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NOTE 1 - NATURE OF BUSINESS AND SUMMARY OF BASIS OF PRESENTATION Nature of Business CQENS Technologies, Inc. (“we”, “our”, the “Company”, “CQENS”) is a technology company with a proprietary method of heating plant-based consumable formulations that produce an aerosol that lead to the effective and efficient inhalation of the plant’s constituents. This is accomplished at a high temperature but without the accompanying constituents of combustion. Our system of heating is a high temperature, non-combustion system. Our Heat-not-Burn Tobacco Product (HTP) system is a patent-pending method of heating plant-based consumables for inhalation that is superior to other methods of ingestion, smoking, vaping, swallowing or via topical application. On December 20, 2023 we entered into a Shareholder Agreement with Asahi Corporation to establish CQENS Electronics (Hong Kong) Limited (“CEL”), a Hong Kong company, for design, development and manufacture of our heat-not-burn device (“Device”). CQENS acquired 50% membership of CEL and holds majority of the board seats including the chair. Pursuant to the establishment of CEL, CQENS entered into an exclusive, worldwide License Agreement with CEL for designing and manufacturing a consumer device consistent with our IP. CEL is included in our consolidated financial statements. Our business model is further dependent upon our ability to enter into additional strategic partnerships in the future, including alliances or joint ventures with consumer product companies, to enhance and accelerate the development and commercialization of our proposed products. We will be dependent upon third party marketing and distribution companies. We believe that our business opportunities are international in nature and include potential partnerships in the UK, the EU and Asia, including the People’s Republic of China. The recent and relatively prolonged worldwide pandemic caused by COVID-19 and current recessionary conditions has caused certain of these opportunities to be delayed. Our product development and commercialization timelines have been reset and we expect to be able to adhere that schedule over the next 12 months provided we are able to successfully raise and deploy capital. Key milestones for us over these next 12 months include entering into international joint ventures, preparing and filing certain regulatory submissions with the US FDA, and undertaking market tests in the EU. Any prolonged recessionary pressures on the international capital markets will make it more difficult for small, pre-revenue companies such as ours to raise capital. We continue to assess the impact of any recessionary conditions on our company, and at this time, we are unable to predict all possible impacts on our company, our operations and our prospects. Basis of Presentation Basis of Presentation - The following unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such interim consolidated financial statements do not include all the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete annual consolidated financial statements. The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the consolidated financial statements not misleading. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. The balance sheet as of September 30, 2024, has been derived from the Company’s annual consolidated financial statements that were audited by our independent registered public accounting firm but does not include all of the information and footnotes required for complete annual consolidated financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto which are included in our Annual Report on Form 10-K for the year ended December 31, 2023, and filed with the SEC on April 15, 2024, for a broader discussion of our business and the risks inherent in such business. Recent Accounting Pronouncements – The Company does not believe that any recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying consolidated financial statements.

Basis of Presentation Basis of Presentation - The following unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such interim consolidated financial statements do not include all the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete annual consolidated financial statements. The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the consolidated financial statements not misleading. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. The balance sheet as of September 30, 2024, has been derived from the Company’s annual consolidated financial statements that were audited by our independent registered public accounting firm but does not include all of the information and footnotes required for complete annual consolidated financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto which are included in our Annual Report on Form 10-K for the year ended December 31, 2023, and filed with the SEC on April 15, 2024, for a broader discussion of our business and the risks inherent in such business.

Recent Accounting Pronouncements – The Company does not believe that any recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying consolidated financial statements.

NOTE 2 – GOING CONCERN The Company’s consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) applicable to a going concern. This contemplates the realization of assets and the liquidation of liabilities in the normal course of business. Currently, the Company has recurring losses, with limited cash resources, with renewed research and development efforts and with no source of revenue sufficient to cover its operations costs over the next 12 months these may not allow it to continue as a going concern. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company will be dependent upon the raising of additional capital. The consolidated financial statements do not include any adjustment that might result from the outcome of this uncertainty.

NOTE 3 – STOCKHOLDERS’ EQUITY On January 29, 2024, we issued <span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20240129__20240129__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AngloChineseFinancialMember_z41Gyt3goz76" title="Number of shares">12,500 shares valued at $<span id="xdx_907_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20240129__20240129__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AngloChineseFinancialMember_z9aQPoOHV8og" title="Number of new issues">250,000 as a retainer pursuant to our engagement of Anglo-Chinese Financial as our investment banker. On March 5, 2024, we sold 1,400 shares of our common stock for $28,000 in a private transaction. We did not pay commissions or finder’s fees and are using the proceeds for working capital. On March 25, 2024, we sold 14,250 shares of our common stock for $285,000 in a private transaction. We did not pay commissions or finder’s fees and are using the proceeds for working capital. On April 24, 2024, we issued 713 shares of our common stock to an unrelated third party as compensation for their consulting services. The stock was valued at $14,260. On May 7, 2024, we sold <span id="xdx_90C_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20240507__20240507__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z7rJPv2Kb8Bf" title="Number of shares, sold">25,000 shares of our common stock for $<span id="xdx_909_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_c20240507__20240507__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zd0Gk2sF6es6" title="Number of shares sold, value">500,000 in a private transaction. We did not pay a commission or finder’s fee and are using the proceeds for working capital. On May 24, 2024, we sold <span id="xdx_903_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20240524__20240524__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zEBb0uQ080f" title="Number of shares, sold">50,000 shares of our common stock for 1,000,000 in private transactions. We did not pay a commission or finder’s fee and are using the proceeds for working capital. On June 27, 2024, we sold <span id="xdx_90A_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20240627__20240627__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zMOfCxVI1MDi" title="Number of shares, sold">113,000 shares of our common stock for $<span id="xdx_903_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_c20240627__20240627__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zrN8oBjaB4vk" title="Number of shares sold, value">2,260,000 in private transactions. We did not pay a commission or finder’s fee and are using the proceeds for working capital. On July 8, 2024, we sold <span id="xdx_90F_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20240708__20240708__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zy6DUfKlesg5" title="Number of shares, sold">25,000 shares of our common stock for $<span id="xdx_90D_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_c20240708__20240708__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zd0BN72HJWkh" title="Number of shares sold, value">500,000 in private transactions. We did not pay a commission or finder’s fee and are using the proceeds for working capital. On July 25, 2024, we sold <span id="xdx_906_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20240725__20240725__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zoaZPw4JpQBa" title="Number of shares, sold">18,750 shares of our common stock for $<span id="xdx_907_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_c20240725__20240725__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zBqrgxRIjua5" title="Number of shares sold, value">375,000 in private transactions. We did not pay a commission or finder’s fee and are using the proceeds for working capital. On August 8, 2024 we sold <span id="xdx_901_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20240808__20240808__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zBwoHs8EeEyb" title="Number of shares, sold">7,500 shares of our common stock for $<span id="xdx_905_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_c20240808__20240808__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zmNv5z3FjnP7" title="Number of shares sold, value">150,000 in a private transaction. We did not pay a commission or finder’s fee and are using the proceeds for working capital. On August 12, 2024, we issued <span id="xdx_901_eus-gaap--SharesIssued_iI_pid_c20240812__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__srt--TitleOfIndividualAxis__custom--TwentyIndividualMember_zYXqZJl7eWw4" title="Number of shares issued">206,750 shares of our common stock in total to 20 individuals for their consulting services. The stock was valued at $4,135,000. On September 3, 2024, we sold <span id="xdx_904_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20240903__20240903__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zLWNNoc0a0ij" title="Number of shares, sold">10,000 shares of our common stock for $<span id="xdx_901_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_c20240903__20240903__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zpPHmVykGVS4" title="Number of shares sold, value">200,000 in a private transaction. We did not pay a commission or finder’s fee and are using the proceeds for working capital. On September 18, 2024, we sold <span id="xdx_900_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20240918__20240918__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z4dQYKteoqWc" title="Number of shares, sold">500 shares of our common stock for $<span id="xdx_900_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_c20240918__20240918__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zmriizUsNutj" title="Number of shares sold, value">10,000 in a private transaction. We did not pay a commission or finder’s fee and are using the proceeds for working capital. On September 18, 2024, we issued 19,500 shares of our common stock in total to three individuals for their consulting services. The stock was valued at $390,000. On February 16, 2023, we sold 7,500 shares of our common stock for $150,000 in a private transaction. We did not pay a commission or finder’s fee and are using the proceeds for working capital. On March 9, 2023, we sold 1,500 shares of our common stock for $30,000 in a private transaction. We did not pay a commission or finder’s fee and are using the proceeds for working capital. On June 15, 2023, we sold 9,750 shares of our common stock for $195,000 in private transactions. We did not pay a commission or finder’s dee and are using the proceeds for working capital. On June 30, 2023, we sold 10,000 shares of our common stock for $200,000 in a private transaction. We did not pay a commission or finder’s fee and are using the proceeds for working capital. On July 6, 2023, we sold 25,000 shares of our common stock for $500,000 in a private transaction. We did not pay a commission or finder’s fee and are using the proceeds for working capital. On August 4, 2023, we sold 16,000 shares of our common stock for $320,000 in a private transaction. We did not pay commissions or finder’s fees and are using the proceeds for working capital. On August 28, 2023, we sold 5,000 shares of our common stock for $100,000 in a private transaction. We did not pay commissions or finder’s fees and are using the proceeds for working capital. On September 12, 2023, we sold 1,250 shares of our common stock for $25,000 in a private transaction. We did not pay commissions or finder’s fees and are using the proceeds for working capital. On September 15, 2023, we sold 20,000 shares of our common stock for $400,000 in two private transactions. We did not pay commissions or finder’s fees and are using the proceeds for working capital. On September 1, 2024, in line with the Company’s 2019 Equity Compensation Plan, <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20240901__20240901__us-gaap--TypeOfArrangementAxis__custom--TwoThousandNineteenEquityCompensationPlanMember_z35UPxYNI6Nj" title="Stock option, granted">117,500 non-qualified stock options were granted to consulting engineers for services provided. These options have a <span id="xdx_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1_dtM_c20240901__20240901__us-gaap--TypeOfArrangementAxis__custom--TwoThousandNineteenEquityCompensationPlanMember_zmxbIiA5okb1" title="Stock option, vesting period">12 month vesting period and have an exercise price of $<span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_c20240901__us-gaap--TypeOfArrangementAxis__custom--TwoThousandNineteenEquityCompensationPlanMember_zdi3I0R94aNe" title="Stock option, exercise price">20.00 per share. Under the Black-Scholes option pricing model, the fair value of the <span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_c20240901__20240901__us-gaap--TypeOfArrangementAxis__custom--TwoThousandNineteenEquityCompensationPlanMember_zbi3JHHbBFU8" title="Stock option fair value, shares">117,500 options is estimated at $<span id="xdx_903_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedInPeriodFairValue1_c20240901__20240901__us-gaap--TypeOfArrangementAxis__custom--TwoThousandNineteenEquityCompensationPlanMember_zgcHmgqa6cJ9" title="Stock option, fair value">1,426,607 on the date of grant using the following assumptions: stock price of $20.00 at the grant date, exercise price of the option of $<span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_c20240901__us-gaap--TypeOfArrangementAxis__custom--TwoThousandNineteenEquityCompensationPlanMember_zlr2GUL0Q4Oe" title="Stock option, exercise price">20.00, option term of <span id="xdx_909_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20240901__20240901__us-gaap--TypeOfArrangementAxis__custom--TwoThousandNineteenEquityCompensationPlanMember_zslWaEr0yxDi" title="Expected term">5 years, volatility rate of <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20240901__20240901__us-gaap--TypeOfArrangementAxis__custom--TwoThousandNineteenEquityCompensationPlanMember_zk7QM8SIznC5" title="Volatility rate">69.50%, and discount rate of <span id="xdx_90B_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDiscountRate_pid_dp_uPure_c20240901__20240901__us-gaap--TypeOfArrangementAxis__custom--TwoThousandNineteenEquityCompensationPlanMember_zpnQfIb4IKl3" title="Discount rate">4.15%. We recognized $<span id="xdx_900_eus-gaap--ShareBasedCompensation_c20240901__20240901__us-gaap--TypeOfArrangementAxis__custom--TwoThousandNineteenEquityCompensationPlanMember_zjjawScEdNy7" title="Share based compensation, expense">118,884 of the expense in the third quarter of 2024. The unrecognized portion is expected to be recognized to expense over the next four quarters. For the nine month period ended September 30, 2024, stock option expense totaled $705,030 compared to $1,109,603 for the same period in 2023. As of September 30, 2024, the Company had 26,679,383 shares of common stock issued and outstanding. The following table represents option activity for the nine months ended September 30, 2024: SCHEDULE OF OPTION ACTIVITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Number of Options</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted Average Exercise Price</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted Average Remaining Contractual Life in Years</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Aggregate Intrinsic Value</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; padding-bottom: 2.5pt">Outstanding - December 31, 2023</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zE9J9KEWIco1" style="border-bottom: Black 2.5pt double; width: 11%; text-align: right" title="Number of Option, Outstanding, Beginning">1,983,574</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zLVFtMVRN7lg" style="border-bottom: Black 2.5pt double; width: 11%; text-align: right" title="Weighted Average Exercise Price, Outstanding, Beginning">8.10</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left"> </td><td id="xdx_989_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_z92CJTP8JFp7" style="border-bottom: Black 2.5pt double; width: 11%; text-align: right" title="Weighted Average Remaining Contractual Life in Years, Outstanding">3.99</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; width: 1%; text-align: left"> </td><td style="padding-bottom: 2.5pt; width: 11%; text-align: right"> </td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercisable - December 31, 2023</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iS_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zXgEYXKbb9N8" style="text-align: right" title="Number of Option, Exercisable, Beginning">1,470,574</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iS_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zWDAiaxvnE08" style="text-align: right" title="Weighted Average Exercise Price, Exercisable, Beginning">7.64</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20230101__20231231__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zZrYG50P54xc" style="text-align: right" title="Weighted Average Remaining Contractual Life in Years, Exercisable">2.71</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iS_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zKVtX4pHvoa7" style="text-align: right" title="Aggregate Intrinsic Value, Exercisable, Beginning"> -</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Granted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_z88rNV7gRTJ3" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Granted">117,500</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantedWeightedAverageExercisePrice_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zkDmfq3te2Rj" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, Granted">20.00</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Forfeited</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zj85lfbwRvG8" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Forfeited">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <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><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><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Vested</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_988_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zRjeCh18dHdc" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Vested">1,520,574</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Outstanding - September 30, 2024</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zr15HbFHCWg3" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Outstanding, Ending">2,101,074</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zsJlXebAW3T6" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, Outstanding, Ending">8.77</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zgXWPgSmsSI4" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Remaining Contractual Life in Years, Outstanding">3.33</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Exercisable - September 30, 2024</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zAKg8otvGrW7" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Exercisable, Ending">1,520,574</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zdRJKb7n0z97" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, Exercisable, Ending">7.62</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_982_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_z1g8NrjfbVn6" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Remaining Contractual Life in Years, Exercisable">2.03</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iE_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zxnHf00lqWd6" style="border-bottom: Black 2.5pt double; text-align: right" title="Aggregate Intrinsic Value, Exercisable, Ending">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

12500

250000

1400

28000

14250

285000

713

14260

25000

500000

50000

1000000

113000

2260000

25000

500000

18750

375000

7500

150000

206750

4135000

10000

200000

500

10000

19500

390000

7500

150000

1500

30000

9750

195000

10000

200000

25000

500000

16000

320000

5000

100000

1250

25000

20000

400000

117500

P12M

20.00

117500

1426607

20.00

P5Y

0.6950

0.0415

118884

705030

1109603

26679383

The following table represents option activity for the nine months ended September 30, 2024: SCHEDULE OF OPTION ACTIVITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Number of Options</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted Average Exercise Price</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted Average Remaining Contractual Life in Years</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Aggregate Intrinsic Value</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; padding-bottom: 2.5pt">Outstanding - December 31, 2023</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zE9J9KEWIco1" style="border-bottom: Black 2.5pt double; width: 11%; text-align: right" title="Number of Option, Outstanding, Beginning">1,983,574</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zLVFtMVRN7lg" style="border-bottom: Black 2.5pt double; width: 11%; text-align: right" title="Weighted Average Exercise Price, Outstanding, Beginning">8.10</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left"> </td><td id="xdx_989_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_z92CJTP8JFp7" style="border-bottom: Black 2.5pt double; width: 11%; text-align: right" title="Weighted Average Remaining Contractual Life in Years, Outstanding">3.99</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; width: 1%; text-align: left"> </td><td style="padding-bottom: 2.5pt; width: 11%; text-align: right"> </td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercisable - December 31, 2023</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iS_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zXgEYXKbb9N8" style="text-align: right" title="Number of Option, Exercisable, Beginning">1,470,574</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iS_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zWDAiaxvnE08" style="text-align: right" title="Weighted Average Exercise Price, Exercisable, Beginning">7.64</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20230101__20231231__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zZrYG50P54xc" style="text-align: right" title="Weighted Average Remaining Contractual Life in Years, Exercisable">2.71</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iS_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zKVtX4pHvoa7" style="text-align: right" title="Aggregate Intrinsic Value, Exercisable, Beginning"> -</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Granted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_z88rNV7gRTJ3" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Granted">117,500</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantedWeightedAverageExercisePrice_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zkDmfq3te2Rj" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, Granted">20.00</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Forfeited</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zj85lfbwRvG8" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Forfeited">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <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><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><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Vested</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_988_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zRjeCh18dHdc" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Vested">1,520,574</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Outstanding - September 30, 2024</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zr15HbFHCWg3" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Outstanding, Ending">2,101,074</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zsJlXebAW3T6" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, Outstanding, Ending">8.77</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zgXWPgSmsSI4" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Remaining Contractual Life in Years, Outstanding">3.33</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Exercisable - September 30, 2024</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zAKg8otvGrW7" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Exercisable, Ending">1,520,574</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zdRJKb7n0z97" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, Exercisable, Ending">7.62</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_982_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_z1g8NrjfbVn6" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Remaining Contractual Life in Years, Exercisable">2.03</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iE_c20240101__20240930__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zxnHf00lqWd6" style="border-bottom: Black 2.5pt double; text-align: right" title="Aggregate Intrinsic Value, Exercisable, Ending">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1983574

8.10

P3Y11M26D

1470574

7.64

P2Y8M15D

117500

20.00

1520574

2101074

8.77

P3Y3M29D

1520574

7.62

P2Y10D

NOTE 4 – RELATED PARTY TRANSACTIONS We maintain our corporate offices at 5550 Nicollet Avenue, Minneapolis, MN 55419. We lease the premises on a month-to-month basis from 5550 Nicollet, LLC, a company owned by Mr. Chong. Rent for each of the first nine months of 2024 and 2023 was $<span id="xdx_90D_eus-gaap--PaymentsForRent_c20240101__20240930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--FiveThousandFiveHundredAndFiftyNicolletLLCMember_zL97TQ2NZOib" title="Payments for rent"><span id="xdx_90C_eus-gaap--PaymentsForRent_c20230101__20230930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--FiveThousandFiveHundredAndFiftyNicolletLLCMember_zxXlQeH2YFYj" title="Payments for rent">6,975. As of September 30, 2024, there was <span id="xdx_90D_eus-gaap--OtherReceivablesNetCurrent_iI_do_c20240930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--FiveThousandFiveHundredAndFiftyNicolletLLCMember_zmLZonAtPPpb" title="Rent due to related party">no outstanding balance due to 5550 Nicollet LLC. During the first nine months of 2024, the Company borrowed $<span id="xdx_909_eus-gaap--ProceedsFromRepaymentsOfRelatedPartyDebt_c20240101__20240930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--XtenCapitalGroupMember_zhu6RN0zGEl7" title="Borrowing from related party">100,000 from Xten Capital Group, a common control entity, while during the first nine months of 2023, the Company borrowed $<span id="xdx_90B_eus-gaap--ProceedsFromRepaymentsOfRelatedPartyDebt_c20230101__20230930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--XtenCapitalGroupMember_zrjgGSojFccf" title="Borrowing from related party">900,000. The loan balance on September 30, 2024, is $1,000,000. The loan is due upon demand and is non-interest bearing. In the first nine months of 2024, Liu Mei Chong loaned CQENS Electronics (Hong Kong) Limited $12,359 to fund operations. The loan is due upon demand and is non-interest bearing. At September 30, 2024, the loan balance is $16,606. Effective August 22, 2023, the Company entered into an Intellectual Property License Agreement with XTEN Capital Group Inc. (“XTEN”), the Company’s majority shareholder which is controlled by Alexander Chong, Chief Executive Officer and a member of the Board of Directors of the Company. Under the terms and conditions of the License Agreement, the Company has granted to XTEN a license for certain Company intellectual property (the “IP”) for the purpose of manufacturing, distributing and marketing a consumable containing cannabis (the “Alternative Market”) and distributing and marketing an exclusively conformed device consistent with the IP within the United States of America (the “Territory”). In lieu of royalties, XTEN will be required to purchase Company authorized devices and to lease and/or purchase the necessary equipment and supplies to manufacture consumables from the Company at prices to be mutually agreed upon which shall be at fair market and mutually acceptable. Furthermore, the license grants XTEN the right to sublicense the IP rights in the Territory for the Alternative Market provided the sublicensee agrees to purchase Company authorized devices and to lease and/or purchase the necessary equipment and supplies to manufacture consumables from the Company at prices to be mutually agreed upon which shall be at fair market. The term of the License Agreement is for a period of three years and automatically renews every three years, unless terminated by mutual agreement or by notice by either party of no less than six months. The License Agreement may also be terminated for cause (as defined under the License Agreement) by either party upon 30 day notice, with an opportunity to cure.

6975

100000

900000

1000000

12359

16606

NOTE 5 – LEASES In March 2022 we entered into a three-year lease agreement commencing April 15, 2022 through April 30, 2025 at an initial annual rate of $57,400 paid in monthly installments of $4,800. We have an option to extend for an additional five-year period. Annual increases are tied to the U.S. Consumer Price Index of the Bureau of Labor Statistics of the Department of Labor for all Urban Consumers for San Francisco-Oakland-San Jose area. Based on the aforementioned consumer price index, the annual increase to rent beginning May 1, 2023 was $375 bringing monthly installments to $5,175 and the annual rate to $62,100. On June 1, 2024, the monthly increase was $380 bringing monthly installments to $5,555 and the annual rate to $66,660. We account for our leases under ASC 842, Leases, which requires all leases to be reported on the balance sheet as right-of-use assets and lease obligations. We elected the expedients permitted under the transition guidance that retained lease classification and initial direct costs for any leases that existed prior to adoption of the standard. We categorized leases with terms longer than twelve months as either operating or finance. Finance leases are generally those leases that would allow us to substantially utilize or pay for the entire asset over its estimated life. Assets acquired under finance leases are recorded in property and equipment, net. All other leases are categorized as operating leases. We did not have any finance leases as of September 30, 2024. Our lease for property is for three years. We elected the accounting policy to include both the lease and non-lease components of our agreements as a single component and account for them as a lease. Lease liabilities are recognized at the present value of the fixed lease payments using a discount rate based on similarly secured borrowings available to us. Lease assets are recognized based on the initial present value of the fixed lease payments, reduced by landlord incentives, plus any direct costs from executing the lease. Lease assets are tested for impairment in the same manner as long-lived assets used in operations. Leasehold improvements are capitalized at cost over the lesser of their expected useful life or the lease term. When we have options to extend the lease term, terminate the lease before the contractual expiration date, or purchase the leased asset, and it is reasonably certain that we will exercise the option, we consider these options in determining the classification and measurement of the lease. Costs associated with the operating lease are recognized on a straight-line basis within operating expenses over the term of the lease. The following table presents the lease-related asset and liability recorded on the balance sheets: SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES <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: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20240930_zts1IaAHdcF" style="border-bottom: Black 1pt solid; text-align: center">September 30, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Assets</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_408_ecustom--LeaseholdImprovementsNet_iI_zZHY3nePeqPl" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 80%; text-align: justify">Leasehold improvement, net</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">3,661</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--OperatingLeaseRightOfUseAsset_iI_zGkt96VlpTz6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: justify">Operating lease asset</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,213</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Current</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: justify">Operating lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--OperatingLeaseLiabilityCurrent_iI_pp0p0_c20240930_z9ll4hw1NNO9" style="text-align: right" title="Operating lease liabilities, Current">38,213</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Noncurrent</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: justify">Operating lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_pp0p0_c20240930_zlegV05NmUG2" style="text-align: right" title="Operating lease liabilities, Noncurrent">-</td><td style="text-align: left"> </td></tr> </table> Supplemental cash flow information related to leases were as follows: SCHEDULE OF CASH FLOW INFORMATION RELATED LEASE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20240101__20240930_zThTW01g4nm2" style="border-bottom: Black 1pt solid; text-align: center">Nine Months Ended September 30, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Cash paid for amounts included in the measurement of lease liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--OperatingCashFlowsFromOperatingLeases_zV0Y5IQvfLvj" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 80%; text-align: justify">Operating cash flows from operating leases</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">41,587</td><td style="width: 1%; text-align: left"> </td></tr> </table> <p id="xdx_899_ecustom--ScheduleOfRemainingLeaseTermsAndDiscountRatesForOperatingLeaseTableTextBlock_zyTNGM0zw3Pj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The table below presents the remaining lease terms and discount rates for operating lease. SCHEDULE OF REMAINING LEASE TERMS AND DISCOUNT RATES <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: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">September 30, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Weighted-average remaining lease term</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: justify">Operating lease</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.58 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Weighted-average discount rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 80%; text-align: justify">Operating lease</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">5.25</td><td style="width: 1%; text-align: left">%</td></tr> </table> Maturities of lease liabilities as of September 30, 2024, were as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES <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_49E_20240930_zkNQZu5ZDy46" style="border-bottom: Black 1pt solid; text-align: center">Operating Lease</td><td> </td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_maLOLLPza2c_zNrFwit6vjgk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%">2024 (three months remaining) </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">16,665</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_maLOLLPza2c_z3bd2XgBbJVj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22,220</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearOne_iI_maLOLLPza2c_zaugmfUyoIAc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Thereafter </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_408_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_mtLOLLPza2c_z2OyCzdOmRY4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total lease payments </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">38,885</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zhkMcyTeBCFh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Less: amount of lease payments representing interest </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(672</td><td style="text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--OperatingLeaseLiability_iI_zCEvLT0RlBy7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Present value future minimum lease payments </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,213</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiabilityCurrent_iNI_di_z9CONLeqmpB1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Less: current obligations under lease </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(38,213</td><td style="text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zSdhDJByur5g" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Non-current obligations </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

57400

4800

375

5175

62100

380

5555

66660

The following table presents the lease-related asset and liability recorded on the balance sheets: SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES <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: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20240930_zts1IaAHdcF" style="border-bottom: Black 1pt solid; text-align: center">September 30, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Assets</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_408_ecustom--LeaseholdImprovementsNet_iI_zZHY3nePeqPl" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 80%; text-align: justify">Leasehold improvement, net</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">3,661</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--OperatingLeaseRightOfUseAsset_iI_zGkt96VlpTz6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: justify">Operating lease asset</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,213</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Current</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: justify">Operating lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--OperatingLeaseLiabilityCurrent_iI_pp0p0_c20240930_z9ll4hw1NNO9" style="text-align: right" title="Operating lease liabilities, Current">38,213</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Noncurrent</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: justify">Operating lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_pp0p0_c20240930_zlegV05NmUG2" style="text-align: right" title="Operating lease liabilities, Noncurrent">-</td><td style="text-align: left"> </td></tr> </table> 3661

38213

Supplemental cash flow information related to leases were as follows: SCHEDULE OF CASH FLOW INFORMATION RELATED LEASE <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: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20240101__20240930_zThTW01g4nm2" style="border-bottom: Black 1pt solid; text-align: center">Nine Months Ended September 30, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Cash paid for amounts included in the measurement of lease liabilities</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_408_ecustom--OperatingCashFlowsFromOperatingLeases_zV0Y5IQvfLvj" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 80%; text-align: justify">Operating cash flows from operating leases</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">41,587</td><td style="width: 1%; text-align: left"> </td></tr> </table>

41587 <p id="xdx_899_ecustom--ScheduleOfRemainingLeaseTermsAndDiscountRatesForOperatingLeaseTableTextBlock_zyTNGM0zw3Pj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The table below presents the remaining lease terms and discount rates for operating lease. SCHEDULE OF REMAINING LEASE TERMS AND DISCOUNT RATES <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: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">September 30, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Weighted-average remaining lease term</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: justify">Operating lease</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.58 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Weighted-average discount rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 80%; text-align: justify">Operating lease</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">5.25</td><td style="width: 1%; text-align: left">%</td></tr> </table>

P0Y6M29D

0.0525

Maturities of lease liabilities as of September 30, 2024, were as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES <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_49E_20240930_zkNQZu5ZDy46" style="border-bottom: Black 1pt solid; text-align: center">Operating Lease</td><td> </td></tr> <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_maLOLLPza2c_zNrFwit6vjgk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%">2024 (three months remaining) </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">16,665</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_maLOLLPza2c_z3bd2XgBbJVj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22,220</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearOne_iI_maLOLLPza2c_zaugmfUyoIAc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Thereafter </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_408_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_mtLOLLPza2c_z2OyCzdOmRY4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total lease payments </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">38,885</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zhkMcyTeBCFh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Less: amount of lease payments representing interest </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(672</td><td style="text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--OperatingLeaseLiability_iI_zCEvLT0RlBy7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Present value future minimum lease payments </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">38,213</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiabilityCurrent_iNI_di_z9CONLeqmpB1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Less: current obligations under lease </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(38,213</td><td style="text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zSdhDJByur5g" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Non-current obligations </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

16665

22220

38885

672

38213

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 was required to make additional payments, prior to Amendments, of up to $<span id="xdx_907_eus-gaap--PaymentsToAcquirePropertyPlantAndEquipment_c20220711__20220711__srt--RangeAxis__srt--MaximumMember__dei--LegalEntityAxis__custom--MontradeSpAMember_zNyeZdnoSPtf" title="Additional payments">1,086,465 USD for the module as certain stages are completed. On February 23, 2023, the Company made a payment of $138,386 for completion of the design phase. On March 29, 2023, the Company signed Amendment 1 to the manufacturing contract for additional design work and paid $12,465 of the additional $36,809 cost. As Amendment 1 was for design work, the $12,465 was expensed. On October 18, 2023, the Company signed Amendment 2 to the manufacturing contract to modify certain components and paid $40,091 of the $114,546 cost. In 2022, $130,948 of the initial payment was expensed for design services completed by Montrade. The remaining payment of $458,317 and the additional payment on October 24, 2023, for Amendment 2 of $40,091 for a combined total of $498,408 are 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. These payments totaling $498,408 were recorded as prepaid expenses – noncurrent portion. On February 26, 2024, the Company signed Amendment 3 to the manufacturing contract with Montrade, for a change to a component with a cost of $27,845. Full payment for this Amendment was made March 6, 2024. At September 30, 2024 the equipment production is nearing completion and with the finalization of the one component in the third quarter we anticipate completion of the build in early 2025. With the three amendments added and with payments made in 2023 and 2024, the Company will be required to pay up to $1,046,878. The Prepaid Expense – Noncurrent Portion balance on September 30, 2024 is $526,253. Montrade is an industry leading designer and manufacturer of machines for a wide range of products, including heated tobacco products.

589265

1086465

138386

12465

36809

12465

40091

114546

130948

458317

40091

498408

27845

1046878

526253

NOTE 7 – SUBSEQUENT EVENTS On October 3, 2024, we sold <span id="xdx_900_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20241003__20241003__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zC0oSC6l0mS5" title="Number of shares, sold">12,500 shares of our common stock for $<span id="xdx_907_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_pid_c20241003__20241003__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zKwE56vK97m7" title="Number of shares sold, value">250,000 in private transactions. We did not pay a commission or finder’s fee and are using the proceeds for working capital. On November 1, 2024, we sold <span id="xdx_90A_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20241101__20241101__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zvvsEw3Wkung" title="Number of shares, sold">17,500 shares of our common stock for $<span id="xdx_90A_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_pid_c20241101__20241101__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zoeYarLqFpG5" title="Number of shares sold, value">350,000 in private transactions. We did not pay a commission or finder’s fee and are using the proceeds for working capital. On November 1, 2024, we issued <span id="xdx_90B_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20241101__20241101__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__srt--TitleOfIndividualAxis__custom--TwoIndividualsMember_zxjFp4JhpFvf" title="Number of shares, sold">5,500 shares of our common stock in total to two individuals for their consulting services. The stock was valued at $<span id="xdx_90B_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_pid_c20241101__20241101__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__srt--TitleOfIndividualAxis__custom--TwoIndividualsMember_zBYauG5xmCKf" title="Number of shares sold, value">110,000. On November 4, 2024, we sold <span id="xdx_901_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20241104__20241104__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zziJSh9TQxCg" title="Number of shares, sold">18,000 shares of our common stock for $<span id="xdx_906_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_pid_c20241104__20241104__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zBg588KwrV19" title="Number of shares sold, value">360,000 in a private transaction. We did not pay a commission or finder’s fee and are using the proceeds for working capital.

12500

250000

17500

350000

5500

110000

18000

360000