Karbon-X Corp 8-K, filed Jul 1, 2022

Karbon-X Corp. (KARX)

8-K 2022-07-01 For: 2022-03-21

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Added on April 06, 2026

About this 8-K

Karbon-X Corp filed this 8-K on July 1, 2022, reporting on events of March 21, 2022.

Items reported

Item 1.01: Entered into a material agreement
Item 2.01: Completed an acquisition or sale of assets
Item 5.01: Change in control
Item 5.03: Charter or bylaw amendment, or fiscal year change
Item 8.01: Other events
Item 9.01: Financial statements and exhibits

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312 Doherty Drive, Quesnel, British Columbia, Canada		V2J 1B5
(Address of Principal Executive Offices)		(Zip Code)

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

	Business of the Company	4

2.	Management’s Discussion and Analysis and Results of Operations	14

3.	Financial Information	F-1

4.	Properties	19

5.	Security Ownership of Certain Beneficial Owners and Management	19

6.	Directors and Executive Officers	19

7.	Executive Compensation	21

8.	Certain Relationships and Related Transactions, and Director Independence	22

9.	Legal Proceedings	22

10.	Market Price of and Dividends on the Registrant’s Common Equity and Related Stockholder Matters	22

11.	Recent Sales of Unregistered Securities	23

12.	Description of Registrant’s Securities	23

Totally Covered	Exceptional Reduction	Doing Your Part

Permanently offset 400 kg of CO₂_/month, 4800 kg of CO_2/,year	Permanently offset 300kg of CO₂_/month, 3600KG of CO_2/ year.	Permanently offset 200kg of CO₂_/month, 2400kg of CO_{2 /}year

200 kg per year is 60 days of central heating in a home!	600kg per year is 1,460 miles/2,350km driving in a car!	360 kg per year is 13 month energy used for one light bulb!

$24.99/month	$19.99/month	$14.99/month

$249.99/year	$199.99/year	$149.99/Year

Totally Covered	Exceptional Reduction	Doing Your Part

Permanently offset 400 kg of CO₂_/month, 4800 kg of CO_2/,year	Permanently offset 300kg of CO₂_/month, 3600KG of CO_2/ year.	Permanently offset 200kg of CO₂_/month, 2400kg of CO_{2 /}year

200 kg per year is 60 days of central heating in a home!	600kg per year is 1,460 miles/2,350km driving in a car!	360 kg per year is 13 month energy used for one light bulb!

$24.99/month	$19.99/month	$14.99/month

$249.99/year	$199.99/year	$149.99/Year

	Three Months Ended February 28, 2022
Cash used in operating activities	$	143
Cash from financing activities	$	0
Cash from (used in) investing activities	$	0
Change in cash during the period	$	141
Effect of exchange rate change	$	(2	)
Cash, beginning of period	$	0
Cash, end of period	$	141

Financial Statements of Karbon-X, Inc.
Report of Independent Registered Public Accounting Firm		F-2
Balance Sheet as of February 21, 2022		F-4
Statements of Operations from Inception to February 21, 2022		F-5
Statements of Changes in Shareholders’ Equity from Inception to February 21, 2022		F-6
Statements of Cash Flows from Inception to February 21, 2022		F-7
Notes to the Financial Statements		F-8
Pro Forma Historical Financial Statements
Unaudited Pro-Forma Consolidated Statement of Financial Position as at February 28, 2022		F-11
Unaudited Pro-Forma Consolidated Statement of Loss for the Period Ended February 28, 2022		F-12

	February 21, 2022
ASSETS
Current assets
Cash and cash equivalents	$	8
Total current assets		8

Total assets	$	8

LIABILITES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Accounts payable	$	-
Total liabilities		-

Shareholders’ equity (deficit)
Common stock no par value Unlimited authorized Class B Common voting shares, no shares issued, or outstanding, as of February 21, 2022.		-
Common stock no par value Unlimited authorized Class A Common voting shares 1,000 shares issued, and outstanding, as of February 21, 2022.		8
Additional Paid-in capital		-
Accumulated deficit		-
Accumulated other comprehensive gain (loss)		-
Total shareholders’ equity (deficit)		8
Total liabilities and shareholders’ equity (deficit)	$	8

Operations	$
Total revenue		-
Cost of revenue		-
Gross profit		-

Operating expenses		-

Loss from Operations		-

Other income (expenses)		-
Federal income tax expense		-
Net loss		-

Other comprehensive loss
Foreign currency translation gain (loss)		-
Total comprehensive loss		-

Earnings Per Share
Weighted average shares outstanding		1,000
Basic and fully diluted loss per share	$	-

	Common Stock				Additional				Accumulated other
Description	Shares		Amount		Paid in Capital		Accumulated Deficit		Comprehensive gain (loss)		Total
Capital Contribution		1,000	$	8		-		-		-		8
Net Income		-		-		-		-		-		-
Balance February 28, 2022		1,000		8		-		-		-		8

Cash flows from operating activities
Net (loss) income	$	-
Changes in operating assets and liabilities:
Accounts payable		-
Cash used in operating activities		-

Cash used in investing activities		-

Cash flows from financing activities
Capital contribution		8
Cash used in financing activities		8

Effect of translation changes on cash		-

Change in cash and cash equivalents		8
Cash, beginning of period		-
Cash, end of period	$	8

Supplemental disclosures
Cash paid for interest	$	-
Cash paid for income taxes		-

	February 28, 2022
ASSETS
Current assets
Cash and cash equivalents	$	141
Sales tax receivable		-
Prepaid expenses and other current assets		-
Total current assets		141

Property and equipment		-
Capital Work in Progress		-
Total assets	$	141

LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Accounts payable	$	266
Due to related party- note payable		-
Total liabilities		266

Shareholders’ equity (deficit)
Common stock $0.001 par value, 200,000,000 shares authorized, 64,900,000 shares issued and outstanding as of February 28, 2022.		64,900
Additional Paid-in capital		(64,758	)
Accumulated deficit		(265	)
Accumulated other comprehensive gain (loss)		(2	)
Total shareholders’ equity (deficit)		(125	)
Total liabilities and shareholders’ equity (deficit)	$	141

	Nine Months Ended
	February 28, 2022
Operations
Total revenue		-
Cost of revenue		-
Gross profit		-

Operating expenses		34,781

Loss from Operations		(34,781	)

Other income (expenses)		-
Federal income tax expense		-
Net loss		(34,781	)

Other comprehensive loss
Foreign currency translation gain (loss)		(2	)
Total comprehensive loss		(34,783	)

Earnings Per Share
Weighted average shares outstanding		64,900,000
Basic and fully diluted loss per share	$	(0.00	)

Title of Class	Name of Beneficial Owner	Amount of Beneficial Ownership		Percentage of Stock

Common Stock	Chad Clovis, Chief Executive Officer, President and Director (1)	17,000,000		26.20%

Common Stock	Marita Dautel, Vice President and Director	2,000,000		3.0%
Common Stock	All officers and directors (2 persons)	19,000,00	0	29.3%

Exhibit No.		Description
10.1		Reorganization Agreement among Karbon-X Corp., Karbon-X Project and Reymund Guillermo dated as of February 21, 2022.
10.2		Employment Agreement dated February 17, 2022 between the Company and Chad Clovis
10.3		Employment Agreement dated February 17, 2022 between the Company and Marita Dautel
10.4		Commercial Lease Agreement dated May 6, 2022 between the Company and 459063 Ltd.
104		Cover Page Interactive Data File (embedded within the Inline XBRL Document).

	Karbon-X Corp.
	(Registrant)

Dated: June 30, 2022	By:	/s/ Chad Clovis
	Chief Executive Officer

	(a)	The Board of Directors of Cocoluv shall unanimously approve and deliver to Cutler Law Group (the "Escrow Agent") in escrow (the "Escrow"), pursuant to the terms of the Escrow Agreement attached hereto as Exhibit A, notarized board and shareholder resolutions (as required) with respect to (a) approving all of the transactions set forth herein; (b) directing the size of the Board of Directors to be three to five members; and (c) electing two designees of Acquiror to the board of directors of Cocoluv (the “Resolutions”).

	(b)	The Cocoluv Shareholder shall deliver to Escrow the Cocoluv Shares.

	(c)	Cocoluv shall deliver to Escrow notarized resignations as officers and directors of all prior officers and directors.

	(d)	Cocoluv shall use its reasonable best efforts to prepare and complete the documents necessary to be filed with local, state and federal authorities to consummate the transactions contemplated hereby.

	(a)	the representations and warranties of Cocoluv as set forth in Section 6 herein shall remain true and correct as of the Closing Date and no material adverse change to the financial condition of Cocoluv shall have occurred;

	(b)	the representations and warranties of Acquiror and Acquiror Shareholders as set forth in Section 7 herein shall remain true and correct as of the Closing Date and no material adverse change in the business or financial condition of Acquiror shall have occurred;

	(c)	all the documents necessary to be filed with local, state and federal authorities are prepared, and to the extent applicable, filed.

	(d)	Acquiror shall have provided the Acquiror Board Resolutions and any other documents or approval required to complete the transactions contemplated hereby and in the Acquiror Board Resolutions;

	(e)	Acquiror shall retain its good standing as a publicly traded company under the Securities Exchange Act of 1934, trading on OTC Pink Market maintained by OTC Markets Group under the symbol "CMOV";

	(a)	At the Closing, Cutler Law Group shall release from escrow to Acquiror the Cocoluv Board and Shareholder Resolutions and the Resignations from Cocoluv.

	(b)	At the Closing, Cutler Law Group shall release the Escrowed Cocoluv Shares to Acquiror Shareholders or assigns.

	(c)	At the Closing, Cutler Law Group shall release the Escrowed Acquiror Shares to Cocoluv.

	5.	Timing of Closing. The closing of the transactions contemplated by this Agreement ((the " Closing") shall occur upon the satisfaction of the conditions set forth in this Agreement and upon instructions from the parties hereto to the Escrow Agent. The closing (“Closing”) date shall occur on or before February 28, 2022 in the event such conditions are met, which would be extended to not later than March 31, 2022 upon agreement of the parties. Unless otherwise advised in writing by the parties, in the event the Closing does not occur on or before March 31, 2022, (i) the Escrow Agent shall return the Escrowed Cocoluv Shares, the Resignations, and the Cocoluv Board Resolutions to Cocoluv; and (ii) the Escrow Agent shall return the Acquiror Escrowed Shares to Acquiror.

	6.	Representations of Cocoluv. Cocoluv represents and warrants as follows:

	(a)	Ownership of Shares. As of the Closing Date, the Acquiror Shareholders or assigns will become the owner of the Escrowed Cocoluv Shares. The Escrowed Cocoluv Shares will be free from claims, liens or other encumbrances, except as provided under applicable federal and state securities laws;

	(b)	Fully paid and Nonassessable. The Escrowed Cocoluv Shares constitute duly and validly issued securities of Cocoluv, and are fully paid and nonassessable, and Cocoluv further represents that it has the power and the authority to execute this Agreement and to perform the obligations contemplated hereby;

	(c)	Organization of Cocoluv; Authorization. Cocoluv is a corporation duly organized, validly existing and in good standing under the laws of Nevada with full corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. The execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate action of Cocoluv and this Agreement constitutes a valid and binding obligation of Cocoluv enforceable against it in accordance with its terms. Cocoluv has no subsidiaries.

	(d)	Capitalization. The authorized capital stock of Cocoluv consists of 200,000,000 shares of common stock, par value $0.001 per share, and no shares of Preferred Stock. As of the Closing Date, Cocoluv will have a total of no more than 64,900,000 shares of common stock issued and outstanding. No other securities are issued or outstanding. As of the Closing Date, all of the issued and outstanding shares of common stock of Cocoluv are validly issued, fully paid and non-assessable. There is not and as of the Closing Date, there will not be outstanding any warrants, options or other agreements on the part of Cocoluv obligating Cocoluv to issue any additional shares of common or preferred stock or any of its securities of any kind. Cocoluv will not issue any shares of capital stock from the date of this Agreement through the Closing Date. The Common Stock of Cocoluv is presently trading on Pink Market maintained by OTC Markets Group under the symbol "CCLV". The Common Stock of Cocoluv is not subject to any restriction on deposit, transfer or any other services pursuant to a “chill” by the Depository Trust Company.

	(e)	Ownership of Cocoluv Shares. The delivery by Escrow at Closing of certificates or other evidence of ownership provided herein for the Escrowed Cocoluv Shares will result in the immediate acquisition of record and beneficial ownership of the Escrowed Cocoluv Shares, free and clear of all encumbrances.

	(e)	No Conflict as to Cocoluv. Neither the execution and delivery of this Agreement nor the consummation of the exchange of the Cocoluv Shares will (a) violate any provision of the certificate of incorporation or by-laws (or other governing instrument) of Cocoluv or (b) violate, or be in conflict with, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the performance required by, or excuse performance by any Person of any of its obligations under, or cause the acceleration of the maturity of any debt or obligation pursuant to, or result in the creation or imposition of any encumbrance upon any property or assets of Cocoluv under, any material agreement or commitment to which Cocoluv is a party or by which its property or assets is bound, or to which any of the property or assets of Cocoluv is subject, or (c) violate any statute or law or any judgment, decree, order, regulation or rule of Governmental Body applicable to Cocoluv except, in the case of violations, conflicts, defaults, terminations, accelerations or encumbrances described in clause (b) of this Section for such matters which are not likely to have a material adverse effect on the business or financial condition of Cocoluv. The term "Governmental Body" shall mean any government, municipality or political subdivision thereof, whether federal, state, local or foreign, or any governmental or quasi-governmental agency, authority, board, bureau, commission, department, instrumentality or public body, or any court, arbitrator, administrative tribunal or public utility.

	(g)	Consents and Approvals of Governmental Authorities. No consent, approval or authorization of, or declaration, filing or registration with, any Governmental Body or quasi-governmental body is required to be made or obtained by Cocoluv in connection with the execution, delivery and performance of this Agreement by Cocoluv or the consummation of the sale of the Escrowed Cocoluv Securities.

	(h)	Other Consents. No consent of any Person is required to be obtained by Cocoluv to the execution, delivery and performance of this Agreement or the consummation of the sale of the Escrowed Cocoluv Securities, including, but not limited to, consents from parties to leases or other agreements or commitments.

	(i)	Litigation. There is no action, suit, inquiry, proceeding or investigation by or before any Governmental body pending or threatened in writing against or involving Cocoluv, any of its officers or directors, or which questions or challenges the validity of this Agreement. There are no pending or threatened disputes with any prior officer or director of Cocoluv. Cocoluv is not subject to any judgment, order or decree that is likely to have a material adverse effect on the business or financial condition of Cocoluv.

	(j)	Absence of Certain Changes. From December 31, 2019, to the date hereof, Cocoluv has not:

	1.	suffered damage or destruction of any of its properties or assets (whether or not covered by insurance) which is materially adverse to the financial condition of Cocoluv, or made any disposition of any of its material properties or assets other than in the ordinary course of business;

	2.	made any change or amendment in its certificate of incorporation or by-laws, or other governing instruments, except as contemplated hereby or required to effect the transactions set forth herein;

	3.	organized any new subsidiary or acquired any securities of any Person or any equity or ownership interest in any business;

	4.	borrowed any funds or incurred, or assumed or become subject to, whether directly or by way of guarantee or otherwise, any obligation or liability with respect to any such indebtedness for borrowed money;

	5.	paid, discharged or satisfied any material claim, liability or obligation (absolute, accrued, contingent or otherwise);

	6.	prepaid any material obligation having a maturity of more than 90 days from the date such obligation was issued or incurred;

	7.	cancelled any material debts or waived any material claims or rights;

	8.	written off or been required to write off any notes or accounts receivable;

	9.	with the exception of the liability of Cocoluv’s transfer agent (which does not exceed $3,000), incurred any liability (in excess of $3,000.00) or other obligation.

	1.	Contract or agreement (except for this Agreement) involving any liability, obligation or covenant on the part of Cocoluv except with respect to its transfer agent.

	2.	Lease of personal property;

	3.	Employee bonus, stock option or stock purchase, performance unit, profit-sharing, pension, savings, retirement, health, deferred or incentive compensation, insurance or other material employee benefit plan (as defined in Section 2(3) of ERISA) or program for any of the employees, former employees or retired employees of Cocoluv;

	4.	Commitment, contract or agreement that is currently expected by the management of Cocoluv to result in any material loss upon completion or performance thereof;

	5.	Contract, agreement or commitment with any officer, employee, agent, consultant, advisor, salesman, sales representative, value added reseller, distributor or dealer; or

	6.	Employment agreement or other similar agreement.

	(l)	Compliance with Law. The operations of Cocoluv have been conducted in accordance with all applicable laws and regulations of all Governmental Bodies having jurisdiction over them, except for violations thereof which are not likely to have a material adverse effect on the business or financial condition of Cocoluv. Cocoluv has not received any notification of any asserted present or past failure by it to comply with any such applicable laws or regulations. Cocoluv has all material licenses, permits, orders or approvals from the Governmental Bodies required for the conduct of its business, issued or in process, and is not in material violation of any such licenses, permits, orders and approvals. All such licenses, permits, orders and approvals are in full force and effect, and no suspension or cancellation of any thereof has been threatened.

	(m)	Tax Matters.

	2.	Cocoluv represents that prior to Closing, all consolidated or combined Tax Returns (except those described in subparagraph (1) above) required to be filed by any person through December 31, 2020 that are required or permitted to include the income, or reflect the activities, operations and transactions, of Cocoluv for any taxable period shall have been timely filed, and the income, activities, operations and transactions of Cocoluv shall have been properly included and reflected thereon. Cocoluv shall prepare and file, or cause to be prepared and filed, all such consolidated or combined Tax Returns that are required or permitted to include the income, or reflect the activities, operations and transactions, of Cocoluv, with respect to any taxable year or the portion thereof ending on or prior to the Closing Date, including, without limitation, Cocoluv’s consolidated federal income tax return for such taxable years. All Tax Returns filed pursuant to this subparagraph (2) after the date hereof shall, in each case, to the extent that such Tax Returns specifically relate to Cocoluv and do not generally relate to matters affecting other members of Cocoluv’s consolidated group, be prepared and filed in a manner consistent in all material respects (including elections and accounting methods and conventions) with the Tax Return most recently filed in the relevant jurisdictions prior to the date hereof, except as otherwise required by law or regulation. Cocoluv has paid or will pay all Taxes that may now or hereafter be due with respect to the taxable periods covered by such consolidated or combined Tax Returns.

	3.	There is no (nor has there been any request for an) agreement, waiver or consent providing for an extension of time with respect to the assessment of any Taxes attributable to Cocoluv, or its assets or operations and no power of attorney granted by Cocoluv with respect to any Tax matter is currently in force.

	4.	There is no action, suit, proceeding, investigation, audit, claim, demand, deficiency or additional assessment in progress, pending or threatened against or with respect to any Tax attributable to Cocoluv or its assets or operations.

	5.	All amounts required to be withheld as of the Closing Date for Taxes or otherwise have been withheld and paid when due to the appropriate agency or authority.

	1.	At all times prior to the date hereof, Cocoluv has complied in all material respects with applicable environmental laws, orders, regulations, rules and ordinances, the violation of which would have a material adverse effect on the business or financial condition of Cocoluv, or which would require a payment by Cocoluv in excess of $2,000 in the aggregate, and which have been duly adopted, imposed or promulgated by any legislative, executive, administrative or judicial body or officer of any Governmental Body.

	2.	The environmental licenses, permits and authorizations that are material to the operations of Cocoluv and its Subsidiary, taken as a whole, are in full force and effect.

	(p)	Disclosure. Neither this Agreement, the Schedules hereto nor any of the Transaction Documents contain any untrue statement of a material fact with respect to Cocoluv or the Cocoluv Shareholder, or omit to state a material fact necessary in order to make the statements contained herein or therein with respect to Cocoluv, or the Cocoluv Shareholder, not misleading. Neither Cocoluv nor the Cocoluv Shareholder has any knowledge of any events, transactions or other facts which, either individually or in the aggregate, may give rise to circumstances or conditions which would have a material adverse effect on the general affairs or the condition of business of Cocoluv. “Transaction Documents” shall mean, collectively, this Agreement, and each of the other agreements and instruments to be executed and delivered by all or some of the parties hereto in connection with the consummation of the transactions contemplated hereby.

	(q)	Financial Statements. The financial statements of Cocoluv as filed with the US Securities and Exchange Commission, were prepared in accordance with generally accepted accounting principles, consistently applied, and represent fairly the financial condition, assets and revenues of Acquiror as of the date thereof.

	(a)	Ownership of Shares. As of the Closing Date, Cocoluv will become the owner of the Escrowed Acquiror Shares. The Escrowed Acquiror Shares will be free from claims, liens or other encumbrances, except as provided under applicable federal and state securities laws;

	(b)	Fully paid and Nonassessable. The Escrowed Acquiror Shares constitute duly and validly issued securities of Acquiror, and are fully paid and nonassessable, and Acquiror further represents that it has the power and the authority to execute this Agreement and to perform the obligations contemplated hereby;

	(c)	Organization of Acquiror; Authorization. Acquiror is a corporation duly organized, validly existing and in good standing under the laws of British Columbia with full corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. The execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate action of Acquiror and this Agreement constitutes a valid and binding obligation of Acquiror enforceable against it in accordance with its terms. Acquiror has no subsidiaries.

	(d)	Capitalization. The authorized capital stock of Acquiror consists of no maximum Class A Common Voting Shares and no maximum Class B Common Non-Voting Shares. As of the Closing Date, Acquiror will have a total of 1,000 Class A Common Voting shares issued and outstanding. No other securities are issued or outstanding. As of the Closing Date, all of the issued and outstanding shares of common stock of Acquiror are validly issued, fully paid and non-assessable. There is not and as of the Closing Date, there will not be outstanding any warrants, options or other agreements on the part of Acquiror obligating Acquiror to issue any additional shares of common or preferred stock or any of its securities of any kind. Acquiror will not issue any shares of capital stock from the date of this Agreement through the Closing Date.

	(e)	Ownership of Acquiror Shares. The delivery by Escrow at Closing of certificates or other evidence of ownership provided herein for the Escrowed Acquiror Shares will result in the immediate acquisition of record and beneficial ownership of the Escrowed Acquiror Shares, free and clear of all encumbrances.

	(e)	No Conflict as to Acquiror. Neither the execution and delivery of this Agreement nor the consummation of the exchange of the Acquiror Shares will (a) violate any provision of the certificate of incorporation or by-laws (or other governing instrument) of Acquiror or (b) violate, or be in conflict with, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the performance required by, or excuse performance by any Person of any of its obligations under, or cause the acceleration of the maturity of any debt or obligation pursuant to, or result in the creation or imposition of any encumbrance upon any property or assets of Acquiror under, any material agreement or commitment to which Acquiror is a party or by which its property or assets is bound, or to which any of the property or assets of Acquiror is subject, or (c) violate any statute or law or any judgment, decree, order, regulation or rule of Governmental Body applicable to Acquiror except, in the case of violations, conflicts, defaults, terminations, accelerations or encumbrances described in clause (b) of this Section for such matters which are not likely to have a material adverse effect on the business or financial condition of Acquiror. The term "Governmental Body" shall mean any government, municipality or political subdivision thereof, whether federal, state, local or foreign, or any governmental or quasi-governmental agency, authority, board, bureau, commission, department, instrumentality or public body, or any court, arbitrator, administrative tribunal or public utility.

	(g)	Consents and Approvals of Governmental Authorities. No consent, approval or authorization of, or declaration, filing or registration with, any Governmental Body or quasi-governmental body is required to be made or obtained by Acquiror in connection with the execution, delivery and performance of this Agreement by Acquiror or the consummation of the sale of the Escrowed Acquiror Securities.

	(h)	Other Consents. No consent of any Person is required to be obtained by Acquiror to the execution, delivery and performance of this Agreement or the consummation of the sale of the Escrowed Acquiror Securities, including, but not limited to, consents from parties to leases or other agreements or commitments.

	(i)	Litigation. There is no action, suit, inquiry, proceeding or investigation by or before any Governmental body pending or threatened in writing against or involving Acquiror, any of its officers or directors, or which questions or challenges the validity of this Agreement. There are no pending or threatened disputes with any prior officer or director of Acquiror. Acquiror is not subject to any judgment, order or decree that is likely to have a material adverse effect on the business or financial condition of Acquiror.

	1.	suffered damage or destruction of any of its properties or assets (whether or not covered by insurance) which is materially adverse to the financial condition of Acquiror, or made any disposition of any of its material properties or assets other than in the ordinary course of business;

	2.	except for an amendment to its Certificate of Incorporation to change its name to Acquiror Corp. and to increase the authorized capital stock of the corporation, made any change or amendment in its certificate of incorporation or by-laws, or other governing instruments, except as contemplated hereby or required to effect the transactions set forth herein;

	3.	organized any new subsidiary or acquired any securities of any Person or any equity or ownership interest in any business;

	4.	borrowed any funds or incurred, or assumed or become subject to, whether directly or by way of guarantee or otherwise, any obligation or liability with respect to any such indebtedness for borrowed money;

	5.	paid, discharged or satisfied any material claim, liability or obligation (absolute, accrued, contingent or otherwise);

	6.	prepaid any material obligation having a maturity of more than 90 days from the date such obligation was issued or incurred;

	7.	cancelled any material debts or waived any material claims or rights;

	8.	written off or been required to write off any notes or accounts receivable;

	9.	incurred any liability (in excess of $3,000.00) or other obligation.

	2.	Acquiror represents that prior to Closing, all consolidated or combined Tax Returns (except those described in subparagraph (1) above) required to be filed by any person through December 31, 2020 that are required or permitted to include the income, or reflect the activities, operations and transactions, of Acquiror for any taxable period shall have been timely filed, and the income, activities, operations and transactions of Acquiror shall have been properly included and reflected thereon. Acquiror shall prepare and file, or cause to be prepared and filed, all such consolidated or combined Tax Returns that are required or permitted to include the income, or reflect the activities, operations and transactions, of Acquiror, with respect to any taxable year or the portion thereof ending on or prior to the Closing Date, including, without limitation, Acquiror’s consolidated federal income tax return for such taxable years. All Tax Returns filed pursuant to this subparagraph (2) after the date hereof shall, in each case, to the extent that such Tax Returns specifically relate to Acquiror and do not generally relate to matters affecting other members of Acquiror’s consolidated group, be prepared and filed in a manner consistent in all material respects (including elections and accounting methods and conventions) with the Tax Return most recently filed in the relevant jurisdictions prior to the date hereof, except as otherwise required by law or regulation. Acquiror has paid or will pay all Taxes that may now or hereafter be due with respect to the taxable periods covered by such consolidated or combined Tax Returns.

	3.	There is no (nor has there been any request for an) agreement, waiver or consent providing for an extension of time with respect to the assessment of any Taxes attributable to Acquiror, or its assets or operations and no power of attorney granted by Acquiror with respect to any Tax matter is currently in force.

	4.	There is no action, suit, proceeding, investigation, audit, claim, demand, deficiency or additional assessment in progress, pending or threatened against or with respect to any Tax attributable to Acquiror or its assets or operations.

	5.	All amounts required to be withheld as of the Closing Date for Taxes or otherwise have been withheld and paid when due to the appropriate agency or authority.

	(n)	Borrowing and Guarantees. Acquiror (a) does not have any indebtedness for borrowed money, (b) is not lending or committed to lend any money (except for advances to employees in the ordinary course of business), and (c) is not guarantors or sureties with respect to the obligations of any Person.

	(o)	Environmental Matters.