NOTE 14. SUBSEQUENT EVENTS

The Company has evaluated subsequent events for recognition and disclosure through August 12, 2024, which is the date the condensed consolidated financial statements were available to be issued and has determined that there are no material subsequent events that require recognition or disclosure in the accompanying condensed consolidated financial statements other than the following:

On July 22, 2024, shareholders approved, for purposes of complying with applicable Nasdaq rules and upon exercise of that certain Common Stock Purchase Warrant dated June 4, 2024, the issuance of up to 20,638,326 shares of common stock of the Company. The Company is required to register these securities within 60 days from the date of shareholder approval.

On August 5, 2024, the Company received a decision from the Nasdaq Hearings Panel (“the Panel”) to grant the continued listing of its common stock on the Nasdaq. The Company was given until October 23, 2024, to regain compliance with the Nasdaq’s $1 minimum bid price per share requirement pursuant to Nasdaq Listing Rule 5550(a)(2), as well as demonstrate long-term compliance with the equity rule requiring that the Company maintain a minimum of $2,500,000 in stockholders’ equity pursuant to Nasdaq Listing Rule 5550(b)(1).