10-Q
SPECIFICITY, INC. (SPTY)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
| ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|
For the quarterly periodended March 31, 2025
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|
Commission file number 333-257323
| SPECIFICITY, INC. | |
|---|---|
| (Exact name<br> of registrant as specified in its charter) | |
| Nevada | 85-4017786 |
| (State or other jurisdiction<br> of | (I.R.S. Employer |
| incorporation or organization) | Identification No.) |
| 8429 Lorraine Rd., Suite 377, Lakewood Ranch, FL | 34202 |
| (Address of principal executive<br> offices) | (Zip Code) |
| (813) 364-4744 | |
| (Registrant’s<br> telephone number, including area code) |
N/A
(Former name, 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 | Name of each exchange on which registered |
|---|---|---|
| Common<br> Stock | SPTY | OTCQB |
Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 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, if any, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
| 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 Exchange Act). Yes ☐ No ☒
Indicate the number of shares outstanding of each
of the issuer’s classes of common stock, as of the latest practicable date: [13,612,841] shares of common stock as of June 30, 2025.
SPECIFICITY, INC
TABLE OF CONTENTS
(UNAUDITED)
| Page | ||
|---|---|---|
| PART I - FINANCIAL INFORMATION | ||
| Item 1. | Financial Statements | F-1 |
| Item 2. | Management’s Discussion and<br> Analysis of Financial Condition and Results of Operations | 1 |
| Item 3. | Quantitative and Qualitative Disclosures<br> About Market Risk | 3 |
| Item 4. | Controls and Procedures | 3 |
| PART II - OTHER INFORMATION | ||
| Item 1. | Legal Proceedings | 4 |
| Item 1A. | Risk Factors | 4 |
| Item 2. | Unregistered Sales of Equity Securities<br> and Use of Proceeds | 4 |
| Item 3. | Defaults Upon Senior Securities | 4 |
| Item 4. | Mine Safety Disclosures | 4 |
| Item 5. | Other Information | 4 |
| Item 6. | Exhibits | 4 |
| Signatures | 5 |
SPECIFICTY, INC.
INDEX TO FINANCIAL STATEMENTS
(UNAUDITED)
| Pages | |
|---|---|
| Balance Sheets as of March 31, 2025<br> and December 31, 2024 | F-2 |
| Statements of Operations for the three<br> month periods ended March 31, 2025 and 2024 | F-3 |
| Statement of Stockholders' Deficit<br> for the three month periods ended March 31, 2025 and 2024 | F-4 |
| Statement of Cash Flows for the three<br> month periods ended March 31, 2025 and 2024 | F-5 |
| Notes to the Financial Statements | F-6 |
SPECIFICITY, INC
BALANCE SHEETS
(EXPRESSED IN U.S. DOLLARS)
| DECEMBER 31, | |||||
|---|---|---|---|---|---|
| 2024 | |||||
| ASSETS | |||||
| CURRENT ASSETS | |||||
| Cash and cash equivalents | - | $ | 3,413 | ||
| Prepaid and other current assets | 15,340 | 3,840 | |||
| Total current assets | 15,340 | 7,253 | |||
| NONCURRENT ASSETS | |||||
| Property and equipment, net | 770 | 1,047 | |||
| Intangibles, net | 1,550,621 | 1,550,996 | |||
| TOTAL ASSETS | 1,566,731 | $ | 1,559,296 | ||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | |||||
| CURRENT LIABILITIES | |||||
| Working capital funding loans | 188,396 | $ | 165,896 | ||
| Accounts payable and accrued expenses | 230,136 | 173,941 | |||
| Accrued payroll, taxes and penalties | 254,020 | 233,898 | |||
| Accrued interest payable - related party | 112,500 | 100,000 | |||
| Convertible note payable, net of discount | 209,671 | 209,671 | |||
| Related party advances | 271,214 | 295,669 | |||
| Total current liabilities | 1,265,937 | 1,179,075 | |||
| NON-CURRENT LIABILITIES | |||||
| Related party notes payable (Pickpocket) | 1,000,000 | 1,000,000 | |||
| Total non-current liabilities | 1,000,000 | 1,000,000 | |||
| TOTAL LIABILITIES | 2,265,937 | 2,179,075 | |||
| COMMITMENTS AND CONTINGENCIES (Note 12) | |||||
| STOCKHOLDERS' DEFICIT | |||||
| Preferred stock, Series A, 0.001 par value; 1,000,000 shares<br> authorized; shares issued and outstanding were 1,000,000, respectively | 1,000 | 1,000 | |||
| Preferred stock, Series B, 0.001 par value; 560,000 shares<br> authorized; shares issued and outstanding were 560,000, respectively | 450,260 | 450,260 | |||
| Common stock, 0.001 par value; 50,000,000 shares authorized<br> issued and outstanding were 13,588,714 and 13,539,544, respectively | 13,589 | 13,539 | |||
| Stock Subscription | - | (32,720 | ) | ||
| Additional paid-in capital | 7,058,053 | 7,030,034 | |||
| Accumulated deficit | (8,222,108 | ) | (8,081,892 | ) | |
| Total stockholders’ deficit | (699,206 | ) | (619,779 | ) | |
| TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | 1,566,731 | $ | 1,559,296 |
All values are in US Dollars.
See accompanying notes to the financial statements.
| F-2 |
| --- |
SPECIFICITY, INC
STATEMENT OF OPERATIONS
(EXPRESSED IN U.S. DOLLARS)
| THREE MONTHS END | ||||||
|---|---|---|---|---|---|---|
| MARCH 31, | ||||||
| 2025 | 2024 | |||||
| (UNAUDITED) | ||||||
| Revenues, net | $ | 298,050 | $ | 398,861 | ||
| Cost of services | 154,776 | 114,659 | ||||
| Gross profit | 143,274 | 284,202 | ||||
| Operating expenses: | ||||||
| Sales and marketing | 56,731 | 26,577 | ||||
| Capital raise promotion expense | 3,890 | 13,329 | ||||
| General and administrative expenses | 204,149 | 203,595 | ||||
| Share-based compensation expense | 5,568 | - | ||||
| Depreciation and amortization | 652 | 5,120 | ||||
| Total operating expenses | 270,990 | 248,621 | ||||
| Loss from operations | (127,716 | ) | 35,581 | |||
| Other expense: | ||||||
| Interest expense | - | (18,910 | ) | |||
| Interest expense - related party | (12,500 | ) | (12,500 | ) | ||
| Loss on extinguishment of debt | - | (11,409 | ) | |||
| Loss on termination of operating lease | - | (29,242 | ) | |||
| Total other expense | (12,500 | ) | (72,061 | ) | ||
| Loss before provision for income taxes | (140,216 | ) | (36,480 | ) | ||
| Provision for income taxes | - | - | ||||
| Net loss | $ | (140,216 | ) | $ | (36,480 | ) |
| Basic and diluted loss per share | $ | (0.01 | ) | $ | (0.00 | ) |
| Basic and diluted weighted average shares outstanding | 13,553,903 | 11,294,078 |
See accompanying notes to the financial statements.
| F-3 |
| --- |
SPECIFICITY, INC
STATEMENT OF STOCKHOLDERS’DEFICIT
(EXPRESSED IN U.S. DOLLARS)
| Additional | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Preferred Stock, Series A | Preferred Stock, Series B | Common Stock | Paid-In | Subscription | Accumulated | ||||||||||||||||||
| (Three Months Ended March 31, 2024) | Issued | Amount | Issued | Amount | Issued | Amount | Capital | Receivable | Deficit | Total | |||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Balances, December 31, 2023 | 1,000,000 | $ | 1,000 | 560,000 | $ | 450,260 | 11,216,438 | $ | 11,216 | $ | 5,116,403 | $ | - | $ | (7,466,631 | ) | $ | (1,887,752 | ) | ||||
| Common stock issued in partial convertible note conversion | - | - | - | - | 100,000 | 100 | 49,900 | - | - | 50,000 | |||||||||||||
| Common stock issued in exchange for services rendered | - | - | - | - | 22,571 | 23 | 22,478 | - | 22,501 | ||||||||||||||
| Net loss | - | - | - | - | - | - | - | - | (36,480 | ) | (36,480 | ) | |||||||||||
| Balances, March 31, 2024 | 1,000,000 | $ | 1,000 | 560,000 | $ | 450,260 | 11,339,009 | $ | 11,339 | $ | 5,188,781 | $ | - | $ | (7,503,111 | ) | $ | (1,851,731 | ) | ||||
| Additional | |||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Preferred Stock, Series A | Preferred Stock, Series B | Common Stock | Paid-In | Subscription | Accumulated | ||||||||||||||||||
| (Three Months Ended March 31, 2025) | Issued | Amount | Issued | Amount | Issued | Amount | Capital | Receivable | Deficit | Total | |||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Balances, December 31, 2024 | 1,000,000 | $ | 1,000 | 560,000 | $ | 450,260 | 13,539,544 | $ | 13,539 | $ | 7,030,034 | $ | (32,720 | ) | $ | (8,081,892 | ) | $ | (619,779 | ) | |||
| Common stock issued in connection with 506 offering | - | - | - | - | - | - | - | 32,720 | - | 32,720 | |||||||||||||
| Common stock issued in exchange for services rendered | - | - | - | - | 38,670 | 39 | 22,461 | - | - | 22,500 | |||||||||||||
| Common stock issued as compensation to employee | - | - | - | - | 10,500 | 11 | 5,558 | - | - | 5,569 | |||||||||||||
| Net loss | - | - | - | - | - | - | - | - | (140,216 | ) | (140,216 | ) | |||||||||||
| Balances, March 31, 2025 | 1,000,000 | $ | 1,000 | 560,000 | $ | 450,260 | 13,588,714 | $ | 13,589 | $ | 7,058,053 | $ | - | $ | (8,222,108 | ) | $ | (699,206 | ) |
See accompanying notes to the financial statements.
| F-4 |
| --- |
SPECIFICITY, INC
STATEMENTS OF CASH FLOWS
(EXPRESSED IN U.S. DOLLARS)
| THREE MONTHS END | ||||||
|---|---|---|---|---|---|---|
| MARCH 31, | ||||||
| 2025 | 2024 | |||||
| (UNAUDITED) | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
| Net loss | $ | (140,216 | ) | $ | (36,480 | ) |
| Adjustments to reconcile net income to net cash used in operating activities: | ||||||
| Depreciation expense | 277 | 1,248 | ||||
| Amortization of intangibles | 375 | 3,872 | ||||
| Loss on extinguishment of debt | (6,875 | ) | 11,409 | |||
| Loss on termination of operating lease | - | 29,242 | ||||
| Changes in operating liabilities: | ||||||
| Accounts receivable | - | 4,000 | ||||
| Prepaid expenses and other current assets | (11,500 | ) | (4,711 | ) | ||
| Accounts payable and accrued expenses | 131,219 | 34,101 | ||||
| Accrued liabilities | 20,121 | (54,414 | ) | |||
| Accrued interest payable | 6,876 | 18,509 | ||||
| Deferred revenue | - | (53,000 | ) | |||
| Accrued interest payable - related party | 12,500 | 12,500 | ||||
| Net cash provided by (used in) operating activities | 12,777 | (33,724 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
| Proceeds from working capital funding loans | 16,900 | 38,125 | ||||
| Repayments of working capital funding loans | (41,355 | ) | (52,143 | ) | ||
| Advances from related party | (24,455 | ) | - | |||
| Proceeds from sale of common stock (private placement) | 32,720 | - | ||||
| Net cash used in financing activities | (16,190 | ) | (14,018 | ) | ||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | (3,413 | ) | (47,742 | ) | ||
| CASH AND CASH EQUIVALENTS, beginning of period | 3,413 | 49,149 | ||||
| CASH AND CASH EQUIVALENTS, end of period | $ | - | $ | 1,407 | ||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||
| Cash paid for: | ||||||
| Interest | $ | - | $ | - | ||
| Income taxes | $ | - | $ | - | ||
| NON-CASH FINANCING ACTIVITIES: | ||||||
| Common stock issued in exchange for services rendered | $ | 22,501 | $ | 22,501 | ||
| Common stock issued in partial convertible note conversion | $ | - | $ | 50,000 | ||
| Common stock issued to employees as compensation | $ | 5,569 | $ | - |
See accompanying notes to the financial statements.
| F-5 |
| --- |
SPECIFICITY, INC
NOTES TO FINANCIAL STATEMENTS
(EXPRESSED IN U.S. DOLLARS)
(UNAUDITED)
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
Specificity, Inc. (hereinafter referred to as the “Company”) was incorporated in the State of Nevada on November 25, 2020 (“Inception”). The Company’s principal headquarters is located at 8429 Lorraine Rd., Suite 377, Lakewood Ranch, FL 34202.
The Company is a full service digital marketing firm that delivers cutting-edge marketing solutions to identify and market in real-time to potential customers who are actively in the buying cycle. The Company’s digital marketing solutions focus on Business to Business (“B2B”) and Business to Consumer (“B2C”) consumer markets and give small and medium sized businesses a fair chance to capture online traffic. The Company’s underlying technology solution utilizes BiToS and Mobile Advertising Identifiers (MAIDs) to build audiences, effectively eliminating bot traffic and ad waste and produces real-time messaging opportunities to reach target audiences more efficiently than broad based market messaging platforms. The Company also implements intuitive ad sequencing, audience ID technology, Artificial Intelligence (“AI”) integration, saturation modeling, conversion funneling, Customer Relationship Management (“CRM”) integration, traffic resolution, and comprehensive analytics reporting.
The Company’s digital marketing capabilities were acquired through organic development in-house and through its efforts as a tech incubator and early adopter of innovative marketing tools. The Company principally generates revenue from its primary digital marketing solution; however, it has three other digital marketing solutions for which development is in varying stages of completion and/or waiting to be deployed to the marketplace. Refer to Note 3 – Revenue from Contracts with Customers for additional discussion about our digital marketing solution offerings.
NOTE 2 – GOING CONCERN
The Company is a development stage corporation. The Company has performed an annual assessment of its ability to continue as a going concern as required under Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements – Going Concern (“ASU No. 2014-15”) and concluded that the ability of the Company to continue as a going concern is dependent upon the Company’s ability to increase revenues and raise additional funds to implement its full business plan.
The Company’s unaudited financial statements
have been prepared assuming that it will continue as a going concern, which contemplates continuity of operations and liquidation of liabilities in the normal course of business. As reflected in the financial statements, the Company has $1,566,731 in assets, and an accumulated deficit and working capital deficit of $8,222,108 and $1,250,597, respectively, as of March 31, 2025, and incurred a net loss and cash provided by operations of $140,216 and $12,777, respectively, for the three month period ended March 31, 2025. These circumstances raise substantial doubt about the Company’s ability to continue as a going concern for a period of 12 months from the date of this report. Although the Company has generated revenue from contracts with customers since its inception, the Company has reported a cumulative net loss due to costs associated with sale growth initiatives and capital raises.
The Company’s anticipates it will be compliant
with its periodic financial reporting requirements with the filing of its March 31, 2025 Report on Form 10-Q. In the interim, the Company raised capital through short term bridge loans and also entered into a 24-month Strata Purchase Agreement (“Strata Agreement”) with a private investor who committed to purchase up to $5,000,000 of the Company’s registered common stock (see Note 9 – Strata Purchase Agreement). The Company intends to leverage this Strata Agreement to raise equity necessary to execute its full business plan.
In the long run, the ability of the Company to continue as a going concern is dependent on its ability to implement the business plan, raise capital, and generate sufficient revenues to generate positive net income and cash flow. There is no guarantee that the Company will ever be able to raise sufficient capital or generate a level of revenue to sustain its operations. The unaudited financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The Company’s unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (”SEC”). Certain information and disclosures normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these unaudited interim financial statements have been included. Such adjustments consist of normal recurring adjustments. These unaudited interim financial statements should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2024 as reported on Form 10-K. The results of operations for the three month period ended March 31, 2025 are not indicative of the results that may be expected for the full year.
Reportable Operating Segments
The Company operates its digital marketing business as a single segment business. The Company considers a combination of factors when evaluating the composition of potential reportable segments, including the results regularly provided to our Chief Executive Officer, who is our chief operating decision maker, economic characteristics of our digital marketing services offered, classes of clients (when applicable), geographic considerations (e.g. United States versus the rest of the world), and regulatory environment considerations (if applicable).
| F-6 |
| --- |
SPECIFICITY, INC
NOTES TO FINANCIAL STATEMENTS
(EXPRESSED IN U.S. DOLLARS)
(UNAUDITED)
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP and pursuant to SEC rules and regulations 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 the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s significant estimates include the valuation of share-based compensation, embedded derivatives within convertible note issuances, and allowance against deferred tax assets.
Revenue from Contracts with Customers
The Company’s performance obligation, associated with digital marketing solutions generally consist of the promise to deliver digital marketing services. Digital marketing solutions are delivered as a service and as such the performance obligation is complete once marketing tools or solutions are made available to the customer, or as determined by the specific terms of the contract, if applicable. The Company charges its clients a fixed monthly retainer for its services and such retainer is automatically renewed on a monthly basis on the first of the month unless cancelled by the client in accordance with the terms of the service agreement. If any customer pays for digital marketing services in advance, those payments are initially recorded as deferred revenue and then recognized as revenue when digital marketing services are delivered. As of March 31, 2025 and December 31, 2024, the Company had no deferred revenue recorded.
The Company’s standard sales terms generally do not generally allow for a right of return due to the nature of digital marketing services. After completion of the Company’s performance obligation, there is an unconditional right to consideration as outlined in the contract. Revenue is recognized when performance obligations under the terms of the contracts with customers are satisfied.
The Company offers these three digital marketing solutions for its customers to choose from.
| 1. | Tradigital Partners - White-Label Digital Marketing Solutions for Ad Agencies. Tradigital Partners is a specialized<br> white-label digital marketing service designed exclusively for advertising agencies to partner<br> their traditional campaigns with digital. This solution allows agencies to expand their service<br> offerings by providing cutting-edge digital marketing solutions under their own brand, without<br> the need for in-house expertise or infrastructure. |
|---|---|
| 2. | Put-Thru - Enterprise-Grade Digital Marketing, Scaled for SMBs. Put-Thru is a digital marketing tech stack designed specifically<br> for small and medium-sized businesses (“SMBs”). Unlike enterprise-level marketing platforms<br> that require significant investment and expertise, Put-Thru delivers powerful digital advertising<br> solutions at an affordable price point, helping SMBs compete with larger brands. |
| --- | --- |
| 3. | Pickpocket - DIY Digital Marketing Platform for Small Business Owners. Pickpocket is a do-it-yourself digital<br> marketing platform built for small business owners who want to take control of their advertising<br> efforts while cutting out the waste of audiences that don't make sense for their product<br> or service. Designed for businesses with annual revenues between$500,000 and $5 million,<br> Pickpocket leverages behavior-based ID technology to help users build ideal customer profiles<br> and directly target potential buyers through their mobile devices. The main goal of Pickpocket<br> is to directly target your competitors. Although fully developed, Pick Pocket has not yet<br> generated revenue, presenting an opportunity for future monetization strategies, including<br> subscriptions, performance-based pricing, or value-added services. |
| --- | --- |
Adhoc marketing services are available on a fee for service basis and include email marketing, automated marketing, content marketing, social media content creation, digital production marketing, branding standards, logo creation, website creature, brochure creation, print marketing, targeted print campaigns, Google and Bind display ads, Google and Bing pay per click campaigns, Google local service ads, Test campaigns, search engine optimization, blog creation, voice marketing, radio commercial creation, influencer marketing collaboration and proximity marketing.
Concentration of Credit Risk
Cash and cash equivalents are maintained at financial
institutions and, at times, balances may exceed federally insured limits of $250,000 per institution that pays Federal Deposit Insurance Corporation insurance premiums. The Company has never experienced any losses related to these balances.
Fair Value Measurements
The Company follows FASB ASC 820, Fair Value Measurementsand Disclosures (“ASC 820”) to measure and disclosure the fair value of its financial instruments. ASC 820 establishes a framework for measuring fair value in U.S. GAAP and expands disclosures about fair value measurements and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The three levels of fair value hierarchy defined by ASC 820 are described below:
| F-7 |
| --- |
SPECIFICITY, INC
NOTES TO FINANCIAL STATEMENTS
(EXPRESSED IN U.S. DOLLARS)
(UNAUDITED)
| Level 1 | Quoted<br> market prices available in active markets for identical assets or liabilities as of the reporting date. |
|---|---|
| Level 2 | Pricing<br> inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the<br> reporting date. |
| Level 3 | Pricing<br> inputs that are generally unobservable inputs and not corroborated by market data. |
Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable.
The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.
The carrying amounts reported in the Company’s financial statements for cash, accounts receivable, prepaids and other current assets, accounts payable, etc. approximate their fair value because of the immediate or short-term mature of these financial instruments.
Per Share Information
Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period, increased by the potentially dilutive common shares that were outstanding during the period. See Note 11 for additional information.
New Accounting Pronouncements
The FASB issues ASUs to amend the authoritative literature in ASC. There have been a number of ASUs to date that amend the original text of ASC. The Company believes those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company.
NOTE 4 – RELATED PARTY TRANSACTIONS
Employment Agreements
On January 1, 2021, the Company entered into a 1-year
employment agreement (“Agreement”) with Mr. Jason Wood, the Company’s Chief Executive Officer (“CEO”). The Agreement renews automatically on an annual basis. If the CEO is terminated without cause, then the remaining current contract year shall be paid upon termination. The Company currently pays the CEO’s personal living expenses in lieu of a direct salary. During the three month period ended March 31, 2025 and 2024, the Company paid compensation totaling approximately $6,455 and $52,010, respectively.
Related Party Notes Payable (Pickpocket)
On January 13, 2021, the Company entered into a share
purchase agreement with the Company’s CEO to acquire an 80% equity interest in Pickpocket Inc. (“Pickpocket”) for a purchase price of $1 million and paid consideration in the form of a promissory note bearing simple interest at a rate of 5% per annum. As of the date of acquisition, Pickpocket did not have any operations or significant assets. Upon acquisition, the Company expensed the purchase price as compensation to the officer. The transaction was accounted for on a carryover basis as the CEO was the controlling shareholder in both entities. As of March 31, 2025 and December 31, 2024, the Company has accrued interest of $62,500 and $50,000, respectively, included within accrued interest – related party on the accompanying balance sheets. During the three month period ended March 31, 2025, there were no changes in terms or conditions under the Picketpocket share purchase agreement. As of March 31, 2025 and December 31, 2024, related party notes payable was $1,000,000, respectively, and reported on the accompanying balance sheets.
Executive Officer Advances to the Company (RelatedParty Advances)
The Company’s CEO
provided unsecured credit advances to the Company to fund payroll and digital marketing platform operating costs in between financing rounds. These advances do not incur interest and are due on demand. As of March 31, 2025 and December 31, 2024, cumulative unpaid credit advances were $271,214 and $295,669, respectively.
NOTE 5 – WORKING
CAPITAL FUNDING LOANS
The Company finances short term working capital requirements in between capital raises by entering into secured borrowing agreements for which future receivables are pledged to repay these short-term obligations. Funding is generally nonrecourse one-time fixed amount financing arrangements and contain a performance and personal guarantee by the CEO and COO. Repayments are made generally on a weekly basis out of available daily deposits until the financing has been repaid in full. Future sales of revenues are not within the scope of ASC 860 (Transfers and Servicing of Financial Assets), as such these arrangements are accounted for under ASC 470 (Debt) as short term working capital loans. Accordingly, these working capital funding loans are reported current liabilities on the balance sheets. Upon receipt of financing proceeds the Company recognizes a liability equal to the loan proceeds received and accrued interest payable equal to the spread between total agreed upon repayments and the cash loan proceeds. Working capital funding loans consisted of the following:
| F-8 |
| --- |
SPECIFICITY, INC
NOTES TO FINANCIAL STATEMENTS
(EXPRESSED IN U.S. DOLLARS)
(UNAUDITED)
| Schedule of working capital funding loans | ||||
|---|---|---|---|---|
| MARCH 31, | DECEMBER 31, | |||
| 2025 | 2024 | |||
| (UNAUDITED) | ||||
| NewCo Capital Group Future Revenue Purchase Agreement dated March 3, 2023 (1) | $ | 40,630 | $ | 40,630 |
| Parkside Funding Group LLC Revenue Purchase Agreement dated August 3, 2023 (2) | 49,284 | 49,284 | ||
| Funding Futures Revenue Purchase Agreement dated February 27, 2024 (3) | 25,982 | 25,982 | ||
| ClearThink Capital Partners LLC (4) | 72,500 | 50,000 | ||
| Total working capital funding loans | $ | 188,396 | $ | 165,896 |
| (1) | On March 2, 2023, the<br> Company entered into a future revenue purchase agreement and received proceeds of $120,000<br> (net of underwriting and original fees of $7,200) for which $169,200 will be repaid in 36<br> weekly installments of $4,700, with a minimum payment of 10% of banking deposits. This working<br> capital loan is secured by substantially all of the Company’s assets and a personal<br> guarantee by the Company’s CEO and COO. The percentage purchased factor representing<br> interest expense under this arrangement was approximately 29.1% (including underwriting fees,<br> origination fees and financing spread). In the event of default, the Company may be required<br> to pay additional fees of 30% of the unpaid balance to cover legal fees required by the third<br> party to pursue collection in the event of default. | |||
| --- | --- | |||
| (2) | On August 3, 2023, the<br> Company entered into a future revenue purchase agreement and received proceeds of $57,000<br> (net of $3,000 in underwriting fees) for which $84,000 will be repaid in weekly installments<br> of $3,231 with a minimum payment of 22% of banking deposits. This working capital loan is<br> secured by substantially all of the Company’s assets and a personal guarantee by the<br> Company’s CEO and COO. The percentage purchased factor representing interest expense<br> under this arrangement was approximately 32.1% (including underwriting fees, origination<br> fees and financing spread). In the event of default, the Company may be required to pay a<br> fixed default penalty of $2,500 and additional fees of 33% of the unpaid balance to cover<br> legal fees required to pursue collection in the event of default. | |||
| --- | --- | |||
| (3) | On March 7, 2024, the<br> Company entered into a future revenue purchase agreement and received proceeds of $18,000<br> (net of $2,000 in underwriting fees) for which $29,980 will be repaid in daily installments<br> of $428, with a minimum payment of 9% of banking deposits. This working capital loan is secured<br> by substantially all of the Company’s assets and a personal guarantee by the Company’s<br> CEO. The percentage purchased factor representing interest expense under this arrangement<br> was approximately 40.1% (including underwriting fees, origination fees and financing spread).<br> In the event of default, the Company may be required to pay a fixed default penalty of $2,500<br> or up to 25% of the unpaid balance to cover legal fees required to pursue collection in the<br> event of default. | |||
| --- | --- | |||
| (4) | On<br>October 3, 2024, as more fully described in Note 9, the Company entered into short term securities lending agreement to borrow up to<br>$150,000 to cover professional service fees associated with the reaudit of the financial statements and costs to maintain reporting compliance.<br>As of March 31, 2025, the unused portion of the securities lending agreement was $77,500. | |||
| --- | --- |
NOTE 6 – CONVERTIBLE
NOTE AGREEMENT
On April 25, 2023, the Company
entered into Securities Purchase Agreement (“SPA Agreement”) with a third party to obtain bridge financing. Pursuant to the SPA Agreement, the Company entered into an unsecured 9-month convertible promissory note (“Convertible Note”) with a principal amount of $220,000. The Company paid additional consideration of 50,000 restricted shares of common stock and a detachable warrant to purchase up to 200,000 shares of common stock at an exercise price of $5.00 per warrant. The Company previously recognized at issuance an original issue discount (“OID”) of $82,500, which included $20,000 discount and $62,500 additional OID related to the fair value of restricted stock awarded as an additional inducement to the noteholder. Additionally, the Company recorded total accrued interest of $75,778, which included an additional interest charge of $22,000 at the time of issuance and default penalty interest of $53,778 as a result of not paying in accordance with the terms and conditions of the Convertible Note.
| F-9 |
| --- |
SPECIFICITY, INC
NOTES TO FINANCIAL STATEMENTS
(EXPRESSED IN U.S. DOLLARS)
(UNAUDITED)
Convertible Note was classified as current and was comprised as follows:
| Schedule of convertible note | ||||
|---|---|---|---|---|
| MARCH 31, | DECEMBER 31, | |||
| 2025 | 2024 | |||
| (UNAUDITED) | ||||
| Convertible Note, dated April 25, 2023, fixed installments of $26,889, matured in June 2024<br> and currently in default (1) | $ | 133,894 | $ | 133,894 |
| Add: Convertible Note interest payable (2) | 75,777 | 75,777 | ||
| Total Convertible Note payable | $ | 209,671 | $ | 209,671 |
| Total Convertible Note payable at maturity | $ | 218,888 | $ | 218,888 |
| (1) | The Convertible Note required<br> a fixed monthly repayment of approximately $26,889 starting July 24, 2023, and ending on<br> March 24, 2024. Unpaid principal and interest may be converted by the noteholder into shares<br> of the Company’s common stock at a conversion price of $1.50 per share at any time<br> while the Convertible Note remains outstanding. On January 29, 2024, the Company decreased<br> the conversion price from $1.50 to $0.50. The Company and the note holder agreed to decrease<br> the conversion ratio to compensate for the debt default position. The conversion ratio modification<br> did not substantively change the cash flows associated with the original Convertible Note;<br> however, the modification resulted in a substantive change in the conversion feature. There<br> were no other modifications made to the Convertible Note. On February 3, 2024, the note holder<br> converted $50,000 in outstanding principal into 100,000 shares of common stock. | |||
| --- | --- | |||
| (2) | The Convertible Note assessed<br> an additional 10% interest on the face value of the Convertible Note upon issuance which<br> increased the amount due from $220,000 to $242,000. Pursuant to Section 2(a)(i) of the Convertible<br> Note Agreement, failure to pay the noteholder amounts when due constitutes an event of default<br> and recognition of a penalty equal to 125% of the unpaid principal and interest due to the<br> note holder. As of March 31, 2025 and December 31, 2024, unpaid accrued interest payable<br> included $22,000 of interest since issuance of the Convertible Note and penalty interest<br> of $53,778. The note holder has not made any demand for payment. | |||
| --- | --- |
NOTE 7 – INCOME TAXES
The Company’s effective tax rate is 0% for the three month period ended March 31, 2025 and 2024, as the Company did not have any taxable income due to its continued net operating losses. The Company’s deferred tax assets increased primarily due to its net operating losses, for which a full valuation allowance has been applied. There were no significant changes in the types of temporary differences which resulted in deferred taxes. The Company is not currently under examination by any federal, state or local tax authority in connection with their prior tax filings.
NOTE 8 – CAPITAL STRUCTURE
During the three month period ended March 31, 2025, there were no equity transactions that could result in a change in control of the Company which would trigger any conversion provision contained within the Company’s Convertible Note, Series A or B preferred stock agreements. The following is a description of the Company’s equity instruments and changes during the quarter reporting periods:
| · | Series A Preferred Stock |
|---|
The Company is authorized to issue 1 million shares $0.001 par value Series A preferred stock (“Series A”). The holder of Series A preferred stock is entity to 80% of all voting rights available at the time of any vote. In the event of liquidation or dissolution of the Company, the holders of Series A preferred stock are entitled to share ratably in all assets remaining after payment of liabilities and have no liquidation preferences. Holders of Series A preferred stock have a right to convert each share of Series A into five shares of common stock. On December 1, 2020, the Company issued 1 million shares of Series A preferred stock to the CEO of the Company for no consideration. There were no changes in Series A shares during the three month period ended March 31, 2025 and 2024. As of March 31, 2025 and December 31, 2024, the Company had
1,000,000
shares of Series A Preferred Stock authorized, issued and outstanding.
| · | Series B Preferred Stock |
|---|
The Company was authorized to issue 260,000
shares $0.001 par value Series B preferred stock (“Series B”). In September 2022, the Company increased the Series B preferred stock authorized shares to 560,000. The holder of Series B preferred stock do not have any voting rights. In the event of liquidation or dissolution of the Company, the holders of Series B preferred stock are entitled to share ratably in all assets remaining after payment of liabilities and have no liquidation preferences. Holders of Series B preferred stock have a right to convert each share of Series B on a prorate basis of exactly ten (10) percent of the issued and outstanding common stock of the Company. The ultimate redemption value of Series B Preferred stock is tied to the value of the Company’s common stock.
In 2020, the Company issued 260,000 shares
of Series B preferred stock for no additional consideration at a fair value of $260. In 2022, the Company issued 300,000 shares of Series B preferred stock as compensation to the Chief Revenue Officer (“CRO”) of the Company. The Company estimated the fair value of Series B at $1.50 per share (average transaction price for common stock sold during the same period), which resulted in a total fair value of $450,000. As of March 31, 2025 and December 31, 2024, the Company’s CRO beneficially held 404,000 Series B shares, 104,000 Series B shares indirectly through his spouse and 52,000 Series B shares through his son. There were no changes in Series B shares during the three month periods ended March 31, 2025 and 2024. As of March 31, 2025 and December 31, 2024, the Company had 560,000 shares of Series B Preferred Stock authorized, issued and outstanding.
| F-10 |
| --- |
SPECIFICITY, INC
NOTES TO FINANCIAL STATEMENTS
(EXPRESSED IN U.S. DOLLARS)
(UNAUDITED)
| · | Common Stock |
|---|
As of March 31, 2025, the Company had 50 million authorized shares of common stock with a par value of $0.001, of which
13,588,714
were issued and outstanding. Common stockholders are entitled to one vote per share on all matters submitted to a vote of stockholders. As of March 31, 2025 and December 31, 2024, Company insiders held in aggregate
7.5
million shares of common stock, respectively. The Company’s CEO controls approximately 93% of the voting power of the Company’s common stock.
NOTE 9 – CAPITAL MARKET RAISE CONSULTING
AND FUNDING AGREEMENTS
The Company decided to engage a single equity funder to streamline its equity raise requirement. The following summarizes its capital raise consulting and equity funding agreements:
Tysadco Partners(“Tysadco”)
On September 1, 2022, the Company engaged Tysadco
Partners to provide consulting services on a monthly basis. Under the terms of the consulting services agreement with Tysadco, the Company is billed $7,500 for consulting services, consisting of a $2,500 monthly cash retainer and a $5,000 monthly equity retainer payable in common stock. Tysadco has the option to settle all consulting services invoices in the form of common stock. During the three month period ended March 31, 2025 and 2024, the Company accrued $22,500, respectively. During the three month period ended March 31, 2025 and 2024, the Company issued 38,673 and 22,571 shares of common stock, respectively, in partial settlement of accrued consulting services. As of March 31, 2025 and December 31, 2024, the Company had accrued consulting services fees totaling approximately $27,500 and $12,500, respectively, which could be converted into 61,111 and 16,667 shares of common stock, respectively. As of March 31, 2025 and December 31, 2024, Tysadco held 247,356 and 201,693 shares of the Company’s common stock, respectively.
ClearThink Capital Partners, LLC (“ClearThink”)Strata Agreement
In August 2022, ClearThink commenced its relationship with the Company with a $50,000 common stock private placement. On November 29, 2023, the Company entered into a 24-month Strata Purchase Agreement (“Strata Agreement”) with ClearThink. Under the terms of the Strata Agreement, ClearThink committed to purchase up to $5,000,000 of the Company’s registered common stock with a purchase price equal to 80% of the average of the two lowest daily stock prices during a ten (10) day trading period. The Strata Agreement requires a minimum purchase of $25,000 with a maximum purchase at the lesser or $1,000,000 or 500% of the daily average shares traded for the prior 10-day period. At no time shall the total number of shares purchased under this Strata Agreement exceed 9.99% of the Company’s outstanding common stock. ClearThink made an initial purchase of 400,000 shares of restricted stock in exchange for $100,000. Additionally, the Company issued an additional 200,000 shares of common stock to ClearThink as additional consideration which had a fair value of $50,000. During the three month period ended March 31, 2025, there were no proceeds received in connection with the Strata Agreement.
ClearThink Advance Funding Agreement
In October 2024, ClearThink agreed to provide interim
working capital funding (“funding advances”) to cover additional compliance costs associated with its requirement to reaudit its 2022 and 2023 annual financial statements and 2024 quarterly interim financial statements due to the permanent censure of its former auditor BF Borgers PC. As of March 31, 2025, and December 31, 2024, the Company had cumulative funding advances of $72,500 and $50,000, respectively. On June 26, 2025, the Company and ClearThink formalized a working capital funding agreement to provide $150,000 in total advances with fixed interest of $50,000 and additional ten (10) percent interest on the total outstanding balance. All amounts shall be due and payable when the Company is fully compliant with public company financial reporting requirements. Subsequent to March 31, 2025, the Company used the remaining working capital funding to cover audit and compliance costs.
As of March 31, 2025 and December 31, 2024, ClearThink held 600,000 shares of common stock, respectively.
NOTE 10 – SHARE-BASED COMPENSATION AND WARRANTS
Share-Based Compensation
During the three month period ended March 31, 2025,
the Company issued 10,500 common shares to its COO in connection with his employment agreement and issued 38,673 shares in partial satisfaction of amounts owed to its capital raise consultants ClearThink. The fair value of share based compensation issued was $28,069 during the three months ended March 31, 2025. During the three month period ended March 31, 2024, the Company did not issue any share based compensation to any employees; however, the Company issued 22,571 shares of common stock in partial satisfaction of amounts owed to its capital raise consultants ClearThink which had a fair value of $22,501.
The Company did not adopt stock option incentive plan or issue any stock options or other service based awards to any employee, advisor or consultant during the three month periods ended March 31, 2025 or 2024.
Warrants to Purchase Common Stock
On October 1, 2021, the Company issued 200,000 detachable
warrants at an exercise price of $3.00 per warrant in connection with a private equity offering. While the Company contemporaneously issued warrants in connection with this capital raise transaction, these warrants are subject to separate agreements with different terms and conditions that are not closely related. The warrants issued in connection with the sale of common stock may be exercised at the option of the purchaser and may only be settled in shares of common stock upon payment of the exercise price stated in the stock purchase agreement. These freestanding warrants are classified as an equity instrument and have no expiration date. The fair value of detachable warrants on the grant date was $0 using a Black-Scholes option pricing model with a stock price of $0.25, exercise price of $3.00, risk free rate of 4.57%, volatility of 10% to 25% (logarithmic average due to limited exchange pricing data) and a dividend rate of 0% and a warrant term of 10 years (as the Company’s warrants have no expiration date). During the three month period ended March 31, 2025 or 2024, there were no exercises of warrants to purchase common stock.
On April 25, 2023, the Company issued 200,000 detachable
freestanding warrants at an exercise price of $5.00 per warrant, as additional consideration in connection with its Convertible Note (see Note 5). While the Company contemporaneously issued warrants in connection with a Convertible Note issuance, these warrants are subject to separate agreements with different terms and conditions that are not closely related. The settlement and/or termination of the Convertible Note does not cause the warrant agreement to terminate or cause the terms and conditions to change due to changes in the Note instrument. The warrants issued in connection with the sale of common stock may be exercised at the option of the purchaser and may only be settled in shares of common stock upon payment of the exercise price stated in the stock purchase agreement. These freestanding warrants are classified as an equity instrument and have no expiration date. During the three month period ended March 31, 2025 or 2024, there were no exercises of warrants to purchase common stock.
| F-11 |
| --- |
SPECIFICITY, INC
NOTES TO FINANCIAL STATEMENTS
(EXPRESSED IN U.S. DOLLARS)
(UNAUDITED)
The table below summarizes the status of warrants outstanding and exercisable as follows:
| Schedule of warrants outstanding | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||||
| Warrants | Weighted<br> Average<br> Exercise<br> Price | Warrants | Weighted<br> Average<br> Exercise<br> Price | |||||
| (UNAUDITED) | ||||||||
| Warrants outstanding, January 1, | 400,000 | $ | 4.00 | 400,000 | $ | 4.00 | ||
| Issued | - | - | - | - | ||||
| Exercised | - | - | - | - | ||||
| Expired | - | - | - | - | ||||
| Warrants outstanding, March 31, | 400,000 | $ | 4.00 | 400,000 | $ | 4.00 | ||
| Warrants exercisable, March 31, | 400,000 | $ | 4.00 | 400,000 | $ | 4.00 |
NOTE 11 – WEIGHTED AVERAGE COMMON SHARES
The Company reported a net loss during the three month periods ended March 31, 2025 and 2024, as such, the inclusion of potentially dilutive securities in the computation of Diluted EPS would be anti-dilutive. Potentially dilutive securities excluded from the computation of diluted EPS was as follows:
| Schedule of anti-dilutive earnings per share | ||||
|---|---|---|---|---|
| THREE MONTHS END | ||||
| MARCH 31, | ||||
| 2025 | 2024 | |||
| (UNAUDITED) | ||||
| Convertible Note (see Note 6) | 437,776 | 437,776 | ||
| Series A Preferred (see Note8) | 5,000,000 | 5,000,000 | ||
| Series B preferred stock (see Note 8) | 1,358,871 | 1,133,901 | ||
| Detachable common stock warrants (see Note 10) | 400,000 | 400,000 | ||
| Total anti-dilutive securities excluded<br> from diluted weighted average common shares | 7,196,647 | 6,971,677 |
The above potentially diluted securities were excluded from the calculation as the exercise prices were in excess of the fair market value of the Company’s common stock.
NOTE 12 – COMMITMENTS AND CONTINGENCIES
In the ordinary course of business, it is possible that the Company may be the subject of lawsuits and claims from time to time. The Company’s management, with input from legal counsel, assesses such contingent liabilities, and such assessment inherently involves an exercise in judgment. In assessing loss contingencies related to legal proceedings pending against us or unasserted claims that may result in proceedings, evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that a probable and material loss has been incurred and the amount of liability can be estimated, then the estimated liability would be accrued in the financial statements. If the assessment indicates a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. The Company is not currently party to any pending or threatened litigation in connection with its principal business activities.
NOTE 13 – SUBSEQUENT EVENTS
In accordance with ASC 855-10 the Company has analyzed its operations subsequent to the three month period ended March 31, 2025, to the date these financial statements were issued, and determined that the following were material subsequent events to disclose in these financial statements.
| F-12 |
| --- |
ITEM 2. MANAGEMENT’SDISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Cautionary Note Regarding Forward-Looking Informationand Factors That May Affect Future Results
This quarterly report on Form 10-Q contains forward-looking statements regarding our business, financial condition, results of operations and prospects. The Securities and Exchange Commission (the “SEC”) encourages companies to disclose forward-looking information so that investors can better understand a company’s future prospects and make informed investment decisions. This quarterly report on Form 10-Q and other written and oral statements that we make from time to time contain such forward-looking statements that set out anticipated results based on management’s plans and assumptions regarding future events or performance. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance or results of current and anticipated sales efforts, expenses, the outcome of contingencies, such as legal proceedings, and financial results. Factors that could cause our actual results of operations and financial condition to differ materially are set forth in the “Risk Factors” section of our Form 10-K for the year ended December 31, 2024 filed with and accepted by the SEC on June 23, 2025.
As used in this “Management’s Discussion and Analysis of Financial Condition and Results of Operation,” except where the context otherwise requires, the term “we,” “us,” “our,” or “the Company,” refers to the business of Specificity, Inc.
We caution that these factors could cause our actual results of operations and financial condition to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
The following discussion should be read in conjunction with our unaudited financial statements and the related notes that appear elsewhere in this quarterly report on Form 10-Q.
Business Overview
At our core we are a full service digital marketing firm that delivers cutting-edge marketing solutions to identify and market in real-time to potential customers who are actively in the buying cycle. Our digital marketing solutions focus on B2B and B2C consumer markets and give small and medium sized businesses a fair chance to capture online traffic. Our underlying technology solution utilizes BiToS and MAIDs to build audiences, effectively eliminating bot traffic and ad waste and produces real-time messaging opportunities to reach target audiences more efficiently than broad based market messaging platforms. We also implement intuitive ad sequencing, audience ID technology, AI integration, saturation modeling, conversion funneling, CRM integration, traffic resolution, and comprehensive analytics reporting.
Our digital marketing capabilities were acquired through organic development in-house and through our efforts as a tech incubator and early adopter of innovative marketing tools. Currently, our operations are focused on 3 service offerings within our single segment business.
| · | Put-Thru<br> - Enterprise-Grade Digital Marketing, Scaled for SMBs. Put-Thru is a digital marketing tech<br> stack designed specifically for SMBs. Unlike enterprise-level marketing platforms that require<br> significant investment and expertise, Put-Thru delivers powerful digital advertising solutions<br> at an affordable price point, helping SMBs compete with larger brands. |
|---|---|
| · | Tradigital<br> Partners - White-Label Digital Marketing Solutions for Ad Agencies. Tradigital Partners<br> is a specialized white-label digital marketing service designed exclusively for advertising<br> agencies to partner their traditional campaigns with digital. This solution allows agencies<br> to expand their service offerings by providing cutting-edge digital marketing solutions under<br> their own brand, without the need for in-house expertise or infrastructure. |
| --- | --- |
| · | PickPocket<br> - DIY Digital Marketing Platform for Small Business Owners. Pick Pocket is a DIY digital<br> marketing platform built for small business owners who want to take control of their advertising<br> efforts while cutting out the waste of audiences that don't make sense for their product<br> or service. Designed for businesses with annual revenues between $500,000 and $5 million,<br> Pick Pocket leverages behavior-based ID technology to help users build ideal customer profiles<br> and directly target potential buyers through their mobile devices. The main goal of Pickpocket<br> is to directly target your competitors. |
| --- | --- |
We primarily generate revenue through recurring fixed monthly digital services agreements for the vast majority of our clients. We bill for our services at the beginning of each month and our services are completed at the end of the month. We also generate revenue through marketing campaigns for product or service launches and other non-recurring events.
| 1 |
| --- |
Results of Operations – Three Months EndedMarch 31, 2025, as compared to March 31, 2024
Revenues
For the three month period ended March 31, 2025 our revenues decreased to $298,050 as compared to $398,861 during the same period last year. During the three month period ended March 31, 2024 there were two large one-time marketing campaigns totaling approximately $90,000 that did not repeat during the three month period ended March 31, 2025. Excluding these two large non-recurring marketing campaigns, revenues decreased by approximately $11,000 over the same quarter last year. In the ordinary course of our business, large marketing campaigns for specific events or promotions that are nonrecurring in nature could create some variability in our revenues quarter to quarter.
Cost of Revenues
For the three month period ended March 31, 2025 cost of revenues increased to $154,776 as compared to $114,659 in the same period last year. The increase in cost of revenues was due to higher quality and higher cost digital marketing data sources and related platform costs to manage our client base.
Operating Expenses
Operating expenses include sales and marketing, capital raise promotion costs, general and administrative, share-based compensation and depreciation and amortization. The primary drivers of operating expenses are sales and marketing and general and administrative expenses (of which professional fees represent more than 50% of the total costs). For the three month period ended March 31, 2025 operating expenses increased to $270,990 as compared to $248,621 in the same period last year primarily driven by onboarding of a new COO, higher legal, accounting and advisory fees to guide our capital market raise and public company reporting compliance costs. We anticipate higher operating expenses as we continue to rise over time as we support sales growth initiatives and capital market equity raise activity.
Other Expenses
For the three month period ended March 31, 2025 other expenses decreased to $12,500 as compared to $72,061 in the same period last year, primarily due to recognition of extinguishment of debt related to our convertible note conversion rate modification, early termination of our operating lease and working capital funded debt interest costs.
Provision for Income Taxes
For the three month period ended March 31, 2025 there was no provision for income taxes as we had continuing net operating losses. We placed a full valuation allowance on net deferred tax assets.
Net Loss
For the three month period ended March 31, 2025 our net loss increased to $140,216 as compared to $36,480 in the same period last year. The increase in quarterly net loss was primarily due to lower net revenues amid macro level market factors outside of our control which delayed client marketing launches and spend and higher than normal short term financial compliance reporting and audit costs incurred in 2024 and 2025.
Liquidity, Capital Resources, and Off-BalanceSheet Arrangements
We may need to raise additional capital to fund our operations and there can be no assurance that additional capital will be available on acceptable terms or at all. In the short term, we must raise additional capital through debt or equity financing to support our business operations and to grow our business. Over the long term, we must successfully execute our growth plans to increase profitable revenue and income streams to generate positive cash flows to sustain adequate liquidity to meet minimum operating requirements.
Net Working Capital
At March 31, 2025, we had a net working capital deficit of approximately $1,250,597 compared to a net working capital deficit of $1,171,822 at December 31, 2024. Our immediate sources of liquidity include cash and cash equivalents and accounts receivable; however, these cashflows from operations at this stage of our development will not sustain our operations. As shown in our audited financial statements, we have, since inception, financed operations and limited capital expenditures through the sale of stock and convertible notes and working capital funded debt. We relied on proceeds from customer payments and financing activities from the sale of common stock to fund our business operations and growth plans.
We must successfully execute our business plan to increase profitability in order to achieve positive cash flows to sustain adequate liquidity without requiring additional funds from external sources to meet minimum operating requirements. We anticipate that we will need to raise additional capital to fund our operations and to execute our business plan; and there can be no assurance that additional capital will be available on acceptable terms or at all.
| 2 |
| --- |
Cash Flows from Operating Activities
Cash provided by (used in) operating activities provides an indication of our ability to generate sufficient cash flow from our recurring business activities. For the three month period ended March 31, 2025, net cash provided by operations was $12,777 driven primarily by conversion of outstanding accounts payable due to service provider in exchange for common stock, which preserved our operating cash flow. For the three month period ended March 31, 2024, net cash used in operations was $33,724 driven primarily by current year operating loss.
Cash Flows from Investing Activities
For the three month period ended March 31, 2025 or 2024, there were no inflows or outflows for investing activities.
Cash Flows from Financing Activities
Cash provided by (used in) financing activities provides an indication of our debt financing and proceeds from capital raise transactions. For the three month period ended March 31, 2025, net cash used in financing activities was $16,190, primarily due to repayments of working capital funding advances from specialty lenders and shareholder loans. For the three month period ended March 31, 2025, net cash used in financing activities was $14,018, primarily due to repayments of working capital funding advances from specialty lenders.
Future Funding
Our management does not believe that our current capital resources will be adequate to continue operating our company and maintaining our business strategy for much more than 12 months. At the date hereof, we have minimal cash at hand. We require additional capital to implement our business and fund our operations.
Since inception we have funded our operations primarily through debt and equity financing and we expect that we will continue to fund our operations through equity and debt financing, either alone or through strategic alliances. Additional funding may not be available on favorable terms, if at all. We intend to continue to fund our business by way of equity or debt financing until natural revenues can support the Company. If we raise additional capital through the issuance of equity or convertible debt securities, the percentage ownership of our company held by existing shareholders will be reduced and those shareholders may experience significant dilution. In addition, new securities may contain certain rights, preferences or privileges that are senior to those of our common stock. We cannot assure you that we will be able to raise the working capital as needed in the future on terms acceptable to us, if at all.
If we are unable to raise capital as needed, we are required to reduce the scope of our business development activities, which could harm our business plans, financial condition, and operating results, or cease our operations entirely, in which case, you will lose all of your investment.
Off-Balance Sheet Arrangements
We have no off-balance sheet financing arrangements.
ITEM 3. QUANTITATIVE AND QUALITATIVEDISCLOSURES ABOUT MARKET RISK
Not applicable.
ITEM 4. CONTROLS AND PROCEDURES
Disclosure controls and procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports, filed under the Securities Exchange Act of 1934, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable and not absolute assurance of achieving the desired control objectives. In reaching a reasonable level of assurance, management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. In addition, the design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, a control may become inadequate because of changes in conditions or the degree of compliance with policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.
As required by the SEC Rules 13a-15(b) and 15d-15(b), we carried out an evaluation under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on the foregoing, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were not effective at the reasonable assurance level due to material weaknesses in internal controls over financial reporting.
To address these material weaknesses, management engaged financial consultants, performed additional analyses and other procedures to ensure that the financial statements included herein fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented.
| 3 |
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A material weakness is a deficiency, or a combination of deficiencies, within the meaning of Public Company Accounting Oversight Board (“PCAOB”) Audit Standard No. 5, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. Management has identified the material weaknesses which have caused management to conclude that as of March 31, 2025, our internal controls over financial reporting were not effective as a result of continuing weaknesses principally due to the following:
| · | We<br> had not established adequate financial reporting monitoring activities to mitigate the risk<br> of management override, specifically because there are few employees and only one officers<br> with management functions and therefore there is lack of segregation of duties. |
|---|---|
| · | We<br> had inadequate document retention policies and procedures to ensure that all financial transactions<br> were maintained and easily accessible. |
| --- | --- |
| · | We<br> had inadequate policies and procedures related to internal control over financial reporting<br> and as such relied heavily on outside consultants and advisors to assist us in the preparation<br> of the annual and quarterly financial statements and partners with us to ensure compliance<br> with US GAAP and SEC disclosure requirements. |
| --- | --- |
| · | We currently do not have board of directors and audit committee oversight. The lack of oversight of by a board of directors could result in failure to ensure robust financial reporting, internal controls and inaccurate disclosures. Additionally, the lack of oversight could result in a conflict of interest, undermine board objectivity, transparency, and compliance. |
| --- | --- |
At such time as we raise additional working capital, we plan to add staff, initiate training, add additional subject matter expertise so that we may improve our processes, policies, procedures, and documentation of our internal control processes.
Changes in internal control over financialreporting
There were no changes in our internal control over financial reporting during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
We know of no material, existing, or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers, or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.
ITEM 1A. RISK FACTORS
As a smaller reporting company, we are not required to provide the information required by this item. However, please refer to our 2024 Form 10-K as filed with and accepted by the SEC on June 23, 2025, to see those Risk Factors listed therein.
ITEM 2. UNREGISTERED SALESOF EQUITY SECURITIES AND USE OF PROCEEDS
Except for initial founders shares all unregistered shares have since been registered pursuant to the Form S-1 registration statement deemed effective on September 16, 2021, and the Form S-1 registration statement deemed effective on June 1, 2022, and the Form S-1 registration statement deemed effective on September 23, 2022.
ITEM 3. DEFAULTS UPON SENIORSECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS
| Exhibit No. | Description of Exhibit |
|---|---|
| 31.1* | Certification<br> of Principal Executive Officer and Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act Of 2002. |
| 32.1* | Certification<br> of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act Of 2002. |
| 10.1* | Purchase Agreement dated October 3, 2024, by and between Specificity, Inc. and ClearThink Capital Partners, LLC. |
| 101.INS* | XBRL INSTANCE<br> DOCUMENT |
| 101.SCH* | XBRL TAXONOMY<br> EXTENSION SCHEMA |
| 101.CAL* | XBRL TAXONOMY<br> EXTENSION CALCULATION LINKBASE |
| 101.DEF* | XBRL TAXONOMY<br> EXTENSION DEFINITION LINKBASE |
| 101.LAB* | XBRL TAXONOMY<br> EXTENSION LABEL LINKBASE |
| 101.PRE* | XBRL TAXONOMY<br> EXTENSION PRESENTATION LINKBASE |
| * | Filed<br> herewith. |
| --- | --- |
| 4 |
| --- |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Specificity, Inc. | ||
|---|---|---|
| Date:<br> June 30, 2025 | By: | /s/ Jason Wood |
| Name: | Jason Wood | |
| Title: | Chairman of the Board of Directors, Chief Executive Officer, Chief<br> Financial Officer<br><br> <br>(Principal Executive Officer)<br><br> <br>(Principal Financial and Accounting Officer) |
| 5 |
| --- |
PURCHASE AGREEMENT
This PURCHASE AGREEMENT (this “Agreement”), dated as of October 3, 2024, is entered into by and between Specificity, Inc., a Nevada corporation, (the “Company”), and ClearThink Capital Partners, LLC, a Delaware limited liability company (the “Buyer”).
A.
The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “1933 Act”).
B.
Upon the terms and conditions stated in this Agreement, the Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement (i) a Promissory Note of the Company, in the form attached hereto as Exhibit A (the “Note”), in the original principal amount of up to One Hundred Fifty Thousand ($150,000.00) (the “OriginalPrincipal Amount”) (together with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance with the terms thereof, the “Note”).
NOW THEREFORE, the Company and the Buyer hereby agree as follows:
1.
Purchase and Sale. On the Closing Dates (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase from the Company the (i) Notes in the original principal amount of up to One Hundred Fifty Thousand Dollars ($150,000.00). Any amounts funded by the Buyer in excess of the original principal amount shall be subject to the same terms and conditions set forth herein this Purchase Agreement.
1.1.
Closing Dates. The date and time of the issuance and sale of the Securities pursuant to this Agreement (the “Closing Dates”) shall be on or about October 3, 2024, and other mutually agreed upon times through September 30, 2025. The closings of the transactions contemplated by this Agreement (the “Closings”) shall occur on the Closing Dates at such location as may be agreed to by the parties.
1.2.
Form of Payment. (i) The Buyer shall disburse the Purchase Price to the Company in minimum installments of Ten Thousand Dollars ($10,000.00) installments, each of which shall constitute a separate closing date for purposes of this Purchase Agreement, (ii) the Buyer shall pay the original principal amount to the Company by wire transfer of immediately available funds to a Company account designated by the Company, in accordance with the Company’s written wiring instructions, against delivery of the Securities, and (ii) the Company shall deliver such duly executed Securities on behalf of the Company, to the Buyer, against delivery of such original principal amount.
1.3.
Use of Proceeds. The Company shall use the proceeds from each installment against the original principal amount to price to cover audit, accounting and SEC compliance costs.
2.
Interest. Interest shall be assessed as follows: (i) an initial one-time interest fee of Fifty Thousand Dollars ($50,000.00) based on original principal of One Hundred Thousand Dollars ($100,000.00), which shall be assessed on January 1, 2025, and (ii) an additional ten (10) percent interest charged on the total unpaid original principal amount and initial one-time interest fee outstanding.
3.
Prepayment. The Company may prepay all amounts due and outstanding in connection with this Purchase Agreement at any time without penalty. If the Buyer has previously provided a notice of conversion (see Section 4 below) to the Company, the Company may not prepay any amounts included in the notice of conversion.
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4.
Conversion of Original Principal Amount. The Buyer shall have the right, but not the obligation, to convert the outstanding original principal amount and interest into shares of the Company’s common stock, on the terms and conditions set forth below.
4.1.
Conversion right. Subject to the provisions of Section 3(c), at any time or times, the Buyer shall be entitled to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into fully paid and nonassessable shares of Common Stock in accordance with Section 3(b), at the Conversion Price (as defined below). The number of shares of Common Stock issuable upon conversion of any Conversion Amount shall be equal to the quotient of dividing the Conversion Amount by the Conversion Price. The Company shall not issue any fraction of a share of Common Stock upon any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer agent fees, legal fees, costs and any other fees or costs that may be incurred or charged in connection with the issuance of shares of the Company’s Common Stock to the Holder arising out of or relating to the conversion of amounts due under this Purchase Agreement. All calculations under this Section 4 shall be rounded up to the nearest $0.00001 or whole share.
(a) “Conversion Amount” means the portion of the original principal amount and Interest to be converted, plus any penalties, redeemed or otherwise with respect to which this determination is being made.
(b) “Conversion Price” shall be equal to 80% of the average of the Company’s two lowest daily stock prices during a ten (10) day trading period preceding the Buyer’s notice of conversion.
4.2.
Mechanics of Conversion.
(a) Optional Conversion. To convert any Conversion Amount into shares of Common Stock on any date (a “Conversion Date”), the Holder shall (A) transmit by email, facsimile (or otherwise deliver), for receipt on or prior to 11:59 p.m., New York, NY Time, on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit A (the “Conversion Notice”) to the Company. On or before the third Business Day following the date of receipt of a Conversion Notice (the “Share Delivery Date”), the Company shall (A) if legends are not required to be placed on certificates of Common Stock pursuant to the then existing provisions of Rule 144 of the Securities Act of 1933 (“Rule 144”) and provided that the Transfer Agent is participating in the Depository Trust Company’s (“DTC”) Fast Automated Securities Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal Agent Commission system or (B) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled which certificates shall not bear any restrictive legends unless required pursuant the Rule 144. If this Note is physically surrendered for conversion and the outstanding Principal of this Note is greater than the Principal portion of the Conversion Amount being converted, then the Company shall, upon request of the Holder, as soon as practicable and in no event later than three (3) Business Days after receipt of this Note and at its own expense, issue and deliver to the holder a new Note representing the outstanding Principal not converted. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of this Note shall be treated for all purposes as the record holder or holders of such shares of Common Stock upon the transmission of a Conversion Notice.
(b) Book-Entry. Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Purchase Agreement in accordance with the terms hereof, the Holder shall not be required to physically surrender this Purchase Agreement to the Company unless (A) the full Conversion Amount represented by this Note is being converted or (B) the Holder has provided the Company with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance of this Purchase Agreement upon physical surrender of this Note. The Buyer and the Company shall maintain records showing the Principal and Interest converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Buyer and the Company, so as not to require physical surrender of this Purchase Agreement upon conversion. Upon payment of the then due and outstanding and all accrued interest, the Buyer shall provide the Company with a letter setting forth that the Company’s obligations under this Note have been satisfied in their entirety and the date such satisfaction occurred.
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5.
Buyer’s Investment Representations; Governing Law; Miscellaneous.
5.1.
Buyer’s Investment Representations.
(a) This Agreement is made in reliance upon the Buyer’s representation to the Company, which by its acceptance hereof Buyer hereby confirms, that the Securities to be received by it will be acquired for investment for its own account, not as a nominee or agent, and not with a view to the sale or distribution of any part thereof, and that it has no present intention of selling, granting participation in, or otherwise distributing the same, but subject nevertheless to any requirement of law that the disposition of its property shall at all times be within its control. The Buyer understands that the Securities are not registered under the 1933 Act, on the basis that the sale provided for in this Agreement and the issuance of securities hereunder is exempt from registration under the 1933 Act pursuant to Section 4(a)(2) thereof, and that the Company’s reliance on such exemption is predicated on the Buyer’s representations set forth herein. The Buyer realizes that the basis for the exemption may not be present if, notwithstanding such representations, the Buyer has in mind merely acquiring shares of the Securities for a fixed or determinable period in the future, or for a market rise, or for sale if the market does not rise. The Buyer does not have any such intention.
(b) The Buyer understands that the Securities may not be sold, transferred, or otherwise disposed of without registration under the 1933 Act or an exemption therefrom, and that in the absence of an effective registration statement covering the Securities or an available exemption from registration under the 1933 Act, the Stock must be held indefinitely. In particular, the Buyer is aware that the Securities may not be sold pursuant to Rule 144 or Rule 701 promulgated under the 1933 Act unless all of the conditions of the applicable Rules are met. Among the conditions for use of Rule 144 is the availability of current information to the public about the Company. Such information is not now available, and the Company has no present plans to make such information available. The Buyer represents that, in the absence of an effective registration statement covering the Securities, it will sell, transfer, or otherwise dispose of the Securities only in a manner consistent with its representations set forth herein and then only in accordance with the provisions of Section 5(d) hereof.
(c) The Buyer agrees that in no event will it make a transfer or disposition of any of the Securities (other than pursuant to an effective registration statement under the 1933 Act), unless and until (i) the Buyer shall have notified the Company of the proposed disposition and shall have furnished the Company with a statement of the circumstances surrounding the disposition, and (ii) if requested by the Company, at the expense of the Buyer or transferee, the Buyer shall have furnished to the Company either (A) an opinion of counsel, reasonably satisfactory to the Company, to the effect that such transfer may be made without registration under the 1933 Act or (B) a “no action” letter from the Securities and Exchange Commission to the effect that the transfer of such securities without registration will not result in a recommendation by the staff of the Securities and Exchange Commission that action be taken with respect thereto. The Company will not require such a legal opinion or “no action” letter in any transaction in compliance with Rule 144.
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| --- |
(d) The Buyer represents and warrants to the Company that it is an “accredited investor” within the meaning of Securities and Exchange Commission Rule 501 of Regulation D, as presently in effect and, for the purpose of Section 25102(f) of the Delaware Corporations Code, he or she is excluded from the count of “purchasers” pursuant to Rule 260.102.13 thereunder.
6.
Other Provisions.
6.1
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of New York or in the federal courts located in New York, New York. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
6.2
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party.
6.3
Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation of, this Agreement.
6.4
Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.
6.5
Entire Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be waived or amended other than by an instrument in writing signed by the Buyer.
6.6
Notices. Any notice required or permitted hereunder shall be given in writing (unless otherwise specified herein) and shall be deemed effectively given on the earliest of:
(a) the date delivered, if delivered by personal delivery as against written receipt therefor or by e-mail to an executive officer, or by confirmed facsimile,
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| --- |
(b) the fifth Trading Day after deposit, postage prepaid, in the United States Postal Service by registered or certified mail, or
(c) the third Trading Day after mailing by domestic or international express courier, with delivery costs and fees prepaid, in each case, addressed to each of the other parties thereunto entitled at the following addresses (or at such other addresses as such party may designate by ten (10) calendar days’ advance written notice similarly given to each of the other parties hereto):
If to the Company:
Specificity, Inc.
410 S. Ware Blvd., Suite 508
Tampa, FL 33619
Tel: 612-562-9447
Email: jason@specifictyinc.com
If to the Buyer:
ClearThink Capital Partners, LLC
10 Times Square, 5^th^ FL
New York, NY 10018
Tel: 646-431-6980
E-mail: nyc@clearthink.capital
6.7
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns. Notwithstanding anything to the contrary herein, the rights, interests or obligations of the Company hereunder may not be assigned, by operation of law or otherwise, in whole or in part, by the Company without the prior written consent of the Buyer, which consent may be withheld at the sole discretion of the Buyer; provided, however, that in the case of a merger, sale of substantially all of the Company’s assets or other corporate reorganization, the Buyer shall not unreasonably withhold, condition or delay such consent. This Agreement or any of the severable rights and obligations inuring to the benefit of or to be performed by Buyer hereunder may be assigned by Buyer to a third party, including its financing sources, in whole or in part, without the need to obtain the Company’s consent thereto.
6.8
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.
6.9
Survival. The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the Closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The Company agrees to indemnify and hold harmless the Buyer and all its officers, directors, employees, attorneys, and agents for loss or damage arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they are incurred.
6.10
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.
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6.11
Remedies. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Agreement, that the Buyer shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing economic loss and without any bond or other security being required.
6.12
Buyer’s Rights and Remedies Cumulative. All rights, remedies, and powers conferred in this Agreement and the Transaction Documents on the Buyer are cumulative and not exclusive of any other rights or remedies, and shall be in addition to every other right, power, and remedy that the Buyer may have, whether specifically granted in this Agreement or any other Transaction Document, or existing at law, in equity, or by statute; and any and all such rights and remedies may be exercised from time to time and as often and in such order as the Buyer may deem expedient.
Attorneys’ Fees and Cost of Collection. In the event of any action at law or in equity to enforce or interpret the terms of this Agreement or any of the other Transaction Documents, the parties agree that the party who is awarded the most money shall be deemed the prevailing party for all purposes and shall therefore be entitled to an additional award of the full amount of the attorneys’ fees and expenses paid by such prevailing party in connection with the litigation and/or dispute without reduction or apportionment based upon the individual claims or defenses giving rise to the fees and expenses. Nothing herein shall restrict or impair a court’s power
[Remainder of page intentionally left blank; signaturepage to follow]
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PURCHASE AMOUNT AND INTEREST:
| Original Principal Amount of Note: | $ | 150,000.00 |
|---|---|---|
| Initial Interest Fee: | $ | 50,000.00 |
| Additional 10% Interest (Based on Outstanding Balances) | TBD |
IN WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.
THE COMPANY:
| Specificty, Inc. | |
|---|---|
| By: | /s/ Jason Wood |
| Jason Wood<br><br> <br>Chief Executive Officer |
THE BUYER:
ClearThink Capital Partners, LLC
| By: | /s/ Brian Loper |
|---|
EXHIBIT A
NOTE
Exhibit 31.1
I, Jason Wood, certify that:
| 1. | I have reviewed this quarterly report on Form 10-Q of Specificity, Inc.; | |
|---|---|---|
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit<br>to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not<br>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,<br>fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for,<br>the periods presented in this report; | |
| --- | --- | |
| 4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining<br>disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting<br>(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<br>to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries,<br>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<br>reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the<br>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<br>in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered<br>by this report based on such evaluation; and | |
| --- | --- | |
| (d) | Disclosed in this report any change in the registrant’s internal control over financial reporting<br>that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an<br>annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over<br>financial reporting; and | |
| --- | --- | |
| 5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation<br>of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board<br>of directors (or persons performing the equivalent functions): | |
| --- | --- | |
| (a) | All significant deficiencies and material weaknesses in the design or operation of internal control<br>over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize<br>and report financial information; and | |
| --- | --- | |
| (b) | Any fraud, whether or not material, that involves management or other employees who have a significant<br>role in the registrant’s internal control over financial reporting. | |
| --- | --- | |
| Date: June 30, 2025 | By: | /s/ Jason Wood |
| --- | --- | --- |
| Name: | Jason Wood | |
| Title: | Chief Executive Officer<br><br> <br>(Principal Executive Officer)<br><br> <br>Chief Financial Officer<br><br> <br>(Principal Accounting Officer)<br><br> <br>(Principal Financial Officer) |
Exhibit 32.1
STATEMENT FURNISHED PURSUANT TO SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002, 18 U.S.C. SECTION 1350
In connection with the Quarterly Report on Form 10-Q of Specificity, Inc. (the “Company”) for the quarter ended March 31, 2025 (the “Report”), I, Jason Wood, Chief Executive Officer and Chief Financial Officer, certify as follows:
| A) | the<br>Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended<br>(15 U.S.C. 78m or 78o(d)), and |
|---|---|
| B) | the<br>information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the<br>Company as of the dates and for the periods covered by the Report. |
| --- | --- |
This statement is authorized to be attached as an exhibit to the Report so that this statement will accompany the Report at such time as the Report is filed with the Securities and Exchange Commission, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350. Pursuant to Securities and Exchange Commission Release 33-8238, dated June 5, 2003, this certification is being furnished and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any registration statement of the Company filed under the Securities Act of 1933, as amended, except to the extent that the Company specifically incorporates it by reference. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
| Date: June 30, 2025 | By: | /s/ Jason Wood |
|---|---|---|
| Name: | Jason Wood | |
| Title: | Chief Executive Officer<br><br> <br>(Principal Executive Officer)<br><br> <br>Chief Financial Officer<br><br> <br>(Principal Accounting Officer)<br><br> <br>(Principal Financial Officer) |