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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_304_134_zQC1JEaoULPe" 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_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember__srt--RangeAxis__srt--MinimumMember_zmuJRv0zxpn3">5 - <span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember__srt--RangeAxis__srt--MaximumMember_zZgFh9lWWkAb" title="Property, Plant and Equipment, Useful Life">7 years</td> <td style="border-top: black 1pt solid; 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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_90E_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember__srt--RangeAxis__srt--MinimumMember_zb1epQp5bzdb">5 - <span id="xdx_90C_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember_zEZ98pWr02sk">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 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 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_30B_134_zAbZt7fcE2Af" 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; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td id="xdx_49B_20220101__20221231_zL5IBozKkQh7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_493_20210101__20211231_zJFkqqeKIKpj" style="border-bottom: Black 1pt solid; 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_40D_ecustom--NetLoss_zMnMURJL9B0e" 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">$</td><td style="width: 12%; text-align: right">(4,720,858</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_409_ecustom--WeightedaverageNumberOfCommonSharesOutstanding_zjMcTsUZawx9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Weighted average common shares outstanding – basic and diluted</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,135,938</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,888,695</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--NetLossPerShareBasicAndDiluted_zpoCsXFtVKGh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Basic and diluted net loss per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</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 shares <table cellpadding="0" cellspacing="0" id="xdx_301_134_zEIDkYgCbSi7" 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_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zY5gUb0fwVq4" 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_989_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zzcNz8EFHPqe" 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_98F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_znUbdd6ynzJ5" 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_z6ww6KNlkDBl" 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_986_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231_zyhKxT5HHwwj" 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_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231_zraHhootAUIe" 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_304_134_zQC1JEaoULPe" 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_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember__srt--RangeAxis__srt--MinimumMember_zmuJRv0zxpn3">5 - <span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember__srt--RangeAxis__srt--MaximumMember_zZgFh9lWWkAb" 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_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MinimumMember_zMep8H5IFnIi">3 - <span id="xdx_903_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MaximumMember_zjs4hns5BTBa" 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_904_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MinimumMember_z5xdKDUvWOXl">3 - <span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MaximumMember_zfSihhnyMAAl" 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_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MinimumMember_zutWLcAV6iF1">3 - <span id="xdx_904_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MaximumMember_zUIIqeVU33Nl" 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"><span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember__srt--RangeAxis__srt--MinimumMember_z7ABVH783RXl">3 - <span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember_zklGbcqoQjFf" 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_90E_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember__srt--RangeAxis__srt--MinimumMember_zb1epQp5bzdb">5 - <span id="xdx_90C_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember_zEZ98pWr02sk">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_304_134_zQC1JEaoULPe" 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_909_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember__srt--RangeAxis__srt--MinimumMember_zmuJRv0zxpn3">5 - <span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember__srt--RangeAxis__srt--MaximumMember_zZgFh9lWWkAb" 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_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MinimumMember_zMep8H5IFnIi">3 - <span id="xdx_903_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember__srt--RangeAxis__srt--MaximumMember_zjs4hns5BTBa" 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_904_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MinimumMember_z5xdKDUvWOXl">3 - <span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MaximumMember_zfSihhnyMAAl" 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_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MinimumMember_zutWLcAV6iF1">3 - <span id="xdx_904_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember__srt--RangeAxis__srt--MaximumMember_zUIIqeVU33Nl" 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"><span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember__srt--RangeAxis__srt--MinimumMember_z7ABVH783RXl">3 - <span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember_zklGbcqoQjFf" 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_90E_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember__srt--RangeAxis__srt--MinimumMember_zb1epQp5bzdb">5 - <span id="xdx_90C_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220101__20221231__srt--RangeAxis__srt--MaximumMember__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember_zEZ98pWr02sk">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 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 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_30B_134_zAbZt7fcE2Af" 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; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td id="xdx_49B_20220101__20221231_zL5IBozKkQh7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_493_20210101__20211231_zJFkqqeKIKpj" style="border-bottom: Black 1pt solid; 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_40D_ecustom--NetLoss_zMnMURJL9B0e" 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_409_ecustom--WeightedaverageNumberOfCommonSharesOutstanding_zjMcTsUZawx9" 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_40B_ecustom--NetLossPerShareBasicAndDiluted_zpoCsXFtVKGh" 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 shares <table cellpadding="0" cellspacing="0" id="xdx_301_134_zEIDkYgCbSi7" 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_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zY5gUb0fwVq4" 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_989_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zzcNz8EFHPqe" 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_98F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_znUbdd6ynzJ5" 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_z6ww6KNlkDBl" 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_986_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231_zyhKxT5HHwwj" 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_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231_zraHhootAUIe" 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_30B_134_zAbZt7fcE2Af" 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; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td id="xdx_49B_20220101__20221231_zL5IBozKkQh7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_493_20210101__20211231_zJFkqqeKIKpj" style="border-bottom: Black 1pt solid; 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_40D_ecustom--NetLoss_zMnMURJL9B0e" 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_409_ecustom--WeightedaverageNumberOfCommonSharesOutstanding_zjMcTsUZawx9" 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_40B_ecustom--NetLossPerShareBasicAndDiluted_zpoCsXFtVKGh" 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 shares <table cellpadding="0" cellspacing="0" id="xdx_301_134_zEIDkYgCbSi7" 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_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zY5gUb0fwVq4" 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_989_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zzcNz8EFHPqe" 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_98F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_znUbdd6ynzJ5" 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_z6ww6KNlkDBl" 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_986_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231_zyhKxT5HHwwj" 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_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20211231_zraHhootAUIe" 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_303_134_z8EVCYZP6Ym5" 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">$</td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember_zKsYKGzj6Rc" style="width: 12%; text-align: right">593,097</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember_pp0p0" 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_98E_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zzsZkmc8Vuq3" style="text-align: right">314,819</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zUGnaBE2DV21" 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_988_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureEquipmentMember_zvJ40BWhb779" style="text-align: right">188,131</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureEquipmentMember_zJeIlIv23m2d" 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_98F_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember_zwjLySns0g56" style="text-align: right">179,274</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentGross_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember_pp0p0" 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_98B_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEquipmentMember_zwwAPrR7cV19" style="text-align: right">81,164</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--PropertyPlantAndEquipmentGross_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEquipmentMember_pp0p0" 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_988_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember_zcPWQpx7e7tg" style="text-align: right">22,142</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember_znAklC2QKxdh" 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_984_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember_zG9335hwSR3h" 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_98D_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember_zV1Ew8EUI6nb" 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_98A_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231_zuVgYF694Ne8" 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_980_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231_zpN9AwWFGVNb" 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_988_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_c20221231_zBuOTnSTIqo7" 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_98A_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_c20211231_zQCmu5aKOdqb" 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">$</td><td id="xdx_984_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_c20221231_ztL8EemyQVPf" style="border-bottom: Black 2.5pt double; text-align: right">1,143,758</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_c20211231_zzckrrlbrowa" 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_303_134_z8EVCYZP6Ym5" 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">$</td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember_zKsYKGzj6Rc" style="width: 12%; text-align: right">593,097</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--VehiclesAndTransportationEquipmentMember_pp0p0" 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_98E_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zzsZkmc8Vuq3" style="text-align: right">314,819</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zUGnaBE2DV21" 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_988_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureEquipmentMember_zvJ40BWhb779" style="text-align: right">188,131</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureEquipmentMember_zJeIlIv23m2d" 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_98F_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember_zwjLySns0g56" style="text-align: right">179,274</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentGross_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentMember_pp0p0" 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_98B_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEquipmentMember_zwwAPrR7cV19" style="text-align: right">81,164</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--PropertyPlantAndEquipmentGross_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEquipmentMember_pp0p0" 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_988_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember_zcPWQpx7e7tg" style="text-align: right">22,142</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--QAEquipmentMember_znAklC2QKxdh" 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_984_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember_zG9335hwSR3h" 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_98D_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ToolingAndMoldsMember_zV1Ew8EUI6nb" 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_98A_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20221231_zuVgYF694Ne8" 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_980_eus-gaap--PropertyPlantAndEquipmentGross_iI_pp0p0_c20211231_zpN9AwWFGVNb" 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_988_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_c20221231_zBuOTnSTIqo7" 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_98A_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_c20211231_zQCmu5aKOdqb" 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">$</td><td id="xdx_984_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_c20221231_ztL8EemyQVPf" style="border-bottom: Black 2.5pt double; text-align: right">1,143,758</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--PropertyPlantAndEquipmentNet_iI_pp0p0_c20211231_zzckrrlbrowa" 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_306_134_zJEYwkLN15U7" 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 style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td id="xdx_49C_20221231_zCnZ7N4CEFL2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_49C_20211231_z1PZVRhEjHY" style="border-bottom: Black 1pt solid; 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_407_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_zP7x6qIrwPb6" 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_408_ecustom--RebateLiability_iI_zbftdA3q6Ai1" 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_402_ecustom--DeferredIncomeAndDepositSublease_iI_zilIe443n6Qi" 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_402_eus-gaap--AccruedSalesCommissionCurrent_iI_zr18utJeZnW8" 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_403_ecustom--FranchiseTax_iI_zqyIKo6sqEql" 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_405_eus-gaap--InterestPayableCurrent_iI_z8pMSjQOLccc" 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_408_eus-gaap--OtherAccruedLiabilitiesCurrentAndNoncurrent_iI_zACLocTmLY27" 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_40F_eus-gaap--AccruedLiabilitiesAndOtherLiabilities_iI_zuCcU1kEkEwc" 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_306_134_zJEYwkLN15U7" 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 style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td id="xdx_49C_20221231_zCnZ7N4CEFL2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_49C_20211231_z1PZVRhEjHY" style="border-bottom: Black 1pt solid; 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_407_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_zP7x6qIrwPb6" 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_408_ecustom--RebateLiability_iI_zbftdA3q6Ai1" 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_402_ecustom--DeferredIncomeAndDepositSublease_iI_zilIe443n6Qi" 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_402_eus-gaap--AccruedSalesCommissionCurrent_iI_zr18utJeZnW8" 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_403_ecustom--FranchiseTax_iI_zqyIKo6sqEql" 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_405_eus-gaap--InterestPayableCurrent_iI_z8pMSjQOLccc" 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_408_eus-gaap--OtherAccruedLiabilitiesCurrentAndNoncurrent_iI_zACLocTmLY27" 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_40F_eus-gaap--AccruedLiabilitiesAndOtherLiabilities_iI_zuCcU1kEkEwc" 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_989_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--SeniorSecuredPromissoryNotesMember_zpjcoAE8qltc" 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_981_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--SeniorSecuredPromissoryNotesMember_zybiBhLSdbt7" 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_98F_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__us-gaap--NotesPayableToBanksMember_zN5miEGtTN75" 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_984_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__us-gaap--NotesPayableToBanksMember_zFPLNcf7vlVd" 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_z3PKpYnRuTy" 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_98A_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableCreditUnionMember_z2LXGHEiwFzk" 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_98A_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableSBAMember_zbFuCBWFlKJh" 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_980_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableSBAMember_zlAUr4eVPbT1" 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_986_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableIndividualMember_zji93V39YcW6" 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_zsX5j0XMvuL2" 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_980_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompanyMember_zYY54nCmpK0d" 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--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompanyMember_zoCcI6uvPwyg" 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_981_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompany1Member_zuF8sHKOHgdj" 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_98D_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompany1Member_zathi7SBvTd4" 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 $4,676, including interest at rates ranging from 5.89% to 7.29% per annum, mature at various dates from October 2027 to May of 2028, and are secured by the related vehicles. Two of the notes are personally guaranteed by a co-founder.</td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td> <td id="xdx_984_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--GMFinancialMember_z8QpWN8XCuMj" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">251,209</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_987_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--GMFinancialMember_zmBLnQSc8RXk" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">94,890</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-top: 5.75pt; text-align: justify">Total</td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt">$</td> <td id="xdx_985_eus-gaap--LongTermDebt_iI_c20221231_zouFsereWfYa" 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_986_eus-gaap--LongTermDebt_iI_c20211231_zBMPowZPAzJc" 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_98D_eus-gaap--DebtInstrumentUnamortizedDiscountCurrent_iI_c20221231_zg7hv367XJK1" 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_z36KtY4Wrkuj" 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_98E_eus-gaap--DebtCurrent_iNI_di_c20221231_zpoX1D4IfSJ3" 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_986_eus-gaap--DebtCurrent_iNI_di_c20211231_zdYRsvJwx6pe" 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_989_ecustom--LessNotePayableInDefaultPaid_iI_c20221231_z0ovXGwQ5hK3" 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_98C_ecustom--LessNotePayableInDefaultPaid_iI_c20211231_zZogBgMQs8Y5" 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_980_eus-gaap--LongTermDebtNoncurrent_iI_c20221231_z1KP7c04gosi" 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">$</td> <td id="xdx_98B_eus-gaap--LongTermDebtNoncurrent_iI_c20211231_z7WIsFw6j8ph" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">779,486</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td></tr> </table> Future maturities of long-term debt are as follows: Schedule of long term debt payment <table cellpadding="0" cellspacing="0" id="xdx_309_134_zNfgvHqwKjIf" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Long-Term Debt (Details 1)"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td id="xdx_492_20221231_zZgJEMecA9m5"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td colspan="4">Years ending December 31,</td></tr> <tr id="xdx_405_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_zqyi9FBHzqL8" style="background-color: rgb(204,238,255)"> <td style="vertical-align: top; width: 52%; text-align: justify">2023</td> <td style="vertical-align: top; width: 4%; text-align: justify">$</td> <td style="vertical-align: top; width: 17%; text-align: right">71,426</td> <td style="width: 27%"> </td></tr> <tr id="xdx_404_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_zgzwOgVG9Cof" 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_401_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_z64bMRoKg1X3" 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_403_eus-gaap--LongTermDebtMaturingInYearsTwoAndThree_iI_zIPglTsLGjgj" 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_400_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_zgF7zagVdrri" 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_409_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_zZIIPRdzFDM8" 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_402_eus-gaap--LongTermDebt_iI_zIp0mMKQMTP4" 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_989_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--SeniorSecuredPromissoryNotesMember_zpjcoAE8qltc" 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_981_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--SeniorSecuredPromissoryNotesMember_zybiBhLSdbt7" 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_98F_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__us-gaap--NotesPayableToBanksMember_zN5miEGtTN75" 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_984_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__us-gaap--NotesPayableToBanksMember_zFPLNcf7vlVd" 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_z3PKpYnRuTy" 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_98A_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableCreditUnionMember_z2LXGHEiwFzk" 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_98A_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableSBAMember_zbFuCBWFlKJh" 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_980_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableSBAMember_zlAUr4eVPbT1" 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_986_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableIndividualMember_zji93V39YcW6" 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_zsX5j0XMvuL2" 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_980_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompanyMember_zYY54nCmpK0d" 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--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompanyMember_zoCcI6uvPwyg" 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_981_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompany1Member_zuF8sHKOHgdj" 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_98D_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--NotePayableFinanceCompany1Member_zathi7SBvTd4" 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 $4,676, including interest at rates ranging from 5.89% to 7.29% per annum, mature at various dates from October 2027 to May of 2028, and are secured by the related vehicles. Two of the notes are personally guaranteed by a co-founder.</td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td> <td id="xdx_984_eus-gaap--LongTermDebt_iI_c20221231__us-gaap--LongtermDebtTypeAxis__custom--GMFinancialMember_z8QpWN8XCuMj" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">251,209</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right"> </td> <td id="xdx_987_eus-gaap--LongTermDebt_iI_c20211231__us-gaap--LongtermDebtTypeAxis__custom--GMFinancialMember_zmBLnQSc8RXk" style="border-bottom: Black 1pt solid; padding-top: 5.75pt; text-align: right">94,890</td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-top: 5.75pt; text-align: justify">Total</td> <td style="padding-top: 5.75pt"> </td> <td style="border-bottom: Black 1pt solid; padding-top: 5.75pt">$</td> <td id="xdx_985_eus-gaap--LongTermDebt_iI_c20221231_zouFsereWfYa" 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_986_eus-gaap--LongTermDebt_iI_c20211231_zBMPowZPAzJc" 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_98D_eus-gaap--DebtInstrumentUnamortizedDiscountCurrent_iI_c20221231_zg7hv367XJK1" 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_z36KtY4Wrkuj" 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_98E_eus-gaap--DebtCurrent_iNI_di_c20221231_zpoX1D4IfSJ3" 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_986_eus-gaap--DebtCurrent_iNI_di_c20211231_zdYRsvJwx6pe" 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_989_ecustom--LessNotePayableInDefaultPaid_iI_c20221231_z0ovXGwQ5hK3" 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_98C_ecustom--LessNotePayableInDefaultPaid_iI_c20211231_zZogBgMQs8Y5" 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_980_eus-gaap--LongTermDebtNoncurrent_iI_c20221231_z1KP7c04gosi" 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_98B_eus-gaap--LongTermDebtNoncurrent_iI_c20211231_z7WIsFw6j8ph" 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_309_134_zNfgvHqwKjIf" 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_492_20221231_zZgJEMecA9m5"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td colspan="4">Years ending December 31,</td></tr> <tr id="xdx_405_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_zqyi9FBHzqL8" 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_404_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_zgzwOgVG9Cof" 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_401_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_z64bMRoKg1X3" 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_403_eus-gaap--LongTermDebtMaturingInYearsTwoAndThree_iI_zIPglTsLGjgj" 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_400_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_zgF7zagVdrri" 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_409_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_zZIIPRdzFDM8" 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_402_eus-gaap--LongTermDebt_iI_zIp0mMKQMTP4" 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_30E_133_zFqh6c87rSQf" 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_496_20220101__20221231_zEY95rY0SLr2" 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_49D_20210101__20211231_zudYrdDX0ux7" 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_40C_eus-gaap--OperatingLeaseCost_zop0cyad1kzj" 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">$</td><td style="width: 12%; text-align: right">304,082</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--ShortTermLeaseCost_z4YeMNQ1nL0f" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Short-term lease costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,527</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,846</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--VariableLeaseCost_zfvTV3S1q6qh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Variable lease costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">— </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">— </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--SubleaseIncome_iN_di_zOJQc5zxvDa3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Sublease income</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(123,386</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(75,061</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--LeaseCost_zyO40K9fK9Q8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left">$</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 $1,311,649, respectively. The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of December 31, 2022, for years ending December 31: Schedule of future minimum lease payment <table cellpadding="0" cellspacing="0" id="xdx_300_134_z56GYFXmIXKe" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Commitments and Contingencies (Details 1)"> <tr style="vertical-align: top"> <td> </td> <td colspan="3" id="xdx_492_20221231_z9pDAkyr6v11" style="text-align: center"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="3" style="text-align: center">Total</td></tr> <tr id="xdx_40D_eus-gaap--PurchaseObligationFutureMinimumPaymentsRemainderOfFiscalYear_iI_zNh55iIjefFh" style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="width: 75%">2023</td> <td style="width: 2%; text-align: right">$</td> <td style="width: 20%; text-align: right">719,220</td> <td style="width: 3%"> </td></tr> <tr id="xdx_405_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_ze0AUbujpQi9" 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_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_zdxifJIGqEih" 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_40A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_zWiKuearsDLf" 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_zWbdXwj6dvDj" 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_406_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_zWa5bo8einwj" 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_40E_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_z4oYISEaERH" 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_40D_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zRLSWFoxdMMi" 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_406_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_zWDHppBUO7g9" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Total</td> <td style="border-bottom: Black 1.5pt double; text-align: right">$</td> <td style="border-bottom: Black 1.5pt double; text-align: right">3,220,019 </td> <td style="border-bottom: Black 1.5pt double"> </td></tr> <tr style="vertical-align: top; background-color: White"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiabilityCurrent_iI_zMbGF13Xe3P2" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Current lease liability</td> <td style="text-align: right">$</td> <td style="text-align: right">465,055</td> <td> </td></tr> <tr id="xdx_406_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zOULOFBjpJz6" 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_401_eus-gaap--OperatingLeaseLiability_iI_zNPub9YOm589" 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 $13,690, respectively, and is included in accrued expenses and other current liabilities on the accompanying Balance Sheets. The following are the total future minimum sublease payments as of December 31, 2022: Schedule of future minimum sublease payments <table cellpadding="0" cellspacing="0" id="xdx_30B_134_zSQoMNglQfAj" style="width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Commitments and Contingencies (Details 2)"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td id="xdx_49D_20221231_zxN2ANReel8k" style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="width: 79%">Years ending December 31,</td> <td style="width: 4%"> </td> <td style="width: 16%; text-align: right"> </td> <td style="width: 1%"> </td></tr> <tr id="xdx_404_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactionsWithinOneYear_iI_zyT1Hk04iaQh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>2023</td> <td>$</td> <td style="text-align: right">46,147</td> <td> </td></tr> <tr id="xdx_40F_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactionsWithinTwoYears_iI_zTYGD42gfivg" 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_40B_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactionsWithinThreeYears_iI_zAg0uiws7jBg" 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_409_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactions_iI_zVy6MR7loN7k" 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_30E_133_zFqh6c87rSQf" 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_496_20220101__20221231_zEY95rY0SLr2" 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_49D_20210101__20211231_zudYrdDX0ux7" 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_40C_eus-gaap--OperatingLeaseCost_zop0cyad1kzj" 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_408_eus-gaap--ShortTermLeaseCost_z4YeMNQ1nL0f" 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_40A_eus-gaap--VariableLeaseCost_zfvTV3S1q6qh" 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_402_eus-gaap--SubleaseIncome_iN_di_zOJQc5zxvDa3" 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_403_eus-gaap--LeaseCost_zyO40K9fK9Q8" 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_300_134_z56GYFXmIXKe" 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_492_20221231_z9pDAkyr6v11" 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_40D_eus-gaap--PurchaseObligationFutureMinimumPaymentsRemainderOfFiscalYear_iI_zNh55iIjefFh" 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_405_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_ze0AUbujpQi9" 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_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_zdxifJIGqEih" 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_40A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_zWiKuearsDLf" 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_zWbdXwj6dvDj" 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_406_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_zWa5bo8einwj" 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_40E_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_z4oYISEaERH" 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_40D_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zRLSWFoxdMMi" 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_406_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_zWDHppBUO7g9" 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_407_eus-gaap--OperatingLeaseLiabilityCurrent_iI_zMbGF13Xe3P2" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Current lease liability</td> <td style="text-align: right">$</td> <td style="text-align: right">465,055</td> <td> </td></tr> <tr id="xdx_406_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zOULOFBjpJz6" style="vertical-align: top; background-color: White"> <td>Noncurrent lease liability</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">2,754,964 </td> <td style="border-bottom: Black 1pt solid"> </td></tr> <tr id="xdx_401_eus-gaap--OperatingLeaseLiability_iI_zNPub9YOm589" style="vertical-align: top; background-color: rgb(204,238,255)"> <td>Total</td> <td style="border-bottom: Black 1.5pt double; text-align: right">$</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_30B_134_zSQoMNglQfAj" 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_49D_20221231_zxN2ANReel8k" 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_404_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactionsWithinOneYear_iI_zyT1Hk04iaQh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>2023</td> <td>$</td> <td style="text-align: right">46,147</td> <td> </td></tr> <tr id="xdx_40F_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactionsWithinTwoYears_iI_zTYGD42gfivg" style="vertical-align: bottom; background-color: White"> <td>2024</td> <td> </td> <td style="text-align: right">36,242</td> <td> </td></tr> <tr id="xdx_40B_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactionsWithinThreeYears_iI_zAg0uiws7jBg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>2025</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">6,070</td> <td style="border-bottom: Black 1pt solid"> </td></tr> <tr id="xdx_409_eus-gaap--FutureMinimumSubleaseRentalsSaleLeasebackTransactions_iI_zVy6MR7loN7k" style="vertical-align: bottom; background-color: White"> <td>Total future minimum lease payments </td> <td style="border-bottom: Black 2.25pt double">$</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 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 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 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 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 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_302_134_z1A6Fc3l0bah" 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_98A_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_z8uldhr2E3c9" style="border-top: Black 1pt solid; white-space: nowrap; text-align: center">559,431</td> <td id="xdx_988_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_zO3zmRPWMQdf" 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_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20220101__20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_zU8s3kCAKD7">8.90</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_98A_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zSiLqT6fQtv5" style="white-space: nowrap; text-align: center">151,000</td> <td id="xdx_98C_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zopyMblcbZR6" style="white-space: nowrap; text-align: center"> $2.90 </td> <td style="white-space: nowrap; text-align: center"><span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20220101__20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zaH3gkSCewac">1.86</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_989_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice3Member_zxSprclnUpu7" style="white-space: nowrap; text-align: center">30,000</td> <td id="xdx_982_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice3Member_z1hox6UtrTPh" style="white-space: nowrap; text-align: center"> $3.32 </td> <td style="white-space: nowrap; text-align: center"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20220101__20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice3Member_zonYgm8hSkU6">1.86</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_984_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice4Member_zo0dqKRnfoQh" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">148,005</td> <td id="xdx_981_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice4Member_z8Vxj5YRanl6" 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_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20220101__20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice4Member_zxxFhhC7pJNf">4.25</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_985_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231_zQIVGbaEXTO7" 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_30C_134_zIHejek7WBxd" 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_304_134_zHNuKkEpwX4b" 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_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_z9vcpXF7VDBf" 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_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zD9CQ2WYf9cg" 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_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_pp0p0_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_zJfTj9hIGM48" 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_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zjl1QuQQLjYj" 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_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_z5dr9crript3" 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_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_zQvOUtvFBcw6" 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_zPZPox2snjEd" 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--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zCWri0SIUoW9" 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_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue_pp0p0_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_z11RRskvmiE3" 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_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zz6RxgdvH577" 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_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zsByBc26Dn6f" 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_98F_ecustom--AggregateIntrinsicValueForfeited_pp0p0_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_zh27mhHHZ525" 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_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zfofkHGwHkmg" 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_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zuIcXdTByxG" 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_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zskkWFje4Kz" 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">$</td> <td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_pp0p0_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_zb8c9lcPI1I9" style="border-bottom: Black 1pt solid; text-align: right" title="Aggregate intrinsic value end of period">—</td> <td style="border-bottom: Black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: White"> <td>Exercisable at end of period</td> <td style="border-bottom: Black 1pt solid"> </td> <td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_z1wTmthjFXEe" style="border-bottom: Black 1pt solid; text-align: right" title="Exercisable at end of period">829,500</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">$</td> <td id="xdx_98B_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice1_iI_c20221231_zrqxVOXBCEr8" 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_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20220101__20221231_zk4Oooft4iCj" 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_987_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_c20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zHop4HoMf1Fh" 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 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_301_133_zSb10Xk2pKz8" 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_49A_20221231_zkaPtCFulwl4" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__us-gaap--WarrantMember_zZLJV8REetYc" 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_402_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__custom--UnrelatedToAnyPlanMember_zp4EQtI9u4B4" 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_40F_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__custom--StockOptionsMember_zWCXI0NdCLu2" 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_40A_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_zdoYpEwkV336" 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_302_134_z1A6Fc3l0bah" 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_98A_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_z8uldhr2E3c9" style="border-top: Black 1pt solid; white-space: nowrap; text-align: center">559,431</td> <td id="xdx_988_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_zO3zmRPWMQdf" 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_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20220101__20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_zU8s3kCAKD7">8.90</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_98A_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zSiLqT6fQtv5" style="white-space: nowrap; text-align: center">151,000</td> <td id="xdx_98C_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zopyMblcbZR6" style="white-space: nowrap; text-align: center"> $2.90 </td> <td style="white-space: nowrap; text-align: center"><span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20220101__20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zaH3gkSCewac">1.86</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_989_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice3Member_zxSprclnUpu7" style="white-space: nowrap; text-align: center">30,000</td> <td id="xdx_982_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice3Member_z1hox6UtrTPh" style="white-space: nowrap; text-align: center"> $3.32 </td> <td style="white-space: nowrap; text-align: center"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20220101__20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice3Member_zonYgm8hSkU6">1.86</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td id="xdx_984_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice4Member_zo0dqKRnfoQh" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">148,005</td> <td id="xdx_981_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice4Member_z8Vxj5YRanl6" 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_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20220101__20221231__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice4Member_zxxFhhC7pJNf">4.25</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td id="xdx_985_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20221231_zQIVGbaEXTO7" 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_30C_134_zIHejek7WBxd" 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_304_134_zHNuKkEpwX4b" 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_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_z9vcpXF7VDBf" 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">$</td> <td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zD9CQ2WYf9cg" style="text-align: right" title="Weighted average exercise price outstanding at beginning of period">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right">—</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td>$</td> <td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_pp0p0_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_zJfTj9hIGM48" 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_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zjl1QuQQLjYj" 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_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_z5dr9crript3" 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_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_zQvOUtvFBcw6" 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_zPZPox2snjEd" 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--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zCWri0SIUoW9" 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_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue_pp0p0_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_z11RRskvmiE3" 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_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zz6RxgdvH577" 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_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zsByBc26Dn6f" 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_98F_ecustom--AggregateIntrinsicValueForfeited_pp0p0_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_zh27mhHHZ525" 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_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zfofkHGwHkmg" 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">$</td> <td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zuIcXdTByxG" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted average exercise price outstaning at end of period">3.43</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zskkWFje4Kz" title="Weighted average remaining contractual term (in years)">8.26</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">$</td> <td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_pp0p0_c20220101__20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_fKDEp_zb8c9lcPI1I9" 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_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_z1wTmthjFXEe" 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">$</td> <td id="xdx_98B_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice1_iI_c20221231_zrqxVOXBCEr8" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted average Price exercisable">3.43</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20220101__20221231_zk4Oooft4iCj" title="Weighted average remaining contractual term (in years) exercisable">8.26</td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">$</td> <td id="xdx_987_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_c20221231__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zHop4HoMf1Fh" 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_301_133_zSb10Xk2pKz8" 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_49A_20221231_zkaPtCFulwl4" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__us-gaap--WarrantMember_zZLJV8REetYc" 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_402_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__custom--UnrelatedToAnyPlanMember_zp4EQtI9u4B4" 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_40F_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_hus-gaap--AwardTypeAxis__custom--StockOptionsMember_zWCXI0NdCLu2" 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_40A_eus-gaap--CommonStockCapitalSharesReservedForFutureIssuance_iI_zdoYpEwkV336" 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_30E_134_zsUOCPf7A0Ha" 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_49B_20220101__20221231_zzJD1zTsJpg3" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_49E_20210101__20211231_zL3UqwiMwkm4" 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_406_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxSettlementsDomestic_dp_uPure_zbaVamyh8KP5" 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_zkI3iA3V8Gyi" 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_zs92JjtbYpA" 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_404_eus-gaap--EffectiveIncomeTaxRateReconciliationBeatPercent_dp_uPure_zqU91gplIxud" 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_40B_eus-gaap--EffectiveIncomeTaxRateReconciliationFdiiPercent_dp_uPure_zvxcwWUNG8Qk" 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_407_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherReconcilingItemsPercent_dp_uPure_zqyUGuCBu59d" 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_400_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_dp_uPure_zB5OX9q08T84" 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_308_134_z1ZuvOVVIcQ" 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_497_20220101__20221231_zdBqtJOCeUMd" 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_493_20210101__20211231_zdcLqsxwgg4h" 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_40B_eus-gaap--CurrentFederalTaxExpenseBenefit_zFD4WpF8dJpi" 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_40E_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_zcg0tKVS1ur6" 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_307_134_zCgDfEgqwFj1" 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; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td id="xdx_497_20221231_zedPakwVRRbk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_49F_20211231_zi0OgO9EbxU" style="border-bottom: Black 1pt solid; 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_zDPAZMgCnxsk" 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_40D_eus-gaap--OperatingLossCarryforwards_iI_zUXcRPs5O2m7" 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_40D_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsEmployeeCompensation_iI_zdfuqZz1Mq8" 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_40D_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsOther_iI_zeQ6tgOMWeec" 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_401_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_iI_zcKuIJV8b8lb" 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_40D_eus-gaap--OperatingLossCarryforwardsValuationAllowance_iNI_di_zNxdhz4UBty3" 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_404_eus-gaap--DeferredTaxLiabilitiesAbstract_iB_zGNNRQd2w5X9" 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_40B_ecustom--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsDepreciation_iI_zv0wv8dKiKFd" 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 Carryforwards <table cellpadding="0" cellspacing="0" id="xdx_30D_134_zwnpchcWe2Vb" 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; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td id="xdx_499_20221231_zFkyLe6Koa87" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td id="xdx_49E_20211231_zzsOxt41XQFe" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; 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--DeferredTaxAssetsOperatingLossCarryforwardsDomestic_iNI_di_zlRZTkTBvpV" 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_400_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwardsStateAndLocal_iNI_di_zlXjnTy3v948" 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_404_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost_iI_zjrqi4yxEmff" 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_ze49BD8c1JF1" 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_40D_ecustom--DeferredTaxAssetsValuationAllowanceOne_iNI_di_ztylhHFzaFg9" 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_409_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_zXybbIyOXWAe" 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_30E_134_zsUOCPf7A0Ha" 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_49B_20220101__20221231_zzJD1zTsJpg3" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" id="xdx_49E_20210101__20211231_zL3UqwiMwkm4" 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_406_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxSettlementsDomestic_dp_uPure_zbaVamyh8KP5" 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_zkI3iA3V8Gyi" 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_zs92JjtbYpA" 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_404_eus-gaap--EffectiveIncomeTaxRateReconciliationBeatPercent_dp_uPure_zqU91gplIxud" 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_40B_eus-gaap--EffectiveIncomeTaxRateReconciliationFdiiPercent_dp_uPure_zvxcwWUNG8Qk" 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_407_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherReconcilingItemsPercent_dp_uPure_zqyUGuCBu59d" 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_400_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_dp_uPure_zB5OX9q08T84" 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_308_134_z1ZuvOVVIcQ" 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_497_20220101__20221231_zdBqtJOCeUMd" 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_493_20210101__20211231_zdcLqsxwgg4h" 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_40B_eus-gaap--CurrentFederalTaxExpenseBenefit_zFD4WpF8dJpi" 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_40E_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_zcg0tKVS1ur6" 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_308_134_z1ZuvOVVIcQ" 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_497_20220101__20221231_zdBqtJOCeUMd" 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_493_20210101__20211231_zdcLqsxwgg4h" 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_40B_eus-gaap--CurrentFederalTaxExpenseBenefit_zFD4WpF8dJpi" 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_40E_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_zcg0tKVS1ur6" 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_307_134_zCgDfEgqwFj1" 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; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td id="xdx_497_20221231_zedPakwVRRbk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td colspan="2" id="xdx_49F_20211231_zi0OgO9EbxU" style="border-bottom: Black 1pt solid; 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_zDPAZMgCnxsk" 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_40D_eus-gaap--OperatingLossCarryforwards_iI_zUXcRPs5O2m7" 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_40D_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsEmployeeCompensation_iI_zdfuqZz1Mq8" 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_40D_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsOther_iI_zeQ6tgOMWeec" 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_401_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_iI_zcKuIJV8b8lb" 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_40D_eus-gaap--OperatingLossCarryforwardsValuationAllowance_iNI_di_zNxdhz4UBty3" 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_404_eus-gaap--DeferredTaxLiabilitiesAbstract_iB_zGNNRQd2w5X9" 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_40B_ecustom--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsDepreciation_iI_zv0wv8dKiKFd" 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 Carryforwards <table cellpadding="0" cellspacing="0" id="xdx_30D_134_zwnpchcWe2Vb" 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; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td id="xdx_499_20221231_zFkyLe6Koa87" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td id="xdx_49E_20211231_zzsOxt41XQFe" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; 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--DeferredTaxAssetsOperatingLossCarryforwardsDomestic_iNI_di_zlRZTkTBvpV" 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_400_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwardsStateAndLocal_iNI_di_zlXjnTy3v948" 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_404_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost_iI_zjrqi4yxEmff" 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_ze49BD8c1JF1" 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_40D_ecustom--DeferredTaxAssetsValuationAllowanceOne_iNI_di_ztylhHFzaFg9" 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_409_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_zXybbIyOXWAe" 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.