What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-11-14 compared with 2022-08-18 · 644 added, 512 removed, 40 unchanged (97% of the section changed)

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Note Regarding Forward-Looking Statements

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Regarding Forward-Looking Statements

Quarterly Report on Form 10-Q includes a number of forward-looking statements that reflect management’s current views with respect

to future events and financial performance.

Forward-looking statements are projections in respect of future events or our future

financial performance.

In some cases, you can identify forward-looking statements by terminology such as “may,” “should,”

“expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,”

“potential” or “continue” or the negative of these terms or other comparable terminology.

statements include statements regarding the intent, belief or current expectations of us and members of our management team, as well as

the assumptions on which such statements are based.

Prospective investors are cautioned that any such forward-looking statements are not

guarantees of future performance and involve risk and uncertainties, and that actual results may differ materially from those contemplated

by such forward-looking statements.

These statements are only predictions and involve known and unknown risks, uncertainties and

other factors, including the risks set forth in the section entitled “Risk Factors” in our Annual Report on Form 10-K for

the fiscal year ended March 31, 2022, as filed with the U.S.

Securities and Exchange Commission (the “SEC”) on June 29, 2022,

any of which may cause our company’s or our industry’s actual results, levels of activity, performance or achievements to

be materially different from any future results, levels of activity, performance or achievements expressed or implied in our forward-looking

These risks and factors include, by way of example and without limitation:

· our ability on a timely basis to successfully rebuild our water treatment plant and replace our filtration

equipment that was destroyed by fire on July 3, 2022 at our La Coste, Texas facility;

· our ability to continue developing and expanding our research and development plant in La Coste, Texas

and our production facility in Webster City, Iowa;

· our ability to successfully commercialize our equipment and shrimp farming operations to produce a market-ready

product in a timely manner and in enough quantity;

· absence of contracts with customers or suppliers;

· our ability to maintain and develop relationships with customers and suppliers;

· our ability to successfully integrate acquired businesses or new brands;

· the impact of competitive products and pricing;

· supply constraints or difficulties;

· the retention and availability of key personnel;

· general economic and business conditions;

· substantial doubt about our ability to continue as a going concern;

· our continued ability to raise funding at the pace and quantities required to scale our plant needs to

commercialize our products;

· our ability to successfully recruit and retain qualified personnel in order to continue our operations;

· our ability to successfully implement our business plan;

· our ability to successfully acquire, develop or commercialize new products and equipment;

· the commercial success of our products;

· business interruptions resulting from geo-political actions, including war, and terrorism or disease outbreaks

(such as the outbreak of COVID-19);

· intellectual property claims brought by third parties;

· the impact of any industry regulation.

Although we believe that the expectations

reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, or performance.

as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking

statements to conform these statements to actual results.

Readers are urged to carefully

review and consider the various disclosures made by us in this report and in our other reports filed with the SEC.

We undertake no obligation

to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in the

future operating results over time except as required by law.

We believe that our assumptions are based upon reasonable data derived from

and known about our business and operations.

No assurances are made that actual results of operations or the results of our future activities

will not differ materially from our assumptions.

As used in this Quarterly Report

on Form 10-Q and unless otherwise indicated, the terms “Company,” “we,” “us,” and “our”

refer to NaturalShrimp Incorporated and its wholly-owned subsidiaries:

NaturalShrimp USA Corporation (“NSC”) and NaturalShrimp

Forward-looking

statements are projections in respect of future events or our future financial performance.

In some cases, you can identify forward-looking

statements by terminology such as “may,” “should,” “expects,” “plans,” “anticipates,”

“believes,” “estimates,” “predicts,” “potential” or “continue” or the negative

of these terms or other comparable terminology.

These statements include statements regarding the

intent, belief or current expectations of us and members of our management team, as well as the assumptions on which such statements

Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and

involve risk and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements.

These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks

set forth in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2022,

as filed with the U.S.

Securities and Exchange Commission (the “SEC”) on June 29, 2022, any of which may cause our company’s

or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results,

levels of activity, performance or achievements expressed or implied in our forward-looking statements.

These risks and factors include,

by way of example and without limitation:

ability on a timely basis to successfully rebuild our water treatment plant and replace our

filtration equipment that was destroyed by fire on July 3, 2022 at our La Coste, Texas facility;

ability to continue developing and expanding our research and development plant in La Coste,

Texas and our production facility in Webster City, Iowa;

ability to successfully commercialize our equipment and shrimp farming operations to produce

a market-ready product in a timely manner and in enough quantity;

of contracts with customers or suppliers;

ability to maintain and develop relationships with customers and suppliers;

ability to successfully integrate acquired businesses or new brands;

impact of competitive products and pricing;

constraints or difficulties;

retention and availability of key personnel;

economic and business conditions;

● substantial

doubt about our ability to continue as a going concern;

continued ability to raise funding at the pace and quantities required to scale our plant

needs to commercialize our products;

ability to successfully recruit and retain qualified personnel in order to continue our operations;

ability to successfully implement our business plan;

ability to successfully acquire, develop or commercialize new products and equipment;

commercial success of our products;

interruptions resulting from geo-political actions, including war, and terrorism or disease

outbreaks (such as the outbreak of COVID-19);

● intellectual

property claims brought by third parties;

impact of any industry regulation.

we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels

of activity, or performance.

Except as required by applicable law, including the securities laws of the United States, we do not intend

to update any of the forward-looking statements to conform these statements to actual results.

are urged to carefully review and consider the various disclosures made by us in this report and in our other reports filed with the

We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated

events or changes in the future operating results over time except as required by law.

We believe that our assumptions are based upon

reasonable data derived from and known about our business and operations.

No assurances are made that actual results of operations or

the results of our future activities will not differ materially from our assumptions.

used in this Quarterly Report on Form 10-Q and unless otherwise indicated, the terms “Company,” “we,” “us,”

and “our” refer to NaturalShrimp Incorporated and its wholly-owned subsidiaries:

NaturalShrimp USA Corporation (“NSC”)

and NaturalShrimp Global, Inc.

(“NS Global”) and Natural Aquatic Systems, Inc.

Unless otherwise specified, all dollar amounts

are expressed in United States Dollars.

Corporate History

We were incorporated in the State

of Nevada on July 3, 2008 under the name “Multiplayer Online Dragon, Inc.” Effective November 5, 2010, we effected an 8-for-1

forward stock split, increasing the issued and outstanding shares of our common stock from 12,000,000 shares to 96,000,000 shares.

October 29, 2014, we effected a 1-for-10 reverse stock split, decreasing the issued and outstanding shares of our common stock from 97,000,000

to 9,700,000.

On November 26, 2014, we entered

into an Asset Purchase Agreement (the “Agreement”) with NaturalShrimp Holdings, Inc.

a Delaware corporation (“NSH”),

pursuant to which we agreed to acquire substantially all of the assets of NSH which assets consisted primarily of all of the issued and

outstanding shares of capital stock of NSC and NS Global, and certain real property located outside of San Antonio, Texas (the “Assets”).

On January 30, 2015, we consummated

the acquisition of the Assets pursuant to the Agreement.

In accordance with the terms of the Agreement, we issued 75,520,240 shares of

our common stock to NSH as consideration for the Assets.

As a result of the transaction, NSH acquired 88.62% of our issued and outstanding

shares of common stock;

NSC and NS Global became our wholly-owned subsidiaries, and we changed our principal business to a global shrimp

farming company.

Unless otherwise specified,

all dollar amounts are expressed in United States Dollars.

Company was incorporated in the State of Nevada on July 3, 2008 under the name “Multiplayer Online Dragon, Inc.” On January

30, 2015, we acquired substantially all of the assets of NaturalShrimp Holdings, Inc.

a Delaware corporation (“NSH”), that

had developed the proprietary technology to grow and sell shrimp potentially anywhere in the world that is now the basis of our business.

Such assets consisted primarily of all of the issued and outstanding shares of capital stock of its subsidiaries NaturalShrimp USA Corporation

(“NSC”) and NaturalShrimp Global (“NS Global”), and certain real property located outside of San Antonio, Texas,

in exchange for our issuance of 75,520,240 shares of our common stock to NSC.

As a result of the transaction, NSH acquired 88.62% of

our issued and outstanding shares of common stock, NSC and NS Global became our wholly-owned subsidiaries, and we changed our principal

business to a global shrimp farming company.

We changed our name to “NaturalShrimp Incorporated” in 2015.

Business Overview

We are a biotechnology company

and have developed proprietary platform technologies that allow us to grow Pacific White shrimp (Litopenaeus vannamei, formerly Penaeus

vannamei) in an ecologically controlled, high-density, low-cost environment, and in fully contained and independent production facilities.

Our system uses technology which allows us to produce a naturally grown shrimp “crop” weekly and accomplishes this without

are a biotechnology company and have developed proprietary platform technologies that allow us to grow Pacific White shrimp (Litopenaeus

vannamei, formerly Penaeus vannamei) in an ecologically controlled, high-density, low-cost environment, and in fully contained and independent

production facilities.

Our system uses technology that allows us to produce a naturally grown shrimp “crop” weekly without

the use of antibiotics or toxic chemicals.

4 unchanged sentences

in La Coste, Texas and Webster City, Iowa.

On October 16, 2015, we formed

The purpose of NAS is to formalize the business relationship between our Company and F&T Water Solutions LLC (“F&T”)

for the joint development of certain water technologies.

The technologies shall include, without limitation, any and all inventions, patents,

intellectual property, and know-how dealing with enclosed aquatic production systems worldwide.

This includes construction, operation,

and management of enclosed aquatic production, other than shrimp, facilities throughout the world, co-developed by both parties at our

facility located outside of La Coste, Texas.

On December 25, 2018, we were awarded U.S.

Patent “Recirculating Aquaculture System

and Treatment Method for Aquatic Species” covering all indoor aquatic species that utilizes proprietary art.

On December 15, 2020, we entered

into an Asset Purchase Agreement (“APA”) between VeroBlue Farms USA, Inc., a Nevada corporation (“VBF”), VBF Transport,

Inc., a Delaware corporation (“Transport”), and Iowa’s First, Inc., an Iowa corporation (“Iowa’s First”)

(each a “Seller” and collectively, “Sellers”).

Transport and Iowa’s First were wholly-owned subsidiaries

The agreement called for us to purchase all of the tangible assets of VBF, the motor vehicles of Transport and the real property

(together with all plants, buildings, structures, fixtures, fittings, systems, and other improvements located on such real property) of

Iowa’s First.

The consideration was $10,000,000, consisting of $5,000,000 in cash, paid at closing on December 17, 2020, (ii) $3,000,000

payable in 36 months with interest thereon at the rate of 5% per annuum, interest only payable quarterly on the first day of the quarter,

with the remaining balance to be paid to VBF as a balloon payment on the maturity date, and (iii) $2,000,000 payable in 48 months with

interest thereon at the rate of 5% per annuum, interest only payable quarterly on the first day of the quarter, with the remaining balance

to be paid to VBF as a balloon payment on the maturity date.

The Company also agreed to issue 500,000 shares of Common Stock as a finder’s

The facility was originally designed

as an aquaculture facility, with the company having production issues.

The Company’s has begun a modification process to convert

the plant to produce shrimp, which will allow them to scale faster without having to build new facilities.

The three Iowa facilities contain

the tanks and infrastructure that will be used to support the production of shrimp with the incorporation of the Company’s Electrocoagulation

(EC) platform technology.

On May 19, 2021, the Company entered

into a Patents Purchase Agreement (the “Patents Agreement”) with F&T.

The Company and F&T had previously jointly developed

and patented a water treatment technology used or useful in growing aquatic species in re-circulating and enclosed environments (the “Patent”)

with each party owning a fifty percent (50%) interest.

Upon the closing of the Patents Agreement, the Company would purchase F&T’s

interest in the Patent, F&T’s 100% interest in a second patent associated with the first Patent issued to F&T in March 2018,

and all other intellectual property rights owned by F&T for a purchase price of $2,000,000 in cash and issue 9,900,990 shares of the

Company’s common stock with a market value of $0.505 per share for a total fair value of $5,000,000, for a total acquisition price

of $7,000,000.

The Company paid the cash purchase price on May 20, 2021 and the closing of the Patents Agreement took place on May 25,

On August 25, 2021, the Company,

through its 100% owned subsidiary NAS, entered into an Equipment Rights Agreements with Hydrenesis-Delta Systems, LLC (“Hydrenesis-Delta”)

and a Technology Rights Agreement, in a sub-license agreement with Hydrenesis Aquaculture LLC (“Hydrenesis-Aqua”), The Equipment

Rights involve specialized and proprietary equipment used to produce and control, dose, and infuse Hydrogas® and RLS® into both

water and other chemical species, while the Technology sublicense pertains to the rights to Hydrogas® and RLS®.

Both Rights agreements

are for a 10 year term, which shall automatically renew for ten year successive terms.

The term can be terminated by written notice by

mutual consent, or by either party upon a breach of contract, insolvency or filing of bankruptcy.

The agreements accord the exclusive

rights to purchase or distribute the technology, or buy or rent the equipment, in the Industry Sector, which is the primary business and

revenue stream generated from indoor aquaculture farming of any species in the Territory, defined as anywhere in the world except for

the countries in the Gulf Corporation Council.

The Company has three wholly-owned

subsidiaries:

December 17, 2020, we acquired certain assets from VeroBlue Farms USA, Inc.

and its subsidiaries VBF Transport, Inc.

First, Inc., including a facility that was designed for the growth of barramundi fish that we are in the process of converting so that

it can produce shrimp using the Company’s propriety technology.

The consideration for the purchase of these assets was (i) $10,000,000,

consisting of (i) $5,000,000 in cash paid at closing, (ii) $3,000,000 payable in 36 months with interest thereon at the rate of 5% per

annuum, interest only payable quarterly on the first day of the quarter, with the remaining balance to be paid as a balloon payment on

the maturity date, and (iii) $2,000,000 payable in 48 months with interest thereon at the rate of 5% per annuum, interest only payable

quarterly on the first day of the quarter, with the remaining balance to be paid as a balloon payment on the maturity date.

also issued 500,000 shares of common stock as a finder’s fee in connection with the transaction.

facility was originally designed as an aquaculture facility.

The Company has begun a modification process to convert the plant to produce

shrimp, which will allow us to scale faster without having to build new facilities.

The Iowa facility contains the tanks and infrastructure

that the Company will use to support the production of shrimp with the incorporation of the Company’s electrocoagulation platform

The Company also plans to convert additional square footage currently used as storage to its planned shrimp processing plant.

The development of the facility is 40% completed with full development of the facility expected by December 31, 2022.

May 25, 2021, the Company purchased from F&T Water Solutions LLC (“F&T”) its 50% ownership interest in a water treatment

technology used or useful in growing aquatic species in re-circulating and enclosed environments that the Company and F&T had previously

jointly developed and patented (the “Patent”), as well as F&T’s 100% interest in a second patent associated with

the Patent issued to F&T in March 2018 and all other intellectual property rights owned by F&T for a purchase price of $2,000,000

in cash and 9,900,990 shares of the Company’s common stock.

Company has three wholly-owned subsidiaries:

NSC, NS Global, and NAS.

Evolution of Technology

Historically, efforts to raise

shrimp in a high-density, closed system at the commercial level have been met with either modest success or outright failure through “BioFloc

Technology.” Infectious agents such as parasites, bacteria and viruses are the most damaging and most difficult to control.

infection can in some cases be combated through the use of antibiotics (although not always), and in general, the use of antibiotics is

considered undesirable and counter to “green” cultivation practices.

Viruses can be worse, in that they are immune to antibiotics.

Once introduced to a shrimp population, viruses can wipe out entire farms and shrimp populations, even with intense probiotic applications.

Our primary solution against infectious

agents is our “Vibrio Suppression Technology.” We believe this system creates higher sustainable densities, consistent production,

improved growth and survival rates and improved food conversion without the use of antibiotics, probiotics, or unhealthy anti-microbial

Vibrio Suppression Technology helps to exclude and suppress harmful organisms that usually destroy “BioFloc” and

other enclosed technologies.

In 2001, we began research and

development of a high density, natural aquaculture system that is not dependent on ocean water to provide quality, fresh shrimp every

week, fifty-two weeks a year.

Our initial system was successful, but we determined that it would not be economically feasible due to high

operating costs.

Over the next several years, using the knowledge we gained from developing the first system, we developed a shrimp production

system that eliminated the high costs associated with the previous system.

We have continued to refine this technology, eliminating bacteria

and other problems that affect enclosed systems, and now have a successful shrimp growing process.

We have produced thousands of pounds

of shrimp over the last few years in order to develop a design that will consistently produce quality shrimp that grow to a large size

at a specific rate of growth.

This included experimenting with various types of natural live and synthesized feed supplies before selecting

the most appropriate nutritious and reliable combination.

It also included utilizing monitoring and control automation equipment to minimize

labor costs and to provide the necessary oversight for proper regulation of the shrimp environment.

However, there were further enhancements

needed to our process and technology in order to begin production of shrimp on a commercially viable scale and to generate revenues.

Our current system consists of

a nursery tank where the shrimp are acclimated, then moved to a larger grow-out tank for the rest of the twenty-week cycle.

we engaged in additional engineering projects with third parties to further enhance our indoor production capabilities.

For example, through

our relationship with Trane, Inc., a division of Ingersoll-Rand Plc (“Trane”), Trane provided a detailed audit to use data

to build and verify the capabilities of then initial Phase 1 prototype of a Trane-proposed three tank system at our La Coste, Texas facility.

The Company working with F&T Water Solutions contracted RGA Labs, Inc.

(“RGA Labs”) to build the initial NaturalShrimp

patented Electrocoagulation system for the grow-out, harvesting and processing of fully mature, antibiotic-free Pacific White Leg shrimp.

The design provided a viable pathway to begin generating revenue and producing shrimp on a commercially viable scale.

The equipment was

installed in early June 2018 by RGA Labs, and final financing for the system was provided by one of the Company’s institutional

The first post larvae (PL) arrived from the hatchery on July 3, 2018.

The Company used the shrimp for sampling to key potential

customers and special events such as the Texas Restaurant Association trade show.

The Company also received two production PL lots from

Global Blue Technologies on March 21, 2019 and April 17, 2019 and from American Penaeid, Inc.

on August 7, 2019.

Because the shrimp displayed

growth that was slower than normal, the Company had a batch tested by an independent lab at the University of Arizona.

The shrimp tested

positive for Infectious hypodermal and hematopoietic necrosis (“IHHNV”) and the Texas Parks and Wildlife Department was notified

that the facility was under quarantine.

On August 26, 2019, the Company was forced to terminate all lots due to the infection.

30, 2019, the Company received notice that it was in compliance again and the quarantine had been lifted and the Company began restocking

shrimp in the refurbished facility sections.

During the aforementioned quarantine, the Company decided to begin an approximately $2,000,000

facility renovation demolishing the interior 16 wood structure lined tanks (720,000 gallons).

The Company began replacing the previous

tanks with 40 new fiberglass tanks (600,000 gallons) at a cost of approximately $400,000 allowing complete production flexibility with

more smaller tanks.

Recent Material Events During the Quarter

On July 3, 2022, a building containing

our water treatment and purification system in La Coste, Texas (the “Water Treatment Plant”) was completely destroyed in a

The Water Treatment Plant is a separate building consisting of approximately 8,000 square feet located apart from the production

building which was not damaged.

We have filed a claim with our insurance company which, as of this filing, has not yet been completed.

Due to the damage caused by the fire, we have written off approximately $1,764,000 of the fixed assets and $325,000 of the accumulated

depreciation, for a net impairment to be recognized of $1,439,000.

Results of Operations

Comparison of the Three Months Ended June 30, 2022

to the Three Months Ended June 30, 2021

We have not earned any significant

revenues since our inception and, although we had revenue of approximately $36,000 in the three months ended June 30, 2022, we can provide

no assurances as to how significant our revenue will be in the next one to two fiscal quarters.

Our expenses for the three months

ended June 30, 2022 are summarized as follows, in comparison to our expenses for the three months ended June 30, 2021:

Three Months Ended June 30,

of Technology

2001, we began research and development of a high density, natural aquaculture system that is not dependent on ocean water to provide

quality, fresh shrimp every week, 52 weeks a year.

Our initial system was successful, but we determined that it would not be economically

feasible due to high operating costs.

Over the next several years, using the knowledge we gained from developing the first system, we

developed a shrimp production system that eliminated the high costs associated with the previous system.

We have produced thousands of

pounds of shrimp over the last few years in order to develop a design that will consistently produce quality shrimp that grow to a large

size at a specific rate of growth.

This included experimenting with various types of natural live and synthesized feed supplies before

selecting the most appropriate nutritious and reliable combination.

It also included utilizing monitoring and control automation equipment

to minimize labor costs and to provide the necessary oversight for proper regulation of the shrimp environment.

July 3, 2022, the La Coste, Texas shrimp production facility experienced a fire that damaged the Water Treatment Plant (WTP) including

the filtration equipment within the building.

The initial investigation indicated that the fire started at an external source near the

WTP building.

No one was hurt and this did not cause any damage to the main production building containing the shrimp.

The Company immediately

engaged its Emergency Response Team comprised of management, engineering, production, and sales personnel organized to quickly respond

and deal with potential situations such as this.

Fortunately, the Company has the necessary backup equipment to replace the damaged equipment

which will allow continued production and sales in Texas.

The Company received $700,000 from the insurance company for the claim filed

for the fire damage.

Due to the damage caused by the fire, the Company has written off approximately $1,764,000 of the fixed assets,

and $325,000 of the accumulated depreciation, which, less the $700,000 insurance settlement, has resulted in the recognition of a loss

due to fire in the unaudited condensed consolidated statement of operations.

began selling live shrimp in late June, and Iowa has been selling since November of 2021.

The initial live shrimp sales were limited

in size to establish and train customers in shipping and handling procedures.

These sales are targeted presently in the Chicago and San

Antonio areas.

As previously announced, the Company has established a partnership with US Foods, a leading foodservice distributor, to

deliver the Company’s fresh never frozen shrimp to US Foods in the South Texas area.

The Company expects sales to begin in November

2022 with sales of approximately 1,000 pounds per month with expected expansion of sales to 4,000 pounds per month in the first calendar

quarter of 2023.

Total sales have also recently included the selling of shrimp at the downtown Webster City, Iowa market for the local

Chamber of Commerce.

expect the combined output from the La Coste, Texas, and Webster City, Iowa facilities should result in a total of 20,000 pounds of shrimp

production for the calendar quarter that will end on December 31, 2022 and 40,000 pounds of shrimp production for the first calendar

quarter of 2023.

believe that the combined output from our La Coste, Texas and Iowa facilities will be approximately 24,000 pounds of shrimp production

per week by the fourth calendar quarter of 2023.

Also, the Company is expecting to break ground on an 80,000 square foot expansion in

La Coste prior to December 31, 2022.

Merger Agreement and the Merger

October 24, 2022, the Company entered into a Merger Agreement (as it may be amended, supplemented, or otherwise modified from time to

time, the “Merger Agreement”), by and among the Company, Yotta Acquisition Corporation, a Delaware corporation (“Yotta”),

and Yotta Merger Sub, Inc., a Nevada corporation and a wholly owned subsidiary of Yotta (“Merger Sub”).

Merger Agreement and the transactions contemplated thereby (the “Transactions”) were approved by the board of directors of

each of the Company, Yotta, and Merger Sub.

Merger Agreement provides, among other things, that Merger Sub will merge with and into the Company, with the Company as the surviving

company (the “Surviving Company”) in the merger and, after giving effect to such merger, the Company shall be a wholly-owned

subsidiary of Yotta (the “Merger ” ).

In addition, Yotta will be renamed “NaturalShrimp, Incorporated” or

such other name as shall be designated by the Company.

Other capitalized terms used, but not defined, herein have the respective meanings

given to such terms in the Merger Agreement.

Merger Agreement provides for aggregate consideration to be issued to securityholders of the Company of 17,500,000 shares (the “Closing

Merger Consideration Shares”) of Yotta’s common stock, par value $0.0001 per share (“Yotta Shares”), to be issued

at the effective time of the Merger (the “Effective Time”), plus an additional (i) 5,000,000 Yotta Shares if the Surviving

Corporation has at least $15,000,000 in revenue during the fiscal year ended March 31, 2024 and (ii) 5,000,000 Yotta Shares if the Surviving

Corporation has at least $30,000,000 in revenue during the fiscal year ended March 31, 2025 (collectively, the “Contingent Merger

Consideration Shares”).

accordance with the terms and subject to the conditions of the Merger Agreement, at the Effective Time each share of Common Stock outstanding

or deemed outstanding pursuant to the provisions discussed immediately below as of immediately prior to the Effective Time will be converted

into the right to receive its allocable portion of the Closing Merger Consideration Shares and the Contingent Merger Consideration Shares

(to the extent the required revenue thresholds are met).

to the terms of the Merger Agreement and agreements that, pursuant to the Merger Agreement, the Company will enter into with holders

of such convertible securities, such convertible securities will be canceled in exchange (except for the Series A Convertible Preferred

Stock of the Company, par value $0.0001 per share (the “Series A Preferred”) for a cash payment or Yotta Shares as follows:

(i) at the option of the holder thereof, each outstanding warrant to purchase shares of Common Stock will be canceled in exchange for

a cash payment based on the value thereof or treated as exercised for shares of Common Stock, in each case based on an adjusted exercise

price and as otherwise set forth in the Merger Agreement and/or the individual agreements, and if treated as exercised, converted into

the right to receive such deemed shares of Common Stock’s allocable portion of the Closing Merger Consideration Shares and the

Contingent Merger Consideration Shares;

(ii) each outstanding share of Series F Convertible Preferred Stock of the Company, par value

$0.0001 per share, will be canceled and treated as if converted into shares of Common Stock at an adjusted conversion rate as set forth

in the Merger Agreement and/or such individual agreements, and converted into the right to receive such deemed shares of Common Stock’s

allocable portion of the Closing Merger Consideration Shares and the Contingent Merger Consideration Shares;

and (iii) each outstanding

share of Series E Convertible Preferred Stock of the Company, par value $0.0001 per share (the “Series E Preferred”), will

be canceled and treated as if converted into shares of Common Stock at an adjusted conversion rate as set forth in the Merger Agreement

and/or such individual agreements, and converted into the right to receive such deemed shares of Common Stock’s allocable portion

of the Closing Merger Consideration Shares and the Contingent Merger Consideration Shares.

In addition, each holder of Series E Preferred

will be entitled to receive at the Effective Time an additional number of Closing Merger Consideration Shares as are necessary to ensure

that the per-share value of the Yotta Shares that such stockholder is entitled to receive is not less than the per-share value (based

on the effective purchase price) of the aggregate Yotta Shares then held by any Yotta stockholder after taking into account any newly-issued

Yotta Shares that such Yotta stockholder acquires directly from Yotta prior to the closing of the Merger (the “Closing”)

(which will reduce the number of Closing Merger Consideration Shares that will be issued to the Company’s other securities holders).

The Series A Preferred will be cancelled and retired without any conversion thereof and for no consideration.

addition, the Merger Agreement provides that, pursuant to an agreement to be entered into between the Company and Streeterville Capital,

LLC (“Streeterville”) as the holder of the Secured Convertible Promissory Note in the initial amount of $16,320,000.00 issued

by the Company to Streeterville with an effective date of December 15, 2021 (the “Convertible Note”), contingent on and effective

as of the Effective Time, the Convertible Note will be amended to eliminate the conversion feature thereof.

Also, such agreement will

(i) for the payment to Streeterville of an amount equal to the lesser of (A) one-third of the amount retained in the Trust

Account at the Effective Time or (B) $10,000,000, in order to repay a portion of the outstanding balance of the Convertible Note;

that the remaining balance of the Convertible Note be repaid in equal monthly installments over a 12-month period beginning on a date

after the Closing Date or the termination of such agreement;

and (iii) that if the Closing Date is after December 31, 2022, the outstanding

balance of all indebtedness owed by the Company to Streeterville will be increased automatically by 2% and will automatically increase

by 2% every 30 days thereafter until the Closing, or substantially similar terms as approved by the Board of Directors of the Company.

Company is required to enter into all of the above-described agreements with the holders of the warrants, preferred stockholders, and

Streeterville within 14 days of the date of the Merger Agreement, or November 7, 2022 (the “Convertible Instrument Agreements”).

Merger is expected to close in the first calendar quarter of 2023, following the receipt of the required approvals by the stockholders

of the Company and Yotta, conditional approval by the Nasdaq Stock Market of Yotta’s initial listing application filed in connection

with the Merger, and the fulfillment of other customary closing conditions.

Merger Agreement may be terminated under certain customary and limited circumstances at any time prior to the Closing, including, without

(i) by the mutual written consent of the parties;

(ii) by either Yotta or the Company if the Closing does not occur on or

prior to July 22, 2023 or, if an Additional Extension Period has been approved, at the expiration of such period (the “Outside

Termination Date”), unless the breach of any covenants or obligations under the Merger Agreement by the party seeking to terminate

(or, in the case of Yotta, by Merger Sub) proximately caused the failure to consummate the Transactions by the applicable date;

by either Yotta or the Company if any governmental authority shall have issued an order, enacted a law, or taken any other action that

has the effect of making the Transactions illegal or permanently restraining, enjoining, or otherwise prohibiting the consummation of

the Transactions and such law or order or other action shall have become final and nonpeelable, unless the failure by such party or its

affiliates to comply with any provision of the Merger Agreement was a substantial cause of, or substantially resulted in, such action

by such governmental authority;

(iv) by Yotta, subject to certain exceptions, if the Company has breached any of its representations,

warranties, covenants, or agreements in the Merger Agreement and such breach cannot be cured at all or within the earlier of (A) 30 days

after written notice thereof and (B) the Outside Termination Date;

(v) by Yotta, subject to certain exceptions, if the Company does not

receive the required stockholder approval of the Merger Agreement within five business days after the effective date of the Form S-4;

(vi) by Yotta, subject to certain exceptions, if the Company fails to enter into the Convertible Instrument Agreements by November 7,

and (vii) by the Company, subject to certain exceptions, if Yotta or Merger Sub has breached any of its representations, warranties,

covenants, or agreements in the Merger Agreement and such breach cannot be cured at all or within the earlier of (A) 30 days after written

notice thereof and (B) the Outside Termination Date.

the Merger Agreement is validly terminated, none of the parties to the Merger Agreement will have any liability or any further obligation

under the Merger Agreement other than customary confidentiality obligations, except in the case of a willful breach of any covenant or

agreement under the Merger Agreement or fraud, provided, that (A) if Yotta terminates the Merger Agreement pursuant to clauses (iv),

(v), or (vi) of the preceding paragraph, the Company must pay to Yotta, within two business days of such termination, a termination fee

in the amount of $3,000,000, and (B) if the Company terminates the Merger Agreement pursuant to clause (vii) of the preceding paragraph,

Yotta shall pay to the Company, within two business days of such termination, a termination fee in the amount of $3,000,000.

of Operations

of the Three Months Ended September 30, 2022 to the Three Months Ended September 30, 2021

had revenue of $51,725 in the three months ended September 30, 2022, compared to no revenues during the quarter ended September 30, 2021.

Revenues during the 2022 period were the result of initial sample orders sold to customers.

following table summarizes the various components of our operating expenses for each of the three months ended September 30, 2022 and

September 30, 2021:

Three Months Ended September 30,

Salaries and related expenses

3 unchanged sentences

Research and development

Operating expenses for the three

months ended June 30, 2022 were $2,923,140, which is a 31% increase over operating expenses of $2,238,090 for the same period in 2021.

The overall change in expenses is mainly the result of increases in facility operations relating to the progress of the planning of the

commercial operations in the new plant in Iowa as well as in Texas.

Additionally, there is quarterly amortization of $367,500 for the

new patents and License rights, as well as research and development arising from conducting trials of Atlantic salmon productions in Norway,

neither of which existed in the prior period.

Salaries decreased by approximately $189,000, as there was a $300,000 bonus paid to one

of the executives in the three months ended June 30, 2021.

Professional fees decreased by approximately $163,000, due to increased attorneys

work with the Company on acquisitions and equity offerings and SEC filings, as well as consultant and accounting fees, in the prior period.

The depreciation in the three months ended June 30, 2022, increased due to the progressed fixed assets as well as the movement of construction

in process to fixed assets, in the two plants.

Liquidity, Financial Condition and Capital Resources

As of June 30, 2022, we had cash

on hand of approximately $664,000 and working capital deficiency of approximately $16,876,000, as compared to cash on hand of approximately

$1,734,000 and a working capital deficiency of approximately $17,017,000 as of March 31, 2022.

The decrease in working capital for the

three months ended June 30, 2022, is mainly due to the decrease in cash on-hand, including the escrow account and increase in accounts

payable and accrued expenses, offset by a decrease in fair value of the derivative and warrant liabilities.

Working Capital/(Deficiency)

Our working capital as of June

30, 2022, in comparison to our working capital deficiency as of March 31, 2021, can be summarized as follows:

expenses for the three months ended September 30, 2022, decreased $66,621, or 2.4%, compared to the same period in 2021, primarily

due to increases in facility operations expense, depreciation, and amortization partially offset by decreases in salaries and

related expenses, research and development expenses, and professional fees.

Facility operations expenses increased $315,801, or 183.1%, during the three months ended September 30, 2022 compared to the same period in 2021, as a

result of the progress of the planning of the commercial operations in our Iowa and Texas facilities .

Depreciation increased

$150,728, or 58.5%, quarter over quarter due to the progressed fixed assets as well as the movement of construction in process to

fixed assets in the two plants .

Amortization increased $221,000, or 150.9%, quarter over quarter, to $367,500 for the quarter

ended September 30, 2022, as a result of quarterly amortization of $367,500 for the Patents and the license rights pursuant to the

Equipment Rights Agreement with Hydrenesis Delta Systems and the Technology Rights Agreement with Hydrenesis Aquaculture, which

amortization we began to recognize in August 2021 and that will be amortized over a 20-year period for the patents and a 10 year period for the license rights.

Amortization during the 2021

period related to the beginning of the amortization of the patents and license rights.

Salaries and related expenses decreased by $482,433, or 47.1%, during the quarter ended September 30, 2022

compared to the same period of 2021, primarily due to the Company’s payment of a one-time $600,000 bonus to the

President and Chief Technology Officer during the 2021 period, partially offset by an increase in the number of employees and

normal salary increases.

Research and development expenses decreased $192,872, or 98.0%, due to the slowdown during the quarter of

conducting trials of Atlantic salmon production in Norway.

Finally, professional fees

during the quarter ended September 30, 2022, decreased by $66,383 compared to the same period of 2021, due to greater than normal

levels of attorneys’ work with the Company on acquisitions and equity offerings and SEC filings, as well as consultant and

accounting fees, in the 2021 period.

income (expense)

following table summarizes the various components of our Other income(expenses) for each of the three months ended September 30, 2022

and September 30, 2021:

Three Months Ended September 30,

Interest expense

Interest expense - related parties

Amortization of debt discount

Change in fair value of derivative liability

(18,241,000 )

Change in fair value of warrant liability

Loss due to fire

$ (21,862,319 )

expense for the three months ended September 30, 2022 increased significantly from the three months ended September 30, 2021, the majority

of which is a result of the recognition of the features related to the new $16,320,000 convertible note entered into on December 15,

The note included an OID of $1,320,000, plus debt issuance costs of $1,095,000 and warrants were issued with a fair value of $940,000.

Additionally, the conversion feature was analyzed as a derivative and was required to be bifurcated, and the derivative at the inception

was valued at $12,985,000.

All of these features added together resulted in a debt discount capped at $16,320,000.

As a result, the quarterly

amortization of the debt discount is $2,040,000 in the three months ended September 30, 2022.

There were no derivatives or warrant liabilities

in the prior period.

Therefore, the change in fair value is a new recognition in the current period.

The derivative fair value increased,

resulting in the change in fair value being an expense.

The interest rate on the convertible note is 12%, so the interest expense on

it is $497,072 for the three months ended September 30, 2022, which is the cause of the increase in interest expense for the current

period as compared to the prior period.

July 3, 2022, the Company’s building containing its water treatment and purification system in La Coste, Texas was completely destroyed

This resulted in the $863,117 loss due to fire recognized in the three months ended September 30, 2022.

of the Six Months Ended September 30, 2022 to the Six Months Ended September 30, 2021

were $88,061 during the six months ended September 30, 2022, compared to no revenues during the six months ended September 30, 2021.

Revenues during the 2022 period were the result of initial sample orders sold to customers.

following table summarizes the various components of our operating expenses for each of the six months ended September 30, 2022 and September

Six Months Ended September 30,

Salaries and related expenses

Professional fees

Other general and administrative expenses

Facility operations

Research and development

expenses for the six months ended September 30, 2022 increased $618,829, or 12.3%, compared to the same period in 2021, primarily

due to increases in facility operations expense, depreciation, and amortization partially offset by decreases in salaries and related

expenses and professional fees .

Facility operations expenses increased $608,407, or 147.8%,

during the six months ended September 30, 2022 compared to the same period in 2021, primarily as a result

of a ramp-up of costs based on the increase in the activity in planning operations .

Depreciation increased $321,186, or 52.5%, during the six months ended September 30, 2022, compared to the same period in 2021,

as a result of the fixed assets from the new plant and the construction in process moved to fixed

assets , as discussed above.

Amortization increased $588,500, or 401.7%, during the

six months ended September 30, 2022, compared to the same period of 2021, as a result of the quarterly amortization for the new patent

and license rights as discussed above with respect to the results for the quarter ended September 30, 2022, which we began to recognize

in August 2021.

While there were additional employees and normal salary increases, salaries and related expenses decreased $671,451,

or 40.6%, during the six months ended September 30, 2022 compared to the same period of 2021, primarily due to the Company’s payment

of $700,000 in bonuses to its executive officers during the 2021 period, as discussed above.

Professional fees decreased during the 2022

period due to greater than normal levels of legal work, as well as consultant and accounting fees, during the six months ended September

income (expense)

following table summarizes the various components of our Other income(expenses) for each of the six months ended September 30, 2022 and

September 30, 2021:

Six Months Ended September 30,

Interest expense

$ (1,081,663 )

Interest expense - related parties

Amortization of debt discount

Financing costs

Change in fair value of derivative liability

(16,927,000 )

Change in fair value of warrant liability

Forgiveness of PPP loan

Loss due to fire

$ (21,175,691 )

expense for the six months ended September 30, 2022, increased significantly from the same period in 2021, the majority of which is a

result of the recognition of the features related to the new $16,320,000 convertible note entered into on December 15, 2021.

included an OID of $1,320,000, plus debt issuance costs of $1,095,000 and warrants were issued with a fair value of $940,000.

Additionally,

the conversion feature was analyzed as a derivative required to be bifurcated, and the derivative at the inception was valued at $12,985,000.

All of these features added together resulted in a debt discount capped at $16,320,000.

As a result, the amortization of the debt discount

is $4,080,000 in the six months ended September 30, 2022.

There were no derivatives nor warrant liabilities in the prior period, therefore

the change in fair value is a new recognition in the current period.

The derivative fair value increased, resulting in the change in

fair value being an expense.

The interest rate on the convertible note is 12%, so the interest expense on it is $994,145 for the six

months ended September 30, 2022, which is the cause of the increase in interest expense for the current period as compared to the prior

July 3, 2022, the Company’s building containing its water treatment and purification system in La Coste, Texas was completely destroyed

This resulted in the $863,117 loss due to fire recognized in the six months ended September 30, 2022.

April of 2021, the Company settled a convertible note, with a redemption fee of $109,953, recognized as financing costs.

The Company’s

Paycheck Protection Program (“PPP”) loan was approved for forgiveness on April 26, 2021 and, therefore, was recognized in

the six months ended September 30, 2021.

Financial Condition and Capital Resources

of September 30, 2022, we had cash on hand of approximately $561,000 and working capital deficiency of approximately $38,334,000, as

compared to cash on hand of approximately $1,734,000 and a working capital deficiency of approximately $17,017,000 as of March 31, 2022.

The decrease in working capital for the six months ended September 30, 2022, is mainly due to the decrease in cash on-hand, the increase

in the fair value of the derivative liability , the new promissory notes and related party notes, accrued interest, offset

by a decrease in fair value of the warrant liability.

Capital/(Deficiency)

working capital as of September 30, 2022, in comparison to our working capital deficiency as of March 31, 2021, can be summarized as

September 30,

Current assets

3 unchanged sentences

$ (17,017,120 )

Current assets decreased mainly

because of the use of the cash on hand, as a result of the equity offerings during April through June 30, 2021, of approximately $17,277,000,

as well as the $1,500,000 escrow account which was transferred to the Company’s cash.

This was offset by an increase in prepaid

expenses, relating mainly to prepaid deposits for construction and equipment in the Iowa plant.

The decrease in current liabilities

is primarily due to the decrease in the fair value of the derivative liability and warrant liability, off set by the increase in accounts

payable and the accrued interest arising from the convertible debenture.

Our cash flows for the three months

ended June 30, 2022, in comparison to our cash flows for the three months ended June 30, 2021, can be summarized as follows:

Three months Ended June 30,

assets increased mainly because of the $3,900,000 escrow account arising from the new promissory note in August 2022, less the release

of the $1,500,000 escrow account as of March 31, 2022 related to the proceeds from the issuance of a convertible debenture in December

2021, which was transferred to the Company’s cash.

This was offset by a decrease in cash based on the use of the cash on hand,

and a decrease as well in prepaid expenses.

The increase in current liabilities is primarily due to the in $18,241,000, increase in the

fair value of the derivative liability , as well as the entrance into a new promissory note of $5,000,000, less it’s OID and

debt discount, and the $250,000 notes payable-related party.

This is offset by the decrease in the fair value of the warrant liability.

cash flows for the six months ended September 30, 2022, in comparison to our cash flows for the six months ended September 30, 2021,

can be summarized as follows:

Six months Ended September 30,

Net cash used in operating activities

4 unchanged sentences

Net change in cash

The net cash used in operating

activities in the three months ended June 30, 2022 is similar compared to the same period in 2021.

However, the three months ended June

30, 2022 has the change in fair value of the derivative and warrant liabilities of $3,228,000 offset by the increase in amortization of

the debt discount and amortization of $2,407,500, and accounts receivable and inventory, none of which occurred in the prior period.

Additionally,

there are increases in prepaid expenses and accounts payable and accrued interest.

The net cash used in investing

activities in the three months ended June 30, 2022 decreased by approximately $3,670,000 compared to the same period in the prior fiscal

During the current period cash was only used to purchase consists of approximately $491,000 for machinery and equipment .

year’s cash spent on investing activities consisted of the $2,000,000 of cash in the patent acquisition and $1,000,000 in the acquisition

of shares of the non-controlling interest, as well as approximately $411,000 for machinery and equipment and $750,000 for construction

The net cash provided by financing

activities decreased by approximately $10,642,000 between periods.

For the current period, the Company received $1,500,000 that had been

held in escrow from the convertible note they entered into in December of 2021.

In the same period in the prior year, the Company received

approximately $17,277,000 from the sale of common stock and warrants, offset by amounts paying off the convertible note, notes payable

with related parties and bank loans, and the amount paid on the redemption of Series D Preferred Shares.

Our cash position was approximately

$664,000 as of June 30, 2022.

Management believes that our cash on hand and working capital deficit are not sufficient to meet our current

anticipated cash requirements for additional anticipated capital expenditures, operating expenses and scale-up of operations for the next

twelve months.

Recent Financing Arrangements and Developments

During the Period

Short-Term Debt and Lines of Credit

The Company also has a working

capital line of credit with Capital One Bank for $50,000.

The line of credit bears an interest rate of prime plus 25.9 basis points, which

totaled 30.65% as of June 30, 2022.

$ (1,172,613 )

net cash used in operating activities in the six months ended September 30, 2022 is approximately $523,000 less as compared to the same

period in 2021.

The decrease in cash used is based on the decrease in prepaid expenses and the increase in accounts payable and accrued

interest related to the new promissory note as well as the addition for the current period’s six months on the convertible note.

A portion is also due to the increase in the accounts receivable and inventory, none of which occurred in the prior period.

net cash used in investing activities in the three months ended September 30, 2022 decreased by approximately $7,085,000 compared to

the same period in the prior fiscal year.

During the current period cash used consists of the purchase of approximately $209,000 for

machinery and equipment.

The prior year’s cash spent on investing activities consisted of the $2,000,000 of cash in the patent

acquisition and $1,000,000 in the acquisition of shares of the non-controlling interest, as well as approximately $646,000 for machinery

and equipment and $1,298,000 for construction in process.

net cash provided by financing activities decreased by approximately $9,425,000 between periods.

For the current period, the Company

received $4,865,000 net proceeds on a new promissory note, with $3,900,000 put in an escrow account, and $150,000 from a promissory note

with related parties.

Additionally, the $1,500,000 that had been held in escrow from the convertible note the Company entered into in

December of 2021 has been transferred into its cash on hand.

In the same period in the prior year, the Company received approximately

$17,277,000 from the sale of common stock and warrants, offset by amounts paying off the convertible note, notes payable with related

parties and bank loans, and the amount paid on the redemption of Series D Preferred Shares.

cash position was approximately $561,000 as of September 30, 2022.

Management believes that our cash on hand and working capital deficit

are not sufficient to meet our current anticipated cash requirements for additional anticipated capital expenditures, operating expenses

and scale-up of operations for the next twelve months .

Financing Arrangements and Developments During the Period

Debt and Lines of Credit

Company also has a working capital line of credit with Capital One Bank for $50,000.

The line of credit bears an interest rate of prime

plus 25.9 basis points, which totaled 31.625% as of September 30, 2022.

The line of credit is unsecured.

The balance of the line of credit was $9,580 at both June 30, 2022

and March 31, 2021.

The Company also has a working

capital line of credit with Chase Bank for $25,000.

The line of credit bears an interest rate of prime plus 10 basis points, which totaled

14.75% as of June 30, 2022.

The line of credit is secured by assets of the Company’s subsidiaries.

The balance of the line of credit

is $10,237 at June 30, 2022 and March 31, 2022.

Convertible Debentures

Company entered into a securities purchase agreement (the “SPA”) with an investor (the “Investor”) on December

was $9,580 at both September 30, 2022 and March 31, 2021.

Company also has a working capital line of credit with Chase Bank for $25,000.

The line of credit bears an interest rate of prime plus

10 basis points, which totaled 15.725% as of September 30, 2022.

The line of credit is secured by assets of the Company’s subsidiaries.

The balance of the line of credit is $10,237 at September 30, 2022 and March 31, 2022.

Company entered into a securities purchase agreement (the “SPA”) with an investor (the “Investor”) on August

Pursuant to the SPA, the Investor purchased a secured promissory note (the “Note”) in the aggregate principal amount

1 unchanged sentence

The Note has an interest rate of 12% per annum, with a maturity

date 24 months from the issuance date of the Note (the “Maturity Date”).

date nine months from the issuance date of the Note (the “Maturity Date”).

The Note carried an original issue discount totaling

$433,333 and a transaction expense amount of $10,000, both of which are included in the principal balance of the Note.

$2,035,000 in debt issuance costs, including fees paid in cash of $1,095,000 and 3,000,000 warrants issued to placement agents with a

fair value of $940.000.

The warrant fair value was estimated using the Black Scholes Model, with the following inputs:

the price of the

Company’s common stock of $0.32;

a risk-free interest rate of 1.19%, the expected volatility of the Company’s common stock

the estimated remaining term, a dividend rate of 0%.

The warrants were classified as a liability, as it is not known if there

will be sufficient authorized shares to be issued upon settlement, based on the conversion terms of the convertible debt.

on the date that is 6 months from the issuance date of the Note, the Investor has the right to redeem up to $1,000,000 of the outstanding

balance per month.

Payments may be made by the Company, at the Company’s option, (a) in cash, or (b) by paying the redemption amount

in the form of shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), per the following

the number of redemption shares equals the portion of the applicable redemption amount divided by the Redemption Repayment Price.

The “Redemption Repayment Price” equals 90% multiplied by the average of the two lowest volume weighted average price per

share of the Common Stock during the ten (10) trading days immediately preceding the date that the Investor delivers notice electing to

redeem a portion of the Note.

The redemption amount shall include a premium of 15% of the portion of the outstanding balance being paid

(the “Exit Fee”).

In addition to the Investor’s right of redemption, the Company has the option to prepay the Notes

at any time prior to the Maturity Date by paying a premium of 15% plus the principal, interest, and fees owed as of the prepayment date.

180 days of the issuance date of the Note, the Company will obtain an effective registration statement or a supplement to any

existing registration statement or prospectus with the SEC registering at least $15,000,000 in shares of Common Stock for the

Investor’s benefit such that any redemption using shares of Common Stock could be done using registered Common Stock.

Additionally, as soon as reasonably possible following the issuance of the Note, the Company will cause the Common Stock to be

listed for trading on either of (a) NYSE, or (b) NASDAQ (in either event, an “Uplist”).

In the event the Company has not

effectuated the Uplist by March 1, 2022, the then-current outstanding balance will be increased by 10%.

On the Closing

Date the Company received $1,100,000, with $3,900,000 put into escrow to be held until certain terms are met, which includes $3,400,000

upon the completion of a successful uplist to NYSE or NASDAQ.

The SPA includes a Security Agreement, whereby the note is secured by the

collateral set forth in the agreement, covering all of the assets of the Company.

All payments made by the Company under the terms in

the note, including upon repayment of this Note at maturity, shall be subject to an exit fee of 15% of the portion of the Outstanding

Balance being paid (the “Exit Fee”).

soon as reasonably possible, the Company will cause the Common Stock to be listed for trading on either of (a) NYSE, or (b) NASDAQ (in

either event, an “Uplist”).

In the event the Company has not effectuated the Uplist by November 15, 2022, the then-current

outstanding balance will be increased by 10%.

Following the Uplist, while the Note is still outstanding, ten days after the Company may

have a sale of any of its shares of common stock or preferred stock, there shall be a Mandatory Prepayment equal to the greater of $3,000,000

or thirty-three percent of the gross proceeds of the equity sale.

Note – related parties

August 10, 2022, the Company issued a loan agreement for $300,000, with related parties, which is to be considered priority debt of the

As of this filing, five of the related parties have entered into promissory notes under the loan agreement for $50,000 each,

for a total of cash received of $250,000.

The notes bear interest at a 10% per annum and are due in one year from the date of the note.

Company entered into a securities purchase agreement (the “December 2021 SPA”) with an investor (the “December 2021

Investor”) on December 15, 2021.

Pursuant to the December 2021 SPA, the December 2021 Investor purchased a secured promissory note

(the “December 2021 Note”) in the aggregate principal amount totaling approximately $16,320,000.

The December 2021 Note has

an interest rate of 12% per annum, with a maturity date 24 months from the issuance date of the December 2021 Note (the “Maturity

The December 2021 Note carried an original issue discount totaling $1,300,000 and a transaction expense amount of $20,000,

both of which are included in the principal balance of the December 2021 Note.

The December 2021 Note had $2,035,000 in debt issuance

costs, including fees paid in cash of $1,095,000 and 3,000,000 warrants issued to placement agents with a fair value of $940.000.

warrant fair value was estimated using the Black Scholes Model, with the following inputs:

the price of the Company’s common stock

a risk-free interest rate of 1.19%, the expected volatility of the Company’s common stock of 209.9%;

the estimated remaining

term, a dividend rate of 0%.

The warrants were classified as a liability, as it is not known if there will be sufficient authorized shares

to be issued upon settlement, based on the conversion terms of the convertible debt.

on the date that is 6 months from the issuance date of the December 2021 Note, the December 2021 Investor has the right to redeem up

to $1,000,000 of the outstanding balance per month.

Payments may be made by the Company, at the Company’s option, (a) in cash,

or (b) by paying the redemption amount in the form of shares of the Company’s common stock, par value $0.0001 per share (the “Common

Stock”), per the following formula:

the number of redemption shares equals the portion of the applicable redemption amount divided

by the Redemption Repayment Price.

The “Redemption Repayment Price” equals 90% multiplied by the average of the two lowest

volume weighted average price per share of the Common Stock during the ten (10) trading days immediately preceding the date that the

December 2021 Investor delivers notice electing to redeem a portion of the December 2021 Note.

The redemption amount shall include a

premium of 15% of the portion of the outstanding balance being paid (the “Exit Fee”).

In addition to the December 2021 Investor’s

right of redemption, the Company has the option to prepay the December 2021 Notes at any time prior to the Maturity Date by paying a

premium of 15% plus the principal, interest, and fees owed as of the prepayment date.

180 days of the issuance date of the December 2021 Note, the Company will obtain an effective registration statement or a supplement

to any existing registration statement or prospectus with the SEC registering at least $15,000,000 in shares of Common Stock for the

December 2021 Investor’s benefit such that any redemption using shares of Common Stock could be done using registered Common Stock.

Additionally, as soon as reasonably possible following the issuance of the December 2021 Note, the Company will cause the Common Stock

to be listed for trading on either of (a) NYSE, or (b) NASDAQ (in either event, an “Uplist”).

In the event the Company has

not effectuated the Uplist by March 1, 2022, the then-current outstanding balance will be increased by 10%.

On February 7, 2022, the

Company and the Lender entered into an amendment to the SPA, which extended the date by which the Uplist must be completed to April

Company and the December 2021 Investor entered into an amendment to the SPA, which extended the date by which the Uplist must be completed

to April 15, 2022.

In consideration of the grant of the extension there was an extension fee of $249,079 added to the principal balance,

which has been recognized as a financing cost in the accompanying unaudited condensed consolidated financial statement.

Subsequently, the date by which the Uplist had to be completed was further extended to June 15, 2022, and again to November 15,

2022, with no additional fee included.

The Company will make a one-time payment to the Investor equal to 15% of the gross proceeds

the Company receives from the offering expected to be effected in connection with the Uplist (whether from the sale of shares of its

Common Stock and / or preferred stock) within ten (10) days of receiving such amount.

In the event Borrower does not make this

payment, the then-current outstanding balance will be increased by 10%.

The Note also contains certain negative covenants and Events

Upon an Event of a Default, at its option and sole discretion, the Investor may consider the Note immediately due and

Upon such an Event of Default, the interest rate increases to 18% per annum and the outstanding balance of the Note

increases from 5% to 15%, depending upon the specific Event of Default.

Series E Preferred Stock

During the three months ended

June 30, 2022, 700 shares of Series E Preferred Stock were converted into 4,537,240 shares of common stock.

During the three months ended

June 30, 2022, the amortization of the beneficial conversion feature of the Series E preferred stock was $141,500.

The Company is accreting

the carrying value, of the Series E Preferred Stock in temporary equity up to the redemption value over the period until its redemption.

For the three months ended June 30, 2022, $278,500 was accreted, and approximately $637,000 to date as of June 30, 2022.

Common Shares Issued to Consultant

On April 14, 2021, 500,000 shares

of common stock were issued to a consultant per an agreement entered into on January 20, 2021 for advisory services for a two-year period.

Subsequently,

the date by which the Uplist had to be completed was further extended to June 15, 2022, and again to November 15, 2022, with no additional

fee included.

The Company will make a one-time payment to the December 2021 Investor equal to 15% of the gross proceeds the Company receives

from the offering expected to be effected in connection with the Uplist (whether from the sale of shares of its Common Stock and / or

preferred stock) within ten (10) days of receiving such amount.

In the event Borrower does not make this payment, the then-current outstanding

balance will be increased by 10%.

The December 2021 Note also contains certain negative covenants and Events of Default.

Upon an Event

of a Default, at its option and sole discretion, the December 2021 Investor may consider the December 2021 Note immediately due and payable.

Upon such an Event of Default, the interest rate increases to 18% per annum and the outstanding balance of the December 2021 Note increases

from 5% to 15%, depending upon the specific Event of Default.

Shares Issued to Consultant

April 14, 2021, 500,000 shares of common stock were issued to a consultant per an agreement entered into on January 20, 2021 for advisory

services for a two-year period.

The shares had a fair value of $195,000, based on the market price of $0.39 on the grant date.

62,500 common shares shall vest each quarter

through October 1, 2022, at $24,275, with $146,750 vested through June 30, 2022.

Common stock issued in relation to business agreement

As of June 22, 2022, 250,000 common

shares were issued in relation to a Trial Distribution agreement, which after the result of the Trial Period both parties may negotiate

and execute a long term Distribution Agreement.

The shares will be paid by the Company withholding sufficient profits from the sale by

the other party of the live shrimp.

Going Concern

The unaudited condensed consolidated financial

statements contained in this quarterly report on Form 10-Q have been prepared, assuming that the Company will continue as a going concern.

The Company has accumulated losses through the period to June 30, 2022 of approximately $152,758,000 as well as negative cash flows from

operating activities of approximately $2,055,000.

Presently, the Company does not have sufficient cash resources to meet its plans in

the twelve months following the date of issuance of this filing.

These factors raise substantial doubt about the Company’s ability

shares of common stock shall vest each quarter through October 1, 2022, at $24,275, with approximately $171,000 vested through September

stock issued in relation to business agreement

August 1, 2022, the Company issued 250,000 shares of common stock to a consultant per the terms of an agreement from June 2021, to be

issued upon the approval of a patent.

Stock Issued in Relation to Business Agreement

of June 22, 2022, 250,000 common shares were issued in relation to a trial distribution agreement, which after the result of the trial

period, both parties may negotiate and execute a long-term distribution agreement.

The shares will be paid by the Company withholding

sufficient profits from the sale by the other party of the live shrimp

unaudited condensed consolidated financial statements contained in this quarterly report on Form 10-Q have been prepared, assuming that

the Company will continue as a going concern.

The Company has accumulated losses through the period to September 30, 2022 of approximately

$177,927,000 as well as negative cash flows from operating activities of approximately $3,631,000.

Presently, the Company does not have

sufficient cash resources to meet its plans in the twelve months following the date of issuance of this filing.

These factors raise substantial

doubt about the Company’s ability to continue as a going concern.

Management is in the process of evaluating various financing

alternatives in order to finance the continued build-out of our equipment and for general and administrative expenses.

These alternatives

include raising funds through public or private equity markets and either through institutional or retail investors.

Although there is

no assurance that the Company will be successful with our fund-raising initiatives, management believes that the Company will be able

to secure the necessary financing as a result of ongoing financing discussions with third party investors and existing shareholders.

unaudited condensed consolidated financial statements do not include any adjustments that may be necessary should the Company be unable

to continue as a going concern.

Management is in the process of evaluating various financing alternatives in order to finance the continued

build-out of our equipment and for general and administrative expenses.

These alternatives include raising funds through public or private

equity markets and either through institutional or retail investors.

Although there is no assurance that the Company will be successful

with our fund-raising initiatives, management believes that the Company will be able to secure the necessary financing as a result of

ongoing financing discussions with third party investors and existing shareholders.

The unaudited condensed

consolidated financial statements do not include any adjustments that may be necessary should the Company be unable to continue as a

going concern.

The Company’s continuation as a going concern is dependent on its ability to obtain additional financing as may

be required and ultimately to attain profitability.

If the Company raises additional funds through the issuance of equity, the

percentage ownership of current shareholders could be reduced, and such securities might have rights, preferences or privileges

senior to the rights, preferences and privileges of the Company’s common stock.

Additional financing may not be available upon

acceptable terms, or at all.

If adequate funds are not available or are not available on acceptable terms, the Company may not be

able to take advantage of prospective business endeavors or opportunities, which could significantly and materially restrict its

future plans for developing its business and achieving commercial revenues.

If the Company is unable to obtain the necessary

capital, the Company may have to cease operations.

Future Financing

We will require additional funds

to implement our growth strategy for our business.

In addition, while we have received capital from various private placements that have

enabled us to fund our operations, these funds have been largely used to develop our processes, although additional funds are needed for

other corporate operational and working capital purposes.

However, not including funds needed for capital expenditures or to pay down

existing debt and trade payables, we anticipate that we will need to raise an additional $2,500,000 to cover all of our capital and operational

expenses over the next 12 months, not including any capital expenditures needed as part of any commercial scale-up of our equipment.

funds may be raised through equity financing, debt financing, or other sources, which may result in further dilution in the equity ownership

of our shares.

There can be no assurance that additional financing will be available to us when needed or, if available, that such financing

can be obtained on commercially reasonable terms.

If we are not able to obtain the additional necessary financing on a timely basis, or

if we are unable to generate significant revenues from operations, we will not be able to meet our other obligations as they become due,

and we will be forced to scale down or perhaps even cease our operations.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements

that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues

or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

Effects of Inflation

We do not believe that inflation

has had a material impact on our business, revenues or operating results during the periods presented.

Critical Accounting Policies and Estimates

Our significant accounting policies

are more fully described in the notes to our financial statements included in this Quarterly Report on Form 10-Q and in our Annual Report

on Form 10-K for the fiscal year ended March 31, 2020.

We believe that the accounting policies below are critical for one to fully understand

and evaluate our financial condition and results of operations.

Fair Value Measurement

The fair value measurement guidance

clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability

in an orderly transaction between market participants.

As such, fair value is a market-based measurement that should be determined based

on assumptions that market participants would use in the valuation of an asset or liability.

It establishes a fair value hierarchy that

prioritizes the inputs to valuation techniques used to measure fair value.

The hierarchy gives the highest priority to unadjusted quoted

prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level

3 measurements).

The three levels of the fair value hierarchy under the fair value measurement guidance are described below:

Level 1 - Unadjusted quoted prices

in active markets that are accessible at the measurement date for identical assets or liabilities;

Level 2 - Quoted prices in markets

that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3 - Prices or valuation

techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market

The Derivative and warrant liabilities are Level 3

fair value measurements.

Basic and Diluted Earnings/Loss per Common Share

Basic and diluted earnings

or loss per share (“EPS”) amounts in the unaudited condensed consolidated financial statements are computed in

accordance with ASC 260 – 10 “Earnings per Share”, which establishes the requirements for presenting EPS.

The Company’s continuation as a going concern is dependent on its ability to obtain additional

financing as may be required and ultimately to attain profitability.

If the Company raises additional funds through the issuance of equity,

the percentage ownership of current shareholders could be reduced, and such securities might have rights, preferences or privileges senior

to the rights, preferences and privileges of the Company’s common stock.

Additional financing may not be available upon acceptable

terms, or at all.

If adequate funds are not available or are not available on acceptable terms, the Company may not be able to take advantage

of prospective business endeavors or opportunities, which could significantly and materially restrict its future plans for developing

its business and achieving commercial revenues.

If the Company is unable to obtain the necessary capital, the Company may have to cease

will require additional funds to implement our growth strategy for our business.

In addition, while we have received capital from various

private placements that have enabled us to fund our operations, these funds have been largely used to develop our processes, although

additional funds are needed for other corporate operational and working capital purposes.

However, not including funds needed for capital

expenditures or to pay down existing debt and trade payables, we anticipate that we will need to raise an additional $2,500,000

to cover all of our capital and operational expenses over the next 12 months, not including any capital expenditures needed as part of

any commercial scale-up of our equipment.

These funds may be raised through equity financing, debt financing, or other sources, which

may result in further dilution in the equity ownership of our shares.

There can be no assurance that additional financing will be available

to us when needed or, if available, that such financing can be obtained on commercially reasonable terms.

If we are not able to obtain

the additional necessary financing on a timely basis, or if we are unable to generate significant revenues from operations, we will not

be able to meet our other obligations as they become due, and we will be forced to scale down or perhaps even cease our operations.

Sheet Arrangements

have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition,

changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that

is material to stockholders.

do not believe that inflation has had a material impact on our business, revenues or operating results during the periods presented.

Accounting Policies and Estimates

significant accounting policies are more fully described in the notes to our financial statements included in this Quarterly Report on

Form 10-Q and in our Annual Report on Form 10-K for the fiscal year ended March 31, 2020.

We believe that the accounting policies below

are critical for one to fully understand and evaluate our financial condition and results of operations.

Value Measurement

fair value measurement guidance clarifies that fair value is an exit price, representing the amount that would be received to sell an

asset or paid to transfer a liability in an orderly transaction between market participants.

As such, fair value is a market-based measurement

that should be determined based on assumptions that market participants would use in the valuation of an asset or liability.

It establishes

a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.

The hierarchy gives the highest

priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority

to unobservable inputs (Level 3 measurements).

The three levels of the fair value hierarchy under the fair value measurement guidance

are described below:

1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities;

2 - Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the

full term of the asset or liability;

3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported

by little or no market activity).

Derivative and warrant liabilities are Level 3 fair value measurements.

and Diluted Earnings/Loss per Common Share

and diluted earnings or loss per share (“EPS”) amounts in the unaudited condensed consolidated financial statements are computed

in accordance with ASC 260 – 10 “Earnings per Share”, which establishes the requirements for presenting EPS.

EPS is based on the weighted average number of shares of common stock outstanding.

Diluted EPS is based on the weighted average

number of shares of common stock outstanding and dilutive common stock equivalents.

Basic EPS is computed by dividing net income or

loss available to common stockholders (numerator) by the weighted average number of shares of common stock outstanding (denominator)

during the period.

For the three months ended June 30, 2022, the Company had 5,000,000 Series A Convertible Preferred Stock which

would be converted at the holder’s option into approximately 740,711,000 underlying common shares, 1,500 of Series E

Redeemable Convertible Preferred shares whose approximately 5,143,000 underlying shares are convertible at the investors’

option at a fixed conversion price of $0.35, and 640 of Series E Redeemable Convertible Preferred shares whose approximately

7,676,000 underlying shares are convertible at the investors’ option at conversion price of 90% of the average of the two

lowest market prices over the last 10 days, 750,000 shares of Series F Preferred Stock which would be converted at the

holders’ option into approximately 177,771,000 underlying common shares, approximately $18,768,000 in a convertible debenture

whose approximately 164,177,000 underlying shares are convertible at the holders’ option at conversion price of 90% of the

average of the two lowest market prices over the last 10 days and 18,506,429 warrants outstanding which were not included in the

calculation of diluted EPS as their effect would be anti-dilutive.

For the three months ended

June 30, 2021, the Company had 10,000,000 warrants outstanding which were not included in the calculation of diluted EPS as their

effect would be anti-dilutive.

Impairment of Long-lived Assets and Long-lived

The Company will periodically

evaluate the carrying value of long-lived assets to be held and used when events and circumstances warrant such a review and at least annually.

The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately

identifiable and is less than its carrying value.

In that event, a loss is recognized based on the amount by which the carrying value

exceeds the fair value of the long-lived asset.

Fair value is determined primarily using the anticipated cash flows discounted at a rate

commensurate with the risk involved.

Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair

values are reduced for the cost to dispose.

Recently Adopted Accounting Pronouncements

Our recently adopted accounting

pronouncements are more fully described in Note 2 to our financial statements included herein for the quarter ended June 30, 2022.

Recently Issued Accounting Standards

In August 2020, the FASB issued

ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s

Own Equity (Subtopic 815-40):

Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”),

which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity.

This ASU (1) simplifies

the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt:

Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features

in equity, separately from the host convertible debt or preferred stock;

(2) revises the scope exception from derivative accounting in

ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified

in stockholders’ equity, by removing certain criteria required for equity classification;

and (3) revises the guidance in ASC 260,

Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted

In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled

in cash or shares.

For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December

15, 2021 including interim periods within those fiscal years.

Early adoption is permitted, but no earlier than fiscal years beginning

after December 15, 2020.

For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including

interim periods within those fiscal years.

Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot

adopt the guidance in an interim reporting period.

The Company is currently evaluating the impact that ASU 2020-06 may have on its consolidated

financial statements and related disclosures.

During the period ending June

30, 2022, there were several new accounting pronouncements issued by the Financial Accounting Standards Board.

Each of these pronouncements,

as applicable, has been or will be adopted by the Company.

Management does not believe the adoption of any of these accounting pronouncements

has had or will have a material impact on the Company’s consolidated financial statements.

Quantitative and Qualitative Disclosures

about Market Risk

Not Applicable.

As a smaller reporting company, we

are not required to provide the information required by this Item.

Diluted EPS is based on the weighted average number

of shares of common stock outstanding and dilutive common stock equivalents.

Basic EPS is computed by dividing net income or loss available

to common stockholders (numerator) by the weighted average number of shares of common stock outstanding (denominator) during the period.

For the six months ended September 30, 2022, the Company had 5,000,000 Series A Convertible Preferred Stock which would be converted

at the holder’s option into approximately 751,323,000 underlying common shares, 1,500 of Series E Redeemable Convertible Preferred

shares whose approximately 5,143,000 underlying shares are convertible at the investors’ option at a fixed conversion price of

$0.35, and 170 of Series E Redeemable Convertible Preferred shares whose approximately 2,656,000 underlying shares are convertible at

the investors’ option at conversion price of 90% of the average of the two lowest market prices over the last 10 days, 750,000

shares of Series F Preferred Stock which would be converted at the holders’ option into approximately 180,333,000 underlying common

shares, approximately $18,768,000 in a convertible debenture whose approximately 259,759,000 underlying shares are convertible at the

holders’ option at conversion price of 90% of the average of the two lowest market prices over the last 10 days and 18,573,116

warrants outstanding which were not included in the calculation of diluted EPS as their effect would be anti-dilutive.

For the six months

ended September 30, 2021, the Company had Redeemable Convertible Preferred stock with approximately 9,842,000 underlying common shares,

and 10,000,000 warrants outstanding which were not included in the calculation of diluted EPS as their effect would be anti-dilutive.

of Long-lived Assets and Long-lived Assets

Company will periodically evaluate the carrying value of long-lived assets to be held and used when events and circumstances warrant

such a review and at least annually.

The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted

cash flow from such asset is separately identifiable and is less than its carrying value.

In that event, a loss is recognized based on

the amount by which the carrying value exceeds the fair value of the long-lived asset.

Fair value is determined primarily using the anticipated

cash flows discounted at a rate commensurate with the risk involved.

Losses on long-lived assets to be disposed of are determined in

a similar manner, except that fair values are reduced for the cost to dispose.

Adopted Accounting Pronouncements

recently adopted accounting pronouncements are more fully described in Note 2 to our financial statements included herein for the quarter

ended September 30, 2022.

Issued Accounting Standards

August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging

- Contracts in Entity’s Own Equity (Subtopic 815-40):

Accounting for Convertible Instruments and Contracts in an Entity’s

Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities

This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing

guidance in ASC 470-20, Debt:

Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features

and cash conversion features in equity, separately from the host convertible debt or preferred stock;

(2) revises the scope exception

from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s

own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification;

and (3) revises

the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments

by using the if-converted method.

In addition, entities must presume share settlement for purposes of calculating diluted EPS when an

instrument may be settled in cash or shares.

For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal

years beginning after December 15, 2021 including interim periods within those fiscal years.

Early adoption is permitted, but no earlier

than fiscal years beginning after December 15, 2020.

For all other entities, ASU 2020-06 is effective for fiscal years beginning after

December 15, 2023, including interim periods within those fiscal years.

Entities should adopt the guidance as of the beginning of the

fiscal year of adoption and cannot adopt the guidance in an interim reporting period.

The Company is currently evaluating the impact

that ASU 2020-06 may have on its consolidated financial statements and related disclosures.

the period ending September 30, 2022, there were several new accounting pronouncements issued by the Financial Accounting Standards Board.

Each of these pronouncements, as applicable, has been or will be adopted by the Company.

Management does not believe the adoption of

any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial statements.

Quantitative and Qualitative Disclosures about Market Risk

As a smaller reporting company, we are not required to provide the information required by this Item.

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 2. Management’s Discussion and Analysis