NEXT ChemX : Material Impairments Form 8 K

Item 2.06 Material Impairments

On April 26, 2024, Judge Elizabeth Leonard of the Midland County District Court in Midland, Texas entered a Third Turnover Order (the "Turnover Order") requiring NEXT-ChemX Corporation (the "Company"), a Nevada public company trading as CHMX on the OTC Markets board, to turn over 15,866,096 of its common shares to Sparkie Properties L.L.C. ("Sparkie") that is managed by Glenn Little who is the appointed receiver of NEXT-ChemX Corporation, a privately held Texas corporation.

This decree was issued despite the fact that neither the privately held NEXT-ChemX Corporation, chartered in Texas, nor the Company itself was ever involved in the underlying lawsuit giving rise to said decree. This order arose from litigation in Sparkie Properties L.L.C. v. NextMetals Limited and Benton Wilcoxon, CV 58242, In the District Court of Midland County, Texas, 238^th Judicial District. The shares of the Company owned by NEXT-ChemX Corporation, the privately held Texas corporation were alleged to belong to NextMetals Limited, a defendant in the litigation, rather than the aforementioned closely held Texas private company.

In fact, NextMetals Limited, a Gibraltar corporation defendant in the litigation does own shares in the closely held Texas private company, NEXT-ChemX Corporation, however the order has been issued to seize not the shares in the private Texas company but rather the private Texas company's assets, the shares in the Company.

The similarity of names between the Company and the private Texas corporation came about in 2021 when the Company adopted the changed its business and adopted the name of its principal shareholder that has contributed the technology currently exploited by the Company in exchange for a controlling share. These facts were ignored by the Court; moreover, when the private Texas Company whose assets were under threat approached the Court to be heard, the Judge refused allow it a hearing and proceeded with the judgement effectively depriving the private Texas company of its asset.

The Turnover Order is not a final order as it is currently on appeal with the Texas Court of Appeals for the 11^th District in Eastland, Texas.

When NEXT-ChemX Corporation (Nevada) received notice from its transfer agent, Empire Stock Transfer Inc. ("Empire") of Henderson, Nevada that, irrespective of the ongoing appeal of the Turnover Order and the fact that the shares covered by the Turnover Order were not the property of Sparkie Properties, L.L.C., Empire nevertheless advised the Company that it intended to issue the shares covered by the Turnover Order, NEXT-ChemX Corporation (Nevada) immediately terminated Empire as its transfer agent. This was done via an email and letter delivered on May 23, 2024, in which Empire acknowledged the receipt.

Although Empire no longer represented NEXT-ChemX Corporation, the Nevada public company, Empire promptly cancelled the shares owned by NEXT-ChemX Corporation, the closely held private corporation and issued 15,866,096 common shares in the public company to Sparkie Properties LLC under the management of Glenn A. Little. NEXT-ChemX Corporation (Nevada) and its attorneys believe the Turnover Order is illegal for reasons stated in its brief timely filed with the Texas Court of Appeals.