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ERNEST ENERGY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 23 Note 15 - Subsequent Events The Company has evaluated all events or transactions that occurred after December 31, 2023 through April 10, 2024, which is the date that the consolidated financial statements were available to be issued. During this period, there were no material events requiring disclosure except for the following: As disclosed in Note 1, HMO Energy, Inc. was merged into Ernest Energy in February 2024. As disclosed in Note 9, the Company issued a warrant to the bank in connection with obtaining the credit facility. As disclosed in Note 10, SAFE notes in the amount of $115,500 were converted into Series A-2 Preferred Stock for the total price of $115,500. In January 2024, the Company sold 2,575,530 shares of its Series A-1 Preferred Stock, with a par value of $0.00001 per share and $5.1834 price per share, for the total price of $10,349,995, excluding proceeds from the secondary transaction. In 2024, the Company’s two new subsidiaries began operations in the State of Texas: Electrik Pros TX, Inc. is an electrical contractor in Texas. The majority of its construction work is generally performed under fixed-price contracts. The length of its contracts varies but typically ranges from 6 to 18 months. In addition, Electrik Pros TX, Inc. provides electrical maintenance and construction services. Airsmith Pros TX, Inc. is an HVAC and mechanical contractor in Texas. The majority of its construction work is generally performed under fixed-price contracts. The length of its contracts varies but typically ranges from 6 to 18 months. In addition, Airsmith Pros TX, Inc. provides mechanical maintenance and construction services.