UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

For the fiscal year ended December 31 2020 , 2022

For the transition period from to

Commission file number 000-56148

TraQiQ, Inc.

(Exact name of registrant as specified in its charter)

14205 SE 36th Street, Suite 100

Bellevue, WA98006

(Address of principal executive offices)

Registrant’s telephone number, including area code: (425)818-0560

Securities registered pursuant to Section 12(b) of the Act: None.

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

Common Stock, $.0001$0.0001 par value per share

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act [  ]☐ Yes [X] ☒ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. [  ]☐ Yes [X] ☒ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [X] ☒ Yes [  ] ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 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 [X] ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non- accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer”, “non-accelerated filer”, “smaller reporting company” and “emerging growth” in Rule 12b-2 of the Exchange Act.

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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. [  ]☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). [  ]☐ Yes [X] ☒ No

The numberaggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed Second fiscal quarter was approximately $5,234,744, based upon the closing price of the registrant’s common stock of $4.10 on the OTCQB as of that date. Shares of common stock held by each executive officer and director and by each person who owns 10% or more of the outstanding common stock of the registrant have been excluded in that such persons may be deemed to be affiliates. This determination of affiliate status is not necessarily a conclusive determination for other purposes. Without acknowledging that any individual director of registrant is an affiliate, all directors have been included as affiliates with respect to shares owned by them.

As of March 30, 2023, there were 39,939,965 shares of the Registrant’s common stock, $0.0001 par value per share, outstanding as of March 17, 2021, was 30,830,237.outstanding.

TABLE OF CONTENTS

GENERAL INFORMATION

TABLE OF CONTENTS

GENERAL INFORMATION

FORWARD-LOOKING STATEMENTS

Certain statements discussed in Item 1 (Business), Item 1A (Risk Factors), Item 3 (Legal Proceedings), Item 7 (Management’s Discussion and Analysis of Financial Condition and Results of Operations), and elsewhere in this Annual Report on Form 10-K as well as in other materials and oral statements that the CompanyTraQiQ, Inc. (the “Company”) releases from time to time to the public constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements concerning management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters involve significant known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of results to differ materially from any future results, performance or achievements discussed or implied by such forward-looking statements. Such risks, uncertainties and other important factors are discussed in Item 1A (Risk Factors) and Item 7 Management’s(Management’s Discussion and Analysis of Financial Condition and Results of Operations.Operations). In addition, these statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995. It should be understood that it is not possible to predict or identify all such factors.

These forward-looking statements generally can be identified by the use of forward-looking terminology, such as “may,’’ “will,’’ “expect,’’ “intend,’’ “estimate,’’ “anticipate,’’ “believe,’’ “continue’’ or similar terminology, although not all forward-looking statements contain these words. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, you are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Although we believe that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. Important factors that may cause actual results to differ from projections include, for example:

Unless otherwise required by law,low, we also disclaim any obligation to update our view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made in this annual report on Form 10-K.form 10-k

When considering these forward-looking statements, you should keep in mind the cautionary statements in this annual report on Form 10-K and in our other filings with the SEC. We cannot assure you that the forward-looking statements in this annual report on Form 10-K will prove to be accurate. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may prove to be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time-frame, or at all.

Emerging Growth Company Status

We are an “emerging growth company,” Any forward-looking statement made by us in this annual report of Form 10-K speaks only as defined in the Jumpstart Our Business Startups Act enacted in April 2012, and, for as long as we continue to be an “emerging growth company,” we may choose to take advantage of exemptions from various reporting requirements applicable to other public companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. We will remain an “emerging growth company” until the earliest of (i) the last day of the fiscal year in which we have total annual gross revenues of $1 billion or more; (ii) the last day of the fiscal year following the fifth anniversary of the date of the first sale of our common equity securities pursuant to an effective registration statement; (iii) the date on which we have issued more than $1 billionmake it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. You are advised, however, to consult any further disclosures we make on related subjects in non-convertible debt during the prior three year period;our public announcements and (iv) the date on which we are deemed to be a “large accelerated filer.” We may take advantage of the extended transition period until the first to occur of the date we (i) are no longer an “emerging growth company” or (ii) affirmatively and irrevocably opt out of the extended transition period. Consequently, our financial statements may not be comparable to companies that comply with public company effective dates.SEC filings.

PART I

Item 1. Business

OverviewCOMPANY OVERVIEW

TraQiQ, Inc. (along with its wholly owned subsidiaries, referred to herein as the “Company”(the “Company,” “we,” “our,” or “us”) was incorporated in the State of California on September 9, 2009 as Thunderclap Entertainment, Inc. On July 14, 2017, Thunderclap Entertainment, Inc. changed its name to TraQiQ, Inc. For the years ended December 31, 2022 and 2021, our operations were concentrated in India, Southeast Asia and Latin America, and involved servicing business supply chains with last mile delivery and mobile commerce. We helped businesses in emerging markets leverage the gig economy with the following two-prong approach: (i) we offered our software as a service so our customers could build their own delivery networks and (ii) we offered our network of over 14,000 task workers in India through our Mimo network. In December 2022, we sold a substantial portion of this legacy business. We remain in the technology services and solutions business through our subsidiary, TraQIQ Solutions Inc., and continue to operate our OmniM2M.com website that drives internet of things e-commerce revenue.

On January 5, 2023, we consummated the transactions contemplated by the Asset Purchase Agreement dated as of December 30, 2022 (the “Purchase Agreement”) among Renovare Environmental, Inc. (“REI”) and BioHiTech America, LLC (“BHT” and, together with REI, the “Renovare Sellers”) and us, pursuant to which the Renovare Sellers sold and assigned to us, and we purchased and assumed from the Renovare Sellers, (a) certain assets related to the business of (i) aerobic digestion technology solutions for the disposal of food waste at the point of generation and (ii) data analytics with respect to food waste (collectively, the “Digester Business”) and (b) certain specified liabilities of the Renovare Sellers. We intend for the Digester Business to be one of our principal businesses going forward, and we intend to supplement our current business through the acquisition of complementary businesses.

Going forward, our mission is to reduce the environmental impact of the waste management industry through the development and deployment of cost-effective technology solutions. Our suite of technologies includes on-site biological processing equipment for food waste and proprietary real-time data analytics tools to reduce food waste generation. These proprietary solutions may enable certain businesses and municipalities of all sizes to lower disposal costs while having a positive impact on the environment. When used individually or in combination, we believe that our solutions can reduce the carbon footprint associated with waste transportation, repurpose non-recyclable plastics, and significantly reduce landfill usage. As we continue to expand our waste management business we plan to discontinue or spin off the remaining portions of the legacy business.

REVOLUTION SERIES™ DIGESTERS

The Company currently markets an aerobic digestion technology solution for the disposal of food waste at the point of generation. Its line of Revolution Series Digesters has been described as self-contained, robotic digestive systems that we believe are as easy to install as a standard dishwasher with no special electrical or plumbing requirements. Units range in size depending upon capacity, with the smallest unit approximately the size of a residential washing machine. The digesters utilize a biological process to convert food waste into a liquid that we believe is safe to discharge down an ordinary drain. This process can result in a substantial reduction in costs for customers including cruise lines, restaurants, retail stores, hospitals, hotel/hospitality companies and governmental units by eliminating the transportation and logistics costs associated with food waste disposal. The Company also expects the process reduce the greenhouse gases associated with food-waste transportation and decomposition in landfills that have been linked to climate change. The Company offers its Revolution Series Digesters in several sizes targeting small- to mid-sized food waste generation sites that are often more economical than traditional disposal methods. The Revolution Series Digesters are manufactured and assembled in the United States.

In an effort to expand the capabilities of its digesters, the Company developed a sophisticated Internet of Things (“IoT”) technology platform to provide its customers with transparency into their internal and supply chain waste generation and operational practices. This patented process collects weight related data from the digesters to deliver real-time data that provides valuable information that when analyzed, can improve efficiency, and validate corporate sustainability efforts. The Company provides its IoT platform through a SaaS (“Software as a Service”) model that is either bundled in its rental agreements or sold through a separate annual software license. The Company continues to add new capacity sizes to its line of Revolution Series Digesters to meet customer needs.

Digester Technologies, Markets, Customers and Competition

The Company plans to leverage its existing technology, including our digester’s on-board patented weighing system, by collecting, accumulating, and providing empirical data that can aid in improving the efficiency of the upstream supply chain. By streaming data from the digesters, collecting information from system users and integrating business application data, TraQiQ’s internet-enabled system known as the BioHiTech Cloud^TM can provide necessary data to aid customers in reshaping their purchasing decisions and positively affecting employee behavior. In its simplest form, the BioHiTech Cloud can quantify food waste in a fashion that we do not believe has historically been available. It enables users to understand food waste generation habits and to improve operational efficiencies.

The BioHiTech Cloud data can be used to help educate customers as to where, when and how waste is being created. Tracking and analyzing waste based on creation time, food type, preparation stage, origin of waste or other key metrics may provide a clearer picture of the food waste lifecycle. Our digesters provide significant economic savings and decreases in carbon footprint, and we believe that the addition of the BioHiTech Cloud increases that impact by helping customers to manage inventory more accurately and to improve their preparation practices and staff efficiencies.

The Company believes that its combined offering of technology and digesters provides customers with information that has not been readily available to consumers in the past and that has the potential for improved management and reduction of waste at the point of generation on a real-time basis.

The Company believes that its digester products can remove organic waste from the overcrowded and costly landfills of the world and provide significant benefits to both business organizations and the community including:

In addition to the removal of waste, the Company’s solution also provides real time information and metrics to improve the efficiency of an organization. Such information has not been readily available to consumers in the past. By providing a cloud-based dashboard and mobile application, the BioHiTech Cloud gives real-time visibility to the status of the device itself and provides insight to the efficiencies of the operations of food preparation and consumption of the user. Using cloud technologies, the Company’s systems allow for visibility into the food preparation and consumption processes on an individual, regional, or national level.

The BioHiTech Cirrus™ application allows customers more immediate access to analytical data provided by the Eco-Safe Digester and more efficient monitoring across a number of network-connected devices. The mobile application is available to existing BioHiTech Cloud customers and is available through the iTunes Store and Google Play.

Target Markets

The Company’s target market for its digesters includes any producers of consistent volumes of food waste. As municipalities continue to enact ordinances prohibiting commercial food waste from being disposed of in landfills, the Company intends to focus its efforts on targeting those businesses most affected by such ordinances. Many cities and states have already banned landfill disposal of food waste generated by large, commercial food waste generators, with pending legislation in numerous others. The Company anticipates this trend to continue as sustainability efforts advance.

Customers

Customers for the Company’s digesters are consistent producers of food waste. Industries served include, but are not limited, to the maritime sector as well as retail, healthcare, government, hospitality, education and food service (including traditional restaurants and quick service restaurants). Volume of food waste, as well as traditional waste disposal costs, are the primary drivers of return on investment for customers. The Company sells its products to customers throughout the United States and abroad. We estimate that there are approximately 200,000 potential customers that would benefit from the use of our digesters, which include restaurants, cruise ships, healthcare facilities and local municipalities.

Digester Marketing Strategy

The Company markets through two channels: “reseller” and “in-house” direct sales. Domestic and international resellers are granted a non-exclusive license to sell and market products and services. All resellers are required to purchase all products and consumables directly from the Company. In some cases, we also provide annual service to customers of our resellers at an additional charge.

As regulations continue to be passed regarding the disposal of food waste, we plan to leverage both our internal and external marketing sources to communicate to and inform the target market of the increasing level of need for our products and services.

Competition

There are a small number of companies that distribute products utilizing a similar aerobic digestion methodology as our Revolution Digester, but we believe that they lack our technological depth of data collection, analytics and reporting. With the receipt of a United States patent on our Network Connected Weight Tracking System for a Food Waste Disposal Machine in 2018 and a Canadian patent in 2022, there is a barrier to competitors providing similar technology to their customers. Further, we believe that these competitors do not have a competitive product to the Revolution Series of digesters based on price point, size, throughput, power and plumbing requirements and data collection, analytics and reporting.

Most of these competitors originated in Korea and continue to manufacture their products in Asia and India. One company that we are aware of has claimed to be developing competitive data collection and web enablement, but are unaware of the deployment and functionality of their technology offering. Compared to our competitors, we believe that our machine has the smallest footprint and requires the least amount of water to operate, and we believe it is an industry leader in terms of installations and efficiency. Currently we are not aware of any direct competitor with the ability to capture and deliver real time data.

Alternative technologies or processes to digesters or similar equipment are:

Traditional Composting: Composting has been in existence for many years and has historically been the only option for organics disposal. Composting:

Anaerobic Digestion: Anaerobic digesters are readily used throughout Europe. Anaerobic digestion (“AD”) is the decomposition of organic waste in the absence of oxygen. The beneficial by-product is gas that is used to generate electricity. AD is generally accomplished on a large municipal or commercial scale and traditionally has not been readily available as an “at the source” solution. AD facilities are beginning to be utilized in the United States and are considered to be a viable disposal option for organic waste. While the technology is sound, we believe that AD facilities face various challenges in the United States, although we believe that AD facilities will continue to be developed and will be a part of the total solution for organic waste disposal. Many private equity funds have made investments in companies that own or are permitting AD facilities. The challenges to AD include:

Patents and Trademarks

On May 22, 2018, BioHiTech received a United States patent for its “Network Connected Weight Tracking System for a Food Waste Disposal Machine”, which expires on July 23, 2036. On March 22, 2022, BioHiTech received a Canadian patent for the “Network Connected Weight Tracking System for a Food Waste Disposal Machine”, which expires on January 12, 2035. Both of these patents have been transferred to the Company.

Corporate History

The Company was incorporated in the State of California on September 9, 2009 as Thunderclap Entertainment, Inc. On July 19,14, 2017, Thunderclap Entertainment, Inc. changed its name to TraQiQ, Inc.

On March 18, 2022, the Financial Industry Regulatory Authority, approved a reverse 1-for-8 stock split of the Company’s common stock (the “Reverse Split”). The Reverse Split was effective on March 21, 2022. The common stock and common stock equivalents and the per-share amounts have been retroactively restated in accordance with ASC 855-10-25 and the loss per share figures have been retroactively restated in accordance with ASC 260-10-55-12.

On December 30, 2022, the Company entered into a Share Exchange Agreement (“Share Exchange”an Assignment of Stock (the “MTP Agreement”) with the stockholders of OmniM2M, Inc.Mimo Technologies Private Ltd. (“OmniM2M”MTP”) and TraQiQ Solutions, Inc. dba Ci2i Services, Inc. (formerly Ci2i Services, Inc. – amended November 6, 2019)Lathika Regunathan (“Ci2i”LR”) whereby, pursuant to which the stockholders of OmniM2MCompany sold, assigned and Ci2i agreedtransferred to exchangeLR, and LR purchased from the Company, all of their respective shares, representing 100% ownershipthe Company’s equity interests in OmniM2M and Ci2iMTP in exchange for 12,000,000nominal consideration of $1.00.

On December 30, 2022, the Company entered into an Assignment of Stock (the “TSP Agreement”) with TraQiQ Solutions Private Ltd. (“TSP”) and LR, pursuant to which the Company sold, assigned and transferred to LR and LR purchased from the Company, all of the Company’s equity interests in TSP in exchange for nominal consideration of $1.00.

On December 30, 2022, the Company entered into an Assignment of Units (the “Rohuma Agreement”, and, together with the MTP Agreement and the TSP Agreement, the “Disposition Agreements”) with Rohuma LLC (“Rohuma”) and Happy Kompany LLC (“Happy”) pursuant to which the Company sold, assigned and transferred to Happy, and Happy purchased from the Company, all of the Company’s equity interests in Rohuma, in exchange for nominal consideration of $1.00. Pursuant to the Rohuma Agreement, the Company assumed the liabilities of Rohuma with respect to two loans with Paypal/Loanbuilder in an aggregate principal amount of $155,053 plus any accumulated interest and fees.

On January 5, 2023, the Company, consummated the transactions contemplated by the Purchase Agreement among TraQiQ Environmental, Inc. (“REI”) and BioHiTech America, LLC (“BHT” and, together with REI, the “Renovare Sellers”) and the Company, pursuant to which the Renovare Sellers sold and assigned to the Company, and the Company purchased and assumed from the Renovare Sellers, (a) certain assets related to the business of (i) offering aerobic digestion technology solutions for the disposal of food waste at the point of generation and (ii) data analytics with respect to food waste (collectively, the “Digester Business”) and (b) certain specified liabilities of the Renovare Sellers, including, but not limited to, indebtedness in an amount equal to $3,017,090 (the “Michaelson Debt”) owed to Michaelson Capital Special Finance Fund II, L.P. (“Michaelson”).

In exchange for the assets of the Digester Business, the Company (a) paid the Renovare Sellers an amount equal to $150,000 and (b) issued to REI (i) 1,250,000 shares of the Company’s Series B Preferred Stock, par value $0.0001 (the “Series B Preferred Stock”), and (ii) 15,686,926 shares of the Company’s common stock, respectively.par value $0.0001 (the “Common Stock”), a portion of which is being held in escrow. The OmniM2M ShareholdersPurchase Agreement contained standard representations and the Ci2i Shareholders have each been issued their respective 12,000,000 shares on a pro rata basis based on their respective holdings in OmniM2M and Ci2i in the Share Exchange Agreement. The Share Exchange was accounted for as a reverse merger whereas Ci2i is considered the accounting acquirer and TraQiQ, Inc. is considered the accounting acquiree. For accounting purposes, the acquisition of OmniM2M is recorded at historical cost in accordance with Accounting Standard Codification (“ASC”) 805-50-25-2 as this is considered an acquisition of entities under common control as the management ofwarranties by the Company and OmniM2M control the activitiesRenovare Sellers which, except for fundamental representations, remain in effect for twelve months following the closing date. 1,568,693 shares of the respective companies. PriorCommon Stock portion of the closing consideration were placed into escrow, the release of which is contingent upon a mutual agreement of the parties or January 4, 2024 or if a claim is pending, a final non-appealable order of any court of competent jurisdiction. Additional agreements ancillary to the mergerasset acquisition were also executed, including but not limited to a bill of sale, assignment and assumption agreement, an escrow agreement and a domain name assignment agreement. The Renovare Sellers also agreed that, for a period of five years from closing date, the Sellers would not engage in a business that competes with Ci2ithe Digester Business.

Corporate Information

The Company’s principal executive offices are located at 14205 SE 36th St., Suite 100, Bellevue WA 98006 and acquisitionits telephone number is (425) 818-0560. The Company’s website is https://RecoupEnv.com/. Information contained on our website does not constitute part of OmniM2M,and is not incorporated into this annual report on Form 10-K.

Available Information

The Company’s reports filed with or furnished to the Company was considered a shell company under Rule 12b-2SEC pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”). On December 1, 2017, The Company entered into a Share Purchase Agreement (the “Shareor the Exchange Agreement”)Act, are available, free of charge, on our Investors website at https://recoupenv.com/investors/ as soon as reasonably practicable after we electronically file such material with, Ajay Sikka (“Sikka”), the sole shareholder of Transport IQ, Inc. whereby Sikka agreed to sell all of the shares in TransportIQ, Inc. (“TransportIQ”) in exchange for $18,109, in the form of cancellation of all of the debt of TransportIQ that is owedor furnish it to, the Company.SEC. The transaction became effective upon the execution of the Share Exchange Agreement by SikkaSEC maintains a website at http://www.sec.gov that contains reports, and the Company;other information regarding us and Transport IQ, Inc, is now a wholly-owned subsidiary of the Company. Because TransportIQ was commonly controlled and owned, the transaction was recorded at the historical carrying value of TransportIQ’s assets and liabilities.

On May 16, 2019, the Company entered into a Share Exchange Agreement with Mann-India Technologies Private Ltd., an Indian Corporation (“Mann”). On January 2, 2020, Mann changed its name to TRAQIQ Solutions Private Limited (“TRAQ Pvt Ltd”). Pursuant to the Share Exchange Agreement with Mann, the Company acquired 100% of the shares of Mann and assumed certain net liabilities in exchange for warrants exercisable over a five-years to purchase 1,329,272 shares of common stock of the Company valued at $268. The warrants will be exercisable as follows: (i) 100,771 warrants immediately; (ii) 859,951 warrants exercisable one-year after the date of closing, which was extended to March 31, 2021; and (iii) 368,550 warrants exercisable two-years after the date of closing. This transaction is being recorded as a business combination under ASC 805.

On December 19, 2019, the name of Ci2i Services, Inc was changed to TraQiQ Solutions, Inc.

Effective December 31, 2020, TraQiQ Solutions, Inc. acquired the net assets of OmniM2M and TransportIQ, and then dissolved those entities in January 2021. The value of those transactions were for the assumed liabilities of Omni and TransportIQ, and no cash was exchanged.

TraQiQ Solutions, Inc.

TraQiQ Solutions, Inc. (TraQSol) was formed about over 15 years ago and has most recently been providing technology solutions, predominantly in the business intelligence and data analytics arenas. The Company has been a vendor to Microsoft for over 10 years and has done work with many Microsoft product and business groups, including Microsoft Azure and Microsoft Media planning. Ci2i has worked closely with customers where a wide variety of analytics solutions were built.

TraQSol’s cloud solutions and analytics services comprise software development, program management, project management, and business analytics services.

TRAQIQ Solutions Private Ltd. (fka Mann-India Technologies Pvt Ltd)

Pursuant to the Share Exchange Agreement with TRAQ Pvt Ltd., the Company acquired 100% of the shares of TRAQ Pvt Ltd. and assumed certain net liabilities in exchange for warrants exercisable over a five-years to purchase 1,329,272 shares of common stock of the Company valued at $268. The warrants will be exercisable as follows: (i) 100,771 warrants immediately upon closing; (ii) 859,951 warrants exercisable one-year after the date of closing, extended to March 31, 2021); and (iii) 368,550 warrants exercisable two-years after the date of closing. This transaction is being recorded as a business combination under ASC 805.

Mann-India Private limited was renamed to TraQiQ Solutions Private Limited shortly after acquisition by TraQiQ Inc.

The warrantsother companies that are exercisable in one-year (which were extended to March 31, 2021) and two-years are conditioned upon TRAQ Pvt Ltd. achieving certain revenue figures and pre-tax profit percentages. TRAQ Pvt Ltd. must achieve target revenue of $1.1 million (US$) and pre-tax profit of 25% (US$). Should TRAQ Pvt Ltd. be unable to achieve these criteria, the warrants will be reduced proportionately.

TRAQ Pvt Ltd. was established in May 2000 and is headquartered in New Delhi, India. TRAQ Pvt Ltd. is a leading software development company which,file materials with the advent of technology, has evolved as a mature and fast-growing company committed to provide reliable and cost-effective software solutions across industries all over the world.SEC electronically.

TRAQ Pvt Ltd. has its own experienced team of software developers dedicated towards developing various kinds of customized software.

TraQ Pvt Ltd. has been doing business around the world for over 15 years, with particular emphasis on Latin America and India. The customer list includes large enterprise Finance and Insurance companies across Latin America. The company’s product portfolio has evolved rapidly and now includes enterprise ready solutions for payment processing, mobile wallets, micro lending solutions and digital transformation.

TraQSuite is a distribution platform that allows users to setup task-based networks rapidly – target customers, facilitate/validate transactions, track/manage task workers, manage funds and run the entire distribution network. It includes the following functions:

Targeting

TraQSuite analyzes your customers’ omni-channel behaviors and transactions. Using artificial intelligence technology, the software analyzes online activity and delivers real-time, automated recommendations and personalized content, including such items as personalized, always-updated coupons, funds, tickets and loyalty cards.

Transactions

The digital transactions functions of the software enable users to manage and control finances and virtually store and use financial assets including G2P, B2P, welfare, salary, cards and micro banking like loans and insurance. The software includes back-end payment processing and a front-end digital wallet that allows users with and without bank accounts to buy products and services and pay with their mobile devices, settling transactions across multiple vendors, currencies and locations.

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Last mile

The Last-Mile software module is designed to allow logistics and delivery operations to manage large numbers of workers in multiple locations that are delivering products and services to users. It both tracks the task workers and provides validation for the transactions. The mobile applications enable data sharing and validation and also measure customer satisfaction.

Integration

TraQSuite also includes software designed to integrate the TraQSuite tools with existing business software.

Learning

TraQLearn is eLearning software that includes modules and dashboards for students, teachers and administrators and tools to help with targeted learning.

Item 1A. Risk Factors

Risk Factors Related to Our Business

General Risks Relating to Our Business, Operations of Financial Condition

We have a limited operating history and are subject to the risks encountered by early-stage companies.

Because our operatingOur company has a limited operating history, and you should consider and evaluate our operating prospects in light of the risks and uncertainties frequently encountered by early-stage companies in rapidly evolving markets. For us, these risks include:

● risks that we may not have sufficient capital to achieve our growth strategy;

● risks that we may not develop our product and service offerings in a manner that enables us to be profitable and meet our customers’ requirements;

● risks that our growth strategy may not be successful; and

● risks that fluctuations in our operating results will be significant relative to our revenues.

These risks are described in more detail below. Our future growth will depend substantially on our ability to address these and the other risks described in this section. If we do not successfully address these risks, we will be unable to sustain our business would be significantly harmed.growth to date and you could lose your investment.

Our operating losses and working capital deficiency raise substantial doubt about our ability to continue as a going concern. If we do not continue as a going concern, investors could lose their entire investment.

Our operating losses and working capital deficiency raise substantial doubt about our ability to continue as a going concern. We have an accumulated deficit of $17,522,786 as of December 31, 2022. We may never achieve profitability. If we do not generate sufficient revenues, do not achieve profitability and do not have other sources of financing for our business, we may have to curtail or cease our development plans and operations, which could cause investors to lose the entire amount of their investment.

We are currently in default on several of our debt obligations, and have been in default on other debt obligations in the past year. If we are unable to resolve such defaults or any future defaults, it could have an adverse impact on our business, results of operations and financial condition and is likely to negatively impact the price of our common stock.

We are currently in default on five notes totaling $409,225 of debt (the “Outstanding Debt”). In addition, there was an additional $400,000 that was previously in default, but has subsequently been cured. Upon an event of default under the Outstanding Debt, the holders of such debt may exercise all rights and remedies available under the terms of the notes or applicable laws. We are currently in discussions with holders of the Outstanding Debt regarding possible solutions for the payment of the Outstanding Debt, including the possible extension of the maturity date of the Outstanding Debt. However, there can be no assurance that our discussions will be successful and if we are not successful in finding an acceptable resolution to the existing default or the impending event of default, the holders of the Outstanding Debt will be able to seek judgement for the full amount due and may seek to foreclose on our assets. If this occurs, any such remedy will have a material adverse effect on our business, results of operations and financial condition and is likely to negatively impact the price of our common stock.

If we are unable to transition to our new business, integrate our acquisitions or manage our anticipated post-Share Exchange Agreementthe growth of those companies effectively, our business could be adversely affected.

We anticipate that a significant expansionIn the past, our business has grown mostly through the acquisition of our operations and addition of operating subsidiaries, including oneother companies, both in the United States and new personnelin India. Going forward, we intend to focus on environmental services by acquiring cash-flow positive companies in that segment. We expect that our primary focus will be requiredto acquire companies in all areasthe environmental services located in the United States. however, if we are unable to transition to the environmental services business or integrate our acquisitions effectively or efficiently, or fail to manage our growth, this could materially and adversely affect our business and results of operations. Therefore, our operations in order to implement our post-Share Exchange business plan. Our future operating results depend to a large extent on our ability to manage this transition, expansion and growth successfully. For usIn addition, to continue tosuccessfully manage such growth, we must put in placewill need to implement legal and accounting systems, and implement human resource management and other tools. We have taken preliminary stepstools, and if we are unable to putdo so this structure in place. However, there is no assurance that we will be able to successfully manage this anticipated rapid growth. A failure to manage our growth effectively could also materially and adversely affect our ability to market our crowd funding platformbusiness and results of operations.

Post-acquisition of the Renovare business, we face substantial competition in multiple venues.

Increasing competition within our emergingthe waste services industry, could have an impact onand if we cannot successfully compete in the marketplace, our business, prospects.financial condition and results of operations may be materially adversely affected.

The Industrial Internetwaste services industry is highly competitive, has undergone a period of Things market is an emerging industry whereconsolidation and requires substantial labor and capital resources. Some of the markets in which we compete are served by one or more large, established companies, that are more well-known and better financed than we are. Intense competition exists not only to provide services to customers, but also to develop new products and services and to acquire other businesses within each market. Some of our competitors are entering the market frequently. These competing companies may have significantly greater financial and other resources than we havedo.

In our waste disposal markets, we also compete with operators of alternative disposal and recycling facilities. We also increasingly compete with companies that seek to use waste as feedstock for alternative uses. Public entities may have been developingfinancial advantages because of their products and services longer than we have been developing ours. Although we anticipate that our portfolio of products and related revenue stream sources are broad, increasing competition may have a negative impact on our profit margins.

Our business is subjectability to risks generally associated with fluctuating economic tendencies in the capital markets.

The demand for our products can change over time due to fluctuations in the global and local economiescharge user fees or similar charges, impose tax revenues, access tax-exempt financing and, in the related capital requirements of small and medium-sized enterprises. These fluctuations could negatively impact our future revenue streams.

We may not be ablesome cases, utilize government subsidies. If we are unable to adequately protect our proprietary technology, anddistinguish ourselves from our competitors may be ableand are unable to offer similar productscompete successfully, our business, financial condition and services, which would harm our competitive position.

Our success depends in part upon our proprietary technology. We rely primarily on trademark, copyright, service mark and trade secret laws, confidentiality procedures, license agreements and contractual provisions to establish and protect our proprietary rights. Despite these precautions, third parties could copy or otherwise obtain and use our technology without authorization or develop similar technology independently. We also pursue the registrationresults of our domain names, trademarks, and service marks in the United States. We cannot assure you that the protection of our proprietary rightsoperations will be adequate or that our competitors will not independently develop similar technology, duplicate our products and services or design around any intellectual property rights we hold.materially adversely affected.

If third parties claim that we infringe their intellectual property, it may result in costly litigation.

We cannot assure you that thirdThird parties will notmay claim our current or future products infringe their intellectual property rights. Any such claims, with or without merit, could cause costly litigation that could consume significant management time. As the number of product and services offerings in the crowd funding marketartificial intelligence, mobile payments and task worker markets increases and functionalities increasingly overlap, companies such as ourswe may become increasingly subject to infringement claims. Such claims also might require us to enter into royalty or license agreements. If required, we may not be able to obtainenter into such royalty or license agreements or obtain them on terms acceptable to us.

Pandemics and other public health emergencies, including the COVID-19 pandemic, or fear thereof, could adversely impact our business, operations and financial condition.

Occurrences of epidemics or pandemics, depending on their scale, may cause different degrees of damage to national and local economies. Global economic conditions may be disrupted by widespread outbreaks of infectious or contagious diseases, including any resurgence or new variants of COVID-19. Pandemics and other public health emergencies, or fear thereof, have in the past caused and may in the future cause substantial changes in consumer behavior and restrictions on business and individual activities, which have led, and may lead to reduced economic activity. These effects could be exacerbated or prolonged by the emergence of variants. Extraordinary actions taken by international, federal, state and local public health and governmental authorities to contain and combat pandemics in regions throughout the world, including travel bans, quarantines, “stay-at-home” orders and similar mandates for many individuals and businesses to substantially restrict daily activities have had and could in the future have an adverse effect on our financial condition and results of operations.

We maywill need additional financing. Any limitation on our ability to obtain such additional financing could have a material adverse effect on our business, financial condition and results of operations.

Although we expect that the proceeds from the offering we completed will be sufficientWe may need to implement our business plan, there can be no assurance that we will not require additional capital. The raising ofraise additional capital, which we may be unable to obtain on favorable or reasonable terms, or at all. If we raise additional capital, it could result in dilution to our stockholders. In addition, there is no assurance that we will be able to obtain additional capital if we need it, or that if available, it will be available to us on favorable or reasonable terms. Any limitation on our ability to obtain additional capital as and when needed could have a material adverse effect on our business, financial condition and results of operations.

If we fail to maintain proper and effective internal controls, our ability to produce accurate and timely financial statements could be impaired, which could harm our operating results, our ability to operate our business and investors’ views of us.

Ensuring that we have adequate internal financial and accounting controls and procedures in place so that we can produce accurate financial statements on a timely basis is a costly and time-consuming effort that will need to be evaluated frequently.effort. Section 404 of the Sarbanes-Oxley Act requires public companies to conduct an annual review and evaluation of their internal controls. The Company’s internal control over financial reporting and disclosure controls and procedures were ineffective as of December 31, 2022. Our failure to maintain the effectiveness of our internal controls in accordance with the requirements of the Sarbanes-Oxley Act couldhas had and may in the future have a material adverse effect on our business. We could lose investor confidence in the accuracy and completeness of our financial reports, which could have an adverse effect on the price of our common stock. In addition, if our efforts to comply with new or changed laws, regulations, and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to practice, regulatory authorities may initiate legal proceedings against us and our business may be harmed.

Risks Relating to our SecuritiesCommon Stock

ThereOur common stock is concentrated among a two large stockholders, whose interests may conflict with those of investors.

As of March 24, 2023, our Chairman of the Board of Directors, Chief Executive Officer and President, Ajay Sikka, beneficially owns shares representing approximately 35% of our common stock, and Renovare Environmental, Inc. beneficially owns shares representing approximately 42% of our common stock. Each, therefore, is in a position to exercise substantial influence over the outcome of all matters submitted to a vote of our stockholders, including the election of directors.

We may be unsuccessful in having our common stock listed on the Nasdaq Stock Market.

We have applied to have our common stock listed on the Nasdaq Capital Market under the symbol “TRIQ.” Our application has not now,yet been approved, and there may not ever be, an active market for the Company’s Common Stock.

TraQiQ’s stock is trading on the OTC exchange. However, trading activity is very limited. This limited liquidity could present a number of different challenges in the future.

Our stock trading may be extremely sporadic. For example, several days may pass before any shares may be traded. As a result, an investor may find it difficult to dispose of, or to obtain accurate quotations of the price of, our Common Stock. Accordingly, investors must assume they may have to bear the economic risk of an investment in our Common Stock for an indefinite period of time. There can be no assurance that a more active market for the Common Stock will develop, or if one should develop, there is no assurance that it will be sustained. This severely limitsapproved. If it is approved and our common stock is listed, we may not be able to meet the continued listing requirements of the Nasdaq Stock Market, which require, among other things, a minimum closing price of our common stock and a minimum market capitalization. If we are unable to satisfy the requirements of the Nasdaq Capital Market for continued listing, our common stock would be subject to delisting from that market, and we might or might not be eligible to list our shares on another Nasdaq market. A delisting of our common stock from the Nasdaq Capital Market, particularly if we did not qualify to be listed on another Nasdaq market, could negatively impact us by, among other things, reducing the liquidity of our Common Stock and would likely have a material adverse effect on the market price of our Common Stock andcommon stock.

There is currently not an active liquid trading market for the Company’s common stock.

Our common stock is quoted on the OTC Markets QB tier under the symbol “TRIQ”. However, there is currently no regular active trading market in our abilitycommon stock. Although there are periodic volume spikes from time to raise additional capital.

We cannot assure you thattime, a consistent, active trading market may not develop. Whether or not in the Common Stock will become liquid or that it will be listed on a securities exchange.

Untilfuture our Common Stockcommon stock is listed on a national securities exchange such as the New York Stock Exchange or the Nasdaq StockCapital Market, if ever,there is no assurance an active trading market for our common stock will develop or be sustained or that we expect our Common Stock towill remain eligible for quotationcontinued listing on the OTC Markets. InNasdaq Capital Market. If an active market for our common stock develops, there is a significant risk that venue, however, an investorour stock price may find it difficultfluctuate in the future in response to obtain accurate quotations asany of the following factors, some of which are beyond our control:

You may experience dilution of your ownership interest due to the market valuefuture issuance of our Common Stock. In addition, if we failsecurities.

We are currently authorized to meetissue 300,000,000 shares of common stock and 10,000,000 shares of preferred stock. We may issue additional shares of common stock or other securities that are convertible into or exercisable for common stock in future public offerings or private placements for capital raising purposes or for other business purposes, or upon conversion or exercise of outstanding options, warrants, or preferred stock. The future issuance of a substantial amount of common stock, or the criteria set forth in SEC regulations, various requirements would be imposed by law on broker-dealers who sellperception that such an issuance could occur, could adversely affect the prevailing market price of our securities to personscommon shares. A decline in the public market. Consequently, such regulations may deter broker-dealers from recommending or sellingprice of our Common Stock, which may further affect the liquidity of the Common Stock. This would alsocommon stock could make it more difficult for us to raise capital.funds through future offerings of our common stock or securities convertible into common stock.

Our board of directors may issue and fix the terms of shares of our preferred stock without stockholder approval, which could adversely affect the voting power of holders of our common stock or any change in control of our company.

Our Commonarticles of incorporation authorize the issuance of up to 10,000,000 shares of “blank check” preferred stock, with such designation rights and preferences as may be determined from time to time by the board of directors. Of these authorized shares, 220,135 Series B Preferred Stock are currently outstanding. Our board of directors is empowered, without stockholder approval, to create additional series and issue additional shares of preferred stock with dividend, liquidation, conversion, voting or other rights which could adversely affect the voting power or other rights of the holders of our common stock. In the event of such issuances, the preferred stock could be used, under certain circumstances, as a method of discouraging, delaying or preventing a change in control of our company.

We do not expect to pay dividends.

We do not anticipate that we will declare or pay any dividends in the foreseeable future. Consequently, you will only realize an economic gain on your investment in our common stock if the price appreciates, which may not occur. You should not purchase our common stock expecting to receive cash dividends. Since we do not pay dividends, and if an active trading market for our shares does not develop, you may not have any manner to liquidate or receive any payment on your investment. Therefore, our failure to pay dividends may cause you to not see any return on your investment even if we are successful in our business operations. In addition, because we do not pay dividends we may have trouble raising additional funds which could affect our ability to expand our business operations.

Our common stock is subject to the “penny stock” rules of the SEC and the trading market in the securities is limited, which makes transactions in the stock cumbersome and may reduce the value of an investment in the stock.

TheOur common stock is subject to the “penny stock” rules of the SEC because it has adopted Rule 15g-9 which establishes the definition of a “penny stock,” for the purposes relevant to us, as any equity security that hashistorically had a market price of less than $5.00 per share or with an exercise price of less than $5.00 per share, subject to certain exceptions. For any transaction involving a penny stock, unless exempt, the rules require:

In orderIf we are successful in our application to approve a person’s accountlist our stock for transactions in penny stocks,trading on the broker or dealer must:

The broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the SEC relatingstock. However, if we cease to obtain and maintain that listing, we may again be subject to the penny stock market, which, in highlight form sets forth:

rules. Generally, brokers may be less willing to execute transactions in securities subject to the “penny stock”penny stock rules. ThisIn addition, according to the SEC, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. These factors may make it more difficult for investors to dispose of our common stock and cause a decline in the market value of stock.

Disclosure also hasour common stock if it were to be made about the risks of investing in penny stocks in both public offerings and in secondary trading and about the commissions payablebecome subject to both the broker-dealer and the registered representative, current quotations for the securities and the rights and remedies available to an investor in cases of fraud in penny stock transactions. Finally, monthly statements have to be sent disclosing recent price information for the penny stock heldrules.

If we are unable to successfully compete in the account and information on the limited market in penny stocks.

The price of our Common Stock may become volatile, which could lead to losses by investors and costly securities litigation.

The trading price of our Common Stock is likely to be highly volatile and could fluctuate in response to factors such as:

● actual or anticipated variations in our operating results;

● announcements of developments by us or our competitors;

● announcements by us or our competitors of significant acquisitions, strategic partnerships, joint ventures or capital commitments;

● adoption of new accounting standards affecting our Company’s industry;

● additions or departures of key personnel;

● sales of our Common Stock or other securities in the open market; and

● other events or factors, many of which are beyond our control.

The stock market is subject to significant price and volume fluctuations. In the past, following periods of volatility in the market price of a company’s securities, securities class action litigation has often been initiated against the company. Litigation initiated against us, whether or not successful, could result in substantial costs and diversion of our management’s attention and resources, which could harmmarketplace, our business and financial condition.condition could be materially adversely affected.

The waste services industry is subject to extensive and rapidly-changing government regulation. Changes to one or more of these regulations could cause a decrease in the demand for our products and services.

Stringent government regulations at the federal, state and local level in the U.S. have a substantial impact on the waste industry and compliance with such regulations is costly. A large number of complex laws, rules, orders and interpretations govern environmental protection, health, safety, land use, zoning, transportation and related matters. Among other things, governmental regulations and enforcement actions may restrict operations within the waste industry and may adversely affect our financial condition, results of operations and cash flows.

We believe the demand for our digester product is created directly in response to recent laws and regulation prohibiting certain large, commercial food manufacturers, retailers and hospitality enterprises from discarding food wastes to landfills. Our digesters are just one solution for these businesses to comply with these regulations and other regulations. If there was a change to or elimination of these regulations, the demand for our product would almost certainly be greatly reduced and our income would, as a result, be adversely affected.

Currently, the microorganisms we employ in our digesters are approved for use to reduce food waste and to be poured into conventional sewer systems. However, if it was determined that we could no longer use these microorganisms, there is no guarantee that we could develop a replacement process to assure that we could continue to sell our products. Also, we would likely face claims from current customers were they unable to use our digesters for food waste disposal.

We may also incur the costs of defending against environmental litigation brought by governmental agencies and private parties. We may be in the future a defendant in lawsuits brought by parties alleging environmental damage, personal injury, and/or property damage, or which seek to overturn or prevent authorization of our products, all of which may result in us incurring significant liabilities.

We domay not anticipate dividendsbe able to identify suitable acquisition candidates. If we identify suitable acquisition candidates, we may be paidunable to successfully negotiate acquisitions at a price or on terms and conditions acceptable to us, and we may be unable to obtain the necessary regulatory approvals to complete potential acquisitions. If executed, acquisitions may not improve our business or may pose significant risks.

We may in the future, make acquisitions in order to acquire complementing or expanding our business, including developing additional disposal products and complementary services. We may not be able to identify suitable acquisition candidates. If we identify suitable acquisition candidates, we may be unable to successfully negotiate acquisitions at a price or on terms and conditions acceptable to us, including as a result of the limitations imposed by our debt obligations. Further, we may be unable to obtain the necessary regulatory approval, if required, to complete potential acquisitions. We may be unable to complete these transactions and, if executed, these transactions may not improve our business or may pose significant risks and could have a negative effect on our Common Stock,operations.

Our ability to achieve the benefits of any potential future acquisition, including cost savings and investorsoperating efficiencies, depends in part on our ability to successfully integrate the operations of such acquired businesses with our operations. The integration of acquired businesses and other assets may loserequire significant management time and resources that would otherwise be available for the entire amountongoing management of our existing operations. In addition, to the extent any future acquisitions are completed, we may be unsuccessful in integrating acquired companies or their investment.operations, or if integration is more difficult than anticipated, we may experience disruptions that could have a material adverse impact on future profitability. Some of the risks that may affect our ability to integrate, or realize any anticipated benefits from, acquisitions include:

We rely on highly skilled personnel and, if we are unable to retain or motivate key personnel or hire additional qualified personnel, we may not be able to grow effectively.

Cash dividends have never been declared or paidOur performance is largely dependent on the Common Stock,talents and efforts of highly skilled individuals. Our future success depends on our continuing ability to identify, hire, develop, motivate, and retain highly skilled personnel for all areas of our organization. Our continued ability to compete effectively depends on our ability to retain and motivate existing employees. Due to our reliance upon its skilled professionals and laborers, the failure to attract, integrate, motivate, and retain current and/or additional key employees could have a material adverse effect on our business, operating results and financial condition.

If we do not anticipate suchfail to manage growth or to prepare for product scalability and integration effectively, it could have an adverse effect on our employee efficiency, product quality, working capital levels and results of operations.

Any significant growth in the market for our products or our entry into new markets may require an expansion of our employee base for managerial, operational, financial, and other purposes. During any period of growth, we may face problems related to our operational and financial systems and controls, including quality control and delivery and service capacities. We would also need to continue to expand, train and manage our employee base. Continued future growth will impose significant added responsibilities upon the members of management to identify, recruit, maintain, integrate, and motivate new employees.

Aside from increased difficulties in the management of human resources, we may need increased liquidity to finance the expansion of our existing business, the development of new products, and the hiring of additional employees. For effective growth management, we will be required to continue improving our operations, management, and financial systems and controls. Our failure to manage growth effectively may lead to operational and financial inefficiencies that will have a declaration or payment for the foreseeable future. We expect to use future earnings, if any, to fund business growth. Therefore, stockholders will not receive any funds absent a sale of their shares.negative effect on our profitability. We cannot assure stockholdersinvestors that we will be able to timely and effectively meet that demand and maintain the quality standards required by our existing and potential customers.

Our management team may not be able to successfully implement our business strategies.

If our management team is unable to execute on its business strategies, then our development, including the establishment of revenues and our sales and marketing activities, would be materially and adversely affected. In addition, we may encounter difficulties in effectively managing the budgeting, forecasting and other process control issues presented by any future growth. We may seek to augment or replace members of our management team or we may lose key members of our management team, and we may not be able to attract new management talent with sufficient skill and experience.

If we are unable to retain key executives and other key affiliates, our growth could be significantly inhibited, and our business harmed with a positive returnmaterial adverse effect on their investment when they sell their shares, nor canour business, financial condition and results of operations.

Our success is, to a certain extent, attributable to the management, sales and marketing, and operational and technical expertise of certain key personnel. Ajay Sikka, our Chief Executive Officer and Chief Financial Officer, performs key functions in the operation of our business. The loss of Mr. Sikka could have a material adverse effect upon our business, financial condition, and results of operations. If we assure that stockholders will not lose the entire amountservices of their investment.

If securities analysts doany senior management, we may not initiate coveragebe able to locate suitable or continuequalified replacements and may incur additional expenses to cover our Common Stock or publish unfavorable research or reports aboutrecruit and train new personnel, which could severely disrupt our business thisand prospects.

Our financial results may havenot meet the expectations of investors and may fluctuate because of many factors and, as a negativeresult, investors should not rely on our revenue and/or financial projections as indicative of future results.

Fluctuations in operating results or the failure of operating results to meet the expectations investors may negatively impact the value of our securities. Operating results may fluctuate due to a variety of factors that could affect revenues or expenses in any particular quarter. Fluctuations in operating results could cause the value of our securities to decline. Investors should not rely on revenue or financial projections or comparisons of results of operations as an indication of future performance. As a result of the factors listed below, it is possible that in future periods results of operations may be below the expectations of investors. This could cause the market price of our common stock.

The trading market for the Common Stock will depend on the researchsecurities to decline and reportsnegatively impact our ability to raise debt and capital. Factors that securities analysts publish about our business and the Company. We do not have any control over these analysts. There is no guarantee that securities analysts will cover the Common Stock. If securities analysts do not cover the Common Stock, the lack of research coverage may adversely affect its market price. If we are covered by securities analysts, and our stock is the subject of an unfavorable report, our stock price and trading volume would likely decline. If one or more of these analysts ceases to cover the Company or fails to publish regular reports on the Company, we could lose visibility in the financial markets, which could cause our stock price or trading volume to decline.

You may experience dilution of your ownership interests because of the future issuance of additional shares of the Common Stock.

In the future, we may issue our authorized but previously unissued equity securities, resulting in the dilution of the ownership interests of our present stockholders and the purchasers of Common Stock offered hereby. We are currently authorized to issue an aggregate of 310,000,000 shares of capital stock consisting of 300,000,000 shares of Common Stock, par value $0.0001, and 10,000,000 shares of preferred stock, par value $0.0001, with preferences and rights to be determined by our Board of Directors. We authorized 50,000 shares of our Preferred Stock as Series A and 50,000 shares are issued and outstanding. As of the date of this Report, there are 30,830,237 shares of our Common Stock issued and outstanding and 50,000 shares of our Series A Preferred Stock issued and outstanding. We may also issue additional shares of our Common Stock or other securities that are convertible into or exercisable for our Common Stock in connection with hiring or retaining employees, future acquisitions, future sales of securities for capital raising purposes, or for other business purposes. The future issuance of any such additional shares of our Common Stock may create downward pressure on the trading price of the Common Stock. There can be no assurance that we will not be required to issue additional shares, warrants or other convertible securities in the future in conjunction with any capital raising efforts, including at a price (or exercise prices) below the price at which shares of the Common Stock will be initially quoted on the OTC Markets.

Pandemics including COVID-19 may adversely affect our business.operating results include:

The recent unprecedented events related to COVID-19, the disease caused by the novel coronavirus (SARS-CoV-2), have had significant health, economic, and market impacts and may have short-term and long-term adverse effects on our business that we cannot predict as the global pandemic continues to evolve. The extent and effectiveness of responses by governments and other organizations also cannot be predicted.

Our ability to access the capital markets and maintain existing operations is unknown during the COVID-19 pandemic. Any such limitation on available financing and how we conduct business with our customers and vendors would adversely affect our business.

Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

We doTraQiQ does not own or lease any property. As of the date of this annual report, we lease space for our main corporate office atOur mailing address is 14205 S.E. 36th St., Suite 100, Bellevue, WA 98006. We will consider leasing additional office space after our public listing is completed.

Our subsidiary, TRAQ Pvt Ltd. also leases space in India that expires in October 2027.

Item 3. Legal Proceedings

From time to time the Company is a party to variouswe are involved in claims and legal or administrative proceedings arisingactions that arise in the ordinary course of our business. While any litigation contains an element of uncertainty, we have no reason to believe thatWe cannot predict the outcome of such proceedingsany litigation or suit to which we are a party. However, we do not believe that an unfavorable decision of any of the current claims or legal actions against us, individually or in the aggregate, will have a material adverse effect on theour financial condition orposition, results of operations, of the Company.liquidity or capital resources.

Item 4. Mine Safety Disclosures

Not applicable.

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

Our common stock is not listed on any securities exchange, and effective October 27, 2020 is quoted on the OTC QB Market under the symbol “TRIQ.” Because our common stock is not listed on a securities exchange and itsThe OTC QB market quotations on OTC are limited and sporadic, there is currently no established public trading market for our common stock.

The following table reflects the high closing sales information for our common stock for each fiscal quarter during the fiscal year ended December 31, 2020. This information was obtained from OTC and reflectsreflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.transactions

Holders of our Common Stock

As of March 17, 2021,30, 2023, there were approximately 66100 stockholders of record of our common stock. This number does not include shares held by brokerage clearing houses, depositories or others in unregistered form. The stock transfer agent for our securities is Equity Stock Transfer.

Dividends

The Company has never declared or paid any cash dividends on its common stock. The Company currently intends to retain future earnings, if any, to finance the expansion of its business. As a result, the Company does not anticipate paying any cash dividends in the foreseeable future.

Unregistered Sales of Equity Securities

On October 19, 2020,December 30, 2022, the Company granted optionsexchanged outstanding debt securities of the Company with unpaid principal and interest in the amount of $5,786,474 for 1,750,00013,002,729 shares of its common stock underand 220,135 shares of its Series B Preferred stock. These transactions were with Evergreen Capital Management, LLC (“Evergreen”), the Company’s stock option planChief Executive Officer, and other individuals who are related to Ajay Sikka at an option pricethe Company’s Chief Executive Officer. These sales of $0.0055 withoutsecurities were consummated pursuant to the exemption from registration underin Section 3(a)(9) of the Securities Act of 1933, as amended, because it was exclusively with existing security holders of the Company and 2,180,000 options at a strike priceno commission or other remuneration was given or paid, directly or indirectly, for soliciting such exchange. The sales were also exempt under Section 4(a)(2) of $0.005the Securities Act of 1933, as amended, as all of the purchasers were sophisticated in business and investment matters.

On January 5, 2023, the Company issued 150,000 shares of the Company’s common stock to other directors in the United States as well as employees in India. See Item 12 for additional information. Each of theseGreg Rankich. These sales of securities were consummated pursuant to the exemption from registration in Section 3(a)(9) of the Securities Act of 1933, as amended, because it was exclusively with existing security holders of the Company and no commission or other remuneration was given or paid, directly or indirectly, for soliciting such exchange. The sales were also exempt under Section 4(a)(2) of the Securities Act of 1933, as amended, as the purchaser was sophisticated in business and investment matters.

Between October 1, 2022 and December 31, 2022, 394,219 options were exercised into 394,219 shares of the Company’s common stock for $0.0001. These sales of securities were consummated pursuant to the exemption from registration in Section 4(a)(2) of the Securities Act of 1933, as amended. The United States based grantees areCompany determined that all of the purchasers were sophisticated in business and investment matters.

On December 1, 2022, the Company issued 168,750 shares of its common stock in exchange for vested restricted stock awards. These sales of securities were consummated pursuant to the exemption from registration in Section 4(a)(2) of the Securities Act of 1933, as amended. The Company determined that all of the purchasers were sophisticated in business and investment matters.

Between April 1, 2022 and June 30, 2022, the Company issued 179,506 shares of its common stock in exchange for warrants. These sales of securities were consummated pursuant to the exemption from registration in Section 4(a)(2) of the Securities Act of 1933, as amended. The Company determined that all of the purchasers were sophisticated in business and investment matters.

Between October 1, 2022 and December 31, 2022, the Company issued 43,803 shares of its common stock in exchange for warrants. These sales of securities were consummated pursuant to the exemption from registration in Section 4(a)(2) of the Securities Act of 1933, as amended. The Company determined that all of the purchasers were sophisticated in business and investment matters.

Through December 31, 2022, the Company issued 223,309 shares of its common stock in exchange for warrants. These sales of securities were consummated pursuant to the exemption from registration in Section 4(a)(2) of the Securities Act of 1933, as amended. The Company determined that all of the purchasers were sophisticated in business and investment matters.

On July 5, 2022, the Company entered into a 11% OID Senior Secured Promissory Note with GS Capital Partners LLC (the “GS Capital”) in the amount of $144,000 (includes $14,000 of Original Issue Discount). The GS Capital note has a maturity of twelve months and accrues interest at a rate of 12% per year. The conversion price is equal to 86% of the lowest trading price of the Company’s common stock for the 12 Trading Days immediately preceding the delivery of a notice of conversion. In accordance with the terms of the note, the Company issued 3,000 shares of common stock as a commitment fee. These securities were issued as a private offering and sale pursuant to the exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended. The Company determined that GS Capital Partners, LLC was sophisticated in business and investment matters.

Item 6. Selected Financial Data.

As a smaller reporting company, the Company is not required to file selected financial data.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The discussion and analysis of our financial condition and results of operations are based on our financial statements, which we have prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported revenues and expenses during the reporting periods. On an ongoing basis, we evaluate estimates and judgments, including those described in greater detail below. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

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 TraQiQ, Inc.

Overview

Overview

TraQiQ, Inc. (along

The Company currently markets an aerobic digestion technology solution for the disposal of food waste at the point of generation. Its line of Revolution Series Digesters has been described as self-contained, robotic digestive systems that we believe are as easy to install as a standard dishwasher with no special electrical or plumbing requirements. Units range in size depending upon capacity, with the smallest unit approximately the size of a residential washing machine. The digesters utilize a biological process to convert food waste into a liquid that we believe is safe to discharge down an ordinary drain. This process can result in a substantial reduction in costs for customers including cruise lines, restaurants, retail stores, hospitals, hotel/hospitality companies and governmental units by eliminating the transportation and logistics costs associated with food waste disposal. The Company also expects the process reduce the greenhouse gases associated with food-waste transportation and decomposition in landfills that have been linked to climate change. The Company offers its wholly owned subsidiaries, referredRevolution Series Digesters in several sizes targeting small- to hereinmid-sized food waste generation sites that are often more economical than traditional disposal methods. The Revolution Series Digesters are manufactured and assembled in the United States.

In an effort to expand the capabilities of its digesters, the Company developed a sophisticated Internet of Things (“IoT”) technology platform to provide its customers with transparency into their internal and supply chain waste generation and operational practices. This patented process collects weight related data from the digesters to deliver real-time data that provides valuable information that when analyzed, can improve efficiency, and validate corporate sustainability efforts. The Company provides its IoT platform through a SaaS (“Software as the “Company”a Service”) model that is either bundled in its rental agreements or sold through a separate annual software license. The Company continues to add new capacity sizes to its line of Revolution Series Digesters to meet customer needs.

The Company was incorporated in the State of California on September 9, 2009 as Thunderclap Entertainment, Inc. On July 14, 2017, Thunderclap Entertainment, Inc. changed its name to TraQiQ, Inc.

On July 19, 2017,March 18, 2022, the Financial Industry Regulatory Authority, approved a reverse 1-for-8 stock split of the Company’s common stock (the “Reverse Split”). The Reverse Split was effective on March 21, 2022. The common stock and common stock equivalents and the per-share amounts have been retroactively restated in accordance with ASC 855-10-25 and the loss per share figures have been retroactively restated in accordance with ASC 260-10-55-12.

On December 30, 2022, the Company entered into a Share Exchange Agreement (“Share Exchange”an Assignment of Stock (the “MTP Agreement”) with the stockholders of OmniM2M, Inc.Mimo Technologies Private Ltd. (“OmniM2M”MTP”) and TraQiQ Solutions, Inc. dba Ci2i Services, Inc. (formerly Ci2i Services, Inc. – amended November 6, 2019)Lathika Regunathan (“Ci2i”LR”) whereby, pursuant to which the stockholders of OmniM2MCompany sold, assigned and Ci2i agreedtransferred to exchangeLR, and LR purchased from the Company, all of their respective shares, representing 100% ownershipthe Company’s equity interests in OmniM2M and Ci2iMTP in exchange for 12,000,000nominal consideration of $1.00.

On December 30, 2022, the Company entered into an Assignment of Stock (the “TSP Agreement”) with TraQiQ Solutions Private Ltd. (“TSP”) and LR, pursuant to which the Company sold, assigned and transferred to LR and LR purchased from the Company, all of the Company’s equity interests in TSP in exchange for nominal consideration of $1.00.

On December 30, 2022, the Company entered into an Assignment of Units (the “Rohuma Agreement”, and, together with the MTP Agreement and the TSP Agreement, the “Disposition Agreements”) with Rohuma LLC (“Rohuma”) and Happy Kompany LLC (“Happy”) pursuant to which the Company sold, assigned and transferred to Happy, and Happy purchased from the Company, all of the Company’s equity interests in Rohuma, in exchange for nominal consideration of $1.00. Pursuant to the Rohuma Agreement, the Company assumed the liabilities of Rohuma with respect to two loans with Paypal/Loanbuilder in an aggregate principal amount of $155,053 plus any accumulated interest and fees.

On January 5, 2023, the Company, consummated the transactions contemplated by the Purchase Agreement among TraQiQ Environmental, Inc. (“REI”) and BioHiTech America, LLC (“BHT” and, together with REI, the “Renovare Sellers”) and the Company, pursuant to which the Renovare Sellers sold and assigned to the Company, and the Company purchased and assumed from the Renovare Sellers, (a) certain assets related to the business of (i) offering aerobic digestion technology solutions for the disposal of food waste at the point of generation and (ii) data analytics with respect to food waste (collectively, the “Digester Business”) and (b) certain specified liabilities of the Renovare Sellers, including, but not limited to, indebtedness in an amount equal to $3,017,090 (the “Michaelson Debt”) owed to Michaelson Capital Special Finance Fund II, L.P. (“Michaelson”).

In exchange for the assets of the Digester Business, the Company (a) paid the Renovare Sellers an amount equal to $150,000 and (b) issued to REI (i) 1,250,000 shares of the Company’s Series B Preferred Stock, par value $0.0001 (the “Series B Preferred Stock”), and (ii) 15,686,926 shares of the Company’s common stock, respectively.par value $0.0001 (the “Common Stock”), a portion of which is being held in escrow. The OmniM2M ShareholdersPurchase Agreement contained standard representations and the Ci2i Shareholders have each been issued their respective 12,000,000 shares on a pro rata basis based on their respective holdings in OmniM2M and Ci2i in the Share Exchange Agreement. The Share Exchange was accounted for as a reverse merger whereas Ci2i is considered the accounting acquirer and TraQiQ, Inc. is considered the accounting acquiree. For accounting purposes, the acquisition of OmniM2M is recorded at historical cost in accordance with Accounting Standard Codification (“ASC”) 805-50-25-2 as this is considered an acquisition of entities under common control as the management ofwarranties by the Company and OmniM2M control the activitiesRenovare Sellers which, except for fundamental representations, remain in effect for twelve months following the closing date. 1,568,693 shares of the respective companies. PriorCommon Stock portion of the closing consideration were placed into escrow, the release of which is contingent upon a mutual agreement of the parties or January 4, 2024 or if a claim is pending, a final non-appealable order of any court of competent jurisdiction. Additional agreements ancillary to the merger with Ci2iasset acquisition were also executed, including but not limited to a bill of sale, assignment and acquisitionassumption agreement, an escrow agreement and a domain name assignment agreement. The Renovare Sellers also agreed that, for a period of OmniM2M,five years from closing date, the Company was considered a shell company under Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). On December 1, 2017, The Company entered into a Share Purchase Agreement (the “Share Exchange Agreement”) with Ajay Sikka (“Sikka”), the sole shareholder of Transport IQ, Inc. whereby Sikka agreed to sell all of the sharesSellers would not engage in TransportIQ, Inc. (“TransportIQ”) in exchange for $18,109, in the form of cancellation of all of the debt of TransportIQ that is owed to the Company. The transaction became effective upon the execution of the Share Exchange Agreement by Sikka and the Company; and Transport IQ, Inc, is now a wholly-owned subsidiary of the Company. Because TransportIQ was commonly controlled and owned, the transaction was recorded at the historical carrying value of TransportIQ’s assets and liabilities.

Ci2i is an innovative and growth-oriented services company founded in 1998 that develops and deploys intelligent technologies and products in order to meet the demand for sustainable, integrated solutions to contemporary business needs. The primary focus has been in the Analytics and Intelligence segments. The Company is investing significantly in building products in the area of supply chain and last mile delivery.

On May 16, 2019, the Company entered into a Share Exchange Agreement with TRAQIQ Solutions Private Limited. Pursuant to the Share Exchange Agreement with TRAQ Pvt Ltd., the Company acquired 100% of the shares of TRAQ Pvt Ltd. and assumed certain net liabilities in exchange for warrants exercisable over a five-years to purchase 1,329,272 shares of common stock of the Company valued at $268. The warrants will be exercisable as follows: (i) 100,771 warrants immediately upon closing; (ii) 859,951 warrants exercisable one-year after the date of closing; and (iii) 368,550 warrants exercisable two-years after the date of closing. This transaction is being recorded as a business combination under ASC 805.that competes with the Digester Business.

The warrants that are exercisable in one-year and two-years are conditioned upon TRAQ Pvt Ltd. achieving certain revenue figures and pre-tax profit percentages. TRAQ Pvt Ltd. must achieve target revenue of $1.1 million (US$) and pre-tax profit of 25% (US$). Should TRAQ Pvt Ltd. be unable to achieve these criteria, the warrants will be reduced proportionately.

Effective December 31, 2020, Ci2i acquired the net assets of OmniM2M and TransportIQ, and then dissolved those entities in January 2021. The value of those transactions were for the assumed liabilities of Omni and TransportIQ, and no cash was exchanged.

Going Concern

The Company has an accumulated deficit of $2,504,893$17,522,786 and a working capital deficit of $2,851,721$1,616,199 as of December 31, 20202022, compared to an accumulated deficit of $8,953,768 and a working capital deficit of $2,697,036$9,844,269 as of December 31, 2019.2021. The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, which it has not been able to accomplish to date, and/or obtain additional financing from its stockholders and/or other third parties.

Our consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to meet its obligations and continue its operations for the next fiscal year. The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary equity or debt financing to continue operations, successfully locating and negotiating with other business entities for potential acquisition and /or acquiring new clients to generate revenues.

In May 2019, The consolidated financial statements of the Company acquired 100%do not include any adjustments that may result from the outcome of the sharesuncertainties. During the year ended December 31, 2022, the Company converted $5.0 million of TRAQ Pvt Ltd. and assumed certain net liabilities in exchange for warrants exercisable over a five-years to purchase 1,329,272debt into shares of common stockand Series B Preferred Stock. Additionally, in the first quarter of 2023, the Company completed an acquisition of Renovare. Overall, management is focused on effectively positioning the Company for a positive increase in cash flows. The Company will continue to closely monitor the cash flows of the Company valued at $268. This acquisition will assist the Company in operations and cash flow.Company.

In order to further implement its business plan and satisfy its working capital requirements, the Company will need to raise additional capital. There is no guarantee that the Company will be able to raise additional equity or debt financing at acceptable terms, if at all.

There is no assurance that the Company will ever be profitable. These consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

Critical Accounting Policies and Estimates

Our significant accounting policies are more fully described in the notes to our consolidated financial statements. Those material accounting estimates that we believe are the most critical to an investor’s understanding of our financial results and condition are discussed immediately below and are particularly important to the portrayal of our financial position and results of operations and require the application of significant judgment by our management to determine the appropriate assumptions to be used in the determination of certain estimates.

Consolidation

The consolidated financial statements include the accounts of TraQiQ, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

The Company applies the guidance of Topic 810 Consolidation of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) to determine whether and how to consolidate another entity. Pursuant to ASC paragraph 810-10-15-10, all majority-owned subsidiaries—all entities in which a parent has a controlling financial interest—are consolidated except when control does not rest with the parent.

Pursuant to ASC paragraph 810-10-15-8, the usual condition for a controlling financial interest is ownership of a majority voting interest, and, therefore, as a general rule ownership by one reporting entity, directly or indirectly, of more than 50 percent of the outstanding voting shares of another entity is a condition pointing toward consolidation. The power to control may also exist with a lesser percentage of ownership, for example, by contract, lease, agreement with other stockholders, or by court decree.

In accordance with ASC 810-10-45, the Company has deconsolidated the subsidiaries of MTP, Rohuma and TSP as a result of the nonreciprocal transfer (spinoff). The Company has recognized the loss on the spinoff in net loss on the consolidated statements of operations

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. These estimates include, but are not limited to, management’s estimate of provisions required for non-collectible accounts receivable, depreciative lives of our assets, determination of technological feasibility, and valuation allowances of our deferred tax assets. Actual results could differ from those estimates.

Capitalized Software Costs

In accordance with the relevant FASB accounting guidance regarding the development of software to be sold, leased, or marketed, the Company expenses such costs as they are incurred until technological feasibility has been established, at and after which time these costs are capitalized until the product is available for general release to customers. Once the technological feasibility is established per ASC 985-20, the Company capitalizes costs associated with the acquisition or development of major software for internal and external use in the balance sheet. Costs incurred to enhance the Company’s software products, after general market release of the services using the products, is expensed in the period they are incurred. The Company only capitalizes subsequent additions, modifications or upgrades to internally developed software to the extent that such changes allow the software to perform a task it previously did not perform. The Company expenses software maintenance and training costs as incurred. As of December 31, 2022, there were no capitalized software costs.

Revenue Recognition

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), specifically ASC 606-10-50-12. This standard provides a single set of guidelines for revenue recognition to be used across all industries and requires additional disclosures. The updated guidance introduces a five-step model to achieve its core principal of the entity recognizing revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted the updated guidance effective January 1, 2018 using the full retrospective method, however the new standard did not have a material impact on its consolidated financial position and consolidated results of operations, as it did not change the manner or timing of recognizing revenue.

Professional Service Revenue

TRAQ Pvt Ltd. generally derivesderived a large part of its revenues from professional and support services, which includesincluded revenue generated from software development projects and associated fees for consulting, implementation, training, and project management provided to customers using their systems. Revenue from arrangements with customers iswas recognized based on the Company’s satisfaction of distinct performance obligations identified in each agreement, generally at a point in time as discussed in ASC 606. In instances where multiple performance obligations arewere identified, the Company allocatesallocated the transaction price to each performance obligation based on relative selling prices of each distinct product or service, and recognizes revenue related to each performance obligation at the points in time that each performance obligation is satisfied. The Company’s performance obligation includesincluded providing customization of software’s,software and the selling of licenses, where the Company typically satisfiessatisfied its performance obligations prior to the submission of invoices to the customer for such services. The Company’s performance obligation for consulting and technical support iswas delivered on as the work iswas being performed, which iswas satisfied prior to invoicing. The Company generally collectscollected payment within 30 to 60 days of completion of the performance obligation and there arewere no agency relationships.

Software development arrangements involving significant customization, modification or production arewere accounted for in accordance with the appropriate technical accounting guidance issued by the FASB using the percentage-of- completion method. The Company recognizesrecognized revenue using periodic reported actual hours worked as a percentage of total expected hours required to complete the project arrangement and appliesapplied the percentage to the total arrangement fee.

Unbilled revenue representsrepresented earnings in excess of billings as at the end of the reporting period. Sales taxes collected from customers and remitted to governmental authorities arewere accounted for on a net basis and therefore arewere excluded from revenues in the statements of operations.

TRAQ Pvt Ltd. has deferred the revenue and costs attributable to certain process transition activities with respect to its customers where such activities do not represent the culmination of a separate earnings process. Such revenue and costs arewere subsequently recognized ratably over the period in which the related services arewere performed. Further, the deferred costs arewere limited to the amount of the deferred revenues. As of December 31, 2022, there was no deferred revenue.

TRAQ Pvt Ltd. has now started offering an integrated solution for supply chain and last mile. This product called “TraQSuite” is now offered in multiple markets as a cloud-based subscription offering. This is a significant improvement from the earlier professional services business.

Software Solution Revenue

Revenue from arrangements with customers iswas recognized based on the Company’s satisfaction of distinct performance obligations identified in each agreement, generally at a point in time as discussed in ASC 606. In instances where multiple performance obligations are identified, the Company allocatesallocated the transaction price to each performance obligation based on relative selling prices of each distinct product or service, and recognizesrecognized revenue related to each performance obligation at the points in time that each performance obligation iswas satisfied. The Company’s performance obligation includesincluded providing connectivity to software, generally through a monthly subscription, where the Company typically satisfiessatisfied its performance obligations prior to the submission of invoices to the customer for such services. The Company’s performance obligation for hardware components that arewere purchased by the customer in connection with the solution iswas delivery of the purchased device, which iswas satisfied prior to invoicing. The Company providesprovided a twelve-month warranty on their hardware. All units deployed by the Company arewere past the twelve-month period, thus the Company hasdid not accruedaccrue for a warranty liability. The Company generally collectscollected payment within 30 to 60 days of completion of the performance obligation and there arewere no agency relationships.

Revenue From Sales of Goods

Revenue from arrangements with customers was recognized based on the Company’s satisfaction of distinct performance obligations identified in each agreement, generally at a point in time as discussed in ASC 606. The performance obligations were satisfied upon shipment of the merchandise being sold.

Costs of Services Provided

Costs of services provided consistconsisted of data processing costs, customer support costs including personnel costs to maintain the Company’s proprietary databases, costs to provide customer call center support, hardware and software expense associated with transaction processing systems and exchanges, telecommunication and computer network expense, and occupancy costs associated with facilities where these functions are performed. Depreciation expense iswas not included in costs of services provided.

Foreign Currency Transactions

The Company accounts for foreign currency transactions in accordance with ASC 830, “Foreign Currency Matters” (“ASC 830”), specifically the guidance in subsection ASC 830-20, “Foreign Currency Transactions”. The U.S. dollar is the functional and reporting currency for the Company and its subsidiaries other than TRAQ Pvt Ltd.the Indian subsidiaries whose functional currency is the Indian Rupee. Pursuant to ASC 830, monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting gains or losses upon settlement reported in foreign exchange gain (loss) in the computation of net income (loss). Gains or losses resulting from translation adjustments are reported under accumulated other comprehensive income (loss).

Uncertain Tax Positions

The Company follows ASC 740-10, “Accounting for Uncertainty in Income Taxes”. This requires recognition and measurement of uncertain income tax positions using a “more-likely-than-not” approach. Management evaluates theirthe Company’s tax positions on an annual basis.

The Company files income tax returns in the U.S. federal tax jurisdiction and various state and foreign tax jurisdictions. The federal and state income tax returns of the Company are subject to examination by the IRS and state taxing authorities, generally for three years after they were filed. Foreign income tax returns are subject to examination by foreign taxing authorities.

Fair Value of Financial Instruments

ASC 825, “Financial Instruments,” requires the Company to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions are set forth below for the Company’s financial instruments: The carrying amount of cash, accounts receivable, prepaid and other current assets, accounts payable and accrued expenses, stockholder advances, and short-term financing approximate fair value because of the short-term maturity of those instruments. The Company does not utilize derivative instruments.

Earnings (Loss) Per Share of Common Stock

Basic net income (loss) per common share is computed using the weighted average number of common shares outstanding. Diluted earnings per share (EPS) include additional dilution from common stock equivalents, such as convertible notes, preferred stock, stock issuable pursuant to the exercise of stock options and warrants. Common stock equivalents are not included in the computation of diluted earnings per share when the Company reports a loss because to do so would be anti-dilutive for periods presented. An uncertain number of shares underlying convertible debt have been excluded from the computation of loss per share because their impact was anti-dilutive.

Related Party Transactions

Parties are considered to be related to the Company if the parties directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal stockholders of the Company, its management, members of the immediate families of principal stockholders of the Company and its management and other parties with which the Company may deal where one-party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions. All transactions shall be recorded at fair value of the goods or services exchanged. Property purchased from a related party is recorded at the cost to the related party and any payment to or on behalf of the related party in excess of the cost is reflected as compensation or distribution to related parties depending on the transaction.

Lease Obligations

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current portion of operating lease liabilities and operating lease liabilities, less current portion in the Company’s consolidated balance sheets.

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. For leases in which the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating lease arrangements is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately. There is no lease obligation as of December 31, 2022.

Results of Operations and Financial Condition for the Year Ended December 31, 20202022 as Compared to the Year Ended December 31, 20192021

Revenues

For the year ended December 31, 2022 compared to December 31, 2021, the Company’s revenues increased by $1,582, or 100%, from $0 in 2021 to $1,582 in 2022. As a result of operations being discontinued, a majority of revenue has been reclassified to discontinued operations, leaving a small amount or revenue remaining on the statements of operations relating to continuing operations.

Cost of Revenues

For the year ended December 31, 2022 compared to December 31, 2021, the Company’s cost of revenues increased by $54,209, or 100%, from $0 in 2021 to $54,209 in 2022. As a result of operations being discontinued, a majority of cost of revenues has been reclassified to discontinued operations, leaving a small amount of revenue remaining on the statements of operations relating to continuing operations.

Operating Expenses

For the year ended December 31, 2022 compared to December 31, 2021, the Company’s salary and salary-related costs decreased by $1,086,226, or 85%, from $1,279,860 in 2021 to $193,634 in 2022. The decrease is the result of scaling down operations in 2022, and inevitably the dispositions of Rohuma, TSP and Mimo during the year ended December 31, 2022.

During the year ended December 31, 2022 compared to December 31, 2021, the Company’s professional fees decreased by $335,680, or 48%, from $694,787 in 2021 to $359,107 in 2022. Our professional fees decreased due to the acquisitions of Rohuma and Mimo as well as fees related to the acquisitions of those companies in 2021, and due to public offering expenses in 2021.

For the year ended December 31, 2022 compared to December 31, 2021, the Company’s rent expense slightly decreased by $50, or 2%, from $2,184 in 2021 to $2,134 in 2022.

For the years ended December 31, 2022 and 2021, the Company’s depreciation and amortization expense was $33,240.

For the year ended December 31, 2022 compared to December 31, 2021, the Company’s general and administrative expenses decreased by $1,706,278, or 69%, from $2,458,206 in 2021 to $751,928 in 2022 primarily due to the cutbacks in travel and stock based compensation expenses.

RevenuesInterest Expense, net of interest income

For the year ended December 31, 20202022 compared to December 31, 2019,2021, the Company’s revenuesinterest expense increased by $329,217,$639,483, or 48%50%, from $680,732$1,266,777 in 20192021 to $1,009,949$1,906,260 in 20202022 due to the Company’s lackhigher levels of trucking revenue being generateddebt in TransportIQ offset by the revenues generated in TRAQ Pvt Ltd. post-acquisition in May 2019. The Company will continue to focus on and move towards an analytics model (solutions revenue) which is expected to bring in more revenue and higher profitability.2022.

Cost of SalesDerivative Liabilities

For the year ended December 31, 20202022 compared to December 31, 2019,2021, the Company’s costchange in the fair value of revenues increasedthe derivative liability and derivative expense decreased by $115,206, or 27%,$221,797, from $431,363$1,077,387 in 20192021 to $546,569$855,590 in 20202022 due to the Company’s lackconvertible promissory notes and related warrants being classified as derivative liabilities and the changes in the share price over the year ended December 31, 2022 compared to the year ended December 31, 2021. In addition the Company recognized a gain on extinguishment of support services being incurred to accommodate the trucking servicesderivative liabilities of $0 in TransportIQ offset by the cost of revenues generated2022 versus $1,089,675 in TRAQ Pvt Ltd. post-acquisition in May 2019. The Company will continue to move towards an analytics model which is expected to bring in more revenue and higher profitability.2021.

Operating ExpensesForgiveness of Debt and Other Income

For the year ended December 31, 20202022 compared to December 31, 2019, the Company’s salary and salary related costs increased by $169,643, or 148%, from $114,615 in 2019 to $284,258 in 2020 due to the salary and salary related costs of TRAQ Pvt Ltd. post-acquisition in May 2019.

During the year ended December 31, 2020, compared to 2019, the Company’s professional fees decreased by $86,345, or 30%, from $287,775 in 2019 to $201,430 in 2020. Our professional fees increased in 2019 compared to 2020 due the professional fees of TRAQ Pvt Ltd. post-acquisition in May 2019 and filing a Regulation A+. In 2020 we limited our professional fees due to cash flow issues.

For the year ended December 31, 2020 compared to December 31, 2019, the Company’s rent expense increased by $12,982, or 15%, from $88,863 in 2019 to $101,845 in 2020. We have re-worked our lease arrangement with the landlord of TRAQ Pvt Ltd and reduced our leased space considerably as of December 31, 2020 and anticipate this to be much less moving forward in 2021. The increase in 2020 was attributable to a full year of rent expense in 2020 rather than seven and a half months in 2019.

For the year ended December 31, 2020 compared to December 31, 2019, the Company’s depreciation and amortization expense increased $5,148, or 12%, from $42,840 in 2019 to $47,988 in 2020. The increase was the result of the depreciation and amortization expense on the fixed and intangible assets acquired in the TRAQ Pvt Ltd. Acquisition of twelve months in 2020 and seven and a half months in 2019.

For the year ended December 31, 2020 compared to December 31, 2019, the Company’s general and administrative expenses increased by $21,908, or 14%, from $160,919 in 2019 to $182,827 in 2020 primarily due to the lowering of overhead expenses in TransportIQ as the Company is moving towards an analytics model offset by the general and administrative expenses of TRAQ Pvt Ltd. post-acquisition in May 2019 and having a full year of administrative expenses for TRAQ Pvt Ltd rather than seven and a half months in 2019.

Interest Expense, net

For the year ended December 31, 2020 compared to December 31, 2019, the Company’s interest expense, net of interest income increased by $78,216, or 31%, from $250,164 in 2019 to $328,380 in 2020 due to higher levels of debt in 2020.

Forgiveness of Debt and Other Income

For the year ended December 31, 2020 compared to December 31, 2019,2021, the Company’s forgiveness of debt and other income increased by $20,798$1,742,606 or 38%17,301%, from $55,450$10,072 in 20192021 to $76,248$1,752,678 in 20202022 due to the forgiveness of payables in TRAQ Pvt Ltd in 2020 and due to PPP loan forgivenessaccrued interest on notes payable upon conversion of $24,640 in 2020.debt.

Included in other income is $417,148 in 2019 for the recognized bargain purchase gain.

Net Loss from discontinued operations

For the year ended December 31, 20202022 compared to December 31, 2019,2021, the Company’s loss from discontinued operations, after taxes increased by $6,137,455, from $632,258 in 2021 to $6,769,713 in 2022 primarily due to the loss from disposal of subsidiaries of $5,804,121.

Net Loss

For the year ended December 31, 2022 compared to December 31, 2021, the Company’s net loss increased by $384,700, or 172%,$2,718,193, from $223,209$6,453,363 in 20192021 to $607,909$9,171,556 in 20202022 due to the increase in activity in TRAQ Pvt Ltd as we incurred one year of activity in 2020 rather than seven and a half months in 2019, as well as the added interest expense due to the increase in debt we incurred in 2020.changes noted herein.

Liquidity and Capital Resources

Working Capital

As of December 31, 2020,2022, current assets were $1,101,439$66,460 and current liabilities outstanding amounted to $3,953,160were $1,682,659, which resulted in a working capital deficit of $2,851,721.$1,616,199. As of December 31, 2019,2021, current assets were $818,830$980,747 and current liabilities outstanding amounted to $3,515,866were $10,825,016, which resulted in a working capital deficit of $2,697,036.$9,844,269.

We believe that our available cash balance as of the date of this filing will not be sufficient to fund our anticipated level of operations for at least the next 12 months. Management believes that our ability to continue our operations depends on our ability to sustain and grow revenue and results of operations as well as our ability to access capital markets when necessary to accomplish our strategic objectives. Management believes that we will continue to incur losses for the immediate future. For the year ended December 31, 2022, we incurred negative cash flow from operations. We expect to finance our cash needs from the results of operations and, depending on results of operations, we may need additional equity or debt financing until we can achieve profitability and positive cash flows from operating activities, if ever.

On or prior to March 31, 2024, we have obligations relating to the payment of indebtedness on term loans and notes payable of $3,652,890 and $1,350,037, respectively. We anticipate meeting our cash obligations on our indebtedness that is payable on or prior to March 31, 2024 from the results of operations and, depending on results of operations, we will likely need additional equity or debt financing.

Our future capital requirements for our operations will depend on many factors, including the profitability of our businesses, the number of and cash requirements of other acquisition candidates that we pursue, and the costs of our operations. Our management has taken several actions to ensure that we will have sufficient liquidity to meet our obligations through March 31, 2024, including the sale of certain of our businesses. We also are evaluating other measures to further improve our liquidity, including, the sale of equity or debt securities and entering into joint ventures with third parties. Lastly, we may elect to reduce certain related-party and third-party debt by converting such debt into preferred or common shares. Our management believes that these actions will enable us to meet our liquidity requirements through March 31, 2024. There is no assurance that we will be successful in any capital-raising efforts that we may undertake to fund operations during 2023.

We plan to generate positive cash flow from our operation; however, to execute our business plan, service our existing indebtedness and implement our business strategy, we will need to obtain additional financing from time to time and may choose to raise additional funds through public or private equity or debt financings, a bank line of credit, borrowings from affiliates or other arrangements. We cannot be sure that any additional funding, if needed, will be available on terms favorable to us or at all. Furthermore, any additional capital raised through the sale of equity or equity-linked securities may dilute our current stockholders’ ownership in us and could also result in a decrease in the market price of our common stock. The terms of any securities issued by us in future capital transactions may be more favorable to new investors and may include the issuance of warrants or other derivative securities, which may have a further dilutive effect. We also may be required to recognize non-cash expenses in connection with certain securities we issue, such as convertible notes and warrants, which may adversely impact our financial condition. Furthermore, any debt financing, if available, may subject us to restrictive covenants and significant interest costs. There can be no assurance that we will be able to raise additional capital, when needed, to continue operations in their current form.

Sources and Uses of Cash 

Net cash used in operating activities was $187,164$1,464,960 for the year ended December 31, 20202022 compared to $516,509$3,163,103 in 2019.2021. Cash used in operationsoperating activities for 20202022 and 20192021 was the primarily related to the loss in operations offset by a loss on the bargain purchase gain in 2019,disposal of subsidiaries, increases and decreases in accounts payable and accrued expenses and the changes in accounts receivable due to the lack of adequate cash flow of the Company.Company as well as non-cash charges related to stock-based compensation, the change in the fair value of the derivative liabilities, gains and losses on extinguishment and settlement of debt and the amortization of discounts related to our debt instruments.

The onlyNet cash (used in) provided by investing activities was $(33,257) for the year ended December 31, 2019, related2022 compared to the cash and restricted cash of $234 and $185,399, respectively acquired$20,941 in the TRAQ Pvt Ltd. acquisition and some acquisitions of fixed assets related to TRAQ Pvt Ltd. of $3,417. In the year ended December 31, 2020, the2021. Cash provided by (used in) investing activities for 2022 and 2021, related to the advancefixed asset additions in the form2022 compared to cash paid for acquisitions of a note receivable$21,825 and cash received in the amountacquisitions of $227,877. In 2020 and 2019 we hadcompanies of $48,789 as well as acquisitions of fixed assets of $3,709 and $3,417, respectively.$6,023 in 2021.

Net cash provided by financing activities for the year ended December 31, 2020 was $285,433 compared to2022 consisted of proceeds from the issuance of notes of $1,667,975. The Company repaid $388,945 in notes payable during the year ended December 31, 2019 of $523,667. The2022. Net cash provided by financing activities wasfor the resultyear ended December 31, 2021 consisted of proceeds from the issuance of common stock and warrants of $494,545 and convertible notes of $1,715,000, along with proceeds received from related party notes of $2,986,125 and $50,331 in proceeds from issuance of long-term debt. The Company repaid $1,292,397 in related party notes, $515,615 in convertible notes and $214,242 in long-term debt including related parties, convertible notes from related and unrelated parties, offset by repayments on long term-debt which include related parties, as well asduring the decreases in our cash overdraft in both years.year ended December 31, 2021.

Outstanding Indebtedness

On January 5, 2023, the Company entered into a 11% OID Senior Secured Promissory Note with Evergreen Capital Management, LLC (“Evergreen”) in the amount of $480,000 (includes $80,000 of Original Issue Discount). Evergreen has a maturity of twelve months to December 30, 2023. It accrues interest at a rate of 10% per year. The conversion price Subject to the adjustments described herein, the conversion price (the “Conversion Price”) shall be equal the lesser of $0.015 or 90% of average of the two lowest VWAPs for the five consecutive trading days ending on the trading day that is immediately preceding the delivery of a notice of conversion.

On January 5, 2023, the Company, consummated the transactions contemplated by the Purchase Agreement among TraQiQ Environmental, Inc. (“REI”) and BioHiTech America, LLC (“BHT” and, together with REI, the “Renovare Sellers”) and the Company, pursuant to which the Renovare Sellers sold and assigned to the Company, and the Company purchased and assumed from the Renovare Sellers, (a) certain assets related to the business of (i) offering aerobic digestion technology solutions for the disposal of food waste at the point of generation and (ii) data analytics with respect to food waste (collectively, the “Digester Business”) and (b) certain specified liabilities of the Renovare Sellers, including, but not limited to, indebtedness in an amount equal to $3,017,090 (the “Michaelson Debt”) owed to Michaelson Capital Special Finance Fund II, L.P. (“Michaelson”).

On January 4, 2023, the Company borrowed cash in exchange for a 20% OID Senior Secured Promissory Note dated January 4, 2023 in the original principal amount of $180,000 (the “OID Note”). The OID Note matures on January 4, 2024, bears interest at the rate of ten percent (10%) per annum and has no prepayment penalty. In the event of a default by the Company under the OID Note, the outstanding principal and interest will be convertible by the holder into Common Stock at a conversion price equal to the lower of (i) $.015 per share and (ii) an amount equal to 90% of the average of the two lowest volume weighted average prices of the Common Stock for the five consecutive trading days prior to the conversion date.

On October 21, 2022, the Company entered into a 20% OID Senior Secured Promissory Note with Evergreen Capital Management, LLC (the “Evergreen Note”) in the amount of $48,000 (includes $8,000 of Original Issue Discount). The Evergreen Note has a maturity of twelve months to July 21, 2023. It accrues interest at a rate of 10% per year. The conversion price (the “Conversion Price”) is 75% of the price per share at which the common stock of the Company is sold to the public in a qualified offering. There are certain price protections, which make the conversion option a derivative liability.

On July 5, 2022, the Company entered into a 11% OID Senior Secured Promissory Note with GS Capital Partners LLC (the “GS Capital”) in the amount of $144,000 (includes $14,000 of Original Issue Discount). The GS Capital note has a maturity of twelve months and accrues interest at a rate of 12% per year. The conversion price is equal to 86% of the lowest trading price of the Company’s common stock for the 12 trading days immediately preceding the delivery of a notice of conversion. In accordance with the terms of the note, the Company issued 3,000 shares of common stock as a commitment fee.

On January 19, 2021, the Company issued a 12% Convertible Promissory Note to GS Capital Partners, LLC (the “GS Note”) in the principal amount of $125,000. The GS Note has a maturity date of one-year from issuance and is to be repaid commencing on the fifth monthly anniversary and every month thereafter in the amount of $20,000. In the event of a payment default, the GS Note will be convertible into common stock at a conversion price of 66% of the lowest closing stock price over the previous 20 trading days. There are certain price protections for GS Capital Partners, LLC under the terms of the GS Note, which make the conversion option a derivative liability. The Company recorded an original issue discount in the amount of $10,000 and $5,000 was paid out of the proceeds for legal fees. In accordance with the terms of the GS Note, the Company issued 3,250 shares of common stock as a commitment fee and issued 21,250 shares of common stock that are returnable upon the Company repaying the GS Note in accordance with its terms. This note was paid off in 2021.

On February 12, 2021, the Company issued a 10% Convertible Promissory Note to Platinum Point Capital, LLC (the “Platinum Note”) in the principal amount of $400,000. The Platinum Note has a maturity date of one-year from issuance. The Platinum Note is convertible into common stock a conversion price of the greater of (a) $0.08 or (b) 70% of the lowest traded stock price over the previous 15 trading days, provided that the conversion price will not exceed $8.00. There are certain price protections for Platinum Point Capital, LLC under the terms of the Platinum Note, which make the conversion option a derivative liability. The Company granted 25,000 warrants to purchase shares of common stock that have a term of three-years and an exercise price of $2.00 per share with the Platinum Note. The warrants granted with the Platinum Note also contain certain price protections that make the value of the warrants a derivative liability. The Company and Platinum Point Capital, LLC entered into an amendment to exclude the Mimo warrants granted on February 17, 2021 from the price protections. In accordance with the terms of the Platinum Note, the Company issued 7,500 shares of common stock as a commitment fee. This note was repaid/ converted into shares of common stock in 2021.

Off-Balance Sheet Arrangements

We have no off-balance sheet financing arrangements.

Contractual Obligations

Not required forAs a smaller reporting company.company we are not required to provide the information required by this Item.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Not required forAs a smaller reporting company.company we are not required to provide the information required by this Item.

Item 8. Financial Statements and Supplementary Data

Our consolidated financial statements and notes thereto and the report of our independent registered public accounting firm, are set forth starting on page F-1 of this report.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.On April 5, 2021, the Board of Directors of TraQiQ, Inc. approved the dismissal of AJSH & Co LLP (“AJSH”) as the Company’s independent registered public accounting firm. The Company filed a Current Report on Form 8-K on April 6, 2021 reporting on this event and stating that (1) the reports of AJSH on the Company’s consolidated financial statements for the fiscal years ended December 31, 2020 did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles; (2) during the fiscal years ended December 31, 2019 and December 31, 2020, there were no “disagreements” (as defined in Item 304(a)(1)(iv) of Regulation S-K and related instructions) with AJSH on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements if not resolved to the satisfaction of AJSH would have caused AJSH to make reference thereto in its reports on the consolidated financial statements for such years; and (3) during the fiscal years ended December 31, 2019 and December 31, 2020, there were no “reportable events” (as defined in Item 304(a)(1)(v) of Regulation S-K).

On April 5, 2021, the Board approved the appointment of T R Chadha & Co LLP (“TRC”) as the Company’s new independent registered public accounting firm, effective immediately, to perform independent audit services for the fiscal year ending December 31, 2021. During the fiscal years ended December 31, 2019 and December 31, 2020 neither the Company, nor anyone on its behalf, consulted TRC regarding either (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered with respect to the consolidated financial statements of the Company, and no written report or oral advice was provided to the Company by TRC that was an important factor considered by the Company in reaching a decision as to any accounting, auditing or financial reporting issue; or (ii) any matter that was the subject of a “disagreement” (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) or a “reportable event” (as that term is defined in Item 304(a)(1)(v) of Regulation S-K).

Item 9A. Controls and Procedures

Disclosure Controls and Procedures

Based on an evaluation as of the date of the end of the period covered by this report, the Company’s Certifying OfficersChief Executive Officer and Chief Financial Officer conducted an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures, as required by Exchange Act Rule 13a-15. Based on that evaluation, the Company’s Certifying OfficersChief Executive Officer and Chief Financial Officer concluded that, because of the disclosed material weaknesses in the Company’s internal control over financial reporting, the Company’s disclosure controls and procedures were ineffective as of the end of the period covered by this report to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in the Company’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the Company’s reports filed under the Exchange Act is accumulated and communicated to management, including the Company’s Certifying Officers, to allow timely decisions regarding required disclosure. Based upon the evaluation of the disclosure controls and procedures at the end of the period covered by this report, our Certifying Officers concluded that our disclosure controls and procedures were not effective as a result of continuing weaknesses in our internal control over financial reporting principally due to the following:

Management’s Annual Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Exchange Act Rule 13a-15(f). Management conducted an evaluation of the effectiveness of the internal control over financial reporting as of December 31, 2020,2022, using the criteria established in Internal Control – Integrated Framework (2013 framework) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

A material weakness is a control deficiency, or combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. As a result of management’s assessment, management has determined that there are material weaknesses due to the lack of segregation of duties and, due to the limited resources based on the size of the Company. Due to the material weaknesses management concluded that as of December 31, 2020,2022, the Company’s internal control over financial reporting was ineffective. In order to address and resolve the weaknesses, the Company will endeavor to locate and appoint additional qualified personnel to the board of directors and pertinent officer positions as the Company’s financial means allow. To date, the Company’s limited financial resources have not allowed the Company to hire the additional personnel necessary to address the material weaknesses.

Management’s Annual Report on Internal Control Over Financial Reporting

This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this annual report.report on Form 10-K.

Changes in Internal Control Over Financial Reporting

There have been no changes in the Company’s internal control over financial reporting that occurred during the Company’s last fiscal quarter (the Company’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

The term “internal control over financial reporting” is defined as a process designed by, or under the supervision of, the registrant’s principal executive and principal financial officers, or persons performing similar functions, and effected by the registrant’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

Item 9B. Other Information

None.

On January 1, 2023, the Company appointed Ajay Sikka, its Chairman of the Board, Chief Executive Officer and President, as its Chief Financial Officer. In addition, on January 1, 2023, the Company entered into an employment agreement with Mr. Sikka (the “Sikka Agreement”). Pursuant to the Sikka Agreement, Mr. Sikka will serve as the Company’s Chief Executive Officer and a member of the Company’s board of directors (the “Board”). The Sikka Agreement provides that Mr. Sikka will serve as an employee of the Company for a term of 36 months, unless he is earlier terminated or resigns in accordance with the terms of the Sikka Agreement.

Mr. Sikka will receive an annual salary of $300,000, and will be entitled to participate in an annual incentive compensation plan, pursuant to which, if the Company has monthly average annual recenue equal to $1,750,000 during the fourth quarter of 2023, Mr. Sikka will receive a bonus of $150,000. Mr. Sikka is also entitled to receive additional discretionary bonuses based on the achievement of certain corporate performance goals, as may be estbalished an approved from time to time by the Company. In addiiton, Mr. Sikka is entitled to a $75,000 cash bonus, payable in equal monthly installments during the first twelve months of Mr. Sikka’s employment at the Company.

In addition to the above cash compensation to which Mr. Sikka is entitled, upon commencement of the Sikka Agreement, Mr. Sikka received 5,930,000 shares of restricted common stock of the Company (“Restricted Stock”), pursuant to the Company’s 2020 Equity Incentive Compensation Plan, of which (i) 905,000 shares will vest on April 1, 2023 and the remaining 5,430,000 shares will begin to vest over a period of three years, in six equal semi-annual installments. Mr. Sikka is also entitled to receive additional shares of Restricted Stock as follows:

In the event that Mr. Sikka’s employment with the Company is terminated for any reason, the Company shall pay Mr. Sikka (a) (i) his Base Salary, pro-rated through the date of termination to the extent not yet paid to him; (ii) any unreimbursed business expenses payable to Mr. Sikka; and (iii) any payments and benefits to which Mr. Sikka is entitled pursuant to the terms of any employee benefit or compensation plan or program in which he participates (or participated) and (b) in the event Mr. Sikka’s employment is terminated by the Company without Cause, due to Mr. Sikka’s resignation for Good Reason, or due to Mr. Sikka’s Disability (as defined in the Sikka Agreement), the Company shall also pay Mr. Sikkaan amount equal to 12 months of Mr. Sikka’s salary, less all applicable withholdings and authorized or required deductions, as salary continuation.

The foregoing description of the Sikka Agreement is not complete, and is qualified in its entirely by the Sikka Agreement, which is filed as Exhibit 10.18 hereto.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Not applicable.

PART III

Item 10. Directors, Executive Officers, and Corporate Governance;

The following persons are our executive officers and directors as of March 17, 202130, 2023 and hold the positions set forth opposite their respective names. The members of the Board of Directors serve until the next annual meeting and a successor is appointed and qualified, or until resignation or removal.

Business Experience

The following is a brief description of the business experience of our executive officers and directors:

Ajay Sikka, Chairman and Director, President andChief Executive Officer, Chief Financial Officer, Chairman and President

Ajay Sikka age 54, was appointed to our Board as its Chairman and the Board appointed him as our Chief Executive Officer, President and Chief Financial and Accounting Officer on July 19, 2017. From May 2014 to the 2020, Mr. Sikka has served as Chief Executive Officer of OmniM2M, Inc., an IIoTIioT hardware, software and services company. From March 2011 to the present, Mr. Sikka has also served as Chief Executive Officer of TraQiQ Solutions, Inc. a technology provider that is focused on providing software products, services and support to enterprise customers, including Microsoft, Staples, Accenture, and Pactera. From April 2004 to FebFebruary 2011, Mr. Sikka served as Senior Director at Microsoft Corp. in Redmond, Washington,(“Microsoft”) a technology software company, where he worked inon multiple teams, including Law & Corporate affairs, Central IT, and Business Strategy. HeMr. Sikka also managed Microsoft’s CloudCRM team that provided Customer Relationship Management (CRM) services within Microsoft. From April 2000 to March 2004, Mr. Sikka served as Chief Executive Officer of IndiaHQ Solutions, Inc., a content provider (Websites, newspapers, Yellow pages) for the South Asian community. That company was sold in 2004. From April 1996 to April 2000, Mr. Sikka served as Group Manager at Microsoft Corp. in Redmond, Washington where he drove Microsoft’s internet business and content management initiatives with telecommunications and Internet service providers. He arrived at Microsoft subsequent to Microsoft’s purchase of Vermeer, that made the FrontPage product. Mr. Sikka is an active angel investor and board of director member for startup companies and new ventures in the Seattle area.

Mr. Sikka has extensive software development and sales experience His service as a board member of other small companies provides him with insight into the issues facing other small companies, which are valuable to the Company.

Frank E. Celli, Interim Executive Chairman

Mr. Celli has been in the waste and recycling industry for 35 years. Over the course of his career, he has been an owner and CEO of multiple solid waste companies, with experience in numerous facets of the industry, including waste collection, transfer station operations, landfill operations and recycling operations. Frank was co-founder and CEO of Interstate Waste Services from 2000 to 2006. Since May 2022, Mr. Celli has served as Managing Member of FC Advisory a management consulting company, and, since 2020, Mr. Celli has served as a consultant and strategic corporate advisor at Direct Waste Services, Inc., a solid waste collection and recycling company, positions that Mr. Celli continues to hold. From August 2015 until November 5, 2020, Mr. Celli served as Chief Executive Officer and from August 2015 until March 18, 2022, Mr. Celli served as Chairman of the Board, of BioHitech Global, Inc. (NASDAQ: BHTG), a waste reduction and technology company that was rebranded to Renovare Environmental, Inc. (NASDAQ:RENO) in December 2021. Over the course of his career, Mr. Celli has completed over 50 acquisitions and spearheaded multiple exits. Mr. Celli has a Bachelor of Science degree from Pace University Lubin School of Business.

James DuBois, Director

James DuBois age 57, is a member of our Board and was appointed to our Board on February 2, 2018. Since May 2016, Mr. Dubois, currently serveshas served as Global IT Advisor and Board Member at Expeditors International, of Seattle, Washington.a global logistics company. Mr. Dubois has guided IT and business transformation, corporate governance, customer-focused strategic product/services development, security, and risk management. While at Microsoft, as CIO and Chief Information Security Officer roles,from 2014 to 2017, Mr. DuBois was involved with directing IT modernization through corporate growth, turnaround, acquisitions integrations and divestitures.

Mr. DuBois has extensive experience in global IT operations as well as corporate governance matters, which assists TraQiQ in formulating and executing its growth strategy.

Greg Rankich, Director

Greg Rankich age 47, ishas been a member of our Board and was appointed to our Board onsince May 11, 2019. Since May 2018, Mr. Rankich from May 2018 to present, is thehas been co-founder and partner at Better U Today, which is a program designed to provide a simple and straightforward approach to help people achieve their ideal weight through food, education and lifestyle changes. FromSince January 2017, to present, Mr. Rankich has also servesserved as the managing partner of Kirkland REI, LLC which is a private real estate investment and management firm that focuses on four primary asset classes: Single Residential Properties, Multi-Family Properties, Commercial Properties and Land Acquisition. FromSince July 2013, to present, Mr. Rankich serveshas served as an Advisory Board Member of Ro Health, which is a rapidly growing medical staffing and home health agency. Ro Healthagency that supplies clients and patients with healthcare providers that are kind and caring.. From July 2005 to May 2018, Mr. Rankich served as the Chief Executive Officer of Xtreme Consulting Group, Inc. (“Xtreme”) an $80 million in revenue international services firm that employs best-in-class business and technology professionals who are focused on improving business performance for clients of all types and sizes. Digital Intelligence Systems acquired Xtreme on May 11, 2018.performance. Prior to founding Xtreme, Mr. Rankich held many roles within Microsoft Corporation. In 2010, Mr. Rankich was a finalist for Ernst & Young “Entrepreneur of the Year” award. He is an active member of company boards and advisory panels and is also involved in numerous charities and non-profits in the northwest. Mr. Rankich graduated with a B.A. in International Business and a M.B.A. from Washington State University.

InvolvementRichard Berman, Director

Richard Berman’s business career spans over 35 years of venture capital, senior management, and merger & acquisitions experience. In the past five years, Berman has served as a director of many public and private companies. Currently, he is a director of five public compani–s – Cryoport Inc. (“Cryptoport”), a cold chain logistics company, Comsovereign Holding Corp., a U.S.-based developer of 4G LTE advanced and 5G communication systems, BioVie Inc., a clinical-stage drug development company, Advaxis Inc. (“Advaxis”), a clinical-stage biotechnology company, and Cuentas, Inc., a provider of mobile banking and payment solutions serving Latino and Hispanic consumers. Over the last decade he has served on the board of five companies that have reached over one billion in Certain Legal Proceedings

Except as set forthmarket capitalizati–n – Cryoport, Advaxis, EXIDE, Internet Commerce Corporation, and Ontrak (Catasys). Previously, Berman worked at Goldman Sachs; was Senior Vice President of Bankers Trust Company, where he started the M&A and Leveraged Buyout Departments. Subsequently, he created the largest battery company in the directorworld in the 1980’s, by merging Prestolite, General Battery and officer biographies above,Exide to the Company’s knowledge, during theform Exide Technologies (XIDE); helped create SoHo, NYC by developing five buildings. He advised on over $4 billion M&A transactions, completing over 300 deals. Berman is a past ten (10) years, nonedirector of the Company’s directors, executive officers, promoters, control persons, or nomineesStern School of Business of NYU where he obtained his B.S. and M.B.A. degrees. He also has been:

CommitteesU.S. and foreign law degrees from Boston College and the Hague Academy of the Board of Directors

Our Board of Directors has no committees. We do not have a standing nominating, compensation or audit committee. Accordingly, we do not have an audit committee financial expert serving on an audit committee.International Law, respectively.

Mr. Berman provides the board with insights from his extensive experience in the purchase, sale and financing of businesses, his experience in financial and operational issues affecting organizations, and his knowledge of legal issues relevant to TraQiQ’s operations.

Corporate GovernanceFamily Relationships

Board Independence

We currently have three directors serving on our board of directors. Our Board of Directors has adopted the definition of “independence” as described in NASDAQ Rule 5605(a)(2). Independent directors would not include anyone who, within the past three years, was employed by us orThere are no family relationships among any of our parentsdirectors or subsidiaries or any of their family members; or any director who is, or who has a family member who is, a controlling shareholder. Our board of directors has determined that no directors meet the independence requirements. We may obtain independent directors in the future but there is no assurance that we will do so.executive officers.

Corporate Governance

Code of Business Conduct and Ethics

In September 30, 2009, weTraQiQ has adopted a Code of Ethics and Business Conduct whichto document the ethical principles and conduct we expect from our employees, officers and directors. The Code of Ethics and Business Conduct is applicable to our employees and which also includes a Code of Ethics for our chief executive and principal financial officers and any persons performing similar functions. A code of ethics is a written standard designed to deter wrongdoing and to promote:

A copy of our Code of Ethics and Business Conduct and Ethics has been filed withis available in the Securities and Exchange Commission as Exhibit 14.1 toInvestors section of our registration statement, which is incorporated herein.corporate website (https://RecoupEnv.com/). We will provide a copy of the Code of Ethics to any person without charge, upon request. The request for a copy can be made in writing to TraQiQ, Inc., 14205 S.E. 36th36^th St., Suite 100, Bellevue, WA 98006, Attention: Ajay Sikka, CEO.

Audit Committee

The Company has an audit committee consists of James DuBois and Richard Berman (the “Audit Committee”). Mr. Berman serves as Audit Committee chair. The Audit Committee’s primary responsibility is to engage our independent auditors and otherwise to monitor and oversee the audit process. The Audit Committee also undertakes other related responsibilities as detailed in the Audit Committee Charter, including monitoring our internal control over financial reporting, disclosure controls and procedures and code of business conduct and ethics, discussing our risk management policies and reviewing and approving or ratifying any related person transactions. A copy of our Audit Committee Charter is available in the Investors section of our website (https://RecoupEnv.com/. ).

In addition to determining that the members of the Audit Committee are independent directors under the Securities Exchange Act of 1934 and the Nasdaq listing standards, the board of directors has also determined that Richard Berman is an “Audit Committee financial expert” as defined in rules adopted under the Securities Exchange Act of 1934. Each of the members of the Audit Committee is an independent director within the meaning of the Nasdaq Stock Market rules. Mr. Berman serves as chair of the Audit Committee.

Compensation Committee

The Company has a compensation committee consists of James DuBois and Greg Rankich. (the “Compensation Committee”). Mr. Rankich serves as Compensation Committee chair. The Compensation Committee undertakes responsibilities as detailed in the Compensation Committee Charter, a copy of which is available in the Investors section of our website (https://recoupenv.com/).

Nominating and Corporate Governance Committee

The company has a nominating and corporate governance committee consists of James DuBois and Richard Berman (the “Nominating and Corporate Governance Committee”). Mr. DuBois serves as Nominating and Corporate Governance Committee chair. The Nominating and Corporate Governance Committee undertakes responsibilities as detailed in the Nominating and Corporate Governance Committee Charter, a copy of which is available in the Investors section of our website (https://recoupenv.com/board-of-directors/).

Nominations for Directors

During 2020,2022, there were no material changes to the procedures by which security holders may recommend nominees to the Company’s board of directors.

Delinquent Section 16(a) Reports

During the year ended December 31, 2020, James DuBois and Greg Rankich, Directors of the Company, failed to file Form 3 reports of their initial holdings of Company stock. In addition, Ajay Sikka, James DuBois and Greg Rankich failed to file Form 4 reports following the issuance to them of options to purchase common stock pursuant to the 2020 Equity Incentive Plan.

Item 11. Executive Compensation

Summary Executive Compensation Table

The following table shows, for the years ended December 31, 20202022 and 2019,2021, compensation awarded to or paid to, or earned by, our Chief Executive Officer, and Chief Financial Officer and the next three most highly paid executive officers (the “Named Executive Officers”).

SUMMARY COMPENSATION TABLE

In November 2020, Mr Sikka executed an Employment Agreement

In 2022 and 2021, Mr. Sikka received a salary of $157,500 and $180,000, respectively. In October 2020, the Company entered into an employment agreement with Mr. Sikka. The agreement has a five year term, subject to earlier termination. Under the Company. He is to receiveagreement, he receives an annual salary of $180,000 and was issued options onin connection with his service as chief executive officer to purchase up to 1.75 million shares.187,500 shares of common stock at an exercise price of $0.44 per share. Of these, 1.25 million156,250 shares are to vest based on performance over five years with milestones. The remaining 500,00031,250 options arehave service-based vesting with 250,000 over four years, and 250,000 over one-year. In 2020 and 2019,years. Mr. Sikka also received a salaryoptions on October 19, 2020 for 31,250 shares of $132,646 and $105,700, respectively.common stock in connection with his service on the Company’s board of directors at an exercise price of $0.44 per share, which vest over one year from grant.

Grants of Plan-Based Awards Table

On October 9, 2020, the Board of Directors approved the TraQiQ, Inc. Equity Compensation Plan which was adopted on October 11, 2020. Under this plan our named executive officers received grants of 1,750,0000 and 0218,750 during the years ended December 31, 20202022 and 2019,2021, respectively.

There were no equity awards outstanding for any of our named executive officers as of the year ended December 31, 2022.

Outstanding Equity Awards At Fiscal Year-End For2020 (1)

Director Compensation

Employment Agreements

On October 19, 2020,For the Board of Directorsyear ended December 31, 2022, directors of the Company approved thereceived no salary compensation plan for the CEO, Ajay Sikka. Mr. Sikka executed a five year employment agreement datedtheir service on the same date that providesCompany’s board of directors. Directors were entitled to option awards as compensation for an annual salary of $180,000, and granted Mr. Sikka 1,500,000 stock options under the Company’s 2020 Equity Incentive Plan. 250,000 of these stock options vest over four years, with the remaining 1,250,000 options vesting upon a set of criteria which include annual revenue, business growth and stock performance.their service.

Director Compensation

Directors of the Company receive no compensation other than the opportunity to receive option awards. Directors received the following grants.

In the table below, we have set forth information regarding compensation for 20202022 received by each of our directors who is not an officer of the Company. The dollar amounts in the table below for option awards are the grant date fair market values associated with such awards.

2022 Director Compensation Table

2020 Director Compensation Table

In the following table we have set forth information regarding options held by each named director as of December 31. 2020. Options vest on the dates shown.

Directors’ and Officers’ Liability Insurance

The Company may obtainmaintains directors’ and officers’ liability insurance insuring its directors and officers against liability for acts or omissions in their capacities as directors or officers, in the near future, subject to certain exclusions. Such insurance also insures the Company against losses which we may incur in indemnifying our officers and directors.

Compensation Committee Interlocks and Insider Participation

The members of the Compensation Committee are James DuBois, Richard Berman and Greg Rankich, each of whom is an independent director within the meaning of the Nasdaq Stock Market rules. No member of the Compensation Committee is or was formerly an officer or an employee of the Company. No executive officer of the Company serves as a member of the board of directors or compensation committee of any entity that has one or more executive officers serving as a member of the Company’s board of directors or compensation committee, nor has such an interlocking relationship existed in the past.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The following tables set forth certain information regarding the ownership of our common stock as of March 4, 2021,30, 2023, by:

As of March 30, 2023, there were 39,939,965 shares of our common stock issued and outstanding. The following table shows, as of that date, the number of shares and the percentage of our common stock held by each person known to us to own beneficially more than five percent of the Company’s issued and outstanding common stock, by each of our executive officers and directors, and by our executive officers and directors as a group. Unless otherwise specified, the address of each person listed is: 14205 SE 36th Street, Suite 100, Bellevue, WA 98006.

The amounts and percentages of common stock beneficiallybe^neficially owned are reported on the basis of regulations of the SEC governing the determination of beneficial ownership of securities. Under the rules of the SEC, a person is deemed to be a “beneficial owner” of a security if that person has or shares “voting power,” which includes the power to vote or to direct the voting of such security, or “investment power,” which includes the power to dispose of or to direct the disposition of such security. A person is also deemed to be a beneficial owner of any securities of which that person has the right to acquire beneficial ownership within 60 days. Under these rules more than one person may be deemed a beneficial owner of the same securities and a person may be deemed to be a beneficial owner of securities as to which such person has no economic interest. The percentages of common stock beneficially owned are calculated on the basis of 32,733,19339,939,965 total shares of common sharesstock issued and outstanding after giving effect to the Share Exchange Agreement, inclusionas of stock options, warrants, shares issuable upon the conversion of notes payable and of Series A Preferred Stock, that are convertible into common stock and the percentage of Series A Preferred Stock is based on the 50,000 shares issued and outstanding. Each share of preferred stock is convertible into 85% of the average closing price of the common stock over the last 20 trading days immediately preceding the conversion.March 30, 2023.

Unless otherwise indicated below, to the best of our knowledge each beneficial owner named in the table has sole voting and sole investment power with respect to all shares beneficially owned, subject to community property laws where applicable.

* Less than 1%.

Changes in Control

Except for matters described in this CurrentAnnual Report regarding the Share Exchange Agreement, and our Series A Preferred Stock, we are unaware of any contract or other arrangement or provisions of our Articles or Bylaws the operation of which may at a subsequent date result in a change of control of us. There are not any provisions in our Articles or Bylaws, the operation of which would delay, defer, or prevent a change in control of us.the Company.

Equity Compensation Plan Information

The following table gives information about our common stock that may be issued upon the exercise of options, warrants and rights under our 2020 Equity Compensation Plan as of December 31, 2020. Our shareholders have not approved this plan.2022.