further capitalizing on this experience, since January 2022, we have formally offered our “AE.360.DDM,

Design Develop Manage” service, or “AE.360.DDM”.

AE.360.DDM is a suite of services to individuals and companies seeking

to create a server on Discord.

We believe we are the first company to provide “Design, Develop and Manage,” or DDM, services

for any individual, company, or organization that wishes to join Discord and create their own community.

We liken this service to that

provided by companies like Register.com and Godaddy.com during the dot.com era in the 1990s for companies looking to register their domain

names, develop webpages and websites, and manage and host those websites.

With our AE.360.DDM rollout, we believe we are uniquely positioned

to offer DDM services in the growing market for Discord servers.

Year 2023 Highlights

2023, we took the following initiatives to expand our business:

November 2023, we acquired certain assets of Ternary Inc., a Florida corporation (“Ternary

FL”), Ternary Developments Inc., a Delaware corporation (“Ternary DE” and

together with Ternary FL, “Ternary”), and their Chief Executive Officer, Jason

Lee, relating a cloud-based subscription management solution for Discord communities and

Stripe-verified payment processor, and OptionsSwing Inc.

a Florida corporation (“OptionsSwing”),

the provider of an investment research and analysis education service.

The acquisitions are

intended to add new Discord and social media customers to Asset Entities, expand the Company’s

platform, and provide a Stripe-verified payment processing platform to Asset Entities’

AE.360.DDM suite of services for Discord communities and beyond.

In February 2024, we launched

Ternary V2, the next generation of the Ternary platform, which includes additional customer

relations management (CRM) tools, allowing community owners the ability to scale, manage,

and transact payments all in a single platform.

Ternary generates revenue by charging community

owners a monthly subscription plus a processing fee to use its platform.

launched a new AE.360.DDM website;

engaged music producer Jeff Blue as Head of Entertainment

to lead the development of the AE.360.DDM Music and Entertainment Artist and Repertoire (A&R)

hired a Senior Project Manager for all Discord servers under the AE.360.DDM suite

introduced a ChatGPT AI bot as an AE.360.DDM Discord server customer service

engaged professional golfers Bryson DeChambeau and Scott Verplank to promote the

AE.360.DDM service;

and engaged Michael Irvin, American sports commentator and former professional

football player, to provide marketing services for the AE.360.DDM service.

signed AE.360.DDM contracts with apparel brand Kappa USA, rock band Matchbox Twenty, and

former professional football player Michael Irvin.

Historical Performance

The Company had an accumulated deficit of $5,558,315 at December 31,

2023, $2,924,323 in cash at December 31, 2023, and a net loss of $4,931,197 during the year ended December 31, 2023.

The Company initiated

a sale of 621,590 shares of common stock under its Amended and Restated Closing Agreement (as amended and as defined in Item 5.

For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities – Recent Sales of Unregistered

Securities ”) on March 27, 2024, and the Company intends to file a “shelf” registration statement and arrange for

one or more financings to commence pursuant to such shelf registration statement shortly after it becomes effective.

Based on the Company’s

existing cash resources and the cash expected to be received from these financings, it is expected that the Company will have sufficient

funds to carry out the Company’s planned operations through December 31, 2024.

For further discussion, see Item 7.

Our executive team has also offered social media and marketing campaign

services to business clients.

To the end of further capitalizing on our management’s social influencer backgrounds, we developed

our “SiN” or “Social Influencer Network,” our team of social influencer independent contractors.

Our SiN social

influencer independent contractors can perform social media and marketing campaign services to expand our clients’ Discord server

bases and drive traffic to their businesses, as well as increase membership in our own servers.

In forming community groups

on Discord, we designed and developed 25 Asset Entities server communities and manage a combined server user membership of approximately

212,253 as of December 31, 2024.

As a result, we have developed a high level of expertise in designing, developing, and managing Discord

Having developed multiple Discord servers in a variety of fields, we have positioned ourselves as experts in the Discord space.

Further capitalizing on this experience, since January 2022, we have formally offered our “AE.360.DDM, Design Develop Manage”

service, or “AE.360.DDM”.

AE.360.DDM is a suite of services to individuals and companies seeking to create a server on Discord.

We believe we are the first company to provide “Design, Develop and Manage,” or DDM, services for any individual, company,

or organization that wishes to join Discord and create their own community.

We liken this service to that provided by companies like Register.com

and Godaddy.com during the dot.com era in the 1990s for companies looking to register their domain names, develop webpages and websites,

and manage and host those websites.

With our AE.360.DDM rollout, we believe we are uniquely positioned to offer DDM services in the growing

market for Discord servers.

In addition, through Ternary

v2, our subscription management and payment processing solution for Discord communities, subscribers can monetize and manage their Discord

Ternary v2 simplifies the process for our subscribers to:

(i) sell memberships to their Discord servers on their websites and collect

payments through Stripe with daily payouts;

(ii) add digital products and services and designate purchase options to their Discord servers;

(iii) customize their user Discord permissions and roles and other Discord settings;

and (iv) utilize our Discord bot to automatically

apply their Discord user settings to authenticate new users, apply customizable permission sets to users, and remove users when their

subscriptions expire.

As a Stripe-verified partner through Ternary v2, we can also assist subscribers with integrating other platforms

into their Discord servers with open application programming interfaces, further extending our platform’s capabilities.

Fiscal Year 2024 Highlights

During 2024, we took the following initiatives

to expand our business:

● In March 2024, we launched our official YouTube channel, "The Lounge," which features podcast

interviews with celebrities, sports figures, business professionals, and more, and where interviews will focus on each guest's journey

through life.

Previous guests have included Michael “the Playmaker” Irvin, former NFL superstar Hall

of Fame wide receiver and three-time Superbowl Champion;

Jeff Blue, the Company’s Head of Entertainment and a multi-platinum music

and Ray Crockett, a winner of two Super Bowl rings.

● In March 2024, we entered into an agreement with Zendrop, an industry leader in dropshipping and ecommerce.

We will provide its services and solutions to Zendrop through Ternary v2, our SaaS platform for payment processing and Stripe Verified

Partner for Discord communities.

These services will include a suite of customer relationship management (CRM) solutions, Discord customer

analytics, and payment processing.

● In May 2024, we completed the first closing of our financing transaction involving the sale of shares

of the Company’s newly designated Series A Preferred Stock, for gross proceeds of $1.5 million, from an institutional

● In April 2024, we filed a Registration Statement on Form S-3 (File No.

333-278707) (the “Shelf Registration

Statement”) with the Securities and Exchange Commission (the “SEC”), which was declared effective by the SEC on

April 26, 2024.

Pursuant to the Shelf Registration Statement, we may offer to the public from time to time, in one or more offerings,

shares of Class B Common Stock, preferred stock, debt securities, warrants, subscription rights, and units in up to a total aggregate

offering amount of $100,000,000, subject to the requirement that in no event may we sell shares having a value exceeding more than

one-third of our public float in any 12-month period under the Shelf Registration Statement so long as our public float remains below

The securities will be offered at prices and on terms to be determined at the time of any such offering.

The specifics of

any offerings, along with the use of proceeds of any such securities, will be described in detail in a prospectus supplement at the time

of any such offering.

● In June 2024, we acquired the assets of TommyBoyTV, LLC (“TommyBoyTV”), a company engaged

in the business of Discord development, social media, online community management, marketing, and analytics, expanding the Company’s

share of the Discord community market.

● In July 2024, we completed the second closing of our financing transaction involving the sale of shares

of the Company’s newly designated Series A Preferred Stock, for gross proceeds of $1.5 million, from an institutional

investor, for a total of $3.0 million from sales of the Series A Preferred Stock to the investor.

● In September 2024, we commenced an “at the market offering”

(as defined in Rule 415(a)(4) under the Securities Act) of up to $1,791,704 of shares of Class B Common Stock, which, as of March 31,

2025, has been increased to $5,489,399 of shares of Class B Common Stock in November 2024 (the “ATM Financing”).

the offering will be made from time to time solely through or to A.G.P./Alliance Global Partners, as sales agent (“A.G.P.”

or the “Sales Agent”).

These sales, if any, will be made pursuant to the terms of a sales agreement between us and the Sales

Agent, dated September 27, 2024 (the “ATM Sales Agreement”).

Since the commencement of the ATM Financing, a total of 5,417,700

shares has been sold, for net proceeds to the Company of $4,830,648, after paying $329,362 in compensation to the Sales Agent and the

same amount to Boustead Securities, LLC (“Boustead”) under the Boustead ATM Waiver (as defined in Item 7.

“ Management’s

Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources ”.

social influencer and online media presence on various platforms are expanding and evolving.

More than any previous generation, Generation

Z is immersed in social media platforms like TikTok, X, and Meta Platforms’ Facebook and Instagram.

This trend has generated opportunities

for young adults to become social influencers and to gain financial success.

Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – ATM Financing

– Waivers and Consents to ATM Financing ”) with respect to such sales.

● In October-November 2024, we were selected to design, develop, and manage the Discord servers

for Maxx Talent Awards, a premier platform for showcasing the talents of aspiring actors, models, and singers;

social media influencer, American

fitness model, training specialist, actor, and entrepreneur, Scott Mathison;

Grammy Award-winning R&B and soul singer, songwriter,

producer and actress Macy Gray;

and dog behavioralist Jas Leverette, star of the Netflix show Canine Intervention .

● In November 2024, we acquired the assets of the TikTok Shop space known as the TikTok Money Machine, which

included its Discord community.

The Discord community teaches content creators how to sell products on TikTok Shop via the use of product

content videos.

It also connects major consumer product brands with these content creators, offering the latter the opportunity to earn

sales commissions, via their TikTok accounts, on each product sale completed.

We also secured consulting agreements with TikTokers and

lead creators of the Discord, who have an aggregate of approximately 280,000 followers on Instagram and 4,700,000 followers on TikTok.

● In November 2024, we signed an agreement with our Head of Entertainment, Jeff Blue, to acquire a

50% ownership interest in all film, TV, streaming and media rights to Blue’s story, One Step Closer:

Becoming Linkin Park .

Under the agreement, we also engaged with Mr.

Blue to write the screenplay.

Published by Simon &

Schuster/Posthill Press in 2020, One Step Closer:

From Xero to #1:

Becoming Linkin Park has been translated into seven different

● In December 2024, we were approved as a TikTok Shop Partner.

We plan to work with TikTok to connect brands

with creators and help them collaborate further in the affiliate marketing space.

Our Historical Performance

of December 31, 2024, the Company had an accumulated deficit of $12,006,357 and a cash balance of $2,660,624.

During the years ended

December 31, 2024 and 2023, we had a net loss of $6,393,932 and $4,931,197, respectively.

To date, the Company has financed its

operations primarily through capital raises and sales of its services.

In April 2024, the Company filed the Shelf Registration

Statement, which was declared effective by the SEC on April 26, 2024, for potential offerings of up to $100,000,000 in aggregate,

subject to the requirement that in no event may we sell shares having a value exceeding more than one-third of our public float in

any 12-month period under the Shelf Registration Statement so long as our public float remains below $75,000,000.

In May 2024, the

Company completed the first of a two-part private placement of its Series A Preferred Stock for gross proceeds of $1.5 million, and

in July 2024, the Company completed the second part of the private placement for an additional $1.5 million in gross proceeds.

September 2024, the Company entered into the ATM Sales Agreement, and filed a prospectus supplement to the Shelf Registration

Statement for the ATM Financing for gross proceeds of up to $1,791,704.

In November 2024, the Company filed an additional prospectus

supplement to the Shelf Registration Statement to increase the maximum gross proceeds to $2,271,487.

Company has received confirmation from the investor in its Series A Preferred Stock that it will invest up to an additional $3

million upon request by the Company.

Based on the Company’s existing cash resources and the cash expected to be

received from the ATM Financing and other planned financings, it is expected that the Company will have sufficient funds to carry

out the Company’s planned operations through December 31, 2025 and for at least 12 months beyond that period.

discussion, see Part II.

“ Management’s Discussion and Analysis of Financial Condition and Results of

Operations – Liquidity and Capital Resources ”.

Industry Overview

The social influencer and online media

presence on various platforms are expanding and evolving.

More than any previous generation, Generation Z is immersed in social media

platforms like TikTok, X, and Meta Platforms’ Facebook and Instagram.

This trend has generated opportunities for young adults to

become social influencers and to gain financial success.

Many kids now want to be “tiktokers”, “instagrammers”,

7 unchanged sentences

on other subjects that are gaining mass interest, especially with Generation Z, including personal finance and investing.

Bloomberg has reported (“Influencers Are Luring Investors Flummoxed by Meme Stonks and Options,” June 18, 2021), in the U.S.,

there is relatively little formal personal-finance education.

Only seven states require – or are in the process of mandating –

a standalone high school course on the topic, according to the advocacy group Next Gen Personal Finance.

As Bloomberg has reported (“Influencers

Are Luring Investors Flummoxed by Meme Stonks and Options,” June 18, 2021), in the U.S., there is relatively little formal personal-finance

Only 26 states require – or are in the process of mandating – a standalone high school course on the topic (Ramsey

Solutions, “Which States Require Financial Literacy for High School Students,” August 19, 2024).

For most students, learning

3 unchanged sentences

natives, i.e., most of Generation Z.

Only $1 or less can be used to open financial accounts and buy fractions of shares or portions of

cryptocurrencies through companies like Robinhood, Cash App and others.

With slightly more in their investment accounts, people can get

access to higher-risk strategies such as margin or option trading.

Meanwhile, there is new vocabulary to decipher every day if investors

want to understand chatter about the markets, from “diamond hands” to NFTs.

While banks and mutual fund companies offer advisory

services to their members, they tend to reserve advisory services for higher-net-worth individuals, and generally do not make their advice

particularly entertaining or accessible to Generation Z consumers.

the rise of free, fast trading online and by phone, demand has surged for information about investing and markets, creating opportunities

for a new generation of financial influencers who are rushing to fill the gap in traditional education.

With a massive, younger, financially

uneducated market desperate to learn about the financial markets, a deluge of new companies and their influencer leaders are fighting

to be the first place individuals turn to chat about stocks, budgets or finances.

broadly, this trend towards relying on social media and influencers means that skilled social media marketers and influencers can parlay

their brands into multiple streams of revenue including subscription-only content, promotional campaign contracts for business clients,

and related consulting services.

As argued by a guest contributor’s article on Nasdaq.com (“How Gen Z Influencers Can Transform

the Nature of Investing,” June 2, 2021), Generation Z is asserting more influence over the social media influencer market, which

has already surpassed $13 billion in market size worldwide according to a research report published by Statista (“Influencer Marketing

Worldwide - Statistics & Facts,” September 27, 2021), and shows no signs of abating.

Internet users look to niche influencers

they trust as their go-to source for new information and product recommendations, and 74% of consumers say they would spend up to $629

on a product recommended by an influencer.

With such authority over the way consumers spend their money on commercial goods, Gen Z influencers

are bound to sway their followers’ interests in the area of financial education.

Z’s social media habits are distinctive from other generations.

Their most-used social media platforms are Instagram, Snapchat,

and TikTok, according to a 2021 Pew Research survey.

TikTok’s quick ascension to Gen Z dominance at comparable levels to other

well-established online titans has captivated potential investors, e-marketers, and others looking to profit from this bustling and youthful

the growth of the influencer industry across social media like Instagram and TikTok, the rapid influx of young retail investors into

the stock and cryptocurrency markets, and recent phenomena like meme stocks, we believe the stage is set for Gen Z to seek dedicated

online community-based investment education and entertainment services.

the same time, a relatively new social media app, Discord, has emerged and demonstrated unique appeal to younger people.

by The New York Times (“How Discord, born from an obscure game, became a social hub for young people,” December 29,

2021), driven in part by the COVID-19 pandemic, Discord “has exploded into the mainstream.” While parents working from home

flocked to Zoom, many of their children were downloading the Discord app to socialize with other young people through text and audio

and video calls in groups known as servers.

As of March 2024, the platform has more than 150 million active users each month –

up from 56 million in 2019.

It has expanded from gamers to many other groups including music aficionados, students, art communities,

and cryptocurrency enthusiasts.

According to Bloomberg, on September 15, 2021, Discord’s valuation doubled from $7 billion in 2020

to about $15 billion based on a $500 million capital raise.

is split into servers – essentially chat rooms similar to the workplace tool Slack – which facilitate casual, free-flowing

conversations about shared interests such as gaming, music, art, school, and memes.

$1 can be used to open financial accounts and buy fractions of shares or portions of cryptocurrencies

through companies like Robinhood, Cash App and others.

With modestly more in their investment accounts, people can get access to higher-risk

strategies such as margin or option trading.

Meanwhile, there is new jargon to decipher every day if investors want to understand chatter

about the markets.

While banks and mutual fund companies offer advisory services to their members, they tend to reserve advisory services

for higher-net-worth individuals, and generally do not make their advice particularly entertaining or accessible to Generation Z consumers.

With the rise of free, fast trading

online and by phone, demand has surged for information about investing and markets, creating opportunities for a new generation of financial

influencers who are rushing to fill the gap in traditional education.

With a massive, younger, financially uneducated market desperate

to learn about the financial markets, a deluge of new companies and their influencer leaders are fighting to be the first place individuals

turn to chat about stocks, budgets or finances.

More broadly, this trend towards relying

on social media and influencers means that skilled social media marketers and influencers can parlay their brands into multiple streams

of revenue including subscription-only content, promotional campaign contracts for business clients, and related consulting services.

As argued by a guest contributor’s article on Nasdaq.com (“How Gen Z Influencers Can Transform the Nature of Investing,”

June 2, 2021), Generation Z is asserting more influence over the social media influencer market, which has already surpassed $13 billion

in market size worldwide according to a research report published by Statista (“Influencer Marketing Worldwide - Statistics &

Facts,” September 27, 2021), and shows no signs of abating.

Internet users look to niche influencers they trust as their go-to source

for new information and product recommendations.

With such authority over the way consumers spend their money on commercial goods, Gen

Z influencers are bound to sway their followers’ interests in the area of financial education.

Gen Z’s social media habits are

distinctive from other generations.

Their most-used social media platforms are Instagram, Snapchat, and TikTok, according to a 2021 Pew

Research survey.

TikTok’s quick ascension to Gen Z dominance at comparable levels to other well-established online titans has captivated

potential investors, e-marketers, and others looking to profit from this bustling and youthful platform.

Given the growth of the influencer industry

across social media like Instagram and TikTok, the rapid influx of young retail investors into the stock and cryptocurrency markets, and

recent phenomena like meme stocks, we believe the stage is set for Gen Z to seek dedicated online community-based investment education

and entertainment services.

At the same time, a relatively new social

media app, Discord, has emerged and demonstrated unique appeal to younger people.

As reported by The New York Times (“How

Discord, born from an obscure game, became a social hub for young people,” December 29, 2021), driven in part by the COVID-19 pandemic,

Discord “has exploded into the mainstream.” While parents working from home flocked to Zoom, many of their children were downloading

the Discord app to socialize with other young people through text and audio and video calls in groups known as servers.

As of March 2025,

the platform has more than 259 million active users each month – up from 56 million in 2019.

It has expanded from gamers to many

other groups including music aficionados, students, art communities, and cryptocurrency enthusiasts.

According to Bloomberg, on September

15, 2021, Discord’s valuation doubled from $7 billion in 2020 to about $15 billion based on a $500 million capital raise.

Discord is split into servers –

essentially chat rooms similar to the workplace tool Slack – which facilitate casual, free-flowing conversations about shared interests

such as gaming, music, art, school, and memes.

Some servers are large and open to the public;

are private and invitation-only.

Another feature that significantly differentiates Discord from the established social media platforms

like Facebook is that the service does not have advertisements.

It makes money through premium subscriptions that give users access to

features like custom emoji for $5 or $10 per month.

Discord also began experimenting in December 2021 with allowing some users to charge

for access to their server, up to $100 a month, of which Discord takes 10%.

on the above, social influencers can generate revenues from Discord user subscriptions by drawing users in with their investment education

and entertainment content.

Expert influencers on Discord and other social media can simultaneously use their social media expertise and

brands to generate social media marketing campaigns for business clients looking to attract more Generation Z consumers.

Services, such

as “AE.360.DDM, Design Develop Manage”, covering all aspects of the design and implementation of the Discord servers themselves

can attract subscribers and, therefore, create a new source of revenue.

We believe that we are a leading provider of all of these services,

and that demand for all of our services will continue to grow.

offer three types of services that utilize Discord and other social media to younger generations and other social media users.

others are private and invitation-only.

Another feature that significantly differentiates Discord from the established social media platforms like Facebook is that the service

does not have advertisements.

It makes money through premium subscriptions that give users access to features like custom emoji for $5

or $10 per month.

Discord also began experimenting in December 2021 with allowing some users to charge for access to their server, up

to $100 a month, of which Discord takes 10%.

Based on the above, social

influencers can generate revenues from Discord user subscriptions by drawing users in with their investment education and entertainment

Expert influencers on Discord and other social media can simultaneously use their social media expertise and brands to generate

social media marketing campaigns for business clients looking to attract more Generation Z consumers.

Services, such as “AE.360.DDM,

Design Develop Manage”, covering all aspects of the design and implementation of the Discord servers themselves can attract subscribers

and, therefore, create a new source of revenue.

We believe that we are a leading provider of all of these services, and that demand for

all of our services will continue to grow.

We offer three types of services that

utilize Discord and other social media to younger generations and other social media users.

Discord Communities .

investment education and entertainment service aims to serve as an education and entertainment platform for investments in a way that

Our investment education and entertainment service aims to serve as an education and entertainment platform for investments in a way that

is accessible to Generation Z and other social media users.

As one of the largest community-based education and entertainment platforms

on Discord, with four separate servers with a combined user membership of approximately 210,000 as of March 2024, we provide financial

on Discord, with ten separate servers with a combined user membership of approximately 206,899 as of December 31, 2024, we provide financial

literacy education and entertainment on trading and investment.

Our largest Discord server focuses on stock investing education and entertainment,

and we have smaller but growing real estate and cryptocurrency education and entertainment Discord servers.

One of the unique aspects

of Discord is that the base access to certain materials is free to all users.

Our Discord server subscription fees currently range from

$4.99 to $59.99, with a top tier that includes access to the OptionsSwing software platform of $120.00.

monthly fees, paying subscribers to our Discord servers can get access to live trading diaries, premium prerecorded investing and trading

education video content, and paying subscriber-only private group discussion channels relating to the general investment and trading

education content on the Company’s Discord servers.

All members may watch nonpremium video education content, watch live day trading

sessions during market hours, and participate in live chat sessions with other members.

We upload and manage all content on our Discord

There are no formal requirements for our investment education and entertainment materials;

however, we are selective with the

content that we post on our servers.

comply with Discord’s terms of service, including minimum age requirements.

Discord requires all users to be at least 13 years

old, and we require users to be at least 18 years old in order to participate in community discussions.

Discord is in the process of

creating a gateway to require age verification.

In addition, we maintain a set of community behavior rules for its servers which include

bans on hate speech, harassment, spam, illegal activities, and false information.

All members must confirm that they have read and accept

these rules in order to enter our Discord servers.

Our largest Discord server, “STOCKS”, focuses on stock investing

education and entertainment, and we have smaller but growing real estate and cryptocurrency education and entertainment Discord servers.

One of the unique aspects of Discord is that the base access to certain materials is free to all users.

Our Discord server subscription

fees currently range from $4.99 to $59.99, with a top tier that includes access to the OptionsSwing software platform of $120.00.

For monthly fees, paying subscribers

to our Discord servers can get access to live trading diaries, premium prerecorded investing and trading education video content, and

paying subscriber-only private group discussion channels relating to the general investment and trading education content on the Company’s

Discord servers.

All members may watch nonpremium video education content, watch live day trading sessions during market hours, and participate

in live chat sessions with other members.

We upload and manage all content on our Discord servers.

There are no formal requirements for

our investment education and entertainment materials;

however, we are selective with the content that we post on our servers.

We comply with Discord’s terms

of service, including minimum age requirements.

Discord requires all users to be at least 13 years old, and we require users to be at

least 18 years old in order to participate in community discussions.

Discord is in the process of creating a gateway to require age verification.

In addition, we maintain a set of community behavior rules for its servers which include bans on hate speech, harassment, spam, illegal

activities, and false information.

All members must confirm that they have read and accept these rules in order to enter our Discord servers.

Our Discord moderators enforce these rules.

Media and Marketing .

We offer white-label marketing, content creation, content management, TikTok promotions, and TikTok

consulting to clients in any industry or market.

Fees under our social media and marketing agreements are expected to range from $2,000

for small, short projects to $50,000 for more intricate and labor-intensive campaigns.

Pricing depends on the amount of social media

posts, length of the campaign, and product placement.

social media, we have conducted marketing and other social media campaigns on behalf of clients in investing, gaming, recreation, cryptocurrency

assets, NFTs, and other areas through our growing team of social media influencers, which we call our “Social Influencer Network,”

utilize our “SiN” or “Social Influencer Network,” our social influencer independent contractors, in part to increase

social media reach for our clients’ Discord servers or to drive traffic to their businesses.

Both we and our clients generally

have the right to preapprove and remove the influencer’s posts at our and our clients’ discretion.

They are generally paid

on a commission-only basis.

Typical payment terms are a dollar amount for a certain number of new member signups, or in some cases a

percentage, subject to a dollar cap, on the server’s subscription net revenue.

We or our clients may also commission the influencer

to provide premium video education series with revenue-sharing provisions for any related subscription fees.

Depending on the particular

contract, we, our client, or both may own the content produced by our SiN influencers.

Depending on each contract, we may require weekly

meetings with the influencer.

Our SiN contractors’ work for clients are terminable by either us or our clients on 30 days’

notice, and are subject to customary confidentiality, nondisclosure, and noncompete provisions.

our social media and marketing agreements, we typically agree to produce a certain minimum number of posts, streams, or other social

media and marketing content, at a minimum required frequency for the agreed-upon period.

We may agree to promote the products or services

of the client by mentioning the client or its products or services a certain number of times per post or stream, using products or service

in our content in a designated manner, or not using, mentioning or promoting competing products or services.

Clients must generally preapprove

our promotion-containing content, subject to their reasonable discretion.

Clients typically own any data generated by promotional posts

however, we retain the right to use the content created.

Our social media and marketing agreements are subject to customary

confidentiality, non-disparagement, indemnification and other standard terms and social media policy compliance requirements.

as otherwise noted above, our influencers are not exclusive to any social media and marketing client.

Design Develop Manage .

AE.360.DDM is a suite of services to individuals and companies seeking to create their own server

We believe that we are the first company to provide a full range of Discord DDM services for any individual, company, or

organization that wishes to join Discord.

Since November 2021, we have worked with various communities on how to better manage their

presence on Discord and have designed servers for businesses and celebrities.

We tailor our fees to the services requested and can range

from set prices of $497 to $5,000 for each Discord server design project.

However, our fees may be higher based on the expected complexity,

size, and management responsibilities for the server.

Social Media and Marketing .

We offer white-label marketing, content creation, content management, TikTok promotions, and TikTok consulting to clients in any industry

Fees under our social media and marketing agreements are expected to range from $2,000 for small, short projects to $50,000

for more intricate and labor-intensive campaigns.

Pricing depends on the amount of social media posts, length of the campaign, and product

Through social media, we have conducted

marketing and other social media campaigns on behalf of clients in investing, gaming, recreation, cryptocurrency assets, NFTs, and other

areas through our team of social media influencers, which we call our “Social Influencer Network,” or “SiN”.

We utilize our “SiN” or

“Social Influencer Network,” our social influencer independent contractors, in part to increase social media reach for our

clients’ Discord servers or to drive traffic to their businesses.

Both we and our clients generally have the right to preapprove

and remove the influencer’s posts at our and our clients’ discretion.

They are generally paid on a commission-only basis.

Typical payment terms are a dollar amount for a certain number of new member signups, or in some cases a percentage, subject to a dollar

cap, on the server’s subscription net revenue.

We or our clients may also commission the influencer to provide premium video education

series with revenue-sharing provisions for any related subscription fees.

Depending on the particular contract, we, our client, or both

may own the content produced by our SiN influencers.

Depending on each contract, we may require weekly meetings with the influencer.

SiN contractors’ work for clients are terminable by either us or our clients on 30 days’ notice, and are subject to customary

confidentiality, nondisclosure, and noncompete provisions.

Under our social media and marketing

agreements, we typically agree to produce a certain minimum number of posts, streams, or other social media and marketing content, at

a minimum required frequency for the agreed-upon period.

We may agree to promote the products or services of the client by mentioning

the client or its products or services a certain number of times per post or stream, using products or service in our content in a designated

manner, or not using, mentioning or promoting competing products or services.

Clients must generally preapprove our promotion-containing

content, subject to their reasonable discretion.

Clients typically own any data generated by promotional posts or streams;

retain the right to use the content created.

Our social media and marketing agreements are subject to customary confidentiality, non-disparagement,

indemnification and other standard terms and social media policy compliance requirements.

Other than as otherwise noted above, our influencers

are not exclusive to any social media and marketing client.

AE.360.DDM, Design Develop Manage .

AE.360.DDM is a suite of services to individuals and companies seeking to create their own server on Discord.

We believe that we are the

first company to provide a full range of Discord DDM services for any individual, company, or organization that wishes to join Discord.

Since November 2021, we have worked with various communities on how to better manage their presence on Discord and have designed servers

for businesses and celebrities.

We tailor our fees to the services requested and can range from set prices of $497 to $5,000 for each

Discord server design project.

However, our fees may be higher based on the expected complexity, size, and management responsibilities

for the server.

They may also be based on a percentage split of subscription revenues.

Discord servers managed by our company on behalf of clients, clients generally provide and own their servers’ content and control

all rights to their servers, while we provide management or other contracted services.

If we are managing the Discord server under the

AE.360.DDM service, we may upload content for the server owner.

On Discord servers managed by our company

on behalf of clients, clients generally provide and own their servers’ content and control all rights to their servers, while we

provide management or other contracted services.

If we are managing the Discord server under the AE.360.DDM service, we may upload content

for the server owner.

The server owner may always upload content.

Other server users may also

upload content, but the server owner’s moderators may remove it.

is a proprietary service that is summarized below.

The list of services below is not inclusive of our full suite of the AE.360.DDM services

and processes by which we design, develop and manage Discord servers on behalf of clients.

AE.360.DDM service includes any or all of the following:

Level 1, 2 or 3” Design and Development service:

Other server users may also upload content, but the server owner’s

moderators may remove it.

AE.360.DDM is a proprietary service

that is summarized below.

The list of services below is not inclusive of our full suite of the AE.360.DDM services and processes by which

we design, develop and manage Discord servers on behalf of clients.

Our AE.360.DDM service includes any

or all of the following:

● “360.DD Level 1, 2 or 3” Design and Development service:

We design and establish the client’s

Discord server under one of the following three “levels” of service:

1 includes a simple setup of the client’s server with base, or general-purpose, channels

and basic bots.

● Level 1 includes a simple setup of the client’s server with base, or general-purpose, channels and

Discord channels are topic-based chatrooms.

Discord bots are user-like computer-simulated

members of the server that can automate various actions.

Bots use Discord’s public

application programming interface, or API, to perform actions like send messages, modify

Discord bots are user-like computer-simulated members of the server that can automate

various actions.

Bots use Discord’s public application programming interface, or API, to perform actions like send messages, modify

roles, or automate moderation.

2 includes both Level 1 services and more advanced server features.

3 includes Level 1 and Level 2 services, and adds the following key features:

● Enhancements

taking advantage of premium Discord features.

of a number of private channels.

A private channel on Discord only allows selected members

to join it or limits what users may view and post without special permissions.

Discord server

members who are not added to the channel will not be able to see it on the server’s

● Level 2 includes both Level 1 services and more advanced server features.

● Level 3 includes Level 1 and Level 2 services, and adds the following key features:

● Enhancements taking advantage of premium Discord features.

● Setup of a number of private channels.

A private channel on Discord only allows selected members to join

it or limits what users may view and post without special permissions.

Discord server members who are not added to the channel will not

be able to see it on the server’s sidebar.

Private chat channels may be used to offer premium content to users.

● Third-party

integrations, which may be used to integrate the use of complimentary apps into the Discord

● Third-party integrations, which may be used to integrate the use of complimentary apps into the Discord

server such as other social media platforms, productivity or data-management apps, and others.

● Special-purpose

community bot and chat features.

links to websites that a client wishes to promote may also be included.

Management service:

We will act as the lead moderator and community manager of the client’s

Discord server.

● Special-purpose community bot and chat features.

● External links to websites that a client wishes to promote may also be included.

● “360.M” Management service:

We will act as the lead moderator and community manager of the

client’s Discord server.

Features may include the following:

and interacting in daily chats;

support tickets;

as a moderator and team leader.

Team leaders usually have the ability to create channels,

create and delete roles, and perform other administrative functions

informative, fun, and interactive announcements;

suggestions on how to improve the Discord community based on performance over time;

all necessary bots for security, gaming, fun and so on.

the Discord server through moderation and maintenance through a proprietary process.

AI bot as an AE.360.DDM Discord server customer service feature.

February 2024, we also offer Ternary V2, the next generation of Ternary’s Stripe-verified payment processing platform for Discord

Ternary V2 provides additional CRM tools, allowing community owners the ability to scale, manage, and transact payments

all in a single platform.

March 11, 2020, the World Health Organization declared the novel coronavirus COVID-19 a global pandemic and recommended containment and

mitigation measures worldwide.

From our founding, we have been a highly efficient remote-first company, which has been able to continue

to function as normal even with pandemic-related stay at home orders and other regulations.

We have also exploited certain trends related

to the COVID-19 pandemic, including its acceleration of global growth in virtual services.

However, the COVID-19 pandemic has adversely

impacted global economic activity and has contributed to significant volatility and negative pressure in financial markets.

The resulting

global deterioration in economic conditions and financial volatility may have an adverse impact on discretionary consumer spending or

investing, could also impact our business and demand for our services.

more information on the impacts of COVID-19 on our business and related risks, please refer to the sections entitled “Item 1A.

Risk Factors – Risks Related to Our Business and Industry – The COVID-19 pandemic may cause a material adverse effect

on our business.” and Item 7.

“ Management’s Discussion and Analysis of Financial Condition and Results of Operations

– Impact of COVID-19 Pandemic ”.

We cannot predict the extent to which the ongoing COVID-19 pandemic or related regulatory

or legislative activity may impact us.

● Moderating and interacting in daily chats;

● Answering support tickets;

● Acting as a moderator and team leader;

team leaders usually have the ability to create channels, create

and delete roles, and perform other administrative functions;

● Provide informative, fun, and interactive announcements;

● Make suggestions on how to improve the Discord community based on performance over time;

● Add all necessary bots for security, gaming, fun and so on.

● Managing the Discord server through moderation and maintenance through a proprietary process.

● ChatGPT AI bot as an AE.360.DDM Discord server customer service feature.

Since February 2024, we also offer Ternary V2,

the next generation of Ternary’s Stripe-verified payment processing platform for Discord communities.

Ternary V2 provides additional

CRM tools, allowing community owners the ability to scale, manage, and transact payments all in a single platform.

Our Market Opportunity and Customers

We market our services primarily to “Generation

Z” users and businesses seeking to market their services to these users.

As the first generation to have grown up with access to

the Internet and portable digital technology from a young age, members of Generation Z have been dubbed “digital natives”.

Around the world, it has been reported that members of Generation Z are spending more time on electronic devices and less time reading

books than before, with implications for their attention span and vocabulary, as well as their future in the modern economy.

above, Gen Z users are often bereft of the financial literacy needed to invest, in spite of growing demand for financial services especially

in an era of meme stocks and stock trading apps like Webull, Robinhood, and E*Trade.

With our emphasis on video, chat, and other social

media education, entertainment and marketing, and deep knowledge of Discord server design and trending investment topics, we have positioned

ourselves to attract younger investors and businesses seeking to market to them.

We are also now targeting millennials, Generation X,

and older generations.

We market our services primarily to

“Generation Z” users and businesses seeking to market their services to these users.

As the first generation to have grown

up with access to the Internet and portable digital technology from a young age, members of Generation Z have been dubbed “digital

Around the world, it has been reported that members of Generation Z are spending more time on electronic devices and less

time reading books than before, with implications for their attention span and vocabulary, as well as their future in the modern economy.

As discussed above, Gen Z users are often bereft of the financial literacy needed to invest, in spite of growing demand for financial

services especially in an era of meme stocks and stock trading apps like Webull, Robinhood, and E*Trade.

With our emphasis on video, chat,

and other social media education, entertainment and marketing, and deep knowledge of Discord server design and trending investment topics,

we have positioned ourselves to attract younger investors and businesses seeking to market to them.

We also target millennials, Generation X, and

older generations.

Sales, Marketing and Customer Acquisition

We will continue to seek customers by producing

content for our Discord servers and other social media accounts and using our Social Influencer Network to increase our Discord members

and to provide marketing services.

To that end, we frequently engage in social media campaigns for our Discord servers by posting free

videos, tweets, and other social media content on Discord, TikTok, X, Instagram, and YouTube.

We will use search engine optimization,

We will continue to seek customers by

producing content for our Discord servers and other social media accounts and using our Social Influencer Network to increase our Discord

members and to provide marketing services.

To that end, we frequently engage in social media campaigns for our Discord servers by posting

free videos, tweets, and other social media content on Discord, TikTok, X, Instagram, and YouTube.

We use search engine optimization,

or SEO, to gain further reach in acquiring paying subscribers and other members to our Discord servers and potential customers of our

1 unchanged sentence

We expect that we will increase sales and revenues from increased Discord members and customers of our paid services from

the expansion of our AE.360.DDM service and expansion of our STOCKS, CRYPTOS and REALTY Discord servers.

One of the ways we can increase our Discord users

and customer base is to utilize our “SiN” or “Social Influencer Network,” our social influencer independent contractors.

Each of our SiN social influencer independent contractors can perform social media outreach to expand our Discord server bases and increase

membership in our Discord servers.

When we use our social influencers to increase our user base, we have the right to preapprove and remove

the influencer’s posts at our discretion.

the expansion of our AE.360.DDM service and expansion of our Discord servers.

One of the ways we can increase our

Discord users and customer base is to utilize our “SiN” or “Social Influencer Network,” our social influencer

independent contractors.

Each of our SiN social influencer independent contractors can perform social media outreach to expand our Discord

server bases and increase membership in our Discord servers.

When we use our social influencers to increase our user base, we have the

right to preapprove and remove the influencer’s posts at our discretion.

They are generally paid on a commission-only basis.

Typical payment terms are a dollar

amount for a certain number of new member signups or subscription net revenue.

We may also commission them to provide premium video education

series with revenue-sharing provisions for any related subscription fees.

We generally own all content produced by our SiN influencers.

payment terms are a dollar amount for a certain number of new member signups or subscription net revenue.

We may also commission them

to provide premium video education series with revenue-sharing provisions for any related subscription fees.

We generally own all content

produced by our SiN influencers.

Depending on each contract, we may require weekly meetings with the influencer.

Our SiN contracts are terminable on 30 days’ notice

our SiN and have customary confidentiality, nondisclosure, and noncompete provisions.

discussed above, we likewise offer the services of our SiN independent contractors to current and potential social media and marketing

We are also working to expand our user base by contracting with trained social media analysts in order to develop larger and

more long-term campaigns to promote our business.

We expect that these offerings may accelerate growth in client contracts for our social

media and marketing customer services.

AE.360.DDM service is expected to grow through multiple avenues including the use of SEO with Facebook and Google Ads, as well as our

targeted outreach to venture capitalists, social media influencers, digital technology brands, and other businesses.

We also expect that

revenues from this service will increase organically by showing our expertise in Discord design, development and management through our

own growing Discord communities.

2023 and through March 2024, we initiated an online marketing campaign and expanded use of SEO, Facebook Ads, Google Ads and Google Analytics

to accelerate customer acquisition for our AE.360.DDM service;

Our SiN contracts are

terminable on 30 days’ notice and have customary confidentiality, nondisclosure, and noncompete provisions.

As discussed above, we likewise offer

the services of our SiN independent contractors to current and potential social media and marketing customers.

We are also working to

expand our user base by contracting with trained social media analysts in order to develop larger and more long-term campaigns to promote

our business.

We expect that these offerings may accelerate growth in client contracts for our social media and marketing customer services.

Our AE.360.DDM service is expected to grow through

multiple avenues including the use of SEO with Facebook and Google Ads, as well as our targeted outreach to venture capitalists, social

media influencers, digital technology brands, and other businesses.

We also expect that revenues from this service will increase organically

by showing our expertise in Discord design, development and management through our own growing Discord communities.

During 2023 and the first quarter of 2024, we

initiated an online marketing campaign and expanded use of SEO, Facebook Ads, Google Ads and Google Analytics to accelerate customer acquisition

for our AE.360.DDM service;

launched a new AE.360.DDM website;

engaged music producer Jeff Blue as

Head of Entertainment to lead the development of the AE.360.DDM Music and Entertainment A&R service;

hired a Senior Project Manager

for all Discord servers under the AE.360.DDM suite of services;

engaged music producer Jeff Blue as Head of Entertainment to lead the development

of the AE.360.DDM Music and Entertainment A&R service;

hired a Senior Project Manager for all Discord servers under the AE.360.DDM

suite of services;

introduced a ChatGPT AI bot as an AE.360.DDM Discord server customer service feature;

engaged professional golfers

Bryson DeChambeau and Scott Verplank to promote the AE.360.DDM service;

and engaged Michael Irvin, American sports commentator and former

professional football player, to provide marketing services for the AE.360.DDM service;

launched an official YouTube channel, “The

Lounge,” which has featured podcast interviews with celebrities, sports figures, business professionals, and more, and where interviews

will focus on each guest’s journey through life;

expanded the AE.360.DDM service with Ternary V2, the next generation of the Ternary

Stripe-verified payment processing platform for Discord communities;

introduced a ChatGPT AI bot as an AE.360.DDM Discord server customer

service feature;

engaged professional golfers Bryson DeChambeau and Scott Verplank to promote the AE.360.DDM service;

and engaged Michael

Irvin, American sports commentator and former professional football player, to provide marketing services for the AE.360.DDM service;

launched an official YouTube channel, “The Lounge,” which will feature podcast interviews with celebrities, sports figures,

business professionals, and more, and where interviews will focus on each guest’s journey through life;

expanded the AE.360.DDM service

with Ternary V2, the next generation of the Ternary Stripe-verified payment processing platform for Discord communities;

and introduced

a ChatGPT AI bot as an AE.360.DDM Discord server customer service feature.

we do not have any competitors that compete with us across our business in its entirety, we face competition in certain aspects of our

Our products and services face competition from different businesses depending on the offering.

education components of our investment education and entertainment services have the following primary competitors:

Discord Server – Stocks and options trading communities with real traders providing

fees range from $38/month to $988 for a lifetime membership.

Their Discord server

had approximately 116,000 members as of March 2024.

WallStreetBets Discord Server and Subreddit – These are generally free services where anyone can offer advice on high-risk investing in stocks, options, and futures trading.

Their Discord server has approximately 527,000 members and their subreddit had approximately 15 million registered users as of March 2024.

Investors – An online investment education service provided by investment advisory

and entered into an agreement with Zendrop, an industry leader in dropshipping and ecommerce, to provide CRM, Discord

customer analytics, payment processing, and related services.

In June 2024, we acquired the assets of TommyBoyTV,

a company engaged in the business of Discord development, social media, online community management, marketing, and analytics, expanding

the Company’s share of the Discord community market.

In October-November 2024, we were selected to design, develop,

and manage the Discord servers for Maxx Talent Awards, a premier platform for showcasing the talents of aspiring actors, models,

social media influencer, American fitness model, training specialist, actor, and entrepreneur, Scott Mathison;

Grammy Award-winning R&B and soul singer, songwriter, producer and actress Macy Gray;

and dog behavioralist Jas Leverette,

star of the Netflix show Canine Intervention .

In November 2024, we acquired the assets of the

TikTok Shop space known as the TikTok Money Machine, which included its Discord community.

The Discord community teaches content creators

how to sell products on TikTok Shop via the use of product content videos.

It also connects major consumer product brands with these content

creators, offering the latter the opportunity to earn sales commissions, via their TikTok accounts, on each product sale completed.

also secured consulting agreements with TikTokers and lead creators of the Discord, who have an aggregate of approximately 280,000 followers

on Instagram and 4,700,000 followers on TikTok.

In November 2024, we signed an agreement with

our Head of Entertainment, Jeff Blue, to acquire a 50% ownership interest in all film, TV, streaming and media

rights to Blue’s story, One Step Closer:

From Xero to #1:

Becoming Linkin Park .

Under the agreement, we also engaged

Blue to write the screenplay.

Published by Simon & Schuster/Posthill Press in 2020, One Step Closer:

From Xero to #1:

Becoming Linkin Park has been translated into seven different languages.

In December 2024, we were approved as a TikTok

Shop Partner.

We plan to work with TikTok to connect brands with creators and help them collaborate further in the affiliate marketing

While we do not have any competitors

that compete with us across our business in its entirety, we face competition in certain aspects of our business.

Our products and services

face competition from different businesses depending on the offering.

The education components of our investment

education and entertainment services have the following primary competitors:

● Xtrades Discord Server – Stocks and options trading communities with real traders providing

their advertised monthly fee is $38.

Their Discord server had approximately 110,000 members as of March 2025.

● WallStreetBets Discord Server and Subreddit – These are generally free services where anyone

can offer advice on high-risk investing in stocks, options, and futures trading.

Their Discord server has approximately 484,305 members

and their subreddit had approximately 18 million registered users as of March 2025.

● Eagle Investors – An online investment education service provided by investment advisory

firm Eagle Investments LLC.

They manage a Discord server which includes a free investor community,

a number of channels on diverse topics, and free webinars.

They also offer premium-only content

for $27 or $87 per month for different levels of access to trading alerts on their Discord

They also offer paid stocks and options training courses for $400 per course not

including discounts, and private one-on-one sessions ranging from one to eight hours with

expert traders at varying prices.

Their Discord server had approximately 165,000 members

as of March 2024.

social media marketing and advertising competitors primarily include social media influencers who are the owners of alternative Discord

servers and social media education and entertainment services, which may detract from our current and potential paying subscriber base

and customers of our other services.

These competitors include:

● @Fourtoeight

– A social influencer who is the owner of the Discord server Wiseguyinvesting.

Wiseguyinvesting offers several payment plans for investment education resources and other

Its community size is similar to ours.

Its plans range from $25 per week to $800

● @moneylinemark

– A social influencer who owns the “StockVIP” Discord server with approximately

262,000 members.

They manage a Discord server which includes a free investor community, a number of channels on diverse topics,

and free webinars.

They also offer premium-only content for $67 to $140 per month for different levels of access to trading alerts on

their Discord server.

They also offer paid stocks and options training courses for $400 per course not including discounts, and private

one-on-one sessions ranging from one to eight hours with expert traders at varying prices.

Their Discord server had approximately 156,000

members as of March 2025.

Our social media marketing and advertising

competitors primarily include social media influencers who are the owners of alternative Discord servers and social media education and

entertainment services, which may detract from our current and potential paying subscriber base and customers of our other services.

competitors include:

● @Fourtoeight – A social influencer who is the owner of the Discord server Wiseguyinvesting.

Wiseguyinvesting offers several payment plans for investment education resources and other features.

Its community size is similar to

Its plans range from $25 per week to $800 per year as of March 2025.

● @moneylinemark – A social influencer who owns the “StockVIP”

Discord server with approximately 254,000 members as of March 2025.

Their revenue model relies 100% on Discord memberships.

are not aware of any competitors for our AE.360.DDM suite of services.

believe that we have other competitive strengths, some of which are discussed below, that position us favorably in each aspect of our

However, the technology industry is evolving rapidly and is increasingly competitive.

A variety of business models are being

pursued or may be considered for the provision of digital learning tools, some of which may be more profitable or successful than our

business model.

believe that we have competitive strengths, some of which are discussed below, that position us favorably in each aspect of our business.

We believe our key competitive strengths include the following:

Social Influencer Team .

aware of any competitors for our AE.360.DDM suite of services.

We believe that we have other competitive strengths,

some of which are discussed below, that position us favorably in each aspect of our business.

However, the technology industry is evolving

rapidly and is increasingly competitive.

A variety of business models are being pursued or may be considered for the provision of digital

learning tools, some of which may be more profitable or successful than our business model.

Our Strengths

We believe that we have competitive

strengths, some of which are discussed below, that position us favorably in each aspect of our business.

We believe our key competitive

strengths include the following:

● Superior Social Influencer Team .

We believe that our greatest competitive strength is our

Our blend of young, dynamic, entrepreneurial executive social influencers are part

of Generation Z and understand their needs and interests.

Moreover, our executive team includes

professionals with two or more decades of accounting, legal, technology, sales, and management

experience including our Executive Chairman, who has practiced law for over 25 years;

Chief Financial Officer, a Certified Public Accountant, or CPA, with over ten years of experience

in finance and accounting;

our Chief Experience Officer, who has been in the technology and

marketing management field for over two decades;

and our Chief Technology Officer, a former

Salesforce Inc.

Senior Solution Engineer, who joined us in connection with our Ternary and

OptionsSwing assets acquisitions.

We believe that we have a unique combination of knowledge,

global experience and business acumen to sustain long-term growth.

● First-Mover

Our blend of young, dynamic, entrepreneurial executive social influencers are part of Generation Z and understand their needs

and interests.

Moreover, our executive team includes professionals with two or more decades of accounting, legal, technology, sales, and

management experience including our Executive Chairman, who has practiced law for over 25 years;

our Chief Financial Officer, a Certified

Public Accountant, or CPA, with over ten years of experience in finance and accounting;

and our Chief Technology Officer, a former Salesforce

Senior Solution Engineer.

We believe that we have a unique combination of knowledge, global experience and business acumen to sustain

long-term growth.

● First-Mover Advantage .

We believe that our AE.360.DDM service is a first-of-its-kind business

developed by our company to design, develop, and manage Discord servers for customers wanting

to create their own Discord communities for their business.

With our superior understanding

of the Discord platform, we can provide the technology and speed to market which customers

developed by our company to design, develop, and manage Discord servers for customers wanting to create their own Discord communities

for their business.

With our superior understanding of the Discord platform, we can provide the technology and speed to market which customers

require to set up successful Discord servers.

● Best-in-Class

Investment Education, Entertainment and Technology .

● Best-in-Class Investment Education, Entertainment and Technology .

Our insights into compelling

investment education and entertainment methods and subjects for Gen Z and other types of

interested customers;

experience creating communities for Gen Z and social media consumers;

and our growing social influencer network, or “SiN”, and related content publishing

network, are some of the hallmarks of our business.

investment education and entertainment methods and subjects for Gen Z and other types of interested customers;

experience creating communities

for Gen Z and social media consumers;

and our social influencer network, or “SiN”, and related content publishing network,

are some of the hallmarks of our business.

● Service Synergy .

Each of our operating business categories has the ability to be a standalone

business, but all are housed within our single Asset Entities enterprise.

With each deployment

of additional services, we have historically experienced organic growth in our other businesses.

Growth Strategies

key elements of our strategy to expand our business include the following:

Our Social Influencer Network .

With each deployment of additional services, we have historically

experienced organic growth in our other businesses.

Our Growth Strategies

The key elements of our strategy to expand our

business include the following:

● Expand Our Social Influencer Network .

Our growth has been grounded on our team of social

In order to generate even greater momentum for the growth of our services, we

will continue to expand our “SiN” social influencer network.

We plan to bring

top current and former athletes, celebrities, and rising and high-profile social influencers

In order to generate even greater momentum for the growth of our services, we will seek to expand our “SiN” social

influencer network.

We plan to continue to bring top current and former athletes, celebrities, and rising and high-profile social influencers

into our SiN network to promote our established and newer Discord servers.

We have also begun

utilizing our SiN network to accelerate the growth of our social media and marketing service.

Discord Server Community Outreach .

We will continue to seek accelerated growth in

Discord server paying subscriber revenues from strategic pricing of varying levels of access

to our Discord communities.

Moreover, we will leverage our Discord servers to help increase

our social media reach and cross-market to our other services.

the AE.360.DDM Service .

During 2023 and through March 2024, we initiated an online

marketing campaign and expanded use of SEO, Facebook Ads, Google Ads and Google Analytics

to accelerate customer acquisition for our AE.360.DDM service;

launched a new AE.360.DDM

engaged music producer Jeff Blue as Head of Entertainment to lead the development

of the AE.360.DDM Music and Entertainment A&R service;

hired a Senior Project Manager

for all Discord servers under the AE.360.DDM suite of services;

introduced a ChatGPT AI bot

as an AE.360.DDM Discord server customer service feature;

engaged professional golfers Bryson

DeChambeau and Scott Verplank to promote the AE.360.DDM service;

and engaged Michael Irvin,

American sports commentator and former professional football player, to provide marketing

services for the AE.360.DDM service;

launched an official YouTube channel, “The Lounge,”

which will feature podcast interviews with celebrities, sports figures, business professionals,

and more, and where interviews will focus on each guest’s journey through life;

the AE.360.DDM service with Ternary V2, the next generation of the Ternary Stripe-verified

payment processing platform for Discord communities;

and introduced a ChatGPT AI bot as an

We have also begun utilizing our SiN network to accelerate

the growth of our social media and marketing service.

● Leverage Discord Server Community Outreach .

We will continue to seek accelerated growth

in Discord server paying subscriber revenues from strategic pricing of varying levels of access to our Discord communities.

we will leverage our Discord servers to help increase our social media reach and cross-market to our other services.

● Expand the AE.360.DDM Service .

During 2023 and through March

2024, we initiated an online marketing campaign and expanded use of SEO, Facebook Ads, Google Ads and Google Analytics to accelerate customer

acquisition for our AE.360.DDM service;

launched a new AE.360.DDM website;

engaged music producer Jeff Blue as Head of Entertainment to

lead the development of the AE.360.DDM Music and Entertainment A&R service;

hired a Senior Project Manager for all Discord servers

under the AE.360.DDM suite of services;

introduced a ChatGPT AI bot as an AE.360.DDM Discord server customer service feature;

professional golfers Bryson DeChambeau and Scott Verplank to promote the AE.360.DDM service;

and engaged Michael Irvin, American sports

commentator and former professional football player, to provide marketing services for the AE.360.DDM service;

launched an official YouTube

channel, “The Lounge,” which will feature podcast interviews with celebrities, sports figures, business professionals, and

more, and where interviews will focus on each guest’s journey through life;

expanded the AE.360.DDM service with Ternary V2, the

next generation of the Ternary Stripe-verified payment processing platform for Discord communities;

introduced a ChatGPT AI bot as an

AE.360.DDM Discord server customer service feature;

and Leverage Synergies from the AE.360.DDM Service .

and entered into an agreement with Zendrop, an industry leader in dropshipping and

ecommerce, to provide CRM, Discord customer analytics, payment processing, and related services.

2024, we acquired the assets of TommyBoyTV, a company engaged in the business of Discord development, social media, online community

management, marketing, and analytics, expanding the Company’s share of the Discord community market.

In October-November 2024, we

were selected to design, develop, and manage the Discord servers for Maxx Talent Awards, a premier platform for showcasing

the talents of aspiring actors, models, and singers;

social media influencer, American fitness model, training specialist, actor,

and entrepreneur, Scott Mathison;

Grammy Award-winning R&B and soul singer, songwriter, producer and actress Macy Gray;

and dog behavioralist Jas Leverette, star of the Netflix show Canine Intervention .

● Market and Leverage Synergies from the AE.360.DDM Service .

We will further use and expand

this service to create synergies and income-producing revenue streams that complement our

other business categories.

this service to create synergies and income-producing revenue streams that complement our other business categories.

Intellectual Property

January 12, 2021, we submitted an application to the United States Patent and Trademark Office, or USPTO, for a trademark for our logo

containing the phrase “Asset Entities Where Assets Are Created”.

The USPTO requested certain information to support this

trademark filing.

On January 21, 2022, we responded to the USPTO’s initial request.

On February 25, 2022, the USPTO requested additional

information to support this trademark filing.

The original deadline to address this request, August 25, 2022, was extended.

As of October

31, 2022, the Company had determined to submit an application for a new trademark.

On January 28, 2022, we submitted an application for

a trademark for “AE 360 DDM” and its corresponding logo.

We also expect to file for a trademark on “SiN”, for

our “Social Influencer Network”, or our social influencer independent contractors.

These trademarks are central to several

of our marketing efforts, and we believe they are important to how prospective customers identify our brand.

We also own rights to the

assetentities.com Internet domain name.

On November 10, 2023, we acquired the rights to

the trademarks “Ternary D” and “OptionsSwing”, the domain names ternarydev.com and optionsswing.com, the social

media handle @optionsswing on Instagram, Facebook, TikTok, YouTube, and X, the social media handle @TernaryDevelopments on Instagram,

the social media handle @TernaryDev on Facebook, TikTok and X, and the Ternary Developments and OptionsSwing Discord servers, in connection

with the asset purchase agreement by and among Asset Entities Inc., Ternary Inc., Ternary Developments Inc., OptionsSwing Inc., and Jason

Lee, dated as of November 10, 2023.

As of March 31, 2024, we had 11 full-time employees

and 28 independent contractors.

Our independent contractors include approximately 27 Discord server moderators, analysts, server developers,

software developers, customer service, sales, and marketing outreach.

We expect to hire up to approximately 50 other independent contractors,

as needed, for our Discord-based social media and services with some of the proceeds of this offering.

None of our personnel are represented

by labor unions, and we believe that we have an excellent relationship with everyone who works with us.

We operate the Company under remote-first

do not experience significant seasonality in our sales cycle.

are subject to several laws and regulations that affect companies conducting business on the Internet, many of which are still evolving

and could be interpreted in ways that could harm our business.

The way existing laws and regulations will be applied to the Internet

and how they will relate to our business, are often unclear.

For example, we often cannot be certain how existing laws will apply in

the e-commerce and online context, including with respect to such topics as privacy, defamation, pricing, credit card fraud, advertising,

taxation, sweepstakes, promotions, content regulation, quality of products and services, and intellectual property ownership and infringement.

laws and regulatory schemes have been adopted at the national and state level in the United States, and in some cases internationally,

that have a direct impact on our business and operations.

Controlling the Assault of Non-Solicited Pornography And Marketing Act, as amended (the “CAN-SPAM

Act”), and similar laws adopted by several states, regulate unsolicited commercial

emails, create criminal penalties for emails containing fraudulent headers, and control other

abusive online marketing practices.

The law also restricts data collection and use in connection

with its opt-out process requirements for senders of commercial emails.

We own common law rights to certain

marks, including “Asset Entities Where Assets Are Created”, “SiN”, “Social Influencer Network”, and

“AE 360 DDM”.

We also own rights to the assetentities.com Internet domain name.

We own the trademarks “Ternary

D” and “OptionsSwing”, the domain names ternarydev.com and optionsswing.com, the social media handle @optionsswing on

Instagram, Facebook, TikTok, YouTube, and X, the social media handle @TernaryDevelopments on Instagram, the social media handle @TernaryDev

on Facebook, TikTok and X, and the Ternary Developments and OptionsSwing Discord servers.

We also own The Whop, Instagram, TikTok, YouTube,

and Facebook social media accounts and PayPal and Stripe accounts relating to the Pure Profits Group Discord and TikTok Shop services.

Human Capital

As of March 25, 2025, we had nine full-time employees, one executive

consultant, and 41 independent contractors, some of which serve as Discord server moderators, analysts, server developers, customer service,

sales, and marketing outreach.

None of our personnel are represented by labor unions, and we believe that we have an excellent relationship

with everyone who works with us.

We operate the Company under remote-first principles.

We do not experience significant seasonality in

our sales cycle.

Government Regulation

We are subject to several laws and regulations

that affect companies conducting business on the Internet, many of which are still evolving and could be interpreted in ways that could

harm our business.

The way existing laws and regulations will be applied to the Internet and how they will relate to our business, are

often unclear.

For example, we often cannot be certain how existing laws will apply in the e-commerce and online context, including with

respect to such topics as privacy, defamation, pricing, credit card fraud, advertising, taxation, sweepstakes, promotions, content regulation,

quality of products and services, and intellectual property ownership and infringement.

Numerous laws and regulatory schemes

have been adopted at the national and state level in the United States, and in some cases internationally, that have a direct impact on

our business and operations.

● The Protecting Americans from Foreign Adversary Controlled Applications Act (the “PAFACA

Act”) was adopted on April 24, 2024, and bans social networking services within 270 to 360 days if they are determined by the president

of the United States and relevant provisions to be a “foreign adversary controlled application”.

The definition covers websites

and application software, including mobile apps.

The PAFACA Act explicitly applies to ByteDance Ltd.

and its subsidiaries, including TikTok,

without the need for additional determination.

It ceases to be applicable if the foreign adversary-controlled application is divested

and no longer considered to be controlled by a foreign adversary of the United States.

● The Controlling the Assault of Non-Solicited Pornography And Marketing Act, as amended (the “CAN-SPAM

Act”), and similar laws adopted by several states, regulate unsolicited commercial emails, create criminal penalties for emails

containing fraudulent headers, and control other abusive online marketing practices.

The law also restricts data collection and use in

connection with its opt-out process requirements for senders of commercial emails.

Similarly, the U.S.

Federal Trade Commission (“FTC”) has guidelines that impose responsibilities

on us with respect to communications with consumers and impose fines and liability for failure

to comply with rules with respect to advertising or marketing practices it may deem misleading

or deceptive.

federal Telephone Consumer Protection Act of 1991 (“TCPA”) restricts telemarketing

and the use of automated telephone equipment.

The TCPA limits the use of automatic dialing

systems, artificial or prerecorded voice messages, SMS text messages, and fax machines.

also applies to unsolicited text messages advertising the commercial availability of goods

Federal Trade Commission (“FTC”)

has guidelines that impose responsibilities on us with respect to communications with consumers and impose fines and liability for failure

to comply with rules with respect to advertising or marketing practices it may deem misleading or deceptive.

● The federal Telephone Consumer Protection Act of 1991 (“TCPA”) restricts telemarketing and

the use of automated telephone equipment.

The TCPA limits the use of automatic dialing systems, artificial or prerecorded voice messages,

SMS text messages, and fax machines.

It also applies to unsolicited text messages advertising the commercial availability of goods or

Additionally, several states have enacted statutes that address telemarketing.

For example, some states, such as California, Illinois, and New York, have created do-not-call

For example, some states, such as California,

Illinois, and New York, have created do-not-call lists.

Other states, such as Oregon and Washington, have enacted “no rebuttal statutes”

that require the telemarketer to end the call when the consumer indicates that such person

is not interested in the product being sold.

Restrictions on telephone marketing, including

calls and text messages, are enforced by the FTC, the Federal Communications Commission,

states, and through the availability of statutory damages and class action lawsuits for violations

Credit Card Accountability Responsibility and Disclosure Act of 2009, and similar laws and

regulations adopted by several states regulate credit card and gift certificate use fairness,

including expiration dates and fees.

Our business also requires that we comply with payment

card industry data security and other standards.

We are subject to payment card association

operating rules, certification requirements, and rules governing electronic funds transfers,

which could change or be reinterpreted to make it difficult or impossible for us to comply.

If we fail to comply with these rules or requirements, or if our data security systems are

breached or compromised, we may be liable for card issuing banks’ costs, subject to

fines and higher transaction fees, and lose our ability to accept credit and debit card payments

from our customers, process electronic funds transfers, or facilitate other types of online

payments, and our business and results of operations could be adversely affected.

Digital Millennium Copyright Act provides relief for claims of circumvention of copyright

protected technologies and includes a safe harbor intended to reduce the liability of online

service providers for hosting, listing, or linking to third-party content that infringes

copyrights of others.

Communications Decency Act provides that online service providers will not be considered

the publisher or speaker of content provided by others, such as individuals who post content

on an online service provider’s website.

California Consumer Privacy Act (“CCPA”), which went into effect on January 1,

2020, provides consumers the right to know what personal data companies collect, how it is

used, and the right to access, delete, and opt out of the sale of their personal information

to third parties.

It also expands the definition of personal information and gives consumers

increased privacy rights and protections for that information.

The CCPA also includes special

requirements for California consumers under the age of 16.

In addition, the European Union

and United Kingdom have adopted the General Data Protection Regulation (“GDPR”),

which likewise impose significant data protection obligations on enterprises, including limitations

on data uses and constraints on certain uses of sensitive data.

Effective January 1, 2023,

we also became subject to the California Privacy Rights Act (“CPRA”), which expands

upon the consumer data use restrictions, penalties and enforcement provisions under the CCPA.

Consumer Data Protection Act (“VCDPA”) establishes rights for Virginia consumers

to control how companies use individuals’ personal data.

The VCDPA dictates how companies

must protect personal data in their possession and respond to consumers exercising their

rights, as prescribed by the law, regarding such personal data.

The VCDPA went into effect

on January 1, 2023.

The Colorado Privacy Act and Connecticut’s An Act Concerning Personal

Data Privacy and Online Monitoring (“CDPA”), effective as of July 1, 2023, are

similar comprehensive consumer privacy laws in Colorado and Connecticut, respectively.

as of December 31, 2023 and January 1, 2025, the Utah Consumer Privacy Act (“UCPA”),

and the Iowa Consumer Privacy Act (“ICPA”), will also regulate business handling

of consumers’ personal data in Utah and Iowa, respectively.

European Union (the “EU”) General Data Protection Regulation (“GDPR”)

imposes stringent requirements for controllers and processors of personal data of persons

in the EU, including, for example, more robust disclosures to individuals and a strengthened

individual data rights regime, shortened timelines for data breach notifications, limitations

on retention of information, increased requirements pertaining to special categories of data,

and additional obligations when we contract with third-party processors in connection with

the processing of the personal data.

The GDPR also imposes strict rules on the transfer of

personal data out of the EU to the United States and other third countries.

the GDPR provides that EU member states may make their own further laws and regulations limiting

the processing of personal data.

GDPR applies extraterritorially, and we may be subject to the GDPR because of our data processing activities that involve the personal

data of individuals located in the EU, such as in connection with our EU-based students.

Failure to comply with the requirements of the

GDPR and the applicable national data protection laws of the EU member states may result in fines of up to €20,000,000 or up to

4% of the total worldwide annual turnover of the preceding financial year, whichever is higher, and other administrative penalties.

regulations may impose additional responsibility and liability in relation to the personal data that we process, and we may be required

to put in place additional mechanisms to ensure compliance with the new data protection rules.

the withdrawal of the United Kingdom from the EU and the expiry of the transition period, from January 1, 2021, the United Kingdom Data

Protection Act 2018 (“UK GDPR”) retains in large part the GDPR in United Kingdom national law.

The UK GDPR mirrors the fines

under the GDPR, e.g., we could be fined up to the greater of €20 million/£17.5 million or 4% of global turnover under each

Children’s Online Privacy Protection Act (“COPPA”), the GDPR, and the UK GDPR impose additional restrictions

on the ability of online services to collect information from minors.

In addition, certain states, including Utah and Massachusetts,

have laws that impose criminal penalties on the production and distribution of content that is “harmful to a minor.”

Advisers Act of 1940

Investment Advisers Act of 1940 (the “Investment Advisers Act”), and the rules adopted under that statute, a person

or firm is required to register with the SEC if the person or firm is:

“investment adviser” under Section 202(a)(11) of the Investment Advisers Act;

excepted from the definition of investment adviser by Section 202(a)(11)(A) through (E) of

the Investment Advisers Act;

exempt from SEC registration under Section 203(b) of the Investment Advisers Act;

prohibited from SEC registration by Section 203A of the Investment Advisers Act.

state laws may have similar registration requirements.

to certain limited exclusions, Section 202(a)(11) of the Investment Advisers Act generally defines an “investment adviser”

as any person or firm that:

that require the telemarketer to end the call when the consumer indicates that such person is not interested in the product being sold.

Restrictions on telephone marketing, including calls and text messages, are enforced by the FTC, the Federal Communications Commission,

states, and through the availability of statutory damages and class action lawsuits for violations of the TCPA.

● The Credit Card Accountability Responsibility and Disclosure Act of 2009, and similar laws and regulations

adopted by several states regulate credit card and gift certificate use fairness, including expiration dates and fees.

Our business also

requires that we comply with payment card industry data security and other standards.

We are subject to payment card association operating

rules, certification requirements, and rules governing electronic funds transfers, which could change or be reinterpreted to make it difficult

or impossible for us to comply.

If we fail to comply with these rules or requirements, or if our data security systems are breached or

compromised, we may be liable for card issuing banks’ costs, subject to fines and higher transaction fees, and lose our ability

to accept credit and debit card payments from our customers, process electronic funds transfers, or facilitate other types of online payments,

and our business and results of operations could be adversely affected.

● The Digital Millennium Copyright Act provides relief for claims of circumvention

of copyright protected technologies and includes a safe harbor intended to reduce the liability of online service providers for hosting,

listing, or linking to third-party content that infringes copyrights of others.

● The Communications Decency Act provides that online service providers will not be

considered the publisher or speaker of content provided by others, such as individuals who post content on an online service provider’s

● The California Consumer Privacy Act (“CCPA”), which went into effect

on January 1, 2020, provides consumers the right to know what personal data companies collect, how it is used, and the right to access,

delete, and opt out of the sale of their personal information to third parties.

It also expands the definition of personal information

and gives consumers increased privacy rights and protections for that information.

The CCPA also includes special requirements for California

consumers under the age of 16.

In addition, the European Union and United Kingdom have adopted the General Data Protection Regulation

(“GDPR”), which likewise impose significant data protection obligations on enterprises, including limitations on data uses

and constraints on certain uses of sensitive data.

Effective January 1, 2023, we also became subject to the California Privacy Rights

Act (“CPRA”), which expands upon the consumer data use restrictions, penalties and enforcement provisions under the CCPA.

● Virginia’s Consumer Data Protection Act (“VCDPA”) establishes

rights for Virginia consumers to control how companies use individuals’ personal data.

The VCDPA dictates how companies must protect

personal data in their possession and respond to consumers exercising their rights, as prescribed by the law, regarding such personal

The VCDPA went into effect on January 1, 2023.

● The Colorado Privacy Act (the “CPA”) and

Connecticut’s An Act Concerning Personal Data Privacy and Online Monitoring (“CDPA”) ,

effective as of July 1, 2023, are similar comprehensive consumer privacy laws in Colorado and Connecticut, respectively.

● Effective as of December 31, 2023 , the Utah Consumer Privacy

Act (“UCPA”) regulates business handling of consumers’ personal data in Utah.

● In addition, the following other state laws have become effective

or will become effective within the next 12 months:

o The Texas Data Privacy and Security Act (effective as of July 1,

o The Oregon Consumer Privacy Act (effective as of July 1, 2024)

o The Montana Consumer Data Privacy Act ( effective

as of October 1, 2024)

● Effective as of January 1, 2025, the Iowa Consumer Privacy

Act (“ICPA”), the Delaware Personal Data Privacy Act (“DPDPA”), the Nebraska Data Privacy Act (“NEDPA”),

the New Hampshire Data Privacy Act (“NHDPA”), became comprehensive privacy laws

in Iowa, Delaware, Nebraska, and New Hampshire , respectively.

● Effective as of January 15, 2025, the New Jersey Data Protection

Act (“NJDPA”) became a comprehensive privacy law in New Jersey.

● Effective as of July 1, 2025, the Minnesota Consumer Data Privacy Act (“MCDPA”) and the Tennessee

Information Protection Act (“TIPA”) will become comprehensive privacy laws in Minnesota and Tennessee, respectively.

● Effective as of October 1, 2025, the Maryland Online Data Privacy Act of 2024 (“MODPA”)

will become a comprehensive privacy law in Maryland.

● Effective as of January 1, 2026, the Indiana Consumer Data Protection Act (“ICDPA”),

the Kentucky Consumer Data Protection Act (“KCDPA”), and the Rhode Island Data Transparency and Privacy Protection Act (“RIDTPPA”)

will become comprehensive privacy laws in Indiana, Kentucky, and Rhode Island, respectively.

● The European Union (the “EU”) General Data Protection Regulation (“GDPR”)

imposes stringent requirements for controllers and processors of personal data of persons in the EU, including, for example, more robust

disclosures to individuals and a strengthened individual data rights regime, shortened timelines for data breach notifications, limitations

on retention of information, increased requirements pertaining to special categories of data, and additional obligations when we contract

with third-party processors in connection with the processing of the personal data.

The GDPR also imposes strict rules on the transfer

of personal data out of the EU to the United States and other third countries.

In addition, the GDPR provides that EU member states may

make their own further laws and regulations limiting the processing of personal data.

The GDPR applies extraterritorially,

and we may be subject to the GDPR because of our data processing activities that involve the personal data of individuals located in the

EU, such as in connection with our EU-based students.

Failure to comply with the requirements of the GDPR and the applicable national

data protection laws of the EU member states may result in fines of up to €20,000,000 or up to 4% of the total worldwide annual turnover

of the preceding financial year, whichever is higher, and other administrative penalties.

GDPR regulations may impose additional responsibility

and liability in relation to the personal data that we process, and we may be required to put in place additional mechanisms to ensure

compliance with the new data protection rules.

Following the withdrawal of the

United Kingdom from the EU and the expiry of the transition period, from January 1, 2021, the United Kingdom Data Protection Act 2018

(“UK GDPR”) retains in large part the GDPR in United Kingdom national law.

The UK GDPR mirrors the fines under the GDPR, e.g.,

we could be fined up to the greater of €20 million/£17.5 million or 4% of global turnover under each regime.

The federal U.S.

Online Privacy Protection Act (“COPPA”), the GDPR, and the UK GDPR impose additional restrictions on the ability of online

services to collect information from minors.

In addition, certain states, including Utah and Massachusetts, have laws that impose criminal

penalties on the production and distribution of content that is “harmful to a minor.”

Investment Advisers Act of 1940

Under the Investment Advisers Act of 1940 (the “Investment Advisers

Act”), and the rules adopted under that statute, a person or firm is required to register with the SEC if the person or firm

● an “investment adviser” under Section 202(a)(11) of the Investment Advisers Act;

● not excepted from the definition of investment adviser by Section 202(a)(11)(A) through (E) of the Investment Advisers Act;

● not exempt from SEC registration under Section 203(b) of the Investment Advisers Act;

● not prohibited from SEC registration by Section 203A of the Investment Advisers Act.

Applicable state laws

may have similar registration requirements.

Subject to certain limited

exclusions, Section 202(a)(11) of the Investment Advisers Act generally defines an “investment adviser” as any person or firm

(1) for compensation;

(2) is engaged in the business of;

(3) providing advice, making recommendations, issuing

reports, or furnishing analyses on securities, either directly or through publications.

A person or firm must satisfy all three elements

to be regulated under the Investment Advisers Act.

SEC’s Division of Investment Management construes these elements broadly.

For example, with respect to “compensation,”

the receipt of any economic benefit suffices.

To be deemed compensation, a fee need not be separate from other fees charged, it need

not be designated as an advisory fee, and it need not be received directly from a client.

With respect to the “business”

element, an investment advisory business need not be the person’s or firm’s sole or principal business activity.

this element is satisfied under any of the following circumstances:

the person or firm holds himself or itself out as an investment adviser

or as providing investment advice;

(3) providing advice, making recommendations, issuing reports, or furnishing

analyses on securities, either directly or through publications.

A person or firm must satisfy all three elements to be regulated under

the Investment Advisers Act.

The SEC’s Division

of Investment Management construes these elements broadly.

For example, with respect to “compensation,” the receipt of any

economic benefit suffices.

To be deemed compensation, a fee need not be separate from other fees charged, it need not be designated as

an advisory fee, and it need not be received directly from a client.

With respect to the “business” element, an investment

advisory business need not be the person’s or firm’s sole or principal business activity.

Rather, this element is satisfied

under any of the following circumstances:

the person or firm holds himself or itself out as an investment adviser or as providing investment

the person or firm receives separate or additional compensation for providing advice about securities;

or the person or firm typically provides advice about specific securities or specific categories of securities.

Finally, a person or

firm satisfies the “advice about securities” element if the advice or reports relate to securities.

The Division has stated

that providing one or more of the following also could satisfy this element:

or the person or firm typically

provides advice about specific securities or specific categories of securities.

Finally, a person or firm satisfies the “advice

about securities” element if the advice or reports relate to securities.

The Division has stated that providing one or more of the

following also could satisfy this element:

advice about market trends;

advice in the form of statistical

or historical data (unless the data is no more than an objective report of facts on a non-selective basis);

advice about the selection

of an investment adviser;

advice concerning the advantages of investing in securities instead of other types of investments;

of securities from which a client can choose, even if the adviser does not make specific recommendations from the list.

An employee of

an SEC-registered investment adviser does not need to register separately, so long as all of the employee’s investment advisory activities

are within the scope of his employment.

of the statutory exclusions from the definition of “investment adviser” is the “publisher’s exclusion”.

Under Section 202(a)(11)(D) of the Investment Advisers Act, “the publisher of any bona fide newspaper, news magazine or business

or financial publication of general and regular circulation” is excluded from the “investment adviser” definition.

This “publisher’s exclusion” requires that product or service offerings must be:

(1) of a general and impersonal nature,

in that the research provided is not adapted to any specific portfolio or any client’s particular needs;

(2) “bona fide”

or genuine, in that it contains disinterested discussion and analysis as opposed to promotional material;

and (3) of general and regular

circulation, in that it is not timed to specific market activity or to events affecting, or having the ability to affect, the securities

The basis for reliance on such exclusion will depend on a facts-and-circumstances analysis.

services provided by the Company may cause the Company to meet the definition of “investment adviser” in the Investment Advisers

Act and similar state laws.

Under the Investment Advisers Act, an “investment adviser” is defined as a “person who,

for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of

securities or as to the advisability of investing in, purchasing, or selling securities, or who, for compensation and as part of a regular

business, issues or promulgates analyses or reports concerning securities.” In particular, certain of the content on the Company’s

Discord servers, such as trading diaries posted by the Company’s personnel, and other content available on the Company’s

social media channels, may constitute investment advice.

In addition, in general, disclaimers, such as those included with the Company’s

posts on Discord and other social media, do not change the character of the advice provided for Investment Advisers Act purposes.

Company relies on the “publisher’s exclusion” from the definition of “investment adviser” under Section

202(a)(11)(D) of the Investment Advisers Act, as described above and as interpreted by legal precedent.

We intend at all times to operate

our business in a manner as to not become inadvertently subject to the regulatory requirements under the Investment Advisers Act.

we meet the definition of “investment adviser” in the Investment Advisers Act, and do not meet the requirements for reliance

on the “publisher’s exclusion” from the definition of “investment adviser” or another exclusion, exemption,

or exception from the registration requirements under the Investment Advisers Act, we will have to register as an investment adviser

with the SEC pursuant to the Investment Advisers Act and potentially with one or more states under similar state laws.

Registration requirements

for investment advisers are significant.

If we are deemed to be an investment adviser and are required to register with the SEC and potentially

one or more states as an investment adviser, we will become subject to the requirements of the Investment Advisers Act and the corresponding

The Investment Advisers Act requires:

advice in the form of statistical or historical data (unless the

data is no more than an objective report of facts on a non-selective basis);

advice about the selection of an investment adviser;

concerning the advantages of investing in securities instead of other types of investments;

and a list of securities from which a client

can choose, even if the adviser does not make specific recommendations from the list.

An employee of an SEC-registered investment adviser

does not need to register separately, so long as all of the employee’s investment advisory activities are within the scope of his

One of the statutory

exclusions from the definition of “investment adviser” is the “publisher’s exclusion”.

Under Section 202(a)(11)(D)

of the Investment Advisers Act, “the publisher of any bona fide newspaper, news magazine or business or financial publication of

general and regular circulation” is excluded from the “investment adviser” definition.

This “publisher’s

exclusion” requires that product or service offerings must be:

(1) of a general and impersonal nature, in that the research provided

is not adapted to any specific portfolio or any client’s particular needs;

(2) “bona fide” or genuine, in that it contains

disinterested discussion and analysis as opposed to promotional material;

and (3) of general and regular circulation, in that it is not

timed to specific market activity or to events affecting, or having the ability to affect, the securities industry.

The basis for reliance

on such exclusion will depend on a facts-and-circumstances analysis.

Certain services provided

by the Company may cause the Company to meet the definition of “investment adviser” in the Investment Advisers Act and similar

Under the Investment Advisers Act, an “investment adviser” is defined as a “person who, for compensation,

engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to

the advisability of investing in, purchasing, or selling securities, or who, for compensation and as part of a regular business, issues

or promulgates analyses or reports concerning securities.” In particular, certain of the content on the Company’s Discord

servers, such as trading diaries posted by the Company’s personnel, and other content available on the Company’s social media

channels, may constitute investment advice.

In addition, in general, disclaimers, such as those included with the Company’s posts

on Discord and other social media, do not change the character of the advice provided for Investment Advisers Act purposes.

relies on the “publisher’s exclusion” from the definition of “investment adviser” under Section 202(a)(11)(D)

of the Investment Advisers Act, as described above and as interpreted by legal precedent.

We intend at all times to operate our business

in a manner as to not become inadvertently subject to the regulatory requirements under the Investment Advisers Act.

If we meet the definition of “investment

adviser” in the Investment Advisers Act, and do not meet the requirements for reliance on the “publisher’s exclusion”

from the definition of “investment adviser” or another exclusion, exemption, or exception from the registration requirements

under the Investment Advisers Act, we will have to register as an investment adviser with the SEC pursuant to the Investment Advisers

Act and potentially with one or more states under similar state laws.

Registration requirements for investment advisers are significant.

If we are deemed to be an investment adviser and are required to register with the SEC and potentially one or more states as an investment

adviser, we will become subject to the requirements of the Investment Advisers Act and the corresponding state laws.

The Investment Advisers

Act requires:

(i) fiduciary duties to clients;

(ii) substantive prohibitions and requirements;

contractual requirements;

(iv) record-keeping requirements;

and (v) administrative oversight by the SEC, primarily by inspection.

and obligations imposed on investment advisers can be burdensome and costly.

If it is deemed that we are out of compliance with such

rules and regulations, we may also be subject to civil and/or criminal penalties.

Applicable state laws may have similar or additional

(iii) contractual requirements;

(iv) record-keeping

requirements;

If we are required to register under these laws, we may no longer be able to continue to offer our investment education

and entertainment services, which may have a significant adverse impact on our business and results of operations.

Structure and History

and Merger into Asset Entities Inc.

began our operations as a general partnership on August 1, 2020.

Asset Entities Limited Liability Company, a California limited liability

company (“California LLC”), was formed on October 20, 2020 to operate our business.

Asset Entities Inc., a Nevada corporation,

was incorporated on March 9, 2022.

Immediately after the incorporation of Asset Entities Inc., all of the issued and outstanding stock

of Asset Entities Inc.

was purchased by California LLC in exchange for $1.00.

On March 28, 2022, in accordance with Sections 17710.01-17710.19,

inclusive, of the California Corporation Code and Chapter 92A of the Nevada Revised Statutes, California LLC was merged with and into

Asset Entities Inc.

As a result of the merger, Asset Entities Inc.

acquired the business of California LLC.

Pursuant to the Agreement

and Plan of Merger, the units of California LLC were automatically converted into shares of Asset Entities Inc.

in the same proportion

as the percentage interests of California LLC represented by such units.

As a result and as further provided in the Agreement and Plan

of Merger, on March 28, 2022, Asset Entities Holdings, LLC (“AEH”), which owned 97.56% of California LLC’s units, became

the holder of 9,756,000 shares of Class A Common Stock of Asset Entities Inc., or 97.56% of the total issued and outstanding post-merger

shares of common stock of Asset Entities Inc., and a holder of 2.44% of California LLC’s units became the holder of 244,000 shares

of Class B Common Stock of Asset Entities Inc., or 2.44% of the total issued and outstanding post-merger shares of common stock of Asset

Entities Inc.

Class Structure

our articles of incorporation, we are authorized to issue two classes of common stock, Class A Common Stock and Class B Common Stock,

and any number of classes of preferred stock.

Class A Common Stock is entitled to ten votes per share on proposals requiring or requesting

stockholder approval, and Class B Common Stock is entitled to one vote on any such matter.

A share of Class A Common Stock may be voluntarily

converted into a share of Class B Common Stock.

A transfer of a share of Class A Common Stock will result in its automatic conversion

into a share of Class B Common Stock upon such transfer, subject to certain exceptions, including that the transfer of a share of Class

A Common Stock to another holder of Class A Common Stock will not result in such automatic conversion.

Class B Common Stock is not convertible.

Other than as to voting and conversion rights, the Company’s Class A Common Stock and Class B Common Stock have the same rights

and preferences and rank equally, share ratably and are identical in all respects as to all matters.

In our initial public offering, we offered and sold shares of Class

B Common Stock to public investors (see “ — Initial Public Offering ” below).

AEH owns all of the 7,532,029

shares of our outstanding Class A Common Stock, which amounts to 75,320,290 votes.

The shares of Class A Common Stock held by AEH are

controlled by its officers and board of managers, all of whom are also some of our officers and directors.

Following the initial public

offering and as of March 29, 2024, there are 6,892,381 shares of Class B Common Stock issued and outstanding, 1,547,565 of which are held

by officers and directors as a result of (i) grants of restricted stock under the Plan that were made pursuant to such officers and directors’

employment or consulting agreements and (ii) the conversion of shares of Class A Common Stock into shares of Class B Common Stock upon

transfer of such shares to such officers and directors as the former indirect beneficial owners of such shares.

Stockholders that are

not officers and directors therefore currently own 5,344,816 shares of Class B Common Stock, representing approximately 6.5% of total

voting power.

Combining their control of AEH’s shares of Class A Common Stock and their Class B Common Stock, our officers and directors

collectively maintain controlling voting power in the Company based on having approximately 93.5% of all voting rights.

This concentrated

control may limit or preclude the ability of others to influence corporate matters including significant business decisions for the foreseeable

and Conversions of Class A Common Stock

April 21, 2022, we entered into a Cancellation and Exchange Agreement with each of AEH, the holder of 9,756,000 shares of Class A Common

Stock, GKDB AE Holdings, LLC (“GKDB”), the holder of 200,000 units of membership interests in AEH representing 20.0% ownership

of AEH, and certain holders of an aggregate of 790,000 units of membership interests in GKDB (the “2022 Former GKDB Holders”)

representing 39.5% ownership in GKDB.

In accordance with these agreements, we and AEH agreed to convert 770,724 shares of AEH’s

Class A Common Stock into 770,724 shares of Class B Common Stock and transfer such shares to GKDB, in exchange for GKDB’s agreement

to cancel and surrender 79,000 of GKDB’s 200,000 units of membership interests in AEH, representing the 2022 Former GKDB Holders’

39.5% share of GKDB’s total ownership interest in AEH.

GKDB in turn agreed to the cancellation of 79,000 of its AEH units and transfer

of the 770,724 shares of Class B Common Stock to the 2022 Former GKDB Holders in proportion to their former ownership interests in GKDB,

in exchange for the 2022 Former GKDB Holders’ agreement to cancel and surrender all of their units of membership interests in GKDB.

The 770,724 shares of Class B Common Stock transferred to the 2022 Former GKDB Holders were derived from the 2022 Former GKDB Holders’

approximately 7.9% nominal indirect interest in AEH’s 9,756,000 shares of Class A Common Stock, which in turn was derived from

the 2022 Former GKDB Holders’ 39.5% ownership of GKDB and, in turn, their nominal indirect interest in 79,000 of GKDB’s 200,000

units, or 20.0% ownership of AEH.

The 2022 Former GKDB Holders’ nominal indirect interest in AEH’s 9,756,000 shares of Class

A Common Stock was therefore automatically converted into ownership of 770,724 shares of Class B Common Stock upon the conversion and

transfer of this number of Class A Common Stock that were held by AEH to the 2022 Former GKDB Holders.

As a result of these transactions,

AEH held 8,985,276 shares of Class A Common Stock and the 2022 Former GKDB Holders held a total of 770,724 shares of Class B Common Stock.

October 6, 2022, under a Cancellation Agreement, each of Kyle Fairbanks, Jackson Fairbanks, Arman Sarkhani, and Arshia Sarkhani, each

being a member of AEH, agreed to cancel 15,375 units of membership interests in AEH, which represented each such member’s nominal

indirect interest in approximately 150,000 of AEH’s 8,985,276 shares of Class A Common Stock.

In exchange, AEH agreed to transfer

150,000 shares of Class A Common Stock to each of the four transferees designated by these members of AEH, for a transfer of a total

of 600,000 shares of Class A Common Stock.

AEH thereupon executed gift letters to each of the transferees of such shares of Class A Common

Upon the transfer of such shares of Class A Common Stock to the transferees, such transferred shares automatically converted to

shares of Class B Common Stock.

As a result of these transfers, AEH held 8,385,276 shares of Class A Common Stock.

February 22, 2024, we entered into a Cancellation and Exchange Agreement with each of AEH, the holder of 8,385,276 shares of Class A

Common Stock, GKDB, the holder of 603,953 units of membership interests in AEH representing approximately 13.2% ownership of AEH, and

certain holders of an aggregate of 308,073 units of membership interests in GKDB (the “2024 Former GKDB Holders”) representing

approximately 51.0% ownership in GKDB.

In accordance with these agreements, we and AEH agreed to convert 561,585 shares of AEH’s

Class A Common Stock into 561,585 shares of Class B Common Stock and transfer such shares to GKDB, in exchange for GKDB’s agreement

to cancel and surrender 308,073 of GKDB’s 603,953 units of membership interests in AEH, representing the 2024 Former GKDB Holders’

approximately 51.0% share of GKDB’s total ownership interest in AEH.

GKDB in turn agreed to the cancellation of 308,073 of its

AEH units and transfer of the 561,585 shares of Class B Common Stock to the 2024 Former GKDB Holders in proportion to their former ownership

interests in GKDB, in exchange for the 2024 Former GKDB Holders’ agreement to cancel and surrender all of their units of membership

interests in GKDB.

The 561,585 shares of Class B Common Stock transferred to the 2024 Former GKDB Holders were derived from the 2024

Former GKDB Holders’ approximately 6.7% nominal indirect interest in AEH’s 8,385,276 shares of Class A Common Stock, which

in turn was derived from the 2024 Former GKDB Holders’ approximately 51.0% ownership of GKDB and, in turn, their nominal indirect

interest in 308,073 of GKDB’s 603,953 units, or approximately 13.2% ownership of AEH.

The 2024 Former GKDB Holders’ nominal

indirect interest in AEH’s 8,385,276 shares of Class A Common Stock was therefore automatically converted into ownership of 561,585

shares of Class B Common Stock upon the conversion and transfer of this number of Class A Common Stock that were held by AEH to the 2024

Former GKDB Holders.

Additionally, on February 22, 2024, we entered into a Cancellation and Exchange Agreement with AEH and a holder

of 160,000 units of membership interests in AEH (the “2024 Former AEH Holder”), representing approximately 3.4% ownership

In accordance with this agreement, we and AEH agreed to convert 291,662 shares of AEH’s Class A Common Stock into 291,662

shares of Class B Common Stock and transfer such shares to the 2024 Former AEH Holder in exchange for the 2024 Former AEH Holder’s

agreement to cancel and surrender the 2024 Former AEH Holder’s 160,000 units of membership interests in AEH.

The 2024 Former AEH

Holder’s nominal direct interest in AEH’s 8,385,276 shares of Class A Common Stock was therefore automatically converted

into ownership of 291,662 shares of Class B Common Stock upon the conversion and transfer of this number of Class A Common Stock that

were held by AEH to the 2024 Former AEH Holder.

These share transfers were recorded with the transfer agent as of February 26, 2024.

As a result of these transactions, AEH held 7,532,029 shares of Class A Common Stock, the 2024 Former GKDB Holders held a total of 561,585

shares of Class B Common Stock, and the 2024 Former AEH Holder held 291,662 shares of Class B Common Stock.

Placements of Class B Common Stock

June 9, 2022, October 7, 2022, and October 21, 2022, we conducted private placements of shares of Class B Common Stock and entered into

certain subscription agreements with a number of investors.

Pursuant to the agreements, we issued 750,000 shares of Class B Common Stock

at $1.00 per share for a total of $750,000.

The shares were subject to certain lockup provisions until 365 days after the commencement

of trading of our Class B Common Stock, subject to certain exceptions.

However, these lockup provisions were fully waived.

If the Company’s

common stock had not been listed on a national securities exchange on or before the first anniversary of the final closing of the private

placement, then all of the private placement investors would have been entitled to receive one additional share for each share originally

Boustead Securities, LLC (“Boustead”), which was also the representative of the underwriters in our initial public

offering (see “— Initial Public Offering ” below), acted as placement agent in each private placement.

to our engagement letter agreement with Boustead, dated November 29, 2021 (the “Boustead Engagement Letter”), in addition

to payments of a success fee of $52,500, or 7% of the total purchase price of the shares sold in the private placements, and a non-accountable

expense allowance of $7,500, or 1% of the total purchase price of the shares sold in the private placement, we agreed to issue Boustead

five-year warrants to purchase up to 52,500 shares of Class B Common Stock in aggregate, exercisable on a cashless basis, with an exercise

price of $6.25 per share, subject to adjustment.

warrants also provide that if the Company declares or makes any dividend or other distribution of its assets (or rights to acquire its

assets) to holders of shares of common stock, by way of return of capital or otherwise (including, without limitation, any distribution

of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme

of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of the warrants, then, in

each such case, the holder shall be entitled to participate in such Distribution to the same extent that the holder would have participated

therein if the holder had held the number of shares of common stock acquirable upon a complete exercise of the warrant (without regard

to any limitations on exercise hereof) immediately before the date on which a record is taken for such Distribution, or, if no such record

is taken, the date as of which the record holders of shares of common stock are to be determined for the participation in such Distribution.

Notwithstanding the Boustead Engagement Letter, the warrants do not contain piggyback registration rights and do not contain anti-dilution

provisions for future stock issuances, etc., at a price or at prices below the exercise price per share, or provide for automatic exercise

immediately prior to expiration.

A copy of each warrant issued to Boustead as partial compensation for each of the above private placements,

dated June 9, 2022, October 7, 2022 and October 21, 2022, and of the Form of Private Placement Subscription Agreement, is attached hereto

as Exhibit 4.2, Exhibit 4.3, Exhibit 4.4, and Exhibit 10.23 to this Annual Report, respectively, and the description above is qualified

in its entirety by reference to each such exhibit.

See “ —Initial Public Offering ” below for a description of

related terms of the Boustead Engagement Letter.

Public Offering and Underwriting Agreement

February 2, 2023, we entered into an underwriting agreement (the “Underwriting Agreement”) with Boustead, as representative

of the underwriters named on Schedule 1 thereto, relating to our initial public offering, in which we offered to the public 1,500,000

shares (the “IPO Shares”) of Class B Common Stock.

Pursuant to the Underwriting Agreement, in exchange for Boustead’s

firm commitment to purchase the IPO Shares, the Company agreed to sell the IPO Shares to Boustead at a purchase price (the “IPO

Price”) of $4.65 (93% of the public offering price per share of $5.00, after deducting underwriting discounts and commissions and

before deducting a 0.75% non-accountable expense allowance).

Pursuant to the Underwriting Agreement, on February 7, 2023, the Company

also agreed to issue Boustead a warrant to purchase the number of shares of Class B Common Stock equal to 7% of the aggregate number

of shares of Class B Common Stock sold in the initial public offering (the “Representative’s Warrant”).

February 3, 2023, the IPO Shares and 1,500,000 outstanding shares of Class B Common Stock that were registered for resale as described

below were listed and commenced trading on the Nasdaq Capital Market tier of Nasdaq.

closing of the initial public offering took place on February 7, 2023.

At the closing, the Company sold the IPO Shares for total gross

proceeds of $7,500,000.

After deducting the underwriting discounts and commissions, non-accountable expense allowance, and other expenses

from the initial public offering, the Company received net proceeds of approximately $6.6 million.

The Company also issued the Representative’s

Warrant to Boustead for the purchase of 105,000 shares of Class B Common Stock at an exercise price of $6.25 per share, subject to adjustment.

The Representative’s Warrant may be exercised by payment of cash or by a cashless exercise provision, and may be exercised at any

time for five years following the date of issuance.

IPO Shares were offered and sold, and the Representative’s Warrant was issued, pursuant to the Company’s Registration Statement

on Form S-1 (File No.

333-267258) (as amended, the “IPO Registration Statement”), initially filed with the Securities and

Exchange Commission (the “SEC”) on September 2, 2022, and declared effective by the SEC on February 2, 2023, and the final

prospectus (the “IPO Public Offering Prospectus”), dated February 2, 2023, filed with the SEC on February 6, 2023 pursuant

to Rule 424(b)(4) of the Securities Act of 1933, as amended (the “Securities Act”).

In addition, a total of 1,500,000 shares

of Class B Common Stock were registered for resale by the selling stockholders named in the IPO Registration Statement, and a final prospectus

relating to these shares, dated February 2, 2023 (the “IPO Resale Prospectus”), was filed with the SEC on February 6, 2023

pursuant to Rule 424(b)(3) of the Securities Act.

As stated in the IPO Resale Prospectus, any resales of these shares occurred at a fixed

price of $5.00 per share until the Class B Common Stock was listed on Nasdaq.

Thereafter, these sales will occur at fixed prices, at

market prices prevailing at the time of sale, at prices related to prevailing market prices, or at negotiated prices.

The Company will

not receive any proceeds from the resale of Class B Common Stock by the selling stockholders.

IPO Registration Statement also registered for sale shares of Class B Common Stock with a maximum aggregate offering price of $1,125,000

for an additional 225,000 shares of Class B Common Stock at the assumed public offering price of $5.00 per share upon full exercise of

the underwriters’ over-allotment option;

and up to an additional 15,750 shares of Class B Common Stock underlying the Representative’s

Warrant with a maximum aggregate offering price of $98,437.50 at the assumed exercise price of $6.25 per share assuming full exercise

of the over-allotment option.

The underwriters’ over-allotment option expired unexercised, and as of the date of this Annual Report,

the Representative’s Warrant has not been exercised.

April 4, 2023, Post-Effective Amendment No.

1 to the IPO Registration Statement (the “IPO Post-Effective Amendment”) was

filed with the SEC and became effective on April 14, 2023.

The IPO Post-Effective Amendment was required to be filed to update the IPO

Registration Statement’s prospectuses to include, among other things, the information contained in our Annual Report on Form 10-K

for the fiscal year ended December 31, 2022, which was filed with the SEC on June 30, 2023, and information in certain subsequent reports

and filings under the Exchange Act.

The IPO Post-Effective Amendment maintained the effectiveness of the IPO Registration Statement with

respect to the sale of shares of common stock issuable upon exercise of the Representative’s Warrant and the resale of the

shares of common stock held by the selling stockholders.

Updates to the IPO Public Offering Prospectus and the IPO Resale Prospectus

were included with the IPO Post-Effective Amendment.

to the Underwriting Agreement, as of February 3, 2023, we were subject to a lock-up agreement that prevented us, subject to certain exceptions,

from selling or transferring any of our shares of capital stock of the Company for up to 12 months.

In addition, our officers, directors

and beneficial owners of approximately 78.0% of our common stock agreed to be locked up for a period of 12 months.

Holders of approximately

7.2% of our outstanding common stock agreed to be locked up for a period of nine months, and a holder of approximately 2.3% of our outstanding

Class B Common Stock prior to the initial public offering agreed to be locked up for a period of six months with respect to approximately

0.9% of the outstanding common stock held by such holder, subject to certain exceptions.

The remaining shares were not subject to lock-up

provisions or such lock-up provisions were waived.

This lock-up period expired on February 2, 2024.

to the Underwriting Agreement, the Company’s officers, directors, and certain stockholders who, prior to the initial public offering,

held shares of Class B Common Stock or the Class A Common Stock, agreed, subject to certain exceptions, not to offer, issue, sell, contract

to sell, encumber, grant any option for the sale of or otherwise dispose of any shares of Class A Common Stock or Class B Common Stock

or other securities convertible into or exercisable or exchangeable for shares of Class A Common Stock or Class B Common Stock for a

period of 6 months, 9 months or 12 months, as applicable, without the prior written consent of Boustead.

Underwriting Agreement contains other customary representations, warranties and covenants by the Company, customary conditions to closing,

indemnification obligations of the Company and Boustead, including for liabilities under the Securities Act, other obligations of the

parties, and termination provisions.

The representations, warranties and covenants contained in the Underwriting Agreement were made

only for purposes of such agreement and as of specific dates, were solely for the benefit of the parties to such agreement, and may be

subject to limitations agreed upon by the contracting parties.

copy of each of the Underwriting Agreement and the Representative’s Warrant is filed as Exhibit 10.24 and Exhibit 4.5 to this Annual

Report, respectively, and the description above is qualified in its entirety by reference to each such exhibit.

stated in the IPO Public Offering Prospectus, the Company intended to use the net proceeds from the initial public offering for investment

in corporate infrastructure, marketing and promotion of Discord communities, social campaigns, and the Company’s “AE.360.DDM”

Discord design, development and management service, expansion of “SiN”, the Company’s social influencer network, increasing

staff and company personnel, and general working capital, operating, and other corporate expenses.

Purchase Agreement

November 10, 2023, the Company entered into an asset purchase agreement (the “Asset Purchase Agreement”) with Ternary FL,

Ternary DE, OptionsSwing (each of Ternary FL, Ternary DE and OptionsSwing, a “Seller,” and collectively, the “Sellers”),

and Jason Lee, the principal shareholder of each Seller.

Under the Asset Purchase Agreement, the Company agreed to purchase all of the

Sellers’ right, title, and interest in and to substantially all of the assets and properties owned by the Sellers and used in connection

with their business of Discord development, social media, online community management, marketing, and business-to-business software-as-a-service

that offers sales, service, marketing, and analytics for the payment of $100,000 in cash (the “Cash Consideration”), the

issuance of 300,000 shares of Class B Common Stock (the “Stock Consideration”), and other good and valuable consideration

as described herein.

to the Asset Purchase Agreement, on November 10, 2023, the Company paid the Sellers the Cash Consideration, issued 177,000 shares of

the Stock Consideration to Mr.

Lee, and 123,000 shares of the Stock Consideration in the aggregate to three other designated individuals,

and the Sellers and Mr.

Lee delivered title to all of the assets of the Sellers.

The Stock Consideration is subject to vesting conditions

for the two-year period following the grant date, subject to immediate vesting upon a change of control of the Company or certain other

to the Asset Purchase Agreement, the Company agreed to assume certain liabilities including accrued liabilities (other than taxes), customer

deposits and accounts payable, the obligations, duties and liabilities with respect to the contracts used in conducting or relating to

the business of the Sellers and other specified assets, in each case only to the extent arising from and after November 10, 2023.

assumed liabilities also exclude any obligations arising from the Sellers’ breach or default before November 10, 2023.

required under the Asset Purchase Agreement, on November 10, 2023, the Company entered into employment agreements with Mr.

Lee and certain

employees of the Sellers and an independent contractor agreement with one individual.

Under the employment agreement with Mr.

“CTO Employment Agreement”), Mr.

Lee will be the Chief Technology Officer of the Company commencing November 15, 2023, for

a two-year term unless terminated earlier by Mr.

Lee or by the Company for cause or by mutual agreement.

Lee will be paid a salary

of $100,000 per year and be eligible for standard employee benefits.

In connection with the CTO Employment Agreement, Mr.

into an Employee Confidential Information and Inventions Assignment Agreement, which prohibits unauthorized use or disclosure of the

Company’s proprietary information, contains a general assignment of rights to inventions and intellectual property rights, and

contains non-competition provisions that apply during the term of employment, employee/contractor non-solicitation provisions that apply

during the term of employment and for one year after the term of employment, and non-disparagement provisions that apply during and after

the term of employment.

The Asset Purchase Agreement provides that during the time of employment of Mr.

Lee and two years after, Mr.

Lee and the Sellers will be subject to non-competition and non-solicitation provisions.

The Company will also provide standard indemnification

and directors’ and officers’ insurance.

Asset Purchase Agreement also contains mutual indemnification provisions with respect to breaches of representations and warranties as

well as to certain third-party claims, and indemnification by the Company of the Sellers and Mr.

Lee with respect to certain damages

with respect to the assumed liabilities and certain other liabilities asserted by a third party arising after November 10, 2023.

case of indemnification provided with respect to breaches of certain non-fundamental representations and warranties, the indemnifying

party will only become liable for indemnified losses to the extent that the amount exceeds an aggregate threshold of $25,000.

this threshold limitation does not apply to claims by the Company for breaches by the Seller or Mr.

Lee of certain fundamental representations

and warranties.

In addition, the Company’s aggregate remedy with respect to any and all indemnifiable losses may in no event exceed

the purchase price, consisting of the Cash Consideration and the Stock Consideration.

Organizational

and (v) administrative oversight by the SEC, primarily by inspection.

Requirements and obligations imposed on investment

advisers can be burdensome and costly.

If it is deemed that we are out of compliance with such rules and regulations, we may also be subject

to civil and/or criminal penalties.

Applicable state laws may have similar or additional requirements.

If we are required to register

under these laws, we may no longer be able to continue to offer our investment education and entertainment services, which may have a

significant adverse impact on our business and results of operations.

Corporate History and Structure

Formation and Merger into Asset Entities

We began our operations as a general partnership

on August 1, 2020.

Asset Entities Limited Liability Company, a California limited liability company (“California LLC”), was

formed on October 20, 2020 to operate our business.

Asset Entities Inc., a Nevada corporation, was incorporated on March 9, 2022.

after the incorporation of Asset Entities Inc., all of the issued and outstanding stock of Asset Entities was purchased by California

LLC in exchange for $1.00.

On March 28, 2022, in accordance with Sections 17710.01-17710.19, inclusive, of the California Corporation

Code and Chapter 92A of the Nevada Revised Statutes (the “NRS”), California LLC was merged with and into Asset Entities.

a result of the merger, Asset Entities acquired the business of California LLC.

Pursuant to the Agreement and Plan of Merger, the units

of California LLC were automatically converted into shares of Asset Entities.

in the same proportion as the percentage interests of California

LLC represented by such units.

As a result and as further provided in the Agreement and Plan of Merger, on March 28, 2022, Asset Entities

Holdings, LLC, a Texas limited liability company (“AEH”), which owned 97.56% of California LLC’s units, became the holder

of 1,951,200 shares of Class A Common Stock of Asset Entities, or 97.56% of the total issued and outstanding post-merger shares of common

stock of Asset Entities, and a holder of 2.44% of California LLC’s units became the holder of 48,800 shares of Class B Common Stock

of Asset Entities, or 2.44% of the total issued and outstanding post-merger shares of common stock of Asset Entities.

Capital Structure

Under the Company’s Articles of Incorporation,

as amended (the “Articles of Incorporation”), we are authorized to issue two classes of common stock, Class A Common Stock

and Class B Common Stock, and any number of classes of preferred stock.

Class A Common Stock is entitled to ten votes per share on proposals

requiring or requesting stockholder approval, and Class B Common Stock is entitled to one vote on any such matter.

A share of Class A

Common Stock may be voluntarily converted into a share of Class B Common Stock.

A transfer of a share of Class A Common Stock will result

in its automatic conversion into a share of Class B Common Stock upon such transfer, subject to certain exceptions, including that the

transfer of a share of Class A Common Stock to another holder of Class A Common Stock will not result in such automatic conversion.

B Common Stock is not convertible.

Other than as to voting and conversion rights, the Company’s Class A Common Stock and Class B

Common Stock have the same rights and preferences and rank equally, share ratably and are identical in all respects as to all matters.

Holders of the Series A Preferred Stock generally

have the right to vote on an as-converted basis with the Class B Common Stock, to the extent that such conversion would not cause such

holder’s beneficial ownership of Class B Common Stock to exceed 4.99% of the outstanding Class B Common Stock, which may be increased

by the holder to up to 9.99% upon no fewer than 61 days’ prior notice.

As of March 25, 2025, AEH owns all of the 1,000,000

shares of our outstanding Class A Common Stock.

The shares of Class A Common Stock held by AEH are controlled by its officers and managers,

all of whom are also some of our officers and directors.

AEH also owns 250,000 shares of our Class B Common Stock.

There are 13,413,162

shares of Class B Common Stock issued and outstanding as of March 25, 2025.

AEH therefore controls 10,250,000 votes, or approximately

42.6% of all voting rights.

In addition, our directors and officers collectively hold 260,689 shares of Class B Common Stock.

their control of AEH’s shares of Class A Common Stock and Class B Common Stock and their own shares of Class B Common Stock, our

officers and directors collectively control 10,510,689 votes, or approximately 43.6% of total voting power.

Management’s concentrated

voting power may limit or preclude the ability of others to influence corporate matters including significant business decisions for the

foreseeable future.

Organizational Structure

The following diagram depicts our organizational structure as of March

This diagram includes our controlling stockholder of Class A Common Stock, stockholders of Class B Common Stock subject to restrictions

This diagram includes our stockholder of Class A Common Stock, stockholders of Class B Common Stock subject to restrictions

on transfer, as a group, and our public stockholders of Class B Common Stock, as a group.

1 unchanged sentence

Stock holdings of these stockholders is also depicted.

date of this Annual Report, we have no subsidiaries.

principal executive offices are located at 100 Crescent Ct, 7th Floor, Dallas, TX 75201 and our telephone number is (214) 459-3117.

maintain a website at https://www.assetentities.com/.

Information available on our website is not incorporated by reference in and is

not deemed a part of this Annual Report.

Our fiscal year ends December 31.

Neither we nor any of our predecessors have been in

bankruptcy, receivership or any similar proceeding.

As of the date of this Annual Report, we have no subsidiaries.

Our principal executive offices are located at

100 Crescent Ct, 7th Floor, Dallas, TX 75201 and our telephone number is (214) 459-3117.

We maintain a website at https://www.assetentities.com.

Information available on our website is not incorporated by reference in and is not deemed a part of this Annual Report.

Our fiscal year

ends December 31.

Neither we nor any of our predecessors have been in bankruptcy, receivership or any similar proceeding.

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 1. Business