Risk Factors Update Summary

• The Company raised $646 million through common stock issuances, reducing debt by $476 million.
• The Company secured a $60 million credit facility for a construction project in Grants, New Mexico.
• The company may not receive all required government authorizations for plans, impacting operations significantly.
• The company adopted the 2013 Framework for internal control over financial reporting. This change might result in improved control effectiveness.
• The Company secured a $15 million line of credit, drawing $400,000 and repaying $1.88 million.
• The related party line of credit note was used to pay off $392,194 in full.
• The CEO's base salary increased from $35,833.33 to $41,667.00 monthly over the next two years.
• Failure to receive necessary state and federal authorizations for cannabis and controlled substances could negatively impact the business.
• Interest expense capitalized increased from $106,117 to $223,271.
• Management assessed the applicability of internal control principles, concluding effectiveness as of December 31, 2023. This change ensures ongoing control evaluation.
• The company's expansion into additional controlled substances, like psilocybin, could meet increased demand.
• The CEO's stock options and RSUs were canceled and replaced with 5,500,000 RSUs.
• The Company increased available credit to $14.8 million, up from $11.3 million.
• An additional $60,000 was drawn on the related party line of credit note.
• Operating expenses increased significantly from $2,490,499 in 2022 to $27,313,922 in 2023.
• No changes in internal control over financial reporting were identified during the quarter ended December 31, 2023. This indicates stability in control processes.
• Stock options granted increased significantly from 0 in 2022 to 2,425,000 in 2023.
• The number of outstanding shares of Common Stock increased from 190 to 318.
• Cash decreased from $414,574 in 2022 to $10,059 in 2023, mainly due to construction expenses.
• Common shares issued increased from 173,304,800 to 184,758,818.
• The Bylaws were amended and restated to provide for special meetings of stockholders.
• Financing activities provided $15,766,723 in 2022 and $4,584,750 in 2023, impacting liquidity.
• Warrants issued in private placements increased from 9,523,810 to 3,684,210.
• The Bylaws were amended and restated to specify requirements for advance notification of director nominations and stockholder proposals.
• The company's accumulated deficit increased from $34,075,821 in 2022 to $47,203,469 in 2023.
• The fair value of warrants issued decreased from $7,399,000 to $6,901,000.
• Deferred tax assets increased from $8,022,347 to $11,118,727.