Simple Agreement for Future Equity (SAFE)

9 Months Ended

Sep. 30, 2024

Simple Agreement For Future Equity

Simple Agreement for Future Equity (SAFE)

10. Simple Agreement for Future Equity (SAFE)

On July 3, 2023, Invizyne executed a simple agreement for future equity (SAFE) with MDB Capital Holdings LLC which provided funding of $785,000. On July 3, 2023, Invizyne executed a simple agreement for future equity (SAFE) with Paul Opgenorth who provided funding of $15,000. Both agreements have identical terms. Upon the first equity financing after the SAFE execution and before the termination of the SAFE, the SAFE will automatically convert into a number of next round equity equal to the purchase amount divided by the conversion price. The SAFE notes were classified as liabilities pursuant to ASC 480 as certain redemptions are based upon the occurrence of certain events that are outside of the control of the Company and were measured at fair value at each reporting period, with changes in fair value recorded within the consolidated statements of operations and comprehensive loss. As of September 30, 2024 the total of $800,000 was funded.

A continuity of the SAFE notes are as follows:

Balance as at December 31, 2023	$	1,000,000
Issued		-
Change in fair value of SAFE notes		-
Balance as of September 30, 2024	$	1,000,000