Filed 2025-03-31 · Period ending 2024-12-31 · 66,699 words · SEC EDGAR
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# Mitesco, Inc. (MITI) — 10-K **Filed:** 2025-03-31 **Period ending:** 2024-12-31 **Accession:** 0001185185-25-000257 **Source:** [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/802257/000118518525000257/) **Origin leaf:** 4a5e0ffd8eac025c4ec1fa1254c7515e4f34e7cf2e8405134c3ba68c2c58016b **Words:** 66,699 --- ** UNITED STATES** **SECURITIES AND EXCHANGE COMMISSION** **Washington, DC 20549** **FORM 10-K** ** ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** For the fiscal year ended December 31, 2024 OR ** TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** **For the transition period from to ** Commission File Number 000-53601 **MITESCO, INC.** (Exact Name of Registrant as Specified in its Charter) | Nevada | | 87-0496850 | | | (State Other Jurisdiction of Incorporation or Organization) | | (I.R.S. Employer Identification Number) | | | 505 Beachland Blvd., Suite 1377 Vero Beach,Florida32963 | | | (Address of principal executive offices) (Zip Code) | | **(844) 383-8689** (Registrants telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: | Title of each class | | Trading Symbol(s) | | Name of each exchange on which registered | | | N/A | | N/A | | N/A | | Securities registered pursuant to Section 12(g) of the Act: Common Stock, $0.01 Par Value Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T ( 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No Indicate by check mark whether the registrant is a large, accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of large, accelerated filer, accelerated filer, smaller reporting company, and emerging growth company in Rule 12b-2 of the Exchange Act. | Large accelerated filer | Accelerated filer | | | Non-accelerated filer | Smaller reporting company | | | | Emerging growth company | | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Indicate by check mark whether the registrant has filed a report on and attestation to its managements assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrants executive officers during the relevant recovery period pursuant to 240.10D-1(b). Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Yes No The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold as of June 30, 2024, the last business day of the registrants most recently completed second fiscal quarter, was $696,130. Solely for purposes of this calculation, the officers and directors and holders of five percent (5%) of any class of voting securities of the Company are considered affiliates. As of March 31, 2025, the registrant had outstanding **9,774,332** shares of common stock. DOCUMENTS INCORPORATED BY REFERENCE: None **MITESCO, INC.** | | | PAGE | | | PART I | | | | | | | | | | Item 1. | Business | 7 | | | Item 1A. | Risk Factors | 11 | | | Item 1B. | Unresolved Staff Comments | 19 | | | Item 1C. | Cybersecurity | 20 | | | Item 2. | Properties | 20 | | | Item 3. | Legal Proceedings | 21 | | | Item 4. | Mine Safety Disclosures | 21 | | | | | | | | PART II | | | | | | | | | | Item 5. | Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 22 | | | Item 6. | Selected Financial Data | 26 | | | Item 7. | Managements Discussion and Analysis of Financial Condition and Results of Operations | 26 | | | Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | 31 | | | Item 8. | Financial Statements and Supplementary Data | 32 | | | Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 67 | | | Item 9A. | Controls and Procedures | 67 | | | Item 9B. | Other Information | 68 | | | Item 9C. | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | 68 | | | | | | | | PART III | | | | | | | | | | Item 10. | Directors, Executive Officers, and Corporate Governance | 69 | | | Item 11. | Executive Compensation | 73 | | | Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 75 | | | Item 13. | Certain Relationships and Related Transactions, and Director Independence | | | | Item 14. | Principal Accountant Fees and Services | | | | | | | | | PART IV | | | | | | | | | | Item 15. | Exhibits | 76 | | | Item 16. | Form 10-K Summary | 81 | | **SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION** As used in this Annual Report on Form 10-K (this Annual Report), unless indicated or the context requires otherwise, the terms the Company, Mitesco or MITI refer to Mitesco, Inc., and its subsidiaries. In addition to historical information, this Annual Report contains forward-looking statements. The forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in such forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in the sections entitled Business, Risk Factors, and Managements Discussion and Analysis of Financial Condition and Results of Operations. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect managements opinions only as of the date hereof. We undertake no obligation to revise or release the results of any revision of these forward-looking statements. Readers should carefully review the risk factors described in this Annual Report and in other documents that we file from time to time with the Securities and Exchange Commission (the SEC or the Commission). You can identify forward-looking statements by terminology such as may, will, should, expects, plans, anticipates, believes, estimates, predicts, potential, proposed, intended, or continue or the negative of these terms or other comparable terminology. You should read statements that contain these words carefully, because they discuss our expectations about our future operating results or our future financial condition or state other forward-looking information. There may be events in the future that we are not able to accurately predict or control. You should be aware that the occurrence of any of the events described in these risk factors and elsewhere in this Annual Report could harm our business, results of operations and financial condition, and that upon the occurrence of any of these events, the trading price of our securities could decline. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, growth rates, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this Annual Report. We cannot give any guarantee that these plans, intentions, or expectations will be achieved. All forward-looking statements involve risks and uncertainties, and actual results may differ materially from those discussed in the forward-looking statements as a result of various factors, including those factors described in the Risk Factors section of this Annual Report. Moreover, new risks emerge from time to time, and it is not possible for our management to predict all risks, nor can we assess the impact of all risks on our business or the extent to which any risk, or combination of risks, may cause actual results to differ from those contained in any forward-looking statements. All forward-looking statements included in this Annual Report are based on information available to us on the date of this Annual Report. Except to the extent required by applicable laws or rules, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained throughout this Annual Report. **Special Notice Regarding the Worldwide Covid-19 Crisis** During the fiscal year ended December 31, 2024, there were many uncertainties regarding the current Novel Coronavirus (COVID-19) pandemic, including the scope of scientific and health issues, the anticipated duration of the pandemic, and the extent of local and worldwide social, political, and economic disruption. The COVID-19 pandemic has had far-reaching impacts on many aspects of the operations of the Company, directly and indirectly, including on consumer behavior, customer store traffic, our people, and the market generally. During the year ended December 31, 2024, we made the determination that COVID-19 possessed no continued serious risk to our employees and our business, and we returned to operating under pre-COVID-19 protocols. **Summary Risk Factors** *Our business and our ability to execute our business strategy are subject to a number of risks of which you should be aware of before you decide to invest in our Company. The following is a summary of our key risks. A more detailed description of each of the risks can be found below in section entitled**Risk Factors**.* *Risks Related to our Business* | | | We are in the initial stages of our present business plan and have a limited historical performance for you to base an investment decision upon, and we may never become profitable. | | 4 [Table of Contents](#TableOfContents) | | | Disruption or breach of our security measures or those of our third-party data center hosting facilities, cloud computing platform providers or third-party service partners, or the underlying infrastructure of the Internet, and unauthorized access to obtain customers data, our data or our IT systems, could lead to curtailment of our customers who may stop using our services, and we may incur significant reputational harm, legal exposure and liabilities, or a negative financial impact. | | | | | | | | | | The success of our business is dependent on subscription and renewal of our services by customers. | | | | | | | | | | We may be unable to attract and retain sufficient numbers of qualified personnel. | | | | | | | | | | We may become involved in legal proceedings. | | | | | | | | | | We may not manage our strategy effectively. Rapid technological change in our industry present us with significant risks and challenges. | | | | | | | | | | We are in an intensely competitive industry and there is no assurance we will be able to compete with our competitors who have greater resources than us. | | *Risks Related to our Financial Condition* | | | There is substantial doubt about our ability to continue as a going concern. | | | | | | | | | | If we are unable to generate significant revenue, we may need to raise additional capital which may not be available to us on acceptable terms or at all. | | | | | | | | | | We may incur additional debt in the future which may contain restrictive covenants. | | | | | | | | | | We have identified weaknesses in our internal controls, and we cannot provide assurances that these weaknesses will be effectively remediated or that additional material weaknesses will not occur in the future. | | | | | | | | | | The issuance of additional shares of our Common Stock, or securities convertible into shares of our Common Stock, may dilute the percentage ownership of our existing stockholders and may make it more difficult to raise additional capital. | | | | | | | | | | Our operating results and liquidity needs could be negatively affected by market fluctuations and economic downturns | | | | | | | | | | Settlements with various leaseholders and vendors have created obligations that may hinder our ability to finance future operations | | *Risks Related to Government Regulation* | | | | | | | | Privacy concerns and laws as well as evolving regulation of cloud computing, AI services, cross-border data transfer restrictions and other domestic regulations may limit the use and adoption of our services and adversely affect our business. | | | | | | | | | | Industry-specific regulations and other requirements and standards are evolving, and unfavorable industry-specific laws, regulations, interpretive positions or standards could harm our business. | | | | | | | | | | If the statutes and regulations in our industry change, we could be negatively impacted. | | ** *Risks Related to Acquisitions* | | | Acquisitions may subject us to liability with regard to the creditors, customers, and shareholders of the sellers. | | | | | | | | | | We may be unable to implement our strategy of acquiring companies. | | | | | | | | | | Future acquisitions may result in potentially dilutive issuances of equity securities, incurrence of additional indebtedness and increased amortization expenses. | | | | | | | | | | We face risks arising from acquisitions that we may pursue in the future. | | *Risks Related to our Management* | | | Our success is dependent, in part, on the performance and continued service of certain of our officers and directors. | | 5 [Table of Contents](#TableOfContents) *Related to Ownership of our Common Stock* | | | Shares eligible for future sale may have adverse effects on our share price. | | | | | | | | | | If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline. | | | | | | | | | | Our stock price has fluctuated in the past, has recently been volatile and may be volatile in the future, and as a result, investors in our Common Stock could incur substantial losses. | | | | | | | | | | Because we may issue preferred stock without the approval of our shareholders and have other anti-takeover defenses, it may be more difficult for a third party to acquire us and could depress our stock price. | | | | | | | | | | Offers or availability for sale of a substantial number of shares of our Common Stock may cause the price of our Common Stock to decline. | | | | | | | | | | We do not intend to pay any cash dividends on our Common Stock in the near future therefore investors will not be able to receive a return on their shares unless they sell the shares at a higher price than their purchase price. | | | | | | | | | | Our Common Stock is often thinly traded and may prevent you from selling at or near asking prices, if at all. | | *Risks Related to Cybersecurity* | | | If our information technology systems or data, or those of third parties upon which we rely, are or were compromised, or are perceived to have been compromised, we could experience adverse consequences, including but not limited to regulatory investigations or actions; litigation; fines and penalties; disruptions of our business operations; reputational harm; loss of revenue or profits; loss of customers or sales; and other adverse consequences. | | | | | | | | | | We face the risk of unauthorized access to or breaches of our information systems. | | | | | | | | | | Operations and Finances may be impacted by a cybersecurity breach of our information system. | | | | | | | | | | We face challenges in detection and response of cybersecurity breaches. | | **Additional Information** Our principal executive office is located at 505 Beachland Blvd., Suite 1-377, Vero Beach, Florida 32963. Our telephone number is (844) 383-8689. The SEC maintains an internet site on www.sec.gov where reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC are available. We file our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports with the SEC on the above-mentioned site. Our website is www.mitescoinc.com. The information contained therein or connected thereto is not intended to be incorporated into this filing. **Implications of Being a Smaller Reporting Company** We are a smaller reporting company as defined in the Exchange Act. We may take advantage of certain of the scaled disclosures available to smaller reporting companies so long as the market value of 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 most recently completed second fiscal quarter, or our annual revenue is less than $100.0 million during the most recently completed fiscal year and the market value of our Common Stock held by non-affiliates is less than $700.0 million measured on the last business day of our most recently completed second fiscal quarter. To the extent we take advantage of such reduced disclosure obligations, it may also make comparisons of our financial statements with other public companies difficult or impossible. 6 [Table of Contents](#TableOfContents) **** **PART I** **ITEM 1. BUSINESS** **Company Overview** Mitesco, Inc. (the Company, we, us, or our) was formed in the state of Delaware on January 18, 2012. On December 9, 2015, we restructured our operations and acquired Newco4pharmacy, LLC, a development stage company which sought to acquire compounding pharmacy businesses. As a part of the restructuring, we shut down our former business line. On April 24, 2020, we changed our name to Mitesco, Inc. In October 2023, the Company changed its domicile from Delaware to Nevada in order to effect reduced costs. From 2020 through 2022, our operations were focused on establishing medical clinics utilizing nurse practitioners under The Good Clinic name and development and acquisition of telemedicine technology. We opened our first The Good Clinic in Minneapolis, Minnesota in the first quarter of 2021 and had six operating clinics during the year ended December 31, 2022, with two additional sites under contract. In the fourth quarter of fiscal 2022, we made the strategic decision to close the entire clinic operation and release our staff due to a lack of profitability. The majority of the holders of Series D and F Preferred stock, notes payable and accounts payable discussed herein, were investors, lenders and vendors to the Company during the operation of the clinic business and have now received either restricted common stock, or the Series A Preferred shares in consideration of the cancelation of, or in exchange for, the previous obligations. The financial results and obligations are now accounted for as discontinued operations. For details see Debt Restructuring herein. **Current Business Operations** We are a holding company seeking to provide products, services and technology. In June 2024 we announced the formation of two (2) new wholly owned business units, Centcore, LLC (Centcore) that is providing data center services including cloud computing and application hosting, and Vero Technology Ventures, LLC (VTV), whose aim is to seek investment and acquisition opportunities, generally in the areas of cloud computing and data center related applications. Centcore has two (2) areas of focus. The first, generic data center services, is aimed at hosting applications for a specific user, sometimes referred to as managed services offerings or MSO, where the client moves the software licensed from various vendors, or internally developed, into our data center where we maintain the computing, communications and backup environment. The second focus involves hosting application software developed by software vendors, from which they will sell the use of the software by their end user clients on a cloud basis. By taking this approach, we gain the business of the vendor, and their clients, perhaps allowing us to grow at a faster rate with lower cost of sales. We have developed the Centcore Partner Program where we will help promote the software vendors who are hosting in our data centers. If we are successful helping the vendor grow his business, we will have provided a value added service, and benefit from increased utilization of our computing resources by not only the vendor, but also his new end user clients. Our initial focus for this area is on software providers who serve the infrastructure market doing design, engineering, construction and maintenance of significant assets. We desire to create life cycle relationships as the design, construction and operational life of these systems includes document management and performance modeling over years, often from 5 to 20 years. We have retained proven professionals in the data center, cyber security and infrastructure services areas to support our needs on a per hour basis, which we believe will allow us to control our costs relative to business activity, without significant staffing internally. We have also formed an Advisory Board where individuals with experience in business areas where we have interest have agreed to assist us, receiving a nominal issuance of restricted common stock, in consideration of their advice. VTV is currently involved with the formation of a new software development project aimed at applying artificial intelligence (A.I.) to the sales process for various businesses including residential real estate. There are several other projects in evaluation, generally aimed at software that would operate on a cloud computing platform such as that which the Company has in its Centcore Data Center. The VTV arm is actively reviewing potential early-stage cloud computing solution vendors and is developing its own A.I. based application set. It is currently in development of a new sales automation tool set deemed the Robo Agent application. This software is intended to utilize A.I. to promote more efficient sales and marketing within certain direct to consumer (D2C) markets, and with highly targeted market research. It expected early versions of this software to be available for evaluation in mid FY2025. There are several other projects in evaluation, generally aimed at software that would operate on a cloud computing platform such as that which the Company has in its Centcore Data Center. These may include joint venture or acquisition-oriented transactions, as well as internally developed software. 7 [Table of Contents](#TableOfContents) *Advisory Board* The Board of Directors has authorized the creation of a new Advisory Board whose participants shall include subject matter experts in certain business areas under consideration by the Company. These positions are non-executive and as such are not governed by Section 16 of the Securities Act. The compensation for the participants shall be $60,000 per year, paid through the issuance of restricted common stock. The per share valuation to be used shall be determined by the Board of Directors based on the market of the Companys common stock at the time of the appointment. For all appointments in FY2024 the valuation used was $.80 per share, resulting in the issuance of 75,000 shares of restricted common stock to each participant. The members of the advisory board do not have the authority to vote on matters brought to the board of directors and may only attend a meeting of the board of directors if they are invited. Also, the members of the advisory board are not bound by fiduciary duties and are not entitled to indemnification. **Competition** We are in the early stage of developing our data center business, and while we believe there is a very large, and growing market for our offerings, there are also many competitors with significant experience and client base, of varying size. We believe our technology and services approach will be able to compete with other technology and services providers. We face competition primarily from: | | In-house IT departments of our customers and potential customersprovide services for their respective organizations but typically need help scaling large technology environments and maximizing the value from their cloud investments, especially when speed, cost and innovation are key constraints. | | | | Traditional global IT systems integrators, such as Accenture, Atos, Capgemini, Cognizant, Deloitte, DXC Technology and IBM, offer consulting and outsourcing, in a labor-intensive model, for large enterprise customers. Many of these businesses largely support legacy technologies and, where cloud capabilities exist, legacy revenue streams disincentivize these companies from fully embracing cloud technologies. | | | | Cloud service providers and digital systems integratorsprovide either consultation and implementation services for digital workflows or cloud services for a single cloud vendor. The solutions offered by these companies are often narrow in scope and are not well-suited for companies with complex hybrid, multi-cloud objectives. | | | | Regional and national managed services providersuse a local go-to-market approach, and provide cloud services such as AWS, Microsoft Azure and Google Cloud Platform (GCP). | | | | Colocation providers, such as Equinix, CyrusOne and QTS, provide secure environments for hardware and access to network connectivity. We believe that these companies provide limited services differentiation, and their customers do not benefit from the economics of cloud-based technologies. | | We believe the principal competitive factors in our market include, but are not limited to: | | Focus on the cloud | | | | Technology and services expertise | | | | Customer experience | | | | Speed of innovation | | | | Strength of relationships with technology partners | | | | Automation and scalability | | | | Standardized operational processes | | | | Geographic reach | | | | Brand recognition and reputation | | | | Price | | We aspire to compare favorably on the basis of the factors listed above. However, many of our competitors have: substantially greater financial, technical and marketing resources; relationships with large vendor partners; larger global presence; larger customer bases; longer operating histories; greater brand recognition; and more established relationships in the industry than we do. Furthermore, new entrants not currently considered to be competitors may enter the market through acquisitions, partnerships or strategic relationships. We cannot be assured that we will be able to compete in any of the markets in which we intend to operate. This could cause you to lose your investment. 8 [Table of Contents](#TableOfContents) **Our Competitive Strengths** We believe the following strengths and market dynamics provide us with a competitive advantage. As additional capital is available to the Company, we will pursue the acquisition of existing healthcare services and technology business, and we may consider opening new clinics using our revised and less capital-intensive approach going forward: | | Experienced team - with a proven track record of growing businesses both organically and through acquisition. | | | | Public company experience solid knowledge of the equity markets and participants in the financing of public companies. | | | | Compliance experience extensive securities law experience and in SEC reporting. | | | | Knowledge of audit and accounting requirements any acquisition into a publicly held company must be able to be fully audited according to PCOAB standards. | | | | We have an Advisory Board which includes participants with significant experience and who are compensated through the issuance of restricted stock so as to align their interests with those of the shareholders. | | **Management/Human Capital** As of the date of this Annual Report, we have no full-time employees, rather our needs are being met from the efforts of our directors and a number of individuals under consulting or advisory agreements including accounting, SEC reporting, legal, sales, systems operation and software development. We do not now, or expect in the near term, to provide any benefits to our employees, advisors or consultants. We have historically provided incentive stock options and other equity incentives to officers, directors and key employees to provide ownership and alignment of interests with our shareholders, however in January 2024, the Board of Directors terminated the Mitesco Omnibus Securities and Incentive Plan so currently it has no active stock incentive plans. During FY2024 the Company compensated members of its Board of Directors and its Advisory Board with restricted stock issuances and expects to continue that practice going forward based on performance. We believe that the Companys management team will remain relatively small in the near term and should consist of a team with experience in 1) public company accounting and finance, 2) software and systems, 3) brand marketing, and 4) public equities financing. As of December 31, 2024, none of our employees were represented by a union or covered by a collective bargaining agreement. We have not experienced any work stoppages, and we consider our relationship with our employees to be good. **Government Regulation** We are subject to a wide range of laws, regulations, and legal requirements in the U.S., including those that may apply to our products and online services offerings, and those that impose requirements related to user privacy, data storage and protection, cybersecurity, and as the role of regulation evolves, AI. For information about governmental regulations applicable to our business, refer to Risk Factors included elsewhere in this filing. If there are changes in laws, regulations, or administrative or judicial interpretations, we may have to change our future business practices, or our business practices could be challenged as unlawful, which could have a material adverse effect on our business, financial condition, and results of operations. See the description below for certain of the laws, regulations, or administrative or judicial interpretations that we are currently subject to and the Risk Factors section. **Recent Developments** **** **FY2024 Debt Restructuring** From FY2021 until late FY2022 the Company invested in an operating subsidiary, The Good Clinic, which was developing a series of primary care healthcare facilities. In late FY2022, as a result of a lack of adequate revenues and limited funding, it ceased operations. As of June 30, 2024, the Company had over $30 million in senior securities, notes and accounts payable related to that discontinued operation. In order to clear those obligations management began a restructuring which involved negotiations to reduce the overall debt, converting the obligations of certain accredited institutional investors into a newly created Series A Amortizing Preferred stock (Series A Preferred), and others into restricted common stock using a price per share of $4.00. As of the date of this filing it has converted over $25 million of its obligations, representing over $20 million of its senior securities, and over $2 million of notes and accounts payable, into 2,712,302 of restricted Common Stock, and 538,879 shares of Series A Preferred stock. The Series A Preferred stock is held by six (6) accredited institutional investors, while over 40 holders of obligations of the Company elected to receive common stock using the $4 per share valuation. Additionally, effective December 31, 2024, the Company has entered into Obligation Exchange Agreements pursuant to which it has converted $580,132, including $32,132 of principal and interest, of its 2024 Bridge Notes into Series A Preferred shares, which resulted in the issuance of 23,206 shares of Series A Preferred shares to three (3) of its institutional investors. This extinguishes $580,132 of its short-term debt. As of the date of this filing all FY2024 bridge notes have been extinguished. 9 [Table of Contents](#TableOfContents) As part of the restructuring, the Company agreed to register shares of Common Stock issued and to be issued to Series A Preferred Stockholders. *Discontinued Operations and the 2023 Clinic Related Debt Exchange Agreement* On December 8, 2023, effective November 30, 2023, the Company sold the remaining assets of The Good Clinic, LLC to Leading Primary Care LLC, a company organized by Michael C. Howe, the former CEO of The Good Clinic, LLC for total consideration of approximately $2.5 million. Consideration consisted of cancelling existing notes payable and accrued interest owed to Mr. Howe in the amount of approximately $2.5 million. The Company recognized a contribution to capital on this transaction in the amount of approximately $2.5 million as Mr. Howe is a related party. On December 8, 2023, Mr. Howe also exchanged (i) 500,000 shares of Series D Preferred Stock with a stated value of approximately $0.5 million and accrued dividends of approximately $67,000, and (ii) approximately $25,000 (investment incentive of 65% applied only to the accrued salary portion of $38,000), for 655 shares of the Companys Series F Preferred Stock with a liquidation value of approximately $0.6 million. Other than the conversion of incentive of approximately $25,000, there was no gain or loss recorded on this transaction. **Smaller Reporting Company** We are subject to the reporting requirements of Section 13 of the Exchange Act, and subject to the disclosure requirements of Regulation S-K of the SEC, as a smaller reporting company. That designation will relieve us of some of the informational requirements of Regulation S-K. **Sarbanes-Oxley Act** Except for the limitations excluded by the JOBS Act discussed under the preceding heading Smaller Reporting Company, we are also subject to the Sarbanes-Oxley Act of 2002. The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures, and internal control, over financial reporting. The Sarbanes-Oxley Act created a strong and independent accounting oversight board to oversee the conduct of auditors of public companies and strengthen auditor independence. It also requires steps to enhance the direct responsibility of senior members of management for financial reporting and for the quality of financial disclosures made by public companies; establishes clear statutory rules to limit, and to expose to public view, possible conflicts of interest affecting securities analysts; creates guidelines for audit committee members appointment, compensation and oversight of the work of public companies auditors; management assessment of our internal controls; prohibits certain insiders from trading during pension fund blackout periods; requires companies and auditors to evaluate internal controls and procedures; and establishes a federal crime of securities fraud, among other provisions. In addition, we will be required to comply with the requirements of the Section 404 of the Sarbanes-Oxley Act when we cease to be an emerging growth company. We expect to incur significant expenses and devote substantial management effort toward ensuring compliance with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act. **Exchange Act Reporting Requirements** Section 14(a) of the Exchange Act requires all companies with securities registered pursuant to Section 12(g) of the Exchange Act, like we are, to comply with the rules and regulations of the SEC regarding proxy solicitations, as outlined in Regulation 14A. Matters submitted to shareholders at a special or annual meeting thereof or pursuant to a written consent will require us to provide our shareholders with the information outlined in Schedules 14A (where proxies are solicited) or 14C (where consents in writing to the action have already been received or anticipated to be received) of Regulation 14, as applicable; and preliminary copies of this information must be submitted to the SEC at least 10 days prior to the date that definitive copies of this information are forwarded to our shareholders. We are also required to file annual reports on Form 10-K and quarterly reports on Form 10-Q with the SEC on a regular basis, and will be required to timely disclose certain material events (e.g., changes in corporate control; acquisitions or dispositions of a significant amount of assets other than in the ordinary course of business; and bankruptcy) in a Current Report on Form 8-K. **Other Corporate Information** Our website is www.mitescoinc.com and our principal executive offices is located at 505 Beachland Blvd, Vero Beach, Florida 32963. Our telephone number is (844) 383 8689. We make available free of charge on our website our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports, as soon as reasonably practicable after we electronically file or furnish such materials to the SEC. Our website (www.mitescoinc.com) and the information contained therein or connected thereto are not intended to be incorporated into this Form 10-K. Our filings are also available through the SEC website www.sec.gov. 10 [Table of Contents](#TableOfContents) **ITEM 1A. RISK FACTORS** **RISK FACTORS** *Investing in our securities involves a high degree of risk. You should carefully consider the risks described below, as well as the other information in this Form 10-K, including our financial statements and the related notes and the section titled* *Management**s Discussion and Analysis of Financial Condition and Results of Operations* *in this Form 10-K, before deciding whether to invest in our securities. The occurrence of any of the events or developments described below could harm our business, financial condition, results of operations and growth prospects. In such an event, the market price of our securities could decline, and you may lose all or part of your investment. Additional risks and uncertainties not presently known to us or that we currently deem immaterial also may impair our business operations. Some statements in this Form 10K, including such statements in the following risk factors, constitute forward-looking statements. See the section entitled* *Cautionary Note Regarding Forward-Looking Statements.* **Risks Related to our Business** **We are in the initial stages of our present business plan and have a limited historical performance for you to base an investment decision upon, and we may never become profitable.** We have a new business plan and no operating history upon which an evaluation of our prospects and future performance can be made. Our planned operations are subject to all business risks associated with new companies. The likelihood of our success must be considered considering the problems, expenses, difficulties, complications, and delays frequently encountered in connection with the establishment of a new business, operation in a competitive industry. There is a possibility that we could sustain losses for a long time or may never operate profitably. If we are not successful in implementing our strategy as anticipated, continue to incur losses, and fail to raise additional capital, we may need to consider alternative options and in an extreme scenario, shut down operations. **The success of our business is dependent on subscription and renewal of our services by customers.** Our growth will be dependent upon successful onboarding of customers who subscribe to our data storage, data hosting, data center, and managed service offerings. This success is dependent on successful marketing strategy, network building and expansion, and advertising, all of which will incur capital expenditure. Moreover, if and when we onboard customers, customers have no obligation to renew their subscriptions for our services after the expiration of their contractual subscription period, and in the normal course of business, some customers will elect not to renew. In addition, our customers may renew for fewer subscriptions, renew for shorter contract lengths or switch to lower cost offerings of our services, particularly in times of general economic uncertainty. Our future success also depends in part on our ability to sell additional features and services, more subscriptions or enhanced editions of our services to our current customers. This may also require increasingly sophisticated and costly sales efforts that are targeted at senior management. Similarly, the rate at which our customers purchase new or enhanced services depends on a number of factors, including general economic conditions and customer receptiveness to any price changes related to these additional features and services. **We may become involved in legal proceedings that could have a material adverse impact on our business, results of operations and financial condition.** From time to time and in the ordinary course of our business, we and certain of our subsidiaries may become involved in various legal proceedings and claims, including for example, employment disputes and litigation; client disputes and litigation alleging solution and implementation defects, intellectual property infringement, violations of law and breaches of contract and warranties; and other third party disputes and litigation alleging intellectual property infringement, violations of law, and breaches of contracts and warranties. Virtually all of our current outstanding obligations of approximately $2.7 million arise from settlement agreements with the property owners of the locations utilized for our clinic business, which was shuttered in Q4 of FY2022, or default judgments issued by state courts against the Company. While we believe that we have settled pending litigation, there can be continued, or renewed, claims from existing creditors, judgement holders or other holders of its historical obligations. Management continues to resolve its historical obligations through negotiation and use of its securities, though not all holders of its historical obligations appreciate the opportunity to own equity in the Company. Nonetheless, the Company may not be able to fund the payment of its historical obligations in the form of cash until it becomes cash-flow positive. Legal proceedings are inherently unpredictable and, regardless of the merits of the claims, litigation may be expensive, time-consuming, and disruptive to our operations and distracting to management. If resolved against us, such legal proceedings could result in excessive verdicts, injunctive relief or other equitable relief that may affect how we operate our business. Similarly, if we settle such legal proceedings, it may affect how we operate our business. Future court decisions, alternative dispute resolution awards, business expansion or legislative activity may increase our exposure to litigation and regulatory investigations. In some cases, substantial non-economic remedies or punitive damages may be sought. Adverse outcomes may result in significant monetary damages or injunctive relief that could adversely affect our ability to conduct our business. 11 [Table of Contents](#TableOfContents) **We are in an intensely competitive industry and there is no assurance we will be able to compete with our competitors who have greater resources than us.** Because we are a new business, our competitors may have greater name recognition, longer operating history and significantly greater resources than we do. Further, the data services industry is a highly competitive and established market with an abundance of domestic and international firms offering services similar to ours. In addition, current and potential competitors have established, and may in the future establish, cooperative relationships with vendors of complementary services, technologies, or services to increase the availability of their solutions in the marketplace. Accordingly, new competitors or alliances may emerge that have greater market share, a larger customer base, more widely adopted proprietary technologies, greater marketing expertise, greater financial resources, and larger sales forces than we have, which could put us at a competitive disadvantage. Further, our current or potential competitors may be acquired by third parties with greater available resources. As a result, our competitors may be able to respond more quickly and effectively than we can to new or changing opportunities, technologies, standards or customer and patient requirements and may have the ability to initiate or withstand substantial price competition. **Rapid technological change in our industry presents us with significant risks and challenges.** Our success will depend on our ability to enhance our solution with next-generation technologies and to develop or to acquire and market new services to access new consumer populations. There is no guarantee that we will possess the resources, either financial or personnel, for the research, design and development of new applications or services, or that we will be able to utilize these resources successfully and avoid technological or market obsolescence. Further, there can be no assurance that technological advances by one or more of our competitors or future competitors will not result in our present or future software-based products and services becoming uncompetitive or obsolete. **If we do not manage our strategy effectively, our revenue, business and operating results may be harmed.** We have not yet generated significant revenues from our present operations and may not do so for an indefinite period of time. Our future revenues and profitability depend upon our ability to successfully implement a growth strategy. There can be no assurance given that we will be successful in executing our growth strategy, and even if we achieve our strategic plan, that we will realize, in full or in part, the anticipated benefits we expect our strategy will achieve. The failure to realize those benefits could have a material adverse effect on our business, financial condition, and results of operations. Acquisitions may require greater than anticipated investment of operational and financial resources. Acquisitions and related growth may also require the integration of different services, assimilation of new employees, diversion of management and IT resources, increases in administrative costs and other additional costs associated with any debt or equity financings undertaken in connection with such acquisitions. We may not be able to effectively manage this expansion in any one or more of these areas, and any failure to do so could significantly harm our business, financial condition, and results of operations. We cannot assure you that any acquisition we undertake will be successful. Future growth will also place additional demands on our resources and may require us to hire and train additional employees. We will need to expand and acquire systems and infrastructure to accommodate our planned operations. The failure to implement our plan of operations and manage any future growth effectively will materially and adversely affect our business. **Risks Related to our Financial Condition** **There is substantial doubt about our ability to continue as a going concern because of our limited operating history, history of losses and financial resources, and if we are unable to generate significant revenue or secure financing, we may be required to cease or curtail our operations.** We have a history of losses. We have nominal revenues from our operations. The Report of our Independent Registered Public Accounting Firm issued in connection with our audited financial statements for the calendar year ended December 31, 2024 and 2023, expressed substantial doubt about our ability to continue as a going concern, since we have had recurring operating losses and our lack of liquidity and working capital. The Companys continuance is dependent on raising capital and generating revenues sufficient to sustain operations. We have generated only minimal revenues from our present business plan. If we generate revenue more slowly than we anticipate, or if our operating expenses are higher than we expect, we may not be able to pay our operating expenses or achieve profitability and our financial condition could suffer. Whether we can achieve cash flow levels sufficient to support our operations cannot be accurately predicted. Unless such cash flow levels are achieved, we will need to borrow additional funds or sell debt or equity securities, or some combination thereof, to obtain funding for our operations. Such additional funding may not be available on commercially reasonable terms, or at all. **We will need additional capital to implement and fund our operations.** The extent of our capital needs will depend on numerous factors, including (i) the availability and terms of any financing available to us;(ii) the success of our newly established business plan; (iii) the level of our investment in research and development; (iv) the amount of our capital expenditures, including acquisitions; and (v) regulations applicable to our operations. We cannot assure you that we will be able to obtain capital in the future to meet our needs. Even if we do find a source of additional capital, we may not be able to negotiate terms and conditions for receiving the additional capital that are acceptable to us. Any future capital investments could dilute or otherwise materially and adversely affect the holdings or rights of our existing stockholders. In addition, new equity or convertible debt securities issued by us to obtain financing could have rights, preferences, and privileges senior to our Common Stock. We cannot give you any assurance that any additional financing will be available to us, or if available, will be on terms favorable to us. 12 [Table of Contents](#TableOfContents) **We may incur additional debt in the future which may contain restrictive covenants and impair our operating flexibility.** Because we currently have no significant revenue and limited cash on hand, we must seek funds for our operational plans. If we incur additional indebtedness in the future, a portion of the cash flow we generate, if any, will be dedicated to the payment of principal and interest on outstanding indebtedness. Typical loan agreements also might contain restrictive covenants, which may impair our operating flexibility. Such loan agreements would also provide for default under certain circumstances, such as failure to meet certain financial covenants. A default under a loan agreement could result in the loan becoming immediately due and payable and, if unpaid, a judgment in favor of such lender which would be senior to the rights of our stockholders. A judgment creditor would have the right to foreclose on our limited assets resulting in a material adverse effect on our business, operating results, and financial condition. **We have identified weaknesses in our internal controls, and we cannot provide assurances that these weaknesses will be effectively remediated, or that additional material weaknesses will not occur in the future.** As a public company, we are subject to the reporting requirements of the Exchange Act, and the Sarbanes-Oxley Act. 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 Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures, and internal control over financial reporting. We do not yet have effective disclosure controls and procedures, or internal controls over all aspects of our financial reporting. We are continuing to develop and refine our disclosure controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we will file with the SEC is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms. Our management is responsible for establishing and maintaining adequate internal control over our financial reporting, as defined in Rule 13a-15(f) under the Exchange Act. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may deteriorate. We have identified material weaknesses in our internal control over financial reporting. 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. The material weaknesses identified to date include (i) lack of segregation of duties and (ii) lack of sufficient resources to ensure that information required to be disclosed by us in the reports that we file or submit to the SEC are recorded, processed, summarized, and reported, within the time periods specified in the SECs rules and forms. As such, our internal controls over financial reporting were not designed or operating effectively. We will be required to expend time and resources to further improve our internal controls over financial reporting, including by expanding our staff. However, we cannot assure you that our internal control over financial reporting, as modified, will enable us to identify or avoid material weaknesses in the future. We have not yet retained sufficient staff or engaged sufficient outside consultants with appropriate experience in GAAP presentation to devise and implement effective disclosure controls and procedures, or internal controls. We will be required to expend time and resources hiring and engaging additional staff and outside consultants with the appropriate experience to remedy these weaknesses. We cannot assure you that management will be successful in locating and retaining appropriate candidates; that newly engaged staff or outside consultants will be successful in remedying material weaknesses thus far identified or identifying material weaknesses in the future; or that appropriate candidates will be located and retained prior to these deficiencies resulting in material and adverse effects on our business. Our ability to retain staff with appropriate experience in GAAP presentation will also be dependent upon the revenue we generate from operations and our ability to raise sufficient funding. We believe that the material weaknesses as reported will eventually be fully remediated, upon being properly capitalized to hire the proper personnel for segregation of duties and SEC and GAAP accounting knowledge. Our current controls and any new controls that we develop may become inadequate because of changes in conditions in our business. Further, weaknesses in our disclosure controls or our internal controls over financial reporting may be discovered in the future. Any failure to develop or maintain effective controls, or any difficulties encountered in their implementation or improvement, could harm our operating results, or cause us to fail to meet our reporting obligations and may result in a restatement of our financial statements for prior periods. Any failure to implement and maintain effective internal controls over financial reporting could also adversely affect the results of management reports and independent registered public accounting firm audits of our internal controls over financial reporting that we will eventually be required to include in our periodic reports that will be filed with the SEC. Ineffective disclosure controls and procedures, and ineffective internal controls over financial reporting could cause investors to lose confidence in our reported financial and other information, which would likely have a negative effect on the market price of our Common Stock. 13 [Table of Contents](#TableOfContents) Our independent registered public accounting firm is not required to audit the effectiveness of our internal control over financial reporting until after we are no longer a smaller reporting company as defined in the Jumpstart Our Business Startups (JOBS) Act of 2012. At such time, our independent registered public accounting firm may issue a report that is adverse in the event it is not satisfied with the level at which our internal control over financial reporting is documented, designed, or operating. Any failure to maintain effective disclosure controls and internal control over financial reporting could have a material and adverse effect on our business and operating results and cause a decline in the market price of our Common Stock. **Our operating results and liquidity needs could be negatively affected by market fluctuations and the economic downturn.** Our operating results and liquidity could be negatively affected by economic conditions generally, both in the United States and elsewhere around the world. Domestic and international equity and debt markets have experienced and may continue to experience heightened volatility and turmoil based on domestic and international economic conditions and concerns. In the event these economic conditions and concerns continue or worsen, and the markets continue to remain volatile, our operating results and liquidity could be adversely affected by those factors in many ways, including weakening demand for certain of our services and making it more difficult for us to raise funds if necessary, and our stock price may decline. In addition, the global macroeconomic environment could be negatively affected by, among other things, a resurgence of COVID-19 or other pandemics or epidemics, instability in global economic markets, increased U.S. trade tariffs and trade disputes with other countries, instability in the global credit markets, supply chain weaknesses, instability in the geopolitical environment as a result of the withdrawal of the United Kingdom from the European Union, the Russian invasion of Ukraine, the war in the Middle East and other political tensions, and foreign governmental debt concerns. Such challenges have caused, and may continue to cause, uncertainty and instability in local economies and in global financial markets. We are actively monitoring the effects these disruptions and increasing inflation could have on our operations. These conditions make it extremely difficult for us to accurately forecast and plan future business activities. **Settlements with various leaseholders and vendors have created obligations that may hinder our ability to finance future operations** As a result of obligations to leaseholders and construction-related vendors we now have settlement agreements and consent judgements in the total amount of approximately $2.7 million. These obligations bear interest at various rates according to the local law in addition to the face amounts owed. The existence of these obligations may inhibit our ability to attain further financing. **Risks Related to Government Regulation** **Privacy concerns and laws as well as evolving regulation of cloud computing, AI services, cross-border data transfer restrictions and other domestic regulations may limit the use and adoption of our services and adversely affect our business.** Regulation related to the provision of services over the Internet is evolving, as federal and state governments continue to adopt new, or modify existing, laws and regulations addressing data privacy, cybersecurity, data protection, data collection, processing, storage, hosting, transfer and use of data, generally. Data privacy laws, such as the California Consumer Privacy Act (CCPA) as amended by the California Privacy Rights Act (CPRA), and laws that have recently passed and/or gone into effect in many other states similarly impose new obligations on us and many of our customers, potentially as both businesses and service providers. These laws continue to evolve, and as various jurisdictions introduce similar proposals, we and our customers could be exposed to additional regulatory burdens. In addition, various safe harbors have historically been provided to those who hosted content provided by others, such as safe harbors from monetary damages for copyright infringement arising from copyrighted content provided by customers and others and for defamation and other torts arising from information provided by customers and others. There is an increasing demand for repealing or limiting these safe harbors by either judicial decision or legislation, and we have active legal proceedings that have been impacted by the repeal or limiting of safe harbors that were previously available to us. Loss of these safe harbors may require altering or limiting some of our services or may require additional contractual terms to avoid liabilities for our customers misconduct. These laws may require us to make additional changes to our practices and services to enable us or our customers to meet the new legal requirements and may also increase our potential liability exposure through new or higher potential penalties for noncompliance, including as a result of penalties, fines and lawsuits related to data breaches. Furthermore, privacy laws and regulations are subject to differing interpretations and may be inconsistent among jurisdictions. These and other requirements are causing increased scrutiny among customers and may be perceived differently from customer to customer. These developments could reduce demand for our services, require us to take on more onerous obligations in our contracts, restrict our ability to store, transfer and process data or, in some cases, impact our ability or our customers ability to offer our services in certain locations, to deploy our solutions, to reach current and prospective customers, or to derive insights from customer data globally. 14 [Table of Contents](#TableOfContents) The costs of compliance with, and other burdens imposed by, privacy laws, regulations and standards may limit the use and adoption of our services, reduce overall demand for our services, make it more difficult to meet expectations from our commitments to customers and our customers customers, lead to significant fines, penalties or liabilities for noncompliance, impact our reputation, or slow the pace at which we close sales transactions, in particular where customers request specific warranties and unlimited indemnity for noncompliance with privacy laws, any of which could harm our business. Furthermore, the uncertain and shifting regulatory environment and trust climate may raise concerns regarding data privacy and cybersecurity, which may cause our customers or our customers customers to resist providing the data necessary to allow our customers to use our services effectively. In addition, new products we develop or acquire in connection with changing events may expose us to liability or regulatory risk. Even the perception that the privacy and security of personal information is not satisfactorily protected or does not meet regulatory requirements could inhibit sales of our products or services and could limit adoption of our cloud-based solutions. **Industry-specific regulations and other requirements and standards are evolving, and unfavorable industry-specific laws, regulations, interpretive positions or standards could harm our business.** Our customers and potential customers could conduct business in a variety of industries, including financial services, the public sector, healthcare and telecommunications. Regulators in certain industries have adopted and may in the future adopt regulations or interpretive positions regarding the use of cloud computing, AI services and other outsourced services. The costs of compliance with, and other burdens imposed by, industry-specific laws, regulations and interpretive positions may limit our customers use and adoption of our services and reduce overall demand for our services. Compliance with these regulations may also require us to devote greater resources to support certain customers, which may increase costs and lengthen sales cycles. In the United States, a cybersecurity Executive Order released in May 2021 may heighten future compliance and incident reporting standards in order to obtain certain public sector contracts. If we are unable to comply with these guidelines or controls, or if our customers are unable to obtain regulatory approval to use our services where required, our business may be harmed Further, in some cases, industry-specific, regionally specific or product-specific laws, regulations or interpretive positions may impact our ability, as well as the ability of our customers, partners and data providers, to collect, augment, analyze, use, transfer and share personal and other information that is integral to certain services we provide. The interpretation of many of these statutes, regulations and rulings is evolving in the courts and administrative agencies and an inability to comply may have an adverse impact on our business and results. This impact may be particularly acute in countries that have passed or are considering passing legislation that requires data to remain localized in country, as this may impose financial costs on companies required to store data in jurisdictions not of their choosing and to use nonstandard operational processes that add complexity and are difficult and costly to integrate with global processes. Further, countries are applying their data and consumer protection laws to AI, and particularly generative AI, and/or are considering legal frameworks on AI. Any failure or perceived failure by us to comply with such requirements could have an adverse impact on our business. **If the statutes and regulations in our industry change, our business could be adversely affected.** If there are changes in laws, regulations, or administrative or judicial interpretations, we may have to change our future business practices, or our business practices could be challenged as unlawful, which could have a material adverse effect on our business, financial condition, and results of operations. **Risks Related to Acquisitions** **Acquisitions may subject us to liability with regard to the creditors, customers, and shareholders of the sellers.** While we intend that any acquisitions that we consummate will typically be structured as asset purchase agreements in which we attempt to limit our risk and exposure relative to the respective sellers liabilities, we cannot guarantee that we will be successful in avoiding all liability. Creditors may seek to hold us accountable for seller debt and customers and for seller breaches of contract prior to our transactions. Occasionally, disaffected shareholders may attempt to interfere with our business acquisitions. We will attempt to minimize all of these risks through thorough due diligence, negotiating indemnities and holdbacks, obtaining relevant representations from sellers, and leveraging experienced professionals when appropriate; however, there can be no assurance that we will be able to mitigate all risks. **We may be unable to implement our strategy of acquiring companies.** Although we expect that one or more acquisition opportunities will become available in the future, we may not be able to acquire companies at all or on terms favorable to us. We will likely need additional financing for such acquisitions, but there is no assurance that we will be able to borrow funds or raise capital through the issuance of our equity on favorable terms. Certain of our larger, better capitalized competitors may seek to acquire some of the companies we may be interested in. Competition for acquisitions would likely increase acquisition prices and result in us having fewer acquisition opportunities. Depending on the type of businesses we acquire, we may have varying cost saving and/or cross-selling opportunities with the acquired business. However, there is no assurance that we will achieve anticipated cost savings and cross-selling on our acquisitions, and failure to do so may mean we overpaid for such acquisitions. In completing any acquisitions, we will rely upon the representations and warranties and indemnities made by the sellers with respect to each acquisition as well as our own due diligence investigation. We cannot be assured that such representations and warranties will be true and correct or that our due diligence will uncover all materially adverse facts relating to the operations and financial condition of the acquired companies or their customers. To the extent that we are required to pay for obligations of an acquired company, or if material misrepresentations exist, we may not realize the expected benefit from such acquisition, and we will have overpaid in cash, stock, assumed debt, seller notes, and/or earnouts for the value received in that acquisition. 15 [Table of Contents](#TableOfContents) **Future acquisitions may result in potentially dilutive issuances of equity securities, the incurrence of indebtedness and increased amortization expense.** Future acquisitions may result in dilutive issuances of equity securities, the incurrence of debt, the assumption of known and unknown liabilities, the write-off of software development costs and the amortization of expenses related to intangible assets, all of which could have an adverse effect on our business, financial condition, and results of operations. **We face risks arising from acquisitions that we pursue in the future.** We may pursue strategic acquisitions in the future. Risks in acquisition transactions include difficulties in the integration of acquired businesses into our operations and control environment, difficulties in assimilating and retaining employees and intermediaries, difficulties in retaining the existing clients of the acquired entities, assumed or unforeseen liabilities that arise in connection with the acquired businesses, the failure of counter parties to satisfy any obligations to indemnify us against liabilities arising from the acquired businesses, and unfavorable market conditions that could negatively impact our growth expectations for the acquired businesses. Fully integrating an acquired company or business into our operations may take a significant amount of time. We cannot assure you that we will be successful in overcoming these risks or any other problems encountered with acquisitions and other strategic transactions. These risks may prevent us from realizing the expected benefits from acquisitions and could result in the failure to realize the full economic value of a strategic transaction or the impairment of goodwill and/or intangible assets recognized at the time of an acquisition. These risks could be heightened if we complete a large acquisition or multiple acquisitions within a short period of time. **Risks Related to Our Management** **Our executive officers, directors and certain key stockholders own and control a significant number of voting securities and so long as they do, they are able to control the outcome of stockholder voting.** Our executive officer, directors as well as certain other key shareholders are the owners of approximately 50% of the voting shares of the Company as of December 31, 2024 as a result of their ownership of our Series X Cumulative Redeemable Perpetual Preferred Stock (the Series X Preferred Stock), and Common Stock. The Series X Preferred stock votes with our outstanding shares of Common Stock at the rate of 400 votes for each share owned, one (1) vote for each common holder. As such, our board can determine the outcome of all matters submitted to our stockholders for approval, including the election of directors. Our managements control of our voting securities may make it impossible to complete some corporate transactions without its support and may prevent a change in our control. In addition, this ownership could discourage the acquisition of our Common Stock by potential investors and could have an anti-takeover effect, possibly depressing the trading price of our Common Stock. **Risks Relating to Ownership of our Stock** **Shares eligible for future sale may have an adverse effect on our share price.** Sales of substantial amounts of shares or the perception that such sales could occur may adversely affect the prevailing market price for our shares. We may issue additional shares in subsequent public offerings or private placements to make new investments or for other purposes. We are not required to offer any such shares to existing shareholders on a preemptive basis. Therefore, it may not be possible for existing shareholders to participate in such future share issuances, which may dilute the existing shareholders interests in us. **We do not anticipate paying any cash dividends on our Common Stock in the foreseeable future.** We currently intend to retain all our future earnings to finance the growth and development of our business, and therefore, we do not anticipate paying any cash dividends on our Common Stock in the foreseeable future. We believe it is likely that our Board will continue to conclude that it is in our best interests to retain all earnings (if any) for the development of our business. In addition, the terms of any future debt agreements may preclude us from paying dividends. As a result, capital appreciation, if any, of our Common Stock will be your sole source of gain for the foreseeable future. **If securities or industry analysts do not publish research or publish inaccurate or unfavorable 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 business. Securities and industry analysts do not currently, and may never, publish research on our company. If no securities or industry analysts commence coverage of our company, the trading price for our stock would likely be negatively impacted. In the event securities or industry analysts initiate coverage, if one or more of the analysts who cover us downgrades our stock or publishes inaccurate or unfavorable research about our business, our stock price may decline. If one or more of these analysts cease coverage of our company or fail to publish reports on us regularly, demand for our stock could decrease, which might cause our stock price and trading volume to decline. 16 [Table of Contents](#TableOfContents) **Our stock price has fluctuated in the past, has recently been volatile and may be volatile in the future, and as a result, investors in our Common Stock could incur substantial losses.** Our stock price has fluctuated in the past, has recently been volatile and may be volatile in the future. On December 13, 2024, the reported closing price of our Common Stock was $0.40, while on March 21, 2025, the reported closing sales price was $.59. For comparison purposes during the last 52 weeks prior to December 13, 2024, our stock price had a low closing price of $.02 and a high closing price of $1.00. We may incur rapid and substantial decreases in our stock price in the foreseeable future that are unrelated to our operating performance or prospects. In addition, sales of substantial amounts of our Common Stock, or the perception that such sales might occur, could adversely affect the prevailing market prices of our Common Stock and Warrants and our stock price may decline substantially in a short period of time. As a result, our stockholders could suffer losses or be unable to liquidate holdings. As a result of this volatility, investors may experience losses on their investment in our Common Stock. The market price for our Common Stock may be influenced by many factors, including the ones discussed in this section titled Risk Factors. **Our Common Stock has often been thinly traded, so investors may be unable to sell at or near ask prices or at all if investors need to sell shares to raise money or otherwise desire to liquidate their shares.** To date, there have been many days on which limited trading of our Common Stock took place. We cannot predict the extent to which investors interests will lead to an active trading market for our Common Stock or whether the market price of our Common Stock will be volatile. If an active trading market does not develop, investors may have difficulty selling our Common Stock. We are likely to be too small to attract the interest of many brokerage firms and analysts. We cannot give investors any assurance that an active public trading market for our Common Stock will develop or be sustained. The market price of our Common Stock could be subject to wide fluctuations in response to quarterly variations in our revenues and operating expenses, announcements of new products or services by us, significant sales of our Common Stock, including short sales, the operating and stock price performance of other companies that investors may deem comparable to us, and news reports relating to trends in our markets or general economic conditions. **Because we may issue preferred stock without the approval of our shareholders and have other anti-takeover defenses, it may be more difficult for a third party to acquire us and could depress our stock price.** In general, our Board may issue, without a vote of our shareholders, one or more additional series of preferred stock that may have such voting powers, full, enhanced or limited, or no voting powers, and such preferences and relative, participating, optional, or other special rights and such qualifications, limitations, or restrictions thereof as adopted by the Board, which may include enhanced dividend rights, rights of redemption, sinking funds to pay dividends, liquidation, and other rights that would be different than, and preferential to, the rights of the Common Stockholders, although our ability to designate and issue preferred stock is currently restricted by covenants in the Certificate of Designation for the Series A Amortizing Convertible Preferred Stock. Without these restrictions, our Board could issue preferred stock to investors who support us and our management and give effective control of our business to our management. Additionally, issuance of preferred stock could block an acquisition resulting in both a drop in our stock price and a decline in interest of our Common Stock. This could make it more difficult for shareholders to sell their Common Stock. This could also cause the market price of our Common Stock to drop significantly, even if our business is performing well. **Risks Related to Debt Restructuring** **Redemption of all shares of Series A Preferred Stock into Common Stock may lead to severe dilution of our existing shares.** The Series A Preferred Shares are subject to redemption by the Company, either in the form of cash or Common Stock, beginning January 1, 2025, at a rate of 1/36 of the total outstanding Series A Preferred Shares, over the following three years. The Common Stock redemption shall be at a 10% discount to the average of the five lowest closing prices over a 30-trading day period. The last sale price of our Common Stock on March 21, 2025, in the OTC Market was $0.59. The total value of the Series A Preferred Stock is $13,323,459. If the Company redeems all of the shares of Series A Preferred Stock at a rate of $0.36 per share prior to their mandatory conversion into Common Stock (which occurs at a rate of $4.00 per share), the Company will have issued an aggregate of 33.3 million shares of Common Stock at the end of the three-year period, which could cause a dilution of over 70% to our existing shareholders. 17 [Table of Contents](#TableOfContents) **Resales of our Common Stock in the public market by our stockholders as a result of this offering may cause the market price of our Common Stock to fall.** We are registering Common Stock issuable in connection with the Restructuring of obligations including all debts, notes, accounts payable, and certain of its previously issued preferred shares. Sales of large blocks of our Common Stock could depress the price of our Common Stock. The existence of these shares and shares of Common Stock that may be issuable upon conversion or exercise, as applicable, of outstanding shares of convertible preferred stock, warrants and options create a circumstance commonly referred to as an overhang which can act as a depressant to the price of our Common Stock. The existence of an overhang, whether sales have occurred or are occurring, also could make our ability to raise additional financing through the sale of equity or equity-linked securities more difficult in the future at a time and price that we deem reasonable or appropriate. If our existing shareholders and investors seek to convert or exercise such securities or sell a substantial number of shares of our Common Stock, such selling efforts may cause significant declines in the market price of our Common Stock. In addition, the shares of our Common Stock sold in the offering will be freely tradable without restriction or further registration under the Securities Act. As a result, a substantial number of shares of our Common Stock may be sold in the public market following this offering. If there are significantly more shares of Common Stock offered for sale than buyers are willing to purchase, then the market price of our Common Stock may decline to a market price at which buyers are willing to purchase the offered Common Stock and sellers remain willing to sell our Common Stock. **Investors who buy shares at different times will likely pay different prices.** Investors who purchase shares in this offering at different times will likely pay different prices and so may experience different levels of dilution and different outcomes in their investment results. Moreover, the Common Stock issued or issuable in connection with the Restructuring (as defined below) was at a significant premium to the then market price of the Common Stock and is derived, in substantial part, from a good faith estimate of the future value of Common Stock of the Company, which may never appreciate at our predicted levels, or worse, may plummet compared to the current stock price. If the Common Stock is sold to the investors in this offering at a similar premium, there is no guarantee that the value of our Common Stock will increase. The sale price may not accurately reflect the value of our Common Stock and may not be realized upon any subsequent disposition of the same. **Risks Related to Cybersecurity** **If our information technology systems or data, or those of third parties upon which we rely, are or were compromised, or are perceived to have been compromised, we could experience adverse consequences, including but not limited to regulatory investigations or actions; litigation; fines and penalties; disruptions of our business operations; reputational harm; loss of revenue or profits; loss of customers or sales; and other adverse consequences.** In the ordinary course of our business, we and the third parties upon which we rely, may collect, receive, store, use, transmit, disclose, transfer, disclose, make accessible, protect, secure, dispose of, transmit, share, or otherwise process proprietary, confidential, and sensitive data, including personal data (such as health-related data regarding clinical trial subjects), intellectual property, and trade secrets. Cyberattacks, malicious internet-based activity, and online and offline fraud and other similar activities threaten the confidentiality, integrity, and availability of our sensitive information and information technology systems, and those of the third parties upon which we rely. Such threats are prevalent and continue to rise, are increasingly difficult to detect, and come from a variety of sources, including traditional computer hackers, threat actors, hacktivists, organized criminal threat actors, personnel (such as through theft or misuse), sophisticated nation-states, and nation-state-supported actors. Some actors now engage and are expected to continue to engage in cyber-attacks, including without limitation nation-state actors for geopolitical reasons and in conjunction with military conflicts and defense activities. During times of war and other major conflicts, we, the third parties upon which we rely, may be vulnerable to a heightened risk of these attacks, including retaliatory cyber-attacks, that could materially disrupt our systems and operations, supply chain, and ability to produce, sell and distribute our goods and services. We and the third parties upon which we rely may be subject to a variety of threats, including, but not limited to, malicious code (such as viruses and worms), social engineering attacks (including through phishing attacks), malware (including as a result of advanced persistent threat intrusions), denial of service attacks (such as credential stuffing), credential harvesting, software bugs, server malfunctions, software or hardware failures, unauthorized access, natural disasters, fire, terrorism, successful breaches, personnel misconduct or error, or human or technological error, war and telecommunication and electrical failures. In particular, severe ransomware attacks are becoming increasingly prevalent and severe, and can lead to significant interruptions in our operations, loss of sensitive data, reputational harm, and diversion of funds. Extortion payments may alleviate some of the negative impact of a ransomware attack, but we may be unwilling or unable to make such payments due to, for example, applicable laws or regulations prohibiting such payments. Additionally, the COVID-19 pandemic poses increased risks to our information technology systems and data, as more of our employees work from home, utilizing network connections outside our premises. Future or past business transactions (such as acquisitions or integrations) could expose us to additional cybersecurity risks and vulnerabilities, as our systems could be negatively affected by vulnerabilities present in acquired or integrated entities systems and technologies. Furthermore, we may discover security issues that were not found due diligence of such acquired or integrated entities, and it may be difficult to integrate companies into our information technology environment and security program. 18 [Table of Contents](#TableOfContents) We may rely on third parties (such as service providers and technologies) to process sensitive information in a variety of contexts, including without limitation third-party providers of cloud-based infrastructure, encryption and authentication technology, employee email, and other functions. Our ability to monitor these third parties cybersecurity practices is limited, and these third parties may not have adequate information security measures in place. If our third-party service providers experience a security incident or other interruption, we could experience adverse consequences. While we may be entitled to damages if our third-party service providers fail to satisfy their privacy or security-related obligations to us, any award may be insufficient to cover our damages, or we may be unable to recover such award. In addition, supply-chain attacks have increased in frequency and severity, and we cannot guarantee that third parties infrastructure in our supply chain or our third-party partners supply chains have not been compromised. Any of the previously identified or similar threats could cause a security incident or other incident during which our information technology systems or data could be compromised, which could result in unauthorized, unlawful, or accidental acquisition, modification, destruction, loss, alteration, encryption, disclosure of, or access to our data; it could also disrupt our ability (and that of third parties upon which we rely) to operate our business. We may expend significant resources or modify our business activities in an effort to protect against the compromise of our information technology systems and data. Further, certain data privacy and security obligations may require us to implement and maintain specific security measures, industry standard or reasonable security measures to protect our information technology systems and data. If we (or a third party upon whom we rely) experience a security incident or are perceived to have experienced a security incident, we may experience adverse consequences, including: government enforcement actions (for example, investigations, fines, penalties, audits, and inspections); additional reporting requirements and/or oversight; restrictions on processing data (including personal data); litigation (including class actions); indemnification obligations; negative publicity; reputational harm; monetary fund diversions; interruptions in our operations (including availability of data); financial loss; and other similar harms. Additionally, applicable data privacy and security obligations may require us to notify relevant stakeholders; such disclosures are costly, and the disclosures or the failure to comply with such requirements could lead to adverse consequences. **We face the risk of unauthorized access to or breaches of our information systems.** Cybersecurity threats are constantly evolving, making it challenging to predict, prevent, or mitigate all potential attacks. Advanced persistent threats, ransomware, and other sophisticated attacks could impair our ability to operate efficiently and securely. We face the risk of unauthorized access to or breaches of our information systems that could result in the misappropriation of sensitive information, including customer, employee, or proprietary data. These incidents could occur through malicious software, phishing attacks, or insider threats. While we have implemented comprehensive cybersecurity measures, including firewalls, encryption, and employee training, no system is completely secure. A successful attack could disrupt our operations, cause financial loss, damage our reputation, lead to regulatory penalties, and erode customer trust. **Operations and Finances may be impacted by a cybersecurity breach of our information system.** A cybersecurity breach could lead to significant financial losses, regulatory penalties, reputational harm, and operational disruptions. A significant cybersecurity event could result in the theft or destruction of our customers intellectual property, disruption of their operations, financial loss, severe reputational harm, and litigation expenses, which will adversely affect our financial condition. An attack could result in temporary or long-term shutdowns of critical systems, causing revenue losses and increased operating costs as we attempt to recover and restore normal operations. Cyber incidents may also result in diminished future cash flows, thereby requiring consideration of impairment of certain assets including goodwill, customer-related intangible assets, trademarks, patents, capitalized software or other long-lived assets associated with hardware or software, and inventory. **We face challenges in detection and response of cybersecurity breaches.** Despite our investments in cybersecurity measures, there is no assurance that our systems can effectively detect or respond to all cyber threats, particularly those targeting undisclosed or newly discovered vulnerabilities. **Market and Industry Data** This Annual Report may contain market, industry and government data and forecasts that have been obtained from publicly available information, various industry publications and other published industry sources. We have not independently verified the information and cannot make any representation as to the accuracy or completeness of such information. None of the reports and other materials of third-party sources referred to in this Annual Report were prepared for use in, or in connection with, this Annual Report. **ITEM 1B. UNRESOLVED STAFF COMMENTS** Not applicable. 19 [Table of Contents](#TableOfContents) **ITEM 1C. CYBERSECURITY** **Cybersecurity Risk Management and Strategy** The Company does not have its own cybersecurity policy but relies on the policies and procedures of its Contract Research Organizations (CROs) and Software as a Service (SaaS) contractors that handle its data and software. We are committed to protecting the confidentiality, integrity, and availability of our information assets and complying with applicable laws and regulations regarding cybersecurity. **Cybersecurity Risks and Incidents** The Company faces various cybersecurity risks and threats that could potentially affect its operations, reputation, financial condition, and competitive position. These risks and threats include, but are not limited to, unauthorized access, use, disclosure, modification, or destruction of our data, systems, or networks; denial of service attacks; malware infections; phishing or social engineering attacks; ransomware attacks; loss or theft of devices or media containing our data; human error or negligence; natural disasters; power outages; or sabotage. Our data and systems may also be subject to cybersecurity breaches or incidents at its CROs, vendors, partners, or other third parties that we interact with or rely on. We have not experienced any material cybersecurity breaches or incidents to date, but we cannot guarantee that we will not suffer any such breaches or incidents in the future. We may not be able to detect, prevent, or respond to all cybersecurity risks and threats in a timely or effective manner. We may also incur significant costs and liabilities as a result of any cybersecurity breaches or incidents, such as legal claims, regulatory fines, remediation expenses, reputational damage, loss of business opportunities, or competitive disadvantage. We may also face litigation, investigations, or enforcement actions by governmental authorities, customers, shareholders, or other parties arising from any cybersecurity breaches or incidents. **Cybersecurity Policies and Procedures** The Company does not have its own cybersecurity policy, but it contracts with CROs that handle all of its data and software. Our CROs data systems are 21 CFR 11 (Part 11) compliant, which means that they have implemented controls to ensure the reliability and integrity of electronic records and signatures. Our CRO also runs industry standard antivirus and antimalware software on their networks and has written procedures for cybersecurity management, incident response, backup and recovery, and employee training. We have reviewed the cybersecurity policies and procedures of our CRO and require them to report any cybersecurity breaches or incidents that may affect our data or systems. All of the software that we use is Commercial Off the Shelf Software (COTS) and Microsoft, Dropbox, and Google cloud services. We do not develop, modify, or customize any software for our own use. We rely on the cybersecurity measures and practices of our software and cloud service providers and update our software and systems regularly to address any known vulnerabilities or issues. We also limit the access and use of our software and cloud services to authorized personnel and encourage them to use strong passwords and multifactor authentication. We do not store any sensitive or confidential data on our own devices or media but use password-protected cloud storage. **Cybersecurity Oversight and Governance** The Companys management is responsible for overseeing and managing our cybersecurity risks and activities as part of its overall risk assessment portfolio. Our management regularly evaluates and reviews the Companys cybersecurity posture and performance and reports to the board of directors on any material cybersecurity matters or developments. Our management also coordinates with our CROs, vendors, partners, and other third parties to ensure that they comply with our cybersecurity expectations and requirements and to address any cybersecurity issues or concerns that may arise. The Companys board of directors is responsible for overseeing and approving our cybersecurity strategy and policies. Our board of directors receives updates from management on the Companys cybersecurity status and initiatives and provides guidance and feedback on the cybersecurity goals and objectives. Our board of directors also monitors the Companys cybersecurity risks and exposures and ensures that the company has adequate cybersecurity resources and capabilities to protect its data and systems. **ITEM 2. PROPERTIES** The Company leases office space in Vero Beach, Florida for its headquarters operation at less than $100 per month. 20 [Table of Contents](#TableOfContents) **ITEM 3. LEGAL PROCEEDINGS** The Company has a number of legal situations involved with the winding down of its clinic business activities. These include claims regarding certain construction contracts and cancellation of leases as noted below: | LOCATION | | PROPERTY NAME | | ORIGINAL OBLIGATION | | | SETTLEMENT AMOUNT | | | DATE OF AWARD | | INTEREST RATE | | | INTEREST ACCRUED ON SETTLEMENT | | | TOTAL SETTLEMENT OBLIGATION | | | TYPE OF SETTLEMENT | | | WAYZETTA, MN | | WAZETTA BAY | | $ | 407,000 | | | $ | 25,000 | | | NA | | | | | | | | | | $ | 25,000 | | | CASH PAYMENT OBLIGATION | | | EAGAN, MN | | VIKINGS | | $ | 767,000 | | | $ | 488,491 | | | 12/7/2023 | | | 10 | % | | $ | 52,195 | | | $ | 540,686 | | | DEFAULT JUDGEMENT | | | ST. LOUIS PARK, MN | | EXCELSIOR | | $ | 673,000 | | | $ | 425,350 | | | 5/22/2024 | | | 10 | % | | $ | 25,987 | | | $ | 451,337 | | | DEFAULT JUDGEMENT | | | ST. PAUL, MN | | CONTINENTAL 560 | | $ | 1,153,000 | | | $ | 415,266 | | | 1/22/2024 | | | 10 | % | | $ | 39,169 | | | $ | 454,775 | | | DEFAULT JUDGEMENT | | | MAPLE GROVE, MN | | BUTTNICK | | $ | 1,153,127 | | | $ | 219,576 | | | 10/3/2022 | | | 10 | % | | $ | 49,200 | | | $ | 268,200 | | | SETTLEMENT AGREEMENT | | | DENVER, CO | | RADIANT | | $ | 782,000 | | | $ | 530,000 | | | | | | | | | | | | | $ | 530,557 | | | DISMISSED | | | DENVER, CO | | QUINCY | | $ | 1,079,000 | | | $ | 348,764 | | | 11/14/2023 | | | 12 | % | | | 47,356 | | | $ | 396,120 | | | DEFAULT JUDGEMENT | | | | | TOTAL | | $ | 6,014,127 | | | $ | 2,452,447 | | | | | | | | | $ | 213,907 | | | $ | 2,666,675 | | | | | *Quincy Clinic a.k.a. 1776 Curtis* On September 28, 2021, we entered into an agreement to open a clinic in Denver, Colorado, which was expected to begin operation in the first quarter of 2023 but possession of which has been relinquished to the landlords. The initial lease term is 94 months. Fixed rent payments under the initial term are approximately $1,079,000. A Final Judgment was granted on November 14, 2023, in the amount of $348,764 including interest, fees and other costs. The Company has released the property back to the leaseholder. The owner of the property has filed before the same court, an action against the Company (Case No. 2022 CV 33173, Division: 409, Consolidated with 2022CV33653) seeking to modify the final settlement for an additional $900,000. We intend to vigorously defend the Company as our position is that there is no basis for this claim. *Administrative office* On June 24, 2021, we entered into an agreement to open an administrative office in St. Louis Park, Minnesota. The initial lease term is 2.5 years. Fixed rent payments under the initial term were approximately $244,000. We believe that there is no further obligation in this situation, but we do not have such documented in writing at this time. **Gardner Debt for Equity Agreement and other obligations** The Company entered into a debt-for-equity exchange agreement with Gardner Builders Holdings, LLC (the Creditor) on January 7, 2022 (the Agreement). Pursuant to the Agreement, the Company issued shares of restricted common stock, par value $0.01 per share, of MITI (the Restricted Shares) to the Creditor in exchange for the Company Debt Obligations, as defined below. The Agreement settled certain accounts payable amounts owed by the Company to the Creditor (the Accounts Payable Amount) as well as then upcoming amounts that would become due between the date of the Agreement and April 1, 2022. The Agreement also settled incurred interest and penalties on the amounts due through January 5, 2022, as well as future interest payments on amounts to be incurred in the first quarter of 2022 (collectively, the Additional Costs, and combined with the Accounts Payable Amount, the Company Debt Obligations). The Accounts Payable Amount was $500,000, the Additional Costs were $294,912 and the conversion price was $12.50. As a result, 63,593 Restricted Shares were authorized to be issued. The Companys Board of Directors approved the Agreement on January 5, 2022. Much of the amounts claimed by Gardner have been resolved by the settlements with the various leaseholders where Gardner had filed liens. During 2021 and through 2022 a total of $2,305,155 was paid by the Company directly to Gardner for their services. As of the date of this filing the Company is continuing an effort to negotiate a settlement of any remaining obligations to this vendor. **ITEM 4. MINE SAFETY DISCLOSURES** Not Applicable. 21 [Table of Contents](#TableOfContents) **** **PART II** **ITEM 5. MARKET FOR REGISTRANT****S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES** **Trading Market** Our Common Stock is quoted on the OTC Pink Market with the symbol MITI. On March 21, 2024, the price of our Common Stock as reported on the OTC was $0.59 and we have approximately 2,000 holders of record of our Common Stock, and approximately 7,000 shareholders including smaller holders and those with restricted shares not currently in the market. **DESCRIPTION OF OUR CAPITAL STOCK** **General** The total number of shares of all classes of shares which we have authority to issue is 600,000,000 of which 500,000,000 shares are designated as Common Stock with a par value of $0.01 per share, and 100,000,000 shares are designated as preferred stock. As of December 31, 2024, we had 9,762,258 issued and outstanding shares of Common Stock, 563,077 shares of our Series A Preferred Stock issued or outstanding, 19,703 shares of our Series X Preferred Stock issued and outstanding and 25,000 shares of our Series D Preferred Stock issued. **DIVIDEND POLICY** We have never declared or paid any cash dividends on our Common Stock. Under the Nevada law, we may declare and pay dividends on our capital stock either out of our surplus, as defined in the relevant Nevada statutes, or if there is no such surplus, out of our net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. If, however, the capital of our company, computed in accordance with the relevant Nevada statutes, has been diminished by depreciation in the value of our property, or by losses, or otherwise, to an amount less than the aggregate amount of the capital represented by the issued and outstanding stock of all classes having a preference upon the distribution of assets, we are prohibited from declaring and paying out of such net profits and dividends upon any shares of our capital stock until the deficiency in the amount of capital represented by the issued and outstanding stock of all classes having a preference upon the distribution of assets shall have been repaired. The Company does not intend to declare or pay any cash dividends on its Common Stock in the foreseeable future. The holders of our Common Stock are entitled to receive only such dividends (cash or otherwise) as may be declared by our Board of Directors. **Series A Preferred Stock** During FY2024 we authorized the creation of up to 3,000,000 shares of a new Series A Preferred stock which has no voting rights, and pays no dividends, but ranks superior to all other securities, except for the Series X Preferred stock which is pari parsu with the Series A Preferred stock with regard to any liquidation of assets. As of the date of this filing there are 566,085 shares of Series A Preferred stock issued and outstanding. **Series X Preferred Stock** On December 31, 2019, we issued 26,227 shares of our Series X Preferred stock in order to settle certain of the Companys obligations. The Series X Preferred shares have a liquidation preference of $25.00 per share and will pay a 10% per year dividend based upon the liquidation value. The dividend may be paid in cash or in the issuance of restricted Common Stock. If the Company chooses to pay the dividend in restricted Common Stock the number of shares issued to fulfill the dividend payment shall be determined based on the stock price on the date of the 15th of the month, or the following trading day if it falls on a weekend. The Series X Preferred shares have 400 votes per share and votes with our Common Stock. As of the date of this filing, the outstanding Series X Preferred shares were 19,703. From July 2023 through September 2024, with consent of the holders, the Company used an $.80 share price in computing the number of shares to be issued to satisfy the dividend requirements, even though the actual market price was substantially lower. Starting in October 2024 the Company returned to a policy of using the actual market price in determining the number of shares to be issued in satisfaction of the dividends. **Series D Preferred Stock** Each share of Series D Preferred Stock accrues dividends on a quarterly basis in arrears, at the rate of 6% per annum of the Stated Value and to be paid within 15 days after the end of each of our fiscal quarters. The Series D Preferred Stock shares rank senior to all other preferred stock of the Company except in relation to the Companys Series X Preferred Stock with respect to the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Company. There is a single holder of the Series D Preferred shares at this time, with an accrued value of approximately $30,000. 22 [Table of Contents](#TableOfContents) *Equity Compensation Plans* For information on the Companys equity compensation plans, see Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. *Recent Sales of Unregistered Shares* ** *Common Stock Issuances in 2024* ** Restricted Common Stock Issuances | A) | During FY2024 the Company issued a total of 99,403 shares of restricted common stock for the payment of the Series X Preferred stock dividends to the nine (9) holders. Amounts noted include shares issued for five (5) holders who subsequently cancelled their Series X Preferred shares. The issuances were as follows: | | | | a. | Holder Crone received a total of 5,625 shares. Crone exchanged his Preferred X shares as of September 28, 2024, for common stock using a $4.00 per share valuation; | | | | b. | Holder DeLuca received a total of 6,759 shares. DeLuca exchanged his Preferred X shares as of September 28, 2024, for common stock using a $4.00 per share valuation; | | | c. | Holder Diamond, former CEO, received a total of 5,148 shares. Diamond exchanged his Preferred X shares as of September 28, 2024, for common stock using a $4.00 per share valuation; | | | d. | Holder Riewold received a total of 2,813 shares. Riewold exchanged his Preferred X shares as of September 28, 2024, for common stock using a $4.00 per share valuation; | | | e. | Holder Lightmas received a total of 7,594 shares. Lightmas exchanged his Preferred X shares as of September 28, 2024, for common stock using a $4.00 per share valuation; | | | f. | Holder Mitchell, a member of the Board of Directors, received a total of 8,661 shares for dividend payments; | | | g. | Holder Balencic, a member of the Board of Directors, received a total of 8,661 shares for dividend payments; | | | h. | Holder Leath, a member of the Board of Directors, received a total of 8,661 shares for dividend payments; | | | i. | Holder Anglo Irish Management LLC received a total of 45,122 shares for dividend payments. | | | B) | During FY2024 the Company issued the following shares to the Directors in consideration for their contributions outside of their roles as a Director; | | | | a. | For efforts through June 30, 2024, each of Leath, Balencic and Mitchell issued 100,000 shares of restricted stock each, a total of 300,000 shares in aggregate; | | | | b. | For efforts from July through December 31, 2024, each of Leath, Balencic and Mitchell issued 150,000 shares of restricted stock each, a total of 450,000 shares in aggregate. | | | C) | The members of the Advisory Board each received 75,000 shares of restricted stock for their contribution over a 12-month period, a total of 525,000 shares, as follows: | | | a. | Advisor Wade received 75,000 shares; Advisor Plybon received 75,000 shares; Advisor McLoughlin received 75,000 shares; Advisor Simon received 75,000 shares; Advisor Crawford received 75,000 shares; Advisor Clifton received 75,000 shares; Advisor M. Valania received 75,000 shares; | | | D) | A consultant, B. Valania, who is handling sales and marketing for the Companys Centcore subsidiary, received a total of 200,000 shares of restricted stock as consideration for his efforts; | | | E) | A. Lance, wife of the CEO Leath, received a total of 100,000 shares of restricted stock as a part of the consideration for her web site business acquired in FY2024; | | 23 [Table of Contents](#TableOfContents) | F) | As a part of the FY2024 restructuring the following issuances of restricted stock were made to former executives of the Company, effective September 28, 2024: | | | a. | L. Diamond, former CEO, received 12,500 shares in exchange for the cancellation of his Series X Preferred shares, and 137,375 shares in exchange for cancellation of all other obligations and all outstanding warrants; | | | b. | M. Diamond, daughter of the former CEO, received 20,966 shares in exchange for cancellation of all obligations and any and all outstanding warrants; | | | c. | T. Brodmerkel, a former Director of the Company, received 5,212 shares in exchange for the cancellation of all obligations and any and all outstanding warrants; | | | d. | M. Howe, former CEO of the clinic subsidiary closed in FY2022, received 172,497 shares in exchange for cancellation of all other obligations and any and all outstanding warrants; | | | e. | F. Navqi, a former Director of the Company, received 4,500 in exchange for cancellation of all other obligations and any and all outstanding warrants; | | | | f. | J. Inturregi, a former Director of the Company, received 13,864 shares in exchange for the cancellation of all other obligations and any and all outstanding warrants; | | | g. | A. Dobberlin, husband of a former officer of the Company, received 6,449 shares in exchange for cancellation of all other obligations and any and all outstanding warrants | | | h. | B. Case, a former officer of the clinic subsidiary closed in FY2022, received 30,802 shares in exchange for cancellation of all other obligations and any and all outstanding warrants | | | G) | As a part of the FY2024 restructuring the following issuances of restricted stock were made to current executives of the Company: | | | a. | J. Mitchell, a current Director of the Company, received 27,040 shares in consideration of the cancellation of all obligations to him prior to December 2023, including the cancellation of all warrants; | | | b. | M. Leath, a current Director of the Company, received 17,767 shares in consideration of the cancellation of all obligations to him prior to December 2023, including the cancellation of all warrants | | | H) | As a part of the FY2024 restructuring the following issuances of restricted stock were made to certain holders of obligations of the Company, effective September 28, 2024: | | | a. | R. Riewold received 12,500 shares in exchange for the cancellation of his Series X Preferred shares and cancellation of all other obligations and all outstanding warrants; | | | b. | F. Lightmas received 56,613 shares in exchange for the cancellation of his Series X Preferred shares and cancellation of all other obligations and all outstanding warrants; | | | c. | J. Crone received 18,025 shares in exchange for the cancellation of his Series X Preferred shares and cancellation of all other obligations and all outstanding warrants; | | | d. | Anson Investments received 617,020 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | | e. | Anson East received 210,787 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | | f. | Dragon Investments received 335,061 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | | g. | Mackay Investments received 176,560 shares in exchange for the cancellation of all obligations, including that of its principal, and all outstanding warrants; | | | h. | Darling Investments received 111,075 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | 24 [Table of Contents](#TableOfContents) | i. | Anglo Irish Management LLC received 58,718 shares in exchange for the cancellation of all obligations and all outstanding warrants of one of its shareholders; | | | | j. | The principals of Intereum, a vendor of the clinic operations, received 135,345 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | | k. | J. Enright received 68,625 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | | l. | C. Hagan received 617,020 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | | m. | J. Caplan received 37,238 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | | n. | S. Bridges received 36,646 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | | o. | E. Nommsen received 22,565 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | | p. | R. Eisenberg, and his advisors, received 18,000 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | | q. | S. Goff received 12,409 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | | r. | L. Lewis received 12,409 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | | s. | Carter, Terry & Company received 11,573 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | | t. | C. Schrier received 8,615 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | | u. | J. Ramsdell received 6,500 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | | v. | C. Schuler received 5,113 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | | w. | Imeson Consulting received 2,500 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | | x. | Exchange Listing, LLC 750 shares in exchange for the cancellation of all obligations and all outstanding warrants; | | 25 [Table of Contents](#TableOfContents) **ITEM 6. SELECTED FINANCIAL DATA** **Implications of Being a Smaller Reporting Company** We are a smaller reporting company as defined in the Exchange Act. We may take advantage of certain of the scaled disclosures available to smaller reporting companies so long as the market value of 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 most recently completed second fiscal quarter, or our annual revenue is less than $100.0 million during the most recently completed fiscal year and the market value of our Common Stock held by non-affiliates is less than $700.0 million measured on the last business day of our most recently completed second fiscal quarter. To the extent we take advantage of such reduced disclosure obligations, it may also make comparisons of our financial statements with other public companies difficult or impossible. **ITEM 7. MANAGEMENT****S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** *The following discussion and analysis should be read in conjunction with and is qualified in its entirety by and should be read together with our financial statements and the related notes thereto appearing elsewhere in this filing. This discussion contains certain forward-looking statements that involve risks and uncertainties, as described under the heading*Cautionary *Note Regarding Forward-Looking Statements*. *Actual results could differ materially from those projected in the forward-looking statements.* **Company Overview** Mitesco, Inc. (the Company, we, us, or our) was formed in the state of Delaware on January 18, 2012. On December 9, 2015, we restructured our operations and acquired Newco4pharmacy, LLC, a development stage company which sought to acquire compounding pharmacy businesses. As a part of the restructuring, we shut down our former business line. On April 24, 2020, we changed our name to Mitesco, Inc. In October 2023, the Company changed its domicile from Delaware to Nevada in order to effect reduced costs. From 2020 through 2022, our operations were focused on establishing general practice medical clinics utilizing nurse practitioners under The Good Clinic name and development and acquisition of telemedicine technology. We opened our first The Good Clinic in Minneapolis, Minnesota in the first quarter of 2021 and had six operating clinics during the year ended December 31, 2022, with two additional sites under contract. In the fourth quarter of fiscal 2022, we made the strategic decision to close the entire clinic operation and release our staff due to a lack of profitability. The financial results and obligations are now accounted for as discontinued operations. **Current Business Operations** We are a holding company seeking to provide products, services and technology. In June 2024 we announced the formation of two (2) new wholly owned business units, Centcore, LLC (Centcore) that is providing data center services including cloud computing and application hosting, and Vero Technology Ventures, LLC (VTV), whose aim is to seek investment and acquisition opportunities, generally in the areas of cloud computing and data center related applications. Centcore has two (2) areas of focus. The first, generic data center services, is aimed at hosting applications for a specific user, sometimes referred to as managed services offerings or MSO, where the client moves the software licensed from various vendors, or internally developed, into our data center where we maintain the computing, communications and backup environment. We currently offer services through a co-location agreement with a data center based in Melbourne, Florida, which has relationships with eight (8) other data centers worldwide. Using this approach, we have an ability to rapidly expand the size of our computing resources quickly, at minimal expense. Over time we expect to create similar situations with other data centers worldwide based on our clients specific needs. The second focus involves hosting software applications developed by software vendors, from which they will sell the use of the software by their end user clients on a cloud basis. By taking this approach, we gain the business of the vendor, and their clients, perhaps allowing us to grow at a faster rate with lower cost of sales. We have developed the Centcore Partner Program where we will help promote the software vendors who are hosting in our data centers. If we are successful helping the vendor grow his business, we will have provided a value added service, and benefit from increased utilization of our computing resources by not only the vendor, but also his new end user clients. Our initial focus for this area is on software providers who serve the technology infrastructure market doing design, engineering, construction and maintenance of significant systems. We desire to create life cycle relationships as the design, construction and operational life of these systems includes document management and performance modeling over years, often from 5 to 20 years. 26 [Table of Contents](#TableOfContents) We have retained experienced professionals in the data center, cyber security and infrastructure services areas to support our needs on a per hour basis, which we believe will allow us to control our costs relative to business activity, without significant staffing internally. We have also formed an Advisory Board where individuals with experience in business areas where we have interest have agreed to assist us, receiving a nominal issuance of restricted common stock, in consideration of their advice. The Vero Technology Ventures arm is actively reviewing potential early-stage cloud computing solution vendors and is developing its own artificial intelligence (A.I.) based application set (VTV) is currently involved with the formation of a new software development project aimed at applying artificial intelligence (A.I.) to the sales process for various businesses including residential real estate using cloud computing based software. This initial effort dubbed Robo Agent, is expected to be available for initial users in Q3 of FY2025. Later versions may include similar functionality focused on other markets, generally in a business to consumer (B2C) selling situation. There are several other projects in evaluation, generally aimed at software that would operate on a cloud computing platform such as that which the Company has in its Centcore Data Center. **FY2024 Debt Restructuring** From FY2021 until late FY2022 the Company invested in an operating subsidiary, The Good Clinic, which was developing a series of primary care healthcare facilities. In late FY2022, as a result of a lack of adequate revenues and limited funding, it ceased operations. As of June 30, 2024, the Company had over $30 million in senior securities, notes and accounts payable related to that discontinued operation. In order to clear those obligations management began a restructuring which involved negotiations to reduce the overall debt, converting certain accredited institutional investors into a newly created Series A Amortizing Preferred stock (Series A Preferred), and all others into restricted common stock using a price per share of $4.00. As of the date of this filing it has converted over $25 million of its obligations, representing over $20 million of its senior securities, and over $2 million of notes and accounts payable, into 2,478,179 of restricted Common Stock, and 566,085 shares of Series A Preferred stock. The Series A Preferred stock is held by six (6) accredited institutional investors, while over 40 holders of obligations of the Company elected to receive common stock using the $4 per share valuation. Included in the above totals, effective December 31, 2024, the Company has entered into Obligation Exchange Agreements pursuant to which it has converted $580,132, including $32,132 of principal and interest, of its 2024 Bridge Notes into Series A Preferred shares, which resulted in the issuance of 23,206 shares of Series A Preferred shares to three (3) of its institutional investor. This extinguishes $580,132 of its short-term debt. As of the date of this filing all FY2024 bridge notes have been extinguished. Further, during January 2025 the Company issued 4,000 shares of its Series A Preferred shares in consideration of an investment of $100,000 by three (3) of its institutional investors. As part of the restructuring, the Company agreed to register shares of Common Stock issued and to be issued to Series A Preferred Stockholders. *Advisory Board* The Board of Directors authorized the creation of a new Advisory Board whose participants shall include subject matter experts in certain business areas under consideration by the Company. These positions are non-executive and as such are not governed by Section 16 of the Securities Act. The members of the advisory board do not have the authority to vote on matters brought to the Board of Directors and may only attend a meeting of the board of directors if they are invited. Also, the members of the advisory board are not bound by fiduciary duties and are not entitled to indemnification. The compensation for the participants shall be $60,000 per year, paid through the issuance of restricted common stock. The per share valuation to be used shall be determined by the Board of Directors based on the market of the Companys common stock at the time of the appointment. For all appointments in FY2024 the valuation used was $.80 per share, resulting in the issuance of 75,000 shares of restricted common stock to each participant. The members of the advisory board do not have the authority to vote on matters brought to the board of directors and may only attend a meeting of the board of directors if they are invited. Also, the members of the advisory board are not bound by fiduciary duties and are not entitled to indemnification. The members of the Advisory Board are executives whose careers have focused on infrastructure related technology, cybersecurity, data center business development and data center systems software, and digital marketing as noted here: | | 1) | Kristen Plybon is a cybersecurity professional with a strong background in data privacy with CIPP/US and CIPP/E certifications. She is a licensed attorney with a deep understanding of state, federal, and global data protection laws and regulations. | | | | | | | | | 2) | Nathaniel Wade is a professional specializing in cybersecurity and enterprise IT operations for a number of well-known Fortune 1,000, Department of Defense (DoD), and Federal Civilian (FedCiv) agencies specializing in design and implementation of cybersecurity programs for public safety, national defense, and intelligence communication systems; | | 27 [Table of Contents](#TableOfContents) ** | | 3) | Tom Simon, the owner of Synthos LLC, a Seattle-based provider of development and support services specializing in GIS. Synthosservices include data procurement and analysis, and spatial and statistical analysis using industry leading applications such as ESRIs Arc-Info and Trimble Navigation. | | | | | | | | | 4) | Chris McLoughlin has spent his career in software and systems development and is an owner of Accucom Consulting, Inc., which specializes in network infrastructure, and Sentry RMS, which provides software to the public safety sector including various state and municipal law enforcement and fire agencies. | | | | | | | | | 5) | Gabriel Crawford has over 20 years of experience in data center development from location selection through power distribution engineering and financial structuring including co-location, data center design, key account recruitment and multi-site data distribution. | | | | | | | | | 6) | Jim Clifton is a seasoned Software Field Sales Director with over 20 years of experience in driving business growth through innovative go-to-market sales strategies focused on systems software, modern infrastructure, and data analytics and innovative implementation to improve productivity across corporations and workforces worldwide. | | | | | | | | | 7) | Mr. Marty Valania is a senior executive whose career has focused on the use of digital marketing in support of the newspaper industry, for both businesses (B2B), and direct to consumer selling. He is focused on assisting the Company establish a digital marketing operation in support of both their internal needs, and as a service to third parties. | | *Results of Operations* The following period-to-period comparisons of our financial results are not necessarily indicative of results for the current period or any future periods. Further, as a result of any acquisitions of other businesses, and any additional pharmacy acquisitions or other such transactions we may pursue, we may experience large expenditures specific to the transactions that are not incident to our operations. **Comparison of the Twelve Months ending December 31, 2024, and 2023.** Revenues We had revenues of $43,700 for the twelve months ended December 31, 2024, compared to $0 in the comparable period. The revenues were related to our newly formed subsidiary Centcore, LLC, and include sale of remote backup, general business applications, engineering analysis software and digital marketing related to our residential real estate software development effort. Operating Expenses Our total operating expenses for twelve months ended December 31, 2024, were $1,207,241. For the comparable period in 2023, the operating expenses were $2,586,668. The decrease is the result of the winding down of the Companys clinic operations with The Good Clinic, LLC subsidiary. Other Income and Expenses Interest expense was $409,745 for the twelve months ended December 31, 2024, compared to $1,615,591 for the twelve months ended December 31, 2023. The decrease was a result of reduced debt balances in the current period. Interest expense related parties was $28,474 for the twelve months ended December 31, 2024, compared to $109,502 in the prior period. The decrease was a result of reduced debt balances in the current period. During the twelve months ended December 31, 2024, we recorded a gain on termination of operating lease of $869,690. There were no comparable transactions in the prior period. During the twelve months ended December 31, 2023, we recorded equity investment incentives of approximately $7.6 million. There were no comparable transactions in the current period. During the twelve months ended December 31, 2024, we recorded a gain on settlement of debt of $515,964 compared to $25,000 for the twelve months ended December 31, 2023. During the twelve months ended December 31, 2024, we recorded a gain on settlement of accounts payable of $2,289,283 compared to $185,487 for the twelve months ended December 31, 2023. During the twelve months ended December 31, 2023, we recorded a gain on sales of assets of $8,876. There were no comparable transactions in the current period. During the twelve months ended December 31, 2023, we recorded a loss on settlement of true-up obligation of $119,370. There were no comparable transactions in the current period. During the twelve months ended December 31, 2023, we recorded a loss on legal settlement of $18,759. There were no comparable transactions in the current period. During the twelve months ended December 31, 2024, we recorded a loss of $4,585,124 on the revaluation of derivative liabilities under the default provision of certain securities, compared to a loss on revaluation of derivative liabilities of $85,773 in the prior period. 28 [Table of Contents](#TableOfContents) For the twelve months ended December 31, 2024, we had a net loss available to common shareholders from discontinued operations of $0, compared to a net loss available to common shareholders from discontinued operations of $1,368,991 for the twelve months ended December 31, 2023. For the twelve months ended December 31, 2024, we had an overall net loss available to common shareholders of $2,842,256, compared to a net loss available to common shareholders of $15,052,144 for the twelve months ended December 31, 2023. **Liquidity and Capital Resources** To date, we have not generated sufficient revenue from operations to support our operations. We have financed our operations through the sale of equity securities and short-term borrowings. As of December 31, 2024, we had cash of approximately $3,400 compared to cash of approximately $2,800 as of December 31, 2023. Our Companys recurring losses from operations and negative cash flows from operations and our need to raise additional funding to finance our operations raise substantial doubt about our ability to continue as a going concern. Net cash used in operating activities was $514,409 for the twelve months ended December 31, 2024. This is the result of the winding down of the Companys clinic operations and establishing the operations of the new Centcore business, along with SEC compliance, accounting and audit-related expenses. Cash used in operations for the twelve months ended December 31, 2023, was $759,730, of which $698,611 was related to cash used in operating activities from discontinued operations. Net cash used in investing activities for the twelve months ended December 31, 2024, was $5,000 related to the purchase of the AgingTopic. During the twelve months ended December 31, 2023, the Company had no investing activities. Net cash provided by financing activities for the twelve months ended December 31, 2024, was $519,973, compared to $726,945 for the twelve months ended December 31, 2023. Cash provided by financing activities was the result of cash proceeds from promissory notes of $548,000, offset by the repayment of principal on the SBA loan in the amount of $28,027. At December 31, 2024, we had the following current liabilities which are payable in cash: Accounts payable and accrued liabilities of $4.4 million; notes payable of $.5 million; notes payable to related parties of $0.06 million; SBA Loan Payable of $0.4 million; property-related settlements of $2.7 million; accrued interest payable of $0.4 million; accrued interest payable to related parties of $0.02 million; and other current liabilities of $0.1 million. We also have the following liabilities which are payable in stock: derivative liabilities of $4.7 million, Series A Preferred Stock liability of $5.2 million, and preferred stock dividends payable to related parties of $0.01 million. We have agreements from four (4) of our institutional investors to provide interim funding so that the Company may stay current with its accounting and reporting requirements under the Securities Act of 1934, settle obligations from the prior healthcare clinic operations and find a new business area to engage within. Through December 31, 2024, the total amount loaned under 12-month, 10% interest simple notes were $548,000, with roughly $250,000 attributable to accounting and compliance, $50,000 generally related to settlements and legal related, with the remaining for general expenses including T&E and communications. All amounts loaned through December 31, 2024, were converted into Series A preferred stock. In May 2024 we reached an agreement with the holders of our Series F Preferred shares to waive all interest payments permanently beginning May 15, 2024. This creates a reduction in accrued interest of over $200,000 per month. Similar adjustments with other holders of debt and interest paying equity are expected. As of December 31, 2024, all shares of the Series F Preferred stock have been cancelled in exchange for either restricted common stock, or the newly created Series A Preferred stock. The Company has relationships with a number of consultants who are assisting in the creation of the new business units. It is anticipated that this approach will continue indefinitely as it does not desire to create the overhead associated with a large employment force. The following table summarizes the status of our property-related settlements as noted above and the total settlement amounts as of the date of the filing: | LOCATION | | PROPERTY NAME | | ORIGINAL OBLIGATION | | | SETTLEMENT AMOUNT | | | DATE OF AWARD | | INTEREST RATE | | | INTEREST ACCRUED ON SETTLEMENT | | | TOTAL SETTLEMENT OBLIGATION | | | TYPE OF SETTLEMENT | | | WAYZETTA, MN | | WAZETTA BAY | | $ | 407,000 | | | $ | 25,000 | | | NA | | | | | | | | | | $ | 25,000 | | | CASH PAYMENT OBLIGATION | | | EAGAN, MN | | VIKINGS | | $ | 767,000 | | | $ | 488,491 | | | 12/7/2023 | | | 10 | % | | $ | 52,195 | | | $ | 540,686 | | | DEFAULT JUDGEMENT | | | ST. LOUIS PARK, MN | | EXCELSIOR | | $ | 673,000 | | | $ | 425,350 | | | 5/22/2024 | | | 10 | % | | $ | 25,987 | | | $ | 451,337 | | | DEFAULT JUDGEMENT | | | ST. PAUL, MN | | CONTINENTAL 560 | | $ | 1,153,000 | | | $ | 415,266 | | | 1/22/2024 | | | 10 | % | | $ | 39,169 | | | $ | 454,775 | | | DEFAULT JUDGEMENT | | | MAPLE GROVE, MN | | BUTTNICK | | $ | 1,153,127 | | | $ | 219,576 | | | 10/3/2022 | | | 10 | % | | $ | 49,200 | | | $ | 268,200 | | | SETTLEMENT AGREEMENT | | | DENVER, CO | | RADIANT | | $ | 782,000 | | | $ | 530,000 | | | | | | | | | | | | | $ | 530,557 | | | DISMISSED | | | DENVER, CO | | QUINCY | | $ | 1,079,000 | | | $ | 348,764 | | | 11/14/2023 | | | 12 | % | | | 47,356 | | | $ | 396,120 | | | DEFAULT JUDGEMENT | | | | | TOTAL | | $ | 6,014,127 | | | $ | 2,452,447 | | | | | | | | | $ | 213,907 | | | $ | 2,666,675 | | | | | 29 [Table of Contents](#TableOfContents) *SBA Loan* During March 2020, in response to the COVID-19 crisis, the federal government announced plans to offer loans to small businesses in various forms, including the Payroll Protection Program, or PPP, established as part of the Corona Virus Aid, Relief and Economic Security Act (CARES Act) and administered by the U.S. Small Business Administration (the SBA). On April 25, 2020, the Company entered an unsecured Promissory Note with Bank of America for a loan in the original principal amount of $460,400, and the Company received the full amount of the loan proceeds on May 4, 2020 (the PPP Loan). The PPP Loan bears interest at the rate of 1% per year. During the year ended December 31, 2022, the Company accrued interest in the amount of $4,632. On July 12, 2023, the Company received confirmation of a payment plan arrangement from the SBA. Pursuant to this payment plan, the Company agreed to pay a minimum of $2,595 each month until the loan is paid in full in July 2028. The SBA confirmed the balance due on the loan, including principal and interest, was $467,117. The Company will amortize the balance due on the loan including interest at the original PPP loan rate of 1% per annum; a gain on the restructure of debt in the amount of $40,622 was recorded on this transaction during the twelve months ended December 31, 2023, and the balance of the loan was recorded at the amount of $421,788 representing the net cash flows discounted at 1%. During the twelve months ended December 31, 2023, the Company made principal payments of $11,555 on this loan; during the twelve months ended December 31, 2023, the Company recorded interest in the amount of $5,719 on this loan. For the year ended December 31, 2024, the Company will have incurred $4,128 of interest for this loan and made payments of $28,027. *Gardner Debt for Equity Agreement and other obligations from discontinued clinic operations* The Company entered into a debt-for-equity exchange agreement with Gardner Builders Holdings, LLC (the Creditor) on January 7, 2022 (the Agreement). Pursuant to the Agreement, the Company issued shares of restricted common stock, par value $0.01 per share, of MITI (the Restricted Shares) to the Creditor in exchange for the Company Debt Obligations, as defined below. The Agreement settled certain accounts payable amounts owed by the Company to the Creditor (the Accounts Payable Amount) as well as then upcoming amounts that would become due between the date of the Agreement and April 1, 2022. The Agreement also settled incurred interest and penalties on the amounts due through January 5, 2022, as well as future interest payments on amounts to be incurred in the first quarter of 2022 (collectively, the Additional Costs, and combined with the Accounts Payable Amount, the Company Debt Obligations). The Accounts Payable Amount was $500,000, the Additional Costs were $294,912 and the conversion price was $12.50. As a result, 63,593 Restricted Shares were authorized to be issued. The Companys Board of Directors approved the Agreement on January 5, 2022. Much of the amounts claimed by Gardner have been resolved by the settlements with the various leaseholders where Gardner had filed liens. During 2021 and through 2022 a total of $2,305,155 was paid by the Company directly to Gardner for their services. As of the date of this filing the Company is continuing an effort to negotiate a settlement of any remaining obligations to this vendor. Based on our current discussions with Gardner we have an obligation of $2.2 million represented in the financial statements which yet to be resolved. We expect to ultimately resolve this through an equity issuance essentially in a form similar to others noted in our 2024 Restructuring Plan. Our financial statements as of December 31, 2024, reflect total liabilities of over $13.7 million, including certain reserves for potential liabilities related to ceased operations related largely to long term lease obligations and costs related to the construction of our facilities. A substantial amount of these liabilities may be reversed on negotiations, and it is our goal to settle the remaining amounts with non-cash consideration as noted above. There can be no assurance that all of these vendors will be willing to settle their obligations with the Company on the proposed terms, or in amounts acceptable to the Company. We remain undercapitalized and until we have resolved most of these obligations it is unlikely that we will be able to attract sufficient capital on reasonable terms to execute our business strategy. We remain committed to the resolution of these outstanding items in a fair and timely manner. *Critical Accounting Policies* We believe that the accounting policies described below are critical to understanding our business, results of operations and financial condition because they involve the use of more significant judgments and estimates in the preparation of our consolidated financial statements. An accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and any changes in the assumptions used in making the accounting estimates that are likely to occur could materially impact our consolidated financial statements. 30 [Table of Contents](#TableOfContents) *Revenue Recognition* The Company follows the guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers (the new revenue standard) to all contracts using the modified retrospective method. Revenue is recognized based on the following five step model: | | - | Identification of the contract with a customer | | | | | | | | | - | Identification of the performance obligations in the contract | | | | | | | | | - | Determination of the transaction price | | | | | | | | | - | Allocation of the transaction price to the performance obligations in the contract | | | | | | | | | - | Recognition of revenue when, or as, the Company satisfies a performance obligation | | The Company primarily earns revenue by providing generic data center services, which is aimed at hosting applications for a specific user, sometimes referred to as managed services offerings or MSO, where the client moves the software licensed from various vendors, or internally developed, into our data center where we maintain the computing, communications and backup environment. Data center service revenue is recognized on a monthly basis as the services are provided. *Stock-Based Compensation* We recognize compensation costs to employees under FASB ASC Topic 718, Compensation Stock Compensation (ASC 718). Under FASB ASC 718, companies are required to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees are required to provide services. Share-based compensation cost for stock options is estimated at the grant date based on each options fair-value as calculated by the Black-Scholes-Merton (BSM) option-pricing model. Share-based compensation arrangements may include stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant. Equity instruments issued to other than employees are recorded pursuant to the guidance contained in ASU 2018-07 (ASU 2018-07), Improvements to Non-employee Share-Based Payment Accounting, which simplified the accounting for share-based payments granted to non-employees for goods and services. Under the ASU 2018-07, most of the guidance on such payments to non-employees would be aligned with the requirements for share-based payments granted to employees. *Impairment of Long-Lived Assets* Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the consolidated balance sheet and reported at the lower of the carrying amount or fair value, less costs to sell and are no longer depreciated. The assets and liabilities of a disposal group classified as held-for-sale would be presented separately in the appropriate asset and liability sections of the consolidated balance sheet, if material. *Off-Balance Sheet Arrangements* We have no off-balance sheet arrangements that have or are likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders. **ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK** **Implications of Being a Smaller Reporting Company** We are a smaller reporting company as defined in the Exchange Act. We may take advantage of certain of the scaled disclosures available to smaller reporting companies so long as the market value of 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 most recently completed second fiscal quarter, or our annual revenue is less than $100.0 million during the most recently completed fiscal year and the market value of our Common Stock held by non-affiliates is less than $700.0 million measured on the last business day of our most recently completed second fiscal quarter. To the extent we take advantage of such reduced disclosure obligations, it may also make comparisons of our financial statements with other public companies difficult or impossible. 31 [Table of Contents](#TableOfContents) **ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA** **MITESCO, INC.** **** **INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS** **** | PAGE | | | | | | | | | | 33 | | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB 6920) | | | | | | | | 35 | | CONSOLIDATED BALANCE SHEETS | | | | | | | | 36 | | CONSOLIDATED STATEMENTS OF OPERATIONS | | | | | | | | 37 | | CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERSEQUITY (DEFICIT) | | | | | | | | 38 | | CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | | | | 40 | | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | | **** 32 [Table of Contents](#TableOfContents) **** **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** * To the Board of Directors and Stockholders of Mitesco, Inc. **Opinion on the Financial Statements** We have audited the accompanying consolidated balance sheets of Mitesco, Inc. (the Company) as of December 31, 2024 and 2023, and the related consolidated statements of operations, changes in stockholders equity, and cash flows for each of the years in the two-year period ended December 31, 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, 2024 and 2023, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America. **Basis for Opinion** These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on the Companys financial statements based on our audits. 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 audits in accordance with the standards of the PCAOB. 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 audits, 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 Companys internal control over financial reporting. Accordingly, we express no such opinion. Our audits 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 audits 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 audits provide a reasonable basis for our opinion. **Critical Audit Matters** The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Derivatives* As described in Note 10 and 12 to the Companys consolidated financial statements, when the Company issues debt that contains a conversion feature, it first evaluates whether the conversion feature meets the requirements to be treated as a derivative.If the conversion feature within convertible debt meets the requirements to be treated as a derivative, the Company estimates and records the fair value of the derivative liability upon the date of issuance.The derivative liability is revalued at the end of each reporting period. 33 [Table of Contents](#TableOfContents) We identified the Companys application of the accounting for convertible notes as a critical audit matter. The principal considerations for our determination of this critical audit matter related to the high degree of subjectivity in the Companys judgments in determining the qualitative factors.Auditing these judgments and assumptions by the Company involves auditor judgment due to the nature and extent of audit evidence and effort required to address these matters. The primary procedures we performed to address these critical audit matters included the following: | - | We obtained debt and warrant related agreements and performed the following procedures: | | | - | Reviewed agreements for all relevant terms. | | | - | Tested managements identification and treatment of agreement terms. | | | - | Recalculated managements fair value of each conversion feature based on the terms in the agreements. | | | - | Assessed the terms and evaluated the appropriateness of managements application of their accounting policies, along with their use of estimates, in the determination of the amortization of the debt discount. | | | - | Reviewed the Companys specialist calculation of the fair value of the derivative liability, including the assumptions and inputs used, and engaged an independent specialist to assess the reasonableness of the Companys calculation and provide an independent expectation of the fair value. | | * Astra Audit & Advisory LLC We have served as the Companys auditor since 2024. Tampa, Florida March 31, 2025 34 Table of Contents **** **MITESCO, INC.** **CONSOLIDATED BALANCE SHEETS** | | | December31, | | | December31, | | | | | | 2024 | | | 2023 | | | | ASSETS | | | | | | | | | | | | | | | | | | Current assets | | | | | | | | | Cash and cash equivalents | | $ | 3,402 | | | $ | 2,838 | | | | Accounts receivable | | | 29,700 | | | | - | | | | Prepaid expenses and other current assets | | | 4,968 | | | | - | | | | Total current assets | | | 38,070 | | | | 2,838 | | | | | | | | | | | | | | | Intangible assets, net | | | 151,771 | | | | - | | | | | | | | | | | | | | | Total Assets | | $ | 189,841 | | | $ | 2,838 | | | | | | | | | | | | | | | LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT) | | | | | | | | | | | Current liabilities | | | | | | | | | | | Accounts payable and accrued liabilities | | $ | 4,167,061 | | | $ | 7,838,112 | | | | Accrued interest | | | 374,376 | | | | 348,821 | | | | Accrued interest - related parties | | | 22,547 | | | | 61,792 | | | | Derivative liabilities | | | 4,685,675 | | | | 152,945 | | | | Royalty payable | | | 150,000 | | | | - | | | | Lease liability - operating leases, current | | | 99,477 | | | | 99,477 | | | | Notes payable, net of discounts | | | 548,137 | | | | 945,429 | | | | Notes payable - related parties, net of discounts | | | 64,044 | | | | 300,012 | | | | SBA loan payable | | | 393,761 | | | | 421,788 | | | | Other current liabilities | | | 96,136 | | | | 121,136 | | | | Preferred stock dividends payable | | | - | | | | 1,551,833 | | | | Preferred stock dividends payable - related parties | | | 14,439 | | | | 73,364 | | | | Legal settlements | | | 2,666,675 | | | | 2,219,886 | | | | Series A preferred stock liability, current | | | 5,160,815 | | | | - | | | | Total current liabilities | | | 18,443,143 | | | | 14,134,595 | | | | | | | | | | | | | | | Series A preferred stock liability, non-current | | | 8,162,644 | | | | - | | | | | | | | | | | | | | | Total liabilities | | | 26,605,787 | | | | 14,134,595 | | | | | | | | | | | | | | | Commitments and contingencies (Note 17) | | | | | | | | | | | | | | | | | | | | | | Stockholders equity (deficit) | | | | | | | | | | | | | | | | | | | | | | Preferred stock, $0.01 par value, 100,000,000 shares authorized; 10,000,000 shares designated Series D; 10,000 shares designated as Series E; 140,000 shares designated as Series F; and 27,324 shares designated Series X: | | | | | | | | | | | Preferred stock, Series D, $0.01 par value, 25,000 and 250,000 shares issued and outstanding as of December 31, 2024, and 2023 | | | 250 | | | | 2,500 | | | | Preferred stock, Series E, $0.01 par value, no shares issued and outstanding as of December 31, 2024, and 2023 | | | - | | | | - | | | | Preferred stock, Series F, $0.01 par value, 0 and 20,057 shares issued and outstanding as of December 31, 2024, and 2023 | | | - | | | | 201 | | | | Preferred stock, Series X, $0.01 par value, 19,703 and 24,227 shares issued and outstanding at December 31, 2024, and 2023 | | | 197 | | | | 242 | | | | Common stock, $0.01 par value, 500,000,000 shares authorized, 9,762,258 and 5,567,957 shares issued and outstanding as of December 31, 2024, and 2023, respectively | | | 97,623 | | | | 55,680 | | | | Additional paid-in capital | | | 37,341,335 | | | | 47,856,444 | | | | Accumulated deficit | | | (63,855,351 | ) | | | (62,046,824 | ) | | | Total stockholders equity (deficit) | | | (26,415,946 | ) | | | (14,131,757 | ) | | | | | | | | | | | | | | Total liabilities and stockholders equity (deficit) | | $ | 189,841 | | | $ | 2,838 | | | The accompanying notes are an integral part of these audited consolidated financial statements. 35 Table of Contents **MITESCO, INC.** **CONSOLIDATED STATEMENTS OF OPERATIONS** | | | For the Years Ended | | | | | | December 31, | | | | | | 2024 | | | 2023 | | | | | | | | | | | | | Revenue | | $ | 43,700 | | | $ | - | | | | | | | | | | | | | | | Operating expenses: | | | | | | | | | | | Cost of operations | | | 15,922 | | | | - | | | | General and administrative | | | 1,191,319 | | | | 2,454,668 | | | | Impairment of fixed assets | | | - | | | | 132,000 | | | | | | | | | | | | | | | Total operating expenses | | | 1,207,241 | | | | 2,586,668 | | | | | | | | | | | | | | | Net Operating Loss | | | (1,163,541 | ) | | | (2,586,668 | ) | | | | | | | | | | | | | | Other income (expense): | | | | | | | | | | | Interest expense | | | (409,745 | ) | | | (1,615,591 | ) | | | Interest expense - related parties | | | (28,474 | ) | | | (109,502 | ) | | | Equity investment incentives | | | - | | | | (7,644,077 | ) | | | Financing costs | | | - | | | | (18,617 | ) | | | Loss on legal settlement | | | - | | | | (18,759 | ) | | | Loss on true-up shares | | | - | | | | (119,370 | ) | | | (Loss) Gain on settlement of accounts payable | | | 2,289,283 | | | | 185,487 | | | | Gain on sale of assets | | | - | | | | 8,876 | | | | Gain on conversion of notes into common stock | | | 515,964 | | | | 25,000 | | | | (Loss) on conversion of accrued salaries and Series D preferred stock into Series F preferred stock | | | - | | | | (25,000 | ) | | | Gain on settlement of operating leases | | | 869,690 | | | | - | | | | Other Income | | | - | | | | 40,622 | | | | Loss on revaluation of derivative liabilities | | | (4,585,124 | ) | | | (85,773 | ) | | | Total other income (expense) | | | (1,348,406 | ) | | | (9,376,704 | ) | | | | | | | | | | | | | | Loss before provision for income taxes | | | (2,511,947 | ) | | | (11,963,372 | ) | | | Provision for income taxes | | | - | | | | - | | | | | | | | | | | | | | | Net loss from continuing operations | | $ | (2,511,947 | ) | | $ | (11,963,372 | ) | | | Net loss from discontinued operations | | | - | | | | (1,368,991 | ) | | | Net loss | | | (2,511,947 | ) | | | (13,332,363 | ) | | | | | | | | | | | | | | Preferred stock dividends | | | (893,828 | ) | | | (1,600,241 | ) | | | Preferred stock dividends - related parties | | | (139,901 | ) | | | (119,540 | ) | | | Deemed contribution | | | 703,420 | | | | - | | | | | | | | | | | | | | | Net loss available to common shareholders | | $ | (2,842,256 | ) | | $ | (15,052,144 | ) | | | | | | | | | | | | | | Net loss per share from continuing operations basic | | $ | (0.42 | ) | | $ | (2.64 | ) | | | Net loss per share from discontinued operations basic | | | 0.00 | | | | (0.26 | ) | | | Net loss per share - basic and diluted - basic | | | (0.42 | ) | | | (2.91 | ) | | | | | | | | | | | | | | Net loss per share from continuing operations diluted | | $ | (0.42 | ) | | $ | (2.64 | ) | | | Net loss per share from discontinued operations diluted | | | 0.00 | | | | (0.26 | ) | | | Net loss per share - basic and diluted - diluted | | | (0.42 | ) | | | (2.91 | ) | | | | | | | | | | | | | | Weighted average shares outstanding - basic | | | 6,733,863 | | | | 5,178,468 | | | | Weighted average shares outstanding - diluted | | | 6,733,863 | | | | 5,178,468 | | | The accompanying notes are an integral part of these audited consolidated financial statements. 36 Table of Contents **MITESCO, INC.** **CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS** **EQUITY (DEFICIT)** **FOR THE YEAR ENDED DECEMBER 31, 2024 and 2023** **** | | | Preferred Stock Series C | | | Preferred Stock Series D | | | Preferred Stock Series F | | | Preferred Stock Series X | | | Common Stock | | | Additional Paid-in | | | Common Stock | | | Accumulated | | | | | | | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | capital | | | Subscribed | | | Deficit | | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance, December31, 2022 | | | 1,047,619 | | | $ | 10,476 | | | | 3,100,000 | | | $ | 31,000 | | | | - | | | $ | - | | | | 24,227 | | | $ | 242 | | | | 4,630,372 | | | $ | 46,305 | | | $ | 29,452,514 | | | $ | 36,575 | | | $ | (48,714,461 | ) | | $ | (19,137,349 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Shares issued for conversion of note payable | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 57,138 | | | | 571 | | | | 82,885 | | | | - | | | | - | | | | 83,456 | | | | Shares issued as commission for fundraising | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 2,952 | | | | 30 | | | | 3,778 | | | | - | | | | - | | | | 3,808 | | | | Shares issued for true-up agreement | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 94,738 | | | | 947 | | | | 118,423 | | | | - | | | | - | | | | 119,370 | | | | Conversion of accrued salary, debt, and board fees to common stock by a related party | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 181,606 | | | | 1,816 | | | | 3,632 | | | | - | | | | - | | | | 5,448 | | | | Conversion of accounts payable to common stock | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 247,776 | | | | 2,476 | | | | 77,027 | | | | - | | | | - | | | | 79,503 | | | | Issuance of common stock to a service provider | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 300,000 | | | | 3,000 | | | | 894,000 | | | | - | | | | - | | | | 897,000 | | | | Shares issued pursuant to legal settlement | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 22,174 | | | | 222 | | | | 18,537 | | | | - | | | | - | | | | 18,759 | | | | Shares issued previously subscribed | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 2,926 | | | | 30 | | | | 36,545 | | | | (36,575 | ) | | | - | | | | - | | | | Vesting of stock options issued to employees | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 3,732 | | | | - | | | | - | | | | 3,732 | | | | Series A Dividends previously satisfied | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 10,967 | | | | - | | | | - | | | | 10,967 | | | | Shares issued for Series X dividends | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 28,275 | | | | 283 | | | | 60,281 | | | | - | | | | - | | | | 60,564 | | | | Shares issued for conversion of accounts payable | | | - | | | | - | | | | - | | | | - | | | | 147 | | | | 2 | | | | - | | | | - | | | | - | | | | - | | | | 146,212 | | | | - | | | | - | | | | 146,214 | | | | Shares sold for cash, net of costs | | | - | | | | - | | | | - | | | | - | | | | 1,746 | | | | 17 | | | | - | | | | - | | | | - | | | | - | | | | 1,583,483 | | | | - | | | | - | | | | 1,583,500 | | | | Conversion of Series C Preferred Stock to Series F Preferred Stock | | | (1,047,619 | ) | | | (10,476 | ) | | | - | | | | - | | | | 2,289 | | | | 22 | | | | - | | | | - | | | | - | | | | - | | | | 1,198,450 | | | | - | | | | - | | | | 1,187,996 | | | | Conversion of Series D Preferred Stock to Series F Preferred Stock | | | - | | | | - | | | | (2,350,000 | ) | | | (23,500 | ) | | | 4,055 | | | | 41 | | | | - | | | | - | | | | - | | | | - | | | | 1,610,965 | | | | - | | | | - | | | | 1,587,506 | | | | Conversion of Series D Preferred Stock and accrued salaries to Series F Preferred Stock by related party | | | - | | | | - | | | | (500,000 | ) | | | (5,000 | ) | | | 655 | | | | 7 | | | | - | | | | - | | | | - | | | | - | | | | 159,899 | | | | - | | | | - | | | | 154,906 | | | | Conversion of Debt to Series F Preferred Stock | | | - | | | | - | | | | - | | | | - | | | | 9,027 | | | | 90 | | | | - | | | | - | | | | - | | | | - | | | | 9,523,088 | | | | - | | | | - | | | | 9,523,178 | | | | Conversion of debt and accrued salaries to Series F Preferred Stock by related parties | | | - | | | | - | | | | - | | | | - | | | | 2,138 | | | | 22 | | | | - | | | | - | | | | - | | | | - | | | | 2,137,033 | | | | - | | | | - | | | | 2,137,055 | | | | Forgiveness of related party loans for sale of assets | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 2,454,774 | | | | | | | | | | | | 2,454,774 | | | | Preferred stock dividends | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (1,719,781 | ) | | | - | | | | - | | | | (1,719,781 | ) | | | Net loss | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (13,332,363 | ) | | | (13,332,363 | ) | | | Balance, December31, 2023 | | | - | | | $ | - | | | | 250,000 | | | $ | 2,500 | | | | 20,057 | | | $ | 201 | | | | 24,227 | | | $ | 242 | | | | 5,567,957 | | | $ | 55,680 | | | $ | 47,856,444 | | | $ | - | | | $ | (62,046,824 | ) | | $ | (14,131,757 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Shares issued for compensation | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 1,575,000 | | | | 15,750 | | | | 506,266 | | | | - | | | | - | | | | 522,016 | | | | Series X shares issued as compensation | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 7,200 | | | | 72 | | | | - | | | | - | | | | 179,928 | | | | - | | | | - | | | | 180,000 | | | | Conversion of accounts payable to common stock | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 237,349 | | | | 2,373 | | | | 59,955 | | | | - | | | | - | | | | 62,328 | | | | Conversion of debt to common stock by a related party | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 79,298 | | | | 793 | | | | 362,067 | | | | - | | | | - | | | | 362,860 | | | | Conversion of debt to common stock | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 154,107 | | | | 1,541 | | | | 40,067 | | | | - | | | | - | | | | 41,608 | | | | Conversion of Series F Preferred Stock and accrued dividends to common stock | | | - | | | | - | | | | - | | | | - | | | | (8,333 | ) | | | (84 | ) | | | - | | | | - | | | | 1,889,835 | | | | 18,899 | | | | 968,676 | | | | - | | | | - | | | | 987,491 | | | | Conversion of Series D Preferred Stock and accrued dividends to common stock | | | - | | | | - | | | | (100,000 | ) | | | (1,000 | ) | | | - | | | | - | | | | - | | | | - | | | | 30,802 | | | | 308 | | | | 100,857 | | | | - | | | | - | | | | 100,165 | | | | Conversion of Series X Preferred Stock to common stock | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (11,724 | ) | | | (117 | ) | | | 86,788 | | | | 868 | | | | (751 | ) | | | - | | | | - | | | | - | | | | Exchange of Series D and Series F Preferred for Series A Preferred | | | - | | | | - | | | | (125,000 | ) | | | (1,250 | ) | | | (11,724 | ) | | | (117 | ) | | | - | | | | - | | | | - | | | | - | | | | (11,853,882 | ) | | | - | | | | 703,420 | | | | (11,151,829 | ) | | | Preferred stock dividends | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (1,033,729 | ) | | | - | | | | - | | | | (1,033,729 | ) | | | Shares issued for Series X dividends | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 141,122 | | | | 1,411 | | | | 103,043 | | | | - | | | | - | | | | 104,454 | | | | Release of true-up obligation on commitment shares | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 152,945 | | | | - | | | | - | | | | 152,945 | | | | Establishment of derivative liability of conversion feature upon default | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (100,551 | ) | | | - | | | | - | | | | (100,551 | ) | | | Net income | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (2,511,947 | ) | | | (2,511,947 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance, December31, 2024 | | | - | | | $ | - | | | | 25,000 | | | $ | 250 | | | | - | | | $ | - | | | | 19,703 | | | $ | 197 | | | | 9,762,258 | | | $ | 97,623 | | | $ | 37,341,335 | | | $ | - | | | $ | (63,855,351 | ) | | $ | (26,415,946 | ) | | The accompanying notes are an integral part of these audited consolidated financial statements. 37 Table of Contents **MITESCO, INC.** **CONSOLIDATED STATEMENTS OF CASH FLOWS** | | | For the Years | | | | | | Ended | | | | | | December 31, | | | | | | 2024 | | | 2023 | | | | CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | Net loss from continuing operations | | $ | (2,511,947 | ) | | $ | (11,963,372 | ) | | | Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | Impairment of assets | | | - | | | | 132,000 | | | | Amortization of intangible assets | | | 3,229 | | | | - | | | | Penalties on notes payable | | | - | | | | 1,027,778 | | | | Conversion fees on notes payable | | | - | | | | 75,000 | | | | Equity investment incentives | | | - | | | | 7,644,077 | | | | Gain on settlement of operating leases | | | (869,690 | ) | | | - | | | | Loss on commitment shares | | | - | | | | 119,370 | | | | Loss on conversion of accrued salary | | | - | | | | 25,000 | | | | Gain on settlement of notes payable | | | (515,964 | ) | | | (164,837 | ) | | | (Gain) loss on revaluation of derivative liabilities | | | 4,585,124 | | | | 85,773 | | | | (Gain) loss on settlement of accounts payable | | | (2,289,283 | ) | | | 24,895 | | | | Loss on legal settlement | | | - | | | | 18,759 | | | | Amortization of discount on notes payable | | | - | | | | 32,011 | | | | Amortization of discount on notes payable - related parties | | | - | | | | 19,587 | | | | Share-based compensation | | | 702,016 | | | | 904,540 | | | | Other income | | | - | | | | (40,622 | ) | | | Changes in assets and liabilities: | | | | | | | | | | | Accounts receivable | | | (29,700 | ) | | | - | | | | Prepaid expenses and other current assets | | | (4,968 | ) | | | 51,632 | | | | Accounts payable and accrued liabilities | | | 195,578 | | | | 1,491,390 | | | | Operating lease liability, net | | | - | | | | (38,948 | ) | | | Other current liabilities | | | - | | | | 25,000 | | | | Accrued interest | | | 187,215 | | | | 471,564 | | | | Accrued interest - related parties | | | 33,981 | | | | (1,716 | ) | | | Net cash provided by operating activities continuing operations | | | (514,409 | ) | | | (61,119 | ) | | | Net cash used in operating activities discontinued operations | | | - | | | | (698,611 | ) | | | Net cash used in operating activities | | | (514,409 | ) | | | (759,730 | ) | | | | | | | | | | | | | | CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | | | | Cash paid for acquisition of business | | | (5,000 | ) | | | - | | | | Net cash used in investing activities | | | (5,000 | ) | | | - | | | | | | | | | | | | | | | CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | | | | Proceeds from sales of Series F Preferred Stock, net of fees | | | - | | | | 738,500 | | | | Principal payments on SBA Loan | | | (28,027 | ) | | | (11,555 | ) | | | Proceeds from notes payable, net of discounts | | | 548,000 | | | | - | | | | Net cash provided by financing activities | | | 519,973 | | | | 726,945 | | | | | | | | | | | | | | | Net change in cash and cash equivalents | | | 564 | | | | (32,785 | ) | | | | | | | | | | | | | | Cash and cash equivalents at beginning of period | | | 2,838 | | | | 35,623 | | | | Cash and cash equivalents at end of period | | $ | 3,402 | | | $ | 2,838 | | | The accompanying notes are an integral part of these audited consolidated financial statements. **** 38 Table of Contents **** **MITESCO, INC.** **CONSOLIDATED STATEMENTS OF CASH FLOWS** | | | For the Years | | | | | | Ended | | | | | | December 31, | | | | | | 2024 | | | 2023 | | | | | | | | | | | | | SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | | | | | | | | | Interest paid | | $ | 4,128 | | | $ | - | | | | Income taxes paid | | $ | - | | | $ | - | | | | | | | | | | | | | | | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | Stock issued for common stock subscribed | | $ | - | | | $ | 36,575 | | | | Preferred stock dividend | | $ | 1,033,729 | | | $ | 1,719,781 | | | | Conversion of accounts payable to Series F Preferred Stock | | $ | - | | | $ | 146,214 | | | | Conversion of Series C Preferred Stock to Series F Preferred Stock | | $ | - | | | $ | 1,198,472 | | | | Conversion of Series D Preferred Stock to Series F Preferred Stock | | $ | - | | | $ | 1,611,006 | | | | Conversion of accounts payable to common stock | | $ | 62,328 | | | $ | 79,503 | | | | Conversion of Series D Preferred Stock and accrued salaries to Series F Preferred Stock by related party | | $ | - | | | $ | 159,906 | | | | Conversion of notes payable and accrued interest to Series F Preferred Stock | | $ | - | | | $ | 9,523,178 | | | | Conversion of debt and accrued salaries to Series F Preferred Stock by related parties | | $ | - | | | $ | 2,137,055 | | | | Conversion of accounts payable, accrued salaries, and board fees to common stock | | $ | - | | | $ | 5,448 | | | | Conversion of notes payable and accrued interest to common stock | | $ | 363,608 | | | $ | 83,456 | | | | Series A accrued dividends reclassified to APIC from prior transactions | | $ | - | | | $ | 10,967 | | | | Shares issued for Series X dividends | | $ | 104,454 | | | $ | 60,564 | | | | Forgiveness of notes for purchase of subsidiary assets | | $ | - | | | $ | 2,454,774 | | | | Conversion of notes payable to common stock - related party | | $ | 969,469 | | | $ | - | | | | (Decrease) Increase in capital expenditures included in accounts payable | | $ | 987,575 | | | $ | - | | | | Conversion of Series D Preferred Stock and accrued dividends to common stock | | $ | 101,165 | | | $ | - | | | | Conversion of Series X Preferred Stock and accrued dividends to common stock | | $ | 117 | | | $ | - | | | | Conversion of Series F and Series D preferred stock to Series A preferred stock | | $ | 12,774,079 | | | $ | - | | | | Conversion of Notes Payable and accrued interest to Series A preferred stock | | $ | 580,132 | | | $ | - | | | | Royalty payable issued for purchase of business | | $ | 150,000 | | | $ | - | | | | Release of true-up obligation on commitment shares | | $ | 152,945 | | | $ | - | | | | Establishment of derivative liability of conversion feature upon default | | $ | 100,551 | | | $ | - | | | The accompanying notes are an integral part of these audited consolidated financial statements. 39 Table of Contents **** **MITESCO, INC.** **NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** **Note 1: Description of Business** **Company Overview** Mitesco, Inc. (the Company, we, us, or our) was formed in the state of Delaware on January 18, 2012. On December 9, 2015, we restructured our operations and acquired Newco4pharmacy, LLC, a development stage company which sought to acquire compounding pharmacy businesses. As a part of the restructuring, we completed a spin out of our former business line. On April 24, 2020, we changed our name to Mitesco, Inc. In October 2023, the Company completed a move of its corporate status to Nevada from Delaware in order to effect reduced costs. From 2020 through 2022, our operations were focused on establishing medical clinics utilizing Nurse Practitioners under The Good Clinic name and development and acquisition of telemedicine technology. We opened our first The Good Clinic in Minneapolis, Minnesota in the first quarter of 2021 and had six operating clinics during the year ended December 31, 2022, with two additional sites under contract. In the fourth quarter of fiscal 2022, we made the strategic decision to close the entire clinic operation and release our staff due to a lack of profitability. We are a holding company seeking to provide products, services and technology. We have a number of near-term opportunities that we hope to pursue, assuming the capital markets make sufficient funding available at reasonable rates. During the first quarter of 2024 we recruited a number of individuals to a newly formed Advisory Board, who might assist the Company in determining the viability of certain ventures going forward. These individuals have a background in data center services, cyber and data security and software applications related to infrastructure design, implementation and management including geographical information systems (GIS). In June 2024 we announced the formation of two (2) new wholly owned business units, Centcore, LLC, who is providing data center services including cloud computing and application hosting, and Vero Technology Ventures, LLC, whose aim is to seek investment and acquisition opportunities, generally in the areas of cloud computing and data center related applications. Centcore has two (2) areas of focus. The first, generic data center services, is aimed at hosting applications for a specific user, sometimes referred to as managed services offerings or MSO, where the client moves the software licensed from various vendors, or internally developed, into our data center where we maintain the computing, communications and backup environment. The second focus involves hosting application software developed by software vendors, from which they will sell the use of the software by their end user clients on a cloud basis. By taking this approach, we hope to gain the business of the vendor, and their clients, perhaps allowing us to grow at a faster rate with lower cost of sales. We have developed the Centcore Partner Program where we will help promote the software vendors who are hosting in our data centers. If we are successful helping the vendor grow his business, we will have provided a value added service, and benefit from increased utilization of our computing resources by not only the vendor, but also his new end user clients. Our initial focus for this area is on software providers who serve the infrastructure market doing design, engineering, construction and maintenance of significant assets. We desire to create life cycle relationships with both the design teams, and owners which may include private owners such as manufacturers and utilities, or publicly owned assets for municipalities, states or federal governments, domestically and internationally. We have retained proven professionals in the data center, cyber security and infrastructure services areas to support our needs on a per hour basis, which we believe will allow us to control our costs relative to business activity, without significant staffing internally. **Note 2: Going Concern** As of December 31, 2024, the Company had cash and cash equivalents of approximately $3,000, current liabilities of approximately $18.4 million, and has incurred significant losses from the previous clinic operations. As previously noted, we made a strategic decision to reduce our capital needs by closing our entire clinic operations in the fourth quarter of 2022 and releasing our entire staff, due to lack of profitability. The Companys activities are subject to significant risks and uncertainties, including failing to secure additional funding to execute its business plan. As a result of these factors, there is substantial doubt about the ability of the Company to continue as a going concern for one year from the date the financial statements are issued. The Companys continuance is dependent on raising capital and generating revenues sufficient to sustain operations. However, as of the date of these consolidated financial statements, no formal agreement exists. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts classified as liabilities that might be necessary should the Company be forced to take any such actions. 40 Table of Contents The COVID-19 pandemic, decades-high inflation and concerns about an economic recession in the United States or other major markets has resulted in, among other things, volatility in the capital markets that may have the effect of reducing the Companys ability to access capital, which could in the future negatively affect the Companys liquidity. In addition, a recession or market correction due to these factors could materially affect the Companys business and the value of its common stock. **Note 3: Summary of Significant Accounting Policies** **** Basis of Presentation* The consolidated financial statements are prepared in conformity with accounting principles accepted in the United States of America (GAAP). **** *Principles of Consolidation* The accompanying consolidated financial statements include the accounts of Mitesco, Inc., and its wholly owned subsidiaries Mitesco NA, LLC, The Good Clinic, LLC, Vero Technology Ventures, LLC, and Centcore, LLC. In addition, we relied on the operating activities of certain legal entities in which we did not maintain a controlling ownership interest, but over which we had indirect influence and of which we were considered the primary beneficiary. These entities are typically subject to nominee ownership and transfer restriction agreements that effectively transfer the majority of the economic risks and rewards of their ownership to the Company. The Companys management, restrictions and other agreements concerning such nominee-owned entities typically include both financial terms and protective and participating rights to the entities operating, strategic and non-clinical governance decisions which transfer substantial powers over and economic responsibility for these entities to the Company. As such, the Company applies the guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 810 Consolidation (ASC 810), to determine when an entity that is insufficiently capitalized or not controlled through its voting interests, referred to as a variable interest entity should be consolidated. All intercompany balances and transactions have been eliminated. **** *Use of Estimates -* The preparation of these financial statements requires our management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and related notes. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. *Cash -* The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. *Property and Equipment -*Property and equipment is recorded at the lower of cost or estimated net recoverable amount and is depreciated using the straight-line method over its estimated useful life. Property acquired in a business combination is recorded at estimated initial fair value. Property and equipment are depreciated using the straight-line method based on the lesser of the estimated useful lives of the assets or the lease term based upon the following life expectancy: | | | | Years | | | | Office equipment | | | 3 to 5 | | | | Furniture & fixtures | | | 3 to 7 | | | | Machinery & equipment | | | 3 to 10 | | | | Leasehold improvements | | | Term of lease | | | *Revenue Recognition* The Company recognizes revenue in accordance with ASC 606 when it has satisfied the performance obligations under an arrangement with the customer reflecting the terms and conditions under which products or services will be provided, the fee is fixed or determinable, and collection of any related receivable is probable. ASC Topic 606, Revenue from Contracts with Customers establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entitys contracts to provide goods or services to customers. Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: 1) identify the contract with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to performance obligations in the contract; and 5) recognize revenue as the performance obligation is satisfied. Our revenues generally relate to data center services. Revenues are recorded during the period our obligations to provide services are satisfied. The Companys performance obligation for its revenue stream is to provide the access to its data centers to the customer, and revenues associated with completed sales are recognized at a point in time when they are provided to the customer. There is no significant financing component to the Companys sales. *Stock-Based Compensation **-***We recognize the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees are required to provide services. Share-based compensation cost for stock options is estimated at the grant date based on each options fair-value as calculated by the Black-Scholes-Merton (BSM) option-pricing model. Share-based compensation arrangements may include stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant. 41 [Table of Contents](#TableOfContents) Equity instruments issued to those other than employees are recognized pursuant to FASB issued ASU 2018-07, Compensation Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This ASU relates to the accounting for non-employee share-based payments. The amendment in this update expands the scope of Topic 718 to include all share-based payment transactions in which a grantor acquired goods or services to be used or consumed in a grantors own operations by issuing share-based payment awards. The ASU excludes share-based payment awards that relate to: (1) financing to the issuer; or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts from Customers. The share-based payments are to be measured at grant-date fair value of the equity instruments that the entity is obligated to issue when the goods or service has been delivered or rendered and all other conditions necessary to earn the right to benefit from the equity instruments have been satisfied. *Convertible Instruments*- The Company reviews the terms of convertible debt and equity instruments to determine whether there are conversion features or embedded derivative instruments including embedded conversion options that are required to be bifurcated and accounted for separately as a derivative financial instrument. In circumstances where the convertible instrument contains more than one embedded derivative instrument, including conversion options that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single compound instrument. Also, in connection with the sale of convertible debt and equity instruments, the Company may issue free standing warrants that may, depending on their terms, be accounted for as derivative instrument liabilities, rather than as equity. When convertible debt or equity instruments contain embedded derivative instruments that are to be bifurcated and accounted for separately, the total proceeds allocated to the convertible host instruments are first allocated to the fair value of the bifurcated derivative instrument. The remaining proceeds, if any, are then allocated to the convertible instruments themselves, usually resulting in those instruments being recorded at a discount from their face amount. When the Company issues debt securities, which bear interest at rates that are lower than market rates, the Company recognizes a discount, which is offset against the carrying value of the debt. Such a discount from the face value of the debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to income. In addition, certain conversion features are recognized as beneficial conversion features to the extent the conversion price as defined in the convertible note is less than the closing stock price on the issuance of the convertible notes. *Derivative Financial Instruments*- Derivatives are recorded on the consolidated balance sheet at fair value. The conversion features of the convertible notes are embedded derivatives and are separately valued and accounted for on the consolidated balance sheet with changes in fair value recognized during the period of change as a separate component of other income/expense. Fair values for exchange-traded securities and derivatives are based on quoted market prices. The pricing model the Company uses for determining the fair value of its derivatives is the Monte Carlo Model. Valuations derived from this model are subject to ongoing internal and external verification and review. The model uses market-sourced inputs such as interest rates and stock price volatilities. *Common Stock Purchase Warrants -*The Company accounts for common stock purchase warrants in accordance with the FASB ASC Topic 815, Accounting for Derivative Instruments and Hedging Activities. As is consistent with its handling of stock compensation and embedded derivative instruments, the Companys cost for stock warrants is estimated at the grant date based on each warrants fair-value as calculated by the BSM option-pricing model value method for valuing the impact of the expense associated with these warrants. Per Share Data - Basic income (loss) per share is computed by dividing net loss by the weighted average number of common shares outstanding for the year. Diluted loss per share is computed by dividing net loss by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive) related to warrants, options, and convertible instruments. As of December 31, 2024, and 2023 the effect of 1,252 shares issuable upon conversions of the Series D preferred shares, 11,969,780 shares issuable upon the conversion of convertible notes, and 54,434 shares issuable upon exercise of the outstanding warrant and common stock options were anti-dilutive and not included in the computation of dilutive earnings per share. *Income Taxes -* The Company accounts for income taxes under the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Companys consolidated financial statements or tax returns. In estimating future tax consequences, the Company considers all expected future events other than enactments of changes in the tax laws or rates. 42 [Table of Contents](#TableOfContents) Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all the deferred tax assets will not be realized. The Company has determined that a valuation allowance is needed due to recent taxable net operating losses and the limited taxable income in the carryback periods. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and certain tax loss carryforwards, less any valuation allowance. The Company accounts for uncertain tax positions as required in that a position taken or expected to be taken in a tax return is recognized in the consolidated financial statements when it is more likely than not (i.e., a likelihood of more than 50%) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than 50% of being realized upon ultimate settlement. The Company does not have any material unrecognized tax benefits. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as components of interest expense and other expense, respectively, in arrival at pretax income or loss. The Company does not have any interest and penalties accrued. The Company is no longer subject to U.S. federal, state, and local income tax examinations for the years before 2012. *Long-lived Assets* The Company amortizes acquired definite-lived intangible assets over their estimated useful lives. Other indefinite-lived intangible assets are not amortized but subject to annual impairment tests.In accordance with ASC 360 Property Plant and Equipment, the Company reviews the carrying value of intangibles subject to amortization and long-lived assets for impairment throughout the year or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. ** *Impairment of Long-Lived Assets -*Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the consolidated balance sheet and reported at the lower of the carrying amount or fair value, less costs to sell and are no longer depreciated. The assets and liabilities of a disposal group classified as held-for-sale would be presented separately in the appropriate asset and liability sections of the consolidated balance sheet, if material. *Financial Instruments and Fair Values -*The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time, based upon relevant market information about the financial instrument. In determining fair value, we use various valuation methodologies and prioritize the use of observable inputs. We assess the inputs used to measure fair value using a three-tier hierarchy based on the extent to which inputs used in measuring fair value are observable in the market: Level 1 inputs include exchange quoted prices for identical instruments and are the most observable. Level 2 inputs include brokered and/or quoted prices for similar assets and observable inputs such as interest rates. Level 3 inputs include data not observable in the market and reflect management judgment about the assumptions market participants would use in pricing the asset or liability. The use of observable and unobservable inputs and their significance in measuring fair value are reflected in our hierarchy assessment. The carrying amount of cash, prepaid assets, accounts payable and accrued liabilities approximate fair value due to the short-term maturities of these instruments. Because cash and cash equivalents are readily liquidated, management classifies these values as Level 1. The fair value of the derivative liabilities approximates their book value as the instruments are short-term in nature and contain market rates of interest. Because there is no ready market or observable transactions, management classifies the derivative liabilities as Level 3. *Segments* **** The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Companys Chief Operating Decision Maker (CODM) is its Chief Executive Officer. The CODM allocates resources and evaluates the performance of the Company at the consolidated level using information about its revenues, gross profit, and income from operations. All significant operating decisions are based upon an analysis of the Company asoneoperating segment, which is the same as its reporting segment. 43 [Table of Contents](#TableOfContents) **** *Recent Accounting Standards* In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740)*: *Improvements to Income Tax Disclosures,*which expands the disclosures required for income taxes. This ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendment should be applied on a prospective basis while retrospective application is permitted. The Company is currently evaluating the effect of this pronouncement on its disclosures. There are various other updates recently issued, most of which represent technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on the Companys consolidated financial position, results of operations or cash flows. **Note 4: Discontinued Operations** In the fourth quarter of fiscal 2022, we made the strategic decision to close the entire clinic operation and release our staff due to a lack of profitability. On December 8, 2023, the Company sold the remaining assets of The Good Clinic, LLC to Leading Primary Care LLC, a company organized by Michael C. Howe, the former CEO of The Good Clinic, LLC for total consideration of approximately $2.5 million. ASC 360-10-45-9 requires that a long-lived asset (disposal group) to be sold shall be classified as held for sale in the period in which a set of criteria have been met, including criteria that the sale of the asset (disposal group) is probable and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. This criterion was achieved on December 8, 2023. Additionally, the discontinued operations are comprised of the entirety of The Good Clinic, LLC. For comparability purposes certain prior period line items relating to the assets held for sale have been reclassified and presented as discontinued operations for all periods presented in the accompanying consolidated statements of net loss and comprehensive loss and the consolidated balance sheets. The Company had no assets or liabilities classified that were classified as part of discontinued operations as of December 31, 2024, or 2023. The following information presents the major classes of line items constituting the after-tax loss from discontinued operations in the consolidated statements of operations: | | | Year Ended | | | | | | December31, | | | December31, | | | | | | 2024 | | | 2023 | | | | Revenue | | $ | - | | | $ | 181,012 | | | | Cost of goods sold | | | - | | | | - | | | | Gross margin | | | - | | | | 181,012 | | | | | | | | | | | | | | | Selling, general, and administrative expenses | | | - | | | | (1,166,120 | ) | | | Impairment of assets | | | - | | | | (2,211,462 | ) | | | | | | | | | | | | | | Other (income) expense: | | | | | | | | | | | Interest expense | | | - | | | | (306,032 | ) | | | Gain on sale of assets | | | - | | | | 11,268 | | | | Gain on settlement of accounts payable | | | - | | | | 81,263 | | | | Gain on settlement of operating lease | | | - | | | | 2,041,080 | | | | Loss from discontinued operations, net of tax | | $ | - | | | $ | (1,368,991 | ) | | The following information presents the major classes of line items constituting significant operating and investing cash flow activities in the consolidated statements of cash flows relating to discontinued operations: | | | Year Ended | | | | | | December 31, | | | December31, | | | | | | 2024 | | | 2023 | | | | | | | | | | | | | Depreciation expense | | $ | - | | | $ | 81,765 | | | | Cash used for construction in progress and fixed assets | | $ | - | | | $ | - | | | | Impairment of RTU assets | | $ | - | | | $ | 544,063 | | | | Impairment of property and equipment | | $ | - | | | $ | 1,667,399 | | | 44 [Table of Contents](#TableOfContents) **Note 5: Business Acquisition** On December 6, 2024, the Company entered into an Exclusive Source Code License agreement (the License Agreement) between AgingTopic, LLC (AgingTopic) and the Company where the Company has acquired, subject to certain payment milestones, the source code and business activities of AgingTopic, which constitutes substantially all of AgingTopics assets utilized in the creation of advertising revenue from blog postings. The entity that owns the business and source code is controlled by Ms. Amy Lance, the wife of Mack Leath. The agreement calls for a $5,000 cash payment upon execution, and certain royalty payments up to a maximum of $150,000, at which time it becomes a fully paid-up license. The royalty payments are to be repaid at 30% of net collection up to the first $50,000 has been repaid, after which the remaining $100,000 will be repaid based on 15% of net collections. After the payment of the $150,000 license fee, the Company will then pay a commission of 2.5% of net collections until 36 months after the date of the agreement. This acquisition closed on December 6, 2024. The acquisition of AgingTopic is being accounted for as a business combination under ASC 805. The Company is continuing to gather evidence to evaluate what identifiable intangible assets were acquired, such as a customer list, and the fair value of each, and expects to finalize the fair value of the acquired assets within one year of the acquisition date.The Company assigned the preliminary fair value of the consideration paid of $155,000 to domain name intangible assets that are amortized over an estimated useful life of four years. AgingTopic had not yet generated revenues prior to the time of acquisition. **Note 6: Intangible assets** **** The following table represents the balances of intangible assets as of December 31, 2024, and 2023; **** | | | December31, 2024 | | | December 31, 2023 | | | | Website Domains | | $ | 155,000 | | | $ | - | | | | | | | | | | | | | | | Total Intangible assets | | | 155,000 | | | | - | | | | | | | | | | | | | | | Accumulated Amortization website domains | | | (3,229 | ) | | | - | | | | Net intangible assets | | $ | 151,771 | | | $ | - | | | **** On December 6, 2024, the Company closed on its acquisition of the AgingTopic Business and allocated the entire $155,000 purchase price to domain name assets with an estimated life of 4 years. **** The following is an amortization analysis of the annual amortization of intangible assets on a fiscal year basis as of December 31, 2024: | For the year ended December 31, | | Amount | | | | 2025 | | $ | 38,750 | | | | 2026 | | | 38,750 | | | | 2027 | | | 38,750 | | | | 2028 | | | 35,521 | | | | 2029 and Thereafter | | | - | | | | Total remaining intangibles amortization | | | 151,771 | | | **** **Note 7: Accounts Payable and Accrued Liabilities** Accounts payable and accrued liabilities consisted of the following at December 31, 2024, and 2023: | | | December31, | | | December31, | | | | | | 2024 | | | 2023 | | | | Trade accounts payable | | $ | 3,677,455 | | | $ | 7,094,334 | | | | Accrued payroll and payroll taxes | | | 489,606 | | | | 743,778 | | | | Total accounts payable and accrued liabilities | | $ | 4,167,061 | | | $ | 7,838,112 | | | **Note 8: Right to Use Assets and Lease Liabilities** **Operating Leases** The Company hadoperating leases for its clinics for which the Company is currently in negotiations with the Lessors to settle the remaining amounts owed after closing the clinic facilities. The Companys lease expense was entirely comprised of operating leases and is reported as a component of discontinued operations as a result of the closing of the clinics and the subsequent sale of the assets. During the year ended December 31, 2023, the Company recognized an impairment in the amount of $0.5 million in connection with its remaining leased properties. Operating lease liabilities are summarized below: | | | December31, 2024 | | | December31, 2023 | | | | Lease liability | | $ | 99,477 | | | $ | 99,477 | | | | Less: current portion | | | (99,477 | ) | | | (99,477 | ) | | | Lease liability, non-current | | $ | - | | | $ | - | | | 45 [Table of Contents](#TableOfContents) As a result of closing the facilities, the Company has made no further lease payments during the year ending December 31, 2024, and 2023. As of December 31, 2024, the Company has either settled amounts owed or entered into default judgements for all leases except for the office lease. For all leases for which a legal settlement has been entered into, all amounts have been reclassified to legal settlements as of December 31, 2024. As of December 31, 2024, the Company has entered into settlement agreements for certain of our lease in the amount of $2,219,886 which is recorded as *Legal Settlements* in the accompanying balance sheet. During the year ended December 31, 2024, the Company recorded a gain of $869,690 as a result of a final settlement in addition to reclassifying certain accounts payable related to the leases to legal settlements. As of December 31, 2024, the Company has total legal settlement agreements and related accrued interest in the amount of $2,666,675 which is recorded as *Legal Settlements* in the accompanying balance sheet. **Note 9: SBA Loan Payable** *PPP Loan Conversion to SBA Loan* During March 2020, in response to the COVID-19 crisis, the federal government announced plans to offer loans to small businesses in various forms, including the Payroll Protection Program, or PPP, established as part of the Corona Virus Aid, Relief and Economic Security Act (CARES Act) and administered by the U.S. Small Business Administration (the SBA). On April 25, 2020, the Company entered an unsecured Promissory Note with Bank of America for a loan in the original principal amount of $460,400, and the Company received the full amount of the loan proceeds on May 4, 2020 (the PPP Loan). The PPP Loan bears interest at the rate of 1% per year. On July 12, 2023, the Company received confirmation of a payment plan arrangement from the SBA. Pursuant to this payment plan, the Company agreed to pay a minimum of $2,595 each month until the loan is paid in full in July 2028. The SBA confirmed the balance due on the loan, including principal and interest, was $467,117. The Company will amortize the balance due on the loan including interest at the original PPP loan rate of 1% per annum; a gain on restructuring of debt in the amount of $40,622 was recorded on this transaction during the year ended December 31, 2023, and the balance of the loan was recorded at the amount of $433,343 representing the net cash flows discounted at 1%. During the years ended December 31, 2024, and 2023, the Company made principal payments of $28,027 and $11,555 on this loan and recorded interest in the amount of $4,128 and $5,719, respectively. The balance as of December 31, 2024, was $393,761. **Note 10: Notes Payable** The following table summarizes the outstanding notes payable as of December 31, 2024, and 2023, respectively: | | | December31, 2024 | | | December31, 2023 | | | | Kishon Note | | $ | 431,666 | | | $ | 431,666 | | | | Finnegan Note 1 | | | 51,765 | | | | 51,765 | | | | Finnegan Note 2 | | | 32,353 | | | | 32,353 | | | | Schrier Note | | | - | | | | 25,882 | | | | Nommsen Note | | | - | | | | 64,705 | | | | Caplan Note | | | - | | | | 64,705 | | | | Finnegan Note 3 | | | 32,353 | | | | 32,353 | | | | Lightmas Note | | | - | | | | 66,000 | | | | Lewis Note | | | - | | | | 33,000 | | | | Goff Note | | | - | | | | 33,000 | | | | Hagan Note | | | - | | | | 110,000 | | | | Total Notes Payable | | | 548,137 | | | | 945,429 | | | | | | | | | | | | | | | Current Portion | | | 548,137 | | | | 945,429 | | | | Long-term portion | | $ | - | | | $ | - | | | *Kishon Note* On May 10, 2022, the Company entered into a Securities Purchase Agreement (the Kishon Agreement) with Kishon Investments, LLC (Kishon) with respect to the sale and issuance to Kishon of: (i) an initial commitment fee in the amount of $159,259 in the form of 12,741 shares (the Kishon Commitment Fee Shares) of the Companys Common Stock, (ii) a promissory note in the aggregate principal amount of $277,777 (the Kishon Note), and (iii) Common Stock Purchase Warrants to purchase 5,556 shares of the Companys common stock (the Kishon Warrants). Should Kishon receive net proceeds of less than $159,259 from the sale of the Kishon Commitment Fee Shares, the Company will issue additional shares to Kishon or pay the shortfall amount to Kishon in cash. The terms of the Kishon Agreement resulted in the Company recording a derivative liability in the initial amount of $27,793. 46 [Table of Contents](#TableOfContents) The Kishon Note was issued in the principal amount of $277,777 for a purchase price of $250,000 resulting in an original issue discount of $27,777. The Kishon Note has a due date of November 10, 2022, and bears interest at the rate of 10% per year for the first six months and 12% thereafter. In the event of default as defined in the Kishon Note this rate will increase to 18%, and the Kishon Note will become convertible at a price per share equal to the lowest trading price during the previous twenty trading days prior to the conversion date. The Kishon Note entered default status on November 11, 2022. The Kishon Commitment Fee Shares and Kishon Warrants resulted in a discount to the Kishon Note in the amount of $138,492. During the year ended December 31, 2023, a default penalty in the amount of $138,889 and an additional fee in the amount of $15,000 were added to the principal amount of the Kishon Note. During the year ended December 31, 2024, as a result of the variable price of the conversion feature, the Company recorded an initial derivative liability of $100,551 upon bifurcating the conversion feature pursuant to ASC815. See Note 12 to these financials for further discussion. At December 31, 2023, principal and interest in the amount of $431,666 and $88,909, respectively, were due on the Kishon Note. At December 31, 2024, principal and interest in the amount of $431,666 and $166,823, respectively, were due on the Kishon Note. This note was in default at December 31, 2024. *Finnegan Note 1* On May 23, 2022, the Company issued a 10% Promissory Note in the principal amount of $47,059 to Jessica Finnegan (the Finnegan Note 1). Finnegan Note 1 bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) November 20, 2022, as extended, or (ii) five (5) business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of Finnegan Note 1 was $40,000; the amount payable at maturity will be $47,059 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Finnegan Note 1, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. Finnegan Note 1 entered default status on November 21, 2022, and the interest rate increased to 18%. The Finnegan Note 1 contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which Ms. Finnegan reasonably believes contains a term that is more favorable than those in the Finnegan Note 1, the Company shall notify Ms. Finnegan of such term, and such term, at the option of Ms. Finnegan, shall become a part of the Finnegan Note 1. In addition, Ms. Finnegan received five-year warrants to purchase 386 shares of common stock at a price of $25.00 per share with a fair value of $2,000 at the date of issuance, and 1,930 shares of common stock with a value of $3,240; these amounts were recorded as discounts to Finnegan Note 1. Principal and accrued interest in the amount of $51,765 and $11,889, respectively, were due on this note at December 31, 2023. At December 31, 2024, principal and interest in the amount of $51,765 and $20,537, respectively, were due on the Finnegan Note. This note was in default at December 31, 2024. *Finnegan Note 2* On May 26, 2022, the Company issued a 10% Promissory Note in the principal amount of $29,412 to Jessica Finnegan (the Finnegan Note 2). Finnegan Note 2 bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) November 30, 2022, or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the Finnegan Note 2 was $25,000; the amount payable at maturity will be $29,412 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Finnegan Note 2, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. Finnegan Note 2 entered default status on December 1, 2022, and the interest rate increased to 18%. The Finnegan Note 2 contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which Ms. Finnegan reasonably believes contains a term that is more favorable than those in the Finnegan Note 2, the Company shall notify Ms. Finnegan of such term, and such term, at the option of Ms. Finnegan, shall become a part of the Finnegan Note 2. In addition, Ms. Finnegan received five-year warrants to purchase 242 shares of common stock at a price of $25.00 per share with a fair value of $1,250 at the date of issuance, and 242 shares of common stock with a value of $2,025; these amounts were recorded as discounts to the Finnegan Note 2. At December 31, 2023, principal and accrued interest in the amount of $32,353 and $7,341, respectively, were due on this note. At December 31, 2024, principal and interest in the amount of $32,353 and $12,705, respectively, were due on the Finnegan Note. This note was in default at December 31, 2024. *Schrier Note* On July 7, 2022, the Company issued a 10% Promissory Note in the principal amount of $23,259 to Charles Schrier (the Schrier Note). The Schrier Note bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) January 8, 2023, or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the Schrier Note was $20,000; the amount payable at maturity will be $23,529 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Schrier Note, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The Schrier Note contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which Mr. Schrier reasonably believes contains a term that is more favorable than those in the Schrier Note, the Company shall notify Mr. Schrier of such term, and such term, at the option of Mr. Schrier, shall become a part of the Schrier Note. In addition, Mr. Schrier received five-year warrants to purchase 193 shares of common stock at a price of $25.00 per share with a fair value of $820 at the date of issuance, and 193 shares of common stock with a value of $1,000; these amounts were recorded as discounts to the Schrier Note. 47 [Table of Contents](#TableOfContents) At December 31, 2023, principal and accrued interest in the amount of $25,882 and $5,383, respectively, were due on this note. During the year ended December 31, 2024, the Company entered into a settlement agreement with the lender to settle the note and all accrued interest in full in exchange for 8,614 shares of common stock at a price of $4 per share. The Company recorded the shares at the closing price on the date of issuance, which resulted in a gain on the transaction of $32,133. *Nommsen Note* On July 26, 2022, the Company issued a 10% Promissory Note in the principal amount of $58,823 to Eric S. Nommsen (the Nommsen Note). The Nommsen Note bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) November 30, 2022, as extended, or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the Nommsen Note was $50,000; the amount payable at maturity will be $58,823 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Nommsen Note, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The Nommsen Note entered default status on December 1, 2022, and the interest rate increased to 18%. The Nommsen Note contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which Mr. Nommsen reasonably believes contains a term that is more favorable than those in the Nommsen Note, the Company shall notify Mr. Nommsen of such term, and such term, at the option of Mr. Nommsen, shall become a part of the Nommsen Note. In addition, Mr. Nommsen received five-year warrants to purchase 483 shares of common stock at a price of $25.00 per share with a fair value of $1,850 at the date of issuance, and 483 shares of common stock with a value of $2,350; these amounts were recorded as discounts to the Nommsen Note. At December 31, 2023, principal and accrued interest in the amount of $64,705 and $13,685, respectively, were due on this note. During the year ended December 31, 2024, the Company entered into a settlement agreement with the lender to settle the note and all accrued interest in full in exchange for 22,565 shares of common stock at a price of $4. The Company recorded the shares at the closing price on the date of issuance, which resulted in a gain on the transaction of $80,282. *Caplan Note* On July 27, 2022, the Company issued a 10% Promissory Note in the principal amount of $58,823 to James H. Caplan (the Caplan Note). The Caplan Note bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) January 21, 2023, or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the Caplan Note was $50,000; the amount payable at maturity will be $58,823 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Caplan Note, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The Caplan Note contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which Mr. Caplan reasonably believes contains a term that is more favorable than those in the Caplan Note, the Company shall notify Mr. Caplan of such term, and such term, at the option of Mr. Caplan, shall become a part of the Caplan Note. In addition, Mr. Caplan received five-year warrants to purchase 483 shares of common stock at a price of $25.00 per share with a fair value of $1,850 at the date of issuance, and 483 shares of common stock with a value of $2,350; these amounts were recorded as discounts to the Caplan Note. At December 31, 2023, principal and accrued interest in the amount of $64,705 and $12,989, respectively, were due on this note. During the year ended December 31, 2024, the Company entered into a settlement agreement with the lender to settle the note and all accrued interest in full in exchange for 37,283 shares of common stock at a price of $4 per share. The Company recorded the shares at the closing price on the date of issuance, which resulted in a gain on the transaction of $75,613. *Finnegan Note 3* On August 4, 2022, the Company issued a 10% Promissory Note in the principal amount of $29,412 (the Finnegan Note 3) to Jessica, Kevin C., Brody, Isabella and Jack Finnegan (collectively, the Finnegans). Finnegan Note 3 bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) February 3, 2023, or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of Finnegan Note 3 was $25,000; the amount payable at maturity will be $29,412 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in Finnegan Note 3, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The Finnegan Note 3 contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which The Finnegans reasonably believes contains a term that is more favorable than those in the Finnegan Note 3, the Company shall notify The Finnegans of such term, and such term, at the option of The Finnegans, shall become a part of the Finnegan Note 3. In addition, The Finnegans received five-year warrants to purchase 242 shares of common stock at a price of $25.00 per share with a fair value of $850 at the date of issuance, and 242 shares of common stock with a value of $1,100; these amounts were recorded as discounts to the Finnegan Note 3. 48 [Table of Contents](#TableOfContents) At December 31, 2023, principal and accrued interest in the amount of $32,353 and $6,350, respectively, were due on this note. At December 31, 2024, principal and accrued interest in the amount of $32,353 and $11,714, respectively, were due on this note. This note was in default at December 31, 2024. *Lightmas Note* On September 2, 2022, the Company issued a 10% Promissory Note in the principal amount of $60,000 to Frank Lightmas (the Lightmas Note). The Lightmas Note bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) November 30, 2022, or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the Lightmas Note was $51,000; the amount payable at maturity will be $60,000 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Lightmas Note, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The Lightmas Note entered default status on December 1, 2022, and the interest rate increased to 18%. The Lightmas Note contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which Mr. Lightmas reasonably believes contains a term that is more favorable than those in the Lightmas Note, the Company shall notify Mr. Lightmas of such term, and such term, at the option of Mr. Lightmas, shall become a part of the Lightmas Note. In addition, Mr. Lightmas received 492 shares of common stock with a value of $2,640; this amount was recorded as a discount to the Lightmas Note. At December 31, 2023, principal and accrued interest in the amount of $66,000 and $13,325, respectively, were due on this note. During the year ended December 31, 2024, the Company entered into a settlement agreement with the lender to settle the note and all accrued interest in full in exchange for 22,850 shares of common stock at a price of $4 per share. The Company recorded the shares at the closing price on the date of issuance, which resulted in a gain on the transaction of $81,301. *Lewis Note* On September 2, 2022, the Company issued a 10% Promissory Note in the principal amount of $30,000 to Lisa Lewis (the Lewis Note). The Lewis Note bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) November 30, 2022, or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the Lewis Note was $25,500; the amount payable at maturity will be $30,000 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Lewis Note, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The Lewis Note entered default status on December 1, 2022, and the interest rate increased to 18%. The Lewis Note contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which Ms. Lewis reasonably believes contains a term that is more favorable than those in the Lewis Note, the Company shall notify Ms. Lewis of such term, and such term, at the option of Ms. Lewis, shall become a part of the Lewis Note. In addition, Ms. Lewis received 246 shares of common stock with a value of $1,320; this amount was recorded as a discount to the Lewis Note. At December 31, 2023, principal and accrued interest in the amount of $33,000 and $6,663, respectively, were due on this note. During the year ended December 31, 2024, the Company entered into a settlement agreement with the lender to settle the note and all accrued interest in full in exchange for 12,409 shares of common stock at a price of $4 per share. The Company recorded the shares at the closing price on the date of issuance, which resulted in a gain on the transaction of $40,385. *Goff Note* On September 2, 2022, the Company issued a 10% Promissory Note in the principal amount of $30,000 to Sharon Goff (the Goff Note). The Goff Note bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) November 30, 2022, or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the Goff Note was $25,500; the amount payable at maturity will be $30,000 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Goff Note, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The Goff Note entered default status on December 1, 2022, and the interest rate increased to 18%. The Goff Note contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which Ms. Goff reasonably believes contains a term that is more favorable than those in the Goff Note, the Company shall notify Ms. Goff of such term, and such term, at the option of Ms. Goff, shall become a part of the Goff Note. In addition, Ms. Goff received 246 shares of common stock with a value of $1,320; this amount was recorded as a discount to the Goff Note. 49 [Table of Contents](#TableOfContents) At December 31, 2023, principal and accrued interest in the amount of $33,000 and $6,663, respectively, were due on this note. During the year ended December 31, 2024, the Company entered into a settlement agreement with the lender to settle the note and all accrued interest in full in exchange for 12,409 shares of common stock at a price of $4 per share. The Company recorded the shares at the closing price on the date of issuance, which resulted in a gain on the transaction of $40,385. *Hagan Note* On September 2, 2022, the Company issued a 10% Promissory Note in the principal amount of $100,000 to Cliff Hagan (the Hagan Note). The Hagan Note bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) December 10, 2022, or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the Hagan Note was $85,000; the amount payable at maturity will be $100,000 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Hagan Note, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The Hagan Note entered default status on December 11, 2022, and the interest rate increased to 18%. The Hagan Note contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which Mr. Hagan reasonably believes contains a term that is more favorable than those in the Hagan Note, the Company shall notify Mr. Hagan of such term, and such term, at the option of Mr. Hagan, shall become a part of the Hagan Note. In addition, Mr. Hagan received 820 shares of common stock with a value of $4,715; this amount was recorded as a discount to the Hagan Note. At December 31, 2023, principal and accrued interest in the amount of $110,000 and $21,793, respectively, were due on this note. During the year ended December 31, 2024, the Company entered into a settlement agreement with the lender to settle the note and all accrued interest in full in exchange for 37,977 shares of common stock at a price of $4 per share. The Company recorded the shares at the closing price on the date of issuance, which resulted in a gain on the transaction of $135,114. *AJB Note* On March 18, 2022, the Company entered into a Securities Purchase Agreement (the AJB Agreement) with AJB Capital Investments, LLC (AJB) with respect to the sale and issuance to AJB of: (i) an initial commitment fee in the amount of $430,000 in the form of 34,400 shares (the AJB Commitment Fee Shares) of the Companys Common Stock, (ii) a promissory note in the aggregate principal amount of $750,000 (the AJB Note), and (iii) Common Stock Purchase Warrants to purchase 15,000 shares of the Companys Common Stock (the AJB Warrants). The AJB Note and AJB Warrants were issued on March 17, 2022 and were held in escrow pending effectiveness of the AJB Agreement. Should AJB receive net proceeds of less than $430,000 from the sale of the AJB Commitment Fee Shares, the Company will issue additional shares to AJB or pay the shortfall amount to AJB in cash (the AJB True-up Obligation. The terms of the AJB Agreement resulted in the Company recording a derivative liability in the initial amount of $106,608. On November 18, 2022, the Company issued 91,328 shares of common stock to AJB and recorded a loss in the amount of $9,007 in connection with the settlement of the AJB True-up Obligation. The AJB Note was issued in the principal amount of $750,000 for a purchase price of $675,000, resulting in an original issue discount of $75,000, and has a due date, as extended, of March 17, 2023. The AJB Note bears interest at the rate of 10% per year for the first six months and 12% thereafter. In the event of default as defined in the AJB Note this rate will increase to 18% and the AJB Note will become convertible at a price per share equal to the lowest trading price during the previous twenty trading days prior to the conversion date. The AJB Note entered default status on October 6, 2022. The AJB Commitment Fee Shares and AJB Warrants resulted in a discount to the AJB Note in the amount of $349,914. During the year ended December 31, 2023, a default penalty in the amount of $375,000 and an additional fee in the amount of $15,000 were added to the principal amount of the AJB note. During the year ended December 31, 2023, interest in the amount of $69,167 was accrued on the AJB Note. On April 11, 2023, an equity investment incentive in the amount of $800,800 representing 65% of the total amount due under the AJB Note, along with original principal of $750,000, the default penalty of $375,000, the fee of $15,000, and accrued interest of $92,000 (a total of $2,032,800) was converted to 2,033 shares of the Companys Series F Preferred Stock. Other than the equity investment incentive of $800,800, there was no additional gain or loss recognized on this transaction as the Series F Preferred Stock was issued at its face value of $1,000 per share. At December 31, 2023, there were no amounts due under the AJB Note. 50 [Table of Contents](#TableOfContents) *Anson Investments Note* On April 6, 2022, the Company entered into a Securities Purchase Agreement (the Anson Investments Agreement) with Anson Investments Master Fund LP (Anson Investments) with respect to the sale and issuance to Anson Investments of: (i) an initial commitment fee in the amount of $322,500 in the form of 25,800 shares (the Anson Investments Commitment Fee Shares) of the Companys Common Stock, (ii) a promissory note in the aggregate principal amount of $562,500 (the Anson Investments Note), and (iii) Common Stock Purchase Warrants to purchase 11,250 shares of the Common Stock (the Anson Investments Warrants). Should Anson Investments receive net proceeds of less than $322,500 from the sale of the Anson Investments Commitment Fee Shares, the Company will issue additional shares to Anson Investments or pay the shortfall amount to Anson Investments in cash. The terms of the Anson Investments Agreement resulted in the Company recording a derivative liability in the initial amount of $27,040. The Anson Investments Note was issued in the principal amount of $562,500 for a purchase price of $506,250 resulting in an original issue discount of $56,250. The Anson Investments Note has a due date of October 6, 2022, and bears interest at the rate of 10% per year for the first six months and 12% thereafter. In the event of default as defined in the Anson Investments Note this rate will increase to 18% and the Anson Investment Note will become convertible at a price per share equal to the lowest trading price during the previous twenty trading days prior to the conversion date. The Anson Investments Note entered default status on October 6, 2022. The Anson Investments Commitment Fee Shares and Anson Investments Warrants resulted in a discount to the Anson Investments Note in the amount of $416,375. During the year ended December 31, 2023, a default penalty in the amount of $281,250 and an additional fee in the amount of $15,000 were added to the principal amount of the Anson Investments Note. During the year ended December 31, 2023, interest in the amount of $ $27,157 was accrued on the Anson Investments Note. On April 11, 2023, an equity investment incentive in the amount of $602,815 representing 65% of the total amount due under the Anson Investments Note, along with original principal of $562,500, the default penalty of $281,250, the fee of $15,000, and accrued interest of $68,657 (a total of $1,530,222) was converted to 1,531 shares of the Companys Series F Preferred Stock. Other than the equity investment incentive of $602,815, there was no gain or loss recognized on this transaction as the Series F Preferred Stock was issued at its face value of $1,000 per share. At December 31, 2023, there were no amounts due under the Anson Investments Note. *Anson East Note* On April 6, 2022, the Company entered into a Securities Purchase Agreement (the Anson East Agreement) with Anson East Master Fund LP (Anson East) with respect to the sale and issuance to Anson East of: (i) an initial commitment fee in the amount of $107,500 in the form of 8,600 shares (the Anson East Commitment Fee Shares) of the Companys Common Stock, (ii) a promissory note in the aggregate principal amount of $187,500 (the Anson East Note), and (iii) Common Stock Purchase Warrants to purchase 3,750 shares of the Companys common stock (the Anson East Warrants). Should Anson East receive net proceeds of less than $107,500 from the sale of the Anson East Commitment Fee Shares, the Company will issue additional shares to Anson East or pay the shortfall amount to Anson East in cash. The terms of the Anson East Agreement resulted in the Company recording a derivative liability in the initial amount of $9,014. The Anson East Note was issued in the principal amount of $187,500 for a purchase price of $168,750 resulting in an original issue discount of $18,750. The Anson East Note has a due date of October 6, 2022, and bears interest at the rate of 10% per year for the first six months and 12% thereafter. In the event of default as defined in the Anson East Note this rate will increase to 18%, and the Anson East Note will become convertible at a price per share equal to the lowest trading price during the previous twenty trading days prior to the conversion date. The Anson East Note entered default status on October 6, 2022. The Anson East Commitment Fee Shares and Anson East Warrants resulted in a discount to the Anson East Note in the amount of $147,290. During the year ended December 31, 2023, a default penalty in the amount of $93,750 and an additional fee in the amount of $15,000 were added to the principal amount of the Anson East Note. During the year ended December 31, 2023, the amount of $9,552 was accrued on the Anson East Note. On April 11, 2023, an equity investment incentive in the amount of $207,763 representing 65% of the total amount due under the Anson East Note, along with original principal of $187,500, the default penalty of $93,750, the fee of $15,000, and accrued interest of $23,385 (a total of $527,398) was converted to 528 shares of the Companys Series F Preferred Stock. Other than the equity investment incentive of $207,763, there was no gain or loss recognized on this transaction as the Series F Preferred Stock was issued at its face value of $1,000 per share. At December 31, 2023, there were no amounts due under the Anson East Note. 51 [Table of Contents](#TableOfContents) *GS Capital Note* On April 18, 2022, the Company entered into a Securities Purchase Agreement (the GS Capital Agreement) with GS Capital Investments, LLC (GS Capital) with respect to the sale and issuance to GS Capital of: (i) an initial commitment fee in the amount of $159,259 in the form of 12,741 shares (the GS Capital Commitment Fee Shares) of the Companys Common Stock, (ii) a promissory note in the aggregate principal amount of $277,777 (the GS Capital Note), and (iii) Common Stock Purchase Warrants to purchase 5,556 shares of the Companys common stock (the GS Capital Warrants). Should GS Capital receive net proceeds of less than $159,259 from the sale of the GS Capital Commitment Fee Shares, the Company will issue additional shares to GS Capital or pay the shortfall amount to GS Capital in cash. The terms of the GS Capital Agreement resulted in the Company recording a derivative liability in the initial amount of $21,920. The GS Capital Note was issued in the principal amount of $277,777 for a purchase price of $250,000 resulting in an original issue discount of $27,777. The GS Capital Note has a due date of November 10, 2022, and bears interest at the rate of 10% per year for the first six months and 12% thereafter. In the event of default as defined in the GS Capital Note this rate will increase to 18%, and the GS Capital Note will become convertible at a price per share equal to the lowest trading price during the previous twenty trading days prior to the conversion date. The GS Capital Note entered default status on October 19, 2022. The GS Capital Commitment Fee Shares and GS Capital Warrants resulted in a discount to the GS Capital Note in the amount of $162,158. During the year ended December 31, 2023, GS Capital converted an aggregate amount of $72,777 of principal and $8,679 of accrued interest in the GS Capital Note into an aggregate of 57,140 shares of the Companys common stock at an average price of $1.46 per share. These conversions were made pursuant to the terms of the GS Capital Note, and no gain or loss was recorded on these transactions. During the year ended December 31, 2023, a default penalty in the amount of $138,889 and an additional fee in the amount of $15,000 were added to the principal amount of the GS Capital Note. During the year ended December 31, 2023, interest in the amount $13,965 was accrued on the GS Capital Note. On April 11, 2023, an equity investment incentive in the amount of $249,439 representing 65% of the total amount due under the GS Capital Note, along with the original principal of $205,000, the default penalty of $138,889, the fee of $15,000, and accrued interest of $24,864 (a total of $633,192) was converted to 634 shares of the Companys Series F Preferred Stock. Other than the equity investment incentive of $249,439, there was no gain or loss recognized on this transaction as the Series F Preferred Stock was issued at its face value of $1,000 per share. At December 31, 2023, there were no amounts due under the GS Capital Note. ** *Bridge Notes* ** During the year ended December 31, 2024, the Company issued various 10% Promissory Notes (the Bridge Notes) with three institutional investors for an aggregate principal amount of $548,000 each with maturity date 1 year from the date of issuance. The Bridge Notes bore interest at the rate of 10% per annum which will accrue monthly. During the year ended December 31, 2024, the Company recorded interest expense of 32,132 related to the Bridge Notes. On December 31, 2024, the Company and investors agreed to exchange the Bridge notes and accrued interest for its newly created Series A preferred stock. As a result of the exchange, the Company determined the Bridge Notes were extinguished and recorded a gain of $28,886. See Note 11 for details of the Series A preferred stock. Aggregate interest expense on the above notes payable was $195,838 and $1,615,591 for the years ended December 31, 2024, and 2023, respectively. Accrued interest on notes payable were $374,376 and $348,821 at December 31, 2024, and 2023, respectively. **Note 11: Notes Payable** **Related Parties** The following table summarizes the outstanding related party notes payable as of December 31, 2024, and 2023, respectively; | | | December31, 2024 | | | December31, 2023 | | | | M Diamond Note | | | - | | | | 64,706 | | | | Dobbertin Note | | | - | | | | 19,412 | | | | Lindstrom Note | | | 45,294 | | | | 45,294 | | | | Mitchell Note | | | - | | | | 78,100 | | | | Leath Note | | | - | | | | 55,000 | | | | November 29, 2022, Notes | | | 18,750 | | | | 37,500 | | | | Notes Payable | | | 64,044 | | | | 300,012 | | | | | | | | | | | | | | | Current Portion, net of discount | | $ | 64,044 | | | $ | 300,012 | | | | Long-term portion, net of discount | | | - | | | | - | | | 52 [Table of Contents](#TableOfContents) *Howe Note 1* On December 30, 2021, we issued a 10% Promissory Note in the principal amount of $1,000,000 in a related party transaction to the Michael C. Howe Living Trust (the Howe Note 1). Michael C. Howe was the Chief Executive Officer of The Good Clinic LLC, one of our subsidiaries. The Howe Note 1 bears interest at the rate of 10% interest rate per annum and has a maturity date that is the earlier of (i) November 30, 2022, as extended, or (ii) five (5) business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the Howe Note 1 was $850,000; the amount payable at maturity will be $1,000,000 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default, as defined in the Howe Note 1, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The Howe Note 1 entered delinquent status on December 1, 2022, and the interest rate increased to 18%. The Howe Note 1 contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security, which Mr. Howe reasonably believes contains a term that is more favorable than those in the Howe Note 1, we shall notify Mr. Howe of such term, and such term, at the option of Mr. Howe, shall become a part of the Howe Note 1. In addition, Mr. Howe five-year warrants to purchase 42,000 shares of common stock at a price of $25.00 per share, and five-year warrants to purchase 42,000 shares of common stock at $37.50 per share with an aggregate fair value of $261,568 at the date of issuance, which was recorded as a discount to this note. Interest in the amount of $106,795 was accrued on the Howe Note 1 during the year ended December 31, 2022. Discounts in the amount of $511,568 were amortized to interest expense during the year ended December 31, 2022, and total discounts in the amount of $0 remained outstanding at December 31, 2022. Principal and accrued interest in the amounts $1,100,000 and $106,795, respectively, were due on the Howe Note 1 at December 31, 2022. During the year ended December 31, 2023, interest in the amount of $168,761, respectively, was accrued on the Howe Note 1; principal and accrued interest in the amount of $0 were due on this note at December 31, 2023. *Howe Note 2* On June 9, 2022, the Company issued a 10% Promissory Note in the principal amount of $300,000 in a related party transaction to the Michael C. Howe Living Trust (the Howe Note 2). Michael C. Howe was the Chief Executive Officer of The Good Clinic LLC, one of our subsidiaries. The Howe Note 2 bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) November 30, 2022, or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the Howe Note 2 was $255,000; the amount payable at maturity will be $300,000 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Howe Note 2, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The Howe Note 2 entered default status on December 1, 2022, and the interest rate increased to 18%. The Howe Note 2 contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which Mr. Howe reasonably believes contains a term that is more favorable than those in the Howe Note 2, the Company shall notify Mr. Howe of such term, and such term, at the option of Mr. Howe, shall become a part of the Howe Note 2. In addition, Mr. Howe received five-year warrants to purchase 2,460 shares of common stock at a price of $25.00 per share with a fair value of $10,965 at the date of issuance, and 2,460 shares of common stock with a value of $22,440; these amounts were recorded as discounts to the Howe Note 2. Interest in the amount of $18,888 was accrued on the Howe Note 2 during the year ended December 31, 2022. Discounts in the amount of $108,405 were amortized to interest expense during the year ended December 31, 2022, and total discounts in the amount of $0 remained outstanding at December 31, 2022. Principal and accrued interest in the amounts $330,000 and $18,888, respectively, were due on the Howe Note 2 at December 31, 2022. During the year ended December 31, 2023, interest in the amount of $50,362 was accrued on the Howe Note 2; principal and accrued interest in the amount of $0 were due on this note at December 31, 2023. *Howe Note 3* On July 21, 2022, the Company issued a 10% Promissory Note in the principal amount of $300,000 in a related party transaction to the Michael C. Howe Living Trust (the Howe Note 3). Michael C. Howe was the Chief Executive Officer of The Good Clinic LLC, one of our subsidiaries. The Howe Note 3 bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) November 30, 2022, as extended, or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the Howe Note 3 was $255,000; the amount payable at maturity will be $300,000 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Howe Note 3, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The Howe Note 3 entered default status on December 1, 2022, and the interest rate increased to 18%. The Howe Note 3 contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which Mr. Howe reasonably believes contains a term that is more favorable than those in the Howe Note 3, the Company shall notify Mr. Howe of such term, and such term, at the option of Mr. Howe, shall become a part of the Howe Note 3. In addition, Mr. Howe received five-year warrants to purchase 2,460 shares of common stock at a price of $25.00 per share with a fair value of $9,945 at the date of issuance, and 2,460 shares of common stock with a value of $12,495; these amounts were recorded as discounts to the Howe Note 3. Interest in the amount of $15,436 was accrued on the Howe Note 3 during the year ended December 31, 2022. Discounts in the amount of $97,440 were amortized to interest expense during the year ended December 31, 2022, and total discounts in the amount of $0 remained outstanding at December 31, 2022. Principal and accrued interest in the amounts $330,000 and $15,436, respectively, were due on the Howe Note 3 at December 31, 2022. 53 [Table of Contents](#TableOfContents) During the year ended December 31, 2023, interest in the amount of $50,314, respectively, was accrued on the Howe Note 3; principal and accrued interest in the amount of $0 were due on this note at December 31, 2023. *Howe Note 4* On August 18, 2022, the Company issued a 10% Promissory Note in the principal amount of $200,000 in a related party transaction to the Michael C. Howe Living Trust (the Howe Note 4). Michael C. Howe was the Chief Executive Officer of the Good Clinic LLC, one of our subsidiaries. The Howe Note 4 bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) November 30, 2022, or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the Howe Note 4 was $170,000; the amount payable at maturity will be $200,000 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Howe Note 4, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The Howe Note 4 entered default status on December 1, 2022, and the interest rate increased to 18%. The Howe Note 4 contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which Mr. Howe reasonably believes contains a term that is more favorable than those in the Howe Note 4, the Company shall notify Mr. Howe of such term, and such term, at the option of Mr. Howe, shall become a part of the Howe Note 4. In addition, Mr. Howe received 1,640 shares of common stock with a value of $10,775; this amount was recorded as a discount to the Howe Note 4. Interest in the amount of $8,756 was accrued on the Howe Note 4 during the year ended December 31, 2022. Discounts in the amount of $60,775 were amortized to interest expense during the year ended December 31, 2022, and total discounts in the amount of $0 remained outstanding at December 31, 2022. Principal and accrued interest in the amounts $220,000 and $8,756, respectively, were due on the Howe Note 4 at December 31, 2022. During the year ended December 31, 2023, interest in the amount of 34,077 was accrued on the Howe Note 4; principal and accrued interest in the amount of $0, respectively, were due on this note at December 31, 2023. Howe Debt Exchange Agreement On December 8, 2023, the Company sold the remaining assets of The Good Clinic, LLC to Leading Primary Care LLC, a company organized by Michael C. Howe, the former CEO of The Good Clinic, LLC. As consideration for the transaction, Mr. Howe cancelled the existing notes payable and accrued interest owed to Mr. Howe in the amount of $2,454,821. *M Diamond Note* On May 26, 2022, the Company issued a 10% Promissory Note in the principal amount of $58,823 to Melissa Diamond (the M Diamond Note). Ms. Diamond is the daughter of Larry Diamond, former CEO. The M Diamond Note bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) November 30, 2022, or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the M Diamond Note was $50,000; the amount payable at maturity will be $58,823 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the M Diamond Note, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The M Diamond Note entered default status on December 1, 2022, and the interest rate increased to 18%. The M Diamond Note contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which Ms. Diamond reasonably believes contains a term that is more favorable than those in the M Diamond Note, the Company shall notify Ms. Diamond of such term, and such term, at the option of Ms. Diamond, shall become a part of the M Diamond Note. In addition, Ms. Diamond received five-year warrants to purchase 483 shares of common stock at a price of $25.00 per share with a fair value of $2,500 at the date of issuance, and 483 shares of common stock with a value of $4,050; these amounts were recorded as discounts to the M Diamond Note. At December 31, 2023, principal and accrued interest in the amount of $64,706 and $14,682, respectively, were due on this note. During the year ended December 31, 2024, the Company entered into a settlement agreement with the lender to settle the note and all accrued interest in full in exchange for 20,966 shares of common stock. The amount was recorded as a contribution to capital as this is a related party note. 54 [Table of Contents](#TableOfContents) *Dobbertin Note* On May 26, 2022, the Company issued a 10% Promissory Note in the principal amount of $17,647 in a related party transaction to Alexander Dobbertin (the Dobbertin Note). Mr. Dobbertin is the spouse of Jenny Lindstrom, who was the Companys Chief Legal Officer. The Dobbertin Note bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) November 30, 2022, or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the Dobbertin Note was $15,000; the amount payable at maturity will be $17,647 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Dobbertin Note, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The Dobbertin Note entered default status on December 1, 2022, and the interest rate increased to 18%. The Dobbertin Note contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which Mr. Dobbertin reasonably believes contains a term that is more favorable than those in the Dobbertin Note, the Company shall notify Mr. Dobbertin of such term, and such term, at the option of Mr. Dobbertin, shall become a part of the Dobbertin Note. In addition, Mr. Dobbertin received five-year warrants to purchase 145 shares of common stock at a price of $25.00 per share with a fair value of $750 at the date of issuance, and 145 shares of common stock with a value of $1,215; these amounts were recorded as discounts to the Dobbertin Note. At December 31, 2023, principal and accrued interest in the amount of $19,412 and $4,405, respectively, were due on this note. During the year ended December 31, 2024, the Company entered into a settlement agreement with the lender to settle the note and all accrued interest in full in exchange for 6,558 shares of common stock. The amount was recorded as a contribution to capital as this is a related party note. *Lindstrom Note* On May 26, 2022, the Company issued a 10% Promissory Note in the principal amount of $41,176 in a related party transaction to Jenny Lindstrom, who was the Companys Chief Legal Officer (the Lindstrom Note 1). The Lindstrom Note 1 bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) November 30, 2022, or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the Lindstrom Note 1 was $35,000; the amount payable at maturity will be $41,176 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Lindstrom Note 1, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The Lindstrom Note 1 entered default status on December 1, 2022, and the interest rate increased to 18%. The Lindstrom Note 1 contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which Ms. Lindstrom reasonably believes contains a term that is more favorable than those in the Lindstrom Note 1, the Company shall notify Ms. Lindstrom of such term, and such term, at the option of Ms. Lindstrom, shall become a part of the Lindstrom Note 1. In addition, Ms. Lindstrom received five-year warrants to purchase 338 shares of common stock at a price of $25.00 per share with a fair value of $1,750 at the date of issuance, and 338 shares of common stock with a value of $2,835; these amounts were recorded as discounts to the Lindstrom Note 1. At December 31, 2023, principal and accrued interest in the amount of $45,294 and $10,277, respectively, were due on this note. At December 31, 2024, principal and accrued interest in the amount of $45,294 and $17,709, respectively, were due on this note. This note was in default at December 31, 2024. *Mitchell Note* On September 2, 2022, the Company issued a 10% Promissory Note in the principal amount of $71,000 to John Mitchell (the Mitchell Note). The Mitchell Note bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) November 30, 2022, or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the Mitchell Note was $60,350; the amount payable at maturity will be $71,000 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Mitchell Note, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The Mitchell Note entered default status on December 1, 2022, and the interest rate increased to 18%. The Mitchell Note contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which Mr. Mitchell reasonably believes contains a term that is more favorable than those in the Mitchell Note, the Company shall notify Mr. Mitchell of such term, and such term, at the option of Mr. Mitchell, shall become a part of the Mitchell Note. In addition, Mr. Mitchell received 582 shares of common stock with a value of $3,124; this amount was recorded as a discount to the Mitchell Note. At December 31, 2023, principal and accrued interest in the amount of $78,100 and $15,768, respectively, were due on this note. During the year ended December 31, 2024, the Company entered into a settlement agreement with the lender to settle the note and all accrued interest in full in exchange for 27,040 shares of common stock. The amount was recorded as a contribution to capital as this is a related party note. *Leath Note* On September 15, 2022, the Company issued a 10% Promissory Note in the principal amount of $50,000 to Mack Leath (the Leath Note). The Leath Note bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) December 15, 2022, or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the Leath Note was $42,500; the amount payable at maturity will be $50,000 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Leath Note, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The Leath Note entered default status on December 16, 2022, and the interest rate increased to 18%. The Leath Note contains a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which Mr. Leath reasonably believes contains a term that is more favorable than those in the Leath Note, the Company shall notify Mr. Leath of such term, and such term, at the option of Mr. Leath, shall become a part of the Leath Note. In addition, Mr. Leath received 410 shares of common stock with a value of $2,868; this amount was recorded as a discount to the Leath Note. 55 [Table of Contents](#TableOfContents) At December 31, 2023, principal and accrued interest in the amount of $55,000 and $10,757, respectively, were due on this note. During the year ended December 31, 2024, the Company entered into a settlement agreement with the lender to settle the note and all accrued interest in full in exchange for 18,052 shares of common stock. The amount was recorded as a contribution to capital as this is a related party note. *November 29, 2022, Notes* On November 29, 2022, the Company issued seven identical promissory notes (the November 29 Notes) in related party transactions to the following individuals: (1) Thomas Brodmerkel, who was the Companys CFO and Board Member; (2) Lawrence Diamond, who was the Companys Chief Executive Officer and Board Member; (3) Sheila Schweitzer, who was a Board Member; (4) Faraz Naqvi, a former Board Member; (5) Juan Carlos Iturregui, who was a Board Member; (6) Jenny Lindstrom, who was the Companys former Vice President and Chief Legal Officer; and (7) Michael C. Howe, who was the Chief Executive Officer of The Good Clinic, one of our subsidiaries (collectively, the November 29 Lenders). The November 29 notes have due dates of May 28, 2023. The November 29 Notes are subject to the Series E Exchange Agreement whereby each of the November 29 Lenders will exchange (a) amounts due under the November 29 Notes for a number of shares of the Companys Series E Convertible Preferred Stock equal to 150% of the principal amount of each November 29 Note. See note 13. The November 29 Notes bear interest at the rate of 10% per annum which will accrue from the date of the note only if the November 29 Notes are not converted pursuant to the Series E Exchange Agreement by May 10, 2023. Following an event of default as defined in the November 29 Notes, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The November 29 Notes contain a most favored nations clause that provides that, so long as the note is outstanding, if the Company issues any new security which November 29 Lender reasonably believes contains a term that is more favorable than those in the November 29 Note, the Company shall notify the November 29 Lenders of such term, and such term, at the option of the November 29 Lenders, shall become a part of the November 29 Note. In addition, each of the November 29 Lenders will receive five-year warrants to purchase 750 shares of the Companys common stock at a price equal to the price of any warrant included in an offering in connection with listing at the Nasdaq Global Market. These warrants are not deemed issued at December 31, 2022, because the exercise price was not yet determined. Discounts in the amount of $667 were amortized to interest expense for each of the November 29 Notes during the year ended December 31, 2022, and discounts in the amount of $3,083 remained outstanding for each of the November 29 Notes at December 31, 2022. Principal and accrued interest in the amounts $18,750 and $164, respectively, were due on each of the seven November 29 Note at December 31, 2022. Concurrent with the November 29 Notes, the Company entered into separate exchange agreements (the November 29 Notes Exchange Agreements). Pursuant to the November 29 Notes Exchange Agreements, amounts due under the November 29 Notes will be exchanged for a number Series E Convertible Preferred Stock equal to 150% of the principal amount of the Notes. No transactions occurred pursuant to the November 29 Notes Exchange Agreements during the year ended December 31, 2022. During the year ended December 31, 2023, interest in the amount of $11,967 was accrued on the November 29 Notes. On September 29, 2023, three of the November 29 Lenders (1) Thomas Brodmerkel, (2) Lawrence Diamond, and (3) Juan Carlos Iturregui converted their November 29 Notes into shares of the Companys Series F Preferred Stock as follows: Each of the noteholders converted an equity investment incentive in the amount of $13,553 representing 65% of the total amount due under the November 29 Note , along with original principal of $18,750 and accrued interest of $2,101 (a total of $34,404) into 34 shares of the Companys Series F Preferred Stock. Other than the equity investment incentives, there was no gain or loss recognized on this transaction as the Series F Preferred Stock was issued at its face value of $1,000 per share. In each case at the time of the issuance of the Series F Preferred shares there were also certain notes, accrued fees, accrued salaries or other amounts included in the total renumeration before the conversion into the Series F Preferred shares. On September 29, 2023, one of the November 29 Lenders, Sheila Schweitzer, converted her November 29 Note into shares of the Companys restricted common stock as follows: principal of $18,750 and accrued interest of $2,101 were converted at a price of $0.80 per share into 26,064 shares of the Companys common stock. On December 8, 2023, pursuant to the Howe debt exchange agreement, Mr. Howe exchanged his note in the principal amount of $18,750 and accrued interest of $2,682 for certain assets of the company. No amounts were due under the Howe note as of December 31, 2023. During the year ended December 31, 2024, the Company entered into a settlement agreement with Faraz Naqvi to settle the note and all accrued interest in full in exchange for 5,782 shares of common stock. The amount was recorded as a contribution to capital as this is a related party note. At December 31, 2023, there was principal and interest in the aggregate amount of $37,500 and $5,903, respectively, due on the two November 29 Notes that are still outstanding. At December 31, 2024, there was principal and interest in the aggregate amount of $18,750 and $4,839, respectively, due on the one remaining November 29 Notes still outstanding. Aggregate interest expense as described on the above notes payable related parties was $33,980 for the year ended December 31, 2024. Accrued interest on notes payable related parties were $22,547 and $61,792 at December 31, 2024, and 2023, respectively. 56 [Table of Contents](#TableOfContents) **Note 12: Derivative Liabilities** Certain of the Companys convertible notes and warrants contain features that create derivative liabilities. The pricing model the Company uses for determining fair value of its derivatives is the Monte Carlo Model. Valuations derived from this model are subject to ongoing internal and external verification and review. The model uses market-sourced inputs such as interest rates and stock price volatilities. Selection of these inputs involves managements judgment and may impact net income. The derivative components of these notes are valued at issuance, at conversion, at restructuring, and at each period end. Derivative liability activity for the years ended December 31, 2024, and 2023, is summarized in the table below: | December 31, 2022 | | $ | 568,912 | | | | True-up features issued | | | - | | | | Settled upon conversion or exercise | | | (501,740 | ) | | | Loss on revaluation | | | 85,773 | | | | December 31, 2023 | | $ | 152,945 | | | | True-up features settled | | | (152,945 | ) | | | Establishment upon default provisions | | | 100,551 | | | | Loss on revaluation | | | 4,585,124 | | | | December 31, 2024 | | $ | 4,685,675 | | | The Company uses a Monte Carlo model to value the true-up obligation features of its notes payable that create derivative liabilities. The following tables summarize the assumptions for the valuations: | | | December 31, | | | December 31, | | | | | | 2024 | | | 2023 | | | | Volatility | | | - | | | | 475.7 | % | | | Stock Price | | $ | - | | | $ | 0.0250 | | | | Risk-free interest rates | | | - | % | | | 5.21 | % | | | Term (years) | | | - | | | | 0.39 | | | During the year ended December 31, 2023, certain of our notes payable contain a commitment fee obligation with a true-up feature. During the year ended December 31, 2024, the true-up period expired and all remaining amounts were reclassified to equity. The following assumptions were used for the valuation of the derivative liability associated with this obligation using a valuation based on the intrinsic conversion value: | | | The stock price would fluctuate with the Company projected volatility. | | | | | | | | | | The projected volatility curve from an annualized analysis for each valuation date was based on the historical volatility of the Company and the term remaining for the True-Up obligation. | | | | | | | | | | The Company expected the note would be repaid 90% of the time by the maturity date, at which point the Company would redeem the 1,000,000 redeemable commitment fee shares for $1. | | | | | | | | | | In the event the Company did not repay the note in time, the shareholders would sell their shares subject to volume restrictions. | | | | | | | | | | Discount rates were based on risk-free rates in effect based on the remaining term. 50,000 simulations were run for each Monte Carlo simulation. | | Certain of our notes payable contain a provisions that in the event of default the note will become convertible at a price per share equal to the lowest trading price during the previous twenty trading days prior to the conversion date. The following assumptions were used for the valuation of the derivative liability associated with this obligation: | | | The stock price on the date of valuation represents the fair market value of the stock | | | | | | | | | | The notes convert with variable conversion prices based on the percentages of the lowest trades over the prior 20 trading days | | | | | | | | | | The holder would automatically convert the note immediately (based on ownership or trading volume limitations) if the registration were effective and the Company was not in default | | **Note 13: Series A preferred stock** **** On October 28, 2024, the Company filed a Certificate of Designation, Preferences and Rights of the Series A Preferred Stock with the Nevada Secretary of State (the Certificate of Designation). The Company authorized 3,000,000 shares of Series A Preferred Stock, par value $0.01 per share. Each share of Series A Preferred Stock has a stated value equal to $25. The Series A Shares may be converted into shares of common stock by dividing the stated value by $4.00 (the Conversion Price). The Series A Shares may be converted at the option of the holder at any time, or mandatorily by the Company if certain conditions set forth in the Certificate of Designation are met. Unless prior conversion has occurred, shares of Series A Preferred Stock will be redeemed by the Company, using Common Stock, or cash, 1/36th of the remaining amounts monthly beginning in January 2025. The cash redemption shall be at 105% of the original price of Series A Preferred Stock (as adjusted) whereas Common Stock redemption shall be at a 10% discount to the average of the five lowest closing prices over a 30-trading day period. The Company intends to accrue the redemption shares monthly and issue any shares to be used thereunder quarterly to reduce its expense. 57 [Table of Contents](#TableOfContents) Holders of shares of the Series A Preferred Stock are not entitled to receive any dividends, and the security bears no interest. The Series A Preferred Stock will rank, with respect to rights to the payment of dividends and the distribution of assets in the event of any liquidation, dissolution or winding up of the Company, (i) senior to all classes or series of the Companys Common Stock, and to all other equity securities issued by the Company; and (ii) effectively junior to all existing and future indebtedness (including indebtedness convertible into our Common Stock or preferred stock) of the Company and to any indebtedness and other liabilities of (as well as any preferred equity interest held by others in) existing subsidiaries of the Company. In addition to any other rights provided by law, except where the vote or written consent of the holders of a greater number of shares is required by law or by another provision of the Articles of Incorporation, without first obtaining the affirmative vote at a meeting duly called for such purpose or the written consent without a meeting of the majority of the outstanding Series A Preferred Stock, voting together as a single class, the Company shall not: (a) amend or repeal any provision of, or add any provision to, its Articles of Incorporation or bylaws, or file any certificate of designations or certificate of amendment, if such action would adversely alter or change in any respect the preferences, rights, privileges or powers, or restrictions provided for the benefit, of the Series A Preferred Stock, regardless of whether any such action shall be by means of amendment to the Articles of Incorporation or by merger, consolidation or otherwise; or (b) without limiting the provisions of the Certificate of Designation, circumvent a right of the Series A Preferred Stock. **** As a result of the mandatory redemption features requiring the Company to repay the Series A in either cash of shares of Common Stock of the Company, under ASC 480, the Company is required to record the full redemption value of the Series A preferred shares as a liability on the accompanying balance sheet. The Company has recorded the redemption value based on the 10% premium required if the Company were to repay in shares of Common Stock due to the current expected cash flows of the Company. During the year ended December 31, 2024, the Company issued 23,206 shares of Series A preferred stock in exchange for the Bridge Notes as described in Note 8 above. Upon issuance, the Company recorded the Series A preferred stock based on the present value of the future expected cash flows using a discount rate of 10%, which resulted in an initial liability of $551,246. During the year ended December 31, 2024, the Company issued 539,792 shares of Series A preferred stock in exchange for the settlement of 125,000 shares of Series D preferred stock and 11,724 shares of Series F preferred stock as described in Note 12 below. Upon issuance, the Company recorded the Series A preferred stock based on the present value of the future expected cash flows using a discount rate of 10%, which resulted in an initial liability of $12,778,960. The following table provides the maturities of Series A preferred stock redemptions at December 31, 2024: | | | Series A | | | | | | Preferred Stock | | | | 2025 | | $ | 5,160,815 | | | | 2026 | | | 5,160,815 | | | | 2027 | | | 5,160,815 | | | | 2028 | | | - | | | | 2029 and thereafter | | | - | | | | Total future undiscounted redemption payments | | | 15,482,445 | | | | Less: Interest | | | (2,158,986 | ) | | | Present value of redemption payments | | | 13,323,459 | | | | Current portion | | | (5,160,815 | ) | | | Long term portion | | $ | 8,162,644 | | | **** **Note 14: Stockholders** **Equity (Deficit)** **Common Stock** The Company has authorized 500,000,000 shares of common stock, par value $0.01; 9,762,258 were issued and outstanding at December 31, 2024. Common Stock Transactions During the Year Ended December 31, 2024 During the year ended December 31, 2024, the Company issued 141,122 shares of common stock for dividends payable on its Series X Preferred Stock as discussed in further detail below. The price per share used in determining the number of shares issued was $.80 through September 30, 2024, and not the lower price that is called for in the certificate of designation, and then the Company used the stock price on the 15th day of each month to determine the number of shares issuable for the final three months of 2024. 58 [Table of Contents](#TableOfContents) During the year ended December 31, 2024, the Company issued 525,000 shares of common stock in aggregate to its advisory board consisting of seven (7) individuals, with 75,000 shares issued to each. The Company recorded a compensation expense of $212,513 based on the closing stock price on the date of issuance. During the year ended December 31, 2024, the Company issued 750,000 shares of common stock in aggregate to its board of directors consisting of three (3) individuals, with 250,000 shares issued to each. The Company recorded a compensation expense of $228,000 based on the closing stock price on the date of issuance. During the year ended December 31, 2024, the Company issued 300,000 shares of common stock to outside consultants for services performed. The Company recorded a compensation expense of $94,000 based on the closing stock price on the date of issuance. During the year ended December 31, 2024, the Company issued 237,349 shares of common stock for the settlement of outstanding payables with unrelated third parties. The Company valued the shares based on the closing stock price on the date of issuance and recorded a gain on settlement of $1,040,863. During the year ended December 31, 2024, the Company issued 154,107 shares of common stock for the settlement of outstanding notes payables and accrued interest with unrelated third parties. The Company valued the shares based on the closing stock price on the date of issuance and recorded a gain on settlement of $485,212. During the year ended December 31, 2024, the Company issued 79,298 shares of common stock for the settlement of outstanding notes payables and accrued interest with related parties. The Company recorded the settlement as contributions of capital and no gain or loss was recorded. During the year ended December 31, 2024, the Company issued 2,007,425 shares of common stock for the conversion of Series D, Series F, and Series X preferred shares along with associated accrued dividends. The Company recorded the settlement as contributions of capital and no gain or loss was recorded. Common Stock Transactions During the Year Ended December 31, 2023 During the year ended December 31, 2023, the Company issued 28,275 shares of common stock for dividends payable on its Series X Preferred Stock as discussed in further detail below. The price per share used in determining the number of shares issued was $.80, and not the lower price that is called for in the certificate of designation. During the year ended December 31, 2023, the Company issued 300,000 shares of common stock to an outside consultant for services performed. The Company recorded a compensation expense of $897,000 based on the closing stock price on the date of issuance. During the year ended December 31, 2023, the Company issued 57,138 shares of common stock for the conversion of principal and accrued interest on a convertible note payable. These conversions were made pursuant to the terms of the convertible note agreement and no gain or loss was recognized on these transactions. During the year ended December 31, 2023, the Company issued 247,776 shares of common stock at a price of $0.80 per share for accounts payable in the amount of $105,089. The Company valued the shares based on the closing stock price on the date of issuance and recorded a gain on settlement of 185,487. Effective June 30, 2023, the Company issued 2,926 shares of common stock at a price of $12.50 to a previous board member for the conversion of accounts payable in the amount of $36,575. These shares had been carried on the Company balance sheet as Common Stock Subscribed. On May 5, 2023, the Company issued 2,552 shares of common stock to a vendor at a price of $0.85 per share, and on May 9, 2023, the Company issued 19,622 shares of common stock at a price of $0.85 per share to the Michael C. Howe Living Trust (the Howe Trust), an entity controlled by a related party. These shares were issued in satisfaction of a vendor dispute. The shares issued to the Howe Trust were reimbursement for shares previously issued to the vendor by the Howe Trust with regard to this dispute. There was no gain or loss recorded on these transactions. Effective September 29, 2023, the Companys now former Chief Operating Officer and now former board member converted a note in the amount of $18,750, accrued interest of $2,101, accrued salary of $64,434, and board of director fees of $60,000 (a total of $145,285) at a price of $0.80 per share into 181,606 shares of the Companys common stock. A gain in the amount of $138,531 was recorded on this transaction. 59 [Table of Contents](#TableOfContents) **Preferred Stock** We have authorized to issue 100,000,000 shares of Preferred Stock with such rights designations and preferences as determined by our Board of Directors. We have designated 3,000,000 shares of series A stock, 3,000,000 shares of Series C Preferred, 10,000,000 shares of Series D Preferred, 10,000 shares of Series E Preferred, 140,000 shares of Series F Preferred, and 31,427 shares as Series X Preferred Stock. Series C Preferred Stock The Series C Preferred Stock has a par value of $0.01 per share, no stated maturity, a liquidation preference of 100% of the stated value plus accrued but unpaid dividends, accrued dividends at the rate of 6% on $1.05 per share, and converts into common shares at a rate of $0.25 per share. The Series C ranks senior to all other preferred stock of the Company except in relation to the Series X Cumulative Redeemable Perpetual Preferred Stock, which ranks *Pari passu* to the Series C Preferred Stock. Each holder of our Series C Preferred Stock shall be entitled to cast the number of votes equal to the number of whole shares of Common Stock into which the shares of Series C preferred Stock held by such a holder. The Company had no shares of Series C Preferred Stock outstanding at December 31, 2024, and the Series C were extinguished. The Company accrued dividends in the amount of $17,603 on the Series C Preferred Stock during the year ended December 31, 2023. On April 11, 2023, a total of 1,047,619 shares of Series C Preferred Stock with a stated value of $1,100,000, accrued dividends in the amount $171,109, and equity investment incentives in the amount of $1,016,888 were exchanged for 2,289 shares of Series F Preferred Stock. Series D Preferred Stock The Series D Preferred Stock has a par value of $0.01 per share, no stated maturity, a liquidation preference of 100% of the stated value plus accrued but unpaid dividends, accrued dividends at the rate of 6% on $1.05 per share, and converts into common shares at a rate of $0.25 per share. The Series D ranks senior to all other preferred stock of the Company except in relation to the Series X Cumulative Redeemable Perpetual Preferred Stock, which ranks *Pari passu* to the Series C Preferred Stock. Each holder of our Series D Preferred Stock shall be entitled to cast the number of votes equal to the number of whole shares of Common Stock into which the shares of Series D preferred Stock held by such holder. The Company had 25,000 shares of Series D Preferred Stock outstanding at December 31, 2024. *Series D Preferred Stock Transactions During the Year Ended December 31, 2024* During the year ended December 31, 2024, a holder of 100,000 shares of Series D preferred shares along with $18,175 of accrued dividends agreed to convert the shares into 30,802 common shares at a conversion rate of $4 per common share. The Company recorded the settlement as contributions of capital and no gain or loss was recorded. The Company accrued dividends in the amount of $14,172 on the Series D Preferred Stock for the year ended December 31, 2024. As of December 31, 2024, the Company had $5,049 in accrued dividends on the Series D Preferred Stock. *Series D Preferred Stock Transactions During the Year Ended December 31, 2023* The Company accrued dividends in the amount of $85,541 on the Series D Preferred Stock. On April 11, 2023, a total of 2,350,000 shares of Series D Preferred Stock with a stated value of $2,467,500, accrued dividends in the amount $215,659, and equity investment incentives in the amount of $1,371,846 were exchanged for 4,055 shares of Series F Preferred Stock. There was no gain or loss recorded in connection with these transactions. On December 8, 2023, Mr. Howe exchanged (i) 500,000 shares of Series D Preferred Stock with a stated value of approximately $0.5 million and accrued dividends of approximately $67,000, and (ii) accrued salary owed to Mr. Howe in the amount of approximately $38,000 plus a conversion incentive of 65% or approximately $25,000 for 655 shares of the Companys Series F Preferred Stock with a liquidation value of approximately $0.6 million. Other than the conversion of incentive of $25,000, there was no gain or loss recorded on this transaction. Series F Preferred Stock On March 23, 2023, the Company filed a Certificate of Designations, Preferences and Rights of Series F 12% PIK $0.01 par value Convertible Perpetual Preferred Stock with the Delaware Secretary of State. The number of shares of Series F Preferred Stock designated is 140,000 and each share of Series F Preferred Stock has a liquidation preference of $1,000. The Series F Preferred Stock will rank senior to the Corporations Common Stock and on parity with all Preferred Stock of the Corporation with terms specifically providing that such Preferred Stock rank on parity with the Series F Preferred Stock with respect to rights to the distribution of assets upon any liquidation, dissolution or winding up of the Corporation; and (iii) junior to all Preferred Stock of the Corporation with terms specifically providing that such Preferred Stock rank senior to the Series F Preferred Stock with respect to rights to the distribution of assets upon any liquidation, dissolution or winding up of the Company. Holders of shares of the Series F Preferred Stock are entitled to receive payment-in-kind dividends payable only in additional shares of Series F Preferred Stock (PIK Dividends) at rate of 12% per annum. 60 [Table of Contents](#TableOfContents) The Series F Preferred Stock will be convertible into common stock of the Company upon the listing of the Companys stock on any of the following trading markets: the NYSE, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, or the Nasdaq Global Select Market. The conversion price will be calculated as 65% of the volume-weighted average price of the Companys common stock on the conversion date. The number of shares issuable upon conversion will be calculated as the liquidation preference of the Series F Preferred stock plus any accrued but unpaid dividends divided by the conversion price. There are no shares of Series F Preferred Stock outstanding at December 31, 2024. *Series F Preferred Stock Transactions During the Year Ended December 31, 2024* On May 17, 2024, the holders of approximately 54.90% of the Series F Preferred shares, having met in person on May 8, 2024, have granted consent to the following modification to the terms of the Series F Preferred, effective May 15, 2024 all dividends, and any obligation to pay dividends shall cease. Any dividends accrued until May 15, 2024, shall be issued as noted in the original certificate of designation. During the year ended December 31, 2024, holders of 8,333 shares of Series F preferred shares along with $899,607 of accrued dividends and 87,884 of accrued compensation, agreed to convert the shares into 1,889,835 common shares at a conversion rate of $4 per common share. The Company recorded the settlement as contributions of capital and no gain or loss was recorded. The Company accrued dividends in the amount of $941,713 on the Series F Preferred Stock for the year ended December 31, 2024. As of December 31, 2024, the Company had $0 in accrued dividends on the Series F Preferred Stock. *Series F Preferred Stock Transactions During the Year Ended December 31, 2023* On April 11, 2023, the Company issued a total of 8,116 shares of Series F Preferred Stock at its liquidation value of $1,000 per share to nine investors upon the conversion of notes payable. The total amount converted was $8,111,334, consisting of principal $3,602,059, default penalties of $888,889, fees of $60,000, accrued interest of $365,012, and equity investment incentives of $3,195,374. Other than the equity investment incentive, there were no gains or losses recorded in connection with these transactions. See note 10. On April 11, 2023, the Company issued a total of 2,289 shares of Series F Preferred Stock at its liquidation value of $1,000 per share to two investors upon the conversion of Series C Preferred Stock. The total amount converted was $2,287,997, consisting of the Series C Preferred Stock stated value of $1,100,000, accrued dividends of $171,109, and equity investment incentives of $1,016,888. Other than the equity investment incentive, there were no gains or losses recorded in connection with these transactions. On April 11, 2023, the Company issued a total of 4,055 shares of Series F Preferred Stock to two investors at its liquidation value of $1,000 per share upon the conversion of Series D Preferred Stock. The total amount converted was $4,055,005 consisting of the Series D Preferred Stock stated value of $2,467,500, accrued dividends of $215,659, and equity investment incentives of $1,371,846. Other than the equity investment incentive, there were no gains or losses recorded in connection with these transactions. On April 11, 2023, the Company sold a total of 1,746 shares of Series F Preferred Stock to three investors at its liquidation value of $1,000 per share for cash. The total value of Series F Preferred Stock of issued was $1,745,000 consisting of cash proceeds of $900,000 and an equity investment incentive of $845,000, less costs of $161,500. Other than the equity investment incentive, there were no gains or losses recorded in connection with these transactions. On June 29, 2023, the Company issued a total of 147 shares of Series F Preferred Stock at its liquidation value of $1,000 per share to two service providers for accounts payable in the amount of $146,214. There was no gain or loss recorded on these transactions. On September 29, 2023, the Company issued a total of 2,138 shares of Series F Preferred Stock to three related parties at its liquidation value of $1,000 per share upon the conversion of notes payable in the amount of $601,839, premium on notes payable of $78,087, accrued interest of $124,777, accrued salary of $376,625, accrued board fees of $112,500, and equity investment incentives of $843,228. Other than the equity investment incentives, there were no gains or losses recorded in connection with these transactions. On September 29, 2023, the Company issued a total of 911 shares of Series F Preferred Stock to two investors at its liquidation value of $1,000 per share upon the conversion of notes payable in the aggregate amount of $414,118, premium on notes payable in the aggregate amount of $41,412, accrued interest in the aggregate amount of $84,187, and fees of $10,000, and equity investment incentive of $360,385. Other than the equity investment incentive, there were no gains or losses recorded in connection with these transactions. 61 [Table of Contents](#TableOfContents) Series X Preferred Stock The Company has 19,703 and 24,227 shares of its 10% Series X Cumulative Redeemable Perpetual Preferred Stock (the Series X Preferred Stock) outstanding as of December 31, 2024, and December 31, 2023. The Series X Preferred Stock has a par value of $0.01 per share, no stated maturity, a liquidation preference of $25.00 per share, and will not be subject to any sinking fund or mandatory redemption and will remain outstanding indefinitely unless the Company decides to redeem or otherwise repurchase the Series X Preferred Stock; the Series X Preferred Stock is not redeemable prior to November 4, 2020. The Series X Preferred Stock will rank senior to all classes of the Companys common and preferred stock and accrues dividends at the rate of 10% on $25.00 per share. The Company reserves the right to pay the dividends in shares of the Companys common stock at a price equal to the average closing price over the five days prior to the date of the dividend declaration. Beginning in July 2023, the Company elected to use a price per share of $.80, a 20% discount to the average price of its common stock of $1.00, before the trading of its common stock was moved to the OTC Expert Market system. This policy continued through September 30, 2024. During the last quarter of 2024, the Company returned to using the closing stock price on the 15th of each month. Each one share of the Series X Preferred Stock is entitled to 400 votes on all matters submitted to a vote of our shareholders. During the year ended December 31, 2024, the Company issued 7,200 shares of Series X Preferred Stock to the officers and directors of the Company for compensation in lieu of services in the amount of $180,000 in aggregate, or $60,000 for each of the three (3) directors. During the year ended December 31, 2024, the Company issued 141,122 shares of restricted common stock for the payment of dividends due for its Series X Preferred stock as noted above. During the year ended December 31, 2024, holders of 11,724 shares of Series X preferred shares agreed to convert the shares into 86,788 common shares at a conversion rate of $4 per common share. The Company recorded the settlement as contributions of capital and no gain or loss was recorded. The Company accrued dividends in the amount of $71,240 on the Series X Preferred Stock for the year ended December 31, 2024. As of December 31, 2024, the Company had $0 in accrued dividends on the Series X Preferred Stock. During the year ended December 31, 2023, the Company accrued dividends on its Series X Preferred Stock in the total amount of $60,564. During the year ended December 31, 2023, the Company issued a total of 28,275 shares of common stock for accrued dividends on its Series X Preferred Stock. Of this amount, a total of 3,739 shares were issued to officers and directors, 14,586 were issued to a related party shareholder, and 9,950 were issued to non-related parties. **Stock Options** On January 21, 2021, the Company filed a Form S-8 containing the Mitesco Omnibus Securities and Incentive Plan (the Plan) with the SEC. In Sections 4.2 and 4.3 of the Plan it is noted that the Board of Directors has the authority for the administration of the Plan. On January 7, 2024, the Board of Directors voted to a) cancel, revoke and terminate any previously issued options that have not already been exercised. For a number of technical reasons, the Plan is no longer valid, and in addition to cancellation of any outstanding options, the Board has voted to formally terminate the Plan as of January 7, 2024. 62 [Table of Contents](#TableOfContents) The following table summarizes the transactions involving options to purchase shares of the Companys common stock: | | | Shares | | | Weighted- Average ExercisePrice ($) | | | | Outstanding at December 31, 2022 | | | 310,692 | | | $ | 10.01 | | | | Granted | | | - | | | | - | | | | Cancelled/Expired | | | (209,758 | ) | | $ | 10.00 | | | | Exercised | | | - | | | | - | | | | Outstanding at December 31, 2023 | | | 100,934 | | | $ | 10.05 | | | | Granted | | | - | | | | - | | | | Cancelled/Expired | | | (100,934 | ) | | $ | 10.05 | | | | Exercised | | | - | | | | - | | | | Outstanding at December 31, 2024 | | | - | | | $ | - | | | | Options vested and exercisable | | | - | | | $ | - | | | **Warrants** The Company has announced that it intends to cancel all outstanding warrants, and certain language to complete this has been added to all documents related to the conversion of outstanding debts, notes, accounts payable and other senior securities. The following table summarizes the warrants outstanding on December 31, 2024, and the related prices for the warrants to purchase shares of the Companys common stock: | | | | | | | | | | Weighted | | | | | | Weighted | | | | | | | | | | Weighted | | | average | | | | | | average | | | | | | | | | | average | | | exercise | | | | | | exercise | | | | Range of | | | Number of | | | remaining | | | price of | | | Number of | | | price of | | | | exercise | | | warrants | | | contractual | | | outstanding | | | warrants | | | exercisable | | | | prices | | | outstanding | | | life (years) | | | warrants | | | exercisable | | | warrants | | | | $ | 25.00 | | | | 7,717 | | | | 2.04 | | | | 25.00 | | | | 7,717 | | | | 25.00 | | | | | 37.50 | | | | 33,050 | | | | 1.93 | | | | 37.50 | | | | 33,050 | | | | 37.50 | | | | | | | | | 40,767 | | | | 1.95 | | | $ | 31.26 | | | | 40,767 | | | $ | 31.26 | | | The following table summarizes the transactions involving options to purchase shares of the Companys common stock: | | | Shares | | | Weighted- Average ExercisePrice ($) | | | | Outstanding at December 31, 2022 | | | 672,334 | | | $ | 30.68 | | | | Granted | | | 874 | | | $ | 2.50 | | | | Exercised | | | - | | | $ | - | | | | Outstanding at December 31, 2023 | | | 673,208 | | | $ | 30.64 | | | | Granted | | | - | | | $ | - | | | | Cancelled | | | (632,441 | ) | | $ | (29,87 | ) | | | Exercised | | | - | | | $ | - | | | | Outstanding at December 31, 2024 | | | 40,767 | | | $ | 35.13 | | | During the year end December 31, 2024, in connection with the settlements of debt, Series D preferred and Series F preferred, the investors also agreed to cancel their outstanding warrants in connections with the settlement transactions. At December 31, 2024, there was no intrinsic value on the issued or vested warrants. **Note 15: Fair Value of Financial Instruments** The following summarizes the Companys derivative financial liabilities that are recorded at fair value on a recurring basis at December 31, 2024, and 2023. | | | December 31, 2024 | | | | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | | | Liabilities | | | | | | | | | | | | | | | Derivative liabilities | | $ | - | | | $ | - | | | $ | 4,685,675 | | | $ | 4,685,675 | | | | | | December 31, 2023 | | | | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | | | Liabilities | | | | | | | | | | | | | | | Derivative liabilities | | $ | - | | | $ | - | | | $ | 152,945 | | | $ | 152,945 | | | 63 [Table of Contents](#TableOfContents) **Note 16: Income Taxes** Deferred income taxes result from the temporary differences primarily attributable to amortization of intangible assets and debt discount and an accumulation of net operating loss carryforwards for income tax purposes with a valuation allowance against the carryforwards for book purposes. 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. Included in deferred tax assets are Federal and State net operating loss carryforwards of approximately $60.7 million and $13.6 million, respectively, which will expire through 2040. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Due to significant changes in the Companys ownership, the Companys future use of its existing net operating losses may be limited. For the years ended December 31, 2024, and 2023, the expected tax expense (benefit) based on the U. S. federal statutory rate is reconciled with the actual tax provision (benefit) as follows: | | | For the Years Ended December 31, | | | | | | 2024 | | | 2023 | | | | | | | | | | | | | | | | | | | Expected tax at statutory rates | | $ | (528,000 | ) | | | 21 | % | | $ | (3,463,000 | ) | | | 21 | % | | | Permanent Differences | | | (4,000 | ) | | | 0 | % | | | 7,000 | | | | 0 | % | | | State Income Tax, Net of Federal benefit | | | 1,019,000 | | | | (62 | )% | | | (418,000 | ) | | | 1 | % | | | Other | | | 1,564,000 | | | | (41 | )% | | | (95,000 | ) | | | 2 | % | | | Current Year Change in Valuation Allowance | | | (2,051,000 | ) | | | 82 | % | | | 3,969,000 | | | | (24 | )% | | | Prior Year True-Ups | | | - | | | | 0 | % | | | - | | | | 0 | % | | | Income tax expense | | $ | - | | | | 0 | % | | $ | - | | | | 0 | % | | Deferred income taxes reflect the tax impact of temporary differences between the amounts of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations. Deferred income taxes include the net tax effects of net operating loss (NOL) carryforwards and the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of December 31, 2024, and 2023, significant components of the Companys deferred tax assets are as follows: | | | As of | | | | | | December 31, 2024 | | | December 31, 2023 | | | | Deferred Tax Assets (Liabilities): | | | | | | | | | Accrued payroll | | $ | 141,000 | | | $ | 141,000 | | | | ASC842-ROU Asset | | | - | | | | - | | | | ASC842-ROU (Liability) | | | 822,000 | | | | 822,000 | | | | Loss from derivatives | | | (869,000 | ) | | | (16,000 | ) | | | Waiver and commitment fee shares | | | - | | | | - | | | | Stock based compensation | | | (304,000 | ) | | | (171,000 | ) | | | Depreciation | | | 3,000 | | | | 3,000 | | | | Net operating loss | | | 12,462,000 | | | | 13,529,000 | | | | Net deferred tax assets (liabilities) | | | 12,255,000 | | | | 14,308,000 | | | | Valuation allowance | | | (12,255,000 | ) | | | (14,308,000 | ) | | | Net deferred tax assets (liabilities) | | $ | - | | | $ | - | | | **Note 17: Commitments and Contingencies** *Legal* ** From time to time, we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. On June 23, 2022, The Good Clinic LLC was notified that a former employee had filed a lawsuit for wrongful termination. The Good Clinic believes the lawsuit is without merit. Mitesco (Company) was not named in the suit. We have settled this matter as of January 11, 2024, for total consideration consisting of a cash payment of $3,000. On October 25, 2022, the Company was notified that a vendor filed a lawsuit related to a contract dispute naming both The Good Clinic and The CEO of the Good Clinic. This suit was settled on May 5, 2023, and dismissed with prejudice on May 12, 2023. The settlement included the issuance of the Companys restricted common stock. As a part of the settlement the Company issued 2,552 shares of its restricted common stock to the plaintiff and it issued to the CEO of The Good Clinic 19,622 of its restricted common stock, plus $3,000 in cash for reimbursement of expenses related to settling the suit with the vendor. 64 [Table of Contents](#TableOfContents) The Company has a number of legal situations involved with the winding down of its clinics business activities. These include claims regarding certain construction contracts and cancellation of leases as noted below: *Nordhaus Clinic* On November 1, 2020, we entered into an agreement to open a clinic in Minneapolis, Minnesota. The initial lease term is eight years. Fixed rent payments under the initial term are approximately $511,000. On November 6, 2023, the Company received a termination notice from the landlord indicating the lease had been terminated. No additional claims have been received by the landlord and the Company believes no additional amounts are owed. *Egan Clinic a.k.a. Vikings* On October 14, 2021, we entered into an agreement to open a clinic in Eagan, Minnesota, which began operations in the fourth quarter of 2021. The initial lease term is for 96 months. Fixed rent payments under the initial term are approximately $767,000. A Summary Judgment was granted on December 4, 2023, in the amount of $488,491, and the entry of final judgment was entered on December 15, 2023, and the Company has released the property back to the leaseholder. *St. Paul Clinic a.k.a. The Grove* On August 31, 2021, we entered into an agreement to open a clinic in St. Paul, Minnesota, which began operations in the fourth quarter of 2021. The initial lease term is for 114 months. Fixed rent payments under the initial term are approximately $1,153,000. A stipulation for Judgment was filed on December 21, 2023, in the amount of $415,266. The stipulated judgment includes $178,542 in unpaid back rent, $172,124 in resolution of mechanics liens, and $64,600 in attorneys fees. Final entry of judgment by the Court was entered against the Company on January 19, 2024, and the Company has released the property back to the leaseholder. *St. Louis Park Clinic a.k.a. Excelsior & Grand* On May 24, 2021, we entered into an agreement to open a clinic in St. Louis Park, Minnesota, which began operations in the third quarter of 2021. The initial lease term is seven years. Fixed rent payments under the initial term are approximately $673,000. The Company agreed to and executed a Confession of Judgment in the amount of $425,351 on April 2, 2024, and has released the property back to the leaseholder. We received the fully executed and recorded judgement on April 10, 2024. *Eden Prairie Clinic a.k.a. TP Elevate* On June 8, 2021, we entered into an agreement to open a clinic in Eden Prairie, Minnesota, which began operation in the third quarter of 2021. The initial lease term is eight years. Fixed rent payments under the initial term are approximately $620,000. The Company has surrendered possession of the property and is currently in negotiations for the amounts owed and is in the process of settling the remaining amounts owed. *Maple Grove Clinic a.k.a. Arbor Lakes* On October 8, 2021, we entered into an agreement to open a clinic in Maple Grove, Minnesota which began operation in the fourth quarter of 2021. The initial lease term is for 108 months. Fixed rent payments under the initial term are approximately $1,153,127. On October 22, 2022, the Company entered into a settlement agreement with the leaseholder for $219,576 and the Company released the property back to the leaseholder. *Radiant Clinic a.k.a. LMC Welton* On September 9, 2021, we entered into an agreement to open a clinic in Denver, Colorado, which was expected to begin operation in the first quarter of 2023 but possession of which has been relinquished to the landlords. The initial lease term is for 90 months. Fixed rent payments under the initial term are approximately $782,000. As of April 10, 2024, the Company has settled the amounts owed to the leaseholder and full resolution of all liens for approximately $530,000 and the Company has released the property back to the leaseholder. *Quincy Clinic a.k.a. 1776 Curtis* On September 28, 2021, we entered into an agreement to open a clinic in Denver, Colorado, which was expected to begin operation in the first quarter of 2023 but possession of which has been relinquished to the landlords. The initial lease term is for 94 months. Fixed rent payments under the initial term are approximately $1,079,000. A Final Judgment was granted on November 14, 2023, in the amount of $348,764 including interest, fees and other costs. The Company has released the property back to the leaseholder. 65 [Table of Contents](#TableOfContents) The following table summarizes the status of our property settlements as noted above and the total settlement amounts as of the date of the filing: | LOCATION | | PROPERTY NAME | | ORIGINAL OBLIGATION | | | SETTLEMENT AMOUNT | | | DATE OF AWARD | | INTEREST RATE | | | INTEREST ACCRUED ON SETTLEMENT | | | TOTAL SETTLEMENT OBLIGATION | | | TYPE OF SETTLEMENT | | | WAYZETTA, MN | | WAZETTA BAY | | $ | 407,000 | | | $ | 25,000 | | | NA | | | | | | | | | | $ | 25,000 | | | CASH PAYMENT OBLIGATION | | | EAGAN, MN | | VIKINGS | | $ | 767,000 | | | $ | 488,491 | | | 12/7/2023 | | | 10 | % | | $ | 52,195 | | | $ | 540,686 | | | DEFAULT JUDGEMENT | | | ST. LOUIS PARK, MN | | EXCELSIOR | | $ | 673,000 | | | $ | 425,350 | | | 5/22/2024 | | | 10 | % | | $ | 25,987 | | | $ | 451,337 | | | DEFAULT JUDGEMENT | | | ST. PAUL, MN | | CONTINENTAL 560 | | $ | 1,153,000 | | | $ | 415,266 | | | 1/22/2024 | | | 10 | % | | $ | 39,169 | | | $ | 454,775 | | | DEFAULT JUDGEMENT | | | MAPLE GROVE, MN | | BUTTNICK | | $ | 1,153,127 | | | $ | 219,576 | | | 10/3/2022 | | | 10 | % | | $ | 49,200 | | | $ | 268,200 | | | SETTLEMENT AGREEMENT | | | DENVER, CO | | RADIANT | | $ | 782,000 | | | $ | 530,000 | | | | | | | | | | | | | $ | 530,557 | | | DISMISSED | | | DENVER, CO | | QUINCY | | $ | 1,079,000 | | | $ | 348,764 | | | 11/14/2023 | | | 12 | % | | | 47,356 | | | $ | 396,120 | | | DEFAULT JUDGEMENT | | | | | TOTAL | | $ | 6,014,127 | | | $ | 2,452,447 | | | | | | | | | $ | 213,907 | | | $ | 2,666,675 | | | | | *Administrative offices* On June 24, 2021, we entered into an agreement to open an administrative office in St. Louis Park, Minnesota. The initial lease term is 2.5 years. Fixed rent payments under the initial term are approximately $244,000. We have not received any claims as to the obligations under this sublease agreement and the business from which we were renting has not responded to communications from our attorneys who have attempted to establish a formal settlement agreement since we have abandoned the location more than a year ago. During the year ending December 31, 2024, the Company recorded interest expense of $213,907 related to the above settlements based on the statutory rates of the courts in the respective locations. **Note 18: Subsequent Events** During January 2025 we issued 12,074 shares of restricted common stock in payment of dividends for the Series X preferred shares to four (4) holders. During January 2025 we received $100,000 of funding from three (3) institutional investors and issued 4,000 shares of Series A Preferred shares in consideration of this funding. 66 [Table of Contents](#TableOfContents) **** **ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE** On February 27, 2024, the Board of Directors approved the engagement of Accell Audit & Compliance, P.A. (Accell) as the Companys independent registered public accounting firm for the year ending December 31, 2023. On June 12, 2024, the Company was informed that Accell was ceasing to provide PCAOB audit services. It is our understanding that certain of the audit principals of Accell are now a part of Astra Audit and Advisory, LLP (Astra), and as such we appointed Astra Audit as the Companys independent registered public accounting firm for the year ending December 31, 2024. **ITEM 9A. CONTROLS AND PROCEDURES.** *Evaluation of Disclosure Controls and Procedures* We maintain disclosure controls and procedures as such term is defined in Rule 13a-15(e) under the Securities Exchange. In designing and evaluating our disclosure controls and procedures, our management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management was required to apply its judgment in evaluating the cost-benefit relationship of disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Based on their evaluation as of the end of the period covered by this Annual Report, the Board has determined these were deemed not effective and has undertaken to address the shortcomings by: | a. | adding additional and more qualified staff; | | | b. | reviewing structure and procedures implemented by similarly situated publicly held companies; and | | | c. | changes in process prior to any further acquisition or financing activity. | | Managements Annual Report on Internal Control over Financial Reporting Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. In making this assessment, management used the criteria set forth by the committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control Integrated Framework (2013 Framework). The Companys internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with accounting principles accepted in the United States of America. Internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Companys assets that could have a material effect on the interim or annual financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may deteriorate. The Companys management notes that the Companys internal control over financial reporting was not effective as of December 31, 2024. 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 the Companys annual or interim financial statements will not be prevented or detected on a timely basis. The material weaknesses identified during our annual audit for 2024 were (i) lack of segregation of duties, and (ii) lack of sufficient resources with appropriate accounting experience ), especially with regards to equity-based transactions and tax accounting expertise. Because of these material weaknesses, management concluded that the Company did not maintain effective internal control over financial reporting as of December 31, 2024. This Annual Report does not include an attestation report of our registered public accounting firm regarding our internal controls over financial reporting. The disclosure contained under this Item 9A was not subject to attestation by our registered public accounting firm pursuant to the temporary rules of the SEC that permit us to provide only with the disclosure under this Item 9A in this annual report. We believe that the material weaknesses as reported will eventually be fully remediated, upon being properly capitalized to hire the proper personnel for segregation of duties and SEC and GAAP accounting knowledge. 67 [Table of Contents](#TableOfContents) *Management**s Report on Disclosure Controls and Procedures* The Companys management has identified what it believes are material weaknesses in the Companys disclosure controls and procedures. The deficiencies in our disclosure controls and procedures included (i) lack of segregation of duties and (ii) lack of sufficient resources to ensure that information required to be disclosed by the Company in the reports that the Company files or submits to the SEC are recorded, processed, summarized, and reported, within the time periods specified in the SECs rules and forms. The Company intends to take corrective action to ensure that information required to be disclosed by the Company pursuant to the reports that the Company files or submits to the SEC is accumulated and communicated to the Companys management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. *Cybersecurity* We utilize information technology for internal and external communications with vendors, clinical sites, banks, investors and shareholders. Loss, disruption or compromise of these systems could significantly impact operations and results. We are not aware of any material cybersecurity violation or occurrence. We believe our efforts toward prevention of such violation or occurrence, including system design and controls, processes and procedures, training and monitoring of system access, but may not prevent unauthorized access to our systems. *Changes in Internal Control Over Financial Reporting* There has been no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during our fourth quarter ended December 31, 2024 that has materially affected, or is likely to materially affect, our internal control over financial reporting. **ITEM 9B. OTHER INFORMATION** None. **ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS** None. **** 68 [Table of Contents](#TableOfContents) **** **PART III** **ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE** **CURRENT BOARD OF DIRECTORS AND MANAGEMENT** The following table and biographical summaries set forth information, including principal occupation and business experience about our directors and executive officers as December 31, 2024: **Board of Directors** **** | Name | | Position | | Age | | | Date Appointed | | Date Resigned | | | Current Board | | | | | | | | | | | | Mack Leath | | Chief Executive Officer, Chief Financial Officer, Chairman of the Board, Director | | 68 | | | 12/15/2023 | | in place | | | John Mitchell | | Director, Secretary | | 56 | | | 12/15/2023 | | in place | | | Dr. Jordan Balencic | | Independent Director | | 39 | | | 12/15/2023 | | in place | | **Current Board and Management** **Mr. Mack Leath**, age 68, is a Director who also serves as CEO, CFO and Chairman of the Board of Directors. He is a senior executive with 30 + years experience in business management, including a number of rapid growth and start-up situations. He has been a sales and marketing professional in Petro-chemical distribution, software and construction related products as well as healthcare. His roles include financial management and capital markets. He has previously served on the Board of the Company from September 2016 until May 2017 where he assisted in restructuring and evaluating various business situations. Mr. Leath has held several positions with several software companies. He is the founder and Vice President of Business Development for Araicom Life Sciences, a literature search software start-up, Medsoftccs, LLC a software solution focused on assisting HR functions with nursing compliance issues and represents WVI Enterprise Companion, a software operating environment for the petro-chemical industries. His involvement with each organization has varied with his primary focus being development and implementation of the business plans, raising investment capital (angel), marketing and sales. Most recently, Mr. Leath is a partner in CLRM which assesses GHGs to trade in environmental carbon credit market and assists in improving fuel economies and emissions for long haul trucks. Mr. Leath has been the past president and has continued to serve on the Board of Searstone (www.searstone.com), a $150 million Continuing Care Retirement Community in Cary, NC since its inception in 2005, construction and occupancy. As president, he presented and argued the business case before the North Carolina MedCare Commission for the $112 million bond financing in 2010. In conjunction with this role, he has served as president of Quality Care Foundation, a 501c(3) corporation since 2002 which is the bond holder for other assisted care living facilities and CCRCs. Mr. Leath graduated from North Carolina State University with a B.S. in Business Administration; 1986. **Dr. Jordan Balencic**, age 39, is a Director. His employment history includes positions in both the healthcare arena, and as an entrepreneur. His healthcare experience is as follows: From October 2016 until the present, he has served as the Service Chief, Medical Director, and a staff physician for Home Based Primary Care (HBPC) November for the U.S. Department of Veterans Affairs, Veterans Health Administration Lebanon, PA (Lebanon VA Medical Center). His experience as an entrepreneur includes CEO / Co-Founder of ERApeutics, LLC d/b/a EVERMIND, Lancaster, PA, a physician-led organization dedicated to commercializing evidence-based, functional food and beverage products for cognitive health. From August 2017 until the present, he serves as CEO / Co-Founder for BrainPower Capital, Inc., Lancaster, PA a health and wellness commercialization consultancy that has provided strategic guidance to several startups and public microcap companies since 2017. 69 [Table of Contents](#TableOfContents) He previously served as a member of the Board of Directors for Mitesco from September 2016 until September 2018 where he assisted in restructuring and evaluating various business acquisitions. Dr. Balencics education includes the following degrees: Doctor of Osteopathic Medicine (D.O.), in June 2013 from Lake Erie College of Osteopathic Medicine, Erie, PA and Bachelor of Science (B.S.) in May 2009 from Gannon University, Erie, PA Degree: B.S. Biology with Emphasis in Pre-Medicine, Cum Lade. **Mr. John Mitchell**, age 56, a Director who also serves as Secretary and Treasurer, has been an independent business owner and advisor since 2001 until present with an emphasis on the lighting and electrical products area in the yachting industry, as well as certain home improvement business activities. From 1997 until 2001 he was employed by Microsoft Corporation as a recruiter. From 1989 until 1997 Mr. Mitchell served in the U.S. Marine Corps, most recently as Sergeant E-5. Mr. Mitchell provided bridge financing to the Company in September 2022. Mr. Mitchells education includes undergraduate studies at Campbell University, Buios Creek, NC, 1989. **Arrangements for Nomination as Directors and Changes in Procedures for Nomination; Election of Directors** No arrangement or understanding exists between any director or nominee and any other persons pursuant to which any individual was or is to be selected or serve as a director. No director or executive officer has any family relationship with any other director or with any of the Companys executive officers. Holders of our Common Stock are entitled to one vote for each share held on all matters submitted to a vote of the stockholders, including the election of directors. Cumulative voting with respect to the election of directors is not permitted by our Certificate of Incorporation. Our Board of Directors shall be elected at the annual meeting of the shareholders or at a special meeting called for that purpose. Each director shall hold office until the next annual meeting of shareholders and until the directors successor is elected and qualified. **Composition of our Board of Directors** Our board of directors currently consists of three (3) members. Our directors hold office until their successors have been elected and qualified or until the earlier of their death, resignation, or removal. **Director Independence** While the Companys shares are not listed on the NASDAQ Capital Market, the Company has chosen to implement NASDAQs independence standards to determine the independence of our board of directors. Accordingly, Dr. Jordan Balencic is currently the only independent board member in accordance with NASDAQ independence standards. Our Board determined that Mr. Leath and Mr. Mitchell, are not independent directors as a result of being an executive officer to the Company. **Advisory Board** The Board of Directors authorized the creation of a new Advisory Board whose participants shall include subject matter experts in certain business areas under consideration by the Company. These positions are non-executive and as such are not governed by Section 16 of the Securities Act. The members of the advisory board do not have the authority to vote on matters brought to the Board of Directors and may only attend a meeting of the board of directors if they are invited. Also, the members of the advisory board are not bound by fiduciary duties and are not entitled to indemnification. The members of the Advisory Board are executives whose careers have focused on infrastructure related technology, cybersecurity, data center business development and data center systems software, and digital marketing as noted here: | | 1) | Kristen Plybon is a cybersecurity professional with a strong background in data privacy with CIPP/US and CIPP/E certifications. She is a licensed attorney with a deep understanding of state, federal, and global data protection laws and regulations. | | | | | | | | | 2) | Nathaniel Wade is a professional specializing in cybersecurity and enterprise IT operations for a number of well-known Fortune 1,000, Department of Defense (DoD), and Federal Civilian (FedCiv) agencies specializing in design and implementation of cybersecurity programs for public safety, national defense, and intelligence communication systems; | | 70 [Table of Contents](#TableOfContents) | | 3) | Tom Simon, the owner of Synthos, LLC, a Seattle-based provider of development and support services specializing in GIS. Synthosservices include data procurement and analysis, and spatial and statistical analysis using industry leading applications such as ESRIs Arc-Info and Trimble Navigation. | | | | | | | | | 4) | Chris McLoughlin has spent his career in software and systems development and is an owner of Accucom Consulting, Inc., which specializes in network infrastructure, and Sentry RMS, which provides software to the public safety sector including various state and municipal law enforcement and fire agencies. | | | | | | | | | 5) | Gabriel Crawford has over 20 years of experience in data center development from location selection through power distribution engineering and financial structuring including co-location, data center design, key account recruitment and multi-site data distribution. | | | | | | | | | 6) | Jim Clifton is a seasoned Software Field Sales Director with over 20 years of experience in driving business growth through innovative go-to-market sales strategies focused on systems software, modern infrastructure, and data analytics and innovative implementation to improve productivity across corporations and workforces worldwide. | | | | | | | | | 7) | Mr. Marty Valania is a senior executive whose career has focused on the use of digital marketing in support of the newspaper industry, for both businesses (B2B), and direct to consumer selling. He is focused on assisting the Company establish a digital marketing operation in support of both their internal needs, and as a service to third parties. | | **Board of Directors Committees** The Company currently has audit and compensation committees of the board of directors. The Company may elect to may create additional Board committees when it applies to an up-listing to a senior exchange. **Audit Committee** The Company has appointed Dr. Balencic as the sole member of the audit committee. Dr. Balencic is independent under the Nasdaq Listing Rules independence standards. Our audit committee is comprised of one independent board member. The audit committee is responsible for overseeing our corporate accounting and financial reporting process, assisting our board of directors in monitoring our financial systems, and overseeing legal, healthcare, and regulatory compliance. Our audit committee also: | | | selects and hires the independent registered public accounting firm to audit our financial statements; | | | | | | | | | helps to ensure the independence and performance of the independent registered public accounting firm; | | | | approves audit and non-audit services and fees; | | | | reviews financial statements and discusses with management and the independent registered public accounting firm our annual audited and quarterly financial statements, the results of the independent audit and the quarterly reviews and the reports and certifications regarding internal controls over financial reporting and disclosure controls; | | | | prepares the audit committee report that the SEC requires to be included in our annual proxy statement; | | | | reviews reports and communications from the independent registered public accounting firm; | | | | reviews the adequacy and effectiveness of our internal controls and procedure; | | | | reviews our policies on risk assessment and risk management; | | | | reviews related party transactions; and | | | | establishes and oversees procedures for the receipt, retention and treatment of accounting related complaints and the confidential submission by our employees of concerns regarding questionable accounting or auditing matters. | | Our audit committee operates under a written charter, which satisfies the applicable rules of the SEC. 71 [Table of Contents](#TableOfContents) **Compensation Committee** Mr. Leath and Mr. Mitchell currently serve as members of the compensation committee. Our compensation committee oversees our compensation policies, plans and benefits programs. The compensation committee also: | | | oversees our overall compensation policies, plans and benefit programs; | | | | | | | | | | reviews and recommends to our board of directors for approval compensation for our executive officers and directors; | | | | | | | | | | prepares the compensation committee report that the SEC would require to be included in our annual proxy statement if we were no longer deemed to be an emerging growth company or a smaller reporting company; and | | | | | | | | | | administers our equity compensation plans. | | Our compensation committee operates under a written charter, which satisfies the applicable rules of the SEC. **Code of Ethics** We have adopted a Code of Business Conduct and Ethics, which applies to our Board of Directors, our executive officers, and our employees, and outlines the broad principles of ethical business conduct we adopted, covering subject areas such as: | | o | Compliance with applicable laws and regulations | | | | o | Handling of books and records | | | | o | Public disclosure reporting | | | | o | Insider trading | | | | o | Discrimination and harassment | | | | o | Health and safety | | | | o | Conflicts of interest | | | | o | Competition and fair dealings | | | | o | Protection of Company asset | | 72 [Table of Contents](#TableOfContents) **** **EXECUTIVE COMPENSATION** **Summary of Executive Compensation** The following summary compensation table sets forth all compensation awarded to, earned by, or paid to the named executive officers paid by us during the periods ended December 31, 2024 and 2023. **Summary Compensation Table** | | | | | | Salary | | | Salary | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | earned | | | earned | | | | | | | | | | | | Non-Equity | | | Nonqualified | | | | | | | | | | | | | | | and | | | and | | | | | | | | | | | | Incentive | | | Deferred | | | All | | | | | | | Name and | | | | | paid | | | unpaid | | | | | | Stock | | | Option | | | Plan | | | Compensation | | | Other | | | | | | | Principal | | | | | in cash | | | in cash | | | Bonus | | | Awards | | | Awards | | | Compensation | | | Earnings | | | Compensation | | | Total | | | | Position | | Year | | | ($) | | | ($) | | | ($) | | | ($) | | | ($) | | | ($) | | | ($) | | | ($) | | | ($) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Mack Leath | | | 2024 | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | - | | | | Chief Executive Officer and Chief Financial Officer | | | 2023 | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | - | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Lawrence Diamond | | | 2024 | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | - | | | | Former Chief Executive Officer | | | 2023 | | | | 7,000 | | | | 233,385 | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 634,114 | | (a) | 874,499 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Thomas Brodmerkel | | | 2024 | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | Former Chief Financial Officer | | | 2023 | | | | - | | | | 115,385 | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 95,791 | | (a) | 211,176 | | | | | (a) | Consists of an equity incentive for the conversion of notes and accrued compensation into Series F preferred shares. These shares have now been fully extinguished as a part of the FY2024 Restructuring. | | **Pension Benefits; Nonqualified Defined Contribution and Other Nonqualified Deferred Compensation Plans** We do not offer pension benefits, non-qualified contribution, or other deferred compensation plans to our executive officers. **Outstanding Equity Awards at December 31, 2024** In January 2024 the Board of Directors terminated the stock option plan, and all previously issued options. As a result there are no outstanding options at this time. **DIRECTOR COMPENSATION** The following table sets forth, for the year ended December 31, 2024, information relating to the compensation of each director who served on our Board of Directors during the fiscal year and who was not a named executive officer. This compensation was for their role as Director of the Company within the fiscal year, as well as an issuance in consideration of their contributions outside of their role as a director. **** **Director Compensation for FY2024** **** | | | CASH PAYMENTS | | | SERIES X PREFERRED SHARES | | | RESTRICTED COMMON STOCK PERFORMANCE AWARDS | | | VALUE OF PERFORMANCE REWARD | | | TOTAL COMPENSATION | | | | LEATH | | | | | | $ | 60,000 | | | | 250,000 | | | $ | 75,000 | | | $ | 135,000 | | | | BALENCIC | | | | | | $ | 60,000 | | | | 250,000 | | | $ | 75,000 | | | $ | 135,000 | | | | MITCHELL | | $ | 28,000 | | | $ | 60,000 | | | | 250,000 | | | $ | 75,000 | | | $ | 163,000 | | | The Company appointed three (3) new Directors on December 15, 2023. They elected to receive no compensation for 2023. 73 [Table of Contents](#TableOfContents) They have agreed to serve for one (1) year terms and have agreed to a compensation plan that provides for a) $60,000 per year stipend to be paid by the issuance of Series X Preferred Stock, and b) reimbursement of any real and actual cash expenses incurred in the execution of their responsibilities such as travel, office supplies or similar nominal expenses, c) potential performance awards using restricted common stock based on the performance of the Company in its restructuring and operations. The Series X Preferred shares have a face value of $25 per share and pay dividends of 10% in cash or through the issuance of restricted common stock monthly. All dividends to date for previously issued shares have been paid through the issuance of restricted common stock, and it is anticipated that this practice will continue indefinitely. For 2024, in conjunction with their appointments, each of the Directors will receive a total of 2,400 shares of Series X Preferred stock. Each share has voting rights entitling it to four hundred (400) votes, when compared to common stock which has one (1) vote per share. As such each director will be entitled to 960,000 share votes on any matter requiring a vote. In July 2024 each of the Directors were issued 100,000 shares of restricted common stock in consideration of their contributions over and above their role as a member of the Board of Directors. The shares were valued at $.25 per share, and the Company recorded stock compensation of $5,000 for each issuance, $75,000 in aggregate, related to the issuance. In November 2024 each of the Directors were issued 150,000 shares of restricted common stock in consideration of their contributions over and above their role as a member of the Board of Directors. The shares were valued at $.34 per share, $51,000 for each director, or $153,000 in total, per share, and the Company recorded stock compensation of $51,000 for each issuance, $153,000 in aggregate, related to the issuance. During FY2024 the Directors also received 8,661 shares of restricted common stock in payment of dividends for the Series X Preferred shares, valued at $2,165 each. Mr. Mitchell was compensated with $28,000 in cash consideration for his time providing administrative support. This brings the total compensation for each Director for FY2024 to $137,165, consisting of a) an annual stipend of $60,000 paid in the form of the issuance of 2,400 shares of Series X Preferred shares, and b) 250,000 shares of restricted common stock issued for services and performance outside of their Board responsibilities in two (2) separate issuances, one for the first half of FY2024 of 100,000 shares, and a second for the last half of FY2024 of 150,000 shares. 74 [Table of Contents](#TableOfContents) **SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS** The following table sets forth certain information as of March 22, 2025, regarding the beneficial ownership of our Common Stock and Series X Preferred Stock by (i) each person (including any group as such term is used in Section 13(d)(3) of the Exchange Act) known by us to be a beneficial owner of more than 5% of our common stock, (ii) each of our directors and named executive officers; and (iii) all of our directors and executive officers as a group. At March 22, 2025, we had 9,774,332 shares of Common Stock issued and outstanding, and 19,703 shares of Series X Preferred Stock issued and outstanding, having an aggregate of 17,543,458 votes. Unless otherwise indicated, the address of each of the stockholders listed is 1660 Highway 100 South, Suite 432, Saint Louis Park, Minnesota 55416. Beneficial ownership is determined in accordance with the rules of the SEC and includes general voting power and/or investment power with respect to securities. Shares of Common Stock issuable upon exercise of options or warrants that are currently exercisable or exercisable within 60 days of the Record Date and shares of Common Stock issuable upon conversion of other securities currently convertible or convertible within 60 days, are deemed outstanding for computing the beneficial ownership percentage of the person holding such securities but are not deemed outstanding for computing the beneficial ownership percentage of any other person. Under the applicable SEC rules, each persons beneficial ownership is calculated by dividing the total number of shares with respect to which they possess beneficial ownership by the total number of outstanding shares. In any case where an individual has beneficial ownership over securities that are not outstanding but are issuable upon the exercise of options or warrants or similar rights within the next 60 days, that same number of shares is added to the denominator in the calculation described above. Because the calculation of each persons beneficial ownership set forth in the Percentage Class column of the table may include shares that are not presently outstanding, the sum total of the percentages set forth in such column may exceed 100%. | Common shares outstanding at March 22, 2025 | | | 9,774,332 | | | | Preferred X shares outstanding at March 22, 2025 | | | | 19,703 | | | | Votes from Preferred X super voting rights: | | | | 7,881,200 | | | | | | | | Total voting shares including common and super votes from Preferred X | | | | 17,543,458 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Name | | | Amount and Nature of Beneficial Ownership of Common Stock | | | | Percentage of Common Stock Beneficially Owned | | | | Number of Shares of Series X Preferred Stock | | | | Percentage of Series X Preferred Stock | | | | Number of votes at 400 per share | | | | Add common shares held at March22, 2025 | | | | Total Votes | | | | % of the Total Votes | | | | MACK LEATH (1) | | | 379,494 | | | | 3.88 | % | | | 2,400 | | | | 12.18 | % | | | 960,000 | | | | 379,494 | | | | 1,339,494 | | | | 7.59 | % | | | JORDAN BALENCIC | | | 258,661 | | | | 2.65 | % | | | 2,400 | | | | 12.18 | % | | | 960,000 | | | | 258,661 | | | | 1,218,661 | | | | 6.90 | % | | | JOHN MITCHELL | | | 300,040 | | | | 3.07 | % | | | 2,400 | | | | 12.18 | % | | | 960,000 | | | | 300,040 | | | | 1,260,040 | | | | 7.14 | % | | | Current Executive Officers and Directors as a group (3 Persons) | | | 938,195 | | | | 9.60 | % | | | 7,200 | | | | 36.54 | % | | | 2,880,000 | | | | 938,195 | | | | 3,818,195 | | | | 21.63 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5% or more shareholders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ANGLO IRISH MANAGEMENT LLC (2) | | | 171,967 | | | | 1.76 | % | | | 12,503 | | | | 63.46 | % | | | 5,001,200 | | | | 164,306 | | | | 5,165,506 | | | | 29.30 | % | | | ANSON INVESTMENTS, ET AL | | | 868,358 | | | | 8.9 | % | | | - | | | | - | | | | - | | | | 868,358 | | | | 868,358 | | | | 4.9 | % | | | (1) | includes 100,000 shares issued to a family member for acquisition of a software business | | | (2) | Based solely on representation by Anglo Irish Management LLC (Anglo). During FY2024 Anglo received 45,122 shares of common stock as interest earned on shares of the Series X Preferred Stock and owns 12,503 shares of Series X Preferred. Daniel Hollis is the Manager of Anglo Irish Management LLC, and its business address is 9057A Selborne Lane, Chatt Hills, GA 30268. | | 75 [Table of Contents](#TableOfContents) **PART IV** **ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES** | (a)(1) | The following financial statements are included in this Annual Report on Form 10-K for the fiscal years ended December 31, 2024, and 2023: | | | | | | | | | 1. | Report of Independent Registered Public Accounting Firm | | | | | | | | | 3. | Consolidated Balance Sheets as of December 31, 2024, and 2023 | | | | | | | | | 4. | Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2024, and 2023 | | | | | | | | | 5. | Consolidated Statements of StockholdersEquity for the years ended December 31, 2024, and 2023 | | | | | | | | | 6. | Consolidated Statements of Cash Flows for the years ended December 31, 2024, and 2023 | | | | | | | | | 7. | Notes to Consolidated Financial Statements | | | | | | | (a)(2) | All financial statement schedules have been omitted as the required information is either inapplicable or included in the Consolidated Financial Statements or related notes. | | | | | | | (a)(3) | The exhibits set forth in the accompanying exhibit index below are either filed as part of this report or are incorporated herein by reference: | | Unless otherwise indicated, each of the following exhibits have been previously filed with the Securities and Exchange Commission by the Company under File No. 000-53601. | | | | | Incorporated by | | | | | Exhibit | | | | Reference | | Filed or Furnished | | | Number | | Exhibit Description | | Form | | Exhibit | | Filing Date | | Herewith | | | | | | | | | | | | | | | | 3.1 | | Certificate of Incorporation of Trunity Holdings, Inc., dated January 18, 2012. | | 8-K | | 10.1 | | 1/31/2012 | | | | | | | | | | | | | | | | | | 3.2 | | Bylaws of Trunity Holdings, Inc., dated January 18, 2012. | | 8-K | | 10.2 | | 1/31/2012 | | | | | | | | | | | | | | | | | | 3.3 | | Certificate of Ownership Merging between Trunity Holdings, Inc. and Brain Tree International, Inc. dated January 24, 2012. | | 10-K | | 3.3 | | 4/16/2013 | | | | | | | | | | | | | | | | | | 3.4 | | Certificate of Designation of Series X Preferred Stock of Trunity Holdings, Inc., dated December 9, 2015. | | 8-K | | 3.1 | | 12/15/2015 | | | | | | | | | | | | | | | | | | 3.5 | | Certificate of Amendment to the Certificate of Incorporation of Trunity Holdings, Inc., dated December 24, 2015. | | 8-K | | 3.1(i) | | 1/06/2016 | | | | | | | | | | | | | | | | | | 3.6 | | Certificate of Designations of Series X Preferred Stock of True Nature Holding, Inc. | | 8-K | | 3.6 | | 1/06/2020 | | | | 76 [Table of Contents](#TableOfContents) | 3.7 | | Form of Amended and Restated Certificate of Designations of Series A Preferred Stock of True Nature Holding, Inc. | | 8-K | | 3.07 | | 3/13/2020 | | | | | | | | | | | | | | | | | | 3.8 | | Certificate of Amendment of the Certificate of Incorporation of True Nature Holding, Inc. dated April 21, 2020. | | 10-Q | | 3.7 | | 8/14/2020 | | | | | | | | | | | | | | | | | | 3.9 | | Certificate of Amendment of Certificate of Incorporation, dated as of November 5, 2020, correcting December 24, 2015, Certificate of Amendment. | | 10-Q | | 3.8 | | 11/13/2020 | | | | | | | | | | | | | | | | | | 3.10 | | Bylaws of Mitesco, Inc., as amended, dated November 10, 2020. | | 10-Q | | 3.9 | | 11/13/2020 | | | | | | | | | | | | | | | | | | 4.1* | | TrunityHoldings, Inc. 2012 Employee, Director, and Consultant Stock Option Plan. | | 10-K | | 10.4 | | 4/16/2013 | | | | | | | | | | | | | | | | | | 4.2 | | Convertible Promissory Note issued by True Nature Holding, Inc. on November 26, 2018, to Auctus Fund, LLC. | | 8-K | | 4.2 | | 1/14/2019 | | | | | | | | | | | | | | | | | | 4.3 | | Convertible Promissory Note issued by True Nature Holding, Inc. on December 19, 2018, to Crown Bridge Partners, LLC. | | 8-K | | 4.3 | | 1/14/2019 | | | | | | | | | | | | | | | | | | 4.4 | | Convertible Promissory Note issued by True Nature Holding, Inc. on January 2, 2019, to Power Up Lending Group Ltd. | | 8-K | | 4.4 | | 1/14/2019 | | | | | | | | | | | | | | | | | | 4.5* | | Mitesco, Inc. 2021 Omnibus Securities and Incentive Plan(File No. 333-252293) | | S-8 | | 4.1 | | 01/21/2021 | | | | | | | | | | | | | | | | | | 4.6 | | Description of Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934, as amended | | 10-K | | 4.6 | | 04/05/2022 | | | | | | | | | | | | | | | | | | 10.1 | | Agreement and Plan of Merger, dated as of January 24, 2011, by and among Trunity Holdings, Inc., Trunity Acquisitions Corp. and Trunity, Inc. | | 8-K | | 10.5 | | 1/31/2012 | | | | | | | | | | | | | | | | | | 10.2 | | Stock Purchase Agreement between dated as of January 24, 2012, by and among George Norman, Donna Norman, Lane Clissold, Trunity Holdings, Inc. and Trunity, Inc. | | 8-K | | 10.3 | | 1/31/2012 | | | | | | | | | | | | | | | | | | 10.3 | | Agreement and Plan of Merger, dated as of January 24, 2012, by and among Brain Tree International, Inc. and Trunity Holdings, Inc. | | 8-K | | 10.4 | | 1/31/2012 | | | | | | | | | | | | | | | | | | 10.4 | | Investment Project Contract dated as of March 18, 2013, among Trunity, Inc., InnSoluTech LLP and Educom Ltd. | | 10-K | | 10.5 | | 4/16/2013 | | | | | | | | | | | | | | | | | | 10.5 | | TrunityHoldings, Inc. 2012 Employee, Director, and Consultant Stock Option Plan. | | 10-K | | 10.4 | | 4/16/2013 | | | | | | | | | | | | | | | | | | 10.6 | | License Agreement dated as of March 20, 2013, between Trunity, Inc. and Educom Ltd. | | 10-K | | 10.7 | | 4/16/2013 | | | | | | | | | | | | | | | | | | 10.7 | | Share Purchase Agreement dated as of March 20, 2013, between Trunity, Inc. and InnSoluTech LLP. | | 10-K | | 10.6 | | 4/16/2013 | | | | | | | | | | | | | | | | | | 10.8 | | Memorandum of Understanding Regarding Trunity Holdings, Inc. and PIC Partners dated as of April 17, 2013, by and between Pan-African Investment Company and Trunity Holdings, Inc. | | 10-K | | 10.13 | | 4/15/2014 | | | | 77 [Table of Contents](#TableOfContents) | 10.9 | | Subscription Agreement dated May 28, 2013, between Trunity Holdings, Inc., and Pan African Investment Company. | | 10-K | | 10.9 | | 4/15/2014 | | | | | | | | | | | | | | | | | | 10.10* | | Form of Indemnification Agreement between Trunity Holdings, Inc., and its Directors. | | 10-K | | 10.8 | | 4/16/2013 | | | | | | | | | | | | | | | | | | 10.11 | | The Indemnification Agreement dated May 30, 2013, between Trunity Holdings, Inc., and Dana M. Reed. | | 10-K | | 10.12 | | 4/15/2014 | | | | | | | | | | | | | | | | | | 10.12 | | Voting Agreement dated May 30, 2013, by and among Trunity Holdings, Inc., Terry Anderton, RRM Ventures, LLC, Aureus Investments, LLC and Pan-African Investment Company, LLC. | | 10-K | | 10.11 | | 4/15/2014 | | | | | | | | | | | | | | | | | | 10.13 | | Investors Rights Agreement dated May 30, 2013, between Trunity Holdings, Inc., and Pan African Investment Company. | | 10-K | | 10.10 | | 4/15/2014 | | | | | | | | | | | | | | | | | | 10.14 | | Voting Agreement dated June 5, 2013, by and among Trunity Holdings, Inc., Terry Anderton, RRM Ventures, LLC, Aureus Investments, LLC and Pan-African Investment Company, LLC. (File No. 005-86722) | | 13D | | C | | 7/25/2013 | | | | | | | | | | | | | | | | | | 10.15 | | Investors Rights Agreement dated June 5, 2013, between Trunity Holdings, Inc., and Pan African Investment Company. | | 13D | | D | | 7/25/2013 | | | | | | | | | | | | | | | | | | 10.16 | | Non-Qualified Stock Option Agreement dated as of December 23, 2013, between Arol Buntzman and Trunity Holdings, Inc. | | 10-K | | 10.14 | | 4/15/2014 | | | | | | | | | | | | | | | | | | 10.17 | | Securities Purchase Agreement dated as of November 5, 2014, by and between Trunity Holdings, Inc. and Peak One Opportunity Fund, L.P. | | 10-Q | | 10.15 | | 11/25/2014 | | | | | | | | | | | | | | | | | | 10.18 | | Consulting Agreement dated as of December 1, 2015, by and between Trunity Holdings, Inc., and Stephen Keaveney. | | 8-K | | 10.2 | | 12/15/2015 | | | | | | | | | | | | | | | | | | 10.19 | | Securities Exchange Agreement dated as of December 9, 2015, by and among Trunity Holdings, Inc., and the Members of Newco4Pharmacy, LLC. | | 8-K | | 10.1 | | 12/15/2015 | | | | | | | | | | | | | | | | | | 10.20 | | Spin-off and Asset Transfer Agreement dated as of December 31, 2015, by and among Trunity Holdings, Inc., Trunity, Inc., a Delaware corporation, and Trunity, Inc., a Florida corporation. | | 8-K | | 10.1 | | 1/06/2016 | | | | | | | | | | | | | | | | | | 10.21 | | Asset Purchase Agreement, dated September 30, 2016, by and among True Nature Holding, Inc., P3 Compounding Of Georgia, LLC, and ICP Holdings, LLC | | 8-K | | 10.1 | | 10/05/2016 | | | | | | | | | | | | | | | | | | 10.22 | | Consulting Agreement, dated June 8, 2017, between True Nature Holding, Inc. and Resources Unlimited NW LLC. | | 8-K | | 10.1 | | 6/15/2017 | | | | | | | | | | | | | | | | | | 10.23 | | Note Payable by True Nature Holding, Inc. to Stephen Keaveney, dated July 10, 2017. | | 10-Q | | 10.1 | | 8/18/2017 | | | | | | | | | | | | | | | | | | 10.24 | | Convertible Promissory Note issued by True Nature Holding, Inc. on July 5, 2018, to Power Up Lending Group Ltd. | | 8-K | | 4.1 | | 7/13/2018 | | | | 78 [Table of Contents](#TableOfContents) | 10.25 | | Securities Purchase Agreement, dated July 5, 2018, by and between True Nature Holding, Inc. and Power Up Lending Group Ltd. | | 8-K | | 4.2 | | 7/13/2018 | | | | | | | | | | | | | | | | | | 10.26 | | Equity Financing Agreement, August 9, 2018, between True Nature Holding, Inc. and GHS Investments, LLC. | | 8-K | | 10.1 | | 8/16/2018 | | | | | | | | | | | | | | | | | | 10.27 | | Registration Rights Agreement, dated August 9, 2018, between True Nature Holding, Inc. and GHS Investments, LLC | | 8-K | | 10.2 | | 8/16/2018 | | | | | | | | | | | | | | | | | | 10.28 | | Convertible Promissory Note issued by True Nature Holding, Inc. on September 18, 2018, to Power Up Lending Group Ltd. | | 8-K | | 4.1 | | 9/28/2018 | | | | | | | | | | | | | | | | | | 10.29 | | Securities Purchase Agreement, dated September 18, 2018, by and between True Nature Holding, Inc. and Power Up Lending Group Ltd. | | 8-K | | 10.1 | | 9/28/2018 | | | | | | | | | | | | | | | | | | 10.30 | | Convertible Promissory Note issued by True Nature Holding, Inc. on November 9, 2018, to Power Up Lending Group Ltd. | | 8-K | | 4.1 | | 1/14/2019 | | | | | | | | | | | | | | | | | | 10.31 | | Securities Purchase Agreement, dated November 9, 2018, between True Nature Holding, Inc. and Power Up Lending Group Ltd. | | 8-K | | 10.1 | | 1/14/2019 | | | | | | | | | | | | | | | | | | 10.32 | | Securities Purchase Agreement, dated November 26, 2018, by and between True Nature Holding, Inc. and Auctus Fund, LLC. | | 8-K | | 10.2 | | 1/14/2019 | | | | | | | | | | | | | | | | | | 10.33 | | Common Stock Purchase Warrant issued by True Nature Holding, Inc. on November 26, 2018, to Auctus Fund, LLC. | | 8-K | | 10.5 | | 1/14/2019 | | | | | | | | | | | | | | | | | | 10.34 | | Securities Purchase Agreement, dated December 19, 2018, between True Nature Holding, Inc. and Crown Bridge Partners, LLC. | | 8-K | | 10.3 | | 1/14/2019 | | | | | | | | | | | | | | | | | | 10.35 | | Common Stock Purchase Warrant issued by True Nature Holding, Inc. on December 19, 2018, to Crown Bridge Partners, LLC. | | 8-K | | 10.6 | | 1/14/2019 | | | | | | | | | | | | | | | | | | 10.36 | | Securities Purchase Agreement, dated January 2, 2019, by and between True Nature Holding, Inc. and Power Up Lending Group Ltd. | | 8-K | | 10.4 | | 1/14/2019 | | | | | | | | | | | | | | | | | | 10.37* | | Senior Executive Employment Agreement effective as of October 1, 2019, between True Nature Holding Inc. and M. Lawrence Diamond | | 8-K | | 10.3 | | 10/16/2019 | | | | | | | | | | | | | | | | | | 10.38* | | Senior Executive Employment Agreement effective as of November 4, 2019, between True Nature Holding Inc. and Julie R. Smith | | 8-K | | 10.2 | | 10/16/2019 | | | | | | | | | | | | | | | | | | 10.39* | | Form of Board of Directors Advisory Agreement, dated as of December 26, 2019, between True Nature Holding Inc. and its Board Members | | 8-K | | 10.03 | | 1/06/2020 | | | | | | | | | | | | | | | | | | 10.40 | | Asset Purchase Agreement, dated as of March 2, 2020, by and among My Care, LLC and True Nature Holding, Inc. | | 8-K | | 10.1 | | 3/13/2020 | | | | | | | | | | | | | | | | | | 10.41 | | Convertible Redeemable Promissory Note issued by True Nature Holding, Inc. on April 8, 2020,to Eagle Equities, LLC. | | 8-K | | 4.01 | | 4/17/2020 | | | | | | | | | | | | | | | | | | 10.42 | | Securities Purchase Agreement, dated April 8, 2020, between True Nature Holding, Inc. and Eagle Equities, LLC. | | 8-K | | 4.02 | | 4/17/2020 | | | | 79 [Table of Contents](#TableOfContents) | 10.43 | | Promissory Note issued by Bank of America, NA on April 25, 2020, to True Nature Holding, Inc. | | 8-K | | 10.1 | | 5/11/2020 | | | | | | | | | | | | | | | | | | 10.44* | | Board of Directors Advisory Agreement, dated June 1, 2020, between Mitesco, Inc. and Faraz Paqvi. | | 8-K | | 5.01 | | 7/13/2020 | | | | | | | | | | | | | | | | | | 10.45 | | Convertible Redeemable Note, dated July 1, 2020, between Mitesco, Inc. and Eagle Equities, LLC Inc. | | 8-K | | 4.01 | | 8/05/2020 | | | | | | | | | | | | | | | | | | 10.46 | | Securities Purchase Agreement, dated July 1, 2020, between Mitesco, Inc. and Eagle Equities, LLC. | | 8-K | | 10.01 | | 8/05/2020 | | | | | | | | | | | | | | | | | | 10.47 | | Consulting Advisor Agreement, dated July 8, 2020, between Mitesco, Inc. and Michael Loiacono. | | 8-K | | 10.1 | | 7/08/2020 | | | | | | | | | | | | | | | | | | 10.48* | | Board of Directors Advisory Agreement, dated August 1, 2020, between Mitesco, Inc. and Juan Carlos Iturregui. | | 8-K | | 10.02 | | 8/05/2020 | | | | | | | | | | | | | | | | | | 10.49 | | Securities Purchase Agreement, dated August 20, 2020, between Mitesco, Inc. and Eagle Equities, Inc. | | 8-K | | 10.01 | | 8/27/2020 | | | | | | | | | | | | | | | | | | 10.50 | | Convertible Redeemable Promissory Note, dated August 20, 2020, between Mitesco, Inc. and Eagle Equities Inc. | | 8-K | | 4.01 | | 8/27/2020 | | | | | | | | | | | | | | | | | | 10.51 | | Securities Purchase Agreement, dated September 30, 2020, between Mitesco, Inc. and Eagle Equities, Inc. | | 8-K | | 10.01 | | 10/06/2020 | | | | | | | | | | | | | | | | | | 10.52 | | Convertible Redeemable Promissory Note, dated September 30, 2020, between Mitesco, Inc. and Eagle Equities Inc. | | 8-K | | 4.01 | | 10/06/2020 | | | | | | | | | | | | | | | | | | 10.53 | | Formof lease agreement between The Good Clinic, LLC, and LMC NE Minneapolis Holdings, LLC, dated October 19, 2020. | | 10-Q | | 10.4 | | 11/13/2020 | | | | | | | | | | | | | | | | | | 10.54 | | Securities Purchase Agreement, dated October 29, 2020, between Mitesco, Inc. and Eagle Equities, Inc. | | 8-K | | 10.01 | | 11/06/2020 | | | | | | | | | | | | | | | | | | 10.55 | | Convertible Redeemable Promissory Note, dated October 29, 2020,between Mitesco, Inc. and Eagle Equities Inc. | | 8-K | | 4.01 | | 11/06/2020 | | | | | | | | | | | | | | | | | | 10.56 | | Securities Purchase Agreement, dated December 9, 2020, between Mitesco, Inc. and Eagle Equities, Inc. | | 8-K | | 10.01 | | 12/15/2020 | | | | | | | | | | | | | | | | | | 10.57 | | Convertible Redeemable Promissory Note, dated December 9, 2020, between Mitesco, Inc. and Eagle Equities Inc. | | 8-K | | 4.01 | | 12/15/2020 | | | | | | | | | | | | | | | | | | 10.61 | | Employment Agreement by and between Phillip Keller and Mitesco, Inc., dated as of March 17, 2021. | | 8-K | | 10.1 | | 03/17/2021 | | | | 80 [Table of Contents](#TableOfContents) | 21.1 | | Subsidiaries of the Registrant | | | | | | | | X | | | | | | | | | | | | | | | | 31.1 | | Certificationby the Principal Executive Officer andPrincipal Financial Officer of the Registrant pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | | | | | | | | X | | | | | | | | | | | | | | | | 32.1 | | Certificationby the Principal Executive Officer and Principal Financial Officer of the Registrant pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | | | | | | | | X | | | | | | | | | | | | | | | | 101.INS | | Inline XBRL Instance Document | | | | | | | | X | | | | | | | | | | | | | | | | 101.SCH | | Inline XBRL Taxonomy Extension Schema Document | | | | | | | | X | | | | | | | | | | | | | | | | 101.CAL | | Inline XBRL Taxonomy Extension Calculation Linkbase Document | | | | | | | | X | | | | | | | | | | | | | | | | 101.DEF | | Inline XBRL Taxonomy Extension Definition Linkbase Document | | | | | | | | X | | | | | | | | | | | | | | | | 101.LAB | | Inline XBRL Taxonomy Extension Label Linkbase Document | | | | | | | | X | | | | | | | | | | | | | | | | 101.PRE | | Inline XBRL Taxonomy Extension Presentation Linkbase Document | | | | | | | | X | | | | | | | | | | | | | | | | 104 | | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | | | | | | | | | | | * | Management contract or compensatory plan or arrangement required to be identified pursuant to Item 15(a)(3) of this report. | | **ITEM 16. FORM 10-K SUMMARY** Not applicable. 81 [Table of Contents](#TableOfContents) **SIGNATURE** Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Annual Report on Form 10-K for the fiscal year ended December 31, 2024, to be signed on its behalf by the undersigned, thereunto duly authorized. | | | | | | | MITESCO, INC. | | | | | | | | Dated: March 31, 2025 | By: | /s/ Mack Leath | | | | | Mack Leath Chief Executive Officer, Chief Financial Officer and Chairperson of the Board of Directors | | Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed by the following persons on behalf of the Registrant, Mitesco, Inc., and in the capacities and on the dates indicated. | Signature and Title | | Date | | | | | | | | | | /s/ Mack Leath | | March 31, 2025 | | | | Mack Leath | | | | | | Chief Executive Officer, Chief Financial Officer and Chairperson of the Board of Directors | | | | | | (Principal Executive Officer) | | | | | | | | | | | | | | | | | | /s/ John Mitchell | | March 31, 2025 | | | | John Mitchell | | | | | | Secretary and Director | | | | | | | | | | | | /s/ Dr. Jordan Balencic | | March 31, 2025 | | | | Jordan Balencic | | | | | | Director | | | | | 82