# First Breach (FBDT) S-1 SEC filing

- Filed: Apr 30, 2026, 11:53 AM EDT
- Accession: 0001493152-26-020336
- OpenCapital page: https://www.opencapital.sh/filings/0001493152-26-020336
- Markdown URL: https://www.opencapital.sh/filings/0001493152-26-020336.md
- Official SEC filing index: https://www.sec.gov/Archives/edgar/data/1892704/000149315226020336/0001493152-26-020336-index.htm

## Filing documents

- [S-1 (forms-1.htm)](https://www.sec.gov/Archives/edgar/data/1892704/000149315226020336/forms-1.htm)

---

## S-1

SEC source: [forms-1.htm](https://www.sec.gov/Archives/edgar/data/1892704/000149315226020336/forms-1.htm)

| MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 37 |

| BUSINESS | 47 |
| MANAGEMENT | 50 |
| EXECUTIVE AND DIRECTOR COMPENSATION | 58 |
| CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS | 62 |
| PRINCIPAL AND REGISTERED STOCKHOLDERS | 63 |

| WHERE YOU CAN FIND ADDITIONAL INFORMATION | 76 |
| INDEX TO FINANCIAL STATEMENTS | F-1 |

**You
should only rely on the information contained in this prospectus and in any free writing prospectus prepared by or on behalf of us and
delivered or made available to you. We have not authorized anyone to provide you with additional or different information. The Registered
Stockholders are offering to sell, and seeking offers to buy, shares of our common stock only in jurisdictions where offers and sales
are permitted. The information contained in this prospectus or a free writing prospectus is accurate only as of its date, regardless
of its time of delivery or of any sale of shares of our common stock. Our business, financial condition, operating results, and prospects
may have changed since that date.**

**For
investors outside the United States**: We have not done anything that would permit this offering or possession or distribution of this
prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside of the United
States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering
of the shares of common stock and the distribution of this prospectus outside of the United States.

i

**ABOUT
THIS PROSPECTUS**

This
prospectus is a part of a registration statement on Form S-1 that we filed with the SEC using a continuous offering process. Under this
process, the Registered Stockholders may, from time to time, sell the common stock covered by this prospectus in the manner described
in the section titled “Plan of Distribution.” Additionally, we may provide a prospectus supplement to add information to,
or update or change information contained in, this prospectus, including the section titled “Plan of Distribution.” You may
obtain this information without charge by following the instructions under the “Where You Can Find Additional Information”
section appearing elsewhere in this prospectus. You should read this prospectus and any prospectus supplement before deciding to invest
in our common stock.

**INDUSTRY
AND MARKET DATA**

Unless
otherwise indicated, information in this prospectus concerning economic conditions, our industry, our markets and our competitive position
is based on a variety of sources, including information from third-party industry analysts and publications and our own estimates and
research. Some of the industry and market data contained in this prospectus are based on third-party industry publications. This information
involves a number of assumptions, estimates and limitations.

The
industry publications, surveys and forecasts and other public information generally indicate or suggest that their information has been
obtained from sources believed to be reliable. None of the third-party industry publications used in this prospectus were prepared on
our behalf. The industry in which we operate is subject to a high degree of uncertainty and risk due to a variety of factors, including
those described in “Risk Factors” in this prospectus. These and other factors could cause results to differ materially from
those expressed in these publications.

**TRADEMARKS**

We
own or have rights to trademarks or trade names that we use in connection with the operation of our businesses, our corporate names,
logos and website names. This prospectus contains references to our trademarks and service marks and to those belonging to other entities.
Solely for convenience, trademarks and trade names referred to in this prospectus may appear without the ® or ™ symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent possible under
applicable law, our rights or the rights of the applicable licensor to these trademarks and trade names. We do not intend our use or
display of other companies’ trade names, trademarks, or service marks to imply a relationship with, or endorsement or sponsorship
of us by any other companies. All other trademarks are the property of their respective owners.

ii

**PROSPECTUS

**SUMMARY
OF FINANCIAL INFORMATION**

The
following tables set forth summary financial and other data for the periods ended and at the dates indicated below. Our summary balance
sheet and statement of operations data as of and for the year ended December 31, 2025 have been derived from our audited financial
statements included in this prospectus. The financial data set forth below should be read in conjunction with “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” and the financial statements and notes thereto included
elsewhere in this prospectus.

### STATEMENTS OF OPERATIONS

|  |  |
| --- | --- |
| Net revenues | $384,129 |
| Cost of revenues | 1,761,368 |
| Net loss associated with liquidation of raw materials | 684,960 |
| Gross margin | (2,062,199) |
| Operating expenses: |  |
| Selling, general, and administrative expense | 7,926,714 |
| Total operating expenses | 7,926,714 |
| Loss from operations | (9,988,913) |
| Total other expenses, net | (3,833,208) |
| Net loss before income taxes | (13,822,121) |
| Income tax provision | — |
| Net loss | $(13,822,121) |
| Net loss per share: |  |
| Basic and diluted | $(0.36) |
| Weighted average number of shares outstanding: |  |
| Basic & diluted | 38,276,140 |

***BALANCE
SHEET DATA***

|  |  |
| --- | --- |
| Cash | $2,477,122 |
| Total current assets | $3,493,562 |
| Total assets | $13,020,782 |
| Total current liabilities | $4,631,271 |
| Total liabilities | $6,616,302 |
| Total stockholders’ equity | $6,404,480 |
| Total liabilities and stockholders’ equity | $13,020,782 |

6

**RISK
FACTORS**

*An
investment in our securities is speculative and involves a high degree of risk. You should carefully consider the risks described below,
which we believe represent certain of the material risks to our business, together with the information contained elsewhere in this prospectus,
before you make a decision to invest in our shares of common stock. Please note that the risks highlighted here are not the only ones
that we may face. For example, additional risks presently unknown to us or that we currently consider immaterial or unlikely to occur
could also impair our operations. If any of the following events occur or any additional risks presently unknown to us actually occur,
our business, financial condition and operating results may be materially adversely affected. In that event, the trading price of our
securities could decline and you could lose all or part of your investment.*

**Risks
Related to Our Business and Industry**

***Our
recurring losses and negative cash flow from operations, as well as current cash and liquidity projections, raise substantial doubt about
our ability to continue as a going concern.***

Based
on recurring losses from operations and current cash and liquidity projections, we have concluded that there is substantial doubt about
our ability to continue as a going concern for the next twelve months. As of December 31, 2025, we had cash of $2,477,122
and negative working capital of $1,137,709. Further, we have incurred and expect to continue to incur significant costs in pursuit
of our product development and growth plans. Our financial statements have been prepared assuming we will continue as a going concern
and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets, or the
amounts and classification of liabilities that may result if we do not continue as a going concern. You should not rely on our balance
sheet as an indication of the amount of proceeds that would be available to satisfy claims of creditors, and potentially be available
for distribution to holders of our common stock, in the event of liquidation.

***We
have a limited operating history on which you can evaluate our company, and our decision to focus our efforts on establishing our manufacturing
business may not be successful.***

We
have a limited operating history on which you can evaluate our company. The company was founded in 2018 and until the first quarter of
2021 our operations consisted principally of securing the necessary licenses to conduct our business in the US and Israel. We are currently
manufacturing ammunition and ammunition components in our manufacturing facility in the US. To date, production has been limited to optimizing
our production lines and production of very high quality products for our customers.

Substantially
all of our revenue to date has been from selling ammunition and components to end-users. We have decided to focus our efforts predominantly
on our manufacturing, and we have significantly limited our wholesaling efforts as the manufacturing equipment began production. While
we limited the wholesale business, our primary focus is on selling our own manufactured products as our manufacturing capabilities ramp
up and are the central focus of our business. As a result, we anticipate that our wholesale revenue will be limited. There can be no
assurance that our efforts to establish our manufacturing business will be successful. Accordingly, our business will be subject to many
of the problems, expenses, delays, and risks inherent in the establishment of a new business enterprise.

7

***We
have incurred net losses and may continue to incur net losses as we seek to expand our business.***

We
have incurred losses since we established the company in 2018. We expect to continue to make significant expenditures and incur substantial
expenses as we develop and expand our business; develop and introduce new products; build our manufacturing capabilities; expand our
sales and distribution networks; implement internal systems and infrastructure; and hire additional personnel. As a result, we may continue
to incur losses as we execute our plan to expand our business and may never achieve or maintain profitability. We may be unable to satisfy
our current obligations solely from cash generated from operations or become profitable until we successfully expand our business. If
we continue to incur substantial losses and are unable to secure additional sources of funding as needed to expand our business, we could
be forced to curtail or discontinue our business operations; sell assets at unfavorable prices; or merge, consolidate, or combine with
a company with greater financial resources in a transaction that may be unfavorable to us.

***Our
manufacturing facility is critical to our success.***

Our
manufacturing facility is critical to our success, as we currently produce all of our products at this facility. The facility also houses
our principal research, development, engineering, and design functions.

Any
event that causes a disruption of the operation of this facility for even a relatively short period of time would adversely affect our
ability to produce and ship our products and to provide service to our customers. We make certain changes in our manufacturing operations
from time to time to enhance the facility and associated equipment and systems and to introduce certain efficiencies in manufacturing
and other processes to produce our products in a more efficient and cost-effective manner. We anticipate that we will continue to incur
significant capital and other expenditures with respect to this facility, but we may not be successful in continuing to improve efficiencies.

***Inability
to make timely payments under our equipment lease agreement could lead to forfeiture of important manufacturing equipment, which may
have a negative effect on our manufacturing process and in turn harm our results of operations.***

We
currently lease certain pieces of equipment that are important to our manufacturing operations. We have entered into a lease agreement
for certain equipment which subjects us to monthly payments and requires us to provide a securities interest in the equipment. As such,
any inability to make timely payments under our lease agreement could lead to the forfeiture of the equipment which may have a negative
effect on our manufacturing process and in turn harm our results of operations.

***Shortages
or a disruption in the availability, price or quality of raw materials may delay or reduce our sales and increase our costs, thereby
harming our results of operations.***

We
use a variety of raw materials in the production of our products including commodity materials such as brass, copper and lead. The price
of raw materials and these commodities can be highly volatile and fluctuate based on the market for these commodities and their existing
supply, which could result in instability in our profit margins. For example, copper has traditionally been used in electrical wiring,
coining, industrial applications, and in alloys with a variety of other uses. Copper demand may increase because of new needs for the
metal including increased telecommunication buildouts, improved batteries, and demand from the rapidly growing industry of electric cars.
Similarly, supply chain disruptions may result in our inability to obtain necessary raw materials and commodities on a timely basis or
from sources that provide consistent quality materials.

8

The
inability to obtain sufficient quantities of raw materials necessary for the production of our products could result in reduced or delayed
sales or lost orders. Any delay in or loss of sales or orders could adversely impact our operating results. Many of the materials used
in the production of our products are available only from a limited number of suppliers. We could be subject to increased costs, supply
interruptions, and difficulties in obtaining raw materials. Our reliance on third-party suppliers for various raw materials for our products
exposes us to volatility in the availability, quality, and price of these raw materials. Our orders with certain of our suppliers may
represent a very small portion of their total orders. As a result, they may not give priority to our business, leading to potential delays
in or cancellation of our orders. A disruption in deliveries from our third-party suppliers, capacity constraints, production disruptions,
price increases, or decreased availability of raw materials or commodities could have an adverse effect on our ability to meet our commitments
to customers or increase our operating costs. Quality issues experienced by third party suppliers can also adversely affect the quality
and effectiveness of our products and result in liability and reputational harm.

***Our
performance is influenced by a variety of economic, social, and political factors.***

Our
performance is influenced by a variety of economic, social, and political factors. General economic conditions and consumer spending
patterns can negatively impact our operating results. Economic uncertainty, unfavorable employment levels, declines in consumer confidence,
increases in consumer debt levels, increased commodity prices, and other economic factors may affect consumer spending on discretionary
items and adversely affect the demand for our products. In times of economic uncertainty, consumers tend to defer expenditures for discretionary
items, which affects demand for our products. Any substantial deterioration in general economic conditions that diminish consumer confidence
or discretionary income could reduce our sales and adversely affect our operating results. Economic conditions also affect governmental
political and budgetary policies. As a result, economic conditions also can have an adverse effect on the sale of our products to law
enforcement, government, and military customers.

Political
and other factors also can adversely affect our performance. Concerns about presidential, congressional, and state elections and legislature
and policy shifts resulting from those elections can adversely affect the demand for our products. In addition, uncertainty surrounding
control of firearms, firearm products, and ammunition at the federal, state, and local level and heightened fears of terrorism and crime
can adversely affect consumer demand for our products. Often, such concerns result in an increase in near-term consumer demand and subsequent
softening of demand when such concerns subside. Inventory levels in excess of customer demand may negatively impact operating results
and cash flow.

Federal
and state legislatures frequently consider legislation relating to the regulation of firearms, including amendment or repeal of existing
legislation. Existing laws may also be affected by future judicial rulings and interpretations regarding firearm products and ammunition.
If such restrictive changes to legislation develop, we could find it difficult, expensive, or even impossible to comply with them, impeding
new product development and distribution of existing products.

9

***Our
business depends on the sale of our ammunition products, and our success requires the introduction of new products that achieve market
acceptance.***

The
sale of ammunition and related components represents the core of our business, and our results of operations are directly tied to the
level of consumer, commercial, and government demand for these products. Demand for ammunition is influenced by the sale and usage of
firearms, which are themselves affected by economic conditions, recreational and sporting trends, law enforcement and security requirements,
and legislative or regulatory developments. As a result, sales of ammunition can be volatile and difficult to predict, and any sustained
reduction in demand would materially and adversely affect our business, financial condition, and results of operations.

In
addition, our long-term success depends on our ability to develop and introduce new ammunition products that align with customer preferences.
Product development is often costly and time-consuming, and new products may not achieve customer acceptance. If we fail to successfully
develop and market new products, or if demand for our ammunition declines, our sales, margins, and overall market position could be materially
harmed.

***War
and other armed conflicts, such as the current Russia-Ukraine conflict, or other natural or manmade disasters may affect the markets
in which we operate, our customers, our delivery of products and customer service, and could have a material adverse impact on our business,
results of operations, or financial condition.***

In
February 2022, following Russia’s invasion of Ukraine, the U.S. and other countries announced sanctions against Russia. The sanctions
announced by the U.S. and other countries against Russia to date include restrictions on selling or importing goods, services or technology
in or from affected regions, travel bans and asset freezes impacting connected individuals and political, military, business and financial
organizations in Russia, severing Russia’s largest bank from the U.S. financial system, barring some Russian enterprises from raising
money in the U.S. market and blocking the access of Russian banks to financial markets. The U.S. and other countries could impose wider
sanctions and take other actions should the conflict further escalate. While it is difficult to anticipate the impact the sanctions announced
to date may have on our company, any further sanctions imposed or actions taken by the U.S. or other countries, and any retaliatory measures
by Russia in response could increase our costs, reduce our sales and earnings or otherwise have an adverse effect on our operations.

Similarly,
our business and supply chain may be adversely affected by instability, disruption, or destruction in a geographic region in which we
operate, regardless of cause, including war, terrorism, riot, civil insurrection or social unrest, and natural or manmade disasters,
including famine, food, fire, earthquake, storm, pandemic events and spread of disease. Such events may cause customers to suspend their
decisions on using our products and services, make it impossible to access some of our inventory, and give rise to sudden significant
changes in regional and global economic conditions and cycles that could interfere with purchases of goods or services and commitments
to develop new products and services. These events also pose significant risks to our personnel and to physical facilities, transportation
and operations, which could have a material adverse impact on our business, results of operations, or financial condition.

10

***The
international nature of our business exposes us to global economic, political and legal risks that could impact our profitability.***

We
conduct a portion of our business outside the United States. There are inherent risks in our international operations, including:

- exchange controls and currency restrictions;
- currency fluctuations and devaluations;
- tariffs and trade barriers;
- export duties and quotas;
- changes in the availability and pricing of raw materials, energy and utilities;
- changes in local economic conditions;
- changes in laws and regulations, including the imposition of economic or trade sanctions affecting international commercial
transactions;

- exposure to possible expropriation, nationalization or other government actions;
- unsettled political conditions, military action, civil unrest, acts of terrorism, force majeure, war or other armed conflict;
and

- countries whose governments have been hostile to U.S.-based businesses.

Changes
in U.S. or foreign government policy on international trade, including the imposition or continuation of tariffs, could materially and
adversely affect our business. Also, because of uncertainties regarding the interpretation and application of laws and regulations and
the enforceability of contract rights, we face risks in some countries that our contract rights would not be enforced by local governments.
Other risks in international business also include difficulties in managing credit risk.

***The
success of the Company depends, in part, on our ability to protect our intellectual property and our brand.***

We
rely on and/or will rely on a combination of federal, provincial, state, common law trademark, patent, and trade secret laws, confidentiality
procedures, and contractual provisions to protect our intellectual property. However, these measures afford only limited protection and
might be challenged, invalidated, or circumvented by third parties. The measures we take to protect our intellectual property may not
be sufficient or effective. Additionally, any competitors may independently develop similar intellectual property.

In
addition, it is difficult to monitor compliance with, and enforce, our intellectual property on a worldwide basis in a cost-effective
manner. In jurisdictions where foreign laws provide less intellectual property protection than afforded domestically and abroad, our
technology or other intellectual property may be compromised, and our business would be materially adversely affected. We may find it
necessary to take legal action in the future to enforce or protect our intellectual property rights, and such action may be expensive
and time consuming. In addition, we may be unable to obtain a favorable outcome in any such intellectual property litigation.

***We
may be subject to intellectual property infringement claims, which could cause us to incur litigation costs and divert management attention
from our business.***

Any
intellectual property infringement claims against us, with or without merit, could be costly and time-consuming to defend and divert
our management’s attention from our business. If our products were found to infringe a third party’s proprietary rights,
we could be required to enter into costly royalty or licensing agreements to be able to sell our products. Royalty and licensing agreements,
if required, may not be available on terms acceptable to us or at all.

11

***Our
efforts to avoid the patent, trademark, and copyright rights of others may not provide notice to us of potential infringements in time
to avoid investing in product development and promotion that must later be abandoned if suitable license terms cannot be reached.***

There
is no guarantee that our use of conventional technology searching and brand clearance searching will identify all potential rights holders.
Rights holders may demand payment for past infringements and/or force us to accept costly license terms or discontinue use of protected
technology and/or works of authorship that may include for example photos, videos, and software.

***To
the extent demand for our products increase, our future success will depend upon our ability to enhance manufacturing production capacity.***

To
the extent we are able to establish production of our ammunition component and ammunition products and demand for our products increase
significantly in future periods, one of our key challenges will be to enhance production capacity to meet sales demand, while maintaining
product quality. Our inability to meet any future increase in sales demand or access capital for inventory may hinder growth or increase
dilution in connection with financing activities conducted to meet any such increase in sales demand.

***We
rely on third-party suppliers for most of our manufacturing equipment.***

We
rely on third-party suppliers for most of the manufacturing equipment necessary for the production our products. The failure of suppliers
to supply manufacturing equipment in a timely manner or on commercially reasonable terms could delay our plans to expand our business
and otherwise disrupt our production schedules and increase our manufacturing costs. Our orders may represent a very small portion of
certain suppliers’ total orders. As a result, they may not give priority to our business, leading to potential delays in or cancellation
of our orders. If any single-source supplier were to fail to supply our needs on a timely basis or cease providing us manufacturing equipment
or components, we would be required to locate and contract with substitute suppliers. We may have difficulty identifying a substitute
supplier in a timely manner and on commercially reasonable terms. If this were to occur, our business would be harmed.

***We
do not have long-term purchase commitments from our customers, and their ability to cancel, reduce, or delay orders could reduce our
revenue and increase our costs.***

Our
customers do not provide us with firm, long-term volume purchase commitments, but issue purchase orders for our products. As a result,
customers can cancel purchase orders or reduce or delay orders at any time. The cancellation, delay, or reduction of customer purchase
orders could result in reduced sales, excess inventory, unabsorbed overhead, and reduced income from operations.

12

As
we continue with manufacturing operations, we schedule internal production levels and place orders for raw materials with third party
suppliers before receiving firm orders from our customers. Therefore, if we fail to accurately forecast customer demand, we may experience
excess inventory levels or a shortage of products to deliver to our customers. Factors that could affect our ability to accurately forecast
demand for our products include the following:

- an increase or decrease in consumer demand for our products or for the products of our competitors;
- our failure to accurately forecast customer acceptance of new products;
- new product introductions by us or our competitors;
- changes in our relationships with customers;
- changes in general market conditions or other factors, which may result in cancellations of orders or a reduction or increase in the
rate of reorders placed by retailers;

- changes in laws and regulations governing the activities for which we sell products;
- weak economic conditions or consumer confidence, which could reduce demand for discretionary items, such as our products;
and

- the domestic and international political environment, including debate over the regulation of firearms, ammunition, and related
products and trade restrictions and embargos of our products.

Inventory
levels in excess of consumer demand may result in inventory write-downs and the sale of excess inventory at discounted prices, which
could have an adverse effect on our business, operating results, and financial condition. If we underestimate demand for our products,
our manufacturing facility or third-party suppliers may not be able to react quickly enough to meet consumer demand, resulting in delays
in the shipment of products and lost revenue, and damage to our reputation and customer and consumer relationships. We may not be able
to manage inventory levels successfully to meet future order and reorder requirements.

***Revenue
from sales of ammunition components will depend on sales to ammunition manufacturers, some of which will account for a significant portion
of our sales.***

Our
revenue from sales of ammunition components will depend on sales to ammunition manufacturers. The global market for ammunition manufacturing
is highly concentrated and there are only a few licensed manufacturers in the US. Our sales of ammunition components could become increasingly
dependent on purchases by a limited number of manufacturing customers. Consolidation in the industry could also adversely affect our
business. If our sales were to become increasingly dependent on business with a limited number of manufacturers, we could be adversely
affected by the loss or a significant decline in sales to one or more of these customers. In addition, our dependence on a smaller group
of customers could result in their increased bargaining position putting pressure on the prices we charge.

The
loss of any one or more of our customers or significant or numerous cancellations, reductions, delays in purchases or changes in business
practices by our customers could have an adverse effect on our business, operating results, and financial condition.

These
sales channels involve a number of special risks, including the following:

- we  may be unable to secure and maintain favorable relationships with customers;
- we  may be unable to control the timing of delivery of our products to end-user consumers;
- our  customers are not subject to minimum sales requirements or any obligation to market our products to their end-user customers;
- our  customers may terminate their relationships with us at any time; and
- our  customers market and distribute competing products.

13

Although
we intend to expand our customer base, our operating results would likely decline if we lost any major customers or if one of these sizable
customers were to significantly reduce its orders for any reason. Because our sales are made by means of standard purchase orders rather
than long-term contracts, we cannot assure you that our customers will continue to purchase our products at current levels, or at all.

In
addition, periods of sluggish economies and consumer uncertainty regarding future economic prospects in our key markets can have an adverse
effect on the financial health of our customers, which may in turn have a material adverse effect on our business, operating results,
and financial condition.

We
anticipate that we will extend credit to our customers for periods of varying duration based on an assessment of the customer’s
financial condition, generally without requiring collateral, which increases our exposure to the risk of uncollectable receivables. In
addition, we face increased risk of order reduction or cancellation when dealing with financially ailing customer who may struggle with
economic uncertainty. We may reduce our level of business with customers experiencing financial difficulties and may not be able to replace
that business with other customers, which could have a material adverse effect on our business, operating results, and financial condition.

***Our
gross margins depend upon our sales mix.***

Our
gross margin is higher when our sales mix is skewed toward our higher-margin product lines. If our actual sales mix results in a lower
overall percentage from our higher-margin product lines, our gross margins will be reduced, affecting our results of operations.

***We
face intense competition that could result in our losing or failing to gain market share and suffering reduced sales.***

We
operate in intensely competitive markets that are characterized by price erosion and competition from major domestic and international
companies. Competition in the markets in which we operate is based on a number of factors, including price, quality, product innovation,
performance, reliability, styling, product features, warranties, and sales and marketing programs. This intense competition could result
in pricing pressures, lower sales, reduced margins, and lower market share.

Our
competitors include Olin Corporation, Hornady Manufacturing Company, PMC Ammunition, and Federal Premium Ammunition.

Most
of our competitors have greater market recognition, larger customer bases, long-term government contracts, and substantially greater
financial, technical, marketing, distribution, and other resources than we possess, and that affords them competitive advantages. As
a result, they may be able to devote greater resources to the promotion and sale of products, to invest more funds in intellectual property
and product development, to negotiate lower prices for raw materials and components, to deliver competitive products at lower prices,
and to introduce new products and respond to consumer requirements more quickly than we can.

14

Our
competitors could introduce products with superior features at lower prices than our products and could also bundle existing or new products
with other more established products to compete with us. Certain of our competitors may be willing to reduce prices and accept lower
profit margins to compete with us. Our competitors could also gain market share by acquiring or forming strategic alliances with other
competitors.

Finally,
we may face additional sources of competition in the future because new distribution methods offered by the Internet and electronic commerce
have removed many of the barriers to entry historically faced by start-up companies. Our customers may also demand that we reduce our
prices on products, which could lead to lower margins. Any of the foregoing could cause our sales to decline, which would harm our financial
position and results of operations.

Our
ability to compete successfully depends on a number of factors, both within and outside our control. These factors include the following:

- our  success in developing, producing, marketing, and successfully selling new products;
- our  ability to address the needs of our customers;
- the  pricing, quality, performance, and reliability of our products;
- the  quality of our customer service;
- the  efficiency of our production; and
- product  or technology introductions by our competitors.

Because
we believe technological and functional distinctions among competing products in our markets are perceived by many end-user consumers
to be relatively modest, effectiveness in marketing and manufacturing are particularly important competitive factors in our business.

***We
may have difficulty collecting amounts owed to us.***

Certain
of our customers may experience business challenges and credit-related issues. We perform ongoing credit evaluations of customers, but
these evaluations may not be completely effective. We do not grant payment terms to most customers, the very few customers that we grant
payment terms to are given terms of a maximum of 30 days and do not generally require collateral. Should more customers than we anticipate
experience liquidity issues, or if payments are not received on a timely basis, we may have difficulty collecting amounts owed to us
by such customers, and our business, operating results, and financial condition could be adversely impacted. Retail consolidation could
result in more concentrated credit-related risks.

***We
plan to manufacture and sell products that create exposure to potential product liability, warranty liability, or personal injury claims
and litigation.***

Our
products are used in activities and situations that involve risk of personal injury and death. Our products expose us to potential product
liability, warranty liability, and personal injury claims and litigation relating to the use or misuse of our products, including allegations
of defects in manufacturing, defects in design, a failure to warn of dangers inherent in the product or activities associated with the
product, negligence, and strict liability. If successful, any such claims could have a material adverse effect on our business, operating
results, and financial condition. Defects in our products may result in a loss of sales, recall expenses, delay in market acceptance,
and damage to our reputation and increased warranty costs, which could have a material adverse effect on our business, operating results,
and financial condition. Although we maintain product liability insurance in amounts that we believe are reasonable, we may not be able
to maintain such insurance on acceptable terms, if at all, in the future and product liability claims may exceed the amount of insurance
coverage. In addition, our reputation may be adversely affected by such claims, whether or not successful, including potential negative
publicity about our products.

15

***Product
recall or field action could be costly and harm our reputation.***

Our
products are used in activities that involve inherent risks of personal injury and property damage. Defects in design, materials, or
manufacturing, such as misfires, squib loads, or over-pressure rounds, could require us to initiate a recall or other corrective action.
Recalls can result in significant costs, lost sales, reputational harm, and potential product liability claims. If we fail to maintain
robust quality-assurance and lot-traceability systems, the scope and cost of any recall could be magnified, with a material adverse effect
on our results of operations.

***The
failure to manage our growth could adversely affect our operations.***

The
failure to manage our growth could adversely affect our operations. To continue to expand our business and enhance our competitive position,
we must make significant investments in equipment, facilities, systems, and personnel. In addition, we must commit significant funds
to enhance our sales, marketing, information technology, and research and development efforts. As a result of the increase in fixed costs
and operating expenses, our failure to increase our sales sufficiently to offset these increased costs could adversely affect our business,
operating results, and financial condition.

Managing
our planned growth effectively will require us to take a number of steps, including the following:

- enhance  our operational, financial, and management systems;
- enhance  our facilities and purchase additional equipment; and
- successfully  hire, train, and motivate additional employees, including additional personnel for our technological, sales, and marketing efforts.

The
expansion of our products and customer base will result in increases in our overhead and selling expenses. We may be required to increase
(1) staffing; (2) expenditures on capital equipment and leasehold improvements; and (3) other expenses to meet the demand for our products.
Any increase in expenditures in anticipation of future sales that do not materialize would adversely affect our profitability.

***Our
business is highly dependent upon our brand recognition and reputation, and the failure to maintain or enhance our brand recognition
or reputation would likely have a material adverse effect on our business.***

Our
brand recognition and reputation are critical aspects of our business. We believe that maintaining and further enhancing our brands and
our reputation are critical to retaining existing customers and attracting new customers. We also believe that the importance of our
brand recognition and reputation will continue to increase as competition in our markets continues to develop.

16

We
anticipate that our advertising, marketing, and promotional efforts will increase in the foreseeable future as we continue to seek to
enhance our brands and consumer demand for our products. Historically, we have relied on existing relationships of our management and
customer referrals to increase consumer awareness of our brands to increase purchasing intent and conversation. We anticipate that we
will increasingly rely on other forms of media advertising, including social media and e-marketing. Our future growth and profitability
will depend in large part upon the effectiveness and efficiency of our advertising, promotion, public relations, and marketing programs.
These brand promotion activities may not yield increased revenue, and the efficacy of these activities will depend on a number of factors,
including our ability to do the following:

- determine  the appropriate creative message and media mix for advertising, marketing, and promotional expenditures;
- select  the right markets, media, and specific media vehicles in which to advertise;
- identify  the most effective and efficient level of spending in each market, media, and specific media vehicle; and
- effectively  manage marketing costs, including creative and media expenses, in order to maintain acceptable customer acquisition costs.

In
addition, certain of our products and brands may in the future benefit from endorsements and support from particular sportsmen, athletes,
or other celebrities, and those products and brands may become personally associated with those individuals. As a result, sales of the
endorsed products could be materially and adversely affected if any of those individuals’ images, reputations, or popularity were
to be negatively impacted.

Increases
in the pricing of one or more of our marketing and advertising channels could increase our marketing and advertising expenses or cause
us to choose less expensive but possibly less effective marketing and advertising channels. If we implement new marketing and advertising
strategies, we may incur significantly higher costs than our current channels, which in turn could adversely affect our operating results.
Implementing new marketing and advertising strategies also could increase the risk of devoting significant capital and other resources
to endeavors that do not prove to be cost effective. We also may incur marketing and advertising expenses significantly in advance of
the time we anticipate recognizing revenue associated with such expenses and our marketing and advertising expenditures may not generate
sufficient levels of brand awareness and conversation or result in increased revenue. Even if our marketing and advertising expenses
result in increased sales, the increase might not offset our related expenditures. If we are unable to maintain our marketing and advertising
channels on cost-effective terms or replace or supplement existing marketing and advertising channels with similarly or more effective
channels, our marketing and advertising expenses could increase substantially, our customer base could be adversely affected, and our
business, operating results, financial condition, and reputation could suffer.

17

***Our
operating results may experience significant fluctuations.***

Many
factors contribute to significant periodic and seasonal quarterly fluctuations in our results of operations. These factors include the
following:

- the  cyclicality of the markets we serve;
- the  timing and size of new orders;
- the  cancellation of existing orders;
- the  volume of orders relative to our capacity;
- product  introductions and market acceptance of new products or new generations of products;
- timing  of expenses in anticipation of future orders;
- changes  in product mix;
- availability  of production capacity;
- changes  in cost and availability of labor and raw materials;
- timely  delivery of products to customers;
- pricing  and availability of competitive products;
- new  product introduction costs;
- changes  in the amount or timing of operating expenses;
- introduction  of new technologies into the markets we serve;
- pressures  on reducing selling prices;
- our  success in serving new markets;
- adverse  publicity regarding the safety, performance, and use of our products;
- the  institution and outcome of any litigation;
- political,  economic, or regulatory developments; and
- changes  in economic conditions.

As
a result of these and other factors, we believe that period-to-period comparisons of our results of operations may not be meaningful
in the short term, and our performance in a particular period may not be indicative of our performance in any future period.

***The
failure to attract and retain key personnel could have an adverse effect on our operating results.***

Our
success depends substantially on the efforts and abilities of our senior management and key personnel. The competition for qualified
management and key personnel is intense. We maintain noncompetition and nondisclosure covenants with many of our key personnel, and we
do have employment agreements with some of them. The loss of services of one or more of our key employees or the inability to hire, train,
and retain additional key personnel could delay the development and sale of our products, disrupt our business, and interfere with our
ability to execute our business plan.

In
addition, our ability to maintain our competitive position is dependent to a large degree on the efforts and skills of our senior management
team, including our two founders Jeffrey Low and Jordan Low. The loss of the services of one or more of our key personnel could materially
and adversely affect our operations.

18

***We
may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs.***

In
the future, we may require additional capital to fund the planned expansion of our business and to respond to business opportunities,
challenges, potential acquisitions, or unforeseen circumstances. We could encounter unforeseen difficulties that may deplete our capital
resources rapidly, which could require us to seek additional financing in the near future. The timing and amount of any additional financing
that is required to continue the expansion of our business and the marketing of our products will depend on our ability to improve our
operating results and other factors. We may not be able to secure additional debt or equity financing in a timely basis or on favorable
terms, or at all. Such financing could result in substantial dilution of the equity interests of existing stockholders. We have no commitments
for any additional financing should the need arise. If we are unable to secure any necessary additional financing, we may need to delay
expansion plans, conserve cash, and reduce operating expenses. There is no assurance that any additional financing will be sufficient,
that the financing will be available on terms favorable to us or to existing stockholders and at such times as required, or that we will
be able to obtain the additional financing required for the continued operation and growth of our business. Any debt financing obtained
by us in the future could involve restrictive covenants relating to our capital raising activities and other financial and operational
matters, which may make it more difficult for us to obtain additional capital and to pursue business opportunities. If we raise additional
funds through further issuances of equity, convertible debt securities, or other securities convertible into equity, our existing stockholders
could suffer significant dilution in their percentage ownership of our company, and any new equity securities we issue could have rights,
preferences, and privileges senior to those of holders of our Common Stock. If we are unable to obtain adequate financing or financing
on terms satisfactory to us, when we require it, our ability to grow or support our business and to respond to business challenges could
be significantly limited.

***Potential
strategic alliances may not achieve their objectives, which could impede our growth.***

We
anticipate that we will enter into strategic alliances in the future. We continue to explore strategic alliances designed to expand our
product offerings, enter new markets, and improve our distribution channels. Strategic alliances may not achieve their intended objectives,
and parties to our strategic alliances may not perform as contemplated. The failure of these alliances may impede our ability to introduce
new products and enter new markets.

***Any
acquisitions that we undertake will involve significant risks, and any acquisitions that we undertake in the future could disrupt our
business, dilute stockholder value, and harm our operating results.***

We
have a strategy to expand our operations through strategic acquisitions to enhance existing products and offer new products, enter new
markets and businesses, strengthen and avoid interruption from our supply chain, and enhance our position in current markets and businesses.
Acquisitions involve significant risks and uncertainties. We cannot accurately predict the timing, size, and success of any future acquisitions.
We may be unable to identify suitable acquisition candidates or complete the acquisitions of candidates that we identify. Increased competition
for acquisition candidates or increased asking prices by acquisition candidates may increase purchase prices for acquisitions to levels
beyond our financial capability or to levels that would not result in the returns required by our acquisition criteria. Unforeseen expenses,
difficulties, and delays frequently encountered in connection with expansion through acquisitions could inhibit our growth and negatively
impact our operating results.

Our
ability to complete acquisitions that we desire to make will depend upon various factors, including the following:

- the  availability of suitable acquisition candidates at attractive purchase prices;
- the  ability to compete effectively for available acquisition opportunities;
- the  availability of cash resources, borrowing capacity, or stock at favorable price levels to provide required purchase prices in acquisitions;
- the  ability of management to devote sufficient attention to acquisition efforts; and
- the  ability to obtain any requisite governmental or other approvals.

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We
may have little or no experience with certain acquired businesses, which could involve significantly different supply chains, production
techniques, customers, and competitive factors than our current business. This lack of experience would require us to rely to a great
extent on the management teams of these acquired businesses. These acquisitions also could require us to make significant investments
in systems, equipment, facilities, and personnel in anticipation of growth. These costs could be essential to implement our growth strategy
in supporting our expanded activities and resulting corporate structure changes. We may be unable to achieve some or all of the benefits
that we expect to achieve as we expand into these new markets within the time frames we expect, if at all. If we fail to achieve some
or all of the benefits that we expect to achieve as we expand into these new markets, or do not achieve them within the time frames we
expect, our business, financial condition, and results of operations could be adversely affected.

As
a part of any potential acquisition, we may engage in discussions with various acquisition candidates. In connection with these discussions,
we and each potential acquisition candidate may exchange confidential operational and financial information, conduct due diligence inquiries,
and consider the structure, terms, and conditions of the potential acquisition. In certain cases, the prospective acquisition candidate
agrees not to discuss a potential acquisition with any other party for a specific period of time and agrees to take other actions designed
to enhance the possibility of the acquisition, such as preparing audited financial information. Potential acquisition discussions frequently
take place over a long period of time and involve difficult business integration and other issues. As a result of these and other factors,
a number of potential acquisitions that from time-to-time appear likely to occur do not result in binding legal agreements and are not
consummated, but may result in significant legal, consulting, and other costs.

Unforeseen
expenses, difficulties, and delays frequently encountered in connection with future acquisitions could inhibit our growth and negatively
impact our profitability. Any future acquisitions may not meet our strategic objectives or perform as anticipated. In addition, the size,
timing, and success of any future acquisitions may cause substantial fluctuations in our operating results from quarter to quarter.

If
we finance any future acquisitions in whole or in part through the issuance of Common Stock or securities convertible into or exercisable
for Common Stock, existing stockholders will experience dilution in the voting power of their Common Stock and earnings per share could
be negatively impacted. The extent to which we will be able or willing to use our Common Stock for acquisitions will depend on the value
of our Common Stock from time-to-time and the willingness of potential acquisition candidates to accept our Common Stock as full or partial
consideration for the sale of their businesses. Our inability to use our Common Stock as consideration, to generate cash from operations,
or to obtain additional funding through debt or equity financings to pursue an acquisition could limit our growth.

20

***Any
acquisitions or strategic alliances that we undertake could be difficult to integrate, disrupt our business, dilute stockholder value,
and harm our operating results.***

We
may be unable to effectively complete an integration of the management, operations, facilities, and accounting and information systems
of acquired businesses with our own; to implement effective controls to mitigate legal and business risks with which we have no prior
experience; to manage efficiently the combined operations of the acquired businesses with our operations; to achieve our operating, growth,
and performance goals for acquired businesses; to achieve additional sales as a result of our expanded operations; or to achieve operating
efficiencies or otherwise realize cost savings as a result of anticipated acquisition synergies. The integration of acquired businesses
involves numerous risks and uncertainties, including the following:

- the  potential disruption of our core businesses;
- risks  associated with entering markets and businesses in which we have little or no prior experience;
- diversion  of management’s attention from our core businesses;
- adverse  effects on existing business relationships with suppliers and customers;
- risks  associated with increased regulatory or compliance matters;
- failure  to retain key customers, suppliers, or personnel of acquired businesses;
- the  potential strain on our financial and managerial controls and reporting systems and procedures;
- greater  than anticipated costs and expenses related to the integration of the acquired business with our business;
- potential  unknown liabilities associated with the acquired company;
- risks  associated with weak internal controls over information technology systems and associated cyber security risks;
- meeting  the challenges inherent in effectively managing an increased number of employees in diverse locations;
- failure  of acquired businesses to achieve expected results;
- the  risk of impairment charges related to potential write-downs of acquired assets in future acquisitions; and
- the  challenge of creating uniform standards, controls, procedures, policies, and information systems.

***Breaches
of our information systems could adversely affect our reputation, disrupt our operations, and result in increased costs and loss sales.***

There
have been an increasing number of cyber security incidents affecting companies around the world, which have caused operational failures
or compromised sensitive corporate data. Although we do not believe our systems are at a greater risk of cyber security incidents than
other similar organizations, such cyber security incidents may result in the loss or compromise of customer, financial, or operational
data; disruption of billing, collections, or normal operating activities; disruption of electronic monitoring and control of operational
systems; and delays in financial reporting and other management functions. Possible impacts associated with a cyber security incident
may include among others, remediation costs related to lost, stolen, or compromised data; repairs to data processing systems; increased
cyber security protection costs; reputational damage; and adverse effects on our compliance with applicable privacy and other laws and
regulations.

21

***A
failure of our information technology systems, or an interruption in their operation due to internal or external factors including cyber-attacks,
could have a material adverse effect on our business, financial condition or results of operations.***

Our
operations depend on our ability to protect our information systems, computer equipment, and information databases from systems failures.
We rely on our information technology systems generally to manage the day-to-day operations of our business, operate elements of our
manufacturing facility, manage relationships with our customers, fulfill customer orders, and maintain our financial and accounting records.
Failure of our information technology systems could be caused by internal or external events, such as incursions by intruders or hackers,
computer viruses, cyber-attacks, failures in hardware or software, or power or telecommunication fluctuations or failures. The failure
of our information technology systems to perform as anticipated for any reason or any significant breach of security could disrupt our
business and result in numerous adverse consequences, including reduced effectiveness and efficiency of operations, increased costs,
or loss of important information, any of which could have a material adverse effect on our business, operating results, and financial
condition. Any technology and information security processes and disaster recovery plans we use to mitigate our risk to these vulnerabilities
may not be adequate to ensure that our operations will not be disrupted should such an event occur.

***We
are subject to extensive regulation and could incur fines, penalties and other costs and liabilities under such requirements.***

Like
many other manufacturers and distributors of consumer products, we are required to comply with a wide variety of laws, rules, and regulations,
including those relating to labor, employment, the environment, the export and import of our products, and taxation. These laws, rules,
and regulations currently impose significant compliance requirements on our business, and more restrictive laws, rules and regulations
may be adopted in the future.

Our
operations are subject to a variety of laws and regulations relating to environmental protection, including those governing the discharge,
treatment, storage, transportation, remediation, and disposal of certain materials and wastes, and restoration of damages to the environment,
and health and safety matters. We could incur substantial costs, including remediation costs, resource restoration costs, fines, penalties,
and third-party property damage or personal injury claims as a result of liabilities under or violations of such laws and regulations
or the permits required thereunder. While environmental laws and regulations have not had a material adverse effect on our business,
operating results, financial condition, the ultimate cost of environmental liabilities is difficult to accurately predict and we could
incur material additional costs as a result of requirements or obligations imposed or liabilities identified in the future.

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As
a manufacturer and distributor of consumer products, we are subject to the Consumer Products Safety Act, which empowers the Consumer
Products Safety Commission to exclude from the market products that are found to be unsafe or hazardous. Under certain circumstances,
the Consumer Products Safety Commission could require us to repurchase or recall one or more of our products. In addition, laws regulating
certain consumer products exist in some cities and states, and in other countries in which we sell our products, and more restrictive
laws and regulations may be adopted in the future. Any repurchase or recall of our products could be costly to us and could damage our
reputation. If we were required to remove, or we voluntarily removed, our products from the market, our reputation could be tarnished
and we could have large quantities of finished products that we are unable to sell. We are also subject to the rules and regulations
of the Bureau of Alcohol, Tobacco, Firearms and Explosives, or the ATF. If we fail to comply with ATF rules and regulations, the ATF
may limit our growth or business activities, levy fines against or revoke our license to do business. Our business, and the business
of all producers and marketers of ammunition and firearms, is also subject to numerous federal, state, local, and foreign laws, regulations,
and protocols. Applicable laws have the following effects:

- require  the licensing of all persons manufacturing, exporting, importing, or selling firearms and ammunition as a business;
- require  background checks for purchasers of firearms;
- impose  waiting periods between the purchase of a firearm and the delivery of a firearm;
- prohibit  the sale of firearms to certain persons, such as those below a certain age and persons with criminal records;
- regulate  the use and storage of gun powder or other energetic materials;
- regulate  our employment of personnel with criminal convictions; and
- restrict  access to firearm manufacturing facilities for individuals from other countries or with criminal convictions.

Also,
the export of our products is controlled by International Traffic in Arms Regulations, or ITAR, and Export Administration Regulations,
or EAR. The ITAR implements the provisions of the Arms Export Control Act and is enforced by the U.S. Department of State. The EAR implements
the provisions of the Export Administration Act and is enforced by the U.S. Department of Commerce. Among their many provisions, the
ITAR and the EAR require a license application for the export of many of our products. In addition, the ITAR requires congressional approval
for any firearms export application with a total value of $1 million or higher. Further, because our manufacturing process includes certain
toxic, flammable and explosive chemicals, we are subject to the Chemical Facility Anti-Terrorism Standards, as administered by the U.S.
Department of Homeland Security, which require that we take additional reporting and security measures related to our manufacturing process.

Several
states currently have laws in effect that are similar to, and, in certain cases, more restrictive than, these federal laws. Compliance
with all of these regulations is costly and time-consuming. Inadvertent violation of any of these regulations could cause us to incur
fines and penalties and may also lead to restrictions on our ability to manufacture and sell our products and services and to import
or export the products we sell.

***Changes
in government policies and firearms legislation could adversely affect our financial results.***

The
sale, purchase, ownership, and use of firearms are subject to numerous and varied federal, state, and local governmental regulations.
Federal laws governing firearms include the National Firearms Act, the Federal Firearms Act, the Arms Export Control Act, and the Gun
Control Act of 1968. These laws generally govern the manufacture, import, export, sale, and possession of firearms and ammunition. We
hold all necessary licenses to legally sell ammunition in the United States.

The
federal and state legislatures may in the future consider additional legislation relating to the regulation of firearms and ammunition.
Such legislation could effectively ban or severely limit the sale of affected firearms and ammunition. In addition, if such restrictions
are enacted and are incongruent, we could find it difficult, expensive, or even practically impossible to comply with them, which could
impede new product development and the distribution of existing products. We cannot assure you that the regulation of our business activities
will not become more restrictive in the future and that any such restriction will not have a material adverse effect on our business.

23

***Failure
to comply with the U.S. Foreign Corrupt Practices Act or other applicable anti-corruption legislation, and export controls and trade
sanctions, could result in fines or criminal penalties if we expand our business abroad.***

The
expansion of our business internationally would expose us to trade sanctions and other restrictions imposed by the United States and
other governments. The U.S. Departments of Justice, Commerce, Treasury and other agencies and authorities have a broad range of civil
and criminal penalties they may seek to impose against companies for violations of export controls, the Foreign Corrupt Practices Act,
anti-boycott provisions and other federal statutes, sanctions and regulations and, increasingly, similar or more restrictive foreign
laws, rules and regulations, which may also apply to us. By virtue of these laws and regulations, and under laws and regulations in other
jurisdictions, we may be obliged to limit our business activities, we may incur costs for compliance programs and we may be subject to
enforcement actions or penalties for noncompliance. In recent years, U.S. and foreign governments have increased their oversight and
enforcement activities with respect to these laws, and we expect the relevant agencies to continue to increase these activities. A violation
of these laws, sanctions or regulations could result in restrictions on our exports, civil and criminal fines or penalties and could
adversely impact our business, operating results, and financial condition.

***Our
founders will have the ability to exert substantial influence over our company.***

As
of the date of this prospectus, our founders, Jeffrey Low and Jordan Low combined own 16,229,500 shares of our common stock representing
36.1% of our issued and outstanding shares of our common stock. As a result, our founders will be able to exert substantial influence
over our company and over matters requiring approval by our stockholders, including electing all our directors, approving any amendments
to our certificate of incorporation, increasing our authorized capital stock, effecting a merger or sale of our assets, and determining
the number of shares available for issuance under our equity-based plans.

***Our
charter documents and Delaware law could make it more difficult for a third party to acquire us and discourage a takeover.***

Our
certificate of incorporation and bylaws contain, and Delaware law contains, certain provisions that may have the effect of deterring
or discouraging, among other things, a non-negotiated tender or exchange offer for shares of Common Stock, a proxy contest for control
of our company, the assumption of control of our company by a holder of a large block of Common Stock, and the removal of the management
of our company. Such provisions also may have the effect of deterring or discouraging a transaction which might otherwise be beneficial
to stockholders. Our amended and restated certificate of incorporation also authorizes our board of directors, without stockholder
approval, to issue one or more series of preferred stock, which could have voting and conversion rights that adversely affect or dilute
the voting power of the holders of Common Stock. Delaware law also imposes conditions on certain business combination transactions with
“interested stockholders.” Subject to certain exceptions, our bylaws authorizes our board of directors to fill vacancies
or newly created directorships whereby a majority of the directors then in office may elect a successor to fill any vacancies or newly
created directorships. Such provisions could limit the price that investors might be willing to pay in the future for shares of our Common
Stock and impede the ability of the stockholders to replace management.

24

The
elimination of monetary liability against our directors, officers, and employees under Delaware law and the existence of indemnification
rights to our directors, officers, and employees may result in substantial expenditures by us and may discourage lawsuits against our
directors, officers, and employees. We also may enter into contractual indemnification obligations under employment agreements with our
executive officers. The foregoing indemnification obligations could result in our incurring substantial expenditures to cover the cost
of settlement or damage awards against directors and officers, which we may be unable to recoup. These provisions and resultant costs
may also discourage us from bringing a lawsuit against our directors and officers for breaches of their fiduciary duties and may similarly
discourage the filing of derivative litigation by our stockholders against our directors and officers even though such actions, if successful,
might otherwise benefit our company and our stockholders.

***Our
results of operations could be impacted by unanticipated changes in tax provisions or exposure to additional income tax liabilities.***

Our
business operates in many locations under government jurisdictions that impose income taxes. Changes in domestic or foreign income tax
laws and regulations, or their interpretation, could result in higher or lower income tax rates assessed or changes in the taxability
of certain revenues or the deductibility of certain expenses, and higher excise taxes thereby affecting our income tax expense and profitability.
In addition, audits by income tax authorities could result in unanticipated increases in our income tax expense.

***Compliance
with the laws and regulations affecting public companies could adversely affect our business, results of operations, and financial condition.***

As
a public company, we will be subject to the reporting requirements of the Exchange Act, the Nasdaq listing standards, and other applicable
securities rules and regulations. We expect that the requirements of these rules and regulations will continue to increase our legal,
accounting, and financial compliance costs, make some activities more difficult, time-consuming and costly, and place significant strain
on our personnel, systems, and resources. The complexity of complying with these rules may divert management’s attention from other
business matters, potentially harming our operations and financial results. Although we have hired additional employees to assist with
compliance, we may need to hire more or engage consultants in the future, further increasing our operating expenses. As a public company
subject to additional oversight, we may not have the same flexibility we had as a private company.

Additionally,
changing laws, regulations, and governance standards, which are subject to varying interpretations, are creating uncertainty for public
companies, which may result in increased general and administrative expenses and a diversion of management’s time and attention
from business operations to compliance activities. If our efforts to comply with new laws, regulations, and standards differ from the
activities intended by regulatory or governing bodies due to ambiguities related to their application and practice, regulatory authorities
may initiate legal proceedings against us, and our business may be harmed. We also expect that being a public company will make it more
expensive for us to obtain director and officer liability insurance, which may result in reduced coverage or higher premiums, and could
make it more difficult to attract and retain qualified directors and officers.

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Public
disclosures required as a public company may increase our exposure to actual or threatened litigation from competitors and other third
parties. Even if these claims do not result in litigation or are resolved in our favor, the time and resources spent on resolving them
could harm our business.

***If we are unable to satisfy our funding obligations on the dates required, we may be in breach of the JV Agreement,
which could result in the dilution or forfeiture of our equity interests in the Joint Venture, disputes with IdeaForge, or the termination
of the JV Agreement, any of which could have a material adverse effect on our business, financial condition and results of operations.***

Pursuant
to the JV Agreement (as defined below), we are obligated to invest $10,000,000 in the Joint Venture (as defined below) on or before
December 31, 2026, with the remaining balance of the Capital Contribution (as defined below) of up to $25,000,000 to be funded on or
before December 31, 2027. There can be no assurance that we will have sufficient capital or liquidity to meet these obligations when
due. Our ability to fund these contributions will depend on a number of factors, including our operating cash flows, access to
capital markets, and general economic and market conditions, many of which are outside of our control. If we are unable to satisfy
our funding obligations on the dates required, we may be in breach of the JV Agreement, which could result in the dilution or
forfeiture of our equity interests in the Joint Venture, disputes with IdeaForge (as defined below), or the termination of the JV
Agreement, any of which could have a material adverse effect on our business, financial condition and results of
operations.

Furthermore,
even if we are able to satisfy our capital contribution obligations, there is no guarantee that the Joint Venture will achieve its intended
objectives or generate any return on our investment. The Joint Venture is an early-stage enterprise subject to the risks inherent in
the development and commercialization of drone technology, including regulatory, technological, competitive and market risks. The loss
of all or a portion of our investment in the Joint Venture could have a material adverse effect on our business, financial condition
and results of operations.

**Risks
Related to this Direct Listing and Ownership of Our Common Stock**

***Our
listing differs significantly from an initial public offering conducted on a firm-commitment basis.***

This
is not an initial public offering of common stock conducted on a firm-commitment underwritten basis. There have been few companies that
have undertaken a direct listing to date and there are many uncertainties associated with such type of listing. The listing of our common
stock on Nasdaq differs from a firm-commitment underwritten initial public offering in several significant ways, which include, but are
not limited to, the following:

- There  are no underwriters engaged on a firm-commitment basis. Consequently, prior to the opening of trading on Nasdaq, there will be no  traditional book building process and no price at which underwriters initially sold shares to the public to help inform efficient  and sufficient price discovery with respect to the opening trades on Nasdaq. Therefore, buy and sell orders submitted prior to and  at the opening of trading of our common stock on Nasdaq will not have the benefit of being informed by a published price range or  a price at which the underwriters initially sold shares to the public, as would be the case in an initial public offering underwritten  on a firm-commitment basis. Moreover, there will be no underwriters engaged on a firm-commitment underwritten basis assuming risk  in connection with the initial resale of shares of our common stock. In an initial public offering underwritten on a firm-commitment  basis, the underwriters may engage in “covered” short sales in an amount of shares representing the underwriters’  option to purchase additional shares. To close a covered short position, the underwriters purchase shares in the open market or exercise  the underwriters’ option to purchase additional shares. In determining the source of shares to close the covered short position,  the underwriters typically consider, among other things, the price of shares available for purchase in the open market as compared  to the price at which they may purchase shares through the underwriters’ option to purchase additional shares. Purchases in  the open market to cover short positions, as well as other purchases underwriters may undertake for their own accounts, may have  the effect of preventing a decline in the market price of shares. Given that there will be no underwriters’ option to purchase  additional shares and no underwriters engaging in stabilizing transactions, there could be greater volatility in the public price  of our common stock during the period immediately following the listing.
- There  is not a fixed number of securities available for sale. Therefore, there can be no assurance that any Registered Stockholders will  sell any or all of their common stock and there may initially be a lack of supply of, or demand for, our common stock on Nasdaq.  Alternatively, we may have a large number of Registered Stockholders who choose to sell their common stock in the near term resulting  in an oversupply of our common stock, which could adversely impact the public price of our common stock once listed on Nasdaq.

26

- Consistent  with Regulation M and other federal securities laws applicable to the Direct Listing, we have not consulted with Registered Stockholders  (other than our directors and officers who own our common stock) regarding their desire or plans to sell shares in the public market  following the listing or discussed with potential investors their intentions to buy our common stock in the open market. In a firm-commitment  underwritten initial public offering, it is customary for an issuer’s officers, directors, and most of its other shareholders  to enter into a 180-day contractual lock-up arrangement with the underwriters to help promote orderly trading immediately after listing.  None of our Registered Stockholders have entered into contractual lock-up agreements or other contractual restrictions on transfer.  Consequently, our Registered Stockholders may sell any or all of their common stock at any time (subject to any restrictions under  applicable law), including immediately upon listing. The shares being registered herein may be freely sold in market transactions  following the listing and upon the effectiveness of this registration statement. All shares of common stock subject to stock options  outstanding and reserved for issuance under our equity incentive plan are expected to be registered on Form S-8 under the Securities  Act and such shares are eligible for sale in the public markets, subject to the limitations applicable to affiliates under Rule 144.  If such sales were to occur in a significant quantum, it may result in an oversupply of our common stock in the market, which could  adversely impact the public price of our common stock. See “Our shares of common stock currently have no public market. An  active trading market may not develop or continue to be liquid and the market price of our shares of common stock may be volatile.”  None of our stockholders are party to any contractual lock-up agreement or other contractual restrictions on transfer. Sales of substantial  amounts of our common stock in the public markets by our founders, affiliates, or non-affiliates, or the perception that such sales  might occur, could reduce the price that our common stock might otherwise attain. There can be no assurance that the Registered Stockholders  will not sell all of their shares of our common stock, resulting in an oversupply of our common stock on The Nasdaq Capital Market.  In the case of a lack of supply of our common stock, the trading price of our common stock may rise to an unsustainable level. Further,  institutional investors may be discouraged from purchasing our common stock if they are unable to purchase a block of our common  stock in the open market in a sufficient size for their investment objectives due to a potential unwillingness of our existing stockholders  to sell a sufficient amount of our common stock at the price offered by such institutional investors and the greater influence individual  investors have in setting the trading price. If institutional investors are unable to purchase our common stock in a sufficient amount  for their investment objectives, the market for our common stock may be more volatile without the influence of long-term institutional  investors holding significant amounts of our common stock. In the case of a lack of demand for our common stock, the trading price  of our common stock could decline significantly and rapidly after the Direct Listing.

Such
differences from a firm-commitment underwritten initial public offering could result in a volatile market price for our common stock
and uncertain trading volume and may adversely affect your ability to sell your common stock.

27

***The
direct listing process differs from an initial public offering underwritten on a firm-commitment basis and the impact of awareness of
our brand and investor recognition of our Company on the demand for our common stock is unpredictable and our marketing and brand development
efforts may not be successful.***

We
will not conduct a traditional “roadshow” with underwriters prior to the opening of trading of our common stock on Nasdaq.
Instead, we may engage in certain investor presentations and educational meetings to enhance our brand awareness and investor recognition
of our Company. In advance of any investor presentation or educational meeting, we will announce the date for such presentation or meeting
through financial news outlets in a manner consistent with typical corporate outreach to investors. We will prepare an electronic presentation
for any investor presentation or educational meeting that we hold, and will make the presentation publicly available, without restriction,
on a website.

There
can be no assurance that any investor presentations or other educational meetings that we hold will have the same impact on awareness
of our brand and investor recognition of our Company as a traditional “roadshow” conducted in connection with a firm-commitment
underwritten initial public offering. As a result, there may not be efficient price discovery with respect to our common stock or sufficient
demand among investors immediately following our listing, which could result in a more volatile public price of our common stock.

***Our
shares of common stock currently have no public market. An active trading market may not develop or continue to be liquid and the market
price of our shares of common stock may be volatile.***

We
expect our shares of common stock to be listed and traded on Nasdaq. We will not be involved in the price setting process and the Registered
Stockholders will not be involved in the price setting process. Additionally the price of our shares in prior private transactions may
have little or no relation to the opening price and subsequent public price of our stock on Nasdaq. We have engaged a third party firm
to conduct a valuation pursuant to Nasdaq’s listing qualification rules and requirements. Prior to the listing on Nasdaq, there
has not been a public market for our shares of common stock, and an active market for our shares of common stock may not develop or be
sustained after the listing, which could depress the market price of our shares of common stock and could affect the ability of our stockholders
to sell our shares of common stock. In the absence of an active public trading market, investors may not be able to liquidate their investments
in our shares of common stock. An inactive market may also impair our ability to raise capital by selling our shares of common stock,
our ability to motivate our employees through equity incentive awards and our ability to acquire other companies, products or technologies
by using our shares of common stock as consideration.

In
addition, we cannot predict the prices at which our shares of common stock may trade on Nasdaq following the listing of our shares of
common stock, and the market price of our shares of common stock may fluctuate significantly in response to various factors, some of
which are beyond our control. In particular, as this listing is taking place through a novel process that is not a firm-commitment underwritten
initial public offering, there will be no traditional book building process and no price at which traditional underwriters initially
sold shares to the public to help inform efficient price discovery with respect to the opening trades on Nasdaq. On the day that our
shares of common stock are initially listed on Nasdaq, Nasdaq will begin accepting, but not executing, pre-opening buy and sell orders
and will begin to continuously generate the indicative Current Reference Price (as defined below) on the basis of such accepted orders.
The Current Reference Price is calculated each second and, during a 10-minute “Display Only” period, is disseminated, along
with other indicative imbalance information, to market participants by Nasdaq on its NOII and BookViewer tools. Following the “Display
Only” period, a “Pre-Launch” period begins, during which the Advisor, in its capacity as our financial advisor, must
notify Nasdaq that our shares are “ready to trade.” Once the Advisor has notified Nasdaq that our shares of common stock
are ready to trade, Nasdaq will confirm the Current Reference Price for our shares of common stock, in accordance with the Nasdaq rules.
If the Advisor then approves proceeding at the Current Reference Price, the applicable orders that have been entered will be executed
at such price and regular trading of our shares of common stock on Nasdaq will commence, subject to Nasdaq conducting validation checks
in accordance with Nasdaq rules. The Advisor will determine when our shares of common stock are ready to trade and approve proceeding
at the Current Reference Price primarily based on considerations of volume, timing and price. In particular, the Advisor will determine,
based primarily on pre-opening buy and sell orders, when a reasonable amount of volume will cross on the opening trade such that sufficient
price discovery has been made to open trading at the Current Reference Price. If the Advisor does not approve proceeding at the Current
Reference Price (for example, due to the absence of adequate pre-opening buy and sell interest), the Advisor will request that Nasdaq
delay the open until such a time that sufficient price discovery has been made to ensure a reasonable amount of volume crosses on the
opening trade. For more information, see “Plan of Distribution.”

28

Additionally,
prior to the opening trade, there will not be a price at which underwriters initially sold shares of common stock to the public as there
would be in a firm-commitment underwritten initial public offering. The absence of a predetermined initial public offering price could
impact the range of buy and sell orders collected by Nasdaq from various broker-dealers. Consequently, upon listing on Nasdaq, the public
price of our common stock may be more volatile than in a firm-commitment underwritten initial public offering and could decline significantly
and rapidly.

Furthermore,
because of our novel listing process on the Nasdaq Capital Market, Nasdaq’s rules for ensuring compliance with its initial listing
standards, such as those requiring a valuation or other compelling evidence of value, are untested. In the absence of a prior active
public trading market for our common stock, if the price of our common stock or our market capitalization falls below those required
by Nasdaq’s eligibility standards, we may not be able to satisfy the ongoing listing criteria and may be required to delist.

In
addition, because of our novel listing process, individual investors, retail or otherwise, may have greater influence in setting the
opening public price and subsequent public prices of our common stock on Nasdaq and may participate more in our initial trading than
is typical for a firm-commitment underwritten initial public offering. These factors could result in a public price of our common stock
that is higher than other investors (such as institutional investors) are willing to pay, which could cause volatility in the trading
price of our common stock and an unsustainable trading price if the price of our common stock significantly rises upon listing and institutional
investors believe our common stock is worth less than retail investors, in which case the price of our common stock may decline over
time. Further, if the public price of our common stock is above the level that investors determine is reasonable for our common stock,
some investors may attempt to short our common stock after trading begins, which would create additional downward pressure on the public
price of our common stock. To the extent that there is a lack of consumer awareness among retail investors, such a lack of consumer awareness
could reduce the value of our common stock and cause volatility in the trading price of our common stock.

The
public price of our common stock following the listing also could be subject to wide fluctuations in response to the risk factors described
in this prospectus and others beyond our control, including:

- the  number of shares of our common stock publicly owned and available for trading;
- overall  performance of the equity markets and/or publicly-listed companies that offer competing services and products;
- actual  or anticipated fluctuations in our revenue or other operating metrics;
- our  actual or anticipated operating performance and the operating performance of our competitors;
- changes  in the financial projections we provide to the public or our failure to meet these projections;
- failure  of securities analysts to initiate or maintain coverage of us, changes in financial estimates by any securities analysts who follow  our company, or our failure to meet the estimates or the expectations of investors;
- any  major change in our board of directors, management, or key personnel;
- the  economy as a whole and market conditions in our industry;
- rumors  and market speculation involving us or other companies in our industry;
- announcements  by us or our competitors of significant innovations, new products, services, features, integrations or capabilities, acquisitions,  strategic investments, partnerships, joint ventures, or capital commitments;
- new  laws or regulations or new interpretations of existing laws or regulations applicable to our business, in the U.S. or globally;
- lawsuits  threatened or filed against us;
- other  events or factors, including those resulting from war, incidents of terrorism, or responses to these events; and
- sales  or expected sales of our common stock by us and our officers, directors and principal stockholders.

29

In
addition, stock markets have experienced price and volume fluctuations that have affected and continue to affect the market prices of
equity securities of many companies. Stock prices of many companies have fluctuated in a manner often unrelated to the operating performance
of those companies. These fluctuations may be even more pronounced in the trading market for our common stock shortly following the listing
of our common stock on Nasdaq as a result of the supply and demand forces described above. In the past, stockholders have instituted
securities class action litigation following periods of market volatility. If we were to become involved in securities litigation, it
could subject us to substantial costs, divert resources and the attention of management from our business and harm our business, results
of operations and financial condition.

**We
may not be able to meet each of the quantitative requirements of the Nasdaq Capital Market’s Market Value Standard for
Direct Listings.**

We
have applied to have shares of our common stock listed on the Nasdaq Capital Market. We expect that our common stock will be listed on
the Nasdaq Capital Market on or promptly after the date of this prospectus. In order for the Nasdaq Capital Market to approve our listing
application, we will need to meet the quantitative requirements of the Nasdaq Capital Market’s Market Value of Listed Securities
Standard, as provided in Nasdaq Listing Rules 5505(a) and 5505(b)(2), as well as the heightened initial listing requirements for direct
listings set forth in Nasdaq Listing Rule IM-5505-1. We expect to meet all those requirements but in the event that we are unable
to meet such requirements, we will not be approved to list our common stock on the Nasdaq Capital Market and our securities could be
quoted on an over-the-counter market. If this were to occur, we could face significant material adverse consequences, including:

- a  limited availability of market quotations for our securities;
- reduced  liquidity for our securities;
- a  determination that our common stock is “penny stock” which will require brokers trading in our common stock to adhere  to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our securities;
- a  limited amount of news and analyst coverage; and
- a  decreased ability to issue additional securities or obtain additional financing in the future.

The
National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the
sale of certain securities, which are referred to as “covered securities.” Because we expect that our common stock will be
listed on the Nasdaq Capital Market, our common stock will qualify as covered securities under the statute. Although the states are preempted
from regulating the sale of our securities, the federal statute does allow the states to investigate companies if there is a suspicion
of fraud, and, if there is a finding of fraudulent activity, then the states can regulate or bar the sale of covered securities in a
particular case. If we cannot be listed on the Nasdaq Capital Market or any other national securities exchange, our securities would
not qualify as covered securities under the statute and we would be subject to regulation in each state in which we offer our securities.

***We
intend to list our common stock on the Nasdaq Capital Market in connection with the Direct Listing and must satisfy heightened initial
listing requirements, and there can be no assurance that we will be able to do so.***

We
have applied to list our common stock on the Nasdaq Capital Market in connection with the Direct Listing and intend to rely on the Market
Value of Listed Securities Standard for purposes of satisfying the initial listing requirements. Companies listing in connection
with a direct listing on the Nasdaq Capital Market must satisfy certain heightened quantitative and liquidity requirements
under Nasdaq Listing Rules 5505(a) and 5505(b)(2), as well as the additional requirements for direct listings set forth in Nasdaq
Listing Rule IM-5505-1, and Nasdaq will determine whether we meet these requirements based on the price of our common stock at the
time of listing as determined by reference to a third-party valuation or, if applicable, sustained recent trading in a private placement
market.

To
qualify for initial listing under this standard as a direct listing, we must satisfy certain heightened quantitative requirements
set forth in Nasdaq Listing Rules 5505(a) and 5505(b) and the direct listing requirements of IM-5505-1, including, among others:

- a valuation-based   market value of listed securities of at least $100.0 million;
- a valuation-based  market value of unrestricted publicly held shares of at least $30.0 million;
- at least 1,000,000 unrestricted  publicly held shares;
- a minimum bid price of at  least $8.00 per share;
- at least 300 round lot  holders; and
- stockholders’ equity  of at least $5.0 million; and

In addition, companies listing in
connection with a direct listing on the Nasdaq Capital Market must have at least three registered and active market makers willing to
act as market makers for the Company’s common stock.

Nasdaq
will determine whether we satisfy the applicable initial listing requirements based on the price of our common stock at the time of listing
and our satisfaction of the quantitative and liquidity requirements of the Nasdaq Capital Market.

Based
on an assumed initial reference price of $19.13 per share, which was determined by reference to a third-party valuation conducted
in connection with the Company’s application to list on Nasdaq pursuant to the requirements of Nasdaq Listing Rule IM-5505-1,
we expect to have a market value of listed securities in excess of $100.0 million, based on 45,034,282 shares of common stock outstanding
as of the date of this prospectus, and a market value of unrestricted publicly held shares in excess of $30.0 million, based
on 45,034,282 unrestricted publicly held shares. We further expect to have at least 1,000,000 unrestricted publicly held shares,
at least 300 round lot holders, a minimum bid price of at least $8.00 per share (based on the assumed initial reference price of $19.13
per share, which exceeds the $8.00 minimum), stockholders’ equity in excess of $5.0 million, based on our stockholders’
equity of $6,404,480 as of December 31, 2025, and at least three registered and active market makers. Accordingly, we expect
to satisfy the quantitative initial listing requirements of the Nasdaq Capital Market for direct listings in connection with the
Direct Listing; however, there can be no assurance that our application will be approved or that we will continue to satisfy the applicable
listing requirements. Investors should note that the assumed initial reference price of $19.13 per share represents a substantial
premium over the per share prices paid by accredited investors in our prior private transactions, including as recently as January and
February 2026, when we issued an aggregate of 323,336 shares of common stock at $3.00 per share, and earlier issuances at prices ranging
from $1.00 to $2.00 per share. The assumed initial reference price was derived from the third-party valuation described above and does
not reflect an arms’-length negotiation between a buyer and a seller or the price at which underwriters initially sold shares to
the public, as would be the case in an initial public offering underwritten on a firm-commitment basis. The disparity between the per
share prices paid by accredited investors in prior private transactions and the assumed initial reference price may result in investors
who purchase shares at or near the assumed initial reference price experiencing a decline in the value of their investment if the trading
price of our common stock does not sustain such level. There can be no assurance that the trading price of our common stock will equal
or exceed the assumed initial reference price following the listing.]

***The
market price of our Common Stock may be volatile, and you could lose all or part of your investment.***

The
trading price of our Common Stock is likely to be volatile and may fluctuate substantially in response to a variety of factors, many
of which are outside of our control. These factors include, among others, variations in our operating results; progress in establishing
and scaling our manufacturing operations; announcements by us or our competitors; changes in laws or regulations affecting the ammunition
and firearms industry; analyst coverage or lack thereof; litigation or regulatory actions; and changes in general market or economic
conditions. As a result, purchasers of our Common Stock could incur substantial losses if the market price of our Common Stock declines.

30

***If
securities or industry analysts do not publish research or publish unfavorable or inaccurate research about our business, our stock price
and trading volume could decline.***

The
trading market for our Common Stock will depend, in part, on the research and reports that securities or industry analysts publish about
us or our industry. We may never obtain research coverage by securities or industry analysts. If no analysts commence coverage of our
company, the trading price and volume of our Common Stock would likely be negatively impacted. If we do obtain analyst coverage, and
one or more analysts downgrade our Common Stock or publish inaccurate or unfavorable research about our business, the trading price of
our Common Stock would likely decline. If one or more analysts cease coverage of our company or fail to regularly publish reports, demand
for our Common Stock could decrease, which might cause our stock price and trading volume to decline.

***Our
status as an “emerging growth company” and a “smaller reporting company” allows us to take advantage of reduced
disclosure requirements, which could make our Common Stock less attractive to investors.***

We
are an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”),
and a “smaller reporting company” under SEC rules. As such, we are eligible to take advantage of certain exemptions from
various reporting requirements that are applicable to other public companies, including reduced disclosure obligations regarding executive
compensation, exemption from the requirements of holding a nonbinding advisory vote on executive compensation, and, for so long as we
qualify as an emerging growth company, exemption from the requirement that our independent registered public accounting firm attest to
the effectiveness of our internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act. We may also choose
to take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised
accounting standards. We cannot predict whether investors will find our Common Stock less attractive because we rely on these exemptions.
If some investors find our Common Stock less attractive, there may be a less active trading market for our Common Stock, and our stock
price may be more volatile.

***The Advisor, which will own a substantial number of shares of our common
stock on the date of the Direct Listing, may have a conflict of interest.***

Given
RBW’s dual role as our financial advisor under Nasdaq direct listing rules and its status as a shareholder and placement agent
may present a conflict of interest. A conflict of interest situation can arise when a person or an entity has interests that may make
it difficult to perform their work objectively and effectively. Conflicts of interest may also arise if a person or entity receives personal
benefits as a result of their position. Nasdaq will determine the Current Reference Price of our shares of common stock in the Direct
listing in consultation with the Advisor in its capacity as our financial advisor. The Advisor will determine when our shares of common
stock are ready to trade and approve proceeding at the Current Reference Price primarily based on considerations of volume, timing and
price. In particular, the Advisor will determine, based primarily on pre-opening buy and sell orders, when a reasonable amount of volume
will cross on the opening trade such that sufficient price discovery has been made to open trading at the Current Reference Price.

As
compensation for successful listing, RBW will be granted 1.0% of our fully diluted common stock outstanding immediately prior to the
Direct Listing, which we currently calculate at 887,472 shares (“Advisory Shares”). Such shares are not registered
pursuant to this prospectus and the Advisor is not a Registered Shareholder. A resale registration statement covering such shares will
be filed within 10 days of the date of the Direct Listing. In addition, upon a successful direct listing, we will pay RBW a one-time
cash advisory fee of $250,000. As the Advisor will receive substantial personal benefit as a result of the Direct Listing, the existence of such financial and personal
interests may result in a conflict of interest on the part of the Advisor between what it may believe is best for the Company and its
shareholders and what it may believe is best for itself.

***Exercise
of warrants and options may have a dilutive effect on our stock and negatively impact the price of our Common Stock.***

As
of the date of this prospectus, we had 16,223,996 warrants and 15,113,046 options outstanding. Each warrant or option provides the holder
the right to purchase up to one share of our Common Stock at a predetermined exercise price. Our outstanding warrants consist of warrants
to purchase an aggregate of 16,223,996 shares of Common Stock at an average price of $1.06 per share over the next 1.2 years,
and our outstanding options consist of options to purchase an aggregate of 15,113,046 shares of Common Stock at an average price of $1.07
per share over the next 7.2 years.

To
the extent that any of the outstanding warrants and options described above are exercised, dilution to the interests of our stockholders
may occur. For the life of such warrants and options, the holders will have the opportunity to profit from a rise in the price of the
Common Stock with a resulting dilution in the interest of the other holders of Common Stock. The existence of such warrants and options
may adversely affect the market price of our Common Stock and the terms on which we can obtain additional financing, and the holders
of such warrants and options can be expected to exercise them at a time when we would, in all likelihood, be able to obtain additional
capital by an offering of our unissued capital stock on terms more favorable to us than those provided by such warrants and options.

31

***Tariffs
and trade tensions could have an adverse effect on economic conditions and financial markets, which may adversely affect the value of
our shares of Common Stock.***

U.S.
President Trump has announced a number of tariff-related policies that have resulted in increased tariffs and potentially will result
additional tariffs on products imported into the United States. There is no certainty regarding if and how long the existing increased
tariffs will remain in place or whether additional tariffs will be imposed and, if so, how long such tariffs will remain in place. These
actions have resulted, and may result, in fluctuations in financial markets, including with respect to interest rates, and retaliatory
tariffs or trade actions by other countries. If geopolitical tensions or uncertainty continue, they could result in a reduction of trade
volume, investment and technological exchange and other economic activities among major international economies, which in turn could
lead to a recession and further changes in interest rates. The application of increased tariffs or continuing uncertainty also may result
in a material increase to our costs of operation or otherwise limit our commercial opportunities. Any of these events could adversely
affect our business, results of operations and financial condition, which in turn may adversely affect the value of our shares of Common
Stock.

***Issuance
of Preferred Stock could result in the dilution of the value of the current stockholders’ Common Stock.***

Our
amended and restated certificate of incorporation allows us to issue Preferred Stock with voting, liquidation, and dividend rights
senior to those of the Common Stock without the approval of our stockholders. The issuance of Preferred Stock could have the effect
of making it more difficult for a third party to acquire a majority of the outstanding stock of our company and result in the dilution
of the value of the then current stockholders’ Common Stock.

 ***We
have granted the Note Investors a first-priority security interest in substantially all of our assets to secure our obligations under
the Senior Notes, and if we default on the Senior Notes, we could lose substantially all of our assets.***  

 In
connection with the Note Financing, we entered into the Security Agreement granting the Note Investors a first-priority security interest
in substantially all of our assets, including, without limitation, accounts receivable, inventory, equipment, intellectual property,
general intangibles and the proceeds thereof (collectively, the “Collateral”). The Security Agreement secures our obligations
under the Senior Notes and the other transaction documents related thereto.” Upon an event of default under the Senior Notes, including
our failure to pay principal or interest when due, a breach of any representation, warranty or covenant in the related transaction documents,
certain bankruptcy or insolvency events, or a material adverse change in our business or financial condition, the Note Investors may
exercise all remedies available under the Uniform Commercial Code and the Security Agreement, including taking possession of and disposing
of the Collateral. The Security Agreement also imposes ongoing covenants on us, including obligations to maintain the Collateral, to
refrain from granting additional liens without the Note Investors’ prior written consent, and to provide periodic financial information
to the Note Investors. If the Note Investors were to exercise such remedies, we could lose some or all of our assets, which would materially
impair our ability to continue operations and could result in a total loss of your investment in our Common Stock.

 ***The
Senior Notes are convertible into shares of our Common Stock at a fixed conversion price and the Note Warrants issued in connection with
the Note Financing will result in significant dilution to our existing stockholders and may adversely affect the trading price of our
Common Stock.***  

 The
Senior Notes issued in the Note Financing are convertible into shares of our Common Stock at a fixed Conversion Price of $8.00 per
share upon Direct Listing, subject to adjustment as set forth in the Senior Notes. Based $10,150,00 representing the maximum
offering amount pursuant to the Senior Notes (the “Maximum Offering Amount”) and giving effect to the 35.0% original
issue discount, the aggregate principal amount of the Senior Notes was approximately $15,615,385, which, at a Conversion Price of
$8.00 per share, will result in the issuance of approximately 1,951,923 shares of our Common Stock upon full conversion upon Direct
Listing, representing approximately 4.2% of our currently outstanding shares of Common Stock (based on 45,034,282 shares outstanding
as of the date of this prospectus). In addition, we issue Note Warrants to purchase approximately 507,500 shares of our Common Stock
in connection with the Maximum Offering Amount, each exercisable at $8.00 per share. These figures are illustrative only and do not
give effect to accrued interest or potential adjustments to the Conversion Price as set forth in the Senior Notes, which could
result in the issuance of a greater number of shares. The conversion of the Senior Notes and the exercise of the Note Warrants will
increase the number of shares of our Common Stock outstanding, which will dilute the ownership percentage and voting power of our
existing stockholders. Such dilution could be substantial. Furthermore, sales or the anticipated sale of a substantial number of
shares of Common Stock issuable upon conversion of the Senior Notes or exercise of the Note Warrants in the public market could
adversely affect the prevailing market price of our Common Stock. The Note Investors are not subject to any lock-up or other
contractual restriction on transfer and may sell the securities acquired in the Note Financing, including shares of Common Stock
issuable upon conversion or exercise thereof, immediately upon the listing of our Common Stock on a national securities exchange,
which could create significant selling pressure in the period immediately following listing. The Note Warrants contain a
full-ratchet anti-dilution provision that adjusts the exercise price downward in the event we issue equity securities at a price per
share below the then-current exercise price. This provision may amplify the dilutive effect in the event of future equity issuances
at lower prices, as the exercise price of the Note Warrants would be reduced, allowing the holders of Note Warrants to acquire
shares at a discount to the then-prevailing market price.

 ***The
Note Financing includes preemptive rights, board representation rights, most favored nations protections and other investor rights that
may limit our operational and financial flexibility and adversely affect our ability to raise additional capital.***  

 The
Note Purchase Agreement and the related transaction documents in connection with the Note Financing contain various covenants,
restrictions and investor protections that may limit our operational and financial flexibility. Among other things, the Note
Investors have been granted: (i) preemptive rights to participate pro rata in future issuances of securities, and individual
preemptive rights in favor of the Specified Holders (as defined in the Senior Notes) to maintain their respective percentage
ownership on a fully-diluted, as-converted basis, either of which may impede or delay our ability to raise additional capital on
favorable terms, particularly if the Note Investors or the Specified Holders elect to exercise such rights; (ii) a most favored
nations provision that requires us to offer the Note Investors terms at least as favorable as those offered to any subsequent
investor, which may limit our flexibility to negotiate different or more favorable terms with future capital providers; (iii) the
right of Bert Basolis to serve as a member of our Board of Directors for a term of five (5) years, and the right of Bradford Johnson
to attend all meetings of our Board of Directors in a non-voting observer capacity, each of which will afford the Note Investors
direct influence over our corporate governance and strategic direction; (iv) tag-along rights entitling the Note Investors to
participate in certain sales of Common Stock by stockholders holding at least five percent (5%) of our outstanding Common Stock,
which may complicate or deter potential block trades or change-of-control transactions; and (v) drag-along rights permitting
stockholders holding a majority of our outstanding Common Stock, together with the approval of our Board of Directors, to require
the Note Investors to participate in a bona fide change-of-control transaction. In addition, the Note Investors are exempt from any
lock-up provisions and may sell the securities acquired in the Note Financing immediately upon the listing of our Common Stock on a
national securities exchange, which could create additional selling pressure and adversely affect the trading price of our Common
Stock. Our obligation to comply with these provisions may constrain our ability to raise additional capital on favorable terms,
enter into strategic transactions, pursue acquisitions, or otherwise manage our business in the manner that our management deems
most advantageous, any of which could have a material adverse effect on our business, financial condition and results of
operations.

 ***The
Senior Notes were issued with a substantial original issue discount of 35.0%, and we will be required to make periodic cash interest
payments on the Senior Notes, each of which may place significant strain on our financial resources and liquidity.***

 The
Senior Notes were issued at an original issue discount of 35.0%, such that we will receive only $0.65 in cash proceeds for each
$1.00 of principal indebtedness incurred. As a result, the aggregate principal amount of the Senior Notes issued in connection
with the Maximum Offering Amount was approximately $15,615,385, while the aggregate cash proceeds to us will be approximately $10,150,000.
Our repayment obligations at maturity, or the number of shares of Common Stock issuable upon conversion of the Senior Notes, will be
based on the full principal amount of the Senior Notes, not the cash proceeds received. In addition, the Senior Notes bear interest at
a rate of 6.0% per annum, payable in cash, which will require us to make periodic cash interest payments throughout the twelve-month
term of the Senior Notes. If we do not generate sufficient cash flow from operations to satisfy these interest payment obligations, we
may need to use proceeds from other capital sources or seek additional financing, which may not be available on favorable terms or at
all. Failure to make any required payment of principal or interest when due would constitute an event of default under the Senior Notes,
which could trigger the remedies described above, including enforcement of the Security Agreement against substantially all of our assets.
The combination of the substantial original issue discount and the cash interest obligation may place significant strain on our financial
resources and liquidity position, and there can be no assurance that we will have adequate resources to satisfy our obligations under
the Senior Notes when due.

***Failure
to achieve and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse
effect on our ability to produce accurate financial statements and on our stock price.***

We
will be required, pursuant to Section 404 of the Sarbanes-Oxley Act, to furnish in our future annual reports a report by management on
the effectiveness of our internal control over financial reporting. Our independent registered public accounting firm will also be required
to attest to the effectiveness of our internal control over financial reporting once we cease to qualify as an emerging growth company.
To comply with these requirements, we will need to document and test our internal control procedures, which will require significant
expenditures of time and resources.

If
we identify material weaknesses in our internal control over financial reporting, are unable to comply with the requirements of Section
404 in a timely manner, or cannot assert that our internal controls are effective, we could be subject to sanctions or investigations
by regulatory authorities. Any such failure could result in material misstatements in our financial statements, a loss of investor confidence
in the reliability of our reported financial information, and a decline in the market price of our Common Stock.

32

***Material
weaknesses in our internal control over financial reporting may cause us to fail to timely and accurately report our financial results
or result in a material misstatement of our financial statements.***

In
connection with the audits of our 2025 and 2024 financial statements, we and our independent registered public accounting
firm identified control deficiencies in the design and operation of our internal control over financial reporting that constituted a
material weakness. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting
such that there is a reasonable possibility that a material misstatement of our financial statements will not be prevented or detected
on a timely basis. Our material weakness related to the following control deficiencies:

- The Company does not maintain effective controls over the preparation, review and timely completion of period-end financial statements,
which is inclusive of (i) a lack of consistent and proper application of processes and procedures, (ii) sufficiency of resources with
an appropriate level of technical accounting and reporting experience, (iii) a lack of review and supervision, (iv) a lack of clearly
defined control processes, roles and segregation of duties within finance and accounting functions, and (v) a lack of sufficient inventory
counting procedures.

The
deficiencies described above, if not remediated, could result in a misstatement of one or more account balances or disclosures in our
annual or interim financial statements that would not be prevented or detected, and, accordingly, we determined that these control deficiencies
constitute a material weakness.

***We
do not expect to pay any dividends for the foreseeable future.***

We
do not anticipate paying any dividends to our stockholders for the foreseeable future. Accordingly, stockholders may have to sell some
or all of their Common Stock to generate cash flow from their investment. Stockholders may not receive a gain on their investment when
they sell our Common Stock and may lose some or all of the amount of their investment. Any determination to pay dividends in the future
will be made at the discretion of our board of directors and will depend on our results of operations, financial conditions, contractual
restrictions, restrictions imposed by applicable law, and other factors our board of directors deems relevant.

***Our
failure to meet the continued listing requirements of Nasdaq could result in a delisting of our common stock.***

We
cannot assure you that our securities will continue to be listed on Nasdaq even if our securities are listed on Nasdaq. Following the
listing of our common stock on Nasdaq, in order to maintain our listing, we will be required to comply with certain Nasdaq continuing
listing rules, including those regarding minimum stockholders’ equity, minimum share price, minimum market value of publicly held
shares, corporate governance and various additional requirements. If we are unable to satisfy Nasdaq criteria for maintaining our listing,
our securities could be subject to delisting. Such a delisting would likely have a negative effect on the price of our common stock and
would impair your ability to sell or purchase our common stock when you wish to do so. In the event of a delisting, we can provide no
assurance that any action taken by us to restore compliance with listing requirements would allow our common stock to become listed again,
stabilize the market price or improve the liquidity of our common stock, prevent our common stock from dropping below the Nasdaq minimum
bid price requirement or prevent future non-compliance with Nasdaq’s listing requirements.

***An
investment in our company may involve tax implications, and you are encouraged to consult your own advisors as neither we nor any related
party is offering any tax assurances or guidance on our company or your investment.***

An
investment in our company generally involves complex federal, state and local income tax considerations. Neither the Internal Revenue
Service nor any state or local taxing authority has reviewed the transactions described herein and may take different positions than
the ones contemplated by management. You are strongly urged to consult your own tax and other advisors prior to investing, as neither
we nor any of our officers, directors or related parties is offering you tax or similar advice, nor are any such persons making any representations
and warrants regarding such matters.

***Securities
law claims under Sections 11 and* 12 of the Securities Act *may be more difficult for investors to pursue in connection
with this direct listing than in a traditional underwritten offering, which could limit remedies available to investors and affect the
outcome of securities litigation.***

Because
this offering is being conducted through a direct listing, rather than a traditional underwritten initial public offering, investors
may face additional challenges in bringing securities liability claims under Sections 11 and 12 of the Securities
Act. In a traditional underwritten offering, plaintiffs generally can trace their purchases to the shares registered under the applicable
registration statement. In a direct listing, however, both registered and unregistered shares may be available for trading immediately
upon listing, which can make tracing significantly more difficult. Courts, including the U.S. Supreme Court in *Slack Technologies,
LLC v. Pirani*, 598 U.S. 579 (2023), and the Ninth Circuit in *Pirani v. Slack Technologies, Inc*., 127 F.4th 1183 (9th Cir. 2025), have addressed whether plaintiffs must trace their purchases to shares registered under the registration
statement to establish standing under Section 11 or Section 12 of the Securities Act. These decisions highlight uncertainty and potential
limitations on investors’ ability to pursue claims under the Securities Act in the context of a Direct Listing. As a
result, investors in our common stock may have more limited remedies available in securities litigation compared to investors in companies
that complete a traditional underwritten initial public offering. This uncertainty could affect the willingness of investors to purchase
our shares and could increase the costs, risks, and outcomes of potential securities litigation

33

**CAUTIONARY

**CAPITALIZATION**

The
following table sets forth our cash and capitalization as of December 31, 2025.

You
should read this table together with “*Management’s Discussion and Analysis of Financial Condition and Results of Operations*”
and our audited financial statements and related notes thereto
included elsewhere in this prospectus.

|  |  |
| --- | --- |
| Cash | $2,477,122 |
| Total long-term liabilities | 1,985,031 |
| Stockholders’ Equity: |  |
| Preferred stock, $0.0001 par value, 1,000,000 shares authorized, no shares issued or outstanding as of December 31, 2025 | - |
| Common stock, $0.0001 par value, 500,000,000 shares authorized, 44,500,111 shares issued and outstanding as of December 31, 2025 | 4,450 |
| Additional paid-in capital | 41,643,153 |
| Accumulated deficit | (35,243,123) |
| Total stockholders’ equity | 6,404,480 |
| Total capitalization | $8,389,511 |

The
number of shares of our common stock outstanding as of December 31, 2025 excludes:

- 16,223,996  shares of common stock issuable upon exercise of outstanding warrants with a weighted average exercise price of $1.06 per  share; and
- 15,113,046  shares of common stock issuable upon exercise of outstanding options with a weighted average exercise price of $1.07 per share.

36

**MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION  

AND RESULTS OF OPERATIONS**

*You
should read the following discussion and analysis of our financial condition and results of operations together with the section titled
“Summary of Financial Information” and our audited financial statements and related
notes, each included elsewhere in this prospectus. Data as of and for the years ended December 31, 2025 and 2024 have been
derived from our audited financial statements appearing at the end of this prospectus. Results for any interim period should not be construed
as an inference of what our results would be for any full fiscal year or future period. This discussion and other parts of this prospectus

in the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” included elsewhere
in this prospectus.*

**Overview**

The
Company was originally formed as a limited liability company named First Breach, LLC under the laws of the State of Maryland on April
9, 2018 and subsequently converted to a corporation named First Breach, Inc. incorporated under the laws of the State of Delaware on
October 22, 2021.

The
Company is a match-grade ammunition component manufacturer offering brass cups, brass casings, full-metal-jacket projectiles, lead projectile
cores, and lead wire. Equipped with numerous quality control checks, the Company offers match-grade, SAAMI-specification products. Customers
will have the ability to order custom head-stamped casings as well as a wide range of grain-size options for projectiles.

The
Company is dedicated to building upon its industry experience while emphasizing placing integrity first along with competitive pricing,
building customer relations, and utilizing quality raw materials.

**Factors
and Trends Affecting Our Business and Results of Operations**

The
Company’s operating results, financial condition, and future growth prospects are influenced by a number of macroeconomic, industry-specific,
and geopolitical factors. Management continuously monitors the following trends, each of which may positively or negatively impact the
Company’s performance:

*Inflation
and Cost Pressures in Manufacturing, Talent, and Raw Materials*

The
Company continues to experience elevated inflationary pressures affecting manufacturing inputs, labor, and raw materials. Wage inflation,
competition for skilled personnel, and rising component and material costs have increased the overall cost structure. These pressures
may require the Company to adjust pricing, modify sourcing strategies, or improve operational efficiencies to maintain gross margins.

37

*Global
Supply-Chain Vulnerabilities for Raw Materials*

Worldwide
supply-chain disruptions—including transportation delays, constrained logistics capacity, and limited availability of key raw materials—have
created volatility in lead times and procurement costs. Unpredictable shortages, reliance on certain international suppliers, and fluctuations
in global trade conditions may adversely affect production schedules and inventory management.

*Domestic
Political and Geopolitical Risks Across Jurisdictions*

The
Company operates in an environment influenced by evolving domestic regulatory policies, political uncertainty, and geopolitical tensions.
Changes in trade restrictions, defense-related policies, foreign investment rules, sanctions, or interstate regulatory frameworks may
affect market access, cost structures, or demand for the Company’s products.

*Funding
Constraints and Need for Additional Capital*

The
Company’s growth strategy and operational expansion require continued access to capital. Prevailing market conditions—such
as higher interest rates, limited availability of venture or institutional financing, or volatility in the equity markets—may impact
the Company’s ability to raise funds on acceptable terms or within desired timelines. These constraints may affect investment in
production, research and development, or strategic initiatives.

*Inflationary
Cost Uncertainty Affecting Pricing and Margins*

Persistent
cost volatility has created uncertainty in forecasting product margins. Rapid or unpredictable changes in input costs may limit the Company’s
ability to adjust pricing in a timely manner or could require price increases that may not be fully absorbed by customers. Such conditions
may negatively affect gross margins, profitability, and operating cash flows.

*Demand
Decline from Potential Political or Economic Factors*

The
Company’s revenue trajectory is influenced by broader economic conditions and political developments. Economic downturns, shifts
in government spending priorities, changes in procurement processes, or reductions in customer budgets may soften demand. Additionally,
political instability or regulatory changes in certain jurisdictions may slow customer adoption or delay purchasing cycles.

**Components
of Results of Operations**

***Revenue***

The
Company derives its revenue primarily from the production and sale of ammunition, which includes shipping income. Revenue is recognized
when the Company satisfies its performance obligations to its customers, which generally occurs at a set delivery of the deliverables
as specified in its customer contracts, in an amount that reflects the consideration the Company expects to be entitled to in exchange
for those goods or services. The Company reports any tax assessed by a governmental authority that the Company collects from its customers
that is both imposed on and concurrent with its revenue-producing activities (such as sales, use, value-added and excise taxes) on a
net basis (meaning the Company does not recognize these taxes in either its revenues or its costs and expenses).

38

***Operating
Expenses***

*Cost
of revenues* includes all finished material, supplies and materials, depreciation of equipment, equipment rental, and freight.

*Depreciation
and amortization expenses* include depreciation of property and equipment and amortization of leasehold improvements. Depreciation
and amortization is based on the estimated useful lives of the assets using the straight-line method.

*Selling,
general and administrative expenses* primarily consist of costs associated with administrative staff salaries, facilities, utilities,
insurance, marketing & advertising, stock-based compensation, legal fees and other office expenses related to the Company’s
business functions.

***Other
Expenses, Net***

Other
expenses, net consists primarily of interest income, interest expenses, loss on sale of equipment and a loss on the liquidation
of raw materials outside the normal course of operations, and other miscellaneous expenses.

**Results
of Operations**

*Comparison
of the Years Ended December 31, 2025 and 2024*

The
following table sets forth our summarized financial information for the periods indicated:

| Line item | Years Ended December 31, |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | 2025 |  |  | % Change |  |  |
| Revenues | $ | $$384,129 | $773,870 | (389,741) | (50.36 | )% |
| Cost of revenues |  | 1,761,368 | 2,235,004 | (473,636) | (21.19 | )% |
| Net loss associated with liquidation of raw materials |  | 684,960 | 943,278 | (258,318) | (27.39 | )% |
| Gross margin |  | (2,062,199) | (2,404,412) | 342,213 | 14.23% | % |
| Operating expenses: |  |  |  |  |  |  |
| Selling, general and administrative expense |  | 7,926,714 | 2,836,942 | 5,089,772 | 179.41% | % |
| Total operating expenses |  | 7,926,714 | 2,836,942 | 5,089,772 | 179.41% | % |
| Loss from operations |  | (9,988,913) | (5,241,354) | (4,747,559) | 90.58% | % |
| Other expense, net: |  |  |  |  |  |  |
| Interest expense, net |  | (1,866,438) | (791,730) | (1,074,708) | 135.74% | % |
| Loss on extinguishment of debt |  | (2,017,314) | - | (2,017,314) | 100.00% | % |
| Loss on sale of assets |  | (1,906) | - | (1,906) | 100.00% | % |
| Other income |  | 93,500 | - | 93,500 | 100.00% | % |
| Other expense |  | (41,050) | (41,050) | - | 0.00% | % |
| Total other expense, net |  | (3,833,208) | (832,780) | (3,000,428) | 360.29% | % |
| Net loss | $ | $$(13,822,121) | $(6,074,134) | (7,747,987) | 127.56% | % |

39

*Revenue*

Revenue
decreased by $389,741, or 50.36%, for the year ended December 31, 2025, compared to the year ended December
31, 2024. The decrease in revenue was primarily attributable to a strategic shift in the Company’s core product
offerings and the implementation of new inspection equipment during 2025.

*Cost
of Revenue*

Cost
of revenue decreased by $473,636, or 21.19%, for the year ended December 31, 2025, compared to the prior
year, partially attributable with the decline in revenue. In addition, higher fixed manufacturing costs and lower production volumes
led to under-absorption of overhead, which negatively affected gross margin.

*Net
Loss associated with Liquidation of Raw Materials*

The
net loss associated with liquidation of raw materials for the year ended December 31, 2025 and 2024 was $684,960 and $943,278, respectively,
attributable to the liquidation of certain raw material inventory outside the normal course of operations to support operating cash flow
and working capital management, which resulted in proceeds below the inventory’s carrying value. The Company does not anticipate
further liquidation of raw materials.

*Operating
Expenses*

Selling,
general and administrative expenses increased by $5,089,772 or 179.41%, for the year ended December 31, 2025,
compared to the year ended December 31, 2024. The primary increase in selling, general and administrative expenses was
primarily attributable to non-cash stock based compensation of $4,581,625, an increase in professional fees associated
with the public listing of $430,708 and increase in supplies and materials of $157,042, offset by a reduction in salary and benefits
of $154,645.

*Total* *Other Expenses, Net*

Total
other expenses, net increased by $3,000,428 or 360.29%, for the year ended December 31, 2025, compared to
the year ended December 31, 2024. The increase in other expenses, net was primarily attributable to increased interest expense
of $1,078,360 and a loss on extinguishment of debt of $2,017,314.

*Net
Loss*

Net
loss increased by $7,747,987 or 127.56%, for the year ended December 31, 2025, compared to the year ended December
31, 2024, due to the fluctuations described above under “Revenue,” “Operating Expenses,” and “Other
Expenses, Net.”

**Liquidity
and Capital Resources**

Y*ears
Ended December 31, 2025, and 2024*

As
of December 31, 2025 and 2024, our cash was $2,477,122 and $434,613, respectively. The following table shows a summary
of our cash flows for the periods presented:

|  |  |  |  |
| --- | --- | --- | --- |
| Net cash used in operating activities | $(3,483,325) | (1,590,431 | $119.02)% |
| Net cash used in investing activities | (10,369) | (190,390 | (94.55 |
| Net cash provided by financing activities | 5,536,203 | 2,166,433 | 155.54% |
| Net increase in cash | 2,042,509 | 385,612 | 429.68% |
| Cash, beginning of year | 434,613 | 49,001 | 786.95% |
| Cash, end of year | 2,477,122 | 434,613 | 469.96% |

40

*Operating
Activities*

Net
cash used in operating activities increased by $1,892,894, or 119.02%, to $3,483,325 for the year ended December
31, 2025 compared to the net cash used in operating activities of $1,590,431 for the year ended December 31, 2024.
Cash used in operating activities for the year ended December 31, 2025 was primarily attributable to a net loss of $13,822,121,
non-cash stock-based compensation of $4,581,625, an addition of non-cash deprecation adjustment of $1,332,393, debt discounts
of $1,038,384, non-cash PIK interest of $344,151 and loss from extinguishment of debt of $2,017,314. The remaining change was
primarily attributed to net positive cash from changes in operating assets and liabilities of $1,026,600.

Cash
used in operating activities for the year ended December 31, 2024 was primarily attributable to a net loss of $6,074,134
and the addition of non-cash deprecation adjustment of $1,327,482 and debt discounts of $136,422. The remaining change
was primarily attributed to net positive cash from changes in operating assets and liabilities of $2,919,254.

*Investing
Activities*

Net
cash used in investing activities decreased by $180,021, or 94.55%, to $10,369 for the year ended December 31, 2025
compared to $190,390 in net cash used in investing activities for the year ended December 31, 2024. The net cash used in
investing activities for the year ended December 31, 2025 and 2024 consisted of capital expenditures of $88,369 and $190,390,
respectively and proceeds from sales of assets of $78,000.

*Financing
Activities*

Net
cash provided by financing activities increased by $3,369,770, or 155.54%, to $5,536,203 for the year ended
December 31, 2025 compared to the net cash provided by financing activities of $2,166,434 for the year ended December 31,
2024.

The net cash provided by financing activities
for the year ended December 31, 2025 consisted of proceeds from convertible notes of $2,090,000, proceeds from equity offerings of $3,225,500,
proceeds from a note payable related party of $50,000 and proceeds from issuance of common stock upon exercise of warrants of $887,500,
offset by net payments on notes payable of $4,003 and principal payments on the financing leases of $712,794.

The
net cash provided by financing activities for the year ended December 31, 2024 consisted of proceeds from convertible notes of $2,000,000
and proceeds from equity offerings of $791,000 offset by stock issuance costs of $56,000 and principal payments on the financing leases
of $568,567.

At
December 31, 2025, current assets totaled $3,493,562 and current liabilities totaled $4,631,271 as compared to
current assets totaling $2,354,941 and current liabilities totaling $3,957,843 at December 31, 2024. As a
result, we had negative working capital of $1,137,709 at December 31, 2025, compared to a negative working
capital of $1,602,902 at December 31, 2024. The decrease in the working capital as of December 31, 2025 is
primarily attributable to the loss from operations of $9,988,913, reduction of inventory of $927,623 and increase in
accounts payable and accrued liabilities of $262,459 and current maturities of convertible notes payable of
$284,146.

41

We
have never declared or paid any cash dividends on our common stock. For the foreseeable future, we anticipate that all available funds
and any earnings generated in our business will be used to finance the growth of our business and will not be paid out as dividends to
our shareholders. Any future determination related to our dividend policy will be made at the discretion of our Board of Directors and
will depend upon, among other factors, our results of operations, financial condition, capital requirements, contractual restrictions,
business prospects and other factors our Board of Directors may deem relevant.

Management
is exploring new product channel sales in distributors and continuing e-commerce sales of produce for consumers. The Company has increased
its focus on sales and developing a sales pipeline for potential customers. This customer base expansion will enable us to provide financial
stability for the foreseeable future, expand our current processes, and position us for long-term shareholder value creation. Additionally,
the Company continues to evaluate strategic initiatives (e.g., acquisitions) and additional capital raises through debt or equity may
be necessary to achieve these objectives. See the “Business” section appearing elsewhere in this prospectus for our joint
venture with First Forge Technologies Inc.

The
Company’s management concluded that its recurring losses from operations and the fact that it has not generated significant revenue
or positive cash flows from operations raise substantial doubt about its ability to continue as a going concern for the next 12 months
from the date of filing.

The
Company expects to continue to generate operating losses and negative cash flow from operations for the foreseeable future. Our ability
to continue to operate as a going concern in the long term is dependent upon our ability to manage and grow our current products and
to ultimately achieve profitable operations.

In
this regard, management intends to raise up to $10.0 million of convertible preferred equity financing prior to the effectiveness of
the Company’s proposed listing. Management believes that the successful completion of this financing would provide the Company
with sufficient liquidity to fund operations and meet its obligations as they become due and to continue as a going concern.

Management may consider various options to raise capital to fund potential acquisitions
through equity or debt offerings. There can be no assurances, however, that management will be able to obtain sufficient additional funds,
if needed, or that such funds, if available, will be obtained on terms satisfactory to us. The financial statements do not include any
adjustments relating to the recoverability and classification of recorded assets and liabilities that might be necessary should we be
unable to continue as a going concern.

Additionally,
it is reasonably possible that estimates made in the financial statements have been, or will be, materially and adversely impacted in
the near term as a result of these conditions, including the recoverability of long-lived assets.

**Critical
Accounting Policies and Estimates**

***Equity
Classified Warrants***

The
Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s
specific terms and applicable authoritative guidance in ASC 480 - *Distinguishing Liabilities from Equity* (“ASC 480”)
and ASC 815 - *Derivatives and Hedging* (“ASC 815”). The Company’s assessment considers whether the warrants are
freestanding financial instruments pursuant to ASC 480, whether they meet the definition of a liability pursuant to ASC 480, and whether
the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the
Company’s own common stock and whether the warrant holders could potentially require “net cash settlement” in a circumstance
outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of
professional judgment, is conducted at the time of warrant issuance.

42

**Indebtedness**

The
Company did not have any bank debt or revolving credit facilities for any of the periods presented. However, during 2024 and 2025,
the Company issued convertible promissory notes to investors in private placements and entered into financing lease arrangements.

As
of March 20, 2026, the Company had outstanding convertible promissory notes with an aggregate principal balance,
including original issue discount (“OID”) and accrued payment-in-kind (“PIK”) interest, of $612,900.
The notes bear interest at rates of 10% per annum, which accrues as PIK interest, is not payable in cash, and is added to the
outstanding principal balance of the notes. The notes have stated maturity dates ranging from November 2026 to June
2027.

The
notes are unsecured and, subject to certain conditions, are convertible into shares of the Company’s common stock upon the occurrence
of a qualified financing or a Liquidity Event, defined as the Company’s consummation of a direct listing of its shares
on a public marketplace based on a Company valuation of not more than $60.0 million. Upon conversion, the aggregate principal amount,
including accrued PIK interest, converts at a price equal to a 15% discount to the price paid by investors.

The
notes contain customary events of default, including failure to pay principal or interest when due and certain insolvency events, which
could result in acceleration of amounts due.

The
Company expects that the outstanding convertible notes will convert into equity upon the closing of this offering; however, there can
be no assurance that such conversion will occur.

On
December 15, 2025, the Company entered into agreements with certain investors to settle and extinguish promissory notes that were contractually
convertible only upon the occurrence of an initial public offering, which had not occurred as of the settlement date. Accordingly, the
transaction was accounted for as an extinguishment of debt in accordance with ASC 470-50.

The
promissory notes had a gross principal balance of $4,029,250 and accrued payment-in-kind (“PIK”) interest of $340,998, resulting
in a total stated balance of $4,370,248. The carrying amount of the notes at the settlement date was $3,727,678, net of unamortized original
issue discount of $189,021 and unamortized warrant debt discount of $453,549.

Pursuant
to the settlement agreements, the Company issued shares of its common stock at a negotiated conversion price of $2.00 per share. In addition,
as part of the overall negotiated settlement arrangement, the investors were granted the right to purchase 2,195,000 shares of the Company’s
common stock at $1.00 per share. Management concluded that the equity issuance at $2.00 per share and the $1.00 per share purchase right
were negotiated contemporaneously and constituted a single integrated package transaction.

In
accordance with ASC 470-50-40-2, the Company measured the total consideration transferred based on the fair value of the equity instruments
issued at the settlement date, including the fair value attributable to the in-the-money purchase right. The fair value of the Company’s
common stock on the settlement date was $2.00 per share.

The
excess of the fair value of the total consideration transferred over the carrying amount of the extinguished debt resulted in a loss
on extinguishment of debt of $2,017,314, which is included in other expense, net in the accompanying statements of operations
for the year ended December 31, 2025.

In
addition, the Company has outstanding finance lease arrangements primarily related to equipment. As of April 30, 2026, the Company
had outstanding finance lease obligations with an aggregate present value of approximately $1,532,000, with remaining lease terms
ranging from 1.2 to 1. years and a weighted-average interest rate of 22.66%. The finance leases are secured by the underlying
leased assets.

**Contractual
Obligations and Commitments**

From
time to time, we may become involved in various lawsuits and legal proceedings that arise in the ordinary course of business. The Company
is not a party to any litigation or proceeding, including any governmental proceeding, which our management believes could result in
any judgments or fines against us that would have a material adverse effect on our financial position, liquidity or results of future
operations.

43

**Off-Balance
Sheet Transactions**

We
did not have during the periods presented, and we do not currently have, any off-balance sheet financing arrangements or any relationships
with unconsolidated entities or financial partnerships, such as structured finance or special purpose entities, that were established
for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

**Critical
Accounting Policies and Estimates**

Our
financial statements and the related notes thereto included in this prospectus are prepared in accordance with United States generally
accepted accounting principles. The preparation of financial statements also requires us to make certain estimates and assumptions that
affect the reported amounts of assets, liabilities, revenue, costs and expenses and related disclosures. These estimates are developed
based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results
could differ significantly from the estimates made by management. To the extent that there are differences between our estimates and
actual results, our future financial statement presentation, financial condition, results of operation, and cash flows will be affected.
We believe that the accounting policies described below involve a greater degree of judgment and complexity. Accordingly, these are the
estimates we believe are most critical to aid in fully understanding and evaluating our financial condition, results of operations and
future performance. We have described our significant accounting policies within Note 2 to our audited financial statements.

**Stock-Based
Compensation**

The
Company accounts for stock-based compensation in accordance with ASC 718, *Compensation—Stock Compensation.* The Company measures
all stock-based awards granted to employees, directors and non-employee consultants based on the fair value on the date of the grant
and recognizes compensation expense for those awards over the requisite service period, which is generally the vesting period of the
respective award.

The
fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The Company historically
has been a private company and lacks company-specific historical information for its stock. Determining the appropriate fair value of
stock-based awards requires the input of subjective assumptions. The assumptions used in calculating the fair value of stock-based awards
represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. As
a result, if factors change and management uses different assumptions, stock-based compensation expenses could be materially different
for future awards.

**Emerging
Growth Company Accounting Election**

Section
102(b)(1) of the Jumpstart Our Business Startups Act (the “JOBS Act”) exempts emerging growth companies from being required
to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial
accounting standards. The JOBS Act provides that a company can elect not to take advantage of the extended transition period and to comply
with the requirements that apply to non-emerging growth companies, and any such election to not take advantage of the extended transition
period is irrevocable. Following the listing of our common stock on Nasdaq, we expect to be an emerging growth company and will have
the benefit of the extended transition period. We intend to take advantage of the benefits of this extended transition period.

44

**Emerging
Growth Company and Smaller Reporting Company Status**

As
an “emerging growth company,” under the JOBS Act, we are permitted to take advantage of an extended transition period for
complying with new or revised accounting standards. We may elect to avail ourselves of such extended transition period, which means that
when a standard is issued or revised and it has different application dates for public or private companies, we can adopt the new or
revised standard at the time private companies adopt the new or revised standard and may do so until such time that we either irrevocably
elect to opt out of such extended transition period or no longer qualify as an emerging growth company. We may choose to adopt any new
or revised accounting standards early whenever such early adoption is permitted for private companies.

Subject
to certain conditions set forth in the JOBS Act, if, as an emerging growth company, we choose to rely on available exemptions we may
not be required to, among other things, (i) provide an auditor’s attestation report on our system of internal controls over financial
reporting pursuant to Section 404(b) of the Sarbanes Oxley Act, (ii) provide all of the compensation disclosure that may be required
of non-emerging growth public companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act, (iii) comply with any requirement
that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s
report providing additional information about the audit and the financial statements (auditor discussion and analysis), or (iv) disclose
certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of
the CEO’s compensation to median employee compensation. We will remain an emerging growth company until the earliest to occur of
the following: (i) the last day of the fiscal year following the fifth anniversary of the date of its first sale of common equity securities
pursuant to an effective registration statement; (ii) the last day of the fiscal year in which our total annual gross revenue is equal
to or more than $1.235 billion; (iii) the date on which we have issued more than $1.0 billion in nonconvertible debt during the previous
three years; or (iv) the date on which we are deemed to be a “large accelerated filer,” as defined in Rule 12b-2 under the
Exchange Act.

We
are also a “smaller reporting company,” as defined in the Exchange Act. We may continue to be a smaller reporting company
even after we are no longer an emerging growth company. We may take advantage of certain of the scaled disclosures available to smaller
reporting companies and will be permitted to do so for so long as (i) our voting and non-voting common stock held by non-affiliates is
less than $250.0 million measured on the last business day of our second fiscal quarter, or (ii) our annual revenue is less than $100.0
million during the most recently completed fiscal year and our voting and non-voting common stock held by non-affiliates is less than
$700.0 million measured on the last business day of our second fiscal quarter.

***Changes
in and Disagreements with Accountants on Accounting and Financial Disclosure***

None.

45

**Accounting
Pronouncements**

***Recently
Issued and Adopted Pronouncements***

In
November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. We are also a “smaller reporting
company,” as defined in the Exchange Act. We may continue to be a smaller reporting company even after we are no longer an
emerging growth company. We may take advantage of certain of the scaled disclosures available to smaller reporting companies and
will be permitted to do so for so long as (i) our voting and non-voting common stock held by non-affiliates is less than $250.0
million measured on the last business day of our second fiscal quarter, or (ii) our annual revenue is less than $100.0 million
during the most recently completed fiscal year and our voting and non-voting common stock held by non-affiliates is less than $700.0
million measured on the last business day of our second fiscal quarter. The amendments also require disclosure of all annual segment
profit or loss and asset disclosures in interim periods and provide expanded disclosure requirements for entities with a single
reportable segment.

ASU
2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024. The Company
adopted ASU 2023-07 for its year ended December 31, 2024, in accordance with the required effective date for non-accelerated filers.
The adoption did not impact the Company’s financial position, results of operations, or cash flows; however, it resulted in enhanced
segment disclosures in the notes to the financial statements in accordance with ASC 280, *Segment Reporting*. These enhancements
include the identification of significant segment expense categories, disclosure of the measures of segment profit or loss used by the
Chief Operating Decision Maker (“CODM”), related reconciliations to the most comparable GAAP measure, and expanded disclosures
for entities with a single reportable segment.

In
December 2023, the FASB issued ASU 2023-09*, Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. The ASU requires
that an entity disclose specific categories in the effective tax rate reconciliation as well as reconciling items that meet a quantitative
threshold. Further, the ASU requires additional disclosures on income tax expense and taxes paid, net of refunds received, by jurisdiction.
The new standard is effective for annual periods beginning after December 15, 2024 on a prospective basis with the option to apply it
retrospectively. Early adoption is permitted. The Company adopted ASC 2023-09 for the year ended December 31, 2025, and applied
the new disclosure requirements prospectively to the current annual period. Prior period disclosures have not been adjusted to reflect
the new disclosure requirements. For additional information, see Note 19 “Income Taxes” to the financial statements.

***Recently
Issued but Not Yet Adopted Accounting Pronouncements***

In
November 2024, the FASB issued ASU 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures* (Subtopic 220-40): Disaggregation of Income Statement Expenses to expand the disclosure requirements for certain costs and expenses.
In January 2025, FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures
(Subtopic 220-40): Clarifying the Effective Date, which clarified the effective date of ASU 2024-03 as periods beginning after December
15, 2026 for annual reporting, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early
adoption is permitted. The Company is evaluating the potential impact that the adoption of these ASUs will have on its financial statements.

In
November 2024, the FASB issued ASU 2024-04, *Debt—Debt with Conversion and Other Options* (Subtopic 470-20): Induced Conversions
of Convertible Debt Instruments to improve the relevance and consistency in application of the induced conversion guidance in Subtopic
470-20, Debt - Debt with Conversion and Other Options. The amendments in this ASU are effective for all entities for annual reporting
periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted
as of the beginning of the annual reporting period for all entities that have adopted the amendments in Update 2020-06, Debt—Debt
with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic
815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The Company is evaluating the potential
impact that the adoption of this ASU will have on its financial statements.

46

“Shares Eligible for Future Sale” for further information regarding sales of such “restricted” securities if
not sold pursuant to this prospectus. The Registered Stockholders may, or may not, elect to sell their common stock through transactions
on Nasdaq at prevailing market prices. As such, the Company will have no input if and when any Registered Stockholder may, or may not,
elect to sell their common stock or the prices at which any such sales may occur. See “*Plan of Distribution*.”

Information
concerning the Registered Stockholders may change from time to time and any changed information will be set forth in supplements to this
prospectus, if and when necessary. Because the Registered Stockholders may sell all, some, or none of the common stock covered by this
prospectus, we cannot determine the number of common stock that will be sold by the Registered Stockholders, or the amount or percentage
of shares of common stock that will be held by the Registered Stockholders upon consummation of any particular sale. In addition, the
Registered Stockholders listed in the table below may have sold, transferred, or otherwise disposed of, or may sell, transfer, or otherwise
dispose of, at any time and from time to time, our common stock in transactions exempt from the registration requirements of the Securities
Act, after the date on which they provided the information set forth in the table below.

The
Registered Stockholders are not entitled to any registration rights with respect to the common stock. However, we currently intend to
use our reasonable efforts to keep the registration statement effective for a period of 90 days after the effectiveness of the registration
statement. We are not party to any arrangement with any Registered Stockholder or any broker-dealer with respect to sales of common stock
by the Registered Stockholders. See “Plan of Distribution.”

63

In
accordance with the rules of the SEC, beneficial ownership includes voting or investment power with respect to securities and includes
the common stock issuable pursuant to options, warrants, and other securities that are exercisable or convertible within 60 days. Shares
of common stock issuable pursuant to options, warrants, and other securities that are exercisable or convertible within 60 days are deemed
outstanding for computing the percentage of the class beneficially owned by the person holding such securities but are not deemed outstanding
for computing the percentage of the class beneficially owned by any other person. The percentage of beneficial ownership for the following
table is based on 45,034,282 shares of common stock outstanding, as of April 28, 2026.

The
Registered Stockholders do not have, nor have they within the past three years had, any position, office, or other material relationship
with us, other than as disclosed in this prospectus. See “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” for further information regarding the Registered Stockholders. The business address of our executive officers,
directors, and director nominees is 18450 Showalter Rd., Hagerstown, MD 21742, unless otherwise indicated below.

| Name and address of Beneficial Owner |  |  |  |
| --- | --- | --- | --- |
| Named Executive Officers, Directors, and Director Nominees: |  |  |  |
| Jeffrey Low | 26,940,341 | 59.8 | [●] |
| Jordan Low | 7,124,705 | 15.8 | [●] |
| Richard Leimbach | 100 | * | - |
| Andrew Pearlman | 100 | * | - |
| Ori Schlank | - | - | - |
| Robert Brandt | 34,247 | * | [●] |
| David Peterson | 150,000 | * | [●] |
| Larry Meyer | - | [●] | [●] |
| Elbert Basolis | 3,680,000 | 8.2 | [●] |
| Denean Williams | 299,600 | [●] | [●] |
| All Executive Officers, Directors, and Director Nominees as a Group (10 persons) | 38,229,093 | 84.9 | [●] |
| Other Stockholders: |  |  |  |
| Non-Executive Officer Employees, Consultants and Service Providers | [●] | [●] | [●] |
| [●] | [●] | [●] | [●] |
| Other Registered Stockholders | [●] | [●] | [●] |
| Total Number of Shares | [●] | [●] | [●] |

*
Less than 1%.

| (1) | Includes 9,895,741 shares of common stock issuable upon the exercise of outstanding options within 60 days of the date of this prospectus (none of these issuable shares are registered pursuant to the registration statement of which this prospectus forms a part). |
| --- | --- |
| (2) | Includes 2,437,500 shares of vested restricted stock units vested on April 1, 2026. The underlying shares were issued and outstanding at the grant date but remain subject to vesting and forfeiture provisions. |
| (2) | Includes 3,877,305 shares of common stock issuable upon the exercise of outstanding options within 60 days of the date of this prospectus (none of these issuable shares are registered pursuant to the registration statement of which this prospectus forms a part). |
| (4) | Includes 1,625,000 shares of vested restricted stock units vested on April 1, 2026. The underlying shares were issued and outstanding at the grant date but remain subject to vesting and forfeiture provisions. |
| (5) | Includes 299,600 shares of common stock held of record by WF Future LLC. Denean Williams, as the managing member and control person of such entity, has voting and dispositive power over such shares and may be deemed to beneficially own such shares. |
| (6) | Includes [●] shares of common stock issuable upon the exercise of outstanding [warrants and/or options] within 60 days of the date of this prospectus (none of these issuable shares are registered pursuant to the registration statement of which this prospectus forms a part). |
| (7) | Includes [●] shares of common stock issuable upon the exercise of outstanding [warrants and/or options] within 60 days of the date of this prospectus (none of these issuable shares are registered pursuant to the registration statement of which this prospectus forms a part). [INDIVIDUAL NAME], the [TITLE], has discretionary authority to vote and dispose of the shares held by [BENEFICIAL HOLDER (ENTITY) NAME] and may be deemed to be the beneficial owner of these shares. The address of [BENEFICIAL HOLDER (ENTITY) NAME] is [ADDRESS]. |
| (8) | Includes (i) [●] shares of common stock in total held by [●] accredited investors, each of whom holds less than [0.5]% of the shares outstanding; (ii) [●] shares of common stock issuable upon the exercise of outstanding [warrants and/or options] held by [●] accredited investors within 60 days of the date of this prospectus (none of these issuable shares are registered pursuant to the registration statement of which this prospectus forms a part); (iii) [●] shares of common stock in total held by [●] non-accredited investors, each of whom holds less than [0.5]% of the shares outstanding, and (iv) [●] shares of common stock issuable upon the exercise of outstanding [warrants and/or options] held by [●] non-accredited investors within 60 days of the date of this prospectus (none of these issuable shares are registered pursuant to the registration statement of which this prospectus forms a part). |

64

**DESCRIPTION
OF CAPITAL STOCK**

In
connection with the proposed listing of our common stock on Nasdaq, on January 19, 2026, we filed an amended and restated
certificate of incorporation, which, among other things, increased the authorized number of shares of our common stock from
100,000,000 shares to 500,000,000 shares and authorized the issuance of preferred stock in one or more series, with the rights,
preferences and privileges of each series to be determined by our board of directors. Where applicable, the following description
summarizes the material terms of the amended and restated certificate of incorporation. The following summary of our capital stock
and our certificate of incorporation and bylaws does not purport to be complete and is qualified in its entirety by reference to the
provisions of applicable law and our certificate of incorporation and bylaws, which are filed as exhibits to the registration
statement of which this prospectus forms a part.

As
of the date of this prospectus, the aggregate number of shares that we are authorized to issue is 501,000,000, consisting of 500,000,000
shares of common stock, par value $0.0001 per share, and 1,000,000 shares of preferred stock, par value $0.0001 per share. As of the
date of this prospectus, there are 45,034,282 shares of common stock outstanding and there are no shares of preferred stock outstanding.

**Common
Stock**

*Voting
Rights.* Holders of shares of common stock are entitled to one vote per share held of record on all matters to be voted upon by
the stockholders, except that holders of common stock shall not be entitled to vote on any amendment to our certificate of incorporation
(including any certificate of designations relating to any class or series of preferred stock) that relates solely to the terms of one
or more outstanding classes or series of preferred stock if the holders of such affected class or series of preferred stock are entitled,
either separately or together with the holders of one or more other such affected classes or series of preferred stock, to vote thereon
pursuant to our certificate of incorporation (including any certificate of designations relating to any class or series of preferred
stock) or pursuant to the Delaware General Corporation Law (the “DGCL”).

*Quorum*.
Our bylaws provide that the holders of a majority of the voting power of all outstanding shares of capital stock of the Company entitled
to vote constitutes a quorum, except that when specified business is to be voted on by a class or series of stock voting as a class,
the holders of shares representing a majority of the voting power of the outstanding shares of such class or series shall constitute
a quorum of such class or series for the transaction of such business.

*Dividend
Rights.* The board of directors may from time to time declare, and the Company may pay, dividends (payable in cash, property or shares
of the Company’s capital stock) on the Company’s outstanding shares of capital stock, subject to applicable law and our certificate
of incorporation.

*Liquidation
Rights.* Upon liquidation, dissolution, distribution of assets or other winding up of the Company, the holders of common stock are
entitled to receive ratably the assets available for distribution to the holders after payment of liabilities and the liquidation preference
of any of our outstanding shares of preferred stock.

*Other
Matters.* The shares of common stock have no preemptive or preferential right to acquire any of our shares or securities, including
shares or securities held in our treasury. All outstanding shares of our common stock are fully paid and non-assessable.

65

**Preferred
Stock**

Our
certificate of incorporation gives the board of directors the power to issue shares of preferred stock in one or more series without
stockholder approval. The board of directors has the discretion to determine the designations, rights, qualifications, preferences, privileges,
and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of
each series of preferred stock. The purpose of authorizing the board of directors to issue preferred stock and determine its rights and
preferences is to eliminate delays associated with a stockholder vote on specific issuances. The issuance of preferred stock, while providing
desirable flexibility in connection with possible acquisitions and other corporate purposes, could have the effect of making it more
difficult for a third party to acquire, or could discourage a third party from acquiring, a majority of our outstanding voting stock.

**Anti-Takeover
Effects of Delaware Law and Our Certificate of Incorporation and Bylaws**

Provisions
of the DGCL and our certificate of incorporation and bylaws could make it more difficult to acquire us by means of a tender offer, a
proxy contest or otherwise, or to remove incumbent officers and directors. These provisions would be expected to discourage certain types
of takeover practices and takeover bids our board of directors may consider inadequate and to encourage persons seeking to acquire control
of us to first negotiate with us. We believe that the benefits of increased protection of our ability to negotiate with the proponent
of an unfriendly or unsolicited proposal to acquire or restructure us will outweigh the disadvantages of discouraging takeover or acquisition
proposals because, among other things, negotiation of these proposals could result in an improvement of their terms.

**Certificate
of Incorporation and Bylaw Provisions**

Our
purpose is to engage in any lawful act or activity for which a corporation may be organized under the DGCL.

*Board
of Directors*

Our
bylaws provide that the number of directors will be fixed exclusively by the board of directors, subject to our certificate of incorporation,
and that the directors need not be stockholders.

*Authorized
but Unissued Capital Stock*

Our
authorized but unissued shares of common stock and preferred stock will be available for future issuance without stockholder approval,
except as may be required under the listing rules of any stock exchange on which our common stock is then listed. We may use additional
shares for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions and
employee benefit plans. The existence of authorized but unissued shares of common stock and preferred stock could render more difficult
or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or otherwise.

66

*Stockholder
Action by Written Consent*

Any
action required or permitted by the DGCL to be taken at a meeting of shareholders may be taken without a meeting if the action is evidenced
by one or more written consents describing the action taken, signed by the shareholders holding shares having not less than the minimum
number of votes that would be necessary to authorize or take such action at a meeting at which all of the shares entitled to vote thereon
were present and voted.

**Limitations
on Liability and Indemnification of Officers and Directors**

The
DGCL authorizes corporations to limit or eliminate the personal liability of directors and officers to corporations and their stockholders
for monetary damages for breaches of directors’ and officers’ fiduciary duties, subject to certain exceptions. Our certificate
of incorporation generally includes a provision that our directors and officers shall be indemnified and held harmless by the Company
to the fullest extent authorized by the DGCL. The effect of these provisions is to eliminate the rights of us and our stockholders, through
stockholders’ derivative suits on our behalf, to recover monetary damages from a director or an officer for breach of fiduciary
duty as a director or an officer, including breaches resulting from grossly negligent behavior. However, exculpation does not apply to
any breaches of the director’s or officer’s duty of loyalty, any acts or omissions not in good faith or that involve intentional
misconduct or knowing violation of law, any authorization of dividends or stock redemptions or repurchases paid or made in violation
of the DGCL, for any transaction from which the director derived an improper personal benefit or any action against an officer in any
action by or in the right of the Company.

Our
bylaws generally provide that we shall indemnify, hold harmless, and advance expenses to our directors and officers to the fullest extent
permitted by applicable law. We also are expressly authorized to carry directors’ and officers’ liability insurance providing
indemnification for our directors, officers and certain employees for some liabilities. We believe that these indemnification and advancement
provisions and insurance are useful to attract and retain qualified directors and executive officers.

The
limitation of liability, indemnification and advancement provisions in our certificate of incorporation and bylaws may discourage stockholders
from bringing a lawsuit against directors or officers for breach of their fiduciary duty. These provisions also may have the effect of
reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise
benefit us and our stockholders. In addition, your investment may be adversely affected to the extent we pay the costs of settlement
and damage awards against directors and officers pursuant to these indemnification provisions.

There
is currently no pending material litigation or proceeding involving any of our directors, officers or employees for which indemnification
is sought.

**Dissenters’
Rights of Appraisal and Payment**

Under
the DGCL, with certain exceptions, our stockholders will have appraisal rights in connection with a merger or consolidation of us. Pursuant
to Section 262 of the DGCL, stockholders who properly demand and perfect appraisal rights in connection with such merger or consolidation
will have the right to receive payment of the fair value of their shares as determined by the Delaware Court of Chancery.

**Transfer
Agent and Registrar**

The
transfer agent and registrar of our common stock is VStock Transfer LLC. The transfer agent and registrar’s address is 18 Lafayette
Place, Woodmere, NY 11598.

**Listing**

We
plan to have our common stock listed on Nasdaq under the symbol “FBDT”. This offering is conditioned upon Nasdaq’s
final approval of our listing application, and there is no guarantee or assurance that our common stock will be approved for listing
on Nasdaq.

67

**PLAN
OF DISTRIBUTION**

The
shares being registered herein may be freely sold in market transactions following the listing and upon the effectiveness of this registration
statement. None of the Company’s outstanding shares registered herein may be freely sold in reliance on an exemption from registration
such as Rule 144 at this time. The shares of common stock beneficially owned by the Registered Stockholders covered by this prospectus
may be offered and sold from time to time by the Registered Stockholders. The term “Registered Stockholders” includes donees,
pledgees, transferees or other successors in interest selling securities received after the date of this prospectus from a Registered
Stockholder as a gift, pledge, partnership distribution or other transfer. We will not receive any of the proceeds from the sale of the
securities by the Registered Stockholders. The Registered Stockholders will not be involved in Nasdaq’s price-setting mechanism,
including any decision to delay or proceed with trading, nor will they control or influence RBW Capital Partners LLC (the “Advisor”
or “RBW”) in carrying out its role as a financial adviser to advise and assist us with respect to certain matters relating
to the Direct Listing. We will not be involved in the price setting process. Additionally, the price of our shares in prior private
transactions may have little or no relation to the opening price and subsequent public price of our stock on Nasdaq. The Registered Stockholders
will act independently of us in making decisions with respect to the timing, manner and size of each sale. The Registered Stockholders
may offer, sell or distribute all or a portion of the securities registered hereby publicly at prevailing market prices. We are not party
to any arrangement with any Registered Stockholder or any broker-dealer with respect to sales of shares of common stock by the Registered
Stockholders. As such, we do not anticipate receiving notice as to if and when any Registered Stockholder may, or may not, elect to sell
their shares of common stock or the prices at which any such sales may occur, and there can be no assurance that any Registered Stockholders
will sell any or all of the shares of common stock covered by this prospectus.

On
the day that our shares of common stock are initially listed on Nasdaq, Nasdaq will begin accepting, but not executing, pre-opening buy
and sell orders and will begin to continuously generate the indicative Current Reference Price (as defined below) on the basis of such
accepted orders. The Current Reference Price is calculated each second and, during a 10-minute “Display Only” period, is
disseminated, along with other indicative imbalance information, to market participants by Nasdaq on its NOII and BookViewer tools. Following
the “Display Only” period, a “Pre-Launch” period begins, during which the Advisor, in its capacity as our financial
advisor, must notify Nasdaq that our shares are “ready to trade.” Once the Advisor has notified Nasdaq that our shares of
common stock are ready to trade, Nasdaq will confirm the Current Reference Price for our shares of common stock, in accordance with the
Nasdaq rules. If the Advisor then approves proceeding at the Current Reference Price, the applicable orders that have been entered will
then be executed at such price and regular trading of our shares of common stock on Nasdaq will commence, subject to Nasdaq conducting
validation checks in accordance with the Nasdaq rules.

Under
the Nasdaq rules, the Current Reference Price means: (i) the single price at which the maximum number of orders to buy or sell can be
matched; (ii) if there is more than one price at which the maximum number of orders to buy or sell can be matched, then it is the price
that minimizes the imbalance between orders to buy or sell (i.e. minimizes the number of shares that would remain unmatched at such price);
(iii) if more than one price exists under (ii), then it is the entered price (i.e. the specified price entered in an order by a customer
to buy or sell) at which our shares of common stock will remain unmatched (i.e. will not be bought or sold); and (iv) if more than one
price exists under (iii), a price determined by Nasdaq in consultation with the Advisor in its capacity as our financial advisor. In
the event that more than one price exists under (iii), the Advisor will exercise any consultation rights only to the extent that it can
do so consistent with the anti-manipulation provisions of the federal securities laws, including Regulation M, or applicable relief granted
thereunder.

In
determining the Current Reference Price, Nasdaq’s cross algorithms will match orders that have been entered into and accepted by
Nasdaq’s system. This occurs with respect to a potential Current Reference Price when orders to buy shares of common stock at an
entered bid price that is greater than or equal to such potential Current Reference Price are matched with orders to sell a like number
of shares of common stock at an entered asking price that is less than or equal to such potential Current Reference Price. To illustrate,
as a hypothetical example of the calculation of the Current Reference Price, if Nasdaq’s cross algorithms matched all accepted
orders as described above, and two limit orders remained — a limit order to buy 500 shares of common stock at an entered bid price
of $10.01 per share and a limit order to sell 200 shares of common stock at an entered asking price of $10.00 per share — the Current
Reference Price would be selected as follows:

- Under clause (i), if the Current Reference Price is $10.00, then the maximum number of additional shares that can be matched is 200.
If the Current Reference Price is $10.01, then the maximum number of additional shares that can be matched is also 200, which means that
the same maximum number of additional shares would be matched at the price of either $10.00 or $10.01.

- Because more than one price under clause (i) exists, under clause (ii), the Current Reference Price would be the price that minimizes
the imbalance between orders to buy or sell (i.e. minimizes the number of shares that would remain unmatched at such price). Selecting
either $10.00 or $10.01 as the Current Reference Price would create the same imbalance in the limit orders that cannot be matched, because
at either price 300 shares would not be matched.

- Because more than one price under clause (ii) exists, under clause (iii), the Current Reference Price would be the entered price at which
orders for shares of common stock at such entered price will remain unmatched. In such case, choosing $10.01 would cause 300 shares of
the 500 share limit order with the entered price of $10.01 to remain unmatched, compared to choosing $10.00, where all 200 shares of
the limit order with the entered price of $10.00 would be matched, and no shares at such entered price remain unmatched. Thus, Nasdaq
would select $10.01 as the Current Reference Price, because orders for shares at such entered price will remain unmatched. The above
example (including the prices) is provided solely by way of illustration.

The
Advisor will determine when our shares of common stock are ready to trade and approve proceeding at the Current Reference Price primarily
based on considerations of volume, timing and price. In particular, the Advisor will determine, based primarily on pre-opening buy and
sell orders, when a reasonable amount of volume will cross on the opening trade such that sufficient price discovery has been made to
open trading at the Current Reference Price. If the Advisor does not approve proceeding at the Current Reference Price (for example,
due to the absence of adequate pre-opening buy and sell interest), the Advisor will request that Nasdaq delay the opening until such
a time that sufficient price discovery has been made to ensure that a reasonable amount of volume crosses on the opening trade. Further,
in the highly unlikely event that Nasdaq consults with the Advisor as described in clause (iv) of the definition of Current Reference
Price, the Advisor would request that Nasdaq delay the opening to ensure a single opening price within clauses (i), (ii) or (iii) of
the definition of the Current Reference Price. The Registered Stockholders will not be involved in Nasdaq’s price-setting mechanism,
and will not coordinate or be in communication with the Advisor including with respect to any decision by the Advisor to delay or proceed
with trading.

68

Similar
to a Nasdaq-listed firm-commitment underwritten initial public offering, in connection with the listing of our shares of common stock,
buyers and sellers who have subscribed will have access to Nasdaq’s Order Imbalance Indicator (the “Net Order Imbalance Indicator”),
a widely available, subscription-based data feed, prior to submitting buy or sell orders. Nasdaq’s electronic trading platform
simulates auctions every second to calculate a Current Reference Price, the number of shares of common stock that can be paired off the
Current Reference Price, the number of shares of common stock that would remain unexecuted at the Current Reference Price and whether
a buy-side or sell-side imbalance exists, or whether there is no imbalance, to disseminate that information continuously to buyers and
sellers via the Net Order Imbalance Indicator data feed.

As compensation
for successful listing, RBW will be granted 1.0% of our fully diluted common stock outstanding immediately prior to the Direct Listing,
which we currently calculate at 887,472 shares (the “Advisory Shares”). Such shares are not registered pursuant
to this prospectus and the Advisor is not a Registered Shareholder. In addition, upon a successful direct listing, we will pay RBW a
one-time cash advisory fee of $250,000.

Pursuant
to the terms of our engagement with the Advisor, we have granted the Advisor the right to act as exclusive provider of capital markets
services for the Company for a period of 6 months after consummation of the Direct Listing.

However,
because this is not an initial public offering being conducted on a firm-commitment underwritten basis, there will be no traditional
book building process. Moreover, prior to the opening trade, there will not be a price at which underwriters initially sold shares of
common stock to the public, as there would be in a firm-commitment underwritten initial public offering. The lack of an initial public
offering price could impact the range of buy and sell orders collected by Nasdaq from various broker-dealers. Consequently, the public
price of our shares of common stock may be more volatile than in an initial public offering underwritten on a firm-commitment basis and
could, upon being listed on Nasdaq, decline significantly and rapidly. See “Risk Factors—Risks Related to this Direct Listing
and Ownership of Our Common Stock — Our shares of common stock currently have no public market. An active trading market may not
develop or continue to be liquid and the market price of our shares of common stock may be volatile.”

In
addition, to list on Nasdaq, we are also required to have at least three registered and active market makers. We expect that the Advisor
will act as a registered and active market maker and will engage other market makers.

In
addition to sales made pursuant to this prospectus, the shares of common stock covered by this prospectus may be sold by the Registered
Stockholders in private transactions exempt from the registration requirements of the Securities Act.

Under
the securities laws of some states, shares of common stock may be sold in such states only through registered or licensed brokers or
dealers.

If
any of the Registered Stockholders utilize a broker-dealer in the sale of the shares of common stock being offered by this prospectus,
such broker-dealer may receive commissions in the form of discounts, concessions or commissions from such Registered Stockholder or commissions
from purchasers of the shares of common stock for whom they may act as agent or to whom they may sell as principal.

We
have engaged RBW as our financial advisor to advise and assist us with respect to certain matters relating to our listing. The services
expected to be performed by the Advisor will include providing advice and assistance with respect to defining objectives, analyzing,
structuring and planning the listing and developing and assisting with our investor communication strategy in relation to this listing.

However,
the Advisor will not be engaged to otherwise facilitate or coordinate price discovery activities or sales of shares of our common stock
in consultation with us, and will not be permitted to, and will not be instructed by us to, plan or actively participate in any investor
education activities, except as described herein.

Prior
to the financial advisory services provided by the Advisor to the Company in connection with the listing of our securities, neither the
Advisor nor any affiliates of the Advisor have provided services of any kind to the Company. However, the Advisor is a full service financial
institution engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory,
investment management, investment research, principal investment, hedging, financing and brokerage activities. The Advisor and their
affiliates may, from time to time, perform financial advisory and investment banking services for us, for which they would receive customary
fees, discounts and customary payments including but not limited to certain expense reimbursements.

69

**SHARES
ELIGIBLE FOR FUTURE SALE**

Immediately
prior to the listing of our common stock on Nasdaq, there has been no market for our common stock, and a liquid trading market for our
common stock may not develop or be sustained after the listing. Future sales of substantial amounts of our common stock in the public
market, or the perception that such sales could occur, could adversely affect market prices prevailing from time to time and could impair
our ability to raise capital through the sale of our equity securities. We will have no input if and when any Registered Stockholders
may, or may not, elect to sell their shares or the prices at which any such sales may occur.

Based
on the number of shares outstanding as of the date of this prospectus, upon the listing of our common stock on Nasdaq, approximately
[

- ] shares of common stock will be outstanding. Of the shares to be outstanding immediately after the listing, [
- ] shares
will be registered under this registration statement. Any shares not registered hereunder will be deemed “restricted securities”
as defined in Rule 144. Restricted securities may be sold in the public market only if they are registered under the Securities Act or
if they qualify for an exemption from registration under Rule 144 or Rule 701 promulgated under the Securities Act, which rules are summarized
below. Restricted securities also may be sold outside of the United States to non-U.S. persons in accordance with Rule 904 of Regulation
S.

**Rule
144**

In
general, under Rule 144 as currently in effect, beginning 90 days after the effective date of the registration statement of which this
prospectus is a part, any person who is not an affiliate of ours and has held their shares for at least six months, as measured by SEC
rule, including the holding period of any prior owner other than one of our affiliates, may sell shares without restriction, provided
current public information about us is available. In addition, under Rule 144, any person who is not an affiliate of ours and has held
their shares for at least one year, as measured by SEC rule, including the holding period of any prior owner other than one of our affiliates,
would be entitled to sell an unlimited number of shares immediately upon the listing of our common stock on Nasdaq without regard to
whether current public information about us is available. Beginning 90 days after the effective date of the registration statement of
which this prospectus is a part, a person who is an affiliate of ours and who has beneficially owned restricted securities for at least
six months, as measured by SEC rule, including the holding period of any prior owner other than one of our affiliates, is entitled to
sell a number of restricted shares within any three-month period that does not exceed the greater of:

- 1%  of the number of shares of our common stock then outstanding, which will equal approximately [
- ] shares immediately after the  listing of our common stock on Nasdaq; and
- the  average weekly trading volume of our common stock on Nasdaq during the four calendar weeks preceding the filing of a notice on Form  144 with respect to the sale.

Sales
of restricted shares under Rule 144 held by our affiliates are also subject to requirements regarding the manner of sale, notice and
the availability of current public information about us. Rule 144 also provides that affiliates relying on Rule 144 to sell shares of
our common stock that are not restricted shares must nonetheless comply with the same restrictions applicable to restricted shares, other
than the holding period requirement.

**Rule
701**

Under
Rule 701 under the Securities Act, shares of our common stock acquired upon the exercise of currently outstanding options or pursuant
to other rights granted under our stock plans may be resold, by:

- persons  other than affiliates, beginning 90 days after the effective date of the registration statement of which this prospectus is a part,  subject only to the manner-of-sale provisions of Rule 144; and
- our  affiliates, beginning 90 days after the effective date of the registration statement of which this prospectus is a part, subject  to the manner-of-sale and volume limitations, current public information and filing requirements of Rule 144, in each case, without  compliance with the six-month holding period requirement of Rule 144.

70

**SALE
PRICE HISTORY OF COMMON STOCK**

We
have applied to list our common stock on Nasdaq. Prior to the initial listing, no public market existed for our common stock. Our common
stock has a limited history of trading in private transactions. During the period from March 2023 through October 2023, the Company issued
to certain accredited investors an aggregate of 1,747,289 units, each consisting of one share of common stock and one warrant to purchase
one-half share of common stock, at $1.50 per unit for an aggregate purchase price of $2,620,934. During the period from February 2024
through July 2024, the Company issued to a certain accredited investor an aggregate of 437,500 shares of common stock at $1.60 per share
for an aggregate purchase price of $700,000. During the period from July 2024 through October 2024, the Company issued to certain accredited
investors an aggregate of 91,000 shares of common stock at $1.00 per share for an aggregate purchase price of $91,000. During the period
from August 2025 through February 2026, the Company issued to certain accredited investors an aggregate of 3,207,500 shares of common
stock at $1.00 per share for an aggregate purchase price of $3,207,500. In November and December 2025, the Company issued to certain
accredited investors an aggregate of 60,000 shares of common stock at $2.00 per share for an aggregate purchase price of $120,000. During
the period from January to March 2026, the Company issued to certain accredited investors an aggregate of 406,669 shares
of common stock at $3.00 per share for an aggregate purchase price of $1,220,004. In March 2026, the Company issued to an accredited
investors an aggregate of 2,500 shares of common stock at $8.00 per share for an aggregate purchase price of $20,000.

While
the Advisor is expected to consider this price in connection with setting the opening public price of our common stock, this information
may have little or no relation to broader market demand for our common stock and thus the opening public price and subsequent public
price of our common stock on Nasdaq. As a result, you should not place undue reliance on these historical private sale prices as it may
differ materially from the opening public price and subsequent public price of our common stock on Nasdaq. See “Risk Factors*—* Risks Related to this Direct Listing and Ownership of Our Common Stock”

71

**MATERIAL
U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS**

The
following is a summary of the material U.S. federal income tax consequences of the ownership and disposition of our common stock acquired
in this offering by a “non-U.S. holder” (as defined below), but does not purport to be a complete analysis of all the potential
tax considerations relating thereto. This summary is based upon the provisions of the United States Internal Revenue Code of 1986, as
amended, or the Code, Treasury Regulations promulgated thereunder, administrative rulings and judicial decisions, all as of the date
hereof. These authorities may be changed, possibly retroactively, so as to result in U.S. federal income tax consequences different from
those set forth below. We have not sought, and do not intend to seek, any ruling from the Internal Revenue Service, or IRS, with respect
to the statements made and the conclusions reached in the following summary, and there can be no assurance that the IRS or a court will
agree with such statements and conclusions.

This
summary also does not address the tax considerations arising under the laws of any state or local or non-U.S. jurisdiction or under U.S.
federal gift and estate tax rules, or rising out of other non-income tax rules, except to the limited extent set forth below. In addition,
this discussion does not address tax considerations applicable to an investor’s particular circumstances or to investors that may
be subject to special tax rules, including, without limitation:

- banks,  insurance companies, regulated investment companies, real estate investment trusts or other financial institutions;
- persons  subject to the alternative minimum tax or the tax on net investment income;
- persons  subject to special tax accounting rules as a result of any item of gross income with respect to our common stock being taken into  account in an applicable financial statement;
- tax-exempt  organizations or governmental organizations;
- pension  plans and tax-qualified retirement plans;
- controlled  foreign corporations, passive foreign investment companies and corporations that accumulate earnings to avoid U.S. federal income  tax;
- partnerships  or other entities or arrangements treated as partnership for U.S. federal income tax purposes (and investors therein);
- brokers  or dealers in securities or currencies;
- traders  in securities that elect to use a mark-to-market method of accounting for their securities holdings;
- persons  that own, or are deemed to own, more than five percent of our capital stock (except to the extent specifically set forth below);
- certain  former citizens or long-term residents of the United States;
- persons  who hold our common stock as a position in a hedging transaction, “straddle,” “conversion transaction” or  other risk reduction transaction or integrated investment;
- persons  who hold or receive our common stock pursuant to the exercise of any option or otherwise as compensation;
- persons  who do not hold our common stock as a capital asset within the meaning of Section 1221 of the Code (generally, property held for  investment); and
- persons  deemed to sell our common stock under the constructive sale provisions of the Code.

In
addition, if a partnership, entity or arrangement classified as a partnership or flow-through entity for U.S. federal income tax purposes
holds our common stock, the tax treatment of a partner generally will depend on the status of the partner and upon the activities of
the partnership or other entity. A partner in a partnership or other such entity that will hold our common stock should consult his,
her or its own tax advisor regarding the tax consequences of the ownership and disposition of our common stock through a partnership
or other such entity, as applicable.

72

**This
summary is for informational purposes only and is not tax advice. Each non-U.S. holder is urged to consult its own tax advisor with respect
to the application of the U.S. federal income tax laws to its particular situation, as well as any tax consequences of the purchase,
ownership and disposition of our common stock arising under the U.S. federal gift or estate tax rules or under the laws of any state,
local, non-U.S. or other taxing jurisdiction or under any applicable tax treaty.**

**Non-U.S.
Holder Defined**

For
purposes of this discussion, a “non-U.S. holder” is a beneficial owner of our common stock that, for U.S. federal income
tax purposes, is neither a “U.S. person” nor an entity (or arrangement) treated as a partnership. A “U.S. person”
is any person that, for U.S. federal income tax purposes, is or is treated as any of the following:

- an  individual who is a citizen or resident of the United States;
- a  corporation or other entity taxable as a corporation created or organized in the United States or under the laws of the United States  or any political subdivision thereof, or otherwise treated as such for U.S. federal income tax purposes;
- an  estate whose income is subject to U.S. federal income tax regardless of its source; or
- a  trust (x) whose administration is subject to the primary supervision of a U.S. court and that has one or more U.S. persons who have  the authority to control all substantial decisions of the trust or (y) that has made a valid election under applicable Treasury Regulations  to be treated as a U.S. person.

**Distributions**

As
described in the section titled “*Dividend Policy*,” we have never declared or paid cash dividends on our common stock.
However, following the listing of our common stock on Nasdaq, if we do make distributions of cash or property on our common stock to
non-U.S. holders, such distributions will constitute dividends for U.S. federal income tax purposes to the extent paid from our current
or accumulated earnings and profits, as determined under U.S. federal income tax principles. To the extent those distributions exceed
both our current and our accumulated earnings and profits, the excess will first constitute a return of capital and will reduce each
non-U.S. holder’s adjusted tax basis in our common stock, but not below zero. Any additional excess will then be treated as capital
gain from the sale of stock, as discussed under “*Gain on Disposition of Common Stock*.”

Subject
to the discussions below on effectively connected income, backup withholding and the Foreign Account Tax Compliance Act, or FATCA, any
dividend paid to a non-U.S. holder generally will be subject to U.S. federal withholding tax either at a rate of 30% of the gross amount
of the dividend or such lower rate as may be specified by an applicable income tax treaty between the United States and such non-U.S.
holder’s country of residence. In order to receive a reduced treaty rate, such non-U.S. holder must provide the applicable withholding
agent with an IRS Form W-8BEN or W-8BEN-E or other appropriate version of IRS Form W-8 certifying qualification for the reduced treaty
rate. A non-U.S. holder of shares of our common stock eligible for a reduced rate of U.S. federal withholding tax pursuant to an income
tax treaty may obtain a refund of any excess amounts withheld by filing an appropriate claim for refund with the IRS. If such non-U.S.
holder holds our common stock through a financial institution or other agent acting on the non-U.S. holder’s behalf, the non-U.S.
holder will be required to provide appropriate documentation to such agent, which then will be required to provide certification to the
applicable withholding agent, either directly or through other intermediaries. Each non-U.S. holder should consult its own tax advisors
regarding their entitlement to benefits under any applicable income tax treaty.

73

Dividends
received by a non-U.S. holder that are treated as effectively connected with such non-U.S. holder’s conduct of a trade or business
within the United States (and, if an applicable income tax treaty so provides, such non-U.S. holder maintains a permanent establishment
or fixed base in the United States to which such dividends are attributable) are generally exempt from the 30% U.S. federal withholding
tax, subject to the discussion below on backup withholding and FATCA withholding. To claim this exemption, a non-U.S. holder must provide
the applicable withholding agent with a properly executed IRS Form W-8ECI or other applicable IRS Form W-8 properly certifying such exemption.
Such effectively connected dividends, although not subject to U.S. federal withholding tax, are taxed at the same graduated rates applicable
to U.S. persons, net of certain deductions and credits, subject to an applicable income tax treaty providing otherwise. In addition,
if a non-U.S. holder is a corporation, dividends such non-U.S. holder receives that are effectively connected with its conduct of a U.S.
trade or business may also be subject to a branch profits tax at a rate of 30% or such lower rate as may be specified by an applicable
income tax treaty between the United States and such non-U.S. holder’s country of residence. Each non-U.S. holder should consult
its own tax advisor regarding the tax consequences of the ownership and disposition of our common stock, including any applicable tax
treaties that may provide for different rules.

**Gain
on Disposition of Common Stock**

Subject
to the discussion below regarding backup withholding and FATCA withholding, a non-U.S. holder generally will not be required to pay U.S.
federal income tax on any gain realized upon the sale or other disposition of our common stock unless:

- the  gain is effectively connected with such non-U.S. holder’s conduct of a U.S. trade or business (and, if an applicable income  tax treaty so provides, such non-U.S. holder maintains a permanent establishment or fixed base in the United States to which such  gain is attributable);
- such  non-U.S. holder is an individual who is present in the United States for an aggregate 183 days or more during the taxable year in  which the sale or disposition occurs and certain other conditions are met; or
- our  common stock constitutes a United States real property interest, or USRPI, by reason of our status as a “United States real  property holding corporation,” or USRPHC, for U.S. federal income tax purposes.

74

We
believe that we are not currently and will not become a USRPHC for U.S. federal income tax purposes, and the remainder of this discussion
so assumes. However, because the determination of whether we are a USRPHC depends on the fair market value of our U.S. real property
interests relative to the fair market value of our U.S. and worldwide real property interests plus our other business assets, there can
be no assurance that we will not become a USRPHC in the future. Even if we become a USRPHC, however, as long as our common stock is regularly
traded on an established securities market, your common stock will be treated as U.S. real property interests only if you actually (directly
or indirectly) or constructively hold more than 5% of such regularly traded common stock at any time during the shorter of the five-year
period preceding your disposition of, or your holding period for, our common stock.

A
non-U.S. holder described in the first bullet above will be required to pay U.S. federal income tax on the gain derived from the sale
(net of certain deductions and credits) under regular graduated U.S. federal income tax rates. In addition, a non-U.S. holder that is
a corporation may be subject to the branch profits tax at a 30% rate on a portion of its effectively connected earnings and profits for
the taxable year that are attributable to such gain, as adjusted for certain items. A lower rate may be specified by an applicable income
tax treaty.

A
non-U.S. holder described in the second bullet above will be subject to tax at 30% (or such lower rate specified by an applicable income
tax treaty) on the gain derived from the sale, which gain may be offset by U.S. source capital losses of such non-U.S. holder for the
taxable year, provided such non-U.S. holder has timely filed U.S. federal income tax returns with respect to such losses.

Each
non-U.S. holder should consult its own tax advisor regarding any applicable income tax or other treaties that may provide for different
rules.

**Information
Reporting and Backup Withholding**

Generally,
we or an applicable withholding agent must report annually to the IRS the amount of dividends paid to a non-U.S. holder, such non-U.S.
holder’s name and address, and the amount of tax withheld, if any. A similar report is sent to such non-U.S. holder. Pursuant to
any applicable income tax treaty or other agreement, the IRS may make such report available to the tax authority in such non-U.S. holder’s
country of residence.

**EXPERTS**

Grassi
& Co., CPAs, P.C., our independent registered public accounting firm, has audited our balance sheets as of December 31, 2025 and
2024, and the related statements of operations, changes in stockholders’ equity and cash flows for the years then ended, as
set forth in their report dated March 20, 2026. We have included our financial statements in this prospectus and in this
registration statement in reliance on their report given on their authority as experts in accounting and auditing.

**WHERE
YOU CAN FIND ADDITIONAL INFORMATION**

We
have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the shares of common stock offered
hereby. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in
the registration statement or the exhibits filed therewith. For further information about us and the common stock offered hereby, reference
is made to the registration statement and the exhibits filed therewith. Statements contained in this prospectus concerning the contents
of any contract or any other document are not necessarily complete; thus, please see the copy of the contract or document that has been
filed for the complete contents of that contract or document. Each statement in this prospectus relating to a contract or document filed
as an exhibit is qualified in all respects by the filed exhibit. The exhibits to the registration statement should be reviewed for the
complete contents of these contracts and documents.

We
currently do not file periodic reports with the SEC. Upon the listing of our common stock on Nasdaq, we will be required to file periodic
reports, proxy statements and other information with the SEC pursuant to the Exchange Act. The SEC maintains a website that contains
reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. The address
of the website is *www.sec.gov*.

We
also maintain a website at https://firstbreach.com. Upon the listing of our common stock on Nasdaq, you may access these materials at
our website free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. Information
contained in, or that can be accessed through, our website is not a part of, and is not incorporated into, this prospectus.

76

**FIRST
BREACH, INC.**

**INDEX
TO FINANCIAL STATEMENTS**

**Financial  Statements for the Years Ended December 31, 2025 and 2024** **Page**

[Report of Independent Registered Public Accounting Firm](#JA_001) (PCAOB ID #606) F-2

[Balance Sheets as of December 31, 2025 and 2024](#G_001) F-3

[Statements of Operations for the Years Ended December 31, 2025 and 2024](#G_002) F-4

[Statements of Changes in Stockholders’ Equity for the Years Ended December 31, 2025 and 2024](#G_003) F-5

[Statements of Cash Flows for the Years Ended December 31, 2025 and 2024](#G_004) F-6

[Notes to Financial Statements](#G_005) F-7

F-1

**REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To
the Board of Directors and Stockholders of

First
Breach, Inc.

**Opinion
on the Financial Statements**

We
have audited the accompanying balance sheets of First Breach, Inc. (the “Company”) as of December 31, 2025 and 2024,
and the related statements of operations, changes in stockholders’ equity, and cash flows for the years ended December 31, 2025
and 2024, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial
statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024,
and the results of its operations and its cash flows for each of the years ended December 31, 2025 and 2024, in conformity
with accounting principles generally accepted in the United States of America.

**Restatement
of Consolidated Financial Statements**

As
discussed in Note 3 to the consolidated financial statements, the 2024 financial statements have been restated to correct certain misstatements.

**Substantial
Doubt Regarding the Company’s Ability to Continue as a Going Concern**

The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note
2 to the financial statements, the Company incurred net losses and had negative cash flows from operations that raise substantial doubt
about the Company’s ability to continue as a going concern. Management’s plans regarding these matters are also described
in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis
for Opinion**

These
financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s
financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board
(United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We
conducted our audit in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in
the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were
we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an
understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of
the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our
audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides
a reasonable basis for our opinion.

*/s/
Grassi & Co., CPAs, P.C.*

We
have served as the Company’s auditor since 2025.

Jericho,
New York

March
20, 2026

F-2

**FIRST BREACH, INC.**

### BALANCE SHEETS

|  |  |  |
| --- | --- | --- |
| Assets |  |  |
| Current assets: |  |  |
| Cash | $2,477,122 | $434,613 |
| Accounts receivable | 51,889 | 30,265 |
| Inventories, net | 918,359 | 1,845,982 |
| Prepaid and other current assets | 46,192 | 44,081 |
| Total current assets | 3,493,562 | 2,354,941 |
| Property and equipment, net | 8,201,957 | 9,483,383 |
| Right-of-use assets | 1,271,638 | 1,616,052 |
| Other assets | 53,625 | 53,625 |
| Total assets | $13,020,782 | $13,508,001 |
| Liabilities and stockholders’ equity |  |  |
| Current liabilities: |  |  |
| Accounts payable | $2,041,908 | $1,852,202 |
| Accrued liabilities | 431,659 | 358,906 |
| Accrued liabilities, related party | 428,278 | 513,614 |
| Employee loan payable, related party | 121,739 | 121,739 |
| Note payable – related party | 50,000 | — |
| Contract liabilities | — | 54,410 |
| Note payable – current portion | 7,166 | — |
| Convertible notes payable, net of debt discount – current portion | 284,146 | — |
| Operating lease liability – current portion | 372,665 | 344,177 |
| Financing lease liability – current portion | 893,710 | 712,795 |
| Total current liabilities | 4,631,271 | 3,957,843 |
| Long-term liabilities: |  |  |
| Note payable | 27,523 | — |
| Convertible notes payable, net of debt discount | 201,215 | 1,471,436 |
| Operating lease liability – net of current portion | 988,471 | 1,361,137 |
| Financing lease liability – net of current portion | 767,822 | 1,607,982 |
| Total liabilities | 6,616,302 | 8,398,398 |
| Commitments and Contingencies (Note 18) | — | — |
| Stockholders’ Equity: |  |  |
| Preferred stock, $0.0001 par value, 1,000,000 authorized, no shares issued and outstanding as of December 31, 2025 and 2024, respectively | — | — |
| Common stock, $0.0001 par value, 100,000,000 authorized, 44,500,111 and 37,784,611 shares issued and outstanding as of December 31, 2025 and 2024, respectively | 4,450 | 3,778 |
| Additional paid-in capital | 41,643,152 | 26,526,826 |
| Accumulated deficit | (35,243,122) | (21,421,001) |
| Total stockholders’ equity | 6,404,480 | 5,109,603 |
| Total liabilities and stockholders’ equity | $13,020,782 | $13,508,001 |

*The
accompanying notes are an integral part of these financial statements.*

F-3

**FIRST BREACH, INC.**

### STATEMENTS OF OPERATIONS

|  |  |  |
| --- | --- | --- |
| Net revenues | $384,129 | $773,870 |
| Cost of revenues | 1,761,368 | 2,235,004 |
| Net loss associated with liquidation of raw materials | 684,960 | 943,278 |
| Gross margin | (2,062,199) | (2,404,412) |
| Operating expenses: |  |  |
| Selling, general, and administrative expense | 7,926,714 | 2,836,942 |
| Total operating expenses | 7,926,714 | 2,836,942 |
| Loss from operations | (9,988,913) | (5,241,354) |
| Other expense, net: |  |  |
| Interest expense, net | (1,866,438) | (791,730) |
| Loss on extinguishment of debt | (2,017,314) | — |
| Loss on sale of assets | (1,906) | — |
| Other income | 93,500 | — |
| Other expense | (41,050) | (41,050) |
| Total other expense, net | (3,833,208) | (832,780) |
| Net loss before income taxes | (13,822,121) | (6,074,134) |
| Income tax provision | — | — |
| Net loss | $(13,822,121) | $(6,074,134) |
| Net loss per share: |  |  |
| Basic and diluted | $(0.36) | $(0.16) |
| Weighted average number of shares outstanding: |  |  |
| Basic & diluted | 38,276,140 | 37,530,778 |

*The
accompanying notes are an integral part of these financial statements.*

F-4

**FIRST
BREACH, INC.**

**STATEMENTS
OF CHANGES IN STOCKHOLDERS’ EQUITY**

**FOR
THE YEARS ENDED DECEMBER 31, 2025 AND 2024**

| Line item |  |  | Deficit |  |
| --- | --- | --- | --- | --- |
| Balance at January 1, 2024 | 37,196,111 | 3,719 | 25,092,195 | 9,749,047) |
| Equity offering proceeds, net of stock issuance costs | 528,500 | 53 | 734,947 | 735,000 |
| Warrants issued in conjunction with convertible notes payable (as restated) | — | — | 639,690 | 639,690 |
| Share-based compensation | 60,000 | 6 | 59,994 | 60,000 |
| Net loss | — | — | — | (6,074,134)) |
| Balance at December 31, 2024 (as restated) | 37,784,611 | $3,778 | $26,526,826 | $$5,109,603) |
| Issuance of common stock for the conversion of debt | 1,775,000 | 178 | 3,549,822 | 3,550,000 |
| Equity offering proceeds in conjunction with the conversion of convertible notes payable | 2,195,000 | 219 | 4,389,781 | 4,390,000 |
| Warrants issued in conjunction with the conversion of convertible notes payable | — | — | 677,374 | 677,374 |
| Issuance of common stock for the exercise of warrants | 1,775,000 | 178 | 887,322 | 887,500 |
| Equity offering proceeds | 970,500 | 97 | 1,030,403 | 1,030,500 |
| Share-based compensation | — | — | 4,581,625 | 4,581,625 |
| Net loss | — | — | — | (13,822,121)) |
| Balance at December 31, 2025 | 44,500,111 | $4,450 | $41,643,152 | $$6,404,480) |

*The
accompanying notes are an integral part of these financial statements.*

F-5

**FIRST BREACH, INC**.**

### STATEMENTS OF CASH FLOWS

|  |  |  |
| --- | --- | --- |
| Cash flows from operating activities: |  |  |
| Net loss | $(13,822,121) | $(6,074,134) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| Stock-based compensation | 4,581,625 | 60,000 |
| Depreciation and amortization | 1,332,393 | 1,327,482 |
| Loss on extinguishment of debt | 2,017,314 | — |
| Amortization of debt discount | 53,550 | 53,550 |
| Amortization of debt discount – warrant feature and OID interest | 984,834 | 82,872 |
| Non-cash PIK interest | 344,151 | 28,255 |
| Loss on sale of asset | (1,906) | — |
| Right-of-use assets, net of lease liabilities | 235 | 12,290 |
| Changes in operating assets and liabilities: |  |  |
| Accounts receivable | (21,624) | (28,440) |
| Inventories | 927,623 | 1,036,453 |
| Prepaid and other current assets | (2,111) | 10,401 |
| Accounts payable | 189,706 | 1,194,423 |
| Accrued liabilities | 72,753 | 283,924 |
| Accrued liabilities, related party | (85,337) | 246,344 |
| Employee loan payable, related party | — | 121,739 |
| Contract liabilities | (54,410) | 54,410 |
| Net cash used in operating activities | (3,483,325) | (1,590,431) |
| Cash flows from investing activities: |  |  |
| Proceeds from sale of assets | 78,000 | — |
| Capitalized expenditures | (88,369) | (190,390) |
| Net cash used in investing activities | (10,369) | (190,390) |
| Cash flows from financing activities: |  |  |
| Proceeds from convertible notes payable | 2,090,000 | 2,000,000 |
| Proceeds from issuance of common stock upon exercise of warrants | 887,500 | — |
| Principal payments on financing lease | (712,794) | (568,567) |
| Proceeds from issuance on equity offerings | 3,225,500 | 791,000 |
| Proceeds from note payable – related party | 50,000 | — |
| Net payments on note payable | (4,003) | — |
| Stock issuance costs | — | (56,000) |
| Net cash provided by financing activities | 5,536,203 | 2,166,433 |
| Net change to cash | 2,042,509 | 385,612 |
| Cash at beginning of year | 434,613 | 49,001 |
| Cash at end of year | $2,477,122 | $434,613 |
| Supplemental disclosure of cash flow information: |  |  |
| Cash paid for interest | $530,700 | $665,101 |
| Cash paid for taxes | — | — |
| Supplemental Non-cash Financing Activities |  |  |
| Issuance of common stock for the conversion of convertible notes payables | $3,550,000 | — |
| Issuance of warrants in conjunction with convertible notes payable | $677,374 | $639,690 |

*The
accompanying notes are an integral part of these financial statements.*

F-6

**NOTE
1 — ORGANIZATION AND NATURE OF BUSINESS**

First
Breach (“The Company”) was originally formed as a limited liability company named First Breach, LLC under the laws of the
State of Maryland on April 9, 2018 and subsequently converted to a corporation named First Breach, Inc. (“First Breach”)
incorporated under the laws of the State of Delaware on October 22, 2021.

The
Company is a match-grade ammunition component manufacturer offering brass cups, brass casings, full-metal-jacket projectiles, lead projectile
cores, and lead wire. Equipped with numerous quality control checks, the Company offers match-grade, SAAMI-specification products. Customers
will have the ability to order custom head-stamped casings as well as a wide range of grain-size options for projectiles. The majority
of customers are resellers and direct-to-consumers primarily within the United States.

The
Company is dedicated to building upon its industry experience while emphasizing placing integrity first along with competitive pricing,
building customer relations, and utilizing quality raw materials.

### **NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis
of Presentation***

The
accompanying financial statements and the related notes have been prepared in accordance with accounting principles generally accepted
in the United States of America (“U.S. GAAP”) and pursuant to the accounting and disclosure rules and regulations of the
Securities and Exchange Commission (“SEC”).

***Liquidity
and Going Concern***

The
Company has incurred losses since inception, devoting substantially all of its efforts toward manufacturing buildout and related operational
activities, and have an accumulated deficit of $35,243,122 as of December 31, 2025. The Company generated a net loss of
$13,822,121 during the year ended December 31, 2025. Net cash used in its operating activities during the year ended December
31, 2025 was $3,483,325. The Company expects to continue to generate operating losses and negative cash flow from operations
for the foreseeable future. The Company plans to continue to actively pursue financing alternatives, but there can be no assurance that
it will obtain the necessary funding in the future when needed.

The
Company’s management concluded that its recurring losses from operations and the fact that it has not generated significant revenue
or positive cash flows from operations raise substantial doubt about its ability to continue as a going concern for the next 12 months
from the date of filing this Audit Report for the year ended December 31, 2025. The Company’s auditors also included an
explanatory paragraph in its report on our financial statements as of and for the year ended December 31, 2025 with respect to
this uncertainty.

***Revenue
Recognition and Cost of Revenue***

The
Company generates revenue from the production and sale of ammunition, which includes shipping income. The Company recognizes revenue
according to Accounting Standard Codification – Revenue from Contract with Customers (“ASC 606”). When the customer
obtains control over the promised goods or services, the Company records revenue in the amount of consideration that it can expect to
receive in exchange for those goods and services. The Company applies the following five-step model to determine revenue recognition:

- Identification  of a contract with a customer
- Identification  of the performance obligations in the contact
- Determination  of the transaction price
- Allocation  of the transaction price to the separate performance allocation
- Recognition  of revenue when performance obligations are satisfied

The
Company only applies the five-step model when it is probable that it will collect the consideration it is entitled to in exchange for
the goods or services it transfers to the customer. At contract inception and once the contract is determined to be within the scope
of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance
obligations and assesses whether each promised good or service is distinct. The Company’s contracts contain a single performance
obligation, and the entire transaction price is allocated to the single performance obligation. The Company recognizes as revenues the
amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied
or as it is satisfied. Accordingly, The Company recognizes net revenues when the customer obtains control of its product, which typically
occurs upon shipment of the product from our warehouse or the performance of the service.

F-7

The
Company applies ASC 606, *Revenue from Contracts with Customers*, (ASC 606) utilizing the following allowable exemptions or practical
expedients:

- Portfolio  approach practical expedient relative to the estimation of variable consideration.
- Shipping  and handling practical expedient to account for shipping and handling activities that occur after control of the related good transfers  as fulfillment activities.
- Costs  of obtaining a contract practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred  if the amortization period of the asset is one year or less.
- Sales  taxes practical expedient to exclude sales taxes and other similar taxes from the transaction price.
- Significant  financing component practical expedient.

Substantially
all the Company’s sales are domestic and are made to customers under agreements which do not include rights of return or warranty
for the years ended December 31, 2025 and 2024. Revenue from product sales is recognized as net of discounts and estimated
returns.

Cost
of revenue includes the cost of purchased merchandise plus freight and any applicable delivery charges from the vendor to the Company.
Sales are to individual retail consumers through the Company’s ecommerce sales and wholesale distribution partners. The majority
of customers are resellers and direct-to-consumers primarily within the United States.

Cost
of revenues earned includes all finished material, supplies and raw materials, equipment rental, and freight.

| Total accounts receivable |  |
| --- | --- |
| January 1, 2024 | $1,825 |
| January 1, 2025 | $30,265 |
| December 31, 2025 | $51,889 |

***Contract
Liabilities***

As
of December 31, 2025 and 2024, the Company did not have any contract assets or contract liabilities arising from contracts
with customers other than customer deposits of $0 and $54,410, respectively. Customer deposits represent amounts received in advance
of the Company’s satisfaction of its performance obligations under customer contracts. These deposits will be recognized as revenue
when the related products are delivered or services are performed. All remaining performance obligations associated with these deposits
are expected to be satisfied within the following calendar year.

The
following table provides information about contract liabilities from contracts with customers.

|  |  |  |
| --- | --- | --- |
| Customer deposit | — | $54,410 |
| Total Contract Liabilities | — | $54,410 |

F-8

Significant
changes in the contract liabilities balance during the period are as follows:

|  |  |
| --- | --- |
| Balance, December 31, 2024 | $54,410 |
| Contracts with customers entered during the period | — |
| Contracts with customers canceled during the period | (54,410) |
| Balance, December 31, 2025 | $— |

***Use
of Estimates***

Management
uses estimates and assumptions in preparing its financial statements in accordance with U.S. GAAP. Those estimates and assumptions affect
the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements,
and revenues and expenses during the reporting period. The most significant estimates relate to the estimated determination of the allowance
for credit losses, allowance for obsolete inventory, warrant fair value and stock-based compensation. On an ongoing basis, management
evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value
of assets and liabilities.

***Segments***

In
November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07,
Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires enhanced disclosures about a public entity’s
reportable segments, including significant segment expense categories and expanded interim reporting requirements. The amendments are
effective for years beginning after December 15, 2023, and interim periods beginning after December 15, 2024. Early adoption is permitted.
The Company adopted ASU 2023-07 for the year ended December 31, 2024. The adoption of this standard did not have a material impact on
the Company’s financial statements.

In
November 2023, the FASB issued Accounting Standards Update ASC 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment
Disclosures. ASC 2023-07 requires public entities to disclose significant segment expense categories that are regularly provided
to the Chief Operating Decision Maker (“CODM”) and included in the measure of segment profit or loss, as well as the title
and position of the CODM. The amendments also require disclosure of all annual segment profit or loss and asset disclosures in interim
periods and provide expanded disclosure requirements for entities with a single reportable segment.

The
primary financial measures used by the CODM to evaluate performance and allocate resources are net income (loss) and operating income
(loss). The CODM uses net income (loss) and operating income (loss) to evaluate the performance of the Company’s ongoing operations
and as part of the Company’s internal planning and forecasting processes. Information on Net income (loss) and Operating income
(loss) is disclosed in the Statements of Operations. Segment expenses and other segment items are provided to the CODM on the same basis
as disclosed in the Statements of Operations.

The
CODM does not evaluate performance or allocate resources based on segment assets, and therefore such information is not presented in
the notes to the financial statements.

The
Company has determined that its current business and operations consist of one reporting segment.

***Cash***

Cash
includes cash on hand as of December 31, 2025 and 2024, the Company maintained an aggregate cash balance of $2,477,122
and $434,613, respectively, in two bank deposit accounts held at a single financial institution. Of this amount, $2,227,122 and
$184,613 exceeded the federally insured limit of $250,000 as of December 31, 2025 and 2024, respectively. There were no cash
equivalents as of December 31, 2025 and 2024.

The
Company has not experienced any losses in such accounts, and management believes it is not exposed to significant credit risk on its
cash balances.

***Accounts
Receivable, net***

Trade
accounts receivable are stated at the amount the Company expects to collect and do not bear interest. For its financial instruments subject
to credit risk, consisting of its receivables, the Company recognizes as an allowance its estimate of lifetime expected credit losses
under the current expected credit loss (CECL) model of ASC 326. The approach is based on the Company’s internal knowledge and historical
default rates over the expected life of the receivables and is adjusted to reflect current economic conditions. This evaluation takes
into account the customer’s ability and intention to pay the consideration when it is due along with incorporating changes in the
forward-looking estimates. If the expected financial condition of the Company’s customers were to improve, the allowances may be
reduced accordingly. Provisions to the allowances for credit losses are recorded in selling, general and administrative expenses. As
of December 31, 2025 and 2024, the Company determined that the vast majority of its accounts receivable were fully collectible
and, accordingly, did not record an allowance for credit losses.

F-9

***Inventories***

Inventories
are valued at the lower of cost and net realizable value, with cost determined using the weighted average cost method on a first-in first-out
basis. Net realizable value is defined as sales price less cost of completion, disposable and transportation. Production costs, including
labor and manufacturing overhead, are applied to finished goods based on estimated production capacity. Any excess production costs that
result from abnormally low production levels are expensed as incurred and included in cost of revenues.

The
Company evaluates inventory for excess or obsolescence and records provisions when necessary to reduce inventories to their net realizable
value. The reserve for excess or obsolete inventories was $20,105 as of December 31, 2025 and 2024.

***Property
and Equipment, Net***

The
Company states property and equipment at historical cost less accumulated depreciation and amortization. The Company computes depreciation
and amortization using the straight-line method at rates intended to depreciate the cost of assets over their estimated useful lives,
which are generally three to ten years. Upon retirement or sale of property and equipment, The Company removes the cost of the disposed
assets and related accumulated depreciation and amortization from the accounts, and any resulting gain or loss is credited or charged
to other income or expenses. The Company charges expenditures for normal repairs and maintenance to expenses as incurred.

The
Company capitalizes additions and expenditures for improving or rebuilding existing assets that extend the useful life. Leasehold improvements
made either at the inception of the lease or during the lease term are amortized over the shorter of their economic lives or the lease
term including any renewals that are reasonably assured.

Property
and equipment is stated at historical cost less accumulated depreciation. The estimated useful lives as follows:

| Asset Class | Useful Life (Years) |
| --- | --- |
| Vehicles | 3-6 |
| Leasehold improvements | 6-7 |
| Office furniture & fixtures | 7 |
| Tooling, machinery and equipment | 3-10 |

***Long-Lived
Assets***

Recoverability
of long-lived assets, including property and equipment and certain identifiable intangible assets are evaluated whenever events or circumstances
indicate that the carrying amount of an asset may not be recoverable. Factors considered important which could trigger an impairment
review include but are not limited to significant underperformance relative to historical or projected future operating results, significant
changes in the manner of use of the assets or the strategy for the overall business, significant decrease in the market value of the
assets and significant negative industry or economic trends. In the event the carrying amount of the long-lived assets may not be recoverable
based upon the existence of one or more of the indicators, the assets are assessed for impairment based on the estimated future undiscounted
cash flows expected to result from the use of the asset and its eventual deposition. If the carrying amount of an asset exceeds the sum
of the estimated future undiscounted cash flow, an impairment loss is recorded for the excess of the asset’s carrying amount over
its fair value. There was no impairment during the years ended December 31, 2025 and 2024.

F-10

***Fair
Value of Financial Instruments***

The
Company complies with ASC 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring
fair value in accordance with U.S. GAAP and expands disclosure requirements about fair value measurements. Under ASC 820, there are three
categories for the classification and measurement of assets and liabilities carried at fair value:

Level
1: Valuation based on quoted market prices in active markets for identical assets or liabilities. Since valuations are based on quoted
prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree
of judgment. Examples include publicly traded equity securities and publicly traded mutual funds that are actively traded on a major
exchange or over-the-counter market.

Level
2: Valuation based on quoted market prices of investments that are not actively traded or for which certain significant inputs are not
observable, either directly or indirectly. Examples include municipal bonds, where fair value is estimated using recently executed transactions,
bid asked prices and pricing models that factor in, where applicable, interest rates, bond spreads and volatility.

Level
3: Valuation based on inputs that are unobservable and reflect management’s best estimate of what market participants would use
as fair value. Examples include limited partnerships and private equity investments.

The
estimated fair value of cash, trade receivables, accounts payable, accrued expenses and other current liabilities are based on Level
1 inputs as the fair values approximate carrying amounts as of December 31, 2025 and 2024, based on the short-term nature
and maturity of these instruments.

The
fair value of the Company’s convertible notes payable, approximated the carrying value as of December 31, 2025. Factors
that the Company considered when estimating the fair value of its debt included market conditions and the terms of the debt. The level
of the debt would be considered as Level 2.

The
estimated fair value of warrants shares is determined based on various valuation methodologies, including the Monte Carlo pricing model
and other appropriate valuation techniques. These methodologies consider underlying economic factors that influenced which of these events
would occur, when they were likely to occur, and the specific terms that would be in effect at the time (i.e., stock price, exercise/conversion
price, etc.). Probabilities were assigned to each variable such as the timing and pricing of events over the term of the instruments
based on management projections.

***Equity
Classified Warrants***

The
Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s
specific terms and applicable authoritative guidance in ASC 480 - *Distinguishing Liabilities from Equity* (“ASC 480”)
and ASC 815 - *Derivatives and Hedging* (“ASC 815”). The Company’s assessment considers whether the warrants are
freestanding financial instruments pursuant to ASC 480, whether they meet the definition of a liability pursuant to ASC 480, and whether
the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the
Company’s own common stock and whether the warrant holders could potentially require “net cash settlement” in a circumstance
outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of
professional judgment, is conducted at the time of warrant issuance.

The
issuance of warrants in conjunction with convertible debt (see Note 10) and the issuance of warrants to investors and placement
agents (see Note 12) qualify for the derivative scope exception under ASC 815 and are therefore presented as a component of Stockholders’
Equity on the balance sheets without subsequent fair value re-measurement.

***Net
loss per share***

Basic
Earnings Per Share is computed by dividing net income available to common shareholders by the weighted average shares outstanding during
the period. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue shares,
such as stock options, warrants, and unvested restricted stock units, were exercised and converted into common shares and the impact
would not be antidilutive. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average shares
outstanding during the period, increased by the number of additional shares that would have been outstanding if the potential shares
had been issued and were dilutive. Contingently issuable shares are included in basic net loss per share only when there is no circumstance
under which those shares would not be issued.

F-11

***Advertising***

Advertising
and marketing costs are expensed as incurred. During the years ended December 31, 2025 and 2024, advertising costs incurred
by the Company totaled $2,000 and $8,098, respectively, and are included in selling, general and administrative expenses
in the accompanying statements of operations.

**Deferred
Financing Costs**

Deferred
financing costs relating to the Company’s convertible notes payable are deferred and amortized ratably over the life of the debt
using the straight-line method. Deferred financing costs are included as an addition to interest expense on the of statements of operations
and are included in Convertible Notes Payable, net on the balance sheets.

***Shipping
and Handling Costs***

The
Company accounts for shipping and handling activities as fulfillment activities. As such, the Company does not evaluate shipping and
handling as promised services to its customers. Shipping and handling costs are included in cost of revenues in the accompanying statements
of operations.

***Leases***

The
Company is a lessee in multiple noncancelable operating and financing leases. If the contract provides the Company with the right to
substantially all the economic benefits and the right to direct the use of the identified asset, it is generally considered to be or
contain a lease. Right-of-Use (ROU) assets and lease liabilities are recognized at the lease commencement date based on the present value
of the future lease payments over the expected lease term. The ROU asset is also adjusted for any lease prepayments made, lease incentives
received, and initial direct costs incurred.

The
lease liability is initially and subsequently recognized based on the present value of its future lease payments. Variable payments are
included in the future lease payments when those variable payments depend on an index or a rate. Increases (decreases) to variable lease
payments due to subsequent changes in an index or rate are recorded as variable lease expense (income) in the future period in which
they are incurred.

The
discount rate used is the implicit rate in the lease contract, if it is readily determinable, or the Company’s incremental borrowing
rate. The Company uses the incremental borrowing rate based on the information available at the commencement date for all leases. The
Company’s incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow
an amount equal to the lease payments under similar terms and in a similar economic environment.

The
ROU asset for operating leases is subsequently measured throughout the lease term at the amount of the remeasured lease liability (i.e.,
present value of the remaining lease payments), plus unamortized initial direct costs, plus (minus) any prepaid (accrued) lease payments,
less the unamortized balance of lease incentives received, and any impairment recognized. Operating leases with fluctuating lease payments:
For operating leases with lease payments that fluctuate over the lease term, the total lease costs are recognized on a straight-line
basis over the lease term. The ROU asset for finance leases is amortized on a straight-line basis over the economic life of the asset
as the financing leases include an option to purchase the underlying asset that the Company is reasonably certain to exercise

For
all underlying classes of assets, the Company has elected the practical expedient to not recognize ROU assets and lease liabilities for
short-term leases that have a lease term of 12 months or less at lease commencement. The Company recognizes short-term lease cost on
a straight-line basis over the lease term.

***Stock-Based
Compensation***

The
Company accounts for stock awards issued under ASC 718, *Compensation – Stock Compensation*. Under ASC 718, stock-based compensation
cost is measured at the grant date, based on the estimated fair value of the award.

Stock-based
compensation is recognized as an expense over the employee’s requisite vesting period and over the non-employee’s period
of providing goods or services. The fair value of each stock option or warrant award is estimated on the date of grant using the Black-Scholes
option valuation model.

F-12

***Income
Taxes***

The
Company accounts for income taxes in accordance with ASC Topic 740, *Income Taxes.* Deferred income taxes are recorded for the expected
tax consequences of temporary differences between the basis of assets and liabilities for financial reporting purposes and amounts recognized
for income tax purposes. As of December 31, 2025 and 2024, the Company recorded a valuation allowance equal to the full
recorded amount of its net deferred tax assets since it is more-likely-than-not that benefits from its deferred tax assets will not be
realized. The valuation allowance is reviewed quarterly and is maintained until sufficient positive evidence exists to support its reversal.

The
Company recognizes the impact of an uncertain tax position if the position will more likely than not be sustained upon examination by
a taxing authority, based on the technical merits of the position. The Company’s policy is to record interest and penalties related
to income taxes as part of its income tax provision. As of December 31, 2025 and 2024, the Company had no unrecognized tax benefits
and as such, no liability, interest or penalties were required to be recorded. The Company does not expect this to change significantly
in the next twelve months.

Income
taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future
tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and
their respective tax bases and operating losses. Deferred tax assets and liabilities are measured using enacted tax rates in effect for
the year in which those temporary differences are expected to be recover or settled. The effect on deferred tax assets and liabilities
of a change in tax rates is recognized in income in the period that includes the enactment date. In assessing the realizability of deferred
tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.
The ultimate realization of deferred tax assets is entirely dependent upon the generation of future taxable income during the periods
in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, projected
future taxable income, and tax planning strategies in making this assessment.

The
Company files income tax returns in the U.S. federal jurisdiction and the State of Maryland.

***Accounting
Pronouncements***

***Recently
Issued and Adopted Pronouncements***

In
November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07,
Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. We are also a “smaller reporting company,”
as defined in the Exchange Act. We may continue to be a smaller reporting company even after we are no longer an emerging growth company.
We may take advantage of certain of the scaled disclosures available to smaller reporting companies and will be permitted to do so for
so long as (i) our voting and non-voting common stock held by non-affiliates is less than $250.0 million measured on the last business
day of our second fiscal quarter, or (ii) our annual revenue is less than $100.0 million during the most recently completed fiscal year
and our voting and non-voting common stock held by non-affiliates is less than $700.0 million measured on the last business day of our
second fiscal quarter. The amendments also require disclosure of all annual segment profit or loss and asset disclosures in interim periods
and provide expanded disclosure requirements for entities with a single reportable segment.

ASU
2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024. The Company
adopted ASU 2023-07 for its year ended December 31, 2024, in accordance with the required effective date for non-accelerated filers.
The adoption did not impact the Company’s financial position, results of operations, or cash flows; however, it resulted in enhanced
segment disclosures in the notes to the financial statements in accordance with ASC 280, *Segment Reporting*. These enhancements
include the identification of significant segment expense categories, disclosure of the measures of segment profit or loss used by the
Chief Operating Decision Maker (“CODM”), related reconciliations to the most comparable GAAP measure, and expanded disclosures
for entities with a single reportable segment.

In
December 2023, the FASB issued ASU 2023-09*, Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. The ASU requires
that an entity disclose specific categories in the effective tax rate reconciliation as well as reconciling items that meet a quantitative
threshold. Further, the ASU requires additional disclosures on income tax expense and taxes paid, net of refunds received, by jurisdiction.
The new standard is effective for annual periods beginning after December 15, 2024 on a prospective basis with the option to apply it
retrospectively. Early adoption is permitted. The Company adopted ASC 2023-09 for the year ended December 31, 2025, and applied
the new disclosure requirements prospectively to the current annual period. Prior period disclosures have not been adjusted to reflect
the new disclosure requirements. For additional information, see Note 19 “Income Taxes” to the financial statements.

***Recently
Issued but Not Yet Adopted Accounting Pronouncements***

In
November 2024, the FASB issued ASU 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures* (Subtopic 220-40): Disaggregation of Income Statement Expenses to expand the disclosure requirements for certain costs and expenses.
In January 2025, FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures
(Subtopic 220-40): Clarifying the Effective Date, which clarified the effective date of ASU 2024-03 as periods beginning after December
15, 2026 for annual reporting, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early
adoption is permitted. The Company is currently evaluating the impact this standard will have on its financial statements.

In
November 2024, the FASB issued ASU 2024-04, *Debt—Debt with Conversion and Other Options* (Subtopic 470-20): Induced Conversions
of Convertible Debt Instruments to improve the relevance and consistency in application of the induced conversion guidance in Subtopic
470-20, Debt - Debt with Conversion and Other Options. The amendments in this ASU are effective for all entities for annual reporting
periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted
as of the beginning of the annual reporting period for all entities that have adopted the amendments in Update 2020-06, Debt—Debt
with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic
815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The Company is currently evaluating the
impact this standard will have on its financial statements.

### **NOTE 3 — RESTATEMENT**

During
the preparation of our financial statements for the year ended December 31, 2025, we identified errors related to (i) the incorrect number
of warrants used to calculate the debt discount associated with warrants issued in conjunction with convertible debt and (ii) the Company
determined that certain inventory units had a net realizable value below recorded cost. The warrant error affected the allocation of
proceeds between debt and equity, resulting in adjustments to the debt discount, interest expense, and Additional Paid-in Capital. The
inventory valuation error impacted inventory, cost of goods sold, and retained earnings in the related periods. As a result, we restated
our previously issued financial statements for the year ended December 31, 2024.

The
following tables present the effect of the Restatement Items on the Company’s balance sheet, statement of operations, and cash
flow for the year ended December 31, 2024.

F-13

**FIRST BREACH, INC.**

### BALANCE SHEETS

_(as restated)_

|  |  |  |  |
| --- | --- | --- | --- |
| Assets |  |  |  |
| Current assets: |  |  |  |
| Cash | $434,613 | - | $434,613 |
| Accounts receivable | 30,265 | - | 30,265 |
| Inventories, net | 1,999,982 | (154,000 | 1,845,982 |
| Prepaid and other current assets | 44,081 | - | 44,081 |
| Total current assets | 2,508,941 | (154,000 | 2,354,941) |
| Property and equipment, net | 9,483,383 | - | 9,483,383 |
| Right-of-use assets | 1,616,052 | - | 1,616,052 |
| Other assets | 53,625 | - | 53,625 |
| Total assets | $13,662,001 | $(154,000 | $13,508,001) |
| Liabilities and stockholdersw’ equity |  |  |  |
| Current liabilities: |  |  |  |
| Accounts payable | $1,852,202 | - | $1,852,202 |
| Accrued liabilities | 358,906 | - | 358,906 |
| Accrued liabilities, related party | 513,614 | - | 513,614 |
| Employee loan payable, related party | 121,739 | - | 121,739 |
| Contract liabilities | 54,410 | - | 54,410 |
| Operating lease liability - current portion | 344,177 | - | 344,177 |
| Financing lease liability - current portion | 712,795 | - | 712,795 |
| Total current liabilities | 3,957,843 | - | 3,957,843 |
| Long-term liabilities: |  |  |  |
| Convertible notes payable, net of current portion | 868,788 | 602,648 | 1,471,436 |
| Opertaing lease liability -net of current portion | 1,361,137 | - | 1,361,137 |
| Financing lease, net of current portion | 1,607,982 | - | 1,607,982 |
|  | - | - | - |
| Total liabilities | 7,795,750 | 602,648 | 8,398,398 |
| Commitments and Contingencies (Note 16) |  |  |  |
| Stockholders’ Equity: |  |  |  |
| Common stock, $0.0001 par value, 100,000,000 authorized, 44,500,111 issued and outstanding as of December 31, 2024 | 3,778 | - | 3,778 |
| Additional paid- in capital | 27,189,689 | (662,863 | 26,526,826 |
| Accumulated deficit | (21,327,216) | (93,785 | (21,421,001)) |
| Total stockholders’ equity | 5,866,251 | (756,648 | 5,109,603) |
| Total liabilities and stockholders’ equity | $13,662,001 | $(154,000 | $13,508,001) |

F-14

**FIRST BREACH, INC.**

### STATEMENT OF OPERATIONS

_(Restated)_

|  |  |  |  |
| --- | --- | --- | --- |
| Net revenues | $773,870 | - | $773,870 |
| Cost of revenues | 2,081,004 | 154,000 | 2,235,004 |
| Net loss associated with liquidation of raw materials | 943,278 |  | 943,278 |
| Gross margin | (2,250,412) | $(154,000 | (2,404,412)) |
| Operating expenses: |  |  |  |
| Sales, general and administrative | 2,836,942 | - | 2,836,942 |
| Total operating expenses | 2,836,942 | - | 2,836,942 |
| Loss from operations | (5,087,354) | (154,000 | (5,241,354)) |
| Other expenses, net: |  |  |  |
| Interest expense, net | (851,945) | 60,215 | (791,730) |
| Other expense | (41,050) | - | (41,050) |
| Total other expenses, net | (892,995) | 60,215 | (832,780) |
| Net loss before income taxes | (5,980,349) | (93,785 | (6,074,134)) |
| Income tax provision |  |  |  |
| Net loss | $(5,980,349) | $(93,785 | $(6,074,134)) |

F-15

**FIRST BREACH, INC.**

### STATEMENTS OF CASH FLOW

_(Restated)_

|  |  |  |  |
| --- | --- | --- | --- |
| Cash flows from operating activities: |  |  |  |
| Net loss | $(5,980,349) | (93,785 | $(6,074,134)) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |
| Stock-based compensation | 60,000 | - | 60,000 |
| Depreciation and amortization | 1,327,482 | - | 1,327,482 |
| Amortization of debt discount | 81,805 | (28,255 | 53,550 |
| Amortization of debt discount – warrant feature | 171,342 | (88,470 | 82,872 |
| Non-cash PIK interest | - | 28,255 | 28,255 |
| Right-of-use assets, net of lease liabilities | 12,290 | - | 12,290 |
| Changes in operating assets and liabilities: |  |  |  |
| Accounts receivable | (28,440) | - | (28,440) |
| Inventories | 882,453 | 154,000 | 1,036,453 |
| Prepaid and other current assets | 10,401 | - | 10,401 |
| Accounts payable | 1,194,423 | - | 1,194,423 |
| Accrued liabilities | 283,924 | - | 283,924 |
| Accrued liabilities, related party | 246,344 | - | 246,344 |
| Employee loan payable, related party | 121,739 | - | 121,739 |
| Contract liabilities | 54,410 | - | 54,410 |
| Net cash used in operating activities | (1,562,176) | (28,255 | (1,590,431)) |
| Cash flows from investing activities: |  |  |  |
| Capitalized expenditures | (190,390) | - | (190,390) |
| Net cash used in investing activities | (190,390) | - | (190,390) |
| Cash flows from financing activities: |  |  |  |
| Proceeds from convertible notes payable | 2,000,000 |  | 2,000,000 |
| Principal payments on financing lease | (596,822) | 28,255 | (568,567) |
| Proceeds from issuance on equity offerings | 791,000 |  | 791,000 |
| Stock issuance costs | (56,000) |  | (56,000) |
| Net cash provided by financing activities | 2,138,178 | 28,255 | 2,166,433 |
| Net change to cash | 385,612 | - | 385,612 |
| Cash at beginning of year | 49,001 |  | 49,001 |
| Cash at end of year | $434,613 | - | $434,613 |

The
following adjustments were recorded to correct errors identified in the previously issued financial statements:

**(a)** Adjustment in the amount of $154,000 to reduce inventory to net realizable value, as certain inventory units had a net realizable
value below their recorded cost.

**(b)** Adjustment in the amount of $60,215 to correct the number of warrants used in calculating the debt discount associated with warrants
issued in conjunction with convertible debt, which resulted in an overstatement of the debt discount and additional paid-in
capital.

**(c)** Reclassification
adjustment in the amount of $28,255 between debt discount and principal payments related to financing leases to properly present the
amounts.

**(d)** Reclassification in the
amount of $28,255 of non-cash PIK interest to be consistent with current year reporting.

F-16

### **NOTE 4 —** **INVENTORIES**

Inventories
consisted of the following at:

|  |  |  |
| --- | --- | --- |
| Finished products | $319,131 | $275,617 |
| Raw materials | 472,863 | 1,588,930 |
| Work in progress | 146,470 | 1,540 |
| Inventory, gross | 938,464 | 1,866,087 |
| Allowance for obsolete inventory | (20,105) | (20,105) |
| Total inventory | $918,359 | $1,845,982 |

*Net
Loss from Liquidation of Raw Materials*

The
net loss on liquidation of raw materials for the years ended December 31, 2025 and 2024 was $684,960 and $943,278,
respectively, attributable to the liquidation of certain raw material inventory outside the normal course of operations to support
operating cash flow and working capital management, which resulted in proceeds below the inventory’s carrying value.

### **NOTE 5 — PREPAID ASSETS**

Prepaid
assets consist of the following at:

|  |  |  |
| --- | --- | --- |
| Prepaid insurance | 35,389 | 2,978 |
| Prepaid other | 10,803 | — |
| Equipment deposits | — | 41,103 |
|  | $46,192 | $44,081 |

### **NOTE 6 — PROPERTY AND EQUIPMENT, NET**

Property
and equipment, net consist of the following at:

| Classification |  |  |
| --- | --- | --- |
| Vehicles | $340,210 | $335,218 |
| Leasehold improvements | 1,656,123 | 1,656,123 |
| Office furniture & fixtures | 60,328 | 57,362 |
| Tooling, machinery and equipment | 9,876,922 | 9,865,708 |
| Total property and equipment | 11,933,583 | 11,914,411 |
| Less: Accumulated depreciation and amortization | (3,731,626) | (2,431,028) |
| Property and equipment, net | $8,201,957 | $9,483,383 |

Depreciation
and amortization expense was $1,332,393 and $1,327,482 for each of the years ended December 31, 2025 and 2024, respectively.

F-17

### **NOTE 7 — ACCRUED LIABILITIES**

Accrued
liabilities consisted of the following at:

|  |  |  |
| --- | --- | --- |
| Accrued outstanding lease payments | $22,439 | $171,919 |
| Accrued professional fees | 106,120 | 54,662 |
| Accrued utilities | 10,991 | — |
| Accrued employee compensation | 25,109 | 32,325 |
| Accrued contractor costs | 267,000 | 100,000 |
|  | $431,659 | $358,906 |

### **NOTE 8 — OPERATING LEASES**

On
March 18, 2021, the Company entered into a lease agreement with New Heights Industrial Park, LLC for a new office and manufacturing space
totaling 71,500 square feet in Hagerstown, Maryland. The lease commenced upon the Bureau of Alcohol, Tobacco, Firearms and Explosives
(ATF) manufacturing certification received on May 22, 2022, and shall expire 84 months thereafter. The initial monthly rent is $31,877
 with annual increases of 3% per annum. The lease agreement grants the Company two successive five-year extension options,
with rent for each extension term commencing at 103% of the prior year’s annual rent, subject to timely notice and the absence
of default.

Components
of lease expense were as follows for the twelve months ended:

|  |  |  |
| --- | --- | --- |
| Operating lease right-of-use lease asset | $2,465,275 | $2,465,275 |
| Accumulated amortization | (1,193,637) | (849,223) |
| Net balance | $1,271,638 | $1,616,052 |
| Lease liability, current portion | $372,665 | $344,177 |
| Lease liability, long term | 988,471 | 1,361,137 |
| Total operating lease liabilities | $1,361,136 | $1,705,314 |
| Weighted Average Remaining Lease Term – operating leases | 40 months | 52 months |
| Weighted Average Discount Rate – operating leases | 4.5% | 4.5% |

Future
minimum lease payments under this operating lease as of December 31, 2025, were as follows:

| 2026 | 426,355 |
| --- | --- |
| 2027 | 439,146 |
| 2028 | 452,320 |
| 2029 | 152,252 |
| Total lease payments | 1,470,073 |
| Less imputed interest | (108,937) |
| Maturities of lease liabilities | $1,361,136 |

Total
operating lease expense for the years ended December 31, 2025, and 2024, was $414,172, and is recorded in selling, general,
and administrative expenses in the accompanying statements of operations.

Supplemental
cash flows information related to leases was as follows:

|  |  |  |
| --- | --- | --- |
| Cash paid for amounts included in the measurement of lease liability: |  |  |
| Operating cash flows from operating lease | $413,937 | $401,881 |

F-18

### **NOTE 9 — FINANCING LEASES**

On
February 8, 2023, the Company entered into an equipment financing agreement with Utica Leaseco, LLC (“Utica”), pursuant to
a Master Lease Agreement, (“Master Lease Agreement”), between Utica, as lessor, and the Company as the lessee (collectively,
the “Lessee”). Under the Master Lease Agreement, Utica loaned an aggregate of $1,800,000 for certain of the Company’s
equipment listed therein (the “Equipment”), which it leases to the Lessee. The initial term of the Master Lease Agreement
was for 51 months. Under the Master Lease Agreement, the Lessee agreed to pay an initial monthly rent of $50,040 . The Lessor
will have the option to charge Lessee a surcharge of 1% of the monthly payment amount per month for every 0.25% that the prime rate of
Renasant Bank exceeds 5.5%.

On
August 31, 2023, the parties entered into a second equipment schedule to the Master Lease Agreement, pursuant to which Utica loaned an
aggregate of $1,500,000 for certain equipment listed therein. The term of the second equipment schedule is 48 months and agreed monthly
payments are $44,250. The Lessor will have the option to charge Lessee a surcharge of 1% of the monthly payment amount per month for
every 0.25% that the prime rate of Renasant Bank exceeds 8.25%.

If
any rent is not received by Utica within five (5) calendar days of the due date, the Lessee shall pay a late charge equal to ten (10%)
percent of the amount. In addition, in the event that any payment is not processed or is returned on the basis of insufficient funds,
upon demand, the Lessee shall pay Utica a charge equal to five percent (5%) of the amount of such payment. The Lessee is also required
to pay an annual administration fee of $5,000 for each agreement.

Upon
the expiration of the term of the Master Lease Agreement, the Lessee is required to pay, together with all other amounts then due and
payable under the Master Lease Agreement, in cash, an end of term buyout price equal to the lesser of: (a) $90,000 for the initial lease
and $75,000 for the second lease (five percent (5%) of the Total Invoice Cost (as defined in the Master Lease Agreement)).

Provided
that no default under the Master Lease Agreement has occurred and is continuing beyond any applicable grace or cure period, the Lessee
has an early buy-out option with respect to all but not less than all of the Equipment, upon the payment of any outstanding rental payments
or other fees then due, plus an additional amount set forth in the Master Lease Agreement, which represents the anticipated fair market
value of the Equipment as of the anticipated end date of the Master Lease Agreement. In addition, the Lessee shall pay Utica an administrative
charge to be determined by Utica to cover its time and expenses incurred in connection with the exercise of the option to purchase, including,
but not limited to, reasonable attorney fees and costs. Furthermore, upon the exercise by the Lessee of this option to purchase the Equipment,
the Lessee shall pay all sales and transfer taxes and all fees payable to any governmental authority as a result of the transfer of title
of the Equipment to Lessee.

F-19

In
connection with the Master Lease Agreement, the Lessee granted a security interest on all of its right, title and interest in and to:
(i) the Equipment, together with all related software (embedded therein or otherwise) and general intangibles, all additions, attachments,
accessories and accessions thereto whether or not furnished by the supplier; (ii) all accounts, chattel paper, deposit accounts, documents,
other equipment, general intangibles, instruments, inventory, investment property, letter of credit rights and any supporting obligations
related to any of the foregoing; (iii) all books and records pertaining to the foregoing; (iv) all property of such Lessee held by Utica,
including all property of every description, in the custody of or in transit to Utica for any purpose, including safekeeping, collection
or pledge, for the account of such Lessee or as to which such Lessee may have any right or power, including but not limited to cash;
and (v) to the extent not otherwise included, all insurance, substitutions, replacements, exchanges, accessions, proceeds and products
of the foregoing.

At
December 31, 2025 and 2024, supplemental balance sheet information related to the collateralized assets of the finance
leases was as follows:

|  |  |  |
| --- | --- | --- |
| Equipment | $9,000,000 | $9,000,000 |
| Accumulated depreciation | (2,540,323) | (1,640,323) |
|  | $6,459,677 | $7,359,677 |

The
following table presents information about the amount and timing of the liability arising from the Company’s financing lease as
of December 31, 2025:

| Future Minimum Financing Lease Payments |  |
| --- | --- |
| 2026 | $893,710 |
| 2027 | 843,321 |
| Total undiscounted financing lease payments | 1,737,031 |
| Unamortized debt discount | (75,499) |
| Financing lease liability – current portion | (893,710) |
| Present value of financing lease liability | $767,822 |
| Weighted average remaining lease term | 1.7 years |
| Weighted average discount rate | 22.7% |

### **NOTE 10 — CONVERTIBLE DEBT**