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1. Organization and Nature of Operations Expion360 Inc. (formerly Yozamp Products Company, LLC dba Expion360) (“the Company”) was incorporated in the state of Nevada in November 2021. Effective November 1, 2021, the Company converted to a C corporation. Prior to conversion, the Company was a limited liability company (LLC) with an indefinite life organized in the State of Oregon in June 2016. The LLC elected to be treated as a Subchapter S corporation effective January 1, 2017. Net profits and losses of the LLC and all distributions were allocated among the members in proportion to the ownership units held. The Original LLC Agreement was amended and restated on January 1, 2021 to add additional members and a non-voting class of member units. Upon conversion to a C corporation, all existing LLC members at the time of conversion were issued shares of common stock and became shareholders of the Company. (See Note 11 – Conversion to a C Corporation). The Company designs, assembles, and distributes premium lithium batteries for RV, Marine, Golf, Industrial, Residential, and Off-The-Grid needs. The Company uses lithium iron phosphate (LiFePO4) batteries. LiFePO4 batteries are considered a top choice for high energy density, dependability, longevity, and safety, providing the ability to power anything, anywhere. Beginning in March 2020, the COVID-19 pandemic and the measures imposed to contain this pandemic have disrupted and may continue to impact the Company’s business. The magnitude of the impact of the COVID-19 pandemic on the Company’s productivity, results of operations, and financial position, and its disruption to the Company’s business and battery development and timeline, will depend in part on the length and severity of these restrictions and on the Company’s ability to conduct business in the ordinary course.

2. Summary of Significant Accounting Policies Basis of Presentation The accompanying audited financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information, and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated by the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statement presentation. However, the Company believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (consisting primarily of normal recurring accruals) considered necessary for a fair presentation have been included. Unless otherwise noted, all references to shares and shareholders in the accompanying financial statements have been restated retrospectively, to reflect the equity structure of the C corporation as of the beginning of the first period presented. Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with current year presentation. These reclassifications had no effect on the reported results of operations. Going Concern, Liquidity and Capital Resources The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional funding before the Company achieves sustainable revenues and profit from operations. The Company expects to continue to incur additional losses for the foreseeable future, and the Company may need to raise additional debt or equity financing to expand its presence in the marketplace, develop new products, achieve operating efficiencies, and accomplish its long-term business plan over the next several years. There can be no assurance as to the availability or terms upon which such financing and capital might be available. As presented in the accompanying financial statements, the Company has sustained recurring losses and negative cash flows from operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern within twelve months after the date that the financial statements for the year ended December 31, 2022 are issued. However, management is working to address its cash flow challenges, including raising additional capital, alternative supply chain resources, and in-house assembly lines. Historically, the Company’s growth has been funded through a combination of sales of equity interests, third party debt, and working capital loans. The Company’s sales for 2022 increased 59% over sales for 2021, as product demand continued to rise. On April 1, 2022, the Company completed an initial public offering and listing of its shares on the Nasdaq Stock Market (IPO). Proceeds from the IPO, net of costs, totaled $14,772,487, of which approximately $2,464,000 was used to pay down principal and accrued interest on high interest-bearing debt. The remaining proceeds will be used, in part, to stock inventory to keep up with demand and to build in-house assembly lines to improve the cash-flow cycle and help reduce the four-month turnaround that the Company currently experiences from suppliers in China. In the first half of 2022, a distribution warehouse was set up in Indiana to better service customers throughout the U.S. and an assembly facility was leased in Redmond, Oregon for future expansion of the in-house assembly lines. Additionally, management has secured a secondary source for lithium iron phosphate cells used in its batteries that is based in Denmark, should supply disruption issues with China arise. Management believes that these factors will contribute to achieving operating efficiency and profitability. However, there can be no assurance that the Company will be successful in achieving its objectives, including achieving operating efficiency and profitability. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business; however, the above conditions raise substantial doubt about the Company’s ability to do so. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could vary materially from the estimates that were used. The Company’s significant accounting estimates include the carrying value of accounts receivable and inventory, the depreciable lives of fixed assets, and stock-based compensation. Future events, including the extent and the duration of the COVID-19-related economic impacts and their effects, cannot be predicted with certainty and, accordingly, the Company’s accounting estimates require the exercise of judgment. Cash and Cash Equivalents The Company considers all cash amounts which are not subject to withdrawal restrictions or penalties and all highly liquid investments purchased with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains its cash balances with high-quality financial institutions located in the United States. Accounts are secured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per institution. At times, balances may exceed federally insured limits. The Company has not experienced any losses in such accounts and management believes that the Company is not exposed to any significant credit risk with respect to its cash and cash equivalents. As of December 31, 2022, cash balances exceeded FDIC limits by $222,162. As of December 31, 2022, the Company had two accounts totaling $11,204 with SVB. As of March 13, 2023 all funds were transferred to another banking institution and no exposure currently exists. Accounts Receivable Accounts receivable are recorded at the invoiced amount, are due within a year or less, and generally do not bear any interest. The Company performs ongoing credit evaluations of its customers and generally requires no collateral. An allowance for uncollectible accounts is recorded to reduce accounts receivable to the estimated amount that will be collected. The allowance is based upon management’s review of the accounts receivable aging and specific identification of potentially uncollectible balances. Recoveries of accounts previously written off and adjustments to the allowance for uncollectible accounts are recorded as adjustments to bad debt expense. The allowance for doubtful accounts totaled $18,804 as of December 31, 2022. There was no allowance for doubtful accounts as of December 31, 2021, as management believed all outstanding amounts to be fully collectible. Customer Deposits As of December 31, 2022 and December 31, 2021, the Company had customer deposits totaling $58 and $436,648, respectively. Inventory Inventory is stated at the lower of cost (first in, first out) or net realizable value and consists of batteries and accessories, resale items, components, and related landing costs. As of December 31, 2022 and December 31, 2021, the Company had inventory that consisted of finished assemblies totaling $2,722,765 and $985,537, respectively, and raw materials (inventory components, parts, and packaging) totaling $1,807,371 and $1,066,343, respectively. The valuation of inventory includes fixed production overhead costs based on normal capacity of the assembly warehouse. The Company periodically reviews its inventory for evidence of slow-moving or obsolete inventory and provides for an allowance when considered necessary. The Company determined that no such reserve was necessary as of December 31, 2022 or December 31, 2021. The Company prepays for inventory purchases from foreign suppliers. Prepaid inventory totaled $141,611 and $1,081,225 at December 31, 2022 and December 31, 2021, respectively, and included inventory in transit where title had passed to the Company but had not yet been physically received. Vendor and Foreign Concentrations of Inventory Suppliers During the years ended December 31, 2022 and 2021, approximately 85% and 90%, respectively, of inventory purchases were made from foreign suppliers in China and Hong Kong. Any adverse change in either the economic or political conditions abroad could negatively impact the Company’s supply chain. The inability to obtain product to meet sales demand could adversely affect results of operations. However, the Company has secured a secondary source for lithium iron phosphate cells used in its batteries from a supplier in Denmark, enabling the Company to source materials outside of China in the event it becomes necessary to do so. Property and Equipment Property and equipment are stated at cost less depreciation calculated on the straight-line basis over the estimated useful lives of the related assets as follows: Schedule of estimated useful lives <table cellpadding="0" cellspacing="0" id="xdx_308_134_zeyesCta2Ejd" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Summary of Significant Accounting Policies (Details)"> <tr style="vertical-align: bottom"> <td style="border-top: black 1pt solid; width: 73%; padding-left: 10pt; text-align: justify">Vehicles and transportation equipment</td> <td style="border-top: black 1pt solid; width: 1%; text-align: justify"> </td> <td style="border-top: black 1pt solid; width: 25%; text-align: justify"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember__srt--RangeAxis__srt--MinimumMember_z8JL4yFreas7">5 - <span id="xdx_900_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember__srt--RangeAxis__srt--MaximumMember_zEDbhRClpoEb" title="Property, Plant and Equipment, Useful Life">7 years</td> <td style="border-top: black 1pt solid; width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-align: justify">Office furniture and equipment</td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MinimumMember_zxdcGLihMHHg">3 - <span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MaximumMember_zHpM0h6TVSE6" title="Property, Plant and Equipment, Useful Life">7 years</td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-align: justify">Manufacturing equipment</td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span id="xdx_903_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MinimumMember_z4gROOUSc534">3 - <span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MaximumMember_zhWz2PaOHzpg" title="Property, Plant and Equipment, Useful Life">10 years</td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-align: justify">Warehouse equipment</td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MinimumMember_zAiAlB8I49Hg">3 - <span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MaximumMember_zTHLP9GmS5gf" title="Property, Plant and Equipment, Useful Life">10 years</td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-align: justify">QA equipment</td> <td style="text-align: justify"> </td> <td style="text-align: justify">3 - <span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20211231__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember_znEhEelnV84k" title="Property, Plant and Equipment, Useful Life">10 years</td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; padding-left: 10pt; text-align: justify">Tooling and molds</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: justify"><span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember__srt--RangeAxis__srt--MinimumMember_zf1pseSy9Frd">5 - <span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20211231__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember_zidybgPumZf5">10 years</td> <td style="border-bottom: Black 1pt solid; text-align: justify"> </td></tr> </table> Leasehold improvements are amortized over the shorter of the lease term or their estimated useful lives. Betterments, renewals, and extraordinary repairs that extend the lives of the assets are capitalized; other repairs and maintenance charges are expensed as incurred. The cost and related accumulated depreciation and amortization applicable to assets retired are removed from the accounts, and the gain or loss on disposition is recognized in the Statements of Operations. Leases The Company determines if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset during the lease term, and operating lease liabilities representthe Company’s obligation to make lease payments arising from the lease. Operating leases are included in ROU assets, current operating lease liabilities, and long-term operating lease liabilities on the Company’s Balance Sheets. The Company does not have any finance leases. Lease ROU assets and lease liabilities are initially recognized based on the present value of the future minimum lease payments over the lease term at commencement date calculated using the Company’s incremental borrowing rate applicable to the lease asset, unless the implicit rate is readily determinable. ROU assets also include any lease payments made at or before lease commencement and exclude any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Leases with a term of 12 months or less are not recognized on the Company’s Balance Sheet. The Company’s leases do not contain any residual value guarantees. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company accounts for lease and non-lease components as a single lease component for all its leases. Impairment of Long-Lived Assets Long-lived assets consist primarily of property and equipment. When events or circumstances indicate the carrying value of a long-lived asset may be impaired, the Company estimates the future undiscounted cash flows to be derived from the use and eventual disposition of the asset to assess whether or not a potential impairment exists. If the carrying value exceeds the estimate of future undiscounted cash flows, the impairment is calculated as the excess of the carrying value of the asset over the estimate of its fair value. Fair value is determined primarily using the estimated cash flows discounted at a rate commensurate with the risk involved. No long-lived asset impairment was recognized during the years ended December 31, 2022 and 2021. Product Warranties The Company sells the majority of its products to customers along with conditional repair or replacement warranties. The Company’s branded DC mobile chargers are warrantied for two years from the date of sale. The company’s branded VPR 4EVER Classic and Platinum batteries and re-branded e360 and e360 Extreme Density batteries are warrantied at gradually lesser levels over a twelve-year period from date of sale. The Company determines its estimated liability for warranty claims based on the Company’s experience of the amount of claims actually made. Management estimates no liability as of December 31, 2022 and December 31, 2021 because, historically, there have been very few claims and costs for repairs or replacement parts have been nominal. It is possible that the Company’s estimate of a liability for product liability claims will change in the near term. Liability for Refunds The Company does not have a formal return policy but does accept returns under its warranty policies. Returns have historically been minimal. However, during 2020 the Company sold discontinued products and recorded a liability for refunds. As of December 31, 2020, the liability totaled $58,000. During the year ended December 31, 2021, the Company issued credits totaling $58,000, respectively. As of December 31, 2021, all allowable discontinued products had been returned and the Company had no further refund liability. No refund liability was recognized in the year ended December 31, 2022. Revenue is recorded net of this amount. Any returns of discontinued product are not added back to inventory and therefore related costs are nominal and not recorded as an asset. Revenue Recognition The Company’s revenue is generated from the sale of products consisting primarily of batteries and accessories. The Company recognizes revenue when control of goods or services is transferred to its customers in an amount that reflects the consideration it is expected to be entitled to in exchange for those goods or services. To determine revenue recognition, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the performance obligation(s) are satisfied. Revenue is recognized upon shipment or delivery to the customer, as that is when the customer obtains control of the promised goods and the Company’s performance obligation is considered satisfied. As such, accounts receivable is recorded at the time of shipment or will call, when the Company’s right to the consideration becomes unconditional and the Company determines there are no uncertainties regarding payment terms or transfer of control. Concentration of Major Customers A customer is considered a major customer when net revenue attributable to the customer exceeds 10% of total revenue for the period or outstanding receivable balances exceed 10% of total receivables. During the year ended December 31, 2022, sales to three customers totaled $2.9 million, comprising approximately 41% of total sales. These customers represented 43% of total accounts receivable as of December 31, 2022. During the year ended December 31, 2021, sales to one customer totaled $486,000, comprising 11% of total sales. This customer did not have an accounts receivable balance as of December 31, 2021, but three other customers had accounts receivable balances totaling $658,000 and representing a total of 85% of total accounts receivable as of December 31, 2021. Shipping and Handling Costs Shipping and handling fees billed to customers are classified on the Statement of Operations as “Sales, net” and totaled $23,188 and $25,688 during the years ended December 31, 2022 and 2021, respectively. Shipping and handling costs for shipping product to customers totaled $169,335 and $102,653 during the years ended December 31, 2022 and 2021, respectively, and are classified in selling, general and administrative expense in the accompanying Statements of Operations. Advertising and Marketing Costs The Company expenses advertising and marketing costs as incurred. Advertising and marketing expense totaled $239,814 and $67,394 for the years ended December 31, 2022 and 2021, respectively, and is included in selling, general and administrative expense in the accompanying Statements of Operations. Research and Development Research and development costs are expensed as incurred. Research and development costs charged to expense amounted to $270,054 and $58,044 for the years ended December 31, 2022 and 2021, respectively, and are included in selling, general and administrative expenses in the accompanying Statements of Operations. Income Taxes From January 1, 2017 to October 31, 2021, the Company was not subject to federal or state income taxes since it was a limited liability company taxed as an S corporation. The Company’s taxable income or losses were allocated to its members in accordance with their respective ownership percentages. Therefore, no provision or liability for federal income taxes was included in the accompanying financial statements for the relevant periods in 2021. Certain states impose minimum franchise taxes on entities taxed as an S corporation. Accordingly, the accompanying financial statements include provisions for state franchise tax fees. Effective November 1, 2021, the Company converted from an LLC to a C corporation and, as a result, became subject to corporate federal and state income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of exiting assets and liabilities and their respective tax basis. Deferred tax assets, including tax loss and credit carryforwards, and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. On March 27, 2020, the United States enacted the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The Cares Act is an emergency economic stimulus package that includes spending and tax breaks to strengthen the United States economy and fund a nationwide effort to curtail the effect of COVID-19. The CARES Act provides sweeping tax changes in response to the COVID-19 pandemic. Some of the more significant provisions are removal of certain limitations on utilization of net operating losses, increasing the loss carryback period for certain losses to five years, and increasing the ability to deduct interest expense, as well as amending certain provisions of the previously enacted Tax Cuts and Jobs Act. As of December 31, 2022 and 2021, the Company has not recorded any income tax provision/(benefit) resulting from the CARES Act, mainly due to the Company’s history of net operating losses. On December 27, 2020, the United States enacted the Consolidated Appropriations Act of 2021 (“CAA”). The CAA includes provisions extending certain CARES Act provisions and adds coronavirus relief, tax and health extenders. The Company will continue to evaluate the impact of the CAA and its impact on its financial statements in 2022 and beyond. Fair Value of Financial Instruments The Company accounts for its financial assets and liabilities in accordance with ASC Topic 820, Fair Value Measurement. ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value, as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are accessible at the measurement date. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data. These inputs include quoted prices for similar assets or liabilities; quoted market prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in the assessment of fair value. The Company’s financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable, short-term revolving loans, shareholder promissory notes, and long-term debt. The fair value of cash and cash equivalents, accounts receivable, accounts payable, and short-term revolving loans approximates their respective carrying values because of the short-term nature of those instruments. The fair value of the shareholder promissory notes, convertible notes, and long-term debt approximates their respective carrying values because the interest rate approximates market rates available to the Company for similar obligations with the same maturities. Segment Reporting The Company currently operates in one reportable segment. An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (“CODM”) to evaluate performance and make operating decisions. The Company has identified its CODM as the Chief Executive Officer. Basic and Diluted Net Loss Per Share The basic net loss per share is calculated by dividing the net loss by the weighted average number of shares outstanding during the period. Diluted earnings or loss per share adjusts the basic earnings or loss per share for the potentially dilutive impact of securities (e.g., options and warrants). We calculate basic and diluted net loss per share using the weighted average number of common shares outstanding during the periods presented. In periods of a net loss position, basic and diluted weighted average common shares are the same. For the diluted earnings per share calculation, we adjust the weighted average number of common shares outstanding to include dilutive stock options, warrants, unvested restricted stock units and shares associated with the conversion of any convertible notes or preferred stock, when applicable. We use the if-converted method for calculating any potential dilutive effect of convertible notes and convertible preferred stock on diluted net loss per share. The following shows the amounts used in computing net loss per share: Schedule of net loss per share <table cellpadding="0" cellspacing="0" id="xdx_308_134_zrWQ6gqJKxi1" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Summary of Significant Accounting Policies (Details 1)"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_49C_20220101__20221231_z1r7BosSa6j9" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_490_20210101__20211231_zxvvFMeavWJj" style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Years Ended December 31,</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2022</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2021</td></tr> <tr id="xdx_409_ecustom--NetLoss_zGDahUfcOWR3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Net loss</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(7,536,540</td><td style="width: 1%; text-align: left">)</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(4,720,858</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_401_ecustom--WeightedaverageNumberOfCommonSharesOutstanding_zzxXXZJfHJ82" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Weighted average common shares outstanding – basic and diluted</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,135,938</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,888,695</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--NetLossPerShareBasicAndDiluted_z46cR1iXMXG5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Basic and diluted net loss per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1.23</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1.63</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> As of the years ended December 31, 2022 and 2021, the Company has outstanding warrants and options convertible into 1,717,936 shares of common stock, respectively. The following table sets forth the number of shares excluded from the computation of diluted loss per share, as their inclusion would have been anti-dilutive. Schedule of anti-dilutive share <table cellpadding="0" cellspacing="0" id="xdx_30B_134_zNr6DvcK9ZY4" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Summary of Significant Accounting Policies (Details 2)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Years ended December 31,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2022</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2021</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left; padding-left: 5.4pt">Stock options</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_ecustom--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount1_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zToARjhdbPki" style="width: 12%; text-align: right">829,500</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zPDZLIp16ry7" style="width: 12%; text-align: right">30,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 5.4pt">Warrants</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_ecustom--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmountOne_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zPoKd9ZSYdH6" style="border-bottom: Black 1pt solid; text-align: right">888,436</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zOZV8xjYB656" style="border-bottom: Black 1pt solid; text-align: right">710,431</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_984_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231_zK3yOGTFlWT4" style="border-bottom: Black 2.5pt double; text-align: right">1,717,936</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_981_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231_zvdzQQEGM7hh" style="border-bottom: Black 2.5pt double; text-align: right">740,431</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation—Stock Compensation”, which requires compensation costs to be recognized at grant date fair value over the requisite service period of each of the awards. The Company recognizes forfeitures of awards as they occur. The fair value of stock options is determined using the Black-Scholes-Merton option pricing model. In order to calculate the fair value of the options, certain assumptions are made regarding the components of the model, including risk-free interest rate, volatility, expected dividend yield and expected life. Changes to assumptions could cause significant adjustments to the valuation. New Accounting Pronouncements In May 2021, the FASB issued ASU 2021-04, “Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (a consensus of the Emerging Issues Task Force).” ASU 2021-04 requires issuers to account for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after the modification or exchange based on the economic substance of the modification or exchange. Under the guidance, an issuer determines the accounting for the modification or exchange based on whether the transaction was done to issue equity, to issue or modify debt, or for other reasons. ASU 2021-04 is applied prospectively and is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The Company adopted this standard in the first quarter of fiscal 2022, which did not have a material impact on the Company’s financial statements or disclosures. 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. Under ASU 2020-06, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. Similarly, equity-classified convertible preferred stock instruments will be accounted for as single units of account in equity unless the conversion feature needs to be bifurcated under Topic 815. The new guidance also made amendments to the earnings per share guidance in Topic 260, Earnings Per Share, for convertible instruments, the most significant impact of which is requiring the use of the if-converted method for diluted earnings per share calculation. Further, ASU 2020-06 made revisions to Subtopic 815-40, which provides guidance on how an entity must determine whether a contract qualifies for a scope exception from derivative accounting. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. Adoption of the standard requires using either a modified retrospective or a full retrospective approach. Effective January 1, 2021, the Company early adopted ASU 2020-06 using the modified retrospective approach. Adoption of the new standard did not have a material impact on the Company’s financial statements or disclosures. In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The new guidance clarifies the interaction of accounting for the transition into and out of the equity method and the accounting for measuring certain purchased options and forward contracts to acquire investments. ASU 2020-01 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Effective January 1, 2021, the Company adopted ASU 2020-01. The adoption of this guidance did not have an impact on the Company’s financial statements or disclosures. Accounting Guidance Issued but Not Yet Adopted In September 2022, the FASB issued ASU 2022-04, “Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” which is intended to enhance the transparency surrounding the use of supplier finance programs in connection with the purchase of goods and services. Supplier finance programs may also be referred to as reverse factoring, payables finance, or structured payables arrangements. The amendments in ASU 2022-04 require a buyer that uses supplier finance programs to disclose sufficient qualitative and quantitative information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. ASU 2022-04 is effective for all entities for fiscal years beginning after December 15, 2022 on a retrospective basis, including interim periods with those fiscal years, except for the requirement to disclose roll forward information, which is effective prospectively for fiscal years beginning after December 15, 2023. The Company is currently evaluating the impact of this standard on our financial statements. In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions,” which amends the guidance in Topic 820, Fair Value Measurement, to clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. In addition, the ASU introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. ASU 2022-03 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years for public business entities. The Company is currently evaluating the impact of this standard on our financial statements. In March 2022, the FASB issued ASU 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures,” which addresses and amends areas identified by the FASB as part of its post-implementation review of the accounting standard that introduced the current expected credit losses (“CECL”) model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. For entities, such as Expion360 Inc., that have not yet adopted the CECL accounting model in ASU 2016-13, the effective date for the amendments in ASU 2022-02 is the same as the effective date in ASU 2016-13 (i.e., fiscal years beginning after December 15, 2022, including interim periods within those fiscal years). The Company is currently evaluating the impact of this standard on our financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” ASU 2021-08 requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with Topic 606, Revenue from Contracts with Customers, on the acquisition date as if the acquirer had entered into the original contract at the same date and on the same terms as the acquiree. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for public business entities. The Company is currently evaluating the impact of this standard on our financial statements. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. This ASU replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information for credit loss estimates on certain types of financial instruments, including trade receivables. In addition, new disclosures are required. The ASU, as subsequently amended, is effective for the Company for fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact of adopting this guidance.

Basis of Presentation The accompanying audited financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information, and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated by the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statement presentation. However, the Company believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (consisting primarily of normal recurring accruals) considered necessary for a fair presentation have been included. Unless otherwise noted, all references to shares and shareholders in the accompanying financial statements have been restated retrospectively, to reflect the equity structure of the C corporation as of the beginning of the first period presented.

Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with current year presentation. These reclassifications had no effect on the reported results of operations.

Going Concern, Liquidity and Capital Resources The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional funding before the Company achieves sustainable revenues and profit from operations. The Company expects to continue to incur additional losses for the foreseeable future, and the Company may need to raise additional debt or equity financing to expand its presence in the marketplace, develop new products, achieve operating efficiencies, and accomplish its long-term business plan over the next several years. There can be no assurance as to the availability or terms upon which such financing and capital might be available. As presented in the accompanying financial statements, the Company has sustained recurring losses and negative cash flows from operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern within twelve months after the date that the financial statements for the year ended December 31, 2022 are issued. However, management is working to address its cash flow challenges, including raising additional capital, alternative supply chain resources, and in-house assembly lines. Historically, the Company’s growth has been funded through a combination of sales of equity interests, third party debt, and working capital loans. The Company’s sales for 2022 increased 59% over sales for 2021, as product demand continued to rise. On April 1, 2022, the Company completed an initial public offering and listing of its shares on the Nasdaq Stock Market (IPO). Proceeds from the IPO, net of costs, totaled $14,772,487, of which approximately $2,464,000 was used to pay down principal and accrued interest on high interest-bearing debt. The remaining proceeds will be used, in part, to stock inventory to keep up with demand and to build in-house assembly lines to improve the cash-flow cycle and help reduce the four-month turnaround that the Company currently experiences from suppliers in China. In the first half of 2022, a distribution warehouse was set up in Indiana to better service customers throughout the U.S. and an assembly facility was leased in Redmond, Oregon for future expansion of the in-house assembly lines. Additionally, management has secured a secondary source for lithium iron phosphate cells used in its batteries that is based in Denmark, should supply disruption issues with China arise. Management believes that these factors will contribute to achieving operating efficiency and profitability. However, there can be no assurance that the Company will be successful in achieving its objectives, including achieving operating efficiency and profitability. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business; however, the above conditions raise substantial doubt about the Company’s ability to do so. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern. 14772487

Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could vary materially from the estimates that were used. The Company’s significant accounting estimates include the carrying value of accounts receivable and inventory, the depreciable lives of fixed assets, and stock-based compensation. Future events, including the extent and the duration of the COVID-19-related economic impacts and their effects, cannot be predicted with certainty and, accordingly, the Company’s accounting estimates require the exercise of judgment.

Cash and Cash Equivalents The Company considers all cash amounts which are not subject to withdrawal restrictions or penalties and all highly liquid investments purchased with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains its cash balances with high-quality financial institutions located in the United States. Accounts are secured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per institution. At times, balances may exceed federally insured limits. The Company has not experienced any losses in such accounts and management believes that the Company is not exposed to any significant credit risk with respect to its cash and cash equivalents. As of December 31, 2022, cash balances exceeded FDIC limits by $222,162. As of December 31, 2022, the Company had two accounts totaling $11,204 with SVB. As of March 13, 2023 all funds were transferred to another banking institution and no exposure currently exists.

222162

11204

Accounts Receivable Accounts receivable are recorded at the invoiced amount, are due within a year or less, and generally do not bear any interest. The Company performs ongoing credit evaluations of its customers and generally requires no collateral. An allowance for uncollectible accounts is recorded to reduce accounts receivable to the estimated amount that will be collected. The allowance is based upon management’s review of the accounts receivable aging and specific identification of potentially uncollectible balances. Recoveries of accounts previously written off and adjustments to the allowance for uncollectible accounts are recorded as adjustments to bad debt expense. The allowance for doubtful accounts totaled $18,804 as of December 31, 2022. There was no allowance for doubtful accounts as of December 31, 2021, as management believed all outstanding amounts to be fully collectible.

18804

Customer Deposits As of December 31, 2022 and December 31, 2021, the Company had customer deposits totaling $58 and $436,648, respectively.

436648

Inventory Inventory is stated at the lower of cost (first in, first out) or net realizable value and consists of batteries and accessories, resale items, components, and related landing costs. As of December 31, 2022 and December 31, 2021, the Company had inventory that consisted of finished assemblies totaling $2,722,765 and $985,537, respectively, and raw materials (inventory components, parts, and packaging) totaling $1,807,371 and $1,066,343, respectively. The valuation of inventory includes fixed production overhead costs based on normal capacity of the assembly warehouse. The Company periodically reviews its inventory for evidence of slow-moving or obsolete inventory and provides for an allowance when considered necessary. The Company determined that no such reserve was necessary as of December 31, 2022 or December 31, 2021. The Company prepays for inventory purchases from foreign suppliers. Prepaid inventory totaled $141,611 and $1,081,225 at December 31, 2022 and December 31, 2021, respectively, and included inventory in transit where title had passed to the Company but had not yet been physically received.

2722765

985537

1807371

1066343

141611

1081225

Vendor and Foreign Concentrations of Inventory Suppliers During the years ended December 31, 2022 and 2021, approximately 85% and 90%, respectively, of inventory purchases were made from foreign suppliers in China and Hong Kong. Any adverse change in either the economic or political conditions abroad could negatively impact the Company’s supply chain. The inability to obtain product to meet sales demand could adversely affect results of operations. However, the Company has secured a secondary source for lithium iron phosphate cells used in its batteries from a supplier in Denmark, enabling the Company to source materials outside of China in the event it becomes necessary to do so.

Property and Equipment Property and equipment are stated at cost less depreciation calculated on the straight-line basis over the estimated useful lives of the related assets as follows: Schedule of estimated useful lives <table cellpadding="0" cellspacing="0" id="xdx_308_134_zeyesCta2Ejd" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Summary of Significant Accounting Policies (Details)"> <tr style="vertical-align: bottom"> <td style="border-top: black 1pt solid; width: 73%; padding-left: 10pt; text-align: justify">Vehicles and transportation equipment</td> <td style="border-top: black 1pt solid; width: 1%; text-align: justify"> </td> <td style="border-top: black 1pt solid; width: 25%; text-align: justify"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember__srt--RangeAxis__srt--MinimumMember_z8JL4yFreas7">5 - <span id="xdx_900_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember__srt--RangeAxis__srt--MaximumMember_zEDbhRClpoEb" title="Property, Plant and Equipment, Useful Life">7 years</td> <td style="border-top: black 1pt solid; width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-align: justify">Office furniture and equipment</td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MinimumMember_zxdcGLihMHHg">3 - <span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MaximumMember_zHpM0h6TVSE6" title="Property, Plant and Equipment, Useful Life">7 years</td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-align: justify">Manufacturing equipment</td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span id="xdx_903_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MinimumMember_z4gROOUSc534">3 - <span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MaximumMember_zhWz2PaOHzpg" title="Property, Plant and Equipment, Useful Life">10 years</td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-align: justify">Warehouse equipment</td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MinimumMember_zAiAlB8I49Hg">3 - <span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MaximumMember_zTHLP9GmS5gf" title="Property, Plant and Equipment, Useful Life">10 years</td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-align: justify">QA equipment</td> <td style="text-align: justify"> </td> <td style="text-align: justify">3 - <span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20211231__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember_znEhEelnV84k" title="Property, Plant and Equipment, Useful Life">10 years</td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; padding-left: 10pt; text-align: justify">Tooling and molds</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: justify"><span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember__srt--RangeAxis__srt--MinimumMember_zf1pseSy9Frd">5 - <span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20211231__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember_zidybgPumZf5">10 years</td> <td style="border-bottom: Black 1pt solid; text-align: justify"> </td></tr> </table> Leasehold improvements are amortized over the shorter of the lease term or their estimated useful lives. Betterments, renewals, and extraordinary repairs that extend the lives of the assets are capitalized; other repairs and maintenance charges are expensed as incurred. The cost and related accumulated depreciation and amortization applicable to assets retired are removed from the accounts, and the gain or loss on disposition is recognized in the Statements of Operations.

Schedule of estimated useful lives <table cellpadding="0" cellspacing="0" id="xdx_308_134_zeyesCta2Ejd" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Summary of Significant Accounting Policies (Details)"> <tr style="vertical-align: bottom"> <td style="border-top: black 1pt solid; width: 73%; padding-left: 10pt; text-align: justify">Vehicles and transportation equipment</td> <td style="border-top: black 1pt solid; width: 1%; text-align: justify"> </td> <td style="border-top: black 1pt solid; width: 25%; text-align: justify"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember__srt--RangeAxis__srt--MinimumMember_z8JL4yFreas7">5 - <span id="xdx_900_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember__srt--RangeAxis__srt--MaximumMember_zEDbhRClpoEb" title="Property, Plant and Equipment, Useful Life">7 years</td> <td style="border-top: black 1pt solid; width: 1%; text-align: justify"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-align: justify">Office furniture and equipment</td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MinimumMember_zxdcGLihMHHg">3 - <span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MaximumMember_zHpM0h6TVSE6" title="Property, Plant and Equipment, Useful Life">7 years</td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-align: justify">Manufacturing equipment</td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span id="xdx_903_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MinimumMember_z4gROOUSc534">3 - <span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MaximumMember_zhWz2PaOHzpg" title="Property, Plant and Equipment, Useful Life">10 years</td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-align: justify">Warehouse equipment</td> <td style="text-align: justify"> </td> <td style="text-align: justify"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MinimumMember_zAiAlB8I49Hg">3 - <span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MaximumMember_zTHLP9GmS5gf" title="Property, Plant and Equipment, Useful Life">10 years</td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-align: justify">QA equipment</td> <td style="text-align: justify"> </td> <td style="text-align: justify">3 - <span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20211231__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember_znEhEelnV84k" title="Property, Plant and Equipment, Useful Life">10 years</td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; padding-left: 10pt; text-align: justify">Tooling and molds</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: justify"><span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember__srt--RangeAxis__srt--MinimumMember_zf1pseSy9Frd">5 - <span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20211231__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember_zidybgPumZf5">10 years</td> <td style="border-bottom: Black 1pt solid; text-align: justify"> </td></tr> </table>

P5Y

P7Y

P3Y

P7Y

P3Y

P10Y

P3Y

P10Y

P3Y

P10Y

P5Y

P10Y

Leases The Company determines if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset during the lease term, and operating lease liabilities representthe Company’s obligation to make lease payments arising from the lease. Operating leases are included in ROU assets, current operating lease liabilities, and long-term operating lease liabilities on the Company’s Balance Sheets. The Company does not have any finance leases. Lease ROU assets and lease liabilities are initially recognized based on the present value of the future minimum lease payments over the lease term at commencement date calculated using the Company’s incremental borrowing rate applicable to the lease asset, unless the implicit rate is readily determinable. ROU assets also include any lease payments made at or before lease commencement and exclude any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Leases with a term of 12 months or less are not recognized on the Company’s Balance Sheet. The Company’s leases do not contain any residual value guarantees. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company accounts for lease and non-lease components as a single lease component for all its leases.

Impairment of Long-Lived Assets Long-lived assets consist primarily of property and equipment. When events or circumstances indicate the carrying value of a long-lived asset may be impaired, the Company estimates the future undiscounted cash flows to be derived from the use and eventual disposition of the asset to assess whether or not a potential impairment exists. If the carrying value exceeds the estimate of future undiscounted cash flows, the impairment is calculated as the excess of the carrying value of the asset over the estimate of its fair value. Fair value is determined primarily using the estimated cash flows discounted at a rate commensurate with the risk involved. No long-lived asset impairment was recognized during the years ended December 31, 2022 and 2021.

Product Warranties The Company sells the majority of its products to customers along with conditional repair or replacement warranties. The Company’s branded DC mobile chargers are warrantied for two years from the date of sale. The company’s branded VPR 4EVER Classic and Platinum batteries and re-branded e360 and e360 Extreme Density batteries are warrantied at gradually lesser levels over a twelve-year period from date of sale. The Company determines its estimated liability for warranty claims based on the Company’s experience of the amount of claims actually made. Management estimates no liability as of December 31, 2022 and December 31, 2021 because, historically, there have been very few claims and costs for repairs or replacement parts have been nominal. It is possible that the Company’s estimate of a liability for product liability claims will change in the near term.

Liability for Refunds The Company does not have a formal return policy but does accept returns under its warranty policies. Returns have historically been minimal. However, during 2020 the Company sold discontinued products and recorded a liability for refunds. As of December 31, 2020, the liability totaled $58,000. During the year ended December 31, 2021, the Company issued credits totaling $58,000, respectively. As of December 31, 2021, all allowable discontinued products had been returned and the Company had no further refund liability. No refund liability was recognized in the year ended December 31, 2022. Revenue is recorded net of this amount. Any returns of discontinued product are not added back to inventory and therefore related costs are nominal and not recorded as an asset.

Revenue Recognition The Company’s revenue is generated from the sale of products consisting primarily of batteries and accessories. The Company recognizes revenue when control of goods or services is transferred to its customers in an amount that reflects the consideration it is expected to be entitled to in exchange for those goods or services. To determine revenue recognition, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the performance obligation(s) are satisfied. Revenue is recognized upon shipment or delivery to the customer, as that is when the customer obtains control of the promised goods and the Company’s performance obligation is considered satisfied. As such, accounts receivable is recorded at the time of shipment or will call, when the Company’s right to the consideration becomes unconditional and the Company determines there are no uncertainties regarding payment terms or transfer of control.

Concentration of Major Customers A customer is considered a major customer when net revenue attributable to the customer exceeds 10% of total revenue for the period or outstanding receivable balances exceed 10% of total receivables. During the year ended December 31, 2022, sales to three customers totaled $2.9 million, comprising approximately 41% of total sales. These customers represented 43% of total accounts receivable as of December 31, 2022. During the year ended December 31, 2021, sales to one customer totaled $486,000, comprising 11% of total sales. This customer did not have an accounts receivable balance as of December 31, 2021, but three other customers had accounts receivable balances totaling $658,000 and representing a total of 85% of total accounts receivable as of December 31, 2021.

Shipping and Handling Costs Shipping and handling fees billed to customers are classified on the Statement of Operations as “Sales, net” and totaled $23,188 and $25,688 during the years ended December 31, 2022 and 2021, respectively. Shipping and handling costs for shipping product to customers totaled $169,335 and $102,653 during the years ended December 31, 2022 and 2021, respectively, and are classified in selling, general and administrative expense in the accompanying Statements of Operations.

Advertising and Marketing Costs The Company expenses advertising and marketing costs as incurred. Advertising and marketing expense totaled $239,814 and $67,394 for the years ended December 31, 2022 and 2021, respectively, and is included in selling, general and administrative expense in the accompanying Statements of Operations.

239814

67394

Research and Development Research and development costs are expensed as incurred. Research and development costs charged to expense amounted to $270,054 and $58,044 for the years ended December 31, 2022 and 2021, respectively, and are included in selling, general and administrative expenses in the accompanying Statements of Operations.

270054

58044

Income Taxes From January 1, 2017 to October 31, 2021, the Company was not subject to federal or state income taxes since it was a limited liability company taxed as an S corporation. The Company’s taxable income or losses were allocated to its members in accordance with their respective ownership percentages. Therefore, no provision or liability for federal income taxes was included in the accompanying financial statements for the relevant periods in 2021. Certain states impose minimum franchise taxes on entities taxed as an S corporation. Accordingly, the accompanying financial statements include provisions for state franchise tax fees. Effective November 1, 2021, the Company converted from an LLC to a C corporation and, as a result, became subject to corporate federal and state income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of exiting assets and liabilities and their respective tax basis. Deferred tax assets, including tax loss and credit carryforwards, and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. On March 27, 2020, the United States enacted the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The Cares Act is an emergency economic stimulus package that includes spending and tax breaks to strengthen the United States economy and fund a nationwide effort to curtail the effect of COVID-19. The CARES Act provides sweeping tax changes in response to the COVID-19 pandemic. Some of the more significant provisions are removal of certain limitations on utilization of net operating losses, increasing the loss carryback period for certain losses to five years, and increasing the ability to deduct interest expense, as well as amending certain provisions of the previously enacted Tax Cuts and Jobs Act. As of December 31, 2022 and 2021, the Company has not recorded any income tax provision/(benefit) resulting from the CARES Act, mainly due to the Company’s history of net operating losses. On December 27, 2020, the United States enacted the Consolidated Appropriations Act of 2021 (“CAA”). The CAA includes provisions extending certain CARES Act provisions and adds coronavirus relief, tax and health extenders. The Company will continue to evaluate the impact of the CAA and its impact on its financial statements in 2022 and beyond.

Fair Value of Financial Instruments The Company accounts for its financial assets and liabilities in accordance with ASC Topic 820, Fair Value Measurement. ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value, as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are accessible at the measurement date. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data. These inputs include quoted prices for similar assets or liabilities; quoted market prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in the assessment of fair value. The Company’s financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable, short-term revolving loans, shareholder promissory notes, and long-term debt. The fair value of cash and cash equivalents, accounts receivable, accounts payable, and short-term revolving loans approximates their respective carrying values because of the short-term nature of those instruments. The fair value of the shareholder promissory notes, convertible notes, and long-term debt approximates their respective carrying values because the interest rate approximates market rates available to the Company for similar obligations with the same maturities.

Segment Reporting The Company currently operates in one reportable segment. An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (“CODM”) to evaluate performance and make operating decisions. The Company has identified its CODM as the Chief Executive Officer.

Basic and Diluted Net Loss Per Share The basic net loss per share is calculated by dividing the net loss by the weighted average number of shares outstanding during the period. Diluted earnings or loss per share adjusts the basic earnings or loss per share for the potentially dilutive impact of securities (e.g., options and warrants). We calculate basic and diluted net loss per share using the weighted average number of common shares outstanding during the periods presented. In periods of a net loss position, basic and diluted weighted average common shares are the same. For the diluted earnings per share calculation, we adjust the weighted average number of common shares outstanding to include dilutive stock options, warrants, unvested restricted stock units and shares associated with the conversion of any convertible notes or preferred stock, when applicable. We use the if-converted method for calculating any potential dilutive effect of convertible notes and convertible preferred stock on diluted net loss per share. The following shows the amounts used in computing net loss per share: Schedule of net loss per share <table cellpadding="0" cellspacing="0" id="xdx_308_134_zrWQ6gqJKxi1" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Summary of Significant Accounting Policies (Details 1)"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_49C_20220101__20221231_z1r7BosSa6j9" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_490_20210101__20211231_zxvvFMeavWJj" style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Years Ended December 31,</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2022</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2021</td></tr> <tr id="xdx_409_ecustom--NetLoss_zGDahUfcOWR3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Net loss</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(7,536,540</td><td style="width: 1%; text-align: left">)</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(4,720,858</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_401_ecustom--WeightedaverageNumberOfCommonSharesOutstanding_zzxXXZJfHJ82" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Weighted average common shares outstanding – basic and diluted</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,135,938</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,888,695</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--NetLossPerShareBasicAndDiluted_z46cR1iXMXG5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Basic and diluted net loss per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1.23</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1.63</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> As of the years ended December 31, 2022 and 2021, the Company has outstanding warrants and options convertible into 1,717,936 shares of common stock, respectively. The following table sets forth the number of shares excluded from the computation of diluted loss per share, as their inclusion would have been anti-dilutive. Schedule of anti-dilutive share <table cellpadding="0" cellspacing="0" id="xdx_30B_134_zNr6DvcK9ZY4" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Summary of Significant Accounting Policies (Details 2)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Years ended December 31,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2022</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2021</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left; padding-left: 5.4pt">Stock options</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_ecustom--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount1_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zToARjhdbPki" style="width: 12%; text-align: right">829,500</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zPDZLIp16ry7" style="width: 12%; text-align: right">30,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 5.4pt">Warrants</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_ecustom--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmountOne_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zPoKd9ZSYdH6" style="border-bottom: Black 1pt solid; text-align: right">888,436</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zOZV8xjYB656" style="border-bottom: Black 1pt solid; text-align: right">710,431</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_984_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231_zK3yOGTFlWT4" style="border-bottom: Black 2.5pt double; text-align: right">1,717,936</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_981_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231_zvdzQQEGM7hh" style="border-bottom: Black 2.5pt double; text-align: right">740,431</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Schedule of net loss per share <table cellpadding="0" cellspacing="0" id="xdx_308_134_zrWQ6gqJKxi1" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Summary of Significant Accounting Policies (Details 1)"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_49C_20220101__20221231_z1r7BosSa6j9" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_490_20210101__20211231_zxvvFMeavWJj" style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Years Ended December 31,</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2022</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2021</td></tr> <tr id="xdx_409_ecustom--NetLoss_zGDahUfcOWR3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Net loss</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(7,536,540</td><td style="width: 1%; text-align: left">)</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(4,720,858</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_401_ecustom--WeightedaverageNumberOfCommonSharesOutstanding_zzxXXZJfHJ82" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Weighted average common shares outstanding – basic and diluted</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,135,938</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,888,695</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--NetLossPerShareBasicAndDiluted_z46cR1iXMXG5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Basic and diluted net loss per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1.23</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1.63</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table>

-7536540 -4720858 6135938 2888695 -1.23 -1.63

Schedule of anti-dilutive share <table cellpadding="0" cellspacing="0" id="xdx_30B_134_zNr6DvcK9ZY4" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Summary of Significant Accounting Policies (Details 2)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Years ended December 31,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2022</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2021</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left; padding-left: 5.4pt">Stock options</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_ecustom--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount1_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zToARjhdbPki" style="width: 12%; text-align: right">829,500</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zPDZLIp16ry7" style="width: 12%; text-align: right">30,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 5.4pt">Warrants</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_ecustom--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmountOne_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zPoKd9ZSYdH6" style="border-bottom: Black 1pt solid; text-align: right">888,436</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zOZV8xjYB656" style="border-bottom: Black 1pt solid; text-align: right">710,431</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_984_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231_zK3yOGTFlWT4" style="border-bottom: Black 2.5pt double; text-align: right">1,717,936</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_981_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231_zvdzQQEGM7hh" style="border-bottom: Black 2.5pt double; text-align: right">740,431</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

829500

30000

888436

710431

1717936

740431

Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation—Stock Compensation”, which requires compensation costs to be recognized at grant date fair value over the requisite service period of each of the awards. The Company recognizes forfeitures of awards as they occur. The fair value of stock options is determined using the Black-Scholes-Merton option pricing model. In order to calculate the fair value of the options, certain assumptions are made regarding the components of the model, including risk-free interest rate, volatility, expected dividend yield and expected life. Changes to assumptions could cause significant adjustments to the valuation.

New Accounting Pronouncements In May 2021, the FASB issued ASU 2021-04, “Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (a consensus of the Emerging Issues Task Force).” ASU 2021-04 requires issuers to account for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after the modification or exchange based on the economic substance of the modification or exchange. Under the guidance, an issuer determines the accounting for the modification or exchange based on whether the transaction was done to issue equity, to issue or modify debt, or for other reasons. ASU 2021-04 is applied prospectively and is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The Company adopted this standard in the first quarter of fiscal 2022, which did not have a material impact on the Company’s financial statements or disclosures. 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. Under ASU 2020-06, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. Similarly, equity-classified convertible preferred stock instruments will be accounted for as single units of account in equity unless the conversion feature needs to be bifurcated under Topic 815. The new guidance also made amendments to the earnings per share guidance in Topic 260, Earnings Per Share, for convertible instruments, the most significant impact of which is requiring the use of the if-converted method for diluted earnings per share calculation. Further, ASU 2020-06 made revisions to Subtopic 815-40, which provides guidance on how an entity must determine whether a contract qualifies for a scope exception from derivative accounting. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. Adoption of the standard requires using either a modified retrospective or a full retrospective approach. Effective January 1, 2021, the Company early adopted ASU 2020-06 using the modified retrospective approach. Adoption of the new standard did not have a material impact on the Company’s financial statements or disclosures. In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The new guidance clarifies the interaction of accounting for the transition into and out of the equity method and the accounting for measuring certain purchased options and forward contracts to acquire investments. ASU 2020-01 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Effective January 1, 2021, the Company adopted ASU 2020-01. The adoption of this guidance did not have an impact on the Company’s financial statements or disclosures.

Accounting Guidance Issued but Not Yet Adopted In September 2022, the FASB issued ASU 2022-04, “Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” which is intended to enhance the transparency surrounding the use of supplier finance programs in connection with the purchase of goods and services. Supplier finance programs may also be referred to as reverse factoring, payables finance, or structured payables arrangements. The amendments in ASU 2022-04 require a buyer that uses supplier finance programs to disclose sufficient qualitative and quantitative information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. ASU 2022-04 is effective for all entities for fiscal years beginning after December 15, 2022 on a retrospective basis, including interim periods with those fiscal years, except for the requirement to disclose roll forward information, which is effective prospectively for fiscal years beginning after December 15, 2023. The Company is currently evaluating the impact of this standard on our financial statements. In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions,” which amends the guidance in Topic 820, Fair Value Measurement, to clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. In addition, the ASU introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. ASU 2022-03 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years for public business entities. The Company is currently evaluating the impact of this standard on our financial statements. In March 2022, the FASB issued ASU 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures,” which addresses and amends areas identified by the FASB as part of its post-implementation review of the accounting standard that introduced the current expected credit losses (“CECL”) model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. For entities, such as Expion360 Inc., that have not yet adopted the CECL accounting model in ASU 2016-13, the effective date for the amendments in ASU 2022-02 is the same as the effective date in ASU 2016-13 (i.e., fiscal years beginning after December 15, 2022, including interim periods within those fiscal years). The Company is currently evaluating the impact of this standard on our financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” ASU 2021-08 requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with Topic 606, Revenue from Contracts with Customers, on the acquisition date as if the acquirer had entered into the original contract at the same date and on the same terms as the acquiree. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for public business entities. The Company is currently evaluating the impact of this standard on our financial statements. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. This ASU replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information for credit loss estimates on certain types of financial instruments, including trade receivables. In addition, new disclosures are required. The ASU, as subsequently amended, is effective for the Company for fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact of adopting this guidance.

3. Property and Equipment, Net Schedule of property and equipment Property and equipment consist of the following: <table cellpadding="0" cellspacing="0" id="xdx_308_134_zyl9ODh44zjj" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Property and Equipment Net (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td colspan="2" style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold"> </td> <td colspan="7" style="font-weight: bold; text-align: center">Years Ended December 31,</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2022</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify">Vehicles and transportation equipment</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember_zclfbL84mvbe" style="width: 12%; text-align: right">593,097</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember_pp0p0_zG3wpTA6rw54" style="width: 12%; text-align: right">298,752</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Leasehold improvements</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zdpddnciDVFg" style="text-align: right">314,819</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_z65RUMXXIru8" style="text-align: right">59,316</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Office furniture and equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureEquipmentMember_zjrmdOX5amL4" style="text-align: right">188,131</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureEquipmentMember_z0TZg163v1Ak" style="text-align: right">105,003</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Manufacturing equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember_zJ3b1EQ3sDfa" style="text-align: right">179,274</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--PropertyPlantAndEquipmentGross_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember_pp0p0_zZSd6s2xG7Df" style="text-align: right">— </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Warehouse equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEquipmentMember_zWYP5jd0nDpe" style="text-align: right">81,164</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentGross_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEquipmentMember_pp0p0_zLQ3c69Ut6Y8" style="text-align: right">44,356</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">QA equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember_zdM4YNqCyVgj" style="text-align: right">22,142</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember_z8ksLfKvcLB4" style="text-align: right">— </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt">Tooling and Molds</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember_zVNzT45cvEV8" style="border-bottom: Black 1pt solid; text-align: right">15,992</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember_zkNU2KiDiQEf" style="border-bottom: Black 1pt solid; text-align: right">15,992</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231_zPsiNPMhdYJg" style="text-align: right">1,394,619</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231_zjGZJaS13Vzg" style="text-align: right">523,419</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Less: accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_c20221231_zSjZhBR4xesb" style="border-bottom: Black 1pt solid; text-align: right">(250,861</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_c20211231_zJKe8IIqHOge" style="border-bottom: Black 1pt solid; text-align: right">(96,190</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Property and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98A_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_c20221231_zLxkDFZBppW4" style="border-bottom: Black 2.5pt double; text-align: right">1,143,758</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_c20211231_z3ZdTatSVR7l" style="border-bottom: Black 2.5pt double; text-align: right">427,229</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Depreciation expense was $164,767 and $61,084 for the years ended December 31, 2022 and 2021, respectively.

Schedule of property and equipment Property and equipment consist of the following: <table cellpadding="0" cellspacing="0" id="xdx_308_134_zyl9ODh44zjj" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Property and Equipment Net (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td colspan="2" style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold"> </td> <td colspan="7" style="font-weight: bold; text-align: center">Years Ended December 31,</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2022</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify">Vehicles and transportation equipment</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember_zclfbL84mvbe" style="width: 12%; text-align: right">593,097</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember_pp0p0_zG3wpTA6rw54" style="width: 12%; text-align: right">298,752</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Leasehold improvements</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zdpddnciDVFg" style="text-align: right">314,819</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_z65RUMXXIru8" style="text-align: right">59,316</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Office furniture and equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureEquipmentMember_zjrmdOX5amL4" style="text-align: right">188,131</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureEquipmentMember_z0TZg163v1Ak" style="text-align: right">105,003</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Manufacturing equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember_zJ3b1EQ3sDfa" style="text-align: right">179,274</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--PropertyPlantAndEquipmentGross_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember_pp0p0_zZSd6s2xG7Df" style="text-align: right">— </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Warehouse equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEquipmentMember_zWYP5jd0nDpe" style="text-align: right">81,164</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentGross_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEquipmentMember_pp0p0_zLQ3c69Ut6Y8" style="text-align: right">44,356</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">QA equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember_zdM4YNqCyVgj" style="text-align: right">22,142</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember_z8ksLfKvcLB4" style="text-align: right">— </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt">Tooling and Molds</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember_zVNzT45cvEV8" style="border-bottom: Black 1pt solid; text-align: right">15,992</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember_zkNU2KiDiQEf" style="border-bottom: Black 1pt solid; text-align: right">15,992</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231_zPsiNPMhdYJg" style="text-align: right">1,394,619</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231_zjGZJaS13Vzg" style="text-align: right">523,419</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Less: accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_c20221231_zSjZhBR4xesb" style="border-bottom: Black 1pt solid; text-align: right">(250,861</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_c20211231_zJKe8IIqHOge" style="border-bottom: Black 1pt solid; text-align: right">(96,190</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Property and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98A_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_c20221231_zLxkDFZBppW4" style="border-bottom: Black 2.5pt double; text-align: right">1,143,758</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_c20211231_z3ZdTatSVR7l" style="border-bottom: Black 2.5pt double; text-align: right">427,229</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

593097

298752

314819

59316

188131

105003

179274

81164

44356

22142

15992

1394619

523419

250861

96190

1143758

427229

164767

61084

4. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: Schedule of accrued expenses and other current liabilities <table cellpadding="0" cellspacing="0" id="xdx_300_134_z9hlwjoLZxjj" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Accrued Expenses and Other Current Liabilities (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_491_20221231_zmbIREaO27xe" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_49F_20211231_z8ny76WBoMjj" style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Years Ended December 31,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2022</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr id="xdx_402_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_zhpqX93h8Hh1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Accrued salaries and payroll liabilities</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">169,337</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">12,449</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_ecustom--RebateLiability_iI_zhjWjvLj3lhc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Rebate liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">26,015</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">23,010</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--DeferredIncomeAndDepositSublease_iI_zXQGniVBXt" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred income and deposit (sublease)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,168</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,690</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--AccruedSalesCommissionCurrent_iI_zmtbonEZ5Olj" style="vertical-align: bottom; background-color: White"> <td>Commissions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,720</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">29,120</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--FranchiseTax_iI_zemYreCq8QXg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Franchise tax</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">400</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,300</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--InterestPayableCurrent_iI_zJTY80T7h5y" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued interest</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">222</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">26,301</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--OtherAccruedLiabilitiesCurrentAndNoncurrent_iI_zu62oANbk07c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">86,302</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">26,748</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--AccruedLiabilitiesAndOtherLiabilities_iI_zAaV9OLnW0Lb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Accrued expenses and other current liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">306,164</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">140,618</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Schedule of accrued expenses and other current liabilities <table cellpadding="0" cellspacing="0" id="xdx_300_134_z9hlwjoLZxjj" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Accrued Expenses and Other Current Liabilities (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_491_20221231_zmbIREaO27xe" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_49F_20211231_z8ny76WBoMjj" style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Years Ended December 31,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2022</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr id="xdx_402_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_zhpqX93h8Hh1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Accrued salaries and payroll liabilities</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">169,337</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">12,449</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_ecustom--RebateLiability_iI_zhjWjvLj3lhc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Rebate liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">26,015</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">23,010</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--DeferredIncomeAndDepositSublease_iI_zXQGniVBXt" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred income and deposit (sublease)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,168</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13,690</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--AccruedSalesCommissionCurrent_iI_zmtbonEZ5Olj" style="vertical-align: bottom; background-color: White"> <td>Commissions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,720</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">29,120</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--FranchiseTax_iI_zemYreCq8QXg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Franchise tax</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">400</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,300</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--InterestPayableCurrent_iI_zJTY80T7h5y" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued interest</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">222</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">26,301</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--OtherAccruedLiabilitiesCurrentAndNoncurrent_iI_zu62oANbk07c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">86,302</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">26,748</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--AccruedLiabilitiesAndOtherLiabilities_iI_zAaV9OLnW0Lb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Accrued expenses and other current liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">306,164</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">140,618</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

169337

12449

26015 23010 14168 13690

9720

29120

400 9300

222

26301

86302

26748

306164

140618

5. Liabilities for Sale of Future Revenues On December 10, 2020 and January 26, 2021, Reliant Funding, under two separate ACH Total Receipts Purchase Agreements (“Purchase Agreements”), purchased a 50% interest in the Company’s future revenues for a total aggregate purchase price of $250,000. Pursuant to the terms of the Purchase Agreements, the purchased percentage continued to be owned by Reliant Funding, until the Company paid the full purchased amount of $349,750. Repayment of the purchased amount was achieved through 252 daily bank account withdrawals of $1,388 through December 15, 2021 and $694 thereafter through January 26, 2022. During the year ended December 31, 2022, the company repaid a total of $11,797, including $295 of interest. During the year ended December 31, 2021, the company repaid a total of $329,626, including $95,284 of interest. Interest was recognized at an effective annual interest rate of approximately 71%. As of December 31, 2021, the Company had a total remaining liability related to the Purchase Agreements of $11,502 and total remaining payments of $11,797 (including interest). The Purchase Agreements were secured by substantially all of the assets of the Company. As of December 31, 2022, the Company had no remaining liability related to the Purchase Agreements.

6. Short-Term Revolving Loans From January 2020 to October 2020, the Company received funds totaling $900,000 under four unsecured Working Capital Loan Agreements (“WC Loans”) from two different third-party lenders. As of December 31, 2021, a balance of $550,000 remained outstanding under the WC Loan Agreements and in accordance with the modified terms, the Company was subject to monthly extended maturity interest of one percent on the ending outstanding monthly balance which increased one percent for each month beyond the extended maturity date. The WC Loans were repaid in full in April 2022. The terms of each WC Loan are summarized below: <table cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">·</td> <td style="text-align: justify">$150,000 limit - dated January 25, 2020; monthly interest-only payments at 10% annual interest, principal payment of $70,000 paid during the year ended December 31, 2020, balance of $80,000 due 12 months from date of issue and paid in full at maturity in 2021. </td></tr> </table> <table cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">·</td> <td style="text-align: justify">$150,000 limit - dated January 28, 2020; monthly interest-only payments at 12% annual interest; principal due 12 months from date of issue. This note was modified effective January 1, 2021 to extend the maturity date to December 31, 2021 (see below) and was paid in full with a payment of $50,000 in July 2021 and $100,000 in September 2021.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">·</td> <td style="text-align: justify">$200,000 limit – dated March 22, 2020; monthly interest-only payments at 15% annual interest; principal due 12 months from date of issue. This note was modified effective January 1, 2021 to extend the maturity date to December 31, 2021. The Company paid $50,000 towards the principal balance in November 2021. The balance of $150,000 was paid in full in April 2022 (see below).</td></tr> </table> <table cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">·</td> <td style="text-align: justify">$400,000 limit – dated August 31, 2020; monthly interest-only payments at 10% annual interest; pursuant to the WC Loan, the maturity was to be determined by mutual agreement and was to be at least 30 days after a maturity date is agreed upon. The note was modified effective January 1, 2021 to establish a maturity date of December 31, 2021, and was paid in full in April 2022 (see below).</td></tr> </table> Effective January 1, 2021, as noted above, three of the working capital loan agreements, all from the same investor, were modified. The modification was to extend the maturity date on two of the notes from January 28, 2021 and March 22, 2021 to December 31, 2021, and to establish a maturity date of December 31, 2021 for the WC Loan that left the maturity date open to negotiations in the original agreement. As of December 31, 2021, a balance of $550,000 remained outstanding under the WC Loan Agreements and in accordance with the modified terms, the Company was subject to monthly extended maturity interest of one percent on the ending outstanding monthly balance which increased one percent for each month beyond the extended maturity date. The Company remained in compliance with all interest payments and paid the WC Loans in full in April 2022. All fees incurred in connection with obtaining and modifying these agreements were nominal and, given the short-term maturity of one year, were expensed as incurred. There was no accounting impact to the financial statements related to the modifications.

7. Long-Term Debt Long-term debt consisted of the following at December 31, 2022 and 2021: Schedule of long-term debt <table cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: black 1pt solid; padding-top: 5.75pt; text-align: center">December 31, 2022</td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: black 1pt solid; padding-top: 5.75pt; text-align: center">December 31, 2021</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 63%; padding-top: 5.75pt; text-align: justify">Senior secured promissory notes – various investors. Monthly payments of interest only at 10% plus deferred interest of 5% accrued monthly to be paid at maturity. A minimum of one year interest is due at maturity. Matures the earlier of (a) May 15, 2023, (b) the closing of a qualified subsequent financing or (c) the closing of a change of control. The notes are senior to all other debt and are secured by substantially all assets of the Company. The notes included detachable warrants to purchase 482,268 shares of common stock at an exercise price of $3.32 per share (see Note 12 – Stockholders’ Equity). Debt issuance costs and discount totaling $1,287,160 at date of issuance were being amortized and recognized as additional interest expense over the term of the notes using the straight-line method because it was not substantially different from the effective interest rate method. We determined the expected life of the notes to be the contractual term. Interest expense related to these notes includes amortization of debt issuance costs and discount in the amount of $1,196,843 and $117,587, respectively, for the years ended December 31, 2022 and 2021, respectively. The notes were paid in full in April 2022 </td> <td style="width: 2%; padding-top: 5.75pt"> </td> <td style="width: 1%; padding-top: 5.75pt">$</td> <td id="xdx_988_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--SeniorSecuredPromissoryNotesMember_zYx3xMOCYyb6" style="width: 13%; padding-top: 5.75pt; text-align: right">—</td> <td style="width: 1%; padding-top: 5.75pt"> </td> <td style="width: 4%; padding-top: 5.75pt"> </td> <td style="width: 4%; padding-top: 5.75pt; text-align: right">$</td> <td id="xdx_987_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--SeniorSecuredPromissoryNotesMember_zGD2ZUqapJPb" style="width: 11%; padding-top: 5.75pt; text-align: right">1,600,000 </td> <td style="width: 1%; padding-top: 5.75pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 5.75pt; text-align: justify">Note payable – bank. Payable in monthly installments of $332, including interest at 5.8% per annum, due August 2025, secured by equipment and personally guaranteed by a co-founder.</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td id="xdx_984_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__us-gaap--NotesPayableToBanksMember_zvU6a1BVSu95" style="padding-top: 5.75pt; text-align: right">9,825</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_985_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__us-gaap--NotesPayableToBanksMember_zz2Qg31uUbaa" style="padding-top: 5.75pt; text-align: right">13,135</td> <td style="padding-top: 5.75pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-top: 5.75pt; text-align: justify">Note payable – credit union. Payable in monthly installments of $508, including interest at 5.45% per annum, due July 2026, secured by a vehicle and personally guaranteed by a co-founder.</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td id="xdx_987_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableCreditUnionMember_znmtb46bodLd" style="padding-top: 5.75pt; text-align: right">19,364</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_984_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableCreditUnionMember_zjbcIG5QZno3" style="padding-top: 5.75pt; text-align: right">24,259 </td> <td style="padding-top: 5.75pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 5.75pt; text-align: justify">Note payable – SBA. Economic Injury Disaster Loan payable in monthly installments of $731, including interest at 3.75% per annum, due May 2050, and personally guaranteed by a co-founder.</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td id="xdx_982_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableSBAMember_zd8BoxCpitk2" style="padding-top: 5.75pt; text-align: right">150,114</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_98A_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableSBAMember_zj40g99Pl7C1" style="padding-top: 5.75pt; text-align: right">153,193</td> <td style="padding-top: 5.75pt"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 61%; padding-top: 5.75pt; text-align: justify">Note payable – individual. Monthly payments of interest only at 10% per annum, matured December 31, 2021 resulting in the entire principal balance recorded in current portion of long-term debt on the accompanying Balance Sheets for the year ending December 31, 2021; pursuant to the note, the past due balance is subject to 1% additional monthly interest which increases one percent for each month beyond maturity date, unsecured. The Company remained in compliance with the extended maturity interest payments and paid the note in full in April 2022 </td> <td style="width: 2%; padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td id="xdx_984_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableIndividualMember_zGyosTYw3wae" style="width: 13%; padding-top: 5.75pt; text-align: right">—</td> <td style="width: 0%; padding-top: 5.75pt"> </td> <td style="width: 4%; padding-top: 5.75pt"> </td> <td style="width: 4%; padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_980_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableIndividualMember_z3G2orNS6tW8" style="width: 11%; padding-top: 5.75pt; text-align: right">100,000 </td> <td style="padding-top: 5.75pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 5.75pt; text-align: justify">Note payable – finance company. Payable in monthly installments of $994, including interest at 8.5% per annum, due July 2026, secured by a vehicle and personally guaranteed by a shareholder. The Note was paid in full September 2022.</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td id="xdx_985_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompanyMember_z1YywxSKXYOj" style="padding-top: 5.75pt; text-align: right">—</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_982_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompanyMember_zSpnkxWf2fOk" style="padding-top: 5.75pt; text-align: right">45,832</td> <td style="padding-top: 5.75pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-top: 5.75pt; text-align: justify">Note payable – finance company. Payable in monthly installments of $2,204, including interest at 11.21% per annum, due August 2026, secured by a vehicle and personally guaranteed by a co-founder. The note was paid in full January 2023.</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td id="xdx_98D_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompany1Member_zbRfObC7xhgi" style="padding-top: 5.75pt; text-align: right">79,963</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_98A_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompany1Member_zjFe69Eaiate" style="padding-top: 5.75pt; text-align: right">96,155</td> <td style="padding-top: 5.75pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 5.75pt; text-align: justify">Notes payable – The Company has six and two notes payable to GM Financial for vehicles at September 30, 2022 and December 31, 2021. In April 2022, the Company secured a commercial line up to $300,000 to be used to finance vehicle purchases. The agreement expires in April 2023 but prevailing GM Financial existing term notes will remain. The notes are payable in aggregate monthly installments of $4,676, including interest at rates ranging from 5.89% to 7.29% per annum, mature at various dates from October 2027 to May of 2028, and are secured by the related vehicles. Two of the notes are personally guaranteed by a co-founder.</td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td> <td id="xdx_980_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--GMFinancialMember_zTgrFrT3rKEg" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">251,209</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_981_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--GMFinancialMember_z34paL0EJGEi" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">94,890</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-top: 5.75pt; text-align: justify">Total</td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt">$</td> <td id="xdx_98B_eus-gaap--LongTermDebt_iI_c20221231_zZ3tuazFx3xg" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">510,475</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">$</td> <td id="xdx_98B_eus-gaap--LongTermDebt_iI_c20211231_zF6oJOJqka66" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">2,127,464</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 5.75pt; text-align: justify">Less unamortized debt issuance costs and discount</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td id="xdx_982_eus-gaap--DebtInstrumentUnamortizedDiscountCurrent_iI_c20221231_z3dO63NDU293" style="padding-top: 5.75pt; text-align: right">—</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_98E_eus-gaap--DebtInstrumentUnamortizedDiscountCurrent_iNI_di_c20211231_zNEffcgIez0d" style="padding-top: 5.75pt; text-align: right">(1,196,843</td> <td style="padding-top: 5.75pt">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-top: 5.75pt; text-align: justify">Less current portion</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td id="xdx_988_eus-gaap--DebtCurrent_iNI_di_c20221231_zWSemRgK6Lb5" style="padding-top: 5.75pt; text-align: right">(71,426</td> <td style="padding-top: 5.75pt">)</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td id="xdx_98F_eus-gaap--DebtCurrent_iNI_di_c20211231_zuWkMCLA18o5" style="padding-top: 5.75pt; text-align: right">(51,135</td> <td style="padding-top: 5.75pt">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 5.75pt; text-align: justify">Less note payable in default (paid April 2022)</td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td> <td id="xdx_980_ecustom--LessNotePayableInDefaultPaid_iI_c20221231_zZTzkQCrpdYc" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">—</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_981_ecustom--LessNotePayableInDefaultPaid_iI_c20211231_zUSCMNE3I5j3" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">(100,000</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-top: 5.75pt; text-align: justify">Long-term debt, net of unamortized debt discount and current portion</td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt">$</td> <td id="xdx_984_eus-gaap--LongTermDebtNoncurrent_iI_c20221231_ztvWlEmU7OD7" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">439,049</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">$</td> <td id="xdx_982_eus-gaap--LongTermDebtNoncurrent_iI_c20211231_zQsCDtF94WS2" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">779,486</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td></tr> </table> Future maturities of long-term debt are as follows: Schedule of long term debt payment <table cellpadding="0" cellspacing="0" id="xdx_30C_134_zS5zgPNCBeJ7" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Long-Term Debt (Details 1)"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td id="xdx_49D_20221231_zVHKztI62H27"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td colspan="4">Years ending December 31,</td></tr> <tr id="xdx_40D_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_zuUkStE0Btw" style="background-color: rgb(204,238,255)"> <td style="vertical-align: top; width: 52%; text-align: justify">2023</td> <td style="vertical-align: top; width: 4%; text-align: justify">$</td> <td style="vertical-align: top; width: 17%; text-align: right">71,426</td> <td style="width: 27%"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_zreanSVKUTGa" style="background-color: White"> <td style="vertical-align: top; text-align: justify">2024</td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: right">77,226</td> <td> </td></tr> <tr id="xdx_408_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_zELk68BZ2CVb" style="background-color: rgb(204,238,255)"> <td style="vertical-align: top; text-align: justify">2025</td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: right">82,237</td> <td> </td></tr> <tr id="xdx_40E_eus-gaap--LongTermDebtMaturingInYearsTwoAndThree_iI_zAqdCSwZ0Jdf" style="background-color: White"> <td style="vertical-align: top; text-align: justify">2026</td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: right">73,963</td> <td> </td></tr> <tr id="xdx_40D_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_z3nvIsw8ZUHf" style="background-color: rgb(204,238,255)"> <td style="vertical-align: top; text-align: justify">2027</td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: right">55,305</td> <td> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_zbaAMSVQt1Rh" style="background-color: White"> <td style="vertical-align: top; text-align: justify">Thereafter</td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: justify"> </td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: right">150,318</td> <td> </td></tr> <tr id="xdx_40D_eus-gaap--LongTermDebt_iI_zxCGzJGaKiH9" style="background-color: rgb(204,238,255)"> <td style="vertical-align: top; text-align: justify">Total</td> <td style="border-bottom: Black 1.5pt double; vertical-align: top; text-align: justify">$</td> <td style="border-bottom: Black 1.5pt double; vertical-align: top; text-align: right">510,475</td> <td> </td></tr> </table>

Schedule of long-term debt <table cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: black 1pt solid; padding-top: 5.75pt; text-align: center">December 31, 2022</td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: black 1pt solid; padding-top: 5.75pt; text-align: center">December 31, 2021</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 63%; padding-top: 5.75pt; text-align: justify">Senior secured promissory notes – various investors. Monthly payments of interest only at 10% plus deferred interest of 5% accrued monthly to be paid at maturity. A minimum of one year interest is due at maturity. Matures the earlier of (a) May 15, 2023, (b) the closing of a qualified subsequent financing or (c) the closing of a change of control. The notes are senior to all other debt and are secured by substantially all assets of the Company. The notes included detachable warrants to purchase 482,268 shares of common stock at an exercise price of $3.32 per share (see Note 12 – Stockholders’ Equity). Debt issuance costs and discount totaling $1,287,160 at date of issuance were being amortized and recognized as additional interest expense over the term of the notes using the straight-line method because it was not substantially different from the effective interest rate method. We determined the expected life of the notes to be the contractual term. Interest expense related to these notes includes amortization of debt issuance costs and discount in the amount of $1,196,843 and $117,587, respectively, for the years ended December 31, 2022 and 2021, respectively. The notes were paid in full in April 2022 </td> <td style="width: 2%; padding-top: 5.75pt"> </td> <td style="width: 1%; padding-top: 5.75pt">$</td> <td id="xdx_988_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--SeniorSecuredPromissoryNotesMember_zYx3xMOCYyb6" style="width: 13%; padding-top: 5.75pt; text-align: right">—</td> <td style="width: 1%; padding-top: 5.75pt"> </td> <td style="width: 4%; padding-top: 5.75pt"> </td> <td style="width: 4%; padding-top: 5.75pt; text-align: right">$</td> <td id="xdx_987_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--SeniorSecuredPromissoryNotesMember_zGD2ZUqapJPb" style="width: 11%; padding-top: 5.75pt; text-align: right">1,600,000 </td> <td style="width: 1%; padding-top: 5.75pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 5.75pt; text-align: justify">Note payable – bank. Payable in monthly installments of $332, including interest at 5.8% per annum, due August 2025, secured by equipment and personally guaranteed by a co-founder.</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td id="xdx_984_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__us-gaap--NotesPayableToBanksMember_zvU6a1BVSu95" style="padding-top: 5.75pt; text-align: right">9,825</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_985_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__us-gaap--NotesPayableToBanksMember_zz2Qg31uUbaa" style="padding-top: 5.75pt; text-align: right">13,135</td> <td style="padding-top: 5.75pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-top: 5.75pt; text-align: justify">Note payable – credit union. Payable in monthly installments of $508, including interest at 5.45% per annum, due July 2026, secured by a vehicle and personally guaranteed by a co-founder.</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td id="xdx_987_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableCreditUnionMember_znmtb46bodLd" style="padding-top: 5.75pt; text-align: right">19,364</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_984_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableCreditUnionMember_zjbcIG5QZno3" style="padding-top: 5.75pt; text-align: right">24,259 </td> <td style="padding-top: 5.75pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 5.75pt; text-align: justify">Note payable – SBA. Economic Injury Disaster Loan payable in monthly installments of $731, including interest at 3.75% per annum, due May 2050, and personally guaranteed by a co-founder.</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td id="xdx_982_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableSBAMember_zd8BoxCpitk2" style="padding-top: 5.75pt; text-align: right">150,114</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_98A_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableSBAMember_zj40g99Pl7C1" style="padding-top: 5.75pt; text-align: right">153,193</td> <td style="padding-top: 5.75pt"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 61%; padding-top: 5.75pt; text-align: justify">Note payable – individual. Monthly payments of interest only at 10% per annum, matured December 31, 2021 resulting in the entire principal balance recorded in current portion of long-term debt on the accompanying Balance Sheets for the year ending December 31, 2021; pursuant to the note, the past due balance is subject to 1% additional monthly interest which increases one percent for each month beyond maturity date, unsecured. The Company remained in compliance with the extended maturity interest payments and paid the note in full in April 2022 </td> <td style="width: 2%; padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td id="xdx_984_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableIndividualMember_zGyosTYw3wae" style="width: 13%; padding-top: 5.75pt; text-align: right">—</td> <td style="width: 0%; padding-top: 5.75pt"> </td> <td style="width: 4%; padding-top: 5.75pt"> </td> <td style="width: 4%; padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_980_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableIndividualMember_z3G2orNS6tW8" style="width: 11%; padding-top: 5.75pt; text-align: right">100,000 </td> <td style="padding-top: 5.75pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 5.75pt; text-align: justify">Note payable – finance company. Payable in monthly installments of $994, including interest at 8.5% per annum, due July 2026, secured by a vehicle and personally guaranteed by a shareholder. The Note was paid in full September 2022.</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td id="xdx_985_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompanyMember_z1YywxSKXYOj" style="padding-top: 5.75pt; text-align: right">—</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_982_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompanyMember_zSpnkxWf2fOk" style="padding-top: 5.75pt; text-align: right">45,832</td> <td style="padding-top: 5.75pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-top: 5.75pt; text-align: justify">Note payable – finance company. Payable in monthly installments of $2,204, including interest at 11.21% per annum, due August 2026, secured by a vehicle and personally guaranteed by a co-founder. The note was paid in full January 2023.</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td id="xdx_98D_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompany1Member_zbRfObC7xhgi" style="padding-top: 5.75pt; text-align: right">79,963</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_98A_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompany1Member_zjFe69Eaiate" style="padding-top: 5.75pt; text-align: right">96,155</td> <td style="padding-top: 5.75pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 5.75pt; text-align: justify">Notes payable – The Company has six and two notes payable to GM Financial for vehicles at September 30, 2022 and December 31, 2021. In April 2022, the Company secured a commercial line up to $300,000 to be used to finance vehicle purchases. The agreement expires in April 2023 but prevailing GM Financial existing term notes will remain. The notes are payable in aggregate monthly installments of $4,676, including interest at rates ranging from 5.89% to 7.29% per annum, mature at various dates from October 2027 to May of 2028, and are secured by the related vehicles. Two of the notes are personally guaranteed by a co-founder.</td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td> <td id="xdx_980_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--GMFinancialMember_zTgrFrT3rKEg" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">251,209</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_981_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--GMFinancialMember_z34paL0EJGEi" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">94,890</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-top: 5.75pt; text-align: justify">Total</td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt">$</td> <td id="xdx_98B_eus-gaap--LongTermDebt_iI_c20221231_zZ3tuazFx3xg" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">510,475</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">$</td> <td id="xdx_98B_eus-gaap--LongTermDebt_iI_c20211231_zF6oJOJqka66" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">2,127,464</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 5.75pt; text-align: justify">Less unamortized debt issuance costs and discount</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td id="xdx_982_eus-gaap--DebtInstrumentUnamortizedDiscountCurrent_iI_c20221231_z3dO63NDU293" style="padding-top: 5.75pt; text-align: right">—</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_98E_eus-gaap--DebtInstrumentUnamortizedDiscountCurrent_iNI_di_c20211231_zNEffcgIez0d" style="padding-top: 5.75pt; text-align: right">(1,196,843</td> <td style="padding-top: 5.75pt">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-top: 5.75pt; text-align: justify">Less current portion</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td id="xdx_988_eus-gaap--DebtCurrent_iNI_di_c20221231_zWSemRgK6Lb5" style="padding-top: 5.75pt; text-align: right">(71,426</td> <td style="padding-top: 5.75pt">)</td> <td style="padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td id="xdx_98F_eus-gaap--DebtCurrent_iNI_di_c20211231_zuWkMCLA18o5" style="padding-top: 5.75pt; text-align: right">(51,135</td> <td style="padding-top: 5.75pt">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 5.75pt; text-align: justify">Less note payable in default (paid April 2022)</td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td> <td id="xdx_980_ecustom--LessNotePayableInDefaultPaid_iI_c20221231_zZTzkQCrpdYc" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">—</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_981_ecustom--LessNotePayableInDefaultPaid_iI_c20211231_zUSCMNE3I5j3" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">(100,000</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-top: 5.75pt; text-align: justify">Long-term debt, net of unamortized debt discount and current portion</td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt">$</td> <td id="xdx_984_eus-gaap--LongTermDebtNoncurrent_iI_c20221231_ztvWlEmU7OD7" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">439,049</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">$</td> <td id="xdx_982_eus-gaap--LongTermDebtNoncurrent_iI_c20211231_zQsCDtF94WS2" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">779,486</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td></tr> </table>

482268

1196843

117587

1600000

5.8

9825

13135

508

5.45

19364

24259

731

3.75

150114

153193

100000

994

8.5

45832

2204

0.1121

79963

96155

4676

7.29

251209

94890

510475

2127464

1196843

71426

51135

-100000

439049

779486

Schedule of long term debt payment <table cellpadding="0" cellspacing="0" id="xdx_30C_134_zS5zgPNCBeJ7" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Long-Term Debt (Details 1)"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td id="xdx_49D_20221231_zVHKztI62H27"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td colspan="4">Years ending December 31,</td></tr> <tr id="xdx_40D_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_zuUkStE0Btw" style="background-color: rgb(204,238,255)"> <td style="vertical-align: top; width: 52%; text-align: justify">2023</td> <td style="vertical-align: top; width: 4%; text-align: justify">$</td> <td style="vertical-align: top; width: 17%; text-align: right">71,426</td> <td style="width: 27%"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_zreanSVKUTGa" style="background-color: White"> <td style="vertical-align: top; text-align: justify">2024</td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: right">77,226</td> <td> </td></tr> <tr id="xdx_408_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_zELk68BZ2CVb" style="background-color: rgb(204,238,255)"> <td style="vertical-align: top; text-align: justify">2025</td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: right">82,237</td> <td> </td></tr> <tr id="xdx_40E_eus-gaap--LongTermDebtMaturingInYearsTwoAndThree_iI_zAqdCSwZ0Jdf" style="background-color: White"> <td style="vertical-align: top; text-align: justify">2026</td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: right">73,963</td> <td> </td></tr> <tr id="xdx_40D_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_z3nvIsw8ZUHf" style="background-color: rgb(204,238,255)"> <td style="vertical-align: top; text-align: justify">2027</td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: right">55,305</td> <td> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_zbaAMSVQt1Rh" style="background-color: White"> <td style="vertical-align: top; text-align: justify">Thereafter</td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: justify"> </td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: right">150,318</td> <td> </td></tr> <tr id="xdx_40D_eus-gaap--LongTermDebt_iI_zxCGzJGaKiH9" style="background-color: rgb(204,238,255)"> <td style="vertical-align: top; text-align: justify">Total</td> <td style="border-bottom: Black 1.5pt double; vertical-align: top; text-align: justify">$</td> <td style="border-bottom: Black 1.5pt double; vertical-align: top; text-align: right">510,475</td> <td> </td></tr> </table>

71426

77226

82237

73963

55305

150318

510475

8. Shareholder Promissory Notes As of December 31, 2022 and December 31, 2021, the Company had an outstanding principal balance of $825,000 due to shareholders under unsecured Promissory Notes Agreements (“Notes”). The Notes require monthly interest-only payments at 10% per annum. The Notes mature at various dates from August 2023 to December 2024 as follows: August 2023 - $500,000; January 2024 - $125,000; and December 2024 - $200,000. On May 15, 2021, the Company modified another shareholder Note in the amount of $250,000 to be a convertible note for the same amount. The shareholder also invested additional proceeds of $24,000 for a total convertible note of $274,000. The convertible note included detachable warrants to purchase 548,000 shares of the Company’s common stock. The convertible note bore interest at a rate of 10% per annum, had an initial maturity of two years from date of issue, and was convertible at $0.50 per share. The modification resulted in a new effective annual interest rate of 9.15%. There was no accounting impact to the financial statements related to these modifications. On October 29, 2021, concurrent with the anticipated conversion from an LLC to a C corporation, the convertible note and warrants were modified under a Convertible Debenture Exercise and Waiver and Release Agreement and the shareholder agreed to convert the note and accrued interest into 236,498 shares of common stock resulting in a conversion price of $1.21 per share (see Note 9 –Convertible Notes). Interest paid to the shareholders under the Notes totaled $82,508 and $92,007 during the years ended December 31, 2022 and 2021, respectively. There was no accrued interest as of December 31, 2022 or 2021 related to these Notes.

82508

92007

9. Convertible Notes 2020 Convertible Notes – Converted January 1, 2021 Effective January 1, 2021, convertible debt holders were offered the opportunity for early conversion of their convertible notes into Class B LLC member units. Three of the four convertible note holders converted notes with a principal balance of $170,000 and accrued interest of $3,157 into 2,338 Class B member units (the equivalent of 59,515 shares of common stock) at per unit conversion prices ranging from $67 - $76 (per share prices ranging from $2.66 - $3.00). In accordance with FASB ASC 470-20, Debt with Conversion and Other Options, the fair value of the additional units issued under the induced conversion over the value of the number of units issuable under the original terms of the convertible note agreements is recognized as debt conversion expense. Accordingly, upon early conversion on January 1, 2021, the Company recognized $112,133 of debt conversion expense with a corresponding entry to equity of $285,290 consisting of the $173,157 of principal and accrued interest converted and the excess fair value of $112,133. The fourth convertible note holder opted out of the early conversion and instead, the original note with a principal balance of $100,000 was modified into a term loan effective January 1, 2021 (see Note 7 – Long Term Debt). The modification included the elimination of the conversion feature, an increase in the interest rate from the original 6% per annum to 10% per annum, to be paid monthly instead of accrued, and an earlier maturity date of December 31, 2021. The modification resulted in a new effective annual interest rate of 9.58%, and a revised one-year maturity on December 31, 2021 (see Note 6 –Short-Term Revolving Loans). There was no accounting impact to the financial statements related to this modification. The note was paid in full in April 2022. 2021 Convertible Notes/Extinguishment Loss on Debt Settlement From May to September 2021, the Company received gross proceeds of $2,929,000 from the issuance of unsecured convertible notes (the “Notes”), of which $44,000 was received from existing shareholders. Of the total proceeds, $1,820,000 was received during the three months ended September 30, 2021. Additionally, in May 2021, a shareholder converted a promissory note to a convertible note identical in terms discussed below (see Note 8 – Shareholder Promissory Notes). At the option of the Note holders and after the completion of a merger with a Special Purpose Acquisition Company (“SPAC”) or an Initial Public Offering (“IPO”), the holder could convert all or a part of the outstanding principal and accrued interest into shares of common stock of the merged or public company. The Notes included detachable warrants (“Warrants”) to purchase 3,862,000 shares of the merged or public company. The Notes bore interest at a rate of 10% per annum, had an initial maturity of two years from date of issue, and were convertible at per-share prices ranging from $0.50 to $2.50. Effective January 1, 2021, the Company early adopted ASU 2020-06, and accordingly, no beneficial conversion features were recognized. The Notes were accounted for in accordance with ASC 470-20, Debt with Conversion and Other Options (“ASC 470-20”) and ASC 815-40, Contracts in Entity’s Own Equity (“ASC 815-40”). Under ASC 815-40, to qualify for equity classification (or nonbifurcation, if embedded) the instrument (or embedded feature) must be both (1) indexed to the issuer’s stock and (2) meet the requirements of the equity classification guidance. Based upon the Company’s analysis, it was determined the Notes do contain embedded features indexed to its own stock, but do not meet the requirements for bifurcation and recognition as derivatives, and therefore do not need to be separately recognized. Accordingly, the proceeds received from the issuance of the Notes were recorded as a single liability measured at amortized cost on the consolidated Balance Sheet. The Company incurred $148,000 of debt issuance costs relating to the issuance of the Notes, which were recorded as a reduction to the Notes on the Balance Sheet. The debt issuance costs were being amortized and recognized as additional interest expense over the term of the Notes using the straight-line method because it is not substantially different from the effective interest rate. Amortization of debt discount totaled $27,271 through the effective date of the conversion from LLC to a C corporation. Since the Warrants were not exercisable until a merger with a SPAC or an IPO, there was no impact on the financial statements at date of grant. On October 29, 2021, in anticipation of conversion from LLC to a C corporation, the Notes and Warrants were modified under Convertible Debenture Exercise and Waiver and Release Agreements with the individual creditors. The Note holders agreed to settle the debt for an aggregate of 1,527,647 shares of common stock with a fair value of $5,545,359 ($3.63 per share). Since this transaction involved contemporaneous issuance of shares of common stock by the Company to the Note holders, the Company evaluated the transaction for modification and extinguishment accounting and determined that the debt was extinguished as a result of the issuance of shares that do not represent the exercise of a conversion right contained in the original terms of the Notes at issuance. The settlement of the debt resulted in a recognized loss of $2,262,658 recorded as extinguishment loss on debt settlement in November 2021, calculated as the excess of the fair value of shares issued over the carrying amount of the debt. In addition, the fair value of warrants of $407,700 issued in exchange for services related to the extinguished debt (see Note 12 – Stockholders’ Equity) and the unamortized portion of debt discount remaining at date of settlement of $120,729 were also recorded as extinguishment loss on debt settlement for an aggregate loss of $2,791,087.

10. Commitments and Contingencies Operating Leases The Company leases its warehouses and office space under long-term lease arrangements. None of its leases include characteristics specified in ASC 842, Leases, that require classification as financing leases, and accordingly, these leases are accounted for as operating leases. The Company does not recognize a right-of-use asset and lease liability for short term leases, which have terms of 12 months or less. For longer-term lease arrangements that are recognized on the Company’s Balance Sheet, the right-of-use asset and lease liability are initially measured at the commencement date based upon the present values of the lease payments due under the leases. The implicit interest rates of the Company’s lease arrangements are generally not readily determinable and as such, the Company applies an incremental borrowing rate, which is established based upon the information available at the lease commencement date, to determine the present value of lease payments due under the arrangement. Under ASC 842, the incremental borrowing rate (IBR) for leases must be (1) a rate of interest over a similar term, and (2) for an amount that is equal to the lease payments. The Company uses both the Federal Reserve Economic Data (FRED) U.S. corporate debt effective yield and the U.S. Treasury rates adjusted for credit spread as the primary data points for purposes of determining the IBR. In the first quarter of 2022, the Company entered into two new long-term, non-cancelable operating lease agreements for office and warehouse space resulting in the Company recognizing an additional lease liability totaling of $2,348,509, representing the present value of the lease payments discounted using an effective interest rate of 8.07% and 8.86%, and corresponding right-of-use assets of $2,348,509. The leases expire in December 2026 and December 2028. The second lease contains one three-year option to renew. The lease is guaranteed by a co-founder. In the first quarter of 2021, the Company entered into a long-term, non-cancelable operating lease agreement for office and warehouse space resulting in the Company recognizing an additional lease liability totaling of $1,268,089, representing the present value of the lease payments discounted using an effective interest rate of 7.47% and a corresponding right-of-use asset of $1,268,089. The lease expires in January 2028 and contains one three-year option to renew. The lease is guaranteed by a co-founder. The Company has two other leases that expire in January 2023 and February 2025. The leases generally provide for annual increases based on a fixed amount and generally require the Company to pay real estate taxes, insurance, and repairs. Both leases are guaranteed by a co-founder. The following is a summary of total lease costs for the years ending December 31, 2022 and 2021: Schedule of lease cost <table cellpadding="0" cellspacing="0" id="xdx_308_133_zX3fB250hzhj" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Commitments and Contingencies (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_490_20220101__20221231_zRDtWRW2QH0l" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_49A_20210101__20211231_zl44k8wUpsEd" style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="7" style="font-weight: bold; text-align: center">Years Ended December 31,</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2022</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2021</td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseCost_zmQTo6RBzj6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Operating lease cost</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">760,743</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">304,082</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--ShortTermLeaseCost_z2KXGOEMdG5d" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Short-term lease costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,527</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,846</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--VariableLeaseCost_zdD6N9GLYygj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Variable lease costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">— </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">— </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--SubleaseIncome_iN_di_z92E8zIzoqw4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Sublease income</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(123,386</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(75,061</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--LeaseCost_zGEze4ciKth5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">640,884</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">233,867</td><td style="text-align: left"> </td></tr> </table> The weighted-average remaining lease term was 5.49 years and 5.64 years as of December 31, 2022 and 2021, respectively. The weighted average discount rate was 8.48% and 8.02%, as of December 31, 2022 and 2021, respectively. Operating cash flows from the operating leases totaled $440,139 and $177,688 for the years ended December 31, 2022 and 2021, respectively. The total lease liability as of December 31, 2022 and 2021 was $3,220,019 and $1,311,649, respectively. The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of December 31, 2022, for years ending December 31: Schedule of future minimum lease payment <table cellpadding="0" cellspacing="0" id="xdx_30F_134_zGHc7CoNIRSk" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Commitments and Contingencies (Details 1)"> <tr style="vertical-align: top"> <td> </td> <td colspan="3" id="xdx_499_20221231_zKR809Gf9WHc" style="text-align: center"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="3" style="text-align: center">Total</td></tr> <tr id="xdx_402_eus-gaap--PurchaseObligationFutureMinimumPaymentsRemainderOfFiscalYear_iI_z1ctjPjZ7uo1" style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="width: 75%">2023</td> <td style="width: 2%; text-align: right">$</td> <td style="width: 20%; text-align: right">719,220</td> <td style="width: 3%"> </td></tr> <tr id="xdx_406_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_zu24xqSWsK7i" style="vertical-align: top; background-color: White"> <td>2024</td> <td style="text-align: right"> </td> <td style="text-align: right">727,709</td> <td> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_zn7WlNmhEmMh" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>2025</td> <td style="text-align: right"> </td> <td style="text-align: right">718,157</td> <td> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_ze7t6y0FIfsb" style="vertical-align: top; background-color: White"> <td>2026</td> <td style="text-align: right"> </td> <td style="text-align: right">732,061</td> <td> </td></tr> <tr id="xdx_405_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_zcvwntGDFkX8" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>2027</td> <td style="text-align: right"> </td> <td style="text-align: right">694,040</td> <td> </td></tr> <tr id="xdx_407_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_zeDlFAgqoT5b" style="vertical-align: top; background-color: White"> <td>Thereafter</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">471,736</td> <td style="border-bottom: Black 1pt solid"> </td></tr> <tr id="xdx_406_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_zw2OCi6FrEF3" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Total future minimum lease payments</td> <td style="text-align: right"> </td> <td style="text-align: right">4,062,923 </td> <td> </td></tr> <tr id="xdx_40B_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zcZaGW3sYpI2" style="vertical-align: top; background-color: White"> <td>Less imputed interest</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">(842,904</td> <td style="border-bottom: Black 1pt solid">)</td></tr> <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_zoRRLCDMRbGh" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Total</td> <td style="border-bottom: Black 1.5pt double; text-align: right">$</td> <td style="border-bottom: Black 1.5pt double; text-align: right">3,220,019 </td> <td style="border-bottom: Black 1.5pt double"> </td></tr> <tr style="vertical-align: top; background-color: White"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr id="xdx_403_eus-gaap--OperatingLeaseLiabilityCurrent_iI_zjMnNoXpuL2k" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Current lease liability</td> <td style="text-align: right">$</td> <td style="text-align: right">465,055</td> <td> </td></tr> <tr id="xdx_406_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zVzbnmDfgRp3" style="vertical-align: top; background-color: White"> <td>Noncurrent lease liability</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">2,754,964 </td> <td style="border-bottom: Black 1pt solid"> </td></tr> <tr id="xdx_40D_eus-gaap--OperatingLeaseLiability_iI_zKv4gfUZwLpk" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Total</td> <td style="border-bottom: Black 1.5pt double; text-align: right">$</td> <td style="border-bottom: Black 1.5pt double; text-align: right">3,220,019 </td> <td style="border-bottom: Black 1.5pt double"> </td></tr> </table> Subleases The Company subleases office and warehouse space under three of its existing operating leases with similar terms as the Company’s lease agreements. Because the Company is not relieved of its primary obligations under the original lease, the Company accounts for the subleases as a lessor. Sublease rental income is recorded based on the contractual rental payments which are not substantially different from recognition on a straight-line basis over the lease term and totaled $123,386 and $75,061 during the years ended December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, deferred income and a sublease deposit totaled $14,168 and $13,690, respectively, and is included in accrued expenses and other current liabilities on the accompanying Balance Sheets. The following are the total future minimum sublease payments as of December 31, 2022: Schedule of future minimum sublease payments <table cellpadding="0" cellspacing="0" id="xdx_305_134_zhF1WH9OjIuk" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Commitments and Contingencies (Details 2)"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td id="xdx_49C_20221231_zDQyzMww9bPa" style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="width: 79%">Years ending December 31,</td> <td style="width: 4%"> </td> <td style="width: 16%; text-align: right"> </td> <td style="width: 1%"> </td></tr> <tr id="xdx_409_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactionsWithinOneYear_iI_zf6T9vcYuKN4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>2023</td> <td>$</td> <td style="text-align: right">46,147</td> <td> </td></tr> <tr id="xdx_40F_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactionsWithinTwoYears_iI_z1tyWIw2oB23" style="vertical-align: bottom; background-color: White"> <td>2024</td> <td> </td> <td style="text-align: right">36,242</td> <td> </td></tr> <tr id="xdx_40D_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactionsWithinThreeYears_iI_zeyWDgF05una" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>2025</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">6,070</td> <td style="border-bottom: Black 1pt solid"> </td></tr> <tr id="xdx_408_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactions_iI_zPHSI71m273d" style="vertical-align: bottom; background-color: White"> <td>Total future minimum lease payments </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">88,459</td> <td style="border-bottom: Black 2.25pt double"> </td></tr> </table> Litigation The Company may be involved from time to time in litigation or claims arising in the ordinary course of its business. While the ultimate liability, if any, arising from these claims cannot be determined with certainty, the Company believes that the resolution of any such matters will not likely have a material adverse effect on the Company’s financial statements. On November 22, 2022, Expion360 Inc. (the “Company”) received notice of a complaint (the “Complaint”) filed against it in Oregon state court by Ravi Sinha. The Complaint alleges, inter alia, that Mr. Sinha is entitled to 282,284 shares of the Company’s common stock, or in the alternative, $300,000 plus interest in connection with services he previously rendered the Company as its chief executive officer. On March 21, 2023, the Company entered into a settlement agreement with Mr. Sinha and the matter has been resolved.

Schedule of lease cost <table cellpadding="0" cellspacing="0" id="xdx_308_133_zX3fB250hzhj" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Commitments and Contingencies (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_490_20220101__20221231_zRDtWRW2QH0l" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_49A_20210101__20211231_zl44k8wUpsEd" style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="7" style="font-weight: bold; text-align: center">Years Ended December 31,</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2022</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2021</td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseCost_zmQTo6RBzj6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Operating lease cost</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">760,743</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">304,082</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--ShortTermLeaseCost_z2KXGOEMdG5d" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Short-term lease costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,527</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,846</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--VariableLeaseCost_zdD6N9GLYygj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Variable lease costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">— </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">— </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--SubleaseIncome_iN_di_z92E8zIzoqw4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Sublease income</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(123,386</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(75,061</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--LeaseCost_zGEze4ciKth5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">640,884</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">233,867</td><td style="text-align: left"> </td></tr> </table>

760743

304082

3527

4846

123386

75061

640884

233867

Schedule of future minimum lease payment <table cellpadding="0" cellspacing="0" id="xdx_30F_134_zGHc7CoNIRSk" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Commitments and Contingencies (Details 1)"> <tr style="vertical-align: top"> <td> </td> <td colspan="3" id="xdx_499_20221231_zKR809Gf9WHc" style="text-align: center"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="3" style="text-align: center">Total</td></tr> <tr id="xdx_402_eus-gaap--PurchaseObligationFutureMinimumPaymentsRemainderOfFiscalYear_iI_z1ctjPjZ7uo1" style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="width: 75%">2023</td> <td style="width: 2%; text-align: right">$</td> <td style="width: 20%; text-align: right">719,220</td> <td style="width: 3%"> </td></tr> <tr id="xdx_406_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_zu24xqSWsK7i" style="vertical-align: top; background-color: White"> <td>2024</td> <td style="text-align: right"> </td> <td style="text-align: right">727,709</td> <td> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_zn7WlNmhEmMh" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>2025</td> <td style="text-align: right"> </td> <td style="text-align: right">718,157</td> <td> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_ze7t6y0FIfsb" style="vertical-align: top; background-color: White"> <td>2026</td> <td style="text-align: right"> </td> <td style="text-align: right">732,061</td> <td> </td></tr> <tr id="xdx_405_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_zcvwntGDFkX8" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>2027</td> <td style="text-align: right"> </td> <td style="text-align: right">694,040</td> <td> </td></tr> <tr id="xdx_407_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_zeDlFAgqoT5b" style="vertical-align: top; background-color: White"> <td>Thereafter</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">471,736</td> <td style="border-bottom: Black 1pt solid"> </td></tr> <tr id="xdx_406_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_zw2OCi6FrEF3" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Total future minimum lease payments</td> <td style="text-align: right"> </td> <td style="text-align: right">4,062,923 </td> <td> </td></tr> <tr id="xdx_40B_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zcZaGW3sYpI2" style="vertical-align: top; background-color: White"> <td>Less imputed interest</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">(842,904</td> <td style="border-bottom: Black 1pt solid">)</td></tr> <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_zoRRLCDMRbGh" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Total</td> <td style="border-bottom: Black 1.5pt double; text-align: right">$</td> <td style="border-bottom: Black 1.5pt double; text-align: right">3,220,019 </td> <td style="border-bottom: Black 1.5pt double"> </td></tr> <tr style="vertical-align: top; background-color: White"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr id="xdx_403_eus-gaap--OperatingLeaseLiabilityCurrent_iI_zjMnNoXpuL2k" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Current lease liability</td> <td style="text-align: right">$</td> <td style="text-align: right">465,055</td> <td> </td></tr> <tr id="xdx_406_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zVzbnmDfgRp3" style="vertical-align: top; background-color: White"> <td>Noncurrent lease liability</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">2,754,964 </td> <td style="border-bottom: Black 1pt solid"> </td></tr> <tr id="xdx_40D_eus-gaap--OperatingLeaseLiability_iI_zKv4gfUZwLpk" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Total</td> <td style="border-bottom: Black 1.5pt double; text-align: right">$</td> <td style="border-bottom: Black 1.5pt double; text-align: right">3,220,019 </td> <td style="border-bottom: Black 1.5pt double"> </td></tr> </table>

719220

727709

718157

732061

694040

471736

4062923

842904

3220019

465055

2754964

3220019

123386

75061

14168 13690

Schedule of future minimum sublease payments <table cellpadding="0" cellspacing="0" id="xdx_305_134_zhF1WH9OjIuk" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Commitments and Contingencies (Details 2)"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td id="xdx_49C_20221231_zDQyzMww9bPa" style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="width: 79%">Years ending December 31,</td> <td style="width: 4%"> </td> <td style="width: 16%; text-align: right"> </td> <td style="width: 1%"> </td></tr> <tr id="xdx_409_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactionsWithinOneYear_iI_zf6T9vcYuKN4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>2023</td> <td>$</td> <td style="text-align: right">46,147</td> <td> </td></tr> <tr id="xdx_40F_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactionsWithinTwoYears_iI_z1tyWIw2oB23" style="vertical-align: bottom; background-color: White"> <td>2024</td> <td> </td> <td style="text-align: right">36,242</td> <td> </td></tr> <tr id="xdx_40D_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactionsWithinThreeYears_iI_zeyWDgF05una" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>2025</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">6,070</td> <td style="border-bottom: Black 1pt solid"> </td></tr> <tr id="xdx_408_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactions_iI_zPHSI71m273d" style="vertical-align: bottom; background-color: White"> <td>Total future minimum lease payments </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">88,459</td> <td style="border-bottom: Black 2.25pt double"> </td></tr> </table>

46147

36242

6070

88459

11. Conversion to a C Corporation Effective November 1, 2021, the Company converted from an LLC to a C corporation under the State of Nevada statutes in anticipation of an upcoming initial public offering, and changed its name to Expion360 Inc. The membership units of the existing LLC members and all existing convertible note holders (see Note 9 - Convertible Notes) converted into an aggregate of 4,181,111 shares of common stock. Additionally, investors purchased 88,889 shares of common stock for total proceeds of $316,400, and 30,000 shares of common stock were issued in exchange for legal services. The 30,000 shares issued in exchange for legal services were valued at $108,900 at date of grant based on the per share price of $3.63 paid for shares issued at the time of the conversion to a C corporation. The Company’s issued and outstanding shares of common stock totaled 4,300,000 upon conversion to a C corporation.

12. Stockholders’ Equity The Company is authorized to issue an aggregate of 220,000,000 shares of capital stock, par value $0.001 per share, consisting of 200,000,000 shares of common stock and 20,000,000 shares of preferred stock. As of December 31, 2022 and December 31, 2021, 6,802,464 and 4,300,000 shares, respectively, of common stock were issued and outstanding. No shares of preferred stock have been issued. A holder of common stock is entitled to one vote for each share of common stock. The holders of common stock have no conversion, redemption or preemptive rights and shall be entitled to receive dividends when, as, and if declared by the board of directors. Upon dissolution, liquidation, or winding up of the Company, after payment or provision for payment of debts and other liabilities of the Company, subject to the rights, if any, of the holders of any class or series stock having a preference over the right to participate with common stock with respect to the distribution of assets of the Company upon such dissolution, liquidation, or winding up of the Company, the holders of common stock shall be entitled to receive the remaining assets of the Company available for distribution to its stockholders ratably in proportion to the number of shares of common stock held. Since no shares of preferred stock have been issued, no rights and privileges of preferred stockholders have been defined. Initial Public Offering On April 1, 2022, the Company completed an initial public offering (“IPO”). A total of 2,466,750 shares of common stock were sold at $7.00 per share in the IPO, for total gross proceeds of $17,267,250. The Company incurred IPO costs of $2,494,763 resulting in net proceeds of $14,772,487. Additionally, during the year ended December 31, 2022, the Company issued 35,714 shares of common stock at $7.00 per share to an outside third party in exchange for IPO services. The fair value of the shares of $249,998 were recorded as an increase to common stock of $36 (35,714 shares at $.001 par value) and additional paid in capital of $249,962 and a corresponding reduction to additional paid in capital of $249,998, resulting in a net decrease in additional paid in capital of $36. Issuance of Shares Prior to conversion from an LLC to a C corporation, the following membership units were issued and included in the membership units that were converted into 4,181,111 shares of common stock upon the Company’s conversion to a C corporation (see Note 11 – Conversion to a C corporation). <table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">On January 1, 2021, 8,000 membership units (equivalent to 192,234 shares) that were held in Trust were granted to three individuals.</td></tr></table> <table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">On January 1, 2021, the Company issued 2,338 Class B member units (equivalent to 59,515 shares of common stock) upon the conversion of convertible notes and accrued interest totaling $173,157 (see Note 9 - Convertible Notes).</td></tr></table> <table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">On January 1, 2021, the Company issued 262 Class B membership units (equivalent to 6,667 shares of common stock) in exchange for building signage valued at $20,000.</td></tr></table> <table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">In March 2021, the Company sold 3,185 Class B membership units (equivalent to 81,106 shares of common stock) to two new members for gross proceeds of $270,000.</td></tr></table> <table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">·</td><td style="text-align: justify">In April 2021, the company sold 2,972 Class B membership units (equivalent to 75,662 shares of common stock) to one new member for gross proceeds of $252,000.</td></tr></table> Warrants/Options On April 1, 2022, the Company issued warrants to IPO underwriters to purchase 148,005 shares of common stock at an exercise price of $9.10 per share. The warrants are exercisable 180 days after grant (September 27, 2022) and expire 5 years from date of grant (March 31, 2027). The fair value of the warrants was determined at date of issuance using the Black-Scholes option-pricing model and the following assumptions: per share price of common stock on date of grant of $7, expected dividend yield of 0%, expected volatility of 110.03%, risk-free interest rate of 2.55% and expected life based on contractual life of 5 years. The fair value of $916,238 was recorded as an increase in additional-paid-in capital and a reduction to additional paid-in capital since the warrants were issued as IPO fees to underwriters, resulting in a zero impact to additional paid-in capital. In November 2021, the Company issued 482,268 detachable warrants with secured promissory notes (see Note 7 – Long-Term Debt) for the purchase of common stock. The relative fair value of the warrants of $809,806 at the time of issuance was recorded as additional paid-in capital with a corresponding debt discount reducing the carrying value of the notes. Additionally, the Company issued 77,163 warrants to purchase shares of common stock to underwriters in connection with obtaining the notes. The fair value of the warrants of $262,354 was recorded as additional paid-in capital and reduced the carrying value of the notes. The warrants are exercisable at $3.32 per share for a period of 10 years from date of grant. The fair value of the warrants was determined at date of issuance using the Black-Scholes option-pricing model and the following assumptions: per share price of common stock on date of grant of $3.63, expected dividend yield of 0%, expected volatility of 110.8%, risk-free interest rate of 1.63% and expected life based on contractual life of 10 years. Also in November 2021, the Company issued warrants to purchase 151,000 shares of common stock in in exchange for prior services related to extinguished 2021 convertible notes and 30,000 options for the purchase of common stock in exchange for legal services. The warrants are exercisable at $2.90 per share for a period of three years from the date of grant. The options are exercisable at $3.32 per share for a period of three years from the date of grant. The options issued were not issued under the Company’s stock option plans. The fair value of the warrants of $407,700 was recorded as additional paid-in-capital and expensed to extinguishment loss on debt settlement (see Note 9 – Convertible Notes). The fair value of the options of $79,200 was recorded as additional paid-in capital with a corresponding charge to legal expense. The fair value of the warrants and options was determined at date of issuance using the Black-Scholes option-pricing model and the following assumptions: per share price of common stock on date of grant of $3.63, expected dividend yield of 0%, expected volatility of 122.7%, risk-free interest rate of 0.71% and expected life based on contractual life of three years. As of December 31, 2022 and December 31, 2021, a total of 858,436 and 710,431 warrants were issued and outstanding, respectively. As of December 31, 2022 and December 31, 2021, a total of 30,000 options, which were not issued under a specified plan, were outstanding. As of December 31, 2022, below is a summary of the various warrants/options issued and outstanding: Schedule of various warrants/options issued and outstanding <table cellpadding="0" cellspacing="0" id="xdx_306_134_zpjXu2OSB0dj" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Stockholders Equity (Details)"> <tr style="vertical-align: bottom"> <td style="width: 47%; text-align: center">Number of warrants/non-plan options</td> <td style="width: 23%; text-align: center">Exercise Price</td> <td style="width: 30%; text-align: center">Weighted Average Remaining Life (Yrs)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_985_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_zfwpDoIHXtF9" style="border-top: Black 1pt solid; white-space: nowrap; text-align: center">559,431</td> <td id="xdx_989_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_zyr2oR9dgU52" style="border-top: Black 1pt solid; white-space: nowrap; text-align: center"> $3.32 </td> <td style="border-top: Black 1pt solid; white-space: nowrap; text-align: center"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20220101__20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_zg9KyrjASIWe">8.90</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_983_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zExQ0hbqZOh5" style="white-space: nowrap; text-align: center">151,000</td> <td id="xdx_985_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_z28elCJ7994l" style="white-space: nowrap; text-align: center"> $2.90 </td> <td style="white-space: nowrap; text-align: center"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20220101__20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zadaY99B6WYg">1.86</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_987_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice3Member_zbAYHtpkB53l" style="white-space: nowrap; text-align: center">30,000</td> <td id="xdx_980_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice3Member_zvIaZ1h8hcv7" style="white-space: nowrap; text-align: center"> $3.32 </td> <td style="white-space: nowrap; text-align: center"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20220101__20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice3Member_zAL5rhjBdOp3">1.86</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_983_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice4Member_zGLs1JzSux5" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">148,005</td> <td id="xdx_986_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice4Member_zvBMWrSErvjj" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center"> $9.10 </td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center"><span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20220101__20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice4Member_zZEHNbQA7Aki">4.25</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_98F_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231_zY5DYu6afXz8" style="white-space: nowrap; text-align: center">888,436</td> <td style="text-align: center; white-space: nowrap"> </td> <td style="text-align: center; white-space: nowrap"> </td></tr> </table> Stock Option Plans As of December 31, 2022, the Company had adopted two stock-based compensation plans, the 2021 Incentive Award Plan and the 2021 Employee Stock Purchase Plan, both of which are described below and became effective upon the initial public offering. On May 2, 2022, the Company granted 829,500 options under the 2021 Incentive Award Plan. No shares have been issued to date under the 2021 Employee Stock Purchase Plan. The compensation cost that has been charged against operations was $2,114,529 for the year ended December 31, 2022. 2021 Incentive Award Plan The purpose of the Company’s 2021 Incentive Award Plan is to enhance the Company’s ability to attract, retain and motivate persons who make (or are expected to make) important contributions to the Company by providing these individuals with equity ownership opportunities. Various stock-based awards may be granted under the plan to eligible employees, consultants, and non-employee directors. The number of shares issued under the plan is subject to limits and is adjusted annually. No more than 1,000,000 shares may be issued pursuant to the exercise of incentive stock options. The aggregate share limit will be subject to an annual increase on the first day of each calendar year ending on and including January 1, 2031, by a number of shares equal to the lesser of (i) a number equal to 5% of the aggregate number of shares of the Company's common stock outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares as is determined by the Company's board or committee. As of December 31, 2022, the aggregate number of shares that can be issued under the Plan is 859,500 of which 829,500 have been granted. The number of shares granted, the exercise price, and the terms will be determined at date of grant, however, the exercise price shall not be less than 100% of the fair value on the grant date (110% for options granted to greater than 10% shareholders) and the term shall not exceed ten years. 2021 Employee Stock Purchase Plan The purpose of the Company’s 2021 Employee Stock Purchase Plan is to assist eligible employees of the Company in acquiring a stock ownership in the Company and to help such employees provide for their future security and to encourage them to remain in the employment of the Company. The plan consists of a Section 423 Component and Non-Section 423 Component. The Section 423 Component is intended to qualify as an employee stock purchase plan and also authorizes the grant of options. Options granted under the Non-Section 423 Component shall be granted pursuant to separate offerings containing sub-plans. The Company may make one or more offerings under the plan. The duration and timing of each offering period may be established or changed by the board, but in no event may an offering period exceed 27 months and in no event may the purchase period for the option exceed the duration of the offering period under which it is established. On each exercise date for an offering period, each participant shall automatically be deemed to have exercised the option to purchase the largest number of whole shares which can be purchased under the offering. Option awards are generally granted with an exercise price equal to 85% of the lesser of the fair market value of a share on (a) the applicable grant date and (b) the applicable exercise date, or such other price as designated by the administrator, provided that in no event shall the option price be less that the per share par value price. The maximum number of shares granted under the plan shall not exceed 2,500,000 shares. The fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected option term. Expected volatility was calculated based upon similar traded companies’ historical share price movements as adequate historical experience is not available to provide a reasonable estimate. Expected term is calculated based on the simplified method as adequate historical experience is not available to provide a reasonable estimate. The simplified method will continue to apply until enough historical experience is available to provide a reasonable estimate of the expected term. The risk-free interest rate is calculated based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term. The Company has historically not paid dividends and have no foreseeable plans to pay dividends. The Company has computed the fair value of all options granted during the year ended December 31, 2022 using the following assumptions: Schedule of assumptions used <table cellpadding="0" cellspacing="0" id="xdx_306_134_zk1RpYJzRAt9" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Stockholders Equity (Details1)"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 12pt; text-indent: 6pt"> </td> <td> </td> <td> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 61%; padding-left: 12pt; text-indent: 6pt">Expected volatility </td> <td style="width: 7%"> </td> <td style="width: 7%"> </td> <td style="width: 25%; text-align: right">109.48% - 113.32%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 12pt; text-indent: 6pt">Expected dividends</td> <td style="padding-bottom: 1pt"> </td> <td> </td> <td style="text-align: right">None</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; padding-left: 12pt; text-indent: 6pt">Expected term (in years)</td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right">2.5 – 5.01 </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 12pt; text-indent: 6pt">Risk free rate </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right">2.83% – 3.01%</td></tr> </table> The following table summarizes the Company’s stock option activity under the 2021 Incentive Plan: Schedule of stock option activity <table cellpadding="0" cellspacing="0" id="xdx_301_134_zzfp0ZPVzO6j" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Stockholders Equity (Details2)"> <tr style="vertical-align: bottom"> <td style="width: 51%; text-align: center">(in thousands except number of options and per options data)</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; width: 10%; text-align: center">Number of options</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center"> </td> <td style="width: 1%; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; width: 9%; text-align: center">Weighted average exercise price</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center"> </td> <td style="width: 1%; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; width: 10%; text-align: center">Weighted average remaining contractual term (in years)</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center"> </td> <td style="width: 1%; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; width: 9%; text-align: center">Aggregate intrinsic value (1)</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Outstanding at beginning of period</td> <td> </td> <td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zJAYO72S2l31" style="text-align: right" title="Outstanding at beginning of period">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">$</td> <td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zQTcUdOPhvG3" style="text-align: right" title="Weighted average exercise price outstanding at beginning of period">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td>$</td> <td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_pp0p0_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_zxMld6jCZh9c" style="text-align: right" title="Aggregate intrinsic value Outstanding at beginning">—</td> <td> </td></tr> <tr style="vertical-align: top; background-color: White"> <td>Granted</td> <td> </td> <td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zTrNZy6McZMb" style="text-align: right" title="Granted">829,500</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zHQto8BXgup6" style="text-align: right" title="Weighted average exercise price granted">3.43</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_zAlcAOVbD7eg" style="text-align: right" title="Aggregate intrinsic value granted">—</td> <td> </td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Exercised</td> <td> </td> <td id="xdx_982_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_ztSN20Ia76i" style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zBwJkFHMJ5sb" style="text-align: right" title="Weighted average exercise price exercised">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue_pp0p0_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_zr8qW9ktYPhj" style="text-align: right" title="Aggregate intrinsic value exercised">—</td> <td> </td></tr> <tr style="vertical-align: top; background-color: White"> <td>Forfeited</td> <td style="border-bottom: Black 1pt solid"> </td> <td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zoh55x7y0jse" style="border-bottom: Black 1pt solid; text-align: right" title="Exercised">—</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zRqC5AExY4T" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted average exercise price forfeited">—</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">—</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td id="xdx_98E_ecustom--AggregateIntrinsicValueForfeited_pp0p0_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_zFhE6mlaRA7g" style="border-bottom: Black 1pt solid; text-align: right" title="Aggregate intrinsic value forfeited">—</td> <td style="border-bottom: Black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Outstanding at end of period</td> <td style="border-bottom: Black 1pt solid"> </td> <td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zju6BqTzL85b" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding at end of period">829,500</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">$</td> <td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_z4Cl21GR35Za" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted average exercise price outstaning at end of period">3.43</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_903_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zX3UKdaPNM48" title="Weighted average remaining contractual term (in years)">8.26</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">$</td> <td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_pp0p0_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_zt1lLxMYkyLa" style="border-bottom: Black 1pt solid; text-align: right" title="Aggregate intrinsic value end of period">—</td> <td style="border-bottom: Black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: White"> <td>Exercisable at end of period</td> <td style="border-bottom: Black 1pt solid"> </td> <td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zZg3Cuz3ukza" style="border-bottom: Black 1pt solid; text-align: right" title="Exercisable at end of period">829,500</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">$</td> <td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice1_iI_c20221231_z3lKBCxLGzgl" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted average Price exercisable">3.43</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_90B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20220101__20221231_zi952FVivqDj" title="Weighted average remaining contractual term (in years) exercisable">8.26</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">$</td> <td id="xdx_988_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_c20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zsWZalj4hiS8" style="border-bottom: Black 1pt solid; text-align: right" title="Aggregate intrinsic value exercisable">—</td> <td style="border-bottom: Black 1pt solid"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">(1)</td><td style="text-align: justify">The aggregate intrinsic value of options outstanding and options exercisable as of December 31, 2022 is $0, as all options are out of the money.</td></tr></table> The weighted-average grant-date fair value of the options granted during the nine months ended December 31, 2022 to employees and non-employees was $1,847,193 and $267,336, respectively. All options were immediately vested and there was no unrecognized compensation expense as of December 31, 2022. Common Stock Reserved for Future Issuance The following is a summary of common stock shares reserved for future issuance as of December 31, 2022: Schedule of common stock shares reserved for future issuance <table cellpadding="0" cellspacing="0" id="xdx_30D_133_z4kENF1cfmba" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Stockholders Equity (Details 3)"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: 6pt; padding-left: 12pt"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49E_20221231_znWZEU5eey41" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__us-gaap--WarrantMember_zly4ssWCud3l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-indent: 6pt; padding-left: 12pt">Exercise of warrants </td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right">858,436</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__custom--UnrelatedToAnyPlanMember_zmxFQkzQUqvd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 6pt; padding-left: 12pt">Exercise of options unrelated to any Plan</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__custom--StockOptionsMember_zyYgm42BRNQb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 6pt; padding-left: 12pt">Exercise of stock options – 2021 Incentive Award Plan</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">829,500</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_zCBQtFy6EhV" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 6pt; padding-left: 12pt">Total shares of common stock reserved for future issuances </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,717,936</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Schedule of various warrants/options issued and outstanding <table cellpadding="0" cellspacing="0" id="xdx_306_134_zpjXu2OSB0dj" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Stockholders Equity (Details)"> <tr style="vertical-align: bottom"> <td style="width: 47%; text-align: center">Number of warrants/non-plan options</td> <td style="width: 23%; text-align: center">Exercise Price</td> <td style="width: 30%; text-align: center">Weighted Average Remaining Life (Yrs)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_985_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_zfwpDoIHXtF9" style="border-top: Black 1pt solid; white-space: nowrap; text-align: center">559,431</td> <td id="xdx_989_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_zyr2oR9dgU52" style="border-top: Black 1pt solid; white-space: nowrap; text-align: center"> $3.32 </td> <td style="border-top: Black 1pt solid; white-space: nowrap; text-align: center"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20220101__20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_zg9KyrjASIWe">8.90</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_983_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zExQ0hbqZOh5" style="white-space: nowrap; text-align: center">151,000</td> <td id="xdx_985_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_z28elCJ7994l" style="white-space: nowrap; text-align: center"> $2.90 </td> <td style="white-space: nowrap; text-align: center"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20220101__20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zadaY99B6WYg">1.86</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_987_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice3Member_zbAYHtpkB53l" style="white-space: nowrap; text-align: center">30,000</td> <td id="xdx_980_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice3Member_zvIaZ1h8hcv7" style="white-space: nowrap; text-align: center"> $3.32 </td> <td style="white-space: nowrap; text-align: center"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20220101__20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice3Member_zAL5rhjBdOp3">1.86</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_983_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice4Member_zGLs1JzSux5" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">148,005</td> <td id="xdx_986_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice4Member_zvBMWrSErvjj" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center"> $9.10 </td> <td style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center"><span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20220101__20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice4Member_zZEHNbQA7Aki">4.25</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_98F_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231_zY5DYu6afXz8" style="white-space: nowrap; text-align: center">888,436</td> <td style="text-align: center; white-space: nowrap"> </td> <td style="text-align: center; white-space: nowrap"> </td></tr> </table>

559431

3.32

P8Y10M24D

151000

2.90

P1Y10M9D

30000

3.32

P1Y10M9D

148005

9.10

P4Y3M

888436

Schedule of assumptions used <table cellpadding="0" cellspacing="0" id="xdx_306_134_zk1RpYJzRAt9" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Stockholders Equity (Details1)"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 12pt; text-indent: 6pt"> </td> <td> </td> <td> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 61%; padding-left: 12pt; text-indent: 6pt">Expected volatility </td> <td style="width: 7%"> </td> <td style="width: 7%"> </td> <td style="width: 25%; text-align: right">109.48% - 113.32%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 12pt; text-indent: 6pt">Expected dividends</td> <td style="padding-bottom: 1pt"> </td> <td> </td> <td style="text-align: right">None</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; padding-left: 12pt; text-indent: 6pt">Expected term (in years)</td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right">2.5 – 5.01 </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 12pt; text-indent: 6pt">Risk free rate </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right">2.83% – 3.01%</td></tr> </table>

1.0948

1.1332

P2Y6M

P5Y3D

0.0283

0.0301

Schedule of stock option activity <table cellpadding="0" cellspacing="0" id="xdx_301_134_zzfp0ZPVzO6j" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Stockholders Equity (Details2)"> <tr style="vertical-align: bottom"> <td style="width: 51%; text-align: center">(in thousands except number of options and per options data)</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; width: 10%; text-align: center">Number of options</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center"> </td> <td style="width: 1%; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; width: 9%; text-align: center">Weighted average exercise price</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center"> </td> <td style="width: 1%; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; width: 10%; text-align: center">Weighted average remaining contractual term (in years)</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center"> </td> <td style="width: 1%; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; width: 9%; text-align: center">Aggregate intrinsic value (1)</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Outstanding at beginning of period</td> <td> </td> <td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zJAYO72S2l31" style="text-align: right" title="Outstanding at beginning of period">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">$</td> <td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zQTcUdOPhvG3" style="text-align: right" title="Weighted average exercise price outstanding at beginning of period">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td>$</td> <td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_pp0p0_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_zxMld6jCZh9c" style="text-align: right" title="Aggregate intrinsic value Outstanding at beginning">—</td> <td> </td></tr> <tr style="vertical-align: top; background-color: White"> <td>Granted</td> <td> </td> <td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zTrNZy6McZMb" style="text-align: right" title="Granted">829,500</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zHQto8BXgup6" style="text-align: right" title="Weighted average exercise price granted">3.43</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_zAlcAOVbD7eg" style="text-align: right" title="Aggregate intrinsic value granted">—</td> <td> </td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Exercised</td> <td> </td> <td id="xdx_982_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_ztSN20Ia76i" style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zBwJkFHMJ5sb" style="text-align: right" title="Weighted average exercise price exercised">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue_pp0p0_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_zr8qW9ktYPhj" style="text-align: right" title="Aggregate intrinsic value exercised">—</td> <td> </td></tr> <tr style="vertical-align: top; background-color: White"> <td>Forfeited</td> <td style="border-bottom: Black 1pt solid"> </td> <td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zoh55x7y0jse" style="border-bottom: Black 1pt solid; text-align: right" title="Exercised">—</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zRqC5AExY4T" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted average exercise price forfeited">—</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">—</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td id="xdx_98E_ecustom--AggregateIntrinsicValueForfeited_pp0p0_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_zFhE6mlaRA7g" style="border-bottom: Black 1pt solid; text-align: right" title="Aggregate intrinsic value forfeited">—</td> <td style="border-bottom: Black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Outstanding at end of period</td> <td style="border-bottom: Black 1pt solid"> </td> <td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zju6BqTzL85b" style="border-bottom: Black 1pt solid; text-align: right" title="Outstanding at end of period">829,500</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">$</td> <td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_z4Cl21GR35Za" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted average exercise price outstaning at end of period">3.43</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_903_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zX3UKdaPNM48" title="Weighted average remaining contractual term (in years)">8.26</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">$</td> <td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_pp0p0_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_zt1lLxMYkyLa" style="border-bottom: Black 1pt solid; text-align: right" title="Aggregate intrinsic value end of period">—</td> <td style="border-bottom: Black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: White"> <td>Exercisable at end of period</td> <td style="border-bottom: Black 1pt solid"> </td> <td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zZg3Cuz3ukza" style="border-bottom: Black 1pt solid; text-align: right" title="Exercisable at end of period">829,500</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">$</td> <td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice1_iI_c20221231_z3lKBCxLGzgl" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted average Price exercisable">3.43</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_90B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20220101__20221231_zi952FVivqDj" title="Weighted average remaining contractual term (in years) exercisable">8.26</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">$</td> <td id="xdx_988_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_c20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zsWZalj4hiS8" style="border-bottom: Black 1pt solid; text-align: right" title="Aggregate intrinsic value exercisable">—</td> <td style="border-bottom: Black 1pt solid"> </td></tr> </table>

829500

3.43

829500

3.43

P8Y3M3D

829500

3.43

P8Y3M3D

1847193

267336

Schedule of common stock shares reserved for future issuance <table cellpadding="0" cellspacing="0" id="xdx_30D_133_z4kENF1cfmba" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Stockholders Equity (Details 3)"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: 6pt; padding-left: 12pt"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49E_20221231_znWZEU5eey41" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__us-gaap--WarrantMember_zly4ssWCud3l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-indent: 6pt; padding-left: 12pt">Exercise of warrants </td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right">858,436</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__custom--UnrelatedToAnyPlanMember_zmxFQkzQUqvd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 6pt; padding-left: 12pt">Exercise of options unrelated to any Plan</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__custom--StockOptionsMember_zyYgm42BRNQb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 6pt; padding-left: 12pt">Exercise of stock options – 2021 Incentive Award Plan</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">829,500</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_zCBQtFy6EhV" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 6pt; padding-left: 12pt">Total shares of common stock reserved for future issuances </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,717,936</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

858436

30000

829500

1717936

13. Income Taxes Our losses before income taxes for the year ended December 31, 2022 and for the two months ending December 31, 2021 were generated primarily from U.S. operations. We have no current or deferred provision for income taxes from continuing operations for the years ended December 31, 2022 and 2021. The significant differences between the U.S. Federal statutory rate and our effective rate for financial reporting purposes are as follows: Schedule of Effective Income Tax Rate Reconciliation <table cellpadding="0" cellspacing="0" id="xdx_308_134_zwbP73deKSi9" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Income Taxes (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_496_20220101__20221231_ztVgFHcgYj7h" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_49C_20210101__20211231_zoKi8J2nW6gc" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Years Ended December 31,</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2022</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td></tr> <tr id="xdx_40A_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxSettlementsDomestic_dp_uPure_zGJmKRRETVVl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Federal statutory tax rate</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">(21.0</td><td style="width: 1%; text-align: left">)%</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">(21.0</td><td style="width: 1%; text-align: left">)%</td></tr> <tr id="xdx_406_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxSettlementsStateAndLocal_dp_uPure_zSsouv1ej8Pk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">State taxes, net of federal tax benefit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(5.3</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1.7</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_dt_uPure_zSDcgF6oc0bf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Change in valuation allowance</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">26.4</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8.4</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--EffectiveIncomeTaxRateReconciliationBeatPercent_dp_uPure_z8hQMHG06fq6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">NQSO Comp – Other</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.0</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.5</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--EffectiveIncomeTaxRateReconciliationFdiiPercent_dp_uPure_z6JxTFJotrz" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">EQ Comp – Other</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.0</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13.4</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherReconcilingItemsPercent_dp_uPure_zFBT1vmZ4Ww3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">True-up Adjustment</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(0.1</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0.4</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_dp_uPure_zKiFl8AjglZ6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Effective tax rate</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">—</td><td style="padding-bottom: 2.5pt; text-align: left">%</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">—</td><td style="padding-bottom: 2.5pt; text-align: left">%</td></tr> </table> Schedule of Income before Income Tax, Domestic and Foreign <table cellpadding="0" cellspacing="0" id="xdx_30A_134_zb1NHB8OwHti" style="border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Income Taxes (Details 1)"> <tr style="vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td id="xdx_496_20220101__20221231_zjevSpBUivch" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" id="xdx_49D_20210101__20211231_zHdMUqaY85k" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">As of December 31,</td></tr> <tr style="vertical-align: bottom"> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2022</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2021</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Current:</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--CurrentFederalTaxExpenseBenefit_zo8Lkbra0hU8" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif"> Federal</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_zt5wGkkScfPc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 56%; text-align: left"> State Franchise Fees</td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">(8,850</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">9,300</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> </table> Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows for the year ended December 31, 2022 and two months ended December 31, 2021. Deferred income tax assets and liabilities consist of the following: Schedule of Components of Income Tax Expense <table cellpadding="0" cellspacing="0" id="xdx_30A_134_z4PMuvPF2Mrl" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Income Taxes (Details 2)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_496_20221231_z89QQUgKEAVi" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_49F_20211231_zNPhNqwwS8d1" style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of December 31,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2022</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td></tr> <tr id="xdx_40B_eus-gaap--DeferredTaxAssetsGrossAbstract_iB_zPDkTJWsp4Y8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Deferred tax assets:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--OperatingLossCarryforwards_iI_z1KojXuaItub" style="vertical-align: bottom; background-color: White"> <td style="width: 56%; text-align: left"> Net Operating Losses</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">1,719,889</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">151,797</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsEmployeeCompensation_iI_zY5o7ofxAGS7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> Stock-based compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">444,051</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">150,524</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsOther_iI_zPOwsh21rPTg" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">424,675</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">17,927</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_iI_zbpierLcBkek" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> Subtotal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,588,615</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">320,248</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--OperatingLossCarryforwardsValuationAllowance_iNI_di_zYAiOFhAOQ5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,584,010</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(297,815</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxLiabilitiesAbstract_iB_z9RCY5agWj6f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Deferred tax liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_ecustom--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsDepreciation_iI_z6gxUl9dblYg" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> Depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,605</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(22,433</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net deferred tax asset</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">— </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">— </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> For financial reporting purposes, the Company incurred losses for the year ended December 31, 2022 and December 31, 2021 and for each period since inception. Accordingly, no benefit for income taxes has been recorded due to the uncertainty of the realization of any tax assets. At December 31, 2022, the Company had approximately $6.56 million of federal and state net operating losses. A reconciliation between the amount of income tax benefit determined by applying the U.S statutory income tax rate to pre-tax loss is as follows: Summary of Operating Loss Carryforward <table cellpadding="0" cellspacing="0" id="xdx_309_134_zIUNOoP3rzEa" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Income Taxes (Details 3)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_497_20221231_zjBwkj1Wu1Yh" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_49F_20211231_zZONGVJtCiA9" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of December 31,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2022</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td></tr> <tr id="xdx_400_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwardsDomestic_iNI_di_zmJ0QSxopRXi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Income tax provision at federal statutory rate</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(1,584,531</td><td style="width: 1%; text-align: left">)</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(746,778</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwardsStateAndLocal_iNI_di_zyhZ985TWJH" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">State taxes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(399,174</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(59,202</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost_iI_zVKR14O4RXk1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Stock-based compensation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">— </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">491,727</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--DeferredTaxAssetsTaxCreditCarryforwardsOthers_iNI_di_zoHMOfr76WJa" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(8,964</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">16,438</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--DeferredTaxAssetsValuationAllowanceOne_iNI_di_zNsab0INGQ0g" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,992,669</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(297,815</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_zDtRC7mosmRf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net deferred tax asset</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">— </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">— </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Tax positions are evaluated in a two-step process. The Company first determines whether it is more likely than not that a tax position will be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The aggregate changes in the balance of gross unrecognized tax benefits, which excludes penalties and interest, for the year ended December 31, 2022 is zero. The Company is subject to taxation in the United States and Oregon. There are no ongoing examinations by taxing authorities at this time. The Company’s various tax years 2017 through 2022 remain open for examination by various taxing jurisdictions. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2022, the Company has not accrued any penalties or interest related to uncertain tax positions In anticipation of an initial public offering, the Company converted from a limited liability company to a C corporation, a taxable entity, effective November 1, 2021. Through October 31, 2021, the Company was treated as an S corporation for federal and state income tax purposes, such that the Company’s taxable income is reported by members in their respective tax returns and the Company was only subject to state franchise taxes and fees. For the year ended December 31, 2022 the Company reversed the 2021 accrual of $9,300 and accrued only $450 for state income taxes, as we do not anticipate owing more than the minimum state income taxes for 2022. Since converting to a C corporation, the Company has incurred losses and consequently recorded no provision for state or federal income taxes for the year ended December 31, 2022. The Company maintains a full valuation allowance on all deferred tax assets, as it has concluded that it is more likely than not that these assets will not be realized. As of December 31, 2022 and December 31, 2021, there were no material unrecognized tax benefits included in the accompanying balance sheets that would, if recognized, affect the effective tax rate.

Schedule of Effective Income Tax Rate Reconciliation <table cellpadding="0" cellspacing="0" id="xdx_308_134_zwbP73deKSi9" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Income Taxes (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_496_20220101__20221231_ztVgFHcgYj7h" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_49C_20210101__20211231_zoKi8J2nW6gc" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Years Ended December 31,</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2022</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td></tr> <tr id="xdx_40A_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxSettlementsDomestic_dp_uPure_zGJmKRRETVVl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Federal statutory tax rate</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">(21.0</td><td style="width: 1%; text-align: left">)%</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">(21.0</td><td style="width: 1%; text-align: left">)%</td></tr> <tr id="xdx_406_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxSettlementsStateAndLocal_dp_uPure_zSsouv1ej8Pk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">State taxes, net of federal tax benefit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(5.3</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1.7</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_dt_uPure_zSDcgF6oc0bf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Change in valuation allowance</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">26.4</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8.4</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--EffectiveIncomeTaxRateReconciliationBeatPercent_dp_uPure_z8hQMHG06fq6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">NQSO Comp – Other</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.0</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.5</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--EffectiveIncomeTaxRateReconciliationFdiiPercent_dp_uPure_z6JxTFJotrz" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">EQ Comp – Other</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.0</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">13.4</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherReconcilingItemsPercent_dp_uPure_zFBT1vmZ4Ww3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">True-up Adjustment</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(0.1</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0.4</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_dp_uPure_zKiFl8AjglZ6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Effective tax rate</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">—</td><td style="padding-bottom: 2.5pt; text-align: left">%</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">—</td><td style="padding-bottom: 2.5pt; text-align: left">%</td></tr> </table> Schedule of Income before Income Tax, Domestic and Foreign <table cellpadding="0" cellspacing="0" id="xdx_30A_134_zb1NHB8OwHti" style="border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Income Taxes (Details 1)"> <tr style="vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td id="xdx_496_20220101__20221231_zjevSpBUivch" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" id="xdx_49D_20210101__20211231_zHdMUqaY85k" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">As of December 31,</td></tr> <tr style="vertical-align: bottom"> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2022</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2021</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Current:</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--CurrentFederalTaxExpenseBenefit_zo8Lkbra0hU8" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif"> Federal</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_zt5wGkkScfPc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 56%; text-align: left"> State Franchise Fees</td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">(8,850</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">9,300</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> </table>

-0.210

-0.053

-0.017

26.4

8.4

0.000

0.005

0.000

0.134

-0.001

0.004

Schedule of Income before Income Tax, Domestic and Foreign <table cellpadding="0" cellspacing="0" id="xdx_30A_134_zb1NHB8OwHti" style="border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Income Taxes (Details 1)"> <tr style="vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td id="xdx_496_20220101__20221231_zjevSpBUivch" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" id="xdx_49D_20210101__20211231_zHdMUqaY85k" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">As of December 31,</td></tr> <tr style="vertical-align: bottom"> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2022</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2021</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Current:</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td> <td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--CurrentFederalTaxExpenseBenefit_zo8Lkbra0hU8" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif"> Federal</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">—</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_zt5wGkkScfPc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 56%; text-align: left"> State Franchise Fees</td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">(8,850</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 8%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">9,300</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> </table>

-8850

9300

Schedule of Components of Income Tax Expense <table cellpadding="0" cellspacing="0" id="xdx_30A_134_z4PMuvPF2Mrl" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Income Taxes (Details 2)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_496_20221231_z89QQUgKEAVi" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_49F_20211231_zNPhNqwwS8d1" style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of December 31,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2022</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td></tr> <tr id="xdx_40B_eus-gaap--DeferredTaxAssetsGrossAbstract_iB_zPDkTJWsp4Y8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Deferred tax assets:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--OperatingLossCarryforwards_iI_z1KojXuaItub" style="vertical-align: bottom; background-color: White"> <td style="width: 56%; text-align: left"> Net Operating Losses</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">1,719,889</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">151,797</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsEmployeeCompensation_iI_zY5o7ofxAGS7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> Stock-based compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">444,051</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">150,524</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsOther_iI_zPOwsh21rPTg" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">424,675</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">17,927</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_iI_zbpierLcBkek" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> Subtotal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,588,615</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">320,248</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--OperatingLossCarryforwardsValuationAllowance_iNI_di_zYAiOFhAOQ5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,584,010</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(297,815</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxLiabilitiesAbstract_iB_z9RCY5agWj6f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Deferred tax liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_ecustom--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsDepreciation_iI_z6gxUl9dblYg" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt"> Depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,605</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(22,433</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net deferred tax asset</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">— </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">— </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1719889

151797

444051

150524

424675

17927

2588615

320248

2584010

297815

-4605 -22433

Summary of Operating Loss Carryforward <table cellpadding="0" cellspacing="0" id="xdx_309_134_zIUNOoP3rzEa" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Income Taxes (Details 3)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_497_20221231_zjBwkj1Wu1Yh" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_49F_20211231_zZONGVJtCiA9" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of December 31,</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2022</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2021</td></tr> <tr id="xdx_400_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwardsDomestic_iNI_di_zmJ0QSxopRXi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Income tax provision at federal statutory rate</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(1,584,531</td><td style="width: 1%; text-align: left">)</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(746,778</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwardsStateAndLocal_iNI_di_zyhZ985TWJH" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">State taxes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(399,174</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(59,202</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost_iI_zVKR14O4RXk1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Stock-based compensation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">— </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">491,727</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--DeferredTaxAssetsTaxCreditCarryforwardsOthers_iNI_di_zoHMOfr76WJa" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(8,964</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">16,438</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--DeferredTaxAssetsValuationAllowanceOne_iNI_di_zNsab0INGQ0g" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,992,669</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(297,815</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_zDtRC7mosmRf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net deferred tax asset</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">— </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">— </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1584531

746778

399174

59202

491727

8964 -16438 -1992669 297815

14. 401(k) Plan The Company adopted a 401(k) Plan (“Plan”) for the benefit of its employees. Employees may contribute to the Plan within defined limits as defined by the Internal Revenue Service. Substantially all employees are eligible to participate. The Company has the option to make profit sharing contributions at its discretion. No profit-sharing contributions have been made.

15. Related Party Transactions As of December 31, 2022 and December 31, 2021, related party transactions consisted of Shareholder Promissory Notes (see Note 8 – Shareholder Promissory Notes). As of December 31, 2022 and December 31, 2021, related party transactions consisted of Accounts Payables liability to board members for 2022 board compensation in the amount of $100,000 and $0, respectively.

100000 0

16. Subsequent Events The date to which events occurring after December 31, 2022, the date of the most recent Balance Sheets, have been evaluated for possible adjustment to the financial statements or disclosures is March 27, 2023, which is the date the financial statements were issued. On January 11, 2023, the Company filed an 8-K related to a published press release announcing a new product, the AURA POWERCAP™. On January 20, 2023 the company paid off a note payable in the amount of $89,360.11 which included principal, interest and fees. On January 26, 2023, the Company made certain leadership changes. On January 30, 2023, the Company filed an 8-K related to a press release announcing these changes. On February 1, 2023, the Company filed an 8-K with the details of the leadership changes. In March 2023, the Company had 88,000 warrants exercised of which 73,000 were cashless resulting in 31,102 additional shares of common stock issued. The remaining 15,000 exercised shares were exercised for a total of $49,975 which included $175.00 in fees. On March 21, 2023, the Company entered into a settlement agreement with Ravi Sinha related to a complaint filed against the Company by Mr. Sinha in Oregon state court and the matter has been resolved.

2910896

7201244

473284

298035

4158483

4530136

102646

141611

217550

171791

7862859

12342817

1348326

1394619

378286

250861

970040

1143758

2789160

3148455

58896

63901

2848056

3212356

11680955

16698931

437236

230250

46248

299793

306164

506743

465055

625000

500000

50058

71426

1965078

1572953

311431

439049

2376474

2754964

200000

325000

4852983

5091966

0.001

20000000

0.001

200000000

6910717

6802464

6911

6802

25730833

25239654

-18909772

-13639491

6827972

11606965

11680955

16698931

1890115

1383011

5122415

5741075

1417552

980141

3752006

3770025

472563

402870

1370409

1971050

2290955

1662005

6363514

6479954

-1818392

-1259135

-4993105

-4508904

33048

100945

158

27491

34016

92067

1571848

-13312

3426

-13312

281680

-471

-394

-389

-5557

20169

275834

1557989

-1812835

-1279304

-5268939

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1380 1342 300

-1814215

-1279304

-5270281

-6067193

-0.26 -0.19 -0.77 -1.03 6910717 6802464 6878737 5913763

4300000

4300

8355140

-6102951

2256489

-696853

4300000

4300

8355140

-6799804

1559636

2466750

2466

14770021

14772487

35714

-36

2114529

-4091036

6802464

6802

25239654

-10890840

14355616

-1279304

6802464

6802

25239654

-12170144

13076312

6802464

6802

25239654

-13639491

11606965

46102 47 49740 49787 52000

251628

251680

-1977278

6900566

6901

25541022

-15616769

9931154

10151

-20

-10

-1478788

6910717

6911

25541002

-17095557

8452356

65046 65046

119525

5260 5260

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1. Organization and Nature of Operations Expion360 Inc. (formerly Yozamp Products Company, LLC dba Expion360) (“the Company”) was incorporated in the state of Nevada in November 2021. Effective November 1, 2021, the Company converted to a C corporation. Prior to conversion, the Company was a limited liability company (LLC) with an indefinite life organized in the State of Oregon in June 2016. The LLC elected to be treated as a Subchapter S corporation effective January 1, 2017. Net profits and losses of the LLC and all distributions were allocated among the members in proportion to the ownership units held. The Original LLC Agreement was amended and restated on January 1, 2021 to add additional members and a non-voting class of member units. Upon conversion to a C corporation, all existing LLC members at the time of conversion were issued shares of common stock and became stockholders of the Company. The Company designs, assembles, and distributes premium lithium batteries for RV, Marine, Golf, Industrial, Residential, and Off-The-Grid needs. The Company uses lithium iron phosphate (LiFePO4) batteries. LiFePO4 batteries are considered a top choice for high energy density, dependability, longevity, and safety, providing the ability to power anything, anywhere. Beginning in March 2020, the COVID-19 pandemic and the measures imposed to contain this pandemic disrupted and may continue to impact the Company’s business. While certain restrictions have eased recently, the magnitude of the impact of any new measures from a resurgence in the COVID-19 pandemic on the Company’s productivity, results of operations, and financial position, and its disruption to the Company’s business and battery development and timeline will depend in part on the length and severity of these restrictions and on the Company’s ability to conduct business in the ordinary course.

2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information, and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated by the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statement presentation. However, the Company believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (consisting primarily of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three- and nine-month periods ended September 30, 2023 and 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The unaudited interim financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 30, 2023. Unless otherwise noted, all references to shares and stockholders in the accompanying financial statements have been restated retrospectively, to reflect the equity structure of the C corporation as of the beginning of the first period presented. Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with current year presentation. These reclassifications had no effect on the reported results of operations. Going Concern, Liquidity and Capital Resources The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional funding before the Company achieves sustainable revenues and profit from operations. The Company expects to continue to incur additional losses for the foreseeable future, and the Company may need to raise additional debt or equity financing to expand its presence in the marketplace, develop new products, achieve operating efficiencies, and accomplish its long-term business plan over the next several years. There can be no assurance as to the availability or terms upon which such financing and capital might be available. As presented in the accompanying financial statements, the Company has sustained recurring losses and negative cash flows from operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern within twelve months after the date that the financial statements for the three and nine month periods ended September 30, 2023 are issued. However, management is working to address its cash flow challenges, including raising additional capital, managing inventory levels, identifying alternative supply chain resources, and managing operational expenses. Historically, the Company’s growth has been funded through a combination of sales of equity interests, third party debt, and working capital loans. The Company’s sales for the three months ended September 30, 2023 increased 36.7% and sales for the nine months ended September 30, 2023 decreased 10.8% compared to the same periods in 2022. For the nine months ended September 30, 2023, we received net proceeds of $49,777 from warrant exercises. On April 1, 2022, the Company completed an initial public offering and listing of its shares on the Nasdaq Stock Market (IPO). Proceeds from the IPO, net of costs, totaled $14,772,487, of which approximately $2,464,000 was used to pay down principal and accrued interest on high interest-bearing debt. The remaining proceeds have thus far and will continue to be used, in part, to stock inventory to keep up with demand and to build in-house assembly lines to improve the cash-flow cycle and help reduce the four-month turnaround that the Company currently experiences from suppliers in China. In the first half of 2022, a distribution warehouse was set up in Indiana to better service customers throughout the U.S. and an assembly facility was leased in Redmond, Oregon for future expansion of the in-house assembly lines. Additionally, management has secured a secondary source for lithium iron phosphate cells used in its batteries that is based in Denmark, should supply disruption issues with China arise. Management believes that these factors will contribute to achieving operating efficiency and profitability. However, there can be no assurance that the Company will be successful in achieving its objectives, including achieving operating efficiency and profitability. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business; however, the above conditions raise substantial doubt about the Company’s ability to do so. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could vary materially from the estimates that were used. The Company’s significant accounting estimates include the carrying value of accounts receivable and inventory, the depreciable lives of fixed assets, and stock-based compensation. Future events, including the extent and the duration of the COVID-19-related economic impacts and their effects, cannot be predicted with certainty and, accordingly, the Company’s accounting estimates require the exercise of judgment. Cash and Cash Equivalents The Company considers all cash amounts which are not subject to withdrawal restrictions or penalties and all highly liquid investments purchased with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains its cash balances with high-quality financial institutions located in the United States. Cash accounts are secured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per institution. At times, balances may exceed federally insured limits. Investment accounts are placed in funds consisting of US Treasury-related ultra-short paper. The Company has not experienced any losses in such accounts and management believes that the Company is not exposed to any significant credit risk with respect to its cash and cash equivalents. As of September 30, 2023, cash balances exceeded FDIC limits by $547,054 and investment accounts totaling $2,100,847 are invested in US Treasury-related ultra-short paper. Accounts Receivable Accounts receivable are recorded at the invoiced amount, are due within a year or less, and generally do not bear any interest. The Company performs ongoing credit evaluations of its customers and generally requires no collateral. An allowance for uncollectible accounts is recorded to reduce accounts receivable to the estimated amount that will be collected. The allowance is based upon management’s review of the accounts receivable aging and specific identification of potentially uncollectible balances. Recoveries of accounts previously written off and adjustments to the allowance for uncollectible accounts are recorded as adjustments to bad debt expense. For the three months ended September 30, 2023 and 2022, the Company wrote off $388 and $0, respectively. For the nine months ended September 30, 2023 and 2022, the Company recovered a net of ($412) and wrote off $19,604, respectively. There was no allowance for doubtful accounts as of September 30, 2023 or December 31, 2022, as management believed all outstanding amounts to be fully collectible. Customer Deposits As of September 30, 2023 and December 31, 2022, the Company had customer deposits totaling $46,248 and $58, respectively. Inventory Inventory is stated at the lower of cost (first in, first out) or net realizable value and consists of batteries and accessories, resale items, components, and related landing costs. As of September 30, 2023 and December 31, 2022, the Company had inventory that consisted of finished assemblies totaling $3,306,972 and $3,243,485, respectively, and raw materials (inventory components, parts, and packaging) totaling $851,511 and $1,286,651, respectively. The valuation of inventory includes fixed production overhead costs based on normal capacity of the assembly warehouse. The Company periodically reviews its inventory for evidence of slow-moving or obsolete inventory and provides for an allowance when considered necessary. The Company determined that no such reserve was necessary as of September 30, 2023 or December 31, 2022. The Company prepays for inventory purchases from foreign suppliers. Prepaid inventory totaled $102,646 and $141,611 at September 30, 2023 and December 31, 2022, respectively, and included inventory in transit where title had passed to the Company but had not yet been physically received. Vendor and Foreign Concentrations of Inventory Suppliers During the three months ended September 30, 2023 and 2022, respectively, approximately 61% and 91%, respectively, of inventory purchases were made from foreign suppliers in China and Hong Kong. During the nine months ended September 30, 2023 and 2022, respectively, approximately 71% and 92%, respectively, of inventory purchases were made from foreign suppliers in China and Hong Kong. Any adverse change in either the economic or political conditions abroad could negatively impact the Company’s supply chain. The inability to obtain product to meet sales demand could adversely affect results of operations. However, the Company has secured a secondary source for lithium iron phosphate cells used in its batteries from a supplier in Denmark, enabling the Company to source materials outside of China in the event it becomes necessary to do so. Property and Equipment Property and equipment are stated at cost less depreciation calculated on the straight-line basis over the estimated useful lives of the related assets as follows: Schedule of estimated useful lives <table cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="border-top: black 1pt solid; padding: 0 0 0 10pt; width: 73%; text-align: justify">Vehicles and transportation equipment</td> <td style="border-top: black 1pt solid; width: 1%; text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td> <td style="border-top: black 1pt solid; width: 25%; text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"><span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember__srt--RangeAxis__srt--MinimumMember_zZV5XzKnP4tg">5 - <span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember__srt--RangeAxis__srt--MaximumMember_zpOXQnsnhsSd">7 years</td> <td style="border-top: black 1pt solid; width: 1%; text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-align: justify">Office furniture and equipment</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_zuIIeEWpXLRd">3 - <span id="xdx_90E_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureAndEquipmentMember_zp71G5Uph898">7 years</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0 0 0 10pt; text-align: justify">Manufacturing equipment</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"><span id="xdx_900_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MinimumMember_zVhJtgsDPtx3">3 - <span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MaximumMember_z2aU44dnTkoh">10 years</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-align: justify">Warehouse equipment</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"><span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEequipmentMember__srt--RangeAxis__srt--MinimumMember_z7IJ1jOnBH4i">3 - <span id="xdx_903_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEequipmentMember_zGVSRvGMW8yb">10 years</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0 0 0 10pt; text-align: justify">QA equipment</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"><span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember__srt--RangeAxis__srt--MinimumMember_zcl7qmHKALgc">3 - 10 years</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1pt solid; padding: 0 0 0 10pt; text-align: justify">Tooling and molds </td> <td style="border-bottom: Black 1pt solid; text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td> <td style="border-bottom: Black 1pt solid; text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0">3 - 10 years </td> <td style="border-bottom: Black 1pt solid; text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td></tr> </table> Leasehold improvements are amortized over the shorter of the lease term or their estimated useful lives. Betterments, renewals, and extraordinary repairs that extend the lives of the assets are capitalized; other repairs and maintenance charges are expensed as incurred. The cost and related accumulated depreciation and amortization applicable to assets retired are removed from the accounts, and the gain or loss on disposition is recognized in the Statements of Operations. Leases The Company determines if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset during the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating leases are included in ROU assets, current operating lease liabilities, and long-term operating lease liabilities on the Company’s Balance Sheets. The Company does not have any finance leases. Lease ROU assets and lease liabilities are initially recognized based on the present value of the future minimum lease payments over the lease term at commencement date calculated using the Company’s incremental borrowing rate applicable to the lease asset, unless the implicit rate is readily determinable. ROU assets also include any lease payments made at or before lease commencement and exclude any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Leases with a term of 12 months or less are not recognized on the Company’s Balance Sheet. The Company’s leases do not contain any residual value guarantees. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company accounts for lease and non-lease components as a single lease component for all its leases. Impairment of Long-Lived Assets Long-lived assets consist primarily of property and equipment. When events or circumstances indicate the carrying value of a long-lived asset may be impaired, the Company estimates the future undiscounted cash flows to be derived from the use and eventual disposition of the asset to assess whether or not a potential impairment exists. If the carrying value exceeds the estimate of future undiscounted cash flows, the impairment is calculated as the excess of the carrying value of the asset over the estimate of its fair value. Fair value is determined primarily using the estimated cash flows discounted at a rate commensurate with the risk involved. No long-lived asset impairment was recognized during the three or nine months ended September 30, 2023 or 2022. Product Warranties The Company sells the majority of its products to customers along with conditional repair or replacement warranties. The Company’s branded DC mobile chargers are warrantied for two years from the date of sale and its branded VPR 4EVER Classic and Platinum batteries are warrantied at gradually lesser levels over a twelve-year period from date of sale. The Company determines its estimated liability for warranty claims based on the Company’s experience of the amount of claims actually made. Management estimates no liability as of September 30, 2023 and December 31, 2022 because, historically, there have been very few claims and costs for repairs or replacement parts have been nominal. It is possible that the Company’s estimate of liability for product liability claims will change in the near term. Liability for Refunds The Company does not have a formal return policy but does accept returns under its warranty policies. Returns have historically been minimal. Revenue Recognition The Company’s revenue is generated from the sale of products consisting primarily of batteries and accessories. The Company recognizes revenue when control of goods or services is transferred to its customers in an amount that reflects the consideration it is expected to be entitled to in exchange for those goods or services. To determine revenue recognition, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the performance obligation(s) are satisfied. Revenue is recognized upon shipment or delivery to the customer, as that is when the customer obtains control of the promised goods and the Company’s performance obligation is considered satisfied. As such, accounts receivable is recorded at the time of shipment or will call, when the Company’s right to the consideration becomes unconditional and the Company determines there are no uncertainties regarding payment terms or transfer of control. Concentration of Major Customers A customer is considered a major customer when net revenue attributable to the customer exceeds 10% of total revenue for the period or outstanding receivable balances exceed 10% of total receivables. During the three months ended September 30, 2023, sales to three customers totaled $700,071, comprising approximately 38% of total sales. These customers represented 31% of total accounts receivable as of September 30, 2023. During the nine months ended September 30, 2023, sales to two customers totaled $1,178,142, comprising approximately 23% of total sales. These customers represented 23% of total accounts receivable as of September 30, 2023. Accounts receivable from three additional customers totaled $190,495, representing approximately 40% of accounts receivable as of September 30, 2023. During the three months ended September 30, 2022, sales to two customers totaled $394,936, comprising approximately 28% of total sales. There were no accounts receivable for these customers as of September 30, 2022. During the nine months ended September 30, 2022, sales to two customers totaled $1,816,821, comprising approximately 32% of total sales. Accounts receivables for these customers totaled $7,486, representing approximately 3% of total accounts receivable as of September 30, 2022. Accounts receivable from two additional customers totaled $90,789, representing approximately 32% of total accounts receivables as of September 30, 2022. Shipping and Handling Costs Shipping and handling fees billed to customers are classified in the Statement of Operations in “Sales, net” and totaled $27,398 and $6,133 during the three months ended September 30, 2023 and 2022, respectively, and $52,296 and $17,514 during the nine months ended September 30, 2023 and 2022, respectively. Shipping and handling costs for shipping product to customers totaled $58,141 and $54,840 during the three months ended September 30, 2023 and 2022, respectively, and $149,898 and $137,497 during the nine months ended September 30, 2023 and 2022, respectively, and are classified in selling, general, and administrative expense in the accompanying Statements of Operations. Advertising and Marketing Costs The Company expenses advertising and marketing costs as incurred. Advertising and marketing expense totaled $238,163 and $215,994 for the three months ended September 30, 2023 and 2022, respectively and $690,995 and $527,732 for the nine months ended September 30, 2023 and 2022, respectively, and is included in selling, general and administrative expense in the accompanying Statements of Operations. Research and Development Research and development costs are expensed as incurred. Research and development costs charged to expense amounted to $145,111 and $41,355 for the three months ended September 30, 2023 and 2022, respectively, and $316,369 and $153,730 for the nine months ended September 30, 2023 and 2022, respectively, and are included in selling, general and administrative expenses in the accompanying Statements of Operations. Income Taxes Effective November 1, 2021, the Company converted from an LLC to a C corporation and, as a result, became subject to corporate federal and state income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of exiting assets and liabilities and their respective tax basis. Deferred tax assets, including tax loss and credit carryforwards, and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. On March 27, 2020, the United States enacted the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The Cares Act is an emergency economic stimulus package that includes spending and tax breaks to strengthen the United States economy and fund a nationwide effort to curtail the effect of COVID-19. The CARES Act provides sweeping tax changes in response to the COVID-19 pandemic. Some of the more significant provisions are removal of certain limitations on utilization of net operating losses, increasing the loss carryback period for certain losses to five years, and increasing the ability to deduct interest expense, as well as amending certain provisions of the previously enacted Tax Cuts and Jobs Act. As of September 30, 2023 and December 31, 2022, the Company has not recorded any income tax provision/(benefit) resulting from the CARES Act, mainly due to the Company’s history of net operating losses. On December 27, 2020, the United States enacted the Consolidated Appropriations Act of 2021 (“CAA”). The CAA includes provisions extending certain CARES Act provisions and adds coronavirus relief, tax and health extenders. The Company will continue to evaluate the impact of the CAA and its impact on its financial statements in 2023 and beyond. Fair Value of Financial Instruments The Company accounts for its financial assets and liabilities in accordance with ASC Topic 820, Fair Value Measurement. ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value, as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are accessible at the measurement date. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data. These inputs include quoted prices for similar assets or liabilities; quoted market prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in the assessment of fair value. The Company’s financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable, short-term revolving loans, stockholder promissory notes, and long-term debt. The fair value of cash and cash equivalents, accounts receivable, accounts payable, and short-term revolving loans approximates their respective carrying values because of the short-term nature of those instruments. The fair value of the stockholder promissory notes, convertible notes, and long-term debt approximates their respective carrying values because the interest rate approximates market rates available to the Company for similar obligations with the same maturities. Segment Reporting The Company currently operates in one reportable segment. An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (“CODM”) to evaluate performance and make operating decisions. The Company has identified its CODM as the Chief Executive Officer. Basic and Diluted Net Loss Per Share The basic net loss per share is calculated by dividing the net loss by the weighted average number of shares outstanding during the period. Diluted earnings or loss per share adjusts the basic earnings or loss per share for the potentially dilutive impact of securities (e.g., options and warrants). We calculate basic and diluted net loss per share using the weighted average number of common shares outstanding during the periods presented. In periods of a net loss position, basic and diluted weighted average common shares are the same. For the diluted earnings per share calculation, we adjust the weighted average number of common shares outstanding to include dilutive stock options, warrants, unvested restricted stock units and shares associated with the conversion of any convertible notes or preferred stock, when applicable. We use the if-converted method for calculating any potential dilutive effect of convertible notes and convertible preferred stock on diluted net loss per share. The following shows the amounts used in computing net loss per share: Schedule of net loss per share <table cellpadding="0" cellspacing="0" id="xdx_307_134_zvweiPURMUYg" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Summary of Significant Accounting Policies (Details 1)"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_493_20230701__20230930_zFiW3vb3LjVh" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_49C_20220701__20220930_z75Hf7GwhZ0a" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_492_20230101__20230930_zwhv0JvhSnll" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_49C_20220101__20220930_zeHqbQ6AOtlj" style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended September 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Nine Months Ended September 30,</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2023</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2022</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2023</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2022</td></tr> <tr id="xdx_40E_ecustom--NetLossOne_ziztUNeD3Qo6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Net loss</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(1,814,215</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(1,279,304</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(5,270,281</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(6,067,193</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_406_ecustom--WeightedaverageNumberOfCommonSharesOutstanding_zwxiOedMoiLd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Weighted average common shares outstanding – basic and diluted</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,910,717</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,802,464</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,878,737</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,913,763</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--NetLossPerShareBasicAndDiluted_z1yj24NP6Ib" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Basic and diluted net loss per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.26</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.19</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.77</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1.03</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> As of September 30, 2023 and December 31, 2022, the Company has outstanding warrants, options, and restricted stock units (“RSUs”) convertible into 1,926,610 and 1,717,936 shares of common stock, respectively. The following table sets forth the number of shares excluded from the computation of diluted loss per share, as their inclusion would have been anti-dilutive. Schedule of anti-dilutive share <table cellpadding="0" cellspacing="0" id="xdx_30B_134_z0ucSeAjt4h3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Summary of Significant Accounting Policies (Details 2)"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; font-weight: bold">As of:</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2023</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2022</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; padding-left: 5.4pt"> Warrants</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zUlM0wcirv51" style="width: 12%; text-align: right">802,830</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zT3f4cQ55Eul" style="width: 12%; text-align: right">888,436</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Stock options</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_z8RJRSgh28M1" style="text-align: right">1,075,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zQoUblAc9nu1" style="text-align: right">829,500</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 5.4pt">RSUs</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--RSUMember_z6xhWsB6cwAe" style="border-bottom: Black 1pt solid; text-align: right">48,780</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--RSUMember_ziAg5Zah8Nad" style="border-bottom: Black 1pt solid; text-align: right">— </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930_zJ2ZxiTDCpT3" style="border-bottom: Black 2.5pt double; text-align: right">1,926,610</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231_zOAG9Jemb06g" style="border-bottom: Black 2.5pt double; text-align: right">1,717,936</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation—Stock Compensation”, which requires compensation costs to be recognized at grant date fair value over the requisite service period of each of the awards. The Company recognizes forfeitures of awards as they occur. The fair value of stock options is determined using the Black-Scholes-Merton option pricing model. In order to calculate the fair value of the options, certain assumptions are made regarding the components of the model, including risk-free interest rate, volatility, expected dividend yield and expected life. Changes to assumptions could cause significant adjustments to the valuation. New Accounting Pronouncements In September 2022, the FASB issued ASU 2022-04, “Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” which is intended to enhance the transparency surrounding the use of supplier finance programs in connection with the purchase of goods and services. Supplier finance programs may also be referred to as reverse factoring, payables finance, or structured payables arrangements. The amendments in ASU 2022-04 require a buyer that uses supplier finance programs to disclose sufficient qualitative and quantitative information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. ASU 2022-04 is effective for all entities for fiscal years beginning after December 15, 2022 on a retrospective basis, including interim periods with those fiscal years, except for the requirement to disclose roll forward information, which is effective prospectively for fiscal years beginning after December 15, 2023. The Company adopted this standard effective January 1, 2023, and the adoption of this guidance did not have an impact on the Company’s financial statements or disclosures. In March 2022, the FASB issued ASU 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures,” which addresses and amends areas identified by the FASB as part of its post-implementation review of the accounting standard that introduced the current expected credit losses (“CECL”) model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. For entities, such as Expion360 Inc., that have not yet adopted the CECL accounting model in ASU 2016-13, the effective date for the amendments in ASU 2022-02 is the same as the effective date in ASU 2016-13 (i.e., fiscal years beginning after December 15, 2022, including interim periods within those fiscal years). The Company adopted this standard effective January 1, 2023, and the adoption of this guidance did not have an impact on the Company’s financial statements or disclosures. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” ASU 2021-08 requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with Topic 606, Revenue from Contracts with Customers, on the acquisition date as if the acquirer had entered into the original contract at the same date and on the same terms as the acquiree. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for public business entities. The Company adopted this standard effective January 1, 2023, and the adoption of this guidance did not have an impact on the Company’s financial statements or disclosures. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. This ASU replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information for credit loss estimates on certain types of financial instruments, including trade receivables. In addition, new disclosures are required. The ASU, as subsequently amended, is effective for the Company for fiscal years beginning after December 15, 2022. The Company adopted this standard effective January 1, 2023, and the adoption of this guidance did not have an impact on the Company’s financial statements or disclosures. Accounting Guidance Issued but Not Yet Adopted In March 2023, the FASB issued ASU 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” This ASU was issued to allow reporting entities to consistently account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits. ASU 2023-02 is effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The Company is currently evaluating the impact of this standard on our financial statements. In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions,” which amends the guidance in Topic 820, Fair Value Measurement, to clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. In addition, the ASU introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. ASU 2022-03 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years for public business entities. The Company is currently evaluating the impact of this standard on our financial statements.

Basis of Presentation The accompanying unaudited financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information, and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated by the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statement presentation. However, the Company believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (consisting primarily of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three- and nine-month periods ended September 30, 2023 and 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The unaudited interim financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 30, 2023. Unless otherwise noted, all references to shares and stockholders in the accompanying financial statements have been restated retrospectively, to reflect the equity structure of the C corporation as of the beginning of the first period presented.

Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with current year presentation. These reclassifications had no effect on the reported results of operations.

Going Concern, Liquidity and Capital Resources The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional funding before the Company achieves sustainable revenues and profit from operations. The Company expects to continue to incur additional losses for the foreseeable future, and the Company may need to raise additional debt or equity financing to expand its presence in the marketplace, develop new products, achieve operating efficiencies, and accomplish its long-term business plan over the next several years. There can be no assurance as to the availability or terms upon which such financing and capital might be available. As presented in the accompanying financial statements, the Company has sustained recurring losses and negative cash flows from operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern within twelve months after the date that the financial statements for the three and nine month periods ended September 30, 2023 are issued. However, management is working to address its cash flow challenges, including raising additional capital, managing inventory levels, identifying alternative supply chain resources, and managing operational expenses. Historically, the Company’s growth has been funded through a combination of sales of equity interests, third party debt, and working capital loans. The Company’s sales for the three months ended September 30, 2023 increased 36.7% and sales for the nine months ended September 30, 2023 decreased 10.8% compared to the same periods in 2022. For the nine months ended September 30, 2023, we received net proceeds of $49,777 from warrant exercises. On April 1, 2022, the Company completed an initial public offering and listing of its shares on the Nasdaq Stock Market (IPO). Proceeds from the IPO, net of costs, totaled $14,772,487, of which approximately $2,464,000 was used to pay down principal and accrued interest on high interest-bearing debt. The remaining proceeds have thus far and will continue to be used, in part, to stock inventory to keep up with demand and to build in-house assembly lines to improve the cash-flow cycle and help reduce the four-month turnaround that the Company currently experiences from suppliers in China. In the first half of 2022, a distribution warehouse was set up in Indiana to better service customers throughout the U.S. and an assembly facility was leased in Redmond, Oregon for future expansion of the in-house assembly lines. Additionally, management has secured a secondary source for lithium iron phosphate cells used in its batteries that is based in Denmark, should supply disruption issues with China arise. Management believes that these factors will contribute to achieving operating efficiency and profitability. However, there can be no assurance that the Company will be successful in achieving its objectives, including achieving operating efficiency and profitability. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business; however, the above conditions raise substantial doubt about the Company’s ability to do so. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.

49777

Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could vary materially from the estimates that were used. The Company’s significant accounting estimates include the carrying value of accounts receivable and inventory, the depreciable lives of fixed assets, and stock-based compensation. Future events, including the extent and the duration of the COVID-19-related economic impacts and their effects, cannot be predicted with certainty and, accordingly, the Company’s accounting estimates require the exercise of judgment.

Cash and Cash Equivalents The Company considers all cash amounts which are not subject to withdrawal restrictions or penalties and all highly liquid investments purchased with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains its cash balances with high-quality financial institutions located in the United States. Cash accounts are secured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per institution. At times, balances may exceed federally insured limits. Investment accounts are placed in funds consisting of US Treasury-related ultra-short paper. The Company has not experienced any losses in such accounts and management believes that the Company is not exposed to any significant credit risk with respect to its cash and cash equivalents. As of September 30, 2023, cash balances exceeded FDIC limits by $547,054 and investment accounts totaling $2,100,847 are invested in US Treasury-related ultra-short paper.

547054

2100847

Accounts Receivable Accounts receivable are recorded at the invoiced amount, are due within a year or less, and generally do not bear any interest. The Company performs ongoing credit evaluations of its customers and generally requires no collateral. An allowance for uncollectible accounts is recorded to reduce accounts receivable to the estimated amount that will be collected. The allowance is based upon management’s review of the accounts receivable aging and specific identification of potentially uncollectible balances. Recoveries of accounts previously written off and adjustments to the allowance for uncollectible accounts are recorded as adjustments to bad debt expense. For the three months ended September 30, 2023 and 2022, the Company wrote off $388 and $0, respectively. For the nine months ended September 30, 2023 and 2022, the Company recovered a net of ($412) and wrote off $19,604, respectively. There was no allowance for doubtful accounts as of September 30, 2023 or December 31, 2022, as management believed all outstanding amounts to be fully collectible.

388 0 412 19604 Customer Deposits As of September 30, 2023 and December 31, 2022, the Company had customer deposits totaling $46,248 and $58, respectively.

46248

Inventory Inventory is stated at the lower of cost (first in, first out) or net realizable value and consists of batteries and accessories, resale items, components, and related landing costs. As of September 30, 2023 and December 31, 2022, the Company had inventory that consisted of finished assemblies totaling $3,306,972 and $3,243,485, respectively, and raw materials (inventory components, parts, and packaging) totaling $851,511 and $1,286,651, respectively. The valuation of inventory includes fixed production overhead costs based on normal capacity of the assembly warehouse. The Company periodically reviews its inventory for evidence of slow-moving or obsolete inventory and provides for an allowance when considered necessary. The Company determined that no such reserve was necessary as of September 30, 2023 or December 31, 2022. The Company prepays for inventory purchases from foreign suppliers. Prepaid inventory totaled $102,646 and $141,611 at September 30, 2023 and December 31, 2022, respectively, and included inventory in transit where title had passed to the Company but had not yet been physically received.

3306972

3243485

851511

1286651

102646

141611

Vendor and Foreign Concentrations of Inventory Suppliers During the three months ended September 30, 2023 and 2022, respectively, approximately 61% and 91%, respectively, of inventory purchases were made from foreign suppliers in China and Hong Kong. During the nine months ended September 30, 2023 and 2022, respectively, approximately 71% and 92%, respectively, of inventory purchases were made from foreign suppliers in China and Hong Kong. Any adverse change in either the economic or political conditions abroad could negatively impact the Company’s supply chain. The inability to obtain product to meet sales demand could adversely affect results of operations. However, the Company has secured a secondary source for lithium iron phosphate cells used in its batteries from a supplier in Denmark, enabling the Company to source materials outside of China in the event it becomes necessary to do so.

Property and Equipment Property and equipment are stated at cost less depreciation calculated on the straight-line basis over the estimated useful lives of the related assets as follows: Schedule of estimated useful lives <table cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="border-top: black 1pt solid; padding: 0 0 0 10pt; width: 73%; text-align: justify">Vehicles and transportation equipment</td> <td style="border-top: black 1pt solid; width: 1%; text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td> <td style="border-top: black 1pt solid; width: 25%; text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"><span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember__srt--RangeAxis__srt--MinimumMember_zZV5XzKnP4tg">5 - <span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember__srt--RangeAxis__srt--MaximumMember_zpOXQnsnhsSd">7 years</td> <td style="border-top: black 1pt solid; width: 1%; text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-align: justify">Office furniture and equipment</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_zuIIeEWpXLRd">3 - <span id="xdx_90E_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureAndEquipmentMember_zp71G5Uph898">7 years</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0 0 0 10pt; text-align: justify">Manufacturing equipment</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"><span id="xdx_900_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MinimumMember_zVhJtgsDPtx3">3 - <span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MaximumMember_z2aU44dnTkoh">10 years</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-align: justify">Warehouse equipment</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"><span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEequipmentMember__srt--RangeAxis__srt--MinimumMember_z7IJ1jOnBH4i">3 - <span id="xdx_903_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEequipmentMember_zGVSRvGMW8yb">10 years</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0 0 0 10pt; text-align: justify">QA equipment</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"><span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember__srt--RangeAxis__srt--MinimumMember_zcl7qmHKALgc">3 - 10 years</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1pt solid; padding: 0 0 0 10pt; text-align: justify">Tooling and molds </td> <td style="border-bottom: Black 1pt solid; text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td> <td style="border-bottom: Black 1pt solid; text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0">3 - 10 years </td> <td style="border-bottom: Black 1pt solid; text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td></tr> </table> Leasehold improvements are amortized over the shorter of the lease term or their estimated useful lives. Betterments, renewals, and extraordinary repairs that extend the lives of the assets are capitalized; other repairs and maintenance charges are expensed as incurred. The cost and related accumulated depreciation and amortization applicable to assets retired are removed from the accounts, and the gain or loss on disposition is recognized in the Statements of Operations.

Schedule of estimated useful lives <table cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="border-top: black 1pt solid; padding: 0 0 0 10pt; width: 73%; text-align: justify">Vehicles and transportation equipment</td> <td style="border-top: black 1pt solid; width: 1%; text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td> <td style="border-top: black 1pt solid; width: 25%; text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"><span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember__srt--RangeAxis__srt--MinimumMember_zZV5XzKnP4tg">5 - <span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember__srt--RangeAxis__srt--MaximumMember_zpOXQnsnhsSd">7 years</td> <td style="border-top: black 1pt solid; width: 1%; text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-align: justify">Office furniture and equipment</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"><span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_zuIIeEWpXLRd">3 - <span id="xdx_90E_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureAndEquipmentMember_zp71G5Uph898">7 years</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0 0 0 10pt; text-align: justify">Manufacturing equipment</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"><span id="xdx_900_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MinimumMember_zVhJtgsDPtx3">3 - <span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MaximumMember_z2aU44dnTkoh">10 years</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-align: justify">Warehouse equipment</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"><span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEequipmentMember__srt--RangeAxis__srt--MinimumMember_z7IJ1jOnBH4i">3 - <span id="xdx_903_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEequipmentMember_zGVSRvGMW8yb">10 years</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0 0 0 10pt; text-align: justify">QA equipment</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"><span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember__srt--RangeAxis__srt--MinimumMember_zcl7qmHKALgc">3 - 10 years</td> <td style="text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1pt solid; padding: 0 0 0 10pt; text-align: justify">Tooling and molds </td> <td style="border-bottom: Black 1pt solid; text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td> <td style="border-bottom: Black 1pt solid; text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0">3 - 10 years </td> <td style="border-bottom: Black 1pt solid; text-align: justify; padding-top: 0; padding-right: 0; padding-bottom: 0"> </td></tr> </table>

P5Y

P7Y

P3Y

P7Y

P3Y

P10Y

P3Y

P10Y

P3Y

P10Y

P3Y

P10Y

Leases The Company determines if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset during the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating leases are included in ROU assets, current operating lease liabilities, and long-term operating lease liabilities on the Company’s Balance Sheets. The Company does not have any finance leases. Lease ROU assets and lease liabilities are initially recognized based on the present value of the future minimum lease payments over the lease term at commencement date calculated using the Company’s incremental borrowing rate applicable to the lease asset, unless the implicit rate is readily determinable. ROU assets also include any lease payments made at or before lease commencement and exclude any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Leases with a term of 12 months or less are not recognized on the Company’s Balance Sheet. The Company’s leases do not contain any residual value guarantees. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company accounts for lease and non-lease components as a single lease component for all its leases.

Impairment of Long-Lived Assets Long-lived assets consist primarily of property and equipment. When events or circumstances indicate the carrying value of a long-lived asset may be impaired, the Company estimates the future undiscounted cash flows to be derived from the use and eventual disposition of the asset to assess whether or not a potential impairment exists. If the carrying value exceeds the estimate of future undiscounted cash flows, the impairment is calculated as the excess of the carrying value of the asset over the estimate of its fair value. Fair value is determined primarily using the estimated cash flows discounted at a rate commensurate with the risk involved. No long-lived asset impairment was recognized during the three or nine months ended September 30, 2023 or 2022.

Product Warranties The Company sells the majority of its products to customers along with conditional repair or replacement warranties. The Company’s branded DC mobile chargers are warrantied for two years from the date of sale and its branded VPR 4EVER Classic and Platinum batteries are warrantied at gradually lesser levels over a twelve-year period from date of sale. The Company determines its estimated liability for warranty claims based on the Company’s experience of the amount of claims actually made. Management estimates no liability as of September 30, 2023 and December 31, 2022 because, historically, there have been very few claims and costs for repairs or replacement parts have been nominal. It is possible that the Company’s estimate of liability for product liability claims will change in the near term.

Liability for Refunds The Company does not have a formal return policy but does accept returns under its warranty policies. Returns have historically been minimal.

Revenue Recognition The Company’s revenue is generated from the sale of products consisting primarily of batteries and accessories. The Company recognizes revenue when control of goods or services is transferred to its customers in an amount that reflects the consideration it is expected to be entitled to in exchange for those goods or services. To determine revenue recognition, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the performance obligation(s) are satisfied. Revenue is recognized upon shipment or delivery to the customer, as that is when the customer obtains control of the promised goods and the Company’s performance obligation is considered satisfied. As such, accounts receivable is recorded at the time of shipment or will call, when the Company’s right to the consideration becomes unconditional and the Company determines there are no uncertainties regarding payment terms or transfer of control.

Concentration of Major Customers A customer is considered a major customer when net revenue attributable to the customer exceeds 10% of total revenue for the period or outstanding receivable balances exceed 10% of total receivables. During the three months ended September 30, 2023, sales to three customers totaled $700,071, comprising approximately 38% of total sales. These customers represented 31% of total accounts receivable as of September 30, 2023. During the nine months ended September 30, 2023, sales to two customers totaled $1,178,142, comprising approximately 23% of total sales. These customers represented 23% of total accounts receivable as of September 30, 2023. Accounts receivable from three additional customers totaled $190,495, representing approximately 40% of accounts receivable as of September 30, 2023. During the three months ended September 30, 2022, sales to two customers totaled $394,936, comprising approximately 28% of total sales. There were no accounts receivable for these customers as of September 30, 2022. During the nine months ended September 30, 2022, sales to two customers totaled $1,816,821, comprising approximately 32% of total sales. Accounts receivables for these customers totaled $7,486, representing approximately 3% of total accounts receivable as of September 30, 2022. Accounts receivable from two additional customers totaled $90,789, representing approximately 32% of total accounts receivables as of September 30, 2022.

Shipping and Handling Costs Shipping and handling fees billed to customers are classified in the Statement of Operations in “Sales, net” and totaled $27,398 and $6,133 during the three months ended September 30, 2023 and 2022, respectively, and $52,296 and $17,514 during the nine months ended September 30, 2023 and 2022, respectively. Shipping and handling costs for shipping product to customers totaled $58,141 and $54,840 during the three months ended September 30, 2023 and 2022, respectively, and $149,898 and $137,497 during the nine months ended September 30, 2023 and 2022, respectively, and are classified in selling, general, and administrative expense in the accompanying Statements of Operations.

27398

6133

52296

17514

58141 54840 149898 137497

Advertising and Marketing Costs The Company expenses advertising and marketing costs as incurred. Advertising and marketing expense totaled $238,163 and $215,994 for the three months ended September 30, 2023 and 2022, respectively and $690,995 and $527,732 for the nine months ended September 30, 2023 and 2022, respectively, and is included in selling, general and administrative expense in the accompanying Statements of Operations.

238163

215994

690995

527732

Research and Development Research and development costs are expensed as incurred. Research and development costs charged to expense amounted to $145,111 and $41,355 for the three months ended September 30, 2023 and 2022, respectively, and $316,369 and $153,730 for the nine months ended September 30, 2023 and 2022, respectively, and are included in selling, general and administrative expenses in the accompanying Statements of Operations.

145111

41355

316369

153730

Income Taxes Effective November 1, 2021, the Company converted from an LLC to a C corporation and, as a result, became subject to corporate federal and state income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of exiting assets and liabilities and their respective tax basis. Deferred tax assets, including tax loss and credit carryforwards, and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. On March 27, 2020, the United States enacted the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The Cares Act is an emergency economic stimulus package that includes spending and tax breaks to strengthen the United States economy and fund a nationwide effort to curtail the effect of COVID-19. The CARES Act provides sweeping tax changes in response to the COVID-19 pandemic. Some of the more significant provisions are removal of certain limitations on utilization of net operating losses, increasing the loss carryback period for certain losses to five years, and increasing the ability to deduct interest expense, as well as amending certain provisions of the previously enacted Tax Cuts and Jobs Act. As of September 30, 2023 and December 31, 2022, the Company has not recorded any income tax provision/(benefit) resulting from the CARES Act, mainly due to the Company’s history of net operating losses. On December 27, 2020, the United States enacted the Consolidated Appropriations Act of 2021 (“CAA”). The CAA includes provisions extending certain CARES Act provisions and adds coronavirus relief, tax and health extenders. The Company will continue to evaluate the impact of the CAA and its impact on its financial statements in 2023 and beyond.

Fair Value of Financial Instruments The Company accounts for its financial assets and liabilities in accordance with ASC Topic 820, Fair Value Measurement. ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value, as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are accessible at the measurement date. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data. These inputs include quoted prices for similar assets or liabilities; quoted market prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in the assessment of fair value. The Company’s financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable, short-term revolving loans, stockholder promissory notes, and long-term debt. The fair value of cash and cash equivalents, accounts receivable, accounts payable, and short-term revolving loans approximates their respective carrying values because of the short-term nature of those instruments. The fair value of the stockholder promissory notes, convertible notes, and long-term debt approximates their respective carrying values because the interest rate approximates market rates available to the Company for similar obligations with the same maturities.

Segment Reporting The Company currently operates in one reportable segment. An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (“CODM”) to evaluate performance and make operating decisions. The Company has identified its CODM as the Chief Executive Officer.

Basic and Diluted Net Loss Per Share The basic net loss per share is calculated by dividing the net loss by the weighted average number of shares outstanding during the period. Diluted earnings or loss per share adjusts the basic earnings or loss per share for the potentially dilutive impact of securities (e.g., options and warrants). We calculate basic and diluted net loss per share using the weighted average number of common shares outstanding during the periods presented. In periods of a net loss position, basic and diluted weighted average common shares are the same. For the diluted earnings per share calculation, we adjust the weighted average number of common shares outstanding to include dilutive stock options, warrants, unvested restricted stock units and shares associated with the conversion of any convertible notes or preferred stock, when applicable. We use the if-converted method for calculating any potential dilutive effect of convertible notes and convertible preferred stock on diluted net loss per share. The following shows the amounts used in computing net loss per share: Schedule of net loss per share <table cellpadding="0" cellspacing="0" id="xdx_307_134_zvweiPURMUYg" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Summary of Significant Accounting Policies (Details 1)"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_493_20230701__20230930_zFiW3vb3LjVh" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_49C_20220701__20220930_z75Hf7GwhZ0a" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_492_20230101__20230930_zwhv0JvhSnll" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_49C_20220101__20220930_zeHqbQ6AOtlj" style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended September 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Nine Months Ended September 30,</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2023</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2022</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2023</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2022</td></tr> <tr id="xdx_40E_ecustom--NetLossOne_ziztUNeD3Qo6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Net loss</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(1,814,215</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(1,279,304</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(5,270,281</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(6,067,193</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_406_ecustom--WeightedaverageNumberOfCommonSharesOutstanding_zwxiOedMoiLd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Weighted average common shares outstanding – basic and diluted</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,910,717</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,802,464</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,878,737</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,913,763</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--NetLossPerShareBasicAndDiluted_z1yj24NP6Ib" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Basic and diluted net loss per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.26</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.19</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.77</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1.03</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> As of September 30, 2023 and December 31, 2022, the Company has outstanding warrants, options, and restricted stock units (“RSUs”) convertible into 1,926,610 and 1,717,936 shares of common stock, respectively. The following table sets forth the number of shares excluded from the computation of diluted loss per share, as their inclusion would have been anti-dilutive. Schedule of anti-dilutive share <table cellpadding="0" cellspacing="0" id="xdx_30B_134_z0ucSeAjt4h3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Summary of Significant Accounting Policies (Details 2)"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; font-weight: bold">As of:</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2023</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2022</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; padding-left: 5.4pt"> Warrants</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zUlM0wcirv51" style="width: 12%; text-align: right">802,830</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zT3f4cQ55Eul" style="width: 12%; text-align: right">888,436</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Stock options</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_z8RJRSgh28M1" style="text-align: right">1,075,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zQoUblAc9nu1" style="text-align: right">829,500</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 5.4pt">RSUs</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--RSUMember_z6xhWsB6cwAe" style="border-bottom: Black 1pt solid; text-align: right">48,780</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--RSUMember_ziAg5Zah8Nad" style="border-bottom: Black 1pt solid; text-align: right">— </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930_zJ2ZxiTDCpT3" style="border-bottom: Black 2.5pt double; text-align: right">1,926,610</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231_zOAG9Jemb06g" style="border-bottom: Black 2.5pt double; text-align: right">1,717,936</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Schedule of net loss per share <table cellpadding="0" cellspacing="0" id="xdx_307_134_zvweiPURMUYg" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Summary of Significant Accounting Policies (Details 1)"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_493_20230701__20230930_zFiW3vb3LjVh" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_49C_20220701__20220930_z75Hf7GwhZ0a" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center"> </td> <td id="xdx_492_20230101__20230930_zwhv0JvhSnll" style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td style="font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_49C_20220101__20220930_zeHqbQ6AOtlj" style="font-weight: bold; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended September 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Nine Months Ended September 30,</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2023</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2022</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2023</td><td style="font-weight: bold"> </td> <td colspan="3" style="font-weight: bold; text-align: center">2022</td></tr> <tr id="xdx_40E_ecustom--NetLossOne_ziztUNeD3Qo6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Net loss</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(1,814,215</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(1,279,304</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(5,270,281</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(6,067,193</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_406_ecustom--WeightedaverageNumberOfCommonSharesOutstanding_zwxiOedMoiLd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Weighted average common shares outstanding – basic and diluted</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,910,717</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,802,464</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,878,737</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,913,763</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--NetLossPerShareBasicAndDiluted_z1yj24NP6Ib" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Basic and diluted net loss per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.26</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.19</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(0.77</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1.03</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table>

-1814215 -1279304 -5270281 -6067193 6910717 6802464 6878737 5913763 -0.26 -0.19 -0.77 -1.03

Schedule of anti-dilutive share <table cellpadding="0" cellspacing="0" id="xdx_30B_134_z0ucSeAjt4h3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Summary of Significant Accounting Policies (Details 2)"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; font-weight: bold">As of:</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2023</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2022</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; padding-left: 5.4pt"> Warrants</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zUlM0wcirv51" style="width: 12%; text-align: right">802,830</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zT3f4cQ55Eul" style="width: 12%; text-align: right">888,436</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 5.4pt">Stock options</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_z8RJRSgh28M1" style="text-align: right">1,075,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zQoUblAc9nu1" style="text-align: right">829,500</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 5.4pt">RSUs</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--RSUMember_z6xhWsB6cwAe" style="border-bottom: Black 1pt solid; text-align: right">48,780</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--RSUMember_ziAg5Zah8Nad" style="border-bottom: Black 1pt solid; text-align: right">— </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20230930_zJ2ZxiTDCpT3" style="border-bottom: Black 2.5pt double; text-align: right">1,926,610</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231_zOAG9Jemb06g" style="border-bottom: Black 2.5pt double; text-align: right">1,717,936</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

802830

888436

1075000

829500

48780

1926610

1717936

Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation—Stock Compensation”, which requires compensation costs to be recognized at grant date fair value over the requisite service period of each of the awards. The Company recognizes forfeitures of awards as they occur. The fair value of stock options is determined using the Black-Scholes-Merton option pricing model. In order to calculate the fair value of the options, certain assumptions are made regarding the components of the model, including risk-free interest rate, volatility, expected dividend yield and expected life. Changes to assumptions could cause significant adjustments to the valuation.

New Accounting Pronouncements In September 2022, the FASB issued ASU 2022-04, “Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” which is intended to enhance the transparency surrounding the use of supplier finance programs in connection with the purchase of goods and services. Supplier finance programs may also be referred to as reverse factoring, payables finance, or structured payables arrangements. The amendments in ASU 2022-04 require a buyer that uses supplier finance programs to disclose sufficient qualitative and quantitative information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. ASU 2022-04 is effective for all entities for fiscal years beginning after December 15, 2022 on a retrospective basis, including interim periods with those fiscal years, except for the requirement to disclose roll forward information, which is effective prospectively for fiscal years beginning after December 15, 2023. The Company adopted this standard effective January 1, 2023, and the adoption of this guidance did not have an impact on the Company’s financial statements or disclosures. In March 2022, the FASB issued ASU 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures,” which addresses and amends areas identified by the FASB as part of its post-implementation review of the accounting standard that introduced the current expected credit losses (“CECL”) model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. For entities, such as Expion360 Inc., that have not yet adopted the CECL accounting model in ASU 2016-13, the effective date for the amendments in ASU 2022-02 is the same as the effective date in ASU 2016-13 (i.e., fiscal years beginning after December 15, 2022, including interim periods within those fiscal years). The Company adopted this standard effective January 1, 2023, and the adoption of this guidance did not have an impact on the Company’s financial statements or disclosures. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” ASU 2021-08 requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with Topic 606, Revenue from Contracts with Customers, on the acquisition date as if the acquirer had entered into the original contract at the same date and on the same terms as the acquiree. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for public business entities. The Company adopted this standard effective January 1, 2023, and the adoption of this guidance did not have an impact on the Company’s financial statements or disclosures. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. This ASU replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information for credit loss estimates on certain types of financial instruments, including trade receivables. In addition, new disclosures are required. The ASU, as subsequently amended, is effective for the Company for fiscal years beginning after December 15, 2022. The Company adopted this standard effective January 1, 2023, and the adoption of this guidance did not have an impact on the Company’s financial statements or disclosures.

Accounting Guidance Issued but Not Yet Adopted In March 2023, the FASB issued ASU 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” This ASU was issued to allow reporting entities to consistently account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits. ASU 2023-02 is effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The Company is currently evaluating the impact of this standard on our financial statements. In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions,” which amends the guidance in Topic 820, Fair Value Measurement, to clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. In addition, the ASU introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. ASU 2022-03 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years for public business entities. The Company is currently evaluating the impact of this standard on our financial statements.

3. Property and Equipment, Net Property and equipment consist of the following: Schedule of property and equipment <table cellpadding="0" cellspacing="0" id="xdx_305_134_zOfQ6BgUoqf8" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Property and Equipment, Net (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2023</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2022</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Vehicles and transportation equipment</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember_zmhsxJUgBDNb" style="width: 12%; text-align: right">551,906</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember_zyLFZEgqsNU9" style="width: 12%; text-align: right">593,097</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Leasehold improvements</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zXagIjEVvhof" style="text-align: right">314,819</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zAFW8MlYhu6g" style="text-align: right">314,819</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Office furniture and equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureEquipmentMember_zUUYEEV7yPG" style="text-align: right">188,131</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureEquipmentMember_zFnXkyfj7IGj" style="text-align: right">188,131</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Manufacturing equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember_zdnBMdaZ2bJ" style="text-align: right">179,274</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember_zBxYP1sx2i43" style="text-align: right">179,274</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Warehouse equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEquipmentMember_zSUenEwxox74" style="text-align: right">81,164</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEquipmentMember_zSR022k9Qzwg" style="text-align: right">81,164</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">QA equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember_zaTF3uav4Tcf" style="text-align: right">33,032</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember_zWwlDJtq3DMd" style="text-align: right">22,142</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Tooling and Molds</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember_z8fU3Q1peZRk" style="border-bottom: Black 1pt solid; text-align: right">— </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember_z9cWHbJvWOFd" style="border-bottom: Black 1pt solid; text-align: right">15,992</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_989_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20230930_zp1L0wYDBBcb" style="text-align: right">1,348,326</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231_zsAJvBmZMx6" style="text-align: right">1,394,619</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_c20230930_zqrB59mhZ0C" style="border-bottom: Black 1pt solid; text-align: right">(378,286</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_c20221231_zSlyRdJTtSlj" style="border-bottom: Black 1pt solid; text-align: right">(250,861</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Property and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_c20230930_z3Fu8HJbJTc4" style="border-bottom: Black 2.5pt double; text-align: right">970,040</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_c20221231_zfF1SGzFjrgd" style="border-bottom: Black 2.5pt double; text-align: right">1,143,758</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Depreciation expense was $50,507 and $48,364 for the three months ended September 30, 2023 and 2022, respectively. Depreciation expense was $153,714 and $115,670 for the nine months ended September 30, 2023 and 2022, respectively. There were disposals and sales of fixed assets during the nine months ended September 30, 2023 and 2022 resulting in the net cash received of $36,748 and $51,679, respectively.

Schedule of property and equipment <table cellpadding="0" cellspacing="0" id="xdx_305_134_zOfQ6BgUoqf8" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Property and Equipment, Net (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">September 30, 2023</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2022</td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="3"> </td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Vehicles and transportation equipment</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember_zmhsxJUgBDNb" style="width: 12%; text-align: right">551,906</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember_zyLFZEgqsNU9" style="width: 12%; text-align: right">593,097</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Leasehold improvements</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zXagIjEVvhof" style="text-align: right">314,819</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zAFW8MlYhu6g" style="text-align: right">314,819</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Office furniture and equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureEquipmentMember_zUUYEEV7yPG" style="text-align: right">188,131</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureEquipmentMember_zFnXkyfj7IGj" style="text-align: right">188,131</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Manufacturing equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember_zdnBMdaZ2bJ" style="text-align: right">179,274</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember_zBxYP1sx2i43" style="text-align: right">179,274</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Warehouse equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEquipmentMember_zSUenEwxox74" style="text-align: right">81,164</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEquipmentMember_zSR022k9Qzwg" style="text-align: right">81,164</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">QA equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember_zaTF3uav4Tcf" style="text-align: right">33,032</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember_zWwlDJtq3DMd" style="text-align: right">22,142</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Tooling and Molds</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember_z8fU3Q1peZRk" style="border-bottom: Black 1pt solid; text-align: right">— </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember_z9cWHbJvWOFd" style="border-bottom: Black 1pt solid; text-align: right">15,992</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_989_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20230930_zp1L0wYDBBcb" style="text-align: right">1,348,326</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231_zsAJvBmZMx6" style="text-align: right">1,394,619</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_c20230930_zqrB59mhZ0C" style="border-bottom: Black 1pt solid; text-align: right">(378,286</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_c20221231_zSlyRdJTtSlj" style="border-bottom: Black 1pt solid; text-align: right">(250,861</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Property and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_c20230930_z3Fu8HJbJTc4" style="border-bottom: Black 2.5pt double; text-align: right">970,040</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_c20221231_zfF1SGzFjrgd" style="border-bottom: Black 2.5pt double; text-align: right">1,143,758</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

551906

593097

314819

188131

179274

81164

33032

22142

15992

1348326

1394619

378286

250861

970040

1143758

50507

48364

153714

115670

36748 51679

4. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: Schedule of accrued expenses and other current liabilities <table cellpadding="0" cellspacing="0" id="xdx_30C_134_zvzUAiCUBNYc" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Accrued Expenses and Other Current Liabilities (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_49A_20230930_zQR2rqhREBhf" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of September 30, 2023</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_493_20221231_zgsXy1V5Yusa" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of December 31, 2022</td></tr> <tr id="xdx_406_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_zq0jMIv8Urz1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Accrued salaries and payroll liabilities</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">222,411</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">169,337</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_ecustom--RebateLiability_iI_zUizvKchRVtd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Rebate liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,255</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">26,015</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--AccruedSalesCommissionCurrent_iI_z8sMPuBMufDe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Commissions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22,534</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,720</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--FranchiseTax_iI_zOfKItefXA8i" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Franchise tax</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,999</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">400</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--DeferredIncomeAndDepositSublease_iI_ziHGz8pZebJ7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred income and deposit (sublease)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,445</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,168</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--InterestPayableCurrent_iI_zss7oswqOJGk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued interest</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">153</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">222</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--OtherAccruedLiabilitiesCurrentAndNoncurrent_iI_zkncTLZllNej" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">14,996</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">86,302</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--AccruedLiabilitiesAndOtherLiabilities_iI_z972uapb0iC6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Accrued expenses and other current liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">299,793</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">306,164</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Schedule of accrued expenses and other current liabilities <table cellpadding="0" cellspacing="0" id="xdx_30C_134_zvzUAiCUBNYc" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Accrued Expenses and Other Current Liabilities (Details)"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_49A_20230930_zQR2rqhREBhf" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of September 30, 2023</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_493_20221231_zgsXy1V5Yusa" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of December 31, 2022</td></tr> <tr id="xdx_406_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_zq0jMIv8Urz1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Accrued salaries and payroll liabilities</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">222,411</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">169,337</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_ecustom--RebateLiability_iI_zUizvKchRVtd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Rebate liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,255</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">26,015</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--AccruedSalesCommissionCurrent_iI_z8sMPuBMufDe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Commissions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22,534</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,720</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--FranchiseTax_iI_zOfKItefXA8i" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Franchise tax</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,999</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">400</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--DeferredIncomeAndDepositSublease_iI_ziHGz8pZebJ7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred income and deposit (sublease)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,445</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,168</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--InterestPayableCurrent_iI_zss7oswqOJGk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued interest</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">153</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">222</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--OtherAccruedLiabilitiesCurrentAndNoncurrent_iI_zkncTLZllNej" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">14,996</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">86,302</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--AccruedLiabilitiesAndOtherLiabilities_iI_z972uapb0iC6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Accrued expenses and other current liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">299,793</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">306,164</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

222411

169337

30255 26015

22534

9720

4999 400 4445 14168

153

222

14996

86302

299793

306164

5. Liabilities for Sale of Future Revenues On December 8, 2020 and January 26, 2021, Reliant Funding, under two separate ACH Total Receipts Purchase Agreements (“Purchase Agreements”), purchased a 50% interest in the Company’s future revenues for a total aggregate purchase price of $250,000. Pursuant to the terms of the Purchase Agreements, the purchased percentage continued to be owned by Reliant Funding, until the Company paid the full purchased amount of $349,750. Repayment of the purchased amount was achieved through 252 daily bank account withdrawals of $1,388 through December 15, 2021 and $694 thereafter through January 26, 2022. There were no payments made in the three months ended September 30, 2023 or the same period for 2022. Interest was recognized at an effective annual interest rate of approximately 71%. The Purchase Agreements were secured by substantially all of the assets of the Company. As of September 30, 2023 and December 31, 2022, the Company had no remaining liability related to the Purchase Agreements.

6. Short-Term Revolving Loans In 2020, the Company received funds under four unsecured Working Capital Loan Agreements (“WC Loans”). As of December 31, 2022, the loans had been repaid and a balance of $0 was outstanding. Under the WC Loan Agreements and in accordance with the modified terms, the Company was subject to monthly extended maturity interest of one percent on the ending outstanding monthly balance which increased one percent for each month beyond the extended maturity date. The WC Loans were repaid in full in April 2022. The terms of each WC Loan are summarized below: <table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">●</td><td style="text-align: justify">$200,000 limit – dated March 22, 2020; monthly interest-only payments at 15% annual interest; principal due 12 months from date of issue. This note was modified effective January 1, 2021 to extend the maturity date to December 31, 2021. The Company paid $50,000 towards the principal balance in November 2021. The balance of $150,000 was paid in full in April 2022 (see below).</td></tr></table> <table cellpadding="0" cellspacing="0" style="width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">●</td><td style="text-align: justify">$400,000 limit – dated August 31, 2020; monthly interest-only payments at 10% annual interest; pursuant to the WC Loan, the maturity was to be determined by mutual agreement and was to be at least 30 days after a maturity date is agreed upon. The note was modified effective January 1, 2021 to establish a maturity date of December 31, 2021, and was paid in full in April 2022 (see below).</td></tr></table> All fees incurred in connection with obtaining and modifying these agreements were nominal and, given the short-term maturity of one year, were expensed as incurred. There was no accounting impact to the financial statements related to the modifications.

7. Long-Term Debt Long-term debt consisted of the following at September 30, 2023 and December 31, 2022: Schedule of long term debt payment <table cellpadding="0" cellspacing="0" id="xdx_30A_134_zy8PBx78ip2i" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Long-Term Debt (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">September 30, 2023</td> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">December 31, 2022</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: justify">Senior secured promissory notes – various investors. Monthly payments of interest only at 10% plus deferred interest of 5% accrued monthly to be paid at maturity. A minimum of one year interest is due at maturity. Matures the earlier of (a) May 15, 2023, (b) the closing of a qualified subsequent financing or (c) the closing of a change of control. The notes are senior to all other debt and are secured by substantially all assets of the Company. The notes included detachable warrants to purchase 482,268 shares of common stock at an exercise price of $3.32 per share (see Note 10 – Stockholders’ Equity in Item 1 – Financial Statements of Part I – Financial Information). Debt issuance costs and discount totaling $1,287,160 at date of issuance were being amortized and recognized as additional interest expense over the term of the notes using the straight-line method because it was not substantially different from the effective interest rate method. We determined the expected life of the notes to be the contractual term. Interest expense related to these notes includes amortization of debt issuance costs and discount in the amount of $0 and $1,196,843, respectively, for the three months and nine months ended September 30, 2022, respectively. The notes were paid in full in April 2022. </td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td> <td id="xdx_980_eus-gaap--LongTermDebt_iI_c20230930__us-gaap--LongtermDebtTypeAxis__custom--SeniorSecuredPromissoryNotesMember_zu2E1BAkZbv6" style="font-family: Times New Roman, Times, Serif; text-align: right">—</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td> <td id="xdx_987_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--SeniorSecuredPromissoryNotesMember_zSYhmgsZ52z5" style="font-family: Times New Roman, Times, Serif; text-align: right">—</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 56%; font-family: Times New Roman, Times, Serif; text-align: justify">Note payable – bank. Payable in monthly installments of $332, including interest at 5.8% per annum, due August 2025, secured by equipment and personally guaranteed by a co-founder.</td> <td style="width: 8%; font-family: Times New Roman, Times, Serif"> </td> <td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_981_eus-gaap--LongTermDebt_iI_c20230930__us-gaap--LongtermDebtTypeAxis__us-gaap--NotesPayableToBanksMember_zWzRoJiUKBif" style="width: 12%; font-family: Times New Roman, Times, Serif; text-align: right">7,213</td> <td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="width: 8%; font-family: Times New Roman, Times, Serif"> </td> <td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_987_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__us-gaap--NotesPayableToBanksMember_zoU4N5Nx5wwb" style="width: 12%; font-family: Times New Roman, Times, Serif; text-align: right">9,825</td> <td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: justify">Note payable – credit union. Payable in monthly installments of $508, including interest at 5.45% per annum, due July 2026, secured by a vehicle and personally guaranteed by a co-founder.</td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_983_eus-gaap--LongTermDebt_iI_c20230930__us-gaap--LongtermDebtTypeAxis__custom--NotePayableCreditUnionMember_z6Z8spHtDLjj" style="font-family: Times New Roman, Times, Serif; text-align: right">15,514</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_98F_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableCreditUnionMember_zfhsTgyta9mk" style="font-family: Times New Roman, Times, Serif; text-align: right">19,364</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: justify">Note payable – SBA. Economic Injury Disaster Loan payable in monthly installments of $731, including interest at 3.75% per annum, due May 2050, and personally guaranteed by a co-founder.</td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_98C_eus-gaap--LongTermDebt_iI_c20230930__us-gaap--LongtermDebtTypeAxis__custom--NotePayableSBAMember_z3mXhXacRPZa" style="font-family: Times New Roman, Times, Serif; text-align: right">147,735</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_985_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableSBAMember_zmjRl5jKS2pa" style="font-family: Times New Roman, Times, Serif; text-align: right">150,114</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: justify">Note payable – individual. Monthly payments of interest only at 10% per annum, matured December 31, 2021 resulting in the entire principal balance recorded in current portion of long-term debt on the accompanying Balance Sheets for the year ending December 31, 2021; pursuant to the note, the past due balance is subject to 1% additional monthly interest which increases one percent for each month beyond maturity date, unsecured. The Company remained in compliance with the extended maturity interest payments and paid the note in full in April 2022.</td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_98B_eus-gaap--LongTermDebt_iI_c20230930__us-gaap--LongtermDebtTypeAxis__custom--NotePayableIndividualMember_zgZhqMNgTbPj" style="font-family: Times New Roman, Times, Serif; text-align: right">—</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_98C_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableIndividualMember_zbVAN2AVINy4" style="font-family: Times New Roman, Times, Serif; text-align: right">—</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: justify">Note payable – finance company. Payable in monthly installments of $994, including interest at 8.5% per annum, due July 2026, secured by a vehicle and personally guaranteed by a stockholder. The Note was paid in full September 2022.</td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_98D_eus-gaap--LongTermDebt_iI_c20230930__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompanyMember_zCd81AxtILH8" style="font-family: Times New Roman, Times, Serif; text-align: right">—</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_980_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompanyMember_zMkCo5LyeyF3" style="font-family: Times New Roman, Times, Serif; text-align: right">—</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: justify">Note payable – finance company. Payable in monthly installments of $2,204, including interest at 11.21% per annum, due August 2026, secured by a vehicle and personally guaranteed by a co-founder. The note was paid in full January 2023.</td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_983_eus-gaap--LongTermDebt_iI_c20230930__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompany1Member_zoQEMg6apxVk" style="font-family: Times New Roman, Times, Serif; text-align: right">—</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_98D_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompany1Member_zhaiJhr26jC" style="font-family: Times New Roman, Times, Serif; text-align: right">79,963</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Notes payable – The Company has acquired six notes payable to GM Financial for vehicles. In April 2022, the Company secured a commercial line up to $300,000 to be used to finance vehicle purchases. The agreement expired in April 2023 but was renewed for a commercial line up to $350,000 and prevailing GM Financial existing term notes will remain. The new agreement expires in April 2024. One note was paid off when the corresponding vehicle was sold in May 2023, so there are five notes remaining at September 30, 2023. The notes are currently payable in aggregate monthly installments of $4,084, including interest at rates ranging from 5.89% to 7.29% per annum, mature at various dates from October 2027 to May of 2028, and are secured by the related vehicles. Two of the notes are personally guaranteed by a co-founder.</td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_989_eus-gaap--LongTermDebt_iI_c20230930__us-gaap--LongtermDebtTypeAxis__custom--GMFinancialMember_zYWmn3bXZ9Ri" style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">191,027</td> <td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_980_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--GMFinancialMember_zHD2sHkbLt8c" style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">251,209</td> <td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left">Total</td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td> <td id="xdx_98C_eus-gaap--LongTermDebt_iI_c20230930_zOorhTjIBqxh" style="font-family: Times New Roman, Times, Serif; text-align: right">361,489</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td> <td id="xdx_983_eus-gaap--LongTermDebt_iI_c20221231_zrd187XCFUzi" style="font-family: Times New Roman, Times, Serif; text-align: right">510,475</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Less current portion</td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_98B_eus-gaap--DebtCurrent_iNI_di_c20230930_z9fb3gRYLdg9" style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">(50,058</td> <td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left">)</td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_988_eus-gaap--DebtCurrent_iNI_di_c20221231_zeSIpKKGmET6" style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">(71,426</td> <td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: justify; padding-bottom: 2.5pt">Long-term debt, net of unamortized debt discount and current portion</td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td> <td id="xdx_980_eus-gaap--LongTermDebtNoncurrent_iI_c20230930_zPjwHvUcLtxi" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">311,431</td> <td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td> <td id="xdx_98E_eus-gaap--LongTermDebtNoncurrent_iI_c20221231_zgdRYecSgZ67" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">439,049</td> <td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> </table> Future maturities of long-term debt are as follows: Schedule of Maturities of Long-Term Debt <table cellpadding="0" cellspacing="0" id="xdx_306_134_zjGUubLmMe11" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Long-Term Debt (Details 1)"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" id="xdx_493_20230930_z88lrVy2dXJj"> </td></tr> <tr style="vertical-align: bottom"> <td colspan="4">Twelve months ending September 30,</td></tr> <tr id="xdx_40A_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_zTotBDrcuNs" style="background-color: rgb(204,238,255)"> <td style="vertical-align: top; width: 50%; text-align: justify">2024</td> <td style="vertical-align: top; width: 6%; text-align: justify">$</td> <td style="vertical-align: top; width: 38%; text-align: right">50,058</td> <td style="width: 6%"> </td></tr> <tr id="xdx_405_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_z6sqjfZ2mVbb" style="background-color: White"> <td style="vertical-align: top; text-align: justify">2025</td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: right">52,934</td> <td> </td></tr> <tr id="xdx_400_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_zWG8oml8sPx1" style="background-color: rgb(204,238,255)"> <td style="vertical-align: top; text-align: justify">2026</td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: right">50,982</td> <td> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtMaturingInYearsTwoAndThree_iI_zm5GU6aGDNe5" style="background-color: White"> <td style="vertical-align: top; text-align: justify">2027</td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: right">49,561</td> <td> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_zUsPYrM1L2Ae" style="background-color: rgb(204,238,255)"> <td style="vertical-align: top; text-align: justify">2028</td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: right">27,963</td> <td> </td></tr> <tr id="xdx_401_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_zbXNV0Ba8wa3" style="background-color: White"> <td style="vertical-align: top; text-align: justify">Thereafter</td> <td style="border-bottom: black 1pt solid; vertical-align: top; text-align: justify"> </td> <td style="border-bottom: black 1pt solid; vertical-align: top; text-align: right">129,991</td> <td> </td></tr> <tr id="xdx_40C_eus-gaap--LongTermDebt_iI_zTfYwgAEQi2l" style="background-color: rgb(204,238,255)"> <td style="vertical-align: top; text-align: justify">Total</td> <td style="border-bottom: black 1.5pt double; vertical-align: top; text-align: justify">$</td> <td style="border-bottom: black 1.5pt double; vertical-align: top; text-align: right">361,489</td> <td> </td></tr> </table>

Schedule of long term debt payment <table cellpadding="0" cellspacing="0" id="xdx_30A_134_zy8PBx78ip2i" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Long-Term Debt (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">September 30, 2023</td> <td style="font-family: Times New Roman, Times, Serif; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">December 31, 2022</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: justify">Senior secured promissory notes – various investors. Monthly payments of interest only at 10% plus deferred interest of 5% accrued monthly to be paid at maturity. A minimum of one year interest is due at maturity. Matures the earlier of (a) May 15, 2023, (b) the closing of a qualified subsequent financing or (c) the closing of a change of control. The notes are senior to all other debt and are secured by substantially all assets of the Company. The notes included detachable warrants to purchase 482,268 shares of common stock at an exercise price of $3.32 per share (see Note 10 – Stockholders’ Equity in Item 1 – Financial Statements of Part I – Financial Information). Debt issuance costs and discount totaling $1,287,160 at date of issuance were being amortized and recognized as additional interest expense over the term of the notes using the straight-line method because it was not substantially different from the effective interest rate method. We determined the expected life of the notes to be the contractual term. Interest expense related to these notes includes amortization of debt issuance costs and discount in the amount of $0 and $1,196,843, respectively, for the three months and nine months ended September 30, 2022, respectively. The notes were paid in full in April 2022. </td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td> <td id="xdx_980_eus-gaap--LongTermDebt_iI_c20230930__us-gaap--LongtermDebtTypeAxis__custom--SeniorSecuredPromissoryNotesMember_zu2E1BAkZbv6" style="font-family: Times New Roman, Times, Serif; text-align: right">—</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td> <td id="xdx_987_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--SeniorSecuredPromissoryNotesMember_zSYhmgsZ52z5" style="font-family: Times New Roman, Times, Serif; text-align: right">—</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 56%; font-family: Times New Roman, Times, Serif; text-align: justify">Note payable – bank. Payable in monthly installments of $332, including interest at 5.8% per annum, due August 2025, secured by equipment and personally guaranteed by a co-founder.</td> <td style="width: 8%; font-family: Times New Roman, Times, Serif"> </td> <td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_981_eus-gaap--LongTermDebt_iI_c20230930__us-gaap--LongtermDebtTypeAxis__us-gaap--NotesPayableToBanksMember_zWzRoJiUKBif" style="width: 12%; font-family: Times New Roman, Times, Serif; text-align: right">7,213</td> <td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="width: 8%; font-family: Times New Roman, Times, Serif"> </td> <td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_987_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__us-gaap--NotesPayableToBanksMember_zoU4N5Nx5wwb" style="width: 12%; font-family: Times New Roman, Times, Serif; text-align: right">9,825</td> <td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: justify">Note payable – credit union. Payable in monthly installments of $508, including interest at 5.45% per annum, due July 2026, secured by a vehicle and personally guaranteed by a co-founder.</td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_983_eus-gaap--LongTermDebt_iI_c20230930__us-gaap--LongtermDebtTypeAxis__custom--NotePayableCreditUnionMember_z6Z8spHtDLjj" style="font-family: Times New Roman, Times, Serif; text-align: right">15,514</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_98F_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableCreditUnionMember_zfhsTgyta9mk" style="font-family: Times New Roman, Times, Serif; text-align: right">19,364</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: justify">Note payable – SBA. Economic Injury Disaster Loan payable in monthly installments of $731, including interest at 3.75% per annum, due May 2050, and personally guaranteed by a co-founder.</td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_98C_eus-gaap--LongTermDebt_iI_c20230930__us-gaap--LongtermDebtTypeAxis__custom--NotePayableSBAMember_z3mXhXacRPZa" style="font-family: Times New Roman, Times, Serif; text-align: right">147,735</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_985_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableSBAMember_zmjRl5jKS2pa" style="font-family: Times New Roman, Times, Serif; text-align: right">150,114</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: justify">Note payable – individual. Monthly payments of interest only at 10% per annum, matured December 31, 2021 resulting in the entire principal balance recorded in current portion of long-term debt on the accompanying Balance Sheets for the year ending December 31, 2021; pursuant to the note, the past due balance is subject to 1% additional monthly interest which increases one percent for each month beyond maturity date, unsecured. The Company remained in compliance with the extended maturity interest payments and paid the note in full in April 2022.</td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_98B_eus-gaap--LongTermDebt_iI_c20230930__us-gaap--LongtermDebtTypeAxis__custom--NotePayableIndividualMember_zgZhqMNgTbPj" style="font-family: Times New Roman, Times, Serif; text-align: right">—</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_98C_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableIndividualMember_zbVAN2AVINy4" style="font-family: Times New Roman, Times, Serif; text-align: right">—</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: justify">Note payable – finance company. Payable in monthly installments of $994, including interest at 8.5% per annum, due July 2026, secured by a vehicle and personally guaranteed by a stockholder. The Note was paid in full September 2022.</td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_98D_eus-gaap--LongTermDebt_iI_c20230930__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompanyMember_zCd81AxtILH8" style="font-family: Times New Roman, Times, Serif; text-align: right">—</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_980_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompanyMember_zMkCo5LyeyF3" style="font-family: Times New Roman, Times, Serif; text-align: right">—</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: justify">Note payable – finance company. Payable in monthly installments of $2,204, including interest at 11.21% per annum, due August 2026, secured by a vehicle and personally guaranteed by a co-founder. The note was paid in full January 2023.</td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_983_eus-gaap--LongTermDebt_iI_c20230930__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompany1Member_zoQEMg6apxVk" style="font-family: Times New Roman, Times, Serif; text-align: right">—</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_98D_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompany1Member_zhaiJhr26jC" style="font-family: Times New Roman, Times, Serif; text-align: right">79,963</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Notes payable – The Company has acquired six notes payable to GM Financial for vehicles. In April 2022, the Company secured a commercial line up to $300,000 to be used to finance vehicle purchases. The agreement expired in April 2023 but was renewed for a commercial line up to $350,000 and prevailing GM Financial existing term notes will remain. The new agreement expires in April 2024. One note was paid off when the corresponding vehicle was sold in May 2023, so there are five notes remaining at September 30, 2023. The notes are currently payable in aggregate monthly installments of $4,084, including interest at rates ranging from 5.89% to 7.29% per annum, mature at various dates from October 2027 to May of 2028, and are secured by the related vehicles. Two of the notes are personally guaranteed by a co-founder.</td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_989_eus-gaap--LongTermDebt_iI_c20230930__us-gaap--LongtermDebtTypeAxis__custom--GMFinancialMember_zYWmn3bXZ9Ri" style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">191,027</td> <td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_980_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--GMFinancialMember_zHD2sHkbLt8c" style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">251,209</td> <td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: left">Total</td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td> <td id="xdx_98C_eus-gaap--LongTermDebt_iI_c20230930_zOorhTjIBqxh" style="font-family: Times New Roman, Times, Serif; text-align: right">361,489</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="font-family: Times New Roman, Times, Serif"> </td> <td style="font-family: Times New Roman, Times, Serif; text-align: left">$</td> <td id="xdx_983_eus-gaap--LongTermDebt_iI_c20221231_zrd187XCFUzi" style="font-family: Times New Roman, Times, Serif; text-align: right">510,475</td> <td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-family: Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Less current portion</td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_98B_eus-gaap--DebtCurrent_iNI_di_c20230930_z9fb3gRYLdg9" style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">(50,058</td> <td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left">)</td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td id="xdx_988_eus-gaap--DebtCurrent_iNI_di_c20221231_zeSIpKKGmET6" style="border-bottom: Black 1pt solid; font-family: Times New Roman, Times, Serif; text-align: right">(71,426</td> <td style="padding-bottom: 1pt; font-family: Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-family: Times New Roman, Times, Serif; text-align: justify; padding-bottom: 2.5pt">Long-term debt, net of unamortized debt discount and current portion</td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td> <td id="xdx_980_eus-gaap--LongTermDebtNoncurrent_iI_c20230930_zPjwHvUcLtxi" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">311,431</td> <td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td> <td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td> <td id="xdx_98E_eus-gaap--LongTermDebtNoncurrent_iI_c20221231_zgdRYecSgZ67" style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">439,049</td> <td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td></tr> </table>

7213

9825

15514

19364

147735

150114

79963

191027

251209

361489

510475

50058

71426

311431

439049

Schedule of Maturities of Long-Term Debt <table cellpadding="0" cellspacing="0" id="xdx_306_134_zjGUubLmMe11" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Long-Term Debt (Details 1)"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" id="xdx_493_20230930_z88lrVy2dXJj"> </td></tr> <tr style="vertical-align: bottom"> <td colspan="4">Twelve months ending September 30,</td></tr> <tr id="xdx_40A_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_zTotBDrcuNs" style="background-color: rgb(204,238,255)"> <td style="vertical-align: top; width: 50%; text-align: justify">2024</td> <td style="vertical-align: top; width: 6%; text-align: justify">$</td> <td style="vertical-align: top; width: 38%; text-align: right">50,058</td> <td style="width: 6%"> </td></tr> <tr id="xdx_405_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_z6sqjfZ2mVbb" style="background-color: White"> <td style="vertical-align: top; text-align: justify">2025</td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: right">52,934</td> <td> </td></tr> <tr id="xdx_400_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_zWG8oml8sPx1" style="background-color: rgb(204,238,255)"> <td style="vertical-align: top; text-align: justify">2026</td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: right">50,982</td> <td> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtMaturingInYearsTwoAndThree_iI_zm5GU6aGDNe5" style="background-color: White"> <td style="vertical-align: top; text-align: justify">2027</td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: right">49,561</td> <td> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_zUsPYrM1L2Ae" style="background-color: rgb(204,238,255)"> <td style="vertical-align: top; text-align: justify">2028</td> <td style="vertical-align: top; text-align: justify"> </td> <td style="vertical-align: top; text-align: right">27,963</td> <td> </td></tr> <tr id="xdx_401_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_zbXNV0Ba8wa3" style="background-color: White"> <td style="vertical-align: top; text-align: justify">Thereafter</td> <td style="border-bottom: black 1pt solid; vertical-align: top; text-align: justify"> </td> <td style="border-bottom: black 1pt solid; vertical-align: top; text-align: right">129,991</td> <td> </td></tr> <tr id="xdx_40C_eus-gaap--LongTermDebt_iI_zTfYwgAEQi2l" style="background-color: rgb(204,238,255)"> <td style="vertical-align: top; text-align: justify">Total</td> <td style="border-bottom: black 1.5pt double; vertical-align: top; text-align: justify">$</td> <td style="border-bottom: black 1.5pt double; vertical-align: top; text-align: right">361,489</td> <td> </td></tr> </table>

50058

52934

50982

49561

27963

129991

361489

8. Stockholder Promissory Notes As of both September 30, 2023 and December 31, 2022, the Company had an outstanding principal balance of $825,000 due to stockholders under unsecured Promissory Notes Agreements (“Notes”). The Notes require monthly interest-only payments at 10% per annum. The Notes mature at various dates from January 2024 to December 2024 as follows: January 2024 - $125,000; August 2024 - $500,000 (this note would have matured at August 2023, but in June 2023, an agreement was signed extending the maturity date to August 2024); and December 2024 - $200,000. Interest paid to the stockholders under the Notes totaled $20,627 and $20,627 during the three months ended September 30, 2023 and September 30, 2022, respectively. Interest paid to the stockholders under the Notes totaled $61,881 and $61,881 during the nine months ended September 30, 2023 and September 30, 2022, respectively. There was no accrued interest as of September 30, 2023 or December 31, 2022 related to these Notes.

9. Commitments and Contingencies Operating Leases The Company leases its warehouses and office space under long-term lease arrangements. None of its leases include characteristics specified in ASC 842, Leases, that require classification as financing leases, and accordingly, these leases are accounted for as operating leases. The Company does not recognize a right-of-use asset and lease liability for short-term leases, which have terms of 12 months or less. For longer-term lease arrangements that are recognized on the Company’s Balance Sheet, the right-of-use asset and lease liability are initially measured at the commencement date based upon the present values of the lease payments due under the leases. The implicit interest rates of the Company’s lease arrangements are generally not readily determinable and as such, the Company applies an incremental borrowing rate, which is established based upon the information available at the lease commencement date, to determine the present value of lease payments due under the arrangement. Under ASC 842, the incremental borrowing rate (IBR) for leases must be (1) a rate of interest over a similar term, and (2) for an amount that is equal to the lease payments. The Company uses both the Federal Reserve Economic Data (FRED) U.S. corporate debt effective yield and the U.S. Treasury rates adjusted for credit spread as the primary data points for purposes of determining the IBR. In the first quarter of 2022, the Company entered into two new long-term, non-cancelable operating lease agreements for office and warehouse space resulting in the Company recognizing an additional lease liability totaling of $2,348,509, representing the present value of the lease payments discounted using an effective interest rate of 8.07% and 8.86%, and corresponding right-of-use assets of $2,348,509. The leases expire in December 2026 and December 2028. The second lease contains one three-year option to renew. The lease is guaranteed by a co-founder. In the first quarter of 2021, the Company entered into a long-term, non-cancelable operating lease agreement for office and warehouse space resulting in the Company recognizing an additional lease liability totaling of $1,268,089, representing the present value of the lease payments discounted using an effective interest rate of 7.47% and a corresponding right-of-use asset of $1,268,089. The lease expires in January 2028 and contains one three-year option to renew. The lease is guaranteed by a co-founder. The Company has two other leases—one that expired in January 2023 and one that expires in February 2025. The leases generally provide for annual increases based on a fixed amount and generally require the Company to pay real estate taxes, insurance, and repairs. Both leases are guaranteed by a co-founder. The following is a summary of total lease costs during the three months and nine months ended September 30, 2023 and 2022: Schedule of lease cost <table cellpadding="0" cellspacing="0" id="xdx_30B_134_zOChwuWPpONg" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Commitments and Contingencies (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td id="xdx_496_20230701__20230930_zpCtb6u0TWQd" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" id="xdx_49A_20220701__20220930_zjn2Ukg1guri" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td id="xdx_491_20230101__20230930_zcjxah3v4pwb" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" id="xdx_491_20220101__20220930_z1mY7KClAx0i" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Three Months Ended September 30,</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Nine Months Ended September 30,</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="3" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">2023</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="3" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">2022</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="3" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">2023</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="3" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">2022</td></tr> <tr id="xdx_40C_eus-gaap--OperatingLeaseCost_zdHXFyt8Q7Vk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 40%; text-align: justify">Operating lease cost</td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">187,315</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">198,795</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">562,660</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">561,949</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--ShortTermLeaseCost_zgwvc8sv9ttj" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Short-term lease costs</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">— </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">450</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">150</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">3,077</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--VariableLeaseCost_z768GSysIESf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Variable lease costs</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">— </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">— </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">— </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">— </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--SubleaseIncome_iN_di_z0LQlFs692Q3" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Sublease income</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(10,440</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(25,022</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(39,476</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(98,364</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--LeaseCost_z86NS0NEpHNk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">176,875</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">174,223</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">523,334</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">466,662</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The weighted-average remaining lease term was 4.78 years and 5.49 years as of September 30, 2023 and December 31, 2022, respectively. The weighted average discount rate was 8.48% and 8.48%, as of September 30, 2023 and December 31, 2022, respectively. Operating cash flows from the operating leases totaled $116,591 and $115,442 for the three months ended September 30, 2023 and 2022, respectively, and $350,794 and $322,112 for the nine months ended September 30, 2023 and 2022, respectively. The total lease liability as of September 30, 2023 and December 31, 2022 was $2,883,217 and $3,220,019, respectively. The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of September 30, 2023, for years ending September 30: Schedule of future minimum lease payment <table cellpadding="0" cellspacing="0" id="xdx_302_134_z0HXTQAeHOf3" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Commitments and Contingencies (Details 1)"> <tr style="vertical-align: top"> <td> </td> <td colspan="3" id="xdx_496_20230930_zqFoQwRjYQfd" style="text-align: center">Total</td></tr> <tr id="xdx_406_eus-gaap--PurchaseObligationFutureMinimumPaymentsRemainderOfFiscalYear_iI_znS99N1KgNG1" style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="width: 73%">2024</td> <td style="width: 5%; text-align: right">$</td> <td style="width: 21%; text-align: right">731,243</td> <td style="width: 1%"> </td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_znalB1v5wi7f" style="vertical-align: top; background-color: White"> <td>2025</td> <td style="text-align: right"> </td> <td style="text-align: right">725,589</td> <td> </td></tr> <tr id="xdx_407_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_zJS3yuqzzhm9" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>2026</td> <td style="text-align: right"> </td> <td style="text-align: right">727,150</td> <td> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_zoHsE6MDZw31" style="vertical-align: top; background-color: White"> <td>2027</td> <td style="text-align: right"> </td> <td style="text-align: right">703,541</td> <td> </td></tr> <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_z9jztcz5qWF" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>2028</td> <td style="text-align: right"> </td> <td style="text-align: right">532,833</td> <td> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_zeWcnKvm6tf2" style="vertical-align: top; background-color: White"> <td>Thereafter</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">112,569</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr id="xdx_406_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_zeoRzoYcHEtc" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Total future minimum lease payments</td> <td style="text-align: right">$</td> <td style="text-align: right">3,532,925</td> <td> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_z6rqGlGgqvL5" style="vertical-align: top; background-color: White"> <td>Less imputed interest</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(649,708</td> <td style="border-bottom: black 1pt solid">)</td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_zSMg30yILxG4" style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td> <td style="border-bottom: Black 2.5pt double; text-align: right">$</td> <td style="border-bottom: Black 2.5pt double; text-align: right">2,883,217 </td> <td style="padding-bottom: 2.5pt"> </td></tr> <tr style="vertical-align: top; background-color: White"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr id="xdx_40A_eus-gaap--OperatingLeaseLiabilityCurrent_iI_zAeEkhFBNy9h" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Current lease liability</td> <td style="text-align: right">$</td> <td style="text-align: right">506,743</td> <td> </td></tr> <tr id="xdx_40D_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zgPRi5p0tFGl" style="vertical-align: top; background-color: White"> <td>Noncurrent lease liability</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">2,376,474</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiability_iI_zZFLI6RvWVh4" style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td> <td style="border-bottom: Black 2.5pt double; text-align: right">$</td> <td style="border-bottom: Black 2.5pt double; text-align: right">2,883,217 </td> <td style="padding-bottom: 2.5pt"> </td></tr> </table> Subleases The Company subleases office and warehouse space under one of its existing operating leases with similar terms as the Company’s lease agreements. Because the Company is not relieved of its primary obligations under the original lease, the Company accounts for the subleases as a lessor. Sublease rental income is recorded based on the contractual rental payments which are not substantially different from recognition on a straight-line basis over the lease term and totaled $10,440 and $25,022 during the three months ended September 30, 2023 and 2022, respectively, and $39,476 and $98,364 during the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023 and December 31, 2022, deferred income and a sublease deposit totaled $4,445 and $14,168, respectively, and is included in accrued expenses and other current liabilities on the accompanying Balance Sheets. The following are the total future minimum sublease payments as of September 30, 2023: Schedule of future minimum sublease payments <table cellpadding="0" cellspacing="0" id="xdx_30A_134_ziZ4s47ADuQ2" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Commitments and Contingencies (Details 2)"> <tr style="vertical-align: bottom"> <td style="width: 77%">Twelve months ending September 30,</td> <td style="width: 4%"> </td> <td id="xdx_49A_20230930_zU4ARZkGlgTi" style="width: 17%"> </td> <td style="width: 2%"> </td></tr> <tr id="xdx_402_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactionsWithinOneYear_iI_zViBC96lzPGb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>2024</td> <td style="text-align: right">$</td> <td style="text-align: right">42,491</td> <td> </td></tr> <tr id="xdx_40D_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactionsWithinTwoYears_iI_zUwuxibF07l" style="vertical-align: bottom; background-color: White"> <td>2025</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">17,922</td> <td style="border-bottom: Black 1pt solid"> </td></tr> <tr id="xdx_404_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactions_iI_zcBEZH0QOODb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right">Total future minimum lease payments </td> <td style="border-bottom: black 2.25pt double; text-align: right">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">60,413</td> <td style="border-bottom: black 2.25pt double"> </td></tr> </table> Litigation The Company may be involved from time to time in litigation or claims arising in the ordinary course of its business. While the ultimate liability, if any, arising from these claims cannot be determined with certainty, the Company believes that the resolution of any such matters will not likely have a material adverse effect on the Company’s financial statements. On November 22, 2022, Expion360 Inc. (the “Company”) received notice of a complaint (the “Complaint”) filed against it in Oregon state court by Ravi Sinha. The Complaint alleges, inter alia, that Mr. Sinha is entitled to 282,284 shares of the Company’s common stock, or in the alternative, $300,000 plus interest in connection with services he previously rendered the Company as its chief executive officer. On March 21, 2023, the Company entered into a settlement agreement with Mr. Sinha and the matter has been resolved with cash and the issuance of common stock (see Note 10 – Stockholders’ Equity in Item 1 – Financial Statements of Part I – Financial Information).

Schedule of lease cost <table cellpadding="0" cellspacing="0" id="xdx_30B_134_zOChwuWPpONg" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Commitments and Contingencies (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td id="xdx_496_20230701__20230930_zpCtb6u0TWQd" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" id="xdx_49A_20220701__20220930_zjn2Ukg1guri" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td id="xdx_491_20230101__20230930_zcjxah3v4pwb" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="2" id="xdx_491_20220101__20220930_z1mY7KClAx0i" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Three Months Ended September 30,</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="7" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Nine Months Ended September 30,</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="3" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">2023</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="3" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">2022</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="3" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">2023</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="3" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">2022</td></tr> <tr id="xdx_40C_eus-gaap--OperatingLeaseCost_zdHXFyt8Q7Vk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 40%; text-align: justify">Operating lease cost</td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">187,315</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">198,795</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">562,660</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 3%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">561,949</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--ShortTermLeaseCost_zgwvc8sv9ttj" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Short-term lease costs</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">— </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">450</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">150</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">3,077</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--VariableLeaseCost_z768GSysIESf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Variable lease costs</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">— </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">— </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">— </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">— </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--SubleaseIncome_iN_di_z0LQlFs692Q3" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; padding-bottom: 1pt">Sublease income</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(10,440</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(25,022</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(39,476</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(98,364</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--LeaseCost_z86NS0NEpHNk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">176,875</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">174,223</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Times New Roman, Times, Serif; text-align: right">523,334</td><td style="padding-bottom: 2.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">466,662</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

187315

198795

562660

561949

450

150

3077

10440

25022

39476

98364

176875

174223

523334

466662

Schedule of future minimum lease payment <table cellpadding="0" cellspacing="0" id="xdx_302_134_z0HXTQAeHOf3" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Commitments and Contingencies (Details 1)"> <tr style="vertical-align: top"> <td> </td> <td colspan="3" id="xdx_496_20230930_zqFoQwRjYQfd" style="text-align: center">Total</td></tr> <tr id="xdx_406_eus-gaap--PurchaseObligationFutureMinimumPaymentsRemainderOfFiscalYear_iI_znS99N1KgNG1" style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="width: 73%">2024</td> <td style="width: 5%; text-align: right">$</td> <td style="width: 21%; text-align: right">731,243</td> <td style="width: 1%"> </td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_znalB1v5wi7f" style="vertical-align: top; background-color: White"> <td>2025</td> <td style="text-align: right"> </td> <td style="text-align: right">725,589</td> <td> </td></tr> <tr id="xdx_407_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_zJS3yuqzzhm9" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>2026</td> <td style="text-align: right"> </td> <td style="text-align: right">727,150</td> <td> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_zoHsE6MDZw31" style="vertical-align: top; background-color: White"> <td>2027</td> <td style="text-align: right"> </td> <td style="text-align: right">703,541</td> <td> </td></tr> <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_z9jztcz5qWF" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>2028</td> <td style="text-align: right"> </td> <td style="text-align: right">532,833</td> <td> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_zeWcnKvm6tf2" style="vertical-align: top; background-color: White"> <td>Thereafter</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">112,569</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr id="xdx_406_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_zeoRzoYcHEtc" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Total future minimum lease payments</td> <td style="text-align: right">$</td> <td style="text-align: right">3,532,925</td> <td> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_z6rqGlGgqvL5" style="vertical-align: top; background-color: White"> <td>Less imputed interest</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(649,708</td> <td style="border-bottom: black 1pt solid">)</td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_zSMg30yILxG4" style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td> <td style="border-bottom: Black 2.5pt double; text-align: right">$</td> <td style="border-bottom: Black 2.5pt double; text-align: right">2,883,217 </td> <td style="padding-bottom: 2.5pt"> </td></tr> <tr style="vertical-align: top; background-color: White"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr id="xdx_40A_eus-gaap--OperatingLeaseLiabilityCurrent_iI_zAeEkhFBNy9h" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Current lease liability</td> <td style="text-align: right">$</td> <td style="text-align: right">506,743</td> <td> </td></tr> <tr id="xdx_40D_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zgPRi5p0tFGl" style="vertical-align: top; background-color: White"> <td>Noncurrent lease liability</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">2,376,474</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiability_iI_zZFLI6RvWVh4" style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td> <td style="border-bottom: Black 2.5pt double; text-align: right">$</td> <td style="border-bottom: Black 2.5pt double; text-align: right">2,883,217 </td> <td style="padding-bottom: 2.5pt"> </td></tr> </table>

731243

725589

727150

703541

532833

112569

3532925

649708

2883217

506743

2376474

2883217

Schedule of future minimum sublease payments <table cellpadding="0" cellspacing="0" id="xdx_30A_134_ziZ4s47ADuQ2" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Commitments and Contingencies (Details 2)"> <tr style="vertical-align: bottom"> <td style="width: 77%">Twelve months ending September 30,</td> <td style="width: 4%"> </td> <td id="xdx_49A_20230930_zU4ARZkGlgTi" style="width: 17%"> </td> <td style="width: 2%"> </td></tr> <tr id="xdx_402_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactionsWithinOneYear_iI_zViBC96lzPGb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>2024</td> <td style="text-align: right">$</td> <td style="text-align: right">42,491</td> <td> </td></tr> <tr id="xdx_40D_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactionsWithinTwoYears_iI_zUwuxibF07l" style="vertical-align: bottom; background-color: White"> <td>2025</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">17,922</td> <td style="border-bottom: Black 1pt solid"> </td></tr> <tr id="xdx_404_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactions_iI_zcBEZH0QOODb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right">Total future minimum lease payments </td> <td style="border-bottom: black 2.25pt double; text-align: right">$</td> <td style="border-bottom: black 2.25pt double; text-align: right">60,413</td> <td style="border-bottom: black 2.25pt double"> </td></tr> </table>

42491

17922

60413

10. Stockholders’ Equity The Company is authorized to issue an aggregate of 220,000,000 shares of capital stock, par value $0.001 per share, consisting of 200,000,000 shares of common stock and 20,000,000 shares of preferred stock. On March 31, 2023, at the closing price of $4.84 per share, the Company issued 52,000 shares of common stock as part of the settlement agreement with Mr. Sinha dated March 21, 2023. As of September 30, 2023 and December 31, 2022, 6,910,717 and 6,802,464 shares, respectively, of common stock were issued and outstanding. No shares of preferred stock have been issued. A holder of common stock is entitled to one vote for each share of common stock. The holders of common stock have no conversion, redemption or preemptive rights and shall be entitled to receive dividends when, as, and if declared by the board of directors. Upon dissolution, liquidation, or winding up of the Company, after payment or provision for payment of debts and other liabilities of the Company, subject to the rights, if any, of the holders of any class or series stock having a preference over the right to participate with common stock with respect to the distribution of assets of the Company upon such dissolution, liquidation, or winding up of the Company, the holders of common stock shall be entitled to receive the remaining assets of the Company available for distribution to its stockholders ratably in proportion to the number of shares of common stock held. Since no shares of preferred stock have been issued, no rights and privileges of preferred stockholders have been defined. Initial Public Offering On April 1, 2022, the Company completed an initial public offering (“IPO”). A total of 2,466,750 shares of common stock were sold at $7.00 per share in the IPO, for total gross proceeds of $17,267,250. The Company incurred IPO costs of $2,494,763 resulting in net proceeds of $14,772,487. Additionally, during the year ended December 31, 2022, the Company issued 35,714 shares of common stock at $7.00 per share to an outside third party in exchange for IPO services. The fair value of the shares of $249,998 were recorded as an increase to common stock of $36 (35,714 shares at $.001 par value) and additional paid in capital of $249,962 and a corresponding reduction to additional paid in capital of $249,998, resulting in a net decrease in additional paid in capital of $36. Warrants/Options On August 10, 2023, the Company issued 25,000 warrants to their investor relations firm in accordance with a letter of engagement signed July 22, 2022, to purchase 25,000 shares of common stock at an exercise price of $5.00 per share. The warrants expire 2 years from date of grant (August 9, 2025). The fair value of the warrants was determined at date of issuance using the Black-Scholes option-pricing model and following assumptions: per share price of common stock on date of grant $5.20, expected dividend yield of 0%, expected volatility of 88%, risk-free interest rate of 4.82% and expected life based on contractual life of 2 years. The fair value of $65,046 was recorded as an increase in additional paid-in capital and expensed to Legal and Professional Services. On April 1, 2022, the Company issued warrants to IPO underwriters to purchase 148,005 shares of common stock at an exercise price of $9.10 per share. The warrants are exercisable 180 days after grant (September 27, 2022) and expire 5 years from date of grant (March 31, 2027). The fair value of the warrants was determined at date of issuance using the Black-Scholes option-pricing model and the following assumptions: per share price of common stock on date of grant of $7, expected dividend yield of 0%, expected volatility of 110.03%, risk-free interest rate of 2.55% and expected life based on contractual life of 5 years. The fair value of $916,238 was recorded as an increase in additional-paid-in capital and a reduction to additional paid-in capital since the warrants were issued as IPO fees to underwriters, resulting in a zero impact to additional paid-in capital. During the nine months ended September 30, 2023, 15,000 warrants exercisable at $3.32 per share were exercised on a cash basis which resulted in the issuance of 15,000 shares of common stock. In addition, 22,606 warrants exercisable at $3.32 per share were exercised using the cashless conversion option, which resulted in the issuance of 10,151 shares of common stock. This leaves 521,825 warrants remaining with an exercise price of $3.32. During the nine months ended September 30, 2023, 73,000 warrants exercisable at $2.90 per share were exercised using the cashless conversion option which resulted in the issuance of 31,102 shares of common stock. This leaves 78,000 warrants remaining with an exercise price of $2.90. As of September 30, 2023 and December 31, 2022, a total of 772,830 and 858,436 warrants were issued and outstanding, respectively. As of September 30, 2023 and December 31, 2022, a total of 30,000 options, which were not issued under a specified plan, were outstanding. As of September 30, 2023, below is a summary of the various warrants/options issued and outstanding: Schedule of various warrants/options issued and outstanding <table cellpadding="0" cellspacing="0" id="xdx_301_134_zABaZfFVn2lh" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Stockholders Equity (Details)"> <tr style="vertical-align: bottom"> <td style="width: 47%; text-align: center">Number of warrants/non-plan options </td> <td style="width: 23%; text-align: center">Exercise Price</td> <td style="width: 30%; text-align: center">Weighted Average Remaining Life (Yrs)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_98D_ecustom--NumberOfWarrantsnonplanOptionsOne_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_zKbapBLbOX7e" style="border-top: black 1pt solid; white-space: nowrap; text-align: right">25,000</td> <td id="xdx_98C_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_zZsB6XKMCa3b" style="border-top: black 1pt solid; white-space: nowrap; text-align: right">$5.00</td> <td style="border-top: black 1pt solid; white-space: nowrap; text-align: right"><span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20230101__20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePricesMember_zKne3ypdaBk9">1.86</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_984_ecustom--NumberOfWarrantsnonplanOptionsTwo_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zo9CS0bUS2lb" style="white-space: nowrap; text-align: right">521,825</td> <td id="xdx_98A_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zCTh5SGjeYje" style="white-space: nowrap; text-align: right"> $3.32 </td> <td style="white-space: nowrap; text-align: right"><span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20230101__20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_zBp8z7jLCqMi">8.15</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_98C_ecustom--NumberOfWarrantsnonplanOptionsThree_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice3Member_zTzqyoS76RNe" style="white-space: nowrap; text-align: right">78,000</td> <td id="xdx_988_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice3Member_zt1ripov30J3" style="white-space: nowrap; text-align: right"> $2.90 </td> <td style="white-space: nowrap; text-align: right"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20230101__20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zclT3p4JMwBe">1.11</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_985_ecustom--NumberOfWarrantsnonplanOptionsFour_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice4Member_z7B1Ksldnlf" style="white-space: nowrap; text-align: right">30,000</td> <td id="xdx_983_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice4Member_zah7kwM60dXh" style="white-space: nowrap; text-align: right"> $3.32 </td> <td style="white-space: nowrap; text-align: right"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20230101__20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice3Member_zW8SCQXV7SH7">1.11</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_981_ecustom--NumberOfWarrantsnonplanOptionsFour_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice5Member_zcMZ6goDaZC6" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: right">148,005</td> <td id="xdx_984_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice5Member_z6UiFSsNAFFe" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: right"> $9.10 </td> <td style="border-bottom: black 1pt solid; white-space: nowrap; text-align: right"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20230101__20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice4Member_zgg7PK4bJNLd">3.50</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="white-space: nowrap; text-align: right"></td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td></tr> </table> Stock Option Plans As of September 30, 2023, the Company had adopted two stock-based compensation plans, the 2021 Incentive Award Plan and the 2021 Employee Stock Purchase Plan, both of which are described below and became effective upon the initial public offering. On May 2, 2022, the Company granted 829,500 options and on August 23, 2023, the Company granted 245,500 options and 48,780 restricted stock units (“RSUs”) under the 2021 Incentive Award Plan. No shares have been issued to date under the 2021 Employee Stock Purchase Plan. The compensation cost that has been charged against operations was $2,114,529 for the year ended December 31, 2022 and $124,785 for the three months ended September 30, 2023. 2021 Incentive Award Plan The purpose of the Company’s 2021 Incentive Award Plan is to enhance the Company’s ability to attract, retain and motivate persons who make (or are expected to make) important contributions to the Company by providing these individuals with equity ownership opportunities. Various stock-based awards may be granted under the plan to eligible employees, consultants, and non-employee directors. The number of shares issued under the plan is subject to limits and is adjusted annually. No more than 1,000,000 shares may be issued pursuant to the exercise of incentive stock options. The aggregate share limit will be subject to an annual increase on the first day of each calendar year ending on and including January 1, 2031, by a number of shares equal to the lesser of (i) a number equal to 5% of the aggregate number of shares of the Company's common stock outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares as is determined by the Company's board or committee. As of September 30, 2023, the aggregate number of shares that can be issued under the Plan is 1,199,623, of which 1,075,000 options and 48,780 RSUs have been granted. The number of shares granted, the exercise price, and the terms will be determined at date of grant; however, the exercise price shall not be less than 100% of the fair value on the grant date (110% for options granted to greater than 10% stockholders) and the term shall not exceed ten years. 2021 Employee Stock Purchase Plan The purpose of the Company’s 2021 Employee Stock Purchase Plan is to assist eligible employees of the Company in acquiring a stock ownership in the Company and to help such employees provide for their future security and to encourage them to remain in the employment of the Company. The plan consists of a Section 423 Component and Non-Section 423 Component. The Section 423 Component is intended to qualify as an employee stock purchase plan and also authorizes the grant of options. Options granted under the Non-Section 423 Component shall be granted pursuant to separate offerings containing sub-plans. The Company may make one or more offerings under the plan. The duration and timing of each offering period may be established or changed by the board, but in no event may an offering period exceed 27 months and in no event may the purchase period for the option exceed the duration of the offering period under which it is established. On each exercise date for an offering period, each participant shall automatically be deemed to have exercised the option to purchase the largest number of whole shares which can be purchased under the offering. Option awards are generally granted with an exercise price equal to 85% of the lesser of the fair market value of a share on (a) the applicable grant date and (b) the applicable exercise date, or such other price as designated by the administrator, provided that in no event shall the option price be less that the per share par value price. The maximum number of shares granted under the plan shall not exceed 2,500,000 shares. The fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected option term. Expected volatility was calculated based upon similar traded companies’ historical share price movements as adequate historical experience is not available to provide a reasonable estimate. Expected term is calculated based on the simplified method as adequate historical experience is not available to provide a reasonable estimate. The simplified method will continue to apply until enough historical experience is available to provide a reasonable estimate of the expected term. The risk-free interest rate is calculated based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term. The Company has historically not paid dividends and have no foreseeable plans to pay dividends. The Company has computed the fair value of all options granted during the year ended December 31, 2022 using the following assumptions: Schedule of assumptions used <table cellpadding="0" cellspacing="0" id="xdx_301_134_zP37qo3NCmWb" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Stockholders Equity (Details 1)"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 63%; padding-left: 12pt; text-indent: 6pt">Expected volatility </td> <td style="width: 6%"> </td> <td style="width: 6%"> </td> <td style="width: 25%; text-align: right"><span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_uPure_c20220101__20221231__srt--RangeAxis__srt--MinimumMember_z5Q8Iu4ucnH8" title="Expected Volatility">109.48% - <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_uPure_c20220101__20221231__srt--RangeAxis__srt--MaximumMember_zdJpsBdwwVzl" title="Expected Volatility">113.32%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 12pt; text-indent: 6pt">Expected dividends</td> <td> </td> <td> </td> <td style="text-align: right">None</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 12pt; text-indent: 6pt">Expected term (in years)</td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_907_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20220101__20221231__srt--RangeAxis__srt--MinimumMember_zdbmgFKkfCJ6" title="Expected term (in years)">2.5 – <span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20220101__20221231__srt--RangeAxis__srt--MaximumMember_zBce8gkxjiif" title="Expected term (in years)">5.01 </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 12pt; text-indent: 6pt">Risk free rate </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_uPure_c20220101__20221231__srt--RangeAxis__srt--MinimumMember_z2wORi2sMc9" title="Risk free rate">2.83% – <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_uPure_c20220101__20221231__srt--RangeAxis__srt--MaximumMember_z9fLngVTHOxa" title="Risk free rate">3.01%</td></tr> </table> The Company has computed the fair value of the 245,500 options granted during the nine months ended September 30, 2023 using the following assumptions: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left; text-indent: 6pt; padding-left: 12pt">Expected volatility </td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right"><span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_uPure_c20230101__20230930__srt--RangeAxis__srt--MinimumMember_zcwAmmtAG005" title="Expected volatility">105</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 6pt; padding-left: 12pt">Expected dividends</td><td> </td> <td style="text-align: left"> </td><td colspan="2" style="text-align: right">None</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 6pt; padding-left: 12pt">Expected term (in years)</td><td> </td> <td style="text-align: left"> </td><td colspan="2" style="text-align: right">6.0</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 6pt; padding-left: 12pt">Risk free rate </td><td> </td> <td style="text-align: left"> </td><td colspan="2" style="text-align: right">4.33%</td></tr> </table> The following table summarizes the Company’s stock option activity under the 2021 Incentive Plan: Schedule of stock option activity <table cellpadding="0" cellspacing="0" id="xdx_30A_134_zZo1xjomvR11" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Stockholders Equity (Details 2)"> <tr style="vertical-align: bottom"> <td style="width: 53%; text-align: center">(in thousands except number of options and per options data)</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 10%; text-align: center">Number of options</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 8%; text-align: center">Weighted average exercise price</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 10%; text-align: center">Weighted average remaining contractual term (in years)</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 8%; text-align: center">Aggregate intrinsic value (1)</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Outstanding at beginning of period</td> <td> </td> <td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zV1RbkHg5RKc" style="text-align: right" title="Beginning balance">829,500</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">$</td> <td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zqQTWpASTkz3" style="text-align: right">3.43</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td id="xdx_98A_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermone_c20230101__20230930_zoIxiPNl1wAa" style="text-align: right" title="Weighted average remaining contractual term (in years)">8.76</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td> </td></tr> <tr id="xdx_404_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_hus-gaap--AwardTypeAxis__us-gaap--OptionMember_zf1LTcykw98i" style="vertical-align: top; background-color: White"> <td>Granted</td> <td> </td> <td style="text-align: right">245,500</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zc7l5pLlrkOi" style="text-align: right" title="Granted">4.92</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td> </td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Exercised</td> <td> </td> <td style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td> </td></tr> <tr style="vertical-align: top; background-color: White"> <td>Forfeited</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Outstanding at end of period</td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zmtib1YqEBZ6" style="border-bottom: black 1pt solid; text-align: right">1,075,000</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">$</td> <td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zEJqQXdp4z4j" style="border-bottom: black 1pt solid; text-align: right">3.77</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td id="xdx_98A_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermTwo_c20230101__20230930_zyNJ9fklntAh" style="border-bottom: black 1pt solid; text-align: right">9.02</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">$</td> <td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iI_c20230930__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zZSCUdyZAHgd" style="border-bottom: black 1pt solid; text-align: right" title="Outstanding at end of period">567,595</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: White"> <td>Exercisable at end of period</td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOther_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zL0TfMxpgLk7" style="border-bottom: black 1pt solid; text-align: right" title="Exercisable shares">829,500</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">$</td> <td id="xdx_980_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zuYL48xG3eph" style="border-bottom: black 1pt solid; text-align: right">3.43</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermThree_c20230101__20230930_zDxeoYCBytaf" style="border-bottom: black 1pt solid; text-align: right">7.51</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">$</td> <td id="xdx_98D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_c20230930__us-gaap--AwardTypeAxis__us-gaap--OptionMember_z0zO4r5djEx3" style="border-bottom: black 1pt solid; text-align: right" title="Exercisable at end of period">567,595</td> <td style="border-bottom: black 1pt solid"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">(1)</td> <td style="text-align: justify">The aggregate intrinsic value of options outstanding and options exercisable at beginning of period is $0, as all options are out of the money.</td></tr> </table> During the three months ended September 30, 2023 and 2022, the weighted-average grant-date fair value of the options granted to employees and non-employees was $998,924 and $1,847,193, respectively. Unrecognized compensation expense related to employees was $234,737 as of September 30, 2023. The options granted in May 2022 were vested 100% at time of grant. The options granted in August 2023 began to vest in equal quarterly installments beginning September 30, 2023 and ending June 30, 2026. The following table summarizes the Company’s restricted stock unit (“RSU”) activity under the 2021 Incentive Plan: Share-Based Payment Arrangement, Restricted Stock Unit, Activity <table cellpadding="0" cellspacing="0" id="xdx_307_134_zUJ6sN1EO8pe" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Stockholders Equity (Details 3)"> <tr style="vertical-align: bottom"> <td style="width: 68%; text-align: center">(in thousands except number of options and per options data)</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 12%; text-align: center">Number of restricted stock awards</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 13%; text-align: center">Weighted average grant-date fair value</td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Nonvested at beginning of year</td> <td> </td> <td id="xdx_98F_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iS_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zZ2PPCLrj7d" style="text-align: right" title="Numbers of Shares beginning balance">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">$</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z6YprpuKHP6k" style="text-align: right" title="Begining balance">—</td></tr> <tr style="vertical-align: top; background-color: White"> <td>Granted</td> <td> </td> <td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zKzVANoGVwK9" style="text-align: right" title="Granted">48,780</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zSyN7aXs5ARe" style="text-align: right" title="Weighted avergare granted">239,998</td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Vested</td> <td> </td> <td style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td></tr> <tr style="vertical-align: top; background-color: White"> <td>Forfeited</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Nonvested at end of year</td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_98C_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iE_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z6xOLtHw31rg" style="border-bottom: black 1pt solid; text-align: right" title="Ending balance">48,780</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">$</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zUhwOgnif0R5" style="border-bottom: black 1pt solid; text-align: right" title="Weigthed Average Ending balance">239,998</td></tr> </table> There was $0.2 million of total unrecognized compensation cost related to non-vested RSUs that are expected to be recognized over a period of up to 0.70 years. Common Stock Reserved for Future Issuance The following is a summary of common stock shares reserved for future issuance as of September 30, 2023: Schedule of common stock shares reserved for future issuance <table cellpadding="0" cellspacing="0" id="xdx_305_134_zvYcYYRcQA6j" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Stockholders Equity (Details 4)"> <tr style="vertical-align: bottom"> <td style="padding-left: 12pt; text-indent: 6pt"> </td> <td> </td> <td> </td> <td id="xdx_49E_20230930_z1XzTdBLhml2" style="text-align: right"> </td> <td> </td></tr> <tr id="xdx_407_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__us-gaap--WarrantMember_zD7IQnOKj873" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 71%; padding-left: 12pt; text-indent: 6pt">Exercise of warrants </td> <td style="width: 10%"> </td> <td style="width: 1%"> </td> <td style="width: 17%; text-align: right">772,830</td> <td style="width: 1%"> </td></tr> <tr id="xdx_406_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__custom--UnrelatedToAnyPlanMember_zO8rm0iRvH5d" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 12pt; text-indent: 6pt">Exercise of options unrelated to any Plan</td> <td> </td> <td> </td> <td style="text-align: right">30,000</td> <td> </td></tr> <tr id="xdx_401_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__custom--StockOptionsMember_zI24wLcLgZ4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 12pt; text-indent: 6pt">Exercise of stock options – 2021 Incentive Award Plan</td> <td> </td> <td> </td> <td style="text-align: right">1,075,000</td> <td> </td></tr> <tr id="xdx_40F_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zzFie7Js2KOa" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 12pt; text-indent: 6pt">Exercise of restricted stock units – 2021 Incentive Award Plan</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">48,780</td> <td> </td></tr> <tr id="xdx_404_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_zCiODbzqpC4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 12pt; text-indent: 6pt">Total shares of common stock reserved for future issuances </td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">1,926,610</td> <td> </td></tr> </table>

Schedule of various warrants/options issued and outstanding <table cellpadding="0" cellspacing="0" id="xdx_301_134_zABaZfFVn2lh" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Stockholders Equity (Details)"> <tr style="vertical-align: bottom"> <td style="width: 47%; text-align: center">Number of warrants/non-plan options </td> <td style="width: 23%; text-align: center">Exercise Price</td> <td style="width: 30%; text-align: center">Weighted Average Remaining Life (Yrs)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_98D_ecustom--NumberOfWarrantsnonplanOptionsOne_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_zKbapBLbOX7e" style="border-top: black 1pt solid; white-space: nowrap; text-align: right">25,000</td> <td id="xdx_98C_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_zZsB6XKMCa3b" style="border-top: black 1pt solid; white-space: nowrap; text-align: right">$5.00</td> <td style="border-top: black 1pt solid; white-space: nowrap; text-align: right"><span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20230101__20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePricesMember_zKne3ypdaBk9">1.86</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_984_ecustom--NumberOfWarrantsnonplanOptionsTwo_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zo9CS0bUS2lb" style="white-space: nowrap; text-align: right">521,825</td> <td id="xdx_98A_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zCTh5SGjeYje" style="white-space: nowrap; text-align: right"> $3.32 </td> <td style="white-space: nowrap; text-align: right"><span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20230101__20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_zBp8z7jLCqMi">8.15</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_98C_ecustom--NumberOfWarrantsnonplanOptionsThree_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice3Member_zTzqyoS76RNe" style="white-space: nowrap; text-align: right">78,000</td> <td id="xdx_988_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice3Member_zt1ripov30J3" style="white-space: nowrap; text-align: right"> $2.90 </td> <td style="white-space: nowrap; text-align: right"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20230101__20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zclT3p4JMwBe">1.11</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_985_ecustom--NumberOfWarrantsnonplanOptionsFour_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice4Member_z7B1Ksldnlf" style="white-space: nowrap; text-align: right">30,000</td> <td id="xdx_983_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice4Member_zah7kwM60dXh" style="white-space: nowrap; text-align: right"> $3.32 </td> <td style="white-space: nowrap; text-align: right"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20230101__20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice3Member_zW8SCQXV7SH7">1.11</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_981_ecustom--NumberOfWarrantsnonplanOptionsFour_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice5Member_zcMZ6goDaZC6" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: right">148,005</td> <td id="xdx_984_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice5Member_z6UiFSsNAFFe" style="border-bottom: black 1pt solid; white-space: nowrap; text-align: right"> $9.10 </td> <td style="border-bottom: black 1pt solid; white-space: nowrap; text-align: right"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20230101__20230930__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice4Member_zgg7PK4bJNLd">3.50</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="white-space: nowrap; text-align: right"></td> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap"> </td></tr> </table> 25000

5.00

P1Y10M9D

521825

3.32

P8Y1M24D

78000

2.90

P1Y1M9D

30000

3.32

P1Y1M9D

148005

9.10

P3Y6M

Schedule of assumptions used <table cellpadding="0" cellspacing="0" id="xdx_301_134_zP37qo3NCmWb" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Stockholders Equity (Details 1)"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 63%; padding-left: 12pt; text-indent: 6pt">Expected volatility </td> <td style="width: 6%"> </td> <td style="width: 6%"> </td> <td style="width: 25%; text-align: right"><span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_uPure_c20220101__20221231__srt--RangeAxis__srt--MinimumMember_z5Q8Iu4ucnH8" title="Expected Volatility">109.48% - <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_uPure_c20220101__20221231__srt--RangeAxis__srt--MaximumMember_zdJpsBdwwVzl" title="Expected Volatility">113.32%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 12pt; text-indent: 6pt">Expected dividends</td> <td> </td> <td> </td> <td style="text-align: right">None</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 12pt; text-indent: 6pt">Expected term (in years)</td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_907_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20220101__20221231__srt--RangeAxis__srt--MinimumMember_zdbmgFKkfCJ6" title="Expected term (in years)">2.5 – <span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20220101__20221231__srt--RangeAxis__srt--MaximumMember_zBce8gkxjiif" title="Expected term (in years)">5.01 </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 12pt; text-indent: 6pt">Risk free rate </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_uPure_c20220101__20221231__srt--RangeAxis__srt--MinimumMember_z2wORi2sMc9" title="Risk free rate">2.83% – <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_dp_uPure_c20220101__20221231__srt--RangeAxis__srt--MaximumMember_z9fLngVTHOxa" title="Risk free rate">3.01%</td></tr> </table> The Company has computed the fair value of the 245,500 options granted during the nine months ended September 30, 2023 using the following assumptions: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left; text-indent: 6pt; padding-left: 12pt">Expected volatility </td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right"><span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_dp_uPure_c20230101__20230930__srt--RangeAxis__srt--MinimumMember_zcwAmmtAG005" title="Expected volatility">105</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 6pt; padding-left: 12pt">Expected dividends</td><td> </td> <td style="text-align: left"> </td><td colspan="2" style="text-align: right">None</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 6pt; padding-left: 12pt">Expected term (in years)</td><td> </td> <td style="text-align: left"> </td><td colspan="2" style="text-align: right">6.0</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 6pt; padding-left: 12pt">Risk free rate </td><td> </td> <td style="text-align: left"> </td><td colspan="2" style="text-align: right">4.33%</td></tr> </table>

1.0948

1.1332

P2Y6M

P5Y3D

0.0283

0.0301

1.05

P6Y

0.0433

Schedule of stock option activity <table cellpadding="0" cellspacing="0" id="xdx_30A_134_zZo1xjomvR11" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Stockholders Equity (Details 2)"> <tr style="vertical-align: bottom"> <td style="width: 53%; text-align: center">(in thousands except number of options and per options data)</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 10%; text-align: center">Number of options</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 8%; text-align: center">Weighted average exercise price</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 10%; text-align: center">Weighted average remaining contractual term (in years)</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 8%; text-align: center">Aggregate intrinsic value (1)</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Outstanding at beginning of period</td> <td> </td> <td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zV1RbkHg5RKc" style="text-align: right" title="Beginning balance">829,500</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">$</td> <td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zqQTWpASTkz3" style="text-align: right">3.43</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td id="xdx_98A_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermone_c20230101__20230930_zoIxiPNl1wAa" style="text-align: right" title="Weighted average remaining contractual term (in years)">8.76</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td> </td></tr> <tr id="xdx_404_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_hus-gaap--AwardTypeAxis__us-gaap--OptionMember_zf1LTcykw98i" style="vertical-align: top; background-color: White"> <td>Granted</td> <td> </td> <td style="text-align: right">245,500</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zc7l5pLlrkOi" style="text-align: right" title="Granted">4.92</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td> </td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Exercised</td> <td> </td> <td style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td> </td></tr> <tr style="vertical-align: top; background-color: White"> <td>Forfeited</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Outstanding at end of period</td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zmtib1YqEBZ6" style="border-bottom: black 1pt solid; text-align: right">1,075,000</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">$</td> <td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zEJqQXdp4z4j" style="border-bottom: black 1pt solid; text-align: right">3.77</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td id="xdx_98A_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermTwo_c20230101__20230930_zyNJ9fklntAh" style="border-bottom: black 1pt solid; text-align: right">9.02</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">$</td> <td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iI_c20230930__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zZSCUdyZAHgd" style="border-bottom: black 1pt solid; text-align: right" title="Outstanding at end of period">567,595</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: White"> <td>Exercisable at end of period</td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOther_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zL0TfMxpgLk7" style="border-bottom: black 1pt solid; text-align: right" title="Exercisable shares">829,500</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">$</td> <td id="xdx_980_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iE_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zuYL48xG3eph" style="border-bottom: black 1pt solid; text-align: right">3.43</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermThree_c20230101__20230930_zDxeoYCBytaf" style="border-bottom: black 1pt solid; text-align: right">7.51</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">$</td> <td id="xdx_98D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_c20230930__us-gaap--AwardTypeAxis__us-gaap--OptionMember_z0zO4r5djEx3" style="border-bottom: black 1pt solid; text-align: right" title="Exercisable at end of period">567,595</td> <td style="border-bottom: black 1pt solid"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">(1)</td> <td style="text-align: justify">The aggregate intrinsic value of options outstanding and options exercisable at beginning of period is $0, as all options are out of the money.</td></tr> </table>

829500

3.43

8.76

4.92

1075000

3.77

9.02

567595

829500

3.43

7.51

567595

Share-Based Payment Arrangement, Restricted Stock Unit, Activity <table cellpadding="0" cellspacing="0" id="xdx_307_134_zUJ6sN1EO8pe" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Stockholders Equity (Details 3)"> <tr style="vertical-align: bottom"> <td style="width: 68%; text-align: center">(in thousands except number of options and per options data)</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 12%; text-align: center">Number of restricted stock awards</td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: center"> </td> <td style="border-bottom: black 1pt solid; width: 13%; text-align: center">Weighted average grant-date fair value</td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Nonvested at beginning of year</td> <td> </td> <td id="xdx_98F_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iS_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zZ2PPCLrj7d" style="text-align: right" title="Numbers of Shares beginning balance">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">$</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z6YprpuKHP6k" style="text-align: right" title="Begining balance">—</td></tr> <tr style="vertical-align: top; background-color: White"> <td>Granted</td> <td> </td> <td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zKzVANoGVwK9" style="text-align: right" title="Granted">48,780</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zSyN7aXs5ARe" style="text-align: right" title="Weighted avergare granted">239,998</td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Vested</td> <td> </td> <td style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td></tr> <tr style="vertical-align: top; background-color: White"> <td>Forfeited</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Nonvested at end of year</td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_98C_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iE_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z6xOLtHw31rg" style="border-bottom: black 1pt solid; text-align: right" title="Ending balance">48,780</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">$</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20230101__20230930__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zUhwOgnif0R5" style="border-bottom: black 1pt solid; text-align: right" title="Weigthed Average Ending balance">239,998</td></tr> </table>

48780

239998

48780

239998

Schedule of common stock shares reserved for future issuance <table cellpadding="0" cellspacing="0" id="xdx_305_134_zvYcYYRcQA6j" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Stockholders Equity (Details 4)"> <tr style="vertical-align: bottom"> <td style="padding-left: 12pt; text-indent: 6pt"> </td> <td> </td> <td> </td> <td id="xdx_49E_20230930_z1XzTdBLhml2" style="text-align: right"> </td> <td> </td></tr> <tr id="xdx_407_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__us-gaap--WarrantMember_zD7IQnOKj873" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 71%; padding-left: 12pt; text-indent: 6pt">Exercise of warrants </td> <td style="width: 10%"> </td> <td style="width: 1%"> </td> <td style="width: 17%; text-align: right">772,830</td> <td style="width: 1%"> </td></tr> <tr id="xdx_406_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__custom--UnrelatedToAnyPlanMember_zO8rm0iRvH5d" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 12pt; text-indent: 6pt">Exercise of options unrelated to any Plan</td> <td> </td> <td> </td> <td style="text-align: right">30,000</td> <td> </td></tr> <tr id="xdx_401_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__custom--StockOptionsMember_zI24wLcLgZ4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 12pt; text-indent: 6pt">Exercise of stock options – 2021 Incentive Award Plan</td> <td> </td> <td> </td> <td style="text-align: right">1,075,000</td> <td> </td></tr> <tr id="xdx_40F_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zzFie7Js2KOa" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 12pt; text-indent: 6pt">Exercise of restricted stock units – 2021 Incentive Award Plan</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">48,780</td> <td> </td></tr> <tr id="xdx_404_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_zCiODbzqpC4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 12pt; text-indent: 6pt">Total shares of common stock reserved for future issuances </td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">1,926,610</td> <td> </td></tr> </table>

772830

30000

1075000

48780

1926610

11. Income Taxes The Company has incurred losses and consequently recorded no provision beyond the minimum or base tax rate for state or federal income taxes for the three or nine months ended September 30, 2023. The Company maintains a full valuation allowance on all deferred tax assets, as it has concluded that it is more likely than not that these assets will not be realized. As of September 30, 2023 and December 31, 2022, there were no material unrecognized tax benefits included in the accompanying balance sheets that would, if recognized, affect the effective tax rate. For the three months ended September 30, 2023, the Company accrued $1,380 for 2023 state income taxes, and for the three months ended September 30, 2022, the Company accrued and incurred state taxes of $0. For the nine months ended September 30, 2023, the Company has net state tax expenses totaling $1,341 due to a small refund, and for the nine months ended September 30, 2022, the Company incurred state taxes of $300.

12. 401(k) Plan The Company adopted a 401(k) Plan (“Plan”) for the benefit of its employees. Employees may contribute to the Plan within defined limits as defined by the Internal Revenue Service. Substantially all employees are eligible to participate. The Company has the option to make profit sharing contributions at its discretion. No profit-sharing contributions have been made.

13. Related Party Transactions As of September 30, 2023 and December 31, 2022, related party transactions consisted of Stockholder Promissory Notes (see Note 8 – Stockholder Promissory Notes in Item 1 – Financial Statements of Part I – Financial Information).

14. Subsequent Events The date to which events occurring after September 30, 2023, the date of the most recent Balance Sheets, have been evaluated for possible adjustment to the financial statements or disclosures is November 7, 2023, which is the date the financial statements were issued. On October 13, 2023, the Company held its Annual Meeting of Stockholders (the “Annual Meeting”) during which the Company’s stockholders approved an amendment to the Company’s 2021 Incentive Award Plan to increase by 250,000 the number of shares of Common Stock authorized for issuance under the plan. The Company filed an 8-K related to the results of the Annual Meeting on October 16, 2023. On October 12, 2023, the Company filed an 8-K related to a published press release introducing a pilot program to offer transformative solar and energy storage solutions in partnership with REPM Corp. <img alt="Icon Description automatically generated" src="image_001.jpg" style="height: 84px; width: 80px"/> Expion360 Inc. Up to 1,781,978 Shares of Common Stock PROSPECTUS The date of this prospectus is January 31, 2024 PART II INFORMATION NOT REQUIRED IN PROSPECTUS ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION The following table sets forth the various expenses to be incurred in connection with the sale and distribution of the Shares being registered hereby, all of which will be borne by us (except any underwriting discounts and commissions and expenses incurred for brokerage, accounting, tax or legal services or any other expenses incurred in disposing of the shares). All amounts shown are estimates except the SEC registration fee. <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; width: 56%; text-align: left; text-indent: -10pt">SEC Filing Fee</td> <td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 12%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">1,146.77</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Accounting Fees and Expenses</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">3,500</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Legal Fees and Expenses</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">80,000</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">Miscellaneous</td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td> <td style="border-bottom: Black 1pt solid; text-align: right">10,000</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">Total</td> <td style="padding-bottom: 2.5pt"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; text-align: right">94,646.77</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> ITEM 14. INDEMNIFICATION OF DIRECTORS AND OFFICERS Nevada Revised Statutes (“NRS”) 78.138(7) provides that, subject to limited statutory exceptions and unless the articles of incorporation or an amendment thereto (in each case filed on or after October 1, 2003) provide for greater individual liability, a director or officer is not individually liable to a corporation or its stockholders or creditors for any damages as a result of any act or failure to act in his or her capacity as a director or officer unless it is proven that: (i) the act or failure to act constituted a breach of his or her fiduciary duties as a director or officer and (ii) the breach of those duties involved intentional misconduct, fraud or a knowing violation of law. NRS 78.7502(1) provides that a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the corporation), by reason of the fact that the person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection with the action, suit or proceeding if the person (i) is not liable pursuant to NRS 78.138 or (ii) acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe the conduct was unlawful. NRS 78.7502(2) provides that a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that the person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses, including amounts paid in settlement and attorneys’ fees actually and reasonably incurred by the person in connection with the defense or settlement of the action or suit if the person (a) is not liable pursuant to NRS 78.138 or (ii) acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the corporation. To the extent that a director, officer, employee or agent of a corporation has been successful on the merits or otherwise in defense of any such action, suit or proceeding, or in defense of any claim, issue or matter therein, the corporation shall indemnify him or her against expenses, including attorneys’ fees, actually and reasonably incurred by him or her in connection with the defense. The termination of any action, suit or proceeding by judgment, order, settlement, conviction or upon a plea of nolo contendere or its equivalent, does not, of itself, create a presumption that the person is liable pursuant to NRS 78.138 or did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the corporation, or that, with respect to any criminal action or proceeding, he or she had reasonable cause to believe that the conduct was unlawful. Indemnification may not be made for any claim, issue or matter as to which such a person has been adjudged by a court of competent jurisdiction, after exhaustion of all appeals therefrom, to be liable to the corporation or for amounts paid in settlement to the corporation, unless and only to the extent that the court in which the action or suit was brought or other court of competent jurisdiction determines upon application that in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper. NRS 78.751(1) provides that any discretionary indemnification pursuant to NRS 78.7502 (unless ordered by a court or advanced pursuant to NRS 78.751(2)), may be made by the corporation only as authorized in the specific case upon a determination that indemnification of the director, officer, employee or agent is proper in the circumstances. The determination must be made (i) by the stockholders; (ii) by the board of directors by majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding; (iii) if a majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding so orders, by independent legal counsel in a written opinion; or (iv) if a quorum consisting of directors who were not parties to the action, suit or proceeding cannot be obtained, by independent legal counsel in a written opinion. NRS 78.751(2) provides that the corporation’s articles of incorporation or bylaws, or an agreement made by the corporation, may provide that the expenses of officers and directors incurred in defending a civil or criminal action, suit or proceeding must be paid by the corporation as they are incurred and in advance of the final disposition of the action, suit or proceeding, upon receipt of an undertaking by or on behalf of the director or officer to repay the amount if it is ultimately determined by a court of competent jurisdiction that the director or officer is not entitled to be indemnified by the corporation. Under the NRS, the indemnification pursuant to NRS 78.7502 and advancement of expenses authorized in or ordered by a court pursuant to NRS 78.751: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 27pt"> </td> <td style="width: 18pt">1.</td> <td style="text-align: justify">Does not exclude any other rights to which a person seeking indemnification or advancement of expenses may be entitled under the articles of incorporation or any bylaw, agreement, vote of stockholders or disinterested directors or otherwise, for either an action in the person’s official capacity or an action in another capacity while holding office, except that indemnification, unless ordered by a court pursuant to NRS 78.7502 or for the advancement of expenses made pursuant to NRS 78.751(2), may not be made to or on behalf of any director or officer if a final adjudication establishes that the director’s or officer’s acts or omissions involved intentional misconduct, fraud or a knowing violation of the law and was material to the cause of action; and</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 27pt"> </td> <td style="width: 18pt">2.</td> <td style="text-align: justify">Continues for a person who has ceased to be a director, officer, employee or agent and inures to the benefit of the heirs, executors and administrators of such a person.</td></tr> </table> A right to indemnification or to advancement of expenses arising under a provision of the articles of incorporation or any bylaw is not eliminated or impaired by an amendment to such provision after the occurrence of the act or omission that is the subject of the civil, criminal, administrative or investigative action, suit or proceeding for which indemnification or advancement of expenses is sought, unless the provision in effect at the time of such act or omission explicitly authorizes such elimination or impairment after such action or omission has occurred. The Articles of Incorporation of the Company provide that to the fullest extent permitted under the NRS (including, without limitation, to the fullest extent permitted under NRS 78.7502 and 78.751(3)) and other applicable law, we shall indemnify our directors and officers in their respective capacities as such and in any and all other capacities in which any of them serves at our request. The Articles of Incorporation further provide that the liability of its directors and officers shall be eliminated or limited to the fullest extent permitted by the NRS, and that if the NRS are amended to further eliminate or limit or authorize corporate action to further eliminate or limit the liability of directors or officers, the liability of our directors and officers shall be eliminated or limited to the fullest extent permitted by the NRS, as so amended from time to time; and in addition to any other rights of indemnification permitted by the laws of the State of Nevada or as may be provided for by in our Bylaws or by agreement, the expenses of directors and officers incurred in defending a civil or criminal action, suit or proceeding, involving alleged acts or omissions of such director or officer in his or her capacity as a director or officer of the Company, must be paid, by us or through insurance purchased and maintained by the Company or through other financial arrangements made by us, as they are incurred and in advance of the final disposition of the action, suit or proceeding, upon receipt of an undertaking by or on behalf of the director or officer to repay the amount if it is ultimately determined by a court of competent jurisdiction that he or she is not entitled to be indemnified by the Company. Further, we have entered into indemnification arrangements with each of its directors and executive officers that may be broader than the specific indemnification provisions contained in the NRS. Such arrangements may require us, among other things, to advance expenses and otherwise indemnify its executive officers and directors against certain liabilities that may arise by reason of their status or service as executive officers or directors, to the fullest extent permitted by law. We intend to enter into indemnification arrangements with any new directors and executive officers in the future. We also have director and officer insurance providing for indemnification for our directors and officers for certain liabilities, and such insurance provides for indemnification of our directors and officers for liabilities under the Securities Act. ITEM 15. RECENT SALES OF UNREGISTERED SECURITIES The following sets forth information regarding all unregistered securities sold by the Registrant since January 1, 2019. Each of the issuances was exclusively to “accredited investors” as defined in Regulation D under the Securities Act and in reliance on the exemptions available pursuant to Regulation D under, and Section 4(a)(2) of, the Securities Act). <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(1)</td> <td style="text-align: justify">In August and October 2020, we received proceeds totaling $270,000 from the issuance of four Convertible Notes (“2020 Notes”). The 2020 Notes accrue monthly interest at 6% per annum and include two options for conversion: (1) automatic conversion of the principal balance and accrued interest into new financing securities issued in a new financing round of at least $1.0 million, not including the 2020 Notes — the conversion price will be equal to 85% of the price per unit at which the investor in the new financing purchased their equity securities; (2) optional conversion in founder securities if (a) the Company gives the investor notice of its intent to prepay its 2020 Note, or (b) the Company has not consummated a new financing prior to maturity. The conversion price is equal to $17.0 million divided by the number of founder securities outstanding at the date of the 2020 Notes (100,000 units), or $170.00 per unit. The 2020 Notes mature three years from date of issue. The outstanding balance at December 31, 2020, was $273,157, including accrued interest of $3,157, which was recognized as interest expense during 2020.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(2)</td> <td style="text-align: justify">In late 2020, all convertible debt holders were offered the opportunity for early conversion of their convertible notes into Class B member units effective January 1, 2021. Three of the four convertible note holders converted notes with a principal balance of $170,000 and accrued interest of $3,157 into 2,338 Class B member units at per unit conversion prices ranging from $67.00 - $76.00. In accordance with FASB ASC 470-20, Debt with Conversion and Other Options, the fair value of the additional units issued under the induced conversion over the value of the number of units issuable under the original terms of the convertible note agreements is recognized as debt conversion expense. Accordingly, upon early conversion on January 1, 2021, the Company recognized $112,133 of debt conversion expense with a corresponding entry to members’ deficit of $285,290 consisting of the $173,157 of principal and interest converted and the excess fair value of $112,133. The fourth convertible note holder opted out of the early conversion and instead, the original note was modified into a term loan effective January 1, 2021. The modification included the elimination of the conversion feature, an increase in the interest rate from the original 6% per annum to 10% per annum, to be paid monthly instead of accrued, and an earlier maturity date of December 31, 2021. The modification resulted in a new effective annual interest rate of 9.58%, and a revised one-year maturity on December 31, 2021. The modification resulted in less than a 10% difference in the present values of cash flows of the original note compared to the modified note. Accordingly, there was no accounting changes related to these modifications.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(3)</td> <td style="text-align: justify">On January 1, 2021, we issued 2,338 Class B member units upon the conversion of convertible notes and accrued interest totaling $173,157.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(4)</td> <td style="text-align: justify">On January 1, 2021, we issued 262 Class B membership units in exchange for building signage valued at $20,000.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(5)</td> <td style="text-align: justify">In March and April 2021, we sold 6,157 of Class B membership units to three new members for gross proceeds of $522,000.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(6)</td> <td style="text-align: justify">On May 15, 2021, we modified a Promissory Note Agreement in the amount of $250,000 to be a convertible note for the same amount with detachable warrants to purchase 548,000 shares of Common Stock. The modification resulted in a new effective annual interest rate of 9.15%. The modification resulted in less than a 10% difference in the present values of cash flows of the original note compared to the modified note. Accordingly, there was no accounting changes related to these modifications. The convertible note was issued under the same terms and conditions as the convertible notes issued to third-party investors and therefore, in substance, was not a capital transaction. Effective November 1, 2021, all terms under the convertible note, including the warrants, were rescinded and the member agreed to convert the note at a conversion price of $1.21 per share.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 0.25in"></td><td style="width: 0.25in">(7)</td><td style="text-align: justify">On October 29, 2021, in anticipation of conversion from LLC to a C corporation, the Notes and Warrants were modified under Convertible Debenture Exercise and Waiver and Release Agreements with the individual creditors. The Note holders agreed to settle the debt for an aggregate 1,527,647 shares of common stock with a fair value of $5,545,359 ($3.63 per share). Since this transaction involved contemporaneous issuance of shares of common stock by the Company to the Note holders, we evaluated the transaction for modification and extinguishment accounting and determined that the debt was extinguished as a result of the issuance of shares that do not represent the exercise of a conversion right contained in the original terms of the Notes at issuance.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(8)</td> <td style="text-align: justify">In November 2021, we issued 30,000 shares of Common Stock in exchange for legal services.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(9)</td> <td style="text-align: justify">In November 2021, we issued 482,268 detachable warrants with secured promissory notes for the purchase of Common Stock. The relative fair value of the warrants of $809,806 at the time of issuance was recorded as additional paid-in capital with a corresponding debt discount reducing the carrying value of the notes. Additionally, we issued 77,163 warrants to purchase shares of Common Stock to underwriters in connection with obtaining the notes. The fair value of the warrants of $262,354 was recorded as additional paid-in capital and reduced the carrying value of the notes. The warrants are exercisable at $3.32 per share for a period of ten years from date of grant. The fair value of the warrants was determined at date of issuance using the Black-Scholes option-pricing model and the following assumptions: per share price of common stock on date of grant of $3.63, expected dividend yield of 0%, expected volatility of 110.8%, risk-free interest rate of 1.63% and expected life based on contractual life of 10 years.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(10)</td> <td style="text-align: justify">Also in November 2021, we issued warrants to purchase 151,000 shares of Common Stock in exchange for prior services related to extinguished 2021 convertible notes and 30,000 options for the purchase of common stock in exchange for legal services. The warrants are exercisable at $2.90 per share for a period of three years from the date of grant. The options are exercisable at $3.32 per share for a period of three years from the date of grant. The options issued were not issued under the Company’s stock option plans. The fair value of the warrants of $407,700 was recorded as additional paid-in-capital and expensed to extinguishment loss on debt settlement. The fair value of the options of $79,200 was recorded as additional paid-in capital with a corresponding charge to legal expense. The fair value of the warrants and options was determined at date of issuance using the Black-Scholes option-pricing model and the following assumptions: per share price of common stock on date of grant of $3.63, expected dividend yield of 0%, expected volatility of 122.7%, risk-free interest rate of 0.71% and expected life based on contractual life of three years.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(11)</td> <td style="text-align: justify">On November 22, 2021, we completed a private placement (the “Secured Note Financing”). In connection therewith, we issued an aggregate of $1,600,000 of 15% senior secured notes (the “Senior Secured Notes”) and warrants to purchase an aggregate of 559,431 shares of common stock at an exercise price of $3.32 per share (the “Warrants Senior Secured Notes”). After deducting offering related expenses, including legal fees of $15,000 and certain diligence and advisory fees of $200,000 paid to an entity owned by the spouse of an employee of the underwriter, the net proceeds to us were approximately $1,385,000. Out of the total warrants, warrants to purchase 28,935 shares of our common stock were issued to the same entity owned by the spouse of an employee of the underwriter that received the advisory fee. The maturity date of the Senior Secured Notes is the earlier of (i) May 15, 2023, (ii) the closing a Qualified Subsequent Equity Financing and (iii) the closing of a Change of Control. The Senior Secured Notes bear interest at a rate of 15% per annum of which (i) 10% accrues from the Closing Date and is paid to holder within 10 days after the first day of each month and (ii) 5% accrues and compound annually and payable in arrears on the Maturity Date. The Senior Secured Notes are general secured obligations as set forth in a security agreement between us and the noteholders. The Warrants are exercisable for a period of 10-years from the date of issuance and may be exercised via cashless exercise/net exercise provisions contained in the Warrants.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(12)</td> <td style="text-align: justify">During the year ended December 31, 2021, we received gross proceeds of $2,929,000 from the issuance of unsecured convertible notes, of which $44,000 was received from existing members/shareholders. Additionally, a member/shareholder converted a promissory note to a convertible note identical in terms discussed below.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(13)</td> <td style="text-align: justify">On April 1, 2022, we issued warrants to IPO underwriters to purchase 148,005 shares of Common Stock at an exercise price of $9.10 per share. The warrants are exercisable 180 days after grant (September 27, 2022) and expire five years from date of grant (March 31, 2027). The fair value of the warrants was determined at date of issuance using the Black-Scholes option-pricing model and the following assumptions: per share price of common stock on date of grant of $7, expected dividend yield of 0%, expected volatility of 110.03%, risk-free interest rate of 2.55% and expected life based on contractual life of 5 years. The fair value of $916,238 was recorded as an increase in additional-paid-in capital and a reduction to additional paid-in capital since the warrants were issued as IPO fees to underwriters, resulting in a zero impact to additional paid-in capital.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(14)</td> <td style="text-align: justify">In March 2023, holders of 73,000 warrants we previously issued on November 9, 2021 in reliance on the exemption from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”) with an exercise price of $2.90 exercised their warrants on a cashless basis, which resulted in the issuance of an additional 31,102 shares of Common Stock. During the same period, holders of 15,000 warrants previously issued by the Company on November 22, 2021 in reliance on the exemption from registration pursuant to Section 4(a)(2) of the Securities Act with an exercise price of $3.32 exercised their warrants by paying the exercise price, which resulted in the issuance of an additional 15,000 shares of common stock and the receipt by the Company of $49,800.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(15)</td> <td style="text-align: justify">On March 31, 2023, at the closing price of $4.84 per share, the Company issued 52,000 shares of Common Stock in reliance on the exemption from registration pursuant to Section 4(a)(2) of the Securities Act as part of the settlement agreement with Ravi Sinha dated March 21, 2023.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(16)</td> <td style="text-align: justify">In April 2023, holders of 22,606 warrants previously issued by the Company on November 22, 2021 in reliance on the exemption from registration pursuant to Section 4(a)(2) of the Securities Act with an exercise price of $3.32 exercised their warrants on a cashless basis, which resulted in the issuance of an additional 10,151 shares of Common Stock.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="vertical-align: top"> <td style="width: 0.25in"> </td> <td style="width: 0.25in">(17)</td> <td style="text-align: justify">On August 10, 2023, we issued 25,000 warrants to our investor relations firm in accordance with a letter of engagement signed July 22, 2022, as partial compensation for services provided by the investor relations firm. The warrants were issued in reliance on the exemption from registration pursuant to Section 4(a)(2) of the Securities Act. The warrants are fully vested and exercisable with an expiration date two years from date of issue (August 9, 2025) and are exercisable at a price of $5.00 per share.</td></tr> </table> ITEM 16. EXHIBIT (a) Exhibits. See the Exhibit Index immediately preceding the signature page hereto for a list of exhibits filed as part of this Registration Statement on Form S-1, which Exhibit Index is incorporated herein by reference. (b) Financial Statement Schedules. All other schedules have been omitted because the information required to be set forth therein is not applicable or is shown in the consolidated financial statements or related notes. ITEM 17. UNDERTAKINGS The undersigned registrant hereby undertakes: (1) To file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement: (i) To include any prospectus required by Section 10(a)(3) of the Securities Act; (ii) To reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the SEC pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the “Calculation of Filing Fee” table in the effective Registration Statement; and (iii) To include any material information with respect to the plan of distribution not previously disclosed in the Registration Statement or any material change to such information in the Registration Statement; provided, however, that paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) above do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the SEC by the registrant pursuant to Section 13 or Section 15(d) of the Exchange Act that are incorporated by reference in the Registration Statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the Registration Statement. (2) That, for the purpose of determining any liability under the Securities Act, each such post- effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. (3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of this Offering. (4) That, for the purpose of determining liability under the Securities Act to any purchaser: (i) Each prospectus filed pursuant to Rule 424(b)(3) shall be deemed to be part of the Registration Statement as of the date the filed prospectus was deemed part of and included in the Registration Statement; and (ii) Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5) or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii) or (x) for the purpose of providing the information required by Section 10(a) of the Securities Act shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in this Offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the Registration Statement relating to the securities in the Registration Statement to which that prospectus relates, and this Offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the Registration Statement or made in a document incorporated or deemed incorporated by reference into the Registration Statement or prospectus that is part of the Registration Statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the Registration Statement or prospectus that was part of the Registration Statement or made in any such document immediately prior to such effective date. (5) That, for the purpose of determining liability of the registrant under the Securities Act to any purchaser in the initial distribution of the securities: The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this Registration Statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser: (i) Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424; (ii) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant; (iii) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and (iv) Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser. (6) The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to section 13(a) or section 15(d) of the Exchange Act (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to section 15(d) of the Exchange Act) that is incorporated by reference in the Registration Statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. (7) Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue. EXHIBIT INDEX <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="border-bottom: black 1pt solid; vertical-align: top; padding-top: 2pt">Exhibit Number</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; padding-top: 2pt">Description</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; padding-top: 2pt; text-align: center">Form</td> <td style="vertical-align: top"> </td> <td style="border-bottom: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; text-align: center">Exhibit</td> <td style="vertical-align: top"> </td> <td style="border-top: Black 1pt none; border-bottom: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; text-align: center">Filing Date</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">3.1</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="https://www.sec.gov/Archives/edgar/data/1894954/000190359622000125/f2sexpion121721s1ex3_1.htm">Articles of Incorporation of the Company, effective as of November 4, 2021</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">S-1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">3.1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">3/31/2022</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">3.2</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="https://www.sec.gov/Archives/edgar/data/1894954/000190359622000125/f2sexpion121721s1ex3_2.htm">Bylaws of the Company currently in effect</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">S-1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">3.2</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">3/31/2022</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">4.1</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="https://www.sec.gov/Archives/edgar/data/1894954/000190359622000125/f2sexpion121721s1ex4_1.htm">Form of the Company’s common stock certificate</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">S-1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">4.1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">3/31/2022</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">4.2</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="https://www.sec.gov/Archives/edgar/data/1894954/000190359622000125/f2sexpion121721s1ex4_4.htm">Form of Representative’s Warrant</a> Agreement</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">S-1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">4.4</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">3/31/2022</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">4.3</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="https://www.sec.gov/Archives/edgar/data/1894954/000190359622000125/f2sexpion121721s1ex4_5.htm">Form of Senior Secured Promissory Note issued to bridge loan investors</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">S-1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">4.5</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">3/31/2022</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">4.4</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="http://www.sec.gov/Archives/edgar/data/1894954/000190359623000244/ex10_15.htm">Form of Warrant with an Exercise Price of $2.90</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">10-K</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">10.12</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">3/30/2023</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">4.5</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="http://www.sec.gov/Archives/edgar/data/1894954/000190359623000244/ex10_16.htm">Form of Warrant with an Exercise Price of $3.32 </a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">10-K</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">10.13</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">3/30/2023</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">5.1</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="ex_5-1.htm">Opinion of Stradling Yocca Carlson & Rauth LLP </a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">10.1</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="https://www.sec.gov/Archives/edgar/data/1894954/000190359622000125/f2sexpion121721s1ex10_1.htm">Form of common stock warrant issued to Selling Stockholders</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">S-1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">10.1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">3/31/2022</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">10.2† </td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="https://www.sec.gov/Archives/edgar/data/1894954/000190359622000125/f2sexpion121721s1ex10_2.htm">Expion360 Inc. 2021 Incentive Award Plan</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">S-1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">10.2</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">3/31/2022</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">10.3† </td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="https://www.sec.gov/Archives/edgar/data/1894954/000190359622000125/f2sexpion121721s1ex10_3.htm">Expion360 Inc. 2021 Employee Stock Purchase Plan</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">S-1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">10.3</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">3/31/2022</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">10.4</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="https://www.sec.gov/Archives/edgar/data/1894954/000190359622000125/f2sexpion121721s1ex10_7.htm">Form of Security Agreement issued to bridge loan investors</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">S-1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">10.7</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">3/31/2022</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">10.5</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="https://www.sec.gov/Archives/edgar/data/1894954/000190359622000125/f2sexpion121721s1ex10_8.htm">Commercial Lease of premises at 2045 SW Deerhound Avenue Redmond, OR</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">S-1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">10.8</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">3/31/2022</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">10.6</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="https://www.sec.gov/Archives/edgar/data/1894954/000190359622000125/f2sexpion121721s1ex10_11.htm">Commercial Lease of premises at 1266 SW Lake Blvd., Redmond, OR</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">S-1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">10.11</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">3/31/2022</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">10.7</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="https://www.sec.gov/Archives/edgar/data/1894954/000190359622000149/sfsxpon8k040522ex1_1.htm">Underwriting Agreement dated March 31, 2022, between the Company and Alexander Capital, LP as Representative of the Underwriters</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">8-K</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">1.1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">4/05/2022</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">10.8†</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="https://www.sec.gov/Archives/edgar/data/1894954/000190359623000096/ex10_1.htm">Amended and Restated Employment Agreement, between John Yozamp and Expion360 Inc., dated January 26, 2023</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">8-K</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">10.1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">2/01/2023</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">10.9†</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="https://www.sec.gov/Archives/edgar/data/1894954/000190359623000096/ex10_2.htm">Amended and Restated Employment Agreement, between Brian Schaffner and Expion360 Inc., dated January 26, 2023</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">8-K</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">10.1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">2/01/2023</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">10.10†</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="https://www.sec.gov/Archives/edgar/data/1894954/000190359623000096/ex10_3.htm">Amended and Restated Employment Agreement, between Paul Shoun and Expion360 Inc., dated January 26, 2023</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">8-K</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">10.1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">2/01/2023</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">10.11†</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="https://www.sec.gov/Archives/edgar/data/1894954/000190359623000096/ex10_4.htm">Amended and Restated Employment Agreement, between Greg Aydelott and Expion360 Inc., dated January 26, 2023</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">8-K</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">10.1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">2/01/2023</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">10.14*</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="http://www.sec.gov/Archives/edgar/data/1894954/000190359623000983/ex10_2.htm">Common Stock Purchase Agreement, dated December 27, 2023, between Expion360 Inc. and Tumim Stone Capital, LLC</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">8-K</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">10.2</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">12/29/2023</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">10.15*</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="http://www.sec.gov/Archives/edgar/data/1894954/000190359623000983/ex10_3.htm">Registration Rights Agreement, dated December 27, 2023, between Expion360 Inc. and Tumim Stone Capital, LLC</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">8-K</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">10.3</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">12/29/2023</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">21.1</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="https://www.sec.gov/Archives/edgar/data/1894954/000190359622000125/f2sexpion121721s1ex21_1.htm">Subsidiaries of the Company</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">S-1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">21.1</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">3/31/2022</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">23.1</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="ex_23-1.htm">Consent of M&K CPAS PLLC </a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">23.2</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="ex_5-1.htm">Consent of Stradling Yocca Carlson & Rauth LLP (included in Exhibit 5.1)</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center"> </td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">24.1</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="#p_001">Power of Attorney (reference is made to the signature page hereto)</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">101.INS</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt">Inline XBRL Instance Document</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">101.SCH</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt">Inline XBRL Taxonomy Extension Schema Document</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">101.CAL</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt">Inline XBRL Taxonomy Extension Calculation Linkbase Document</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">101.DEF</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt">Inline XBRL Taxonomy Extension Definition Linkbase Document</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">101.LAB</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt">Inline XBRL Taxonomy Extension Label Linkbase Document</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">101.PRE</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt">Inline XBRL Taxonomy Extension Presentation Linkbase Document</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">104</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt">Cover Page Interactive Data File (formatted as Inline XBRL and included in Exhibit 101)</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center">-</td></tr> <tr> <td style="vertical-align: top; padding-top: 2pt">107</td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt"><a href="ex_107.htm">Filing Fee Table</a></td> <td style="vertical-align: top; padding-top: 2pt"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: top; padding-top: 2pt; text-align: center"> </td> <td style="vertical-align: bottom; padding-top: 2pt; text-align: center"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 10%">†</td> <td style="width: 90%; text-align: justify">Indicates a management contract or compensatory plan or arrangement.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 10%">*</td> <td style="width: 90%; text-align: justify">The schedules and exhibits to this agreement have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule and/or exhibit will be furnished to the SEC upon request. </td></tr> </table> SIGNATURES Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the Redmond, Oregon, on this 31st day of January, 2024. <table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="width: 48%"> </td> <td style="width: 52%">EXPION360 INC.</td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="border-bottom: black 1pt solid">By: /s/ Brian Schaffner</td></tr> <tr style="vertical-align: bottom"> <td> </td> <td>Brian Schaffner</td></tr> <tr style="vertical-align: bottom"> <td> </td> <td>Chief Executive Officer</td></tr> <tr style="vertical-align: bottom"> <td> </td> <td>(Principal Executive Officer)</td></tr> </table> Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to Registration Statement on Form S-1 has been signed by the following persons in the capacities and on the dates indicated. <table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr> <td style="border-bottom: black 1pt solid; vertical-align: bottom; width: 25%; text-align: center">Signature</td> <td style="vertical-align: top; width: 1%"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; width: 55%; text-align: center">Title</td> <td style="vertical-align: top; width: 1%"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; width: 18%; text-align: center">Date</td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-bottom: black 1pt solid; text-align: center">/s/ Brian Schaffner</td> <td> </td> <td style="text-align: center">Chief Executive Officer and Director</td> <td> </td> <td style="text-align: center">January 31, 2024</td></tr> <tr style="vertical-align: top; background-color: white"> <td style="text-align: center">Brian Schaffner</td> <td> </td> <td style="text-align: center">(Principal Executive Officer)</td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: white"> <td style="border-bottom: black 1pt solid; text-align: center">/s/ Greg Aydelott</td> <td> </td> <td style="text-align: center">Chief Financial Officer</td> <td> </td> <td style="text-align: center">January 31, 2024</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: center">Greg Aydelott</td> <td> </td> <td style="text-align: center">(Principal Financial and Accounting Officer)</td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: white"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-bottom: black 1pt solid; text-align: center">/s/ *</td> <td> </td> <td style="text-align: center">Director</td> <td> </td> <td style="text-align: center">January 31, 2024</td></tr> <tr style="vertical-align: top; background-color: white"> <td style="text-align: center">George Lefevre</td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: white"> <td style="border-bottom: black 1pt solid; text-align: center">/s/ *</td> <td> </td> <td style="text-align: center">Director</td> <td> </td> <td style="text-align: center">January 31, 2024</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: center">Steven M. Shum</td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: white"> <td style="text-align: center"> </td> <td> </td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-bottom: black 1pt solid; text-align: center">/s/ *</td> <td> </td> <td style="text-align: center">Director</td> <td> </td> <td style="text-align: center">January 31, 2024</td></tr> <tr style="vertical-align: top; background-color: white"> <td style="text-align: center">Paul Shoun</td> <td> </td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: center"> </td> <td> </td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: white"> <td style="border-bottom: black 1pt solid; text-align: center">/s/ *</td> <td> </td> <td style="text-align: center">Director</td> <td> </td> <td style="text-align: center">January 31, 2024</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: center">Tien Q. Nguyen</td> <td> </td> <td style="text-align: center"> </td> <td> </td> <td style="text-align: center"> </td></tr> </table> *By: /s/ Brian Schaffner, attorney-in-fact II-11 <div style="margin-top: 3pt; margin-bottom: 3pt; width: 100%"><div style="border-top: Black 2pt solid; font-size: 1pt"> </div></div>