Form 10-Q: 0001607062-23-000023 compared to 0001607062-22-000617
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 10-Q

_________________

(Mark One)  

 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended: September 30, 2022.

or

 December 31, 2022.

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 


For the transition period from

Commission File Number: 333-248059 

_____________________

SYBLEU INC.

(Exact name of registrant as specified in its charter)

_____________________

Wyoming   85-1412307
(State or other jurisdiction of incorporation or organization)   (I.R.S. Employer Identification No.)
     
1034 Throggs Neck Expressway Bronx, NY 10465   91942
(Address of principal executive offices)   (Zip Code)

 

(619718) 227795-91927790

(Registrant’s telephone number, including area code)

 

N/A

(Former name or former address and former fiscal year, if changed since last report) 

_________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
     

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, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting 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 is a shell company (as defined in Rule 12b-2 of the Act).

Yes ☐  No ☒

APPLICABLE ONLY TO CORPORATE ISSUERS

As of October 8January 12, 20222023 there were 10,418304,000492 shares of common stock issued and outstanding.

 1 

 


PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

           
SYBLEU INC.      
CONDENSED BALANCE SHEETS      
       
   As of December 31 , 2022  As of June 30, 2022
    (Unaudited)      
ASSETS          
CURRENT ASSETS          
Cash  $36,848   $66,850 
Prepaid Expenses   16,236    0 
Total Current Assets  $53,084   $66,850 
OTHER ASSETS          
Investment Securities   2,200    9,529 
Prepaid Expenses ( Long Term)   5,715      
Total Other Assets   7,915    9,529 
TOTAL ASSETS  $60,999   $76,379 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current Liabilities:          
Income Taxes Payable   10,935    10,935 
Notes Payable   140,000    140,000 
Notes Payable, Related Party   0    0 
Expenses Accrued but Unpaid   150    452 
Interest Accrued but Unpaid   20,196    13,253 
Total Current Liabilities   171,281    164,640 
Long Term Liabilities:          
Unearned Income   155,801    161,699 
Total Liabilities  $327,082   $326,338 
           
STOCKHOLDERS' EQUITY (DEFICIT)          
Common Stock ($.0001 par value) 100,000,000 shares authorized; par value $0.0001; 10,418,000 shares issued and outstanding as of June 30, 2022 and 10,304,492 shares issued and outstanding  as of December 31, 2022   1,031    1,042 
          
Additional Paid in capital   122,214    100,049 
Retained Earnings (Deficit )   (389,328)   (351,051)
Total Stockholders' Equity (Deficit)   (266,083)   (249,960)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)  $60,999   $76,379 
           
The Accompanying Notes are an Integral Part of These Financial Statements

 2 

 

 

                     
SYBLEU INC.            
CONDENSED STATEMENT OF OPERATIONS         
(unaudited)         
             
   Quarter ended December 31, 2022  Quarter ended December 31, 2021  Six Months Ended December 31, 2022  Six Months Ended December 31, 2021
REVENUES                    
License Fees   2,948    2,949    5,897    5,898 
TOTAL REVENUES  $2,948   $2,949   $5,897   $5,898 
COSTS AND EXPENSES                    
Research and Development:                    
Staff Expenses   345          345      
Consulting Costs                     
Patent Application Costs         3,800         4,700 
Total Research and Development   345    3,800    345    4,700 
General and Administrative:                    
Transfer Agency Fees   691    614    1,332    982 
Other General and Administrative Expenses   1,404    5,891    2,433    8,704 
Total General and Administrative   2,095    6,505    3,765    9,687 
Consulting:                    
Legal Fees                    
Accounting   5,500    5,400    16,500    21,600 
Other Consulting                    
Information Technology Consulting                    
Total Consulting   5,500    5,400    16,500    21,600 
Rent                    
Total Costs and Expenses   7,940    15,705    20,610    35,987 
OPERATING Income( LOSS)  $(4,992)  $(12,756)  $(14,713)  $(30,089)
                     
OTHER INCOME AND EXPENSES                    
Unrealized Gain ( Loss) on Investment Securities   (790)   (44,005)   (7,329)   (158,925)
Stock Cancellation Expense   (9,294)         (9,294)     
Interest Income( Expense)   (3,451)   (4,990)   (6,941)   (5,045)
TOTAL OTHER INCOME ( EXPENSES)   (13,535)   (48,995)   (23,564)   (163,970)
                     
NET INCOME ( LOSS) before taxes   (18,527)   (61,751)   (38,277)   (194,059)
Provision for Inocme Taxes                     
NET INCOME ( LOSS)  $(18,527)  $(61,751)  $(38,277)  $(194,059)
BASIC AND FULLY DILUTED LOSS PER SHARE  $(0.00)  $(0.01)  $(0.00)  $(0.02)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING   10,394,301    10,418,000    10,406,215    10,418,000 
                     
The Accompanying Notes are an Integral Part of These Financial Statements

 3 

 

 

                         
SYBLEU INC.             
CONDENSED  STATEMENTS OF SHAREHOLDERS EQUITY (DEFICIT)             
For the Six Months  Ended December 31, 2022             
(unaudited)             
    Common         
    Shares  Amount  Additional Paid in Capital  Retained Deficit  Total
Balance June 30,2022    10,418,000   $1,042   $100,049   $(351,051)  $(249,960)
Net Loss for the quarter ended September 30, 2022                   (19,750)  (19,750)
Balance September 30, 2022    10,418,000   $1,042   $100,049   $(370,801)  $(269,710)
Cancellation of shares 12/13/2022    (6,113,508)  $(611)  $(95)       $(706)
Issuance of shares for services 12/12/2022    6,000,000   $600   $22,260        $22,860
Net Loss for the quarter ended December 31, 2022                  $(18,527)  $(18,527)
Balance December 31,2022    10,304,492   $1,031   $122,214   $(389,328)  $(266,083)

 4 

 

 

                
SYBLEU INC.
CONDENSED  STATEMENTS OF SHAREHOLDERS EQUITY (DEFICIT)
For the Six Months  Ended December 31, 2021
(unaudited)
                
                
                
   Common         
   Shares  Amount  Additional Paid in Capital  Retained Deficit  Total
Balance June 30, 2021   10,418,000   $1,042   $100,049   $(105,705)  $(4,614)
Net Loss for the three months ended September 30,2021                  (132,307)  $(132,307)
Balance September 30,2021   10,418,000   $1,042   $100,049   $(238,012)  $(136,921)
Net Loss for the three months ended December 31,2021                 $(61,751)  $(61,751)
Balance December 31, 2021   10,418,000   $1,042   $100,049   $(299,763)  $(198,672)

 

The Accompanying Notes are an Integral Part of These Financial Statements

 5 

 

 

           
SYBLEU INC.      
CONDENSED STATEMENT OF CASH FLOWS      
(unaudited)      
       
       
   Six Months Ended December 31, 2022  Six Months Ended December 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES          
Net Income (Loss)  $(38,277)  $(194,058)
Adjustments to reconcile net Income (loss) to net cash          
Common Stock Issued for payment of expenses   909      
Changes in Operating Assets and Liabilities          
(Increase) Decrease in Prepaid Expenses          
Increase (Decrease) in Accrued Expenses   6,640    9008 
(Increase) Decrease in Securities accepted as  Payment          
Increase( Decrease) in Unearned Income   (5,897)   (5,898)
Increase ( Decrease) in Income Tax Payable          
Decrease in Common Stock   (611)     
Decrease in Additional Paid in Capital   (95)     
Unrealized Loss ( Gain) in Investment Securities   7,329    158,925 
Net Cash provided by (used) in Operating Activities  $(30,002)  $(32,023)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Increase ( Decrease)   in Notes Payable, Related Parties        (8,919)
Increase ( Decrease)   in Notes Payable        140,000 
Common Stock issued for Cash          
Net Cash provided by (used) in Financing Activities   0    131,081 
           
Net Increase (Decrease) in Cash   (30,002)  $99,058 
Cash at Beginning of Period   66,850    14,297 
Cash at End of Period  $36,848   $113,355 
           
Supplemental Cash Flow Information:          
Interest Paid  $     $   
Income Taxes Paid  $     $   
           
The Accompanying Notes are an Integral Part of These  Financial Statements

 6 

 

SYBLEU INC.

Notes to Condensed Financial Statements

As of September 30December 31, 2022

 

NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SYBLEU INC. (“Company”) was organized June 12, 2020 under the laws of the State of Wyoming.

The Company intends to engage primarily in the development of regenerative medical applications up to the point of successful completion of Phase I and or Phase II clinical trials after which the Company would either attempt to sell or license those developed applications or, alternatively, advance the application further to Phase III clinical trials. The primary factor to be considered by us in arriving at a decision to advance an application further to Phase III clinical trials would be a greater than anticipated indication of efficacy seen in Phase I trials.

A. BASIS OF ACCOUNTING

The financial statements have been prepared using the basis of accounting generally accepted in the United States of America. Under this basis of accounting, revenues are recorded as earned and expenses are recorded at the time liabilities are incurred. The Company has adopted a June 30 year-end.

B. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

C. CASH EQUIVALENTS

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

D. FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date.  A fair value hierarchy requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required by the standard that the Company uses to measure fair value:

Level 1:  Quoted prices in active markets for identical assets or liabilities

Level 2:  Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

Level 3:  Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

 67 

 

E. RESEARCH AND DEVELOPMENT COSTS

Research and development expenses relate primarily to the cost of discovery and research programs. Research and development costs are charged to expense as incurred. Research and development expenses consist mainly of evaluating potential Contract Research Organizations and filing of a provisional patent application.

F. STOCK BASED COMPENSATION

Stock issued for Employee Compensation 

Stock based compensation to employees is accounted for at the award’s fair value at grant, less the amount (if any) paid by the award recipient.

During the quarter ended September 30December 31, 2022  no6,000,000  shares of common stock waswere issued for employee compensation.

as employee compensation.

In determining Fair Value for shares issued to employees an asset based valuation method was utilized , specifically Enterprise Value(Assets Less Cash and Cash Equivalents plus Fair Value of Debt) less Fair Value of Debt. The following inputs were utilized.

     
Fair Value of Intellectual Property  $35,490 
Securities  $3,771 
Notes Payable  $140,000 
Accrued Interest  $19,504 
Taxes Payable  $10,935 
Less Total Debt  $(170,439)
Portion of Enterprise Value available  to shareholders  $39,261 
Fair Value per share  $0.00381 

Stock issued for Non-Employee Services

Stock Based compensation to non-employees is accounted for in accordance with ASC 505-50. ASC 505-50 requires entities to account for non-employee equity transactions based on either the fair value of the services received or the fair value of the equity instrument issued utilizing whichever measurement is most reliable

During the  quarter ended September 30December 31, 2022  no stock was issued for Non-Employee Services .

Pursuant to ASC 505-50-30-11505-50-30-11 an issuer shall measure the fair value of the equity instruments in these transactions using the stock price and other measurement assumptions as of the earlier of the following dates, referred to as the measurement date:

i. The date at which a commitment for performance by the counterparty to earn the equity instruments is reached (a performance commitment); and
ii. The date at which the counterparty’s performance is complete.


 8 

 

G. INCOME TAXES

The Company accounts for income taxes using the liability method prescribed by ASC 740, “Income Taxes.” Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date.

The Company applied the provisions of ASC 740-10-50, “Accounting For Uncertainty In Income Taxes”, which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of September 30December 31, 2022 the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future.

The Company generated a deferred tax credit through net operating loss carry forward.  However, a valuation allowance of 100% has been established.

Interest and penalties on tax deficiencies recognized in accordance with ACS accounting standards are classified as income taxes in accordance with ASC Topic 740-10-50-19.

 7 

 

H.  BASIC EARNINGS (LOSS) PER SHARE

The Financial Accounting Standards Board (FASB) issued Accounting Standards Codification (ASC) 260, "Earnings Per Share", which specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. ASC 260 requires the presentation of basic earnings (loss) per share and diluted earnings (loss) per share. The Company has adopted the provisions of ASC 260 effective from inception.

Basic net loss per share amounts is computed by dividing the net income by the weighted average number of common shares outstanding. There were no Common Stock Equivalents as of September 30December 31, 2022.

NOTE 2RECENT ACCOUNTING PRONOUNCEMENTS 

The Company has adopted Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance in this Update supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification.

The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The Company has adopted the provisions of this ASU effective the fiscal year ended 2020. This guidance did not have a material impact on the Company’s Financial Statements.

On February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842). The ASU requires organizations that lease assets, referred to as "lessees," to recognize on the consolidated statement of financial position the rights and obligations created by those leases. The ASU also requires disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the consolidated financial statements. The ASU on leases became effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This guidance is not expected to have a material impact on the Company’s financial statements.

 9 

 

In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting. This ASU is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with the accounting for employee share-based compensation. This ASU is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods, with early adoption permitted. This guidance is not expected to have a material impact on the Company’s financial statements.

NOTE 3. GOING CONCERN

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has generated net losses of $370389,801328 during the period from June 12, 2020 (inception) through September 30December 31,2022. This condition raises substantial doubt about the Company's ability to continue as a going concern. The Company's continuation as a going concern is dependent on its ability to meet its obligations, to obtain additional financing as may be required and ultimately to attain profitability. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 8 

 

Management plans to raise additional funds by offering securities for cash. Management has yet to decide what type of offering the Company will use or how much capital the Company will raise. There is no guarantee that the Company will be able to raise any capital through any type of offerings.

NOTE 4. RELATED PARTY TRANSACTIONS..

The Company utilizes approximately 2,300500 square feet of office space at 4700 Spring Street, Suite 304, La Mesa California, 919411034 Throggs Neck Expressway, Bronx NY 10465 provided to the Company by BST Partners, Inc.Joseph G. Vaini, the Company’s sole officer and director, on a month to month basis free of charge. The property is utilized as office space. We believe that the foregoing properties are adequate to meet our current needs for office space. BST Partners, Inc.

On January 8, 2023 the Company entered into an agreement with Joanne Vaini whereby Joanne Vaini agreed to provide bookkeeping services for the Company for the period beginning January 9, 2023 and ending July 9, 2024 (“Agreement”) for total consideration consisting of $15,000. Joanne Vaini is a company controlled by SYBLEUthe spouse of Joseph G. Vaini the Company’s Chairmansole officer and CEO.director.


NOTE 5. NOTES PAYABLE

     
Bostonia Partners     140,000  
Notes Payable, as of December 31, 2022   $ 140,000  

$10,000 owed by the Company to Bostonia Partners bears simple interest at %10% and is due and payable September 20,2022.

$30,000 owed by the Company to Bostonia Partners bears simple interest at %10% and is due and payable September 30,2022.

$100,000 owed by the Company to Bostonia Partners bears simple interest at %10% and is due and payable October 5,2022.

 10 

 

NOTE 6. INVESTMENT SECURITIES

On March 11, 2021 the Company was paid 6,500 common shares of Oncology Pharma, Inc. pursuant to an agreement entered into by and between the Company and Oncology Pharma, Inc. whereby the Company granted Oncology Pharma, Inc. an exclusive worldwide right and license for the development and commercialization of certain intellectual property controlled by the Company.

On September 30December 31, 2022 the Company revalued 6,500 common shares of Oncology Pharma, Inc. at the closing price of the common shares on the OTC Pink market.

As of June 30December 31, 2022:

 9 

 

 
Schedule Of Common Shares
6,500 Common Shares of Oncology Pharma, Inc.
 
 Basis    Fair Value    Total Unrealized Losses    Net Unrealized Gain or ( Loss) during the quarter ended December 31, 2022 
$177,450   $2,200   $(175,250)  $(790)



NOTE 87STOCKHOLDERS’ EQUITY

The stockholders’ equity section of the Company contains the following class of capital stock as of September 30December 31, 2022:

Common stock, $ 0.0001 par value; 100,000,000 shares authorized: 10,418304,000492  shares issued and outstanding.

With respect to each matter submitted to a vote of stockholders of the Corporation, each holder of Common Stock shall be entitled to cast that number of votes which is equivalent to the number of shares of Common Stock owned by such holder times one (1).

On any voluntary or involuntary liquidation, dissolution or winding up of the Corporation, the holders of the Common Stock shall receive, out of assets legally available for distribution to the Company’s stockholders, a ratable share in the assets of the Corporation.

NOTE 8 . STOCK ISSUANCES AND CANCELLATIONS

On December 12, 2022 the Company issued 3,000,000 common shares to Joseph G Vaini pursuant to an agreement whereby Joseph G. Vaini agreed to serve as President, Chief Executive Officer, Secretary, Chief Financial Officer and Secretary, Treasurer and Principal Accounting Officer of the Company.

On December 12, 2022 the Company issued 3,000,000 common shares to Harry Lander pursuant to an agreement whereby Harry Lander agreed to serve as Chief Scientific Officer of the Company.

On December 13, 2022 the Company cancelled 6,113,508 common shares owned by David Koos, the Company’s previous sole officer and director, and a company controlled by David Koos. Effective December 13, 2022 David Koos resigned as a Director of the Company and also resigned from any and all other offices he had held of the Company (“Resignation”) . In connection with his Resignation Koos has returned any and all common shares directly or indirectly held by Koos to the Company for cancellation. Also in connection with his Resignation Koos and the Company have entered into an agreement ( “Separation Agreement”) whereby the Company shall pay Koos the sum of $10,000.

 

 1011 

 

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

CERTAIN FORWARD-LOOKING INFORMATION

Information provided in this Quarterly report on Form 10Q may contain forward-looking statements within the meaning of Section 21E or Securities Exchange Act of 1934 that are not historical facts and information. These statements represent the Company's expectations or beliefs, including, but not limited to, statements concerning future and operating results, statements concerning industry performance, the Company's operations, economic performance, financial conditions, margins and growth in sales of the Company's products, capital expenditures, financing needs, as well assumptions related to the forgoing. For this purpose, any statements contained in this Quarterly Report that are not statement of historical fact may be deemed to be forward-looking statements. These forward-looking statements are based on current expectations and involve various risks and uncertainties that could cause actual results and outcomes for future periods to differ materially from any forward-looking statement or views expressed herein. The Company's financial performance and the forward-looking statements contained herein are further qualified by other risks including those set forth from time to time in the documents filed by the Company with the Securities and Exchange Commission, including the Company's amended Form S-1 (Amendment No.3) dated October 13, 2020 , the Company’s Form 10-K/A for the period ended June 30, 2021and the Company’s Form 10-K for the period ended June 30, 2022 . All references to” We”, “Us”, “Company” or the “Company” refer to SYBLEU INC.

As of September 30December 31, 2022 we had Cash of $5336,878848 and as of June 30, 2022 we had Cash of $66,850.

The decrease in cash of approximately 1945% is primarily attributable to cash expended in conducting the business of the Company as well as $10,000 paid to David Koos, the former CEO of the Company, in consideration of the cancellation of 6,113,508 common shares of the Company beneficially owned by David Koos.

As of September 30December 31, 2022 we had Investment Securities of $2,990200 and as of June 30, 2022 we had Investment Securities of $9,529.

The decrease in Investment Securities of approximately 1976.91% is attributable to the revaluation as of September 30December 31, 2022 of 6,500 common shares of Oncology Pharma, Inc. at the closing price of the common shares on the OTC Pink market.

As of September 30, 2022 we had Interest Accrued but Unpaid of $16December 31, 2022 we had Prepaid Expenses of $21,951 and as of September 30, 2022 we had Prepaid Expenses of 0. Prepaid Expenses recognized as of December 31, 2022 are attributable to
(a) 3,000,000 common shares issued to Joseph G Vaini

(b) 3,000,000 common shares issued to Dr. Harry Lander.

On December 9, 2022 an agreement (“Agreement”) was entered into by and between SYBLEU INC ( the “Company”) and Joseph G. Vaini (“Vaini”) whereby Vaini has agreed to serve as President, Chief Executive Officer, Secretary, Chief Financial Officer and Secretary, Treasurer and Principal Accounting Officer of the Company subject to the authority of the Company's Board of Directors (the “BOD”). Vaini shall perform such duties commensurate with his offices and as directed the BOD.

The Term of this Agreement shall commence on December 13, 2022 and shall expire on December 13, 2023 unless sooner terminated in accordance with specified provisions contained therein.

As sole compensation for performing his duties pursuant to the Agreement Vaini received 3,000,000 of the Common Shares of the Company ( “Vaini Stock Payment”).Vaini has agreed that for a period of three years from December 9, 2022 Vaini shall not directly or indirectly, offer, issue, sell, contract to sell (including, without limitation, any short sale), grant any option for the sale of, pledge, or otherwise dispose of or transfer the Vaini stock payment.

 12 

 

On December 9, 2022 an agreement (“Agreement”) was entered into by and between SYBLEU INC ( the “Company”) and Harry Lander (“Lander”) whereby Lander has agreed to serve as Chief Scientific Officer of the Company subject to the authority of the Company's Board of Directors (the “BOD”). Lander’s duties will include:

Identifying and introducing to the Company Contract Research Organizations

Identifying and introducing to the Company potential strategic partners

Identifying and introducing to the Company potential members for the Company’s Scientific Advisory Board

Assisting the Company in patent application and prosecution.

The Term of this Agreement shall commence on December 9, 2022 and shall expire on December 8, 2025 unless sooner terminated in accordance with specified provisions contained therein.

As sole compensation for performing his duties pursuant to the Agreement Lander received 3,000,000 of the Common Shares of the Company (“Lander Stock Payment”).Lander has agreed that for a period of three years from December 9, 2022 Lander shall not directly or indirectly, offer, issue, sell, contract to sell (including, without limitation, any short sale), grant any option for the sale of, pledge, or otherwise dispose of or transfer the Lander stock payment.

As of December 31, 2022 we had Interest Accrued but Unpaid of $20,743196 consisting completely of interest accrued but yet to be paid on Notes Payable and as of June 30, 2022 we had Interest Accrued but Unpaid of $13,253 consisting completely of interest accrued but yet to be paid on Notes Payable.



The increase in Interest Accrued but Unpaid of approximately 2652% is attributable to $36,490941 of interest accrued but not paid on $140,000 in Notes payable during the quarter ended September 30, 2022.
six months ended December 31, 2022.

As of December 31, 2022 we had Expenses Incurred but Unpaid of $150 and as of June 30, 2022 we had Expenses Incurred but Unpaid of $452.
The decrease in Expenses Incurred but Unpaid of approximately 68% is primarily attributable to payment of fees owed to the Company’s Transfer Agent.

As of September 30December 31, 2022 we recognized Unearned Income of $158155,750801 and as of June 30, 2022 we recognized Unearned Income of $161,699. Unearned income recognized by the Company is completely attributable to $177, 450 in licensing fees paid to the Company during the quarter ended March 31, 2021 which are being recognized over the term of the license. The decrease in Unearned Income of approximately 19% is attributable to recognition of these fees as earned as required pursuant to Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606).

The Company recognized revenue of $2,949948 during the quarter ended September 30December 31, 2022 as well asand revenue of $2,949 for the same period ended 2021. In both periods revenue was attributable  to $177, 450 in licensing fees paid to the Company during the quarter ended March 31, 2021 which are being recognized over the term of the license.

Operating Loss of $94,721992 recognized during the quarter ended September 30December 31, 2022 was 44approximately 61% lower than the Operating Loss recognized during the same period ended 2021 which was $12,756. The decrease in Operating Loss is primarily attributable to lower General and Administrative and Consulting Expenses incurred during the period ended 2022 as well as the lack of Research and Development expenses incurred during the period ended 2022.

 11 

 

 as compared to the same period ended 2021.

Net Loss for the quarter ended September 30December 31, 2022 was $1918,750527 which is approximately 8570% lower than the Net Loss recognized by the Company during the same period ended 2021. This decrease is primarily attributable to the recognition of $11444,920 of Unrealized Loss on Investment Securities during the period ended 2021.

As of September 30005 of Unrealized Loss on Investment Securities during the period ended 2021 partially offset by $9,294 in expenses related to cancellation of common stock incurred during the quarter ended December 31, 2022.

 13 

 

The Company recognized revenue of $5,897 during the six months ended December 31, 2022 and revenue of $5,898 for the same period ended 2021. In both periods revenue was attributable to $177, 450 in licensing fees paid to the Company during the quarter ended March 31, 2021 which are being recognized over the term of the license.

Operating Loss of $14,713 recognized during the six months ended December 31, 2022 was approximately 51% lower than the Operating Loss recognized during the same period ended 2021 which was $30,089. The decrease in Operating Loss is primarily attributable to lower General and Administrative, Consulting and Research and Development expenses incurred during the period ended 2022 as compared to the same period ended 2021.

Net Loss for the six months ended December 31, 2022 was $38,277 which is approximately 80% lower than the Net Loss recognized by the Company during the same period ended 2021. This decrease is primarily attributable to the recognition of $158,925 of Unrealized Loss on Investment Securities during the period ended 2021 partially offset by $9,294 in expenses related to cancellation of common stock incurred during the quarter ended December 31, 2022.

As of December 31, 2022 we had $5336,878848 in cash on hand and current liabilities of $167171,828281 such liabilities consisting of Income Tax Payable ,Accrued Expenses, Notes Payable and interest on Promissory Notes accrued but unpaid. We feel we will not be able to satisfy our cash requirements over the next twelve months and shall be required to seek additional financing.

Management plans to raise additional funds by obtaining governmental and nongovernmental grants as well as offering securities for cash. Management has yet to decide what type of offering the Company will use or how much capital the Company will raise. There is no guarantee that the Company will be able to raise any capital through any type of offerings. Management can give no assurance that any governmental or nongovernmental grant will be obtained by the Company despite the Company’s best efforts.

As of September 30December 31, 2022 the Company was not party to any binding agreements which would commit SYBLEU to any material capital expenditures.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As a smaller reporting company, as defined by Rule 229.10(f) (1) of Regulation S-K, we are not required to provide the information required by this Item.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of David Koos,Joseph G. Vaini who is the Company’s Principal Executive Officer and Joseph G. Vaini who is the Company’s, Chief Financial Officer and Principal Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. The Company’s disclosure controls and procedures are designed to provide a reasonable level of assurance of achieving the Company’s disclosure control objectives. The Company’s Principal Executive Officer and Principal Financial Officer havehas concluded that the Company’s disclosure controls and procedures are, in fact, effective at this reasonable assurance level as of the period covered.

Changes in Internal Controls over Financial Reporting

In connection with the evaluation of the Company’s internal controls during the period commencing on JulyOctober 1, 2022 and ending on September 30December 31, 2022, David Koos and Joseph G. Vaini , who serveserves as the Company’s Principal Executive Officer and Principal Financial Officer respectively, have, has determined that there were no changes to the Company’s internal controls over financial reporting that have been materially affected, or is reasonably likely to materially effect, the Company’s internal controls over financial reporting.

 14 

 

PART II - OTHER INFORMATION 

Item 1. Legal Proceedings.

There are no material pending legal proceedings to which the Company is a party or of which any of the Company’s property is the subject.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 

There were no salesOn December 12, 2022 the Company issued 3,000,000 common shares (“Shares”) to Joseph G Vaini pursuant to an agreement whereby Joseph G. Vaini agreed to serve as President, Chief Executive Officer, Secretary, Chief Financial Officer and Secretary, Treasurer and Principal Accounting Officer of the Company.

On December 12, 2022 the Company issued 3,000,000 common shares (“Shares”) to Harry Lander pursuant to an agreement whereby Harry Lander agreed to serve as Chief Scientific Officer of the Company.

On December 13, 2022 the Company cancelled 6,113,508 common shares owned by David Koos, the Company’s previous sole officer and director, and a company controlled by David Koos. Effective December 13, 2022 David Koos resigned as a Director of the Company and also resigned from any and all other offices he had held of the Company (“Resignation”) . In connection with his Resignation Koos has returned any and all common shares directly or indirectly held by Koos to the Company for cancellation. Also in connection with his Resignation Koos and the Company have entered into an agreement ( “Separation Agreement”) whereby the Company shall pay Koos the sum of $10,000.

All Shares issued were issued pursuant to Section 4(a) (2) of equity securities during the quarter ended September 30, 2022.

the Securities Act of 1933, as amended (the “Act”). No underwriters were retained to serve as placement agents for the sale. The shares were sold directly through our management. No commission or other consideration was paid in connection with the sale of the shares. There was no advertisement or general solicitation made in connection with this Offer and Sale of Shares. A legend was placed on the certificate that evidences the Shares stating that the Shares have not been registered under the Act and setting forth or referring to the restrictions on transferability and sale of the Shares.

EXHIBITS 

Exhibit No. Description
31.1 Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes Oxley Act of 2002
31.2 Certification of Chief Financial Officer Pursuant to Section 3026 of the Sarbanes Oxley Act of 2002
32.1 Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes Oxley Act of 2002
32.2 Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes Oxley Act of 2002
3(i) Articles of Incorporation
3(ii) Bylaws
10.1 Agreement with Dr. Stephen Hake
10.2 Agreement with Dr. Jason Garber
10.21 Assignments
10.22 Stock Purchase Agreement
10.33 Assignment dated 12/2
10.38 License Agreement
10.7 Note Payable $20,000
10.8 Note Payable $30,000
10.9 Note Payable $100,000
10.10 Separation Agreement
10.11 Vaini Agreement
10.12 Lander Agreement
10.13 Joanne Vaini Agreement

 1215 

 

EXHIBITS 

 13 

 

 

SIGNATURE
SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, this Reportthe registrant has beenduly caused this report to be signed belowon its behalf by the following persons on behalf of the Registrant and in the capacities indicated on the 11th day of October 2022.

undersigned, thereunto duly authorized.

    SYBLEU INC
     
  By: /s/ Joseph G. Vaini
  Name: Joseph G. Vaini
  Title: Chairman, Chief Executive Officer
  Date:  

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, this Reportthe registrant has beenduly caused this report to be signed belowon its behalf by the following persons on behalf of the Registrant and in the capacities indicated on the 11th day of October 2022.

undersigned, thereunto duly authorized.

    SYBLEU INC
     
  By: /s/ Joseph G. Vaini
  Name: Joseph G. Vaini
  Title:  Chief Financial Officer, Director
  Date:  

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on the 11th day of October 2022.

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on the 11th day of October 2022.

 

 1416 

 

 

EXHIBIT 31.1EXHIBIT 31.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, David KoosJoseph G. Vaini, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Sybleu Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

 

Date: October 11January 17, 20222023 By: /s/  DavidJoseph RG. KoosVaini
    David R. Koos 
 
Joseph G. Vaini
 Chief Principal Executive Officer

 

EXHIBIT 31.2EXHIBIT 31.2

 

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Joseph G. Vaini, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Sybleu Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Date: October 11January 17, 20222023 By: /s/  Joseph G. Vaini
    Joseph G. Vaini
    Principal Financial Officer

 

 

 

 

EXHIBIT 32.1EXHIBIT 32.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the Quarterly report of Sybleu Inc. (the “Company”) on Form 10-Q for the quarter ended September 30December 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacities and on the dates indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

 

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and

 

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date: October 11January 17, 20222023 By: /s/  DavidJoseph RG. KoosVaini
    DavidJoseph RG. Koos Vaini
Chief Executive Officer

 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002, or other document authentications, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Sybleu Inc. and will be retained by Sybleu Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

 

EXHIBIT 32.2EXHIBIT 32.2

 

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the Quarterly report of Sybleu Inc. (the “Company”) on Form 10-Q for the quarter ended September 30December 31, 2022, 2020 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacities and on the dates indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

 

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and

 

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date: October 11January 17, 20222023 By: /s/  Joseph G. Vaini
    Joseph G. Vaini 
Principal Financial Officer

 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002, or other document authentications, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Sybleu Inc. and will be retained by Sybleu Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

 

AGREEMENT BY AND BETWEEN SYBLEU INC. INC. AND JOANNE VAINI

Agreement made on January 8, 2023 by and between Joanne Vaini (“Consultant”) and SYBLEU INC. Inc. (“Company”), a Wyoming corporation. Consultant and Company may be referred to individually as “Party” and collectively as “Parties”.

It is agreed as follows:

1. SCOPE OF SERVICES

Consultant shall assist the Company with entry and updating of financial records in Qucikbooks. The frequency and timing of such services shall be established on a mutually agreeable basis..

2. TERM

The Term of this Agreement shall commence on January 9, 2023 and shall expire on July 9,2024 The term of this Agreement may be extended by mutual agreement.

3. INDEPENDENT CONTRACTOR

The Parties are independent contractors. Nothing in this Agreement shall be deemed to constitute a partnership or joint venture between the Parties or constitute any Party to be the agent of the other Party for any purpose.

4. NON-DISCLOSURE

(a)

 All information, whether in oral, written, graphic, electronic or other form, disclosed by the Company to the Consultant shall be deemed to be “Proprietary Information.” In particular, Proprietary Information includes, without limitation, any trade secrets, confidential information, ideas, inventions or research and development information; matters of a technical nature, including technology; notes, products, know-how, engineering or other data (including test data and data files); specifications, processes, techniques, formulae or work-in-process; manufacturing, planning or marketing procedures, clinical data and regulatory strategies or information; accounting, financial or pricing procedures or information, budgets or projections, or personnel or salary structure/compensation information; information regarding suppliers, clients, customers, employees, contractors, investors or investigators of the Company, information which has been designated in writing as confidential by the Company; programs, procedures (including operating procedures), processes, methods, guidelines, policies, proposals or contracts; computer software, data bases or programming; and any other information which, if divulged to a third party, could have an adverse impact on the Company, or on any third party to which it owes a confidentiality obligation. In addition, “Proprietary Information” includes any of the foregoing relating to the past, present or future operations, organization, projects, finances, business interests, methodology or affairs of any third party to which the Company owes a duty of confidentiality including, without limitation, the mere fact that the Company is or may be working with or for any client.

(b)

The obligations of confidentiality shall not apply to any Proprietary Information that was known by the Consultant at the time of disclosure to it by such Company, or that is independently developed or discovered by the Consultant after disclosure by such Company, without the aid, application or use of any item of such Company’s Proprietary Information, as evidenced by written records; now, or subsequently becomes, through no act or failure to act on the part of the Consultant, generally known or available; is disclosed to the Consultant by a third party authorized to disclose it; or is required by law or by court or administrative order to be disclosed; provided, that the Consultant shall have first given prompt notice to such Company of such required disclosure.

(c)

Consultant shall exercise due care to prevent the unauthorized use or disclosure of the Company’s Proprietary Information, and shall not, without the Company’s prior written consent, disclose or otherwise make available, directly or indirectly, any item of the Company’s Proprietary Information to any person or entity other than those employees, independent contractors or agents of the Consultant (collectively, “Representatives”), to the extent such Representatives reasonably need to know the same in order to evaluate such Proprietary Information, to participate in the business relationship between the parties, or to make decisions or render advice in connection therewith. Consultant shall advise its Representatives who have access to the Company’s Proprietary Information of the confidential and proprietary nature thereof, and agrees that such Representatives shall be bound by terms of confidentiality and restrictions on use with respect thereto that are at least as restrictive as the terms of this Agreement.

(d)

Consultant shall exercise due care to prevent the unauthorized use or disclosure of the Company’s Proprietary Information, and shall not, without the Company’s prior written consent, disclose or otherwise make available, directly or indirectly, any item of the Company’s Proprietary Information to any person or entity other than those employees, independent contractors or agents of the Consultant (collectively, “Representatives”), to the extent such Representatives reasonably need to know the same in order to participate in any business relationship between the parties, or to make decisions or render advice in connection therewith. Consultant shall advise its Representatives who have access to the Company’s Proprietary Information of the confidential and proprietary nature thereof, and agrees that such Representatives shall be bound by terms of confidentiality and restrictions on use with respect thereto that are at least as restrictive as the terms of this Agreement.

(e)

Consultant shall use the Company’s Proprietary Information solely for the purposes of performing his duties pursuant to this Agreement and shall not make any other use of the Company’s Proprietary Information without the Company’s specific written authorization.

(f)

All Proprietary Information of the Company (including all copies thereof) shall be and at all times remain the property of such Company, and all non-oral Proprietary Information of the Company which is then in the Consultant’s possession or control shall be destroyed or returned to the Company promptly upon its request at any time, and in any event, no later than 60 days following any expiration or termination of this Agreement.

(g)

Nothing in this Agreement shall be construed, by implication or otherwise, as a grant of any right or license to trademarks, inventions, copyrights or patents, as a grant of a license to either Consultant to use any of the Company’s Proprietary Information except as expressly set forth herein.

(h)

The provisions of Section 4 of this Agreement shall survive until such time as all Confidential Information disclosed hereafter becomes publically known and made generally available through no action or inaction of Consultant.

5. CONSIDERATION

As consideration of the performance of services pursuant to this Agreement, Consultant shall receive $15,000 USD.

6. REPRESENTATIONS AND WARRANTIES OF COMPANY

(a)

Company is a corporation duly organized, validly existing and in good standing under the laws of the state its incorporation and has the requisite corporate power and authority to enter into and perform its obligations under this Agreement without the consent, approval or authorization of, or obligation to notify, any person, entity or governmental agency which consent has not been obtained.

(b)

The execution, delivery and performance of this Agreement by Company does not and shall not constitute Company’s breach of any statute or regulation or ordinance of any governmental authority, and shall not conflict with or result in a breach of or default under any of the terms, conditions, or provisions of any order, writ, injunction, decree, contract, agreement, or instrument to which the Company is a party, or by which Company is or may be bound.

7. REPRESENTATIONS AND WARRANTIES OF CONSULTANT

(a)

Consultant has the requisite power and authority to enter into and perform his obligations under this Agreement without the consent, approval or authorization of, or obligation to notify, any person, entity or governmental agency which consent has not been obtained.

(b)

The execution, delivery and performance of this Agreement by Consultant does not and shall not constitute Consultant’s breach of any statute or regulation or ordinance of any governmental authority, and shall not conflict with or result in a breach of or default under any of the terms, conditions, or provisions of any order, writ, injunction, decree, contract, agreement, or instrument to which the Consultant is a party, or by which Company is or may be bound.

8. SPECIFIC PERFORMANCE

Any breach of this Agreement may result in irreparable damage to Company for which Company will not have an adequate remedy at law. Accordingly, in addition to any other remedies and damages available, Consultant acknowledges and agrees that Company may immediately seek enforcement of this Agreement by means of specific performance or injunction, without any requirement to post a bond or other security.

9. EXECUTION

This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same Agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof.

10. ENTIRE AGREEMENT

This Agreement constitutes a final written expression of all the terms of the Agreement between the parties regarding the subject matter hereof, are a complete and exclusive statement of those terms, and supersedes all prior and contemporaneous Agreements, understandings, and representations between the parties.

11. SEVERABILITY

If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefore, and upon so agreeing, shall incorporate such substitute provision in this Agreement

12. GOVERNING LAW, VENUE, WAIVER OF JURY TRIAL

All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in New York for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or inconvenient venue for such proceeding. If either party shall commence an action or proceeding to enforce any provisions of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

COMPANY

/s/Joseph Vaini

 

CONSULTANT

/s/Joanne Vaini

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