What changed in this filing

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Item 1A. Risk Factors

2024-11-14 compared with 2024-08-14 · 138 added, 69 removed, 11 unchanged (95% of the section changed)

7 unchanged sentences

condition, operating results and prospectus include the following:

limited history makes it difficult to evaluate our business and prospects and may increase

the risks associated with your investment.

management has identified conditions that raise substantial doubt about our ability to continue

as a going concern.

are a development stage company, and there is no guarantee that our development will result

in the commercial production of lithium from brine sources.

of lithium feedstock may prove to be non-viable, which could have material adverse impact

on our business and operations.

if we are successful in completing all initial phases and the first commercial production

at our large central refinery optimized for multiple inputs of lithium brine inputs (the

“Facility”) in Oklahoma and consistently produce battery-grade lithium on a commercial

scale, we may not be successful in commencing and expanding commercial operations to support

the growth of our business.

products may not qualify for use for our intended customers.

and other obstacles may prevent the successful completion of our Facility.

can be highly combustible, and if we have incidences, it could adversely impact us.

lithium brine industry includes well capitalized players.

producers could disrupt the market and be able to provide products cheaper than the Company.

may be unable to qualify for existing federal and state level grants and incentives and the

grants and incentives may not be released to us as quickly or efficiently as we anticipate

success as a company producing battery-grade lithium and related products depends to a great

extent on the capabilities of our partners for lithium extraction from brine and our ability

to secure capital for the implementation of brine processing plants.

in technology or other developments could adversely affect demand for lithium compounds or

result in preferences for substitute products.

development of our lithium refinery is highly dependent upon the currently projected demand

for and uses of lithium-based end products.

future growth and success are dependent upon consumers’ demand for electric vehicles

in an automotive industry that is generally competitive, cyclical and volatile.

may be unable to successfully negotiate final, binding terms related to our current non-binding

memoranda of understanding and letters of intent for supply and offtake agreements, which

could harm our commercial prospects.

future business prospects could be adversely affected if we are unable to enter into definitive

agreements relating to contemplated joint ventures with Usha Resources Inc.

and IGX Minerals

and, if such agreements are in fact completed, there can be no assurance that the required

financing for such joint ventures will be available, that their respective projects will

be completed in a timely manner, or that they will ultimately be successful.

we fail to adequately protect our intellectual property or technology (including any later

developed or acquired intellectual property or technology), our competitive position could

be impaired and we may lose valuable assets, generate reduced revenue and incur costly litigation

to protect our rights.

reduction or elimination of government subsidies and economic incentives for alternative

energy technologies, or the failure to renew such subsidies and incentives, could reduce

demand for our products, lead to a reduction in our revenues, and adversely impact our operating

results and liquidity.

identified material weaknesses in our internal control over financial reporting.

unable to remediate these material weaknesses or if we experience additional material weaknesses

or other deficiencies in the future or otherwise fail to maintain an effective system of

internal control over financial reporting, we may not be able to accurately or timely report

our financial results, which could result in loss of investor confidence and adversely impact

our stock price.

active trading market for Common Stock may never develop or be sustained, which may make

it difficult to sell the shares of Common Stock you receive.

Company’s certificate of incorporation and bylaws, which became effective on July 8,

2024, provide for a classified board of directors, with directors serving staggered three-year

terms, which could make it more difficult for stockholders to replace a majority of the directors.

is no guarantee that the Warrants will ever be in the money, and they may expire worthless.

may redeem your unexpired Warrants prior to their exercise at a time that is disadvantageous

to you, thereby making your warrants worthless.

have been no material changes to the risk factors set forth in the Prospectus, which are incorporated herein by reference.

risk factors described in this report and in the Prospectus are not the only risks that we face.

Additional risk factors not presently

known to us or that we currently deem immaterial may also impair our business or results of operations.

If any such risks materialize,

it could have a material adverse effect on our business, financial condition, results of operations, and growth prospects and cause the

trading price of our Common Stock to decline.

We may disclose changes to such risk factors or disclose additional risk factors from time

to time in our future filings with the SEC.

● Our limited history

makes it difficult to evaluate our business and prospects and may increase the risks associated with your investment.

● Our management has identified conditions that raise substantial doubt about

our ability to continue as a going concern.

● We are a development

stage company, and there is no guarantee that our development will result in the commercial production of lithium from brine sources.

● Pipeline of lithium

feedstock may prove to be non-viable, which could have material adverse impact on our business and operations.

● Even if we are successful

in completing all initial phases and the first commercial production at our large central refinery optimized for multiple inputs of

lithium brine inputs (the “Facility”) in Oklahoma and consistently produce battery grade lithium on a commercial scale,

we may not be successful in commencing and expanding commercial operations to support the growth of our business.

● Our products may

not qualify for use for our intended customers.

● Delays and other

obstacles may prevent the successful completion of our Facility.

● Lithium can be

highly combustible, and if we have incidents, it could adversely impact us.

● The lithium brine

industry includes well capitalized players.

● Low-cost producers

could disrupt the market and be able to provide products cheaper than the Company.

● We may be unable

to qualify for existing federal and state level grants and incentives and the grants and incentives may not be released to us as quickly

or efficiently as we anticipate or at all.

● Our success as a company

producing battery grade lithium and related products depends to a great extent on the capabilities of our partners for lithium

extraction from brine and our ability to secure capital for the implementation of brine processing plants.

● Changes in technology

or other developments could adversely affect demand for lithium compounds or result in preferences for substitute products.

● The development

of our lithium refinery is highly dependent upon the currently projected demand for and uses of lithium-based end products.

● Our future growth

and success are dependent upon consumers’ demand for electric vehicles in an automotive industry that is generally competitive,

cyclical and volatile.

● We may be unable

to successfully negotiate final, binding terms related to our current non-binding memoranda of understanding and letters of intent for

supply and offtake agreements, which could harm our commercial prospects.

● Our future business

prospects could be adversely affected if we are unable to enter into definitive agreements relating to contemplated joint ventures and,

if such agreements are in fact completed, there can be no assurance that the required financing for such joint ventures will be available,

that their respective projects will be completed in a timely manner, or that they will ultimately be successful.

● If we fail to adequately

protect our intellectual property or technology (including any later developed or acquired intellectual property or technology), our

competitive position could be impaired and we may lose valuable assets, generate reduced revenue and incur costly litigation to protect

● The reduction or

elimination of government subsidies and economic incentives for alternative energy technologies, or the failure to renew such subsidies

and incentives, could reduce demand for our products, lead to a reduction in our revenues, and adversely impact our operating results

and liquidity.

● We identified material

weaknesses in our internal control over financial reporting.

If we are unable to remediate these material weaknesses or if we experience

additional material weaknesses or other deficiencies in the future or otherwise fail to maintain an effective system of internal control

over financial reporting, we may not be able to accurately or timely report our financial results, which could result in loss of investor

confidence and adversely impact our stock price.

● An active trading

market for Common Stock may never develop or be sustained, which may make it difficult to sell the shares of Common Stock you receive.

● The Company’s

certificate of incorporation and bylaws, which became effective on July 8, 2024, provide for a classified board of directors, with directors

serving staggered three-year terms, which could make it more difficult for stockholders to replace a majority of the directors.

● There is no guarantee

that the warrants will ever be in the money, and they may expire worthless.

● We may redeem your

unexpired warrants prior to their exercise at a time that is disadvantageous to you, thereby making your warrants worthless.

have been no material changes to the risk factors set forth in the Prospectus, which are incorporated herein by reference, except as

set forth below.

The risk factors described in this Quarterly Report and in the Prospectus are not the only risks that we face.

risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.

any such risks materialize, it could have a material adverse effect on our business, financial condition, results of operations, and

growth prospects and cause the trading price of our Common Stock to decline.

We may disclose changes to such risk factors or disclose

additional risk factors from time to time in our future filings with the SEC.

is not possible to predict the actual number of shares we will sell under the Purchase Agreement to B.

Riley Principal Capital II, or

the actual gross proceeds resulting from those sales.

October 7, 2024, we entered into the Purchase Agreement with B.

Riley Principal Capital

II, pursuant to which B.

Riley Principal Capital II has committed to purchase up to $50,000,000 of shares of our Common Stock, subject

to certain limitations and conditions set forth in the Purchase Agreement.

The shares of our Common Stock that may be issued under the

Purchase Agreement may be sold by us to B.

Riley Principal Capital II at our discretion from time to time for a period of up to 36 months

(unless the Purchase Agreement is earlier terminated) beginning on the date on which the registration statement registering the shares

of Common Stock issued to B.

Riley Principal Capital II for resale has been declared effective by the SEC and all other conditions to

Riley Principal Capital II’s obligations to purchase the Common Stock set forth in the Purchase Agreement have been initially

generally have the right to control the timing and amount of any sales of our shares of Common Stock to B.

Riley Principal Capital II

under the Purchase Agreement.

Sales of our Common Stock, if any, to B.

Riley Principal Capital II under the Purchase Agreement will depend

upon market conditions and other factors to be determined by us.

We may ultimately decide to sell to B.

Riley Principal Capital II all,

some or none of the shares of our Common Stock that may be available for us to sell to B.

Riley Principal Capital II pursuant to the

Purchase Agreement.

Depending on market liquidity at the time, resales of those shares by B.

Riley Principal Capital II may cause the

public trading price of our Common Stock to decrease.

the per share purchase price that B.

Riley Principal Capital II will pay for shares of Common Stock that we may elect to effect pursuant

to the Purchase Agreement will fluctuate based on the market prices of our Common Stock during the applicable purchase valuation period

for each purchase made pursuant to the Purchase Agreement, it is not possible for us to predict, as of the date of this Quarterly Report

and prior to any such sales, the number of shares of Common Stock that we will sell to B.

Riley Principal Capital II under the Purchase

Agreement, the purchase price per share that B.

Riley Principal Capital II will pay for shares purchased from us under the Purchase Agreement,

or the aggregate gross proceeds that we will receive from those purchases by B.

Riley Principal Capital II under the Purchase Agreement.

the Purchase Agreement provides that we may sell up to an aggregate of $50,000,000 of our Common Stock to B.

Riley Principal Capital

II, only 6,500,000 shares of our Common Stock (of which 63,694 represent the commitment shares we issued to B.

Riley Principal Capital

II upon our execution of the Purchase Agreement on October 7, 2024) are being registered under the Securities Act for resale by B.

Principal Capital II pursuant to a Registration Statement on Form S-1.

If it becomes necessary for us to issue and sell to B.

Riley Principal

Capital II under the Purchase Agreement more than the 6,436,306 shares being registered in order to receive aggregate gross proceeds

equal to $50,000,000 under the Purchase Agreement, we must first (i) obtain stockholder approval to issue more than 9,569,701 shares

of Common Stock, the number of shares representing 19.99% of the shares of Common Stock outstanding immediately prior to the execution

of the Purchase Agreement, in accordance with applicable Nasdaq rules (assuming such shares to not qualify for exclusion from such share

limit because they were sold at a price exceeding the “minimum price” calculated in accordance with Nasdaq rules) and (ii)

file with the SEC one or more additional registration statements to register under the Securities Act the resale by B.

Riley Principal

Capital II of any such additional shares of our Common Stock we wish to sell from time to time under the Purchase Agreement, which the

SEC must declare effective, in each case before we may elect to sell any additional shares of our Common Stock to B.

Riley Principal

Capital II under the Purchase Agreement.

The number of shares of Common Stock ultimately offered for resale by B.

Riley Principal Capital

II is dependent upon the number of shares of Common Stock, if any, we elect to sell to B.

Riley Principal Capital II under the Purchase

Any issuance and sale by us under the Purchase Agreement of a substantial amount of shares of Common Stock in addition to

the 6,500,000 shares of Common Stock being registered for resale could cause additional substantial dilution to our stockholders.

inability to access a portion or the full amount available under the Purchase Agreement, in the absence of any other financing sources,

could have a material adverse effect on our business.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

2 unchanged sentences

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-Q

Item 1A. Risk Factors