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NOTE 1 – BACKGROUND Rebus Holdings, Inc. (“we”, “us”, “our company”, “our”, “Rebus,” “Rebus Holdings,” or the “Company”) was formed under the laws of the State of Delaware in November 2003, and has its principal office in Westlake Village, California. We are focused on the research and development of novel targeted precision therapeutics for the treatment of cancer. Our approach utilizes our proprietary delivery technology to better enhance immuno-modulation for improved therapeutic outcomes. Our potential first-in-class immune-oncology lead asset, RT-AR001, an adenosine receptor A2B antagonist, is differentiated by its novel microparticle formulation that allows for better tumor infiltration and enhanced outcomes when administered intra-tumorally. Our patented portfolio of adenosine receptor antagonists provides flexibility to optimize treatment based on the specific targets found in each type of cancer. The adenosine receptor modulators include A 2B antagonists, dual A 2A /A 2B antagonists, and A 2A antagonists that have broad development applicability including indications within immuno-oncology and inflammation. Adenosine is implicated in immunosuppression in the tumor microenvironment. Adenosine receptor antagonists may boost the host immune response against the tumor as a single-agent and in combination with other existing immuno-oncology agents leading to enhanced tumor killing and inhibition of metastasis. Adenosine also has anti-inflammatory properties in the acute and chronic setting. Adenosine receptor antagonists may promote a decreased inflammatory response and can potentially treat a broad range of inflammatory and autoimmune based diseases and conditions (e.g., rheumatoid arthritis, joint injury, Crohn’s disease, psoriasis) as well as improve wound healing and decrease pain. <span id="xdx_901_eus-gaap--BroadcastersLicenseAgreementCommitmentsDescription_c20230101__20230630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_z5Ud3RwAEyFi" title="Description of cancellation of a license agreement">In October 2020, pursuant to the cancellation of a license agreement whereby we previously licensed US Patent 9,593,118, we reacquired the exclusive right to such patent that covers both A2B and dual A2A/A2B antagonists. Accordingly, going forward our major focus will be to: (i) further characterization of the anti-cancer activity of our unique pipeline delivery platform containing A2B and dual A2A/A2B antagonists, leading to selection of a clinical candidate or candidates for an Investigative New Drug or IND enabling studies; and (ii) licensing and/or partnering our delivery platform and the A2B and dual A2A/A2B antagonists for further development. Our ability to execute the business plan is contingent upon our ability to raise the necessary funds. We are currently using such funds to maintain our SEC reporting requirements, pay legal accounting and other professional fees, and to retain consultants and other personnel to develop the adenosine A2R antagonists and in preparation for an IND filing related to our unique delivery platform and portfolio of adenosine A2R antagonists for the treatment of certain solid tumors. Should we fail to further raise sufficient funds to execute our business plan, our priority would be to maintain our intellectual property portfolio and seek business development opportunities with potential development partners and/or acquirors.

In October 2020, pursuant to the cancellation of a license agreement whereby we previously licensed US Patent 9,593,118, we reacquired the exclusive right to such patent that covers both A2B and dual A2A/A2B antagonists. Accordingly, going forward our major focus will be to: (i) further characterization of the anti-cancer activity of our unique pipeline delivery platform containing A2B and dual A2A/A2B antagonists, leading to selection of a clinical candidate or candidates for an Investigative New Drug or IND enabling studies; and (ii) licensing and/or partnering our delivery platform and the A2B and dual A2A/A2B antagonists for further development.

NOTE 2 – MANAGEMENT’S PLANS TO CONTINUE AS A GOING CONCERN We have prepared our unaudited condensed consolidated financial statements on the basis that we will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. We have incurred losses from operations since inception, we have a working capital deficit of $5.6 million and we have an accumulated deficit of $66 million as of June 30, 2023. We anticipate incurring additional losses for the foreseeable future until such time, if ever, that we can generate significant sales from our therapeutic product candidates which are currently in development or we enter into cash flow positive business development transactions. To date, we have generated no sales or revenues, have incurred significant losses and expect to incur significant additional losses as we advance our product candidates through development. Consequently, our operations are subject to all the risks inherent in the establishment of a pre-revenue business enterprise as well as those risks associated with a company engaged in the research and development of pharmaceutical compounds. Our cash balances at June 30, 2023 were approximately $5,000, representing 56% of our total assets. Based on our current expected level of operating expenditures we expect to be able to fund our operations into the third quarter of 2023. We will require additional cash to fund and continue our operations beyond that point. This period could be shortened if there are any unanticipated increases in planned spending on development programs or other unforeseen events. We anticipate raising additional funds through public or private sales of debt or equity securities, or some combination thereof. There is no assurance that any such financing will be available when needed in order to allow us to continue our operations, or if available, on terms favorable or acceptable to us. In the event additional financing is not obtained, we may pursue cost-cutting measures as well as explore the sale of assets to generate additional funds. If we are required to significantly reduce operating expenses and delay, reduce the scope of, or eliminate any of our development programs or clinical trials, these events could have a material adverse effect on our business, results of operations, and financial condition. These factors raise substantial doubt about our ability to continue as a going concern. The consolidated financial statements do not include any adjustments relating to recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern. Our current cash level raises substantial doubt about our ability to continue as a going concern past the third quarter of 2023. If we do not obtain additional funds by such time, we may no longer be able to continue as a going concern and will cease operation which means that our shareholders will lose their entire investment.

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NOTE 3 – SUMMARY OF CRITICAL ACCOUNTING POLICIES AND USE OF ESTIMATES Basis of Presentation The accompanying condensed consolidated financial statements are unaudited. The unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These interim consolidated financial statements as of and for the three and six months ended June 30, 2023 and 2022 are unaudited; however, in the opinion of management, such statements include all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position, results of operations and cash flows of the Company for the periods presented. The results for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for any future period. All references to June 30, 2023 and 2022 in these footnotes are unaudited. These unaudited condensed consolidated financial statements should be read in conjunction with our audited financial statements and the notes thereto for the year ended December 31, 2022, included in the Company’s annual report on Form 10-K filed with the SEC on March 31, 2023. The consolidated balance sheet as of December 31, 2022 has been derived from the audited consolidated financial statements at that date but does not include all disclosures required by the accounting principles generally accepted in the United States of America. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the parent company, Rebus Holdings, Inc., (fka Inspyr Therapeutics, Inc.) and its wholly-owned subsidiaries, Inspyr Therapeutics, Inc., Lewis & Clark Pharmaceuticals, Inc. and Ridgeway Therapeutics, Inc. (a California corporation). All significant intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures. Significant estimates include the fair value of derivative instruments, stock-based compensation, recognition of clinical trial costs and other accrued liabilities. Actual results may differ from those estimates. Research and Development Research and development costs are charged to expense as incurred. Our research and development expenses consist primarily of expenditures for pre-clinical research, toxicology and other studies, manufacturing, clinical trials, compensation and consulting costs associated therewith. We incurred research and development expenses of approximately $0.02 million and $0.2 million for the three months ended June 30, 2023 and 2022, respectively. We incurred research and development expenses of approximately $0.04 million and $0.2 million for the six months ended June 30, 2023 and 2022, respectively. Cash Equivalents For purposes of the statements of cash flows, we consider all highly liquid debt instruments purchased with a maturity date of three months or less to be cash equivalents. We maintain our cash in bank deposit accounts which, at times, may exceed applicable government mandate insurance limits. We have not experienced any losses in our accounts. We did not have any cash equivalents at June 30, 2023 or December 31, 2022. Concentrations of Credit Risk Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents. The Company places its cash and temporary cash investments with credit quality institutions. At times, such investments may exceed applicable government mandated insurance limits. Cash was $5,000 and $5,000 at June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023 and December 31, 2022, there was no cash over the federally insured limit. Income (Loss) per Share Basic income (loss) per share is calculated by dividing net income (loss) and net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding for the period. <p id="xdx_891_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zhmqeqgTnZX7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The following potentially dilutive securities have been excluded from the computations of diluted weighted average shares outstanding as of June 30, 2023 and 2022, as they would be anti-dilutive: SCHEDULE OF ANTI-DILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_494_20230101__20230630_z7XWd4IqpPIl" style="border-bottom: Black 1.5pt solid; 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background-color: rgb(204,238,255)"> <td style="text-align: left">Shares underlying convertible preferred stock outstanding</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">131,804,100</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">128,626,878</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_zLtNR7DH9956" style="vertical-align: bottom; background-color: White"> <td>Anti-dilutive weighted average shares outstanding</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">159,027,292</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">148,966,178</td><td style="text-align: left"> </td></tr> </table> Diluted loss per share for the three months ended June 30, 2023 is calculated as follows: SCHEDULE OF DILUTED LOSS PER SHARE <table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" id="xdx_492_20230401__20230630_z6zfQnCLMCV1" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Three months ended</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">June 30, 2023</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40F_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_pp0p0_z3fZdD4swtW" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 80%; text-align: left">Net income attributable to common shareholders</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 16%; text-align: right">43</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--IncomeAttributableToConvertibleDebenturesAndPreferredStock_pp0p0_zz3eCTgk2wAc" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Income attributable to convertible instruments</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(179</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_pp0p0_znBBRYpM9pLi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Diluted loss attributable to common shareholders</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(136</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--BasicSharesOutstanding_pid_zvu8hXMMP0Ec" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Basic shares outstanding</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">32,132,907</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_404_ecustom--ConvertibleInstuments_pid_zdkFkgb9Mu5g" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Dilutive convertible instruments</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">128,531,628</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_404_ecustom--DilutedSharesOutstanding_pid_zI9sG1ASVqLi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Diluted shares outstanding</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">160,664,535</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--DilutedLossPerShare_pid_zxI1vvuwN8q3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Diluted loss per share</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.00</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> </table> Derivative Liability The Company has financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in the Company’s balance sheet. The Company measures these instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change. The Company values its derivative liabilities using the Black-Scholes option valuation model. The resulting liability is valued at each reporting date and the change in the liability is reflected as change in derivative liability in the statement of operations. Fair Value of Financial Instruments Our short-term financial instruments, including cash, accounts payable and other liabilities, consist primarily of instruments with maturities of one year or less when acquired. We believe that the fair values of our current assets and current liabilities approximate their reported carrying amounts. The derivative liabilities consist of our convertible notes and Series F preferred stock with variable conversion features. The Company uses the Black-Scholes option-pricing model to value its derivative liabilities which incorporate the Company’s stock price, volatility, U.S. risk-free interest rate, dividend rate, and estimated life. Fair Value Measurements The U.S. GAAP Valuation Hierarchy establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The Company has recorded a derivative liability for its convertible notes and preferred stock with variable conversion features as of June 30, 2023 and December 31, 2022. The tables below summarize the fair values of our financial liabilities as of June 30, 2023 and December 31, 2022 (in thousands): SCHEDULE OF FAIR VALUES OF FINANCIAL LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_49A_20230630_zGvasi551clf" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" id="xdx_499_20230630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_z3LDNk5Sm7s3" style="border-bottom: Black 1.5pt solid; text-align: center">Level 1</td><td> </td><td> </td> <td colspan="2" id="xdx_492_20230630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_z2Dxuphea26d" style="border-bottom: Black 1.5pt solid; text-align: center">Level 2</td><td> </td><td> </td> <td colspan="2" id="xdx_49E_20230630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z8GpJVTHJUE1" style="border-bottom: Black 1.5pt solid; text-align: center">Level 3</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="padding-bottom: 1.5pt; text-align: center">Fair Value at June 30,</td><td> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">Fair Value Measurement Using</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Level 1</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Level 2</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Level 3</td><td> </td></tr> <tr id="xdx_40C_eus-gaap--ConvertibleDebtFairValueDisclosures_iI_zgv3ewCbUgi7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Convertible notes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">297</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">297</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--PreferredStockFairValueDisclosures_iI_zC9bTpT6chnh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Preferred stock</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">713</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">713</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DerivativeLiabilitiesCurrent_iI_zogsaAB42l6d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Derivative liability</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,010</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,010</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_496_20221231_zOZwprCOjRwb" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td><td> </td> <td colspan="2" id="xdx_492_20221231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zlbBTAkNznA1" style="border-bottom: Black 1.5pt solid; text-align: center">Level 1</td><td> </td><td> </td> <td colspan="2" id="xdx_49D_20221231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zCwSEPK42tPg" style="border-bottom: Black 1.5pt solid; text-align: center">Level 2</td><td> </td><td> </td> <td colspan="2" id="xdx_493_20221231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zkZTOBoKpszi" style="border-bottom: Black 1.5pt solid; text-align: center">Level 3</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="padding-bottom: 1.5pt; text-align: center">Fair Value at December 31,</td><td> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">Fair Value Measurement Using</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Level 1</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Level 2</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Level 3</td><td> </td></tr> <tr id="xdx_402_eus-gaap--ConvertibleDebtFairValueDisclosures_iI_zjW11vVLACBf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Convertible notes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">285</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">285</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--PreferredStockFairValueDisclosures_iI_zWPT4RDk04D9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Preferred stock</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">595</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">595</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DerivativeLiabilitiesCurrent_iI_z4GbU9srwjd6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Derivative liability</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">880</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">880</td><td style="text-align: left"> </td></tr> </table> <p id="xdx_896_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisGainLossIncludedInEarningsTextBlock_zzCvS9iVWBxa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The reconciliation of the derivative liability measured at fair value on a recurring basis using unobservable inputs (Level 3) is as follows (in thousands): SCHEDULE OF DERIVATIVE LIABILITY MEASURED AT FAIR VALUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_49C_20230101__20230630_zzljRJfiaWbg" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" id="xdx_49F_20220101__20220630_z5S7Z61XnVHk" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">Six Months Ended June 30,</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td></tr> <tr id="xdx_40A_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue_iS_zgFVQBpFwNri" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Balance at beginning of year</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">880</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,124</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityPurchases_zrNGEK0utBmh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Additions to derivative instruments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityReclassification_zogXcPWNDrok" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Reclassification on conversion</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(507</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityGainLossIncludedInEarnings_zoej9hOoiue4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Loss on change in fair value of derivative liability</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">130</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,459</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue_iE_zvrzvz98zD18" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -7.25pt; padding-left: 7.25pt">Balance at end of period</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,010</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,076</td><td style="text-align: left"> </td></tr> </table> Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which the related temporary difference becomes deductible. Recent Accounting Pronouncements There have not been any recent changes in accounting pronouncements and Accounting Standards Update (ASU) issued by the Financial Accounting Standards Board (FASB) during the six months ended June 30, 2023 that are of significance or potential significance to the Company.

Basis of Presentation The accompanying condensed consolidated financial statements are unaudited. The unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These interim consolidated financial statements as of and for the three and six months ended June 30, 2023 and 2022 are unaudited; however, in the opinion of management, such statements include all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position, results of operations and cash flows of the Company for the periods presented. The results for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for any future period. All references to June 30, 2023 and 2022 in these footnotes are unaudited. These unaudited condensed consolidated financial statements should be read in conjunction with our audited financial statements and the notes thereto for the year ended December 31, 2022, included in the Company’s annual report on Form 10-K filed with the SEC on March 31, 2023. The consolidated balance sheet as of December 31, 2022 has been derived from the audited consolidated financial statements at that date but does not include all disclosures required by the accounting principles generally accepted in the United States of America.

Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the parent company, Rebus Holdings, Inc., (fka Inspyr Therapeutics, Inc.) and its wholly-owned subsidiaries, Inspyr Therapeutics, Inc., Lewis & Clark Pharmaceuticals, Inc. and Ridgeway Therapeutics, Inc. (a California corporation). All significant intercompany accounts and transactions have been eliminated.

Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures. Significant estimates include the fair value of derivative instruments, stock-based compensation, recognition of clinical trial costs and other accrued liabilities. Actual results may differ from those estimates.

Research and Development Research and development costs are charged to expense as incurred. Our research and development expenses consist primarily of expenditures for pre-clinical research, toxicology and other studies, manufacturing, clinical trials, compensation and consulting costs associated therewith. We incurred research and development expenses of approximately $0.02 million and $0.2 million for the three months ended June 30, 2023 and 2022, respectively. We incurred research and development expenses of approximately $0.04 million and $0.2 million for the six months ended June 30, 2023 and 2022, respectively.

20000.00

200000

40000.00

200000

Cash Equivalents For purposes of the statements of cash flows, we consider all highly liquid debt instruments purchased with a maturity date of three months or less to be cash equivalents. We maintain our cash in bank deposit accounts which, at times, may exceed applicable government mandate insurance limits. We have not experienced any losses in our accounts. We did not have any cash equivalents at June 30, 2023 or December 31, 2022.

Concentrations of Credit Risk Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents. The Company places its cash and temporary cash investments with credit quality institutions. At times, such investments may exceed applicable government mandated insurance limits. Cash was $5,000 and $5,000 at June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023 and December 31, 2022, there was no cash over the federally insured limit.

5000

Income (Loss) per Share Basic income (loss) per share is calculated by dividing net income (loss) and net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding for the period. <p id="xdx_891_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zhmqeqgTnZX7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The following potentially dilutive securities have been excluded from the computations of diluted weighted average shares outstanding as of June 30, 2023 and 2022, as they would be anti-dilutive: SCHEDULE OF ANTI-DILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_494_20230101__20230630_z7XWd4IqpPIl" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" id="xdx_49B_20220101__20220630_zCgkkRzzwH1k" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">Six Months Ended June 30,</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td></tr> <tr id="xdx_40D_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zqZe3t6fqP3g" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Shares underlying warrants outstanding</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">1</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">1</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertibleDebtSecuritiesMember_zKKM7PBQz3y6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Shares underlying convertible notes outstanding</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">27,223,191</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">20,339,299</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertiblePreferredStockMember_zUZQjZfv5LTb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Shares underlying convertible preferred stock outstanding</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">131,804,100</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">128,626,878</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_zLtNR7DH9956" style="vertical-align: bottom; background-color: White"> <td>Anti-dilutive weighted average shares outstanding</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">159,027,292</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">148,966,178</td><td style="text-align: left"> </td></tr> </table> Diluted loss per share for the three months ended June 30, 2023 is calculated as follows: SCHEDULE OF DILUTED LOSS PER SHARE <table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" id="xdx_492_20230401__20230630_z6zfQnCLMCV1" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Three months ended</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">June 30, 2023</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40F_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_pp0p0_z3fZdD4swtW" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 80%; text-align: left">Net income attributable to common shareholders</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 16%; text-align: right">43</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--IncomeAttributableToConvertibleDebenturesAndPreferredStock_pp0p0_zz3eCTgk2wAc" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Income attributable to convertible instruments</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(179</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_pp0p0_znBBRYpM9pLi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Diluted loss attributable to common shareholders</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(136</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--BasicSharesOutstanding_pid_zvu8hXMMP0Ec" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Basic shares outstanding</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">32,132,907</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_404_ecustom--ConvertibleInstuments_pid_zdkFkgb9Mu5g" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Dilutive convertible instruments</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">128,531,628</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_404_ecustom--DilutedSharesOutstanding_pid_zI9sG1ASVqLi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Diluted shares outstanding</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">160,664,535</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--DilutedLossPerShare_pid_zxI1vvuwN8q3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Diluted loss per share</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.00</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> </table>

<p id="xdx_891_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zhmqeqgTnZX7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The following potentially dilutive securities have been excluded from the computations of diluted weighted average shares outstanding as of June 30, 2023 and 2022, as they would be anti-dilutive: SCHEDULE OF ANTI-DILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_494_20230101__20230630_z7XWd4IqpPIl" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" id="xdx_49B_20220101__20220630_zCgkkRzzwH1k" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">Six Months Ended June 30,</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td></tr> <tr id="xdx_40D_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zqZe3t6fqP3g" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Shares underlying warrants outstanding</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">1</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">1</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertibleDebtSecuritiesMember_zKKM7PBQz3y6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Shares underlying convertible notes outstanding</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">27,223,191</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">20,339,299</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertiblePreferredStockMember_zUZQjZfv5LTb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Shares underlying convertible preferred stock outstanding</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">131,804,100</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">128,626,878</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_zLtNR7DH9956" style="vertical-align: bottom; background-color: White"> <td>Anti-dilutive weighted average shares outstanding</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">159,027,292</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">148,966,178</td><td style="text-align: left"> </td></tr> </table>

27223191

20339299

131804100

128626878

159027292

148966178

Diluted loss per share for the three months ended June 30, 2023 is calculated as follows: SCHEDULE OF DILUTED LOSS PER SHARE <table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" id="xdx_492_20230401__20230630_z6zfQnCLMCV1" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Three months ended</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">June 30, 2023</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40F_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_pp0p0_z3fZdD4swtW" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 80%; text-align: left">Net income attributable to common shareholders</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 16%; text-align: right">43</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--IncomeAttributableToConvertibleDebenturesAndPreferredStock_pp0p0_zz3eCTgk2wAc" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Income attributable to convertible instruments</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">(179</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_pp0p0_znBBRYpM9pLi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Diluted loss attributable to common shareholders</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(136</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--BasicSharesOutstanding_pid_zvu8hXMMP0Ec" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Basic shares outstanding</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right">32,132,907</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_404_ecustom--ConvertibleInstuments_pid_zdkFkgb9Mu5g" style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left">Dilutive convertible instruments</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">128,531,628</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_404_ecustom--DilutedSharesOutstanding_pid_zI9sG1ASVqLi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Diluted shares outstanding</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">160,664,535</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--DilutedLossPerShare_pid_zxI1vvuwN8q3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Diluted loss per share</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.00</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> </table>

-179

-136

32132907 128531628 160664535 -0.00

Derivative Liability The Company has financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in the Company’s balance sheet. The Company measures these instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change. The Company values its derivative liabilities using the Black-Scholes option valuation model. The resulting liability is valued at each reporting date and the change in the liability is reflected as change in derivative liability in the statement of operations.

Fair Value of Financial Instruments Our short-term financial instruments, including cash, accounts payable and other liabilities, consist primarily of instruments with maturities of one year or less when acquired. We believe that the fair values of our current assets and current liabilities approximate their reported carrying amounts. The derivative liabilities consist of our convertible notes and Series F preferred stock with variable conversion features. The Company uses the Black-Scholes option-pricing model to value its derivative liabilities which incorporate the Company’s stock price, volatility, U.S. risk-free interest rate, dividend rate, and estimated life.

Fair Value Measurements The U.S. GAAP Valuation Hierarchy establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The Company has recorded a derivative liability for its convertible notes and preferred stock with variable conversion features as of June 30, 2023 and December 31, 2022. The tables below summarize the fair values of our financial liabilities as of June 30, 2023 and December 31, 2022 (in thousands): SCHEDULE OF FAIR VALUES OF FINANCIAL LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_49A_20230630_zGvasi551clf" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" id="xdx_499_20230630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_z3LDNk5Sm7s3" style="border-bottom: Black 1.5pt solid; text-align: center">Level 1</td><td> </td><td> </td> <td colspan="2" id="xdx_492_20230630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_z2Dxuphea26d" style="border-bottom: Black 1.5pt solid; text-align: center">Level 2</td><td> </td><td> </td> <td colspan="2" id="xdx_49E_20230630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z8GpJVTHJUE1" style="border-bottom: Black 1.5pt solid; text-align: center">Level 3</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="padding-bottom: 1.5pt; text-align: center">Fair Value at June 30,</td><td> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">Fair Value Measurement Using</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Level 1</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Level 2</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Level 3</td><td> </td></tr> <tr id="xdx_40C_eus-gaap--ConvertibleDebtFairValueDisclosures_iI_zgv3ewCbUgi7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Convertible notes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">297</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">297</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--PreferredStockFairValueDisclosures_iI_zC9bTpT6chnh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Preferred stock</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">713</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">713</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DerivativeLiabilitiesCurrent_iI_zogsaAB42l6d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Derivative liability</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,010</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,010</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_496_20221231_zOZwprCOjRwb" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td><td> </td> <td colspan="2" id="xdx_492_20221231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zlbBTAkNznA1" style="border-bottom: Black 1.5pt solid; text-align: center">Level 1</td><td> </td><td> </td> <td colspan="2" id="xdx_49D_20221231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zCwSEPK42tPg" style="border-bottom: Black 1.5pt solid; text-align: center">Level 2</td><td> </td><td> </td> <td colspan="2" id="xdx_493_20221231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zkZTOBoKpszi" style="border-bottom: Black 1.5pt solid; text-align: center">Level 3</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="padding-bottom: 1.5pt; text-align: center">Fair Value at December 31,</td><td> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">Fair Value Measurement Using</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Level 1</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Level 2</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Level 3</td><td> </td></tr> <tr id="xdx_402_eus-gaap--ConvertibleDebtFairValueDisclosures_iI_zjW11vVLACBf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Convertible notes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">285</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">285</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--PreferredStockFairValueDisclosures_iI_zWPT4RDk04D9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Preferred stock</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">595</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">595</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DerivativeLiabilitiesCurrent_iI_z4GbU9srwjd6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Derivative liability</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">880</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">880</td><td style="text-align: left"> </td></tr> </table> <p id="xdx_896_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisGainLossIncludedInEarningsTextBlock_zzCvS9iVWBxa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The reconciliation of the derivative liability measured at fair value on a recurring basis using unobservable inputs (Level 3) is as follows (in thousands): SCHEDULE OF DERIVATIVE LIABILITY MEASURED AT FAIR VALUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_49C_20230101__20230630_zzljRJfiaWbg" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" id="xdx_49F_20220101__20220630_z5S7Z61XnVHk" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">Six Months Ended June 30,</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td></tr> <tr id="xdx_40A_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue_iS_zgFVQBpFwNri" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Balance at beginning of year</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">880</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,124</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityPurchases_zrNGEK0utBmh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Additions to derivative instruments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityReclassification_zogXcPWNDrok" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Reclassification on conversion</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(507</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityGainLossIncludedInEarnings_zoej9hOoiue4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Loss on change in fair value of derivative liability</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">130</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,459</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue_iE_zvrzvz98zD18" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -7.25pt; padding-left: 7.25pt">Balance at end of period</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,010</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,076</td><td style="text-align: left"> </td></tr> </table>

SCHEDULE OF FAIR VALUES OF FINANCIAL LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_49A_20230630_zGvasi551clf" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" id="xdx_499_20230630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_z3LDNk5Sm7s3" style="border-bottom: Black 1.5pt solid; text-align: center">Level 1</td><td> </td><td> </td> <td colspan="2" id="xdx_492_20230630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_z2Dxuphea26d" style="border-bottom: Black 1.5pt solid; text-align: center">Level 2</td><td> </td><td> </td> <td colspan="2" id="xdx_49E_20230630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z8GpJVTHJUE1" style="border-bottom: Black 1.5pt solid; text-align: center">Level 3</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="padding-bottom: 1.5pt; text-align: center">Fair Value at June 30,</td><td> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">Fair Value Measurement Using</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Level 1</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Level 2</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Level 3</td><td> </td></tr> <tr id="xdx_40C_eus-gaap--ConvertibleDebtFairValueDisclosures_iI_zgv3ewCbUgi7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Convertible notes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">297</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">297</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--PreferredStockFairValueDisclosures_iI_zC9bTpT6chnh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Preferred stock</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">713</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">713</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DerivativeLiabilitiesCurrent_iI_zogsaAB42l6d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Derivative liability</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,010</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,010</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_496_20221231_zOZwprCOjRwb" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td><td> </td> <td colspan="2" id="xdx_492_20221231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zlbBTAkNznA1" style="border-bottom: Black 1.5pt solid; text-align: center">Level 1</td><td> </td><td> </td> <td colspan="2" id="xdx_49D_20221231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zCwSEPK42tPg" style="border-bottom: Black 1.5pt solid; text-align: center">Level 2</td><td> </td><td> </td> <td colspan="2" id="xdx_493_20221231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zkZTOBoKpszi" style="border-bottom: Black 1.5pt solid; text-align: center">Level 3</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="padding-bottom: 1.5pt; text-align: center">Fair Value at December 31,</td><td> </td><td> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center">Fair Value Measurement Using</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Level 1</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Level 2</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Level 3</td><td> </td></tr> <tr id="xdx_402_eus-gaap--ConvertibleDebtFairValueDisclosures_iI_zjW11vVLACBf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Convertible notes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">285</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">285</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--PreferredStockFairValueDisclosures_iI_zWPT4RDk04D9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Preferred stock</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">595</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">595</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DerivativeLiabilitiesCurrent_iI_z4GbU9srwjd6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Derivative liability</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">880</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">880</td><td style="text-align: left"> </td></tr> </table>

297000

713000 713000

1010000

285000

595000 595000

880000

<p id="xdx_896_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisGainLossIncludedInEarningsTextBlock_zzCvS9iVWBxa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The reconciliation of the derivative liability measured at fair value on a recurring basis using unobservable inputs (Level 3) is as follows (in thousands): SCHEDULE OF DERIVATIVE LIABILITY MEASURED AT FAIR VALUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_49C_20230101__20230630_zzljRJfiaWbg" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" id="xdx_49F_20220101__20220630_z5S7Z61XnVHk" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">Six Months Ended June 30,</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td></tr> <tr id="xdx_40A_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue_iS_zgFVQBpFwNri" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Balance at beginning of year</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">880</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,124</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityPurchases_zrNGEK0utBmh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Additions to derivative instruments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityReclassification_zogXcPWNDrok" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Reclassification on conversion</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(507</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityGainLossIncludedInEarnings_zoej9hOoiue4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Loss on change in fair value of derivative liability</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">130</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,459</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue_iE_zvrzvz98zD18" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: -7.25pt; padding-left: 7.25pt">Balance at end of period</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,010</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,076</td><td style="text-align: left"> </td></tr> </table>

880000

1124000

-507000

130000

1459000

1010000

2076000

Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which the related temporary difference becomes deductible.

Recent Accounting Pronouncements There have not been any recent changes in accounting pronouncements and Accounting Standards Update (ASU) issued by the Financial Accounting Standards Board (FASB) during the six months ended June 30, 2023 that are of significance or potential significance to the Company.

NOTE 4 – SUPPLEMENTAL CASH FLOW INFORMATION The following table contains additional information for the periods reported (in thousands). SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_49B_20230101__20230630_zIWtX3xX0Mjc" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" id="xdx_490_20220101__20220630_zrfFUyYA4yg7" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">Six Months Ended June 30,</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td></tr> <tr id="xdx_406_eus-gaap--NoncashInvestingAndFinancingItemsAbstract_iB_zkLIlSZVqFk6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Non-cash financial activities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--CommonStockIssuedOnConversionOfNotesPayableAndDerivativeLiability_pn3n3_zjQWF01ZMqZh" style="vertical-align: bottom; background-color: White"> <td style="width: 64%; text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Common stock issued on conversion of notes payable and derivative liability</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">790</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_ecustom--DebenturesConvertedToCommonStock_pn3n3_zk5unuFJpFU6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Debentures converted to common stock</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">462</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--DerivativeLiabilityExtinguishedUponConversionOfNotesPayable_pn3n3_zT0gwowug2g" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Derivative liability extinguished upon conversion of notes payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">507</td><td style="text-align: left"> </td></tr> </table> There was no cash paid for interest and income taxes for the six months ended June 30, 2023 and 2022.

The following table contains additional information for the periods reported (in thousands). SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_49B_20230101__20230630_zIWtX3xX0Mjc" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" id="xdx_490_20220101__20220630_zrfFUyYA4yg7" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">Six Months Ended June 30,</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td> </td><td> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td> </td></tr> <tr id="xdx_406_eus-gaap--NoncashInvestingAndFinancingItemsAbstract_iB_zkLIlSZVqFk6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Non-cash financial activities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--CommonStockIssuedOnConversionOfNotesPayableAndDerivativeLiability_pn3n3_zjQWF01ZMqZh" style="vertical-align: bottom; background-color: White"> <td style="width: 64%; text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Common stock issued on conversion of notes payable and derivative liability</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">790</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_ecustom--DebenturesConvertedToCommonStock_pn3n3_zk5unuFJpFU6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Debentures converted to common stock</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">462</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--DerivativeLiabilityExtinguishedUponConversionOfNotesPayable_pn3n3_zT0gwowug2g" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Derivative liability extinguished upon conversion of notes payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">507</td><td style="text-align: left"> </td></tr> </table>

790000 462000 507000

NOTE 5 – ACCRUED EXPENSES Accrued expenses consist of the following (in thousands): SCHEDULE OF ACCRUED EXPENSES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_491_20230630_zIp1TzIwLgV2" style="border-bottom: Black 1.5pt solid; text-align: center">June 30, 2023</td><td> </td><td> </td> <td colspan="2" id="xdx_49B_20221231_zsAL1EEi3pca" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, 2022</td><td> </td></tr> <tr id="xdx_40B_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_pn3n3_maALCzMvI_zBfkqO8fDI0a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Accrued compensation and benefits</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,326</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,326</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_ecustom--AccruedResearchAndDevelopmentCurrent_iI_pn3n3_maALCzMvI_zezLx26dSjqf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Accrued research and development</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">233</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">233</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--OtherAccruedLiabilitiesCurrent_iI_pn3n3_maALCzMvI_zKrlqOVkeXJl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Accrued other</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">561</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">519</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AccruedLiabilitiesCurrent_iTI_pn3n3_mtALCzMvI_zYZcLKN8tHW7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -7.3pt; padding-left: 14.55pt">Total accrued expenses</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,120</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,078</td><td style="text-align: left"> </td></tr> </table>

Accrued expenses consist of the following (in thousands): SCHEDULE OF ACCRUED EXPENSES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_491_20230630_zIp1TzIwLgV2" style="border-bottom: Black 1.5pt solid; text-align: center">June 30, 2023</td><td> </td><td> </td> <td colspan="2" id="xdx_49B_20221231_zsAL1EEi3pca" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, 2022</td><td> </td></tr> <tr id="xdx_40B_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_pn3n3_maALCzMvI_zBfkqO8fDI0a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Accrued compensation and benefits</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,326</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,326</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_ecustom--AccruedResearchAndDevelopmentCurrent_iI_pn3n3_maALCzMvI_zezLx26dSjqf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Accrued research and development</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">233</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">233</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--OtherAccruedLiabilitiesCurrent_iI_pn3n3_maALCzMvI_zKrlqOVkeXJl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Accrued other</td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">561</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">519</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AccruedLiabilitiesCurrent_iTI_pn3n3_mtALCzMvI_zYZcLKN8tHW7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -7.3pt; padding-left: 14.55pt">Total accrued expenses</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,120</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,078</td><td style="text-align: left"> </td></tr> </table>

1326000

233000 233000

561000

519000

2120000

2078000

NOTE 6 – DERIVATIVE LIABILITY We account for equity-linked financial instruments, such as our convertible preferred stock, convertible debentures and our common stock warrants as either equity instruments or derivative liabilities depending on the specific terms of the respective agreement. Equity-linked financial instruments are accounted for as derivative liabilities, in accordance with ASC Topic 815 – Derivatives and Hedging, if the instrument allows for cash settlement or issuance of a variable number of shares. We classify derivative liabilities on the balance sheet at fair value, and changes in fair value during the periods presented in the statement of operations, which is revalued at each balance sheet date subsequent to the initial issuance of the stock warrant. We have issued convertible debentures and preferred stock which contain variable conversion features, anti-dilution protection and other conversion price adjustment provisions. As a result, the Company assessed its outstanding equity-linked financial instruments and concluded that the convertible notes and preferred stock are subject to derivative accounting. The fair value of the conversion feature is classified as a liability in the consolidated financial statements, with the change in fair value during the periods presented recorded in the consolidated statement of losses. During the three months ended June 30, 2023 and 2022, we recorded income of approximately $0.2 million and expense of approximately $1.1 million, respectively, related to the change in fair value of the derivative liabilities during the periods. During the six months ended June 30, 2023 and 2022, we recorded expense of approximately $0.1 million and $1.5 million, respectively. For purpose of determining the fair market value of the derivative liability, the Company used Black Scholes option valuation model. The significant assumptions used in the Black Scholes valuations of the derivatives at June 30, 2023 and 2022 are as follows: <p id="xdx_89F_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock_zjJb37qfIDWe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">SCHEDULE OF DERIVATIVE LIABILITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; font-size: 11pt"> </td><td style="text-align: center"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">For the Six Months Ended June 30,</td><td style="text-align: center; font-size: 11pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; font-size: 11pt"> </td><td style="text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td style="text-align: center"> </td><td style="text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Expected dividends</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_90F_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20230630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zsxCnzSQR0M8" title="Derivative liability measurement input">0%</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_905_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20221231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zeTcf2I3CKD1" title="Derivative liability measurement input">0%</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90B_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20230630__srt--RangeAxis__srt--MinimumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zjtokQc2CKP2" title="Derivative liability measurement input">183% - <span id="xdx_90B_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20230630__srt--RangeAxis__srt--MaximumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zOLDoA3SwYbe" title="Derivative liability measurement input">261%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20221231__srt--RangeAxis__srt--MinimumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zDrdh3nNdEYg" title="Derivative liability measurement input">198% - <span id="xdx_909_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20221231__srt--RangeAxis__srt--MaximumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_z3CbYjNTMnT2" title="Derivative liability measurement input">260%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Risk free interest rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20230630__srt--RangeAxis__srt--MinimumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zT6eSdlkhfA9" title="Derivative liability measurement input">5.43% - <span id="xdx_909_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20230630__srt--RangeAxis__srt--MaximumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zz68xcdPLOb7" title="Derivative liability measurement input">5.47%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20221231__srt--RangeAxis__srt--MinimumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zUIzA62gaE2e" title="Derivative liability measurement input">0.22% - <span id="xdx_907_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20221231__srt--RangeAxis__srt--MaximumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_z0VCLFmV4xF4" title="Derivative liability measurement input">2.86%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected term</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90B_eus-gaap--DebtSecuritiesAvailableForSaleTerm_iI_dtM_c20230630__srt--RangeAxis__srt--MinimumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zT3bn0HC8y6b" title="Expected term">3 – <span id="xdx_908_eus-gaap--DebtSecuritiesAvailableForSaleTerm_iI_dtM_c20230630__srt--RangeAxis__srt--MaximumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zFNbRw7lbND3" title="Expected term">6 Months</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--DebtSecuritiesAvailableForSaleTerm_iI_dtM_c20221231__srt--RangeAxis__srt--MinimumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zCY5r9bMpg8j" title="Expected term">3 – <span id="xdx_905_eus-gaap--DebtSecuritiesAvailableForSaleTerm_iI_dtM_c20221231__srt--RangeAxis__srt--MaximumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zytTbIuwtlNc" title="Expected term">21 Months</td><td style="text-align: left"> </td></tr> </table> As of June 30, 2023 and December 31, 2022, the derivative liability recognized in the financial statements was approximately $1.0 million and $0.9 million, respectively.

200000

-1100000

-100000

-1500000

<p id="xdx_89F_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock_zjJb37qfIDWe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">SCHEDULE OF DERIVATIVE LIABILITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; font-size: 11pt"> </td><td style="text-align: center"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">For the Six Months Ended June 30,</td><td style="text-align: center; font-size: 11pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; font-size: 11pt"> </td><td style="text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td style="text-align: center"> </td><td style="text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Expected dividends</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_90F_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20230630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zsxCnzSQR0M8" title="Derivative liability measurement input">0%</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_905_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20221231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zeTcf2I3CKD1" title="Derivative liability measurement input">0%</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90B_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20230630__srt--RangeAxis__srt--MinimumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zjtokQc2CKP2" title="Derivative liability measurement input">183% - <span id="xdx_90B_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20230630__srt--RangeAxis__srt--MaximumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zOLDoA3SwYbe" title="Derivative liability measurement input">261%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20221231__srt--RangeAxis__srt--MinimumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zDrdh3nNdEYg" title="Derivative liability measurement input">198% - <span id="xdx_909_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20221231__srt--RangeAxis__srt--MaximumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_z3CbYjNTMnT2" title="Derivative liability measurement input">260%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Risk free interest rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20230630__srt--RangeAxis__srt--MinimumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zT6eSdlkhfA9" title="Derivative liability measurement input">5.43% - <span id="xdx_909_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20230630__srt--RangeAxis__srt--MaximumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zz68xcdPLOb7" title="Derivative liability measurement input">5.47%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20221231__srt--RangeAxis__srt--MinimumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zUIzA62gaE2e" title="Derivative liability measurement input">0.22% - <span id="xdx_907_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20221231__srt--RangeAxis__srt--MaximumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_z0VCLFmV4xF4" title="Derivative liability measurement input">2.86%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected term</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90B_eus-gaap--DebtSecuritiesAvailableForSaleTerm_iI_dtM_c20230630__srt--RangeAxis__srt--MinimumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zT3bn0HC8y6b" title="Expected term">3 – <span id="xdx_908_eus-gaap--DebtSecuritiesAvailableForSaleTerm_iI_dtM_c20230630__srt--RangeAxis__srt--MaximumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zFNbRw7lbND3" title="Expected term">6 Months</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--DebtSecuritiesAvailableForSaleTerm_iI_dtM_c20221231__srt--RangeAxis__srt--MinimumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zCY5r9bMpg8j" title="Expected term">3 – <span id="xdx_905_eus-gaap--DebtSecuritiesAvailableForSaleTerm_iI_dtM_c20221231__srt--RangeAxis__srt--MaximumMember__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zytTbIuwtlNc" title="Expected term">21 Months</td><td style="text-align: left"> </td></tr> </table>

183

261

198

260

5.43

5.47

0.22

2.86

P3M

P6M

P3M

P21M

1000000.0

900000

NOTE 7 – COMMITMENTS AND CONTINGENCIES Operating Leases The Company currently does not have any ongoing leases for office space. It has availability to office space on an as needed basis. Its employees work on a remote basis. There was no rent expense for the three and six months ended June 30, 2023 and 2022 Legal Matters The Company is subject at times to legal proceedings and claims, which arise in the ordinary course of its business. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters should not have a material adverse effect on its financial position, results of operations or liquidity. Uncertainty Due to Geopolitical Events Due to Russia’s invasion of Ukraine, which began in February 2022, and the resulting sanctions and other actions against Russia and Belarus, there has been uncertainty and disruption in the global economy. Although the Russian war against Ukraine did not have a material adverse impact on the Company’s financial results for the year ended December 31, 2022, at this time the Company is unable to fully assess the aggregate impact the Russian war against Ukraine will have on its business due to various uncertainties, which include, but are not limited to, the duration of the war, the war’s effect on the economy, its impact to the business of the Company, and actions that may be taken by governmental authorities related to the war. COVID-19 Uncertainty On March 11, 2020, the World Health Organization declared a pandemic related to the rapidly spreading coronavirus (COVID-19) outbreak, which has led to a global health emergency. The extent of the public-health impact of the outbreak is currently unknown and rapidly evolving, and the related health crisis could adversely affect the global economy, resulting in an economic downturn. Any disruption of the Company’s facilities or those of our suppliers could likely adversely impact the Company’s operations. At this time, there is significant uncertainty relating to the potential effect of the novel coronavirus on our business.

NOTE 8 – CAPITAL STOCK AND STOCKHOLDERS’ EQUITY Preferred Stock As of June 30, 2023, there were outstanding <span id="xdx_90C_eus-gaap--PreferredStockSharesOutstanding_iI_pid_c20230630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zosc0QhramB6" title="Preferred stock, shares outstanding">134 shares of Series A Preferred Stock, <span id="xdx_90A_eus-gaap--PreferredStockSharesOutstanding_iI_pid_c20230630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesBPreferredStockMember_z69j4uhRYnr2" title="Preferred stock, shares outstanding">71 shares of Series B Preferred Stock, <span id="xdx_90C_eus-gaap--PreferredStockSharesOutstanding_iI_pid_c20230630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesCPreferredStockMember_zRdG8uLgfsI8" title="Preferred stock, shares outstanding">290 shares of Series C Preferred Stock, <span id="xdx_90B_eus-gaap--PreferredStockSharesOutstanding_iI_pid_c20230630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember_zUx3WI9mNKa1" title="Preferred stock, shares outstanding">5,000 shares of Series D Preferred Stock, <span id="xdx_900_eus-gaap--PreferredStockSharesOutstanding_iI_pid_c20230630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesEPreferredStockMember_zeA5fQcc8dwd" title="Preferred stock, shares outstanding">5,000 shares of Series E Preferred Stock and <span id="xdx_908_eus-gaap--PreferredStockSharesOutstanding_iI_pid_c20230630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesFPreferredStockMember_zZxfeDjCota9" title="Preferred stock, shares outstanding">8,000 shares of Series F Preferred Stock. As a result of past equity financings and conversions of debentures, the conversion prices of (i) our Series A Preferred Stock has been reduced to $29,812.50 per share at June 30, 2023, (ii) our Series B Preferred Stock has been reduced to $0.0217 per share at June 30, 2023, (iii) 200 shares of our Series C preferred stock has been reduced to $1,125.00 per share at June 30, 2023, (iv) 90.43418 shares of our Series C Preferred Stock has been reduced to $562.50 per share at June 30, 2023. Common Stock The Company is authorized to issue 1,000,000,000 shares of common stock. There were 32,132,907 shares of common stock outstanding at June 30, 2023 and December 31, 2022, respectively. Common Stock Activity During the six months ended June 30, 2022, we issued a total of 20,363,686 shares of common stock, valued at $789,699, upon the conversion of $461,972 principal amount of our convertible debentures. We recorded loss on conversion of debt of $0 and $23,746 during the three and six months ended June 30, 2022, respectively.

134

290

5000

8000

As a result of past equity financings and conversions of debentures, the conversion prices of (i) our Series A Preferred Stock has been reduced to $29,812.50 per share at June 30, 2023, (ii) our Series B Preferred Stock has been reduced to $0.0217 per share at June 30, 2023, (iii) 200 shares of our Series C preferred stock has been reduced to $1,125.00 per share at June 30, 2023, (iv) 90.43418 shares of our Series C Preferred Stock has been reduced to $562.50 per share at June 30, 2023.

29812.50

0.0217

1125.00

562.50

1000000000

32132907

20363686

789699

461972

-23746

NOTE 9 – CONVERTIBLE DEBENTURES AND NOTES June 2021 Debentures On June 18, 2021, the Company sold an aggregate of $600,000 of senior convertible debentures (“June Debentures”) for (i) $500,000 in cash and (ii) $100,000 in cancellation of outstanding indebtedness to existing accredited and institutional investors of the Company. The June Debentures (i) are non-interest bearing, (ii) have a maturity date of June 18, 2022, (iii) are convertible into shares of Common Stock at the election of the holders at any time, subject to a beneficial ownership limitation of <span id="xdx_909_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_c20210618__us-gaap--DebtInstrumentAxis__custom--JuneTwentyTwentyOneDebentureMember_zlHHaAeWj9fh" title="Beneficial ownership percentage">9.99%, and (iv) <span id="xdx_907_eus-gaap--ConvertiblePreferredStockTermsOfConversion_c20210618__20210618__us-gaap--DebtInstrumentAxis__custom--JuneTwentyTwentyOneDebentureMember_zN1yYCtiEPmc" title="Conversion price, description">have a conversion price equal to the lesser of $24.75 and 85% of the lowest Volume Weighted Average Price (VWAP) during the five (5) trading days immediately prior to the conversion date, subject to adjustment, as described therein. The maturity date of the debentures has been extended to December 31, 2023. There were no other modifications to the June 2021 Debentures. During the six months ended June 30, 2022, $461,972 of June Debentures have been converted to Common Stock. June Debentures in the amount of $100,000 remains outstanding at June 30, 2023. We have amortized $21,440 and $54,292 of discount to interest expense during the three and six months ended June 30, 2022, respectively and $203,458 of discount has been charged off against loss upon the conversion of the June Debentures during the six months ended June 30, 2022. October 2020 Debentures On October 23, 2020, the Company sold an aggregate of $600,000 of senior convertible debentures (“October Debentures”) for (i) $500,000 in cash and (ii) $100,000 in cancellation of outstanding indebtedness to existing accredited and institutional investors of the Company. The October Debentures (i) are non-interest bearing, (ii) have a maturity date of October 23, 2021, (iii) are convertible into shares of common stock at the election of the holders at any time, subject to a beneficial ownership limitation of <span id="xdx_904_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_c20201023__us-gaap--DebtInstrumentAxis__custom--OctoberTwentyTwentyDebenturesMember_zG53QkgYkj4i" title="Beneficial ownership percentage">9.99%, and (iv) <span id="xdx_90A_eus-gaap--ConvertiblePreferredStockTermsOfConversion_c20201023__20201023__us-gaap--DebtInstrumentAxis__custom--OctoberTwentyTwentyDebenturesMember_zsAYZneGJkjh" title="Conversion price, description">have a conversion price equal to the lesser of (i) $24.75 and (ii) 85% of the lowest volume-weighted average price during the five trading days immediately prior to the date of conversion. The maturity date of the debentures has been extended to December 31, 2023. There were no other modifications to the October Debentures. October Debentures in the amount of $100,000 remain outstanding at June 30, 2023. September 2017 Debentures On September 12, 2017, we entered into an exchange agreement (“Exchange Agreement”) with certain holders of our Series A Preferred Stock and Series B Preferred Stock. Pursuant to the terms of the Exchange Agreement, we issued to the investors approximately $2.5 million in principal amount of senior convertible debentures (the “September 2017 Debentures”) in exchange for <span id="xdx_90F_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_pid_c20170912__20170912__us-gaap--DebtInstrumentAxis__custom--SeptemberTwentySeventeenthDebenturesMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zMp1sXOUUkXk" title="Exchange of shares">1,614.8125 shares of Series A Preferred Stock with a stated value of approximately $<span id="xdx_90A_eus-gaap--PreferredStockValue_iI_pn5n6_c20170912__us-gaap--DebtInstrumentAxis__custom--SeptemberTwentySeventeenthDebenturesMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zZtPpw7EmzHa" title="Stated value of the preferred shares">1.6 million and <span id="xdx_908_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_c20170912__20170912__us-gaap--DebtInstrumentAxis__custom--SeptemberTwentySeventeenthDebenturesMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesBPreferredStockMember_zs55g4KMEQdc" title="Exchange of shares">890 shares of Series B Preferred Stock with a stated value of approximately $<span id="xdx_904_eus-gaap--PreferredStockValue_iI_pn5n6_c20170912__us-gaap--DebtInstrumentAxis__custom--SeptemberTwentySeventeenthDebenturesMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesBPreferredStockMember_z1xwMRMh5ewj" title="Stated value of the preferred shares">0.9 million. On September 12, 2017, we sold an aggregate of $320,000 of our September 2017 Debentures. The sale consisted of $250,000 in cash and the cancellation of $70,000 of obligations of the Company. The maturity date of the September 2017 Debentures has been extended to December 31, 2023. There were no other modifications to the September 2017 Debentures. September Debentures in the amount of $110,072 remain outstanding at June 30, 2023.

600000

500000

100000

2022-06-18

0.0999

have a conversion price equal to the lesser of $24.75 and 85% of the lowest Volume Weighted Average Price (VWAP) during the five (5) trading days immediately prior to the conversion date, subject to adjustment, as described therein.

461972

100000

21440

54292

203458

600000

500000

100000

0.0999

have a conversion price equal to the lesser of (i) $24.75 and (ii) 85% of the lowest volume-weighted average price during the five trading days immediately prior to the date of conversion.

100000

2500000

1614.8125

1600000

890

900000

320000

250000

70000

2023-12-31

110072

NOTE 10 – RELATED PARTY TRANSACTIONS In September of 2021, we began paying $10,000 per month to Silvestre Law Group, P.C. (“SLG”), our outside corporate counsel, for our SEC compliance legal work (“Monthly Fee”). Mr. Silvestre, our CEO since August 16, 2021, is a principal of SLG. Additionally, SLG bills us at their standard rates for additional services outside of the scope of the Monthly Fee. For the three and six months ended June 30, 2023, we accrued $30,000 and $60,000, respectively, in legal fees to SLG, and made no payments during those periods. For the three and six months ended June 30, 2022, we accrued $30,000 and $65,843, respectively, in legal fees to Silvestre Law Group. We paid Silvestre Law Group $<span id="xdx_905_ecustom--PaymentForServices_c20230101__20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SilvestreLawGroupPCMember__srt--ProductOrServiceAxis__us-gaap--ServiceOtherMember_zJtWeaGfqYfa" title="Payment for services">40,000 for the Monthly Fee and recorded an additional $<span id="xdx_905_eus-gaap--LegalFees_c20230101__20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SilvestreLawGroupPCMember__srt--ProductOrServiceAxis__us-gaap--ServiceOtherMember_zxpCUFBvH35c" title="Legal fees">25,843 in legal fees for other services not covered by the Monthly Fee during the six months ended June 30, 2022. The company had a balance due to Silvestre Law Group of $369,848 and $309,848 at June 30, 2023 and December 31, 2022, respectively. Silvestre Law Group also holds $290,000 of our convertible debentures at June 30, 2023 and December 31, 2022. During the three and six months ended June 30, 2023, we recorded imputed interest of $3,625 and $7,250, respectively, on the debentures.

10000

30000

60000

30000

65843

40000

25843

369848

309848

290000

3625 7250