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PREPAID EXPENSE – NONCURRENT PORTION	3 Months Ended
Mar. 31, 2023
Prepaid Expense Noncurrent Portion
PREPAID EXPENSE – NONCURRENT PORTION	NOTE 6 - PREPAID EXPENSE – NONCURRENT PORTION Effective July 13, 2022 the Company entered into a manufacturing contract with Montrade S.p.A., (“Montrade”) a company based in Bologna, Italy, for Montrade to manufacture and install the consumable manufacturing equipment. The Company made an initial payment of $589,265 USD on July 11, 2022 and is required to make additional payments of up to $1,086,465 USD for the module as certain stages are completed. As of March 31, 2023 no additional payments have been made. As of December 31, 2022, $130,948 of initial payment was expensed for design services completed by Montrade. The remaining payment of $458,317 is related to the manufacturing of the module for the automated manufacture of consumables for the Company’s proprietary, patented and patent pending Heat-not-Burn system. The $458,317 payment has been recorded as Prepaid expenses – noncurrent portion and remains categorized as such at March 31, 2023. Montrade is an industry leading designer and manufacturer of machines for a wide range of products, including heated tobacco products.

PREPAID EXPENSE – NONCURRENT PORTION

3 Months Ended

Mar. 31, 2023

NOTE 6 - PREPAID EXPENSE – NONCURRENT PORTION

Effective July 13, 2022 the Company entered into a manufacturing contract with Montrade S.p.A., (“Montrade”) a company based in Bologna, Italy, for Montrade to manufacture and install the consumable manufacturing equipment. The Company made an initial payment of $589,265 USD on July 11, 2022 and is required to make additional payments of up to $1,086,465 USD for the module as certain stages are completed. As of March 31, 2023 no additional payments have been made. As of December 31, 2022, $130,948 of initial payment was expensed for design services completed by Montrade. The remaining payment of $458,317 is related to the manufacturing of the module for the automated manufacture of consumables for the Company’s proprietary, patented and patent pending Heat-not-Burn system. The $458,317 payment has been recorded as Prepaid expenses – noncurrent portion and remains categorized as such at March 31, 2023. Montrade is an industry leading designer and manufacturer of machines for a wide range of products, including heated tobacco products.