Post-Qualification Offering Circular Amendment No. 6
File No. 024-12629
OFFERING CIRCULAR
Nextel Medical Corp.
(formerly Exousia Pro, Inc., and formerly Marijuana, Inc.)
Up to 60,000,000 Shares of Common Stock Offered by the Company
Up to 15,000,000 Shares of Common Stock Offered by the Selling Shareholders
This Post-Qualification Offering Circular Amendment No. 6 amends the Offering Circular of Nextel Medical Corp., formerly Exousia Pro, Inc and formerly Marijuana, Inc., a Florida corporation (the “Company”), dated September 9, 2025, as qualified on September 8, 2025, and as supplemented December 4, 2025, Post-Qualification Offering Circular Amendment No. 1 dated January 14, 2026, and as supplemented January 14, 2026, January 15, 2026 and February 11, 2026, and Post-Qualification Offering Circular Amendment No. 5 dated March 26, 2026, as qualified on March 27, 2025, and as supplemented May 26, 2026, and as may be amended and supplemented from time to time, to: (1) revise upward the number of shares of Company common stock to be offered by the Company to 60,000,000 shares (the “Company Offered Shares”); and (2) revise the offering price of the 27,916,666 Company Offered Shares that remain unsold (the “Remaining Company Offered Shares”) and the 329,431 shares of Company common stock to be offered by selling shareholders (the “Selling Shareholders”) that remain unsold (the “Remaining Selling Shareholder Offered Shares”) to $[0.001-0.01].
By this Offering Circular, the Company is offering for sale a maximum of 60,000,000 Company Offered Shares, of which 32,083,334 shares have been sold for cash in the total amount of $295,000 and of which 27,916,666 shares, the Remaining Company Offered Shares, at a fixed price of $[0.001-0.01] per share, pursuant to Tier 1 of Regulation A of the United States Securities and Exchange Commission (the “SEC”). A minimum purchase of $5,000 of the Company Offered Shares is required in this offering; any additional purchase must be in an amount of at least $1,000. This offering is being conducted on a best-efforts basis, which means that there is no minimum number of Company Offered Shares that must be sold by us for this offering to close; thus, we may receive no or minimal proceeds from this offering. All proceeds from this offering will become immediately available to us and may be used as they are accepted. Purchasers of the Company Offered Shares will not be entitled to a refund and could lose their entire investments.
Also by this Offering Circular, the Selling Shareholders are offering for sale a maximum of 15,000,000 Selling Shareholder Offered Shares, of which 14,670,569 shares have been sold for cash in the total amount of $317,585, and 329,431 shares, the Remaining Selling Shareholder Offered Shares, at a fixed price of $[0.001-0.01]. Currently, $240,000 of principal amount convertible notes (including prior-converted notes, the “Subject Convertible Notes”), are convertible into shares of Company common stock (the shares of our common stock issued upon conversion of the Subject Convertible Notes are referred to sometimes as the “Conversion Shares” and are also referred to sometimes as the Selling Shareholder Offered Shares or the Remaining Selling Shareholder Offered Shares). Following each issuance of Conversion Shares, we intend to file a supplement to this Offering Circular pursuant to Rule 253(g)(2), wherein the exact number of Conversion Shares issued in payment of the Subject Convertible Notes will be disclosed. We will not receive any of the proceeds from the sale of the Selling Shareholder Offered Shares in this offering. A minimum purchase of $5,000 of the Selling Shareholder Offered Shares is required in this offering; any additional purchase must be in an amount of at least $1,000. We will pay all of the expenses of this offering (other than discounts and commissions payable with respect to the Selling Shareholder Offered Shares sold in the offering, if any). Our company will not be involved in any manner in the sales of the Selling Shareholder Offered Shares by the Selling Shareholder. (See “Use of Proceeds,” “Plan of Distribution” and “Selling Shareholder”).
Please see the “Risk Factors” section, beginning on page 3, for a discussion of the risks associated with a purchase of the Offered Shares.
This offering commenced September 9, 2025, and will terminate at the earliest of (a) the date on which all of the Offered Shares (Remaining Company Offered Shares and Remaining Selling Shareholder Shares), (b) December 24, 2026, or (c) the date on which this offering is earlier terminated by us, in our sole discretion. (See “Plan of Distribution”).
| Title of Class of Securities Offered and Offering Party | Total Number of Shares Offered | Number of Shares Sold to Date | Proceeds to Offeror(s) of Shares | Number of Remaining Shares to Be Sold | Price to Public of Remaining Shares to Be Sold | Proceeds to Offeror of Remaining Shares | Commissions (1) | Total Proceeds to Offeror(s) of Shares | ||||||||||||||||||||||||
| Common Stock Offered by Our Company | 60,000,000 | (A) | 32,083,334 | $ | 295,000 | 27,916,666 | (A) | $ | 0.01 | $ | 279,167 | $ | -0- | $ | 574,167 | |||||||||||||||||
| Common Stock Offered by the Selling Shareholders | 15,000,000 | (B)(2) | 14,670,569 | $ | 317,585 | 329,431 | (B) (3) | $ | 0.01 | $ | 3,294 | (4) | $ | -0- | $ | 320,879 | (5) | |||||||||||||||
| Totals | 75,000,000 | 46,753,903 | $ | 612,585 | 28,246,097 | $ | 182,461 | $ | -0- | $ | 895,046 | |||||||||||||||||||||
| (A) | These securities are being qualified pursuant to subparagraph (F) of Rule 251(d)(3)(i). | |||||||||||||||||||||||||||
| (B) | These securities are being qualified pursuant to subparagraph (A) of Rule 251(d)(3)(i). | |||||||||||||||||||||||||||
| (1) | Our company will not pay any commissions for the sale of Company Offered Shares in this Offering. We do not intend to offer and sell the Company Offered Shares through registered broker-dealers or utilize finders. However, should we determine to employ a registered broker-dealer or finder, information as to any such broker-dealer or finder shall be disclosed in a post-qualification amendment to this Offering Circular. | |||||||||||||||||||||||||||
| (2) | As of the date of this Post-Qualification Offering Circular No. 6, 14,670,569 of these shares of common stock has been issued as Conversion Shares. The unconverted Subject Convertible Notes are, by their terms, eligible for conversion into up to 329,431 Conversion Shares, at the election of the Selling Shareholders, at the offering price for all of the Offered Shares, $[0.001-0.01] per share converted. Following all such issuances, we intend to file a supplement to this Offering Circular pursuant to Rule 253(g)(2), wherein the exact number of Offered Shares issued in payment of the Subject Convertible Notes to be offered by the Selling Shareholders in this offering will be disclosed. References herein to the “Offered Shares” include the Remaining Selling Shareholder Offered Shares, unless the context requires otherwise. (See “Use of Proceeds,” “Plan of Distribution” and “Selling Shareholder”). | |||||||||||||||||||||||||||
| (3) | This number of Remaining Selling Shareholder Offered Shares represents the maximum number of shares of our common stock permitted to be offered by the Selling Shareholders in this offering, pursuant to Regulation A (30% of the number of shares of our common stock offered being offered by our company hereunder). | |||||||||||||||||||||||||||
| (4) | This amount represents the maximum amount that the Selling Shareholders would be able to derive from the sale of all Remaining Selling Shareholder Offered Shares. | |||||||||||||||||||||||||||
| (5) | We will not receive any of the proceeds from the sale of the Remaining Selling Shareholder Offered Shares in this offering. (See “Use of Proceeds” and “Selling Shareholders”). | |||||||||||||||||||||||||||
The terms of this offering were determined arbitrarily by our company. The offering price for the Offered Shares (Remaining Company Offered Shares and Remaining Selling Shareholder Offered Shares) does not necessarily bear any relationship to our company’s assets, book value, earnings or other established criteria of valuation. Accordingly, the offering price of the Offered Shares should not be considered as an indication of any intrinsic value of such securities. (See “Risk Factors—Risks Related to a Purchase of Offered Shares” and “Dilution”).
There is no escrow established for the proceeds from sales of the Company Offered Shares in this offering. (See “Risk Factors—Risks Related to a Purchase of Offered Shares”).
Our common stock is quoted in the over-the-counter under the symbol “MAJI” in the OTC Pink marketplace of OTC Link. On August 27, 2026, the closing price of our common stock was $ 0.0075 per share.
Investing in the Offered Shares is speculative and involves substantial risks, including the superior voting rights of our outstanding share of Series C Preferred Stock, which precludes current and future owners of our common stock, including the Offered Shares, from influencing any corporate decision. The single share of Series C Preferred Stock has the following voting rights: the single share of the Series C Preferred Stock shall be entitled to 51% of all votes in all matters requiring shareholder approval.
Our Chief Executive Officer, Mattew Dwyer, owns the single outstanding share of Series C Preferred Stock. Mr. Dwyer, will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction. (See “Risk Factors—Risks Related to a Purchase of the Offered Shares”).
THE SEC DOES NOT PASS UPON THE MERITS OF, OR GIVE ITS APPROVAL TO, ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE SEC. HOWEVER, THE SEC HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION.
The use of projections or forecasts in this offering is prohibited. No person is permitted to make any oral or written predictions about the benefits you will receive from an investment in Offered Shares.
No sale may be made to you in this offering if you do not satisfy the investor suitability standards described in this Offering Circular under “Plan of Distribution-State Law Exemption” and “Offerings to Qualified Purchasers-Investor Suitability Standards” (page 2). Before making any representation that you satisfy the established investor suitability standards, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on investing, we encourage you to refer to www.investor.gov.
This Offering Circular follows the disclosure format of Form S-1, pursuant to the General Instructions of Part II(a)(1)(ii) of Form 1-A.
The date of this Post-Qualification Offering Circular Amendment No. 6 is August 28, 2026.
FOR FLORIDA RESIDENTS:
PURSUANT TO SECTION 517.061(11)(A)(5) OF THE FLORIDA STATUTES, FLORIDA INVESTORS HAVE A THREE-DAY RIGHT OF RESCISSION. IF A FLORIDA INVESTOR HAS EXECUTED A SUBSCRIPTION AGREEMENT AND TENDERED THE CONSIDERATION FOR THE PURCHASE, HE MAY ELECT, WITHIN THREE BUSINESS DAYS AFTER SIGNING THE SUBSCRIPTION AGREEMENT OR BEING FIRST NOTIFIED OF THIS RIGHT, WHICHEVER IS LATER, TO WITHDRAW FROM THE SUBSCRIPTION AGREEMENT AND RECEIVE A FULL REFUND AND RETURN (WITHOUT INTEREST) OF ANY MONEY PAID BY HIM. A FLORIDA INVESTOR’S WITHDRAWAL WILL BE WITHOUT ANY FURTHER LIABILITY TO ANY PERSON. TO ACCOMPLISH SUCH WITHDRAWAL, A FLORIDA INVESTOR NEED ONLY SEND A LETTER OR TELEGRAM TO THE COMPANY AT THE ADDRESS SET FORTH IN THIS MEMORANDUM INDICATING HIS INTENTION TO WITHDRAW. SUCH LETTER OR TELEGRAM MUST BE SENT AND POSTMARKED PRIOR TO THE END OF THE AFOREMENTIONED THIRD BUSINESS DAY. IF A FLORIDA INVESTOR SENDS A LETTER, IT IS PRUDENT TO SEND IT BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO AN OFFICER OF THE COMPANY TO ENSURE THAT IT IS RECEIVED AND ALSO TO EVIDENCE THE TIME AND DATE WHEN IT IS MAILED. SHOULD A FLORIDA INVESTOR MAKE THIS REQUEST ORALLY, HE SHOULD ASK FOR WRITTEN CONFIRMATION THAT HIS REQUEST HAS BEEN RECEIVED. THE FOREGOING IS INTENDED TO CONSTITUTE THE NOTICE REQUIRED UNDER THE FLORIDA STATUTES. ACCORDINGLY, EACH PURCHASER WILL HAVE THREE DAYS AFTER THE FIRST TENDER OF CONSIDERATION IS MADE BY SUCH PURCHASER TO VOID HIS PURCHASE OF THESE SECURITIES.
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TABLE OF CONTENTS
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
The information contained in this Offering Circular includes some statements that are not historical and that are considered forward-looking statements. Such forward-looking statements include, but are not limited to, statements regarding our development plans for our business; our strategies and business outlook; anticipated development of our company; and various other matters (including contingent liabilities and obligations and changes in accounting policies, standards and interpretations). These forward-looking statements express our expectations, hopes, beliefs and intentions regarding the future. In addition, without limiting the foregoing, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words anticipates, believes, continue, could, estimates, expects, intends, may, might, plans, possible, potential, predicts, projects, seeks, should, will, would and similar expressions and variations, or comparable terminology, or the negatives of any of the foregoing, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this Offering Circular are based on current expectations and beliefs concerning future developments that are difficult to predict. We cannot guarantee future performance, or that future developments affecting our company will be as currently anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.
All forward-looking statements attributable to us are expressly qualified in their entirety by these risks and uncertainties. These risks and uncertainties, along with others, are also described below in the Risk Factors section. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You should not place undue reliance on any forward-looking statements and should not make an investment decision based solely on these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
The following summary highlights material information contained in this Offering Circular. This summary does not contain all of the information you should consider before purchasing our common stock. Before making an investment decision, you should read this Offering Circular carefully, including the Risk Factors section and the unaudited consolidated financial statements and the notes thereto. Unless otherwise indicated, the terms we, us and our refer and relate to Nextel Medical Corp., formerly Exousia Pro, Inc. and formerly Marijuana, Inc., a Florida corporation, including its subsidiaries.
Our Company
History. We were incorporated in the State of Nevada on April 28, 2010, under the name Norman Cay Development, Inc. On July 12, 2012, our corporate name changed to Discovery Gold Corporation. On August 19, 2019, our corporate name changed to GRN Holding Corporation. On August 4, 2022, our company redomiciled to the State of Florida. On November 13, 2023, our corporate name changed to Marijuana, Inc. On April 2, 2025, our corporate name changed to Exousia Pro, Inc. On March 17, 2026, our corporate name changed to Nextel Medical Corp..
Recent Change in Control. Effective October 30, 2024, a change in control of our company occurred. On such date, Earth Onyx, LLC, a company owned by our former Sole Director and Officer, sold 100 shares (the “Control Shares”), or 100% of the outstanding shares, of our Series A Preferred Stock to our current Sole Director Officer. Mr. Sheikh paid $60,000 in cash and delivered a promissory note (the “Closing Note”) to Earth Onyx, LLC in payment of the Control Shares. The Closing Note has a principal amount of $100,000 and is due on the later of 60 days from October 30, 2024, and the date on which Mr. Steinberg shall have delivered ready-to-file federal tax returns for the years ended December 31, 2022 and 2023, of our company. Mr. Sheikh and Earth Onyx, LLC entered into Pledge Agreement, to secure Mr. Sheikh’s payment obligations under the Closing Note.
Recent Acquisition; Exiting “Shell Company” Status. Effective December 31, 2024, pursuant to a stock purchase agreement with Ludwig Enterprises, Inc. (“Ludwig”), a publicly-traded company (symbol: LUDG), we acquired 100% of Exousia Ai, Inc., a Wyoming corporation (Exousia AI), and related assets, in consideration of a $100,000 promissory note (the “Ludwig Note”), the principal and interest of which is due on December 31, 2025, and 10,000 shares of our Series B Convertible Preferred Stock. In conjunction with the issuance of the Ludwig Note, we entered into a pledge agreement with Ludwig, to secure our timely payment of the Ludwig Note. Exousia AI is a biotechnology company in the field of exosomes. In the transaction, we secured a worldwide license for certain exosome technologies. (See “Business”).
With the acquisition of Exousia AI, our company exited “shell company” status.
Plan and Agreement of Reorganization – Exousia AI. On November 11, 2025, pursuant to a Plan and Agreement of Reorganization (the “Reorganization Agreement”), L A M Y, a Wyoming corporation (“LMMY”), acquired our 70%-owned subsidiary, Exousia Ai, in exchange for shares of LMMY common stock. Following the closing of the Reorganization Agreement, our company holds 41,223,000 shares, or approximately 57% (as measured after the transaction), of LMMY common stock. Our company’s President, Matthew Dwyer, serves as LMMY’s sole officer and director.
The transaction with LMMY was pursued and consummated by the Company, after the Company’s Board of Directors had determined, after investigating the LMMY opportunity, that the best interests of the Company and its shareholders would be best served by acquiring a controlling interest in LMMY, in exchange for its ownership in Exousia Ai.
The consummation of the Reorganization Agreement did not change the overall operations of our company, as control of LMMY remains with our company. The primary purposes of such transaction were to gain access to a separate funding platform for what we believe to be a potentially extremely dynamic and valuable company in Exousia AI and, thereby, to achieve greater shareholder value for our company’s shareholders. There is no assurance that our strategy will be successful in achieving such objectives. (See “Risk Factors”).
Acquisition Agreements. On May 29, 2026, we entered into definitive acquisition agreements (the “Acquisition Agreements”) to acquire two related Tennessee-based companies, Jumpstart Rx, LLC and Island 40 Group, LLC (collectively, the “Tennessee Companies”), which, together, operate as one entity and own two telehealth and clinical solutions platforms: JumpstartRx and NueVistraMed. Pursuant to the Acquisition Agreements, as amended, we are required to deliver total consideration of $12.75 million, consisting of $3.5 million in cash and $9.25 million in preferred stock. The Tennessee Companies are required to deliver PCAOB-firm audited financial statements at the closing of the Acquisition Agreements, which, as of the date of this Offering Statement, have not been completed. We do not currently possess the funds necessary to consummate the Acquisition Agreements and there is no assurance that we will be able to obtain such funds. We are unable to predict the timing of the consummation of the Acquisition Agreements. (See “Business”).
Current Business. Our company is a clinical stage biotechnology company developing new ways to exploit the therapeutic potential of exosomes, initially focused in the field of oncology. Our proprietary manufacturing process utilizes plant-based materials to create exosomes used in a number of commercial applications, including dermatology and dentistry. Our proprietary loading technology can infuse a range of molecules from drugs to DNA. Because our company owns control of LMMY, the operations of Exousia AI are presented in the following discussion. (See “Business”).
The figure below depicts the current structure of our company.

| 1 |
| Securities Offered by our Company | 60,000,000 Offered Shares (the Company Offered Shares), including the 27,916,666 Remaining Company Offered Shares. | |
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Offering Price |
$[0.001-0.01] per Remaining Company Offered Share and per Remaining Selling Shareholder Offered Share.
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Shares Outstanding Before This Offering |
89,360,970 shares issued and outstanding as of the date hereof. | |
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Shares Outstanding After This Offering |
117,607,067 shares issued and outstanding, assuming the sale of all of the Remaining Company Offered Shares hereunder and the issuance of 11,329,431 Conversion Shares (the Remaining Selling Shareholder Offered Shares) to the Selling Shareholders, upon conversion of the unconverted Subject Convertible Notes.
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Minimum Number of Company Offered Shares to Be Sold in This Offering |
There is no minimum number of Remaining Company Offered Shares to be sold in this offering. A minimum purchase of $5,000 of the Offered Shares, whether Remaining Company Offered Shares or Remaining Selling Shareholder Offered Shares, is required in this offering; any additional purchase must be in an amount of at least $1,000. | |
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Selling Shareholder |
As of the date of this Post-Qualification Offering Circular No. 6, 14,670,569 of these shares of common stock have been issued as Conversion Shares. The unconverted Subject Convertible Notes are, by their terms, eligible for conversion into up to 11,329,431 Conversion Shares, at the election of the Selling Shareholders, at a conversion price equal to the lesser of $0.01 or 75% of the then-market price of our common stock per share converted. Following each issuance of Conversion Shares, we intend to file a supplement to this Offering Circular pursuant to Rule 253(g)(2), wherein the exact number of Conversion Shares issued in payment of the Subject Convertible Notes will be disclosed. but we will pay all of the expenses of this offering (other than discounts and commissions payable with respect to the Selling Shareholder Offered Shares sold in the offering, if any). Our company will not be involved in any manner in the sales of the Selling Shareholder Offered Shares by the Selling Shareholders. (See “Use of Proceeds,” “Plan of Distribution” and “Selling Shareholder”).
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| Disparate Voting Rights |
Our outstanding shares of Series C Preferred Stock possesses superior voting rights, which precludes current and future owners of our common stock, including the Offered Shares, from influencing any corporate decision. The Series C Preferred Stock has the following voting rights: the single share of the Series C Preferred Stock shall be entitled to 51% of all votes in all matters requiring shareholder approval
Our Chief Executive Officer, Matthew Dwyer, owns the single outstanding share of the Series C Preferred Stock. Mr. Dwyer, will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction (See “Risk Factors—Risks Related to a Purchase of the Offered Shares”). | |
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Investor Suitability Standards |
The Offered Shares (Remaining Company Offered Shares and Remaining Selling Shareholder Offered Shares) may only be purchased by investors residing in a state in which this Offering Circular is duly qualified who have either (a) a minimum annual gross income of $70,000 and a minimum net worth of $70,000, exclusive of automobile, home and home furnishings, or (b) a minimum net worth of $250,000, exclusive of automobile, home and home furnishings.
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| Market for our Common Stock | Our common stock is quoted in the over-the-counter market under the symbol “MAJI” in the OTC Pink marketplace of OTC Link. | |
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Termination of this Offering |
This offering commenced September 9, 2025, and will terminate at the earliest of (a) the date on which all of the Offered Shares (Remaining Company Offered Shares and Remaining Selling Shareholder Shares) the maximum offering has been sold, (b) December 24, 2026, or (c) the date on which this offering is earlier terminated by us, in our sole discretion.
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| Use of Proceeds | We will apply the cash proceeds from sales of Company Offered Shares in this offering for investigational new drug trials, new product development, acquisition of lab equipment, marketing and working capital. (See “Use of Proceeds”). | |
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Risk Factors |
An investment in the Offered Shares (Remaining Company Offered Shares and Remaining Selling Shareholder Offered Shares) involves a high degree of risk and should not be purchased by investors who cannot afford the loss of their entire investments. You should carefully consider the information included in the Risk Factors section of this Offering Circular, as well as the other information contained in this Offering Circular, prior to making an investment decision regarding the Offered Shares (Remaining Company Offered Shares and Remaining Selling Shareholder Offered Shares).
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| Corporate Information | Our principal executive offices are located at 7901 4th Street N #23494, St. Petersburg, Florida 33702; our telephone number is 509-605-6533; our corporate website is located at www.exousiapro.com. No information found on our company’s website is part of this Offering Circular. |
| 2 |
Continuing Reporting Requirements Under Regulation A
As a Tier 1 issuer under Regulation A, we will be required to file with the SEC a Form 1-Z (Exit Report Under Regulation A) upon the termination of this offering. We will not be required to file any other reports with the SEC following this offering.
However, during the pendency of this offering and following this offering, we intend to file quarterly and annual financial reports and other supplemental reports with OTC Markets, which will be available at www.otcmarkets.com.
All of our future periodic reports, whether filed with OTC Markets or the SEC, will not be required to include the same information as analogous reports required to be filed by companies whose securities are listed on the NYSE or NASDAQ, for example.
[Note: References in this Risk Factors section to “Offered Shares” include the Remaining Company Offered Shares and the Remaining Selling Shareholder Offered Shares, unless specifically indicated otherwise.]
An investment in the Offered Shares involves substantial risks. You should carefully consider the following risk factors, in addition to the other information contained in this Offering Circular, before purchasing any of the Offered Shares. The occurrence of any of the following risks might cause you to lose a significant part of your investment. The risks and uncertainties discussed below are not the only ones we face, but do represent those risks and uncertainties that we believe are most significant to our business, operating results, prospects and financial condition. Some statements in this Offering Circular, including statements in the following risk factors, constitute forward-looking statements. (See “Cautionary Statement Regarding Forward-Looking Statements”).
Risks Related to Our Company
We have incurred losses in prior periods, and losses in the future could cause the quoted price of our common stock to decline or have a material adverse effect on our financial condition, our ability to pay our debts as they become due, and on our cash flows. We have incurred losses in prior periods. For the three months ended March 31, 2026 and 2025, we incurred a net loss of $86,130 (unaudited) and $132,091 (unaudited), respectively, and, as of March 31, 2026, we had retained earnings of $613,400 (unaudited). For the years ended December 31, 2025 and 2024, our predecessor operations reported net income of $13,518,223 (unaudited) and a net loss of $164,001 (unaudited), respectively, and, as of December 31, 2025, we had an accumulated deficit of $12,904,748 (unaudited).
These foregoing operational results are those of our accounting predecessor. For several years prior to December 31, 2024, the date of our acquisition of Exousia AI, we were a “shell company.”
Any losses in the future could cause the quoted price of our common stock to decline or have a material adverse effect on our financial condition, our ability to pay our debts as they become due, and on our cash flows.
There is doubt about our ability to continue as a viable business. We have not earned a profit from our operations during recent financial periods. There is no assurance that we will ever earn a profit from our operations in future financial periods.
We may be unable to obtain sufficient capital to implement our full plan of business. Currently, we do not have sufficient financial resources with which to establish our growth strategies. There is no assurance that we will be able to obtain sources of financing, including in this offering, in order to satisfy our working capital needs.
We do not have a successful operating history. For several years prior to December 31, 2024, the date of our acquisition of Exousia AI, we were a “shell company,” that is, our company had minimal assets, generated no revenues and incurred a net loss from operations. Because neither our company nor Exousia AI, our accounting predecessor, has never earned a profit, an investment in the Offered Shares is speculative in nature. Because of this lack of operating success, it is difficult to forecast our future operating results. Additionally, our operations will be subject to risks inherent in the implementation of new business strategies, including, among other factors, efficiently deploying our capital, developing and implementing our marketing campaigns and strategies and developing greater awareness. Our performance and business prospects will suffer if we are unable to overcome the following challenges, among others:
| - | our dependence upon external sources for the financing of our operations, particularly given that there are concerns about our ability to continue as a going concern; |
| - | our ability to execute our business strategies; |
| - | our ability to manage our expansion, growth and operating expenses; |
| - | our ability to finance our business; |
| - | our ability to compete and succeed in highly a competitive industry; and |
| - | future geopolitical events and economic crisis. |
| 3 |
There are risks and uncertainties encountered by under-capitalized companies. As an under-capitalized company, we are unable to offer assurance that we will be able to overcome our lack of capital, among other challenges.
We may not be successful in establishing our exosome-based business model. We are unable to offer assurance that we will be successful in establishing our exosome-based business model. Should we fail to do so, you can expect to lose your entire investment in the Offered Shares.
We may never earn a profit in future financial periods. Because we lack a successful operating history, we are unable to offer assurance that we will ever earn a profit in future financial periods.
If we are unable to manage future expansion effectively, our business may be adversely impacted. In the future, we may experience rapid growth in our operations, which could place a significant strain on our company’s infrastructure, in general, and our internal controls and other managerial, operating and financial resources, in particular. If we are unable to manage future expansion effectively, our business would be harmed. There is, of course, no assurance that we will enjoy rapid development in our business.
We currently depend on the efforts of executive officers; the loss of these persons could disrupt our operations and adversely affect the further development of our business. Our success in establishing implementing our exosome-based business strategies will depend, primarily, on the continued service of our executive officer, Matthew Dwyer. The loss of such executive officer, for any reason, could seriously impair our ability to execute our business strategies, which could have a materially adverse effect on our business and future results of operations. We have not entered into an employment agreement with Mr. Dwyer. We have not purchased any key-man life insurance.
If we are unable to recruit and retain key personnel, our business may be harmed. If we are unable to attract and retain key personnel, our business may be harmed. Our failure to enable the effective transfer of knowledge and facilitate smooth transitions with regard to our key employees could adversely affect our long-term strategic planning and execution.
Our exosome-based strategies are not based on independent market studies. We have not commissioned any independent market studies with respect to the potential markets for our exosome-based products. Rather, our implementation plans and achieving profitability are based on the experience, judgment and assumptions of our management. If these assumptions prove to be incorrect, we may not be successful in establishing our business.
Our Board of Directors may change our policies without shareholder approval. Our policies, including any policies with respect to investments, leverage, financing, growth, debt and capitalization, will be determined by our Board of Directors or officers to whom our Board of Directors delegates such authority. Our Board of Directors will also establish the amount of any dividends or other distributions that we may pay to our shareholders. Our Board of Directors or officers to which such decisions are delegated will have the ability to amend or revise these and our other policies at any time without shareholder vote. Accordingly, our shareholders will not be entitled to approve changes in our policies, which policy changes may have a material adverse effect on our financial condition and results of operations.
Risks Related to Our Business
We are in competition with companies that are larger, more established and better capitalized than are we. We are in competition with companies that are larger, more established and better capitalized than are we. The medical products development industry and the consumer medical products industry are highly competitive, rapidly evolving and subject to constant change. The number of competitors in each of these industries is substantial. We expect that, if our products establish a market niche, competition will arise from a variety of sources, including from large health-related companies to other smaller national and regional health-related companies.
Many of our potential competitors possess:
● greater financial, technical, personnel, promotional and marketing resources;
● longer operating histories;
● greater name recognition; and
● larger consumer bases.
We cannot assure you that we will be able to compete effectively in our extremely competitive industry.
Our planned consumer medical products will compete in highly competitive markets, which would result in pressure on our profit margins and limit our ability to establish, maintain and increase the market share of our products. All of our future products will be subject to significant competition and pricing pressures. We will experience significant competitive pricing pressures, as well as competitive products. While we expect that our exosome-infused products will possess unique competitive features as compared to those offered by other companies, several competitors can be expected to offer products with prices that may match or are lower than ours.
It is possible that one or more of our competitors could develop a significant research advantage over our company that allows them to provide superior products or pricing, which could put us at a competitive disadvantage. Continued pricing pressure or improvements in research and shifts in customer preferences away from products such as our planned products could adversely impact our customer base or pricing structure and have a material and adverse effect on our business, financial condition, results of operations and cash flows.
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Any future adverse publicity or consumer perception of our planned products and any similar products distributed by others could harm our reputation and adversely affect our sales and revenues. We expect that we will be highly dependent upon positive consumer perceptions of the quality of our planned products, as well as similar products distributed by other companies. Consumer perception of our products can be substantially influenced by scientific research or findings, national media attention and other publicity about product use. Adverse publicity from these sources regarding the safety, quality or efficacy of our products, or products similar to ours, could harm our reputation and results of operations. The mere publication of news articles or reports asserting that such products may be harmful or questioning their efficacy could have a material adverse effect on our business, financial condition and results of operations, regardless of whether such news articles or reports are scientifically supported or whether the claimed harmful effects would be present at the dosages recommended for such products.
If we are unable to develop and later market our products under development in a timely manner or at all, or if competitors develop or introduce similar products that achieve commercialization before our products enter the market, the demand for our products may decrease or the products could become obsolete. Our planned products will compete in extremely competitive markets, where competitors may already be well established. We expect that competitors will continue to innovate and to develop and introduce similar products that could be competitive in both price and performance. Competitors may succeed in developing or introducing similar products earlier than, obtaining regulatory approvals and clearances for such products before our products are approved and cleared, or developing more effective products. In addition, competitors may have products which may achieve commercialization before our products enter the market.
If our planned products do not provide the beneficial effects intended, our business may suffer. Our planned products are expected to contain exosomes and other innovative ingredients or combinations of ingredients. It is possible that one or more of our planned products could have certain side effects if not used as directed or if used by a consumer that has certain medical conditions. Furthermore, there can be no assurance that any of our planned products, even when used as directed, will have the effects intended or will not have harmful side effects. Should any of our planned products cause unwanted side effects or not have the results intended, it could have a material adverse effect on our business, financial condition and results of operations.
Our marketing strategies for our planned products may not be successful. We will be required to attract customers to our products, all of which will be new upon their introduction. Should our marketing strategies fail to establish sales of our planned products, our operations will be adversely affected.
Our business may be affected by litigation and government investigations. We may, from time to time, receive inquiries and subpoenas and other types of information requests from government authorities and others and we may become subject to claims and other actions related to our business activities. While the ultimate outcome of investigations, inquiries, information requests and legal proceedings is difficult to predict, defense of litigation claims can be expensive, time-consuming, and distracting, and adverse resolutions or settlements of those matters may result in, among other things, modification of our business practices, costs and significant payments, any of which could have a material adverse effect on our business, financial condition, results of operations and prospects.
There will be no third-party oversight over the manufacturer of our planned products, should we determine to contract for their manufacture. For our planned products, we may elect to engage one or more third-party manufacturers whose facilities are FDA-approved. While such facilities are inspected by the FDA, FDA inspections may not be conducted on a regular basis. Further, we do not intend to employ an independent third party to inspect regularly any such facility nor will our management regularly visit such facility to conduct a quality control review. As such, there is a risk that the quality of our planned products could decline. Any decline, or perception of decline, in the quality of our planned products could adversely affect our reputation and consequently adversely affect our results of operations and revenue.
The sale of our planned products will involve product liability and related risks that could expose us to significant insurance and loss expenses. We will face an inherent risk of exposure to product liability claims if the use of our planned products results in, or is believed to have resulted in, illness or injury. In addition, interactions of these planned products with other products, prescription medicines and over-the-counter drugs have not been fully explored or understood and may have unintended consequences.
Any product liability claim may increase our costs and adversely affect our revenue and operating income. Moreover, liability claims arising from a serious adverse event may increase our costs through higher insurance premiums and deductibles and may make it more difficult to secure adequate insurance coverage in the future. In addition, our product liability insurance may fail to cover future product liability claims, which, if adversely determined, could subject us to substantial monetary damages.
We will be subject to product recalls. Manufacturers and distributors of products are sometimes subject to the recall or return of their products for a variety of reasons, including product defects, such as contamination, unintended harmful side effects or interactions with other substances, packaging safety and inadequate or inaccurate labeling disclosure. If any of our planned products are recalled due to an alleged product defect or for any other reason, we could be required to incur the unexpected expense of the recall and any legal proceedings that might arise in connection with the recall. We may lose a significant amount of sales and may not be able to replace those sales at an acceptable margin or at all. In addition, a product recall may require significant management attention. There can be no assurance that any quality, potency or contamination problems will be detected in time to avoid unforeseen product recalls, regulatory action or lawsuits. Additionally, if one of our products were subject to recall, the image of that product and our company could be harmed. A recall for any of the foregoing reasons could lead to decreased demand for our products and could have a material adverse effect on our results of operations and financial condition. Additionally, product recalls could lead to increased scrutiny of our operations by the FDA or other regulatory agencies, requiring further management attention and potential legal fees and other expenses.
Our intellectual property rights are valuable, and any inability to protect them could reduce the value of our products and brand. We have invested, and will continue to invest, resources to protect our brands and intellectual property rights. However, we may be unable or unwilling to strictly enforce our intellectual property rights, including our patents and trademarks, from infringement. Our failure to enforce our intellectual property rights could diminish the value of our brands and product offerings and harm our business and future growth prospects.
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If we are unable to obtain and maintain protection of our intellectual property, which are costly to maintain, the value of our products may be adversely affected. Our industry is characterized by vigorous pursuit and protection of intellectual property rights, which has resulted in protracted and expensive litigation for several companies. Third parties may assert claims of misappropriation of trade secrets or infringement of intellectual property rights against us or against our end customers or partners for which we may be liable.
As our business expands, the number of products and competitors in our markets can be expected to increase and product overlaps to occur, and infringement claims may increase in number and significance. Intellectual property lawsuits are subject to inherent uncertainties due to the complexity of the technical issues involved, and we cannot be certain that we would be successful in defending ourselves against intellectual property claims. Further, many potential litigants have the capability to dedicate substantially greater resources than we can to enforce their intellectual property rights and to defend claims that may be brought against them. Furthermore, a successful claimant could secure a judgment that requires us to pay substantial damages or prevents us from distributing products or performing certain services.
We will attempt to protect our intellectual property position, in part, by filing patent applications related to our developed proprietary technologies, inventions and improvements that are important to our business. However, our patent and trademark positions are not likely, by themselves, to prevent others from commercializing products that compete directly with our products. In addition, any patents and trademarks that may be owned by us or issued to us could be challenged, invalidated or held to be unenforceable. We also note that any patent granted may not provide a competitive advantage to us. Our competitors may independently develop technologies that are substantially similar or superior to our technologies. Further, third parties may design around our proprietary products and technologies.
We rely on certain trade secrets and we may not be able to adequately protect our trade secrets even with contracts with our personnel and third parties. Also, any third party could independently develop and have the right to use, our trade secret, know-how and other proprietary information. If we are unable to protect our intellectual property rights, our business, prospects, financial condition and results of operations could suffer materially.
Risks Related to Compliance and Regulation
We will not have reporting obligations under Sections 14 or 16 of the Securities Exchange Act of 1934, nor will any shareholders have reporting requirements of Regulation 13D or 13G, nor Regulation 14D. So long as our common shares are not registered under the Exchange Act, our directors and executive officers and beneficial holders of 10% or more of our outstanding common shares will not be subject to Section 16 of the Exchange Act. Section 16(a) of the Exchange Act requires executive officers and directors and persons who beneficially own more than 10% of a registered class of equity securities to file with the SEC initial statements of beneficial ownership, reports of changes in ownership and annual reports concerning their ownership of common shares and other equity securities, on Forms 3, 4 and 5, respectively. Such information about our directors, executive officers and beneficial holders will only be available through periodic reports we file with OTC Markets.
Our common stock is not registered under the Exchange Act and we do not intend to register our common stock under the Exchange Act for the foreseeable future; provided, however, that we will register our common stock under the Exchange Act if we have, after the last day of any fiscal year, more than either (1) 2,000 persons; or (2) 500 shareholders of record who are not accredited investors, in accordance with Section 12(g) of the Exchange Act.
Further, as long as our common stock is not registered under the Exchange Act, we will not be subject to Section 14 of the Exchange Act, which, among other things, prohibits companies that have securities registered under the Exchange Act from soliciting proxies or consents from shareholders without furnishing to shareholders and filing with the SEC a proxy statement and form of proxy complying with the proxy rules.
The reporting required by Section 14(d) of the Exchange Act provides information to the public about persons other than the company who is making the tender offer. A tender offer is a broad solicitation by a company or a third party to purchase a substantial percentage of a company’s common stock for a limited period of time. This offer is for a fixed price, usually at a premium over the current market price, and is customarily contingent on shareholders tendering a fixed number of their shares.
In addition, as long as our common stock is not registered under the Exchange Act, our company will not be subject to the reporting requirements of Regulation 13D and Regulation 13G, which require the disclosure of any person who, after acquiring directly or indirectly the beneficial ownership of any equity securities of a class, becomes, directly or indirectly, the beneficial owner of more than 5% of the class.
There may be deficiencies with our internal controls that require improvements. Our company is not required to provide a report on the effectiveness of our internal controls over financial reporting. We are in the process of evaluating whether our internal control procedures are effective and, therefore, there is a greater likelihood of undiscovered errors in our internal controls or reported financial statements as compared to issuers that have conducted such independent evaluations.
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Risks Related to Our Organization and Structure
As a non-listed company conducting an exempt offering pursuant to Regulation A, we are not subject to a number of corporate governance requirements, including the requirements for independent board members. As a non-listed company conducting an exempt offering pursuant to Regulation A, we are not subject to a number of corporate governance requirements that an issuer conducting an offering on Form S-1 or listing on a national stock exchange would be. Accordingly, we are not required to have (a) a board of directors of which a majority consists of independent directors under the listing standards of a national stock exchange, (b) an audit committee composed entirely of independent directors and a written audit committee charter meeting a national stock exchange’s requirements, (c) a nominating/corporate governance committee composed entirely of independent directors and a written nominating/ corporate governance committee charter meeting a national stock exchange’s requirements, (d) a compensation committee composed entirely of independent directors and a written compensation committee charter meeting the requirements of a national stock exchange, and (e) independent audits of our internal controls. Accordingly, you may not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of a national stock exchange.
Our holding company structure makes us dependent on our subsidiaries for our cash flow and could serve to subordinate the rights of our shareholders to the rights of creditors of our subsidiaries, in the event of an insolvency or liquidation of any such subsidiary. Our company acts as a holding company and, accordingly, substantially all of our operations are conducted through our subsidiaries. Such subsidiaries will be separate and distinct legal entities. As a result, substantially all of our cash flow will depend upon the earnings of our subsidiaries. In addition, we will depend on the distribution of earnings, loans or other payments by our subsidiaries. No subsidiary will have any obligation to provide our company with funds for our payment obligations. If there is an insolvency, liquidation or other reorganization of any of our subsidiaries, our shareholders will have no right to proceed against their assets. Creditors of those subsidiaries will be entitled to payment in full from the sale or other disposal of the assets of those subsidiaries before our company, as a shareholder, would be entitled to receive any distribution from that sale or disposal.
Risks Related to a Purchase of the Offered Shares
The single outstanding share of Series C Convertible Preferred Stock preclude current and future owners of our common stock from influencing any corporate decision. Our Chief Executive Officer, Matthew Dwyer, owns all of the single outstanding share of our Series C Convertible Preferred Stock. The Series C Convertible Preferred Stock has the following voting rights: the single share of the Series C Preferred Stock shall be entitled to 51% of all votes in all matters requiring shareholder approval. Mr. Dwyer will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction. (See “Security Ownership of Certain Beneficial Owners and Management”).
The market overhang represented by the potential conversion of our single outstanding share of Series C Convertible Preferred Stock into our common stock could have a negative impact on the market price of our common stock and could impair our ability to obtain needed capital. The market overhang represented by the potential conversion of our single outstanding share of Series C Convertible Preferred Stock into a large number of shares of our common stock could cause the market for our common stock to remain or, eventually, become weak, due to market fears of such conversions. However, we are unable to predict the effect that any such conversion event would have on the market price of our common stock.
Additionally, the existence of such market overhang could result in our inability to obtain capital, including in this offering, on favorable terms or at all. In such circumstance, our ability to pursue our plan of business and to earn a profit would be impaired. There is no assurance that we will be able to overcome any adverse effects resulting from the existence of such market overhang.
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There is no minimum offering and no person has committed to purchase any of the Offered Shares. We have not established a minimum offering hereunder, which means that we will be able to accept even a nominal amount of proceeds, even if such amount of proceeds is not sufficient to permit us to achieve any of our business objectives. In this regard, there is no assurance that we will sell any of the Offered Shares or that we will sell enough of the Offered Shares necessary to achieve any of our business objectives. Additionally, no person is committed to purchase any of the Offered Shares.
We may seek additional capital that may result in shareholder dilution or that may have rights senior to those of our common stock. From time to time, we may seek to obtain additional capital, either through equity, equity-linked or debt securities. The decision to obtain additional capital will depend on, among other factors, our business plans, operating performance and condition of the capital markets. If we raise additional funds through the issuance of equity, equity-linked or debt securities, those securities may have rights, preferences or privileges senior to the rights of our common stock, which could negatively affect the market price of our common stock or cause our shareholders to experience dilution.
You may never realize any economic benefit from a purchase of Offered Shares (Remaining Company Offered Shares and Remaining Selling Shareholder Offered Shares). Because our common stock is volatile and thinly traded, there is no assurance that you will ever realize any economic benefit from your purchase of Offered Shares (Remaining Company Offered Shares and Remaining Selling Shareholder Offered Shares).
We do not intend to pay dividends on our common stock. We intend to retain earnings, if any, to provide funds for the implementation of our business strategy. We do not intend to declare or pay any dividends in the foreseeable future. Therefore, there can be no assurance that holders of our common stock will receive cash, stock or other dividends on their shares of our common stock, until we have funds which our Board of Directors determines can be allocated to dividends.
Our shares of common stock are Penny Stock, which may impair trading liquidity. Disclosure requirements pertaining to penny stocks may reduce the level of trading activity in the market for our common stock and investors may find it difficult to sell their shares. Trades of our common stock will be subject to Rule 15g-9 of the SEC, which rule imposes certain requirements on broker-dealers who sell securities subject to the rule to persons other than established customers and accredited investors. For transactions covered by the rule, broker-dealers must make a special suitability determination for purchasers of the securities and receive the purchaser’s written agreement to the transaction prior to sale. The SEC also has rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks generally are equity securities with a price of less than $5.00 (other than securities registered on certain national securities exchanges or quoted on the NASDAQ system, provided that current price and volume information with respect to transactions in that security is provided by the exchange or system). The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document that provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction, and monthly account statements showing the market value of each penny stock held in the customer’s account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer’s confirmation.
Our common stock is thinly traded and its market price may become highly volatile. There is currently only a limited market for our common stock. A limited market is characterized by a relatively limited number of shares in the public float, relatively low trading volume and a small number of brokerage firms acting as market makers. The market for low priced securities is generally less liquid and more volatile than securities traded on national stock markets. Wide fluctuations in market prices are not uncommon. No assurance can be given that the market for our common stock will continue. The price of our common stock may be subject to wide fluctuations in response to factors such as the following, some of which are beyond our control:
| - | quarterly variations in our operating results; |
| - | operating results that vary from the expectations of investors; |
| - | changes in expectations as to our future financial performance, including financial estimates by investors; |
| - | reaction to our periodic filings, or presentations by executives at investor and industry conferences; |
| - | changes in our capital structure; |
| - | announcements of innovations or new services by us or our competitors; |
| - | announcements by us or our competitors of significant contracts, acquisitions, strategic partnerships, joint ventures or capital commitments; |
| - | lack of success in the expansion of our business operations; |
| - | announcements by third parties of significant claims or proceedings against our company or adverse developments in pending proceedings; |
| - | additions or departures of key personnel; |
| - | asset impairment; |
| - | temporary or permanent inability to operate our retail location(s); and |
| - | rumors or public speculation about any of the above factors. |
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The terms of this offering were determined arbitrarily. The terms of this offering were determined arbitrarily by us. The offering price for the Offered Shares does not necessarily bear any relationship to our company’s assets, book value, earnings or other established criteria of valuation. Accordingly, the offering price of the Offered Shares should not be considered as an indication of any intrinsic value of such securities. (See “Dilution”).
Our common stock is subject to price volatility unrelated to our operations. The market price of our common stock could fluctuate substantially due to a variety of factors, including market perception of our ability to achieve our planned growth, quarterly operating results of other companies in the same industry, trading volume in our common stock, changes in general conditions in the economy and the financial markets or other developments affecting our company’s competitors or our company itself. In addition, the over-the-counter stock market is subject to extreme price and volume fluctuations in general. This volatility has had a significant effect on the market price of securities issued by many companies for reasons unrelated to their operating performance and could have the same effect on our common stock.
Future sales of our common stock, or the perception in the public markets that these sales may occur, could reduce the market price of our common stock. In general, our officers and directors and major shareholders, as affiliates, under Rule 144 may not sell more than one percent of the total issued and outstanding shares in any 90-day period, and must resell the shares in an unsolicited brokerage transaction at the market price. The availability for sale of substantial amounts of our common stock under Rule 144 or otherwise could reduce prevailing market prices for our common stock.
You will suffer dilution in the net tangible book value of the Offered Shares you purchase in this offering. If you acquire any Offered Shares, you will suffer immediate dilution, due to the lower book value per share of our common stock compared to the purchase price of the Offered Shares in this offering. (See “Dilution”).
As an issuer of penny stock, the protection provided by the federal securities laws relating to forward looking statements does not apply to us. Although federal securities laws provide a safe harbor for forward-looking statements made by a public company that files reports under the federal securities laws, this safe harbor is not available to issuers of penny stocks. As a result, we will not have the benefit of this safe harbor protection in the event of any legal action based upon a claim that the material provided by us contained a material misstatement of fact or was misleading in any material respect because of our failure to include any statements necessary to make the statements not misleading. Such an action could hurt our financial condition.
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Ownership Dilution
[Note: References in this Ownership Dilution section to “Offered Shares” include the Remaining Company Offered Shares and the Remaining Selling Shareholder Offered Shares, unless specifically indicated otherwise.]
The information under “Investment Dilution” below does not take into account the potential conversion of the single outstanding share of Series C Convertible Preferred Stock, at any time, into a number of shares of common stock equal to 51% of the outstanding shares on the date of such conversion. (See “Risk Factors—Risks Related to a Purchase of the Offered Shares,” “Description of Securities—Series C Convertible Preferred Stock” and “Security Ownership of Certain Beneficial Owners and Management”).
Investment Dilution
Dilution in net tangible book value per share to purchasers of our common stock in this offering represents the difference between the amount per share paid by purchasers of the Offered Shares (Remaining Company Offered Shares and Remaining Selling Shareholder Offered Shares) in this offering and the net tangible book value per share immediately after completion of this offering. In this offering, dilution is attributable primarily to our negative net tangible book value per share.
If you purchase Remaining Company Offered Shares in this offering, your investment will be diluted to the extent of the difference between your purchase price per Remaining Company Offered Share and the net tangible book value of our common stock after this offering. Our net tangible book value as of March 31, 2026, was $(984,807) (unaudited), or $(0.02) (unaudited) per share. Net tangible book value per share is equal to total assets ($14,360,302) minus the sum of total liabilities ($984,984) and intangible assets ($13,360,125) divided by the total number of shares outstanding at March 31, 2026 (52,360,970 shares).
Without taking into account issuances of shares of our common stock occurring after March 31, 2026, after deducting estimated offering expenses payable by us of $15,000, the tables below illustrate the dilution to purchasers of Remaining Company Offered Shares in this offering, on a pro forma basis, assuming 100%, 75%, 50% and 25% of the Company Offered Shares are sold at a per share price of $0.01.
| Assuming the Sale of 100% of the Remaining Company Offered Shares | ||||
| Assumed offering price per share | $ | 0.01 | ||
| Net tangible book value per share as of March 31, 2026 (unaudited) | $ | (0.02 | ) | |
| Increase in net tangible book value per share after giving effect to this offering | $ | 0.01 | ||
| Pro forma net tangible book value per share as of March 31, 2026 (unaudited) | $ | (0.01 | ) | |
| Dilution in net tangible book value per share to purchasers of Remaining Company Offered Shares in this offering | $ | 0.02 | ||
| Assuming the Sale of 75% of the Remaining Company Offered Shares | ||||
| Assumed offering price per share | $ | 0.01 | ||
| Net tangible book value per share as of March 31, 2026 (unaudited) | $ | (0.02 | ) | |
| Increase in net tangible book value per share after giving effect to this offering | $ | 0.01 | ||
| Pro forma net tangible book value per share as of March 31, 2026 (unaudited) | $ | (0.01 | ) | |
| Dilution in net tangible book value per share to purchasers of Remaining Company Offered Shares in this offering | $ | 0.02 | ||
| Assuming the Sale of 50% of the Remaining Company Offered Shares | ||||
| Assumed offering price per share | $ | 0.01 | ||
| Net tangible book value per share as of March 31, 2026 (unaudited) | $ | (0.02 | ) | |
| Increase in net tangible book value per share after giving effect to this offering | $ | 0.00 | ||
| Pro forma net tangible book value per share as of March 31, 2026 (unaudited) | $ | (0.02 | ) | |
| Dilution in net tangible book value per share to purchasers of Remaining Company Offered Shares in this offering | $ | 0.03 | ||
| Assuming the Sale of 25% of the Remaining Company Offered Shares | ||||
| Assumed offering price per share | $ | 0.01 | ||
| Net tangible book value per share as of March 31, 2026 (unaudited) | $ | (0.02 | ) | |
| Increase in net tangible book value per share after giving effect to this offering | $ | 0.00 | ||
| Pro forma net tangible book value per share as of March 31, 2026 (unaudited) | $ | (0.02 | ) | |
| Dilution in net tangible book value per share to purchasers of Remaining Company Offered Shares in this offering | $ | 0.03 | ||
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As of the date of this Offering Circular, we have sold a total of 32,083,334 Company Offered Shares, for an aggregate of $295,000 in proceeds. We have applied such proceeds for new product development, lab equipment, marketing and working capital.
The table below sets forth the estimated proceeds we would derive from this offering, assuming the sale of 25%, 50%, 75% and 100% of the Remaining Company Offered Shares at a per share price of $0.01. There is, of course, no guaranty that we will be successful in selling any of the Remaining Company Offered Shares in this offering.
Assumed Percentage of Company Offered Shares Sold in This Offering | ||||||||||||||||
| 25% | 50% | 75% | 100% | |||||||||||||
| Offered Shares sold | 6,979,167 | 13,958,333 | 20,937,500 | 27,916,666 | ||||||||||||
| Gross proceeds | $ | 69,792 | $ | 139,583 | $ | 209,375 | $ | 279,166 | ||||||||
| Offering expenses(1) | 15,000 | 15,000 | 15,000 | 15,000 | ||||||||||||
| Net proceeds | $ | 54,792 | $ | 124,583 | $ | 194,375 | $ | 264,166 | ||||||||
______________________
| (1) | Offering expenses include the following items, certain of which are estimated for purposes of this table: administrative expenses, legal and accounting fees, publishing/EDGAR and Blue-Sky compliance. |
The table below sets forth the proceeds we would derive from the sale of assuming the sale of 25%, 50%, 75% and 100% of the Remaining Company Offered Shares at a per share price of $0.01, assuming the payment of no sales commissions or finder’s fees and assuming the payment of expenses associated with this offering of $15,000. There is, of course, no guaranty that we will be successful in selling any of the Remaining Company Offered Shares. All amounts set forth below are estimates.
Use of Proceeds for Assumed Percentage of Remaining Company Offered Shares Sold in This Offering | ||||||||||||||||
| 25% | 50% | 75% | 100% | |||||||||||||
| New Product Development | 35,000 | 80,000 | 135,000 | 175,000 | ||||||||||||
| Lab Equipment | 0 | 10,000 | 10,000 | 20,000 | ||||||||||||
| Marketing | 15,000 | 30,000 | 30,000 | 40,000 | ||||||||||||
| Working Capital(1) | 4,792 | 14,573 | 19,375 | 29,166 | ||||||||||||
| Total | $ | 54,792 | $ | 124,583 | $ | 194,375 | $ | 264,166 | ||||||||
| (1) | None of the proceeds in this offering derived from sales of Remaining Company Offered Shares will be used to compensate our officers and directors, nor will any such proceeds be used to discharge indebtedness. |
We reserve the right to change the foregoing use of proceeds, should our management believe it to be in the best interest of our company. The allocations of the proceeds of this offering presented above constitute the current estimates of our management and are based on our current plans, assumptions made with respect to the beverage industry, general economic conditions and our future revenue and expenditure estimates.
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Investors are cautioned that expenditures may vary substantially from the estimates presented above. Investors must rely on the judgment of our management, who will have broad discretion regarding the application of the proceeds of this offering. The amounts and timing of our actual expenditures will depend upon numerous factors, including market conditions, cash generated by our operations (if any), business developments and the rate of our growth. We may find it necessary or advisable to use portions of the proceeds of this offering for other purposes.
In the event we do not obtain the entire offering amount hereunder, we may attempt to obtain additional funds through private offerings of our securities or by borrowing funds. Currently, we do not have any committed sources of financing.
In General
Our company is offering a maximum of 60,000,000 Company Offered Shares, including the 27,916,666 Remaining Company Offered Shares, on a best-efforts basis. The Remaining Company Offered Shares are being offered at a fixed price of $[0.001-0.01] per Remaining Company Offered Share; any funds derived from this offering will be immediately available to us for our use. There will be no refunds. This offering commenced September 9, 2025, and will terminate at the earliest of (a) the date on which all of the Offered Shares (Remaining Company Offered Shares and Remaining Selling Shareholder Shares) have been sold, (b) December 24, 2026, or (c) the date on which this offering is earlier terminated by us, in our sole discretion.
In addition, the Selling Shareholders are offering up to 15,000,000 Selling Shareholder Offered Shares, including the 329,431 Remaining Selling Shareholder Offered Shares. We will not receive any of the proceeds from the sale of the Remaining Selling Shareholder Offered Shares in this offering. We will pay all of the expenses of the offering (other than the discounts and commissions payable with respect to the Remaining Selling Shareholder Offered Shares sold in the offering). Our company will not be involved in manner way in the sales of the Remaining Selling Shareholder Offered Shares by the Selling Shareholders. (See “Selling Shareholder”).
There is no minimum number of Company Offered Shares that we are required to sell in this offering. All funds derived by us from this offering will be immediately available for use by us, in accordance with the uses set forth in the Use of Proceeds section of this Offering Circular. No funds will be placed in an escrow account during the offering period and no funds will be returned, once an investor’s subscription agreement has been accepted by us.
We intend to sell the Company Offered Shares, including the Remaining Company Offered Shares, in this offering through the efforts of our Chief Executive Officer, Matthew Dwyer. Mr. Dwyer will not receive any compensation for offering or selling the Company Offered Shares. We believe that Mr. Dywer is exempt from registration as a broker-dealer under the provisions of Rule 3a4-1 promulgated under the Securities Exchange Act of 1934 (the Exchange Act). In particular, Mr. Dwyer:
| - | is not subject to a statutory disqualification, as that term is defined in Section 3(a)(39) of the Securities Act; and | |
| - | is not to be compensated in connection with his participation by the payment of commissions or other remuneration based either directly or indirectly on transactions in securities; and | |
| - | is not an associated person of a broker or dealer; and | |
| - | meets the conditions of the following: | |
| - | primarily performs, and will perform at the end of this offering, substantial duties for us or on our behalf otherwise than in connection with transactions in securities; and | |
| - | was not a broker or dealer, or an associated person of a broker or dealer, within the preceding 12 months; and | |
| - | did not participate in selling an offering of securities for any issuer more than once every 12 months other than in reliance on paragraphs (a)(4)(i) or (iii) of Rule 3a4-1 under the Exchange Act. |
As of the date of this Offering Circular, we have not entered into any agreements with selling agents for the sale of the Company Offered Shares, including the Remaining Company Offered Shares. However, we reserve the right to engage FINRA-member broker-dealers. In the event we engage FINRA-member broker-dealers, we expect to pay sales commissions of up to 8.0% of the gross offering proceeds from their sales of the Company Offered Shares, including the Remaining Company Offered Shares. In connection with our appointment of a selling broker-dealer, we intend to enter into a standard selling agent agreement with the broker-dealer pursuant to which the broker-dealer would act as our non-exclusive sales agent in consideration of our payment of commissions of up to 8.0% on the sale of Company Offered Shares, including the Remaining Company Offered Shares, effected by the broker-dealer. Should we determine to employ a registered broker-dealer, information as to any such broker-dealer shall be disclosed in a post-qualification amendment to this Offering Circular.
Procedures for Subscribing
In General. If you are interested in subscribing for Remaining Company Offered Shares in this offering, please submit a request for information by e-mail to Mr. Dwyer at: w2572002@gmail.com; all relevant information will be delivered to you by return e-mail via electronic PDF format. Additionally, this Offering Circular will be available for viewing and download 24 hours per day, 7 days per week on our website at www.exousiapro.com, as well as on the SEC’s website, www.sec.gov.
Thereafter, should you decide to subscribe for Remaining Company Offered Shares, you are required to follow the procedures described therein, which are:
| - | Electronically execute and deliver to us a subscription agreement via e-mail to: w2572002@gmail.com; and |
| - | Deliver funds directly by check or by wire or electronic funds transfer via ACH to our specified bank account. |
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Subscription Review Process. After we receive your complete, executed subscription agreement and the funds required under the subscription agreement have been transferred to us and shall have cleared, we have the right to review and accept or reject your subscription, in whole or in part. In determining whether to accept or reject a subscription, we will consider the following factors: whether the subscriber or an affiliate of the subscriber qualifies as a “bad actor” as defined in Rule 262(d) of the SEC; the reputation of the subscriber and its affiliates within the securities industry; our then-current need for a cash investment; the state of the securities markets, in general, and the market for our common stock, in particular.
Within three (3) days after we receive your complete, executed subscription agreement and the funds required under the subscription agreement have been transferred to us and shall have cleared, we will notify you of our decision, and the reason therefor, to reject or accept your subscription.
Rejection of Subscriptions. Should we determine to reject your subscription, we will return all monies from your rejected subscription via wire transfer (or such other method as directed by you) within one (1) business day of our notifying you of such determination, without interest or deduction.
Acceptance of Subscriptions. Should we determine to accept your subscription, we will countersign the subscription agreement and, within one (1) business day, issue and deliver the Remaining Company Offered Shares subscribed in accordance with your delivery instructions. Once your subscription has been accepted by us, you may not revoke or change your subscription or request the return of your subscription funds. All accepted subscription agreements are irrevocable.
An investor will become a shareholder of our company, upon our acceptance of our acceptance of a subscription, with the Remaining Company Offered Shares being issued immediately thereafter. For clarity, the subscription settlement will not occur until an investor’s funds have cleared and we accept an investor’s subscription.
By executing the subscription agreement and paying the total purchase price for the Remaining Company Offered Shares subscribed, each investor agrees to accept the terms of the subscription agreement and attests that the investor meets certain minimum financial standards. (See “State Law Exemption and Offerings to Qualified Purchasers” below).
An approved trustee must process and forward to us subscriptions made through IRAs, Keogh plans and 401(k) plans. In the case of investments through IRAs, Keogh plans and 401(k) plans, we will send the confirmation and notice of our acceptance to the trustee.
Minimum Purchase Requirements
You must initially purchase at least $5,000 of the Offered Shares (Remaining Company Offered Shares or Remaining Selling Shareholder Offered Shares) in this offering. If you have satisfied the minimum purchase requirement, any additional purchase must be in an amount of at least $1,000.
State Law Exemption and Offerings to Qualified Purchasers
State Law Exemption. This Offering Circular does not constitute an offer to sell or the solicitation of an offer to purchase any Offered Shares, whether Company Offered Shares or Selling Shareholder Offered Shares, in any jurisdiction in which, or to any person to whom, it would be unlawful to do so. An investment in the Offered Shares involves substantial risks and possible loss by investors of their entire investments. (See “Risk Factors”).
The Offered Shares (Remaining Company Offered Shares or Remaining Selling Shareholder Offered Shares) have been qualified under the securities laws of Colorado, Delaware and New York, and it is possible that we would determine to qualify Offered Shares (Remaining Company Offered Shares or Remaining Selling Shareholder Offered Shares) in all states. In the case of each state in which Offered Shares (Remaining Company Offered Shares or Remaining Selling Shareholder Offered Shares) are offered and sold, we will qualify the Offered Shares (Remaining Company Offered Shares or Remaining Selling Shareholder Offered Shares) for sale with the applicable state securities regulatory body or the Offered Shares (Remaining Company Offered Shares or Remaining Selling Shareholder Offered Shares) will be offered and sold pursuant to an exemption from registration found in the applicable state’s securities, or Blue Sky, law.
Certain of our company’s offerees may be broker-dealers registered with the SEC under the Exchange Act, who may be interested in reselling the Company Offered Shares, including the Remaining Company Offered Shares, to others. Any such broker-dealer will be required to comply with the rules and regulations of the SEC and FINRA relating to underwriters.
Investor Suitability Standards. The Offered Shares (Remaining Company Offered Shares and Remaining Selling Shareholder Offered Shares) may only be purchased by investors residing in a state in which this Offering Circular is duly qualified who have either (a) a minimum annual gross income of $70,000 and a minimum net worth of $70,000, exclusive of automobile, home and home furnishings, or (b) a minimum net worth of $250,000, exclusive of automobile, home and home furnishings.
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Issuance of the Company Offered Shares
Upon settlement, that is, at such time as an investor’s funds have cleared and we have accepted an investor’s subscription agreement, we will either issue such investor’s purchased Company Offered Shares, including the Remaining Company Offering Shares, in book-entry form or issue a certificate or certificates representing such investor’s purchased Company Offered Shares, including the Remaining Company Offering Shares.
Transferability of the Offered Shares
The Offered Shares (Remaining Company Offered Shares and Remaining Selling Shareholder Offered Shares) will be generally freely transferable, subject to any restrictions imposed by applicable securities laws or regulations.
Advertising, Sales and Other Promotional Materials
We have not used, and we do not intend to use, any advertising, sales and other promotional materials outside of this Offering Circular, including “testing the waters” materials under the authorization of Rule 255.
As of the date of this Post-Qualification Offering Circular No. 6, 14,670,569 Conversion Shares have been issued and subsequently sold by the Selling Shareholders for cash at the then-offering price applicable to Selling Shareholders in the total amount of $317,585. The remaining $240,000 of principal amount unconverted Subject Convertible Notes are, by their terms, eligible for conversion into up to 329,431 Conversion Shares, at the election of the Selling Shareholders, at a conversion price equal to the lesser of $0.01 or 75% of the then-market price of our common stock per share converted. Following all such issuances, we intend to file a supplement to this Offering Circular pursuant to Rule 253(g)(2), wherein the exact number of Offered Shares issued in payment of the Subject Convertible Notes to be offered by the Selling Shareholders in this offering will be disclosed.
The shareholders named in the table below are the “Selling Shareholders.” The Selling Shareholders intend to sell up to 329,431 Remaining Selling Shareholder Offered Shares at the fixed offering price for all of the Offered Shares, $[0.001-0.01] per share. The Selling Shareholders are third parties. Our company will not be involved in any manner in the sales of the Remaining Selling Shareholder Offered Shares by the Selling Shareholders.
We will pay all of the expenses of this offering (other than the selling commissions payable with respect to the Selling Shareholder Offered Shares, including the Remaining Selling Shareholder Offered Shares, sold in this offering, if any), but we will not receive any of the proceeds from the sales of Selling Shareholder Offered Shares, including the Remaining Selling Shareholder Offered Shares, in this offering.
Neither of the Selling Shareholders is associated with a broker-dealer.
The Selling Shareholders intend to sell the Remaining Selling Shareholder Offered Shares in market transactions or in negotiated private transactions at the per share fixed offering price for all of the Offered Shares, $[0.001-0.01] per share. The Selling Shareholders may be deemed to be “underwriters” of the shares of our common stock offered by the Selling Shareholders in this offering. In this regard, the Selling Shareholders intend to deliver to a purchaser this Offering Circular before or with the sale of Remaining Selling Shareholder Offered Shares. It is expected that, in sales of Remaining Selling Shareholder Offered Shares in market transactions, if any, this Offering Circular would be delivered in digital format with the relevant sale confirmation.
A minimum purchase of $5,000 of the Selling Shareholder Offered Shares, including the Remaining Selling Shareholder Offered Shares, is required in this offering; any additional purchase must be in an amount of at least $1,000.
| Prior to this Offering | After this Offering | |||||||||||||||||
Name of Selling Shareholder | Position, Office or Other Material Relationship | # of Remaining Selling Shareholder Offered Shares Beneficially Owned(1) | % Beneficially Owned (2) | # of Shares to be Offered for the Account of the Selling Shareholder | # of Shares Beneficially Owned | % Beneficially Owned (3) | ||||||||||||
| Newlan Law Firm, PLLC(4) | See Note 4 | 50,000 | * | 50,000 | 0 | 0 | % | |||||||||||
| Red Phoenix Rising, LLC(5) | See Note 5 | 279,431 | * | 279,431 | 0 | 0 | % | |||||||||||
| Newlan Support Services, LLC(6) | See Note 6 | See Note 6 | See Note 6 | |||||||||||||||
* Less than 1%
| (1) | None of these shares has been issued, but underlie the unconverted Subject Convertible Notes. Rather, the share numbers in this column are estimates of the number of Remaining Selling Shareholder Offered Shares that the listed holder may acquire from our company, without regard to existing 9.9% equity-blocker provisions contained in each of the Subject Convertible Notes. Following each issuance of Conversion Shares (Selling Shareholder Offered Shares), we intend to file a supplement to this Offering Circular pursuant to Rule 253(g)(2), wherein the exact number of Conversion Shares (Selling Shareholder Offered Shares) issued in payment of the Subject Convertible Notes will be disclosed. |
| (2) | Based on 89,690,401 shares outstanding, assuming the issuance of 329,431 Conversion Shares, before this offering. |
| (3) | Based on 117,607,067 shares outstanding, assuming the sale of all of the Remaining Company Offered Shares and the issuance and subsequent sale of 329,431 Conversion Shares underlying the unconverted Subject Convertible Notes, after this offering. |
| (4) | This entity is our former legal counsel, the Managing Member of which is Eric Newlan. The address of this Selling Shareholder is 2201 Long Prairie Road, Suite 107-762, Flower Mound, Texas 75022. (See “Legal Matters”). |
| (5) | Prior to the date of this Offering Circular, this Selling Shareholder partially converted one of the Subject Convertible Notes into a total of 14,604,000 Conversion Shares and, thereafter, sold such Conversion Shares for a total of $217,500 in cash, at the then-current offering price applicable to Selling Shareholder Offered Shares. Thomas Roland is the owner of this entity. The address of this Selling Shareholder is 7957 N. University Drive, #147, Parkland, Florida 33076. |
| (6) | Prior to the date of this Offering Circular, this Selling Shareholder converted three of the Subject Convertible Notes into a total of 670,569 Conversion Shares and, thereafter, sold such Conversion Shares for a total of $100,585 in cash, a per share sale price of $0.15, the then-current offering price applicable to Selling Shareholder Offered Shares. This entity is a wholly-owned services subsidiary of our former legal counsel, Newlan Law Firm, PLLC, the Managing Member of which is Eric Newlan. The address of this Selling Shareholder is 13680 CR 306, Buena Vista, Colorado 81211. (See “Legal Matters”). |
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General
Our authorized capital stock consists of (a) 250,000,000 shares of common stock, $.001 par value per share; and (b) 10,000,000 shares of Preferred Stock, $.001 par value per share, (1) one (1) of which has been designated Series C Preferred Stock.
As of the date of this Offering Circular, there were (x) 89,360,970 shares of our common stock issued and outstanding held by 82 holders of record; and (y) one (1) share of Series C Preferred Stock issued and outstanding held by one (1) holder of record.
Common Stock
General. The holders of our common stock currently have (a) equal ratable rights to dividends from funds legally available therefore, when, as and if declared by our Board of Directors; (b) are entitled to share ratably in all of our assets available for distribution to holders of common stock upon liquidation, dissolution or winding up of the affairs of our company; (c) do not have preemptive, subscriptive or conversion rights and there are no redemption or sinking fund provisions or rights applicable thereto; and (d) are entitled to one non-cumulative vote per share on all matters on which shareholders may vote. Our Bylaws provide that, at all meetings of the shareholders for the election of directors, a plurality of the votes cast shall be sufficient to elect. On all other matters, except as otherwise required by Nevada law or our Articles of Incorporation, as amended, a majority of the votes cast at a meeting of the shareholders shall be necessary to authorize any corporate action to be taken by vote of the shareholders.
Non-cumulative Voting. Holders of shares of our common stock do not have cumulative voting rights, which means that the holders of more than 50% of the outstanding shares, voting for the election of directors, can elect all of the directors to be elected, if they so choose, and, in such event, the holders of the remaining shares will not be able to elect any of our directors.
Further, the outstanding shares of Series A Preferred Stock are beneficially owned by our Sole Director, Michael Sheikh. Mr. Sheikh, thus, controls all corporate matters of our company. (See “Security Ownership of Certain Beneficial Owners and Management” and “Certain Relationships and Related Transactions”).
Pre-emptive Rights. As of the date of this Offering Circular, no holder of any shares of our capital stock has pre-emptive or preferential rights to acquire or subscribe for any unissued shares of any class of our capital stock not otherwise disclosed herein.
Series C Convertible Preferred Stock
Voting Rights. The Series C Convertible Preferred Stock shall be entitled to Fifty-one Percent (51%) of all votes in all matters requiring shareholder approval.
Dividends. The Series C Convertible Preferred Stock shall be treated pari passu with our company’s common stock, except that the dividend on the share of Series C Convertible Preferred Stock shall be equal to the amount of the dividend declared and paid on each share of our company’s common stock multiplied by the conversion rate.
Liquidation. Upon any liquidation, dissolution or winding up of our company, whether voluntary or involuntary, payments to the holders of Series C Preferred Stock shall be treated pari passu with the Common Stock, except that the payment on the share of Series C Convertible Preferred Stock shall be equal to the amount of the payment on each share of the Common Stock multiplied by the Conversion Rate, as that term is defined in Section 6(a).
Conversion Rights. The share of the Series C Convertible Preferred Stock shall be convertible into 51% of the total shares of our common stock outstanding at the time of conversion. The share of the Series C Convertible Preferred Stock may be converted into shares of our common stock at any time.
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Dividend Policy
We have never declared or paid any dividends on our common stock. We currently intend to retain future earnings, if any, to finance the expansion of our business. As a result, we do not anticipate paying any cash dividends in the foreseeable future.
Shareholder Meetings
Our bylaws provide that special meetings of shareholders may be called only by our Board of Directors, the chairman of the board, or our president, or as otherwise provided under Florida law.
Transfer Agent
Currently, the transfer agent for our common stock is Olde Monmouth Stock Transfer Co., Inc., 200 Memorial Parkway Atlantic Highlands, New Jersey 07716. Olde Monmouth’s website is located at: www.oldemonmouth.com No information found on Olde Monmouth’s website is part of this Offering Circular.
History
We were incorporated in the State of Nevada on April 28, 2010, under the name Norman Cay Development, Inc. On July 12, 2012, our corporate name changed to Discovery Gold Corporation. On August 19, 2019, our corporate name changed to GRN Holding Corporation. On August 4, 2022, our company redomiciled to the State of Florida. On November 13, 2023, our corporate name changed to Marijuana, Inc. On April 2, 2025, our corporate name changed to Exousia Pro, Inc. On March 17, 2026, our corporate name changed to Nextel Medical Corp.
Recent Change in Control
Effective October 30, 2024, a change in control of our company occurred. On such date, Earth Onyx, LLC, a company owned by our former Sole Director and Officer, sold 100 shares (the “Control Shares”), or 100% of the outstanding shares, of our Series A Preferred Stock to our current Sole Director. Mr. Sheikh paid $60,000 in cash and delivered a promissory note (the “Closing Note”) to Earth Onyx, LLC in payment of the Control Shares. The Closing Note has a principal amount of $100,000 and is due on the later of 60 days from October 30, 2024, and the date on which Mr. Steinberg shall have delivered ready-to-file federal tax returns for the years ended December 31, 2022 and 2023, of our company. Mr. Sheikh and Earth Onyx, LLC entered into Pledge Agreement, to secure Mr. Sheikh’s payment obligations under the Closing Note.
Recent Acquisition; Exiting “Shell Company” Status
Effective December 31, 2024, pursuant to a stock purchase agreement with Ludwig Enterprises, Inc. (“Ludwig”), a publicly-traded company (symbol: LUDG), we acquired 100% of Exousia Ai, Inc., a Wyoming corporation (Exousia AI), and related assets, in consideration of a $100,000 promissory note (the “Ludwig Note”), the principal and interest of which is due on December 31, 2025, and 10,000 shares of our Series B Convertible Preferred Stock. In conjunction with the issuance of the Ludwig Note, we entered into a pledge agreement with Ludwig, to secure our timely payment of the Ludwig Note. Exousia AI is a biotechnology company in the field of exosomes. In the transaction, we secured a worldwide license for certain exosome technologies. (See “Business”).
With the acquisition of Exousia AI, our company exited “shell company” status.
Plan and Agreement of Reorganization – Exousia AI
On November 11, 2025, pursuant to a Plan and Agreement of Reorganization (the Reorganization Agreement), LMMY acquired our 70%-owned subsidiary, Exousia Ai, in exchange for shares of LMMY common stock. Following the closing of the Reorganization Agreement, our company holds 41,223,000 shares, or approximately 51% (as measured after the transaction), of LMMY common stock. Our company’s President, Matthew Dwyer, serves as LMMY’s sole officer and director.
The transaction with LMMY was pursued and consummated by the Company, after the Company’s Board of Directors had determined, after investigating the LMMY opportunity, that the best interests of the Company and its shareholders would be best served by acquiring a controlling interest in LMMY, in exchange for its ownership in Exousia Ai.
The consummation of the Reorganization Agreement did not change the overall operations of our company, as control of LMMY remains with our company. The primary purposes of such transaction were to gain access to a separate funding platform for what we believe to be a potentially extremely dynamic and valuable company in Exousia AI and, thereby, to achieve greater shareholder value for our company’s shareholders. There is no assurance that our strategy will be successful in achieving such objectives. (See “Risk Factors”).
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The figure below depicts the current structure of our company.
Acquisition Agreements
On May 29, 2026, we entered into definitive acquisition agreements (the Acquisition Agreements) to acquire two related Tennessee-based companies, Jumpstart Rx, LLC and Island 40 Group, LLC (collectively, the Tennessee Companies), which, together, operate as one entity and own two telehealth and clinical solutions platforms: JumpstartRx and NueVistraMed. Pursuant to the Acquisition Agreements, as amended, we are required to deliver total consideration of $12.75 million, consisting of $3.5 million in cash and $9.25 million in preferred stock. The Tennessee Companies are required to deliver PCAOB-firm audited financial statements at the closing of the Acquisition Agreements, which, as of the date of this Offering Statement, have not been completed. We do not currently possess the funds necessary to consummate the Acquisition Agreements and there is no assurance that we will be able to obtain such funds. We are unable to predict the timing of the consummation of the Acquisition Agreements.
Business Summary
Our company is a clinical stage biotechnology company developing new ways to exploit the therapeutic potential of exosomes, initially focused in the field of oncology. Our proprietary manufacturing process utilizes plant-based materials to create exosomes used in a number of commercial applications, including dermatology and dentistry. Our proprietary loading technology can infuse a range of molecules from drugs to DNA. Because our company owns control of LMMY, the operations of Exousia AI are presented in the following discussion.
Our Exosome Vision
We believe the future of plant-based exosomes is rich with potential. As technology advances, plant exosomes could become a cornerstone of green biotechnology, offering sustainable, efficient and biocompatible solutions across medicine, agriculture and food science, for example. Their natural properties, combined with ongoing research and technological developments, make them an exciting frontier in therapeutic delivery, disease prevention and environmental sustainability.
Within our exosome strategy, we have established three separate divisions in which our planned future activities will operate.
Biotech: This division will create new therapies using exosomes, focusing on cancer.
Cosmeceutical: This division will focus on using exosomes in the multi-billion-dollar skincare industry. We are in the midst of two studies using our plant-based exosomes in skincare treatments.
Nutraceutical: This division will work on adding exosomes to certain anti-aging supplements, IV therapies, tinctures and peptides.
About Exosomes
Exosomes were first discovered in the 1980s, when researchers initially observed small vesicles being secreted by cells. These vesicles were believed to be cellular debris or byproducts of cell turnover. The breakthrough came in 1983, when two independent studies - one by John Raposo and colleagues and another by Peter Harding and his team - revealed that exosomes were not just cellular waste, but functional entities with important roles in intercellular communication. The researchers identified exosomes as small, membrane-bound vesicles ranging from 30 to 150 nanometers in diameter, released from multivesicular bodies (MVBs) into the extracellular space. These discoveries challenged earlier assumptions and opened the door to understanding exosomes as key players in various biological processes, including immune response, cell signaling, and disease progression. As the field advanced, it became clear that exosomes contained proteins, lipids, and RNA, positioning them as crucial vehicles for cell-to-cell communication and potential therapeutic applications.
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Exosomes: The “FedEx® of Cells”
Exosomes are often likened to couriers because they act as delivery vehicles, transporting various molecular cargo, such as proteins, lipids, and RNA, between cells. Just as a courier picks up and delivers packages from one location to another, exosomes carry their cargo from one cell to another, facilitating communication between distant cells. This "delivery" allows exosomes to transfer information that can influence the behavior of recipient cells, such as triggering immune responses, regulating gene expression, or even contributing to disease processes like cancer metastasis. The ability of exosomes to travel through bodily fluids like blood, saliva, and urine, delivering their cargo to specific target cells, underscores their role as highly efficient biological couriers, enabling complex signaling networks within the body.
Plant-Based Exosomes
Plant-based exosomes, also known as plant-derived exosomes or extracellular vesicles (EVs), are similar to the exosomes found in animal cells, but they are secreted by plant cells. These vesicles are small, membrane-bound structures that carry various molecular cargo, such as proteins, lipids, RNA, and other biomolecules. Just like animal exosomes, plant-derived exosomes are involved in intercellular communication, though their functions and mechanisms are still being actively researched.
What distinguishes plant-based exosomes from animal-derived exosomes is that they are naturally produced by plants and can be isolated from plant tissues, fruits, seeds, and even plant-based foods. They have gained attention for their potential use in food science, nutrition, and biomedicine due to their bioactive components and potential health benefits.
Key Features and Potential Applications
Our company views plant-based exosomes as having many potentially significant capabilities, useful in the following applications, among others:
Health Benefits: Plant exosomes are believed to carry bioactive compounds like small RNAs, proteins, and polyphenols, which can have antioxidant, anti-inflammatory, and anticancer properties. There is increasing interest in using these vesicles as nutraceuticals-biologically active food ingredients that promote health and prevent disease.
Drug Delivery: Plant-derived exosomes are also being explored for their potential to serve as drug delivery systems. They have natural properties that may make them less likely to trigger immune responses compared to synthetic or animal-derived vesicles, offering a potential advantage in clinical applications.
Environmental and Eco-Friendly: Unlike animal-derived exosomes, which can raise ethical and environmental concerns, plant-based exosomes are considered more sustainable and environmentally friendly. They can be isolated from plants that are grown in abundance, making them a renewable resource for various applications.
Viral Immunity and Disease Management: Some research has suggested that plant exosomes may play a role in plant immunity, helping plants resist infections by transporting defensive molecules. This has led to interest in using plant exosomes in immunotherapy for humans, particularly as a way to modulate immune responses in diseases like cancer.
Why We Are Developing Plant-Based Exosome Products
Plant-based exosomes will allow us to load these cell couriers with thousands of biomimetic factors, including growth factors, peptides, liposomes, amino acids, and proteins directed explicitly to target inflammation as well as for wound healing angiogenesis and the stimulation of hyaluronic acid, collagen and elastin production.
Furthermore, Plant-based exosomes can be engineered to carry drugs, proteins, or RNA molecules to specific tissues or cells, making them highly promising for targeted drug delivery systems. Exosomes are naturally adept at fusing with cell membranes, which allows them to efficiently deliver their cargo directly to the inside of recipient cells. This makes them ideal for delivering therapeutic agents to targeted locations in the body, minimizing side effects compared to conventional drugs.
Our Future With Plant-Based Exosomes
The future of plant-based exosomes is promising, with growing interest in their potential to revolutionize fields like medicine, agriculture, and food science. As research into their properties and applications expands, we are likely to see significant advances in both their use as therapeutic tools and their integration into various industries. Below is a discussion of which areas we believe plant-based exosomes could make a significant impact, in the future.
Drug Delivery and Targeted Therapy. One of the most exciting possibilities for plant-based exosomes is their use in targeted drug delivery. Due to their natural ability to carry bioactive molecules (proteins, lipids, RNAs) across cellular membranes, plant exosomes could be engineered to deliver therapeutic drugs, gene therapies, or even vaccines directly to specific cells or tissues. This targeted delivery could help minimize side effects and enhance the effectiveness of treatments for conditions such as cancer, autoimmune diseases, and neurodegenerative disorders.
Future Impact: Researchers are working on optimizing plant exosomes as delivery systems for chemotherapeutic agents, RNA-based therapies (like siRNA or mRNA), and immune modulators, which could offer a safer and more efficient alternative to traditional delivery methods.
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Immunotherapy and Vaccine Development. Plant exosomes have shown promise in immunotherapy, particularly in their potential to modulate immune responses. Because exosomes can carry and deliver immune-stimulating molecules, they might be used to enhance the immune system's ability to recognize and attack cancer cells or pathogens. Additionally, plant exosomes are being explored for their potential in vaccine delivery, where they could deliver antigens to stimulate a protective immune response without the risk of disease transmission from animal-based products.
Future Impact: Plant exosome-based vaccines and immune therapies could become an affordable, scalable, and safer alternative to current vaccine technologies, with fewer concerns about contamination from animal pathogens.
Nutraceuticals and Food Supplements. Plant exosomes are thought to carry bioactive molecules, such as polyphenols, flavonoids, and small RNAs, that have health-promoting effects. These exosomes could be used as nutraceuticals-natural food-based substances that offer health benefits beyond basic nutrition. Since exosomes can protect and deliver their bioactive cargo more effectively than simple nutrients, plant-based exosomes could enhance the bioavailability of nutrients and therapeutic compounds.
Future Impact: We may see the development of new, plant-derived functional foods or supplements, including exosome-enriched products that help in preventing chronic diseases, reducing inflammation, or improving gut health. These products could be more effective and easier to absorb than current supplements.
Gene Therapy and RNA Delivery. Plant exosomes can naturally carry and transport small RNA molecules, including miRNA (microRNA) and siRNA (small interfering RNA). These RNA molecules have the potential to regulate gene expression and are of great interest for gene therapy. By using plant exosomes to deliver RNA to target cells, it may be possible to manipulate gene expression in a controlled way for therapeutic purposes.
Future Impact: In the future, plant exosomes could be engineered to deliver RNA therapies for genetic disorders (e.g., cystic fibrosis, muscular dystrophy) and other conditions where gene silencing or activation is needed. This could be a more natural and efficient delivery system compared to viral vectors currently used in gene therapy.
Cancer Diagnosis and Treatment. Exosomes, in general, are involved in cell-to-cell communication and can carry molecules that reflect the condition of their originating cells. Plant-based exosomes, due to their biocompatibility and lack of toxicity, could be engineered for use in cancer diagnostics and therapeutics. They might be used to carry tumor-associated antigens or RNA-based treatments that could target and destroy cancer cells.
Future Impact: Plant exosome-based diagnostics could be developed as non-invasive tests for detecting cancer or monitoring treatment response. Additionally, they could play a role in targeting specific cancer cells, improving the precision of cancer therapies while reducing damage to healthy tissue.
Cosmetic and Skin Care Applications. Due to their ability to deliver bioactive compounds and proteins, plant-based exosomes are being explored for use in cosmetics and skin care products. These exosomes could be used to deliver anti-aging compounds, moisturizing agents, and other beneficial ingredients directly to skin cells, improving the effectiveness of skin treatments.
Future Impact: Plant exosomes could revolutionize the cosmetic industry by creating new anti-aging formulations, wound healing products, and skin regeneration therapies. Exosome-based cosmetics could be more effective than current formulations, with fewer side effects.
Environmental and Agricultural Benefits. Plant exosomes are involved in plant immunity and are being studied for their potential role in plant defense against pathogens. In agriculture, plant-based exosomes could be used as natural pesticides or plant growth regulators to enhance crop protection without the need for synthetic chemicals.
Future Impact: Plant exosomes could be used in agriculture to create sustainable and eco-friendly pest control, enhanced crop resistance to diseases, and even improved plant growth. This could help reduce reliance on harmful chemicals and contribute to more sustainable farming practices.
Cost-Effective and Scalable Production. One of the key advantages of plant-based exosomes is the ease of scalable production. Unlike animal or synthetic-based exosome systems, plants can be grown in large quantities, making it possible to produce exosomes at a lower cost. This scalability could facilitate their use in a wide range of commercial applications.
Future Impact: Plant-based exosomes could be mass-produced for therapeutic, industrial, and agricultural uses, leading to the creation of affordable and accessible treatments in areas like gene therapy, drug delivery, and disease prevention.
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Recent Developments
Exousia AI Acquisition. In a January 6, 2025, press release, we announced the completion of our acquisition of Exousia AI. Currently, the activities of Exousia AI are the core of our company’s operations.
Exosome Production. In a March 25, 2025, press release, we announced the start of our production of mushroom-based exosomes in our Orlando, Florida, lab. To date, we have produced a limited amount of our mushroom-based exosomes, as we continue our efforts in attracting customers for such exosomes and as we complete the formulation of our own consumer products, including topical lotions. We expect that sales of our consumer products will begin during the third quarter of 2025.
FDA Orphan Drug Status. In an April 1, 2025, press release, we announced that we had received a response from the FDA regarding our Orphan Drug application filed last year under Exousia AI for our Glioblastoma Multiforme (GBM) treatment using exosomes, wherein we indicated that the FDA had been very responsive in its emails and phone calls and had requested additional information regarding the relevant study being conducted at the University of Central Florida (UCF). The requested information has been provided to the FDA; however, the UCF study has not yet been published, although we are encouraged by the results. We continue to believe that we have a high probability of receiving the requested Orphan Drug status, although no assurance can be made, in this regard.
The FDA has authority to grant Orphan Drug status to a drug or biological product to prevent, diagnose or treat a rare disease or condition. Orphan Drug status qualifies sponsors for incentives, including tax credits for qualified clinical trials, exemption from user fees and a potential of seven years of market exclusivity after approval.
Exousia AI, as sponsor, in support of its application, has submitted to the FDA an animal study to show the efficacy of its exosomal drug product. Obtaining Orphan Drug status is a separate process from seeking approval or licensing. Future human studies in support of the approval process are planned.
To receive Orphan Drug status, sponsors must submit a request to the FDA with a scientific rationale demonstrating a medically plausible basis for expecting the drug to be effective in treating the subject rare disease. This rationale is often supported by preclinical or clinical data. The FDA reviews these requests and, if the criteria are met, grants the Orphan Drug status.
New President. In an April 2, 2025, press release, we announced that Matthew Dwyer had become President of our company. Mr. Dwyer continues to perform his duties as President and has since become our Chief Executive Officer.
Name Change. In an April 3, 2025, press release, we announced that we were continuing to pursue our FINRA Corporate Action submission, to effect a change of corporate name in the trading markets to “Exousia Pro, Inc.” and to obtain a new trading symbol. We continue to pursue such submission, although we are unable to predict the timing of FINRA approval , which submission we have abandoned.
Delivery of Exosomes for Trade Show. In an April 8, 2025, we announced receipt of an order for 500 billion exosomes produced by us, with such order demonstrating our ability to supply dried exosomes, a shelf-life extending feature. We expect that orders for our exosomes will begin in earnest during the third quarter of 2025, as we implement our marketing strategies.
Business Subdivisions. In an April 18, 2025, press release, we announced our management’s determination to establish three operating divisions, each within a separate subsidiary (to be formed): Biotech, Cosmeceutical and Nutraceutical.
Biotech: This division will develop new therapies using exosomes, focusing on cancer.
Cosmeceutical: This division will focus on using exosomes in the multi-billion-dollar skincare industry, including sales of our company’s own products.
Nutraceutical: This division will work on adding exosomes to certain anti-aging supplements, IV therapies, tinctures and peptides.
Our primary strategy for commencing activities within each business division is through joint ventures with companies already operating in each market segment. To date, we have not entered into any such agreement.
Glioblastoma Study. In an April 21, 2025, press release, we discussed a Spaces interview of our Scientific Advisory Board member, Marvin S. Hausman, MD, wherein Dr. Hausman discussed a published paper (available online at https://pmc.ncbi.nlm.nih.gov/articles/PMC10297980) showing that the NANOG Expression therapy being employed in our UCF-conducted Glioblastoma (GMB) study reduced the resistance of the cancer stem cells in GMB. The results of our UCF-conducted study are expected to be published in the near future. However, we are unable to provide the exact timing of such publication.
Completion of Preclinical Trial for Glioblastoma. In an April 29, 2025, press release, we announced the early completion of the UCF study that supports our FDA Orphan Drug application and provided an explanation of the study’s procedures. While the UCF study has not yet been published, we believe such publication will occur in the near future.
Web Series. In an April 30, 2025, press release, we announced a weekly web series featuring Marvin D. Hausman, MD, a member of our Scientific Advisory Board. We expect that this web series will be launched, on a full-time basis, in February 2026.
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Exosome-CBD Delivery Study. In a September 29, 2025, press release, we announced that we have initiated a study designed to demonstrate the dramatically enhanced efficacy of CBD-loaded exosomes in oral delivery. This research is predicated on the known ability of our proprietary exosomes to survive the digestive tract and deliver their payload directly to the small intestine. We expect study results during Q1 2026.
Orphan Drug Designation Obtained from FDA. In an October 28, 2025, press release, we announced that we had received Orphan Drug Designation from the FDA for malignant Glioma, aka Glioblastoma multiforme (GBM). The Orphan Drug Designation application approval provides significant opportunities for advancing our company's cancer therapy, as it moves into the next clinical phases. The time frame for our clinical phases is dependent upon our obtaining needed capital, of which there is no assurance.
Exclusive Licensing Agreement With the University of Central Florida for Novel Cancer Diagnostic and Therapy Platforms. In a December 2, 2025, press release, we announced the execution of an exclusive licensing agreement between our subsidiary, Exousia Pro Holding Management, LLC, and the University of Central Florida (UCF) concerning its groundbreaking technology for both the diagnosis and treatment of cancer using exosomes. Our ability to capitalize on this license is dependent upon our obtaining needed capital, of which there is no assurance.
Maxasome(TM) Product. In a December 5, 2025, press release, we announced the introduction of our flagship nutraceutical, Maxasome™. Derived exclusively from 100% pure Exosome-Like Nanoparticles (ELNs) extracted from the high-value Yellow Oyster Mushroom (Pleurotus citrinopileatus), Maxasome™ is an all-natural, multi-modal cytoprotective agent designed to deliver unparalleled cellular defense and extend health span. The product will be offered to consumers on a monthly subscription basis, aligning with our strategy to build recurring revenue within the high-growth longevity and wellness market. Our ability to begin significant commercial production and sales efforts with respect to Maxasome™ are dependent upon our obtaining needed capital, of which there is no assurance.
Letters of Intent. In a December 11, 2025, press release, we announced the execution of letters of intent for the acquisition of a tele-health platform, which would permit us to accelerate nutraceutical commercialization efforts. The three separate intended acquisitions, if consummated, would form a single operating division of our company. We have not yet entered into a definitive agreement with respect to either of such letters of intent and there is no assurance that we will ever do so. It is possible that an as-yet determined portion of the proceeds in this offering would be applied to complete one or more of such acquisition transactions. However, no prediction can be made, in this regard. (See “Use of Proceeds”).
Plan and Agreement of Reorganization – Exousia Ai. On November 11, 2025, pursuant to a Plan and Agreement of Reorganization (the Reorganization Agreement), LMMY acquired our 70%-owned subsidiary, Exousia Ai, in exchange for shares of LMMY common stock. Following the closing of the Reorganization Agreement, our company holds 41,223,000 shares, or approximately 51% (as measured after the transaction), of LMMY common stock. Our company’s President, Matthew Dwyer, serves as LMMY’s sole officer and director.
The transaction with LMMY was pursued and consummated by the Company, after the Company’s Board of Directors had determined, after investigating the LMMY opportunity, that the best interests of the Company and its shareholders would be best served by acquiring a controlling interest in LMMY, in exchange for its ownership in Exousia Ai.
The consummation of the Reorganization Agreement did not change the overall operations of our company, as control of LMMY remains with our company. The primary purposes of such transaction were to gain access to a separate funding platform for what we believe to be a potentially extremely dynamic and valuable company in Exousia AI and, thereby, to achieve greater shareholder value for our company’s shareholders. There is no assurance that our strategy will be successful in achieving such objectives. (See “Risk Factors”).
Name Change. In an March 19, 2026, post on X, we announced that we had changed our corporate name to “Nextel Medical Corp.”
Commercial Product Launch. In a May 11, 2026, press release we announced that we had entered the final stage for commercial launch of our exosome products, with initial testing reported to have found no contamination by key organisms. Our commercial launch is expected to occur during Q4 2026. In addition, we announced a target of Q1 2027 target for uplisting to the OTCQB trading platform. There is no assurance that we be successful in achieving such uplist, primarily due to our having to provide audited financial statements – we current lack the necessary funds with which to engage our intended auditor and we may never obtain such needed funds.
Penn State Study. In a June 9, 2026, press release, we announced a First-of-Its-Kind Exosome Characterization Study with Penn State University with respect to Mass spectrometry study to map bioactive compounds in mushroom-derived exosomes, which was expected to be completed by the end of June 2026. This study is now expected to be completed during Q1 2027.
Xycota Biosciences. In an August 5, 2026, press release, we announced that we had executed a Letter of Intent (non-binding) to Acquire 100% of Xycota Biosciences, LLC, a preclinical biotechnology company developing exosome-delivered therapeutics for neurodegenerative disease. We have not yet executed a definitive agreement.
UCF Study
Exousia AI is the sponsor of a preclinical research study by the University of Central Florida (UCF) designed to investigate the therapeutic potential of exosome-mediated delivery of nucleic acid medicine to enhance Temozolomide (TMZ) therapy for Glioblastoma Multiforme (GBM) using an in vivo model. The preclinical trial studied 32 immunodeficient humanized mice (CIEA NOG mouse) which carry a human immunes system which better replicates GBM immune interactions. Human GBM excised from a patient was cultured and then implanted in a hemisphere of the mouse brain. After 30 days of tumor growth, the mice were randomized into four equal subgroups: control, temozolomide (TMZ) treatment, exosome treatment, and a TMZ-exosome combination therapy. After seven days of treatment the mice were sacrificed and their brains were preserved for image analysis. The observations focused on tumor size, weight changes, and brain slice analysis. Additional tissue antibody staining analysis will be conducted to detect the boundary or presence of cancer cells. The insights from this study are expected to show if combination exosomal therapy can overcome the chemoresistance of glioma stem cells, which represents a major obstacle to effective glioblastoma treatment.
UCF’s study report is expected to be published in the near future. Nevertheless, Exousia AI has been able to obtain sufficient information from UCF, such that it has been able to respond to the FDA’s information requests regarding its Orphan Drug application.
Our Lab

Our Orlando, Florida, lab is equipped with a range of advanced tools and instruments designed to support precise, high-performance research across various scientific disciplines. The equipment described below enhances our capabilities in sample preparation, analysis and storage.
Z327-K Refrigerated Universal Centrifuge, 120V: The refrigerated Z327-K offer a wide assortment of rotor options (up to 19), making it ideal for a wide variety of research applications. Rotor exchange between swing out, micro, or high volume fixed angle rotors is very simple and can be done in a matter of seconds. The Z327-K features rear mounted refrigeration system, optimized for saving space on the lab bench at only 40 cm wide.
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Thermo Savant DNA120 SpeedVac Concentrator: The ThermoSavant DNA Speed Vacuum Model DNA 120, is a dedicated centrifugal vacuum concentration system for drying low volume ethanol or isopropanol-water precipitates of DNA and RNA. This design incorporates a glass cover, ammonia post-trap and Ammonia Neutralizing Solution for fully automated, unattended, odor-free drying. The post-trap is connected on the back, left side of the unit. It is easily maintained and replaced. The Savant DNA SpeedVac combines centrifugal force with vacuum for bump-free sample drying. Vacuum is supplied by an integral, oil-free vacuum pump with an automatic bleeder valve.
The Savant DNA120 SpeedVac has a chamber heater that counteracts evaporative sample cooling and accelerates solvent evaporation rates to shorten drying times. The operator can select LOW (ambient), MEDIUM (43 °C), or HIGH (65°C) drying rates with the 3-position switch on the front panel.
The Savant DNA SpeedVac is equipped with polypropylene vacuum fittings to avoid leaks and resist corrosion. A chemical trap kit (DTK120R) and disposable cartridge (DC120R) should be used for trapping volatile radioactivity when the system is dedicated for drying down radio labeled materials.
Ultracentrifuge Z 273 K: The Ultracentrifuge Z 273 K is a high-performance instrument used for separating components of different densities within a liquid sample. With a rotor capable of speeds up to 20,000 x g, this ultracentrifuge is particularly useful for the purification of proteins, nucleic acids, and viruses, as well as for isolating cellular organelles and subcellular components. The 220.78 rotor provides precise control, allowing for consistent and reliable separations across a variety of applications, including molecular biology and biochemistry.
Homogenizer: The Homogenizer is an essential tool for sample preparation, used to break down biological or chemical samples into uniform suspensions. It operates by applying high shear forces to cells or tissues, disrupting them into smaller particles or homogenizing them for further analysis. Whether for protein extraction, DNA/RNA isolation, or sample preparation for microscopy, this piece of equipment ensures consistent sample quality and preparation efficiency.
Hyper-Sensitive Scale: Our Hyper-Sensitive Scale is designed for the most accurate weighing tasks, capable of measuring ultra-small quantities with incredible precision. This scale is vital for experiments where exact measurements of chemicals, powders, or small amounts of substances are required. Its high sensitivity ensures reliable results in quantitative analysis, ensuring the accuracy of experimental conditions.
Fume Hood: The Fume Hood is an essential safety device that provides a controlled environment for handling hazardous chemicals or biological samples. It is designed to prevent exposure to toxic fumes, vapors, and particulate matter by using a ventilation system that draws harmful substances away from the user. The fume hood helps maintain a safe workspace, ensuring that potentially dangerous reactions, solvents, and compounds can be used with minimal risk.
Microscope: The Microscope in our lab offers high magnification capabilities, essential for observing fine details of biological samples, tissues, and microorganisms. This advanced imaging tool allows researchers to investigate samples at the cellular and sub-cellular levels, making it indispensable for applications in microbiology, cell biology, histology, and material science. The microscope’s high-resolution optics ensure accurate imaging for both routine and advanced investigations.
Fridges/Freezers: Our Fridges and Freezers are crucial for the proper storage of reagents, biological samples, and chemical compounds that require temperature-controlled environments. The fridges maintain a stable temperature range for materials that must remain cold but not frozen, while the freezers provide deep-freeze conditions for long-term storage of samples, such as enzymes, antibodies, or DNA/RNA. This equipment is vital for ensuring sample integrity and preventing degradation over time.
Electronic Pipette and Micropipettes: The Electronic Pipette and Micropipettes in our lab are precision instruments for transferring small, accurate volumes of liquids. The electronic pipette offers programmable settings to reduce the risk of human error, allowing for reproducible and precise liquid handling. Micropipettes are designed for applications that require extreme accuracy, such as PCR preparation, enzyme assays, and cell culture work. These pipettes contribute to consistency in research by ensuring the correct volume is dispensed every time.
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Intellectual Property
Progenicyte License. Effective January 1, 2025, Exousia AI (which was then-named Exousia Pro, Inc.) entered into an Alliance Agreement (the “Progenicyte Agreement”) with Progenicyte Japan CO., LTD. (“Progenicyte”), with respect to a business alliance regarding the implementation of certain technologies (the “Licensed Technologies”) in Exousia AI’s exosome products. In accordance with the terms of the Progenicyte Agreement, Exousia AI is owned 30% by Progenicyte and 70% by our company. In addition, Exousia AI pays Progenicyte a license fee with respect to the Licensed Technologies of $16,667 per month.
The Licensed Technologies relate to a Progenicyte invention known as “A Novel Method to Load the Desired Nucleic Acid Into Exosomes as a Nucleic Acid Drug Delivery System.” The Licensed Technologies are the subject of a USPTO 371 PCT (Patent Cooperation Treaty) Patent Application PCT/JP2024/009529, filed March 13, 2023, which claims priority to Japanese Patent Application 2022-040244, filed March 15, 2022.
Proprietary. In the transaction by which we acquired Exousia AI, we also acquired the following intellectual property:
| • | Those serotonin assay(s) being developed by Dr. Kiminobu Sugaya at the University of Central Florida, including, but not limited to, preclinical and clinical data deriving therefrom or associated therewith. |
| • | Exosome development protocol currently active at the laboratory of Dr. Kiminobu Sugaya at the University of Central Florida, including blood samples sent from the laboratory of Dr. Viviana Trezza and analysis data therefor obtained by Fabrizio Ascone. |
In addition, we own additional proprietary intellectual properties (the “Proprietary IP”) that we consider key to our business plans, as follows:
| • | A Novel Method to Load the Desired Nucleic Acid into Exosomes as a Nucleic Acid Drug Delivery System; |
| • | Differential Sequence of Exosomal Nanog Dna as a Potential Diagnostic Cancer Marker; and |
| • | Delivery of Gene Expression Modulating Agents for Therapy Against Cancer and Viral Infection. |
By combining the Licensed Technologies with the Proprietary IP, we believe we will be able to produce products that will be extremely effective in assisting in the treatment of many diseases, including certain cancers. A portion of the proceeds of this offering will be used to fund Investigational New Drug trials for our future products. (See “Use of Proceeds”).
Trademark. We own the “ExousiaPRO” and “Nextel Medical” trademarks. We intend to register such trademarks with the U.S. Patent and Trademark Office in the near future. These marks are important to us, and we intend to, directly or indirectly, maintain and protect these and any future marks we develop and their respective registrations.
Sourcing
It is our objective to produce all plant-based exosomes needed in our business operations. However, until such time, we intend to source our mammalian exosomes from suppliers in the United States. We expect no difficulties in obtaining needed supplies of such exosomes.
Competition
We are in competition with companies that are larger, more established and better capitalized than are we. The medical products development industry and the consumer medical products industry are highly competitive, rapidly evolving and subject to constant change. The number of competitors in each of these industries is substantial. We expect that, if our products establish a market niche, competition will arise from a variety of sources, including from large health-related companies to other smaller national and regional health-related companies.
Many of our potential competitors possess:
| • | greater financial, technical, personnel, promotional and marketing resources; |
| • | longer operating histories; |
| • | greater name recognition; and |
| • | larger consumer bases. |
We cannot assure you that we will be able to compete effectively in our extremely competitive industry.
Government Regulations
By obtaining the Orphan Drug Designation from the FDA regarding our Glioblastoma Multiforme (GBM) treatment using exosomes, we have become subject to all FDA and other relevant rules and regulations. To date, we have maintained compliance with such rules and regulations and anticipate that we will continue to do so in the future.
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Litigation
In July 2025, we filed a lawsuit against our former Sole Officer and Director, Donald Steinberg, styled Exousia Pro, Inc., a Florida corporation, formerly known as Marijuana, Inc. and as GRN Holding Corporation vs. Donald Steinberg and Securities Transfer Corporation, a nominal defendant, in the Circuit Court of the Court of the Twentieth Judicial District in and for Lee County, Florida. In the lawsuit, we seek the cancellation of all shares issued by our company pursuant to a stock exchange agreement (the “Exchange Agreement”) with Marijuana, Inc., a now-dissolved Florida corporation, the control person of which was Donald Steinberg, our former sole officer and director who was in such positions at the time of the Exchange Agreement. Pursuant to the Stock Exchange Agreement, a company owned by Mr. Steinberg was issued 3,063,000 shares. However, shortly after the consummation of the Exchange Agreement, Mr. Steinberg caused the dissolution of the acquired company. The series of transactions surrounding the Exchange Agreement, which we believe to have been fraudulent, is the basis of a lawsuit filed by us against Mr. Steinberg, wherein we seek the rescission of the Exchange Agreement and the cancellation of all of the shares of common stock issued pursuant thereto.
In September 2025, following a hearing, significant protections for our shareholders have been established. While the motion for a Temporary Restraining Order (TRO) was not heard due to a lack of available court time, a mutually agreed-upon standstill order was executed on all shares held by Mr. Steinberg, representing approximately 10.5% of the shares outstanding.
In December, 2025, the Court denied motions to dismiss filed by Mr. Steinberg and Kimberly Carlson.
In March 2026, a settlement agreement was reached in this lawsuit. Under the terms of the settlement agreement, which is scheduled to close on or about April 15, 2026, we are required to make a one-time payment of $147,500 to Mr. Steinberg and related parties and, in consideration, thereof, (A) Mr. Steinberg shall cancel (1) a $200,000 promissory note issued by us in October 2024 pursuant to a consulting agreement and (2) a $100,000 promissory note issued by Earth Onyx, LLC, a company owned by our sole director, Michael Sheikh, in connection with the October 2024 change-in-control transaction between Earth Onyx, LLC and Mr. Steinberg and (B) Mr. Steinberg and related parties shall tender a total of 6,297,511 shares of our common stock for cancellation.
Properties
We lease our principal office located in St. Petersburg, Florida, at a monthly rental of $150. We lease our 1,000 square foot lab space in Orlando, Florida, at a monthly rental of $2,160.83. We own no real property.
Employees
In addition to our sole executive officer, we currently have one part-time employee. Upon our obtaining additional funding, including through this offering, we expect that we would hire a small number of additional employees. We have used, and, in the future, expect to use, the services of certain outside consultants and advisors as needed on a consulting basis.
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Cautionary Statement
The following discussion and analysis should be read in conjunction with our unaudited financial statements and related notes, beginning on page F-1 of this Offering Circular.
Our actual results may differ materially from those anticipated in the following discussion, as a result of a variety of risks and uncertainties, including those described under Cautionary Statement Regarding Forward-Looking Statements and Risk Factors. We assume no obligation to update any of the forward-looking statements included herein.
Recent Changes in Control
October 29, 2025. Effective October 29, 2025, a change in control of our company occurred. On such date, our Sole Director, Michael Sheikh, and our current Chief Executive Officer, Matthew Dwyer, entered into a voting agreement (the “Voting Agreement”) with respect to the 100 shares of Series A Preferred Stock owned by Mr. Sheikh. Pursuant to the Voting Agreement, Mr. Dwyer shall, until such time as our company becomes a Nasdaq-listed company, have the sole right to exercise all voting rights attendant to the Series A Preferred Stock owned by Mr. Sheikh. However, Mr. Dwyer does not possess the power to take any action to remove Mr. Sheikh as a director of our company and Mr. Dwyer is required to vote to elect Mr. Sheikh as a director of our company. In addition, Mr. Sheikh granted to Mr. Dwyer the right of first refusal to purchase Mr. Sheikh’s shares of Series A Preferred Stock.
October 30, 2024. Effective October 30, 2024, a change in control of our company occurred. On such date, Earth Onyx, LLC, a company owned by our former Sole Director and Officer, sold 100 shares (the “Control Shares”), or 100% of the outstanding shares, of our Series A Preferred Stock to our current Sole Director. Mr. Sheikh paid $60,000 in cash and delivered a promissory note (the “Closing Note”) to Earth Onyx, LLC in payment of the Control Shares. The Closing Note has a principal amount of $100,000 and is due on the later of 60 days from October 30, 2024, and the date on which Mr. Steinberg shall have delivered ready-to-file federal tax returns for the years ended December 31, 2022 and 2023, of our company. Mr. Sheikh and Earth Onyx, LLC entered into Pledge Agreement, to secure Mr. Sheikh’s payment obligations under the Closing Note.
Acquisition of Exousia AI
On December 31, 2024, pursuant to a stock purchase agreement, we acquired Exousia Ai, Inc. (Exousia AI). Exousia AI’s assets embody a joint venture with a Japanese biotech company to manufacture and deliver mammalian and plant-based exosomes containing nucleic acids, such as DNA and mRNA to tissues and cells. We have not generated any revenues to date and we intend to continue to fund research and development through funding from third parties in the form of debt, equity or a combination thereof, until such time as our operations have commenced and revenues generated.
The acquisition of Exousia AI by our company, whereby our company was determined to be the legal and accounting acquirer. However, our company was deemed a “Shell Company” prior to the acquisition, with no substantial operations and continuing operations, and was deemed to be the “Successor” entity, with Exousia AI being deemed the “Predecessor” entity.
Plan and Agreement of Reorganization – Exousia AI
On November 11, 2025, pursuant to a Plan and Agreement of Reorganization (the Reorganization Agreement), LMMY acquired our 70%-owned subsidiary, Exousia Ai, in exchange for shares of LMMY common stock. Following the closing of the Reorganization Agreement, our company holds 41,223,000 shares, or approximately 51% (as measured after the transaction), of LMMY common stock. Our company’s President, Matthew Dwyer, serves as LMMY’s sole officer and director.
The transaction with LMMY was pursued and consummated by the Company, after the Company’s Board of Directors had determined, after investigating the LMMY opportunity, that the best interests of the Company and its shareholders would be best served by acquiring a controlling interest in LMMY, in exchange for its ownership in Exousia Ai.
The consummation of the Reorganization Agreement did not change the overall operations of our company, as control of LMMY remains with our company. The primary purposes of such transaction were to gain access to a separate funding platform for what we believe to be a potentially extremely dynamic and valuable company in Exousia AI and, thereby, to achieve greater shareholder value for our company’s shareholders. There is no assurance that our strategy will be successful in achieving such objectives. (See “Risk Factors”).
Acquisition Agreements
On May 29, 2026, we entered into definitive acquisition agreements (the Acquisition Agreements) to acquire two related Tennessee-based companies, Jumpstart Rx, LLC and Island 40 Group, LLC (collectively, the Tennessee Companies), which, together, operate as one entity and own two telehealth and clinical solutions platforms: JumpstartRx and NueVistraMed. Pursuant to the Acquisition Agreements, as amended, we are required to deliver total consideration of $12.75 million, consisting of $3.5 million in cash and $9.25 million in preferred stock. The Tennessee Companies are required to deliver PCAOB-firm audited financial statements at the closing of the Acquisition Agreements, which, as of the date of this Offering Statement, have not been completed. We do not currently possess the funds necessary to consummate the Acquisition Agreements and there is no assurance that we will be able to obtain such funds. We are unable to predict the timing of the consummation of the Acquisition Agreements. (See “Business”).
Summary of Critical Accounting Estimates
The following significant accounting policies require management estimates and assumptions which may result in material impacts to the Company’s financial condition.
Goodwill and Indefinite-Lived Intangible Assets. The Company has goodwill and certain indefinite-lived intangible assets that have been recorded in connection with the acquisition of a business. Goodwill and indefinite-lived assets are not amortized but instead tested for impairment at least annually. Goodwill represents the excess of the purchase price of an acquired business over the estimated fair value of the underlying net tangible and intangible assets acquired. The Company tests goodwill resulting from acquisitions for impairment annually, or whenever events or changes in circumstances indicate an impairment. For purposes of the goodwill impairment test, the Company has determined that it currently operates as a single reporting unit. If it is determined that an impairment has occurred, the Company adjusts the carrying value accordingly and charges the impairment as an operating expense in the period the determination is made. Although the Company believes goodwill is appropriately stated in the consolidated financial statements, changes in strategy or market conditions could significantly impact these judgments and require an adjustment to the recorded balance. There were no impairments during the periods presented.
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Long Lived Assets. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Should impairment in value be indicated, the carrying value of long-lived assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. Assets to be disposed of are reported at the lower of the carrying amount or the fair value, less costs to sell.
Income Taxes. The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company has incurred net operating losses in prior years for financial-reporting and tax-reporting purposes. Accordingly, for Federal income tax purposes, the benefit for income taxes has been offset entirely by a valuation allowance against the related federal and state deferred tax asset for the years ended December 31, 2024 and 2023.
Fair Value Measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs).
The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under are described as follows:
| • | Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. | |
| • | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. | |
| • | Level 3 – Inputs that are unobservable and significant for the asset or liability. |
Fair value is determined based on the price that would be received for an asset or paid to transfer a liability in an orderly transaction based on market participants. Factors that the Company considered when estimating the fair value of its convertible notes payable included quoted market prices of the Company’s common stock.
Convertible Debt Instruments. The Company follows ASC 480-10, Distinguishing Liabilities from Equity in its evaluation of the accounting for a hybrid instrument. A financial instrument that embodies an unconditional obligation, or a financial instrument other than an outstanding share that embodies a conditional obligation, that the issuer must or may settle by issuing a variable number of its equity shares shall be classified as a liability (or an asset in some circumstances) if, at inception, the monetary value of the obligation is based solely or predominantly on any one of the following: (a) a fixed monetary amount known at inception; (b) variations in something other than the fair value of the issuer’s equity shares; or (c) variations inversely related to changes in the fair value of the issuer’s equity shares. Hybrid instruments meeting these criteria are not further evaluated for any embedded derivatives and are carried as a liability at fair value at each balance sheet date with remeasurements reported in change on fair value expense in the accompanying Statements of Operations.
Change in “Shell Company” Status
With the acquisition of Exousia AI, our company exited “shell company” status. As a result, Exousia AI is being deemed a “Predecessor” company. As such, the following discussion and analysis of unaudited financial statements for the periods presented prior to the acquisition date of December 31, 2024, are those of the Predecessor. Our company’s results of operations as of and after the acquisition date of December 31, 2024, are those of the “Successor.”
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Results of Operations
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | |||||||
| Revenues | $ | — | $ | 12,830 | ||||
| Total costs and expenses | 86,130 | 132,091 | ||||||
| Loss from operations | (86,130 | ) | (132,091 | ) | ||||
| Other income (expense), net | — | — | ||||||
| Net loss | $ | (86,130 | ) | $ | (132,091 | ) | ||
Revenues. We recognized no revenue for the three months ended March 31, 2026, compared to $12,830 for the three months ended March 31, 2025. The prior-period revenue was derived from the sale and delivery of exosomes. The absence of revenue in the current period reflects the transition of our operating business to the LMMY level following the November 2025 reorganization.
Total costs and expenses. Total costs and expenses decreased by $45,961, or approximately 35%, to $86,130 for the three months ended March 31, 2026, from $132,091 for the three months ended March 31, 2025. The decrease was primarily attributable to reduced operating and research and development activity conducted directly by the Company following the reorganization.
Net loss. As a result of the foregoing, our net loss decreased by $45,961 to $86,130 for the three months ended March 31, 2026, from $132,091 for the three months ended March 31, 2025. We recognized no other income or expense in either period.
Year Ended December 31, 2025 Compared to Year Ended December 31, 2024
| Year Ended December 31, 2025 | Year Ended December 31, 2024 | |||||||
| Revenues | $ | 500 | $ | 12,830 | ||||
| Total costs and expenses | 541,283 | 176,831 | ||||||
| Loss from operations | (540,783 | ) | (164,001 | ) | ||||
| Gain on investments | 14,172,654 | — | ||||||
| Fair value of conversion option | (113,648 | ) | — | |||||
| Net other income (expense) | 14,059,006 | — | ||||||
| Net income (loss) | $ | 13,518,223 | $ | (164,001 | ) | |||
Revenues. Revenues decreased to $500 for the year ended December 31, 2025, from $12,830 for the year ended December 31, 2024, as the Company generated only nominal exosome sales during 2025 while it pursued the Progenicyte alliance and the LMMY reorganization.
Total costs and expenses. Total costs and expenses increased by $364,452, or approximately 206%, to $541,283 for the year ended December 31, 2025, from $176,831 for the year ended December 31, 2024. The increase was driven principally by research and development expense of $252,947, payroll and benefits of $142,500, legal and professional fees of $87,727, public and shareholder relations of $39,332, rent expense of $29,912 and interest expense of $29,038, reflecting the expansion of corporate, financing and licensing activity during 2025. These increases were partially offset by a net credit within consulting and professional fees.
Other income (expense). During the year ended December 31, 2025, we recognized net other income of $14,059,006, consisting of a non-cash gain on investments of $14,172,654 arising from the November 2025 LMMY reorganization, partially offset by a $113,648 charge for the change in fair value of the conversion options embedded in our convertible notes. We recognized no other income or expense during 2024.
Net income (loss). As a result of the foregoing, we reported net income of $13,518,223 for the year ended December 31, 2025, compared to a net loss of $164,001 for the year ended December 31, 2024. Our net income for 2025 was attributable entirely to the non-cash gain on the LMMY investment; we continued to incur an operating loss of $540,783 and did not generate net income from our operations.
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Plan of Operation
With a portion of the proceeds of this offering, we intend to initiate one or more Investigational New Drug (IND) trials, each of which is expected to study an indication which includes exosomes as part of its composition. We expect that the average cost for an IND trial would be approximately $300,000, payable generally in installments over the life of the study.
An IND submission is a request to the FDA that allows sponsors to start clinical trials on humans with a new drug or a drug for a new use and ship the investigational drug across state lines for these trials. Once the submission is made, the FDA reviews the IND application to ensure the safety of the study and the rights of the participants; the FDA has 30 days to act on the application or it becomes effective. At such time as an IND application is approved, the sponsor is responsible for submitting updates to the FDA, including changes to the study protocol, sites or principal investigators.
In addition, with a portion of the proceeds of this offering, we intend to continue to develop topical exosome-infused products for the consumer market. We intend to pursue these efforts as quickly as our access to capital permits.
There is no assurance that we will obtain sufficient funds in this offering, or from other sources, that would permit us to initiate any of the foregoing.
We believe that the proceeds of this offering will satisfy our cash requirements for at least the next twelve months.
Liquidity and Capital Resources
We believe the recent acquisition of Exousia AI will allow us to manufacture and deliver for sale mammalian and plant-based exosomes containing nucleic acids, such as DNA and mRNA, to tissues and cells. We have not generated any revenues to date and we intend to continue to fund current operations and research and development through funding from third parties in the form of debt, equity, including in this offering, or a combination thereof, until such time as our operations have commenced and sufficient revenues are generated to support operating expenses. Our ability to succeed in the market will greatly depend on our ability to secure investment funding through the sale of securities. We do not intend to undertake new loans, but, if needed, we believe we will be able to secure loans from private individuals, as well as banking institutions. However, we currently have no additional capital commitments and there is no assurance that we will be able to secure any future capital commitments. We believe that the proceeds of this offering will satisfy our cash requirements for at least the next twelve months.
The following is a discussion and evaluation of our current and long-term assets, liabilities and cash flows.
Settlement of Litigation. In July 2025, we filed a lawsuit against our former Sole Officer and Director, Donald Steinberg, styled Exousia Pro, Inc., a Florida corporation, formerly known as Marijuana, Inc. and as GRN Holding Corporation vs. Donald Steinberg and Securities Transfer Corporation, a nominal defendant, in the Circuit Court of the Court of the Twentieth Judicial District in and for Lee County, Florida. In March 2026, a settlement agreement was reached in this lawsuit. Under the terms of the settlement agreement, which is scheduled to close on or about April 15, 2026, we are required to make a one-time payment of $147,500 to Mr. Steinberg and related parties and, in consideration, thereof, (A) Mr. Steinberg shall cancel (1) a $200,000 promissory note issued by us in October 2024 pursuant to a consulting agreement and (2) a $100,000 promissory note issued by Earth Onyx, LLC, a company owned by our sole director, Michael Sheikh, in connection with the October 2024 change-in-control transaction between Earth Onyx, LLC and Mr. Steinberg and (B) Mr. Steinberg and related parties shall tender a total of 6,297,511 shares of our common stock for cancellation.
Liquidity and Capital Resources
As of March 31, 2026, we had cash of $177, compared to $913 as of December 31, 2025 and $100 as of December 31, 2024. Although we reported total stockholders’ equity of $13,375,318 as of March 31, 2026, that balance is driven almost entirely by our $14,350,000 carrying value of the Investment in LMMY, which is a non-cash asset that is not readily convertible into cash. Excluding the Investment in LMMY, our current assets were approximately $10,302 as of March 31, 2026 against current liabilities of $736,558, resulting in a working capital deficit of approximately $726,256. Total liabilities were $984,984 as of March 31, 2026, compared to $1,036,691 as of December 31, 2025.
We have funded our operations primarily through the private and Regulation A sale of our common stock and the issuance of convertible and other promissory notes. There can be no assurance that we will be able to raise additional capital on acceptable terms, or at all. If we are unable to obtain adequate financing or financing on terms satisfactory to us, our ability to continue to support our operations would be materially and adversely affected.
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Cash Flows
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | |||||||
| Net cash used in operating activities | $ | (736 | ) | $ | (7,065 | ) | ||
| Net cash used in investing activities | — | — | ||||||
| Net cash provided by financing activities | — | 15,972 | ||||||
| Net change in cash | $ | (736 | ) | $ | 8,910 | |||
| Year Ended December 31, 2025 | Year Ended December 31, 2024 | |||||||
| Net cash provided by (used in) operating activities | $ | 13,893,135 | $ | (100,000 | ) | |||
| Net cash used in investing activities | (14,147,319 | ) | — | |||||
| Net cash provided by financing activities | 254,997 | — | ||||||
| Net change in cash | $ | 813 | $ | (100,000 | ) | |||
Operating activities. Net cash used in operating activities was $736 for the three months ended March 31, 2026, compared to $7,065 for the three months ended March 31, 2025. For the year ended December 31, 2025, our statement of cash flows reflects net cash provided by operating activities of $13,893,135, compared to net cash used of $100,000 for the year ended December 31, 2024; however, the 2025 amount includes the effect of the $14,172,654 non-cash gain on the LMMY investment and other non-cash items, and does not represent cash generated by our operations. Our operations did not generate positive operating cash flow on a normalized basis.
Investing activities. For the year ended December 31, 2025, net cash used in investing activities was $14,147,319, reflecting the LMMY reorganization and related investment activity. There was no investing activity during the interim periods presented.
Financing activities. Net cash provided by financing activities was $254,997 for the year ended December 31, 2025, consisting principally of proceeds from the sale of common stock and additional paid-in capital. During the three months ended March 31, 2026, proceeds from the sale of common stock were substantially offset by the repayment of a note payable, resulting in net financing cash flows of approximately zero, compared to $15,972 for the three months ended March 31, 2025.
Financing Arrangements
During the three months ended March 31, 2026, we sold 6,000,000 shares of common stock for $60,000 in cash, or $0.01 per share, and issued 6,000,000 shares of common stock in payment of $60,000 of principal of a convertible promissory note. Our outstanding indebtedness includes convertible notes payable, a $20,000 promissory note issued in July 2025 (bearing interest at 10% per annum and due July 30, 2026), a $100,000 convertible note issued to Newlan Law Firm, PLLC (bearing interest at 8% per annum, due December 17, 2026 and convertible at the lower of $0.01 and a 25% discount to market), and $125,000 of convertible notes issued to Red Phoenix Rising, LLC (bearing interest at 8% per annum and due December 17, 2026). Certain of our convertible notes are convertible at a discount to the trading price of our common stock and may result in substantial dilution to our existing stockholders.
Going Concern
Our unaudited consolidated financial statements have been prepared assuming that we will continue as a going concern. We have incurred accumulated losses since inception, have generated limited revenue and have had negative cash flows from operations, which raise substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern depends on our ability to generate and grow revenue, to manage our operating expenses and to access the capital markets when necessary to fund our operations and strategic objectives. We expect to continue to incur losses for the immediate future and will require additional equity or debt financing until we can achieve profitability and positive cash flows from operating activities. There can be no assurance that we will be able to achieve our business plans, raise additional capital or secure the financing necessary to implement our current operating plan. Our unaudited consolidated financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern.
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Recent Developments
Litigation settlement. In July 2025, we filed a lawsuit against our former sole officer and director, Donald Steinberg, seeking, among other things, the rescission of a stock exchange agreement and the cancellation of shares issued thereunder. In September 2025, a mutually agreed-upon standstill order was entered with respect to all shares held by Mr. Steinberg, representing approximately 10.5% of our outstanding shares, and in December 2025 the court denied motions to dismiss filed by Mr. Steinberg and a related party. In March 2026, we reached a settlement agreement scheduled to close on or about April 15, 2026, under which we are required to make a one-time payment of $147,500 to Mr. Steinberg and related parties and, in consideration, Mr. Steinberg will cancel a $200,000 promissory note and a $100,000 promissory note and Mr. Steinberg and related parties will tender a total of 6,297,511 shares of our common stock for cancellation.
Subsequent equity and financing activity. Since March 31, 2026, we have issued 5,000,000 shares of common stock in payment of $50,000 of principal of a convertible promissory note, and we have sold 8,500,000 shares of common stock for $0.01 per share, or a total of $85,000, in our Regulation A offering. In April 2026, we designated and issued a single share of Series C Convertible Preferred Stock carrying 51% of the total votes on all matters requiring shareholder approval and convertible into 51% of the outstanding common stock. Management has evaluated subsequent events through May 22, 2026.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.
Contractual Obligations and Commitments
Our material contractual obligations include a monthly license payment of $16,667 to Progenicyte Japan CO., LTD under our Alliance Agreement; a one-year laboratory lease with Wellspring USA for premises in Orlando, Florida providing for a monthly rental payment of $2,161, renewable annually at our option; our outstanding convertible and promissory notes described above; and the $147,500 settlement payment described under “Recent Developments.”
Critical Accounting Policies and Estimates
The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses. We consider the following accounting policies to involve the most significant judgments and estimates used in the preparation of our financial statements.
Revenue Recognition
We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers, based on the allocation of the transaction price to each performance obligation as that obligation is satisfied, when title or access to the exosomes is transferred and amounts due are collected or collectible.
Investment in LMMY and Gain on Investments
As a result of the November 2025 reorganization, we hold an approximately 51% interest in LMMY, which we carry on our balance sheet as an investment. The determination of the carrying value of the Investment in LMMY, and the related non-cash gain on investments recognized in 2025, requires significant judgment regarding the fair value of the shares received, which was estimated based on available market information. Changes in the fair value of, or our accounting conclusions regarding, this investment could have a material effect on our reported financial position and results of operations.
Convertible Debt Instruments and Fair Value
We follow ASC 480-10, Distinguishing Liabilities from Equity, in evaluating our hybrid convertible debt instruments. Conversion options that must or may be settled by issuing a variable number of our equity shares are classified as liabilities and carried at fair value at each balance sheet date, with remeasurements reported as a change in fair value of share-settled debt within other income (expense). We estimate fair value using ASC 820, Fair Value Measurements, and consider the level of our convertible notes payable to be Level 1 based on quoted market prices of our common stock.
Goodwill and Indefinite-Lived Intangible Assets
Goodwill and indefinite-lived intangible assets are not amortized but are tested for impairment at least annually, or whenever events or changes in circumstances indicate that an impairment may have occurred. We operate as a single reporting unit for purposes of the goodwill impairment test. There were no impairments during the periods presented.
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Going Concern Assessment
In connection with the preparation of our financial statements, we evaluate whether there are conditions or events that raise substantial doubt about our ability to continue as a going concern within one year after the date the financial statements are issued. This assessment requires management to make significant judgments about our forecasted cash flows and our ability to obtain additional financing.
DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS
Directors and Executive Officers
The following table sets forth certain information concerning our company’s executive management.
| Name | Age | Position(s) | ||||
|
Michael Sheikh |
55 |
Director |
||||
| Matthew Dwyer | 60 | President, Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and Director |
Our directors serve until a successor is elected and qualified. Our officers are elected by the Board of Directors to a term of one (1) year and serves until their successor(s) is duly elected and qualified, or until they are removed from office.
Certain information regarding the backgrounds of each of our officers and directors is set forth below.
Michael Sheikh, Director. Mr. Sheikh assumed his positions with our company in October 2024. Since May 2020, Mr. Sheikh has served as the Chief Communications Officer of Bioxytran, Inc., a clinical-stage, publicly-traded pharmaceutical company (symbol: BIXT) focused on the development, manufacture and commercialization of antiviral treatments and an oxygen carrier compound to treat hypoxia-related conditions. Mr. Sheikh is a US Air Force Academy graduate and pilot. He has a Bachelor of Science degree in Economics and flew KC-135 tankers and worked as a budget officer in the comptroller’s squadron while serving. He has prior experience as a broker and research analyst. After the brokerage industry, he was a business development officer for a variety of specialty finance companies. He is a long-time Biotech Consultant for public or private biotech companies with disruptive technologies. Mr. Sheikh is founder of Resources Unlimited, an investor relations firm. Mr. Sheikh devotes no less than 20 hours per week to our company’s business. Our company believes that Mr. Sheikh is capable of serving in his positions with our company, without any impairment.
Matthew Dwyer, President, Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and Director. Mr. Dwyer assumed the President position with our company in April 2025 and became our sole executive officer in October 2025. For more than the last 10 years, Mr. Dwyer has managed his own investments. In addition, from November 2017 to December 2022, Mr. Dwyer served as an officer and director of JFH Digital E-Commerce Corp., formerly Integrated Cannabis Solutions, Inc. (symbol: IGPK), an online commerce company. Mr. Dwyer has also served variously as an officer and director of the following companies: from November 2017 to November 2021, he was President and Director of Global Consortium, Inc., a company active in the cannabis industry in California; from November 2017 to October 2020, he was President and Director of Trans Global Group, Inc., a specialty products company; from April 2004 to April 2017, he was President and Director of Baron Capital Enterprise, Inc., a consulting company and debt financier; From January 2017 to June 2017, he was President and Director of Experience Art and Design, Inc., a development-stage company that was seeking to acquire an active business. Mr. Dwyer devotes no less than 20 hours per week to our company’s business. Our company believes that Mr. Dwyer is capable of serving in his position with our company, without any impairment.
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Scientific Advisory Board
Our Board of Directors has established a Scientific Advisory Board that is to provide non-binding recommendations to our Board of Directors, particularly with respect to scientific matters related to our business. Certain information regarding the backgrounds of each member of our Scientific Advisory Board is set forth below.
Marvin S. Hausman, M.D. The Chairman of the Scientific Advisory Board, Marvin S. Hausman, M.D., currently serves as Chief Science Officer of Ludwig Enterprises, Inc., a publicly-traded company (symbol: LUDG) focused on the development of their proprietary mRNA genomic technology, after having served as a Director of Ludwig Enterprises from November 2023 to June 2025, as well as its Chief Executive Officer from September 2023 to August 2024 and as a key consultant from July 2022 to September 2023. In the five years prior to joining Ludwig, Dr. Hausman served as a consultant with various life science companies including Nova Mentis Life Science, Summit Joint Performance and Designer Genomics. Dr. Hausman is an Immunologist and Board-Certified Urological Surgeon with more than 40 years of drug research and development experience with various pharmaceutical companies, including Bristol Myers International, Mead Johnson Pharmaceutical Co., E.R. Squibb, Medco Research, and Axonyx. An accomplished executive with domestic and international experience, Dr. Hausman successfully executed acquisitions of breakthrough medical technology, in conjunction with formation, funding and launch of several corporations. He is a co-founder of Medco Research Inc., a NYSE biopharmaceutical company acquired by King Pharmaceutical Inc, currently a division of Pfizer. He is a founder of Axonyx Inc., acquired by Torrey Pines Therapeutics, Inc. He is a founder of Entia Biosciences, Inc., which designs and develops natural organic antioxidant food-based products to be used as nutritional supplements in humans and animals. He is founder and President of Northwest Medical Research Partners, Inc., a company specializing in the identification and acquisition of breakthrough pharmaceutical and nutraceutical products. Dr. Hausman is a Member of the Board of Governors of New York University School of Medicine Alumni Association. Dr. Hausman received his medical degree from New York University School of Medicine in 1967.
Under our consulting agreement dated June 1, 2025, with Dr. Hausman, for his serving on the Scientific Advisory Board, we are to issue 100,000 shares of our common stock for each year of his service as a member of our Scientific Advisory Board.
In addition, effective May 3, 2025, we entered into a separate consulting agreement with Dr. Hausman, pursuant to which he is to provide consulting services related to product development, product testing and related studies and FDA-related matters. Under this consulting agreement, which has an initial one-year renewable term, we pay Dr. Hausman $10,000 per month. Either our company or Dr. Hausman can terminate this agreement, at any time, upon 30-days’ notice.
Dr. Robert B. Beelman. Dr. Robert B Beelman is Professor Emeritus of Food Science, Director, Center for Plant and Mushroom Foods for Health, Penn State College of Agricultural Sciences, University Park, Pennsylvania. Dr. Beelman is a distinguished figure in the field of food science. His academic journey began with a BS in Biology from Capital University, followed by an MS and a PhD in Food Technology from The Ohio State University. Dr Beelman works on enhancing the nutritional and medicinal value of cultivated mushrooms, exploring regenerative agricultural practices to improve nutrient density in the food supply, and evaluating ergothioneine as a potential longevity vitamin to mitigate chronic diseases of ageing. He has hypothesized a significant role for soil-borne fungi in increasing ergothioneine levels in crops, which is crucial for human health. His advocacy extends into the realm of regenerative farming, emphasizing the reduction of severe tillage, the use of cover crops, and minimizing synthetic fertilizers and pesticides to boost soil health and, consequently, human health. Dr. Beelman’s scholarly contributions not only shed light on the importance of mushrooms and soil health in our diet but also transform our understanding of nutrition and its impact on long-term health outcomes.
Under our consulting agreement dated June 1, 2025, with Dr. Beelman, we are to issue 100,000 shares of our common stock for each year of his service as a member of our Scientific Advisory Board.
Kyle Ambert, Ph.D. Dr. Ambert is currently Director of Data Science at Nike, Inc. and has extensive experience in data analytics, machine learning, artificial intelligence and applied analytics. His previous experience includes postings with the National Library of Medicine and Intel Corp. Dr. Ambert holds a PhD in Biomedical Informatics from Oregon Health & Science University. Additionally, Dr. Ambert has interests in the following: applied analytics, multivariate statistics, machine learning and deep learning, text mining and natural language processing, biomedical informatics, distributed computing, information visualization, and behavioral economics. These interests give him skills in technical communication, data analysis, data visualization, analytics, programing, deep learning frameworks, and health and life sciences, all of which we believe are of great value to the Company.
Under our consulting agreement dated June 1, 2025, with Dr. Ambert, we are to issue 100,000 shares of our common stock for each year of his service as a member of our Scientific Advisory Board.
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Zachary T. Bitzer, Ph.D. Dr. Bitzer is currently Assistant Professor, Department of Public Health Sciences Institute of Energy and the Environment Cancer Institute, Cancer Control Penn State Center for Research on Tobacco and Health. Dr. Bitzer received his Ph.D. in Food Science from Penn State University in 2014 and is currently an Assistant Professor of Public Health Sciences at Penn State University College of Medicine in Hershey, PA. His primary research interest is environmental toxicology, specifically the creation and interaction of toxins within the human body. He also explores the development of novel biomarkers for measuring exposure levels. Currently, his work focuses on toxins and oxidants (e.g., free radicals, aldehydes) generated by tobacco products and e-cigarettes. He is also interested in how dietary phytochemicals can mitigate oxidative stress and inflammation.
Under our consulting agreement dated June 1, 2025, with Dr. Bitzer, we are to issue 100,000 shares of our common stock for each year of his service as a member of our Scientific Advisory Board.
Anthony Smith, Ph.D. Dr. Anthony Smith manages Trengove Consulting, a private consulting firm specializing in natural product development, pharmacognosy, regulatory compliance, R&D-to-market strategies and executive learning in biochemistry and neuroscience. He received his Ph.D in Molecular & Cellular Biology from Oregon State University at the Linus Pauling Institute where he specialized in biochemistry, metabolic-aging and nutritional health. In addition to his work with Trengove, Dr. Smith serves as Psilocybin Neuroscience Professor and Lead Instructor with Bodhi Academy in Colorado and Oregon and is a Senior Advisor (Pharmacology) for ITB Solutions (Toronto, ON) and Vetr Animal Health (Grants Pass, OR).
Prior to focusing on teaching, training and consulting, Dr. Smith worked in medical device design & manufacturing, natural product R&D, and biomedical research while serving as a leading international authority on aging, dietary supplementation and cardiovascular disease. He has technical and leadership experience in managing commercial laboratories, drug and medical device manufacturing, and commercial research initiatives. He brings over 20 years of natural product research, quality assurance, product development, manufacturing and regulatory expertise to his projects.
Under our consulting agreement dated June 1, 2025, with Dr. Smith, we are to issue 100,000 shares of our common stock for each year of his service as a member of our Scientific Advisory Board.
Conflicts of Interest
At the present time, we do not foresee any direct conflict between our officers and directors, their other business interests and their involvement in our company.
Corporate Governance
We do not have a separate Compensation Committee, Audit Committee or Nominating Committee. These functions are conducted by our Board of Directors acting as a whole.
During the year ended December 31, 2024, our Board of Directors, did not hold a meeting, but took all necessary actions by written consent in lieu of a meeting.
Independence of Board of Directors
Our Sole Director is not independent, within the meaning of definitions established by the SEC or any self-regulatory organization. We are not currently subject to any law, rule or regulation requiring that all or any portion of our Board of Directors include independent directors.
Shareholder Communications with Our Board of Directors
Our company welcomes comments and questions from our shareholders. Shareholders should direct all communications to our Chief Executive Officer, Matthew Dwyer, at our executive offices. However, while we appreciate all comments from shareholders, we may not be able to respond individually to all communications. We attempt to address shareholder questions and concerns in our press releases and documents filed with OTC Markets, so that all shareholders have access to information about us at the same time. Mr. Dwyer collects and evaluates all shareholder communications. All communications addressed to our directors and executive officers will be reviewed by those parties, unless the communication is clearly frivolous.
Code of Ethics
As of the date of this Offering Circular, our Board of Directors has not adopted a code of ethics with respect to our directors, officers and employees.
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In General
As of the date of this Offering Circular, there are no annuity, pension or retirement benefits proposed to be paid to officers, directors or employees of our company, pursuant to any presently existing plan provided by, or contributed to, our company.
Compensation Summary
The following table summarizes information concerning the compensation awarded, paid to or earned by, our executive officers.
| Name and Principal Position | Year Ended 12/31 | Salary ($) | Bonus ($) | Stock Awards ($) | Option Awards ($) | Non-Equity Incentive Plan Compensation ($) | Non-qualified Deferred Compensation Earnings ($) | All Other Compen- sation ($) | Total ($) | |||||||||||||||||
Michael Sheikh(1) Former Chief Executive Officer, Former Secretary | 2025 2024 | --- --- | --- --- | --- --- | --- --- | --- --- | --- --- | --- --- | --- --- | |||||||||||||||||
Matthew Dwyer(2) President, and Chief Executive Officer | 2025 2024 | --- --- | --- --- | --- --- | --- --- | --- --- | --- --- | --- --- | --- --- | |||||||||||||||||
| Donald Steinberg Former Chief Executive Officer | 2025 2024 | --- --- | --- --- | --- --- | --- --- | --- --- | --- --- | --- --- | --- --- | |||||||||||||||||
|
(1) (2) |
This person was not an officer of our company, until October 2024. This person was not an officer of our company, until April 2025. |
Outstanding Option Awards
The following table provides certain information regarding unexercised options to purchase common stock, stock options that have not vested and equity-incentive plan awards outstanding as of the date of this Offering Circular, for each named executive officer.
| Option Awards | Stock Awards | |||||||||
|
Name |
Number of Securities Underlying Unexercised Options (#) Exercisable |
Number of Securities Underlying Unexercised Options (#) Unexercisable |
Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) |
Option Exercise Price ($) |
Option Expiration Date |
Number of Shares or Units of Stock That Have Not Vested (#) |
Market Value of Shares or Units of Stock That Have Not Vested ($) |
Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) |
Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) | |
| Michael Sheikh | --- | --- | --- | --- | n/a | --- | n/a | --- | --- | |
| Matthew Dwyer | --- | --- | --- | --- | n/a | --- | n/a | --- | --- | |
Employment Agreements
We have not entered into employments agreements with either of our executive officers.
Outstanding Equity Awards
During the years ended December 31, 2025 and 2024, our Board of Directors made no equity awards and no such award is pending.
Long-Term Incentive Plans
We currently have no long-term incentive plans.
Director Compensation
Our Sole Director receive no compensation for his serving as a Director of our company.
| 34 |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The table below does not give effect to certain events, as follows:
Series B Convertible Preferred Stock Conversion. The table below does not give effect to the issuance of shares of our common stock upon conversion of the outstanding shares of Series B Convertible Preferred Stock. However, the Series B Convertible Preferred Stock is convertible as follows: each share of the Series B Convertible Preferred Stock shall be convertible into 4,700 shares of our common stock (currently, a total of 47,000,000 shares of our common stock); a holder of shares of Series B Convertible Preferred Stock shall be required to convert all of such holder’s shares of Series B Convertible Preferred Stock, should any such holder exercise its rights of conversion; the Series B Convertible Preferred Stock may be converted into shares of our common stock any time after the date that is six months immediately following the effective date of our common stock’s uplisting to any tier of the NASDAQ Stock Market (including NASDAQ Capital Market), the NYSE American or any successor to such markets. (See “Risk Factors—Risks Related to a Purchase of the Offered Shares” and “Dilution—Ownership Dilution”).
In light of the caveats stated in the foregoing paragraphs, the following table sets forth, as of the date of this Offering Circular, information regarding beneficial ownership of our common stock by the following: (a) each person, or group of affiliated persons, known by our company to be the beneficial owner of more than five percent of any class of our voting securities; (b) each of our directors; (c) each of the named executive officers; and (d) all directors and executive officers as a group. Beneficial ownership is determined in accordance with the rules of the SEC, based on voting or investment power with respect to the securities. In computing the number of shares beneficially owned by a person and the percentage ownership of that person, shares of common stock underlying convertible instruments, if any, held by that person are deemed to be outstanding if the convertible instrument is exercisable within 60 days of the date hereof.
| Share Ownership Before This Offering | Share Ownership After This Offering | |||||||||||||||||
| Name of Shareholder | Number of Shares Beneficially Owned | % Beneficially Owned(1) | Number of Shares Beneficially Owned | % Beneficially Owned(2) | Effective Voting Power | |||||||||||||
| Common Stock | ||||||||||||||||||
| Executive Officers and Directors | ||||||||||||||||||
| Michael Sheikh | 0 | 0 | % | 0 | 0 | % | See Note 4 | |||||||||||
| Matthew Dwyer | 93,008,357 | 50.91 | % | 122,407,355 | 51.00 | % | and Note 9 | |||||||||||
| Officers and directors, as a group (2 persons)(3) | 93,008,357 | 50.91 | % | 122,407,355 | 51.00 | % | ||||||||||||
| Series C Preferred Stock(5) | ||||||||||||||||||
| Matthew Dwyer | 1 | 100 | % | 1 | 100 | % |
| Share Ownership Before This Offering | Share Ownership After This Offering | |||||||||||||||||
| Name of Shareholder |
Number of Shares Beneficially Owned |
% Beneficially Owned(1) |
Number of Shares Beneficially Owned |
% Beneficially Owned(2) |
Effective Voting Power | |||||||||||||
| Common Stock | ||||||||||||||||||
| Executive Officers and Directors | ||||||||||||||||||
| Michael Sheikh | 0 | 0 | % | 0 | 0 | % | See Note 4 | |||||||||||
| Matthew Dwyer | 93,008,357 | 50.91 | % | 122,407,355 | 51.00 | % | and Note 5 | |||||||||||
| Officers and directors, as a group (2 persons)(3) | 93,008,357 | 50.91 | % | 122,407,355 | 51.00 | % | ||||||||||||
| 5% Owners | ||||||||||||||||||
| Series C Preferred Stock(5) | ||||||||||||||||||
| Matthew Dwyer | 1 | 100 | % | 1 | 100 | % | ||||||||||||
| (1) | Based on (a) 182,698,758 shares of common stock outstanding, which includes (1) 89,360,970 issued shares, (2) 329,431 unissued Conversion Shares that underlie the unconverted Subject Convertible Notes, and (3) 93,008,357 shares that underlie the single outstanding shares of Series C Convertible Preferred Stock, and (b) one (1) share of Series C Convertible Preferred Stock, respectively, before this offering. |
| (2) | Based on (a) 240,014,422 shares of common stock outstanding, assuming the sale of all 27,916,666 of the Remaining Company Offered Shares and the issuance of all 329,431 of the unissued Conversion Shares that underlie the unconverted Subject Convertible Notes (the Remaining Selling Shareholder Offered Shares), and the conversion of the single outstanding share of Series C Convertible Preferred Stock into 122,407,355 shares of common stock, and (b) one (1) share of Series C Convertible Preferred Stock issued, respectively, after this offering |
| (3) | In addition to the share ownership of our officers and directors, each of our Advisory Board members, Marvin S. Hausman, M.D. and Robert B. Beelman, owns 100,000 shares of our common stock. |
| (4) | Our Chief Executive Officer, Matthew Dwyer, owns the single outstanding share of the Series C Convertible Preferred Stock. Mr. Dwyer will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction. |
| (5) | The share of Series C Convertible Preferred Stock shall be entitled to 51% of all votes in all matters requiring shareholder approval. The share of the Series C Convertible Preferred Stock shall be convertible into 51% of the total shares of our common stock outstanding at the time of conversion and may be converted into shares of our common stock at any time. |
| 35 |
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Series C Convertible Preferred Stock
In April 2026, we issued the single share of Series C Convertible Preferred Stock to our Chief Executive Officer, Matthew Dwyer, as a retention bonus with a value of $50,000.
Cancellation of Series A Preferred Stock
Pursuant to the litigation settlement agreement, our sole director, Michael Sheikh, tendered for cancellation all of the outstanding shares of Series A Preferred Stock.
Plan and Agreement of Reorganization – Exousia AI
On November 11, 2025, pursuant to a Plan and Agreement of Reorganization (the Reorganization Agreement), L A M Y, a Wyoming corporation (LMMY), acquired our 70%-owned subsidiary, Exousia Ai, in exchange for shares of LMMY common stock. Following the closing of the Reorganization Agreement, our company holds 41,223,000 shares, or approximately 51.57% (as measured after the transaction), of LMMY common stock. Our company’s Chief Executive Officer, Matthew Dwyer, serves as LMMY’s sole officer and director.
The transaction with LMMY was pursued and consummated by our company, after our Board of Directors had determined, after investigating the LMMY opportunity, that the best interests of our company and our shareholders would be best served by acquiring a controlling interest in LMMY, in exchange for its ownership in Exousia Ai.
The consummation of the Reorganization Agreement did not change the overall operations of our company, as control of LMMY remains with our company. The primary purposes of such transaction were to gain access to a separate funding platform for what we believe to be a potentially extremely dynamic and valuable company in Exousia AI and, thereby, to achieve greater shareholder value for our company’s shareholders. There is no assurance that our strategy will be successful in achieving such objectives. (See “Risk Factors”).
Change-in-Control Transactions
October 29, 2025. Effective October 29, 2025, a change in control of our company occurred. On such date, our Sole Director, Michael Sheikh, and our current Chief Executive Officer, Matthew Dwyer, entered into a voting agreement (the “Voting Agreement”) with respect to the 100 shares of Series A Preferred Stock owned by Mr. Sheikh. Pursuant to the Voting Agreement, Mr. Dwyer shall, until such time as our company becomes a Nasdaq-listed company, have the sole right to exercise all voting rights attendant to the Series A Preferred Stock owned by Mr. Sheikh. However, Mr. Dwyer does not possess the power to take any action to remove Mr. Sheikh as a director of our company and Mr. Dwyer is required to vote to elect Mr. Sheikh as a director of our company. In addition, Mr. Sheikh granted to Mr. Dwyer the right of first refusal to purchase Mr. Sheikh’s shares of Series A Preferred Stock.
October 30, 2024. Effective October 30, 2024, a change in control of our company occurred. On such date, Earth Onyx, LLC, a company owned by our former Sole Director and Officer, sold 100 shares (the “Control Shares”), or 100% of the outstanding shares, of our Series A Preferred Stock to our current Sole Director. Mr. Sheikh paid $60,000 in cash and delivered a promissory note (the “Closing Note”) to Earth Onyx, LLC in payment of the Control Shares. The Closing Note has a principal amount of $100,000 and is due on the later of 60 days from October 30, 2024, and the date on which Mr. Steinberg shall have delivered ready-to-file federal tax returns for the years ended December 31, 2022 and 2023, of our company. Mr. Sheikh and Earth Onyx, LLC entered into Pledge Agreement, to secure Mr. Sheikh’s payment obligations under the Closing Note.
Voting Agreement
Effective October 29, 2025, our current Sole Director, Michael Sheikh, and our current Chief Executive Officer, Matthew Dwyer, entered into the Voting Agreement with respect to the 100 shares of Series A Preferred Stock owned by Mr. Sheikh. Pursuant to the Voting Agreement, Mr. Dwyer shall, until such time as our company becomes a Nasdaq-listed company, have the sole right to exercise all voting rights attendant to the Series A Preferred Stock owned by Mr. Sheikh. However, Mr. Dwyer does not possess the power to take any action to remove Mr. Sheikh as a director of our company and Mr. Dwyer is required to vote to elect Mr. Sheikh as a director of our company. In addition, Mr. Sheikh granted to Mr. Dwyer the right of first refusal to purchase Mr. Sheikh’s shares of Series A Preferred Stock. The Voting Agreement terminated at such time as Mr. Sheikh tendered for cancellation all of the outstanding shares of Series A Preferred Stock, pursuant to the litigation settlement agreement.
Acquisition of Exouisia AI
Effective December 31, 2024, pursuant to a stock purchase agreement with Ludwig Enterprises, Inc. (Ludwig), a publicly-traded company (symbol: LUDG), we acquired 100% of Exousia Ai, Inc., a Wyoming corporation (Exousia AI), and related assets, in consideration of a $100,000 promissory note (the Ludwig Note), the principal and interest of which is due on December 31, 2025, and 10,000 shares of our Series B Convertible Preferred Stock. In conjunction with the issuance of the Ludwig Note, we entered into a pledge agreement with Ludwig Enterprises, to secure our timely payment of the Ludwig Note.
Stock Exchange Agreement
On May 22, 2023, our company entered into a stock exchange agreement (the “Exchange Agreement”) with Marijuana, Inc., a now-dissolved Florida corporation, the control person of which was Donald Steinberg, our former sole officer and director who was in such positions at the time of the Exchange Agreement. Pursuant to the Stock Exchange Agreement, a company owned by Mr. Steinberg was issued 3,063,000 shares. However, shortly after the consummation of the Exchange Agreement, Mr. Steinberg caused the dissolution of the acquired company. The series of transactions surrounding the Exchange Agreement, which we believe to have been fraudulent, is the basis of a lawsuit filed by us against Mr. Steinberg, wherein we seek the rescission of the Exchange Agreement and the cancellation of all of the shares of common stock issued pursuant thereto. (See “Business – Litigation”).
| 36 |
Certain legal matters with respect to the Offered Shares, the Company Offered Shares and the Selling Shareholder Offered Shares, offered by this Offering Circular will be passed upon by Newlan Law Group, PLLC.
Prior to the date of this Offering Circular, Newlan Law Firm, PLLC, the predecessor firm to Newlan Law Group, PLLC, had been the beneficial holder of three of the Subject Convertible Notes in the total principal amount of $97,500. We had issued such Subject Convertible Notes to NLF Support Services, LLC, a Selling Shareholder and a wholly-owned service subsidiary of Newlan Law Firm, PLLC, pursuant to two separate legal services agreements with Newlan Law Firm, PLLC. In September 2025, NLF Support Services, LLC, converted the principal and accrued interest all three of the Subject Convertible Notes into a total of 670,569 Conversion Shares and, subsequently, sold all of such shares for cash at the then-offering price applicable to Selling Shareholders of $0.15 per share, a total amount of $100,585.
Currently, Newlan Law Firm, PLLC is the beneficial holder of one of the unconverted Subject Convertible Notes in the principal amount of $100,000. We issued such Subject Convertible Notes to NLF Support Services, LLC, a Selling Shareholder, a wholly-owned service subsidiary of Newlan Law Firm, PLLC, pursuant to two separate legal services agreements with Newlan Law Firm, PLLC.
After the qualification of this offering by the SEC, the unconverted Subject Convertible Note currently held by Newlan Law Firm, PLLC will, by its terms, be convertible into the Conversion Shares at $0.10 per share converted. Following any such issuances, we intend to file a supplement to this Offering Circular pursuant to Rule 253(g)(2), wherein the exact number of Conversion Shares (which are Selling Shareholder Offered Shares) issued in payment of the Subject Convertible Notes held by Newlan Law Firm, PLLC will be disclosed.
WHERE YOU CAN FIND MORE INFORMATION
We have filed an offering statement on Form 1-A with the SEC under the Securities Act with respect to the common stock offered by this Offering Circular. This Offering Circular, which constitutes a part of the offering statement, does not contain all of the information set forth in the offering statement or the exhibits and schedules filed therewith. For further information with respect to us and our common stock, please see the offering statement and the exhibits and schedules filed with the offering statement. Statements contained in this Offering Circular regarding the contents of any contract or any other document that is filed as an exhibit to the offering statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the offering statement. The offering statement, including its exhibits and schedules, may be inspected without charge at the public reference room maintained by the SEC, located at 100 F Street, N.E., Room 1580, Washington, D.C. 20549, and copies of all or any part of the offering statement may be obtained from such offices upon the payment of the fees prescribed by the SEC. Please call the SEC at 1-800-SEC-0330 for further information about the public reference room. The SEC also maintains an Internet website that contains all information regarding companies that file electronically with the SEC. The address of the site is www.sec.gov.
| 37 |
Nextel Medical Corp.
(formerly Exousia Pro, Inc. and Marijuana, Inc.)
| Page | |
| Unaudited Financial Statements For the Three Months Ended March 31, 2026 and 2025 | |
| Consolidated Balance Sheets at March 31, 2026, and December 31, 2025 (unaudited) | F-2 |
| Consolidated Statements of Operations For the Three Months Ended March 31, 2026 and 2025 (unaudited) | F-3 |
| Consolidated Statements of Changes in Stockholders’ Equity (Deficit) For the Three Months Ended March 31, 2026 and 2025 (unaudited) | F-4 |
| Consolidated Statements of Cash Flows For the Three Months Ended March 31, 2026 and 2025 (unaudited) | F-5 |
| Notes to Unaudited Consolidated Financial Statements | F-6 |
| Unaudited Financial Statements For the Years Ended December 31, 2025 and 2024 | |
| Consolidated Balance Sheets at December 31, 2025 and 2024 (unaudited) | F-14 |
| Consolidated Statements of Operations For the Years Ended December 31, 2025 and 2024 (unaudited) | F-15 |
| Consolidated Statements of Changes in Stockholders’ Equity (Deficit) For the Years Ended December 31, 2025 and 2024 (unaudited) | F-16 |
| Consolidated Statements of Cash Flows For the Years Ended December 31, 2025 and 2024 (unaudited) | F-17 |
| Notes to Unaudited Consolidated Financial Statements | F-18 |
Island 40 Group, LLC
| Unaudited Financial Statements For the Three Months Ended March 31, 2026 | |
| Balance Sheets at March 31, 2026, and December 31, 2025 (unaudited) | F-27 |
| Statements of Operations For the Three Months Ended March 31, 2026 and 2025 (unaudited) | F-28 |
| Statements of Changes in Stockholders’ Equity (Deficit) For the Three Months Ended March 31, 2026 and 2025 (unaudited) | F-29 |
| Statements of Cash Flows For the Three Months Ended March 31, 2026 and 2025 (unaudited) | F-30 |
| Notes to Unaudited Financial Statements | F-31 |
| Unaudited Financial Statements For the Years Ended December 31, 2025 and 2024 | |
| Balance Sheets at December 31, 2025 and 2024 (unaudited) | F-33 |
| Statements of Operations For the Years Ended December 31, 2025 and 2024 (unaudited) | F-34 |
| Statements of Changes in Stockholders’ Equity (Deficit) For the Years Ended December 31, 2025 and 2024 (unaudited) | F-35 |
| Statements of Cash Flows For the Years Ended December 31, 2025 and 2024 (unaudited) | F-36 |
| Notes to Unaudited Financial Statements | F-37 |
| F-1 |
Nextel Medical Corp.
(formerly Exousia Pro, Inc., Marijuana, Inc. and GRN Holding Corporation)
Consolidated Balance Sheets
(unaudited)
| March 31, | December 31, | |||||||
| ASSETS | 2026 | 2025 | ||||||
| Current Assets: | ||||||||
| Cash | $ | 177 | $ | 913 | ||||
| Accounts receivable | — | — | ||||||
| Prepaid expenses | 10,125 | 10,125 | ||||||
| Investment in LMMY | 14,350,000 | 14,350,000 | ||||||
| Total Current Assets | 14,360,302 | 14,361,038 | ||||||
| Long-Term Assets: | ||||||||
| Property, plant & equipment | — | — | ||||||
| Goodwill | — | — | ||||||
| Intangible assets | — | — | ||||||
| Total Long-Term Assets | — | — | ||||||
| Total Assets | $ | 14,360,302 | $ | 14,361,038 | ||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 313,960 | $ | 269,799 | ||||
| Credit card payable | 58,846 | 55,438 | ||||||
| Other current liabilities | 363,752 | 325,928 | ||||||
| Total Current Liabilities | 736,558 | 651,165 | ||||||
| Long-Term Liabilities | 248,426 | 385,526 | ||||||
| Total Liabilities | 984,984 | 1,036,691 | ||||||
| Stockholders' Deficit: | ||||||||
| Preferred Series B stock | 10 | 10 | ||||||
| Common stock | 139,342 | 133,342 | ||||||
| Additional paid-in capital | 12,952,946 | 12,821,845 | ||||||
| Opening balance equity | (244,250 | ) | (244,250 | ) | ||||
| Retained earnings / Accumulated deficit | 613,400 | (12,904,748 | ) | |||||
| Net income (loss) | (86,130 | ) | 13,518,148 | |||||
| Total Stockholders' Equity | 13,375,318 | 13,324,347 | ||||||
| Total Liabilities and Stockholders' Deficit | $ | 14,360,302 | $ | 14,361,038 | ||||
The accompanying notes are an integral part of these unaudited financial statements.
| F-2 |
Nextel Medical Corp.
(formerly Exousia Pro, Inc., Marijuana, Inc. and GRN Holding Corporation)
Consolidated Statements of Operations
For the Three Months Ended March 31, 2026 and 2025
(unaudited)
| For the Three Months Ended | For the Three Months Ended | |||||||
| 3/31/2026 | 3/31/2025 | |||||||
| REVENUES | $ | — | $ | 12,830 | ||||
| COSTS AND EXPENSES | ||||||||
| Cost of goods sold | — | — | ||||||
| Operating expenses | 86,130 | 132,091 | ||||||
| Total Costs and Expenses | (86,130 | ) | (132,091 | ) | ||||
| Loss From Operations | (86,130 | ) | (132,091 | ) | ||||
| OTHER INCOME (EXPENSE) | ||||||||
| Gain on investments | — | — | ||||||
| Fair value conversion option | — | — | ||||||
| Net Other Income | — | — | ||||||
| Loss before income taxes | (86,130 | ) | (132,091 | ) | ||||
| Provision for income taxes | — | — | ||||||
| Net Income (Loss) | $ | (86,130 | ) | $ | (132,091 | ) | ||
The accompanying notes are an integral part of these unaudited financial statements.
| F-3 |
Nextel Medical Corp.
(formerly Exousia Pro, Inc., Marijuana, Inc. and GRN Holding Corporation)
Consolidated Statement of Stockholders’ Equity (Deficit)
For the Three Months Ended March 31, 2026 and 2025
(unaudited)
| Preferred
Stock Series A | Preferred
Stock Series B | Common Stock | Additional Paid-In | Accumulated | Total Stockholders’ | |||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||||||||
| Balance, December 31, 2025 | 100 | $ | — | 10,000 | $ | 10 | 41,048,470 | $ | 41,048 | $ | 12,821,846 | $ | (12,904,748 | ) | $ | 13,574,422 | ||||||||||||||||||||
| Common stock issued for cash | — | — | — | — | 6,000,000 | 6,000 | 54,000 | — | 60,000 | |||||||||||||||||||||||||||
| Common stock issued for note conversion | — | — | — | — | 6,000,000 | 6,000 | 77,100 | — | 83,100 | |||||||||||||||||||||||||||
| Adjustment to reconcile prior period | — | — | — | — | — | — | — | 13,604,278 | — | |||||||||||||||||||||||||||
| Adjustment to reconcile prior period | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Cancellation per agreement | (100 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
| Net profit (loss) | — | — | — | — | — | — | — | (86,130 | ) | (86,130 | ) | |||||||||||||||||||||||||
| Balance, March 31, 2026 | — | $ | — | 10,000 | $ | 10 | 53,048,470 | $ | 53,048 | $ | 12,952,946 | $ | 613,400 | $ | 13,375,318 | |||||||||||||||||||||
| Preferred
Stock Series A | Preferred
Stock Series B | Common Stock | Additional Paid-In | Accumulated | Total Stockholders’ | |||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||||||||
| Balance, December 31, 2024 | 100 | $ | — | — | $ | — | 35,094,567 | $ | 35,095 | $ | 12,656,822 | $ | (13,008,068 | ) | $ | (316,142 | ) | |||||||||||||||||||
| Net loss | — | — | — | — | — | — | — | (132,091 | ) | (132,091 | ) | |||||||||||||||||||||||||
| Balance, March 31, 2025 | 100 | $ | — | 10,000 | $ | 10 | 35,094,567 | $ | 35,095 | $ | 12,656,822 | $ | (13,140,159 | ) | $ | (448,232 | ) | |||||||||||||||||||
The accompanying notes are an integral part of these unaudited financial statements.
| F-4 |
Nextel Medical Corp.
(formerly Exousia Pro, Inc., Marijuana, Inc. and GRN Holding Corporation)
Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2026 and 2025
(unaudited)
| For the Three Months Ended | For the Three Months Ended | |||||||
| 3/31/2026 | 3/31/2025 | |||||||
| Cash Flows From Operating Activities: | ||||||||
| Net income (loss) | $ | (86,130 | ) | $ | (132,091 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | ||||||||
| Prepaid expenses | — | (6,875 | ) | |||||
| Accounts payable | 44,161 | 18,715 | ||||||
| Credit card payable | 2,633 | 14,968 | ||||||
| Other liabilities | (89,058 | ) | (73,122 | ) | ||||
| Accrued liabilities | 37,500 | 30,000 | ||||||
| Accrued interest payable | — | 7,481 | ||||||
| Convertible notes payable | — | 124,560 | ||||||
| Notes payable, related party | 1,100 | 9,299 | ||||||
| Net cash provided (used) by operating activities | (736 | ) | (7,065 | ) | ||||
| Cash Flows From Investing Activities: | ||||||||
| Intangible assets | — | — | ||||||
| Investment in LMMY | — | — | ||||||
| Net cash used in investing activities | — | — | ||||||
| Cash Flows From Financing Activities: | ||||||||
| Ludwig Enterprise Inc. | — | (14,025 | ) | |||||
| Common stock proceeds | 6,000 | 3,000 | ||||||
| Additional paid-in capital | 131,100 | 27,000 | ||||||
| Note Payable: Red Phoenix Rising | (137,100 | ) | — | |||||
| Net cash provided by financing activities | — | 15,972 | ||||||
| Net Change in Cash | (736 | ) | 8,910 | |||||
| Cash, beginning of period | 913 | 100 | ||||||
| Cash, End of Period | $ | 177 | $ | 9,010 | ||||
The accompanying notes are an integral part of these unaudited financial statements.
| F-5 |
Exousia Pro, Inc.
(formerly Marijuana, Inc. and GRN Holding Corporation)
Notes to Unaudited Consolidated Financial Statements
Three Months Ended March 31, 2026
(unaudited)
NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The financial statements presented are those of Marijuana Inc. and subsidiaries, a Florida corporation (formerly GRN Holding Corporation) (the “Company” or “Successor”). The Company was incorporated in the State of Nevada on April 28, 2010, as Norman Cay Development, Inc. The Company’s corporate name changed to Discovery Gold Corp., in July 2012. The Company’s corporate name changed to became GRN Holding Corporation, in November 2019. The Company’s corporate name changed to Marijuana, Inc., in October 2024. The Company is currently pursuing a change of corporate name in the trading markets to “Exousia Pro, Inc.” and obtaining a new trading symbol, but are unable to predict the timing of approval.
On December 31, 2024, pursuant to a Stock Purchase Agreement between the Company and Ludwig Enterprises, Inc., the Company acquired Exousia AI, Inc. (“Exousia AI or the “Predecessor”), incorporated on June 3, 2023 in the state of Wyoming. Exousia AI assets embody a joint venture with a Japanese biotech company to manufacture and deliver mammalian and plant-based exosomes containing nucleic acids, such as DNA and mRNA to tissues and cells.
Basis of Presentation
The unaudited consolidated financial statements and related disclosures have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles (“GAAP”) of the United States. The Company has elected a calendar year-end.
Revenue Recognition Policy
We recognize revenue in accordance with the provisions of Accounting Series Codification (“ASC”) 606, Revenue From Contracts With Customers (“ASC 606”), which provides guidance on the recognition, presentation, and disclosure of revenue in financial statements. ASC 606 outlines the basic criteria that must be met to recognize revenue and provides guidance for disclosure related to revenue recognition policies. In general, the Company recognizes revenue based on the allocation of the transaction price to each performance obligation as each performance obligation in a contract is satisfied.
The Company manufactures and delivers mammalian and plant-based exosomes containing nucleic acids, such as DNA and mRNA to tissues and cells for use on commercial applications such as cosmetics. Revenue recognition for the sale of exosomes are based on the allocation of the transaction price to each performance obligation as each performance obligation in a contract is satisfied, title or access to exosomes are transferred and amounts are due are collected or collectible.
Goodwill and Indefinite-Lived Intangible Assets
The Company has goodwill and certain indefinite-lived intangible assets that have been recorded in connection with the acquisition of a business. Goodwill and indefinite-lived assets are not amortized but instead are tested for impairment at least annually. Goodwill represents the excess of the purchase price of an acquired business over the estimated fair value of the underlying net tangible and intangible assets acquired. The Company tests goodwill resulting from acquisitions for impairment annually, or whenever events or changes in circumstances indicate an impairment. For purposes of the goodwill impairment test, the Company has determined that it currently operates as a single reporting unit. If it is determined that an impairment has occurred, the Company adjusts the carrying value accordingly and charges the impairment as an operating expense in the period the determination is made. Although the Company believes goodwill is appropriately stated in the consolidated financial statements, changes in strategy or market conditions could significantly impact these judgments and require an adjustment to the recorded balance. There were no impairments during the periods presented.
| F-6 |
Fair Value of Financial Instruments
ASC 820, Fair Value Measurements (“ASC 820”) and ASC 825, Financial Instruments (“ASC 825”), requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value:
Level 1 - Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.
Level 2 - Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.
Level 3 - Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.
The carrying values of cash, as well as accounts payable, accrued interest, deferred revenue and related part payables approximate fair value. Pursuant to ASC 820 and 825, the fair value of cash is determined based on "Level 1" inputs, which consist of quoted prices in active markets for identical assets. A convertible note of the Company is required to be recorded at fair value on a recurring basis. Fair value is determined based on the price that would be received for an asset or paid to transfer a liability in an orderly transaction based on market participants. Factors that the Company considered when estimating the fair value of its convertible notes payable included quoted market prices of the Company’s common stock. The level of the convertible notes payable is considered as Level 1.
New Accounting Pronouncements
The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements. The Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
Basic and Diluted Loss Per Share
Basic net loss per share is computed on the basis of the weighted average number of common shares outstanding during each year. Diluted net loss per share is computed similar to basic net loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The Company uses the “if-converted” method for calculating the earnings per share impact of outstanding convertible debentures, whereby the securities are assumed converted, related debt discount amortization and fair value adjustments are added back to net income (loss) and an earnings per incremental share is computed. Options, warrants and their equivalents are included in EPS calculations through the treasury stock method. In periods where losses are reported, the weighted-average number of common stock outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive.
Convertible Debt Instruments
The Company follows ASC 480-10, Distinguishing Liabilities from Equity in its evaluation of the accounting for a hybrid instrument. A financial instrument that embodies an unconditional obligation, or a financial instrument other than an outstanding share that embodies a conditional obligation, that the issuer must or may settle by issuing a variable number of its equity shares shall be classified as a liability (or an asset in some circumstances) if, at inception, the monetary value of the obligation is based solely or predominantly on any one of the following: (a) a fixed monetary amount known at inception; (b) variations in something other than the fair value of the issuer’s equity shares; or (c) variations inversely related to changes in the fair value of the issuer’s equity shares. Hybrid instruments meeting these criteria are not further evaluated for any embedded derivatives and are carried as a liability at fair value at each balance sheet date with remeasurements reported in change on fair value expense in the accompanying Statements of Operations.
| F-7 |
NOTE 2 - RELATED PARTY TRANSACTIONS
The Company’s Sole Director, Michael Sheikh, made a $100 advance to the Company during December 2024 to open a bank account. The advance is due on demand and bears no interest. The balance was $100 as of March 31, 2026, and December 31, 2025, respectively.
NOTE 3 - ALLIANCE AGREEMENT
On January 20, 2025, the Company executed an Alliance Agreement with Progenicyte Japan CO., LTD, which is embodied in the Company’s subsidiary, Exousia Pro, Inc. Through Exousia Pro, the Company now holds the worldwide license in perpetuity for Progenicyte’s patent covering the loading of Exosomes. Exousia Pro is required to pay Progenictye the sum of $16,667 a month and issue it 30% of Exousia Pro’s equity as payment for the exclusive worldwide license.
NOTE 4 - NOTES AND CONVERTIBLE NOTES PAYABLE
Note Payable
In July 2025, in consideration of a $15,000 loan, the Company issued and delivered a $20,000 promissory note. The promissory note has a $5,000 face discount, bears interest at 10% per annum, is due July 30, 2026.
Convertible Notes Payable
In accordance with ASC 480, Distinguishing Liabilities from Equity, the Company evaluates its hybrid convertible debt instruments with unconditional obligations allowing settlement by issuing a variable number of its equity shares to determine proper classification and accounting. The Company classifies the hybrid convertible debt instruments as a liability upon being convertible at the option of the holders due to the conversion terms being based on fixed monetary amounts known at inception, in this case, settlement with a variable number of the Company’s equity shares. As such, conversion options are carried as a liability at fair value at each balance sheet date with a re-measurement reported as a change in fair value of share-settled debt in other (income) expense in the accompanying condensed statements of operations.
During March 2025, the Company issued and delivered a $65,000 convertible note. The convertible note has a $15,000 face discount, bears interest at 8% per annum, is due October 30, 2025, and is convertible into shares of Company common stock at any time at a 25% discount to the then-trading price; provided, however, that the holder of the convertible note may not convert into a number of shares of common stock that would cause the holder to exceed 9.99% ownership of Company common stock. In addition, the convertible note carries rights of qualification and rights of registration. Should the Consulting Note be converted into shares of common stock of the Company that are the subject of an Offering Statement on Form 1-A (the “Reg A”) or a Registration Statement on Form S-1 (the “S-1”), the conversion price would be equal to the offering price of the shares offered under the Reg A or the S-1, as the case may be. The balance of the convertible note was $65,000, the fair value of the conversion option was $8,564 and the unamortized debt discount was $11,822 at December 31, 2025. Amortization of face value debt discount is being done over the life of the convertible note and was $5,178 for the year ended December 31, 2025.
Consulting Agreement
Pursuant to a consulting agreement, the Company issued and delivered a $200,000 convertible note to Donald Steinberg. The convertible note bears interest at 8% per annum, is due October 30, 2025, and is convertible into shares of Company common stock at any time at a 25% discount to the then-trading price; provided, however, that the holder of the convertible note may not convert into a number of shares of common stock that would cause the holder to exceed 9.99% ownership of Company common stock. In addition, the convertible note carries rights of qualification and rights of registration. Should the Consulting Note be converted into shares of common stock of the Company that are the subject of an Offering Statement on Form 1-A (the “Reg A”) or a Registration Statement on Form S-1 (the “S-1”), the conversion price would be equal to the offering price of the shares offered under the Reg A or the S-1, as the case may be. The balance of the consulting agreement convertible note was $200,000 and $200,000 at December 31, 2025 and December 31, 2024, respectively.
| F-8 |
Legal Services
Pursuant to a legal services agreement, the Company issued and delivered a $25,000 convertible note to NLF Support Services, LLC. The convertible note bears interest at 8% per annum, is due November 18, 2025 and automatically converts into shares of the Company’s common stock on the date on which the Company’s offering circular with respect to the offering of Common Stock pursuant to Regulation A is first “qualified” by the SEC and any other relevant state or other jurisdictional qualification. On the qualification date, the outstanding balance, including accrued interest at the rate equal to the price of the Regulation A offering. The balance of the legal services Note was $0 and $0 at March 31, 2026, and December 31, 2025, respectively.
Pursuant to a legal services agreement, the Company issued and delivered a $100,000 convertible note to Newlan Law Firm, PLLC. The convertible note bears interest at 8% per annum, is due December 17, 2026, and is convertible at price equal to the lower of $.01 and a 25% discount to the market.
Consulting Services
Pursuant to a consulting services agreement, the Company issued three separate convertible notes with a principal amount of $125,000 to Red Phoenix Rising, LLC. The convertible notes bear interest at 8% per annum, are due December 17, 2026, and are convertible at price equal to the lower of $.01 and a 25% discount to the market.
Acquisition
On December 31, 2024, the Company and Ludwig Enterprises, Inc. (the “LUDG”) entered into a Stock Purchase Agreement, pursuant to which the Company issued a $100,000 principal amount promissory note (the “Purchaser Note”). The Purchaser Note bears interest at eight percent (8%) per annum, with principal and accrued interest due December 31, 2025 and is secured by all of the asset of Exousia AI. During the year ended December 31, 2024, a third party company lent the Company a total of $24,551 in advances to pay corporate expenses.
Advances Payable
During the year ended December 31, 2024, a third party company lent the Company a total of $24,551 in advances to pay corporate expenses. The amounts are due on demand, unsecured and accrue interest at 8% per annum. The balance of the advances was $24,551 and $24,551 at March 31, 2026, and December 31, 2025, respectively.
During the year ended December 31, 2025, a third-party company lent the Company a total of $9,903 in advances to pay corporate expenses and repaid $8,756. The amounts are due on demand, unsecured and accrue interest at 8% per annum.
NOTE 5 - STOCKHOLDERS’ EQUITY
Common Stock
During the three months ended March 31, 2026, the Company sold 6,000,000 shares of common stock for $60,000 in cash, or $0.01 per share.
Preferred Stock
The Company is authorized to issue 10,000,000 shares of Preferred Stock, par value $0.001 per share, of which 100 shares have been designated Series A Preferred Stock and of which 10,000 shares have been designated Series B
| F-9 |
Series B Convertible Preferred Stock
Each share of Series B Convertible Preferred Stock shall be entitled to one (1) vote in all matters requiring shareholder approval. Dividends: The Series B Convertible Preferred Stock shall be treated pari passu with the Company's common stock, except that the dividend on each share of Series B Convertible Preferred Stock shall be equal to the amount of the dividend declared and paid on each share of the Common Stock multiplied by the Conversion Rate. Liquidation: Upon any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, payments to the holders of Series B Convertible Preferred Stock shall be treated pari passu with the Common Stock, except that the payment on each share of Series B Convertible Preferred Stock shall be equal to the amount of the payment on each share of the Common Stock multiplied by the Conversion Rate. Conversion: Each share of the Series B Convertible Preferred Stock shall be convertible into Four Thousand Seven Hundred (4,700) shares of the Common Stock; a holder of shares of Series B Convertible Preferred Stock shall be required to convert all of such holder's shares of Series B Convertible Preferred Stock, should any such holder exercise his, her or its rights of conversion; the Series B Convertible Preferred Stock may be converted into shares of the Common Stock any time after the date that is six months immediately following the effective date of the Common Stock's uplisting to any tier of the NASDAQ Stock Market (including NASDAQ Capital Market), the NYSE American or any successor to such markets.
In December 2024, the Company issued 10,000 shares of Series B Convertible Preferred Stock to Ludwig Enterprises, Inc., pursuant to a Stock Purchase Agreement.
NOTE 6 - LEASE
On January 15, 2025, the Company executed a one-year lease agreement with Wellspring USA for lab space located in Orlando, Florida. The lease provides for renewals annually at the option of the Company. The leased premises is comprised of 1,000 square feet and the monthly rental payment is $2,161.
NOTE 7 - GOING CONCERN
The Company’s consolidated financial statements are prepared using Generally Accepted Accounting Principles applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has recently accumulated losses since its inception and has had negative cash flows from operations, which raise substantial doubt about its ability to continue as a going concern. Management's plans with respect to alleviating the adverse financial conditions that caused management to express substantial doubt about the Company's ability to continue as a going concern are as follows:
The ability to continue the Company’s operations depends on its ability to generate and grow revenue and results of operations as well as our ability to access capital markets when necessary to accomplish strategic objectives. The Company expects to continue to incur losses for the immediate future and will need additional equity or debt financing until the Company can achieve profitability and positive cash flows from operating activities. The Company’s future capital requirements for operations will depend on many factors, including the ability to generate revenues and obtain capital.
There can be no assurance that The Company will be able to achieve its business plans, raise any more required capital or secure the financing necessary to achieve its current operating plan. The ability of The Company to continue as a going concern is dependent upon its ability to successfully accomplish the plan described in the preceding paragraph and eventually attain profitable operations. The accompanying unaudited consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
| F-10 |
NOTE 8 - LITIGATION
In July 2025, we filed a lawsuit against our former Sole Officer and Director, Donald Steinberg, styled Exousia Pro, Inc., a Florida corporation, formerly known as Marijuana, Inc. and as GRN Holding Corporation vs. Donald Steinberg and Securities Transfer Corporation, a nominal defendant, in the Circuit Court of the Court of the Twentieth Judicial District in and for Lee County, Florida. In the lawsuit, we seek the cancellation of all shares issued by our company pursuant to a stock exchange agreement (the “Exchange Agreement”) with Marijuana, Inc., a now-dissolved Florida corporation, the control person of which was Donald Steinberg, our former sole officer and director who was in such positions at the time of the Exchange Agreement. Pursuant to the Stock Exchange Agreement, a company owned by Mr. Steinberg was issued 3,063,000 shares. However, shortly after the consummation of the Exchange Agreement, Mr. Steinberg caused the dissolution of the acquired company. The series of transactions surrounding the Exchange Agreement, which we believe to have been fraudulent, is the basis of a lawsuit filed by us against Mr. Steinberg, wherein we seek the rescission of the Exchange Agreement and the cancellation of all of the shares of common stock issued pursuant thereto.
In September 2025, following a hearing, significant protections for our shareholders have been established. While the motion for a Temporary Restraining Order (TRO) was not heard due to a lack of available court time, a mutually agreed-upon standstill order was executed on all shares held by Mr. Steinberg, representing approximately 10.5% of the shares outstanding.
In December 2025, the Court denied motions to dismiss filed by Mr. Steinberg and Kimberly Carlson.
In March 2026, a settlement agreement was reached in this lawsuit. Under the terms of the settlement agreement, which is scheduled to close on or about April 15, 2026, we are required to make a one-time payment of $147,500 to Mr. Steinberg and related parties and, in consideration, thereof, (A) Mr. Steinberg shall cancel (1) a $200,000 promissory note issued by us in October 2024 pursuant to a consulting agreement and (2) a $100,000 promissory note issued by Earth Onyx, LLC, a company owned by our sole director, Michael Sheikh, in connection with the October 2024 change-in-control transaction between Earth Onyx, LLC and Mr. Steinberg and (B) Mr. Steinberg and related parties shall tender a total of 6,297,511 shares of our common stock for cancellation.
NOTE 9 - PLAN AND AGREEMENT OF REORGANIZATION
On November 11, 2025, pursuant to a Plan and Agreement of Reorganization (the “Reorganization Agreement”), L A M Y, a Wyoming corporation (“LMMY”), acquired the Company’s 70%-owned subsidiary, Exousia Ai, Inc., a Florida corporation (“Exousia Ai”), in exchange for shares of LMMY common stock. Following the closing of the Reorganization Agreement, the Company holds 41,223,000 shares, or approximately 51% (as measured after the transaction), of LMMY common stock. The Company’s Chief Executive Officer, Matthew Dwyer, serves as LMMY’s sole officer and director.
The transaction with LMMY was pursued and consummated by the Company, after the Company’s Board of Directors had determined, after investigating the LMMY opportunity, that the best interests of the Company and its shareholders would be best served by acquiring a controlling interest in LMMY, in exchange for its ownership in Exousia Ai.
NOTE 10 - CONVERSIONS OF NOTES
During the three months ended March 31, 2026, the Company issued a total of 6,000,000 shares of its common stock in payment of $60,000 of principal of a convertible promissory note.
| F-11 |
NOTE 11 - SUBSEQUENT EVENTS
Conversions of Notes
Since March 31, 2026, the Company has issued 5,000,000 shares of its common stock in payment of $50,000 of principal of a convertible promissory note.
Regulation A Offering Subscriptions
Since March 31, 2026, the Company has sold 8,500,000 shares of its common stock for $.01 per share in cash, a total of $85,000, in its Regulation A offering.
Preferred Stock Transactions
Series C Convertible Preferred Stock
In April 2026, the Company designated a single share as Series C Convertible Preferred Stock, as follows:
Section 1. Designation, Amount and Par Value. The series of Preferred Stock shall be designated as Series C Convertible Preferred Stock (the “Series C Convertible Preferred Stock”) and the number of shares so designated shall be One (1). The Series C Convertible Preferred Stock shall have a par value of $0.001.
Section 2. Fractional Shares. The Series C Convertible Preferred Stock may be issued in fractional shares.
Section 3. Voting Rights. The share shall be entitled to Fifty-one Percent (51%) of all votes in all matters requiring shareholder approval.
Section 4. Dividends. The Series C Convertible Preferred Stock shall be treated pari passu with the Company’s common stock (the “Common Stock”), except that the dividend on the share of Series C Convertible Preferred Stock shall be equal to the amount of the dividend declared and paid on each share of the Common Stock multiplied by the Conversion Rate, as that term is defined in Section 6(a).
Section 5. Liquidation. Upon any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, payments to the holders of Series C Convertible Preferred Stock shall be treated pari passu with the Common Stock, except that the payment on the share of Series C Convertible Preferred Stock shall be equal to the amount of the payment on each share of the Common Stock multiplied by the Conversion Rate, as that term is defined in Section 6(a).
Section 6. Conversion and Adjustments.
(a) Conversion Rate. The share of the Series C Convertible Preferred Stock shall be convertible into Fifty-One (51%) of the total shares of the Common Stock Outstanding at the time of Conversion (the “Conversion Rate”).
(b) No Partial Conversion. A holder of shares of Series C Convertible Preferred Stock shall be required to convert all of such holder’s shares of Series C Convertible Preferred Stock, should any such holder exercise his, her or its rights of conversion.
(c) Adjustments.
(1) Adjustment to Conversion Price for Stock Dividends, Consolidations and Subdivisions. In case the Company, at any time after the first issuance of a share of the Series C Convertible Preferred Stock, shall declare or pay on the Common Stock any dividend in shares of Common Stock, or effect a subdivision of the outstanding shares of the Common Stock into a greater number of shares of the Common Stock (by reclassification or otherwise than by payment of a dividend payable in shares of the Common Stock), or shall combine or consolidate the outstanding shares of the Common Stock into a lesser number of shares of the Common Stock (by reclassification or otherwise), then, and in each such case, the Conversion Rate (as previously adjusted) in effect immediately prior to such declaration, payment, subdivision, combination or consolidation shall, concurrently with the effectiveness of such declaration, payment, subdivision, combination or consolidation, be proportionately adjusted.
| F-12 |
(2) Adjustments for Reclassifications and Certain Reorganizations. In case the Company, at any time after the first issuance of a share of the Series C Convertible Preferred Stock, shall reclassify or otherwise change the outstanding shares of the Common Stock, whether by capital reorganization, reclassification or otherwise, or shall consolidate with or merge with or into any other corporation where the Company is not the surviving corporation but not otherwise, then, and in each such case, each outstanding share of the Series C Convertible Preferred Stock shall, immediately after the effectiveness of such reclassification, other change, consolidation or merger, be convertible into the type and amount of stock and other securities or property which the holder of that number of shares of the Common Stock into which such share of the Series C Convertible Preferred Stock would have been convertible before the effectiveness of such reclassification, other change, consolidation or merger would be entitled to receive in respect of such shares of the Common Stock as the result of such reclassification, other change, consolidation or merger.
(d) Conversion Period. The Series C Convertible Preferred Stock must be converted into shares of the Common Stock at any time.
Section 7. Protection Provisions. The Company shall not, without first obtaining the unanimous written consent of the holders of Series C Convertible Preferred Stock, alter or change the rights, preferences, or privileges of the Series C Convertible Preferred Stock to adversely affect the holders of Series C Convertible Preferred Stock.
Section 8. Waiver. Any of the rights, powers or preferences of the holders of the Series C Convertible Preferred Stock may be waived by the affirmative consent or vote of the holder of the share of Series C Convertible Preferred Stock then outstanding.
Section 9. No Other Rights or Privileges. Except as specifically set forth herein, the holder(s) of the shares of Series C Convertible Preferred Stock shall have no other rights, privileges or preferences with respect to the Series C Convertible Preferred Stock.
In April 2026, the Company issued the single share of Series C Convertible Preferred Stock, pursuant to an agreement.
Other
Management has evaluated subsequent events through May 22, 2026.
| F-13 |
Nextel Medical Corp.
(formerly Exousia Pro, Inc., Marijuana, Inc. and GRN Holding Corporation)
Consolidated Balance Sheets
(unaudited)
| December 31, | December 31, | |||||||
| ASSETS | 2025 | 2024 | ||||||
| Current Assets: | ||||||||
| Cash | $ | 913 | $ | 100 | ||||
| Accounts receivable | — | — | ||||||
| Prepaid expenses | 10,125 | — | ||||||
| Investment in LMMY | 14,350,000 | — | ||||||
| Total Current Assets | 14,361,038 | 100 | ||||||
| Long-Term Assets: | ||||||||
| Property, plant & equipment | — | — | ||||||
| Goodwill | — | — | ||||||
| Intangible assets | — | 202,681 | ||||||
| Total Long-Term Assets | — | 202,681 | ||||||
| Total Assets | $ | 14,361,038 | $ | 202,781 | ||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 269,799 | $ | 53,319 | ||||
| Credit card payable | 55,438 | — | ||||||
| Accrued liabilities | 142,500 | — | ||||||
| Accrued interest payable | 27,157 | 3,207 | ||||||
| Accrued product deliverable | — | 50,000 | ||||||
| Convertible notes payable | 143,300 | 287,746 | ||||||
| Notes payable | 49,551 | 124,551 | ||||||
| Notes payable, related party | 12,896 | 100 | ||||||
| Due to Ludwig Enterprise Inc. | 85,975 | — | ||||||
| Total Current Liabilities | 786,615 | 518,923 | ||||||
| Total Liabilities | 786,615 | 518,923 | ||||||
| Stockholders' Deficit: | ||||||||
| Preferred Series B stock | 10 | 10 | ||||||
| Common stock | 133,342 | 35,095 | ||||||
| Additional paid-in capital | 12,821,846 | 12,656,822 | ||||||
| Opening balance equity | 5,750 | — | ||||||
| Retained earnings / Accumulated deficit | (12,904,748 | ) | (13,008,068 | ) | ||||
| Net income (loss) | 13,518,223 | (164,001 | ) | |||||
| Total Stockholders' Deficit | 13,574,422 | (316,142 | ) | |||||
| Total Liabilities and Stockholders' Deficit | $ | 14,361,038 | $ | 202,781 | ||||
The accompanying notes are an integral part of these unaudited financial statements.
| F-14 |
Nextel Medical Corp.
(formerly Exousia Pro, Inc., Marijuana, Inc. and GRN Holding Corporation)
Consolidated Statements of Operations
For the Years Ended December 31, 2025 and 2024
(unaudited)
| For the Year Ended | For the Year Ended | |||||||
| December 31, 2025 | December 31, 2024 | |||||||
| REVENUES | $ | 500 | $ | 12,830 | ||||
| COSTS AND EXPENSES | ||||||||
| Cost of goods sold | 5,735 | — | ||||||
| Operating expenses | — | 30,118 | ||||||
| Consulting and professional fees | (89,290 | ) | 9,650 | |||||
| General and administrative | 2,914 | 14,061 | ||||||
| Corporate filing expense | 1,730 | — | ||||||
| Bank charges | 3,012 | — | ||||||
| Equipment rental | 8,032 | — | ||||||
| Travel | 1,621 | — | ||||||
| Payroll and benefits | 142,500 | — | ||||||
| Legal and professional | 87,727 | — | ||||||
| Public and shareholder relations | 39,332 | — | ||||||
| Rent expense | 29,912 | — | ||||||
| Lab supplies | 739 | — | ||||||
| Depreciation and amortization | 25,335 | — | ||||||
| Interest expense | 29,038 | — | ||||||
| Research and development | 252,947 | 123,002 | ||||||
| Total Costs and Expenses | 541,283 | 176,831 | ||||||
| Loss From Operations | (540,783 | ) | (164,001 | ) | ||||
| OTHER INCOME (EXPENSE) | ||||||||
| Gain on investments | 14,172,654 | — | ||||||
| Fair value conversion option | (113,648 | ) | — | |||||
| Net Other Income | 14,059,006 | — | ||||||
| Loss before income taxes | 13,518,223 | (164,001 | ) | |||||
| Provision for income taxes | — | — | ||||||
| Net Income (Loss) | $ | 13,518,223 | $ | (164,001 | ) | |||
The accompanying notes are an integral part of these unaudited financial statements.
| F-15 |
Nextel Medical Corp.
(formerly Exousia Pro, Inc., Marijuana, Inc. and GRN Holding Corporation)
Consolidated Statement of Stockholders’ Equity (Deficit)
For the Years Ended December 31, 2025 and 2024
(unaudited)
| Preferred
Stock Series A | Preferred
Stock Series B | Common Stock | Additional Paid-In | Accumulated | Total Stockholders’ | |||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||||||||
| Balance, December 31, 2024 | 100 | $ | — | 10,000 | $ | 10 | 35,094,567 | $ | 35,095 | $ | 12,656,822 | $ | (13,008,068 | ) | $ | (316,142 | ) | |||||||||||||||||||
| Common stock issued for cash | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Common stock issued for note conversion | — | — | — | — | 5,313,334 | 5,512 | 65,109 | — | 70,621 | |||||||||||||||||||||||||||
| Adjustment due to acquisition | — | — | — | — | 670,569 | 670 | 99,915 | — | 100,585 | |||||||||||||||||||||||||||
| Adjustment due to acquisition | — | — | — | — | — | — | — | 12,394,593 | — | |||||||||||||||||||||||||||
| Adjustment due to acquisition | — | — | — | — | — | — | — | — | 201,135 | |||||||||||||||||||||||||||
| Net profit | — | — | — | — | — | — | — | 13,518,223 | 13,518,223 | |||||||||||||||||||||||||||
| Balance, December 31, 2025 | 100 | $ | — | 10,000 | $ | 10 | 41,048,470 | $ | 41,048 | $ | 12,821,846 | $ | (12,904,748 | ) | $ | 13,574,422 | ||||||||||||||||||||
| Preferred Stock Series A | Preferred Stock Series B | Common Stock | Additional Paid-In | Accumulated | Total Stockholders’ | |||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||||||||
| Balance, December 31, 2023 | 100 | $ | — | — | $ | — | 35,094,567 | $ | 35,095 | $ | 12,396,762 | $ | (12,584,282 | ) | $ | (255,745 | ) | |||||||||||||||||||
| Series B Preferred Stock issued in acquisition | — | — | 10,000 | 10 | — | — | 102,671 | — | 102,681 | |||||||||||||||||||||||||||
| Payment of accounts payable by related party contributed to capital | — | — | — | — | — | — | 54,069 | — | 54,069 | |||||||||||||||||||||||||||
| Adjustment from prior period | — | — | — | — | — | — | 103,320 | — | 103,320 | |||||||||||||||||||||||||||
| Net loss | — | — | — | — | — | — | — | (320,467 | ) | (320,467 | ) | |||||||||||||||||||||||||
| Balance, December 31, 2024 | 100 | $ | — | 10,000 | $ | 10 | 35,094,567 | $ | 35,095 | $ | 12,656,822 | $ | (13,008,068 | ) | $ | (316,142 | ) | |||||||||||||||||||
The accompanying notes are an integral part of these unaudited financial statements.
| F-16 |
Nextel Medical Corp.
(formerly Exousia Pro, Inc., Marijuana, Inc. and GRN Holding Corporation)
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2025
(unaudited)
| For the Year Ended | For the Year Ended | |||||||
| December 31, 2025 | December 31, 2024 | |||||||
| Cash Flows From Operating Activities: | ||||||||
| Net income (loss) | $ | 13,518,223 | $ | (164,002 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | ||||||||
| Accounts receivable | — | — | ||||||
| Prepaid expenses | (10,125 | ) | — | |||||
| Accounts payable | 269,799 | 14,002 | ||||||
| Credit card payable | 55,438 | — | ||||||
| Accrued liabilities | 142,500 | — | ||||||
| Accrued interest payable | 23,950 | — | ||||||
| Accrued product deliverable | — | 50,000 | ||||||
| Convertible notes payable | (118,446 | ) | — | |||||
| Notes payable, related party | 12,796 | — | ||||||
| Net cash provided (used) by operating activities | 13,893,135 | (100,000 | ) | |||||
| Cash Flows From Investing Activities: | ||||||||
| Intangible assets | 202,681 | — | ||||||
| Investment in LMMY | (14,350,000 | ) | — | |||||
| Net cash used in investing activities | (14,147,319 | ) | — | |||||
| Cash Flows From Financing Activities: | ||||||||
| Ludwig Enterprise Inc. | (14,025 | ) | — | |||||
| Common stock proceeds | 98,247 | — | ||||||
| Additional paid-in capital | 165,025 | — | ||||||
| Opening balance equity | 5,750 | — | ||||||
| Proceeds from parent company advances | — | — | ||||||
| Net cash provided by financing activities | 254,997 | — | ||||||
| Net Change in Cash | 813 | (100,000 | ) | |||||
| Cash, beginning of period | 100 | 100,000 | ||||||
| Cash, End of Period | $ | 913 | $ | — | ||||
The accompanying notes are an integral part of these unaudited financial statements.
| F-17 |
Nextel Medical Corp.
(formerly Exousia Pro, Inc., Marijuana, Inc. and GRN Holding Corporation)
Notes to Unaudited Consolidated Financial Statements
Year Ended December 31, 2025
(unaudited)
NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The financial statements presented are those of Marijuana Inc. and subsidiaries, a Florida corporation (formerly GRN Holding Corporation) (the “Company” or “Successor”). The Company was incorporated in the State of Nevada on April 28, 2010, as Norman Cay Development, Inc. The Company’s corporate name changed to Discovery Gold Corp., in July 2012. The Company’s corporate name changed to became GRN Holding Corporation, in November 2019. The Company’s corporate name changed to Marijuana, Inc., in October 2024. The Company is currently pursuing a change of corporate name in the trading markets to “Exousia Pro, Inc.” and obtaining a new trading symbol, but are unable to predict the timing of approval.
On December 31, 2024, pursuant to a Stock Purchase Agreement between the Company and Ludwig Enterprises, Inc., the Company acquired Exousia AI, Inc. (“Exousia AI or the “Predecessor”), incorporated on June 3, 2023 in the state of Wyoming. Exousia AI assets embody a joint venture with a Japanese biotech company to manufacture and deliver mammalian and plant-based exosomes containing nucleic acids, such as DNA and mRNA to tissues and cells.
Basis of Presentation
The unaudited consolidated financial statements and related disclosures have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles (“GAAP”) of the United States. The Company has elected a calendar year-end.
Revenue Recognition Policy
We recognize revenue in accordance with the provisions of Accounting Series Codification (“ASC”) 606, Revenue From Contracts With Customers (“ASC 606”), which provides guidance on the recognition, presentation, and disclosure of revenue in financial statements. ASC 606 outlines the basic criteria that must be met to recognize revenue and provides guidance for disclosure related to revenue recognition policies. In general, the Company recognizes revenue based on the allocation of the transaction price to each performance obligation as each performance obligation in a contract is satisfied.
The Company manufactures and delivers mammalian and plant-based exosomes containing nucleic acids, such as DNA and mRNA to tissues and cells for use on commercial applications such as cosmetics. Revenue recognition for the sale of exosomes are based on the allocation of the transaction price to each performance obligation as each performance obligation in a contract is satisfied, title or access to exosomes are transferred and amounts are due are collected or collectible.
Goodwill and Indefinite-Lived Intangible Assets
The Company has goodwill and certain indefinite-lived intangible assets that have been recorded in connection with the acquisition of a business. Goodwill and indefinite-lived assets are not amortized but instead are tested for impairment at least annually. Goodwill represents the excess of the purchase price of an acquired business over the estimated fair value of the underlying net tangible and intangible assets acquired. The Company tests goodwill resulting from acquisitions for impairment annually, or whenever events or changes in circumstances indicate an impairment. For purposes of the goodwill impairment test, the Company has determined that it currently operates as a single reporting unit. If it is determined that an impairment has occurred, the Company adjusts the carrying value accordingly and charges the impairment as an operating expense in the period the determination is made. Although the Company believes goodwill is appropriately stated in the consolidated financial statements, changes in strategy or market conditions could significantly impact these judgments and require an adjustment to the recorded balance. There were no impairments during the periods presented.
| F-18 |
Fair Value of Financial Instruments
ASC 820, Fair Value Measurements (“ASC 820”) and ASC 825, Financial Instruments (“ASC 825”), requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value:
Level 1 - Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.
Level 2 - Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.
Level 3 - Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.
The carrying values of cash, as well as accounts payable, accrued interest, deferred revenue and related part payables approximate fair value. Pursuant to ASC 820 and 825, the fair value of cash is determined based on "Level 1" inputs, which consist of quoted prices in active markets for identical assets. A convertible note of the Company is required to be recorded at fair value on a recurring basis. Fair value is determined based on the price that would be received for an asset or paid to transfer a liability in an orderly transaction based on market participants. Factors that the Company considered when estimating the fair value of its convertible notes payable included quoted market prices of the Company’s common stock. The level of the convertible notes payable is considered as Level 1.
New Accounting Pronouncements
The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements. The Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
Basic and Diluted Loss Per Share
Basic net loss per share is computed on the basis of the weighted average number of common shares outstanding during each year. Diluted net loss per share is computed similar to basic net loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The Company uses the “if-converted” method for calculating the earnings per share impact of outstanding convertible debentures, whereby the securities are assumed converted, related debt discount amortization and fair value adjustments are added back to net income (loss) and an earnings per incremental share is computed. Options, warrants and their equivalents are included in EPS calculations through the treasury stock method. In periods where losses are reported, the weighted-average number of common stock outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive.
Convertible Debt Instruments
The Company follows ASC 480-10, Distinguishing Liabilities from Equity in its evaluation of the accounting for a hybrid instrument. A financial instrument that embodies an unconditional obligation, or a financial instrument other than an outstanding share that embodies a conditional obligation, that the issuer must or may settle by issuing a variable number of its equity shares shall be classified as a liability (or an asset in some circumstances) if, at inception, the monetary value of the obligation is based solely or predominantly on any one of the following: (a) a fixed monetary amount known at inception; (b) variations in something other than the fair value of the issuer’s equity shares; or (c) variations inversely related to changes in the fair value of the issuer’s equity shares. Hybrid instruments meeting these criteria are not further evaluated for any embedded derivatives and are carried as a liability at fair value at each balance sheet date with remeasurements reported in change on fair value expense in the accompanying Statements of Operations.
| F-19 |
NOTE 2 - RELATED PARTY TRANSACTIONS
The Company’s Sole Director, Michael Sheikh, made a $100 advance to the Company during December 2024 to open a bank account. The advance is due on demand and bears no interest. The balance was $100 as of December 31, 2025, and December 31, 2024, respectively.
NOTE 3 - ALLIANCE AGREEMENT
On January 20, 2025, the Company executed an Alliance Agreement with Progenicyte Japan CO., LTD, which is embodied in the Company’s subsidiary, Exousia Pro, Inc. Through Exousia Pro, the Company now holds the worldwide license in perpetuity for Progenicyte’s patent covering the loading of Exosomes. Exousia Pro is required to pay Progenictye the sum of $16,667 a month and issue it 30% of Exousia Pro’s equity as payment for the exclusive worldwide license. As of December 31, 2025, no equity payment has been made.
NOTE 4 - NOTES AND CONVERTIBLE NOTES PAYABLE
Note Payable
In July 2025, in consideration of a $15,000 loan, the Company issued and delivered a $20,000 promissory note. The promissory note has a $5,000 face discount, bears interest at 10% per annum, is due July 30, 2026.
Convertible Notes Payable
In accordance with ASC 480, Distinguishing Liabilities from Equity, the Company evaluates its hybrid convertible debt instruments with unconditional obligations allowing settlement by issuing a variable number of its equity shares to determine proper classification and accounting. The Company classifies the hybrid convertible debt instruments as a liability upon being convertible at the option of the holders due to the conversion terms being based on fixed monetary amounts known at inception, in this case, settlement with a variable number of the Company’s equity shares. As such, conversion options are carried as a liability at fair value at each balance sheet date with a re-measurement reported as a change in fair value of share-settled debt in other (income) expense in the accompanying condensed statements of operations.
During March 2025, the Company issued and delivered a $65,000 convertible note. The convertible note has a $15,000 face discount, bears interest at 8% per annum, is due October 30, 2025, and is convertible into shares of Company common stock at any time at a 25% discount to the then-trading price; provided, however, that the holder of the convertible note may not convert into a number of shares of common stock that would cause the holder to exceed 9.99% ownership of Company common stock. In addition, the convertible note carries rights of qualification and rights of registration. Should the Consulting Note be converted into shares of common stock of the Company that are the subject of an Offering Statement on Form 1-A (the “Reg A”) or a Registration Statement on Form S-1 (the “S-1”), the conversion price would be equal to the offering price of the shares offered under the Reg A or the S-1, as the case may be. The balance of the convertible note was $65,000, the fair value of the conversion option was $8,564 and the unamortized debt discount was $11,822 at December 31, 2025. Amortization of face value debt discount is being done over the life of the convertible note and was $5,178 for the year ended December 31, 2025.
Consulting Agreement
Pursuant to a consulting agreement, the Company issued and delivered a $200,000 convertible note to Donald Steinberg. The convertible note bears interest at 8% per annum, is due October 30, 2025, and is convertible into shares of Company common stock at any time at a 25% discount to the then-trading price; provided, however, that the holder of the convertible note may not convert into a number of shares of common stock that would cause the holder to exceed 9.99% ownership of Company common stock. In addition, the convertible note carries rights of qualification and rights of registration. Should the Consulting Note be converted into shares of common stock of the Company that are the subject of an Offering Statement on Form 1-A (the “Reg A”) or a Registration Statement on Form S-1 (the “S-1”), the conversion price would be equal to the offering price of the shares offered under the Reg A or the S-1, as the case may be. The balance of the consulting agreement convertible note was $200,000 and $200,000 at December 31, 2025 and December 31, 2024, respectively. The fair value of the conversion option was $27,007 and $62,746 at December 31, 2025 and December 31, 2024, respectively.
Legal Services
Pursuant to a legal services agreement, the Company issued and delivered a $25,000 convertible note to NLF Support Services, LLC. The convertible note bears interest at 8% per annum, is due November 18, 2025 and automatically converts into shares of the Company’s common stock on the date on which the Company’s offering circular with respect to the offering of Common Stock pursuant to Regulation A is first “qualified” by the SEC and any other relevant state or other jurisdictional qualification. On the qualification date, the outstanding balance, including accrued interest at the rate equal to the price of the Regulation A offering. The balance of the legal services Note was $0 and $25,000 at December 31, 2025 and December 31, 2024, respectively.
| F-20 |
Pursuant to a legal services agreement, the Company issued and delivered a $100,000 convertible note to Newlan Law Firm, PLLC. The convertible note bears interest at 8% per annum, is due December 17, 2026, and is convertible at price equal to the lower of $.01 and a 25% discount to the market. The balance of the legal services note was $100,000 at December 31, 2025.
Consulting Services
Pursuant to a consulting services agreement, the Company issued three separate convertible notes with a principal amount of $125,000 to Red Phoenix Rising, LLC. The convertible notes bear interest at 8% per annum, are due December 17, 2026, and are convertible at price equal to the lower of $.01 and a 25% discount to the market.
Acquisition
On December 31, 2024, the Company and Ludwig Enterprises, Inc. (the “LUDG”) entered into a Stock Purchase Agreement, pursuant to which the Company issued a $100,000 principal amount promissory note (the “Purchaser Note”). The Purchaser Note bears interest at eight percent (8%) per annum, with principal and accrued interest due December 31, 2025 and is secured by all of the asset of Exousia AI. During the year ended December 31, 2024, a third party company lent the Company a total of $24,551 in advances to pay corporate expenses. The balance of the Purchaser Note was $100,000 and $100,000 at December 31, 2025 and December 31, 2024, respectively.
Advances Payable
During the year ended December 31, 2024, a third party company lent the Company a total of $24,551 in advances to pay corporate expenses. The amounts are due on demand, unsecured and accrue interest at 8% per annum. The balance of the advances was $24,551 and $24,551 at December 31, 2025 and December 31, 2024, respectively.
During the year ended December 31, 2025, a third-party company lent the Company a total of $9,903 in advances to pay corporate expenses and repaid $8,756. The amounts are due on demand, unsecured and accrue interest at 8% per annum. The balance of the advances was $1,147 and $9,299 at December 31, 2025 and December 31, 2024, respectively.
NOTE 5 - STOCKHOLDERS’ EQUITY
Common Stock
During the year ended December 31, 2025, the Company sold 5,512,500 shares of common stock for $165,000 in cash, or an average of $0.03 per share.
Preferred Stock
The Company is authorized to issue 10,000,000 shares of Preferred Stock, par value $0.001 per share, of which 100 shares have been designated Series A Preferred Stock and of which 10,000 shares have been designated Series B
Series A Preferred Stock
The holders of the Series A Preferred Stock shall be entitled to cast that number of votes equal to the total number of votes cast, plus one share to equal a majority of shares eligible to vote on any matter, or an always super majority voting right, in all matters requiring shareholder approval.
In April 2022, the Company issued Donald Steinberg, as the newly appointed CEO of the Company, 100 shares of Series A Preferred Stock as compensation. In June 2022, Mr. Steinberg transferred the 100 Shares of Series A Preferred Stock to Earth Onyx LLC, an entity controlled by him. On October 30, 2024, Mr. Steinberg sold the 100 shares of Series A Preferred Stock to Michael Sheikh.
| F-21 |
Series B Convertible Preferred Stock
Each share of Series B Convertible Preferred Stock shall be entitled to one (1) vote in all matters requiring shareholder approval. Dividends: The Series B Convertible Preferred Stock shall be treated pari passu with the Company's common stock, except that the dividend on each share of Series B Convertible Preferred Stock shall be equal to the amount of the dividend declared and paid on each share of the Common Stock multiplied by the Conversion Rate. Liquidation: Upon any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, payments to the holders of Series B Convertible Preferred Stock shall be treated pari passu with the Common Stock, except that the payment on each share of Series B Convertible Preferred Stock shall be equal to the amount of the payment on each share of the Common Stock multiplied by the Conversion Rate. Conversion: Each share of the Series B Convertible Preferred Stock shall be convertible into Four Thousand Seven Hundred (4,700) shares of the Common Stock; a holder of shares of Series B Convertible Preferred Stock shall be required to convert all of such holder's shares of Series B Convertible Preferred Stock, should any such holder exercise his, her or its rights of conversion; the Series B Convertible Preferred Stock may be converted into shares of the Common Stock any time after the date that is six months immediately following the effective date of the Common Stock's uplisting to any tier of the NASDAQ Stock Market (including NASDAQ Capital Market), the NYSE American or any successor to such markets.
In December 2024, the Company issued 10,000 shares of Series B Convertible Preferred Stock to Ludwig Enterprises, Inc., pursuant to a Stock Purchase Agreement.
NOTE 6 - LEASE
On January 15, 2025, the Company executed a one-year lease agreement with Wellspring USA for lab space located in Orlando, Florida. The lease provides for renewals annually at the option of the Company. The leased premises is comprised of 1,000 square feet and the monthly rental payment is $2,161.
NOTE 7 - GOING CONCERN
The Company’s consolidated financial statements are prepared using Generally Accepted Accounting Principles applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has recently accumulated losses since its inception and has had negative cash flows from operations, which raise substantial doubt about its ability to continue as a going concern. Management's plans with respect to alleviating the adverse financial conditions that caused management to express substantial doubt about the Company's ability to continue as a going concern are as follows:
The ability to continue the Company’s operations depends on its ability to generate and grow revenue and results of operations as well as our ability to access capital markets when necessary to accomplish strategic objectives. The Company expects to continue to incur losses for the immediate future and will need additional equity or debt financing until the Company can achieve profitability and positive cash flows from operating activities. The Company’s future capital requirements for operations will depend on many factors, including the ability to generate revenues and obtain capital.
There can be no assurance that The Company will be able to achieve its business plans, raise any more required capital or secure the financing necessary to achieve its current operating plan. The ability of The Company to continue as a going concern is dependent upon its ability to successfully accomplish the plan described in the preceding paragraph and eventually attain profitable operations. The accompanying unaudited consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
| F-22 |
NOTE 8 - LITIGATION
In June 2025, the Company filed a lawsuit against its former Sole Officer and Director, Donald Steinberg, styled Exousia Pro, Inc., a Florida corporation, formerly known as Marijuana, Inc. and as GRN Holding Corporation vs. Donald Steinberg and Securities Transfer Corporation, a nominal defendant, in the Circuit Court of the Court of the Twentieth Judicial District in and for Lee County, Florida. In the lawsuit, the Company seeks the cancellation of all shares issued by our company pursuant to a stock exchange agreement (the “Exchange Agreement”) with Marijuana, Inc., a now-dissolved Florida corporation, the control person of which was Donald Steinberg, the Company’s former sole officer and director who was in such positions at the time of the Exchange Agreement. Pursuant to the Stock Exchange Agreement, a company owned by Mr. Steinberg was issued 3,063,000 shares. However, shortly after the consummation of the Exchange Agreement, Mr. Steinberg caused the dissolution of the acquired company. The series of transactions surrounding the Exchange Agreement, which we believe to have been fraudulent, is the basis of a lawsuit filed by us against Mr. Steinberg, wherein we seek the rescission of the Exchange Agreement and the cancellation of all of the 15,500,000 shares of common stock issued pursuant thereto. Although no prediction can be made regarding the outcome of this lawsuit, the Company is confident that it will receive a favorable outcome.
In July 2025, Mr. Steinberg filed a lawsuit against the Company styled Donald Steinberg, Plaintiff v. Michael Sheikh, an individual, and Exousia Pro, Inc., a Florida corporation, in the Circuit Court of the Court of the Twentieth Judicial District in and for Lee County, Florida. In this lawsuit, Mr. Steinberg claims a breach of promissory note. The Company has answered and filed a counterclaim and is seeking a Temporary Restraining Order, requesting that the transfer agent place a hold on any shares (15,500,000) issued as part of the fraudulent transaction conducted by Mr. Steinberg. Although no prediction can be made regarding the outcome of this lawsuit, the Company is confident that it will receive a favorable outcome.
NOTE 9 - PLAN AND AGREEMENT OF REORGANIZATION
On November 11, 2025, pursuant to a Plan and Agreement of Reorganization (the “Reorganization Agreement”), L A M Y, a Wyoming corporation (“LMMY”), acquired the Company’s 70%-owned subsidiary, Exousia Ai, Inc., a Florida corporation (“Exousia Ai”), in exchange for shares of LMMY common stock. Following the closing of the Reorganization Agreement, the Company holds 41,223,000 shares, or approximately 51% (as measured after the transaction), of LMMY common stock. The Company’s Chief Executive Officer, Matthew Dwyer, serves as LMMY’s sole officer and director.
The transaction with LMMY was pursued and consummated by the Company, after the Company’s Board of Directors had determined, after investigating the LMMY opportunity, that the best interests of the Company and its shareholders would be best served by acquiring a controlling interest in LMMY, in exchange for its ownership in Exousia Ai.
NOTE 10 - SUBSEQUENT EVENTS
Conversions of Notes
Since December 31, 2025, the Company issued a total of 6,000,000 shares of its common stock in payment of $60,000 of principal of a convertible promissory note.
Regulation A Offering Subscriptions
Since December 31, 2025, the Company has sold 6,000,000 shares of its common stock for $.01 per share in cash, a total of $60,000, in its Regulation A offering.
| F-23 |
Preferred Stock Transactions
Series A Preferred Stock
In April 2026, the Series A Preferred Stock was terminated and the shares returned to authorized, undesignated and unissued preferred stock, in accordance with a March 2026, a settlement agreement arising out of the Company’s litigation. See the “Litigation” section below.
Series B Convertible Preferred Stock
In February 2026, the Company entered into a Securities Exchange Agreement with Ludwig Enterprises, Inc. (“LUDG”), pursuant to which the Company transferred 2,00,000 of the shares of LMMY common stock owned by it to LUDG, in consideration of LUDG’s cancelling all 10,000 shares of Series B Convertible Preferred Stock held by it.
Series C Convertible Preferred Stock
In April 2026, the Company designated a single share as Series C Convertible Preferred Stock, as follows:
Section 1. Designation, Amount and Par Value. The series of Preferred Stock shall be designated as Series C Convertible Preferred Stock (the “Series C Convertible Preferred Stock”) and the number of shares so designated shall be One (1). The Series C Convertible Preferred Stock shall have a par value of $0.001.
Section 2. Fractional Shares. The Series C Convertible Preferred Stock may be issued in fractional shares.
Section 3. Voting Rights. The share shall be entitled to Fifty-one Percent (51%) of all votes in all matters requiring shareholder approval.
Section 4. Dividends. The Series C Convertible Preferred Stock shall be treated pari passu with the Company’s common stock (the “Common Stock”), except that the dividend on the share of Series C Convertible Preferred Stock shall be equal to the amount of the dividend declared and paid on each share of the Common Stock multiplied by the Conversion Rate, as that term is defined in Section 6(a).
| F-24 |
Section 5. Liquidation. Upon any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, payments to the holders of Series C Convertible Preferred Stock shall be treated pari passu with the Common Stock, except that the payment on the share of Series C Convertible Preferred Stock shall be equal to the amount of the payment on each share of the Common Stock multiplied by the Conversion Rate, as that term is defined in Section 6(a).
Section 6. Conversion and Adjustments.
(a) Conversion Rate. The share of the Series C Convertible Preferred Stock shall be convertible into Fifty-One (51%) of the total shares of the Common Stock Outstanding at the time of Conversion (the “Conversion Rate”).
(b) No Partial Conversion. A holder of shares of Series C Convertible Preferred Stock shall be required to convert all of such holder’s shares of Series C Convertible Preferred Stock, should any such holder exercise his, her or its rights of conversion.
(c) Adjustments.
(1) Adjustment to Conversion Price for Stock Dividends, Consolidations and Subdivisions. In case the Company, at any time after the first issuance of a share of the Series C Convertible Preferred Stock, shall declare or pay on the Common Stock any dividend in shares of Common Stock, or effect a subdivision of the outstanding shares of the Common Stock into a greater number of shares of the Common Stock (by reclassification or otherwise than by payment of a dividend payable in shares of the Common Stock), or shall combine or consolidate the outstanding shares of the Common Stock into a lesser number of shares of the Common Stock (by reclassification or otherwise), then, and in each such case, the Conversion Rate (as previously adjusted) in effect immediately prior to such declaration, payment, subdivision, combination or consolidation shall, concurrently with the effectiveness of such declaration, payment, subdivision, combination or consolidation, be proportionately adjusted.
(2) Adjustments for Reclassifications and Certain Reorganizations. In case the Company, at any time after the first issuance of a share of the Series C Convertible Preferred Stock, shall reclassify or otherwise change the outstanding shares of the Common Stock, whether by capital reorganization, reclassification or otherwise, or shall consolidate with or merge with or into any other corporation where the Company is not the surviving corporation but not otherwise, then, and in each such case, each outstanding share of the Series C Convertible Preferred Stock shall, immediately after the effectiveness of such reclassification, other change, consolidation or merger, be convertible into the type and amount of stock and other securities or property which the holder of that number of shares of the Common Stock into which such share of the Series C Convertible Preferred Stock would have been convertible before the effectiveness of such reclassification, other change, consolidation or merger would be entitled to receive in respect of such shares of the Common Stock as the result of such reclassification, other change, consolidation or merger.
(d) Conversion Period. The Series C Convertible Preferred Stock must be converted into shares of the Common Stock at any time.
Section 7. Protection Provisions. The Company shall not, without first obtaining the unanimous written consent of the holders of Series C Convertible Preferred Stock, alter or change the rights, preferences, or privileges of the Series C Convertible Preferred Stock to adversely affect the holders of Series C Convertible Preferred Stock.
Section 8. Waiver. Any of the rights, powers or preferences of the holders of the Series C Convertible Preferred Stock may be waived by the affirmative consent or vote of the holder of the share of Series C Convertible Preferred Stock then outstanding.
Section 9. No Other Rights or Privileges. Except as specifically set forth herein, the holder(s) of the shares of Series C Convertible Preferred Stock shall have no other rights, privileges or preferences with respect to the Series C Convertible Preferred Stock.
In April 2026, the Company issued the single share of Series C Convertible Preferred Stock, pursuant to an agreement.
| F-25 |
Litigation
In July 2025, we filed a lawsuit against our former Sole Officer and Director, Donald Steinberg, styled Exousia Pro, Inc., a Florida corporation, formerly known as Marijuana, Inc. and as GRN Holding Corporation vs. Donald Steinberg and Securities Transfer Corporation, a nominal defendant, in the Circuit Court of the Court of the Twentieth Judicial District in and for Lee County, Florida. In the lawsuit, we seek the cancellation of all shares issued by our company pursuant to a stock exchange agreement (the “Exchange Agreement”) with Marijuana, Inc., a now-dissolved Florida corporation, the control person of which was Donald Steinberg, our former sole officer and director who was in such positions at the time of the Exchange Agreement. Pursuant to the Stock Exchange Agreement, a company owned by Mr. Steinberg was issued 3,063,000 shares. However, shortly after the consummation of the Exchange Agreement, Mr. Steinberg caused the dissolution of the acquired company. The series of transactions surrounding the Exchange Agreement, which we believe to have been fraudulent, is the basis of a lawsuit filed by us against Mr. Steinberg, wherein we seek the rescission of the Exchange Agreement and the cancellation of all of the shares of common stock issued pursuant thereto.
In September 2025, following a hearing, significant protections for our shareholders have been established. While the motion for a Temporary Restraining Order (TRO) was not heard due to a lack of available court time, a mutually agreed-upon standstill order was executed on all shares held by Mr. Steinberg, representing approximately 10.5% of the shares outstanding.
In December 2025, the Court denied motions to dismiss filed by Mr. Steinberg and Kimberly Carlson.
In March 2026, a settlement agreement was reached in this lawsuit. Under the terms of the settlement agreement, which is scheduled to close on or about April 15, 2026, we are required to make a one-time payment of $147,500 to Mr. Steinberg and related parties and, in consideration, thereof, (A) Mr. Steinberg shall cancel (1) a $200,000 promissory note issued by us in October 2024 pursuant to a consulting agreement and (2) a $100,000 promissory note issued by Earth Onyx, LLC, a company owned by our sole director, Michael Sheikh, in connection with the October 2024 change-in-control transaction between Earth Onyx, LLC and Mr. Steinberg and (B) Mr. Steinberg and related parties shall tender a total of 6,297,511 shares of our common stock for cancellation.
Other
Management has evaluated subsequent events through April 21, 2026.
| F-26 |
ISLAND 40 GROUP LLC
Balance Sheet
As of March 31, 2026
(Unaudited)
| 2026 | ||||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 135,722 | ||
| Total current assets | 135,722 | |||
| Total assets | $ | 135,722 | ||
| LIABILITIES AND MEMBERS’ EQUITY | ||||
| Total liabilities | $ | — | ||
| Commitments and contingencies (Note 7) | ||||
| Members’ equity: | ||||
| Members’ capital | $ | 135,722 | ||
| Total members’ equity | 135,722 | |||
| Total liabilities and members’ equity | $ | 135,722 | ||
The accompanying notes are an integral part of these financial statements.
| F-27 |
ISLAND 40 GROUP LLC
Statement of Operations
For the Three Months Ended March 31, 2026 and 2025
(Unaudited)
| 2026 | 2025 | |||||||
| Revenue | ||||||||
| Sales | $ | 343,507 | $ | 264,500 | ||||
| Total revenue | 343,507 | 264,500 | ||||||
| Operating expenses: | ||||||||
| Advertising and promotional | 350 | 270 | ||||||
| Automobile | 7,190 | 5,536 | ||||||
| Bank charges | 1,441 | 1,110 | ||||||
| Legal and professional | 3,030 | 2,333 | ||||||
| Office expense | 12,981 | 9,995 | ||||||
| Outside services | 131,048 | 100,907 | ||||||
| Supplies | 9,198 | 7,082 | ||||||
| Travel and meals | 6,456 | 4,971 | ||||||
| Total operating expenses | 171,694 | 132,204 | ||||||
| Income from operations | 171,813 | 132,296 | ||||||
| Other income (expense), net | — | — | ||||||
| Net income | $ | 171,813 | $ | 132,296 | ||||
The accompanying notes are an integral part of these financial statements.
| F-28 |
ISLAND 40 GROUP LLC
Statement of Changes in Members’ Equity
For the Three Months Ended March 31, 2026 and 2025
(Unaudited)
| 2026 | 2025 | |||||||
| Members’ equity, beginning of period | $ | 121,431 | $ | 93,502 | ||||
| Net income | 171,813 | 132,296 | ||||||
| Members’ distributions | (157,522 | ) | (121,292 | ) | ||||
| Members’ equity, end of period | $ | 135,722 | $ | 104,506 | ||||
The accompanying notes are an integral part of these financial statements.
| F-29 |
ISLAND 40 GROUP LLC
Statement of Cash Flows
For the Three Months Ended March 31, 2026 and 2025
(Unaudited)
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 171,813 | $ | 132,296 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Changes in operating assets and liabilities | — | — | ||||||
| Net cash provided by operating activities | 171,813 | 132,296 | ||||||
| Cash flows from financing activities: | ||||||||
| Members’ distributions | (157,522 | ) | (121,292 | ) | ||||
| Net cash used in financing activities | (157,522 | ) | (121,292 | ) | ||||
| Net increase in cash and cash equivalents | 14,291 | 11,004 | ||||||
| Cash and cash equivalents, beginning of period | 121,431 | 93,502 | ||||||
| Cash and cash equivalents, end of period | $ | 135,722 | $ | 104,506 | ||||
The accompanying notes are an integral part of these financial statements.
| F-30 |
ISLAND 40 GROUP LLC
Notes to Financial Statements (Unaudited)
As of March 31, 2026 and for the Three Months Ended March 31, 2026 and 2025
Note 1 — Organization and Nature of Operations
Island 40 Group LLC (the “Company”) is a limited liability company organized under the laws of the State of Tennessee and is engaged in the medical industry.
The Company’s operations are governed by its operating agreement.
Note 2 — Basis of Presentation
The accompanying financial statements have been prepared using the presentation format of accounting principles generally accepted in the United States of America. However, the Company’s underlying accounting records are maintained on the cash basis of accounting, under which revenue is recognized when cash is received and expenses are recognized when cash is disbursed. The cash basis differs from U.S. GAAP, which requires the accrual basis of accounting.
The principal differences between the cash basis used to prepare these statements and accrual-basis U.S. GAAP include, among others, the non-recognition of accounts receivable and revenue earned but not yet collected; accounts payable and expenses incurred but not yet paid; accrued liabilities; prepaid expenses; and deferred items. The effect of these differences on the Company’s financial position, results of operations, and cash flows has not been determined and may be material. These financial statements should not be relied upon as being prepared in accordance with U.S. GAAP until the conversion described above has been completed and the resulting statements have been audited by an independent registered public accounting firm.
Comparative information. The statements of operations, changes in members’ equity, and cash flows are presented for the three months ended March 31, 2026 and 2025. Only one balance sheet, as of March 31, 2026, is presented; a balance sheet as of March 31, 2025 has not been prepared and is not included. The comparative amounts for the three months ended March 31, 2025 have been prepared on the same cash basis of presentation as the 2026 amounts and, like the 2026 amounts, are unaudited. Because no balance sheet is presented as of March 31, 2025, the members’ equity and cash balances shown for the 2025 period in the statement of changes in members’ equity and the statement of cash flows are not supported by a corresponding statement of financial position in these financial statements.
Note 3 — Summary of Significant Accounting Policies
Use of estimates. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts. Under the cash basis presently used, the use of estimates is limited; upon conversion to accrual-basis U.S. GAAP, estimates will be required and actual results could differ.
Cash and cash equivalents. Cash and cash equivalents consist of demand deposits held at a financial institution. At March 31, 2026, all cash was held in a single operating checking account. Cash and cash equivalents at March 31, 2025 were $104,506 and at January 1, 2025 were $93,502.
Revenue recognition. The Company’s revenue consisted of sales of $343,507 for the three months ended March 31, 2026 and $264,500 for the three months ended March 31, 2025. Under the cash basis presently used, revenue is recognized when cash is received. Upon conversion to U.S. GAAP, revenue will be recognized in accordance with ASC Topic 606.
Operating expenses. Operating expenses totaled $171,694 for the three months ended March 31, 2026 and $132,204 for the three months ended March 31, 2025, and are presented by nature. The largest category in each period was outside services, of $131,048 and $100,907, respectively. Under the cash basis presently used, expenses are recognized when paid; upon conversion to U.S. GAAP, expenses will be recognized when incurred, and the Company will evaluate whether any costs should be classified as cost of revenue.
Comparability. Amounts presented for the three months ended March 31, 2025 have been classified on a basis consistent with the 2026 presentation. No reclassifications were required.
Income taxes. See Note 5.
Concentrations of credit risk. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, which is held at a single financial institution where balances may at times exceed federally insured limits.
| F-31 |
Note 4 — Cash and Cash Equivalents
At March 31, 2026, cash and cash equivalents consisted of $135,722 held in a commercial checking account maintained with JPMorgan Chase Bank, N.A. Cash and cash equivalents were $104,506 at March 31, 2025 and were held in the same account. The Company’s cash balances may from time to time exceed the $250,000 insurance limit provided by the Federal Deposit Insurance Corporation. The Company has not experienced any losses in such account.
Note 5 — Income Taxes
The Company is a limited liability company. For U.S. federal income tax purposes, a multi-member limited liability company is treated as a partnership and, in general, items of income, gain, loss, deduction, and credit are passed through to and reported by its members. Accordingly, no provision for U.S. federal income taxes has been recorded for either period presented.
Note 6 — Members’ Equity
The Company’s equity is presented as members’ equity. During the three months ended March 31, 2026, the Company recorded net income of $171,813 and made distributions to its members of $157,522. During the three months ended March 31, 2025, the Company recorded net income of $132,296 and made distributions to its members of $121,292. Members’ equity was $135,722 at March 31, 2026 and $104,506 at March 31, 2025.
Note 7 — Subsequent Events
The Company has evaluated subsequent events through August 27, 2026, the date these financial statements were available to be issued, in accordance with ASC Topic 855, Subsequent Events.
| F-32 |
ISLAND 40 GROUP LLC
Balance Sheets
December 31, 2025 and 2024
(Unaudited)
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 121,431 | $ | 67,838 | ||||
| Total current assets | 121,431 | 67,838 | ||||||
| Total assets | $ | 121,431 | $ | 67,838 | ||||
| LIABILITIES AND MEMBERS’ EQUITY | ||||||||
| Total liabilities | $ | — | $ | — | ||||
| Commitments and contingencies (Note 7) | ||||||||
| Members’ equity | $ | 121,431 | $ | 67,838 | ||||
| Total liabilities and members’ equity | $ | 121,431 | $ | 67,838 | ||||
The accompanying notes are an integral part of these financial statements.
| F-33 |
ISLAND 40 GROUP LLC
Statement of Operations
For the Year Ended December 31, 2025
(Unaudited)
| Revenue | ||||
| Sales | $ | 771,915 | ||
| Services, net | (260 | ) | ||
| Total revenue | 771,655 | |||
| Operating expenses: | ||||
| Advertising and promotional | 16,281 | |||
| Automobile | 27,242 | |||
| Bank charges | 2,831 | |||
| Legal and professional | 15,000 | |||
| Licenses | 5,112 | |||
| Office expense | 128,463 | |||
| Outside services | 296,388 | |||
| Repair and maintenance | 424 | |||
| Supplies | 133,403 | |||
| Travel and meals | 8,421 | |||
| Total operating expenses | 633,565 | |||
| Income from operations | 138,090 | |||
| Other income (expense), net | — | |||
| Net income | $ | 138,090 | ||
The accompanying notes are an integral part of these financial statements.
| F-34 |
ISLAND 40 GROUP LLC
Statement of Changes in Members’ Equity
For the Year Ended December 31, 2025
(Unaudited)
| Members’ equity, January 1, 2025 | $ | 67,838 | ||
| Net income | 138,090 | |||
| Members’ distributions | (84,497 | ) | ||
| Members’ equity, December 31, 2025 | $ | 121,431 |
The accompanying notes are an integral part of these financial statements.
| F-35 |
ISLAND 40 GROUP LLC
Statement of Cash Flows
For the Year Ended December 31, 2025
(Unaudited)
| Cash flows from operating activities: | ||||
| Net income | $ | 138,090 | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Changes in operating assets and liabilities | — | |||
| Net cash provided by operating activities | 138,090 | |||
| Cash flows from financing activities: | ||||
| Return of members’ capital | (8,011 | ) | ||
| Distributions of accumulated earnings | (76,487 | ) | ||
| Net cash used in financing activities | (84,497 | ) | ||
| Net increase in cash and cash equivalents | 53,593 | |||
| Cash and cash equivalents, beginning of year | 67,838 | |||
| Cash and cash equivalents, end of year | $ | 121,431 | ||
The accompanying notes are an integral part of these financial statements.
| F-36 |
ISLAND 40 GROUP LLC
Notes to Financial Statements (Unaudited)
Year Ended December 31, 2025
Note 1 — Organization and Nature of Operations
Island 40 Group LLC (the “Company”) is a limited liability company organized under the laws of the State of Tennessee and is engaged in the medical industry.
The Company’s operations are governed by its operating agreement.
Note 2 — Basis of Presentation
The accompanying financial statements have been prepared using the presentation format of accounting principles generally accepted in the United States of America. However, the Company’s underlying accounting records are maintained on the cash basis of accounting, under which revenue is recognized when cash is received and expenses are recognized when cash is disbursed. The cash basis differs from U.S. GAAP, which requires the accrual basis of accounting.
The principal differences between the cash basis used to prepare these statements and accrual-basis U.S. GAAP include, among others, the non-recognition of accounts receivable and revenue earned but not yet collected; accounts payable and expenses incurred but not yet paid; accrued liabilities; prepaid expenses; and deferred items. The effect of these differences on the Company’s financial position, results of operations, and cash flows has not been determined and may be material. These financial statements should not be relied upon as being prepared in accordance with U.S. GAAP until the conversion described above has been completed and the resulting statements have been audited by an independent registered public accounting firm.
Note 3 — Summary of Significant Accounting Policies
Use of estimates. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts. Under the cash basis presently used, the use of estimates is limited; upon conversion to accrual-basis U.S. GAAP, estimates will be required and actual results could differ.
Cash and cash equivalents. Cash and cash equivalents consist of demand deposits held at a financial institution. At December 31, 2025 and 2024, all cash was held in a single operating checking account.
Revenue recognition. The Company’s revenue for the year ended December 31, 2025 consisted of sales of $771,915 and net service revenue of $(260), which reflects service refunds or adjustments in excess of service revenue for the period. Under the cash basis presently used, revenue is recognized when cash is received. Upon conversion to U.S. GAAP, revenue will be recognized in accordance with ASC Topic 606,
Operating expenses. Operating expenses totaled $633,565 for the year ended December 31, 2025 and are presented by nature. The largest categories were outside services of $296,388, supplies of $133,403, and office expense of $128,463. Under the cash basis presently used, expenses are recognized when paid; upon conversion to U.S. GAAP, expenses will be recognized when incurred, and the Company will evaluate whether any costs should be classified as cost of revenue.
Income taxes. See Note 5.
Concentrations of credit risk. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, which is held at a single financial institution where balances may at times exceed federally insured limits.
Note 4 — Cash and Cash Equivalents
At December 31, 2025 and 2024, cash and cash equivalents consisted of $121,431 and $67,838, respectively, held in a commercial checking account maintained with JPMorgan Chase Bank, N.A. The Company’s cash balances may from time to time exceed the $250,000 insurance limit provided by the Federal Deposit Insurance Corporation. The Company has not experienced any losses in such account.
| F-37 |
Note 5 — Income Taxes
The Company is a limited liability company. For U.S. federal income tax purposes, a multi-member limited liability company is treated as a partnership and, in general, items of income, gain, loss, deduction, and credit are passed through to and reported by its members. Accordingly, no provision for U.S. federal income taxes has been recorded.
Note 6 — Members’ Equity
The Company’s equity is presented as members’ equity. During the year ended December 31, 2025, the Company recorded net income of $138,090 and members’ distributions of $84,497, comprising a return of members’ capital of $8,011 and a distribution of accumulated earnings of $76,487, resulting in total members’ equity of $121,431 at December 31, 2025 (December 31, 2024: $67,838).
Note 7 — Subsequent Events
The Company has evaluated subsequent events through August 27, 2026, the date these financial statements were available to be issued, in accordance with ASC Topic 855, Subsequent Events.
| F-38 |
PART III – EXHIBITS
Index to Exhibits
III-1
SIGNATURES
Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A and has duly caused this offering statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of St. Petersburg, State of Florida, on August 28, 2026.
| NEXTEL MEDICAL CORP. | |||
| By: | /s/ Matthew Dwyer | ||
| Matthew Dwyer | |||
| Chief Executive Officer | |||
This Offering Statement has been signed by the following persons in the capacities and on the dates indicated.
| By: | /s/ Michael Sheikh | August 28, 2026 | ||
| Michael Sheikh | ||||
| Director |
| By: | /s/ Matthew Dwyer | August 28, 2026 | ||
| Matthew Dwyer | ||||
| President, Chief Executive Officer, Acting Chief Financial Officer [Principal Accounting Officer], Secretary and Director | ||||
III-2
Exhibit 2.8











Exhibit 6.36
PLAN AND AGREEMENT OF MERGER
Plan and Agreement of Merger, dated as of May 29, 2026 (the “Agreement”), among Nextel Medical Corp., f/k/a Exousia Pro, Inc. and Marijuana, Inc., a Florida corporation (“Parent”), JStart Merger Sub, LLC, a Tennessee limited liability company wholly owned by Parent (“Merger Sub”), and Jumpstart Rx, LLC, a Tennessee limited liability company (“Target”). Merger Sub and Target being hereinafter collectively referred to as the “Constituent Companies”.
WHEREAS, this Agreement, when consummated, would result in Parent’s having acquired a business and assets valued, by agreement, at $2,000,000;
WHEREAS, the Parent and Merger Sub and the members of Target (the “Members”) have approved the acquisition of Target by Parent;
WHEREAS, in furtherance of such acquisition, the Board of Directors of Parent and Merger Sub and the Members have each approved the merger of Target into Merger Sub (the “Merger”), pursuant to an Agreement of Merger in the form attached hereto as Exhibit A (the “Merger Agreement”), and the transactions contemplated hereby, in accordance with the applicable provisions of the statutes of the State of Tennessee and upon the terms and subject to the conditions set forth herein; and
WHEREAS, for Federal income tax purposes, it is intended that the Merger shall qualify as a reorganization within the meaning of Section 368(a)(1)(A) and 368(a)(2)(D) of the Internal Revenue Code of 1986, as amended (the “Code”); and
WHEREAS, each of the parties to this Agreement desires to make certain representations, warranties and agreements in connection with the Merger and also to prescribe various conditions thereto.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound thereby, Parent, Merger Sub and Target hereby agree as follows:
1.The Merger.
1.01The Merger. At the Effective Time (as defined in Section 1.02) and subject to and upon the terms and conditions of this Agreement and the Merger Agreement, Merger Sub shall be merged with and into Target, the separate corporate existence of Merger Sub shall cease, and Target shall continue as the surviving company, in accordance with the applicable provisions of the Tennessee Business Corporation Act (the “Tennessee Law”).
| 1 |
Target, as the surviving company after the Merger, is hereinafter sometimes referred to as the “Surviving Company”.
1.02Effective Time. As promptly as practicable after the satisfaction or waiver of the conditions set forth in Section 6, and provided that this Agreement has not been terminated or abandoned pursuant to Section 8, the Constituent Companies shall cause the Merger to be consummated by filing a Certificate of Merger (the “Certificate of Merger”) with the office of the Secretary of State of Tennessee, in such form as required by, and executed in accordance with, the relevant provisions of the Tennessee Law.
Subject to, and in accordance with, the Tennessee Law, the Merger will become effective at the date and time the Certificate of Merger is filed with the office of the Secretary of State of the State of Tennessee or such later time or date as may be specified in the Certificate of Merger (the “Effective Time”). Each of the parties shall use its best efforts to cause the Merger to be consummated as soon as practicable following the fulfillment or waiver of the conditions specified in Section 6 hereof.
1.03Effect of the Merger. At the Effective Time, the effect of the Merger shall be as provided in the applicable provisions of the Tennessee Law. Without limiting the generality of the foregoing, and subject thereto, at the Effective Time, except as otherwise provided herein, all the property, rights, privileges, powers and franchises of Target shall vest in the Surviving Company, and all debts, liabilities and duties of Target shall become the debts, liabilities and duties of the Surviving Company.
1.04Certificate of Formation; Operating Agreement.
(a)At the Effective Time, the Certificate of Formation of Target, as in effect immediately prior to the Effective Time, shall be the Certificate of Formation of the Surviving Company until thereafter amended as provided by law and such Certificate of Formation.
(b)The Operating Agreement of Target, as in effect immediately prior to the Effective Time, shall be the Operating Agreement of the Surviving Company until thereafter amended as provided by law, the Certificate of Formation of the Surviving Company and such Operating Agreement.
1.05Managers. The managers of Target immediately upon the Effective Time shall hold office in accordance with the Articles of Organization and Operating Agreement of the Surviving Company, in each case until their respective successors are duly elected or appointed and qualified.
1.06Conversion of Securities. At the Effective Time, by virtue of the Merger and without any additional action on the part of Merger Sub and Target, the following shall occur:
| 2 |
(a)Each membership interest of Target (the “Target Interests”) held in the treasury of Target and each such share of Target Interests owned by Merger Sub, Parent or any direct or indirect wholly-owned subsidiary of Parent or of Merger Sub immediately prior to the Effective Time shall be cancelled and extinguished without any conversion thereof and no payment shall be made with respect thereto.
(b)Each Target Interest which is outstanding immediately prior to the Effective Time, other than those shares of Target Interests cancelled as set forth in subsection (a) above, shall be converted into (1) the right to receive shares of the $.001 par value per share Series D Voting Convertible Preferred Stock of Parent (the “Parent Voting Stock”), in accordance with the ownership schedule included in the Target Disclosure Schedule, for a total of 1,500,000 shares of Parent Voting Stock (these shares of Parent Voting Stock are referred to as the “Closing Shares”) and (b) the sum of cash, in accordance with the ownership schedule included in the Target Disclosure Schedule, for a total of $500,000 in cash (the “Closing Amount”). The Closing Shares and the Closing Amount and the are referred to, collectively, as the “Merger Consideration”.
The Parent Voting Stock is to have the preferences, rights, qualifications, limitations and restrictions set forth the Certificate of Designation of the Parent Voting Stock attached hereto as Exhibit B and made a part hereof by this reference.
(c)The membership interests of Merger Sub issued and outstanding immediately prior to the Effective Time shall be converted into membership interests of the Surviving Company, which shall be the only membership interests of the Surviving Company outstanding after the Effective Time, resulting in the Surviving Company being wholly owned by Parent after the Effective Time.
1.07Surrender of and Exchange of Target Interests.
(a)As soon as practicable after the Effective Time, the certificates representing Target Interests issued and outstanding at the Effective Time (or affidavits of lost certificates in a form reasonably acceptable to Parent) shall be surrendered for exchange to the Surviving Company. Until so surrendered for exchange, each such stock certificate nominally representing Target Interests shall be deemed for all purposes (except for payment of dividends thereon or redemption thereof) to evidence the ownership of the number of shares of Parent Voting Stock which the holder would be entitled to receive upon its surrender to the Surviving Company.
(b) No redemption with respect to Parent Voting Stock shall be made with respect to any unsurrendered certificates representing Target Interests with respect to which the shares of Parent Voting Stock shall have been issued in the Merger, until such certificates shall be surrendered as provided herein.
| 3 |
(c)All rights to receive the Merger Consideration into which shares of Target Interests shall have been converted pursuant to this Section 1 shall be deemed to have been paid or issued, as the case may be, in full satisfaction of all rights pertaining to such shares of Target Interests.
1.08Closing. The closing (the “Closing”) of the transactions contemplated by this Agreement shall take place (a) at the offices of Target at 10:00 a.m., local time, on the third business day immediately following the date on which the last of the conditions set forth in Section 6 is fulfilled or waived, or (b) at such other time and place and on such other date as Parent and Target shall agree (the “Closing Date”).
2.Further Agreements.
2.01Access to Information; Confidentiality.
(a)From the date hereof to the Effective Time, each of Parent, Merger Sub and Target shall, and shall cause their respective subsidiaries, affiliates, officers, directors, employees, auditors and agents to afford the officers, employees and agents of one another complete access at all reasonable times to one another’s officers, employees, agents, properties, offices, plants and other facilities and to all books and records, and shall furnish one another with all financial, operating and other data and information as each, through its officers, employees or agents, may reasonably request; provided, however, that no party shall be required to provide access or furnish information which it is prohibited by law or contract to provide or furnish.
(b)Each of Parent, Merger Sub and Target shall, and shall cause their respective affiliates and their respective officers, directors, employees and agents to hold in strict confidence all data and information obtained by them from one another or their respective subsidiaries, affiliates, directors, officers, employees and agents (unless such information is or becomes readily ascertainable from public or published information or trade sources or public disclosure or such information is required by law) and shall insure that such officers, directors, employees and agents do not disclose such information to others without the prior written consent of Parent, Merger Sub or Target, as the case may be.
(c)In the event of the termination of this Agreement, Parent, Merger Sub and Target shall, and shall cause their respective affiliates, officers, directors, employees and agents to (1) return every document furnished to them by one another or any of their respective subsidiaries, affiliates, officers, directors, employees and agents in connection with the transactions contemplated hereby and any copies thereof, and (2) shall cause others to whom such documents may have been furnished to return such documents and any copies thereof any of them may have made.
(d)No investigation pursuant to this Section 2 shall affect any representations or warranties of the parties herein or the conditions to the obligations of the parties hereto.
| 4 |
2.02Notification of Certain Matters. Target shall give prompt notice to Parent, and Parent shall give prompt notice to Target, of (a) the occurrence or non-occurrence of any event, the occurrence or non-occurrence of which would be likely to cause any representation or warranty contained in this Agreement to be untrue or inaccurate, and (b) any failure of Target, Parent or Merger Sub, as the case may be, to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by it hereunder; provided, however, that the delivery of any notice pursuant to this Section 2 shall not limit or otherwise affect the remedies available hereunder to the party receiving such notice.
2.03.Bonus Closing Amount; Series D Claw-Back. Parent and Target agree that, should Target’s gross revenues for the 18-month period immediately following the Closing (the “Post-Closing Period”) exceed by 10% or more the gross revenue projections for the Post-Closing Period set forth in Exhibit C attached hereto and made a part hereof, then, within 30 days after the expiration of the Post-Closing Period, Parent shall pay to the Members the sum of $250,000 in cash (the “Bonus Closing Amount”).
Parent and Target further agree that, should Target’s gross revenues for the Post-Closing Period fail to achieve by 10% or more the gross revenue projections for the Post-Closing Period set forth in Exhibit C, then Parent shall have the right to cancel a total of 300,000 Closing Shares (the “Series D Claw-Back Shares”), the Series D Claw-Back Shares to be cancelled pro rata among the holders of the Closing Shares at the time of such cancellation.
2.04Employment Agreements. At or before the Closing, (a) Target and Casey Barksdale and (b) Target and one other key employee of Target shall have entered into an employment agreement on such terms and conditions as may be acceptable to Mr. Barksdale and such other key employee; provided, however, that the terms and conditions of such employment agreements shall be acceptable to Parent, in its good faith discretion.
2.05Managers of Surviving Company. At the Effective Time, Casey Barksdale shall be elected as the manager of Surviving Company, to serve until the earlier of their removal or resignation.
2.06Agreement With Respect to Post-Closing Operations. At the Effective Time, operating policies of Surviving Company shall include a policy adopted by the Board of Directors of Parent that all expenditures, or series of expenditures, of Surviving Company in excess of $20,000 shall be approved by the Chief Financial Officer of Parent.
2.07Financial Statements of Target. At or before the Closing, Target shall, at its sole expense (the “Audit Expense Amount”), deliver to Parent PCAOB-standard audited financial statements for the years ended December 31, 2025 and 2024 (the “Target Audited Financial Statements”), and unaudited financial statements for the interim period ending on the Closing Date, which interim financial statements shall have been prepared in accordance with generally accepted accounting principles (GAAP) and capable of PCAOB audit.
| 5 |
Notwithstanding the further agreement set forth in the foregoing paragraph, with respect to the reimbursement of the Audit Expense Amount by Parent to Target, Parent and Target agree, as follows:
(a)Should Target’s independent PCAOB auditor determine, in good faith, that the unaudited financial statements of Target are not able to be audited, then Parent agrees that, on or before the date that is 60 days immediately following the date of such determination, it shall reimburse Target an amount equal to 50% of the amount of Target’s payments to such PCAOB auditor; or
(b)Should Parent fail to consummate the Closing of this Agreement, then Parent agrees that, on or before the date that is 60 days immediately following the date of such failure, it shall reimburse Target an amount equal to 100% of the amount of Target’s payments to such PCAOB auditor; or
(c)Should Parent and Target consummate this Agreement, Parent agrees that, on or before the date that is 60 days immediately following the Closing Date, it shall reimburse Target for the full Audit Expense Amount.
2.08Certificate of Designation. At or before the Closing, Parent shall have filed a Certificate of Designation for the Parent Voting Stock, its new Series D Voting Convertible Preferred Stock (the “Designation”), in the form of Exhibit B attached hereto.
2.09Current Reports. Target shall file timely with OTC Markets supplemental reports with respect to (a) the execution of this Agreement and (b) the Closing of this Agreement.
2.10Agreement With Respect to Assets of Target. Prior to the Closing, Target shall not sell, transfer or otherwise dispose of any of the assets owned by Target as of the date of this Agreement.
2.11Agreement With Respect to Employees of Target. Parent and Target agree that Parent shall have no obligation to fund the payroll of Target at any time following the Closing.
2.12Further Action. Upon the terms and subject to the conditions hereof, each of the parties hereto shall use its best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all other things necessary, proper or advisable to consummate and make effective as promptly as practicable the transactions contemplated by this Agreement.
2.13Public Announcements. No party shall issue a press release or otherwise make any public statements with respect to the Merger, without the prior consent of the other parties; provided, however, that Parent may, without the prior consent of any party, issue a press release or otherwise make public statements with respect to the Merger, should such press release or public statements be deemed, in good faith, necessary by Parent to assure its compliance with applicable securities laws.
3.Representations and Warranties of Parent and Merger Sub. Parent and Merger Sub hereby, jointly and severally, represent and warrant to Target that, except as set forth in the Disclosure Schedule of Parent and Merger Sub delivered herewith to Target (the “Parent Disclosure Schedule”):
3.01Organization and Qualification; Subsidiaries. Each of Parent and Merger Sub is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation and has the requisite corporate power and authority and is in possession of all franchises, grants, authorizations, licenses, permits, easements, consents, certificates, approvals and orders to own, operate or lease the properties that it purports to own, operate or lease and to carry on its business as it is now being conducted, and is duly qualified as a foreign entity to do business, and is in good standing, in each jurisdiction where the character of its properties owned, operated or leased or the nature of its activities makes such qualification necessary, except for such failures which, when taken together with all other such failures, would not have a Material Adverse Effect. Neither Parent nor Merger Sub has received any notice of proceedings relating to revocation or modification of any such franchises, grants, authorizations, licenses, permits, easements, consents, certificates, approvals or orders.
| 6 |
The term “Material Adverse Effect”, as used herein, means any change in or effect on the business of Parent or Merger Sub (including intangible properties), prospects, condition (financial or otherwise), assets or subsidiaries, taken as a whole. Parent has the subsidiaries set forth in the Parent Disclosure Schedule.
3.02Formation and Governing Documents. Parent shall, as part of the Parent Disclosure Schedule, furnish to Target a complete and correct copy of the formation and governing documents, each as amended to date, of Parent and Merger Sub. Such formation and governing documents are in full force and effect.
3.03Capitalization. As of the date of this Agreement, the authorized capital stock of Parent consists of: 250,000,000 shares of common stock, of which 56,048,470 shares are issued and outstanding; and 15,000,000 shares of preferred stock, of which one (1) share of Series C Preferred Stock is issued and outstanding. All currently issued shares of capital stock of Parent are validly issued, fully paid and non-assessable. No shares of capital stock of Parent are held in the treasury of Parent or by subsidiaries of Parent. Except as set forth in the Parent Disclosure Schedule, no shares of capital stock of Parent are reserved for future issuance.
Except as set forth in the Parent Disclosure Schedule, each of the outstanding securities of each of Parent’s corporate subsidiaries is duly authorized, validly issued, fully paid and non-assessable and such securities owned by Parent are owned free and clear of all security interests, liens, claims, pledges, agreements, limitations on Parent’s voting rights, charges or other encumbrances of any nature whatsoever.
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3.04Authority Relative to this Agreement. Each of Parent and Merger Sub has all necessary corporate power and authority to enter into this Agreement and to carry out its obligations hereunder. The execution and delivery of this Agreement by Parent and Merger Sub and the consummation by Parent and Merger Sub of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of Parent and Merger Sub other than filing and recording of appropriate merger documents as required by the Tennessee Law. This Agreement has been duly executed and delivered by Parent and Merger Sub and, assuming the due authorization, execution and delivery by Target, constitutes a legal, valid and binding obligation of each such corporation.
3.05No Conflict; Required Filings and Consents.
(a)The execution and delivery of this Agreement by Parent and Merger Sub do not, and the performance of this Agreement by Parent and Merger Sub shall not, (1) conflict with or violate either the formation and governing documents of Parent or Merger Sub, (2) conflict with or violate any law, rule, regulation, order, judgment or decree applicable to Parent or Merger Sub or by which either of them or their respective properties is bound or affected, or (3) result in any breach of or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, or result in the creation of a lien or encumbrance on any of the property or assets of Parent or Merger Sub pursuant to any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument or obligation to which Parent or Merger Sub is a party or by which Parent or Merger Sub or any of their respective properties is bound or affected, except for any such breaches, defaults or other occurrences which would not, individually or in the aggregate, have a Material Adverse Effect.
(b)The execution and delivery of this Agreement by Parent and Merger Sub does not, and the performance of this Agreement by Parent and Merger Sub shall not, require any consent, approval, authorization or permit of, or filing with or notification to, any governmental or regulatory authority, domestic or foreign, except for applicable requirements of the Securities Act, the Securities Exchange Act of 1934 (the “Exchange Act”) and State securities laws (“Blue Sky Laws”).
3.06Compliance. Neither Parent nor Merger Sub is in conflict with, or in default or violation of, (a) its formation and governing documents or equivalent organizational documents, (b) any law, rule, regulation, order, judgment or decree applicable to Parent or Merger Sub or by which its or any of their respective properties is bound or affected, including, without limitation, health and safety, environmental, civil rights laws and regulations and zoning ordinances and building codes, or (c) any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise, easement, consent, order or other instrument or obligation to which Parent or Merger Sub is a party or by which Parent or Merger Sub or any of their respective properties is bound or affected, except for any such conflicts, defaults or violations which would not, individually or in the aggregate, have a Material Adverse Effect.
3.07Tax Treatment. Neither Parent nor Merger Sub, nor to the knowledge of Parent, any of their affiliates has taken or agreed to take action that would prevent the merger contemplated by this Agreement from constituting, to the extent possible, a tax-free reorganization under Sections 368(a)(1)(A) and 368(a)(2)(D) of the Code.
3.08No Liabilities. As of the Closing, Merger Sub will not have any liability of any kind, whether known or unknown, asserted or unasserted, absolute or contingent, accrued and unaccrued, liquidated or unliquidated, due or became due, by virtue of contract, statute, regulation, law, equity or otherwise.
3.09OTC Markets Trading. Parent’s common stock currently trades as a, “OTCID” stock on the OTCID trading platform (symbol: MAJI) of OTC Markets and Parent meets all issuer and equity security requirements to permit a FINRA member to quote Parent’s common stock thereon, and, to Parent’s knowledge, shall be entitled to continue to be so quoted following the merger contemplated by this Agreement.
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3.10Shareholder Claims. There are no existing claims against Parent by any current or former shareholder of Parent, and, to Parent’s knowledge, there exist no facts or circumstances reasonably likely to result in any such claims.
3.11Operations of Merger Sub. Merger Sub is a direct, wholly-owned subsidiary of Parent, was formed solely for the purpose of engaging in the transactions contemplated by this Agreement, has engaged in no other business activities and has conducted its operations only as contemplated by this Agreement.
3.12Powers of Attorney and Suretyships. Parent does not have (a) any general powers of attorney outstanding, whether as grantor or grantee thereof, (b) except as reflected in its financial statements, any obligation or liability, whether actual, accrued, accruing, contingent or otherwise, as guarantor, surety, co-signed, endorser, co-maker, indemnitor, or otherwise in respect of the obligation of any person, corporation, partnership, joint venture, association, organization or other entity.
3.13OTC Markets Filings; Financial Statements.
(a)Parent has filed all forms, reports and documents required to be filed with OTC Markets, Inc. (“OTC Markets”) and has heretofore delivered to Target, in the form filed with the OTC Markets, (1) its Amended Annual Report for the year ended December 31, 2025; (2) all other reports filed by Parent with OTC Markets since December 31, 2025; and (3) all amendments and supplements to all such reports filed by Parent with OTC Markets since December 31, 2025 (collectively, the “Parent OTC Markets Reports”).
The Parent OTC Markets Reports (1) were, and will be, prepared in accordance with the requirements of OTC Markets and (2) did not, and will not, at the time they were, or will be, filed, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.
(b)Each consolidated financial statement (including, in each case, any related notes thereto) contained in the Parent OTC Markets Reports has been, and will be, prepared in accordance with generally accepted accounting principles applied on a consistent basis throughout the periods involved (except as may be indicated in the notes thereto) and each fairly presents, and will present, the financial position of Parent and its subsidiaries as at the respective dates thereof and the results of its operations and changes in financial position for the periods indicated, except that the unaudited interim financial statements were or are subject to normal and recurring year-end adjustments which were not or are not expected to be material in amount.
(c)Except as and to the extent set forth on the consolidated balance sheet of Parent and its subsidiaries as at December 31, 2025, including the notes thereto (the “2025 Balance Sheet”), neither Parent nor any of its subsidiaries has any liabilities or obligations of any nature (whether accrued, absolute, contingent or otherwise) which would be required to be reflected on a balance sheet, or in the notes thereto, prepared in accordance with generally accepted accounting principles, except for liabilities or obligations incurred in the ordinary course of business since the Balance Sheet Date, which would not, individually or in the aggregate, have a Material Adverse Effect.
(d)Parent has heretofore furnished to Target a complete and correct copy of any amendments or modifications, which have not yet been filed with OTC Markets, to agreements, documents or other instruments which previously had been filed by Parent with OTC Markets.
3.14Absence of Litigation. Except as disclosed in the Parent Disclosure Schedule, there are no claims, actions, proceedings or investigations pending or, to the best knowledge of Parent, threatened against Parent or any of its subsidiaries, or any properties or rights of Parent or any of its subsidiaries, before any court, arbitrator, or administrative, governmental or regulatory authority or body, domestic or foreign, that, individually or in the aggregate, would have a Material Adverse Effect. As of the date hereof, neither Parent nor any of its subsidiaries nor any of their properties is subject to any order, writ, judgment, injunction, decree, determination or award having a Material Adverse Effect.
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3.15Absence of Certain Changes or Events. Since the Balance Sheet Date, except as contemplated or permitted by this Agreement or disclosed in Parent OTC Markets Reports filed since that date and through the date hereof, Parent and its subsidiaries have conducted their businesses only in the ordinary course and in a manner consistent with past practice and, since such date, there has not been (a) any change in the financial condition, results of operations, business or prospects of Parent or any of its subsidiaries having a Material Adverse Effect, (b) any damage, destruction or loss (whether or not covered by insurance) with respect to any assets of Parent or any of its subsidiaries having a Material Adverse Effect, (c) any material change by Parent in its accounting methods, principles or practices, (d) any revaluation by Parent of any of its assets, including, without limitation, writing down the value of inventory or any notes, accounts receivable or other investments which would, individually or in the aggregate, exceed five percent of the total assets of Parent as reflected on the balance sheet in the 2025 Balance Sheet; (e) any declaration, setting aside or payment of any dividends or distributions in respect of shares of Parent Voting Stock or any redemption, purchase or other acquisition of any of its securities; or (f) any change in the status of any litigation, claims, actions, proceedings or investigations pending or, to the best knowledge of Parent, threatened against Parent or any of its subsidiaries, which, as a result of such change, will have a Material Adverse Effect.
3.16Environmental Matters. To the best of Parent’s knowledge, there are no environmental liabilities (whether accrued, absolute, contingent or otherwise) of Parent.
3.17Labor Matters. Except as set forth in the Parent Disclosure Schedule, (a) there are no controversies pending or, to the knowledge of Parent or any of its subsidiaries, threatened, between Parent or any of its subsidiaries and any of their respective employees, which controversies have a Material Adverse Effect; (b) neither Parent nor any of its subsidiaries is a party to any collective bargaining agreement or other labor union contract applicable to persons employed by Parent or its subsidiaries nor does Parent or any of its subsidiaries know of any activities or proceedings of any labor union to organize any such employees; (c) neither Parent nor any of its subsidiaries has breached or otherwise failed to comply with any provision of any such agreement or contract and there are no grievances outstanding against any such parties under any such agreement or contract; (d) there are no unfair labor practice complaints pending against Parent or any of its subsidiaries before the National Labor Relations Board or any current union representation questions involving employees of Parent or any of its subsidiaries; and (e) neither Parent nor any of its subsidiaries has any knowledge of any strikes, slowdowns, work stoppages, lockouts, or threats thereof, by or with respect to any employees of Parent or any of its subsidiaries.
3.18Contracts. The Parent Disclosure Schedule lists or describes all material contracts or arrangements to which Parent or any subsidiary is a party, or by which it is bound, as of the date hereof. All such contracts and arrangements are in full force and effect and there has been no notice of termination or threatened termination with respect to any such contracts and arrangements, whether or not termination is permitted by the terms thereof, and no event has occurred which, with the giving of notice or the lapse of time, or both, would constitute a breach or default under any such contract or arrangement, except for such breaches, defaults and events as to which requisite waivers or consents have been obtained.
3.19Title to Properties. Except as set forth in the Parent Disclosure Schedule, Parent has, and at the Effective Time will have, good and marketable title to the equipment and other property shown as assets on its records and books of account as of the Balance Sheet Date, free and clear of all liens, encumbrances and charges.
3.20Patents. To the best knowledge of Parent, Parent or its subsidiaries own or possess adequate licenses or other valid rights to use all patents, patent rights, inventions, designs, processes, formulae and other proprietary information used or held for use in connection with the business of Parent or any of its subsidiaries as currently being, or proposed to be, conducted and is unaware of any assertions or claims challenging the validity of any of the foregoing which would have a Material Adverse Effect. The conduct of the business of Parent and its subsidiaries as now conducted or proposed to be conducted does not and will not conflict with any patents, patent rights, licenses, trademarks, trademark rights, trade names, trade name rights or copyrights of others in any way which would have a Material Adverse Effect. No material infringement of any proprietary right owned by or licensed by or to Parent or any of its subsidiaries is known to Parent which would have a Material Adverse Effect.
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3.21Taxes. Except as set forth in the Parent Disclosure Schedule, Parent and Merger Sub have filed all federal and state tax returns and reports and, to the best of Parent’s knowledge, all state, local and foreign tax returns and reports required to be filed by them and have paid and discharged all taxes, including sales and use tax, shown as due thereon and have paid all applicable state and local ad valorem taxes as are due, except such as are being contested in good faith by appropriate proceedings and except for such filings, payments or other occurrences which would not have a Material Adverse Effect. Neither the IRS nor any other taxing authority or agency is now asserting or, to the best of Parent’s knowledge, threatening to assert against Parent or any of its subsidiaries any deficiency or claim for additional taxes or interest thereon or penalties in connection therewith. Neither Parent nor any of its subsidiaries has granted any waiver of any statute of limitations with respect to, or any extension of a period for the assessment of, any federal, state, county, municipal or foreign income tax.
3.22Brokers; Finders. No person will have, as a result of the transactions contemplated hereby, any valid right, interest or claim against or upon Parent and/or Merger Sub for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of Parent and/or Merger Sub.
3.23Full Disclosure. No statement contained in any document, certificate or other writing furnished or to be furnished by Parent or Merger Sub to Target pursuant to the provisions of this Agreement contains or shall contain any untrue statement of a material fact or omits or shall omit to state any material fact necessary, in light of the circumstances under which it was or may be made, in order to make the statements herein or therein not misleading.
4.Representations and Warranties of Target. Target hereby represents and warrants to Parent and Merger Sub that, except as set forth in the Disclosure Schedule of Target delivered to Parent and Merger Sub (the “Target Disclosure Schedule”):
4.01Organization and Qualification; Subsidiaries. Target is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Tennessee and has the requisite corporate power and authority and is in possession of all franchises, grants, authorizations, licenses, permits, easements, consents, certificates, approvals and orders to own, operate or lease the properties that it purports to own, operate or lease and to carry on its business as it is now being conducted, and is duly qualified as a foreign entity to do business, and is in good standing, in each jurisdiction where the character of its properties owned, operated or leased or the nature of its activities makes such qualification necessary, except for such failures which, when taken together with all other such failures, would not have a Material Adverse Effect. Target has not received any notice of proceedings relating to the revocation or modification of any such franchises, grants, authorizations, licenses, permits, easements, consents, certificates, approvals or orders.
The term “Material Adverse Effect” as used in this Section 4, means any change in or effect on the business of Target that is or is reasonably likely to be materially adverse to the business, operations, properties (including intangible properties), prospects, condition (financial or otherwise), assets or liabilities of Target taken as a whole. Target has no subsidiaries.
4.02Articles of Organization and Operating Agreement. Target shall, as part of the Target Disclosure Schedule, furnish to Parent a complete and correct copy of the Certificate of Formation and Operating Agreement, each as amended to date, of Target. Such Articles of Organization and Operating Agreement are in full force and effect.
4.03Capitalization. The ownership of Target is as set forth in the Target Disclosure Schedule, which information is specifically made a part hereof. As of the date of this Agreement, all membership interests, including the Target Interests, are validly issued, fully paid and non-assessable; no membership interests are held in the treasury of Target. Except as set forth in the Target Disclosure Schedule, there are no options, warrants or other rights, agreements, arrangements or commitments of any character relating to the issued or unissued membership interests of Target or obligating Target to issue or sell any membership interest of, or other equity interests in, Target. Except as set forth in the Target Disclosure Schedule, there are no outstanding contractual obligations of Target to repurchase, redeem or otherwise acquire any the Target Interests.
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4.04Authority Relative to this Agreement. Target has all necessary corporate power and authority to enter into this Agreement and to carry out its obligations hereunder. The execution and delivery of this Agreement by Target and the consummation by Target of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of Target subject to the approval of the Merger and adoption of this Agreement by the Members in accordance with the Tennessee Law.
This Agreement has been duly executed and delivered by Target and, assuming the due authorization, execution and delivery by Parent and Merger Sub, constitutes a legal, valid and binding obligation of Target.
4.05No Conflict; Required Filings and Consents.
(a)The execution and delivery of this Agreement by Target does not, and the performance of this Agreement by Target shall not, (1) conflict with or violate the Certificate of Formation or Operating Agreement of Target, (2) conflict with or violate any law, rule, regulation, order, judgment or decree applicable to Target or by which its properties are bound or affected, or (3) result in any breach of or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, or result in the creation of a lien or encumbrance on any of the properties or assets of Target pursuant to, any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument or obligation to which Target is a party or by which Target or its properties are bound or affected, except for such breaches, defaults or other occurrences which would not, individually or in the aggregate have a Material Adverse Effect.
(b)The execution and delivery of this Agreement by Target does not, and the performance of this Agreement shall not, require any consent, approval, authorization or permit of, or filing with or notification to, any governmental or regulatory authority, domestic or foreign.
4.06Compliance. Target is not in conflict with, or in default or violation of, (a) its Certificate of Formation or Operating Agreement or equivalent organizational documents, (b) any law, rule, regulation, order, judgment or decree applicable to Target or by which its properties are bound or affected, including, without limitation, health and safety, environmental and civil rights laws and regulations and zoning ordinances and building codes, or (c) any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise, easement, consent, order or other instrument or obligation to which Target is a party or by which Target or its properties are bound or affected, except for any such conflicts, defaults or violations which would not, individually or in the aggregate, have a Material Adverse Effect.
4.07Financial Statements. Target shall deliver to Parent, prior to Closing the Target Audited Financial Statements and unaudited financial statements for the interim period ending on the Closing Date, which interim financial statements shall have been prepared in accordance with generally accepted accounting principles (GAAP) and, to the best knowledge of Target, including its affiliates, capable of PCAOB audit.
4.08Bank Account Statements. As part of the Target Disclosure Schedule, Target shall deliver to Parent and Merger Sub copies of all of its bank account statements, since inception. All of such statements are true and complete and represent all of the banking transactions of Target during its existence.
4.09Absence of Certain Changes or Events. Since the date of the latest financial statements provided by Target to Parent, except as contemplated by this Agreement or disclosed in the Target Disclosure Schedule, Target has conducted its business only in the ordinary course and in a manner consistent with past practice and, since such date, there has not been any change in the business or prospects of Target having a Material Adverse Effect or any declaration, setting aside or payment of any dividends or distributions in respect of shares of Target Interests or any redemption, purchase or other acquisition of any of its securities.
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4.10Absence of Litigation. Except as disclosed in Target Disclosure Schedule, there are no claims, actions, proceedings or investigations pending or, to the best knowledge of Target, threatened against Target, or any properties or rights of Target, before any court, arbitrator, or administrative, governmental or regulatory authority or body, that, individually or in the aggregate, would have a Material Adverse Effect. As of the date hereof, neither Target nor its properties is subject to any order, writ, judgment, injunction, decree, determination or award having a Material Adverse Effect.
4.11Labor Matters. Except as set forth in the Target Disclosure Schedule, (a) there are no controversies pending or, to the knowledge of Target, threatened, between Target and any of its employees, which controversies have a Material Adverse Effect; and (b) Target is not a party to any collective bargaining agreement or other labor union contract.
4.12Contracts. The Target Disclosure Schedule lists or describes all contracts, authorizations, approvals or arrangements to which Target is a party, or by which it is bound, as of the date hereof, and which (a) obligates or may obligate Target to pay more than $20,000; or (b) are financing documents, loan agreements or agreements providing for the guarantee of the obligations of any party in each case involving an obligation in excess of $20,000.
4.13Title to Property and Leases.
(a)Except as set forth in the Target Disclosure Schedule, each asset owned or leased by Target is owned or leased free and clear of any mortgages, pledges, liens, security interests, conditional and installment sale agreements, encumbrances, charges or other claims of third parties of any kind.
(b)Except as set forth in the Target Disclosure Schedule, all leases of real property leased for the use or benefit of Target to which Target is a party, and all amendments and modifications thereof are in full force and effect and have not been modified or amended and there exists no material default under the leases by Target, nor any event which, with the giving of notice or lapse of time, or both, would constitute a material default thereunder by Target.
(c)A statement describing all assets of Target is included in the Target Disclosure Schedule.
4.14Intellectual Property. Except as set forth in the Target Disclosure Schedule, at the Closing, Target will own any and all intellectual property, including, without limitation, any and all patents and/or patent applications, and other rights pertaining to any and all assets related to Target’s business operations and utilized therein.
The Target Disclosure Schedule lists each patent and patent application of Target and includes copies of all documentation relating to each such patent and/or patent application. Further, the Target Disclosure Schedule lists or describes every other item of intellectual property of Target.
4.15Insurance. The Target Disclosure Schedule lists and describes all policies of insurance in force and held by Target.
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4.16Taxes. Except as set forth in the Target Disclosure Schedule, Target has filed all federal and state tax returns and reports and, to the best of Target’s knowledge, all state, local and foreign tax returns and reports required to be filed have been filed and Target has paid and discharged all taxes, including sales and use taxes, shown as due thereon and has paid all applicable state and local ad valorem taxes as are due, except such as are being contested in good faith by appropriate proceedings and except for such filings, payments or other occurrences which would not have a Material Adverse Effect. Except as set forth in the Target Disclosure Schedule, neither the IRS nor any other taxing authority or agency is now asserting or, to the best of Target’s knowledge, threatening to assert against Target any deficiency or claim for additional taxes or interest thereon or penalties in connection therewith. Except as set forth in the Target Disclosure Schedule, Target has not granted any waiver of any statute of limitations with respect to, or any extension of a period for the assessment of, any federal, state, county, municipal or foreign income tax.
4.17Brokers; Finders. No person will have, as a result of the transactions contemplated hereby, any valid right, interest or claim against or upon Target for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of Target.
4.18Full Disclosure. No statement contained in any document, certificate or other writing furnished or to be furnished by Target or the Members to Parent and Merger Sub pursuant to the provisions of this Agreement contains or shall contain any untrue statement of a material fact or omits or shall omit to state any material fact necessary, in light of the circumstances under which it was or may be made, in order to make the statements herein or therein not misleading.
5.Conduct of Business Pending the Merger.
5.01Conduct of Business by Target Pending the Merger. Target covenants and agrees that, between the date of this Agreement and the Effective Time, unless Parent shall otherwise agree in writing, the business of Target shall be conducted only in, and Target shall not take any action except in, the ordinary course of business and in a manner consistent with past practice; and Target shall use its best efforts to preserve substantially intact the business organization of Target, to keep available the services of the present officers, employees and consultants of Target and to preserve the present relationships of Target with customers, suppliers and other persons with which Target has significant business relations. By way of amplification and not limitation, except as contemplated by this Agreement, Target shall not, directly or indirectly, do, or propose to do, any of the following without the prior written consent of Parent, which consent shall not be unreasonably withheld:
(a)amend or otherwise change its Certificate of Formation or Operating Agreement or equivalent organizational documents;
(b)issue, sell, pledge, dispose of, encumber or authorize the issuance, sale, pledge, disposition or encumbrance of (1) any equity interest of any class, or any options, warrants, convertible securities or other rights of any kind to acquire any shares of capital stock, or any other ownership interest, of Target or (2) any assets of Target or any other material assets of Target other than in the ordinary course of business consistent with past practices;
(c)declare, set aside, make or pay any dividend or other distribution, payable in cash, stock, property or otherwise, with respect to any of its capital stock;
(d)reclassify, combine, split, subdivide or redeem, purchase or otherwise acquire, directly or indirectly, any of its capital stock;
(e)(1) acquire (by merger, consolidation or acquisition of stock or assets) any corporation, partnership or other business organization or division thereof; (2) incur any indebtedness for borrowed money or issue any debt securities or assume, guaranty or endorse or otherwise as an accommodation, become responsible for the obligations of any person, or make any loans or advances, except in the ordinary course of business and consistent with past practice; (3) authorize any single capital expenditure which is in excess of $20,000 or capital expenditures which are, in the aggregate, in excess of $20,000 for Target; or (4) enter into or amend any contract, agreement, commitment or arrangement to any of the effects set forth in this subparagraph (e);
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(f)increase the compensation payable or to become payable to its officers or employees, except for increases in salary or wages of employees of Target who are not officers of Target in accordance with past practices, or grant any severance or termination pay to, or enter into any employment or severance agreement with, any director or officer of Target, or establish, adopt, enter into or amend any collective bargaining, bonus, profit sharing, thrift, compensation, stock option, restricted stock, pension, retirement, deferred compensation, employment, termination, severance or other plan, agreement, trust, fund, policy or arrangement for the benefit of any directors, officers or employees;
(g)take any action other than in the ordinary course of business and in a manner consistent with past practice with respect to accounting policies or procedures (including, without limitation, procedures with respect to the payments of accounts payable and collection of accounts receivable);
(h)settle or compromise any material federal, state, local or foreign income tax liability; or
(i)pay, discharge, compromise or consent to any arrangements concerning or satisfy any claims, liabilities or obligations (absolute, accrued, asserted or unasserted, contingent or otherwise), other than the payment, discharge, compromise, settlement, arrangement or satisfaction in the ordinary course of business and consistent with past practice of liabilities reflected or reserved against in the financial statements of Target or incurred in the ordinary course of business and consistent with past practice.
5.02Conduct of Business by Parent and Merger Sub Pending the Merger. Parent and Merger Sub covenant and agree that, between the date of this Agreement and the Effective Time, Parent shall not sell or otherwise dispose of all or any material portion of its assets.
5.03Approval of Members. Target shall secure the consent of the Members to this Agreement, in accordance with the provisions of the Tennessee Law.
5.04Securities Law Compliance. All of the parties hereto shall take any action required to be taken under applicable Federal and/or state securities laws applicable to (a) the Merger and (b) the issuance of Parent Voting Stock pursuant to the Merger. Parent shall promptly deliver to Target copies of any filings made by Parent and/or Merger Sub pursuant to this Section 5.04.
5.05Third-Party Consents. Each party to this Agreement shall use its best efforts to obtain, as soon as reasonably practicable, all permits, authorizations, consents, waivers and approvals from third parties or governmental authorities necessary to consummate this Agreement and the Merger Agreement and the transactions contemplated hereby and thereby, including, without limitation, any permits, authorizations, consents, waivers and approvals required in connection with the Merger.
6.Conditions of Merger.
6.01.Conditions to Obligation of Each Party to Effect the Merger. The respective obligations of each party to effect the Merger shall be subject to the fulfillment of all of the following conditions precedent at or prior to the Effective Time:
(a)Member Approval. This Agreement shall have been approved and adopted in writing by the Members, in accordance with the provisions of the Tennessee Law.
(b)No Order. No United States or state governmental authority or other agency or commission or United States or state court of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered any statute, rule, regulation, injunction or other order (whether temporary, preliminary or permanent) which is in effect and has the effect of making the conversion of Target Interests into the Merger Consideration illegal or otherwise prohibiting consummation of the transactions contemplated by this Agreement.
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(c)No Challenge. There shall not be pending or threatened any action, proceeding or investigation before any court or administrative agency by any government agency or any other person challenging, or seeking material damages in connection with the conversion of Target Interests into the Merger Consideration pursuant to the Merger or otherwise materially adversely affecting the business, assets, prospects, financial condition or results of operations of Target, Merger Sub, Parent or any of their respective subsidiaries or affiliates.
6.02Additional Conditions to Obligations of Parent and Merger Sub. The obligations of Parent and Merger Sub to effect the Merger are also subject to the fulfillment of all of the following conditions precedent at or prior to the Effective Time:
(a)Representations and Warranties. The representations and warranties of Target and the Members contained in this Agreement shall be true and correct in all material respects on and as of the Effective Time, except for changes contemplated by this Agreement and except for those representations and warranties which address matters only as of a particular date (which shall remain true and correct as of such date), with the same force and effect as if made on and as of the Effective Time, and Parent and Merger Sub shall have received a Certificate of the Chief Executive Officer of Target which is to that effect, which certificate shall be in the form attached hereto as Exhibit 6.02(a).
(b)Agreements and Covenants. Target and the Members shall have performed or complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with by them on or prior to the Effective Time, and Parent and Merger Sub shall have received a Certificate of the Chief Executive Officer of Target to that effect, which certificate shall be in the form attached hereto as Exhibit 6.02(b).
(c)Consents Obtained. All consents, waivers, approvals, authorizations or orders required to be obtained, and all filings required to be made, by Target for the authorization, execution and delivery of this Agreement and the consummation by it of the transactions contemplated hereby shall have been obtained and made by Target.
(d)Target Audited Financial Statements. Target shall have delivered the Target Audited Financial Statements, in accordance with the provisions of Section 4.07.
(e)No Material Adverse Change. There shall have been no material adverse change in the condition, financial or otherwise, of Target.
6.03Additional Conditions to Obligations of Target. The obligations of Target to effect the Merger is also subject to fulfillment of all of the following conditions precedent, at or prior to the Effective Time:
(a)Representations and Warranties. The representations and warranties of Parent and Merger Sub contained in the Agreement shall be true and correct in all material respects on and as of the Effective Time, except for changes contemplated by this Agreement and except for those representations and warranties which address matters only as of a particular date (which shall remain true and correct as of such date), with the same force and effect as if made on and as of the Effective Time, and Target shall have received a Certificate of the Chief Executive Officer of Parent and Incorporator of Merger Sub which is to that effect, which certificate shall be in the form attached hereto as Exhibit 6.03(a).
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(b)Agreements and Covenants. Parent and Merger Sub shall have performed or complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with by them on or prior to the Effective Time, and Target shall have received a Certificate of the Chief Executive Officer of Parent and Incorporator of Merger Sub which is to that effect, which certificate shall be in the form attached hereto as Exhibit 6.03(b).
(c)Consents Obtained. All consents, waivers, approvals, authorizations or orders required to be obtained, and all filings required to be made, by Parent and Merger Sub for the authorization, execution and delivery of this Agreement and the consummation by them of the transactions contemplated hereby shall have been obtained and made by Parent and Merger Sub.
(d)No Material Adverse Change. There shall have been no material adverse change in the condition, financial or otherwise, of Parent.
7.Indemnification.
7.01 Target Indemnities. For the one-year period immediately following the Closing Date, Target agrees to indemnify, defend and hold harmless Parent, its current and former directors, officers, affiliates, agents, attorneys and their respective successors and assigns from, against and in respect of the full amount of any and all liabilities, damages, claims, deficiencies, fines, assessments, losses, taxes, penalties, interest, costs and expenses, including, without limitation, reasonable fees and disbursements of counsel (“Damages”) arising from, in connection with, or incident to any untruth, inaccuracy, breach or omission of, from or in, the representations and warranties made to Buyer herein; or any nonfulfillment of any covenant or agreement of Target under this Agreement; or from any untruth, inaccuracy, breach or omission of, from or in, any representation or warranty, or any nonfulfillment of any covenant or agreement made by Target in the Schedules, the exhibits or any other written statement, list, certificate or other instrument furnished to Parent by or on behalf of Target pursuant to this Agreement; or any operations of Parent prior to the Effective Time.
7.02Parent Indemnities. Parent agrees to indemnify, defend and hold harmless Target, its affiliates, agents attorneys and their respective successors and assigns from, against and in respect of the full amount of any and all liabilities, damages, claims, deficiencies, fines, assessments, losses, taxes, penalties, interest, costs and expenses, including, without limitation, reasonable fees and disbursements of counsel (Damages) arising from, in connection with, or incident to any untruth, inaccuracy, breach or omission of, from or in, the representations and warranties made to Target herein; or any nonfulfillment of any covenant or agreement of Parent under this Agreement; or from any untruth, inaccuracy, breach or omission of, from or in, any representation or warranty, or any nonfulfillment of any covenant or agreement made by Parent in the Schedules, the exhibits or any other written statement, list, certificate or other instrument furnished to Target by or on behalf of Parent pursuant to this Agreement.
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7.03Indemnification Procedure. Promptly after any person entitled to indemnification under this Section 7 (the “Indemnified Party”) has received notice of or has knowledge of any claim against the Indemnified Party by a person not a party to this Agreement (a “Third Person”) or the commencement of any action or proceeding by a Third Person, it shall give the other party (“Indemnifying Party”) written notice of such claim or the commencement of such action or proceeding; provided that no delay on the part of the Indemnified Party in notifying the Indemnifying Party will relieve the Indemnifying Party from any obligation hereunder unless, and then solely to the extent that, the Indemnifying Party is prejudiced thereby. Such notice shall state the nature and the basis of such claim and a reasonable estimate of the Damages.
The Indemnifying Party shall have right to defend, at its own expense and by its own counsel, any such matter so long as the Indemnifying Party pursues the same in good faith and diligently.
If the Indemnifying Party undertakes to defend or settle, it shall promptly notify the Indemnified Party of its intention to do so, and the Indemnified Party shall reasonably cooperate with the Indemnifying Party and its counsel in the defense thereof and in any settlement thereof. Such cooperation shall include, but shall not be limited to, furnishing the Indemnifying Party with any personnel, books, records or information reasonably requested by the Indemnifying Party that are in the Indemnified Party’s possession or control. Notwithstanding the foregoing, the Indemnified Party shall have the right to participate in any matter through counsel of its own choosing at its own expense (unless there is a conflict of interest that prevents counsel for the Indemnifying Party from representing the Indemnified Party, in which case the Indemnifying Party will reimburse the Indemnified Party for the expenses of its counsel).
After the Indemnifying Party has notified the Indemnified Party of its intention to undertake to defend or settle any such asserted liability, and for so long as the Indemnifying Party diligently pursues such defense, the Indemnifying Party shall not be liable for any additional legal expenses incurred by the Indemnified Party in connection with any defense or settlement of such asserted liability. If the Indemnifying Party does not undertake to defend such matter to which the Indemnified Party is entitled to indemnification hereunder, or fails to diligently pursue such defense, the Indemnified Party may undertake such defense through counsel of its choice, at the cost and expense of the Indemnifying Party, and the Indemnified Party may settle such matter, and the Indemnifying Party shall reimburse the Indemnified Party for the amount paid in such settlement and any other liabilities or expenses incurred by the Indemnified Party in connection therewith.
No party hereto, without the prior written consent of the other, shall settle, compromise or consent to the entry of any judgment with respect to any pending or threatened Claim unless the settlement, compromise or consent (1) provides for and includes an express, unconditional release of all Indemnified Parties and Indemnifying Parties from all liabilities, claims, demands, actions and obligations in connection therewith and (2) does not provide for any relief other than monetary relief.
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7.04Additional Remedies. The rights of the Indemnified Party under this Section 7 shall be in addition to any other rights or remedies that might otherwise be available to it at law or in equity and the exercise of such rights shall not operate as a waiver of any of such other rights.
8.Termination, Amendment and Waiver.
8.01Termination. This Agreement may be terminated at any time prior to the Effective Time, whether before or after approval of the Members:
(a)By Parent, on or before the 45th day immediately following the date of mutual execution of this Agreement, should the Audited Target Financial Statements to be delivered hereunder not be capable of a PCAOB audit, as determined by the PCAOB auditor retained for such purpose, it its sole determination.
(b)By mutual consent of the Boards of Directors of Parent and Target.
(c)By either Parent or Target, if:
(1)the Merger shall not have been consummated by the date that is 75 days following the mutual execution of this Agreement (the “Termination Date”);
(2)the requisite consent of the Members to approve this Agreement, the Merger Agreement and the transactions contemplated hereby and thereby shall not be obtained;
(3)any governmental or regulatory body, the consent of which is a condition to the obligations of Parent, Merger Sub and Target to consummate the transactions contemplated hereby or by the Merger Agreement, shall have been unsuccessful; or
(4)any court of competent jurisdiction in the United States or any state shall have issued an order, judgment or decree (other than a temporary restraining order) restraining, enjoining or otherwise prohibiting the Merger and such order, judgment or decree shall have become final and non-appealable;
provided, however, that the right to terminate this Agreement under this Section 8.01(b) shall not be available to any party whose willful failure to fulfill any material obligation under this Agreement has been the cause of, or resulted in, the failure of the Effective Time to occur on or before such date.
8.02Effect of Termination. In the event of termination of this Agreement as provided in Section 8.01, this Agreement shall forthwith become void and there shall be no liability on the part of either Parent, Merger Sub or Target or their respective officers or directors, except that nothing in this Section 8.02 shall relieve any party from liability for any breach of this Agreement.
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8.03Expenses. Unless otherwise provided herein, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby and thereby shall be paid by the party incurring such expenses, whether or not the Merger is consummated.
8.04Amendment. This Agreement may be amended by the parties hereto by action taken by or on behalf of their respective Boards of Directors at any time prior to the Effective Time. This Agreement may not be amended except by an instrument in writing signed by each of the parties hereto.
8.05Waiver. At any time prior to the Effective Time, any party hereto may (a) extend the time for the performance of any of the obligations or other acts of the other parties hereto, (b) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant hereto and (c) waive compliance with any of the agreements or conditions contained herein. Any such extension or waiver shall be valid if set forth in an instrument in writing signed by the party or parties to be bound thereby.
9.General Provisions.
9.01Survival of Representations, Warranties and Agreements. The representations, warranties and agreements in this Agreement shall survive the Merger indefinitely.
9.02Public Announcements. Parent and Target shall consult with each other before issuing any press release or making any other public statement with respect to this Agreement or the transactions contemplated hereby and, except (a) as may be required by applicable law, (b) as to any filing with OTC Markets and/or the SEC required to be made by Parent or (c) as may be required by any listing agreement with or rule of any national securities exchange or association, shall not issue any such press release or make any such other public statement before such consultation.
9.03Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given or made as of the date delivered or mailed if delivered personally or mailed by registered or certified mail (postage prepaid, return receipt requested) to the parties at the following addresses (or at such other address for a party as shall be specified by like notice, except that notices of changes of address shall be effective upon receipt):
(a) If to Parent or Merger Sub:
Nextel Medical Corp.
7901 4th Street N #23494
St. Petersburg, Florida 33702
Attention: Matthew Dwyer, Chief Executive Officer
E-mail: w2572002@gmail.com
(b) If to Target:
Jumpstart Rx, LLC
6007 Island Road
Memphis, Tennessee 38127
Attention: Casey Barksdale, Managing Member
E-mail: casey@island40group.com
9.04Non-Waiver. The failure in any one or more instances of a party to insist upon performance of any of the terms, covenants or conditions of this Agreement, to exercise any right or privilege conferred in this Agreement, or the waiver by said party of any breach of any of the terms, covenants or conditions of this Agreement, shall not be construed as a subsequent waiver of any such terms, covenants, conditions, rights or privileges, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.
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9.05Arbitration. Any dispute arising under this Agreement and/or the Merger Agreement, as well as any of the transactions contemplated hereby and thereby, shall be resolved by arbitration in Miami, Florida, under the Rules of the American Arbitration Association, as then in effect. The determination and award of the arbitrator, which award may include punitive damages, shall be final and binding on the parties and may be entered as a judgment in any court of competent jurisdiction. It is expressly agreed that the arbitrators, as part of their award, can award attorneys’ fees to the prevailing party.
9.06Binding Effect; Benefit. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to confer on any person other than the parties hereto and their respective successors and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement, including, without limitation, third party beneficiary rights.
9.07Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the extent possible.
9.08Entire Agreement. This Agreement constitutes the entire agreement and supersedes all prior agreements and undertakings, both oral and written, among the parties, or any of them, with respect to the subject matter hereof and, except as otherwise expressly provided herein, are not intended to confer upon any other person any rights or remedies hereunder.
9.09Assignability. This Agreement shall not be assignable by either party or by operation of law, except with the express written consent of each other party.
9.10.Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Tennessee applicable to contracts executed in and to be performed in such State.
9.11Headings. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.
9.12Counterparts. This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.
[ SIGNATURE PAGE FOLLOWS ]
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[ Signature Page to Plan and Agreement of Merger ]
IN WITNESS WHEREOF, Parent, Merger Sub and Target, by their respective officers thereunto duly authorized, have caused this Agreement to be executed as of the date first written above.
PARENT:
NEXTEL MEDICAL CORP.
(f/k/a Exousia Pro, Inc. and Marijuana, Inc.)
By: /s/ Matthew Dwyer
Matthew Dwyer
Chief Executive Officer
MERGER SUB:
JSTART MERGER SUB, LLC
By: /s/ Matthew Dwyer
Matthew Dwyer
Organizer
TARGET:
JUMPSTART RX, LLC
By: Casey Barksdale
Casey Barksdale
Managing Member
EXHIBIT A
Form of Agreement of Merger
AGREEMENT OF MERGER
Agreement of Merger, dated as of _________, 2026 (the “Agreement”), among Nextel Medical Corp., f/k/a Exousia Pro, Inc. and Marijuana, Inc., a Florida corporation (“Parent”), JStart Merger Sub, LLC, a Tennessee limited liability company wholly owned by Parent (“Merger Sub”), and Jumpstart Rx, LLC, a Tennessee limited liability company (“Target”). (Merger Sub and Target being hereinafter collectively referred to as the “Constituent Companies”).
WHEREAS, prior to the execution of this Agreement, Parent, Merger Sub and Target have entered into a Plan and Agreement of Merger dated as of April 30, 2026 (the “Plan of Merger”), providing for certain representations, warranties and agreements in connection with the transaction contemplated; and
WHEREAS, the Boards of Directors of Parent, Merger Sub and Target have approved the acquisition of Target by Parent; and
WHEREAS, the Boards of Directors of Parent, Merger Sub and Target have approved the merger of Target into Merger Sub (the “Merger”) upon the terms and subject to the conditions set forth herein and in the Plan of Merger; and
for Federal income tax purposes, it is intended that the Merger shall qualify as a reorganization within the meaning of Section 368(a)(1)(A) and 368(a)(2)(D) of the Internal Revenue Code of 1986, as amended (the “Code”).
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby, Parent, Merger Sub and Target agree as follows:
1.Merger.
1.01The Merger. At the Effective Time (as defined in Section 1.02) and subject to and upon the terms and conditions of this Agreement and the Plan of Merger, Merger Sub shall be merged with and into Target, the separate corporate existence of Merger Sub shall cease, and Target shall continue as the surviving corporation, in accordance with the applicable provisions of the Tennessee Business Corporation Act (the “Tennessee Law”). Target, as the surviving corporation after the Merger, is hereinafter sometimes referred to as the “Surviving Company”.
1.02Effective Time. As promptly as practicable after the satisfaction or waiver of the conditions set forth in Section 6, and provided that this Agreement has not been terminated or abandoned pursuant to Section 8, the shall cause the Merger to be consummated by filing a Certificate of Merger (the “Certificate of Merger”) with the office of the Secretary of State of the State of Tennessee, in such form as required by, and executed in accordance with, the relevant provisions of the Tennessee Law. Subject to, and in accordance with, the Tennessee Law, the Merger will become effective at the date and time the Certificate of Merger is filed with the office of the Secretary of State of the State of Tennessee or such later time or date as may be specified in the Certificate of Merger (the “Effective Time”).
2.The Surviving Company.
2.01Certificate of Formation. The Certificate of Formation of Target as in effect immediately prior to the Effective Time shall be the Certificate of Formation of the Surviving Company after the Effective Time.
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2.02Operating Agreement. The Operating Agreement of Target as in effect immediately prior to the Effective Time shall be the Operating Agreement of the Surviving Company after the Effective Time.
2.03Managers. The managers of the Surviving Company immediately upon the Effective Time shall hold office in accordance with the Articles of Organization and Operating Agreement of the Surviving Company, in each case until their respective successors are duly elected or appointed and qualified.
3.Conversion of Securities.
3.01Conversion of Securities. Pursuant to this Agreement, at the Effective Time, by virtue of the Merger and without any action on the part of Merger Sub and Target:
(a)Each membership interest of Target (the “Target Interests”) held in the treasury of Target and each such share of Target Interests owned by Merger Sub, Parent or any direct or indirect wholly-owned subsidiary of Parent or of Merger Sub immediately prior to the Effective Time shall be cancelled and extinguished without any conversion thereof and no payment shall be made with respect thereto.
(b)Each Target Interest which is outstanding immediately prior to the Effective Time, other than those shares of Target Interests cancelled as set forth in subsection (a) above, shall be converted into (1) the right to receive shares of the $.001 par value per share Series D Voting Convertible Preferred Stock of Parent (the “Parent Voting Stock”), in accordance with the ownership schedule included in the Target Disclosure Schedule, for a total of 1,500,000 shares of Parent Voting Stock (these shares of Parent Voting Stock are referred to as the “Closing Shares”) and (b) the sum of cash, in accordance with the ownership schedule included in the Target Disclosure Schedule, for a total of $500,000 in cash (the “Closing Amount”). The Closing Shares and the Closing Amount and the are referred to, collectively, as the “Merger Consideration”.
The Parent Voting Stock is to have the preferences, rights, qualifications, limitations and restrictions set forth the Certificate of Designation of the Parent Voting Stock attached hereto as Exhibit B and made a part hereof by this reference.
3.02Status of Merger Sub Membership Interests. The membership interests of Merger Sub issued and outstanding immediately prior to the Effective Time shall be converted into membership interests of the Surviving Company, which shall be the only membership interests of the Surviving Company outstanding after the Effective Time, resulting in the Surviving Company being wholly owned by Parent after the Effective Time.
3.03Surrender of and Exchange of Target Interests. Inasmuch as there are no physical certificates evidencing ownership of the Target Interests, upon the Closing (defined below), the Target Interests shall be deemed to have been surrendered for exchange to the Surviving Company.
4.Termination and Amendment.
4.01Termination. This Agreement shall terminate in the event of, and upon termination of, the Plan of Merger.
4.02Amendments. This Agreement may be amended by the parties hereto, at any time before or after approval hereof by the owners of Target, but, after any such approval, no amendment shall be made which (a) changes the ratio at which Target Interests are to be converted into Parent Common Stock pursuant to Section 3.01, (b) in any way materially adversely affects the rights of holders of Target Interests or (c) changes in any of the principal terms of this Agreement, in each case, without the further approval of such shareholders. This Agreement may not be amended except by an instrument in writing signed on behalf of each of the parties hereto.
4.03Waiver. At any time prior to the Effective Time, the parties hereto may (a) extend the time for the performance of any of the obligations or other acts of the other parties hereto, (b) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant hereto and (c) waive compliance with any of the agreements or conditions contained herein. Any agreement on the part of a party hereto to any such extension or waiver shall be valid if set forth in an instrument in writing signed on behalf of such party.
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4.04Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given or made as of the date delivered or mailed if delivered personally or mailed by registered or certified mail (postage prepaid, return receipt requested) to the parties at the following addresses (or at such other address for a party as shall be specified by like notice, except that notices of changes of address shall be effective upon receipt):
(a) If to Parent or Merger Sub:
Nextel Medical Corp.
7901 4th Street N #23494
St. Petersburg, Florida 33702
Attention: Matthew Dwyer, Chief Executive Officer
E-mail: w2572002@gmail.com
(b) If to Target:
Jumpstart Rx, LLC
6007 Island Road
Memphis, Tennessee 38127
Attention: Casey Barksdale, Managing Member
E-mail: casey@island40group.com
4.05Arbitration. Any dispute arising under this Agreement and/or the Merger Agreement, as well as any of the transactions contemplated hereby and thereby, shall be resolved by arbitration in Miami, Florida, under the Rules of the American Arbitration Association, as then in effect. The determination and award of the arbitrator, which award may include punitive damages, shall be final and binding on the parties and may be entered as a judgment in any court of competent jurisdiction. It is expressly agreed that the arbitrators, as part of their award, can award attorneys’ fees to the prevailing party.
4.06Entire Agreement. This Agreement and the Plan of Merger constitute the entire agreement between the parties and shall be binding upon and inure to the benefit of the parties hereto and their respective legal representatives, successors and permitted assigns. The parties and their respective affiliates make no representations or warranties to each other, except as contained in the Plan of Merger, and any and all prior representations and statements made by any party or its representatives, whether verbally or in writing, are deemed to have been merged into this Agreement and the Plan of Merger, it being intended that no such representations or statements shall survive the execution and delivery of this Agreement and the Plan of Merger.
4.07Non-Waiver. The failure in any one or more instances of a party to insist upon performance of any of the terms, covenants or conditions of this Agreement, to exercise any right or privilege conferred in this Agreement, or the waiver by said party of any breach of any of the terms, covenants or conditions of this Agreement, shall not be construed as a subsequent waiver of any such terms, covenants, conditions, rights or privileges, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.
4.08Counterparts. This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.
4.09Severability. The invalidity of any provision of this Agreement or portion of a provision shall not affect the validity of any other provision of this Agreement or the remaining portion of the applicable provision.
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4.10Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Tennessee applicable to contracts executed in and to be performed in such State.
4.11Binding Effect; Benefit. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to confer on any person other than the parties hereto and their respective successors and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement, including, without limitation, third party beneficiary rights.
4.12Assignability. This Agreement shall not be assignable by either party or by operation of law, except with the express written consent of each other party.
4.13Headings. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.
IN WITNESS WHEREOF, Parent, Merger Sub and Target have executed this Agreement of Merger on the date first above written.
PARENT:
NEXTEL MEDICAL CORP.
(f/k/a Exousia Pro, Inc. and Marijuana, Inc.)
By: _____________________
Matthew Dwyer
Chief Executive Officer
MERGER SUB:
JSTART MERGER SUB, LLC
By: _____________________
Matthew Dwyer
Organizer
TARGET:
JUMPSTART RX, LLC
By: _____________________
Casey Barksdale
Managing Member
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EXHIBIT B
Certificate of Designation of Parent Voting Stock
NEXTEL MEDICAL CORP.
CERTIFICATE OF DESIGNATION OF PREFERENCES,
RIGHTS AND LIMITATIONS
OF
SERIES D VOTING PREFERRED STOCK
Pursuant to the Florida Statutes, the undersigned does hereby certify, on behalf of Nextel Medical Corp., a Florida corporation (the “Company”), that the following resolution was duly adopted by the Board of Directors of the Company.
WHEREAS, the Articles of Incorporation of the Company, as amended (the “Articles of Incorporation”), authorize the issuance of up to 10,000,000 shares of preferred stock, par value $0.001 per share, of the Company (the “Preferred Stock”) in one or more series, which Preferred Stock shall have such distinctive designation or title, voting powers or no voting powers, and such preferences, rights, qualifications, limitations or restrictions, as shall be stated in such resolution or resolutions providing for the issuance of such class or series of Preferred Stock as may be adopted from time to time by the Board prior to the issuance of any shares thereof; and
WHEREAS, it is the desire of the Board of Directors to establish and fix the number of shares to be included in a new series of Preferred Stock and the designation, rights, preferences, powers, restrictions and limitations of the shares of such new series.
NOW, THEREFORE, IT IS RESOLVED, that the Board of Directors does hereby provide for the issue of a series of Preferred Stock and does hereby in this Certificate of Designation (this “Certificate of Designation”) establish and fix and herein state and express the designation, rights, preferences, powers, restrictions, and limitations of such series of Preferred Stock as follows:
TERMS OF SERIES D VOTING PREFERRED STOCK
Section 1. Designation, Amount and Par Value. The series of Preferred Stock shall be designated as Series D Voting Preferred Stock (the “Series D Preferred Stock”) and the number of shares so designated shall be Six Million (6,000,000).
Section 2. Stated Value. The Series D Preferred Stock shall have a stated value of $1.00 per share (the “Stated Value”).
Section 3. Fractional Shares. The Series D Preferred Stock may be issued in fractional shares.
Section 4. Voting Rights. Each share of the Series D Preferred Stock shall be entitled to one (1) vote on all matters with the outstanding shares of Company common stock (the “Common Stock”).
Section 5. Dividends. The Series D Preferred Stock shall be treated pari passu with the Common Stock, on an as-converted basis.
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Section 6. Liquidation. Upon any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, payments to the holders (each, a “Holder”, collectively, the “Holders”) of Series D Preferred Stock shall be treated pari passu with the Common Stock, except that the payment on each share of Series D Preferred Stock shall be an amount equal to One Dollar ($1.00) for each such share of the outstanding Series D Preferred Stock held by such Holder (as adjusted for any combinations, consolidations, stock distributions or stock dividends with respect to such shares), plus all dividends, if any, declared and unpaid thereon as of the date of such distribution, before any payment shall be made or any assets distributed to the holders of the Common Stock, and, after such payment, the remaining assets of the Company shall be distributed to the holders of the Common Stock.
Section 7. Conversion and Adjustments.
(a)Voluntary Conversion Right; Conversion Price. Any time following the date that is eighteen (18) months from issuance, the Series D Preferred Stock shall be convertible into shares of the Common Stock, as follows:
Holders of Series D Preferred Stock may convert shares of Series D Preferred Stock held by them into shares of the Common Stock. The conversion price shall be $1.00 per share (the “Conversion Price”), subject to adjustments described in this Section 7. The number of shares of Common Stock receivable upon conversion of one (1) share of Series D Preferred Stock equals the Stated Value divided by the then-Conversion Price; provided, however, that, should the closing price, as reported on OTCMarkets.com (or its successor), of the Common Stock be less than $1.00 per share (the “Adjusted Conversion Price”), then the Conversion Price shall be adjusted such that the total number of shares of the Common Stock (the “Conversion Shares”) to be issued multiplied by the Adjusted Conversion Price equals the total Stated Value of the shares of Series D Preferred Stock converted. By way of example only:
Assumed Conversion Price: $1.00/share
Assumed Adjusted Conversion Price: $0.80/share
Assumed # of Shares Converted: 7,500,000 shares
Total Stated Value of Shares Converted: $6,000,000
$6,000,000 ÷ $0.80 = 7,500,000 Conversion Shares
[7,500,000 x $0.80 = $6,000,000]
Notwithstanding the foregoing, in the event that the common stock of the Company is not publicly traded on the date that is eighteen (18) months from issuance, then Holder shall have the right, but not the obligation, to exchange every 10,000 shares of Series D Preferred Stock held by such Holder for a $2,500.00 principal amount promissory note with a two-year term, which promissory note shall bear interest at 5% per annum until paid in full.
A conversion notice (the “Conversion Notice”) may be delivered to Company by the method of the Holder’s choice (including, but not limited to, email, facsimile, mail, overnight courier or personal delivery), and all conversions shall be cashless and not require further payment from the Holder
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If no objection is delivered from the Company to the Holder, with respect to any variable or calculation reflected in the Conversion Notice within 48 hours of delivery of the Conversion Notice, the Company shall have been thereafter deemed to have irrevocably confirmed and irrevocably ratified such Conversion Notice and waived any objection thereto. The Company shall deliver the shares of Common Stock from any conversion to the Holder within three (3) business days of Conversion Notice delivery. If the Company is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, then, upon request of the Holder, and provided that the shares to be issued are eligible for transfer under Rule 144 of the Securities Act of 1933, as amended (the “Securities Act”), or are effectively registered under the Securities Act, the Company shall cause its transfer agent to electronically issue the Common Stock issuable upon conversion to the Holder through the DTC Direct Registration System (“DRS”). If the Company is not participating in the DTC FAST program, then the Company agrees in good faith to apply and cause the approval for participation in the DTC FAST program.
(b)Limitation on Sales of Conversion Shares. Notwithstanding sales volume limitations set forth in Rule 144 of the Securities and Exchange Commission, during the six-month period immediately following the date of a Holder’s acquisition of Conversion Shares (the “Leak- out Period”), such Holder may dispose of such Conversion Shares such that such Conversion Shares shall be sold in monthly amounts not to exceed 1% of such Conversion Shares (the “Leak-out Monthly Limit”) during the Leak-out Period, not to exceed 1% of the Leak-Out Monthly Limit of Conversion Shares in any one day (the “Leak-out Daily Limit”).
During the Leak-out Period, except for sales of Conversion Shares in amounts that do not exceed the Monthly Leak-out Amount and/or the Leak-out Daily Amount, a Holder shall not, except as otherwise permitted in this Section 7, directly or indirectly, enter into any transaction for the disposition of the Conversion Shares.
If, during any calendar month within the Leak-out Period, a Holder has not engaged in one or more disposition transactions with respect to the Conversion Shares, the cumulative amount of which has resulted in less than the cumulative Monthly Leak-out Amount during the Leak-out Period then-to date, then such Holder shall have the right, but not the obligation, to engage in one or more additional disposition transactions, such that, at the conclusion of such additional disposition transaction(s), such Holder will have engaged in disposition transactions in an amount that does not exceed the cumulative Monthly Leak-out Amount during the Leak-out Period then-to date.
Any transferee of any of the Conversion Shares shall be subject to all of the terms and conditions of this Section 7 and, solely for such purposes, any such transferee shall be included in the definition of “Holder.”.
(c)Partial Conversion Permitted. Subject to Section 7(d), a Holder of shares of Series D Preferred Stock may convert all, or any portion from time to time, of such Holder’s shares of Series D Preferred Stock, should any such Holder exercise his, her or its rights of conversion.
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(d) Limitation on Conversions. In no event shall the Holder be entitled to convert any Series D Preferred Stock, such that the conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and the Holder’s affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of this Series D Preferred Stock or the unexercised or unconverted portion of any other security of the Company subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon conversion of Series D Preferred Stock with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and the Holder’s affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso of the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934 and Regulations 13D- G thereunder, except as otherwise provided in clause (2) of such proviso, provided, further, however, that the limitations on conversion may be waived by the Holder upon, at the election of the Holder, not less than 61 days’ prior notice to the Company, and the provisions of the conversion limitation shall continue to apply until such 61st day (or such later date, as determined by the Holder, as may be specified in such notice of waiver).
(e)Adjustment to Conversion Price for Stock Dividends, Consolidations and Subdivisions. In case the Company at any time after the first issuance of a share of the Series D Preferred Stock shall declare or pay on the Common Stock any dividend in shares of Common Stock, or effect a subdivision of the outstanding shares of the Common Stock into a greater number of shares of the Common Stock (by reclassification or otherwise than by payment of a dividend payable in shares of the Common Stock), or shall combine or consolidate the outstanding shares of the Common Stock into a lesser number of shares of the Common Stock (by reclassification or otherwise), then, and in each such case, the Conversion Price (as previously adjusted) in effect immediately prior to such declaration, payment, subdivision, combination or consolidation shall, concurrently with the effectiveness of such declaration, payment, subdivision, combination or consolidation, be proportionately adjusted.
(f)Adjustments for Reclassifications and Certain Reorganizations. In case the Company at any time after the first issuance of a share of the Series D Preferred Stock shall reclassify or otherwise change the outstanding shares of the Common Stock, whether by capital reorganization, reclassification or otherwise, or shall consolidate with or merge with or into any other corporation where the Company is not the surviving corporation but not otherwise, then, and in each such case, each outstanding share of the Series D Preferred Stock shall, immediately after the effectiveness of such reclassification, other change, consolidation or merger, be convertible into the type and amount of stock and other securities or property which the holder of that number of shares of the Common Stock into which such share of the Series D Preferred Stock would have been convertible before the effectiveness of such reclassification, other change, consolidation or merger would be entitled to receive in respect of such shares of the Common Stock as the result of such reclassification, other change, consolidation or merger.
(g)Reservation of Stock Issuable Upon Conversion. The Company shall at all times reserve and keep available out of its authorized but unissued shares of the Common Stock, solely for the purpose of effecting the conversion of the Series D Preferred Stock, such number of shares of the Common Stock as shall from time to time be sufficient to effect the conversion of all outstanding shares of the Series D Preferred Stock (the “Reserve Shares”); and if at any time the number of authorized but unissued shares of the Common Stock shall not be sufficient to effect the conversion of all outstanding shares of the Series D Preferred Stock, the Company will take such corporate action as is necessary to increase its authorized by unissued shares of the Common Stock to such number of shares as shall be sufficient for such purpose. The Holder shall have the right to directly instruct the Company’s transfer agent to explicitly reserve the Reserve Shares from the Company’s authorized shares of Common Stock, solely for satisfying the conversion of the Series D Preferred Stock.
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(h)Transfer Agent Instructions. The Holder shall have the right to directly instruct the Company’s transfer agent to explicitly reserve the Reserve Shares from the Company’s authorized shares of Common Stock, solely for satisfying the conversion of the Series D Preferred Stock. In the event that an opinion of counsel, such as, but not limited to, a Rule 144 opinion, is needed for any matter related to this Series D Preferred Stock or the Common Stock, the Holder has the right to have any such opinion provided by its own counsel.
Section 8. Redemption. The Series D Preferred Stock may be redeemed by the Company at any time for a cash purchase price equal to the liquidation preference as of the redemption date; provided, however, that the Company shall provide not less than five days’ written notice ( the “Redemption Notice”) to the Holder(s) of its intent to redeem the Series D Preferred Stock; provided further, however, that the Holder(s) shall have the right to deliver a Notice of Conversion prior to the date of redemption set forth in the Redemption Notice.
Section 9. Protection Provisions. So long as any shares of Series D Preferred Stock are outstanding, the Company shall not, without first obtaining the majority written consent of the holders of Series D Preferred Stock, alter or change the rights, preferences or privileges of the Series D Preferred Stock so as to affect adversely the holders of Series D Preferred Stock.
The Company hereby covenants and agrees that the Company will not, by amendment of its Amended and Restated Articles, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Certificate of Designation, and will at all times carry out all the provisions of this Certificate of Designation and take all action as may be required to protect the rights of the Holders of the Series D Preferred Stock.
Section 10. Status of Converted Stock. In the event any shares of the Series D Preferred Stock shall be converted pursuant to Section 7 above, the shares Series D Preferred Stock so converted shall be cancelled and shall revert to the Company’s authorized but unissued Series D Preferred Stock.
Section 11. Transferability. This Series D Preferred Stock shall be transferable and may be assigned by the Holders, to anyone of their choosing without the Company’s approval subject to applicable securities laws. Each Holder of the Series D Preferred Stock covenants not to engage in any unregistered public distribution of the Series D Preferred Stock when making any assignments.
Section 12. Notices. Any notice required hereby to be given to the Holders of shares of the Series D Preferred Stock shall be deemed given if sent by email or deposited in the United States mail, postage prepaid, and addressed to each holder of record at his, her or its address appearing on the books of the Company.
Section 13. Miscellaneous.
(a)The headings of the various sections and subsections of this Certificate of Designation are for convenience of reference only and shall not affect the interpretation of any of the provisions of this Certificate of Designation.
(b)Whenever possible, each provision of this Certificate of Designation shall be interpreted in a manner as to be effective and valid under applicable law and publish policy. If any provision set forth herein is held to be invalid, unlawful or incapable of being enforced by reason of any rule of law or public policy, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating or otherwise adversely affecting the remaining provisions of this Certificate of Designation.
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No provision herein set forth shall be deemed dependent upon any other provision unless so expressed herein. If a court of competent jurisdiction should determine that a provision of this Certificate of Designation would be valid or enforceable if a period of time were extended or shortened, then such court may make such change as shall be necessary to render the provision in question effective and valid under applicable law.
(c)Except as may otherwise be required by law, the shares of the Series D Preferred Stock shall not have any powers, designations, preferences or other special rights, other than those specifically set forth in this Certificate of Designation.
Section 14. Waiver. Any of the rights, powers or preferences of the holders of the Series D Preferred Stock may be waived by the affirmative consent or vote of the holders of at least a majority of the shares of Series D Preferred Stock then outstanding.
Section 15. No Other Rights or Privileges. Except as specifically set forth herein, the holder(s) of the shares of Series D Preferred Stock shall have no other rights, privileges or preferences with respect to the Series D Preferred Stock.
RESOLVED, FURTHER, that the president or any vice-president, and the secretary or any assistant secretary, of the Company be and they hereby are authorized and directed to prepare and file this Certificate of Designation of Preferences, Rights and Limitations in accordance with the foregoing resolution and the provisions of the Wyoming Business Corporation Act.
IN WITNESS WHEREOF, the undersigned has executed this Certificate of Designation this _____ day of _______, 2026.
NEXTEL MEDICAL CORP.
By: ________________________________
Matthew Dwyer
Chief Executive Officer
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EXHIBIT C
Gross Revenue Projections of Target for the Post-Closing Period
To be provided separately.
C-1
EXHIBIT 6.02(a)
CERTIFICATE OF THE MANAGING MEMBER OF TARGET
[Pursuant to Section 6.02(a)]
Jumpstart Rx, LLC
a Tennessee limited liability company
The undersigned, Casey Barksdale, the duly elected and acting Managing Member of Jumpstart Rx, LLC, a Tennessee limited liability company (“Target”), hereby certify and affirm that each of the following is true and correct:
1. The representations and warranties of Target in that certain Plan of Agreement of Merger (the “Plan of Merger”) to which this Certificate relates are true and correct in all material respects on the date of this Certificate and, except for those representations and warranties which address matters only as of a particular date, with the same force and effect as if made as of this date.
2. Target is a limited liability company duly organized and existing under the laws of the State of Tennessee, and has the corporate power and authority to own its properties and carry on its business in the manner in which such business is conducted.
3. The execution, delivery and performance by Target of the Plan of Merger, in accordance with the terms and provisions of the Plan of Merger, have been duly authorized by appropriate corporate action of Target.
4. Target has full power, right and authority to enter into the Plan of Merger and to perform its obligations under the Plan of Merger and the Plan of Merger is the legal, valid and binding obligation of Target and is enforceable against Target in accordance with its terms.
5. The membership interests of Target that are subject to the Plan of Merger are fully paid and non-assessable and, when transferred and sold on the Closing Date of the Plan of Merger, will be free and clear of any liens, claims and encumbrances.
Certified and affirmed this ____ day of ____________, 2026.
___________________________________
Casey Barksdale, Managing Member
Jumpstart Rx, LLC
(a Tennessee limited liability company)
EXHIBIT 6.02(b)
CERTIFICATE OF THE MANAGING MEMBER OF TARGET
[Pursuant to Section 6.02(b)]
Jumpstart Rx, LLC
a Tennessee limited liability company
The undersigned, Casey Barksdale, the duly elected and acting Managing Member of Jumpstart Rx, LLC, a Tennessee limited liability company (“Target”), hereby certify and affirm that each of the following is true and correct:
1. Target has performed or complied with, in all material respects, with all agreements and covenants required of it by that certain Plan and Agreement of Merger (the “Plan of Merger”) to which this Certificate relates.
2. The Members of Target have approved the merger contemplated by the Plan of Merger to which this Certificate relates, in accordance with the laws of the State of Tennessee.
Certified and affirmed this ____ day of _______________, 2026.
___________________________________
Casey Barksdale, Managing Member
Jumpstart Rx, LLC
(a Tennessee limited liability company)
EXHIBIT 6.03(a)
CERTIFICATE OF THE CHIEF EXECUTIVE OFFICER OF PARENT
AND ORGANIZER OF MERGER SUB
[Pursuant to Section 6.03(a)]
Nextel Medical Corp.
(f/k/a Exousia Pro, Inc. and Marijuana, Inc.)
a Florida corporation
JStart Merger Sub, LLC
a Tennessee limited liability company
The undersigned, Matthew Dwyer, the duly elected and acting Chief Executive Officer of Nextel Medical Corp., f/k/a Exousia Pro, Inc. and Marijuana, Inc., a Florida corporation (“Parent”), and the Organizer of JStart Merger Sub, LLC, a Tennessee limited liability company (“Merger Sub”), respectively, hereby certifies and affirms that each of the following is true and correct:
1. The representations and warranties of Parent and Merger Sub contained in that certain Plan and Agreement of Merger (the “Plan of Merger”) to which this Certificate relates are true and correct in all material respects on the date of this Certificate and, except for those representations and warranties which address matters only as of a particular date, with the same force and effect as if made as of this date.
2. Parent is a corporation duly organized and existing under the laws of the State of Nevada, and has the power and authority to own its properties and carry on its business in the manner in which such business is conducted. Merger Sub is a limited liability company duly organized and existing under the laws of the State of Tennessee, and has the power and authority to own its properties and carry on its business in the manner in which such business is conducted.
3. The execution, delivery and performance by Parent and Merger Sub of the Plan of Merger, in accordance with the terms and provisions of the Plan of Merger, have been duly authorized by appropriate corporate action of Parent and Merger Sub.
4. Each of Parent and Merger Sub has full power, right and authority to enter into the Plan of Merger and to perform their respective obligations under the Plan of Merger, and the Plan of Merger is the legal, valid and binding obligation of each of Parent and Merger Sub and is enforceable against Parent and Merger Sub in accordance with its terms.
5. The shares of Parent Voting Stock to be issued pursuant to the Plan of Merger will be, upon issuance and delivery pursuant to the terms of the Plan of Merger, validly issued, fully paid and non-assessable.
Certified and affirmed this ____ day of ___________, 2026.
_________________________________________
Matthew Dwyer, Chief Executive Officer
of Nextel Medical Corp. (f/k/a Exousia Pro, Inc.
and Marijuana, Inc., a Florida corporation) and
Organizer of JStart Merger Sub, LLC,
a Tennessee limited liability company
EXHIBIT 6.03(b)
CERTIFICATE OF THE CHIEF EXECUTIVE OFFICER OF PARENT
AND ORGANIZER OF MERGER SUB
[Pursuant to Section 6.03(b)]
Nextel Medical Corp.
(f/k/a Exousia Pro, Inc. and Marijuana, Inc.)
a Florida corporation
JStart Merger Sub, LLC
a Tennessee limited liability company
The undersigned, Matthew Dwyer, the duly elected and acting Chief Executive Officer of Nextel Medical Corp., f/k/a Exousia Pro, Inc. and Marijuana, Inc., a Florida corporation (“Parent”), and the Organizer of JStart Merger Sub, LLC, a Tennessee limited liability company (“Merger Sub”), respectively, hereby certifies and affirms that each of the following is true and correct:
1. Parent and Merger Sub have performed or complied with, in all material respects, with all agreements and covenants required of them by that certain Plan and Agreement of Merger (the “Plan of Merger”) to which this Certificate relates.
Certified and affirmed this ____ day of ___________________, 2026.
_________________________________________
Matthew Dwyer, Chief Executive Officer
of Nextel Medical Corp. (f/k/a Exousia Pro, Inc.
and Marijuana, Inc., a Florida corporation) and
Organizer of JStart Merger Sub, LLC,
a Tennessee limited liability company
Exhibit 6.37
PLAN AND AGREEMENT OF MERGER
Plan and Agreement of Merger, dated as of May 29, 2026 (the “Agreement”), among Nextel Medical Corp., f/k/a Exousia Pro, Inc. and Marijuana, Inc., a Florida corporation (“Parent”), I40 Merger Sub, LLC, a Tennessee limited liability company wholly owned by Parent (“Merger Sub”), and Island 40 Group, LLC, a Tennessee limited liability company (“Target”). Merger Sub and Target being hereinafter collectively referred to as the “Constituent Companies”.
WHEREAS, this Agreement, when consummated, would result in Parent’s having acquired a business and assets valued, by agreement, at $6,000,000;
WHEREAS, the Parent and Merger Sub and the members of Target (the “Members”) have approved the acquisition of Target by Parent;
WHEREAS, in furtherance of such acquisition, the Board of Directors of Parent and Merger Sub and the Members have each approved the merger of Target into Merger Sub (the “Merger”), pursuant to an Agreement of Merger in the form attached hereto as Exhibit A (the “Merger Agreement”), and the transactions contemplated hereby, in accordance with the applicable provisions of the statutes of the State of Tennessee and upon the terms and subject to the conditions set forth herein; and
WHEREAS, for Federal income tax purposes, it is intended that the Merger shall qualify as a reorganization within the meaning of Section 368(a)(1)(A) and 368(a)(2)(D) of the Internal Revenue Code of 1986, as amended (the “Code”); and
WHEREAS, each of the parties to this Agreement desires to make certain representations, warranties and agreements in connection with the Merger and also to prescribe various conditions thereto.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound thereby, Parent, Merger Sub and Target hereby agree as follows:
1.The Merger.
1.01The Merger. At the Effective Time (as defined in Section 1.02) and subject to and upon the terms and conditions of this Agreement and the Merger Agreement, Merger Sub shall be merged with and into Target, the separate corporate existence of Merger Sub shall cease, and Target shall continue as the surviving company, in accordance with the applicable provisions of the Tennessee Business Corporation Act (the “Tennessee Law”).
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Target, as the surviving company after the Merger, is hereinafter sometimes referred to as the “Surviving Company”.
1.02Effective Time. As promptly as practicable after the satisfaction or waiver of the conditions set forth in Section 6, and provided that this Agreement has not been terminated or abandoned pursuant to Section 8, the Constituent Companies shall cause the Merger to be consummated by filing a Certificate of Merger (the “Certificate of Merger”) with the office of the Secretary of State of Tennessee, in such form as required by, and executed in accordance with, the relevant provisions of the Tennessee Law.
Subject to, and in accordance with, the Tennessee Law, the Merger will become effective at the date and time the Certificate of Merger is filed with the office of the Secretary of State of the State of Tennessee or such later time or date as may be specified in the Certificate of Merger (the “Effective Time”). Each of the parties shall use its best efforts to cause the Merger to be consummated as soon as practicable following the fulfillment or waiver of the conditions specified in Section 6 hereof.
1.03Effect of the Merger. At the Effective Time, the effect of the Merger shall be as provided in the applicable provisions of the Tennessee Law. Without limiting the generality of the foregoing, and subject thereto, at the Effective Time, except as otherwise provided herein, all the property, rights, privileges, powers and franchises of Target shall vest in the Surviving Company, and all debts, liabilities and duties of Target shall become the debts, liabilities and duties of the Surviving Company.
1.04Certificate of Formation; Operating Agreement.
(a)At the Effective Time, the Certificate of Formation of Target, as in effect immediately prior to the Effective Time, shall be the Certificate of Formation of the Surviving Company until thereafter amended as provided by law and such Certificate of Formation.
(b)The Operating Agreement of Target, as in effect immediately prior to the Effective Time, shall be the Operating Agreement of the Surviving Company until thereafter amended as provided by law, the Certificate of Formation of the Surviving Company and such Operating Agreement.
1.05Managers. The managers of Target immediately upon the Effective Time shall hold office in accordance with the Articles of Organization and Operating Agreement of the Surviving Company, in each case until their respective successors are duly elected or appointed and qualified.
1.06Conversion of Securities. At the Effective Time, by virtue of the Merger and without any additional action on the part of Merger Sub and Target, the following shall occur:
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(a)Each membership interest of Target (the “Target Interests”) held in the treasury of Target and each such share of Target Interests owned by Merger Sub, Parent or any direct or indirect wholly-owned subsidiary of Parent or of Merger Sub immediately prior to the Effective Time shall be cancelled and extinguished without any conversion thereof and no payment shall be made with respect thereto.
(b)Each Target Interest which is outstanding immediately prior to the Effective Time, other than those shares of Target Interests cancelled as set forth in subsection (a) above, shall be converted into (1) the right to receive shares of the $.001 par value per share Series D Voting Convertible Preferred Stock of Parent (the “Parent Voting Stock”), in accordance with the ownership schedule included in the Target Disclosure Schedule, for a total of 4,500,000 shares of Parent Voting Stock (these shares of Parent Voting Stock are referred to as the “Closing Shares”) and (b) the sum of cash, in accordance with the ownership schedule included in the Target Disclosure Schedule, for a total of $1,500,000 in cash (the “Closing Amount”). The Closing Shares and the Closing Amount and the are referred to, collectively, as the “Merger Consideration”.
The Parent Voting Stock is to have the preferences, rights, qualifications, limitations and restrictions set forth the Certificate of Designation of the Parent Voting Stock attached hereto as Exhibit B and made a part hereof by this reference.
(c)The membership interests of Merger Sub issued and outstanding immediately prior to the Effective Time shall be converted into membership interests of the Surviving Company, which shall be the only membership interests of the Surviving Company outstanding after the Effective Time, resulting in the Surviving Company being wholly owned by Parent after the Effective Time.
1.07Surrender of and Exchange of Target Interests.
(a)As soon as practicable after the Effective Time, the certificates representing Target Interests issued and outstanding at the Effective Time (or affidavits of lost certificates in a form reasonably acceptable to Parent) shall be surrendered for exchange to the Surviving Company. Until so surrendered for exchange, each such stock certificate nominally representing Target Interests shall be deemed for all purposes (except for payment of dividends thereon or redemption thereof) to evidence the ownership of the number of shares of Parent Voting Stock which the holder would be entitled to receive upon its surrender to the Surviving Company.
(b) No redemption with respect to Parent Voting Stock shall be made with respect to any unsurrendered certificates representing Target Interests with respect to which the shares of Parent Voting Stock shall have been issued in the Merger, until such certificates shall be surrendered as provided herein.
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(c)All rights to receive the Merger Consideration into which shares of Target Interests shall have been converted pursuant to this Section 1 shall be deemed to have been paid or issued, as the case may be, in full satisfaction of all rights pertaining to such shares of Target Interests.
1.08Closing. The closing (the “Closing”) of the transactions contemplated by this Agreement shall take place (a) at the offices of Target at 10:00 a.m., local time, on the third business day immediately following the date on which the last of the conditions set forth in Section 6 is fulfilled or waived, or (b) at such other time and place and on such other date as Parent and Target shall agree (the “Closing Date”).
2.Further Agreements.
2.01Access to Information; Confidentiality.
(a)From the date hereof to the Effective Time, each of Parent, Merger Sub and Target shall, and shall cause their respective subsidiaries, affiliates, officers, directors, employees, auditors and agents to afford the officers, employees and agents of one another complete access at all reasonable times to one another’s officers, employees, agents, properties, offices, plants and other facilities and to all books and records, and shall furnish one another with all financial, operating and other data and information as each, through its officers, employees or agents, may reasonably request; provided, however, that no party shall be required to provide access or furnish information which it is prohibited by law or contract to provide or furnish.
(b)Each of Parent, Merger Sub and Target shall, and shall cause their respective affiliates and their respective officers, directors, employees and agents to hold in strict confidence all data and information obtained by them from one another or their respective subsidiaries, affiliates, directors, officers, employees and agents (unless such information is or becomes readily ascertainable from public or published information or trade sources or public disclosure or such information is required by law) and shall insure that such officers, directors, employees and agents do not disclose such information to others without the prior written consent of Parent, Merger Sub or Target, as the case may be.
(c)In the event of the termination of this Agreement, Parent, Merger Sub and Target shall, and shall cause their respective affiliates, officers, directors, employees and agents to (1) return every document furnished to them by one another or any of their respective subsidiaries, affiliates, officers, directors, employees and agents in connection with the transactions contemplated hereby and any copies thereof, and (2) shall cause others to whom such documents may have been furnished to return such documents and any copies thereof any of them may have made.
(d)No investigation pursuant to this Section 2 shall affect any representations or warranties of the parties herein or the conditions to the obligations of the parties hereto.
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2.02Notification of Certain Matters. Target shall give prompt notice to Parent, and Parent shall give prompt notice to Target, of (a) the occurrence or non-occurrence of any event, the occurrence or non-occurrence of which would be likely to cause any representation or warranty contained in this Agreement to be untrue or inaccurate, and (b) any failure of Target, Parent or Merger Sub, as the case may be, to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by it hereunder; provided, however, that the delivery of any notice pursuant to this Section 2 shall not limit or otherwise affect the remedies available hereunder to the party receiving such notice.
2.03.Bonus Closing Amount; Series D Claw-Back. Parent and Target agree that, should Target’s gross revenues for the 18-month period immediately following the Closing (the “Post-Closing Period”) exceed by 10% or more the gross revenue projections for the Post-Closing Period set forth in Exhibit C attached hereto and made a part hereof, then, within 30 days after the expiration of the Post-Closing Period, Parent shall pay to the Members the sum of $750,000 in cash (the “Bonus Closing Amount”).
Parent and Target further agree that, should Target’s gross revenues for the Post-Closing Period fail to achieve by 10% or more the gross revenue projections for the Post-Closing Period set forth in Exhibit C, then Parent shall have the right to cancel a total of 900,000 Closing Shares (the “Series D Claw-Back Shares”), the Series D Claw-Back Shares to be cancelled pro rata among the holders of the Closing Shares at the time of such cancellation.
2.03ANuevistramed. At the Closing, and as further consideration of Parent’s entering into this Agreement, Target’s business known as “Nuevistramed” shall be owned exclusively by Target and shall not be subject to any lien or other encumbrance.
2.04Employment Agreements. At or before the Closing, (a) Target and Casey Barksdale and (b) Target and one other key employee of Target shall have entered into an employment agreement on such terms and conditions as may be acceptable to Mr. Barksdale and such other key employee; provided, however, that the terms and conditions of such employment agreements shall be acceptable to Parent, in its good faith discretion.
2.05Managers of Surviving Company. At the Effective Time, Casey Barksdale shall be elected as the manager of Surviving Company, to serve until the earlier of their removal or resignation.
2.06Agreement With Respect to Post-Closing Operations. At the Effective Time, operating policies of Surviving Company shall include a policy adopted by the Board of Directors of Parent that all expenditures, or series of expenditures, of Surviving Company in excess of $20,000 shall be approved by the Chief Financial Officer of Parent.
2.07Financial Statements of Target. At or before the Closing, Target shall, at its sole expense (the “Audit Expense Amount”), deliver to Parent PCAOB-standard audited financial statements for the years ended December 31, 2025 and 2024 (the “Target Audited Financial Statements”), and unaudited financial statements for the interim period ending on the Closing Date, which interim financial statements shall have been prepared in accordance with generally accepted accounting principles (GAAP) and capable of PCAOB audit.
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Notwithstanding the further agreement set forth in the foregoing paragraph, with respect to the reimbursement of the Audit Expense Amount by Parent to Target, Parent and Target agree, as follows:
(a)Should Target’s independent PCAOB auditor determine, in good faith, that the unaudited financial statements of Target are not able to be audited, then Parent agrees that, on or before the date that is 60 days immediately following the date of such determination, it shall reimburse Target an amount equal to 50% of the amount of Target’s payments to such PCAOB auditor; or
(b)Should Parent fail to consummate the Closing of this Agreement, then Parent agrees that, on or before the date that is 60 days immediately following the date of such failure, it shall reimburse Target an amount equal to 100% of the amount of Target’s payments to such PCAOB auditor; or
(c)Should Parent and Target consummate this Agreement, Parent agrees that, on or before the date that is 60 days immediately following the Closing Date, it shall reimburse Target for the full Audit Expense Amount.
2.08Certificate of Designation. At or before the Closing, Parent shall have filed a Certificate of Designation for the Parent Voting Stock, its new Series D Voting Convertible Preferred Stock (the “Designation”), in the form of Exhibit B attached hereto.
2.09Current Reports. Target shall file timely with OTC Markets supplemental reports with respect to (a) the execution of this Agreement and (b) the Closing of this Agreement.
2.10Agreement With Respect to Assets of Target. Prior to the Closing, Target shall not sell, transfer or otherwise dispose of any of the assets owned by Target as of the date of this Agreement.
2.11Agreement With Respect to Employees of Target. Parent and Target agree that Parent shall have no obligation to fund the payroll of Target at any time following the Closing.
2.12Further Action. Upon the terms and subject to the conditions hereof, each of the parties hereto shall use its best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all other things necessary, proper or advisable to consummate and make effective as promptly as practicable the transactions contemplated by this Agreement.
2.13Public Announcements. No party shall issue a press release or otherwise make any public statements with respect to the Merger, without the prior consent of the other parties; provided, however, that Parent may, without the prior consent of any party, issue a press release or otherwise make public statements with respect to the Merger, should such press release or public statements be deemed, in good faith, necessary by Parent to assure its compliance with applicable securities laws.
3.Representations and Warranties of Parent and Merger Sub. Parent and Merger Sub hereby, jointly and severally, represent and warrant to Target that, except as set forth in the Disclosure Schedule of Parent and Merger Sub delivered herewith to Target (the “Parent Disclosure Schedule”):
3.01Organization and Qualification; Subsidiaries. Each of Parent and Merger Sub is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation and has the requisite corporate power and authority and is in possession of all franchises, grants, authorizations, licenses, permits, easements, consents, certificates, approvals and orders to own, operate or lease the properties that it purports to own, operate or lease and to carry on its business as it is now being conducted, and is duly qualified as a foreign entity to do business, and is in good standing, in each jurisdiction where the character of its properties owned, operated or leased or the nature of its activities makes such qualification necessary, except for such failures which, when taken together with all other such failures, would not have a Material Adverse Effect. Neither Parent nor Merger Sub has received any notice of proceedings relating to revocation or modification of any such franchises, grants, authorizations, licenses, permits, easements, consents, certificates, approvals or orders.
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The term “Material Adverse Effect”, as used herein, means any change in or effect on the business of Parent or Merger Sub (including intangible properties), prospects, condition (financial or otherwise), assets or subsidiaries, taken as a whole. Parent has the subsidiaries set forth in the Parent Disclosure Schedule.
3.02Formation and Governing Documents. Parent shall, as part of the Parent Disclosure Schedule, furnish to Target a complete and correct copy of the formation and governing documents, each as amended to date, of Parent and Merger Sub. Such formation and governing documents are in full force and effect.
3.03Capitalization. As of the date of this Agreement, the authorized capital stock of Parent consists of: 250,000,000 shares of common stock, of which 56,048,470 shares are issued and outstanding; and 15,000,000 shares of preferred stock, of which one (1) share of Series C Preferred Stock is issued and outstanding. All currently issued shares of capital stock of Parent are validly issued, fully paid and non-assessable. No shares of capital stock of Parent are held in the treasury of Parent or by subsidiaries of Parent. Except as set forth in the Parent Disclosure Schedule, no shares of capital stock of Parent are reserved for future issuance.
Except as set forth in the Parent Disclosure Schedule, each of the outstanding securities of each of Parent’s corporate subsidiaries is duly authorized, validly issued, fully paid and non-assessable and such securities owned by Parent are owned free and clear of all security interests, liens, claims, pledges, agreements, limitations on Parent’s voting rights, charges or other encumbrances of any nature whatsoever.
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3.04Authority Relative to this Agreement. Each of Parent and Merger Sub has all necessary corporate power and authority to enter into this Agreement and to carry out its obligations hereunder. The execution and delivery of this Agreement by Parent and Merger Sub and the consummation by Parent and Merger Sub of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of Parent and Merger Sub other than filing and recording of appropriate merger documents as required by the Tennessee Law. This Agreement has been duly executed and delivered by Parent and Merger Sub and, assuming the due authorization, execution and delivery by Target, constitutes a legal, valid and binding obligation of each such corporation.
3.05No Conflict; Required Filings and Consents.
(a)The execution and delivery of this Agreement by Parent and Merger Sub do not, and the performance of this Agreement by Parent and Merger Sub shall not, (1) conflict with or violate either the formation and governing documents of Parent or Merger Sub, (2) conflict with or violate any law, rule, regulation, order, judgment or decree applicable to Parent or Merger Sub or by which either of them or their respective properties is bound or affected, or (3) result in any breach of or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, or result in the creation of a lien or encumbrance on any of the property or assets of Parent or Merger Sub pursuant to any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument or obligation to which Parent or Merger Sub is a party or by which Parent or Merger Sub or any of their respective properties is bound or affected, except for any such breaches, defaults or other occurrences which would not, individually or in the aggregate, have a Material Adverse Effect.
(b)The execution and delivery of this Agreement by Parent and Merger Sub does not, and the performance of this Agreement by Parent and Merger Sub shall not, require any consent, approval, authorization or permit of, or filing with or notification to, any governmental or regulatory authority, domestic or foreign, except for applicable requirements of the Securities Act, the Securities Exchange Act of 1934 (the “Exchange Act”) and State securities laws (“Blue Sky Laws”).
3.06Compliance. Neither Parent nor Merger Sub is in conflict with, or in default or violation of, (a) its formation and governing documents or equivalent organizational documents, (b) any law, rule, regulation, order, judgment or decree applicable to Parent or Merger Sub or by which its or any of their respective properties is bound or affected, including, without limitation, health and safety, environmental, civil rights laws and regulations and zoning ordinances and building codes, or (c) any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise, easement, consent, order or other instrument or obligation to which Parent or Merger Sub is a party or by which Parent or Merger Sub or any of their respective properties is bound or affected, except for any such conflicts, defaults or violations which would not, individually or in the aggregate, have a Material Adverse Effect.
3.07Tax Treatment. Neither Parent nor Merger Sub, nor to the knowledge of Parent, any of their affiliates has taken or agreed to take action that would prevent the merger contemplated by this Agreement from constituting, to the extent possible, a tax-free reorganization under Sections 368(a)(1)(A) and 368(a)(2)(D) of the Code.
3.08No Liabilities. As of the Closing, Merger Sub will not have any liability of any kind, whether known or unknown, asserted or unasserted, absolute or contingent, accrued and unaccrued, liquidated or unliquidated, due or became due, by virtue of contract, statute, regulation, law, equity or otherwise.
3.09OTC Markets Trading. Parent’s common stock currently trades as a, “OTCID” stock on the OTCID trading platform (symbol: MAJI) of OTC Markets and Parent meets all issuer and equity security requirements to permit a FINRA member to quote Parent’s common stock thereon, and, to Parent’s knowledge, shall be entitled to continue to be so quoted following the merger contemplated by this Agreement.
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3.10Shareholder Claims. There are no existing claims against Parent by any current or former shareholder of Parent, and, to Parent’s knowledge, there exist no facts or circumstances reasonably likely to result in any such claims.
3.11Operations of Merger Sub. Merger Sub is a direct, wholly-owned subsidiary of Parent, was formed solely for the purpose of engaging in the transactions contemplated by this Agreement, has engaged in no other business activities and has conducted its operations only as contemplated by this Agreement.
3.12Powers of Attorney and Suretyships. Parent does not have (a) any general powers of attorney outstanding, whether as grantor or grantee thereof, (b) except as reflected in its financial statements, any obligation or liability, whether actual, accrued, accruing, contingent or otherwise, as guarantor, surety, co-signed, endorser, co-maker, indemnitor, or otherwise in respect of the obligation of any person, corporation, partnership, joint venture, association, organization or other entity.
3.13OTC Markets Filings; Financial Statements.
(a)Parent has filed all forms, reports and documents required to be filed with OTC Markets, Inc. (“OTC Markets”) and has heretofore delivered to Target, in the form filed with the OTC Markets, (1) its Amended Annual Report for the year ended December 31, 2025; (2) all other reports filed by Parent with OTC Markets since December 31, 2025; and (3) all amendments and supplements to all such reports filed by Parent with OTC Markets since December 31, 2025 (collectively, the “Parent OTC Markets Reports”).
The Parent OTC Markets Reports (1) were, and will be, prepared in accordance with the requirements of OTC Markets and (2) did not, and will not, at the time they were, or will be, filed, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.
(b)Each consolidated financial statement (including, in each case, any related notes thereto) contained in the Parent OTC Markets Reports has been, and will be, prepared in accordance with generally accepted accounting principles applied on a consistent basis throughout the periods involved (except as may be indicated in the notes thereto) and each fairly presents, and will present, the financial position of Parent and its subsidiaries as at the respective dates thereof and the results of its operations and changes in financial position for the periods indicated, except that the unaudited interim financial statements were or are subject to normal and recurring year-end adjustments which were not or are not expected to be material in amount.
(c)Except as and to the extent set forth on the consolidated balance sheet of Parent and its subsidiaries as at December 31, 2025, including the notes thereto (the “2025 Balance Sheet”), neither Parent nor any of its subsidiaries has any liabilities or obligations of any nature (whether accrued, absolute, contingent or otherwise) which would be required to be reflected on a balance sheet, or in the notes thereto, prepared in accordance with generally accepted accounting principles, except for liabilities or obligations incurred in the ordinary course of business since the Balance Sheet Date, which would not, individually or in the aggregate, have a Material Adverse Effect.
(d)Parent has heretofore furnished to Target a complete and correct copy of any amendments or modifications, which have not yet been filed with OTC Markets, to agreements, documents or other instruments which previously had been filed by Parent with OTC Markets.
3.14Absence of Litigation. Except as disclosed in the Parent Disclosure Schedule, there are no claims, actions, proceedings or investigations pending or, to the best knowledge of Parent, threatened against Parent or any of its subsidiaries, or any properties or rights of Parent or any of its subsidiaries, before any court, arbitrator, or administrative, governmental or regulatory authority or body, domestic or foreign, that, individually or in the aggregate, would have a Material Adverse Effect. As of the date hereof, neither Parent nor any of its subsidiaries nor any of their properties is subject to any order, writ, judgment, injunction, decree, determination or award having a Material Adverse Effect.
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3.15Absence of Certain Changes or Events. Since the Balance Sheet Date, except as contemplated or permitted by this Agreement or disclosed in Parent OTC Markets Reports filed since that date and through the date hereof, Parent and its subsidiaries have conducted their businesses only in the ordinary course and in a manner consistent with past practice and, since such date, there has not been (a) any change in the financial condition, results of operations, business or prospects of Parent or any of its subsidiaries having a Material Adverse Effect, (b) any damage, destruction or loss (whether or not covered by insurance) with respect to any assets of Parent or any of its subsidiaries having a Material Adverse Effect, (c) any material change by Parent in its accounting methods, principles or practices, (d) any revaluation by Parent of any of its assets, including, without limitation, writing down the value of inventory or any notes, accounts receivable or other investments which would, individually or in the aggregate, exceed five percent of the total assets of Parent as reflected on the balance sheet in the 2025 Balance Sheet; (e) any declaration, setting aside or payment of any dividends or distributions in respect of shares of Parent Voting Stock or any redemption, purchase or other acquisition of any of its securities; or (f) any change in the status of any litigation, claims, actions, proceedings or investigations pending or, to the best knowledge of Parent, threatened against Parent or any of its subsidiaries, which, as a result of such change, will have a Material Adverse Effect.
3.16Environmental Matters. To the best of Parent’s knowledge, there are no environmental liabilities (whether accrued, absolute, contingent or otherwise) of Parent.
3.17Labor Matters. Except as set forth in the Parent Disclosure Schedule, (a) there are no controversies pending or, to the knowledge of Parent or any of its subsidiaries, threatened, between Parent or any of its subsidiaries and any of their respective employees, which controversies have a Material Adverse Effect; (b) neither Parent nor any of its subsidiaries is a party to any collective bargaining agreement or other labor union contract applicable to persons employed by Parent or its subsidiaries nor does Parent or any of its subsidiaries know of any activities or proceedings of any labor union to organize any such employees; (c) neither Parent nor any of its subsidiaries has breached or otherwise failed to comply with any provision of any such agreement or contract and there are no grievances outstanding against any such parties under any such agreement or contract; (d) there are no unfair labor practice complaints pending against Parent or any of its subsidiaries before the National Labor Relations Board or any current union representation questions involving employees of Parent or any of its subsidiaries; and (e) neither Parent nor any of its subsidiaries has any knowledge of any strikes, slowdowns, work stoppages, lockouts, or threats thereof, by or with respect to any employees of Parent or any of its subsidiaries.
3.18Contracts. The Parent Disclosure Schedule lists or describes all material contracts or arrangements to which Parent or any subsidiary is a party, or by which it is bound, as of the date hereof. All such contracts and arrangements are in full force and effect and there has been no notice of termination or threatened termination with respect to any such contracts and arrangements, whether or not termination is permitted by the terms thereof, and no event has occurred which, with the giving of notice or the lapse of time, or both, would constitute a breach or default under any such contract or arrangement, except for such breaches, defaults and events as to which requisite waivers or consents have been obtained.
3.19Title to Properties. Except as set forth in the Parent Disclosure Schedule, Parent has, and at the Effective Time will have, good and marketable title to the equipment and other property shown as assets on its records and books of account as of the Balance Sheet Date, free and clear of all liens, encumbrances and charges.
3.20Patents. To the best knowledge of Parent, Parent or its subsidiaries own or possess adequate licenses or other valid rights to use all patents, patent rights, inventions, designs, processes, formulae and other proprietary information used or held for use in connection with the business of Parent or any of its subsidiaries as currently being, or proposed to be, conducted and is unaware of any assertions or claims challenging the validity of any of the foregoing which would have a Material Adverse Effect. The conduct of the business of Parent and its subsidiaries as now conducted or proposed to be conducted does not and will not conflict with any patents, patent rights, licenses, trademarks, trademark rights, trade names, trade name rights or copyrights of others in any way which would have a Material Adverse Effect. No material infringement of any proprietary right owned by or licensed by or to Parent or any of its subsidiaries is known to Parent which would have a Material Adverse Effect.
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3.21Taxes. Except as set forth in the Parent Disclosure Schedule, Parent and Merger Sub have filed all federal and state tax returns and reports and, to the best of Parent’s knowledge, all state, local and foreign tax returns and reports required to be filed by them and have paid and discharged all taxes, including sales and use tax, shown as due thereon and have paid all applicable state and local ad valorem taxes as are due, except such as are being contested in good faith by appropriate proceedings and except for such filings, payments or other occurrences which would not have a Material Adverse Effect. Neither the IRS nor any other taxing authority or agency is now asserting or, to the best of Parent’s knowledge, threatening to assert against Parent or any of its subsidiaries any deficiency or claim for additional taxes or interest thereon or penalties in connection therewith. Neither Parent nor any of its subsidiaries has granted any waiver of any statute of limitations with respect to, or any extension of a period for the assessment of, any federal, state, county, municipal or foreign income tax.
3.22Brokers; Finders. No person will have, as a result of the transactions contemplated hereby, any valid right, interest or claim against or upon Parent and/or Merger Sub for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of Parent and/or Merger Sub.
3.23Full Disclosure. No statement contained in any document, certificate or other writing furnished or to be furnished by Parent or Merger Sub to Target pursuant to the provisions of this Agreement contains or shall contain any untrue statement of a material fact or omits or shall omit to state any material fact necessary, in light of the circumstances under which it was or may be made, in order to make the statements herein or therein not misleading.
4.Representations and Warranties of Target. Target hereby represents and warrants to Parent and Merger Sub that, except as set forth in the Disclosure Schedule of Target delivered to Parent and Merger Sub (the “Target Disclosure Schedule”):
4.01Organization and Qualification; Subsidiaries. Target is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Tennessee and has the requisite corporate power and authority and is in possession of all franchises, grants, authorizations, licenses, permits, easements, consents, certificates, approvals and orders to own, operate or lease the properties that it purports to own, operate or lease and to carry on its business as it is now being conducted, and is duly qualified as a foreign entity to do business, and is in good standing, in each jurisdiction where the character of its properties owned, operated or leased or the nature of its activities makes such qualification necessary, except for such failures which, when taken together with all other such failures, would not have a Material Adverse Effect. Target has not received any notice of proceedings relating to the revocation or modification of any such franchises, grants, authorizations, licenses, permits, easements, consents, certificates, approvals or orders.
The term “Material Adverse Effect” as used in this Section 4, means any change in or effect on the business of Target that is or is reasonably likely to be materially adverse to the business, operations, properties (including intangible properties), prospects, condition (financial or otherwise), assets or liabilities of Target taken as a whole. Target has no subsidiaries.
4.02Articles of Organization and Operating Agreement. Target shall, as part of the Target Disclosure Schedule, furnish to Parent a complete and correct copy of the Certificate of Formation and Operating Agreement, each as amended to date, of Target. Such Articles of Organization and Operating Agreement are in full force and effect.
4.03Capitalization. The ownership of Target is as set forth in the Target Disclosure Schedule, which information is specifically made a part hereof. As of the date of this Agreement, all membership interests, including the Target Interests, are validly issued, fully paid and non-assessable; no membership interests are held in the treasury of Target. Except as set forth in the Target Disclosure Schedule, there are no options, warrants or other rights, agreements, arrangements or commitments of any character relating to the issued or unissued membership interests of Target or obligating Target to issue or sell any membership interest of, or other equity interests in, Target. Except as set forth in the Target Disclosure Schedule, there are no outstanding contractual obligations of Target to repurchase, redeem or otherwise acquire any the Target Interests.
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4.04Authority Relative to this Agreement. Target has all necessary corporate power and authority to enter into this Agreement and to carry out its obligations hereunder. The execution and delivery of this Agreement by Target and the consummation by Target of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of Target subject to the approval of the Merger and adoption of this Agreement by the Members in accordance with the Tennessee Law.
This Agreement has been duly executed and delivered by Target and, assuming the due authorization, execution and delivery by Parent and Merger Sub, constitutes a legal, valid and binding obligation of Target.
4.05No Conflict; Required Filings and Consents.
(a)The execution and delivery of this Agreement by Target does not, and the performance of this Agreement by Target shall not, (1) conflict with or violate the Certificate of Formation or Operating Agreement of Target, (2) conflict with or violate any law, rule, regulation, order, judgment or decree applicable to Target or by which its properties are bound or affected, or (3) result in any breach of or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, or result in the creation of a lien or encumbrance on any of the properties or assets of Target pursuant to, any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument or obligation to which Target is a party or by which Target or its properties are bound or affected, except for such breaches, defaults or other occurrences which would not, individually or in the aggregate have a Material Adverse Effect.
(b)The execution and delivery of this Agreement by Target does not, and the performance of this Agreement shall not, require any consent, approval, authorization or permit of, or filing with or notification to, any governmental or regulatory authority, domestic or foreign.
4.06Compliance. Target is not in conflict with, or in default or violation of, (a) its Certificate of Formation or Operating Agreement or equivalent organizational documents, (b) any law, rule, regulation, order, judgment or decree applicable to Target or by which its properties are bound or affected, including, without limitation, health and safety, environmental and civil rights laws and regulations and zoning ordinances and building codes, or (c) any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise, easement, consent, order or other instrument or obligation to which Target is a party or by which Target or its properties are bound or affected, except for any such conflicts, defaults or violations which would not, individually or in the aggregate, have a Material Adverse Effect.
4.07Financial Statements. Target shall deliver to Parent, prior to Closing the Target Audited Financial Statements and unaudited financial statements for the interim period ending on the Closing Date, which interim financial statements shall have been prepared in accordance with generally accepted accounting principles (GAAP) and, to the best knowledge of Target, including its affiliates, capable of PCAOB audit.
4.08Bank Account Statements. As part of the Target Disclosure Schedule, Target shall deliver to Parent and Merger Sub copies of all of its bank account statements, since inception. All of such statements are true and complete and represent all of the banking transactions of Target during its existence.
4.09Absence of Certain Changes or Events. Since the date of the latest financial statements provided by Target to Parent, except as contemplated by this Agreement or disclosed in the Target Disclosure Schedule, Target has conducted its business only in the ordinary course and in a manner consistent with past practice and, since such date, there has not been any change in the business or prospects of Target having a Material Adverse Effect or any declaration, setting aside or payment of any dividends or distributions in respect of shares of Target Interests or any redemption, purchase or other acquisition of any of its securities.
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4.10Absence of Litigation. Except as disclosed in Target Disclosure Schedule, there are no claims, actions, proceedings or investigations pending or, to the best knowledge of Target, threatened against Target, or any properties or rights of Target, before any court, arbitrator, or administrative, governmental or regulatory authority or body, that, individually or in the aggregate, would have a Material Adverse Effect. As of the date hereof, neither Target nor its properties is subject to any order, writ, judgment, injunction, decree, determination or award having a Material Adverse Effect.
4.11Labor Matters. Except as set forth in the Target Disclosure Schedule, (a) there are no controversies pending or, to the knowledge of Target, threatened, between Target and any of its employees, which controversies have a Material Adverse Effect; and (b) Target is not a party to any collective bargaining agreement or other labor union contract.
4.12Contracts. The Target Disclosure Schedule lists or describes all contracts, authorizations, approvals or arrangements to which Target is a party, or by which it is bound, as of the date hereof, and which (a) obligates or may obligate Target to pay more than $20,000; or (b) are financing documents, loan agreements or agreements providing for the guarantee of the obligations of any party in each case involving an obligation in excess of $20,000.
4.13Title to Property and Leases.
(a)Except as set forth in the Target Disclosure Schedule, each asset owned or leased by Target is owned or leased free and clear of any mortgages, pledges, liens, security interests, conditional and installment sale agreements, encumbrances, charges or other claims of third parties of any kind.
(b)Except as set forth in the Target Disclosure Schedule, all leases of real property leased for the use or benefit of Target to which Target is a party, and all amendments and modifications thereof are in full force and effect and have not been modified or amended and there exists no material default under the leases by Target, nor any event which, with the giving of notice or lapse of time, or both, would constitute a material default thereunder by Target.
(c)A statement describing all assets of Target is included in the Target Disclosure Schedule.
4.14Intellectual Property. Except as set forth in the Target Disclosure Schedule, at the Closing, Target will own any and all intellectual property, including, without limitation, any and all patents and/or patent applications, and other rights pertaining to any and all assets related to Target’s business operations and utilized therein.
The Target Disclosure Schedule lists each patent and patent application of Target and includes copies of all documentation relating to each such patent and/or patent application. Further, the Target Disclosure Schedule lists or describes every other item of intellectual property of Target.
4.15Insurance. The Target Disclosure Schedule lists and describes all policies of insurance in force and held by Target.
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4.16Taxes. Except as set forth in the Target Disclosure Schedule, Target has filed all federal and state tax returns and reports and, to the best of Target’s knowledge, all state, local and foreign tax returns and reports required to be filed have been filed and Target has paid and discharged all taxes, including sales and use taxes, shown as due thereon and has paid all applicable state and local ad valorem taxes as are due, except such as are being contested in good faith by appropriate proceedings and except for such filings, payments or other occurrences which would not have a Material Adverse Effect. Except as set forth in the Target Disclosure Schedule, neither the IRS nor any other taxing authority or agency is now asserting or, to the best of Target’s knowledge, threatening to assert against Target any deficiency or claim for additional taxes or interest thereon or penalties in connection therewith. Except as set forth in the Target Disclosure Schedule, Target has not granted any waiver of any statute of limitations with respect to, or any extension of a period for the assessment of, any federal, state, county, municipal or foreign income tax.
4.17Brokers; Finders. No person will have, as a result of the transactions contemplated hereby, any valid right, interest or claim against or upon Target for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of Target.
4.18Full Disclosure. No statement contained in any document, certificate or other writing furnished or to be furnished by Target or the Members to Parent and Merger Sub pursuant to the provisions of this Agreement contains or shall contain any untrue statement of a material fact or omits or shall omit to state any material fact necessary, in light of the circumstances under which it was or may be made, in order to make the statements herein or therein not misleading.
5.Conduct of Business Pending the Merger.
5.01Conduct of Business by Target Pending the Merger. Target covenants and agrees that, between the date of this Agreement and the Effective Time, unless Parent shall otherwise agree in writing, the business of Target shall be conducted only in, and Target shall not take any action except in, the ordinary course of business and in a manner consistent with past practice; and Target shall use its best efforts to preserve substantially intact the business organization of Target, to keep available the services of the present officers, employees and consultants of Target and to preserve the present relationships of Target with customers, suppliers and other persons with which Target has significant business relations. By way of amplification and not limitation, except as contemplated by this Agreement, Target shall not, directly or indirectly, do, or propose to do, any of the following without the prior written consent of Parent, which consent shall not be unreasonably withheld:
(a)amend or otherwise change its Certificate of Formation or Operating Agreement or equivalent organizational documents;
(b)issue, sell, pledge, dispose of, encumber or authorize the issuance, sale, pledge, disposition or encumbrance of (1) any equity interest of any class, or any options, warrants, convertible securities or other rights of any kind to acquire any shares of capital stock, or any other ownership interest, of Target or (2) any assets of Target or any other material assets of Target other than in the ordinary course of business consistent with past practices;
(c)declare, set aside, make or pay any dividend or other distribution, payable in cash, stock, property or otherwise, with respect to any of its capital stock;
(d)reclassify, combine, split, subdivide or redeem, purchase or otherwise acquire, directly or indirectly, any of its capital stock;
(e)(1) acquire (by merger, consolidation or acquisition of stock or assets) any corporation, partnership or other business organization or division thereof; (2) incur any indebtedness for borrowed money or issue any debt securities or assume, guaranty or endorse or otherwise as an accommodation, become responsible for the obligations of any person, or make any loans or advances, except in the ordinary course of business and consistent with past practice; (3) authorize any single capital expenditure which is in excess of $20,000 or capital expenditures which are, in the aggregate, in excess of $20,000 for Target; or (4) enter into or amend any contract, agreement, commitment or arrangement to any of the effects set forth in this subparagraph (e);
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(f)increase the compensation payable or to become payable to its officers or employees, except for increases in salary or wages of employees of Target who are not officers of Target in accordance with past practices, or grant any severance or termination pay to, or enter into any employment or severance agreement with, any director or officer of Target, or establish, adopt, enter into or amend any collective bargaining, bonus, profit sharing, thrift, compensation, stock option, restricted stock, pension, retirement, deferred compensation, employment, termination, severance or other plan, agreement, trust, fund, policy or arrangement for the benefit of any directors, officers or employees;
(g)take any action other than in the ordinary course of business and in a manner consistent with past practice with respect to accounting policies or procedures (including, without limitation, procedures with respect to the payments of accounts payable and collection of accounts receivable);
(h)settle or compromise any material federal, state, local or foreign income tax liability; or
(i)pay, discharge, compromise or consent to any arrangements concerning or satisfy any claims, liabilities or obligations (absolute, accrued, asserted or unasserted, contingent or otherwise), other than the payment, discharge, compromise, settlement, arrangement or satisfaction in the ordinary course of business and consistent with past practice of liabilities reflected or reserved against in the financial statements of Target or incurred in the ordinary course of business and consistent with past practice.
5.02Conduct of Business by Parent and Merger Sub Pending the Merger. Parent and Merger Sub covenant and agree that, between the date of this Agreement and the Effective Time, Parent shall not sell or otherwise dispose of all or any material portion of its assets.
5.03Approval of Members. Target shall secure the consent of the Members to this Agreement, in accordance with the provisions of the Tennessee Law.
5.04Securities Law Compliance. All of the parties hereto shall take any action required to be taken under applicable Federal and/or state securities laws applicable to (a) the Merger and (b) the issuance of Parent Voting Stock pursuant to the Merger. Parent shall promptly deliver to Target copies of any filings made by Parent and/or Merger Sub pursuant to this Section 5.04.
5.05Third-Party Consents. Each party to this Agreement shall use its best efforts to obtain, as soon as reasonably practicable, all permits, authorizations, consents, waivers and approvals from third parties or governmental authorities necessary to consummate this Agreement and the Merger Agreement and the transactions contemplated hereby and thereby, including, without limitation, any permits, authorizations, consents, waivers and approvals required in connection with the Merger.
6.Conditions of Merger.
6.01.Conditions to Obligation of Each Party to Effect the Merger. The respective obligations of each party to effect the Merger shall be subject to the fulfillment of all of the following conditions precedent at or prior to the Effective Time:
(a)Member Approval. This Agreement shall have been approved and adopted in writing by the Members, in accordance with the provisions of the Tennessee Law.
(b)No Order. No United States or state governmental authority or other agency or commission or United States or state court of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered any statute, rule, regulation, injunction or other order (whether temporary, preliminary or permanent) which is in effect and has the effect of making the conversion of Target Interests into the Merger Consideration illegal or otherwise prohibiting consummation of the transactions contemplated by this Agreement.
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(c)No Challenge. There shall not be pending or threatened any action, proceeding or investigation before any court or administrative agency by any government agency or any other person challenging, or seeking material damages in connection with the conversion of Target Interests into the Merger Consideration pursuant to the Merger or otherwise materially adversely affecting the business, assets, prospects, financial condition or results of operations of Target, Merger Sub, Parent or any of their respective subsidiaries or affiliates.
6.02Additional Conditions to Obligations of Parent and Merger Sub. The obligations of Parent and Merger Sub to effect the Merger are also subject to the fulfillment of all of the following conditions precedent at or prior to the Effective Time:
(a)Representations and Warranties. The representations and warranties of Target and the Members contained in this Agreement shall be true and correct in all material respects on and as of the Effective Time, except for changes contemplated by this Agreement and except for those representations and warranties which address matters only as of a particular date (which shall remain true and correct as of such date), with the same force and effect as if made on and as of the Effective Time, and Parent and Merger Sub shall have received a Certificate of the Chief Executive Officer of Target which is to that effect, which certificate shall be in the form attached hereto as Exhibit 6.02(a).
(b)Agreements and Covenants. Target and the Members shall have performed or complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with by them on or prior to the Effective Time, and Parent and Merger Sub shall have received a Certificate of the Chief Executive Officer of Target to that effect, which certificate shall be in the form attached hereto as Exhibit 6.02(b).
(c)Consents Obtained. All consents, waivers, approvals, authorizations or orders required to be obtained, and all filings required to be made, by Target for the authorization, execution and delivery of this Agreement and the consummation by it of the transactions contemplated hereby shall have been obtained and made by Target.
(d)Target Audited Financial Statements. Target shall have delivered the Target Audited Financial Statements, in accordance with the provisions of Section 4.07.
(e)No Material Adverse Change. There shall have been no material adverse change in the condition, financial or otherwise, of Target.
6.03Additional Conditions to Obligations of Target. The obligations of Target to effect the Merger is also subject to fulfillment of all of the following conditions precedent, at or prior to the Effective Time:
(a)Representations and Warranties. The representations and warranties of Parent and Merger Sub contained in the Agreement shall be true and correct in all material respects on and as of the Effective Time, except for changes contemplated by this Agreement and except for those representations and warranties which address matters only as of a particular date (which shall remain true and correct as of such date), with the same force and effect as if made on and as of the Effective Time, and Target shall have received a Certificate of the Chief Executive Officer of Parent and Incorporator of Merger Sub which is to that effect, which certificate shall be in the form attached hereto as Exhibit 6.03(a).
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(b)Agreements and Covenants. Parent and Merger Sub shall have performed or complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with by them on or prior to the Effective Time, and Target shall have received a Certificate of the Chief Executive Officer of Parent and Incorporator of Merger Sub which is to that effect, which certificate shall be in the form attached hereto as Exhibit 6.03(b).
(c)Consents Obtained. All consents, waivers, approvals, authorizations or orders required to be obtained, and all filings required to be made, by Parent and Merger Sub for the authorization, execution and delivery of this Agreement and the consummation by them of the transactions contemplated hereby shall have been obtained and made by Parent and Merger Sub.
(d)No Material Adverse Change. There shall have been no material adverse change in the condition, financial or otherwise, of Parent.
7.Indemnification.
7.01 Target Indemnities. For the one-year period immediately following the Closing Date, Target agrees to indemnify, defend and hold harmless Parent, its current and former directors, officers, affiliates, agents, attorneys and their respective successors and assigns from, against and in respect of the full amount of any and all liabilities, damages, claims, deficiencies, fines, assessments, losses, taxes, penalties, interest, costs and expenses, including, without limitation, reasonable fees and disbursements of counsel (“Damages”) arising from, in connection with, or incident to any untruth, inaccuracy, breach or omission of, from or in, the representations and warranties made to Buyer herein; or any nonfulfillment of any covenant or agreement of Target under this Agreement; or from any untruth, inaccuracy, breach or omission of, from or in, any representation or warranty, or any nonfulfillment of any covenant or agreement made by Target in the Schedules, the exhibits or any other written statement, list, certificate or other instrument furnished to Parent by or on behalf of Target pursuant to this Agreement; or any operations of Parent prior to the Effective Time.
7.02Parent Indemnities. Parent agrees to indemnify, defend and hold harmless Target, its affiliates, agents attorneys and their respective successors and assigns from, against and in respect of the full amount of any and all liabilities, damages, claims, deficiencies, fines, assessments, losses, taxes, penalties, interest, costs and expenses, including, without limitation, reasonable fees and disbursements of counsel (Damages) arising from, in connection with, or incident to any untruth, inaccuracy, breach or omission of, from or in, the representations and warranties made to Target herein; or any nonfulfillment of any covenant or agreement of Parent under this Agreement; or from any untruth, inaccuracy, breach or omission of, from or in, any representation or warranty, or any nonfulfillment of any covenant or agreement made by Parent in the Schedules, the exhibits or any other written statement, list, certificate or other instrument furnished to Target by or on behalf of Parent pursuant to this Agreement.
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7.03Indemnification Procedure. Promptly after any person entitled to indemnification under this Section 7 (the “Indemnified Party”) has received notice of or has knowledge of any claim against the Indemnified Party by a person not a party to this Agreement (a “Third Person”) or the commencement of any action or proceeding by a Third Person, it shall give the other party (“Indemnifying Party”) written notice of such claim or the commencement of such action or proceeding; provided that no delay on the part of the Indemnified Party in notifying the Indemnifying Party will relieve the Indemnifying Party from any obligation hereunder unless, and then solely to the extent that, the Indemnifying Party is prejudiced thereby. Such notice shall state the nature and the basis of such claim and a reasonable estimate of the Damages.
The Indemnifying Party shall have right to defend, at its own expense and by its own counsel, any such matter so long as the Indemnifying Party pursues the same in good faith and diligently.
If the Indemnifying Party undertakes to defend or settle, it shall promptly notify the Indemnified Party of its intention to do so, and the Indemnified Party shall reasonably cooperate with the Indemnifying Party and its counsel in the defense thereof and in any settlement thereof. Such cooperation shall include, but shall not be limited to, furnishing the Indemnifying Party with any personnel, books, records or information reasonably requested by the Indemnifying Party that are in the Indemnified Party’s possession or control. Notwithstanding the foregoing, the Indemnified Party shall have the right to participate in any matter through counsel of its own choosing at its own expense (unless there is a conflict of interest that prevents counsel for the Indemnifying Party from representing the Indemnified Party, in which case the Indemnifying Party will reimburse the Indemnified Party for the expenses of its counsel).
After the Indemnifying Party has notified the Indemnified Party of its intention to undertake to defend or settle any such asserted liability, and for so long as the Indemnifying Party diligently pursues such defense, the Indemnifying Party shall not be liable for any additional legal expenses incurred by the Indemnified Party in connection with any defense or settlement of such asserted liability. If the Indemnifying Party does not undertake to defend such matter to which the Indemnified Party is entitled to indemnification hereunder, or fails to diligently pursue such defense, the Indemnified Party may undertake such defense through counsel of its choice, at the cost and expense of the Indemnifying Party, and the Indemnified Party may settle such matter, and the Indemnifying Party shall reimburse the Indemnified Party for the amount paid in such settlement and any other liabilities or expenses incurred by the Indemnified Party in connection therewith.
No party hereto, without the prior written consent of the other, shall settle, compromise or consent to the entry of any judgment with respect to any pending or threatened Claim unless the settlement, compromise or consent (1) provides for and includes an express, unconditional release of all Indemnified Parties and Indemnifying Parties from all liabilities, claims, demands, actions and obligations in connection therewith and (2) does not provide for any relief other than monetary relief.
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7.04Additional Remedies. The rights of the Indemnified Party under this Section 7 shall be in addition to any other rights or remedies that might otherwise be available to it at law or in equity and the exercise of such rights shall not operate as a waiver of any of such other rights.
8.Termination, Amendment and Waiver.
8.01Termination. This Agreement may be terminated at any time prior to the Effective Time, whether before or after approval of the Members:
(a)By Parent, on or before the 45th day immediately following the date of mutual execution of this Agreement, should the Audited Target Financial Statements to be delivered hereunder not be capable of a PCAOB audit, as determined by the PCAOB auditor retained for such purpose, it its sole determination.
(b)By mutual consent of the Boards of Directors of Parent and Target.
(c)By either Parent or Target, if:
(1)the Merger shall not have been consummated by the date that is 75 days following the mutual execution of this Agreement (the “Termination Date”);
(2)the requisite consent of the Members to approve this Agreement, the Merger Agreement and the transactions contemplated hereby and thereby shall not be obtained;
(3)any governmental or regulatory body, the consent of which is a condition to the obligations of Parent, Merger Sub and Target to consummate the transactions contemplated hereby or by the Merger Agreement, shall have been unsuccessful; or
(4)any court of competent jurisdiction in the United States or any state shall have issued an order, judgment or decree (other than a temporary restraining order) restraining, enjoining or otherwise prohibiting the Merger and such order, judgment or decree shall have become final and non-appealable;
provided, however, that the right to terminate this Agreement under this Section 8.01(b) shall not be available to any party whose willful failure to fulfill any material obligation under this Agreement has been the cause of, or resulted in, the failure of the Effective Time to occur on or before such date.
8.02Effect of Termination. In the event of termination of this Agreement as provided in Section 8.01, this Agreement shall forthwith become void and there shall be no liability on the part of either Parent, Merger Sub or Target or their respective officers or directors, except that nothing in this Section 8.02 shall relieve any party from liability for any breach of this Agreement.
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8.03Expenses. Unless otherwise provided herein, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby and thereby shall be paid by the party incurring such expenses, whether or not the Merger is consummated.
8.04Amendment. This Agreement may be amended by the parties hereto by action taken by or on behalf of their respective Boards of Directors at any time prior to the Effective Time. This Agreement may not be amended except by an instrument in writing signed by each of the parties hereto.
8.05Waiver. At any time prior to the Effective Time, any party hereto may (a) extend the time for the performance of any of the obligations or other acts of the other parties hereto, (b) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant hereto and (c) waive compliance with any of the agreements or conditions contained herein. Any such extension or waiver shall be valid if set forth in an instrument in writing signed by the party or parties to be bound thereby.
9.General Provisions.
9.01Survival of Representations, Warranties and Agreements. The representations, warranties and agreements in this Agreement shall survive the Merger indefinitely.
9.02Public Announcements. Parent and Target shall consult with each other before issuing any press release or making any other public statement with respect to this Agreement or the transactions contemplated hereby and, except (a) as may be required by applicable law, (b) as to any filing with OTC Markets and/or the SEC required to be made by Parent or (c) as may be required by any listing agreement with or rule of any national securities exchange or association, shall not issue any such press release or make any such other public statement before such consultation.
9.03Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given or made as of the date delivered or mailed if delivered personally or mailed by registered or certified mail (postage prepaid, return receipt requested) to the parties at the following addresses (or at such other address for a party as shall be specified by like notice, except that notices of changes of address shall be effective upon receipt):
(a) If to Parent or Merger Sub:
Nextel Medical Corp.
7901 4th Street N #23494
St. Petersburg, Florida 33702
Attention: Matthew Dwyer, Chief Executive Officer
E-mail: w2572002@gmail.com
(b) If to Target:
Island 40 Group, LLC
6007 Island Road
Memphis, Tennessee 38127
Attention: Casey Barksdale, Managing Member
E-mail: casey@island40group.com
9.04Non-Waiver. The failure in any one or more instances of a party to insist upon performance of any of the terms, covenants or conditions of this Agreement, to exercise any right or privilege conferred in this Agreement, or the waiver by said party of any breach of any of the terms, covenants or conditions of this Agreement, shall not be construed as a subsequent waiver of any such terms, covenants, conditions, rights or privileges, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.
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9.05Arbitration. Any dispute arising under this Agreement and/or the Merger Agreement, as well as any of the transactions contemplated hereby and thereby, shall be resolved by arbitration in Miami, Florida, under the Rules of the American Arbitration Association, as then in effect. The determination and award of the arbitrator, which award may include punitive damages, shall be final and binding on the parties and may be entered as a judgment in any court of competent jurisdiction. It is expressly agreed that the arbitrators, as part of their award, can award attorneys’ fees to the prevailing party.
9.06Binding Effect; Benefit. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to confer on any person other than the parties hereto and their respective successors and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement, including, without limitation, third party beneficiary rights.
9.07Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the extent possible.
9.08Entire Agreement. This Agreement constitutes the entire agreement and supersedes all prior agreements and undertakings, both oral and written, among the parties, or any of them, with respect to the subject matter hereof and, except as otherwise expressly provided herein, are not intended to confer upon any other person any rights or remedies hereunder.
9.09Assignability. This Agreement shall not be assignable by either party or by operation of law, except with the express written consent of each other party.
9.10.Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Tennessee applicable to contracts executed in and to be performed in such State.
9.11Headings. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.
9.12Counterparts. This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.
[ SIGNATURE PAGE FOLLOWS ]
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[ Signature Page to Plan and Agreement of Merger ]
IN WITNESS WHEREOF, Parent, Merger Sub and Target, by their respective officers thereunto duly authorized, have caused this Agreement to be executed as of the date first written above.
PARENT:
NEXTEL MEDICAL CORP.
(f/k/a Exousia Pro, Inc. and Marijuana, Inc.)
By: /s/ Matthew Dwyer
Matthew Dwyer
Chief Executive Officer
MERGER SUB:
I40 MERGER SUB, LLC
By: /s/ Matthew Dwyer
Matthew Dwyer
Organizer
TARGET:
ISLAND 40 GROUP, LLC
By: Casey Barksdale
Casey Barksdale
Managing Member
EXHIBIT A
Form of Agreement of Merger
AGREEMENT OF MERGER
Agreement of Merger, dated as of _________, 2026 (the “Agreement”), among Nextel Medical Corp., f/k/a Exousia Pro, Inc. and Marijuana, Inc., a Florida corporation (“Parent”), I40 Merger Sub, LLC, a Tennessee limited liability company wholly owned by Parent (“Merger Sub”), and Island 40 Group, LLC, a Tennessee limited liability company (“Target”). (Merger Sub and Target being hereinafter collectively referred to as the “Constituent Companies”).
WHEREAS, prior to the execution of this Agreement, Parent, Merger Sub and Target have entered into a Plan and Agreement of Merger dated as of April 30, 2026 (the “Plan of Merger”), providing for certain representations, warranties and agreements in connection with the transaction contemplated; and
WHEREAS, the Boards of Directors of Parent, Merger Sub and Target have approved the acquisition of Target by Parent; and
WHEREAS, the Boards of Directors of Parent, Merger Sub and Target have approved the merger of Target into Merger Sub (the “Merger”) upon the terms and subject to the conditions set forth herein and in the Plan of Merger; and
for Federal income tax purposes, it is intended that the Merger shall qualify as a reorganization within the meaning of Section 368(a)(1)(A) and 368(a)(2)(D) of the Internal Revenue Code of 1986, as amended (the “Code”).
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby, Parent, Merger Sub and Target agree as follows:
1.Merger.
1.01The Merger. At the Effective Time (as defined in Section 1.02) and subject to and upon the terms and conditions of this Agreement and the Plan of Merger, Merger Sub shall be merged with and into Target, the separate corporate existence of Merger Sub shall cease, and Target shall continue as the surviving corporation, in accordance with the applicable provisions of the Tennessee Business Corporation Act (the “Tennessee Law”). Target, as the surviving corporation after the Merger, is hereinafter sometimes referred to as the “Surviving Company”.
1.02Effective Time. As promptly as practicable after the satisfaction or waiver of the conditions set forth in Section 6, and provided that this Agreement has not been terminated or abandoned pursuant to Section 8, the shall cause the Merger to be consummated by filing a Certificate of Merger (the “Certificate of Merger”) with the office of the Secretary of State of the State of Tennessee, in such form as required by, and executed in accordance with, the relevant provisions of the Tennessee Law. Subject to, and in accordance with, the Tennessee Law, the Merger will become effective at the date and time the Certificate of Merger is filed with the office of the Secretary of State of the State of Tennessee or such later time or date as may be specified in the Certificate of Merger (the “Effective Time”).
2.The Surviving Company.
2.01Certificate of Formation. The Certificate of Formation of Target as in effect immediately prior to the Effective Time shall be the Certificate of Formation of the Surviving Company after the Effective Time.
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2.02Operating Agreement. The Operating Agreement of Target as in effect immediately prior to the Effective Time shall be the Operating Agreement of the Surviving Company after the Effective Time.
2.03Managers. The managers of the Surviving Company immediately upon the Effective Time shall hold office in accordance with the Articles of Organization and Operating Agreement of the Surviving Company, in each case until their respective successors are duly elected or appointed and qualified.
3.Conversion of Securities.
3.01Conversion of Securities. Pursuant to this Agreement, at the Effective Time, by virtue of the Merger and without any action on the part of Merger Sub and Target:
(a)Each membership interest of Target (the “Target Interests”) held in the treasury of Target and each such share of Target Interests owned by Merger Sub, Parent or any direct or indirect wholly-owned subsidiary of Parent or of Merger Sub immediately prior to the Effective Time shall be cancelled and extinguished without any conversion thereof and no payment shall be made with respect thereto.
(b)Each Target Interest which is outstanding immediately prior to the Effective Time, other than those shares of Target Interests cancelled as set forth in subsection (a) above, shall be converted into (1) the right to receive shares of the $.001 par value per share Series D Voting Convertible Preferred Stock of Parent (the “Parent Voting Stock”), in accordance with the ownership schedule included in the Target Disclosure Schedule, for a total of 4,500,000 shares of Parent Voting Stock (these shares of Parent Voting Stock are referred to as the “Closing Shares”) and (b) the sum of cash, in accordance with the ownership schedule included in the Target Disclosure Schedule, for a total of $1,500,000 in cash (the “Closing Amount”). The Closing Shares and the Closing Amount and the are referred to, collectively, as the “Merger Consideration”.
The Parent Voting Stock is to have the preferences, rights, qualifications, limitations and restrictions set forth the Certificate of Designation of the Parent Voting Stock attached hereto as Exhibit A and made a part hereof by this reference.
3.02Status of Merger Sub Membership Interests. The membership interests of Merger Sub issued and outstanding immediately prior to the Effective Time shall be converted into membership interests of the Surviving Company, which shall be the only membership interests of the Surviving Company outstanding after the Effective Time, resulting in the Surviving Company being wholly owned by Parent after the Effective Time.
3.03Surrender of and Exchange of Target Interests. Inasmuch as there are no physical certificates evidencing ownership of the Target Interests, upon the Closing (defined below), the Target Interests shall be deemed to have been surrendered for exchange to the Surviving Company.
4.Termination and Amendment.
4.01Termination. This Agreement shall terminate in the event of, and upon termination of, the Plan of Merger.
4.02Amendments. This Agreement may be amended by the parties hereto, at any time before or after approval hereof by the owners of Target, but, after any such approval, no amendment shall be made which (a) changes the ratio at which Target Interests are to be converted into Parent Common Stock pursuant to Section 3.01, (b) in any way materially adversely affects the rights of holders of Target Interests or (c) changes in any of the principal terms of this Agreement, in each case, without the further approval of such shareholders. This Agreement may not be amended except by an instrument in writing signed on behalf of each of the parties hereto.
4.03Waiver. At any time prior to the Effective Time, the parties hereto may (a) extend the time for the performance of any of the obligations or other acts of the other parties hereto, (b) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant hereto and (c) waive compliance with any of the agreements or conditions contained herein. Any agreement on the part of a party hereto to any such extension or waiver shall be valid if set forth in an instrument in writing signed on behalf of such party.
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4.04Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given or made as of the date delivered or mailed if delivered personally or mailed by registered or certified mail (postage prepaid, return receipt requested) to the parties at the following addresses (or at such other address for a party as shall be specified by like notice, except that notices of changes of address shall be effective upon receipt):
(a) If to Parent or Merger Sub:
Nextel Medical Corp.
7901 4th Street N #23494
St. Petersburg, Florida 33702
Attention: Matthew Dwyer, Chief Executive Officer
E-mail: w2572002@gmail.com
(b) If to Target:
Island 40 Group, LLC
6007 Island Road
Memphis, Tennessee 38127
Attention: Casey Barksdale, Managing Member
E-mail: casey@island40group.com
4.05Arbitration. Any dispute arising under this Agreement and/or the Merger Agreement, as well as any of the transactions contemplated hereby and thereby, shall be resolved by arbitration in Miami, Florida, under the Rules of the American Arbitration Association, as then in effect. The determination and award of the arbitrator, which award may include punitive damages, shall be final and binding on the parties and may be entered as a judgment in any court of competent jurisdiction. It is expressly agreed that the arbitrators, as part of their award, can award attorneys’ fees to the prevailing party.
4.06Entire Agreement. This Agreement and the Plan of Merger constitute the entire agreement between the parties and shall be binding upon and inure to the benefit of the parties hereto and their respective legal representatives, successors and permitted assigns. The parties and their respective affiliates make no representations or warranties to each other, except as contained in the Plan of Merger, and any and all prior representations and statements made by any party or its representatives, whether verbally or in writing, are deemed to have been merged into this Agreement and the Plan of Merger, it being intended that no such representations or statements shall survive the execution and delivery of this Agreement and the Plan of Merger.
4.07Non-Waiver. The failure in any one or more instances of a party to insist upon performance of any of the terms, covenants or conditions of this Agreement, to exercise any right or privilege conferred in this Agreement, or the waiver by said party of any breach of any of the terms, covenants or conditions of this Agreement, shall not be construed as a subsequent waiver of any such terms, covenants, conditions, rights or privileges, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.
4.08Counterparts. This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.
4.09Severability. The invalidity of any provision of this Agreement or portion of a provision shall not affect the validity of any other provision of this Agreement or the remaining portion of the applicable provision.
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4.10Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Tennessee applicable to contracts executed in and to be performed in such State.
4.11Binding Effect; Benefit. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to confer on any person other than the parties hereto and their respective successors and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement, including, without limitation, third party beneficiary rights.
4.12Assignability. This Agreement shall not be assignable by either party or by operation of law, except with the express written consent of each other party.
4.13Headings. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.
IN WITNESS WHEREOF, Parent, Merger Sub and Target have executed this Agreement of Merger on the date first above written.
PARENT:
NEXTEL MEDICAL CORP.
(f/k/a Exousia Pro, Inc. and Marijuana, Inc.)
By: _____________________
Matthew Dwyer
Chief Executive Officer
MERGER SUB:
I40 MERGER SUB, LLC
By: _____________________
Matthew Dwyer
Organizer
TARGET:
ISLAND 40 GROUP, LLC
By: _____________________
Casey Barksdale
Managing Member
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EXHIBIT B
Certificate of Designation of Parent Voting Stock
NEXTEL MEDICAL CORP.
CERTIFICATE OF DESIGNATION OF PREFERENCES,
RIGHTS AND LIMITATIONS
OF
SERIES D VOTING PREFERRED STOCK
Pursuant to the Florida Statutes, the undersigned does hereby certify, on behalf of Nextel Medical Corp., a Florida corporation (the “Company”), that the following resolution was duly adopted by the Board of Directors of the Company.
WHEREAS, the Articles of Incorporation of the Company, as amended (the “Articles of Incorporation”), authorize the issuance of up to 10,000,000 shares of preferred stock, par value $0.001 per share, of the Company (the “Preferred Stock”) in one or more series, which Preferred Stock shall have such distinctive designation or title, voting powers or no voting powers, and such preferences, rights, qualifications, limitations or restrictions, as shall be stated in such resolution or resolutions providing for the issuance of such class or series of Preferred Stock as may be adopted from time to time by the Board prior to the issuance of any shares thereof; and
WHEREAS, it is the desire of the Board of Directors to establish and fix the number of shares to be included in a new series of Preferred Stock and the designation, rights, preferences, powers, restrictions and limitations of the shares of such new series.
NOW, THEREFORE, IT IS RESOLVED, that the Board of Directors does hereby provide for the issue of a series of Preferred Stock and does hereby in this Certificate of Designation (this “Certificate of Designation”) establish and fix and herein state and express the designation, rights, preferences, powers, restrictions, and limitations of such series of Preferred Stock as follows:
TERMS OF SERIES D VOTING PREFERRED STOCK
Section 1. Designation, Amount and Par Value. The series of Preferred Stock shall be designated as Series D Voting Preferred Stock (the “Series D Preferred Stock”) and the number of shares so designated shall be Six Million (6,000,000).
Section 2. Stated Value. The Series D Preferred Stock shall have a stated value of $1.00 per share (the “Stated Value”).
Section 3. Fractional Shares. The Series D Preferred Stock may be issued in fractional shares.
Section 4. Voting Rights. Each share of the Series D Preferred Stock shall be entitled to one (1) vote on all matters with the outstanding shares of Company common stock (the “Common Stock”).
Section 5. Dividends. The Series D Preferred Stock shall be treated pari passu with the Common Stock, on an as-converted basis.
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Section 6. Liquidation. Upon any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, payments to the holders (each, a “Holder”, collectively, the “Holders”) of Series D Preferred Stock shall be treated pari passu with the Common Stock, except that the payment on each share of Series D Preferred Stock shall be an amount equal to One Dollar ($1.00) for each such share of the outstanding Series D Preferred Stock held by such Holder (as adjusted for any combinations, consolidations, stock distributions or stock dividends with respect to such shares), plus all dividends, if any, declared and unpaid thereon as of the date of such distribution, before any payment shall be made or any assets distributed to the holders of the Common Stock, and, after such payment, the remaining assets of the Company shall be distributed to the holders of the Common Stock.
Section 7. Conversion and Adjustments.
(a)Voluntary Conversion Right; Conversion Price. Any time following the date that is eighteen (18) months from issuance, the Series D Preferred Stock shall be convertible into shares of the Common Stock, as follows:
Holders of Series D Preferred Stock may convert shares of Series D Preferred Stock held by them into shares of the Common Stock. The conversion price shall be $1.00 per share (the “Conversion Price”), subject to adjustments described in this Section 7. The number of shares of Common Stock receivable upon conversion of one (1) share of Series D Preferred Stock equals the Stated Value divided by the then-Conversion Price; provided, however, that, should the closing price, as reported on OTCMarkets.com (or its successor), of the Common Stock be less than $1.00 per share (the “Adjusted Conversion Price”), then the Conversion Price shall be adjusted such that the total number of shares of the Common Stock (the “Conversion Shares”) to be issued multiplied by the Adjusted Conversion Price equals the total Stated Value of the shares of Series D Preferred Stock converted. By way of example only:
Assumed Conversion Price: $1.00/share
Assumed Adjusted Conversion Price: $0.80/share
Assumed # of Shares Converted: 7,500,000 shares
Total Stated Value of Shares Converted: $6,000,000
$6,000,000 ÷ $0.80 = 7,500,000 Conversion Shares
[7,500,000 x $0.80 = $6,000,000]
Notwithstanding the foregoing, in the event that the common stock of the Company is not publicly traded on the date that is eighteen (18) months from issuance, then Holder shall have the right, but not the obligation, to exchange every 10,000 shares of Series D Preferred Stock held by such Holder for a $2,500.00 principal amount promissory note with a two-year term, which promissory note shall bear interest at 5% per annum until paid in full.
A conversion notice (the “Conversion Notice”) may be delivered to Company by the method of the Holder’s choice (including, but not limited to, email, facsimile, mail, overnight courier or personal delivery), and all conversions shall be cashless and not require further payment from the Holder
| B-2 |
If no objection is delivered from the Company to the Holder, with respect to any variable or calculation reflected in the Conversion Notice within 48 hours of delivery of the Conversion Notice, the Company shall have been thereafter deemed to have irrevocably confirmed and irrevocably ratified such Conversion Notice and waived any objection thereto. The Company shall deliver the shares of Common Stock from any conversion to the Holder within three (3) business days of Conversion Notice delivery. If the Company is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, then, upon request of the Holder, and provided that the shares to be issued are eligible for transfer under Rule 144 of the Securities Act of 1933, as amended (the “Securities Act”), or are effectively registered under the Securities Act, the Company shall cause its transfer agent to electronically issue the Common Stock issuable upon conversion to the Holder through the DTC Direct Registration System (“DRS”). If the Company is not participating in the DTC FAST program, then the Company agrees in good faith to apply and cause the approval for participation in the DTC FAST program.
(b)Limitation on Sales of Conversion Shares. Notwithstanding sales volume limitations set forth in Rule 144 of the Securities and Exchange Commission, during the six-month period immediately following the date of a Holder’s acquisition of Conversion Shares (the “Leak- out Period”), such Holder may dispose of such Conversion Shares such that such Conversion Shares shall be sold in monthly amounts not to exceed 1% of such Conversion Shares (the “Leak-out Monthly Limit”) during the Leak-out Period, not to exceed 1% of the Leak-Out Monthly Limit of Conversion Shares in any one day (the “Leak-out Daily Limit”).
During the Leak-out Period, except for sales of Conversion Shares in amounts that do not exceed the Monthly Leak-out Amount and/or the Leak-out Daily Amount, a Holder shall not, except as otherwise permitted in this Section 7, directly or indirectly, enter into any transaction for the disposition of the Conversion Shares.
If, during any calendar month within the Leak-out Period, a Holder has not engaged in one or more disposition transactions with respect to the Conversion Shares, the cumulative amount of which has resulted in less than the cumulative Monthly Leak-out Amount during the Leak-out Period then-to date, then such Holder shall have the right, but not the obligation, to engage in one or more additional disposition transactions, such that, at the conclusion of such additional disposition transaction(s), such Holder will have engaged in disposition transactions in an amount that does not exceed the cumulative Monthly Leak-out Amount during the Leak-out Period then-to date.
Any transferee of any of the Conversion Shares shall be subject to all of the terms and conditions of this Section 7 and, solely for such purposes, any such transferee shall be included in the definition of “Holder.”.
(c)Partial Conversion Permitted. Subject to Section 7(d), a Holder of shares of Series D Preferred Stock may convert all, or any portion from time to time, of such Holder’s shares of Series D Preferred Stock, should any such Holder exercise his, her or its rights of conversion.
| B-3 |
(d) Limitation on Conversions. In no event shall the Holder be entitled to convert any Series D Preferred Stock, such that the conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and the Holder’s affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of this Series D Preferred Stock or the unexercised or unconverted portion of any other security of the Company subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon conversion of Series D Preferred Stock with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and the Holder’s affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso of the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934 and Regulations 13D- G thereunder, except as otherwise provided in clause (2) of such proviso, provided, further, however, that the limitations on conversion may be waived by the Holder upon, at the election of the Holder, not less than 61 days’ prior notice to the Company, and the provisions of the conversion limitation shall continue to apply until such 61st day (or such later date, as determined by the Holder, as may be specified in such notice of waiver).
(e)Adjustment to Conversion Price for Stock Dividends, Consolidations and Subdivisions. In case the Company at any time after the first issuance of a share of the Series D Preferred Stock shall declare or pay on the Common Stock any dividend in shares of Common Stock, or effect a subdivision of the outstanding shares of the Common Stock into a greater number of shares of the Common Stock (by reclassification or otherwise than by payment of a dividend payable in shares of the Common Stock), or shall combine or consolidate the outstanding shares of the Common Stock into a lesser number of shares of the Common Stock (by reclassification or otherwise), then, and in each such case, the Conversion Price (as previously adjusted) in effect immediately prior to such declaration, payment, subdivision, combination or consolidation shall, concurrently with the effectiveness of such declaration, payment, subdivision, combination or consolidation, be proportionately adjusted.
(f)Adjustments for Reclassifications and Certain Reorganizations. In case the Company at any time after the first issuance of a share of the Series D Preferred Stock shall reclassify or otherwise change the outstanding shares of the Common Stock, whether by capital reorganization, reclassification or otherwise, or shall consolidate with or merge with or into any other corporation where the Company is not the surviving corporation but not otherwise, then, and in each such case, each outstanding share of the Series D Preferred Stock shall, immediately after the effectiveness of such reclassification, other change, consolidation or merger, be convertible into the type and amount of stock and other securities or property which the holder of that number of shares of the Common Stock into which such share of the Series D Preferred Stock would have been convertible before the effectiveness of such reclassification, other change, consolidation or merger would be entitled to receive in respect of such shares of the Common Stock as the result of such reclassification, other change, consolidation or merger.
(g)Reservation of Stock Issuable Upon Conversion. The Company shall at all times reserve and keep available out of its authorized but unissued shares of the Common Stock, solely for the purpose of effecting the conversion of the Series D Preferred Stock, such number of shares of the Common Stock as shall from time to time be sufficient to effect the conversion of all outstanding shares of the Series D Preferred Stock (the “Reserve Shares”); and if at any time the number of authorized but unissued shares of the Common Stock shall not be sufficient to effect the conversion of all outstanding shares of the Series D Preferred Stock, the Company will take such corporate action as is necessary to increase its authorized by unissued shares of the Common Stock to such number of shares as shall be sufficient for such purpose. The Holder shall have the right to directly instruct the Company’s transfer agent to explicitly reserve the Reserve Shares from the Company’s authorized shares of Common Stock, solely for satisfying the conversion of the Series D Preferred Stock.
| B-4 |
(h)Transfer Agent Instructions. The Holder shall have the right to directly instruct the Company’s transfer agent to explicitly reserve the Reserve Shares from the Company’s authorized shares of Common Stock, solely for satisfying the conversion of the Series D Preferred Stock. In the event that an opinion of counsel, such as, but not limited to, a Rule 144 opinion, is needed for any matter related to this Series D Preferred Stock or the Common Stock, the Holder has the right to have any such opinion provided by its own counsel.
Section 8. Redemption. The Series D Preferred Stock may be redeemed by the Company at any time for a cash purchase price equal to the liquidation preference as of the redemption date; provided, however, that the Company shall provide not less than five days’ written notice ( the “Redemption Notice”) to the Holder(s) of its intent to redeem the Series D Preferred Stock; provided further, however, that the Holder(s) shall have the right to deliver a Notice of Conversion prior to the date of redemption set forth in the Redemption Notice.
Section 9. Protection Provisions. So long as any shares of Series D Preferred Stock are outstanding, the Company shall not, without first obtaining the majority written consent of the holders of Series D Preferred Stock, alter or change the rights, preferences or privileges of the Series D Preferred Stock so as to affect adversely the holders of Series D Preferred Stock.
The Company hereby covenants and agrees that the Company will not, by amendment of its Amended and Restated Articles, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Certificate of Designation, and will at all times carry out all the provisions of this Certificate of Designation and take all action as may be required to protect the rights of the Holders of the Series D Preferred Stock.
Section 10. Status of Converted Stock. In the event any shares of the Series D Preferred Stock shall be converted pursuant to Section 7 above, the shares Series D Preferred Stock so converted shall be cancelled and shall revert to the Company’s authorized but unissued Series D Preferred Stock.
Section 11. Transferability. This Series D Preferred Stock shall be transferable and may be assigned by the Holders, to anyone of their choosing without the Company’s approval subject to applicable securities laws. Each Holder of the Series D Preferred Stock covenants not to engage in any unregistered public distribution of the Series D Preferred Stock when making any assignments.
Section 12. Notices. Any notice required hereby to be given to the Holders of shares of the Series D Preferred Stock shall be deemed given if sent by email or deposited in the United States mail, postage prepaid, and addressed to each holder of record at his, her or its address appearing on the books of the Company.
Section 13. Miscellaneous.
(a)The headings of the various sections and subsections of this Certificate of Designation are for convenience of reference only and shall not affect the interpretation of any of the provisions of this Certificate of Designation.
(b)Whenever possible, each provision of this Certificate of Designation shall be interpreted in a manner as to be effective and valid under applicable law and publish policy. If any provision set forth herein is held to be invalid, unlawful or incapable of being enforced by reason of any rule of law or public policy, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating or otherwise adversely affecting the remaining provisions of this Certificate of Designation.
| B-5 |
No provision herein set forth shall be deemed dependent upon any other provision unless so expressed herein. If a court of competent jurisdiction should determine that a provision of this Certificate of Designation would be valid or enforceable if a period of time were extended or shortened, then such court may make such change as shall be necessary to render the provision in question effective and valid under applicable law.
(c)Except as may otherwise be required by law, the shares of the Series D Preferred Stock shall not have any powers, designations, preferences or other special rights, other than those specifically set forth in this Certificate of Designation.
Section 14. Waiver. Any of the rights, powers or preferences of the holders of the Series D Preferred Stock may be waived by the affirmative consent or vote of the holders of at least a majority of the shares of Series D Preferred Stock then outstanding.
Section 15. No Other Rights or Privileges. Except as specifically set forth herein, the holder(s) of the shares of Series D Preferred Stock shall have no other rights, privileges or preferences with respect to the Series D Preferred Stock.
RESOLVED, FURTHER, that the president or any vice-president, and the secretary or any assistant secretary, of the Company be and they hereby are authorized and directed to prepare and file this Certificate of Designation of Preferences, Rights and Limitations in accordance with the foregoing resolution and the provisions of the Wyoming Business Corporation Act.
IN WITNESS WHEREOF, the undersigned has executed this Certificate of Designation this _____ day of _______, 2026.
NEXTEL MEDICAL CORP.
By: ________________________________
Matthew Dwyer
Chief Executive Officer
| B-6 |
EXHIBIT C
Gross Revenue Projections of Target for the Post-Closing Period
C-1
EXHIBIT 6.02(a)
CERTIFICATE OF THE MANAGING MEMBER OF TARGET
[Pursuant to Section 6.02(a)]
Island 40 Group, LLC
a Tennessee limited liability company
The undersigned, Casey Barksdale, the duly elected and acting Managing Member of Island 40 Group, LLC, a Tennessee limited liability company (“Target”), hereby certify and affirm that each of the following is true and correct:
1. The representations and warranties of Target in that certain Plan of Agreement of Merger (the “Plan of Merger”) to which this Certificate relates are true and correct in all material respects on the date of this Certificate and, except for those representations and warranties which address matters only as of a particular date, with the same force and effect as if made as of this date.
2. Target is a limited liability company duly organized and existing under the laws of the State of Tennessee, and has the corporate power and authority to own its properties and carry on its business in the manner in which such business is conducted.
3. The execution, delivery and performance by Target of the Plan of Merger, in accordance with the terms and provisions of the Plan of Merger, have been duly authorized by appropriate corporate action of Target.
4. Target has full power, right and authority to enter into the Plan of Merger and to perform its obligations under the Plan of Merger and the Plan of Merger is the legal, valid and binding obligation of Target and is enforceable against Target in accordance with its terms.
5. The membership interests of Target that are subject to the Plan of Merger are fully paid and non-assessable and, when transferred and sold on the Closing Date of the Plan of Merger, will be free and clear of any liens, claims and encumbrances.
Certified and affirmed this ____ day of ____________, 2026.
___________________________________
Casey Barksdale, Managing Member
Island 40 Group, LLC
(a Tennessee limited liability company)
EXHIBIT 6.02(b)
CERTIFICATE OF THE MANAGING MEMBER OF TARGET
[Pursuant to Section 6.02(b)]
Island 40 Group, LLC
a Tennessee limited liability company
The undersigned, Casey Barksdale, the duly elected and acting Managing Member of Island 40 Group, LLC, a Tennessee limited liability company (“Target”), hereby certify and affirm that each of the following is true and correct:
1. Target has performed or complied with, in all material respects, with all agreements and covenants required of it by that certain Plan and Agreement of Merger (the “Plan of Merger”) to which this Certificate relates.
2. The Members of Target have approved the merger contemplated by the Plan of Merger to which this Certificate relates, in accordance with the laws of the State of Tennessee.
Certified and affirmed this ____ day of _______________, 2026.
___________________________________
Casey Barksdale, Managing Member
Island 40 Group, LLC
(a Tennessee limited liability company)
EXHIBIT 6.03(a)
CERTIFICATE OF THE CHIEF EXECUTIVE OFFICER OF PARENT
AND ORGANIZER OF MERGER SUB
[Pursuant to Section 6.03(a)]
Nextel Medical Corp.
(f/k/a Exousia Pro, Inc. and Marijuana, Inc.)
a Florida corporation
I40 Merger Sub, LLC
a Tennessee limited liability company
The undersigned, Matthew Dwyer, the duly elected and acting Chief Executive Officer of Nextel Medical Corp., f/k/a Exousia Pro, Inc. and Marijuana, Inc., a Florida corporation (“Parent”), and the Organizer of I40 Merger Sub, LLC, a Tennessee limited liability company (“Merger Sub”), respectively, hereby certifies and affirms that each of the following is true and correct:
1. The representations and warranties of Parent and Merger Sub contained in that certain Plan and Agreement of Merger (the “Plan of Merger”) to which this Certificate relates are true and correct in all material respects on the date of this Certificate and, except for those representations and warranties which address matters only as of a particular date, with the same force and effect as if made as of this date.
2. Parent is a corporation duly organized and existing under the laws of the State of Nevada, and has the power and authority to own its properties and carry on its business in the manner in which such business is conducted. Merger Sub is a limited liability company duly organized and existing under the laws of the State of Tennessee, and has the power and authority to own its properties and carry on its business in the manner in which such business is conducted.
3. The execution, delivery and performance by Parent and Merger Sub of the Plan of Merger, in accordance with the terms and provisions of the Plan of Merger, have been duly authorized by appropriate corporate action of Parent and Merger Sub.
4. Each of Parent and Merger Sub has full power, right and authority to enter into the Plan of Merger and to perform their respective obligations under the Plan of Merger, and the Plan of Merger is the legal, valid and binding obligation of each of Parent and Merger Sub and is enforceable against Parent and Merger Sub in accordance with its terms.
5. The shares of Parent Voting Stock to be issued pursuant to the Plan of Merger will be, upon issuance and delivery pursuant to the terms of the Plan of Merger, validly issued, fully paid and non-assessable.
Certified and affirmed this ____ day of ___________, 2026.
_________________________________________
Matthew Dwyer, Chief Executive Officer
of Nextel Medical Corp. (f/k/a Exousia Pro, Inc.
and Marijuana, Inc., a Florida corporation) and
Organizer of I40 Merger Sub, LLC,
a Tennessee limited liability company
EXHIBIT 6.03(b)
CERTIFICATE OF THE CHIEF EXECUTIVE OFFICER OF PARENT
AND ORGANIZER OF MERGER SUB
[Pursuant to Section 6.03(b)]
Nextel Medical Corp.
(f/k/a Exousia Pro, Inc. and Marijuana, Inc.)
a Florida corporation
I40 Merger Sub, LLC
a Tennessee limited liability company
The undersigned, Matthew Dwyer, the duly elected and acting Chief Executive Officer of Nextel Medical Corp., f/k/a Exousia Pro, Inc. and Marijuana, Inc., a Florida corporation (“Parent”), and the Organizer of I40 Merger Sub, LLC, a Tennessee limited liability company (“Merger Sub”), respectively, hereby certifies and affirms that each of the following is true and correct:
1. Parent and Merger Sub have performed or complied with, in all material respects, with all agreements and covenants required of them by that certain Plan and Agreement of Merger (the “Plan of Merger”) to which this Certificate relates.
Certified and affirmed this ____ day of ___________________, 2026.
_________________________________________
Matthew Dwyer, Chief Executive Officer
of Nextel Medical Corp. (f/k/a Exousia Pro, Inc.
and Marijuana, Inc., a Florida corporation) and
Organizer of I40 Merger Sub, LLC,
a Tennessee limited liability company
Exhibit 12.1
NEWLAN LAW GROUP, PLLC
2201 Long Prairie Road – Suite 107-762
Flower Mound, Texas 75022
940-367-6154
August 28, 2026
Nextel Medical Corp. (formerly Exousia Pro, Inc. and Marijuana, Inc.)
7901 4th Street N #23494
St. Petersburg, Florida 33702
Re: Offering Statement on Form 1-A
Gentlemen:
We have been requested by Nextel Medical Corp., formerly Exousia Pro, Inc. and Marijuana, Inc., a Florida corporation (the “Company”), to furnish you with our opinion as to the matters hereinafter set forth in connection with its offering statement on Form 1-A (the “Offering Statement”) relating to the qualification of shares of the Company’s common stock under Regulation A promulgated under the Securities Act of 1933, as amended. Specifically, this opinion relates to (a) 60,000,000 shares of the Company’s $.001 par value common stock (the “Company Shares”) to be offered by the Company and (b) up to 15,000,000 shares of the Company’s $.001 par value common stock (the “Selling Shareholder Shares”) to be offered by NLF Support Services, LLC, Red Phoenix Rising, LLC and Newlan Law Firm, PLLC, as selling shareholders (the “Selling Shareholders”).
In connection with this opinion, we have examined the Offering Statement, the Company’s Articles of Incorporation and Bylaws (each as amended to date), copies of the records of corporate proceedings of the Company and such other documents as we have deemed necessary to enable us to render the opinion hereinafter expressed.
For purposes of this opinion, we have assumed the authenticity of all documents submitted to us as originals, the conformity to the originals of all documents submitted to us as copies and the authenticity of the originals of all documents submitted to us as copies. We have also assumed the legal capacity of all natural persons, the genuineness of the signatures of persons signing all documents in connection with which this opinion is rendered, the authority of such persons signing on behalf of the parties thereto other than the Company and the due authorization, execution and delivery of all documents by the parties thereto other than the Company. We have not independently established or verified any facts relevant to the opinions expressed herein, but have relied upon statements and representations of officers and other representatives of the Company and others.
Based upon and subject to the foregoing qualifications, assumptions and limitations and the further limitations set forth below, we are of the opinion that the 60,000,000 Company Shares being offered by the Company will, when issued in accordance with the terms set forth in the Offering Statement, be legally issued, fully paid and non-assessable shares of common stock of the Company. We are of the further opinion that the up to 15,000,000 Selling Shareholder Shares have been duly authorized and, upon issuance, will be validly issued, fully paid and non-assessable shares of common stock of the Company.
Our opinions expressed above is subject to the qualification that we express no opinion as to the applicability of, compliance with, or effect of any laws except the Florida Statutes (including the statutory provisions and reported judicial decisions interpreting the foregoing).
We hereby consent to the use of this opinion as an exhibit to the Offering Statement and to the reference to our name under the caption “Legal Matters” in the Offering Statement and in the offering circular included in the Offering Statement.
Prior to the date hereof, a wholly-owned service subsidiary of Newlan Law Firm, PLLC, the predecessor firm to this firm, NLF Support Services, LLC, a Selling Shareholder, had been the beneficial holder of three of the Subject Convertible Notes (as defined in the Offering Statement) in the total principal amount of $97,500. The Company had issued such Subject Convertible Notes (as defined in the Offering Statement) pursuant to two separate legal services agreements between the Company and this firm. In September 2025, NLF Support Services, LLC, converted the principal and accrued interest all three of the Subject Convertible Notes (as defined in the Offering Statement) into a total of 670,569 shares of common stock and, subsequently, sold all of such shares for cash at the then-offering price applicable to Selling Shareholders of $0.15 per share, a total amount of $100,585.
As of the date hereof, Newlan Law Firm, PLLC, the predecessor firm to this firm, a Selling Shareholder, is the holder of one of the unconverted Subject Convertible Notes (as defined in the Offering Statement) in the principal amount of $100,000. The Company issued such Subject Convertible Note (as defined in the Offering Statement) to Newlan Law Firm, PLLC, the predecessor firm to this firm, pursuant to legal services agreements.
Sincerely,
/s/ Newlan Law Group, PLLC
NEWLAN LAW GROUP, PLLC
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