Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to _____

Commission File Number 001-40734

AERWINS TECHNOLOGIES INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware		86-2049355
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

The Walnut Building 691 Mill St, Suite 204 Los Angeles, CA		90021
(Address of Principal Executive Offices)		(Zip Code)

(702)-527-1270

(Registrant’s Telephone Number, Including Area Code)

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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.000001 par value per share	AWIN	The Nasdaq Stock Market LLC
Redeemable Warrants, each whole warrant exercisable for one-hundredth of a share of Common Stock at an exercise price of $1,150 per share	AWINW	The Nasdaq Stock Market LLC

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

Title of each class

N/A

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. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

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

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

The aggregate 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 was approximately $16,752,613 as of the last business day of the registrant’s most recently completed second fiscal quarter. For purposes of this computation, all officers, directors, and 10% beneficial owners of the registrant are deemed to be affiliates. Such determination should not be deemed to be an admission that such officers, directors, or 10% beneficial owners are, in fact, affiliates of the registrant.

There were 924,890 shares of the registrant’s common stock, $0.000001 par value per share, outstanding as of May 24, 2024.

TABLE OF CONTENTS

Note About Forward-Looking Statements

PART I	FINANCIAL INFORMATION

Item 1.	Financial Statements	3

	Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023	3

	Statements of Operations and Comprehensive Income (Loss) for the three ended March 31, 2024 and 2023 (Unaudited)	4

	Statements of Changes in Shareholders’ Deficiency as of March 31, 2024 and 2023 (Unaudited)	5

	Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (Unaudited)	7

	Notes to Financial Statements (Unaudited)	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24

Item 3.	Quantitative and Qualitative Disclosure About Market Risk	38

Item 4.	Controls and Procedures	38

PART II	OTHER INFORMATION

Item 1.	Legal Proceedings	39

Item 1A.	Risk Factors	39

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39

Item 3.	Defaults Upon Senior Securities	39

Item 4.	Mine Safety Disclosures	39

Item 5.	Other Information	39

Item 6.	Exhibits	40

	Signatures	41

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q and the documents incorporated herein by reference contain forward-looking statements. Such forward-looking statements are based on current expectations, estimates and projections about AERWINS Technologies Inc.’s industry, management beliefs, and assumptions made by management. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict; therefore, actual results and outcomes may differ materially from what is expressed or forecasted in any such forward-looking statements. Although we believe the expectations reflected in our forward-looking statements are based upon reasonable assumptions, it is not possible to foresee or identify all factors that could have a material effect on the future financial performance of the Company. The forward-looking statements in this Quarterly Report on Form 10-Q are made on the basis of management’s assumptions and analyses, as of the time the statements are made, in light of their experience and perception of historical conditions, expected future developments and other factors believed to be appropriate under the circumstances. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained in this Quarterly Report on Form 10-Q and the information incorporated by reference in this Quarterly Report on Form 10-Q to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.

PART I-FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AERWINS TECHNOLOGIES INC.

BALANCE SHEETS

	March 31,			December 31,
	2024			2023
	(unaudited)			(audited)
ASSETS
Current Assets:
Cash and cash equivalents	$	163,275		$	2,072
Prepaid expenses		835,758			983,255
Assets of discontinued operations		-			81,332
Total current assets		999,033			1,066,659
Total Assets	$	999,033		$	1,066,659
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities:
Short-term loans payable	$	272,835		$	278,618
Accounts payable		2,057,534			1,918,803
Accounts payable, related party		313,428			341,424
Accounts payable		313,428			341,424
Accrued expenses		587,317			496,265
Accrued expenses, related party		110,855			146,255
Accrued expenses		110,855			146,255
Notes payable		1,480,000			1,480,000
Others payable		132,980			132,980
Liabilities of discontinued operations		350,000			8,244,485
Total Current Liabilities		5,304,949			13,038,830
Longer-term liabilities:
Long-term convertible promissory note, net		2,110,850			1,519,403
Derivative liability		1,293,276			1,367,140
Warrant liability		257,764			400,924
Non-current liabilities of discontinued operations		-			3,221,007
Total long-term liabilities		3,661,890			6,508,474
Total Liabilities		8,966,839			19,547,304
Stockholders’ Deficit:
Common stock, par value $0.000001, 400,000,000 shares authorized; 885,987 and 626,890 shares issued and outstanding, respectively in March 31, 2024 and December 31, 2023*		66			62
Preferred stock, par value $0.000001, 20,000,000 shares authorized; No shares issued and outstanding*		-			-
Additional Paid-in capital		56,091,972			55,549,976
Accumulated deficit		(63,484,844	)		(72,411,375	)
Treasury stock		(575,000	)		(575,000	)
Accumulated other comprehensive loss		-			(1,044,308	)
Stockholders’ Deficit		(7,967,806	)		(18,480,645
Total Liabilities and Stockholders’ Deficit	$	999,033		$	1,066,659

*	Retrospectively restated for effect of the business combination on February 6, 2023.
*	Retrospectively adjusted for effect of share consolidation on a basis of 1 post-consolidation share for each 100 pre-consolidation on April 2, 2024.

See Notes to financial statements.

AERWINS TECHNOLOGIES INC.

STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	For the three months ended March 31,			For the three months ended March 31,
	2024			2023

Operating expenses:
Selling expenses	$	-		$	-
General and administrative expenses		620,380			3,574,882
Research and development expenses		-			-
Total operating expenses		620,380			3,574,882

Loss from operations		(620,380	)		(3,574,882	)

Other income (expenses):
Interest expense		(98,811	)		-
Amortization of debt discount		(311,285	)		-
Gain on foreign currency transactions		5,663			-
Gain on fair value adjustments of warrant		143,160			86,251
Loss on fair value adjustments of derivative		(378,685	)		-
Gain on debt modification		172,387			-
Gain on deconsolidation		10,014,482			-

Total other income		9,546,911			86,251

Income (Loss) before income tax provision		8,926,531			(3,488,631	)
Income tax expense		-			-
Net income (loss) from continuing operations		8,926,531			(3,488,631	)

Discontinued operations (Note 17)
Loss from discontinued operations		-			(4,312,913	)

Net Income (Loss)		8,926,531			(7,801,544	)

Other Comprehensive income (loss):
Foreign currency translation adjustment		1,044,308			(55,127	)

Total Comprehensive income (loss)		9,970,839			(7,856,671	)

Net earnings (loss) per common share from continuing operations
Basic		12.12			(6.58	)
Diluted		12.12			(6.58	)

Net earnings (loss) per common share from discontinuing operations
Basic		0.00			(8.14	)
Diluted	$	0.00		$	(8.14	)

Weighted average common shares outstanding*
Basic*		736,765			529,844
Effect of dilutive securities
Convertible debt*		51,766			-
Conversion of option warrants*		144,420			93,758
Diluted*		832,951			623,602

*	Retrospectively restated for effect of the business combination on February 6, 2023.
*	Retrospectively adjusted for effect of share consolidation on a basis of 1 post-consolidation share for each 100 pre-consolidation on April 2, 2024.

See Notes to Financial Statements

AERWINS TECHNOLOGIES INC.

STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIT

(Unaudited)

	Shares		Amount		Shares		Amount		Capital			Deficit)			Stock			Income			Totals
	Common Stock				Preferred stock
	400,000,000 authorized				20,000,000 authorized				Additional			Retained						Accumulated
	$0.000001 Par Value				$0.000001 Par Value				Paid-in (Registered)			Earnings (Accumulated			Treasury			Other Comprehensive
	Shares		Amount		Shares		Amount		Capital			Deficit)			Stock			Income			Totals

Balance at January 1, 2023		469,297	$	47		-	$	-	$	49,299,343		$	(46,472,904	)	$	-		$	(917,582	)	$	1,908,904

Issuance of common stock prior to the closing of Business Combination		50,000		5		-		-		(1,156,124	)		-			-			-			(1,156,119	)

Reverse recapitalization		37,402		4		-		-		(878,120	)		-			-			-			(878,116	)

Issuance of common stock warrants for services		4,132		-		-		-		4,338,298			-			-			-			4,338,298

Acquisition of treasury stock		575		-		-		-		-			-			(575,000	)		-			(575,000	)

Net loss		-		-		-		-		-			(7,801,544	)		-			-			(7,801,544	)

Other comprehensive loss		-		-		-		-		-			-			-			(55,127	)		(55,127	)

Balances at March 31, 2023		561,406	$	56	$	-	$	-	$	51,603,397		$	(54,274,448	)	$	(575,000	)	$	(972,709	)	$	(4,218,704	)

	Common Stock				Preferred stock
	400,000,000 authorized				20,000,000 authorized				Additional		Retained						Accumulated
	$0.000001 Par Value				$0.000001 Par Value				Paid-in (Registered)		Earnings (Accumulated			Treasury			Other Comprehensive
	Shares		Amount		Shares		Amount		Capital		Deficit)			Stock			Income			Totals

Balances at January 1, 2024		626,890	$	62	$	-	$	-	$	55,549,976	$	(72,411,375	)	$	(575,000	)	$	(1,044,308	)	$	(18,480,645	)
Balances		626,890	$	62	$	-	$	-	$	55,549,976	$	(72,411,375	)	$	(575,000	)	$	(1,044,308	)	$	(18,480,645	)

Issuance of common shares for services		51,317		-		-		-		-		-			-			-			-

Issuance of common shares		135,500		4		-		-		541,996		-			-			-			542,000

Adjustment for share consolidation		72,305		-		-		-		-		-			-			-			-

Net income		-		-		-		-		-		8,926,531			-			-			8,926,531
Net income (loss)		-		-		-		-		-		8,926,531			-			-			8,926,531

Other comprehensive income		-		-		-		-		-		-			-			1,044,308			1,044,308
Other comprehensive income (loss)		-		-		-		-		-		-			-			1,044,308			1,044,308

Balances at March 31, 2024		886,012		66		-		-		56,091,972		(63,484,844	)		(575,000	)		-			(7,967,806	)
Balances		886,012		66		-		-		56,091,972		(63,484,844	)		(575,000	)		-			(7,967,806	)

*	Retrospectively restated for effect of the business combination on February 6, 2023.
*	Retrospectively adjusted for effect of share consolidation on a basis of 1 post-consolidation share for each 100 pre-consolidation on April 2, 2024.

See Notes to Financial Statements

AERWINS TECHNOLOGIES INC.

STATEMENTS OF CASH FLOWS

(Unaudited)

	2024			2023
	For the three months ended
	March 31,			March 31,
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	8,926,531		$	(7,801,544	)
Net loss from discontinued operations		-			(4,312,913	)
Net income (loss) from continuing operations		8,926,531			(3,488,631	)
Adjustments to reconcile net loss to net cash provided (used) by operating activities:
Interest expense		98,811			-
Amortization of debt discount		311,285			-
Share-based compensation		225,630			3,338,298
Gain on fair value adjustments of warrant		(143,160	)		(86,251	)
Gain on deconsolidation		(10,014,482	)		-
Gain on foreign currency translations		(5,663	)		-
Gain on debt modification		(172,387	)		-
Change in fair value of derivative liability		378,685			-

Increase in operating assets:
Prepaid expenses		(78,133	)		(240,814	)
Increase (Decrease) in operating liabilities:
Accounts payable		163,241			196,705
Accounts payable, related party		(27,996	)		-
Accrued expenses		(7,759	)		28,283
Accrued expenses, related party		(35,400	)		-
Others payable		-			1,062,784
Net cash provided by (used) continuing operations		(380,797	)		810,374
Net cash used by discontinued operations		-			(4,040,590	)
Net cash used by operating activities		(380,797	)		(3,230,216	)

CASH FLOWS FROM INVESTING ACTIVITY
Net cash used by continuing operations		-			-
Net cash used by discontinued operations		-			(45,559	)
Net cash used by investing activity		-			(45,559	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of shares		542,000			-
Proceeds from reverse recapitalization with AERWINS Inc., net		-			1,595,831
Net cash provided by continuing operations		542,000			1,595,831
Net cash provided by discontinued operations		-			1,470,886
Net cash provided by financing activities		542,000			3,066,717

Net increase (decrease) in cash and cash equivalents		161,203			(209,058	)
Effects of exchange rates change on cash		-			(61,552	)
Cash and cash equivalents at beginning of period		2,072			-
Cash and cash equivalents at beginning of period held by discontinued operation		-			300,943
Cash and cash equivalents at ending of the period held by discontinued operation		-			-
Cash and cash equivalents at end of period	$	163,275		$	30,333

Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest	$	-		$	-
Income taxes	$	-		$	-

See Notes to Financial Statements

AERWINS TECHNOLOGIES INC.

NOTES TO FINANCIAL STATEMENTS

March 31, 2024

(unaudited)

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

AERWINS Technologies Inc., a Delaware corporation (the “Company,” “we,” “us,” or “AERWINS”) together with its wholly owned subsidiary Aerwin Development CA LLC, a California limited liability company (“Aerwin Development”), is redesigning its single-seat optionally Manned Air Vehicle (“MAV” or “Manned Air Vehicle”). Aerwin Development was incorporated under the laws of the State of California on October 18, 2023. All refences in this report on Form 10-Q to the “Company,” “we,” “us,” or “AERWINS” include both AERWINS and Aerwin Development.

Pono Capital Corp Merger

On February 3, 2023, we consummated a merger (the “Merger”) with Pono Merger Sub, Inc., a Delaware corporation (“Merger Sub”) and a wholly-owned subsidiary of the Company, then called Pono Capital Corp., a Delaware corporation (“Pono”) with and into AERWINS, Inc. (formerly named AERWINS Technologies Inc.), a Delaware corporation pursuant to an agreement and plan of merger, dated as of September 7, 2022 (as amended on January 19, 2023, the “Merger Agreement”), by and among Pono, Merger Sub, AERWINS, Mehana Equity LLC, a Delaware limited liability company (“Sponsor” or “Purchaser Representative”) in its capacity as the representative of the stockholders of Pono, and Shuhei Komatsu in his capacity as the representative of the stockholders of AERWINS, Inc. (“Seller Representative”). The Merger and other transactions contemplated thereby (collectively, the “Business Combination”) closed on February 3, 2023 when pursuant to the Merger Agreement, Merger Sub merged with and into AERWINS, Inc. with AERWINS, Inc. surviving the Merger as a wholly-owned subsidiary of Pono, and Pono changed its name to “AERWINS Technologies Inc.” and the business of the Company became the business of AERWINS, Inc., and this business section primarily includes information regarding the AERWINS’, Inc. business.

The Business Combination was accounted for as a reverse recapitalization under the accounting principles generally accepted in the United States of America (“U.S. GAAP”). AERWINS was determined to be the accounting acquirer and Pono was treated as the acquired company for financial reporting purposes. Accordingly, the financial statements of the combined company represent a continuation of the financial statements of AERWINS.

On February 2, 2023, the Company entered into a Subscription Agreement (the “Agreement”) with AERWINS, Inc., and certain investors (collectively referred to herein as the “Purchasers”). Pursuant to the Agreement, the Purchasers agreed to purchase an aggregate 31,963 shares of common stock (the “Shares”) of AERWINS, Inc. which was immediately exchanged for 50,000 Public Shares upon the consummation of the Business Combination in exchange for an aggregate sum of $5,000,000 (the “Purchase Price”) with the Purchase Price being paid to AERWINS, Inc. prior to the closing of the Business Combination (the “Closing”). Effective immediately prior to the Closing, AERWINS, Inc. issued the Shares to the Purchasers and thereafter immediately upon the Closing, the Shares were exchanged for the Public Shares, and the Public Shares were issued as a registered issuance of securities under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to an effective registration filed by the Company on Form S-4 which was declared effective by the Securities and Exchange Commission on January 13, 2023.

On February 3, 2023, the Company received from the Business Combination with Pono net cash of $1,595,831. The Company also assumed $25,750 in prepaid expenses, $1,432,603 in other payable, $1,580,000 in notes payable ($1,480,000 as of December 31, 2023), $643,213 in warrant liabilities. The total funds from the Business Combination were $1,595,831. This amount was available to repay certain indebtedness, transaction costs and for general corporate purposes, which primarily consisted of investment banking, legal, accounting, and other professional fees as follows:

SCHEDULE OF BUSINESS COMBINATION


Cash—Pono trust and working capital cash	$	1,802,594
Cash—Subscription agreement made immediately before the closing		5,000,000
Less: transaction costs and advisory fees		5,206,763
Total funds from the Business Combination	$	1,595,831

Regarding the notes payable of $1,480,000 described above, the Company has not paid by the due date. Accordingly, the Company is regarded as in default and recognizes interest expenses of $199,687 as accrued expenses.

On December 27, 2023, A.L.I. Technologies Inc., a Japanese corporation (“A.L.I.”) which is our wholly-owned indirect subsidiary, filed a voluntary bankruptcy petition with the Tokyo District Court, Civil Division 20, “Tokutei Kanzai Kakari” [Special Trusteeship Section], Case ID: No. 8234 of 2023 (Fu). A bankruptcy trustee was appointed on January 10, 2024, and proceedings have commenced. As a result of the filing of the Bankruptcy Proceedings and the January 10 Order, the Company concluded that it no longer controls A.L.I. for accounting purposes as of January 10, 2024, in accordance with U.S. GAAP Accounting Standards Codification 810, and, therefore, A.L.I.’s assets and liabilities have been deconsolidated from the Company’s consolidated financial statements prospectively, during the three months ended March 31, 2024.

On April 2, 2024, the Company consolidated its issued and outstanding share on the basis of one post-consolidation share for each 100 pre-consolidation common shares. All share figures and references have been retrospectively adjusted.

NOTE 2 - GOING CONCERN

The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of and for the three months ended March 31, 2024, the Company has an accumulated deficit of $63,484,844. On December 27, 2023, the Company discontinued the operations of A.L.I. Technologies Inc., a Japanese corporation (“A.L.I.”) which is its wholly-owned indirect subsidiary and filed a voluntary bankruptcy petition with the Tokyo District Court, Civil Division 20, “Tokutei Kanzai Kakari” [Special Trusteeship Section], Case ID: No. 8234 of 2023 (Fu). A bankruptcy trustee was appointed on January 10, 2024, and proceedings have commenced. As a result of the filing of the Bankruptcy Proceedings and the January 10 Order, the Company concluded that it no longer controls A.L.I. for accounting purposes as of January 10, 2024, in accordance with U.S. GAAP Accounting Standards Codification 810, and, therefore, A.L.I.’s assets and liabilities have been deconsolidated from the Company’s consolidated financial statements prospectively, during the three months ended March 31, 2024. These factors raise substantial doubt on the Company’s ability to continue as a going concern.

Although the Company moved its operations to Los Angeles, California where it is planning to redesign its MAV and eventually commence production in order to generate sufficient revenue, the Company’s cash position is not sufficient to support the Company’s daily operations. Management intends to raise additional funds by way of debt, or a private or public offering. While the Company believes in the viability of its strategy to commence production of the MAV following its redesign in order to generate sufficient revenue and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of debt, or a public or private offering. In addition, the Company may be the subject of complaints or litigation from customers, suppliers, employees, creditors of A.L.I. stemming from its bankruptcy proceedings or other third parties for various actions. The damages sought against the Company in some of these litigation proceedings could be substantial. The Company cannot assure its stockholder that the Company will always have meritorious defenses to the plaintiffs’ claims. While the ultimate effect of these legal actions cannot be predicted with certainty, the Company’s reputation and the result of operations could be negatively impacted. The proceedings the Company may be involved in from time to time, including the A.L.I. Bankruptcy proceedings, could incur substantial judgments, fines, legal fees or other costs and have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows.

Further, the Company has a significant amount of indebtedness. As of March 31, 2024 and December 31, 2023, the Company had total liabilities of $8,966,839 and $19,547,304, respectively. In addition, A.L.I.’s December 27, 2023 bankruptcy filing constituted an event of default pursuant to the secured convertible notes in the aggregate principal amount of $4,200,000 issued by us to Lind Global on April 12, 2023 and May 23, 2023 and as amended on August 25, 2023 (the “Lind Notes”). Pursuant to the terms of the January Note Amendments and the SPA Amendment, if the Company completes a Public Offering of our securities and make the Mandatory Prepayment no later than April 15, 2024, as provided for in the January Note Amendments, Lind Global has agreed to forbear enforcement of its rights due to the event of default. Since the Company was unable to fulfill these obligations, Lind Global has, at its option, the right to (1) demand payment of an amount equal to 120% of the outstanding principal amount of the Notes and (2) exercise all other rights and remedies available to it under the Notes and other agreements entered into among the Company and Lind in connection with the issuance of the Notes, subject to the Floor Price and cash payment.

The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying financial statements have been prepared in accordance with U.S. GAAP and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).

Unaudited Interim Financial Information

The accompanying interim balance sheet as of March 31, 2024, the interim statements of operations and comprehensive income (loss), statements of changes in shareholders’ equity (deficiency), and cash flows for the three months ended March 31, 2024 and 2023 and the related notes to such interim financial statements are unaudited. These unaudited interim financial statements have been prepared in accordance with U.S. GAAP. In management’s opinion, the unaudited interim financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position as of March 31, 2024 and the Company’s results of operations and cash flows for the three months ended March 31, 2024 and 2023. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full year ending December 31, 2024.

Use of Estimates

In preparing the financial statements in conformity with U.S. GAAP, the management is required to make certain 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 period. These estimates are based on information available as of the date of the financial statements. Significant estimates required to be made by management include, but are not limited to, the allowance for doubtful accounts, useful lives of property and equipment, the impairment of long-lived assets, and valuation allowance of deferred tax assets. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and deposits in banks that are unrestricted as to withdrawal or use, and which have original maturities of three months or less.

Accounts Receivable, net

Accounts receivable, net represent the amounts that the Company has an unconditional right to consideration, which are stated at the original amount less an allowance for doubtful receivables. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the statements of operations and comprehensive income. Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is remote. In circumstances in which the Company receives payment for accounts receivable that have previously been written off, the Company reverses the allowance and bad debt.

Inventories

Inventories consist principally of raw materials used for rendering computing sharing services and for manufacturing hoverbikes. Work in progress represents the costs incurred to date on unfinished products or services. The costs recognized as work in progress include direct materials, direct labor, and overhead costs that are directly attributable to the production of the unfinished product or service. Inventories are stated at the lower of cost or net realizable value, cost being determined by the first-in, first-out method for merchandise. Net realizable value is calculated at estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Loss from inventories written down to net realizable value should be recognized whenever the utility of goods is impaired by damage, deterioration, obsolescence, changes in price levels, or other causes. When inventories have been written down below cost, the reduced amount is to be considered the cost for subsequent accounting purposes.

Fixed assets

Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives, as more details follow:

	Depreciation Method	Useful Life
Building and building accessories	Straight-line method	8-38 years
Office equipment and furniture	Straight-line method	2-10 years
Software	Straight-line method	5 years
Design right	Straight-line method	7 years
Patent right	Straight-line method	8 years

Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the statements of operations and comprehensive income (loss).

Impairment of Long-Lived Assets

Long-lived assets with finite lives, primarily property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair value.

Warrant Liabilities

We account for the Warrants in accordance with the guidance contained in Accounting Standards Codification (“ASC”) 815-40 — Derivatives and Hedging — Contracts in Entity’s Own Equity (“ASC 815), under which the Warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, we classify the Warrants as liabilities at their fair value and adjust the Warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in our statements of operations. The Placement Warrants, Public Warrants, and Debt Warrants for periods where no observable traded price was available are valued using a Black Scholes model.

Share-based Compensation

We account for the share-based compensation in accordance with the guidance contained in Accounting Standards Codification (“ASC”) 718 — “Compensation – Stock Compensation” and ASC 505, “Equity Based Payments to Non-Employees”, using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.

Convertible Promissory Notes and Derivative Instruments

The Company accounts for the fair value of the conversion feature in accordance with the guidance contained in ASC 815, which requires the Company to bifurcate and separately account for the conversion feature as an embedded derivative contained in the Company’s convertible promissory note. Accordingly, we account for the conversion option as an embedded derivative contained in the Company’s promissory note at fair value. The derivative liability is required to be remeasured at each reporting date and the change in fair value is recognized in our statements of operations.

Statements of Cash Flows

In accordance with FASB ASC 830-230, “Statement of Cash Flows”, cash flows from the Company’s operations are calculated based upon the functional currency. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheet.

Revenue Recognition

The Company recognizes revenue in accordance with ASC Topic 606, “Revenue from Contracts with Customers”.

To determine revenue recognition for contracts with customers, the Company performs the following five steps : (i) identify the contract(s) with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. Revenue amount represents the invoiced value and net of a value-added tax (“Consumption Tax”). The Consumption Tax on sales is calculated at 10% of gross sales.

When another party is involved in providing goods or services to our customer, we apply the principal versus agent guidance in ASC Topic 606 to determine if we are the principal or an agent to the transaction. When we control the specified goods or services before they are transferred to our customer, we report revenue gross, as principal. If we do not control the goods or services before they are transferred to our customer, revenue is reported net of the fees paid to the other party, as agent.

Cost of Revenues

Cost of revenues primarily consists of salaries and related expenses (e.g. bonuses, employee benefits, and payroll taxes) for personnel directly involved in the delivery of services and products directly to customers. Cost of revenues also includes royalty/license payments to vendors, hosting and infrastructure costs related to the delivery of the Company’s products and services, and inventory write-down.

Advertising Expenses

Advertising expenses consist primarily of costs of promotion and marketing for the Company’s image and products, and costs of direct advertising, and are included in selling expenses. The Company expenses advertising costs as incurred, in accordance with the ASC 720-35, “Advertising Costs”.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to credit risk consist primarily of accounts and other receivables. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable.

Comprehensive Income or Loss

ASC 220, “Comprehensive Income,” establishes standards for reporting and display of comprehensive income or loss, its components and accumulated balances. Comprehensive income or loss as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive loss, as presented in the accompanying statements of changes in shareholders’ deficit, consists of changes in unrealized gains and losses on foreign currency translation.

Earnings (Loss) Per Share

The Company computes basic and diluted earnings (loss) per share in accordance with ASC 260, Earnings per Share. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the reporting period. Diluted earnings (loss) per share reflects the potential dilution that could occur if stock options and other commitments to issue common shares were exercised or equity awards vest resulting in the issuance of common shares that could share in the earnings (loss) of the Company.

Related Parties and Transactions

The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, “Related Party Disclosures” and other relevant ASC standards.

Parties, which can be an entity or individual, are considered to be related if they have the ability, directly or indirectly, to control the Company or exercise significant influence over the Company in making financial and operational decisions. Entities are also considered to be related if they are subject to common control or common significant influence.

Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated.

Income Taxes

Income taxes are accounted for using an asset and liability method of accounting for income taxes in accordance with ASC 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current period and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets also include the prior years’ net operating losses carried forward. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.

The Company follows ASC 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures.

Under the provisions of ASC 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statements of operations.

Fair Value Measurements

The Company performs fair value measurements in accordance with ASC 820. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset’s or a liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value.

	●	Level 1: quoted prices in active markets for identical assets or liabilities;
	●	Level 2: inputs other than Level 1 that are observable, either directly or indirectly; or
	●	Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities.

Contingencies

Certain conditions may exist as of the date financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company is subject to potential liabilities generally incidental to our business arising out of present and future lawsuits and claims related to product liability, personal injury, contract, commercial, intellectual property, tax, employment, compliance and other matters that arise in the ordinary course of business. When a loss is considered probable and reasonably estimable, we record a liability in the amount of our best estimate for the ultimate loss.

Discontinued Operations

ASC 205-20 provides guidance on discontinued operation presentation requirements. In determining whether a group should be presented as discontinued operations, the company makes a determination of whether such a group being disposed of comprises a component of the entity, or a group of components of the entity, that represents a strategic shift that has, or will have, a major effect on the company’s operations and financial results. If these determinations are made affirmatively, the results of operations of the group being disposed of are aggregated for separate presentation apart from the continuing operations of the Company for all periods presented in the financial statements.

Recent Accounting Pronouncements

We did not implement any new accounting pronouncements during 2023. However, we are evaluating the impact of the future disclosures that may arise under recent SEC and other promulgators’ recently finalized rules and outstanding proposals.

NOTE 4 – PREPAID EXPENSES

SCHEDULE OF PREPAID EXPENSES

	March 31, 2024		December 31, 2023
Prepaid expenses	$	835,758	$	983,255
Total	$	835,758	$	983,255

Of the total prepaid expenses as at March 31, 2024 of $753,407 (December 31, 2023 - $983,255), is attributable to prepaid stock-based compensation.

NOTE 5 – LOANS PAYABLE

Notes payable

On January 31, 2023, the Company promised to pay to Mahana Equity LLC, the principal sum of $1,130,000. In the case of an event of default, this note bear interest at a rate of 24% per annum until such event of default is cured. The principal amount of this Note and any accrued interest shall be payable on the earlier of raising more than $5,000,000 from Pono’s SEPA with Yorkville or as follows: (i) $300,000 on April 10, 2023 (ii) $300,000 on May 10, 2023; (iii) $300,000 on June 30, 2023; and (iv) $230,000 on July 31, 2023.

On January 31, 2023, the Company promised to pay to a third party lender the principal sum of $450,000. In the case of an event of default, this note bear interest at a rate of 24% per annum until such event of default is cured. The principal amount of this Note and any accrued interest shall be payable (the “Maturity date”) as follows (i) $100,000 on April 10, 2023 (ii) $100,000 on May 10, 2023; (iii) $100,000 on June 30, 2023; (iv) $100,000 on July 31, 2023; and (v) $50,000 on August 31, 2023.

As at March 31, 2024, the notes payable balance was $1,480,000 in default and recognized interest expenses of $288,243 as accrued expenses.

The Company also received loans totaling $272,835 from third parties. These loans bear interest of 15% per annum and are due 12 months from issue date. As at March 31, 2024, the loan balance including the accrued interest expense of $15,775 is $288,610 (December 31, 2023 - interest expense of $5,521 is $283,896).

NOTE 6 — RELATED PARTY TRANSACTIONS

Guarantee provided by a director of A.L.I.

For the year ended December 31, 2023, the Company received a debt guarantee from the Representative Director of A.L.I. Daisuke Katano for a particular building lease agreement. The transaction amount is $5,961 which is calculated by the total unpaid rental fees for the contracts for which guarantees were provided as of December 31, 2023. No warranty fees are paid.

Loan from a former director of Aerwins

On February 27, 2023, the Company’s wholly owned subsidiary in Japan, A.L.I. Technologies, entered into a loan agreement with Shuhei Komatsu, the Company’s previous Chief Executive Officer. Pursuant to the Agreement, Mr. Komatsu agreed to lend A.L.I. 200,000,000 yen (approximately $1,384,370 US Dollars based on a conversion rate of 0.0066921 US Dollar for each 1 yen as of December 31, 2023). The original maturity date of the Loan under the Agreement was April 15, 2023, and was extended to June 30, 2023 (the “Maturity Date”). The interest rate under the Agreement is 2.475% per annum (calculated on a pro rata basis for 365 days a year), and the interest period is from February 27, 2023 until the Maturity Date.

The Company recognizes $72,285 of accrued expenses. On July 19, 2023, Shuhei enforced the pledge and gained control of ASC investment (approximately 48.81% of ASC TECH Agent) due to default status. During the year ended December 31, 2023, the Company derecognized investment in ASC Tech agent in full, derecognized the debt to Shuhei for $227,281, and recognized loss of $666,641. As of December 31, 2023, loan balance is $482,341 (JPY66,037,376).

Payable to Directors of Aerwins

During the year ended December 31, 2023 and three months ended March 31, 2024, one of the Company’s directors, Kiran Sidhu and a former director, Daisuke Katano, paid some payables on behalf of the Company. Mr. Sidhu paid $341,424 in the year 2023 and $45,189 in the period 2024, as at March 31, 2024 amount outstanding is $313,428 (December 31, 2023 - $341,424). Mr. Katano paid $215,725 in the year 2023 and $9,935 is outstanding as of December 31, 2023. The Company will pay to them at an appropriate timing in light of its financial situation.

As at March 31, 2024, an amount of $14,524 (December 31, 2023 - $25,924) was payable to previous executive officer and $96,331 (December 31, 2023 - $120,331) was payable to previous and current directors of the Company in accrued fees.

NOTE 7 – CONVERTIBLE PROMISSORY NOTES, NET

On April 12, 2023, the Company entered into a Securities Purchase Agreement (the “SPA”) with Lind Global Fund II LP (the “Investor”). On April 12, 2023, the Company issued first tranche of convertible promissory note of $2,520,000 with maturity date of April 12, 2025 and no interest and issued warrant exercisable for 60 months to acquire 25,327 shares of common stock at $89.26 per share. The note may convert into common shares at the option of the Holder. The conversion price is the lesser of: (i) $9.00; or (ii) 90% of the lowest single VWAP during the 20 Trading Days prior to conversion of the note. On August 25, 2023, the Company entered into an Amendment which amended the conversion price to include a floor price of $18.176. In addition to inclusion of a Floor Price, the Floor Note Amendments also provide that at the option of Selling Security holder, if in connection with a conversion under the Closing Notes, as amended, the Conversion Price is deemed to be the Floor Price, then in addition to issuing the Conversion Shares at the Floor Price, the Company agreed to pay to Selling Securityholder a cash amount equal to (i) the number of shares of common stock that would be issued to Selling Securityholder upon a conversion determined by dividing the dollar amount to be converted being paid in shares of common stock by ninety percent (90%) of the lowest single VWAP during the twenty (20) Trading Days prior to the applicable date of conversion (notwithstanding the Floor Price) less (ii) the number of Conversion Shares issued to Selling Securityholder in connection with the conversion; and (iii) multiplying the result thereof by the VWAP on the Conversion Date. Debt issuance cost of $457,304, original issue discount of $420,000 and additional discount of $1,642,696 are recognized as reduction from the principal amount of the note and will be amortized over the life of the note utilizing straight-line method.

On May 23, 2023, the Company issued second tranche of convertible promissory note of $1,680,000 with maturity date of May 23, 2025 and no interest and issued warrant exercisable for 60 months to acquire 15,685 shares of common stock at $73.16 per share. The note may convert into common shares at the option of the Holder. The conversion price is the lesser of: (i) $9.00; or (ii) 90% of the lowest single VWAP during the 20 Trading Days prior to conversion of the note. On August 25, 2023, the Company entered into an Amendment which amended the conversion price to include a floor price of $18.176. In addition to inclusion of a Floor Price, the Floor Note Amendments also provide that at the option of Selling Securityholder, if in connection with a conversion under the Closing Notes, as amended, the Conversion Price is deemed to be the Floor Price, then in addition to issuing the Conversion Shares at the Floor Price, the Company agreed to pay to Selling Securityholder a cash amount equal to (i) the number of shares of common stock that would be issued to Selling Securityholder upon a conversion determined by dividing the dollar amount to be converted being paid in shares of common stock by ninety percent (90%) of the lowest single VWAP during the twenty (20) Trading Days prior to the applicable date of conversion (notwithstanding the Floor Price) less (ii) the number of Conversion Shares issued to Selling Securityholder in connection with the conversion; and (iii) multiplying the result thereof by the VWAP on the Conversion Date. Debt issuance cost of $245,000, original issue discount of $280,000 and additional discount of $1,133,395 are recognized as reduction from the principal amount of the note and will be amortized over the life of the note utilizing straight-line method.

	●	reduce the aggregate principal amount of the Closing Notes from $4,200,000 to $3,500,000,
	●	require the Company to repay an aggregate of $1,750,000 of the principal amount of the Closing Notes no later than the closing date of a public offering of the Company’s Common Stock where it receives gross proceeds of at least $13,500,000 (the “Public Offering”) by April 15, 2024 and
	●	requires Lind Global to convert no less than an aggregate of $1,750,000 of the Closing Notes no later than 11 months after the closing of the Public Offering, provided that at the time of such conversion Lind Global receives shares of Common Stock that may be disposed of without restrictive legend at their issuance pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”) or pursuant to an available exemption from or in a transaction not subject to the registration requirements of the Securities Act (the “Mandatory Conversion Amount”).

In addition, on January 23, 2024, the Company and Lind Global entered into Amendment No. 2 to Securities Purchase Agreement, subject to the conditions discussed below:

	●	eliminate the obligation of the Company and Lind Global to complete the third closing,
	●	delete the clause obligating the Company to register the shares of common stock issuable upon conversion of the Closing Notes and exercise of the Warrants (collectively, the “Closing Securities”) or pay Lind Global any delay payments as a result of the Company’s failure to register the Closing Securities,
	●	eliminate certain restrictions on the Company’s right to issue equity and debt in future transactions and
	●	eliminate Lind Global’ right to participate in future offerings of the Company’s securities, other than its rights to participate in the Public Offering.

In as much as the Company failed to complete the Public Offering by April 15, 2024, Lind Global is not obligated to fulfill the terms of the January Note Amendments. The Company plans to enter into discussions with Lind Global to extend the time period in which it is obligated to complete the Public Offering.

The modification and default subsequent to the quarter ended March 31, 2024 was accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability as the new amended terms were considered to be substantial modification of an existing financial liability. Accordingly, the Company recognized a decrease of $280,162 in debt discount, and $172,387 in gain on convertible promissory notes term modification.

The notes consist of the following components as of March 31, 2024 and December 31, 2023:

SCHEDULE OF DEBT NOTES

Principal	$	4,200,000
Debt discount		(4,178,395	)
Interest expense		1,497,798
Net Carrying Balance at December 31, 2023	$	1,519,403
Adjustments		280,162
Interest expense		311,285
Net Carrying Balance at March 31, 2024	$	2,110,850

Debt discount is summarized as follows:

	March 31, 2024			December 31, 2023
Debt discount on convertible promissory notes	$	2,680,597		$	4,178,395
Adjustments		(280,162	)		-
Accumulated amortization		(311,285	)		(1,497,798	)
Debt discount on convertible promissory notes, net	$	2,089,150		$	2,680,597

NOTE 8 – DERIVATIVE LIABILITY

The derivative liability is derived from the debt conversion option features in Note 7. They were valued using Monte Carlo simulation model using assumptions detailed below. As of March 31, 2024, the derivative liability was $1,293,276 (December 31, 2023 - $1,367,140). The Company recorded $685,174 gain from changes in derivative liability during the year ended December 31, 2023. In addition, the Company recorded $1,088,477 as excess of derivative expense at initial valuation due to the total debt discount cannot excess the face amount of the convertible note balance. The Monte Carlo simulation model with following assumptions:

SCHEDULE OF DERIVATIVE LIABILITY

Volatility		135.75	%
Risk-free rate		4.966% - 5.016	%
Stock price (pre-consolidated)	$	0.0648
Dividend Yield		-
Expected life		1.03 – 1.15 years

Fair value of the derivative is summarized as below:

	Derivative Liability
Balance at January 1, 2023	$	-
Additions		2,052,314
Change in fair value		(685,174	)
Ending Balance, December 31, 2023		1,367,140
Adjustments		(452,549	)
Change in fair value		378,685
Ending Balance, March 31, 2024	$	1,293,276

NOTE 9 – WARRANT LIABILITY

The warrant liability is derived from warrants issued as debt warrants in Note 7, public warrants and placement warrants.

As of March 31, 2024, the total fair value of the warrant liability was $257,764 (December 31, 2023 - $400,924).

The following table provides a reconciliation of the warrants measured at fair value using Level 1 inputs:

	Public warrants
Balance at January 1, 2023	$	-
Additions		-
Transfer from Level 2		603,750
Change in fair value		(486,450	)
Ending Balance, December 31, 2023	$	117,300
Change in fair value		(9,488	)
Ending Balance, March 31, 2024	$	107,812

The Black-Scholes model with the following assumptions inputs:

Volatility		135.75	%
Risk-free rate		4.966% - 5.016	%
Stock price (pre-consolidated)	$	0.0648
Expected life		4.04 – 4.15 years

The following table provides a reconciliation of the warrants measured at fair value using Level 2 inputs:

	Public warrants			Placement warrants			Debt warrants
Balance at January 1, 2023	$	-		$	-		$	-
Additions		603,750			39,463			1,812,253
Transfer to Level 1		(603,750	)		-			-
Change in fair value		-			(31,815	)		(1,536,277	)
Ending Balance, December 31, 2023	$	-		$	7,648		$	275,976
Change in fair value		-			(493	)		(133,179	)
Ending Balance, March 31, 2024	$	-		$	7,155		$	142,797

The following table summarizes information regarding warrants by term, granted and exercise price for the three months ended March 31, 2024 and year ended December 31, 2023.

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining contractual life		Aggregate Intrinsic Value
Outstanding at December 31, 2022		-	$	-		-		-
Granted		131,101		831		3.92		-
Outstanding at March 31, 2024 and December 31, 2023		131,101	$	831		3.92	$	-
Exercisable at March 31, 2024 and December 31, 2023		131,101	$	831		3.92	$	-

The intrinsic value is the amount by which the fair value of the underlying share exceeds the exercise price of the warrants. As of March 31, 2024, the share price of the Company was less than the exercise price for all outstanding warrants. Therefore, the intrinsic value for warrants outstanding was zero.

			March 31, 2024				December 31, 2023
	Grant Date	Expiry Date	Number of shares		Exercise price		Number of shares		Exercise price
Public warrants	February 3, 2023	February 3, 2028		86,250	$	1,150		86,250	$	1,150
Placement warrants	February 3, 2023	February 3, 2028		5,638		1,150		5,638		1,150
Debt warrants	April 12, 2023	April 12, 2028		23,527		89		23,527		89
Debt warrants	May 23, 2023	May 23, 2028		15,686		73		15,686		73
				131,101	$	831		131,101	$	831

NOTE 10 – DECONSOLIDATION OF A.L.I.

A.L.I. Bankruptcy

On January 10, 2024, the Court entered an order (the “January 10 Order”) confirming that bankruptcy proceedings are commenced against the debtor A.L.I., that A.L.I. is found to be insolvent, the appointment of Gaku Iida, Attorney-at-Law, of Abe, Ikubo & Katayama be appointed as the trustee in the bankruptcy proceedings (the “Trustee”) and setting the date and place of the meeting to report on the status of property, to report on calculations and hear opinions regarding the disposition of the bankruptcy proceedings on May 14, 2024, at 10:00 a.m. local time in the Court (the “Status Report Meeting”). The Trustee’s address is Fukuoka Bldg. 9F, 2-8-7 Yaesu, Chuo-ku, Tokyo. A trustee has been appointed by the Bankruptcy Court and the trustee has assumed and will continue to exercise control over all assets and liabilities of A.L.I. The assets of A.L.I. will be liquidated for distribution in accordance with the priorities established by the Bankruptcy Act. The Company expects that no distributions will be available in A.L.I’s liquidation.

The following table provides the carrying value of assets and liabilities of A.L.I that have been deconsolidated during the three months ended March 31, 2024:

SCHEDULE OF DECONSOLIDATED

As at	January 10, 2024
ASSETS
Current Assets:
Cash and cash equivalents	$	81,332
Total Assets	$	81,332
LIABILITIES
Current Liabilities:
Short-term loans payable	$	861,540
Accounts payable		4,403,030
Accrued expenses		1,254,820
Others payable		101,651
Contract liabilities		751,614
Current portion of long-term loans		204,584
Finance leases liabilities-current		116,002
Operating leases liabilities-current		225,874
Total Current Liabilities		7,919,115
Longer-term liabilities:
Long-term loans		2,873,758
Finance leases liabilities-non-current		31,893
Operating leases liabilities-non-current		145,677
Other long-term liabilities		169,679
Total long-term liabilities		3,221,007
Total Liabilities	$	11,140,122

Net Liabilities deconsolidated		(11,058,790	)
Accumulated other comprehensive loss		1,044,308
		1,044,308

Gain on deconsolidation of A.L.I.	$	10,014,482

NOTE 11 – INCOME TAXES

The income tax provision for the year ended March 31, 2024 and the March 31, 2023 consists of the following:

SCHEDULE OF INCOME TAX PROVISION

	2024		2023
	For the three months ended
	March 31,
	2024		2023
Federal
Current	$	-	$	-
Deferred		-		-

State
Current		-		-
Deferred		-		-

Foreign
Current		-		-
Deferred		-		-

Income Tax Provision	$	-	$	-

The Company has not completed an Internal Revenue Code (“IRC”) Section 382 study to assess whether an ownership change has occurred or whether there have been multiple ownership changes since the Company’s formation.

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of March 31, 2024 and 2023, the management considered the Company did not have any significant unrecognized uncertain tax positions. Accordingly, the Company has not incurred any interest or penalties as of the current reporting date with respect to income tax matters. There were no accrued interest and penalties associated with uncertain tax positions as of March 31, 2024.

The Company does not expect that there will be unrecognized tax benefits of a significant nature that will increase or decrease within 12 months of the reporting date.

No deferred taxes have been provided on the accumulated unremitted earnings, if any, of the Company’s foreign subsidiary that is not subject to United States income tax. The Company periodically evaluates its foreign investment opportunities and plans, as well as its foreign working capital needs, to determine the level of investment required and, accordingly, determines the level of foreign earnings that are considered indefinitely reinvested. Based upon that evaluation, earnings, if any, of the Company’s foreign subsidiary that is not otherwise subject to United States taxation are considered to be indefinitely reinvested, and accordingly, deferred taxes have not been provided. If changes occur in future investment opportunities and plans, those changes will be reflected when known and may result in providing residual United States deferred taxes on unremitted foreign earnings.

NOTE 12 – CONTINGENCIES

The Company is subject to potential liabilities generally incidental to our business arising out of present and future lawsuits and claims related to product liability, personal injury, contract, commercial, intellectual property, tax, employment, compliance and other matters that arise in the ordinary course of business. The Company accrues for potential liabilities when it is probable that future costs (including legal fees and expenses) will be incurred and such costs can be reasonably estimated.

Upon the commencement of the voluntary bankruptcy proceedings of A.L.I., all creditors’ actions are automatically stayed and any new litigation against A.L.I. is barred. In an action relating to the bankruptcy estate, a bankruptcy trustee shall stand as a plaintiff or defendant, as the case may be.

The A.L.I. Bankruptcy constitutes an event of default pursuant to the Closing Notes in the aggregate principal amount of $4,200,000. Consequently, Lind Global may at any time, at its option, (1) demand payment of an amount equal to 120% of the outstanding principal amount of the Closing Notes and (2) exercise all other rights and remedies available to it under the Closing Notes and other agreements entered into among the Company and Lind in connection with the issuance of the Closing Notes (collectively, the “Transaction Documents”); provided, however, that (x) upon the occurrence of the event of default described above, Lind Global, in its sole and absolute discretion (without the obligation to provide notice of such event of default), may: (a) from time-to-time demand that all or a portion of the outstanding principal amount of the Closing Notes be converted into shares of the Company’s common stock at the lower of (i) the then-current Conversion Price (that price being $18.176 per share (the “Floor Price”)) and (ii) eighty-percent (80%) of the average of the three (3) lowest daily volume weighted average prices (“VWAPs”) during the 20 trading days prior to the delivery by Lind Global of the applicable notice of conversion or (b) exercise or otherwise enforce any one or more of Lind Global’s rights, powers, privileges, remedies and interests under the Closing Notes, the Transaction Documents or applicable law.

NOTE 13 – SHAREHOLDERS’ DEFICIT

Aerwins was authorized to issue 400,000,000 shares of common shares, par value of $0.000001 per share, and 20,000,000 shares of preferred shares, par value of $0.000001 per share. Before the Business Combination, the Company was authorized to issue 200,000,000 shares of common stock, par value of $0.0001 per share, and 20,000,000 shares of preferred shares, par value of $0.0001 per share.

Business combination with Pono Capital Corp

On February 3, 2023, the Company consummated the Merger with Pono. On February 2, 2023, the Company entered into a Subscription Agreement with the Purchasers. In total, the number of Public Shares increased by 87,402 at the closing of the Business Combination.

Shares issued in the three months ended March 31, 2024

Recent Sale of Unregistered Securities

On February 27, 2024 and March 22, 2024, we entered into and completed the sale to two unrelated accredited investors (the “Investors”), of 100,000 shares and 35,500 unregistered shares, respectively, of our Common Stock at a price of $4.00 per share for an aggregate of $542,000 in cash (the “Offerings”). The Offerings were made pursuant to the terms of a Subscription Agreement. In connection with the Offerings, the Company entered into a Piggyback Registration Rights Agreement with each Investor whereby the Company agreed to register the Common Stock acquired by the Investor in the Offering if at any time while the Investor remains the holder of such shares, the Company proposes to file any registration statement under the Securities Act of 1933, as amended (the “Securities Act”) with respect to its Common Stock for its own account or for shareholders of the Company for their account, subject to certain customary exceptions.

Shares issued in the year ended December 31, 2023

Shares issued to service providers

The Company agreed with service providers to pay the service fees by issuing common stocks subject to the closing of the business combination. After the closing of the Business Combination, the Company issued 4,132 shares of common stock with fair value of $4,338,298 for the year ended December 31, 2023.

The Company issued 65,484 shares to consultants with fair value of $2,489,179 who provide the Company with several services for the year ended December 31, 2023. These share issuances are recognized as expense at the fair value of the shares at the issuance date.

During the year ended December 31, 2023 the Company also recognized expenses with a fair value of $1,457,400 as obligation to issue shares pursuant to the terms of an engagement agreement between the Company and Boustead dated April 18, 2022, as amended on February 1, 2023 related to services provided in connection with the Business Combination. 51,317 shares were issued on March 11, 2024.

The total amount of fair value of shares issued for the year ended December 31, 2023 was $6,827,477 and $753,407 is recognized as prepaid expenses as at March 31, 2024.

The Company’s outstanding shares increased by 259,097 for the three months ended March 31, 2024, and recognized Common stock of $4 and Additional Paid-in Capital of $541,996. As of March 31, 2024, there were 885,987 of common shares issued. The numbers of common stocks are retrospectively presented to reflect the legal capital of post-merger AERWINS and share consolidation 1 post-consolidation share for each 100 pre-consolidation share.

NOTE 14 – EARNINGS (LOSS) PER SHARE

Basic loss per share is calculated on the basis of weighted-average outstanding common shares. Diluted loss per share is computed on the basis of basic weighted-average outstanding common shares adjusted for the dilutive effect of stock options. Dilutive common shares are determined by applying the treasury stock method to the assumed conversion of share repurchase liability to common shares related to the early exercised stock options.

The computation of basic and diluted loss per share for the three months ended March 31, 2024 and 2023 is as follows:

	2024		2023
	For the three months ended
	March 31,
	2024		2023
Loss per share – basic
Numerator:
Net income (loss) from continuing operations	$	8,926,531	$	(3,488,631	)
Net income (loss) from discontinued operation	$	-	$	(4,312,913	)
Denominator:
Weighted average number of common shares outstanding used in calculating basic earnings (loss) per share		736,765		529,844
Denominator used for loss per share
Earnings (Loss) per share from continuing operations (basic)	$	12.12	$	(6.58	)
Earnings (Loss) per share from continuing operations (anti-diluted)	$	12.12	$	(6.58	)
Earnings (Loss) per share from discontinued operation (basic)	$	0.00	$	(8.14	)
Earnings (Loss) per share from discontinued operation (anti-diluted)	$	0.00	$	(8.14	)

Basic loss per share equals diluted loss per share because the calculation of diluted loss per share would be anti-dilutive.

NOTE 15 – STOCK-BASED COMPENSATION

On July 27, 2022, Aerwins issued stock options to certain directors of the Company which can be exercised for a total of 41,424 shares of the Company’s common stock with an exercise price of $0.015 per share and a vesting period shall commence on the first business day following the occurrence of going public (the “Trigger Date”), and thereafter (i) one third of the option shall vest on the three months anniversary of the Trigger Date, (ii) one third of the option shall vest on the fifteen month anniversary of the Trigger Date; and (iii) the remaining one third of the option shall vest on the twenty seven month anniversary of the Trigger Date. The remaining weighted average contractual life as of March 31, 2024, is 8.33 years.

SCHEDULE OF STOCK BASED COMPENSATION

Grant date		July 27, 2022
Number of shares at grant date		41,424
Outstanding at January 31, 2023		41,424
Forfeiture		(29,692	)
Outstanding at March 31, 2024 and December 31, 2023		11,732
Exercise price	$	0.015
Consideration paid to the Company at the grant date	$	132

The number of shares is retrospectively presented to reflect the Business Combination with Pono and share consolidation 1 post-consolidation share for each 100 pre-consolidation share.

The Company estimated the fair value of the stock-based compensation at $0.005 using the Binomial Option Pricing Model with the following assumption inputs.

Exercise period		5 years
Share price on the issuance date	$	0.01
Volatility		64.22	%
Expected dividend rate		0	%
Risk-free interest rate		2.88	%

NOTE 16 – FAIR VALUE MEASUREMENT

The estimated fair value of the Company’s financial instrument at March 31, 2024 and December 31, 2023 are set forth below. The following summary excludes cash and cash equivalents, accounts receivable, other receivable, short-term loans payable, accounts payable, accrued expenses, contract liability, current portion of long-term debts, current operating and finance lease liabilities and other current liabilities for which fair values approximate their carrying amounts.

	Amount at Fair Value		Level 1		Level 2		Level 3
March 31, 2024
Liabilities
Public Warrants	$	107,812	$	107,812	$	-	$	-
Placement Warrants	$	7,155	$	-	$	7,155	$	-
Debt Warrants	$	142,797	$	-	$	142,797	$	-
Subtotal: Warrant liabilities	$	257,764	$	107,812	$	149,952	$	-
Derivative Liability	$	1,293,276	$	-	$	1,293,276	$	-
Liabilities fair value	$	1,293,276	$	-	$	1,293,276	$	-

	Amount at Fair Value		Level 1		Level 2		Level 3
December 31, 2023
Liabilities
Public Warrants	$	117,300	$	117,300	$	-	$	-
Placement Warrants	$	7,648	$	-	$	7,648	$	-
Debt Warrants	$	275,976	$	-	$	275,976	$	-
Subtotal: Warrant liabilities	$	400,924	$	117,300	$	283,624	$	-
Derivative Liability	$	1,367,140	$	-	$	1,367,140	$	-
Liabilities fair value	$	1,367,140	$	-	$	1,367,140	$	-

The Public Warrants are classified as Level 1 in the fair value hierarchy because they valued using quoted market prices. The Placement Warrants, Debt Warrants, and Derivative Liability are classified as Level 2 in the fair value hierarchy. This classification is based on the availability of significant inputs used in the Black-Sholes model and Monte Carlo simulation, which are observable in the market.

Transfers to/from Levels 1, 2 and 3 are recognized at the end of the reporting period in which a change in valuation technique or methodology occurs. The estimated fair value of the Public Warrants transferred from Level 2 to Level 1 during the period from January 1, 2023 due to the increase of observable market activity.

NOTE 17 – DISCONTINUED OPERATIONS

The carrying value of the assets and liabilities of the discontinued operations in relation to the Company’s operations in A.L.I. have been classified by the Company as discontinued operations as at March 31, 2024 and December 31, 2023 for accounting purpose and are shown below:

SCHEDULE OF DISCONTINUED OPERATIONS

As at	March 31, 2024		December 31, 2023
ASSETS
Current Assets:
Cash and cash equivalents	$	-	$	81,332

Total Assets	$	-	$	81,332
LIABILITIES
Current Liabilities:
Short-term loans payable	$	-	$	836,910
Accounts payable		-		4,403,030
Accrued expenses		-		1,254,820
Others payable		-		101,651
Contract liabilities		350,000		1,101,614
Current portion of long-term loans		-		204,584
Finance leases liabilities-current		-		116,002
Operating leases liabilities-current		-		225,874
Total Current Liabilities		350,000		8,244,485
Longer-term liabilities:
Long-term loans		-		2,873,758
Finance leases liabilities-non-current		-		31,893
Operating leases liabilities-non-current		-		145,677
Other long-term liabilities		-		169,679
Total long-term liabilities		-		3,221,007
Total Liabilities	$	350,000	$	11,465,492

The results of operations in relation to the Company’s operations in ALI have been classified by the Company as discontinued operations for the three months ended March 31, 2024 and 2023 for accounting purpose and are shown below:

	2024		2023
	For the three months ended March 31,
	2024		2023

Revenues	$	-	$	1,265,883
Cost of revenues		-		955,071
Gross profit		-		310,812

Operating expenses:
Selling expenses		-		40,382
General and administrative expenses		-		2,647,569
Research and development expenses		-		2,090,219
Total operating expenses		-		4,778,170

Loss from operations				(4,467,358	)

Other income (expenses):
Interest expenses, net		-		(6,847	)
Loss on foreign currency transaction		-		(11,005	)
Loss on disposal of fixed assets		-		(9,943	)
Equity in earnings of investee		-		6,176
Other income		-		176,064
Total other income		-		154,445

Net loss from discontinued operations		-		(4,312,913	)
Income tax		-		-
Net loss from discontinued operations	$	-	$	(4,312,913	)

NOTE 18 – SUBSEQUENT EVENTS

Effective as of April 2, 2024, the Company completed 100 old to 1 new share consolidation. All share figures and references have been retrospectively adjusted.

Effective April 8, 2024, we authorized the issuance of 38,878 shares to consultants with fair value of $180,000 who provide the Company with services.

Subsequent to the three months ended March 31, 2024, the Company received an aggregate of $100,000 from third parties. The advance is non-interest bearing, unsecured, and due on demand.

Subsequent to the three months ended March 31, 2024, the Company received an aggregate of $140,000 from a third party. The advance is unsecured, due within five months, and 3% compounded interest.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with our audited financial statements and the notes related thereto which are included in “Item 1. Financial Statements and Supplementary Data” of this Quarterly Report on Form 10-Q. Certain information contained in the discussion and analysis set forth below includes forward-looking statements. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those set forth under “Special Note Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q and “Item 1A. Risk Factors” in our Annual Report on Form 10-K (“Annual Report”) filed with the Securities and Exchange Commission (“Commission”) on March 31, 2024.

Overview

AERWINS Technologies Inc., a Delaware corporation (the “Company,” “we,” “us,” or “AERWINS”) through its subsidiaries is redesigning our single-seat optionally Manned Air Vehicle (“MAV” or “Manned Air Vehicle”). We aim to align this vehicle with the stringent requirements of the Federal Aviation Administration’s (“FAA”) Powered Ultra-Light Air Vehicle Category, setting a new standard for safe low-altitude manned flight. Following an evaluation of the viability of other areas of the Company’s business which AWIN considered non-core and our desire to focus solely on our core business of developing an FAA compliant MAV in the United States, we discontinued our non-core operations formerly carried out by our wholly owned indirect subsidiary, A.L.I. Technologies Inc., a Japanese corporation (“ALI”). Following the discontinuation, on December 27, 2023, ALI filed a voluntary bankruptcy petition with the Tokyo District Court, Civil Division 20, “Tokutei Kanzai Kakari” [Special Trusteeship Section], Case ID: No. 8234 of 2023 (Fu). A bankruptcy trustee was appointed on January 10, 2024, and proceedings have commenced. All references in this Quarterly Report on Form 10-Q to the “Company,” “we,” “us,” or “AERWINS” include both AERWINS and ALI, except that references to the “Company” “we,” “us,” or “Pono” in this Item 2 refer to Aerwins Technologies Inc. f/k/a Pono Capital Corp.

We were originally incorporated in Delaware on February 12, 2021 under the name “Pono Capital Corp” as a special purpose acquisition company, formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. On August 13, 2021, we consummated an initial public offering. On February 3, 2023, we consummated a merger (the “Merger”) with Pono Merger Sub, Inc., a Delaware corporation (“Merger Sub”) and a wholly-owned subsidiary of the Company, then called Pono Capital Corp., a Delaware corporation (“Pono”) with and into AERWINS, Inc. (formerly named AERWINS Technologies Inc.), a Delaware corporation pursuant to an agreement and plan of merger, dated as of September 7, 2022 (as amended on January 19, 2023, the “Merger Agreement”), by and among Pono, Merger Sub, AERWINS, Mehana Equity LLC, a Delaware limited liability company (“Sponsor” or “Purchaser Representative”) in its capacity as the representative of the stockholders of Pono, and Shuhei Komatsu in his capacity as the representative of the stockholders of AERWINS, Inc. (“Seller Representative”). The Merger and other transactions contemplated thereby (collectively, the “Business Combination”) closed on February 3, 2023 when pursuant to the Merger Agreement, Merger Sub merged with and into AERWINS, Inc. with AERWINS, Inc. surviving the Merger as a wholly-owned subsidiary of Pono, and Pono changed its name to “AERWINS Technologies Inc.” and the business of the Company became the business of AERWINS, Inc. The Business Combination was accounted for as a reverse recapitalization in accordance with U.S. GAAP. Under this method of accounting, Pono Capital Corp was treated as the acquired company and AERWINS, Inc. was treated as the acquirer for financial statement reporting purposes.

The Business Combination occurred during the period for which the financial information herein is presented. The financial information included in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” reflects the historical operations of the Company prior to the Business Combination and the combined operations after the Business Combination, unless otherwise noted. For additional information on the Business Combination please see the “Explanatory Note” on page 1 of this Quarterly Report on Form 10-Q. For additional information on the corporate history of our Company please see the section titled “Corporate History” on page 20 of our Annual Report.

Business Overview

We were incorporated in the State of Delaware on June 9, 2022. Through our U.S.-based subsidiary, Aerwin Development, we are redesigning our single-seat optionally Manned Air Vehicle (“MAV” or “Manned Air Vehicle”) in the United States. We aim to align this vehicle with the stringent requirements of the Federal Aviation Administration’s (“FAA”) Powered Ultra-Light Air Vehicle Category, setting a new standard for safe low-altitude manned flight. Following an evaluation of the viability of other areas of the Company’s business which AWIN considered non-core and our desire to focus solely on our core business of developing an FAA-compliant MAV in the United States, we discontinued our non-core operations formerly carried out by our wholly owned indirect subsidiary, A.L.I. Technologies Inc., a Japanese corporation (“ALI”). Following the discontinuation, on December 27, 2023, ALI filed a voluntary bankruptcy petition with the Tokyo District Court, Civil Division 20, “Tokutei Kanzai Kakari” [Special Trusteeship Section], Case ID: No. 8234 of 2023 (Fu). A bankruptcy trustee was appointed on January 10, 2024, and proceedings have commenced.

A.L.I. was established in Japan in September 2016 and was acquired by us in August, 2022. The acquisition of A.L.I. was accounted for as a recapitalization among entities under common control since the same controlling shareholders controlled all these entities before and after the transaction. The consolidation of the Company and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the transaction had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. On January 10, 2024, the Company no longer controls A.L.I. resulting in deconsolidation of A.L.I.’s assets and liabilities during the three months ended March 31, 2024.

With the mission of “Transforming society from the sky down,” we aim to realize an “Air Mobility Society” in which cars, specialized crafts, and drones can fly freely. To this end, we are redesigning our single-seat optionally Manned Air Vehicle (“MAV”). We aim to align this vehicle with the stringent requirements of the Federal Aviation Administration’s (“FAA”) Powered Ultra-Light Air Vehicle Category, setting a new standard for safe low-altitude manned flight.

To achieve this goal, we have established AERWIN Development Company LLC, a California subsidiary with offices in Los Angeles, California, and entered into the Letter of Intent with Helicopter Technology discussed above.

Discontinued Operations

As of June 30, 2023, we discontinued providing drone photography services and joint research and development services previously provided within our unmanned air mobility business.

On December 27, 2023, we discontinued the operations of A.L.I. as part of our operations, moved to Los Angeles, California, and continued the development of a line of FAA-compliant manned and unmanned crafts for low-altitude. Following the discontinuation, on December 27, 2023, A.L.I. filed a voluntary bankruptcy petition with the Tokyo District Court, Civil Division 20, “Tokutei Kanzai Kakari” [Special Trusteeship Section], Case ID: No. 8234 of 2023 (Fu). A bankruptcy trustee was appointed on January 10, 2024, and proceedings have commenced.

ALI’s discontinued operations include the manned air mobility business, including the further development of the XTURISMO limited edition hoverbike, the air mobility platform COSMOS (Centralized Operating System for Managing Open Sky), the computing power-sharing business, drone photography business and drone and artificial intelligence research and development business.

For accounting purpose, the results of operations in relation to the Company’s Drone solution service have been classified by the Company as discontinued operations for the years ended December 31, 2023 and 2022.

Key Factors that Affect Our Results of Operations

Our business is affected by many factors which we discuss under the heading “Risk Factors” included elsewhere in this Quarterly Report on Form 10-Q. The following are a few of those key factors that may affect our financial condition and results of operations:

Our Ability to Complete Development of and Manufacture our planned Manned Air Vehicle (“MAV”)

Our results of operations rely on our ability to redesign our single-seat optionally Manned Air Vehicle (“MAV” or “Manned Air Vehicle”) and commence production pursuant to the stringent requirements of the Federal Aviation Administration’s (“FAA”) Powered Ultra-Light Air Vehicle Category, setting a new standard for safe low altitude manned flight. We plan to do this in conjunction with Helicopter Technology Company (“Helicopter Technology”) pursuant to the terms of the Letter of Intent we entered with them effective as of December 19, 2023 described elsewhere in this Form 10-Q.

Our Ability to Develop a Dealer Distribution Network and Market and Sell MAV’s in Sufficient Quantities to Achieve Profitability

Pursuant to the Letter of Intent, we have agreed to provide marketing and support services that includes marketing, sales, advertising, development of a dealer distribution network, online marketplace, and other distribution channels in order to sell sufficient quantities of the MAVs. We plan to sell our MAV’s primarily in the United States, China and Europe beginning in 2027.

Our Ability to Control Costs and Expenses and Improve Our Operating Efficiency

We are aiming to establish a highly profitable structure for a mass production of MAV’s which focuses on design and supply chain control. We plan to select subcontractors and suppliers appropriately based on cost, quality, and delivery date, and seek to build an efficient production system.

Results of Operations

Comparison of Results of Operations for the Three Months Ended March 31, 2024, and 2023

The following table summarizes our operating results as reflected in our statements of income during the three months ended March 31, 2024 and 2023, and provides information regarding the dollar and percentage increase or (decrease) during such periods.

	For the three months ended March 31,
	2024						2023						Variance
	Amount			% of			Amount			% of			Amount			% of
REVENUE	$	-			-	%	$	-			-	%	$	-			-	%
COST OF REVENUE		-			-	%		-			-	%		-			-	%
GROSS LOSS		-			-	%		-			-	%		-			-	%
Operating expenses
Selling expenses		-			-	%		-			-	%		-			-	%
General and administrative expenses		620,380			-	%		3,574,882			-	%		(2,954,502	)		(82.6	)%
Research and development expenses		-			-	%		-			-	%		-			-	%
Total operating expenses		620,380			-	%		3,574,882			-	%		(2,954,502	)		(82.6	)%
Loss from operations		(620,380	)		-	%		(3,574,882	)		-	%		2,954,502			82.6	%
Other income		9,546,911			-	%		86,251			-	%		9,460,660			10,968.8	%
Income (Loss) before income tax provision		8,926,531			-	%		(3,488,631	)			%		12,415,162			(355.9	)%
Income taxes expense		-			-	%		-			-	%		-			-	%
Income (Loss) from continuing operations		8,926,531			-	%		(3,488,631	)		-	%		12,415,162			(355.9	)%
Loss from discounted operations		-			-	%		(4,312,913	)		-	%		4,312,913			(100.0	)%
Net income (loss)	$	8,926,531			-	%	$	(7,801,544	)		-	%	$	16,728,075			(214.4	)%

Operating Expenses

The following table sets forth the breakdown of our operating expenses for the three months ended March 31, 2024 and 2023:

	For the three months ended March 31,
	2024					2023					Variance
	Amount		% of			Amount		% of			Amount			% of
REVENUE	$	-		-	%	$	-		-	%	$	-			-	%
Operating expenses
Selling expenses		-		-	%		-		-	%		-			-	%
General and administrative expenses		620,380		-	%		3,574,882		-	%		(2,954,502	)		(82.6	)%
Research and development expenses		-		-	%		-		-	%		-			-	%
Total operating expenses	$	620,380		-	%	$	3,574,882		-	%	$	(2,954,502	)		(82.6	)%

General and Administrative Expenses

Our general and administrative expenses primarily consist of employee salaries and welfare, consulting for company reorganization and going public, rental expense, and travel and entertainment expenses.

	For the three months ended March 31,
	2024					2023					Variance
	Amount		% of			Amount		% of			Amount			% of
Salaries and welfare	$	12,840		2.1	%	$	67,469		1.9	%	$	(54,629	)		(81	)%
Consulting and professional service fees		583,749		94.1	%		3,488,383		97.6	%		(2,904,634	)		(83.3	)%
Rent expense		-		-	%		64		-	%		(64	)		(100	)%
Office, utility and other expenses		-		-	%		18,709		0.5	%		(18,709	)		(100	)%
Commission fees expenses		1,275		0.2	%		257		-	%		1,018			395.5	%
Other expenses		22,516		3.6	%		-		-	%		22,516			100	%
Total general and administrative expenses	$	620,380		100	%	$	3,574,882		100	%	$	(2,954,502	)		(82.6	)%

* Refers to the percentage of total general and administrative expenses.

Our general and administrative expenses decreased by $2,954,502 or 82.6%, to $620,380 for the three months ended March 31, 2024 from $3,574,882 for the three months ended March 31, 2023, primarily attributable to consulting and professional service fees relating to the business combination with Pono.

Other Income, net

Our other income primarily includes gain on deconsolidation.

Total other income, net, increased by $9,460,660 or 10,968.8% from $86,251 for the three months ended March 31, 2023 to $9,546,911 of income for the three months ended March 31, 2024.

Net Income from Continuing Operations

As a result of the foregoing, we reported a net income of $8,926,531 for the three months ended March 31, 2024 representing a $12,415,162 or 355.9% increase from a net loss of $3,488,631 for the three months ended March 31, 2023. All net loss is attributable to AERWINS Technologies Inc.

Results from Discontinued Operations

As at June 30, 2023, to facilitate cost reduction plan, the Company has made the strategic decision to discontinue drone solution service and on December 27, 2023, the Company discontinued the remaining operations of A.L.I as part of the move of our operations to Los Angeles, California. The results of operations in relation to the Company’s operations in ALI have been classified by the Company as discontinued operations for the three months ended March 31, 2024 and 2023 for accounting purpose and are shown below:

	For the three months ended March 31,
	2024		2023

Revenues	$	-	$	1,265,883
Cost of revenues		-		955,071
Gross profit		-		310,812

Operating expenses:
Selling expenses		-		40,382
General and administrative expenses		-		2,647,569
Research and development expenses		-		2,090,219
Total operating expenses		-		4,778,170

Loss from operations				(4,467,358	)

Other income (expenses):
Interest expenses, net		-		(6,847	)
Loss on foreign currency transaction		-		(11,005	)
Loss on disposal of fixed assets		-		(9,943	)
Equity in earnings of investee		-		6,176
Other income		-		176,064
Total other income		-		154,445

Net loss from discontinued operations		-		(4,312,913	)
Income tax		-		-
Net loss from discontinued operations	$	-	$	(4,312,913	)

Deconsolidation of A.L.I.

A.L.I. Bankruptcy

The following table provides the carrying value of assets and liabilities of A.L.I that have been deconsolidated during the three months ended March 31, 2024:

As at	January 10, 2024
ASSETS
Current Assets:
Cash and cash equivalents	$	81,332
Total Assets	$	81,332
LIABILITIES
Current Liabilities:
Short-term loans payable	$	861,540
Accounts payable		4,403,030
Accrued expenses		1,254,820
Others payable		101,651
Contract liabilities		751,614
Current portion of long-term loans		204,584
Finance leases liabilities-current		116,002
Operating leases liabilities-current		225,874
Total Current Liabilities		7,919,115
Longer-term liabilities:
Long-term loans		2,873,758
Finance leases liabilities-non-current		31,893
Operating leases liabilities-non-current		145,677
Other long-term liabilities		169,679
Total long-term liabilities		3,221,007
Total Liabilities	$	11,140,122

Net Liabilities deconsolidated		(11,058,790	)
Accumulated other comprehensive loss		1,044,308
		1,044,308

Gain on deconsolidation of A.L.I.	$	10,014,482

Liquidity and Capital Resources

As of March 31, 2024, we had $163,275 in cash as compared to $2,072 as of December 31, 2023. As of March 31, 2024, our working capital deficit was $4,305,916.

In assessing our liquidity, management monitors and analyzes our cash, our ability to raise funds and to generate sufficient revenue in the future, and our operating and capital expenditure commitments. We are looking for other sources, such as raising additional capital by issuing shares of stock, to meet our needs for cash. To that end, management is currently scrutinizing potential cost reductions among the operating expenses and other cost reductions to better align our expenses with expected future revenues which resulted in our discontinuance as of December 31, 2023 of our drone photography services and joint research and development services previously provided within our unmanned air mobility business and the discontinuance of our non-core operations formerly carried out by our wholly owned indirect subsidiary, A.L.I. Consequently, the projected revenues from A.L.I.’s businesses we expected when we completed the Business Combination with Aerwins, Inc. will not be achieved. Furthermore, we note that we have a history of operating losses, have not yet achieved profitable operations and expect to incur further losses. We have funded our operations primarily from equity and debt financing and shareholder loans. As of March 31, 2024, cash generated from financing activities was not sufficient to fund operations and, in particular, to fund our growth strategy in the short-term or long-term. In connection with our efforts to obtain additional working capital, we raised $542,000 in cash from the sale of our Common Stock and received various shareholder advances discussed below. See “Liquidity and Capital Resources – Recent Financing Transactions” below. The primary need for liquidity is to fund working capital and general corporate purposes, including the payment of the Mandatory Prepayment portion of the Lind Notes, the expected costs to redesign, build and commercialize our planned MAV and the personnel costs, capital expenditures and the expected costs to redesign, build and commercialize our planned MAV and the personnel costs, capital expenditures and the costs of operating as a public company. The ability to meet these needs depends on our ability to raise funds from debt and/or equity financing which is subject to prevailing economic conditions and financial, business and other factors, some of which are beyond our control. There can be no assurance that additional financing will be available to us when needed or at all, or obtained on commercially reasonable terms acceptable to us.

During the year ended December 31, 2023 and three months ended March 31, 2024, one of the Company’s directors, Kiran Sidhu and a former director, Daisuke Katano, paid some payables on behalf of the Company. Mr. Sidhu paid $341,424 in the year 2023 and $45,189 during the three month period ended March 31,2024, as of March 31, 2024, the aggregate amount outstanding is $313,428. Mr. Katano paid $215,725 in the year 2023 and $9,935 is outstanding as of December 31, 2023. The Company will pay to them at an appropriate timing in light of its lack of adequate working capital.

Subsequent to the three months ended March 31, 2024, the Company received an aggregate of $140,000 from third parties. The advance is non-interest bearing, unsecured, and due on demand.

GOING CONCERN

Certain Effects of Future Sales of our Common Stock May Have on the Exercise of the Warrants

Sales of a substantial number of shares of our Common Stock in the public market by Lind Global and/or by our other existing securityholders, or the perception that those sales might occur, could depress the market price of our Common Stock and could impair our ability to raise capital through the sale of additional equity securities. We are unable to predict the effect that such sales may have on the prevailing market price of our Common Stock. The shares of our common stock issuable upon conversion of the convertible notes held by Lind Global and upon exercise of warrants it holds would represent a substantial percentage of our total outstanding Common Stock as of the date of this report, assuming the sale of all of the Convertible Notes and exercises of all Warrants. Consequently, the sale of all securities that Lind has the right to acquire could result in a significant decline in the public trading price of our Common Stock.

In the event of the exercise of any Warrants for cash, we will receive the proceeds from such exercise. Assuming the exercise in full of all of Warrants for cash, we would receive an aggregate of approximately $2,355,516, but would not receive any proceeds from the sale of the shares of Common Stock issuable upon such exercise. To the extent any of the Warrants are exercised on a “cashless basis,” we will not receive any proceeds upon such exercise. We intend to use the proceeds received from the exercise of the Warrants, if any, for working capital and general corporate purposes, including personnel costs, capital expenditures and the costs of operating as a public company. The amounts that we actually spend for any specific purpose may vary significantly, and will depend on a number of factors including, but not limited to, market conditions. We believe the likelihood that holders of our Warrants will exercise their Warrants, and therefore the amount of cash proceeds we would receive, is dependent upon the trading price of our Common Stock, the last reported sales price for which was $12.80 per share on November 27, 2023. If the trading price of our Common Stock is less than the Warrant Exercise Prices, respectively, we expect that holders of the Warrants will not exercise them. There is no guarantee the Warrants will be in the money following the time they become exercisable and prior to their expiration, and as such, the Warrants may expire worthless and we may receive no proceeds from the exercise of Warrants. We will continue to evaluate the probability of Warrant exercises and the merit of including potential cash proceeds from the exercise of the Warrants in our future liquidity projections, but we do not currently expect to rely on the cash exercise of Warrants to fund our operations. We instead currently expect to rely on the sources of funding described below, if available on reasonable terms or at all.

Recent Financing Transactions

Lind Global Financing. On April 12, 2023, we entered into the Purchase Agreement with Lind Global pursuant to which we agreed to issue to Lind Global up to three secured convertible promissory notes (the “Convertible Notes” and each a “Convertible Note”) in the aggregate principal amount of $6,000,000 for an aggregate purchase price of $5,000,000 and warrants (the “Warrants” and each a “Warrant”) to purchase 56,016 shares of the Company’s common stock (the “Transaction”). On August 25, 2023 (the “Amendment Date”), we entered into an Amendment to Senior Convertible Promissory Note First Closing Note and an Amendment to the Senior Convertible Promissory Note Second Closing Note with Lind Global (collectively, the “Floor Note Amendments”) which amended the Conversion Price (as defined below) to include a floor price of $18.176 (the “Floor Price”). In addition to inclusion of a Floor Price, the Note Amendments also provide that at the option of Selling Securityholder, if in connection with a conversion under the Closing Notes, as amended, the Conversion Price is deemed to be the Floor Price, then in addition to issuing the Conversion Shares (as defined in the Closing Notes) at the Floor Price, we agreed to pay to Selling Securityholder a cash amount equal to (i) the number of shares of common stock that would be issued to Selling Securityholder upon a conversion determined by dividing the dollar amount to be converted being paid in shares of common stock by ninety percent (90%) of the lowest single VWAP during the twenty (20) Trading Days prior to the applicable date of conversion (notwithstanding the Floor Price) less (ii) the number of Conversion Shares issued to Selling Securityholder in connection with the conversion; and (iii) multiplying the result thereof by the VWAP on the Conversion Date.

The closings of the Transaction (the “Closings and each a “Closing”) occurred in tranches (each a “Tranche”): the Closing of the first Tranche (the “First Closing”) occurred on April 12, 2023 and consisted of the issuance and sale to Lind Global of a Convertible Note with a purchase price of $2,100,000 and a principal amount of $2,520,000 (the “First Closing Note”) and the issuance to Lind Global of a Warrant to acquire 23,527 shares of common stock and the Closing of the second Tranche (the “Second Closing) which occurred on May 23, 2023 and consisted of the issuance and sale to Lind Global of a Convertible Note with a purchase price of $1,400,000 and a principal amount of $1,680,000 (the “Second Closing Note”), and the issuance to Lind Global of a Warrant to acquire 15,685 shares of common stock. The Convertible Notes issued in the First Closing and the Second Closing are hereinafter referred to as the “Closing Notes”. As provided for in the January Note Amendments, neither party to the Purchase Agreement is obligated to complete the previously agreed on third Tranche (the “Third Closing), which would have consisted of the issuance and sale to Lind Global of a Convertible Note with a purchase price of $1,500,000 with a principal amount of $1,800,000, and the issuance to Lind Global a Warrant to acquire 16,805 shares of common stock. The Third Closing would have closed upon the effectiveness of the Registration Statement discussed below, but the Registration Statement was never declared effective by the SEC. Pursuant to the Purchase Agreement, at each Closing, the Company agreed to pay Lind Global a commitment fee in an amount equal to 2.5% of the funding amount being funded by Lind Global at the applicable Closing. Pursuant to the Purchase Agreement, at each Closing, the Company agreed to pay Lind Global a commitment fee in an amount equal to 2.5% of the funding amount being funded by Lind Global at the applicable Closing.

The Convertible Note issued in the First Closing has a maturity date of April 12, 2025 and the Convertible Note issued in the Second Closing has a maturity date of May 23, 2025 (the “Maturity Date”).

Each Convertible Note has a conversion price equal to the lesser of: (i) US$9.00 (“Fixed Price”); or (ii) 90% of the lowest single volume weighted average price during the 20 Trading Days prior to conversion of each Convertible Note (the “Conversion Price”) “), provided that in no event shall the Conversion Price be less than $18.176 (the “Floor Price”), and in the event that the calculation as set forth above would result in a Conversion Price less than the Floor Price, the “Conversion Price” shall be the Floor Price.

In addition to inclusion of a Floor Price, the Note Amendments also provide that at the option of Selling Securityholder, if in connection with a conversion under the Closing Notes, as amended, the Conversion Price is deemed to be the Floor Price, then in addition to issuing the Conversion Shares (as defined in the Closing Notes) at the Floor Price, we agreed to pay to Selling Securityholder a cash amount equal to (i) the number of shares of common stock that would be issued to Selling Securityholder upon a conversion determined by dividing the dollar amount to be converted being paid in shares of common stock by ninety percent (90%) of the lowest single VWAP during the twenty (20) Trading Days prior to the applicable date of conversion (notwithstanding the Floor Price) less (ii) the number of Conversion Shares issued to Selling Securityholder in connection with the conversion; and (iii) multiplying the result thereof by the VWAP on the Conversion Date.

The Convertible Note will not bear interest other than in the event that if certain payments under the Convertible Note as set forth therein are not timely made, the Convertible Note will bear interest at the rate of 2% per month (prorated for partial months) until paid in full. The Company will have the right to prepay the Convertible Note under the terms set forth therein.

The Warrants were issued to Lind Global without payment of any cash consideration. Each Warrant will have an exercise period of 60 months from the date of issuance. The Exercise price of the First Closing Warrant and Second Closing Warrant is $89.26 per share and $73.16 per share, respectively, subject to adjustments as set forth in the Warrant.

In the event that there is no effective registration statement registering the shares underlying the Warrants or upon the occurrence of a Fundamental Transaction as defined in the Purchase Agreement, then the Warrants may be exercised by means of a “cashless exercise” at the holder’s option, such that the holder may use the appreciated value of the Warrants (the difference between the market price of the underlying shares of common stock and the exercise price of the underlying warrants) to exercise the warrants without the payment of any cash.

In accordance with our obligations under the Purchase Agreement, we filed a registration statement on Form S-1 on May 12, 2023 (the “May 2023 Registration Statement”) with the SEC to register under the Securities Act the resale by Lind Global of up to 112,223 shares of common stock issuable by us upon partial conversion of the Convertible Notes and exercise of the Warrants issued by us in connection with the Purchase Agreement. We plan to withdraw the May 2023 Registration Statement as permitted pursuant to the SPA Amendment No. 2 discussed below.

The Purchase Agreement contains customary registration rights, representations, warranties, conditions and indemnification obligations by each party, including our agreement to refrain from engaging in certain “Prohibited Transactions” as defined in the Purchase Agreement, to hold a special meeting of shareholders for the purpose of obtaining shareholder approval of the Transactions, certain events giving rise to a default under the Convertible Notes, obligations to use the proceeds from certain future financings to repay a portion of the principal amount of the Convertible Notes, our pledge to Lind Global of the ownership interests in our subsidiaries, a grant by us and our subsidiaries of a security interest in all of their respective assets and rights as collateral for the obligations due under the Convertible Notes, and a guaranty by our subsidiaries of our obligations under the Convertible Notes.

The Closing Notes also provide that at the option of Lind Global, if in connection with a conversion under the Closing Notes, the Conversion Price is deemed to be the Floor Price, then in addition to issuing the Conversion Shares (as defined in the Closing Notes) at the Floor Price, the Company will also pay to Lind Global a cash amount equal to (i) the number of shares of common stock that would be issued to Lind Global upon a conversion determined by dividing the dollar amount to be converted being paid in shares of common stock by ninety percent (90%) of the lowest single VWAP during the twenty (20) trading days prior to the applicable date of conversion (notwithstanding the Floor Price) less (ii) the number of shares of the Company’s common stock issued to Lind Global in connection with the conversion; and (iii) multiplying the result thereof by the VWAP on the date of conversion.

On January 23, 2024, the Company and Lind Global entered into an Amendment No. 2 to Senior Convertible Promissory Note First Closing Note and an Amendment No. 2 to the Senior Convertible Promissory Note Second Closing Note (collectively, the “January Note Amendments”) which amended the Closing Notes to, subject to the conditions discussed below, (i) reduce the aggregate principal amount of the Closing Notes from $4,200,000 to $3,500,000, (ii) require the Company to repay an aggregate of $1,750,000 of the principal amount of the Closing Notes no later than the closing date of a public offering of the Company’s common stock where it receives gross proceeds of at least $13,500,000 (the “Public Offering”) no later than April 15, 2024 and (iii) requires Lind Global to convert no less than an aggregate of $1,750,000 of the Closing Notes no later than 11 months after the closing of the Public Offering, provided that at the time of such conversion Lind Global receives shares of common stock that may be disposed of without restrictive legend at their issuance pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”) or pursuant to an available exemption from or in a transaction not subject to the registration requirements of the Securities Act (the “Mandatory Conversion Amount”).

In addition, on January 23, 2024, the Company and Lind Global entered into Amendment No. 2 to Securities Purchase Agreement (the “SPA Amendment No. 2”) to, subject to the conditions discussed below, (i) eliminate the obligation of the Company and Lind Global to complete the Third Closing discussed above, (ii) delete the clause obligating the Company to register the shares of common stock issuable upon conversion of the Closing Notes and exercise of the Warrants (collectively, the “Closing Securities”) or pay Lind Global any delay payments as a result of the Company’s failure to register the Closing Securities, (iii) eliminate certain restrictions on the Company’s right to issue equity and debt in future transactions and (iv) eliminate Lind Global’s right to participate in future offerings of the Company’s securities, other than its rights to participate in this offering.

The January Note Amendments and the SPA Amendment are subject to the Company completing a public offering of its Common Stock where it receives gross proceeds of at least $13,500,000 (the “Public Offering”) and making the Mandatory Prepayment as discussed above. In as much as the Company failed to complete the Public Offering by April 15, 2024, Lind Global is not obligated to fulfill the terms of the January Note Amendments. The Company plans to enter into discussions with Lind Global to extend the time period in which it is obligated to complete the Public Offering.

Recent Sale of Unregistered Securities

On February 27, 2024 and March 22, 2024, we entered into and completed the sale to two unrelated accredited investors (the “Investors”), of 100,000 shares and 35,500 shares, respectively, of our unregistered Common Stock at a price of $4.00 per share for an aggregate of $542,000 in cash (the “Offerings”). The Offerings were made pursuant to the terms of a Subscription Agreement. In connection with the Offerings, the Company entered into a Piggyback Registration Rights Agreement with each Investor whereby the Company agreed to register the Common Stock acquired by the Investor in the Offering if at any time while the Investor remains the holder of such shares, the Company proposes to file any registration statement under the Securities Act of 1933, as amended (the “Securities Act”) with respect to its Common Stock for its own account or for shareholders of the Company for their account, subject to certain customary exceptions.

Cash Flows for the Three Months Ended March 31, 2024 and 2023

The following table sets forth summary of our cash flows for the periods indicated:

	For the three months ended March 31,
	2024			2023

Net cash provided by (used in) continuing operating	$	(380,797	)	$	810,374
Net cash used in investing activities		-			-
Net cash provided by financing activities		542,000			1,595,831
Net cash used in discontinued operations		-			(2,615,263	)
Net decrease in cash and cash equivalents		161,203			(209,058	)
Effect of exchange rate changes		-			(61,552	)
Cash and cash equivalents, beginning of the year		2,072			300,943
Cash and cash equivalents at beginning of year held by discontinued operation		-			-
Cash and cash equivalents at ending of the year held by discontinued operation		-			-
Cash and cash equivalents, end of the year	$	163,275		$	30,333

Operating Activities

Net cash used in operating activities was $380,797 for the three months ended March 31, 2024, primarily consisting of the following:

● Net income of $8,926,531 for the three months ended March 31, 2024;

● Increase in Accounts payable of $163,241.

Net cash used in operating activities was $3,230,216 for the three months ended March 31, 2023, primarily consisting of cash used in discontinued operations.

Investing Activity

Net cash used in investing activities amounted to $Nil for the three months ended March 31, 2024.

Net cash used in investing activities was $45,559 for the three months ended March 31, 2023, primarily consisting of cash used in discontinued operations.

Financing Activities

Net cash provided by financing activities amounted to $542,000, for the three months ended March 31, 2024 and primarily consisted of proceeds from issuance of shares.

Net cash used in investing activities was $3,066,717 for the three months ended March 31, 2023, primarily consisting of cash used in discontinued operations and proceeds from reverse recapitalization.

Contractual obligations

Lease commitment

The Company’s subsidiary, A. L. I. Technologies entered into 13 leases for its office space, multi-function printers and a vehicle, which were classified as operating leases. A. L. I. Technologies also entered into two leases classified as finance leases.

Off-Balance Sheet Arrangements

We did not have any off-balance sheet arrangements as of March 31, 2024.

Critical Accounting Policies and Estimates

Our discussion and analysis of our financial condition and results of operations are based upon our financial statements. These financial statements are prepared in accordance with U.S. GAAP, which requires us to make estimates and assumptions that affect the reported amounts of our assets and liabilities and revenue and expenses, to disclose contingent assets and liabilities on the date of the financial statements, and to disclose the reported amounts of revenue and expenses incurred during the financial reporting period.

The most significant estimates and assumptions include the valuation of warrant liabilities and derivative liabilities, accounts receivable, advances to suppliers, useful lives of property and equipment, the recoverability of long-lived assets, provision necessary for contingent liabilities, and revenue recognition. We continue to evaluate these estimates and assumptions that we believe to be reasonable under the circumstances. We rely on these evaluations as the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. Some of our accounting policies require higher degrees of judgment than others in their application.

We believe critical accounting policies as disclosed in this Form 10-Q reflect the more significant judgments and estimates used in preparation of our financial statements.

The following critical accounting policies rely upon assumptions and estimates and were used in the preparation of our financial statements:

Use of Estimates

In preparing the financial statements in conformity U.S. GAAP, the management is required to make certain 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 period. These estimates are based on information available as of the date of the financial statements. Significant estimates required to be made by management include, but are not limited to, the allowance for doubtful accounts, useful lives of property and equipment, the impairment of long- lived assets, valuation allowance of deferred tax assets, and revenue recognition. Actual results could differ from those estimates.

Accounts Receivable

Revenue Recognition

The Company recognizes revenue in accordance with ASC Topic 606, “Revenue from Contracts with Customers”.

Warrant Liabilities

Share-based Compensation

Convertible Promissory Notes and Derivative Instruments

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable.

ITEM 4. CONTROLS AND PROCEDURES

Kiran Sidhu, our President and Chief Executive Officer, is our principal executive officer and Yinshun (Sue) He, our Chief Financial Officer, is our principal financial officer.

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of March 31, 2024. Based on this evaluation, our principal executive officer and our principal financial officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were not effective and adequately designed to ensure that the information required to be disclosed by us in the reports we submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the applicable rules and forms and that such information was accumulated and communicated to our principal executive officer and principal financial officer, in a manner that allowed for timely decisions regarding disclosure. Management has determined that a material weakness exists due to administrative delays and other issues stemming from the bankruptcy filing of A.L.I. and the appointment of a bankruptcy trustee.

Changes in internal control over financial reporting

Our principal executive officer and principal financial officer have also indicated that, upon evaluation, there were no changes in our internal control over financial reporting during the three months ended March 31, 2024 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

Our management, including our principal executive officer and principal financial officer, does not expect that its disclosure controls or internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. In addition, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake.

Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management’s override of the control. The design of any systems of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of these inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected. Individual persons perform multiple tasks which normally would be allocated to separate persons and therefore extra diligence must be exercised during the period these tasks are combined.

PART II-OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time and in the course of business, we may become involved in various legal proceedings seeking monetary damages and other relief. The amount of the ultimate liability, if any, from such claims cannot be determined. As of the date hereof, other than as described below, there are no legal claims currently pending or, to our knowledge, threatened against us or any of our officers or directors in their capacity as such or against any of our properties that, in the opinion of our management, would be likely to have a material adverse effect on our financial position, results of operations or cash flows.

On December 27, 2023, A.L.I. filed a voluntary bankruptcy petition with the Tokyo District Court, Civil Division 20, “Tokutei Kanzai Kakari” [Special Trusteeship Section], Case ID: No. 8234 of 2023 (Fu) (the “A.L.I. Bankruptcy”). On January 10, 2024, the Court entered an order (the “January 10 Order”) confirming that bankruptcy proceedings are commenced against the debtor A.L.I., that A.L.I. is found to be insolvent, the appointment of Gaku Iida, Attorney-at-Law, of Abe, Ikubo & Katayama be appointed as the trustee in the bankruptcy proceedings (the “Trustee”) and setting the date and place of the meeting to report on the status of property, to report on calculations and hear opinions regarding the disposition of the bankruptcy proceedings on May 14, 2024, at 10:00 a.m. local time in the Court (the “Status Report Meeting”). The Trustee’s address is Fukuoka Bldg. 9F, 2-8-7 Yaesu, Chuo-ku, Tokyo.

The Trustee presented a report at the Status Report Meeting that summarized the circumstances leading to the commencement of the bankruptcy proceedings, the progress and current status of the bankrupt and the bankruptcy estate, status of assets, the status of liabilities, existence or non-existence of circumstances necessitating a decision on a protective action or assessment of directors’ and officers’ liabilities and future procedures. The Trustee’s report stated that there is no prospect of distribution to the general creditors at this time and that it would continue its efforts to determine ownership rights for various assets, resolve contractual issues and determine claims related to taxes, public dues and labor claims. The next creditors’ meeting has been set for Monday, September 2, 2024, from 1:30 to 3:00 p.m. local time in the Court.

As a result of the filing of the Bankruptcy Proceedings and the January 10 Order, the Company concluded that it no longer controls A.L.I. for accounting purposes as of January 10, 2024, in accordance with U.S. GAAP Accounting Standards Codification 810, and, therefore, A.L.I. was deconsolidated from the Company’s consolidated financial statements prospectively, commencing in the first quarter of 2024. See, however, “Risk Factors – We are involved in litigation from time to time and, as a result, we could incur substantial judgments, fines, legal fees or other costs.” in Item 1A of our Form 10-K for the year ended December 31, 2023.

ITEM 1A. RISK FACTORS

There have been no material changes in our risk factors from those disclosed in Part I, Item 1A. of our Annual Report on Form 10-K for the year ended December 31, 2023.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

These shares of our Common Stock were issued in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), or Regulation D or Regulation S promulgated thereunder since the issuance did not involve a public offering. The recipients were sophisticated investors and had access to information normally provided in a prospectus regarding the Company. In addition, the recipients were “accredited investors” as that term is defined in Rule 501(a) of Regulation D. Further, the issuance was not a “public offering” as defined in Section 4(a)(2) of the Securities Act due to the insubstantial number of persons involved in the transaction, size of the offering, manner of the offering and number of shares offered. The Company did not undertake an offering in which it sold a high number of shares to a high number of investors. In addition, the recipients had the necessary investment intent as required by Section 4(a)(2) since they agreed to allow us to include a legend on shares of Common Stock stating that such shares are restricted pursuant to Rule 144 of the Securities Act. These restrictions ensure that these shares would not be immediately redistributed into the market and therefore not be part of a “public offering.”

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

On January 23, 2024, the Company and Lind Global entered into the January Note Amendments which amended the Closing Notes to, subject to the conditions discussed below, (i) reduce the aggregate principal amount of the Closing Notes from $4,200,000 to $3,500,000, (ii) require the Company to repay an aggregate of $1,750,000 of the principal amount of the Closing Notes no later than the closing date of a public offering of the Company’s common stock where it receives gross proceeds of at least $13,500,000 (the “Public Offering”) by April 15, 2024 and (iii) requires Lind Global to convert no less than an aggregate of $1,750,000 of the Closing Notes no later than 11 months after the closing of the Public Offering, provided that at the time of such conversion Lind Global receives shares of common stock that may be disposed of without restrictive legend at their issuance pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”) or pursuant to an available exemption from or in a transaction not subject to the registration requirements of the Securities Act (the “Mandatory Conversion Amount”).

In addition, on January 23, 2024, the Company and Lind Global entered into the SPA Amendment No. 2 to, subject to the conditions discussed below, (i) eliminate the obligation of the Company and Lind Global to complete the Third Closing, (ii) delete the clause obligating the Company to register the shares of common stock issuable upon conversion of the Closing Notes and exercise of the Warrants (collectively, the “Closing Securities”) or pay Lind Global any delay payments as a result of the Company’s failure to register the Closing Securities, (iii) eliminate certain restrictions on the Company’s right to issue equity and debt in future transactions and (iv) eliminate Lind Global’s right to participate in future offerings of the Company’s securities, other than its rights to participate in the Public Offering.

The January Note Amendments and the SPA Amendment are subject to the Company completing the Public Offering and making the Mandatory Prepayment as discussed above. In as much as the Company failed to complete the Public Offering by April 15, 2024, Lind Global is not obligated to fulfill the terms of the January Note Amendments. The Company plans to enter into discussions with Lind Global to extend the time period in which it is obligated to complete the Public Offering.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

The information set forth in Item 3 of this Quarterly Report on Form 10-Q is incorporated by reference into this Item 5.

ITEM 6. EXHIBITS

Exhibit No.		Description

31.1*		Rule 13a-14(a) Certification of Principal Executive Officer.

31.2*		Rule 13a-14(a) Certification of Principal Financial Officer.

32.1*		Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Principal Executive Officer and Principal Financial Officer.

101.INS*		Inline XBRL Instance Document

101.SCH*		Inline XBRL Taxonomy Extension Schema

101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase

101.DEF*		Inline XBRL Taxonomy Extension Definitions Linkbase

101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase

101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase

104*		Cover Page Interactive Data File (embedded within the Inline XBRL document)

*	Filed or furnished herewith.
+	Management contract or compensatory plan or arrangement.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	AERWINS TECHNOLOGIES INC.

Dated: May 28, 2024	By:	/s/ Kiran Sidhu
	Name:	Kiran Sidhu
	Title:	Chief Executive Officer (Principal Executive Officer)

Dated: May 28, 2024	By:	/s/ Yinshun (Sue) He
	Name:	Yinshun (Sue) He
	Title:	Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Kiran Sidhu, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the period ended March 31, 2024 of AERWINS Technologies Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 28, 2024

/s/ Kiran Sidhu

Kiran Sidhu

Chief Executive Officer

(principal executive officer)

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Yinshun He, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the period ended March 31, 2024 of AERWINS Technologies Inc.;

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 28, 2024

/s/ Yinshun (Sue) He

Yinshun (Sue) He

Chief Financial Officer

(principal financial officer and principal accounting officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO RULE 13a-14(b) OR

RULE 15d-14(b) and 18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Aerwins Technologies Inc. (the “Company”) on Form 10-Q for the three months ended March 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kiran Sidhu, Chief Executive Officer and Yinshun He, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 28, 2024	By:	/s/ Kiran Sidhu
		Kiran Sidhu
		Chief Executive Officer (Principal Executive Officer)

Date: May 28, 2024		/s/ Yinshun (Sue) He
		Yinshun (Sue) He
		Chief Financial Officer (Principal Financial Officer)

The foregoing certification is not deemed filed with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), and is not to be incorporated by reference into any filing of Aerwins Technologies Inc. under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2024	May 24, 2024
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	001-40734
Entity Registrant Name	AERWINS TECHNOLOGIES INC.
Entity Central Index Key	0001855631
Entity Tax Identification Number	86-2049355
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	The Walnut Building
Entity Address, Address Line Two	691 Mill St
Entity Address, Address Line Three	Suite 204
Entity Address, City or Town	Los Angeles
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90021
City Area Code	(702)
Local Phone Number	527-1270
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		924,890
Common Stock, $0.000001 par value per share
Title of 12(b) Security	Common Stock, $0.000001 par value per share
Trading Symbol	AWIN
Security Exchange Name	NASDAQ
Redeemable Warrants, each whole warrant exercisable for one -hundredth of a share of Common Stock at an exercise price of $1,150 per share
Title of 12(b) Security	Redeemable Warrants, each whole warrant exercisable for one-hundredth of a share of Common Stock at an exercise price of $1,150 per share
Trading Symbol	AWINW
Security Exchange Name	NASDAQ

Balance Sheets

Mar. 31, 2024

USD ($)

Dec. 31, 2023

USD ($)

Current Assets:

Cash and cash equivalents

$ 163,275

$ 2,072

Prepaid expenses

835,758

983,255

Assets of discontinued operations

81,332

Total current assets

999,033

1,066,659

Total Assets

999,033

1,066,659

Current Liabilities:

Notes payable

1,480,000

Others payable

132,980

Liabilities of discontinued operations

350,000

8,244,485

Total Current Liabilities

5,304,949

13,038,830

Longer-term liabilities:

Long-term convertible promissory note, net

2,110,850

1,519,403

Derivative liability

1,293,276

1,367,140

Warrant liability

257,764

400,924

Non-current liabilities of discontinued operations

3,221,007

Total long-term liabilities

3,661,890

6,508,474

Total Liabilities

8,966,839

19,547,304

Stockholders’ Deficit:

Common stock, par value $0.000001, 400,000,000 shares authorized; 885,987 and 626,890 shares issued and outstanding, respectively in March 31, 2024 and December 31, 2023

^[1],[2]

Preferred stock, par value $0.000001, 20,000,000 shares authorized; No shares issued and outstanding

^[1],[2]

Additional Paid-in capital

56,091,972

55,549,976

Accumulated deficit

(63,484,844)

(72,411,375)

Treasury stock

(575,000)

Accumulated other comprehensive loss

(1,044,308)

Stockholders’ Deficit

(7,967,806)

(18,480,645)

Total Liabilities and Stockholders’ Deficit

999,033

1,066,659

Nonrelated Party [Member]

Current Liabilities:

Short-term loans payable

272,835

278,618

Accounts payable

2,057,534

1,918,803

Accrued expenses

587,317

496,265

Related Party [Member]

Current Liabilities:

Short-term loans payable

482,341

Accounts payable

313,428

341,424

Accrued expenses

$ 110,855

$ 146,255

[1]	Retrospectively adjusted for effect of share consolidation on a basis of 1 post-consolidation share for each 100 pre-consolidation on April 2, 2024.
[2]	Retrospectively restated for effect of the business combination on February 6, 2023.

Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.000001	$ 0.000001
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	885,987	626,890
Common stock, shares outstanding	885,987	626,890
Preferred stock, par value	$ 0.000001	$ 0.000001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)

3 Months Ended

Mar. 31, 2024

Mar. 31, 2023

Operating expenses:

Selling expenses

General and administrative expenses

620,380

3,574,882

Research and development expenses

Total operating expenses

620,380

3,574,882

Loss from operations

(620,380)

(3,574,882)

Other income (expenses):

Interest expense

(98,811)

Amortization of debt discount

(311,285)

Gain on foreign currency transactions

5,663

Gain on fair value adjustments of warrant

143,160

86,251

Loss on fair value adjustments of derivative

(378,685)

Gain on debt modification

172,387

Gain on deconsolidation

10,014,482

Total other income

9,546,911

86,251

Income (Loss) before income tax provision

8,926,531

(3,488,631)

Income tax expense

Net income (loss) from continuing operations

8,926,531

(3,488,631)

Discontinued operations (Note 17)

Loss from discontinued operations

(4,312,913)

Net Income (Loss)

8,926,531

(7,801,544)

Other Comprehensive income (loss):

Foreign currency translation adjustment

1,044,308

(55,127)

Total Comprehensive income (loss)

$ 9,970,839

$ (7,856,671)

Net earnings (loss) per common share from continuing operations

Basic

$ 12.12

$ (6.58)

Diluted

12.12

(6.58)

Net earnings (loss) per common share from discontinuing operations

Basic

0.00

(8.14)

Diluted

$ 0.00

$ (8.14)

Weighted average common shares outstanding*

Basic

^[1],[2]

736,765

529,844

Effect of dilutive securities

Convertible debt

^[1],[2]

51,766

Conversion of option warrants

^[1],[2]

144,420

93,758

Diluted

^[1],[2]

832,951

623,602

[1]	Retrospectively adjusted for effect of share consolidation on a basis of 1 post-consolidation share for each 100 pre-consolidation on April 2, 2024.
[2]	Retrospectively restated for effect of the business combination on February 6, 2023.

Statements of Changes in Shareholders' Deficit (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	AOCI Attributable to Parent [Member]	Total
Balances at Dec. 31, 2022	$ 47	$ 49,299,343	$ (46,472,904)		$ (917,582)	$ 1,908,904
Balance, shares at Dec. 31, 2022	469,297
Issuance of common stock prior to the closing of Business Combination	$ 5	(1,156,124)				(1,156,119)
Issuance of common stock prior to the closing of Business Combination, shares	50,000
Reverse recapitalization	$ 4	(878,120)				(878,116)
Reverse recapitalization, shares	37,402
Issuance of common stock warrants for services		4,338,298				4,338,298
Issuance of common stock warrants for services, shares	4,132
Acquisition of treasury stock				(575,000)		(575,000)
Acquisition of treasury stock, shares	575
Net income (loss)			(7,801,544)			(7,801,544)
Other comprehensive income (loss)					(55,127)	(55,127)
Balances at Mar. 31, 2023	$ 56	51,603,397	(54,274,448)	(575,000)	(972,709)	(4,218,704)
Balance, shares at Mar. 31, 2023	561,406
Balances at Dec. 31, 2022	$ 47	49,299,343	(46,472,904)		(917,582)	1,908,904
Balance, shares at Dec. 31, 2022	469,297
Issuance of common shares						6,827,477
Balances at Dec. 31, 2023	$ 62	55,549,976	(72,411,375)	(575,000)	(1,044,308)	(18,480,645)
Balance, shares at Dec. 31, 2023	626,890
Net income (loss)			8,926,531			8,926,531
Other comprehensive income (loss)					1,044,308	1,044,308
Issuance of common shares for services
Issuance of common shares for services, shares	51,317
Issuance of common shares	$ 4	541,996				542,000
Issuance of common shares, shares	135,500
Adjustment for share consolidation
Adjustment for share consolidation, shares	72,305
Balances at Mar. 31, 2024	$ 66	$ 56,091,972	$ (63,484,844)	$ (575,000)		$ (7,967,806)
Balance, shares at Mar. 31, 2024	886,012

Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		12 Months Ended
Statements of Cash Flows (Unaudited) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$ 8,926,531	$ (7,801,544)
Net loss from discontinued operations		(4,312,913)
Net income (loss) from continuing operations	8,926,531	(3,488,631)
Adjustments to reconcile net loss to net cash provided (used) by operating activities:
Interest expense	98,811
Amortization of debt discount	311,285
Share-based compensation	225,630	3,338,298
Gain on fair value adjustments of warrant	(143,160)	(86,251)
Gain on deconsolidation	(10,014,482)
Gain on foreign currency translations	(5,663)
Gain on debt modification	(172,387)
Change in fair value of derivative liability	378,685		$ (685,174)
Increase in operating assets:
Prepaid expenses	(78,133)	(240,814)
Increase (Decrease) in operating liabilities:
Accounts payable	163,241	196,705
Accounts payable, related party	(27,996)
Accrued expenses	(7,759)	28,283
Accrued expenses, related party	(35,400)
Others payable		1,062,784
Net cash provided by (used) continuing operations	(380,797)	810,374
Net cash used by discontinued operations		(4,040,590)
Net cash used by operating activities	(380,797)	(3,230,216)
CASH FLOWS FROM INVESTING ACTIVITY
Net cash used by continuing operations
Net cash used by discontinued operations		(45,559)
Net cash used by investing activity		(45,559)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of shares	542,000
Proceeds from reverse recapitalization with AERWINS Inc., net		1,595,831
Net cash provided by continuing operations	542,000	1,595,831
Net cash provided by discontinued operations		1,470,886
Net cash provided by financing activities	542,000	3,066,717
Net increase (decrease) in cash and cash equivalents	161,203	(209,058)
Effects of exchange rates change on cash		(61,552)
Cash and cash equivalents at beginning of period	2,072
Cash and cash equivalents at beginning of period held by discontinued operation		300,943	300,943
Cash and cash equivalents at ending of the period held by discontinued operation
Cash and cash equivalents at end of period	163,275	30,333	$ 2,072
Supplemental Disclosures of Cash Flow Information:
Interest
Income taxes

ORGANIZATION AND DESCRIPTION OF BUSINESS

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION AND DESCRIPTION OF BUSINESS

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

Pono Capital Corp Merger

SCHEDULE OF BUSINESS COMBINATION


Cash—Pono trust and working capital cash	$	1,802,594
Cash—Subscription agreement made immediately before the closing		5,000,000
Less: transaction costs and advisory fees		5,206,763
Total funds from the Business Combination	$	1,595,831

GOING CONCERN

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GOING CONCERN

NOTE 2 - GOING CONCERN

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying financial statements have been prepared in accordance with U.S. GAAP and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).

Unaudited Interim Financial Information

Use of Estimates

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and deposits in banks that are unrestricted as to withdrawal or use, and which have original maturities of three months or less.

Accounts Receivable, net

Inventories

Fixed assets

Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives, as more details follow:

	Depreciation Method	Useful Life
Building and building accessories	Straight-line method	8-38 years
Office equipment and furniture	Straight-line method	2-10 years
Software	Straight-line method	5 years
Design right	Straight-line method	7 years
Patent right	Straight-line method	8 years

Impairment of Long-Lived Assets

Warrant Liabilities

Share-based Compensation

Convertible Promissory Notes and Derivative Instruments

Statements of Cash Flows

Revenue Recognition

The Company recognizes revenue in accordance with ASC Topic 606, “Revenue from Contracts with Customers”.

Cost of Revenues

Advertising Expenses

Concentration of Credit Risk

Comprehensive Income or Loss

Earnings (Loss) Per Share

Related Parties and Transactions

The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, “Related Party Disclosures” and other relevant ASC standards.

Income Taxes

Fair Value Measurements

	●	Level 1: quoted prices in active markets for identical assets or liabilities;
	●	Level 2: inputs other than Level 1 that are observable, either directly or indirectly; or
	●	Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities.

Contingencies

Discontinued Operations

Recent Accounting Pronouncements

PREPAID EXPENSES

3 Months Ended

Mar. 31, 2024

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

PREPAID EXPENSES

NOTE 4 – PREPAID EXPENSES

SCHEDULE OF PREPAID EXPENSES

	March 31, 2024		December 31, 2023
Prepaid expenses	$	835,758	$	983,255
Total	$	835,758	$	983,255

Of the total prepaid expenses as at March 31, 2024 of $753,407 (December 31, 2023 - $983,255), is attributable to prepaid stock-based compensation.

LOANS PAYABLE

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

LOANS PAYABLE

NOTE 5 – LOANS PAYABLE

Notes payable

As at March 31, 2024, the notes payable balance was $1,480,000 in default and recognized interest expenses of $288,243 as accrued expenses.

RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2024

RELATED PARTY TRANSACTIONS

NOTE 6 — RELATED PARTY TRANSACTIONS

Guarantee provided by a director of A.L.I.

Loan from a former director of Aerwins

Payable to Directors of Aerwins

CONVERTIBLE PROMISSORY NOTES, NET

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

CONVERTIBLE PROMISSORY NOTES, NET

NOTE 7 – CONVERTIBLE PROMISSORY NOTES, NET

	●	reduce the aggregate principal amount of the Closing Notes from $4,200,000 to $3,500,000,
	●	require the Company to repay an aggregate of $1,750,000 of the principal amount of the Closing Notes no later than the closing date of a public offering of the Company’s Common Stock where it receives gross proceeds of at least $13,500,000 (the “Public Offering”) by April 15, 2024 and
	●	requires Lind Global to convert no less than an aggregate of $1,750,000 of the Closing Notes no later than 11 months after the closing of the Public Offering, provided that at the time of such conversion Lind Global receives shares of Common Stock that may be disposed of without restrictive legend at their issuance pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”) or pursuant to an available exemption from or in a transaction not subject to the registration requirements of the Securities Act (the “Mandatory Conversion Amount”).

In addition, on January 23, 2024, the Company and Lind Global entered into Amendment No. 2 to Securities Purchase Agreement, subject to the conditions discussed below:

	●	eliminate the obligation of the Company and Lind Global to complete the third closing,
	●	delete the clause obligating the Company to register the shares of common stock issuable upon conversion of the Closing Notes and exercise of the Warrants (collectively, the “Closing Securities”) or pay Lind Global any delay payments as a result of the Company’s failure to register the Closing Securities,
	●	eliminate certain restrictions on the Company’s right to issue equity and debt in future transactions and
	●	eliminate Lind Global’ right to participate in future offerings of the Company’s securities, other than its rights to participate in the Public Offering.

The notes consist of the following components as of March 31, 2024 and December 31, 2023:

SCHEDULE OF DEBT NOTES

Principal	$	4,200,000
Debt discount		(4,178,395	)
Interest expense		1,497,798
Net Carrying Balance at December 31, 2023	$	1,519,403
Adjustments		280,162
Interest expense		311,285
Net Carrying Balance at March 31, 2024	$	2,110,850

Debt discount is summarized as follows:

	March 31, 2024			December 31, 2023
Debt discount on convertible promissory notes	$	2,680,597		$	4,178,395
Adjustments		(280,162	)		-
Accumulated amortization		(311,285	)		(1,497,798	)
Debt discount on convertible promissory notes, net	$	2,089,150		$	2,680,597

DERIVATIVE LIABILITY

3 Months Ended

Mar. 31, 2024

Derivative Liability

DERIVATIVE LIABILITY

NOTE 8 – DERIVATIVE LIABILITY

SCHEDULE OF DERIVATIVE LIABILITY

Volatility		135.75	%
Risk-free rate		4.966% - 5.016	%
Stock price (pre-consolidated)	$	0.0648
Dividend Yield		-
Expected life		1.03 – 1.15 years

Fair value of the derivative is summarized as below:

	Derivative Liability
Balance at January 1, 2023	$	-
Additions		2,052,314
Change in fair value		(685,174	)
Ending Balance, December 31, 2023		1,367,140
Adjustments		(452,549	)
Change in fair value		378,685
Ending Balance, March 31, 2024	$	1,293,276

WARRANT LIABILITY

3 Months Ended

Mar. 31, 2024

Warrant Liability

WARRANT LIABILITY

NOTE 9 – WARRANT LIABILITY

The warrant liability is derived from warrants issued as debt warrants in Note 7, public warrants and placement warrants.

As of March 31, 2024, the total fair value of the warrant liability was $257,764 (December 31, 2023 - $400,924).

The following table provides a reconciliation of the warrants measured at fair value using Level 1 inputs:

	Public warrants
Balance at January 1, 2023	$	-
Additions		-
Transfer from Level 2		603,750
Change in fair value		(486,450	)
Ending Balance, December 31, 2023	$	117,300
Change in fair value		(9,488	)
Ending Balance, March 31, 2024	$	107,812

The Black-Scholes model with the following assumptions inputs:

Volatility		135.75	%
Risk-free rate		4.966% - 5.016	%
Stock price (pre-consolidated)	$	0.0648
Expected life		4.04 – 4.15 years

The following table provides a reconciliation of the warrants measured at fair value using Level 2 inputs:

	Public warrants			Placement warrants			Debt warrants
Balance at January 1, 2023	$	-		$	-		$	-
Additions		603,750			39,463			1,812,253
Transfer to Level 1		(603,750	)		-			-
Change in fair value		-			(31,815	)		(1,536,277	)
Ending Balance, December 31, 2023	$	-		$	7,648		$	275,976
Change in fair value		-			(493	)		(133,179	)
Ending Balance, March 31, 2024	$	-		$	7,155		$	142,797

The following table summarizes information regarding warrants by term, granted and exercise price for the three months ended March 31, 2024 and year ended December 31, 2023.

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining contractual life		Aggregate Intrinsic Value
Outstanding at December 31, 2022		-	$	-		-		-
Granted		131,101		831		3.92		-
Outstanding at March 31, 2024 and December 31, 2023		131,101	$	831		3.92	$	-
Exercisable at March 31, 2024 and December 31, 2023		131,101	$	831		3.92	$	-

			March 31, 2024				December 31, 2023
	Grant Date	Expiry Date	Number of shares		Exercise price		Number of shares		Exercise price
Public warrants	February 3, 2023	February 3, 2028		86,250	$	1,150		86,250	$	1,150
Placement warrants	February 3, 2023	February 3, 2028		5,638		1,150		5,638		1,150
Debt warrants	April 12, 2023	April 12, 2028		23,527		89		23,527		89
Debt warrants	May 23, 2023	May 23, 2028		15,686		73		15,686		73
				131,101	$	831		131,101	$	831

DECONSOLIDATION OF A.L.I.

3 Months Ended

Mar. 31, 2024

Deconsolidation Of A.l.i.

DECONSOLIDATION OF A.L.I.

NOTE 10 – DECONSOLIDATION OF A.L.I.

A.L.I. Bankruptcy

The following table provides the carrying value of assets and liabilities of A.L.I that have been deconsolidated during the three months ended March 31, 2024:

SCHEDULE OF DECONSOLIDATED

As at	January 10, 2024
ASSETS
Current Assets:
Cash and cash equivalents	$	81,332
Total Assets	$	81,332
LIABILITIES
Current Liabilities:
Short-term loans payable	$	861,540
Accounts payable		4,403,030
Accrued expenses		1,254,820
Others payable		101,651
Contract liabilities		751,614
Current portion of long-term loans		204,584
Finance leases liabilities-current		116,002
Operating leases liabilities-current		225,874
Total Current Liabilities		7,919,115
Longer-term liabilities:
Long-term loans		2,873,758
Finance leases liabilities-non-current		31,893
Operating leases liabilities-non-current		145,677
Other long-term liabilities		169,679
Total long-term liabilities		3,221,007
Total Liabilities	$	11,140,122

Net Liabilities deconsolidated		(11,058,790	)
Accumulated other comprehensive loss		1,044,308
		1,044,308

Gain on deconsolidation of A.L.I.	$	10,014,482

INCOME TAXES

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 11 – INCOME TAXES

The income tax provision for the year ended March 31, 2024 and the March 31, 2023 consists of the following:

SCHEDULE OF INCOME TAX PROVISION

	2024		2023
	For the three months ended
	March 31,
	2024		2023
Federal
Current	$	-	$	-
Deferred		-		-

State
Current		-		-
Deferred		-		-

Foreign
Current		-		-
Deferred		-		-

Income Tax Provision	$	-	$	-

The Company does not expect that there will be unrecognized tax benefits of a significant nature that will increase or decrease within 12 months of the reporting date.

CONTINGENCIES

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES

NOTE 12 – CONTINGENCIES

SHAREHOLDERS’ DEFICIT

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

SHAREHOLDERS’ DEFICIT

NOTE 13 – SHAREHOLDERS’ DEFICIT

Business combination with Pono Capital Corp

Shares issued in the three months ended March 31, 2024

Recent Sale of Unregistered Securities

Shares issued in the year ended December 31, 2023

Shares issued to service providers

The total amount of fair value of shares issued for the year ended December 31, 2023 was $6,827,477 and $753,407 is recognized as prepaid expenses as at March 31, 2024.

EARNINGS (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

NOTE 14 – EARNINGS (LOSS) PER SHARE

The computation of basic and diluted loss per share for the three months ended March 31, 2024 and 2023 is as follows:

	2024		2023
	For the three months ended
	March 31,
	2024		2023
Loss per share – basic
Numerator:
Net income (loss) from continuing operations	$	8,926,531	$	(3,488,631	)
Net income (loss) from discontinued operation	$	-	$	(4,312,913	)
Denominator:
Weighted average number of common shares outstanding used in calculating basic earnings (loss) per share		736,765		529,844
Denominator used for loss per share
Earnings (Loss) per share from continuing operations (basic)	$	12.12	$	(6.58	)
Earnings (Loss) per share from continuing operations (anti-diluted)	$	12.12	$	(6.58	)
Earnings (Loss) per share from discontinued operation (basic)	$	0.00	$	(8.14	)
Earnings (Loss) per share from discontinued operation (anti-diluted)	$	0.00	$	(8.14	)

Basic loss per share equals diluted loss per share because the calculation of diluted loss per share would be anti-dilutive.

STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

NOTE 15 – STOCK-BASED COMPENSATION

SCHEDULE OF STOCK BASED COMPENSATION

Grant date		July 27, 2022
Number of shares at grant date		41,424
Outstanding at January 31, 2023		41,424
Forfeiture		(29,692	)
Outstanding at March 31, 2024 and December 31, 2023		11,732
Exercise price	$	0.015
Consideration paid to the Company at the grant date	$	132

The number of shares is retrospectively presented to reflect the Business Combination with Pono and share consolidation 1 post-consolidation share for each 100 pre-consolidation share.

The Company estimated the fair value of the stock-based compensation at $0.005 using the Binomial Option Pricing Model with the following assumption inputs.

Exercise period		5 years
Share price on the issuance date	$	0.01
Volatility		64.22	%
Expected dividend rate		0	%
Risk-free interest rate		2.88	%

FAIR VALUE MEASUREMENT

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENT

NOTE 16 – FAIR VALUE MEASUREMENT

	Amount at Fair Value		Level 1		Level 2		Level 3
March 31, 2024
Liabilities
Public Warrants	$	107,812	$	107,812	$	-	$	-
Placement Warrants	$	7,155	$	-	$	7,155	$	-
Debt Warrants	$	142,797	$	-	$	142,797	$	-
Subtotal: Warrant liabilities	$	257,764	$	107,812	$	149,952	$	-
Derivative Liability	$	1,293,276	$	-	$	1,293,276	$	-
Liabilities fair value	$	1,293,276	$	-	$	1,293,276	$	-

	Amount at Fair Value		Level 1		Level 2		Level 3
December 31, 2023
Liabilities
Public Warrants	$	117,300	$	117,300	$	-	$	-
Placement Warrants	$	7,648	$	-	$	7,648	$	-
Debt Warrants	$	275,976	$	-	$	275,976	$	-
Subtotal: Warrant liabilities	$	400,924	$	117,300	$	283,624	$	-
Derivative Liability	$	1,367,140	$	-	$	1,367,140	$	-
Liabilities fair value	$	1,367,140	$	-	$	1,367,140	$	-

DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

NOTE 17 – DISCONTINUED OPERATIONS

SCHEDULE OF DISCONTINUED OPERATIONS

As at	March 31, 2024		December 31, 2023
ASSETS
Current Assets:
Cash and cash equivalents	$	-	$	81,332

Total Assets	$	-	$	81,332
LIABILITIES
Current Liabilities:
Short-term loans payable	$	-	$	836,910
Accounts payable		-		4,403,030
Accrued expenses		-		1,254,820
Others payable		-		101,651
Contract liabilities		350,000		1,101,614
Current portion of long-term loans		-		204,584
Finance leases liabilities-current		-		116,002
Operating leases liabilities-current		-		225,874
Total Current Liabilities		350,000		8,244,485
Longer-term liabilities:
Long-term loans		-		2,873,758
Finance leases liabilities-non-current		-		31,893
Operating leases liabilities-non-current		-		145,677
Other long-term liabilities		-		169,679
Total long-term liabilities		-		3,221,007
Total Liabilities	$	350,000	$	11,465,492

	2024		2023
	For the three months ended March 31,
	2024		2023

Revenues	$	-	$	1,265,883
Cost of revenues		-		955,071
Gross profit		-		310,812

Operating expenses:
Selling expenses		-		40,382
General and administrative expenses		-		2,647,569
Research and development expenses		-		2,090,219
Total operating expenses		-		4,778,170

Loss from operations				(4,467,358	)

Other income (expenses):
Interest expenses, net		-		(6,847	)
Loss on foreign currency transaction		-		(11,005	)
Loss on disposal of fixed assets		-		(9,943	)
Equity in earnings of investee		-		6,176
Other income		-		176,064
Total other income		-		154,445

Net loss from discontinued operations		-		(4,312,913	)
Income tax		-		-
Net loss from discontinued operations	$	-	$	(4,312,913	)

SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 18 – SUBSEQUENT EVENTS

Effective as of April 2, 2024, the Company completed 100 old to 1 new share consolidation. All share figures and references have been retrospectively adjusted.

Effective April 8, 2024, we authorized the issuance of 38,878 shares to consultants with fair value of $180,000 who provide the Company with services.

Subsequent to the three months ended March 31, 2024, the Company received an aggregate of $100,000 from third parties. The advance is non-interest bearing, unsecured, and due on demand.

Subsequent to the three months ended March 31, 2024, the Company received an aggregate of $140,000 from a third party. The advance is unsecured, due within five months, and 3% compounded interest.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying financial statements have been prepared in accordance with U.S. GAAP and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).

Unaudited Interim Financial Information

Unaudited Interim Financial Information

Use of Estimates

Use of Estimates

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and deposits in banks that are unrestricted as to withdrawal or use, and which have original maturities of three months or less.

Accounts Receivable, net

Accounts Receivable, net

Inventories

Inventories

Fixed assets

Fixed assets

Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives, as more details follow:

	Depreciation Method	Useful Life
Building and building accessories	Straight-line method	8-38 years
Office equipment and furniture	Straight-line method	2-10 years
Software	Straight-line method	5 years
Design right	Straight-line method	7 years
Patent right	Straight-line method	8 years

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

Warrant Liabilities

Warrant Liabilities

Share-based Compensation

Share-based Compensation

Convertible Promissory Notes and Derivative Instruments

Convertible Promissory Notes and Derivative Instruments

Statements of Cash Flows

Statements of Cash Flows

Revenue Recognition

Revenue Recognition

The Company recognizes revenue in accordance with ASC Topic 606, “Revenue from Contracts with Customers”.

Cost of Revenues

Cost of Revenues

Advertising Expenses

Advertising Expenses

Concentration of Credit Risk

Concentration of Credit Risk

Comprehensive Income or Loss

Comprehensive Income or Loss

Earnings (Loss) Per Share

Earnings (Loss) Per Share

Related Parties and Transactions

Related Parties and Transactions

The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC 850, “Related Party Disclosures” and other relevant ASC standards.

Income Taxes

Income Taxes

Fair Value Measurements

Fair Value Measurements

	●	Level 1: quoted prices in active markets for identical assets or liabilities;
	●	Level 2: inputs other than Level 1 that are observable, either directly or indirectly; or
	●	Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities.

Contingencies

Contingencies

Discontinued Operations

Discontinued Operations

Recent Accounting Pronouncements

Recent Accounting Pronouncements

ORGANIZATION AND DESCRIPTION OF BUSINESS (Tables)

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SCHEDULE OF BUSINESS COMBINATION


Cash—Pono trust and working capital cash	$	1,802,594
Cash—Subscription agreement made immediately before the closing		5,000,000
Less: transaction costs and advisory fees		5,206,763
Total funds from the Business Combination	$	1,595,831

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

SCHEDULE OF ESTIMATED USEFUL LIVES OF FIXED ASSETS

Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives, as more details follow:

	Depreciation Method	Useful Life
Building and building accessories	Straight-line method	8-38 years
Office equipment and furniture	Straight-line method	2-10 years
Software	Straight-line method	5 years
Design right	Straight-line method	7 years
Patent right	Straight-line method	8 years

PREPAID EXPENSES (Tables)

3 Months Ended

Mar. 31, 2024

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

SCHEDULE OF PREPAID EXPENSES

SCHEDULE OF PREPAID EXPENSES

	March 31, 2024		December 31, 2023
Prepaid expenses	$	835,758	$	983,255
Total	$	835,758	$	983,255

CONVERTIBLE PROMISSORY NOTES, NET (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

SCHEDULE OF DEBT NOTES

The notes consist of the following components as of March 31, 2024 and December 31, 2023:

SCHEDULE OF DEBT NOTES

Principal	$	4,200,000
Debt discount		(4,178,395	)
Interest expense		1,497,798
Net Carrying Balance at December 31, 2023	$	1,519,403
Adjustments		280,162
Interest expense		311,285
Net Carrying Balance at March 31, 2024	$	2,110,850

SCHEDULE OF DEBT DISCOUNT OF THE CONVERTIBLE NOTES

Debt discount is summarized as follows:

	March 31, 2024			December 31, 2023
Debt discount on convertible promissory notes	$	2,680,597		$	4,178,395
Adjustments		(280,162	)		-
Accumulated amortization		(311,285	)		(1,497,798	)
Debt discount on convertible promissory notes, net	$	2,089,150		$	2,680,597

DERIVATIVE LIABILITY (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Liability

SCHEDULE OF DERIVATIVE LIABILITY

Volatility		135.75	%
Risk-free rate		4.966% - 5.016	%
Stock price (pre-consolidated)	$	0.0648
Dividend Yield		-
Expected life		1.03 – 1.15 years

SCHEDULE OF FAIR VALUE OF THE DERIVATIVE

Fair value of the derivative is summarized as below:

	Derivative Liability
Balance at January 1, 2023	$	-
Additions		2,052,314
Change in fair value		(685,174	)
Ending Balance, December 31, 2023		1,367,140
Adjustments		(452,549	)
Change in fair value		378,685
Ending Balance, March 31, 2024	$	1,293,276

WARRANT LIABILITY (Tables)

3 Months Ended

Mar. 31, 2024

Warrant Liability

SCHEDULE OF RECONCILIATION OF THE WARRANTS MEASURED AT FAIR VALUE USING LEVEL 1 INPUTS

The following table provides a reconciliation of the warrants measured at fair value using Level 1 inputs:

	Public warrants
Balance at January 1, 2023	$	-
Additions		-
Transfer from Level 2		603,750
Change in fair value		(486,450	)
Ending Balance, December 31, 2023	$	117,300
Change in fair value		(9,488	)
Ending Balance, March 31, 2024	$	107,812

SCHEDULE OF BLACK-SCHOLES MODEL ASSUMPTIONS INPUTS

The Black-Scholes model with the following assumptions inputs:

Volatility		135.75	%
Risk-free rate		4.966% - 5.016	%
Stock price (pre-consolidated)	$	0.0648
Expected life		4.04 – 4.15 years

SCHEDULE OF RECONCILIATION OF THE WARRANTS MEASURED AT FAIR VALUE USING LEVEL 2 INPUTS

The following table provides a reconciliation of the warrants measured at fair value using Level 2 inputs:

	Public warrants			Placement warrants			Debt warrants
Balance at January 1, 2023	$	-		$	-		$	-
Additions		603,750			39,463			1,812,253
Transfer to Level 1		(603,750	)		-			-
Change in fair value		-			(31,815	)		(1,536,277	)
Ending Balance, December 31, 2023	$	-		$	7,648		$	275,976
Change in fair value		-			(493	)		(133,179	)
Ending Balance, March 31, 2024	$	-		$	7,155		$	142,797

SCHEDULE OF WARRANTS BY TERM GRANTED AND EXERCISE PRICE

The following table summarizes information regarding warrants by term, granted and exercise price for the three months ended March 31, 2024 and year ended December 31, 2023.

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining contractual life		Aggregate Intrinsic Value
Outstanding at December 31, 2022		-	$	-		-		-
Granted		131,101		831		3.92		-
Outstanding at March 31, 2024 and December 31, 2023		131,101	$	831		3.92	$	-
Exercisable at March 31, 2024 and December 31, 2023		131,101	$	831		3.92	$	-

SCHEDULE OF INTRINSIC FAIR VALUE EXCEEDS BY EXERCISE PRICE

			March 31, 2024				December 31, 2023
	Grant Date	Expiry Date	Number of shares		Exercise price		Number of shares		Exercise price
Public warrants	February 3, 2023	February 3, 2028		86,250	$	1,150		86,250	$	1,150
Placement warrants	February 3, 2023	February 3, 2028		5,638		1,150		5,638		1,150
Debt warrants	April 12, 2023	April 12, 2028		23,527		89		23,527		89
Debt warrants	May 23, 2023	May 23, 2028		15,686		73		15,686		73
				131,101	$	831		131,101	$	831

DECONSOLIDATION OF A.L.I. (Tables)

3 Months Ended

Mar. 31, 2024

Deconsolidation Of A.l.i.

SCHEDULE OF DECONSOLIDATED

The following table provides the carrying value of assets and liabilities of A.L.I that have been deconsolidated during the three months ended March 31, 2024:

SCHEDULE OF DECONSOLIDATED

As at	January 10, 2024
ASSETS
Current Assets:
Cash and cash equivalents	$	81,332
Total Assets	$	81,332
LIABILITIES
Current Liabilities:
Short-term loans payable	$	861,540
Accounts payable		4,403,030
Accrued expenses		1,254,820
Others payable		101,651
Contract liabilities		751,614
Current portion of long-term loans		204,584
Finance leases liabilities-current		116,002
Operating leases liabilities-current		225,874
Total Current Liabilities		7,919,115
Longer-term liabilities:
Long-term loans		2,873,758
Finance leases liabilities-non-current		31,893
Operating leases liabilities-non-current		145,677
Other long-term liabilities		169,679
Total long-term liabilities		3,221,007
Total Liabilities	$	11,140,122

Net Liabilities deconsolidated		(11,058,790	)
Accumulated other comprehensive loss		1,044,308
		1,044,308

Gain on deconsolidation of A.L.I.	$	10,014,482

INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

SCHEDULE OF INCOME TAX PROVISION

The income tax provision for the year ended March 31, 2024 and the March 31, 2023 consists of the following:

SCHEDULE OF INCOME TAX PROVISION

	2024		2023
	For the three months ended
	March 31,
	2024		2023
Federal
Current	$	-	$	-
Deferred		-		-

State
Current		-		-
Deferred		-		-

Foreign
Current		-		-
Deferred		-		-

Income Tax Provision	$	-	$	-

EARNINGS (LOSS) PER SHARE (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

SCHEDULE OF COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE

The computation of basic and diluted loss per share for the three months ended March 31, 2024 and 2023 is as follows:

	2024		2023
	For the three months ended
	March 31,
	2024		2023
Loss per share – basic
Numerator:
Net income (loss) from continuing operations	$	8,926,531	$	(3,488,631	)
Net income (loss) from discontinued operation	$	-	$	(4,312,913	)
Denominator:
Weighted average number of common shares outstanding used in calculating basic earnings (loss) per share		736,765		529,844
Denominator used for loss per share
Earnings (Loss) per share from continuing operations (basic)	$	12.12	$	(6.58	)
Earnings (Loss) per share from continuing operations (anti-diluted)	$	12.12	$	(6.58	)
Earnings (Loss) per share from discontinued operation (basic)	$	0.00	$	(8.14	)
Earnings (Loss) per share from discontinued operation (anti-diluted)	$	0.00	$	(8.14	)

STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

SCHEDULE OF STOCK BASED COMPENSATION

Grant date		July 27, 2022
Number of shares at grant date		41,424
Outstanding at January 31, 2023		41,424
Forfeiture		(29,692	)
Outstanding at March 31, 2024 and December 31, 2023		11,732
Exercise price	$	0.015
Consideration paid to the Company at the grant date	$	132

SCHEDULE OF FAIR VALUE OF THE STOCK BASED COMPENSATION

Exercise period		5 years
Share price on the issuance date	$	0.01
Volatility		64.22	%
Expected dividend rate		0	%
Risk-free interest rate		2.88	%

FAIR VALUE MEASUREMENT (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

SCHEDULE OF ESTIMATED FAIR VALUE OF THE FINANCIAL INSTRUMENT

	Amount at Fair Value		Level 1		Level 2		Level 3
March 31, 2024
Liabilities
Public Warrants	$	107,812	$	107,812	$	-	$	-
Placement Warrants	$	7,155	$	-	$	7,155	$	-
Debt Warrants	$	142,797	$	-	$	142,797	$	-
Subtotal: Warrant liabilities	$	257,764	$	107,812	$	149,952	$	-
Derivative Liability	$	1,293,276	$	-	$	1,293,276	$	-
Liabilities fair value	$	1,293,276	$	-	$	1,293,276	$	-

	Amount at Fair Value		Level 1		Level 2		Level 3
December 31, 2023
Liabilities
Public Warrants	$	117,300	$	117,300	$	-	$	-
Placement Warrants	$	7,648	$	-	$	7,648	$	-
Debt Warrants	$	275,976	$	-	$	275,976	$	-
Subtotal: Warrant liabilities	$	400,924	$	117,300	$	283,624	$	-
Derivative Liability	$	1,367,140	$	-	$	1,367,140	$	-
Liabilities fair value	$	1,367,140	$	-	$	1,367,140	$	-

DISCONTINUED OPERATIONS (Tables)

3 Months Ended

Mar. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

SCHEDULE OF DISCONTINUED OPERATIONS

As at	March 31, 2024		December 31, 2023
ASSETS
Current Assets:
Cash and cash equivalents	$	-	$	81,332

Total Assets	$	-	$	81,332
LIABILITIES
Current Liabilities:
Short-term loans payable	$	-	$	836,910
Accounts payable		-		4,403,030
Accrued expenses		-		1,254,820
Others payable		-		101,651
Contract liabilities		350,000		1,101,614
Current portion of long-term loans		-		204,584
Finance leases liabilities-current		-		116,002
Operating leases liabilities-current		-		225,874
Total Current Liabilities		350,000		8,244,485
Longer-term liabilities:
Long-term loans		-		2,873,758
Finance leases liabilities-non-current		-		31,893
Operating leases liabilities-non-current		-		145,677
Other long-term liabilities		-		169,679
Total long-term liabilities		-		3,221,007
Total Liabilities	$	350,000	$	11,465,492

	2024		2023
	For the three months ended March 31,
	2024		2023

Revenues	$	-	$	1,265,883
Cost of revenues		-		955,071
Gross profit		-		310,812

Operating expenses:
Selling expenses		-		40,382
General and administrative expenses		-		2,647,569
Research and development expenses		-		2,090,219
Total operating expenses		-		4,778,170

Loss from operations				(4,467,358	)

Other income (expenses):
Interest expenses, net		-		(6,847	)
Loss on foreign currency transaction		-		(11,005	)
Loss on disposal of fixed assets		-		(9,943	)
Equity in earnings of investee		-		6,176
Other income		-		176,064
Total other income		-		154,445

Net loss from discontinued operations		-		(4,312,913	)
Income tax		-		-
Net loss from discontinued operations	$	-	$	(4,312,913	)

SCHEDULE OF BUSINESS COMBINATION (Details) - Pono Capital Corp [Member]	Feb. 03, 2023 USD ($)
Restructuring Cost and Reserve [Line Items]
Cash—Pono trust and working capital cash	$ 1,802,594
Cash—Subscription agreement made immediately before the closing	5,000,000
Less: transaction costs and advisory fees	5,206,763
Total funds from the Business Combination	$ 1,595,831

ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) - USD ($)			3 Months Ended
	Feb. 03, 2023	Feb. 02, 2023	Mar. 31, 2023	Mar. 31, 2024	Dec. 31, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purchase price			$ 1,156,119
Pono Capital Corp [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Net cash	$ 1,595,831
Prepaid expenses	25,750
Other payable	1,432,603
Notes payable	1,580,000			$ 1,480,000	$ 1,480,000
Warrant liabilities	643,213
Funds from business ccmbination	$ 1,595,831
Accrued expenses				$ 199,687
Common Stock [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of purchase of shares			50,000
Purchase price			$ (5)
Subscription Agreement [Member] \| Common Stock [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of purchase of shares		31,963
Subscription Agreement [Member] \| Public Shares [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of purchase of shares	87,402	50,000
Purchase price		$ 5,000,000

GOING CONCERN (Details Narrative) - USD ($)	Mar. 31, 2024	Dec. 31, 2023	Aug. 25, 2023	May 23, 2023	Apr. 12, 2023
Retained Earnings (Accumulated Deficit)	$ 63,484,844	$ 72,411,375
Liabilities	8,966,839	19,547,304
Principal amount		$ 4,200,000
Lind Global [Member]
Principal amount	$ 4,200,000		$ 4,200,000	$ 4,200,000	$ 4,200,000

SCHEDULE OF ESTIMATED USEFUL LIVES OF FIXED ASSETS (Details)	Mar. 31, 2024
Building and Building Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life	8 years
Building and Building Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life	38 years
Office Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life	2 years
Office Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life	10 years
Software Development [Member]
Property, Plant and Equipment [Line Items]
Useful life	5 years
Design Right [Member]
Property, Plant and Equipment [Line Items]
Useful life	7 years
Patents [Member]
Property, Plant and Equipment [Line Items]
Useful life	8 years

SCHEDULE OF PREPAID EXPENSES (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 835,758	$ 983,255
Total	$ 835,758	$ 983,255

PREPAID EXPENSES (Details Narrative) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid stock-based compensation	$ 753,407	$ 983,255

LOANS PAYABLE (Details Narrative) - USD ($)	Aug. 31, 2023	Jul. 31, 2023	Jun. 30, 2023	May 10, 2023	Apr. 10, 2023	Jan. 31, 2023	Mar. 31, 2024	Dec. 31, 2023
Debt instrument face amount								$ 4,200,000
Notes payable							$ 1,480,000
Interest expenses							288,243
Nonrelated Party [Member]
Short term loans							$ 272,835	278,618
Nonrelated Party [Member] \| Due Twelve Months [Member]
Interest payable							15.00%
Notes payable							$ 15,775	5,521
Interest expenses							288,610	$ 283,896
Short term loans							$ 272,835
Third Party Lender [Member]
Debt instrument face amount						$ 450,000
Interest payable						24.00%
Debt instrument description						The principal amount of this Note and any accrued interest shall be payable (the “Maturity date”) as follows (i) $100,000 on April 10, 2023 (ii) $100,000 on May 10, 2023; (iii) $100,000 on June 30, 2023; (iv) $100,000 on July 31, 2023; and (v) $50,000 on August 31, 2023.
Repayments of debt	$ 50,000	$ 100,000	$ 100,000	$ 100,000	$ 100,000
Mahana Equity LLC [Member]
Debt instrument face amount						$ 1,130,000
Interest payable						24.00%
Debt instrument description						The principal amount of this Note and any accrued interest shall be payable on the earlier of raising more than $5,000,000 from Pono’s SEPA with Yorkville or as follows: (i) $300,000 on April 10, 2023 (ii) $300,000 on May 10, 2023; (iii) $300,000 on June 30, 2023; and (iv) $230,000 on July 31, 2023.
Repayments of debt		$ 230,000	$ 300,000	$ 300,000	$ 300,000

RELATED PARTY TRANSACTIONS (Details Narrative)		3 Months Ended	12 Months Ended
RELATED PARTY TRANSACTIONS (Details Narrative)	Feb. 27, 2023 USD ($)	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($) $ / shares	Dec. 31, 2023 JPY (¥) ¥ / shares	Jul. 19, 2023	Feb. 27, 2023 JPY (¥)
ASC TECH Agent [Member]
Related Party Transaction [Line Items]
Percentage of effective ownership					48.81%
Loan Agreement [Member] \| Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Notes receivable			$ 1,384,370			¥ 200,000,000
Conversion rate \| (per share)			$ 0.0066921	¥ 1
Interest rate	2.475%					2.475%
Accrued expense	$ 72,285
Derecognized debt			$ 227,281
Recognized loss			666,641
Loan Agreement [Member] \| Chief Executive Officer [Member] \| Extended Maturity [Member]
Related Party Transaction [Line Items]
Maturity date description	June 30, 2023
Representative Director of A.L.I. [Member]
Related Party Transaction [Line Items]
Transaction amount			5,961
Related Party [Member]
Related Party Transaction [Line Items]
Short-term loans payable, related party			482,341	¥ 66,037,376
Related Party [Member] \| Mr.Sidhu [Member]
Related Party Transaction [Line Items]
Loans payable		$ 45,189	341,424
Loans outstanding		313,428	341,424
Related Party [Member] \| Mr.Katano [Member]
Related Party Transaction [Line Items]
Loans payable			215,725
Loans outstanding			9,935
Related Party [Member] \| Executive Officer [Member]
Related Party Transaction [Line Items]
Loans payable		14,524	25,924
Related Party [Member] \| Director [Member]
Related Party Transaction [Line Items]
Loans payable		$ 96,331	$ 120,331

SCHEDULE OF DEBT NOTES (Details) - USD ($)	3 Months Ended	12 Months Ended
SCHEDULE OF DEBT NOTES (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Principal		$ 4,200,000
Debt discount	$ 280,162	4,178,395
Interest expense	311,285	1,497,798
Net carrying balance	1,519,403
Net carrying balance	$ 2,110,850	$ 1,519,403

SCHEDULE OF DEBT DISCOUNT OF THE CONVERTIBLE NOTES (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Short-Term Debt [Line Items]
Accumulated amortization	$ 280,162		$ 4,178,395
Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Debt discount on convertible promissory notes	2,680,597	$ 4,178,395	4,178,395
Adjustments	(280,162)
Accumulated amortization	(311,285)	(1,497,798)
Debt discount on convertible promissory notes, net	$ 2,089,150	$ 2,680,597	$ 2,680,597

CONVERTIBLE PROMISSORY NOTES, NET (Details Narrative)					3 Months Ended		12 Months Ended
CONVERTIBLE PROMISSORY NOTES, NET (Details Narrative)	Mar. 11, 2024 shares	Jan. 23, 2024 USD ($)	May 23, 2023 USD ($) $ / shares shares	Apr. 12, 2023 USD ($) Integer $ / shares shares	Mar. 31, 2024 USD ($) shares	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)	Jan. 22, 2024 USD ($)	Aug. 25, 2023 USD ($)
Short-Term Debt [Line Items]
Stock issued during period value new issues					$ 542,000		$ 6,827,477
Stock issued during period shares new issues \| shares	51,317
Debt instrument face amount							4,200,000
Discount Premium					280,162		$ 4,178,395
Debt discount					172,387
Lind Global [Member]
Short-Term Debt [Line Items]
Debt instrument face amount			$ 4,200,000	$ 4,200,000	4,200,000				$ 4,200,000
Lind Global [Member] \| Senior Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Debt instrument face amount		$ 3,500,000						$ 4,200,000
Common Stock [Member]
Short-Term Debt [Line Items]
Stock issued during period value new issues					$ 4
Stock issued during period shares new issues \| shares					135,500
Common Stock [Member] \| Lind Global [Member] \| Senior Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Debt instrument face amount		1,750,000
Proceeds from public offering		$ 13,500,000
Common Stock [Member] \| Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Stock issued during period value new issues			$ 1,680,000	$ 2,520,000
Debt instrument maturity date			May 23, 2025	Apr. 12, 2025
Stock issued during period shares new issues \| shares			15,685	25,327
Share issued price per share \| $ / shares			$ 73.16	$ 89.26
Debt instrument convertible terms of conversion feature			The conversion price is the lesser of: (i) $9.00; or (ii) 90% of the lowest single VWAP during the 20 Trading Days prior to conversion of the note. On August 25, 2023, the Company entered into an Amendment which amended the conversion price to include a floor price of $18.176. In addition to inclusion of a Floor Price, the Floor Note Amendments also provide that at the option of Selling Securityholder, if in connection with a conversion under the Closing Notes, as amended, the Conversion Price is deemed to be the Floor Price, then in addition to issuing the Conversion Shares at the Floor Price, the Company agreed to pay to Selling Securityholder a cash amount equal to (i) the number of shares of common stock that would be issued to Selling Securityholder upon a conversion determined by dividing the dollar amount to be converted being paid in shares of common stock by ninety percent (90%) of the lowest single VWAP during the twenty (20) Trading Days prior to the applicable date of conversion (notwithstanding the Floor Price) less (ii) the number of Conversion Shares issued to Selling Securityholder in connection with the conversion; and (iii) multiplying the result thereof by the VWAP on the Conversion Date. Debt issuance cost of $245,000, original issue discount of $280,000 and additional discount of $1,133,395 are recognized as reduction from the principal amount of the note and will be amortized over the life of the note utilizing straight-line method.	The conversion price is the lesser of: (i) $9.00; or (ii) 90% of the lowest single VWAP during the 20 Trading Days prior to conversion of the note. On August 25, 2023, the Company entered into an Amendment which amended the conversion price to include a floor price of $18.176. In addition to inclusion of a Floor Price
Debt Instrument, Convertible, Conversion Price \| $ / shares				$ 9.00
Debt Instrument, Convertible, Threshold Trading Days \| Integer				20
Floor price \| $ / shares			$ 18.176	$ 18.176
Debt instrument unamortized discount			$ 280,000	$ 420,000
Debt instrument face amount			1,133,395	1,642,696
Common Stock [Member] \| Convertible Promissory Note Payable [Member]
Short-Term Debt [Line Items]
Debt Issuance Costs, Net			$ 245,000	$ 457,304

SCHEDULE OF DERIVATIVE LIABILITY (Details)	3 Months Ended
SCHEDULE OF DERIVATIVE LIABILITY (Details)	Mar. 31, 2024 $ / shares
Measurement Input, Price Volatility [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	135.75
Measurement Input, Risk Free Interest Rate [Member] \| Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	4.966
Measurement Input, Risk Free Interest Rate [Member] \| Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	5.016
Measurement Input, Share Price [Member] \| Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input	0.0648
Measurement Input, Expected Dividend Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative liability measurement input
Measurement Input, Expected Term [Member] \| Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected life	1 year 10 days
Measurement Input, Expected Term [Member] \| Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected life	1 year 1 month 24 days

SCHEDULE OF FAIR VALUE OF THE DERIVATIVE (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Derivative Liability
Beginning balance	$ 1,367,140
Additions		2,052,314
Change in fair value	378,685	(685,174)
Ending balance	$ 1,293,276	$ 1,367,140

DERIVATIVE LIABILITY (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
DERIVATIVE LIABILITY (Details Narrative) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Derivative Liability
Derivative liability	$ 1,293,276		$ 1,367,140
Derivative gain	$ (378,685)		685,174
Derivative expense			$ 1,088,477

SCHEDULE OF RECONCILIATION OF THE WARRANTS MEASURED AT FAIR VALUE USING LEVEL 1 INPUTS (Details) - Public Warrants [Member] - Fair Value, Inputs, Level 1 [Member] - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Class of Warrant or Right [Line Items]
Beginning balance	$ 117,300
Additions
Transfer from level 2		603,750
Change in fair value	(9,488)	(486,450)
Ending balance	$ 107,812	$ 117,300

SCHEDULE OF BLACK-SCHOLES MODEL ASSUMPTIONS INPUTS (Details)	3 Months Ended
	Mar. 31, 2024 $ / shares
Measurement Input, Price Volatility [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant measurement input	135.75
Measurement Input, Risk Free Interest Rate [Member] \| Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant measurement input	4.966
Measurement Input, Risk Free Interest Rate [Member] \| Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant measurement input	5.016
Measurement Input, Share Price [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrant measurement input	0.0648
Measurement Input, Expected Term [Member] \| Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
[custom:WarrantsAndRightsOutstandingMeasurementInputExpectedTerm]	4 years 14 days
Measurement Input, Expected Term [Member] \| Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
[custom:WarrantsAndRightsOutstandingMeasurementInputExpectedTerm]	4 years 1 month 24 days

SCHEDULE OF RECONCILIATION OF THE WARRANTS MEASURED AT FAIR VALUE USING LEVEL 2 INPUTS (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Public Warrants [Member]
Class of Warrant or Right [Line Items]
Beginning balance
Additions		603,750
Transfer to level 1		(603,750)
Change in fair value
Ending balance
Placement Warrants [Member]
Class of Warrant or Right [Line Items]
Beginning balance	7,648
Additions		39,463
Transfer to level 1
Change in fair value	(493)	(31,815)
Ending balance	7,155	7,648
Debt Warrants [Member]
Class of Warrant or Right [Line Items]
Beginning balance	275,976
Additions		1,812,253
Transfer to level 1
Change in fair value	(133,179)	(1,536,277)
Ending balance	$ 142,797	$ 275,976

SCHEDULE OF WARRANTS BY TERM GRANTED AND EXERCISE PRICE (Details) - USD ($)		3 Months Ended	12 Months Ended
	Jul. 27, 2022	Mar. 31, 2024	Dec. 31, 2023
Number of shares, beginning balance		41,424
Weighted average exercise price, granted	$ 0.015
Number of shares, ending balance		11,732	41,424
Weighted average remaining contractual life		8 years 3 months 29 days
Warrant [Member]
Number of shares, beginning balance		131,101
Weighted average exercise price, beginning balance		$ 831
Number of shares, granted			131,101
Weighted average exercise price, granted			$ 831
Weighted average remaining contractual life, granted			3 years 11 months 1 day
Number of shares, ending balance		131,101	131,101
Weighted average exercise price, ending balance		$ 831	$ 831
Weighted average remaining contractual life		3 years 11 months 1 day	3 years 11 months 1 day
Aggregate Intrinsic Value, exercisable
Number of shares, exercisable		131,101	131,101
Weighted average exercise price, exercisable		$ 831	$ 831
Weighted average remaining contractual life, exercisable		3 years 11 months 1 day	3 years 11 months 1 day

SCHEDULE OF INTRINSIC FAIR VALUE EXCEEDS BY EXERCISE PRICE (Details) - $ / shares	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Class of Warrant or Right [Line Items]
Number of shares outstanding	131,101	131,101
Exercise price	$ 831	$ 831
Public Warrants [Member]
Class of Warrant or Right [Line Items]
Warrant Grant Date	Feb. 03, 2023
Warrant Maturity Date	Feb. 03, 2028
Number of shares outstanding	86,250	86,250
Exercise price	$ 1,150	$ 1,150
Placement Warrants [Member]
Class of Warrant or Right [Line Items]
Warrant Grant Date	Feb. 03, 2023
Warrant Maturity Date	Feb. 03, 2028
Number of shares outstanding	5,638	5,638
Exercise price	$ 1,150	$ 1,150
Debt Warrants [Member]
Class of Warrant or Right [Line Items]
Warrant Grant Date	Apr. 12, 2023
Warrant Maturity Date	Apr. 12, 2028
Number of shares outstanding	23,527	23,527
Exercise price	$ 89	$ 89
Debt Warrants One [Member]
Class of Warrant or Right [Line Items]
Warrant Grant Date	May 23, 2023
Warrant Maturity Date	May 23, 2028
Number of shares outstanding	15,686	15,686
Exercise price	$ 73	$ 73

WARRANT LIABILITY (Details Narrative) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Warrant Liability
Warrant liability non current	$ 257,764	$ 400,924

SCHEDULE OF DECONSOLIDATED (Details) - USD ($)		3 Months Ended
SCHEDULE OF DECONSOLIDATED (Details) - USD ($)	Jan. 10, 2024	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Current Assets:
Cash and cash equivalents		$ 163,275		$ 2,072
Total Assets		999,033		1,066,659
Current Liabilities:
Others payable		132,980		132,980
Total Current Liabilities		5,304,949		13,038,830
Longer-term liabilities:
Total long-term liabilities		3,661,890		6,508,474
Total Liabilities		8,966,839		19,547,304
Accumulated other comprehensive loss				$ (1,044,308)
Gain on deconsolidation of A.L.I.		$ 10,014,482
ALI Technologies Inc [Member]
Current Assets:
Cash and cash equivalents	$ 81,332
Total Assets	81,332
Current Liabilities:
Short-term loans payable	861,540
Accounts payable	4,403,030
Accrued expenses	1,254,820
Others payable	101,651
Contract liabilities	751,614
Current portion of long-term loans	204,584
Finance leases liabilities-current	116,002
Operating leases liabilities-current	225,874
Total Current Liabilities	7,919,115
Longer-term liabilities:
Long-term loans	2,873,758
Finance leases liabilities-non-current	31,893
Operating leases liabilities-non-current	145,677
Other long-term liabilities	169,679
Total long-term liabilities	3,221,007
Total Liabilities	11,140,122
Net Liabilities deconsolidated	(11,058,790)
Accumulated other comprehensive loss	1,044,308
Gain on deconsolidation of A.L.I.	$ 10,014,482

SCHEDULE OF INCOME TAX PROVISION (Details) - USD ($)	3 Months Ended
SCHEDULE OF INCOME TAX PROVISION (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Current
Deferred
Current
Deferred
Current
Deferred
Income Tax Provision

CONTINGENCIES (Details Narrative) - USD ($)	Mar. 31, 2024	Dec. 31, 2023	Aug. 25, 2023	May 23, 2023	Apr. 12, 2023
Principal amount		$ 4,200,000
Lind Global [Member]
Principal amount	$ 4,200,000		$ 4,200,000	$ 4,200,000	$ 4,200,000
Debt instrument intererst rate stated percentage	120.00%
Lind Global [Member] \| Common Stock [Member]
Debt instrument intererst rate stated percentage	80.00%

SHAREHOLDERS’ DEFICIT (Details Narrative) - USD ($)				3 Months Ended		12 Months Ended
SHAREHOLDERS’ DEFICIT (Details Narrative) - USD ($)	Mar. 11, 2024	Feb. 03, 2023	Feb. 02, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Mar. 22, 2024	Feb. 27, 2024
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock, shares authorized		200,000,000		400,000,000		400,000,000
Common stock, par value		$ 0.0001		$ 0.000001		$ 0.000001
Preferred stock, shares authorized		20,000,000		20,000,000		20,000,000
Preferred stock, par value		$ 0.0001		$ 0.000001		$ 0.000001
Fair value of services
Obligation to issue of shares						$ 1,457,400
Stock Issued During Period, Shares, New Issues	51,317
Fair value of issuance of shares				542,000		$ 6,827,477
Prepaid expenses				$ 753,407
Outstanding shares increased				259,097
Adjustments to additional paid in capital, stock issued, issuance costs				$ 4
Additional paid-in capital				$ 541,996
Common stock, shares issued				885,987		626,890
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Public shares increased					50,000
Stock issued during period for services, shares				51,317
Fair value of services
Stock Issued During Period, Shares, New Issues				135,500
Fair value of issuance of shares				$ 4
Subscription Agreement [Member] \| Consultants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued during period for services, shares						65,484
Fair value of services						$ 2,489,179
Subscription Agreement [Member] \| Public Shares [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Public shares increased		87,402	50,000
Subscription Agreement [Member] \| Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock, par value							$ 4.00	$ 4.00
Public shares increased			31,963
Shares, Issued							100,000	100,000
Cash							$ 542,000	$ 542,000
Stock issued during period for services, shares						4,132
Fair value of services						$ 4,338,298
Subscription Agreement [Member] \| Unregistered Shares [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares, Issued							35,500	35,500

SCHEDULE OF COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE (Details) - USD ($)

3 Months Ended

Mar. 31, 2024

Mar. 31, 2023

Loss per share – basic

Net income (loss) from continuing operations

$ 8,926,531

$ (3,488,631)

Net income (loss) from discontinued operation

$ (4,312,913)

Weighted average number of common shares outstanding used in calculating basic earnings (loss) per share

^[1],[2]

736,765

529,844

Earnings (Loss) per share from continuing operations (basic)

$ 12.12

$ (6.58)

Earnings (Loss) per share from continuing operations (anti-diluted)

12.12

(6.58)

Earnings (Loss) per share from discontinued operation (basic)

0.00

(8.14)

Earnings (Loss) per share from discontinued operation (anti-diluted)

$ 0.00

$ (8.14)

[1]	Retrospectively adjusted for effect of share consolidation on a basis of 1 post-consolidation share for each 100 pre-consolidation on April 2, 2024.
[2]	Retrospectively restated for effect of the business combination on February 6, 2023.

SCHEDULE OF STOCK BASED COMPENSATION (Details) - USD ($)		3 Months Ended
	Jul. 27, 2022	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Number of shares at grant date	41,424
Number of shares, beginning balance		41,424
Forfeiture		(29,692)
Number of shares, ending balance		11,732
Exercise price	$ 0.015
Consideration paid to the Company at the grant date	$ 132

SCHEDULE OF FAIR VALUE OF THE STOCK BASED COMPENSATION (Details)	3 Months Ended
	Mar. 31, 2024 $ / shares
Share-Based Payment Arrangement [Abstract]
Exercise period	5 years
Share price on the issuance date (pre-consolidated)	$ 0.01
Volatility	64.22%
Expected dividend rate	0.00%
Risk-free interest rate	2.88%

STOCK-BASED COMPENSATION (Details Narrative) - $ / shares		3 Months Ended
	Jul. 27, 2022	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Issuance of stock option exercised	41,424
Common stock exercise price	$ 0.015
Weighted average contractual term		8 years 3 months 29 days
Fair value of stock based compensation		$ 0.005

SCHEDULE OF ESTIMATED FAIR VALUE OF THE FINANCIAL INSTRUMENT (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Public Warrants [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value	$ 107,812	$ 117,300
Public Warrants [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value	107,812	117,300
Public Warrants [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value
Public Warrants [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value
Placement Warrants [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value	7,155	7,648
Placement Warrants [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value
Placement Warrants [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value	7,155	7,648
Placement Warrants [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value
Debt Warrants [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value	142,797	275,976
Debt Warrants [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value
Debt Warrants [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value	142,797	275,976
Debt Warrants [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value
Warrant Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value	257,764	400,924
Warrant Liabilities [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value	107,812	117,300
Warrant Liabilities [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value	149,952	283,624
Warrant Liabilities [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value
Derivative Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value	1,293,276	1,367,140
Derivative Liability [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value
Derivative Liability [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value	1,293,276	1,367,140
Derivative Liability [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities fair value

SCHEDULE OF DISCONTINUED OPERATIONS (Details) - USD ($)	3 Months Ended
SCHEDULE OF DISCONTINUED OPERATIONS (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Current Assets:
Cash and cash equivalents			$ 81,332
Total Assets			81,332
Current Liabilities:
Short-term loans payable			836,910
Accounts payable			4,403,030
Accrued expenses			1,254,820
Others payable			101,651
Contract liabilities	350,000		1,101,614
Current portion of long-term loans			204,584
Finance leases liabilities-current			116,002
Operating leases liabilities-current			225,874
Total Current Liabilities	350,000		8,244,485
Long-term loans			2,873,758
Finance leases liabilities-non-current			31,893
Operating leases liabilities-non-current			145,677
Other long-term liabilities			169,679
Total long-term liabilities			3,221,007
Total Liabilities	350,000		$ 11,465,492
Revenues		$ 1,265,883
Cost of revenues		955,071
Gross profit		310,812
Operating expenses:
Total operating expenses		4,778,170
Loss from operations		(4,467,358)
Other income (expenses):
Interest expenses, net		(6,847)
Loss on foreign currency transaction		(11,005)
Loss on disposal of fixed assets		(9,943)
Equity in earnings of investee		6,176
Other income		176,064
Total other income		154,445
Net loss from discontinued operations		(4,312,913)
Income tax
Net loss from discontinued operations		(4,312,913)
Selling and Marketing Expense [Member]
Operating expenses:
Total operating expenses		40,382
General and Administrative Expense [Member]
Operating expenses:
Total operating expenses		2,647,569
Research and Development Expense [Member]
Operating expenses:
Total operating expenses		$ 2,090,219

SUBSEQUENT EVENTS (Details Narrative) - USD ($)			2 Months Ended	3 Months Ended	12 Months Ended
SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Apr. 08, 2024	Mar. 11, 2024	May 31, 2024	Mar. 31, 2024	Dec. 31, 2023
Subsequent Event [Line Items]
Issuance of common shares, shares		51,317
Issuance of common shares				$ 542,000	$ 6,827,477
Subsequent Event [Member] \| Consultant [Member]
Subsequent Event [Line Items]
Issuance of common shares, shares	38,878
Issuance of common shares	$ 180,000
Subsequent Event [Member] \| Third Party Lender [Member] \| Unsecured Debt [Member]
Subsequent Event [Line Items]
Adavance in non-interest			$ 100,000
Advance in unsecured debt			$ 140,000