NOTE 17 – SUBSEQUENT EVENTS

Between October 1, 2022 and November 15, 2022, the Company sold 78,227 shares of the Company’s Series B Preferred Stock in a private placement to accredited investors and received proceeds of $7,040,400.

On October 5, 2022 the Company completed its targeted funding via the Series B Preferred Stock. This successful completion resulted in an incentive award of 2,150,000 shares of common stock due to certain executives and members of the board of directors. The Company accrued compensation expense of $2,645,000, the fair value of the common stock to be issued, in October 2022.

On October 14, 2022, the Company filed with the Delaware Secretary of State an Amendment to Certificate of Designation of Preferences, Rights and Limitations of Series B Cumulative Convertible Preferred Stock, pursuant to which the amount of authorized Series B Cumulative Convertible Preferred Stock was increased from 222,222 shares to 347,222 shares.

On October 17, 2022 the following cash bonuses were paid out pursuant to the Successful Corporate Actions Awards equity bonus program (Completion of the $20,000,000 Preferred B Raise): Chairman: $100,000; Chief Executive Officer: $100,000; Chief Technology Officer: $25,000; and Chief Financial Officer: $25,000. Pursuant to this item, shares of common stock were also earned as follows: Chairman: 1,000,000 shares; Chief Executive Officer: 1,000,000 shares; Chief Technology Officer: 100,000 shares; and Chief Financial Officer: 50,000 shares. The distribution of the shares will not occur until the date the Company is sold. The Company accrued compensation expense of $2,645,000, the fair value of the common stock to be issued, in October 2022.